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Real-Time Operational Management with SAP Business Process Management (iBPM)
Chet Harter, SAP Digital Innovation
“This is How We’ve Always Done It”
I don’t get it! The sales guy said this thing would get me there faster….
Deploying new technology with legacy business processes won’t get you to where you want to be!
Business Requirements
Key questions –
▪ What can we do today to improve our ability to perform?
▪ What can we do BEFORE S/4HANA is implemented?
▪ How can we provide real-time information to the people who need it?
▪ How do we become less reactive and more proactive in daily operations?
▪ How can we more effectively work (collaborate) both internally and externally?
▪ How can we make “work” easier, more effective, more consistent?
▪ How do we get more value out of our SAP ERP system?
Insert Title Here
Insert Title Here
The Fiori Advantage
• Both provide access to tools • Embedded analytics and KPIs
• Proactive work management
• Standard look and feel for all SAP applications
Me-area NotificationsWorkspace
Schedule Increase
Revised shipping schedule
may require production
schedule change
Machine Down
Unplanned downtime in
WC 102, may require
rescheduling Inbound Delay
Truck behind schedule,
potential shortage and
production disruption
Ontime Shipment
Shipment to customer
Frightlaner ontime
Material Shortage Alert
Material held for quality
reasons
Potential Machine Issue
Unplanned downtime
predicted in WC 105,
vibration sensor triggered
Fiori 2.0 for Real-Time Operational Monitoring
https://experience.sap.com/fiori-design-web/
What is Business Process Management
Business process management (BPM)
• Is a discipline that uses various methods to discover, model, analyze, measure, improve and optimize business processes.
• A business process coordinates the behavior of people, systems, information and things to produce business outcomes in support of a business strategy.
• BPM is key to align IT/OT investments to business strategy.
Gartner
SAP Automotive Digital Business Systems
2019 Strategic Focus Areas
Enterprise Effectiveness and EfficiencyCompanies continue to consolidate and simplify their organization and systems with standardization being a key driver. Standardization contributes to less process variation for
improved business process quality and consistency, and the adoption of a common enterprise language. Automation of manual tasks and transforming of management to be less
reactive and more proactive.
Enable the Future EnterpriseFocus is a “bi-modal” strategy on performance and continuous improvement in today’s business environment, while building and exploiting advanced technology that provides for
highly secure, mobile, connected, big data business applications and adoption of new evolving business models.
Customer Engagement and New Business ModelsDeployment of new processes in marketing, sales, and service support (typically technology-driven) that improve the customer’s buying experience and the customer’s owning
experience, as well as providing the ecosystem (manufacturer, dealers, suppliers, wholesalers, retailers) with market insight and product performance insight. Includes “Customer
for Life” and other customer retention efforts.
Operational Effectiveness and EfficiencyNew technology is offering process enhancements and entirely new processes for improving responsiveness and reducing costs. Key performance indicators (KPI’s) focus on
responsiveness to customer demand and cost reduction. Connectivity of supply chain partners and visibility improvements are prevalent.
Connected Vehicles and EquipmentProduct connectivity and resulting new business processes and revenue streams are creating new opportunities and disruptions that span across many process areas such as product
quality, customer service, new revenue streams, service parts, safety, etc.
Business Process Management circa 1990
SAP Automotive Digital Business Systems
Business Process – What Does It Look Like?
MANUAL:
Notification of a
potential material
shortage
MANUAL: Phone
carrier to arrange
premium freight
MANUAL: Check
MD04: How much
do we have?
MANUAL: Phone
the carrier to get the
ETAWill it arrive in time?Is there material in
transit?
Yes
No
Do we have enough?
Yes
No
MANUAL: Phone
the supplier to get
more material
Current Process (tribal knowledge approach)
No
Yes
END ENDEND
NO
YES NO
YES NO
YES
SAP Intelligent Business Process Management (iBPM)
SCP Process Visibility (with
SAC integration)
SCP Document (for
attaching document URLs to
workflow)
SCP Fiori Inbox (for
notifications and contextual
collaboration)
SCP Workflow (to model the
business processes)
SCP Integration (to connect to SAP
and non-SAP applications)
SCP Business Rules (to build and
maintain flexible decision tables)
DESIGN
SCP Robotic Process
Automation (for automation of
repetitive tasks)
SCP Machine Learning (for
intelligent automatic decisions)
SCP WEB IDE (for application
development)
SCP Conversational AI (for
textual prompts and verbal interaction)
ERP ERP ERPERP CRM ExcelOther
ERP
Business Process Management – An Example
MANUAL:
Notification of a
potential material
shortage
MANUAL: Phone
carrier to arrange
premium freight
MANUAL: Check
MD04: How much
do we have?
MANUAL: Phone
the carrier to get the
ETAWill it arrive in time?
Process Compliance (MTD)
• Premium freight expense: $67,300 (up 8% since last month)
• Followed defined approval process: 83%
Is there material in
transit?
