BPM103 Blending Business Process Management and SOA.pdf

BPM103 Blending Business Process Management and SOA

Ann RosenbergBTC Global Practice Ownership for BPMBusiness Transformation Consulting, SAP

Marc DietrichBTC BPM Grid, IT Engineering Business Transformation Consulting, SAP

SAP 2008 / SAP TechEd 08 / BPM103 Page 3

Having problems organizing your processes?


1. Linkage between BPM and SOA1.1. Why BPM and SOA need a Tandem Approach1.2. The Business View on SOA1.3. Principles of BPM and SOA Governance1.4. Tool Landscape Example

2. SAPs four BPM Deliverables2.1. BPM Governance2.2. BPM Methodology2.3. BPM Technology2.4. Business Process Management for the Business Process Expert

Agenda


End to End process spans manual and automated

activities

Standard Activities

Differencing Activities

Typically >80%

Processes that should be as cost effective as possible

Typically


6

BusinessSilos

StandardizedTechnology

OptimizedCore

BusinessModularity

DynamicVenturing

IT capability

Local IT applications

Shared technical platforms

Companywide standardized processes or databases

Plug-and-play business process modules

Seamless merging with partners systems

Businessobjectives

ROI of local business initiatives

Reduced IT cost Cost and quality of business operations

Speed to market; strategic agility

ROI of new business ventures

Who defines applications

Local business leaders

IT and business unit leaders

Senior management and process leaders

IT, business, and industry leaders

IT, business, and industry leaders and partners

Strategic implications

Local/functional optimization

IT efficiency Business/operational efficiency

Strategic agility Organic reconfiguration

Source: Ross et. al, 2006

Today Future

Architectural Maturity Stages, by Ross Companies move from standardization to business modularity

History

PresenterPresentation NotesRoss, Jeanne. W. 2003. Creating a strategic IT architecture completely: Learningin stages. MIS Quarterly Executive, 2(1), 31-43.Ross, J. W., and Vitale, M. R. 2000. The ERP Revolution: Surviving vs.Thriving. Information Systems Frontier, 2(2), 233-241.Ross, J. W., Weill, P., and Robertson, D. C. 2006. Enterprise Architectureas Strategy. Harvard Business School Publishing.

Skok and Legge (2002) summarize the early key drivers for adoptingERP systems as: Legacy systems and Y2K system concerns Globalization of business Increasing national and international regulatory environment, forexample, the European Monetary Union BPR and the current focus on process standardization, for example,ISO9000 Scalable and flexible emerging client/server infrastructures A trend towards collaboration among software vendors


UI

Logic

Data

Traditional Architecture

Application

Application

Enterprise Services ArchitectureSAP Business Suite

Innovation for D

ifferentiationStability and

Reliability

Composite Applications

Enterprise Service Repository

CRM

Enterprise Service Repository

Best Practice

SAP Enterprise Service Architecture ensures low TCO and flexibility without disruption Support Business Modularity

(Ross, Business Modularity)(Ross, Standardized Technology and Optimized Core)


Case study Arla Foods IT history and the direction outlined in the strategic IT plan for 2007-2012.

(Ross, Standardized Technology and Optimized Core) (Ross, Business Modularity)


Case study Arla Foods IT history and the direction outlined in the strategic IT plan for 2007-2012.

BUSI

NESS

ARCH

ITEC

TURE

APPL

ICAT

ION

ARCH

ITECT

URE

TECH

NICA

L

ARCH

ITEC

TURE

EnterpriseArchitecture

BPM

SOA

Service Oriented

SAP 2008 / SAP TechEd 08 / BPMX Page 9

(Ross, Business Modularity)


New Functionality Business responsiveness

Change business process quickly and

effectively

Business optimization Increase decision

quality Optimization across boarders of Bus.& IT

Transformation from reactive to real-time

Increase Transparency

IT cost reduction and control

Reduce time-to-market Documented

processes

A culture of heroes

Processes are improved at the work group or

department level

Processes are organized and

redesigned at the enterprise level

Processes are measured and

managed systematically

Process Teams continuously

improve processes

No organized processes

Level 1 Some organized processes

Level 2 Most Processes Organized

Level 3 Processes are managed

Level 4 Processes are continuously improved

Level 5

Transformation NeedPro

cess

Matur

ity

Based on CMMI

The process maturity journey which is needed to execute Business Modularity


(Ross, Standardized Technology and Optimized Core)

