Process Architecture SAPs Process Architecture · PDF file · 2017-06-01Process Architecture: SAP’ Process Architecture Framework for Business Transformation Sascha Kuhlmann Director

Process Architecture: SAP’ Process Architecture Framework for

Business Transformation

Sascha KuhlmannDirector Enterprise ArchitectureBusiness Transformation ServicesSAP Amercia, Inc

Prof. Dr. Mark von RosingLEAD Enterprise ArchitectSAP Business Process ExpertSr. Lecturer, Copenhagen Business School Sr. Lecturer IT University of CopenhagenGlobal SAP Development PartnerGlobal Open Group (TOGAF) Development PartnerLeading of the EA RoundTable SAP University Alliances

Prof. Dr. Mark von Rosing

As the Managing Director for Value Team ApS, specialized in strategic management and market analysis, Prof. Dr. Mark von Rosing has been serving the top 5 consulting companies and many of the fortune 500 companies over the years. He is in every way an entrepreneur with a proven track record for delivering results. Furthermore is he:

• He just received IBM’s prestigious “Growth Award 2009/10” for contributing as the strongest growth enabler across EMEA.

• Main author of SAP Press New Business Performance Management book: Applying real-world BPM in an SAP environment

• Head and founder of the Global University Alliance BPM curriculum program• Head and founder of the Global University Alliance Enterprise Architecture Curriculum program• Member and co-developer of the Global TOGAF Business Model Methos and certificatoin

development GroupThe Co-developer of SAPs Business Model Framework, Method and Approach

•M.Eng.•MBA•M.Com

• The Co-developer of SAPs Business Model Framework, Method and Approach

• The Co-developer of SAPs Process Architecture Framework, Method and Approach• The Co-developer of SAPs Enterprise Value Architecture Framework, Method and Approach• Developer and co-owner of SAP LEAD Enterprise Architecture program and certification• The Co-developer of SAPs Business Process Management Framework and approach• Designer and co-developer of the new SAP BPX certification program for associate and

professional level• Author of numerable publications in the area of Business Model Management, Business

Process Management, Business Value Management & Sustainability• Founder of the User Group: www.openroundtable.org which consists of over 200 companies

Prof. Dr. Mark is a SAP Development, Education and University Alliance Partner and has in this context coached and helped numerable companies create and realize value. His developed approaches within Strategic Management, Business Modelling, Process Management and Business Value Management has helped hundreds of companies over the world.

•M.Com•PhD

Sascha Kuhlmann

As the director of Enterprise Architecture he focuses on helping customers to drive

strategic business and IT alignment. Sascha is not only known for his role as within SAP Enterprise Architecture Space, he is also known for his strategic insight into business strategy and thereby Business Model, Operational Business Model, and defining value drivers as well as performance drivers. Over the past years Sascha and his team have developed or participated in developing

several impacting methodologies around the topics of Enterprise Architecture and SOA, e.g.:

• Global SAP’s Enterprise Architecture Framework (EAF)-TOGAF 8.1.• Global SAP's Business Model Framework (BAF)• Global SAP's Process Architecture Framework (PAF)

• Global SAP's Enterprise Value Architecture Framework (EVAF)

• Director Enterprise Architecture at SAP America, Inc.• Member of the Board of Directors

• Global SAP's Enterprise Value Architecture Framework (EVAF)• Business driven SOA roadmaps• SAP’s SOA Reference Architecture• Best Practice Benchmark for Enterprise Architecture• Business Model Building Blocks

• Enterprise Maturity Models • Business Model Heat Maps

He lectured at several SAP centric events about Enterprise Architecture, Portfolio Management, Service Design & Modeling and Value Management and works closely with the American SAP Users Group (ASUG). Sascha is the point of contact for ASUG’s Enterprises Architecture Special Interest Community. Furthermore he is a member of the SAP University Alliance which consist over 900 Universities, developing a global EA curriculum.

• Member of the Board of Directors of the Opengroup

Agenda

What is an Process Architecture?

Why focus on Process Architecture and the connection to

1. Process Model2. Value Model

Introduction to Process Architecture

Executive Research

Summary

The need for a Process Architecture approach

2. Value Model3. SAP's Solution Model

Next Steps How can a company move forward?

How can a company apply the Process Architecture principles

Methodology and Findings


Context discussion and decisions

© SAP 2011 / Page 4

Agenda


Why focus on Process Architecture and the connection to 1.Process Model2.Value Model


Executive Research

Summary


2.Value Model3.SAP's Solution Model






© SAP 2011 / Page 5

The difficult task of combining:

Strategy, Business Model, Critical Success Factors,

Process Landscape & Solution Landscape

The important task of linking ones Business Model to IT to identify, create and realize value

Book Source: Real-world BPM in an SAP environment , SAPpress, 2011 – Jim Hageman Snabe, Mark von Rosing, Ann Rosenberg, Sascha Kuhlmann et al.