Yes
No
Do we have enough?
Yes
No
MANUAL: Phone
the supplier to get
more material
Current Process (tribal knowledge approach)
No
Yes
END ENDEND
NO
YES NO
YES NO
YES
Request Approval for
premium freight
Custom built app for premium freight requests converts inventory status, supplier info, and carrier info into the request
Receive approvalPush button for the
premium freight request
Yes
TRIGGER:
Notification of
potential materials
shortage
Retrieve inventory
status from MD04Retrieve ETA from
carrier service
Alert Retrieve ETA
from carrier serviceDo we have enough?
Yes
NoAlert analyst of issue
including inventory
analysis
Initiate collaboration
with supplier and carrierWill it arrive in time?
NoENDEND
Initiate premium
freight
NO
YES
NO
YES
END
Automatic periodic
checking of
inventory items
(SCP Action Engine)
Automated with Robotic Process Automation (iRPA)
Fiori Inbox
SAP Business Process Management Over the Years
1996
SAP launches SAP Business Workflow as
embedded Workflow Management Tool in R/3
(later Business Suite)
2017
2014
XI (Exchange
Infrastructure) with
embedded cross-
component BPM
(ccBPM)
2001 2004
We acquire
Business Rules
Management
(BRM) leader
YASU
Technologies
2003
SAP introduces
Process
Orchestration
combining BPM, BRM,
PI + B2B
2008 2011
Cloud
SAP CP Workflow
SAP CP Business
Rules
2018
Cloud
SAP CP Process
Visibility (a)
SAP CP Workflow
becomes bot
runtime of iRPA
Cloud
Launch of IBPM -
a BPM Suite of services
on SAP Cloud Platform
Intelligent Process
Automation (BPM &
RPA)
2019
Customer Adoption:+20.000 Global Customers
leverage BPM technology
productively
Flexible Workflow
runtime for S/4HANA
Manage Workflow
Universal Worklist
(UWL) on the
Enterprise Portal
Business Activity
Monitoring (BAM)
capabilities based on
ccBPM
Business By Design
(ByD) with embedded
task management
We invent and release
Operational Process
Intelligence (Opint)
powered by SAP HANA
Java
SCP
ABAP
HANA
My Inbox in Fiori
2007
SAP BPM & SAP
BRM released
We are taking over
harmonizing Rules@SAP
with BRF+ (ABAP) and HRF
(HANA)
• SAP CP Process
Visibility GA
• SCP Process Mining
Inbox service
• Conversational AI &
ML scenarios
• Qualtrics Integration
(Business Process
Experience)
Business Process Management with Fiori 2.0
Me-area NotificationsWorkspace
Fiori 2.0 Capabilities
▪ Real-time KPI analytics
▪ Access to data, applications, analytics
▪ Connection to SAP and non-SAP assets
▪ Actionable alerts
▪ Contextual collaboration (internal/external)
iBPM Capabilities
▪ End-to-end business process modeling
▪ Guided process execution
▪ Tailored visibility of information
▪ Automatic alerts based upon workflows
▪ Compliance monitoring
Aligning the User Experience to Corporate Objectives
Me-area NotificationsWorkspace
1. Determine Corporate
Strategy and Objectives
2. Determine Operational
Objectives and Key
Performance Indicators
3. Identify Operational
Processes and the
Supporting Data Strategy
4. Model and Design the
User Performance
Cockpit in iBPM
19PUBLIC© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Auto OEM Value-Stream Re-engineering
• Enables open interaction between business partners
to address network issues and opportunities
• Promote teamwork across partners to maximize
overall process performance
Open Collaboration Stage
• Real-time data accessed or extracted from source
systems automatically for shared intelligence
• Enables better decision making for improved demand
responsiveness and cost management
Shared Data / Information Repository
• Automate processes spanning across partners for
process coordination and synchronization
• Optimize vehicle and service parts planning and
movement for improved customer service
Multi-Partner Processing Platform
Tier N
Suppliers
NSC,
Importer,
Distributor
End
CustomersOEMDealers
Tier 1
Suppliers
Supply Chain Distribution Chain Post-Sale
Advanced technology is providing unprecedented ability to redefine and streamline end-to-end business
processes, and proactively work with partners to increase revenue, manage costs, and improve overall customer
service.
Capabilities and Benefits
Intelligent Business Process Management (iBPM)
Business Process
Management
Process Governance: Establishing
and monitoring flexible business
processes designed to achieve
company objectives Real-Time Business
Process Monitoring
Real-time Interaction: Using real-time
operational data to deliver real-time
information and alerts to the people who
can minimize performance threats and act
on opportunities
Digital User
ExperienceFuture of Work: Creating an effective and
efficient user work experience that provides the
information, action, and collaboration needed
to achieve corporate performance objectives
Thank you for your time
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