(Ross, Business Modularity)


Business Perspective

Understand the Need for the Linkage between BPM and SOA

GetArticle

IT Perspective



GetArticle

IT Perspective

IT-relevant Modificationssometimes havean immediateImpact on theBusiness Process

Business Requirementshave an impacton the underlayingIT Landscape

?

The Need for the Linkage between BPM and SOA

?SynchronisationResponibilitiesRequirements

?


IT Perspective


Service Perspective CatalogueArticles

GetArticle

IT relevant Modifications only have anImpact on the correspondingService Implementation. The Service Specificationremains untouched.

A business orientedService Model is derivedout of current BusinessRequirements



IT Perspective


Service Perspective CatalogueCustomers

CreateCustomer

BusinessPartner ID

Customer-Number

Straight Abstraction regardingtechnical Details and

Business Requirements



SAP Reference Content (e.g. CPI)

Business Process and Business Service Modeling

Any other Method forBusiness Process Modeling

Versicherter

Start Event End EventIntermediate Event

Funktion

Artifact

Funktion

BusinessServiceModel

Domain 1Component

Component

Domain 2Component

Component

Domain 3Component

Component

Business Service Modeling

Service Model to IT-Landscape Mapping

Software Development Design Time Governance Run Time Governance


BPM Governance

SOA Governance

Why BPM and SOA Governance Matters?

Wild West SOANo harmonization, duplications, wrong granularity, low re-use

Shelfware SOAWell-designed SOA, missing buy-in, low (re-)use

Blown Budgets and DeadlinesWorking SOA, alignment and skill set / methodologies underestimated, many lessons hard learned pain and effort

In 2006, lack of working governance mechanisms in midsize to large (fewer than 50 services), post-pilot SOA projects will be the most-common reason for project failure (0.8 probability).

Paolo Malinverno et al, Gartner, 2006

Wild West Process LandscapeMissing responsibilities and change management

Shelfware Process LandscapeWell-designed process landscape, wrong communication channel, low (re-)use

Missing TransparencyNo institutionalization of process governance, missing staffing poor acceptance and productivity


IT Perspective


BPM and SOA Governance

Service Perspective

CatalogueArticles

GetArticle

Identification of the right Services Lasting Granularity of Services Ensured Reusability Defined Responsibles for

Process Components

Defined Roles and Owners forProcesses and Business Entities

Defined Modeling Convention Defined Process Structure PPIs

Defined Responsibles forSolutions and Business Objects

Global Data Types Quality Ensurance

B

P

M

a

n

d

S

O

A

M

a

n

a

g

e

m

e

n

t

L

i

f

e

c

y

c

l

e

SOA & ITGovernance

BPM & SOAGovernance


IT Perspective


BPM and SOA Governance

Service Perspective

CatalogueArticles

GetArticle

SAP Enterprise Modeling applications by IDS

Scheer - Business to Model

SAP Enterprise Modeling applications by IDS Scheer

- Enterprise Service Repository

SAP NetWeaver Business Process

Management- Model to Execution

SAP SolutionManager- Application Management


Business Process and SOA Management Example Setup with SolMan, ARIS, ESR, Proc. Composer

Proc. ComposerModel to ExecutionOwner: Business

Process Expert

ESR(Service Repository)

ARIS 7.1Business to Model - Owner: Business

Solution ManagerApplication Management System

Owner: ITOrganisation

Functi onsData

Proce sses

Products

ProcessChains

Business Processes

Process Steps

Main Processes

Core Processes

Business Processes

Process Steps

Activities

Process Chains

Logical Service Model

Process Components

Q4/08

Main Proc.

Core Proc.

