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Dale

VIEWS: 27 PAGES: 56

  • pg 1
									Holistic BPM:
From Theory to Reality
Simon Dale

Senior Vice President and Chief
Technology Officer, SAP APJ
Business Process Management - historically




SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /2
   Businesses Have Not Fully Leveraged “Processes” Yet

Businesses want to understand and change their operational
processes quickly…
   …but their processes are: misunderstood, inconsistent, hard-
   wired, or inflexible
Businesses want to deploy automated processes fast
   …but most do not have a way to do this
Businesses want a real time view of operations and the ability to
intervene…
    …but there is typically no way to achieve this without a massive
    effort, yielding inflexible solutions
Businesses want to see results and value fast…
   …but they cannot invoke change without expensive, risky projects
   with long payback periods


       Companies Want Change At The Speed Of Business
   SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /3
  The Next Frontier: Reducing “Time to Change”




 Years
                                                                                                               Business
                                                                                                               Process
Months                                                                                                         Change

 Weeks
                                                                                                               Product
                                                                                                               Lifecycle
  Days

 Hours
                                                                                                               Process
                                                                                                               execution
Minutes                                                                                                        time

              1900s                 1920s                 1940s                1960s   1980s   1990s   2000s

 Source: Gartner

   SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /4
  The Fundamental Challenge


                           Manual Steps and Ad Hoc Integration
                           (Repetitive Data Entry, Paper Approval, ETL, FTP, P2P, etc)




                                       Marketing                                  Order Mngt                Fulfillment


                                                              Gap
                                                              Functional




                                                                                               Gap
                                                                                               Functional
• No formal linkage between business process and application system
• No capability to manage and measure the business process
• An inflexible IT infrastructure that does not support changes in processes
        You cannot win at BPM unless you integrate with your
        applications & leverage existing infrastructure
  SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /5
   Flexible business demands automating and optimising
   business processes (linking People/Process & Systems)
Current Approach
      = business function                                                                              Manual Steps
                  Marketing Application                                            Order Mgmt App                      Fulfillment Application




Marketing                                                                                                Collections
                             Inventory Management

Future process
                                                              Order Entry
Customer


Division
                                                                                                                                         Receivables


Shared
Service                         Marketing,
                                                                                                       Billing,

Supplier
                                                                          Handles Inventory - VMI


Outsourced
                                                                                     Shipping through 3PL’s             Collections

   SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /6
  What Do Organisations Want from BPM?


Model Business Processes
Modeling For Documentation & Compliance
Modeling For Redesign & Optimisation
Modeling For Execution

Manage Business Tasks Across Applications
Manage and resolve business tasks centrally in one work list

Business Process Integration / Automation
Integrate all business applications and automate the message flow
between systems with an executable process model

Involve Business Users in Automated Processes
Manage by exception
    Alerting in case of exceptions (technical and business)
    Approval of the state of an integration process with a human call-out
    Trigger a production workflow within your SAP application

Application Workflow Management
Manage production workflows within applications

… All This, Whilst Leveraging Existing IT Investments

   SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /7
 How much process can we put into software?




Goals – why software-supported processes?                                          Inhibitors – why aren’t they all in software?

Efficiency – achieve more with less                                               Time – too little, too late

Effectiveness – actionable information                                            Cost – return is smaller than investment

Compliance – adhere to laws and rules                                             Skills – too much specialized know-how

Speed – “confirm the order right away”                                            Resistance – “you can’t automate this”




                                        Improve the way process is put into software!




  SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /8
Evolution of Business Process Management Technology

      1990s                                                                       2000s                                       2010s

                         Operational                                                                 Competitive
                          Efficiency                                                                Differentiation
                             Business Process                                                             Business Network
                              Reengineering                                                                Transformation
                                     + ERP                                                                + Enterprise SOA




                                                                 Key Business Drivers                                   ‘BPM 2.0‘
Business Process Analysis
                                                                  Process Globalization                         Flexibly enable the complete
      Focus on Business Process
                                                                          Everybody, everywhere                 business process lifecycle
      Reengineering
                                                                          Process of “me“
               Process Modeling                                                                                      Enterprise Modeling
                                                                  Business Agility
               Process Documentation                                                                                 Simulation/ Analysis
                                                                          Process Insight
                                                                          Process Flexibility                        S2S BPM (Automation)