The Process Architecture is the key ingredient and the center of a good Business Architecture, thereby providing the

link to Strategy and the Information Architecture together and thereby enable Business Transformation.

Without a clear Process Architecture, management and operation careens from one performance and value issue to

the next, unable to leverage reusable capabilities, assets (competencies) and process execution. With a defined and

declared Process Architecture, a organization uses the high value processes and low value processes that can drive

performance and value opportunities to realization.

© SAP 2011 / Page 6

Benefits that are associated with Process

Architecture: TECHNOLOGY CONTEXT

Process Architecture Research 2010,

Scope: 1765 CEOs and 2936 business

leaders representing all major countries


Architecture: PROCESS CONTEXT





Architecture: ORGANIZATIONAL CONTEXT





Architecture: STRATEGIC CONTEXT




Process Architecture a part of SAPs Business

Architecture Method


Architecture Method

Mentioned topics covered in:1) SAP's Business ArchitectureWebEx Recording Link: https://sap.emea.pgiconnect.com/p30113886/

2) " SAP Business Modelling" WebEx Recording Link: https://sap.emea.pgiconnect.com/p57578058/

3) " How to implement and use Performance & Value Management within an Enterprise Architecture context" WebEx Recording Link: https://sap.emea.pgiconnect.com/p36876875/


Architecture Method

Agenda




Executive Research

Summary








© SAP 2011 / Page 14

SAP Process Hierarchy

Level 3: Business Process(e. g. Lead Management)

Level 2: Process Group(e. g. Demand Generation)

A Process Group is a set of logically related business processes performed to achieve a

defined, measurable business outcome for a particular internal or external customer.

Level 1: Business Process Area(e. g. Demand-to-Close)

A group of business area with the same business goals, spanning the organization from

end-to-end (sometimes extending out to business partners). Thus, an enterprise‘s entire

operating structure can be depicted by its combined Process Group groups.

Scenario Group

Scenario

Level 4: Business Process Step(e. g. Lead Distribution)

A business process step represents an operation of a business process that performs a

defined function. The order of all business process steps illustrates the business logical

flow followed in order to fulfill the purpose of the business process.

(e. g. Lead Management)

A business process is a set of operations within a Process Group. All business

processes follow a certain flow in order to accomplish the defined business outcome of a

scenario. They generally consist of discrete, highly encapsulated business operations.

Additional process levels are possible

Level 5: Business Process - Activity(e. g. Convert Lead to Opportunity)

A business process module is the smallest business relevant activity or function, which

has no process level below. Modules can consist of a single or multiple tasks,

performed in an application, ideally represented in a transaction and accessed via a

specific user interface.

Process

Process Step

Process Module

SAP Process Hierarchy & how to proceed in

BPM Projects

Proceeding in BPM projects

Starting pointfor projects

with focus on whole com-pany

SAP Process Hierarchy

Level 1 Business Area

Level 2

Main (management or support) processes which produce external or internal value.

Example: Sales

Every Business Area consists of more than one level 2 Process Groups which

Starting point

© SAP 2011 / Page 16

Top-Down-approach dur-ing processanalysis

Mainly bot-tom-up ap-proach dur-ing process

design

Level 2 Process Groups

Level 3Businessprocesses

Level 4 Process Step

one level 2 Process Groups which

describes it with more detail.

Example: Sales Processing

Process Groups will be described as a set of level 3 processes (Business process).

Example: Creation Sales Order

Level 4 is at least needed to map To-Be processes to SAP Solutions. Mostly level 5 (Process activity) is needed as well.

Example: Sales order for known customer

focus on onedepartment (sales, HR)

Starting point focus on one section (cus-tomer visits, produce/dis-tribute pay)

© SAP 2008 / Page 16

Example of Business Process Map:

Business Area:

Main/Support orManagement Process

Main/Support orManagement Process

Main/Support or

Management Process

Main/Support or

Management Process

Main/Support or

Management Process

Main/Support or

Management Process

Pro

ce

ss

Gro

up

sE

2E

Bu

sin

es

s P

roc

es

ses

Text

…

Text

…

Text

…

Text

…

Text

…

Text

…

© SAP 2011 / Page 17

E2

E B

us

ine

ss

Pro

ce

ss

es

…

Pro

cesses S

tep

s

…

High level Example of Sales & Service

Business Process Map:

