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Implement Value Scenarios Integration Disclaimer: This presentation outlines our general product direction and should not be relied on in making a purchase decision. This presentation is not subject to your license agreement or any other agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or to develop or release any functionality mentioned in this presentation. This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP assumes no responsibility for errors or omissions in this document and shall have no liability for damages of any kind that may result from the use of these materials, except if such damages were caused by SAP intentionally or grossly negligent. Ann Rosenberg BTC Global Practice Ownership for BPM Senior Business Process Management Consultant Business Transformation Consulting SAPPHIRE 2009

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Page 1: Implement Value Scenarios - Archive · 2017-02-23 · Implement Value Scenarios Integration Disclaimer: This presentation outlines our general product direction and should not be

Implement Value ScenariosIntegration

Disclaimer:This presentation outlines our general product direction and should not be relied on in making a purchase decision. This presentation is notsubject to your license agreement or any other agreement with SAP. SAP has no obligation to pursue any course of business outlined in thispresentation or to develop or release any functionality mentioned in this presentation. This presentation and SAP's strategy and possiblefuture developments are subject to change and may be changed by SAP at any time for any reason without notice. This document isprovided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability,fitness for a particular purpose, or non-infringement. SAP assumes no responsibility for errors or omissions in this document and shall haveno liability for damages of any kind that may result from the use of these materials, except if such damages were caused by SAPintentionally or grossly negligent.

Ann RosenbergBTC Global Practice Ownership for BPMSenior Business Process ManagementConsultantBusiness Transformation Consulting

SAPPHIRE 2009

Page 2: Implement Value Scenarios - Archive · 2017-02-23 · Implement Value Scenarios Integration Disclaimer: This presentation outlines our general product direction and should not be

customer

What do a Value Scenario includePrerequisites to be successful when implementing a Value ScenarioImplement a Value Scenario in details –”Integrating Sourcing andProcurement“Prerequisites to ensure a successful running Value Scenario withinthe organizationSummery

Agenda

© SAP AG 2009. All rights reserved. / Page 2

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customer

What do a Value Scenario includePrerequisites to be successful when implementing a Value ScenarioImplement a Value Scenario in details –”Integrating Sourcing andProcurement“Prerequisites to ensure a successful running Value Scenario withinthe organizationSummery

Agenda

© SAP AG 2009. All rights reserved. / Page 3

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customer

mySAP SCM

mySAP PLM

mySAPSRM

mySAPCRM

mySAP ERPFinancials

Human ResourcesCorporate Services

Operations Management

SAP NetWeaver

Reposition the Business SuiteShift focus from Application to Customer Value

Application centric:Integrate Software Value centric:

Enable Customers’ Success© SAP AG 2009. All rights reserved. / Page 4

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customer

What do a Value Scenario includePrerequisites to be successful when implementing a Value ScenarioImplement a Value Scenario in details –”Integrating Sourcing andProcurement“Prerequisites to ensure a successful running Value Scenario withinthe organizationSummery

Agenda

© SAP AG 2009. All rights reserved. / Page 5

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customer

Why Customers Care about BPM?Top Priority in 2009 CIOs AgendaMeasurable paybacks on Efficiency, Accountability and Transparency

DriversEconomic downturn necessitatesimprovement in business processes

Volatile business environments requirefrequent business process changes

Regulatory and compliance requirementsincrease the need for process transparencyand consistency

Globalization and proliferation of networkedbusiness relationships increase processcomplexity, driving the need for moreprocess visibility

Business stakeholders are increasingly moretechnology-savvy

Technology can now support model-drivenmanipulation and composition of processesthroughout the process life cycle

Source: Gartner Q4 2008 – Market Trends© SAP AG 2009. All rights reserved. / Page 6

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customer

The Business Challenge

Customer Pain PointsNo documentation or analysis possible for business processes on activity levelLack of tools for standardizing & optimizing business processes (higherautomation with best performance)Lack of tools for identifying business process steps with weaknesses andoptimization potentialHigh amount of efforts dedicated for further activities, e.g. process optimization,Proof of Concept projects, etc

Customer Goals/NeedsStandardization of business processesSupport the processes in an integrated Solution Architecture mainly based on SAPsolutionsDefine a feasible road map for implementationMake benefits of each implementation step visibleSaving IT cost for operations and IT project

Source: Gartner Q4 2008 – Market Trends© SAP AG 2009. All rights reserved. / Page 7

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customer

What drives BPM - BPM Use Cases

Business buyer (supported by IT)

Rapid time to solution for new applicationExtension to existing applicationsGoal is broader, and better coordination ofmission-critical processBudget Trend: typically single project

Process-Based Application

IT and business buyer

Improve visibility and change managementGoal is application rationalization and modernizationBudget Trend: Level funding, increasing investment ifcombined with CPI or shared services

Redesign for a Process-Based SOA

Business and IT as buyerBPM is a program, consisting of multiple projectsGoal is business agility for key processesBudget Trend: Level or increasing investment

Continuous Process Improvement

Senior business executive as buyerRethink entire business processGoal is make a "game-changing" playIterative versus “big bang” approach to achievingtransformationBudget Trend: Level or increasing budget

Business Transformation

Source: Gartner Q4 2008 – Market Trends© SAP AG 2009. All rights reserved. / Page 8

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customer

From 2nd Generation to 3rd Generation

# Projects

Time

2ndGeneration

3rdGeneration

© SAP AG 2009. All rights reserved. / Page 9

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customer

How BPM can drive alignment !!!