                 ‘BPM 1.0‘                                        Business Transformation                            Process Collaboration
                                                                          Differentiate through process
                                                                                                                     Human Tasks
     Focus on singular aspects of                                         Compliance and transparency
     business processes                                                                                              BAM
                                                                  Real World Awareness
              Workflow Automation                                         Everything, everywhere                     Business Rules
              EAI (Integration)                                           Business events
                                                                                                                     Business Content




SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /9
   Benefits of Business Process Management


 Reduced process costs                                                               10 - 15 %   >> The ARIS Platform enabled us to
                                                                                                 conduct a process analysis, determine
                                                                                                 the inefficiencies of selected processes
 Increased quality / reduced number of errors                                        20 - 30 %   and identify the potential for reducing
                                                                                                 costs when taking appropriate action <<

                                                                                                 Henrik Ambak, Head of IT / Mike Stone, Head of
  Reduced process throughput times                                                   10 - 30 %   Corporate Controlling



  Reduced training time / expenses                                                   10 - 30 %   Total BPM project investment (including
                                                                                                 all costs) represents < 20 % of the
                                                                                                 identified and validated cost savings
  Reduced number of (internal) support requests                                      15- 30 %    potential.


  Reduced number of customer complaints                                              20 - 30 %


  Increased forecast accuracy                                                        15 - 30 %
                                                                                                  Dramatic decrease in the number of
                                                                                                  internal process instructions
>> The processes in the individual work areas could be streamlined                                (currently down from
and shortened considerably. For example, processing time dropped                                  27,000 to 2,800 – with a further
drastically (…). In the Dealer Service Center (DSC), process costs                                reduction in sight)
dropped by 58 percent and staff requirement by 67 percent. <<
IS Report, 7+8/2005, BMW Financial Services Switzerland
project report on the use of ARIS



    SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /10
  Business is Changing & Innovating


Business 2010 Study
The Greater Source of Competitive Advantage in 2010

        New products & services                                   New business models
                                                                                               82% of executives in all sectors
            54%                                                                          56%   expect business to be demand –
                                 53%                                    53%
                                          47%                  47%                             rather than supply-driven
   46%                                                                             44%
                                                                                               54% of executives see adapting
                                                                                               models as more critical than new
                                                                                               product / service development




       Total                          US                          Europe            Asia

                                                Firms’ Ability to Evolve Business Models
                                           will Become a Key Source of Competitive Advantage.


 Source: Economist Intelligence Unit Survey – 4000 questioned Senior Executives

  SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /11
   Business wants BPM



                                                                                                   Business
   Asia                                      78%                                    6% 16%
                                                                                                   IT
                                                                                                   Other
 Europe                                     76%                                     15%   9%
                                                                                                N = 338

  North                             58%                                26%             17%
America
           0%              20               40               60               80          100

Key Take-Aways:
  As organisations seek to expand BPM enterprise wide, hybrid roles emerge.
  The IT organisation plays a key role during early adoption, familiarizing business
  with tool usage.

                                                                                      Source: Michael Melenovsky. Gartner Expo – Sydney - Nov 2006



   SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /12
Multiple Layers of Complexity


                                                                                 • Major phases
                                                                                 • KPI Dashboards            Business drives
                                                                                                           • • Businessdrives
                                                                                 • Analytics                 processes management
                                                                                                               processes management