© SAP 2011/Page 18

Agenda




Executive Research

Summary








© SAP 2011 / Page 19


Architecture Method

SAP Process Hierarchy and how to apply

Process Modelling

Level 3: Business

Process

Level 2: Business

Process Groups

Level 1: Business

Area

� Basic structure and scope

� Objectives

� Technical Terms (Information)

Value-added Chain Diagram:

Level 4: Business

Process Step


Level 5: Business

Process Activities

� Roles and Organizations

� Systems

Event-Driven Process Chain:

� Events and functions



� Compliance tasks

� Systems

� KPI instances

© SAP 2011/Page 21


Process Modelling

Level 3: Business

Process

Level 2: Business

Process Groups

Level 1: Business

Area


� Objectives



Level 4: Business

Process Step


Level 5: Business

Process Activities


� Systems






� Systems

� KPI instances

© SAP 2011/Page 22

Value-added Chain Diagram (VCD): Typical

Structure

Value-added Chain Diagrams (VCDs) depict business processes on a high level,

thereby illustrating the scope and basic structure of the process space.

Process Group Group /Process Group /Business Process /



ObjectiveKPI instance

A Value-added Chain Diagram describes…

� …the general structure and scope of the considered process space.

� …the general flow, dependencies and interfaces of business processes within that scope.

� …the aspired objectives, KPI instances, the handled information, organizational roles, and systems, if applicable.

Business Process /Business Process Step



ApplicationSystem Type

Technical Term Role OrganizationalUnit

© SAP 2009 / Page 23

Basic Elements of Value-added Chain

Diagrams (1/2)

An objective defines the purpose for a process and shows the ultimate reason why it is performed.

Why?

A process represents an element of the chain. A process hierarchy can be realized by hierarchically structuring value chains, thus

Objective

Process

KPI instanceA KPI1) instance quantifies the performance of a process along the dimensions time, cost or quality.

How is

performance?

A technical term represents a process object in ARIS notation. Therefore, it offers a comprehensive business view on a complex information object consisting of multiple attributes. These information objects are handled by processes, and especially serve as their input and output. Thus, technical terms provide the basis for the data model.

Which

information?

can be realized by hierarchically structuring value chains, thus Modelling Process Group groups, Process Groups, business processes and business process steps using the same notation.

What?

Process

Technical Term

An application system type classifies individual application systems which have exactly the same technological properties.

By which

technology?Application

System Type

1) Key Performance Indicator© SAP 2009 / Page 24

Basic Elements of Value-added Chain

Diagrams (2/2)

An organizational unit represents the performers of and participants in the tasks that must be done in order to attain the business objectives, according to their organizational assignment within the company.The hierarchy and dependencies of organizational units can be separately modeled in an �organizational chart.

OrganizationalUnit

A link models the relationship of objectives, processes, terms, organizations, and systems to processes. Directed links represent the process flow, all others illustrate object dependencies.

link

What kindof relationship?

What precedesand follows?

modeled in an �organizational chart.

Who?

A role is a bundle of tasks and responsibilities and has to be clearly distinguished from the person that is performing the role in question. One role can be assigned to several persons and, vice versa, one person can hold several roles. Generic roles are independent of an organizational assignment and business situation. Specific roles are generated by mapping generic roles on organizational structures and applying them to concrete and case-specific business situations. These role hierarchies, their interdependencies and assignment to organizational units can be separately illustrated in an �organizational chart.

Role

© SAP 2009 / Page 25

A process supports a specific objective.

supports

Objective

Process

Why?

Links in Value-added Chain Diagrams

Processes are predecessors of other processes.

Process Process

What?

Technical Term

is input for

Technical Term

has output of

Which

infor-

Application

System Type

supports

An application system type supports a

By

which

Terms are input and output of processes.

is input for

Process

has output ofinfor-

mation?Process

supports supports a process.

which

tech-

nology?

carries outWho?

decides on

Process

Roles or organizational units…� decide on the execution of a process,� are technically1) responsible for process

execution

Role

� carry out a process,� must be informed

about the execution of a process,

� have a consulting role in a process, or

� accept the result of a

process (“second set

of eyes”).

Org. Unit

How is

perfor-

mance?

A process is measured by a KPI instance.

is measured by

KPI instance

Process

© SAP 2011/Page 26


Architecture Method


Process Modelling

Level 3: Business

Process

Level 2: Business

Process Groups

Level 1: Business

Area


� Objectives



Level 4: Business

Process Step


Level 5: Business

Process Activities


� Systems






� Systems

� KPI instances

© SAP 2011/Page 28

Compliance Aspects

Information Handling

Event

Event-Driven Process Chain (EPC): Typical Structure

Control Point

C

Event-Driven Process Chains (EPCs) portray business processeson a detailed level by connecting tasks, information and organizations.

