sap enterprise modeling applications (aris): the first ... the first step in... · sap enterprise...

SAP Enterprise Modeling Applications (ARIS): The first step in your BPM strategy for SAP

•Sarah White, SAP Quality and Risk Management

•Solution Engineer

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Today’s Dynamic Business EnvironmentsDemand a New Approach to Managing Business Processes

…requiring processes that can easily be adapted

…requiring processes to span across organizational and geographical boundaries

…requiring tools that foster the collaboration between LOB who defines processes and IT who

implements processes

Business changes more rapidly

Businesses forming global networks

Closer Business and IT alignment is imperative

Speed of change!Business & IT alignment!Global Networks!

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CIO’s Prio 1: Business Process Improvement According to 2010 Gartner Survey among 1,600 CIOs worldwide

# Business Priorities

1 Business process improvement

2 Reducing enterprise costs

3 Increasing the use of information/analytics

4 Improving enterprise workforce effectiveness

5 Attracting and retaining new customers

6 Managing change initiatives

7 Creating new products or services (innovation)

8 Targeting customers and markets more effectively

9 Consolidating business operations

10 Expanding current customer relationships

Source: Source: Gartner EXP (January 2010)

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Business Process Agility is becoming a standard requirement for IT and business .” Gartner (G00138195)“

Source: Forrester Research, Inc. September 2007, Base: 75 Business and IT decision-makers

Considering your existing enterprise app implementations,

how important are the following business problems?

(percent answering “important” or “very important”)

Inflexibility limits process changes

Lack of visibility into process results

Poor cross-functional processes

Business requirements vs. apps mismatch

Poor internal/external collaboration tools

Can’t extend processes to external partners

Poor industry-specific functionality

77 %

77 %

76 %

76 %

65 %

53 %

47 %

Obstacles to Change Existing Business ApplicationsAgile processes need more functionality

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What is Business Process Management?

Business Process Management (BPM)

Business Process Management (BPM) refers to the integrated and continuous analysis, design, implementation, execution, measurement and monitoring of business processes in order to increase effectiveness and efficiency with respect to the corporate strategy.

BPM also covers the process-related environment, such as organizational structures, people, and technology. In particular it deals with cross-functional and inter-organizational business activities.

Process Management Lifecycle (PML)

PML is SAP's BPM model. It covers the whole lifecycle of a business process and can therefore be used within process projects. PML can also be used during the execution and monitoring of existing business processes.

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Why Customers Care?

� 30-45% reduction in process operating costs

� 50-75% reduction in end-to-end process

completion time

� 60-90% reduction in time to change

business requirements

� 75-90% reduction in manual operations

errorsSource: Gartner

Business expectations for IT focus on improving current operations and performance

*Source: Gartner Executive Programs - Meeting the Challenge: The 2009 CIO Agenda

“BPM gives companies visibility into

processes that are key to cost management.

BPM is a lifeline in this troubled economy. It

helps companies find and avoid hidden costs

— to keep companies in business.

� Discover expenses that can be avoided� Bring visibility to hidden costs and take action

� Reduce costs and errors associated with compliance requirements

It's a Matter of Survival: Use BPMto drive out costs

Companies in a broad range of industries are reporting measurable paybacks from

BPM

Source: Gartner, March 2009

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The Value of BPM: The Link Between a Focus on Process

Excellence & Higher Market Valuations

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SAP Enterprise Business Process Management Life Cycle

Analyze:

SAP Business Process Optimization by IDS Scheer

Identify process weak points and bottlenecks

Determine utilization of resources

Analyze KPIs to enable sound justification of suggested process improvements

Monitor:

SAP Process Performance Management by IDS Scheer

Measure performance of existing processes

Visualize, document and analyze the actual performed processes

Run:

SAP NetWeaver BPM

SAP Enterprise Modeling Integration with SAP ESR

Design:

SAP Enterprise Modeling by IDS Scheer

Analyze and optimize existing processes

Design processes on a conceptual level

Achieve process governance and assignprocess ownership

Implement:

SAP Enterprise Modeling by IDS Scheer with integration to Solution Manager

Accelerate Implementation via pre-prepared content

Increase visibility via full integration of all Business Process and Enterprise Architecture components and advanced reporting

Get There Faster.29 June 2010 | ProcessWorld 2010 | 9

SAP Enterprise Business Process Management Life Cycle - Design

Design:


�Analyze and optimize existing processes

�Design processes on a conceptuallevel

�Achieve process governance and assign process ownership

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Business and IT Challenges

>> Company-wide, distributed design of business processes and IT

architectures.