     Executive                                                                                                • • Business affects
                                                                                                                   Business affects
                                                                                                                  process change
                                                                                                                   process change
                                                                                 • … plus                         within “IT sandbox”
                                                                                                                   within “IT sandbox”
                                                                                 • Task sequences
                                                                                 • Parallelism               Design collaboration
                                                                                                           • • Designcollaboration
                                                                                                             improves process quality
                                                                                                               improves process quality
                                                                                                             and design productivity
                                                                                                               and design productivity
  LoB Manager
                                                                                                              • • Discoverability from
                                                                                                                   Discoverability from
                                                                                 • … plus
                                                                                 • Task & event types             IT to business
                                                                                                                   IT to business
                                                                                 • Business rules
                                                                                 • Business entities          • • Structured
                                                                                                                   Structured
                                                                                                                  requirements from
                                                                                                                   requirements from
Business Analyst                                                                                                  business to IT
                                                                                                                   business to IT
                                                                                 • … plus                    Design on several level
                                                                                                           • • Designon several level
                                                                                 • Task & event details
                                                                                                             of abstraction driving
                                                                                                               of abstraction driving
                                                                                 • Business rule details
                                                                                 • Entity details            towards executable
                                                                                                               towards executable
                                                                                 • Exception handling        models
                                                                                                               models
Process Architect



SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /13
          SAP’s experience
              with BPM


SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /14
Business Processes Are SAP’s Business


                                                                                 Business processes everywhere
                                                                                     Horizontal applications
                                                                                     Industry applications

                                                                                 Representing best practices

                                                                                 End-to-end coverage

                                                                                 Regulatory compliance

                                                                                 Goals evolve
                                                                                     From efficiency and compliance
                                                                                     to agility and innovation

                                                                                 Implementation evolves
                                                                                     From coding and customization
                                                                                     to modeling and empowerment

                                                                                 Enterprise SOA is a key enabler


SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /15
   SAP R&D - >€1bn per annum
SAP Labs-based Research Centers
Campus-based Engineering Centers




                                                                              Darmstadt
                                                                                          Dresden

                                                                     Belfast
                                   Montreal
                                                                     Walldorf
                                                                                            Karlsruhe
                                                                                                         Shanghai
  Palo Alto                                                        Sophia Antipolis
                                                                                          St.Gallen




  Campus-based Engineering Centre Brisbane
   –      Strong SAP-internal and external partner network
   –      Established 06/2001
   –      Team: total number of 50 from more than a dozen nations                             Pretoria
            -    (senior) researchers                                                                         Brisbane
            -    PhD, Bachelor and Master students
            -    engineers
            -    associated academics

  Research Focus
   –      Business Process Management & Semantic Interoperability
   –      Internet of Services
   –      Security & Trust
   –      Web 2.0

       SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /16
 SAP Research – Core Activities

                            Basic                                                              Discovery
                         research
                          Applied
                         research
                                                                                                Invention
                       Industrial
                        research

              Transfer into
              SAP products                                                                     Innovation

                                                    Exertion of influence



                                                              Focus of SAP Research
 Basic                                 Applied                                 Industrial        Market              Production
 Research                              Research                                Research          Evaluation          or Spin Off

Qualified Idea                       Demonstrator                                  Prototype   Customer Pilot   Innovative Project


                                                               Collaborative Research
                                          Invent                                                  Validate             Transfer



  SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /17
Industrialization of the Software Industry



                                                                                 ERP                SCM               CRM
                                                                                                                                …



                                                                                                            New
                                                                                       All-in-One
                                                                                                          Solutions         …


                  69% of the parts                                                      >50% of the processes
                        are the same                                                                are the same




                              Speed: Shorter time to volume
                     Efficiency: Systematic re-use across solutions
                   Quality: Unprecedented level of quality and scalability



SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /18
Architecture enables better BPM – Enterprise SOA


                                                                                  COMPOSITE APPS

                                                                                      CODING

                                                                                    SERVICES
                           CUSTOMIZING
                                                                                     CONFIGURATIONS
                   INDUSTRY SPECIFIC                                                CONFIGURATIONS
                                                                                  CONFIGURATIONS


                                                                                    SERVICES


                                  CODING                                          Business Objects,
                                                                                    Components,
                                                                                      Engines


                                                                                   SAP NetWeaver
                                    BASIS

                  20th Century SAP                                               21st Century SAP!
                        (R/3)
SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /19
      Content is King: Reference Models share best practice


  TIR
     ED          SAP R/3                                                            SAP ERP                                     Enterprise SOA
RE
             Reference Model                                                  Implementation Content                    Process Component Architecture