Technical Term

KPI instanceFunction

Process flowEnabling Technology Roles & Responsibilities

Event Event

ApplicationSystem Type

OrganizationalUnit

Role

� …the chronological and business logical dependencies of processes (process flow)

� …the handling of information objects (technical terms)

� …the roles & responsibilities taken in a process

Performance Measures

KPI instance

� …the performance measures in place to control the processes

� …tasks to be fulfilled in order to achieve regulatory

compliance

� …the technology enabling the processes.

An Event-Driven Process Chain describes…

© SAP 2009 / Page 29

A function is a task performed on a process object (represented by a technical term) in order to achieve process goals. Functions can be further specified by connecting them to detailed EPCs (see �Interconnecting Process Models).

An event illustrates the fact that a process object has taken on a business-relevant state influencing the further procedure of a process. Unlike a function, which is a time-consuming occurrence, an event is related to one point in time.

When?

What?

Function

SYS

SystemFunction

Event

Alternatively, a system function represents an automated task, solely performed by a respective application system type.

linkThe business logical flow is modeled by directed links between functions,

Process Flow: Elements

Process interfaces connect several process models on the same hierarchical level by linking the EPCs according to their shared events. They thus facilitate process structuring and navigation by keeping models concise and easy-to-read. For their usage see �Interconnecting Process Models.

ProcessInterface

Logical connectors describe the logic according to which the process flow is split or combined between events and functions:

XOR� Exclusive OR (XOR): After the symbol, the flow takes one and only one way

of several possible ways (intuitive “either-or”).

AND � AND: After the symbol, the flow always takes all possible ways, i.e. all exiting ways run in parallel.

OR� Inclusive OR (OR): After the symbol, the flow takes one or more of

several possible ways, i.e. besides one exiting flow, others may (but need not) run in parallel.

Whatprecedesandfollows?

link events, logical connectors and interfaces.

© SAP 2009 / Page 30

Information Handling:

Elements and LinksA technical term models a process object. It offers a comprehensive business view on a complex information object consisting of multiple attributes. Terms are handled by functions, and especially serve as their input and output. They offer a high-level view on the data model.Their hierarchy and dependencies with each other can be separately modeled in a

�technical terms model.

Whichinformation?

TechnicalTerm

Directed links describe the information flow by showing the usage of technical terms in functions:

� is input for: an existing process object is either read, checked or approved by the associated function.

� has output of: a process object is either created, modified or deleted by the associated function.

How is information processed?

By which media?

Different media transport the information captured in technical terms. Their notion as information carriers can be expressed using a “lies on” connection type.

Example:

associated function.

Example:

InvoiceBillservice

has output of

Document

Telephone

Fax

Internet

E-mail

CD-ROM

LAN

EDI

lies onInvoice

InvoiceDocument

Exception: Documents can be connected directly to functions

� provides input for: an existing document is either read, checked or approved by the associated function.

� creates output to: a document is either created, modified or

deleted by the associated function.© SAP 2009 / Page 31

Roles & Responsibilities:

Elements & Links

An organizational unit represents the performers of and participants in the tasks that must be done in order to attain the business objectives, according to their organizational assignment within the company.The hierarchy and dependencies of organizational units can be separately modeled in an �organizational chart.

Who?

OrganizationalUnit

A role is a bundle of tasks and responsibilities and has to be clearly distinguished from the person that is performing the role in question. One role can be assigned to several persons and, vice versa, one person can hold several roles. Generic roles are independent of an organizational assignment and business situation. Specific roles are generated by mapping generic roles on organizational structures and applying them to

Role

mapping generic roles on organizational structures and applying them to concrete and case-specific business situations. These role hierarchies, their interdependencies and assignment to organizational units can be separately illustrated in an �organizational chart.

In which

duty?

The different responsibilities roles (or organizational units) take within a process can be captured using suitable links to the respective function. link

Roles or organizational units…� decide on the execution of a process,� are technically1) responsible for the

execution of a process,� carry out a process,� must be informed about the execution

of a process, � have a consulting role in a process,� accept the result of a process

(“second set of eyes”).

Example:

Resourceneedsdefined

Post job Job posted

is technically

responsible for

must be

informed about

HiringManager

HRBP

must be

informed about

Recruiter

1) Ger.: „fachlich“

© SAP 2009 / Page 32

Enabling Technology:

Elements and Links

An application system type classifies individual application systems which have exactly the same technological properties.

