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© 2013 IBM Corporation
IBM BPM for SAPEnhancing the value of your SAP investment with BPM
David Keyes
BPM Sales Executive, North America
20 February 2013
© 2013 IBM Corporation
Governments face common challenges when improving processes
� Processes reside inside applicationsProcesses are rigid and costly to change IT changes needed lag far
behind with passage of time, changes may no longer be relevant
� Processes span multiple applicationsAny changes have implications across all applications inefficient and
ineffective processes remain long after the need for change has been
recognized
� Undocumented manual processesNo automation exists to enable on-the-fly process changes
No automation exists to trigger processes based on
events or patterns
� Ad-hoc processesMost systems are not equipped to capture ad-hoc work
Most ad-hoc processes often not tracked or monitored
Costs remain hidden and ad-hoc processes remain ad-hoc
BPM Addresses These Challenges to Provide Integrated End-to-End Solutions
© 2013 IBM Corporation
Process is a priority for Clients
Data September 2010 Information Week 500 Survey
Process is Priority!
Process Improvement is the #1 Priority for CIOs - 5 years in a rowGartner, Inc, “Leading in Times of
Transition: The 2010 CIO Agenda”
Get better business intelligence to more employees, faster
Introduce new IT-led products or services for our customers
Make business process more efficient
Lower IT or business costs
Improve Web operations or customer experience
Improve customer service
Engage customers in new ways
56%
40%
36%
34%
26%
24%
36%
56%
40%
36%
34%
26%
24%
36%
© 2013 IBM Corporation
Typical process problems
1. Unstructured Tasks and
Communication (ex Paper or
email)
2. Inefficient Working Environment
Spans Systems
3. Inconsistent Prioritization
4. Incomplete or Inaccurate Data
Flow Between Systems
5. Lack of Control Over System
and Business Events
(Exceptions)
6. Poor Visibility Into Process
Performance
7. Inconsistent or inefficient
execution of business rules
SAP processes are typically ‘informal’, due to documentation-centric implementations. ABAP customization is often
used to help manage and optimize SAP processes.
ExecutiveManagement
CustomerService
InvoiceReconciliationTeams
Finance and Ops
AccountAdministration
11
22
33
55
44
66
© 2013 IBM Corporation
IBM BPM Overview
ExecutiveManagement
CustomerService
Risk ManagementTeams
Financeand Ops
Account Administration
PROCESS
RULES
PEOPLE
SYSTEMS
ExecutiveManagement
CustomerService
Risk ManagementTeams
Financeand Ops
Account Administration
PROCESS
RULES
PEOPLE
SYSTEMS
The picture IS your SAP process…
� BPM provides innovative tooling to capture, understand, document, collaborate, and optimize ANY business process causing the most pain, or needing the most visibility
� BPM projects do not require disruptive multi-year investments
� IBM BPM allows you to create process models that execute the process while capturing process metrics and key business data for improved visibility and control
© 2013 IBM Corporation
IBM BPM – An innovative solution to a complex problemEmbrace complexity, adapt quickly and exceed expectations
© 2013 IBM Corporation
In this presentation, you will learn how IBM BPM enhances your SAP investment
Benefit SAP Only SAP with IBM BPM
Improve alignment of strategies and operations �� ����
Improve productivity �� ��������
Improve insight �� ������
Reduce costs through increased flexibility �� ��������
Support changing industry requirements �� ����
Optimize IT spending �� ����
Reduce risk �� ����
Improve financial management and corporate governance �� ����
Gain higher ROI faster �� ������
Provide immediate access to enterprise information �� ����
Give employees new ways to access enterprise information �� ����
© 2013 IBM Corporation
Most SAP implementations have issues today
Rigid ProcessesOver BudgetLate Deployments
Poor Operational Visibility ROI Targets Not Met
© 2013 IBM Corporation
SAP Process Management Challenges
9
Most SAP
implementation
documentation
is static and does not reflect the
processes actually
being used
Most SAP processes rely
on human compliance
with process
documentation…
…much
customizationis often required
…making it
difficult to
migrate to future releases
© 2013 IBM Corporation
A simple SAP process today
A high level process blueprint is defined in PowerPoint, Visio,
SAP Solution Manager or a modeling tool, including
transactions:
VD03 - Display customer masterVD03 - Display customer master
VA01 - Create sales order; VA01 - Create sales order;
CK51N - Create Order BOM Cost EstimateCK51N - Create Order BOM Cost Estimate
VOK0 - Maintain Pricing;VOK0 - Maintain Pricing;
IW21 - Create notificationIW21 - Create notification
The implementation then relies on users to read, properly
understand and comply with documentation
by entering the proper sequence of transaction codes in SAP.