Upgrade toBusiness Suite(3rd Generation

StandardSystems)

SOA/ ComposingTools (Galaxy)

ApplicationManagement

(Solman)

Six SigmaProcess

ImprovementProjects

IT Projects(SAP and Non

SAP)

Value Scenario

© SAP AG 2009. All rights reserved. / Page 10

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customer

How BPM can drive alignment !!!

Upgrade toBusiness Suite(3rd Generation

Standard Systems)

SOA/Composing Tools

(Galaxy)

ApplicationManagement

(Solman)

Six SigmaProcess

ImprovementProjects

IT Projects (SAPand Non SAP)

Value Scenario

© SAP AG 2009. All rights reserved. / Page 11

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customer

The Evolution of Process Management

Evolution (Time)

Evolution (Quality)

IndustrialEngineering

ToyotaProduction

System

Total QualityManagement

BusinessProcess

Re-engineering LeanManufacturing

Six-sigma

BusinessProcess

Management

© SAP AG 2009. All rights reserved. / Page 12

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customer

Business Process Management Is aManagement Discipline

Business Process Management (BPM) is a management discipline that requires

organizations to shift to process-centric thinking, and to reduce their reliance on

traditional territorial and functional structures.

BPM requires and enables organizations to manage the complete revision cycles of

their processes, from process design to monitoring and optimization, and to change

them more frequently to adjust to changing circumstances.

The development of BPM technologies is enabling business managers to abstract

process flows and rules from the underlying applications and infrastructure, and to

change them directly.

BPM is neither a technology nor an updated version of BPR. It is an IT-enabled

management discipline. It represents a fundamental change in how business manage

and run their processes

Source: Gartner Business Process Management Summit 2007

© SAP 2009 / Ann Rosenberg/ BPM Page 13

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customer

End to End process spansmanual and automated

activities

Standard Activities

Best Practices

Differencing Activities

Own Practices

Typically >80%

Processes that should be as costeffective as possible

Typically <20%Processes that deliver competitive

advantage and evolve regularly(SOA –Candidates)

Automated Activities

Manual Activities

Typically <20%

Typically >80%

Of the 20% of AutomatedActivities

Business Process Management covers both automated andmanual perspective

Bus

ines

s P

roce

ss M

odel

ing

in A

RIS

Com

posing in Galaxy

© SAP AG 2009. All rights reserved. / Page 14

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customer

15

BusinessSilos

StandardizedTechnology

OptimizedCore

BusinessModularity

DynamicVenturing

IT capability

Local ITapplications

Shared technicalplatforms

Companywidestandardized processesor databases

Plug-and-playbusinessprocessmodules

Seamlessmerging withpartners’systems

Businessobjectives

ROI of localbusinessinitiatives

Reduced IT cost Cost and quality ofbusiness operations

Speed tomarket;strategic agility

ROI of newbusinessventures

Who definesapplications

Local businessleaders

IT and business unitleaders

Senior managementand process leaders

IT, business,and industryleaders

IT, business,and industryleaders andpartners

Strategicimplications

Local/functionaloptimization

IT efficiency Business/operationalefficiency

Strategic agility Organicreconfiguration

Source: Ross et. al, 2006

Today Future

Architectural Maturity Stages, by RossCompanies move from standardization to businessmodularity

History

© SAP AG 2009. All rights reserved. / Page 15

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customer

UI

Logic

Data

TraditionalArchitecture

Application

Application

Enterprise Services ArchitectureSAP Business Suite

Innovation forD

ifferentiationStability and

Reliability

Composite Applications

EnterpriseServiceRepository

CRM

EnterpriseServiceRepository

Best Practice

SAP Enterprise Service Architecture ensures low TCO andflexibility without disruption – Support Business Modularity

(Ross, Business Modularity)(Ross, Standardized Technologyand Optimized Core)

© SAP AG 2009. All rights reserved. / Page 16

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customer

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

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

© SAP AG 2009. All rights reserved. / Page 17

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customer

Case study “Arla Foods “IT history” and the direction outlinedin the strategic IT plan for 2007-2012.”