ApplicationSystem Type(internal)

ApplicationSystem Type(external)

EX

The case, in which company processes access application system types beyond company borders, can be explicitly modeled by using a specific symbol for external application system types.

By whichThe enabling character of technology is modeled using “support” connections.

By which

technology?

supports

connections.

Example:

In case a function is entirely performed by the application system, it is represented using a system function.

Example:

Approveleave request

mySAPERP HCM

supports mySAPERP HCM

SYS

Notifyemployee ofleave approval

supports

© SAP 2009 / Page 33

Measuring Performance:

Elements, Attributes & Links

How is the

performance?

To specify this performance properly, specific attributes are to be maintained:

�KPI type: A drop-down list allows to specify whether a KPI indicates the performance regarding time, quality, cost or another dimension

�As-is value: A field to enter the current performance value together with the respective unit name, e.g. 9 days, 1.000 €

�To-be value: A field to enter the aspired performance

�Measure start point: A field to enter the name of the event after which the KPI instance starts to measure the performance. The measure end point is the event that follows the

function to which the KPI instance is linked.

KPI instance

A KPI instance quantifies the performance of a process along the dimensions time, cost or quality.

function to which the KPI instance is linked.

�Description: A field to enter either a definition or a formula that underlies the KPI instance

Is measured by

Approve

document

Document

approved

Document

created

Time till

document

approval

As-is: 9 days To-be:3 days

Timeis measured by

Time till document approval

Number of days needed from document creation until final approval

Document created

Attributes that are not automatically shown by the template:

Measure start point Measure end point

The connection used to link a KPI instance to the respective function is called “is

measured by”. A KPI instance is always linked to the last function until which the performance data is collected.

© SAP 2009 / Page 34

Roles & Responsibilities:

RACI Mapping

“carries out”

“is technically responsible for”

ARIS Link TypeRACI Responsibility Type

Accountable

Responsible Role(s) that carries (carry) out the activity.

Role that is ultimately responsible for the success of the activity and occupies authority to delegate its execution.

Description

“The buck stops here”

“The doer”

� At least one “R” has to be assigned to each activity, but several “R”s are possible.� Only one “A” can be assigned to an activity.� The same role might be concurrently “R” and “A”. � If there is only one “R” but no “A” assigned to an activity, it is assumed that “R” is also “A” for that activity.

“has consulting role in”

“must be informed about”

Consulted

Informed Role(s) to be informed after / during the activity is carried out (one-way communication).

Role(s) to be asked before / during carrying out the activity (two-way communication).

the activity.“In the loop”

“Keep in the picture”

© SAP 2009 / Page 35

Business Process Description – As-Is

Documentation with RACI Mapping

Process stepsBusiness

objectsBusiness rules

© SAP 2011 / Page 36

Involved

Business Units

R: Responsible; person who carries out the activity

A: Accountable; person who is in charge

C: Consulted; person asked before carrying out the

activity or supporting the activity

I: Informed; person has to be informed

� Cluster all

weak-nesses

Identified Process Weaknesses have to be

Clustered

© SAP 2011 / Page 37

weak-nesses

due to

interdependenci

es and

similarities

� Develop one

solution

concept for

each different

weakness

cluster

Same cause for

identified weaknesses

� Similarities

Business

Processes

analyzed

Same cause for

identified weaknesses

� Similarities

Business

Processes

analyzed

AUTOMOTIVE EXAMPLE : Sales & Promotion Planning Process Architecture flow

© SAP 2009 / Page 38

Automotive Process Architecture Benchmark:

Example: Sales & Promotion Planning

Process Group: Weakness Cluster: Potential Value Drivers Potential Performance DriversAccount and Contact Management with

Channel PartnersImproving Customer Service • Strengthen partnerships and account management

Improving Service Delivery • Collaborate with business partners

Increasing Transparency & Accountability • Increase data transparencyReducing Operating Costs & Increasing

Efficiency• Reduce administration, improve business processes

• Holistic account view

• Complete interaction history

• Optimize customer interactionBrand and Customer Management Improving Customer Service • Collaborate with business partners

• Provide a single face to the customer

• Support multi-channel interactionIncreasing Revenue • Develop new markets

• Efficient campaign planning and management

© SAP 2009 / Page 39

• Efficient campaign planning and management

• Extend market share

• Improve customer retention and loyaltyReducing Operating Costs & Increasing

Efficiency• Lower communications expenses

• Automation and standardization of business processesCollaborative Selling Improving Customer Service • 24x7 customer self-service