© 2013 IBM Corporation
With this approach, how can you?...
� Quickly know the status of key processes?
� Ensure that the process you designed is the process that is being executed?
� Get real-time visibility into where workload or other bottlenecks are causing business issues?
� Effectively reroute work to less experienced workers to reduce bottlenecks?
� Know which process changes are most likely to help improve business performance?
� Quickly rollout SAP process changes?
� Quickly integrate new process workers into your business?
Many SAP customers
attempt to address these
issues with customization.
© 2013 IBM Corporation
SAP provides services that should help
…but no easy way to implement
public String search(){
try {
// Retrieve an instance of the configuration port
EmployeeBasicDataByEmployeeQueryResponseIn port = service
.getEmployeeBasicDataByEmployeeQueryResponse_InSoapBinding();
// specify username and password issued for you via SDN
// to authenticate to the backend as follows
javax.xml.ws.BindingProvider bp =
(javax.xml.ws.BindingProvider) port;
Map<String, Object> context = bp.getRequestContext();
context.put("javax.xml.ws.security.auth.username", "username");
context.put("javax.xml.ws.security.auth.password", "password");
// Construct the input to be applied to the service call
EmployeeID employeeID = new EmployeeID();
employeeID.setValue(this.employeeID);
EmployeeBasicDataSelectionByEmployee employeeByEmployee =
new EmployeeBasicDataSelectionByEmployee();
employeeByEmployee.setEmployeeID(employeeID);
EmployeeBasicDataByEmployeeQueryMessage input =
new EmployeeBasicDataByEmployeeQueryMessage();
input.setEmployeeBasicDataSelectionByEmployee(employeeByEmployee);
// Invoke the business methods
EmployeeBasicDataByEmployeeResponseMessage output = port
.employeeBasicDataByEmployeeQueryResponseIn(input);
Employee employee = output.getEmployee();
//Get the response
this.employeeName = employee.getCommon().getName().getGivenName();
this.employeeLastname =
employee.getCommon().getName().getFamilyName();
this.employeeBirthday = employee.getCommon().getBirthDate();
this.employeeMaritalStatus =
employee.getCommon().getMaritalStatusName().getValue();
return "ok";
} catch (Exception e) {
//Clean the object and return an error
this.employeeID = "";
this.employeeName = "";
this.employeeLastname = "";
this.employeeBirthday = null;
this.employeeMaritalStatus = "";
return "error";
}
© 2013 IBM Corporation
IBM offers a comprehensive solution to common SAP process challenges
Challenge IBM Solution
Opaque SAP processes make process analysis
and improvement difficult
Iterative, playback-based modeling facilitates
transparent process definition
Rigid SAP processes increase time to value Directly execute SAP process models for flexible
processes and rapid process change cycles
End-to-end processes are difficult to model,
simulate and manage
Easily orchestrate heterogeneous processes for
simple end-to-end control
SAP Enterprise Services are difficult to use and
incomplete
Easily consume and deploy SAP Enterprise
Services at the business level
Limited SAP process and real-time visibility causes
risk to KPIs and SLAs
Actively monitor and manage SAP and
heterogeneous processes in real time
Low utilization of inline operational decision
management limits productivity
Improve process throughput, consistency and
responsiveness with active inline decision
management
© 2013 IBM Corporation
With IBM BPM 8.0
14
The picture IS your SAP process…
All in one tool – analysis through execution through improvement
Analyze. Define. Execute. Monitor. Improve.
© 2013 IBM Corporation
IBM BPM for SAP capabilities
Process Blueprinting
Process Integration
and Orchestration
Process Automation
Process Discovery
and Monitoring
Decision Automation
Increasing In
tegratio
n
Guided Workflow
Use an iterative, experiential-based approach to accelerate
traditional SAP blueprinting
Mine SAP business events to discover actual processes and
act in real time to business challenges
Interactively guide end users through SAP screens to
improve productivity, visibility and consistency
Optimize process steps to improve cycle time, manageability
and visibility of key processes
Dramatically reduce the cycle time of high volume processes
by reducing/removing human interaction
Automate complex decision making to reduce bottlenecks
and improve business outcomes
© 2013 IBM Corporation
IBM BPM 8.0 integrates seamlessly with SAP
FIFinancialAccounting
COControlling
PSProjectSystem
WFWorkflowIS
IndustrySolutions
HRHumanResources
MMMaterialsMgmt.