                                     Courtesy of TU Eindhoven




      Focus on Business Engineering                                         Focus on Implementation                         Focus on SOA Governance by
                                                                                                                            model-based Design.
      Graphical process flows describing                                    Swimlane diagrams for SAP ERP
      SAP R/3 business processes (<= 4.6)                                                                                   Process Component Architecture:
                                                                            Business Scenarios, processes and process
                                                                                                                            Services, Service Operations, …
      Scenarios, processes and functions                                    steps, linked to SAP Solution Maps
                                                                                                                            Model-driven implementation and extension
      Informal modeling                                                     Transactions, IMG objects, documentation
                                                                                                                            Enterprise Services Repository (ESR)
      ASAP & R/3 Business Engineer                                          SAP Solution Manager



          SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /20
  Enterprise Modeling is the beginning

                                                                                    Model company-wide
                                                                                    business architecture,
 SAP Enterprise Modeling by IDS Scheer
 SAP Enterprise Modeling by IDS Scheer                                              enterprise architecture
                                                                                    and information
                                                                                    architecture

  SAP Business Designer by IDS Scheer                                               “Light” version of the
  SAP Business Designer by IDS Scheer
                                                                                    above

                                                                                    Runtime infrastructure
SAP Business Server and Publisher by IDS
SAP Business Server and Publisher by IDS
                                                                                    and publishing
                Scheer
                Scheer
                                                                                    technology




                                                                                    Monitor existing,
SAP Process Performance Management by
SAP Process Performance Management by                                               implicit process flows
              IDS Scheer
               IDS Scheer                                                           in running SAP
                                                                                    applications.

                                                                                    Plan, control &
SAP Business Process Optimization by IDS
SAP Business Process Optimization by IDS
                                                                                    simulate ARIS-
                Scheer
                Scheer
                                                                                    designed processes


   SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /21
   Enterprise Modeling has to integrate with Implementation

                     ENTERPRISE MODELING DOMAIN
                                                                                               Enterprise Modeling
                                                                                               Extending the goals of …
             SAP Enterprise Modeling by IDS Scheer
                       Business Architecture, Enterprise Architecture,                           Business Process Analysis (BPA)
                                 Information Architecture
                                                                                                 Process Governance/ Standardization
                                                                                                 Simulation/ Optimization
                                                                                               … to cover the Corporate Architecture




                                                                                               Business Process Platform
  Transactions                              Services                        Orchestration
                                                                                                 Process Implementation Content
                                             Process
      Process                                                                   Integration           Process Configuration Variants
                                           Components
Configuration Variants                                                        Process (BPEL)
                                                                                                 SOA Design Governance
                                                                                                      Process Components
                                                                                                      Expose platform processes
                                                                                                      Service-enabled packaged applications

                                                                     SAP NetWeaver
                                                                                                 Orchestration
  SAP Solution
    Manager                                                        Process Integration                Model-to-Code
                                                                                                      Integration process



    SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /22
        Automated BPM has layers of application


Business Process Management




             Enterprise                                                                   Composite Business Process*         Human-Centric
              Modeling                                                                                                        • Process Collaboration
                                                                                                                              • Human Interaction Management
                                                                                                                              • BPMN (Notation)
                                        SOA Design
             Business                   Governance

                                                                                                                              Packaged Processes
             Architecture


                                                                     SAP Application              Business
                                                                                                  Business         Business
                                                                                                                   Business
                                                                                                                              • Expose Services / Events
              Enterprise                                                                           Object           Object
              Architecture                                           Core Processes
                                                                                                   Object           Object
                                                                                                                              • Embedded Workflow

              Information
               Architecture
                                                                                                             Integration      System-Centric
                                                                                                                              • Process Automation
                                                                                                                              • BAM Infrastructure
                                    SAP NETWEAVER                                 Event
                                                                                                                              • BPEL (Service Orchestration)
                                                                  Service



Optional: Enterprise Modeling
                                                                            B2B                              NON SAP
• Business Process Analysis
• Simulation/ Optimization
• Process standardization
• Architectural planning & governance




         SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /23
    BPM as part of the overall architecture