EnterpriseArchitecture

BPM

SOA

ServiceOriented

(Ross, Business Modularity)

© SAP AG 2009. All rights reserved. / Page 18

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customer

• New Functionality • Businessresponsiveness

• Change businessprocess quickly and

effectively

• Business optimization• Increase decision

quality• Optimization acrossboarders of Bus.& IT

• Transformation fromreactive to real-time

• Increase Transparency

• IT cost reduction andcontrol

• Reduce time-to-market• Documented

processes

A culture of heroes

Processes areimproved at thework group or

department level

Processes areorganized and

redesigned at theenterprise level

Processes aremeasured and

managedsystematically

Process Teamscontinuously

improve processes

No organizedprocesses

Level 1 Some organizedprocesses

Level 2 Most ProcessesOrganized

Level 3 Processes aremanaged

Level 4 Processes arecontinuously improved

Level 5

Transformation Need

Based on CMMI

Process Maturity“The process maturity journey...”

Most companies has a process maturity today on level 2

© SAP AG 2009. All rights reserved. / Page 19

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customer

A New Strategic Context for BPM

SOA EA

Source: Business Process Management - The SAP Roadmap

© SAP 2009 / Ann Rosenberg/ BPM Page 20

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customer

SAP‘s Roadmap forBusiness Process Management (BPM)

1 2 3 4

STRATEGY SET-UP TRANSITION CONTINUOUSIMPROVEMENT

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-BASEDREWARDS

+EXPAND REPORTING

ALLOCATE BUDGET

PERFORM AUDITS

BUILD PROCESS-CENTRIC IT

+

+

Methodology and Governance

BPX Certification and BPX Community

BPM Technology

voted #3 in terms ofpopularity on

www.sappress.com.© SAP AG 2009. All rights reserved. / Page 21

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customer

Business Process Management“The BPM Governance Framework – Roadmap”

1 2 3 4

STRATEGY SET-UP TRANSITION CONTINUOUSIMPROVEMENT

MANAGE CHANGE

BUILD A PROCESS-CENTRIC IT

LINK TO STRATEGY

DEFINE BUILDINGBLOCKS

CHOOSE PATH

MONITOR FIT-GAP

DEFINE BASICS

DEVELOPANALYTICS

CREATEMETHODS

HARMONIZETERMS

CREATE BASIS

PERFORMANALYSIS

DEFINEPORTFOLIO

OPTIMIZEPROCESSES

ADD PROCESS-BASED REWARDS

EXPANDREPORTING

ALLOCATEBUDGET

PERFORMAUDITS

COMMUNICATE AND TRAIN

© SAP AG 2009. All rights reserved. / Page 22

SAP BPM Governance

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customer

Gov

erna

nce

Proj

ect V

iew

SAP´s New BPM Methodology —Supplement to ASAP

Process Project

Accelerated SAP (ASAP)

ProjectPreparation

BusinessBlueprint

Realization FinalPreparation

Go Life &Support

Process Management Life Cycle (PML) integrated with Six Sigma

Run/MonitorDesignAnalyze Implement

ProcessOperations

Target: PML (M

anual andautom

ated processes)

Target: BPM

for Implem

entingan autom

ated solution

PO/PBX

SAP PM/ BPX

SolutiontransformationCalibration To-Be

process designAs-Is

analysis

SAP BPM Methodology

Project Management Methodology (PMM)

Discovery Evaluation

Initiate Plan Execute/Control Close

Implement

Target: ProjectM

anagement

PM

SAP BPM Methodology

© SAP AG 2009. All rights reserved. / Page 23

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customer

Personas Across the Enterprise

Business

IT

Design collaboration• vertical

• layers of abstraction

• horizontal• multi-design user support

• threaded model discussions• model differencing

BusinessProcessExperts(BPX)

Business/IT waterline

BusinessUser

Executive

BusinessManager

Info Architect(IA)

ApplicationArchitect

IT Admin ApplicationConsultant

IT ServicesDeveloper

IT Developer –‘Hard Core’

BusinessExpert

BusinessAnalyst (BA)

ProcessArchitect (PA)

© SAP AG 2009. All rights reserved. / Page 24

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customer

BPM and SAP Basic

BPM Governance

BPM Methodology

BPM Technology

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

BPM300BPM300 Governance Overview:

(Strategy, Set-Up, Transition,Continues Improvement and BPM

supporting activities)

3 Day

BPM100

BPM100Methodology

2 Days

BPM010

BPM010: A NewStrategic Context?