SDSales &Distribution
PPProductionPlanning
QMQualityMgmt.
PMPlant Maintenance
SMServiceMgmt.
ECEnterpriseControlling
AAAsset Accounting
SAP
Applications
Upload processes to
Solution Manager
Download processes
from Solution Manager
Orchestrate SAP
Services
Retrieve Enterprise
Service Definitions
Monitor SAP
Business Events
© 2013 IBM Corporation
IBM Business Monitor for SAP Process Discovery
� View SAP transactions as processes – without
process orchestration!
� Easily create ‘shadow process’ views of SAP Business
Events by associating milestones with changes in
business state
� Completely non-intrusive to SAP – simply turn on the
SAP Business Events needed
� Automatically create a process view of any SAP
Business Event(s) to:
• Understand the actual SAP processes being used in
production
• Prepare for process innovation
• Detect business challenges as they happen
• Fix issues before they become problems
All without disrupting your SAP
environment! (and no custom
coding)
© 2013 IBM Corporation
Use ‘live’ process execution to design and test SAP business processes, then implement your
SAP process inside the same tool!
Playback-based iterative SAP process blueprinting
Model Processes
Playback Process
Invoke Screens
Monitor Results
Simulate and Refine
Deploy!
SAP Solution Manager
Design, build and refine processes for execution in a single integrated tool set. Optionally store process definitions in SAPSolution Manager Repository.
Iteratively invoke or design screens as part of the process definition exercise
Playback modeled processes at any time to directly see, feel and touch the real process
Empirically understand how the process can meet KPIs and SLAs
Simulate changes without changing the current model
Promote the new or changed process into production
© 2013 IBM Corporation19
IBM BPM Drives Faster and Better Blueprinting for Your SAP Implementation
� ‘Live’ playback during all phases of process design and rollout
� Reduce blueprinting time and costs
� Deliver agile SAP business processes that are easy to change
� Create market-differentiating SAP processes
� Position your SAP implementation for process orchestration and continuous process improvement Business users can
directly drive the SAP
blueprinting process.
© 2013 IBM Corporation
IBM BPM can deliver guided workflow for SAP
Invoke the correct SAP transaction sequence for each process instance, while gaining real time insight into business performance issues and opportunities
VD03 -
Display
customer
master
VD03 -
Display
customer
master
VA01 -
Create
sales
order
VA01 -
Create
sales
order
CK51N -
Create Order
BOM Cost
Estimate
CK51N -
Create Order
BOM Cost
Estimate
VOK0 -
Maintain
Pricing
VOK0 -
Maintain
Pricing
IW21 -
Create
notification
IW21 -
Create
notification
Select
customer
Select
customerNew pricing Required?
SAP Process Flow in IBM BPM V8
Transactions (Native SAP Screens) Automatically
Invoked in SAP
Yes
No
© 2013 IBM Corporation21
Workflow in the Traditional SAP Implementation
� Process designers create SAP documentation (paper, Word, HTML, etc.)