• Collaborate with business partners

• Strengthen partnerships and account management

Increasing Revenue • Extend market shareReducing Operating Costs & Increasing

Efficiency• Optimize investments in indirect channel

• Automation and standardization of business processesCustomer Management Increasing Revenue • Efficient sales planning and management

• Improve sales lead generation and process

• Improve customer retention and loyaltyFleet Management & Rental Improving Customer Service • Raise competitive barriers to entry

Improving Service Delivery • Reduce administration, improve business processes

Increasing Revenue • Provide competitive service offerings

Lowering Working Capital • Integrated service/repair scheduling

Managing Fixed Assets & Resources • Reduce lifecycle costs

Source: Prof. Dr. Mark von Rosing


Architecture Method

How to define High Value and Low Value

Processes based on 4 basic principles

Strategic Importance Legend:

High Low




High Low




High Low




High Low




High Low

Cascading Process Prioritization based on

competency (CCCs & NCCs) development

To evaluate and prioritize the relevant competency developments and the attached

value per business unit, a criteria catalogue is necessary.

Critical Success Factors (Strategic Importance)

KPI for XXX KPI for XXX KPI for XXX

Bu

sin

ess U

nit C

om

pe

ten

cie

s

an

d th

e a

ttach

ed

va

lue

< x

xx >

Process 1

High-levelprocess

landscape

Bu

sin

ess U

nit C

om

pe

ten

cie

s

an

d th

e a

ttach

ed

va

lue

< x

xx >

Process 3

Process 4

Process 2

very high high medium low very low

Strategic Importance Legend

© SAP 2011/Page 46

Example of Process Prioritization output

Strategic Importance Legend:High Low

Automotive Example: Sales & Promotion Planning

– Identified BPM impr. measurement areas


High Low


Architecture Method

© SAP 2011/Page 49

Process Architecture: Companies decide the

level on standardization and integration

Companies make two important choices in the design of their Process Architecture: 1) How standardized their business processes should be across operational units (business units, region,

function, market segment) 2) how integrated their business processes should be across those units.

Such an Operating Model breaks “this complex process machinery” down into its logical components and deploys the appropriate business architecture analysis and design techniques for each component in order to deliver better value:

Process Integration Low High

Process Standardization

© SAP 2009 / Page 50

Coordination – businesses requiring low business process standardization but high business process integration (Compare with Allied Strategy – where subsidiaries provide varied products to the same customers) Unification - businesses requiring both high business process standardization and high business process integration (Compare with Integrated Strategy) Diversification - businesses requiring low business process standardization and low business process integration (Compare with Holding Company Strategy) Replication - businesses requiring high business process standardization but low business process integration (Compare with Franchisees or Replicated Facilities of an Integrated Strategy)

Process Integration Low High

High Coordination Unification

Low Diversification Replication

Companies decide the level on

standardization and integration

Companies make two important choices in the design of their Process Architecture: 1) How standardized their business processes should be across operational units (business units, region,

function, market segment) 2) how integrated their business processes should be across those units.

© SAP 2009 / Page 51

DIVERSIFIED

Systems Architecture and Data

© SAP 2011/Page 52

REPLICATED


© SAP 2011/Page 53

COORDINATED


© SAP 2011/Page 54

UNIFIED


© SAP 2011/Page 55

DIVERSIFICATION example:


© SAP 2011/Page 56

REPLICATION example:


© SAP 2011/Page 57

COORDINATION example:


© SAP 2011/Page 58

UNIFICATION example:


© SAP 2011/Page 59

Different models are adopted to support business goals

and philosophies

Coordination Unification

hig

h

Diversification Replication

Bu

sin

es

s P

roc

es

s I

nte

gra

tio

n

highlow

Diversification Replication

low

Business Process Standardization

Bu

sin

es

s P

roc

es

s I

nte

gra

tio

n

Source – © 2006 Enterprise Architecture as Strategy by J. Ross, P. Weil, D. Robertson - Harvard Business

School Press

© SAP 2011/Page 60

DIVERSIFICATION


© SAP 2011/Page 61

REPLICATION


© SAP 2011/Page 62

COORDINATION


© SAP 2011/Page 63

UNIFICATION


© SAP 2011/Page 64

Operating Models Role in Defining the

Business and Technical Architecture

© SAP 2011/Page 65


Architecture Method

© SAP 2011/Page 66

© SAP 2009 / Page 67

Process Parameters:

Process Level 1-5

© SAP 2011 / Page 68

Process Parameters:

Purpose & Goal

© SAP 2011 / Page 69

Process Parameters:

Business Rules

© SAP 2011 / Page 70

Process Parameters:

Measurement

© SAP 2011 / Page 71

Process Parameters:

Process Owner

© SAP 2011 / Page 72

Process Parameters:

