implement value scenarios - archive · 2017-02-23 · implement value scenarios integration...
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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
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
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
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
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
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
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
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
customer
From 2nd Generation to 3rd Generation
# Projects
Time
2ndGeneration
3rdGeneration
© SAP AG 2009. All rights reserved. / Page 9
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
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
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
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
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
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
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
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
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
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
customer
A New Strategic Context for BPM
SOA EA
Source: Business Process Management - The SAP Roadmap
© SAP 2009 / Ann Rosenberg/ BPM Page 20
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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)
© SAP AG 2009. All rights reserved. / Page 38
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 39
© 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
© SAP AG 2009. All rights reserved. / Page 40
© 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
© SAP AG 2009. All rights reserved. / Page 41
© 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
© SAP AG 2009. All rights reserved. / Page 42
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
© SAP AG 2009. All rights reserved. / Page 43
© 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
© SAP AG 2009. All rights reserved. / Page 44
© SAP 2007 / Page 45
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 46
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
© SAP AG 2009. All rights reserved. / Page 47
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
© SAP AG 2009. All rights reserved. / Page 48
customer
Analyze and Definition
Q-Gate
Q-Gate
Q-Gate
Model Owner PPIs Business Case
Deliverables
GPO‘s Process Definition
© SAP AG 2009. All rights reserved. / Page 49
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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Example: Cycle Time - Requisition to PO sendProcess Performance Management - Analysis
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Example Management View: Cycle Time Analyis
Average Q1 and Q2 2009
Process Performance Management - Analysis
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Example: PPM Dashboardhttp://pwdf4633:8080/APD_sap_gpo/
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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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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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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.
© SAP AG 2009. All rights reserved. / Page 59
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
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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
customer
DEMO - Scenario Component List
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DEMO – BPR Content
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DEMO - ARIS
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Implement the new process based on the Value Scenario:Integrating Sourcing and Procurement
Solution Manager, Business SuitesCore configurationCore enhancementSOA/CompositionThird Party solution
Demo
customer
Demo – Solution Manager
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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
customer
DEMO - PPM
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customer
All Regions
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Germany – SRM usage - current
© SAP 2007 / Page 110
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Germany – SRM usage – Previous month
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customer© SAP 2007 / Page 112
Germany – Management View – Processanalysis
customer
Different Filters/ Views
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All Commodities
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customer© SAP 2007 / Page 115
All Commodities - Travel
customer© SAP 2007 / Page 116
CurrentPrevious period
All Commodities – Travel
customer© SAP 2007 / Page 117
All Commodities – Travel – Process Analysis
customer
DEMO – Solution Directory
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