� Users are trained in how to use the SAP process documents
� Some users comply with the process as designed, others create their own
� Training time for new users is often lengthy
� Difficult to move users from task to task, even in the same department
� Little to no visibility of backlogs, bottlenecks, poor throughput and other process issues
VD03 - Display customer masterVD03 - Display customer master
VA01 - Create sales order; VA01 - Create sales order;
CK51N - Create Order BOM Cost EstimateCK51N - Create Order BOM Cost Estimate
VOK0 - Maintain Pricing;VOK0 - Maintain Pricing;
IW21 - Create notificationIW21 - Create notification
© 2013 IBM Corporation
IBM BPM Guided Workflow Improves SAP Value
22
� Documented processes become orchestrated processes
� Improve SAP process:
• Visibility• Manageability• Reliability• Consistency• Auditability• Performance
� Detect bottlenecks
� Reroute process instances with capacity overload
� Escalate problem processes
� Initiate and track exception processes
� Begin continuous process improvement
� Business blueprinting
� Training
� Production execution
© 2013 IBM Corporation
Use IBM BPM 8.0 to orchestrate SAP
23
Guided Workflow
Management for SAP
BAPIs
Process Orchestration
and/or Automation
with BAPIs
Process Orchestration
and/or Automation
with SAP Enterprise
ServicesExpress, Standard or
Advanced (BPMN)Advanced Only
(BPEL)
Advanced Only
(BPEL)
© 2013 IBM Corporation24
Easily Encapsulate and Bind SAP Enterprise Services
� Encapsulated with SCA
� Bound per technical
environment standards
� Ready for drag and drop into
the Process Designer
Create Sales Order
(synchronous inbound service operation (A2X))
<wsdl:definitions name="SalesOrderCreateRequestConfirmation_In" targetNamespace="http://sap.com/xi/APPL/SE/Global"><wsdl:documentation>Create Sales Order</wsdl:documentation><wsp:UsingPolicy wsdl:required="true"/><wsp:Policy wsu:Id="OP_SalesOrderCreateRequestConfirmation_In"/><wsdl:types><xsd:schema targetNamespace="http://sap.com/xi/SAPGlobal20/Global"><xsd:import namespace="http://sap.com/xi/APPL/SE/Global"/><xsd:element name="SalesOrderCreateRequest_sync" type="p1:SalesOrderCreateRequestMessage_sync"/><xsd:element name="SalesOrderCreateConfirmation_sync" type="p1:SalesOrderCreateConfirmationMessage_sync"/><xsd:elementname="StandardMessageFault"><xsd:complexType><xsd:sequence><xsd:element name="standard" type="p1:ExchangeFaultData"/></xsd:sequence></xsd:complexType></xsd:element></xsd:schema><xsd:schema targetNamespace="http://sap.com/xi/APPL/SE/Global"><xsd:simpleType name="DivisionCode.Content"><xsd:restriction base="xsd:token"><xsd:minLength value="1"/><xsd:maxLength value="2"/></xsd:restriction></xsd:simpleType>
…
IBM BPM simplifies usage of SAP Enterprise Services so that they can easily be used by process designers with
knowing the complex technical details of the SAP service itself.
Create Sales Order
IBM BPM SAP Integration Module
© 2013 IBM Corporation
Drag and Drop SAP Enterprise Services Into the Process Model
25
� Allows process designers with no technical knowledge of SAP Enterprise Services to use them in process diagrams
� Simplifies all process interactions with the SAP environment
� Streamlines process design
� Eliminates complex coding for SAP interfaces
Create Sales Order
IBM BPM SAP
Integration Module
Create Sales Order
IBM BPM SAP
Integration Module
© 2013 IBM Corporation26
Simplify Complex SAP Transaction Flows with Simpler User Interactions and Process Flexibility
� Replace complex flows of multiple SAP transactions
with highly efficient single screens
� Simplify work content
� Reduce process cycle times and errors
� Improve business performance
Create Sales OrderIBM BPM SAP Integration
Module
Select CustomerIBM BPM SAP Integration Module
Retrieve Customer Master DataIBM BPM SAP Integration Module
Create Order BOM Cost EstimateIBM BPM SAP Integration
Module
Create NotificationIBM BPM SAP Integration
Module
Replace…. …..With
Single Optimized Order Entry Screen
© 2013 IBM Corporation
Orchestrate and automate complex E2E processes
27
1. Order is received from the web site
3. Credit check and approval are completed
5. Required components are determined, ordered, allocated and received
4. Customer order is written and confirmed for production
6. Production order is completed and warehoused
7. Customer order is approved for shipment
8. Customer order is picked from warehouse and scheduled for shipping
2. Customer records are updated with order request information
9. Customer order is invoiced
End-to-End Process Choreography
Retrieve Customer Master Data
IBM BPM SAP
Integration Module
Create Sales OrderIBM BPM SAP
Integration Module
Create Order BOM Cost Estimate
IBM BPM SAP
Integration Module
Create NotificationIBM BPM SAP
Integration Module
IBM BPM Order to Ship End-To-End Process
© 2013 IBM Corporation
Value Summary of IBM BPM for SAP
28
� Quickly:
� Know the flow and status of key processes
• Rollout SAP process changes
• Integrate new process workers into your business
� Ensure that the process you designed is the process that is being executed
� Detect and resolve bottlenecks
• Effectively reroute work to less experienced workers to reduce bottlenecks
• Automatically escalate problem process instances
• Modify queued and running processes on the fly to respond to changing business
conditions
� Apply the correct amount of process integration and automation
� Know which process changes are most likely to help improve business
performance
Improve the quality, visibility and agility of
your SAP processes in order to deliver an
exceptional customer experience, reduce
costs and optimize business performance.