SAPNW

SAPNWOverview

SAP01

SAP01 SAPOverview

SMO01

SMO01 SolutionManager OverviewBPM020

BPM020 Modelingoverview IDS Scheer

BPM130BPM130 SAP

Business Designerby IDS Scheer

2 Days SOA100SOA100 SAP

Enterprise SOAFundamental

2 Days

BPM030BPM030 Solution

Manager in a BPMset-up

Certification

SAP BPX Certification for Associate and Professional

© SAP AG 2009. All rights reserved. / Page 25

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customer

BPM and SAP Basic

BPM Governance

BPM Methodology

BPM Technology

Certification

BPM310

BPM310 Governance in detail:BPM Governance integration to TOGAF and EA

3 Day

BPM150BPM150 SAP Business Server and

Publisher, Enterprise Modeling , ProcessOptimization and Performance

Management by IDS Scheer

2 Days BPM140

BPM140 Model to Execution (SAPNetWeaver Business Process Management)

3 Days

SOA120

SOA120Methodology for BPM blending

with SOA

2 Days

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

SAP BPX Certification for Associate and Professional

© SAP AG 2009. All rights reserved. / Page 26

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customer

BPX Community —https://www.sdn.sap.com/irj/bpx

SAP BPX: https://wiki.sdn.sap.com/wiki/display/SAPBPX

SAP BPX Community

© SAP AG 2009. All rights reserved. / Page 27

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Closing The Loop Between Sourcing and ProcurementSustainable savings can only be achieved by closing the loop between thestrategic sourcing cycle and the procurement order cycle

IdentifySavings

NegotiateSavings

DeliverSavings

CPO

Spend Analysis OperationalProcurement Spend AnalysisStrategic Sourcing

Cost Savings

KPIs

Negotiated Costsavings

KPIs

Negotiated Costsavings

KPIs

Operating costOperating cycle-timeProductivityCompliance withContracts

KPIs

Cost savingsCost of purchaseProfitability

KPIs

Cost savingsCost of purchaseProfitability

The business value from procurement is typically generated in thestrategic sourcing cycle and then delivered in the procurement order cycle

CaptureSavings

Contract Life-cycleManagement

© SAP AG 2009. All rights reserved. / Page 28

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customer

KEY PERFORMANCE INDICATORS(Business KPI)

Business KPIs represent business goals thata company wants to achieve and that arederived from strategic goals

PROCESS PERFORMANCEINDICATORS (PPI)

PPIs represent process goals that a companywants to achieve and that are derived frombusiness goals

STRATEGIC INDICATORS

Strategic Indicators represent strategic goalsthat a company wants to achieve

STRATEGIC GOALS

BUSINESS GOALS

PROCESS GOALS

Con

tribu

te to

Cascading

Always link the process improvement to the StrategicIndicators and the Process Maps

Key Corporate KPIs

© SAP AG 2009. All rights reserved. / Page 29

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customer

1. AnalyzeEvaluate strategy, currentenvironment; and processes thatmay be in placeIdentify business goals and definerequirements for an existing or newprocessPrioritize improvement areas& perform scopingDescribe process goals

2. DesignEvaluate potential solutionsDesign one or more alternativesolutionsEstimate impact of alternatives onKPIs, PPIs and environmentDecide on process implementation

4. Run/MonitorExecute the business processMeasure & monitor the businessprocessGather and analyze variancesPerform consequence managementInitiate a business processoptimization cycle if necessary

3. ImplementPrepare for and perform theimplementation projectEnable measurement of KPIs, PPIsPerform change management andestablish process ownershipRoll-out the process

The PML method ensures a standardizedapproach for process handling

© SAP AG 2009. All rights reserved. / Page 30

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customer

BPM tool box“from business to model to model to execution”

ProcessComposing

Modeling to execution– BPM for NetWeaver

ESR (SOA)

Link process to service (SOA)