Business Process Management and Service IdentificationSAP Standard Approach SOA


1. Linkage between BPM and SOA1.1. Why BPM and SOA need a Tandem Approach1.2. The Business View on SOA1.3. Principles of BPM and SOA Governance1.4. Tool Landscape Example

2. SAPs four BPM Deliverables2.1. BPM Governance2.2. BPM Methodology2.3. BPM Technology2.4. Business Process Management for the Business Process Expert

Agenda


SAPs 4 BPM deliverables

SAPBPX



1 2 3 4

STRATEGY SET-UP TRANSITION CONTINUOUS IMPROVEMENT

MANAGE CHANGE

COMMUNICATE & TRAIN

LINK TO STRATEGY

DEFINE BUILDING BLOCKS

CHOOSE PATH

MONITOR FIT-GAP

DEFINE BASICS

DEVELOP ANALYTICS

CREATE METHODS

HARMONIZE TERMS

CREATE BASIS

PERFORM ANALYSIS

DEFINE PORTFOLIO

OPTIMIZE PROCESSES

ADD PROCESS-BASED REWARDS

+EXPAND REPORTING

ALLOCATE BUDGET

PERFORM AUDITS

BUILD PROCESS-CENTRIC IT

In order to realize a BPM Governance, SAP offers a structured 4 step approach

+

+


PresenterPresentation NotesThis part of the book will provide a step-by-step approach, or roadmap, forimplementing BPM in any type of company, be it a global enterprise or amom-and-pop shop. Just like an ordinary roadmap provides a driver with thedetails he or she needs to get from Point A to Point B, this BPM roadmapprovides a detailed guide for becoming a process-oriented company driven byBPM.


SAPs new BPM Methodology - SAPs approach for analyzing and optimizing business processes

Detailed to be design for weaknesses elimination regarding all aspects evaluated during As-Is

Clearly defined and agreed project goal List of prioritized processes to be

analyzed in detail

As-IsAnalysis

To-BeDesign

SolutionTransformationCalibration

1 2 3 4

Understand high level business vision and strategy Identify business success factors Identify IT strategy and IT

principlesDefine high level process

landscapePrioritize processes

Identify relevant process parameters and classificationDocument As-Is processes and

process flowAnalyze processes and identify

weaknesses Identify interdependencies and

cluster weaknessesAssess and prioritize weakness

clustersHigh level As-Is IT system

landscapeDerive additional information from

as-is processes

Specify non functional requirementsDevelop weakness cause

elimination approach for all relevant weakness clustersCreate to be process definition and

map solutionsDetail process description on

activity levelAdd additional information while

developing the to-be process definitionAggregate information derived

during to be process definitionDerive necessary adoptions of the

organizational structure

Generic Content for all target tracks:Overview solution approach

per business processDevelop transformation

roadmapFirst Version: Architecture

overview of the solution Identity management and

security concept for the solutionRequirements for master data

concept

Target Tracks:Core ConfigurationCore Enhancement SOA / Composition Third Party Solution

approach

Prioritized and clustered list of weaknesses regarding process, organizational or IT technical aspects.

BPM Blueprint that provides details of identified solution tracks. (Core, SOA) and relevant content for all tracks.


SAPs new BPM Methodology supplement to ASAP

Process Project

Project Management Methodology (PMM)

Discovery Evaluation

Initiate Plan Execute/Control Close

Implement

Accelerated SAP (ASAP)

Project Preparation

Business Blueprint

Realization Final Preparation

Go Life &Support

Process Management Lifecycle (PML) integrated with Six Sigma

Run/MonitorDesignAnalyze

BusinessStrategy & IT Strategy

Implement

Process Operations


Target: Project M

anagement

Target: PML (M

anual andautom

ated processes)

Target: BPM for Im

plementing

an automated solution

PM

PO/PBX

SAP PM/ BPX

Solution transformationCalibration

To-Be process design

As-Is analysis

SAP BPM Methodology


Business Process Excellence with SAP and IDS Scheer

Model to ExecutionBusiness to Model

SAP Enterprise Modeling applications by IDS

Scheer

SAP NetWeaver Business Process

Management

SAP Enterprise Modeling applications by IDS Scheer complement the Business Process Management capabilities of SAP NetWeaver