� Business Performance
� Agility
� Flexibility
� Visibility
� Variability
� Manageability
� Audit ability
� Consistency
© 2013 IBM Corporation
Examples of IBM’s own BPM projects and benefits
29
� Mid-Market Deal Registration: Delivered $18.5M 2012 PTI by reducing deal registration cycle time with rules-based work-flow automation.
� Supply Chain Alerts: Over $2M annual savings for timely notifications when supply chain disruptions occur.
� Pricing estimator for Cross-brand solutions: Reduced pricing proposal implementation from 14 days to 1 day and deployment to new countries in days versus weeks.
� GTS Cloud Sales Enablement: Integrated work-flow, rules and monitoring to reduce partner “register to welcome kit” cycle-time from days to hours.
� GMU Geo Location Code Assignment: Geo location code is key enabler of GMU expansion. Eliminated manual process and enabled GMU reps to update rules directly and reduced cycle time to update and run rules from several weeks with many handoffs to just a week for more than 50
countries.
� MTS: Increased IBM Client satisfaction through proactive notification of exposures in clients’ IT inventory by applying rules derived via analytics. Proof of value delivered.
� Infrastructure Optimization: Reduced cycle time by 75% to complete the analysis required to
migrate from Physical servers to Virtual servers.
Business
Agility
Achieved
© 2013 IBM Corporation
Small sample of IBM BPM SAP customers
30
© 2013 IBM Corporation31
Large US Toy Company Improves SAP Supply Chain Processes to Reduce Costs
BPM SolutionGathers the bill-of-lading information from freight
forwarders and corresponding invoice data from
SAP at the right time
• Automatically prepares and routes all
documentation required
• Automates the reconciliation process required for all
US Customs requirements, updating SAP at each
milestone
IBM BPM reduced dependency on phone calls, e-mails and paper faxes, while standardizing
communication between employees and vendors with increased process visibility
Challenge:
� Increase responsiveness with customers and
collaboration with suppliers while utilizing previous
investments in core enterprise applications
Benefits:� Increased productivity by 250 percent without additional resources being put into play
� Reduced cycle times by 80 percent, from 12 days to only two
� Improved overall business efficiency
© 2013 IBM Corporation
IBM BPM for SAPOne Continuous Process, One Integrated Tool Set
32
The picture IS the process…
Analyze. Define. Execute. Monitor. Improve.
Largest Client Base� 5,000 + BPM Clients
� Gartner ranks IBM #1 in BPM with 24.7% share
� IDC ranks IBM #1 with 34.2% market share
Strongest Ecosystem� 1000+ Business Partners
� Global Users group
Unparalleled Expertise and Investment� Over 15 years of industry leadership
� 100’s of assets
� Broadest, Deepest solution portfolio & services
Broadest and Most Differentiated Software Capabilities � Simplicity for fast deployment and full business user participation
� Centralized governance for repeatability and consistency
� Visibility and Control to continuously improve business operations
� Power through High Scalability, Integrity & Quality of Service
� Market Leading process, case, decision and rules capabilities
� Best in class exceptions handling and case management
© 2013 IBM Corporation
Proposed Next Step – BPM Discovery Workshop
� A collaborative workshop to:
• Determine which areas of business pain and/or opportunity are good fits for BPM
• Identify and prioritize potential BPM pilot projects
• Select and scope a pilot project (90-120 days), assess the fit and value of BPM and/or Decision Management capabilities for this project
� What does the IBM team do?
• Clarify the process improvement pilot project scope
• Characterize the expected business impact and benefits
• Assess the high-level implementation effort and solution development
• Identify and assess potential risks
• Identify and rank additional projects beyond the pilot project
� How does it work?
• Delivered onsite through collaborative discovery sessions with process owners and key business and technology stakeholders
• Pre-workshop preparation calls provide orientation on the workshop approach and potential process improvement opportunities as well as set the workshop agenda
• Preparatory time is also spent gathering and reviewing existing customer process documentation
� Typically 2-3 days, conducted free of charge
© 2013 IBM Corporation34