© SAP AG 2009. All rights reserved. / Page 31

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customer

Define Metrics andTarget Values for

PPM

Implement PPMand Process

Reporting

Measureand Monitorthe Process

Define RequiredProcess Reporting

Estimate Results forTo-Be Alternatives

Report theProcess

Identify a Set ofMetrics for PPM

Process Goals

As-is PPIs

AnalyzePPM Data

efficiencyprocessingtime

automation

workflow support

interfaces

customer service

error avoidancerisk mitigation

quality of data

standardized modeof operation

processtransparency

handling/usability

compliance & regulations transparency for the customer

SLA`s,de livery reliability

efficiencypr oces singtime

automation

wor kflow support

inte rface s

cus tomer s ervice

e rror avoidancerisk mitigat ion

quality of data

s tandardize d modeof ope ration

processtranspar ency

handling/us ability

compliance & re gulations transpare ncy for the cus tomer

SLA`s,deliver y re liability

Target PPIs

Realized PPIs

efficiencyprocessingtime

automation

workflow support

interface s

customer service

error avoidancerisk mitigation

quality of data

standardized modeof operation

processtransparency

handling/usability

compliance & regulations transparency for the customer

SLA s,delivery reliability

efficiencyprocessingtime

automation

workflow support

interfaces

customer service

error avoidancerisk mitigation

quality of data

standardized modeof operation

processtransparency

handling/usability

compliance & regulations transparency for the customer

SLA s,delivery reliability

To-be PPIsAlternative A

Alternative B

efficiencyprocessingtime

automation

workflow support

interfaces

customer service

error avoidancerisk mitigation

quality of data

standardized modeof operation

processtransparency

handling/usability

compliance & regulations transparency for the customer

SLA`s,de livery reliability

A

B

PPI Framework

Working with PPI Fingerprints Throughout theWhole Process Management Life Cycle

© SAP AG 2009. All rights reserved. / Page 32

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customer

3 Lifecycles when implementing a ProcessImprovement – Value Scenario

Process Lifecycle

• BPM Method• BPM Technology• Process Owner

Application Lifecycle

• ASAP/Run SAP• Solution Manager• IT/ CCC

Project Lifecycle

• PMI/ Prince 2• PM Tools• Project Manager

© SAP AG 2009. All rights reserved. / Page 33

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customer

Blueprint

BPM MethodologyFrom Solution Transformation to CompositionBPM Blueprint and Scenario Flow

Business Process ManagementASAP

Technical Design and Implementation

Calibration As IsAnalysis

To BeDesign

SolutionTrans-

formation ScenarioFlow

TechnicalDesign

Develop-ment

Transitionto

BusinessGo Live

Role 1 Role 2 Role 3

Output of Solution Transformation is aScenario Flow Model which is part ofthe Blueprint and shows the Composite

Process as part of the overall valuechain.

© SAP AG 2009. All rights reserved. / Page 34

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customer

What do a Value Scenario includePrerequisites to be successful when implementing a Value ScenarioImplement a Value Scenario in details –”Integrating Sourcing andProcurement“Prerequisites to ensure a successful running Value Scenario withinthe organizationSummery

Agenda

© SAP AG 2009. All rights reserved. / Page 35

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customer

Value Scenario - Implementation Packagesand Configuration Building Blocks

Value Scenario

ImplementationPackage 1

ImplementationPackage 2

ImplementationPackage 3

ImplementationPackage N…

Realized BusinessProcess 1

Realized BusinessProcess Variant 1.1

Realized BusinessProcess Variant 1.2

Realized BusinessProcess Variant 1.3

Config.BuildingBlock 1

Config.BuildingBlock 2

Config.BuildingBlock 3

Config.BuildingBlock 4

Config.BuildingBlock 5

Config.BuildingBlock 6

Config.BuildingBlock 7

Config.BuildingBlock 8

Config.BuildingBlock 9

Config.BuildingBlock 10

BC Sets, IMG ObjectsBC Sets, IMG ObjectsBC Sets, IMG Objects

Realized BusinessProcess N

Top-

dow

n de

finiti

on o

fIm

plem

enta

tion

Pack

ages

from

Val

ue S

cena

rio

Bot

tom

-up

defin

ition

of C

onfig

urat

ion

Bui

ldin

g B

lock

s fr

om S

oftw

are

© SAP AG 2009. All rights reserved. / Page 36

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customer

Value Scenario - Implementation Packagesand Configuration Building Blocks Example

Optimizing Sales andMarketing Investments

Sales Operations Account and ContactInformation

CampaignManagement

Sales Forecasting andPlanning…

Sales OrderProcessing in ERP

Sales Order Processingin ERP for Apparel and

Footwear

Organ.Mgmt

ExternalAccounting

CostAccounting

MaterialsMgmtBasics

Sales &Distribution

Basics

BatchMgmt

ExtendedSalesOrder

AFS SDSettings

AFS MMSettings

Costing

CentralMaster

Data Mgmt

AFS SalesOrder

Settings

Product Cost byOrder

Filter set:Apparel and

FootwearIndustry

Filter set:Apparel and

FootwearIndustry

© SAP AG 2009. All rights reserved. / Page 37

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Theme: Operational Excellence

Integrated, End-to-End Value ScenariosFor manufacturing and Services Industries

Integrating Sourcingand Procurement

Description Sponsor(Buying Center)

For the CPO, sustainable savings can only be achieved byclosing the loop between the strategic sourcing cycle and theprocurement order cycle. This end-to-end scenario includes:strategic sourcing, contract life-cycle management, operationalprocurement, spend analytics.

Industries

Public Sector,Higher Ed., Logis.,Telco, Oil andGas, HT, CP

Chief ProcurementOfficer

Value Scenario

Running EfficientManufacturing

Operations

For the COO who must run the manufacturing operations andassets more efficiently, improve quality and profitability whilecomplying with safety and environmental regulations. Thisend-to-end scenario includes: enterprise planning and control,plant level planning and control, manufacturing execution, andsafety & environmental compliance.

A&D, Auto, IM&C,Chemicals, MillProducts & Mining,Oil & Gas, LifeSciences

Chief OperatingOfficer/VP ofManufacturing

Delivering EfficientAfter-Sales Service

For the VP of Services, after-sales service is an importantcompetitive differentiator and source of revenue for theorganization. This end-to-end scenario includes: service salesand marketing, customer care, service planning and execution,service parts planning, service parts warehousing, serviceparts sales, service parts claims and returns.