Roles

© SAP 2011 / Page 73

Process Parameters:

Organizational Units

© SAP 2011 / Page 74

Process Parameters:

Compliance

© SAP 2011 / Page 75

Process Parameters:

Process Flow

© SAP 2011 / Page 76

Process Parameters:

Media CC AIAI TBTB STST

© SAP 2011 / Page 77

Process Parameters:

Technology CC AIAI TBTB STST

© SAP 2011 / Page 78

Process Parameters:

Objects CC AIAI TBTB STST

© SAP 2011 / Page 79

Process Parameters:

Services CC AIAI TBTB STST

© SAP 2011 / Page 80

Process Parameters & SAP Solution Managers

Covered in " How to implement and use Performance & Value Management

within an Enterprise Architecture context"

WebEx Recording Link: https://sap.emea.pgiconnect.com/p36876875/

Organize IT systems along the respective

Process layers

IT Systems

CE 7.1 ERP 6.0 Portal 7.0 CRM 7.0 ...

Business Process 1 x x x

Business Process 2 x x

Business Process 3 x x

...

© SAP 2011 / Page 82

...

User Interface Layer

Logic & User Interface Layer

Business LogicCRM 7.0 ERP 6.0

CE 7.1

Portal 7.0

Business Architecture view

© SAP 2011/Page 83

Business Architecture, Processes Architecture:

Level 1 - Business Area

Process Architecture

© SAP 2011/Page 84


Level 2 - Process Group


© SAP 2011/Page 85


Level 3 - Business Process


© SAP 2011/Page 86


Level 4 - Business Process Variant


© SAP 2011/Page 87


Level 5a - Process Steps


© SAP 2011/Page 88


Level 5b - Process Steps Variant


© SAP 2011/Page 89


Level 6a - Process Activities


© SAP 2011/Page 90


Level 6b - Process Activities Variant


© SAP 2011/Page 91

SAP Information Architecture:

SAP Industry Value Chain

Process ArchitectureProcess Architecture SAP Information Architecture

© SAP 2011/Page 92


SAP Value Chain Element

Process Architecture SAP Information Architecture

© SAP 2011/Page 93


SAP Business Scenario Group


© SAP 2011/Page 94


SAP Business Scenario


© SAP 2011/Page 95


SAP Process


© SAP 2011/Page 96


SAP Process Configuration Variant


© SAP 2011/Page 97


SAP Process Steps


© SAP 2011/Page 98


SAP Process Activity


© SAP 2011/Page 99


SAP Business Scenario Map


© SAP 2011/Page 100

SAP Information Architecture: SAP Products

(On Device, One Demand & On Premise


© SAP 2011/Page 101

Example of On Premise: Process Step

© SAP 2011 / Page 102

Example of On Premise: Process Step –

Business 2 Business – SAP Business Suite

© SAP 2011 / Page 103

Example of On Premise: Process Step – SAP

Business Suite

© SAP 2011 / Page 104

Example of On Demand: Process Step – SAP

Business Suite 2 SAP SaaS Application

© SAP 2011 / Page 105

Example of On Device: Process Step – Mobile

Application

© SAP 2011 / Page 106

Example of On Premise: Process Step – SAP

Business Suite

© SAP 2011 / Page 107

Example of On Premise: Process Step – 3rd

Party Business Application (PaaS)

© SAP 2011 / Page 108

Example of On Premise: Process Step – 3rd

Party Business Application (PaaS)

© SAP 2011 / Page 109

Example of On Premise: Process Step (IaaS) -

3rd Party Business Application (PaaS)

© SAP 2011 / Page 110

Example of On Demand: Process Step (BPaaS) – 3rd

Party Business App. (PaaS) & 3rd Party SaaS App.

© SAP 2011 / Page 111

Example of On Device: Process Step –

Dashboard

© SAP 2011 / Page 112

High level Example of Sales & Service Process

Architecture

© SAP 2009 / Page 113

The connection from Process levelse to SAP

example: From Order to Cash to Create Sales Order/ Order

Processing Module

Level 3:

Business

Level 2:

Business

Group

Level 1:

Business

Areae.g. 3. Order to Cash

e.g. 3.1 Order management

e.g. 3.1.1 Order Processing

VCDs

VCDs

114

Level 4:

Business

Process Step

Business

Process

Level 5:

Business

Process Activity

e.g. Standard Sales Order

e.g. Order Processing Module

Technical Identity

Card (Function)

Technical Identity Card

(Process Activity) Trigger creationof a Consult ing

agreement

Process Billing

Document

Order

Proces sing

RM@FS(R/3)

Order data

Order has been

enter

is input for

RessourceManager

Sales Order Confirmation

has output of

RessourceManager

carries out

RM@FS(R/3)

Pricing agreement

is input for

Consulting agreement

has output of

Consultingagreement

execute...