User
Interface                                            Forms          Portal       Dashboards   Duet   Business   SAP GUI     Mobile
                                                                                                      Client



                                       Business Process
                                                                                                            UI Composition
                                   Composition & Management
Enterprise SOA
Consumption
                                   Service & Event                                                                         Information
                                   Composition                                                                            Composition


SOA Inter-
                                    Service Bus                                                                  SOA Management
operability
                                                                                       SOA Design
                                                                                       Governance
Enterprise SOA                      Service & Event                                                                 Connectivity &




                                                                                                                                            Business Partner
Provisioning                        Enablement                                                                         Integration

                                   Process Components                          Platform Services
Service-
enabled                                 Order
                                        Mgmt.             ...                 MDM      BI      …
Applications                          SAP Business Suite                          SAP NetWeaver        Customer & Partner       Non SAP &
                                                                                   Components             Applications           Legacy




     SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /24
Business Activity Monitoring (BAM) closes the loop


       Business Activity Monitoring                                              Event Resolution
                                                                                   Event Resolution Templates to guide users context-
                                                                                   sensitively through problem
                                                                                   inspection and resolution of expected and un-
                                                                                   expected events

                                                                                 Process Efficiency
                                                                                   Analysis of efficiency of processes

                                                                                 Event Correlation
                                                                                   Subscription and handling of business process
                                                                                   events (key process milestones)
                                                                                   Milestone Monitoring Process Definition
                                                                                      BPEL-based BAM patterns
                                                                                      KPI look-ups (data enrichment from BI)
                                                                                      Integrated Alert Management


                                                                                 Embedded Event Infrastructure
                                                                                   Collecting, pre-filtering and publication of events for
                                                                                   inter-system usage across SAP and Non-SAP
                                                                                   systems




SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /25
Adoption of BPM is accelerating


                                                                     3,400                   80%* automate processes with BPEL
                                                                                             75%* integrate with business partners
                                                                     1,700                   70%* replace & migrate other middleware
      2,200                                                                                      •   Homegrown technology
                                                                                                 •   SAP Business Connector
                                                                                                 •   webMethods
      1,000                                                                                      •   Vitria
                                                                                                 •   SeeBeyond
       4/06                                                          4/07                    Interoperation with
                                                                                                 • Microsoft
                       Active Installations of SAP PI                                            • IBM
                       Licensed non-SAP integration                                              • Tibco

       <2004                                    2004                                      2006                            2007           2008

SAP Exchange                       SAP NetWeaver 2004                             SAP NetWeaver 7.0                  SAP NetWeaver
Infrastructure                          Exchange                                  Process Integration              Process Integration
      2.0                           Infrastructure 3.0                               Usage Type                           7.1

                                  •   BPEL processes                             • Local proc. integration     •   ESR
                                  •   JCA adapter engine                         • Conversion Agent            •   SOA infrastructure
                                  •   Enhanced B2B                               • Enhanced mapping,           •   BAM infrastructure
                                  •   …                                            adapter, monitoring, …      •   Performance
*   SAP NW XI adoption survey 4Q06


SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /26
  BPM in the context of eSOA

                                                                                                SAP NetWeaver
                                                                                               ES Repository Tools




                                                                                                                Single source for
 CONSUMER
                                                                                                                discovery, enables
   TOOLS                                                                                                        simple mass
(Composition                                                                                                    configuration and
Environment)                                                                                                    runtime governance

                                                                                                                Taxonomy put services
                                                                 REFERENCE                                      in business context
                                                              SERVICES
                                                              REGISTRY                                          Business Process can
                            DISCOVER                       SERVICE MODEL                                        be within a service,
                                                            PUBLICATIONS                                        defined across services,
                                                                                    PUBLISH                     or within the consuming
                                                        SERVICE ENDPOINT
                                                          PUBLICATIONS                                          application

CONSUMER                                                                                           PROVIDER

 CONSUMER                                             DIRECT CONNECTION
    tbd
APPLICATION                                                                                          SERVICE
                                INVOCATION                                           SERVICE     IMPLEMENTATION
                                                                                    ENDPOINT
                                        Process Integration