A&D, IM&C, Auto,H/T, Telco, CP,Defense, Utilities

VP of Services

. Chief OperatingOfficerEnsuring Continuous

PerformanceImprovement

For the COO, complete visibility on operations with fact-basedinformation is fundamental to manage the operationalperformance and ensure continuous improvement. Thisscenario includes: operations performance visibility andoperations processes analysis

ManufacturingIndustries, ServiceIndustries

OTHER VALUE SCENARIOS THAT WE CONTINUE TO INVESTIGATE AND DEVELOP:Store Operations (Retail) - Service Delivery Innovation (Service Industries) - Call Center Operations (Service Industries)

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Closing The Loop Between Sourcing and ProcurementSustainable savings can only be achieved by closing the loop between thestrategic sourcing cycle and the procurement order cycle

IdentifySavings

NegotiateSavings

DeliverSavings

CPO

Spend Analysis OperationalProcurement Spend AnalysisStrategic Sourcing

Cost Savings

KPIs

Negotiated Costsavings

KPIs

Negotiated Costsavings

KPIs

Operating costOperating cycle-timeProductivityCompliance withContracts

KPIs

Cost savingsCost of purchaseProfitability

KPIs

Cost savingsCost of purchaseProfitability

The business value from procurement is typically generated in thestrategic sourcing cycle and then delivered in the procurement order cycle

CaptureSavings

Contract Life-cycleManagement

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© SAP 2009 / 40

Integrated Sourcing and ProcurementKey Stakeholders and Objectives

Strategic Sourcing Contract ManagementSpend Analytics

CPO

CPOCPOCPO

How do I maximizecost savings?

How do I enablecomplete visibility intospend?

How do I avoid missingsavings opportunities?

How do I avoid savingsleakage?

Percentage of totalspend undermanagement

Amount andpercentage ofidentified savingsopportunities

Increase savingsopportunities

Maximize negotiatedsavings

Ensure contractcompliance

Reduce operationalcosts

Percentage of sourcingprojects captured in thesystem

Amount andpercentage ofnegotiated savings

Sourcing cycle-time

Amount andpercentage of capturedcost savings incontracts

Percentage ofcompliant transactionswith contracts

Contract creationcycle-time

How do I deliver highlyefficient procurementoperations?

OperationalProcurement

CPO

Procurement operatingcost as % of revenue

Amount and percentageof savings realized

Percentage of complianttransactions withcontracts

Procurement productivity

Sustainable savings in procurement can be realized only by closing the loopbetween your strategic sourcing activities and your procurement order cycle

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© SAP 2009 / 41

Integrated Sourcing and ProcurementEnd-to-End Process

Strategic Sourcing Contract ManagementSpend Analytics

CPOCPOCPO

CPO

Integrated Sourcing and Procurement connects Spend Analytics, Strategic Sourcing,Contract Management, and Operational Procurement to sustain savings

Operational Procurement

CPO

StrategicPurchasing

OperationalPurchasing

Supplier

ContractNegotiation

Key SupplierContact

Head ofProcurement

Head ofProcurement

Head ofDemanding Unit

CategoryStrategyPlanning

ConsolidatedSpend

Reporting

BuyerComplianceReporting

SupplierManagement

Self-Registration

and DataAdministration

Create andSubmit Bids

BidEvaluation

andAwarding

SupplierEvaluation

andOnboarding

DemandingUnit

BusinessUnit

ComplianceReporting

PurchasingPolicy and

ComplianceAnalysis

RFxPreparation

andProcessing

Templateand Clause

Library

ContractRepository

ContractExecution

ContractNegotiation

SupplierCompliance

Analysis

SourceAssignment

DemandPlanning and

Creation

FinancialSettlement

PurchaseOrder

Processing

Goods andService

Confirmation

OrderCollaboration Service Entry Invoice

Collaboration

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© SAP 2008 / Page 42

Design the new process based on the Value Scenario:Integrating Sourcing and Procurement

SAP Enterprise Modeling by IDS ScheerEnterprise Services RepositorySAP Solution Manager+ Integrations

Demo

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customer

Functional HighlightsSAP Enterprise Modeling – Enterprise Services Repository Integration

Uni-directional interface from SAP Enterprise Modeling toEnterprise Services RepositoryDirect access from conceptual business process planning toservicesAccess to several service models (delivered by SAP or defined bycustomer in read-only mode)Merge of several key service modeling entities from ES Repositoryto SAP Enterprise ModelingAnnotation of these key entities in conceptual business processmodels in SAP Enterprise ModelingCreation of Service Request to identify new services based onGAP analysis

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© SAP 2008 / Page 44

Implement the new process based on the Value Scenario:Integrating Sourcing and Procurement