Process Server

ProcessComposer

ProcessDesk

ProcessDesk


for process project support

for facilitating co-operation between business & IT and

connection to SOA Governance

Business IT

BPM process knowledge (Best practices, composition software, enterprise services, tools)

for BPM quality assessments (BPM conventions, process maturity)

knowledge transfer of BPM methods & tools

Process Owner

EmployeeARISNimbusPPM

PML Six Sigma

certifiedalligned

BPM Experts Support the Complete Life Cycle of a BPM Governance and Provide the Connection to SOA Governance


Fuel your Career with SAP Certification

Take advantage of the enhanced, expanded and multi tier certifications from SAP today!

What the industry is saying Teams with certified architects and

developers deliver projects on specification, on time, and on budget more often than other teams.2008 IDC Certification Analysis

82% of hiring managers use certification as a hiring criteria.2008 SAP Client Survey

SAP Certified Application Professional status is proof of quality, and thats what matters most to customers.*Conny Dahlgren, SAP Certified Professional

PresenterPresentation Notes


BPM and SAP Basic

BPM Governance

BPM Methodology

BPM Technology

We have created curriculum to prepare you for the exams: Business Process Expert (Associate)

BPM300

BPM300 Governance Overview: (Strategy, Set-Up, Transition,

Continues Improvement and BPM supporting activities)

3 Day

BPM100

BPM100 Methodology

2 Days

BPM010

BPM010: A New Strategic Context?

SAPNW

SAPNW Overview

SAP01

SAP01 SAP Overview

SMO01

SMO01 Solution Manager OverviewBPM020

BPM020 Modeling overview IDS Scheer

BPM130BPM130 SAP

Business Designer by IDS Scheer

2 Days SOA100SOA100 SAP

Enterprise SOA Fundamental

2 Days

BPM030BPM030 Solution Manager in a BPM

set-up

Certification


PresenterPresentation Notes6-7 minutesBPM Governance, methodologyBPMX site (live demo)


BPM and SAP Basic

BPM Governance

BPM Methodology

BPM Technology

Certification

BPM310

BPM310 Governance in detail: (Strategy, Set-Up, Transition, Continues Improvement, Build a Process-Centric IT, Manage Change and Communication and

Training)

3 Day

BPM150

BPM150 SAP Business Server and Publisher, Enterprise Modeling , Process Optimization

and Performance Management by IDS Scheer

2 Days BPM140

BPM140 Model to Execution (SAP NetWeaver Business Process Management)

3 Days

SOA120

SOA120Methodology for BPM blending

with SOA

2 Days

We have created curriculum to prepare you for the exams: Business Process Expert (Professional)



Roadmap to Business Process Management

Obtain a comprehensive framework for implementing Business Process Management

Find insights and experience from leading companies on their BPM journey

Learn how to benefit from service-oriented architecture using BPM

This unique book finally sheds light on Business Process Management - a term often misunderstood and misused. It explains what BPM is, how to implement it in your company, and gives real-life examples of BPM implementations. Throughout the book, the authors share their extensive experience with BPM: Not only do they explain the phase model and the building blocks of the BPM approach (both, for the business and the IT perspective), they also cover the important topic of aligning BPM and SOA concepts. Here, readers get invaluable information on modeling and composing tools, enterprise service-oriented architecture, project milestones, and monitoring approaches.

Snabe, Rosenberg, Mller, Scavillo


Further Information

Related SAP Education and Certification Opportunitieshttp://www.sap.com/certificationhttp://www.sap.com/education

SAP Public Web:SAP Developer Network (SDN): www.sdn.sap.comBusiness Process Expert (BPX) Community: www.bpx.sap.comSAP BPX: https://wiki.sdn.sap.com/wiki/display/SAPBPX

TechEd2008 sessions:BPM103, SOA204, BPX Clubhouse Lounge 1 and 2, BPX Clubhouse Theater



SDN Subscriptions offers developers and consultants like you, an annual license to the complete SAP NetWeaver platform software, related services, and educational content, to keep you at the top of your profession.