Invoicing ofcustomer

Billing documenthas been proces s

RessourceManager

carries outRM@FS(R/3)

Project Manager

Program Manager

CustomerEngagem...

carries out

carries out

carries out

carries out

ResourceConfirmat ion

RessorceConfirmed

Obtain approval

on handbooking

Hard Booking

accepted

Hard Booking not

accepted

Sorce Search

Trigger creation

of staffing lis t

Staffing List sendto 3rd party

Account Payabl e

© SAP 2011 / Page 114

VCDs (& EPCs)

EPCs

EPCs


Architecture Method

© SAP 2011/Page 115

1. Analyze

� Evaluate business model and strategy, current environment; and processes that may be in place

� Identify business goals and define requirements for an existing or new process

� Prioritize improvement

areas & perform scoping

� Describe process goals

2. Design

� Evaluate potential solutions

� Design one or more alternative solutions

� Estimate impact of alternatives on KPIs, PPIs and environment

� Decide on process implementation

The steps of SAP Process Life-Cycle and SAP's

Continuous Improvement approach

As-is Modelsis model Process Process goalsAs-is model Process Process goalsOwner n.a. lead to PPIs

In use Manage process Measure&reportIn use Manage process Measure&report

4. Run/Monitor

� Execute the business process

� Measure & monitor the business process

� Gather and analyze variances

� Perform consequence management

� Initiate a business process optimization cycle if necessary

Published Approved Implemented Maintained

be Nominated PPIs Described & To-be Nominated PPIs Described & model defined decided

3. Implement

� Prepare for and realize the implementation project

� Enable measurement of KPIs, PPIs

� Perform change management and establish process ownership

� Process roll out

© SAP 2011 / Page 116 Source: BPM Governance (Adapted from the book: Business Process Management – The SAP Roadmap, 2009 & Applying Real-World BPM in an SAP Environment, 2010)

The steps of SAP Process Life-Cycle and

SAP's Continuous Improvement approach

© SAP 2009 / Page 117

Agenda




Executive Research

Summary



Possible next Steps How can a company move forward?





© SAP 2011 / Page 118

Proposed Next Steps:

SAP Process Architecture Quick scan assessment

Approx. 20 days Process Architecture Quick Scan assessment: Review existing Process

Architecture Maturity, competencies, benchmark and identify gaps. Propose Solution Approach

to close Gaps and improve Maturity of:

� Strategic Link, including� Definition Process Architecture Maturity (Level 1-5)� Status of companies definition and template of Process Architecture and/or Operating Model

– Core Competitive - , Core Differentiating - & None-Core Competencies

� Definition and template of the Strategy Map connected to ones Process Architecture� Definition of the Value Map connected to ones Process Architecture competencies, e.g.

– Common definition and template of Scorecards - Are Strategic business goals defined for overall competency Common definition and template of Scorecards - Are Strategic business goals defined for overall competency

area?– Are Value Drivers by Business Competency Area with Business Owner defined.

� Process Link, including� Link between Process Architecture and Process Modeling Principles ( SAP Process Grouping)

– Link between Process Architecture competencies and process's– Definition of Business Processes and the link to competencies (Level 1-3), e.g.– Business Processes Area, Business Processes Group, Business Processes

� Definition of Business Processes (Level 4-5), e.g.– Business Processes Steps & Activities

� Technology Link, including� Process Modeling Principles

– Process Flow linked to competency flow– Process Parameters

� Performance Drivers by Business Area and Business Owner.– Measurements (performance and monitoring of competency output)

© SAP 2009 / Page 119

Business Case of Process Architecure

THANK YOU

Questions?

Prof. Dr. Mark von Rosing

LEAD Enterprise Architect

SAP Global Education Partner

SAP Global Development Partner

Sascha A. Kuhlmann Director Enterprise Architecture Business Transformation Services

For more information:

For more information or questions about business architecture, Process Architecture, strategy map and value map examples, and business architecture template, please visit www.openroundtable.org

SAP Education: Business Architecture training: Process Architecure & Value Architecture

SAP Global Development Partner

SAP University Alliance Partner

Mobile +45 2888 8901

E-Mail [email protected]

M +1 312-731-4710 F +1 610 492-2879 E-Mail [email protected]

If you would like more information, contact Karin van den Brand, SAP EducationBusiness Development Manager:E-mail [email protected] or bytelephone +31 6 222 16 409.