Solution Manager, Business SuitesCore configurationCore enhancementSOA/CompositionThird Party solution

Demo

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customer

What do a Value Scenario includePrerequisites to be successful when implementing a Value ScenarioImplement a Value Scenario in details –”Integrating Sourcing andProcurement“Prerequisites to ensure a successful running Value Scenario withinthe organizationSummery

Agenda

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customer© SAP 2008 / Page 47

Run and Monitor the new process based on the Value Scenario:Integrating Sourcing and Procurement

Solution Manager, SAP PPM by IDS ScheerProcess Performance MeasurementApplication Performance Measurement

Demo

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customer

A process performance management was set up in order to achieve transparency and governance referring to process quality andprocess maturity. As a joint initiative SAP Process Office, SAP IT, IDS Scheer and GPO could successfully roll out the first wave ofPPM@GPO.

• Process Governance• Process Quality and Maturity• Process Transparency

Majorobjectives:

ObjectiveProcess Performance Management @ GPO

PPM@GPO

PPMProcess Warehouse

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customer

Analyze and Definition

Q-Gate

Q-Gate

Q-Gate

Model Owner PPIs Business Case

Deliverables

GPO‘s Process Definition

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customer

Interaction Performance Dashboard and PPM

Step 6 - 7: Performance Dashboard

Information for GPO Management:- Comprehensive information to current situation- Alert information AS-IS to Plan (cycle time, etc.)- Defined Key-Figures- Indicates performance bottlenecks and starting pointfor Drill-Down Analysis

Detailed information:- Drill-Down Analysis- What has happened ?- Why has it happened ?- When has it happened ?- Which POs / Processes were influenced ?

PerformanceDashboard

W ebbaseddashboard

ProcessPerformanceAnalysis

Link to PPA /W ebbased

1. Level

2. Level

Drill- Do w n to Process Performance Management (PPM)Request

Information

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customer

Process Overview in PPMSRM SC created until Invoice verification

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customer

Example: Cycle Time - Requisition to PO sendProcess Performance Management - Analysis

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customer

Example Management View: Cycle Time Analyis

Average Q1 and Q2 2009

Process Performance Management - Analysis

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customer

Example: PPM Dashboardhttp://pwdf4633:8080/APD_sap_gpo/

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customer

Cycle Time SC Creation to PO Send per CommodityBenefits:

Provide transparency onprocesses on a global, regional andlocal level

Support Buyers in managing theirdaily workload and give them timeto focus more on strategic issues

Support Project Leaders in runningSAP Sigma projects moreeffectively

Provide our customer a higher levelof service (time to process aPurchase Order)

Implement best-in-class purchasingprocesses for benchmarking andsales arguments

Identify weaknesses inside theprocesses and improve processautomation

Example and Usage of Process Cycle TimeMeasuring processes provides numerable benefits for Purchasing

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customer

Architecture

SolutionDirectory

Systems

SAPCRM

Other

BusinessProcesses

Documen-tation

SAPERP

SAPAPO

Implementation and RolloutSolution Monitoring

Service planand Execution

Service Desk

Upgrade

Change Management

Tests

E-LearningManagement

SAP Solution Manager

Global Rollout

Processtemplates

OPERATE

IMPLEMENT.

OPTIMIZE

Businessprocesses

The correct Solution Manager approach (C)Overview - SAP Solution Manager throughout the application lifecycle

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customer

What do a Value Scenario includePrerequisites to be successful when implementing a Value ScenarioImplement a Value Scenario in details –”Integrating Sourcing andProcurement“Prerequisites to ensure a successful running Value Scenario withinthe organizationSummery

Agenda

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… with the right material,resources, equipment, people…

… with the right tools…

… with the right methods,instructions & documentation…

… with the right (IT & Process Office) support…… with satisfied (internal & external) customers.– Success!

Successful implementation of a Value Scenario

Implementing aValue Scenario using

SAP´s BPM approach islike…

… building ashelf.

Customer Process Owner

Customer Process Owner

Employee

EmployeeEmployee

Create successful processes…

IT

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customer

SAP‘s Roadmap forBusiness Process Management (BPM)

1 2 3 4

STRATEGY SET-UP TRANSITION CONTINUOUSIMPROVEMENT

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-BASEDREWARDS

+EXPAND REPORTING

ALLOCATE BUDGET

PERFORM AUDITS

BUILD PROCESS-CENTRIC IT

+

+

Methodology and Governance

BPX Certification and BPX Community

BPM Technology

Voted #3 in terms of popularityon www.sappress.com.