                                                                ROUTING
                                                                MAPPING
                                                                  BPM

   SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /27
      Enterprise Services Bundles simplify consumption

  “Connecting the dots" between enterprise services for immediate business value


 Solutions build on                           Enterprise Services Bundles
 Enterprise Services
 Repository
                                                                                        Collaborative Wiki
     SAP
                                                                                            How-to-Use guidance
     Customer
                                                                                            Enterprise Services
     Partner                                                                                Packages description
                                                                                            Enterprise Services
                                                                                            Packages catalog




                                                                                            ES Repository Content
                                                                                                 Process Component
Enterprise services                                                                              Model
implementation
                                                                                                 Interface definitions
    Create Due Payment – Bill
                                                                                                 Business Objects
    Presentment and Payment
                                                                                                 Global Data Typs
    Create Batch -Manufacturing
    Work Instructions                                                                            Service operations
    List Open Sales Order –
    Customer Fact Sheet
       SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /28
                       WHAT’S NEXT?



SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /29
BPM with SAP NetWeaver – Roadmap Highlights




SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /30
 Evolution towards a Common Process Layer


Design Collaboration
                                                                     COMMON PROCESS LAYER            Composition

KPI Monitoring                              Executive

                                                                                   PROCESS
                                                                                   COMPONENTS
Conceptual Model
                                               LoB                                                     SAP Application
                                                                                   EXTENSION
                                                                                                       Core Processes
Specification Model                                                                POINTS
                                             Analyst


Execution Model                                                                                      Integration
                                            Architect




     Common Process Layer                                                                      B2B           NON SAP

         Design time for all process layers
         Extending application core processes
         Provides common runtime services
         One model, different views for different personas
         Common monitoring, lifecycle management and
         process performance management



  SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /31
BPM for Business Network Transformation


                                   Adaptable Business Processes

Innovate on top                                                                                         Accelerate Innovation
                                                                             Compose
of the Core Business                                                                                Faster Time to Process Change


Extend Application                                                                                Reuse Application Building Blocks
                                                                                    Standardize
Processes                                                                                            Lower implementation costs


Extend the                                                                                           Standards-based Integration
                                                                                 Integrate
Business Network                                                                                        Lower integration costs



     Standardize on best practices in SAP business applications
     Extend application processes by reusing application building blocks
     Integrate applications and business partners to extend process reach
     Compose new business processes to innovate

SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /32
         Business Network
          Transformation


SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /33
    A New Layer Complementary to Automation is Required

                 “5 out of 6 people in the Cisco Value Chain don’t
“                                 work for Cisco”

                                                                 John Chambers




                                Enabling Collaboration Across the Network in the
                                   Context of Business Processes and Events

    SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /34
  "External collaboration
 plays a key role in nearly
  50% of P&G products"
   AG Lafley, Chairman & Chief Executive Officer
                Procter & Gamble




"Collaboration & Web 2.0 will
  drive the next decade of
        productivity"
   John Chambers, Chairman & Chief Executive Officer,
                        Cisco




   "Transforming rural
 communities into vibrant
 economic organizations"
              Y C Deveshwar, Chairman,
                     ITC Limited
Surviving the Networked Economy
Globalization and speed of change are forcing new structures



      Linear value chain                                                         Business network
              “Built-to-last”                                                     “Built-to-adapt”




    Intermediate Customer                                                         End Customer
    Transactional Model                                                           Collaborative Model
    Command & Control                                                             Shared Ownership
    Innovation                                                                    Co-Innovation


SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /36
Rethinking Business Boundaries
How do we mitigate fragmentation of responsibility?




                                                                                 Who owns the customer?


                                                                                 Where is innovation
                                                                                 sourced from?


                                                                                 Who’s in charge of
                                                                                 compliance and risk?


                                                                                 How can you compete with
                                                                                 nimble new entrants?


                                                                                 What’s the process?


SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /37
Transition into business networks
Across people, companies, regions, cultures and industries



                                                                                 Network of Brains
                                                                                 Better relationships within a
                                                                                 community




                                                                                 Network of Businesses
                                                                                 Co-innovate with partners to
                                                                                 extend expertise




                                                                                 Network of Resources
                                                                                 Improve performance of
                                                                                 shared assets




SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /38
 Lever #1: Relationships
 Network of brains across suppliers, employees and customers




 Network of Brains

 Relationships
                                                                         Customer              Collaboration             People &
                                                                         Lifecycle              Innovation                Talent




The Home Depot                                                     Endress+Hauser                              Asian Paints shortened
captured lost sales by                                             evolved into a solution                     the hiring process by
empowering associates to                                           provider by deeply                          sharing real-time information
find and hold inventory for                                        embedding themselves into                   on vacancies and managing
customers in nearby stores in                                      their customer business                     the recruitment process with
case of stock-outs                                                 processes                                   agencies




  SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /39
 Lever #2: Innovation
 Network of businesses innovating on products and processes




             Product                                                               Strategic              Responsive
             Lifecycle                                                                 IT                  Networks




Kimberly Clark reduced                                             Whirlpool uses IT as a         Nike composed a new
time to market for new                                             strategic weapon for           global purchase
products by 50%,                                                   brand focused value creation   ordering process to connect
accelerating the pace of                                           with unique go to market,      to their suppliers and
product innovation                                                 connectivity to business       communicate real-time
                                                                   network & analytics            demand




  SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /40
 Lever #3: Performance
 Network of Resources managing risk and productivity




                                                                                   Active           Strategy, Finance
           Operational
                                                                                   Assets           and Compliance
           Excellence




GISA lowered Days                                                 Burda Digital created a      The Coca-Cola
Sales Outstanding by                                              new revenue stream by        Company improves
through electronic bill                                           sharing their assets and     competitive position by
payment and presentment to                                        processes with other book    managing performance
customers                                                         publishers in new segments   across brands, regions and
                                                                                               products.




  SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /41
Establish a business process platform
Stable core processes, flexibility to change the levers at will




                                                                                 Collaboration
                                                                                  Innovation
                             Customer
                             Lifecycle                                                              People &
                                                                                                     Talent


                                                                                   The
                                                                                 Business
                                                                                 Process
                                                                                 Platform
            Product                                                                                   Responsive
            Lifecycle                                                                                  Networks




                                                                                                 Strategy, Finance
                               Operational
                                                                                                 and Compliance
                               Excellence                                           Active
                                                                                    Assets

SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /42
Business @ Speed of Change
Business Networks are a new source of competitive advantage




                                           Accelerate product innovation & market entry
                                           50% acceleration in rate of product innovation

                                           50% less time required to enter new markets/segments




                                           Deliver quickly on evolving customer expectations
                                           Grow 2X as fast as your industry average

                                           Increase customer loyalty and reduce churn



                                            Improve corporate performance and manage risk
                                            Reduce days sales outstanding by 30 days

                                            79% reduction in compliance costs




SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /43
Lower risk, more innovation on one common platform




                                                                                                   A Business
                                                                                                   Network




                                                                                 Solutions
                                   ISVs                 Titans
                                                                                                           SAP’s
                                                                                                           Ecosystem
                    SI                                                                       Communities


                                                                Customers




SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /44
            COLLABORATION
                IS KEY


SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /45
 Business Process Expert: Personas Across the Enterprise


                                                                                    Executive


                                                 Business                                               Business
                                                   User                                                 Manager
Business                                                                            Business
                                                                                     Expert                          Design collaboration
                                          Business                                                                   • vertical
                                          Process                                                                      • layers of abstraction
                                           Experts                                  Business
                                            (BPX)                                  Analyst (BA)                      • horizontal
Business/IT waterline
                                                                                                                       • multi-design user support
                                                                                                                       • threaded model discussions
         IT                                                                                                            • model differencing
                                                                                 Process
                                                                              Architect (PA)


                                                    Info Architect                                Application
                                                         (IA)                                      Architect



                          IT Admin                          Application                   IT Services           IT Developer –
                                                            Consultant                     Developer              ‘Hard Core’
  SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /46
Building A Community for Business Process Experts


                                                                 bpx.sap.com




                                                                                 ~ 200,000
                                                                                 community
                                                                                  members




SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /47
Business Process Expert Community
First community focused on business process innovation


Exclusive Content                                                                Industry Knowledge
        Best practices in methodologies with
                                                                                 Industry-based best practices for 12
        case studies and examples
                                                                                 industries and growing
        Business Process Lifecycle stages
                                                                                   CP                            Oil & Gas
        Process modeling                                                           Chemicals                     Mining & Metal
                                                                                   Public Sector                 IM&C
        Change leadership                                                          Defense                       Life Science
        Analytics, Supply Chain Management,                                        Healthcare                    Utilities
                                                                                   Higher Education & Research   Retail
        GRC


Enablers & Tools                                                                  Skills Enhancement
        Visual Composer                                                                Getting started with role profile,
        ARIS for SAP NetWeaver                                                         tasks, skills required
        ES Bundles                                                                     Personal professional skills
        SAP Discovery System                                                           certification
        for Enterprise SOA




SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /48
  Ecosystem in Action: Community Driven Innovation
  SDN and Business Process Expert Communities


                                                                                 Real time co-
                                                                                 innovation
                                                                                 -Median time before
                                                                                 community answer
                                                                                 question online
                                                                                       16 minutes


                                                                                 Business Process
                                                                                 Expert community



                                                                                 SAP Developer
                                                                                 Network




SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /49
             WHERE TO NOW?



SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /50
Transitioning the Role of IT

THE CURRENT WAVE WILL HAVE A BIG IMPACT ON CIOs




                                                                                           Chief Process Innovation Officer
                                                                                           • Partner of LOBs
                                                     CPIO
Value to the organization




                                                                                           • Designs processes with
                                                                                             the business’ network
                                                                                           • Requires new skills to be developed
                                                                                             as part of the IT organization
                            CIO

                                                                                           Chief IT Officer
                                                                                           • Continued reduction
                                                     CITO                                    in IT budgets (outsourcing)
                                                                                           • Drive landscape consolidation



                                                                                    time




   SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /51
         Trends Today Are Re-Shaping the Workplace


        Demographics                                                               Web 2.0         Nature of Work

    Domination of                                                        Consumer-like          Increasing array of
    information work across                                              expectations           exceptions
    regions…                                                             Internet as lean       Collaboration across
    ..and across industries                                              consumption platform   boundaries
    Rise of mobile work                                                  Advanced, exception-   Needs context not
    Millennial workforce                                                 focused analytics      information



 1990s                                                        Task Workers     2010+
                                                              Knowledge Workers




*Source: IDC, The Yankee Group, Datamonitor, Unstrung News
          SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /52
Rooftop – Lightweight Composition Platform




                                                                                   Target user of light weight composition is
                                                                                 the information worker who
                                                                                    develops content-oriented, not function, object
                                                                                    or process oriented
                                                                                    develops using a mouse
                                                                                    composes from multiple systems and
                                                                                    interrelates the services
                                                                                    does all of this in a browser on various devices
                                                                                    likes the interface he uses
                                                                                    uses any web technology



SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /53
  Heading towards an Internet of Services




                                                                                                                          Legal Services
                                                            Whypayfullprice.com.au          Business Opportunities

                 e               b
            er W
Service Marketplace
               um
        s
     Con

                                                                Mortgage Broker                                                Banking




                                                                                                    Aggregated
                                                                                                        Smart Licence
                                                                                                     Services
 Digital Communities
                            b
                         We
                                                                         Logistics

                  es   s                                                                                                    Demographics

            u sin
        B


                                                                            Regulation &
                                                                          Compliance, SME
                                                                          ERP Compliance
                                                                                                                           Taxation Lookups



Dynamic Trade Exchange                                                                                       Incubation

   SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /54
Parting Thoughts


         Open Source……


         Web 2.0……


         Software as a Service……


         Compliance & Governance……




SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /55
                                                                   THANK YOU FOR YOUR
                                                                       ATTENTION !
                                                                      s.dale@sap.com



Become a member of our community
Business Process Experts at bpx.sap.com
SAP Developer Network at sdn.sap.com



SAP APJ 2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /56

								
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