SDN Software Subscriptions: (currently available in U.S. and Germany) A one year low cost, development, test, and commercialization

license to the complete SAP NetWeaver software platform Automatic notification for patches and updates Continuous learning presentations and demos to build

expertise in each of the SAP NetWeaver platform components A personal SAP namespace

SAP NetWeaver Content Subscription: (available globally) An online library of continuous learning content to help build skills. Starter Kit

Building Your Business with SDN Subscriptions

To learn more or to get your own SDN Subscription, visit us at the Community Clubhouse or at www.sdn.sap.com/irj/sdn/subscriptions


PresenterPresentation NotesUnlike trial versions which expire after 90 days, requiring you to uninstall, reinstall, and re-configure. SDN Subscriptions provides developers uninterrupted access to an environment that they can personalize and completely control, saving them valuable time and increasing productivity through reduced downtime.

Specific subscriptions include: SAP NetWeaver Development Subscription. Hands-on access and ownership to the complete SAP NetWeaver software platform. (available in Germany and U.S.) Low cost, access to the SAP NetWeaver platform with a one year, development and commercialization license Choice of development method with SAP NetWeaver ABAP, Java, and/or composite applications Continuous learning presentations and demos to build skills in each of the SAP NetWeaver platform components SAP NetWeaver Content Subscription. An online library of continuous learning content to help build skills. (available globally)SAP NetWeaver Composition Subscription. Uninterrupted, total control for creating, testing, and selling Java-based solutions that integrate with SAP applications. (available in Germany and U.S.)

To learn more or to get your own SDN Subscription, visit SAP NetWeaver, Development Subscription, www.sdn.sap.com/irj/sdn/devsubSAP NetWeaver, Content Subscription, www.sdn.sap.com/irj/sdn/subscriptions/contentSAP NetWeaver, Composition Subscription, www.sdn.sap.com/irj/sdn/subscriptions/composition

Key Benefits include: Complete control Uninterrupted, hands-on access Latest NetWeaver software Continuous learning And Supporting services


Thank You!

Ann RosenbergBusiness Transformation ConsultingBusiness Consulting DK

SAP Denmark

E [email protected]

Marc DietrichBusiness Transformation ConsultingIT Engineering

SAP Deutschland AG & Co. KG

E [email protected]


Please complete your session evaluation.Be courteous deposit your trash,

and do not take the handouts for the following session.

Thank You !

Feedback

BPM103Blending Business Process Management and SOA Slide Number 3AgendaSlide Number 5Architectural Maturity Stages, by Ross Companies move from standardization to business modularity Slide Number 7Case study Arla Foods IT history and the direction outlined in the strategic IT plan for 2007-2012.Case study Arla Foods IT history and the direction outlined in the strategic IT plan for 2007-2012.The process maturity journey which is needed to execute Business Modularity Understand the Need for the Linkage between BPM and SOAThe Need for the Linkage between BPM and SOAThe Need for the Linkage between BPM and SOAThe Need for the Linkage between BPM and SOABusiness Process and Business Service ModelingWhy BPM and SOA Governance Matters?BPM and SOA GovernanceBPM and SOA GovernanceBusiness Process and SOA ManagementExample Setup with SolMan, ARIS, ESR, Proc. ComposerAgendaSlide Number 21Slide Number 22SAPs new BPM Methodology - SAPs approach for analyzing and optimizing business processesSAPs new BPM Methodology supplement to ASAPBusiness Process Excellence with SAP and IDS ScheerSlide Number 26Fuel your Career with SAP CertificationWe have created curriculum to prepare you for the exams: Business Process Expert (Associate)We have created curriculum to prepare you for the exams: Business Process Expert (Professional)Roadmap to Business Process ManagementFurther InformationBuilding Your Business with SDN SubscriptionsSlide Number 33Feedback

Documents

BPM103 Blending Business Process Management and SOA.pdf