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customer© SAP 2007 / Page 60

Ann RosenbergBTC Global Practice Ownership forBusiness Process ManagementSenior Business ProcessManagement ConsultantBusiness Transformation ConsultingM +45 2923 3340mailto:[email protected]

SDN/BPX Business CardJoin SAP Developer Network(SDN) at sdn.sap.comJoin Business Process Experts(BPX) at bpx.sap.comTwitter:http://twitter.com/annrosenberg

For more information,please feel free to get in touch with:

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customer

Copyright 2009 SAP AGAll rights reserved

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changedwithout prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

SAP, R/3, xApps, xApp, SAP NetWeaver, Duet, SAP Business ByDesign, ByDesign, PartnerEdge and other SAP products and services mentioned herein as well as their respective logos aretrademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned and associated logos displayedare the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This documentcontains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy,and/or development. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, orother items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties ofmerchantability, fitness for a particular purpose, or non-infringement.

SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitationshall not apply in cases of intent or gross negligence.

The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in thesematerials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages

Weitergabe und Vervielfältigung dieser Publikation oder von Teilen daraus sind, zu welchem Zweck und in welcher Form auch immer, ohne die ausdrückliche schriftliche Genehmigung durchSAP AG nicht gestattet. In dieser Publikation enthaltene Informationen können ohne vorherige Ankündigung geändert werden.

Einige von der SAP AG und deren Vertriebspartnern vertriebene Softwareprodukte können Softwarekomponenten umfassen, die Eigentum anderer Softwarehersteller sind.

SAP, R/3, xApps, xApp, SAP NetWeaver, Duet, SAP Business ByDesign, ByDesign, PartnerEdge und andere in diesem Dokument erwähnte SAP-Produkte und Services sowie diedazugehörigen Logos sind Marken oder eingetragene Marken der SAP AG in Deutschland und in mehreren anderen Ländern weltweit. Alle anderen in diesem Dokument erwähnten Namenvon Produkten und Services sowie die damit verbundenen Firmenlogos sind Marken der jeweiligen Unternehmen. Die Angaben im Text sind unverbindlich und dienen lediglich zuInformationszwecken. Produkte können länderspezifische Unterschiede aufweisen.

Die in diesem Dokument enthaltenen Informationen sind Eigentum von SAP. Dieses Dokument ist eine Vorabversion und unterliegt nicht Ihrer Lizenzvereinbarung oder einer anderenVereinbarung mit SAP. Dieses Dokument enthält nur vorgesehene Strategien, Entwicklungen und Funktionen des SAP®-Produkts und ist für SAP nicht bindend, einen bestimmtenGeschäftsweg, eine Produktstrategie bzw. -entwicklung einzuschlagen. SAP übernimmt keine Verantwortung für Fehler oder Auslassungen in diesen Materialien. SAP garantiert nicht dieRichtigkeit oder Vollständigkeit der Informationen, Texte, Grafiken, Links oder anderer in diesen Materialien enthaltenen Elemente. Diese Publikation wird ohne jegliche Gewähr, wederausdrücklich noch stillschweigend, bereitgestellt. Dies gilt u. a., aber nicht ausschließlich, hinsichtlich der Gewährleistung der Marktgängigkeit und der Eignung für einen bestimmten Zwecksowie für die Gewährleistung der Nichtverletzung geltenden Rechts.

SAP übernimmt keine Haftung für Schäden jeglicher Art, einschließlich und ohne Einschränkung für direkte, spezielle, indirekte oder Folgeschäden im Zusammenhang mit der Verwendungdieser Unterlagen. Diese Einschränkung gilt nicht bei Vorsatz oder grober Fahrlässigkeit.

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Alle Rechte vorbehalten.

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customer© SAP 2008 / Page 62

Design the new process based on the Value Scenario:Integrating Sourcing and Procurement

SAP Enterprise Modeling by IDS ScheerEnterprise Services RepositorySAP Solution Manager+ Integrations

Demo

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customer

DEMO - Scenario Component List

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customer© SAP 2008 / Page 65

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customer© SAP 2008 / Page 66

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customer© SAP 2008 / Page 67

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customer

DEMO – BPR Content

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DEMO - ARIS

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customer© SAP 2008 / Page 83

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customer© SAP 2008 / Page 84

Implement the new process based on the Value Scenario:Integrating Sourcing and Procurement

Solution Manager, Business SuitesCore configurationCore enhancementSOA/CompositionThird Party solution

Demo

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customer

Demo – Solution Manager

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customer© SAP 2008 / Page 103

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customer© SAP 2008 / Page 104

Run and Monitor the new process based on the Value Scenario:Integrating Sourcing and Procurement

Solution Manager, SAP PPM by IDS ScheerProcess Performance MeasurementApplication Performance Measurement

Demo

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customer

DEMO - PPM

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customer

All Regions

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Germany – SRM usage - current

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customer

Germany – SRM usage – Previous month

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Germany – Management View – Processanalysis

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Different Filters/ Views

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All Commodities

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All Commodities - Travel

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CurrentPrevious period

All Commodities – Travel

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All Commodities – Travel – Process Analysis

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DEMO – Solution Directory

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