� How can I make my processes understandable and how do I visualize and communicate them in ONE common

language?

� What potential saving does establishing best practices in

my processes bring about?

� How can I improve adaptation of our IT to my business

processes?

� Where do synergies occur in the IT environment and how can

I avoid redundancies?

� What action do I need to take in the event of a system failure?

Head of Business

Department

IT Manager

Bridge the Gap

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Enterprise Architecture Environment

DataData

OrganizationOrganization

ProcessProcess

Product/Product/

serviceservice

RelationshipManager

ServiceSpecialist

Branch

BranchFront Office

BranchBack Office

BranchManager

ClientName

ClientAddress

ClientRelationship

Data

ClientMaster

Data

ProductData

Accountproduct

requested

Opennew

account

AccountManagementApplication

ClientMaster

Data

RelationshipManager

AccountOpening

Form

Accountfor new

client opended

Accountfor existing

client opened

RetailAccount

Bank Products& Services

RetailLending

RetailSaving

RetailCards

RetailPayment

RetailAccount

BankApplication

Portfolio

CardManagementApplication

LendingApplication

SavingApplication

AccountManagementApplication

ApplicationApplication

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Core business processCore business process

Business processBusiness process

Process stepProcess step

Main business processMain business process

Adapt SAP Enterprise Modeling to Your Needs... ... by creating your own model types and methods.

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Modeling and Analysis: Roles and Tools Involve the Business Users

SAP Enterprise Modeling by IDS ScheerSAP Enterprise Modeling by IDS Scheer

� Process Manager

� Business Architects

Write

Write

� IT Architecture Manager

� IT Development Planner

UMG Gro up

Un ited MotorsGrou p

Exe cut ive Board

Uni ted MotorsGrou p

Sup ervi sory Board

Unite d Mo to rsAutomo ti ve

Engi nee ri ng

Un ited MotorsBank

Uni ted MotorsCar Ren ta l

Ad mini strat ion &Shared Servi ces

Customer contact

until vehicle delivery

Vehicle ready for

delivery

Welcome

customer

Check if vehicle

trade-in applies

Trade-in available Trade-in not

available

PRO-ORDE R

Ins t2 1

A -P L A N Ins t1

PRO-ORDE R

Ins t0 2

A -P L A N Ins t2

A -P L A N Ins t3

PRO -

OR DER

A-PLA N

A-PLAN Ins t4

A-PLAN Ins t5

A-PLAN Ins t6

A-PLAN Ins t7

Customer has1

Pre-owned vehiclen

Vehicleidentificatio

n number

Mileage

CustomerID

Name

Year ofmanufacture

Trade-in possible

A u tom o t ive

E n g i ne e rin g

S e rvi ce sCa r

E x e cu t i ve c a r

Com p ac t c ar

C ar a cc e s so rie s

24 h se rvi ce

M ai nt en an c e an d se rvi ce

UM G. to p

U MG. fa mi l y

S p are p art s

A c c es s ori e s& t u n in g

ARIS

Repository

SAP Business Designer by IDS Scheer

SAP Business Designer by IDS Scheer

� Person who models

the processes

Worldwide process design

Write

SAP Business Process Optimization by IDS ScheerSAP Business Process Optimization by IDS Scheer

� Person who

analyzes the

processes

Write

SAP Business Publisher by IDS Scheer

SAP Business Publisher by IDS Scheer

� Readers = Technical

departments / Staff in

chargeRead

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SAP Enterprise Modeling Applications by IDS Scheer

SAP Business Publisher by IDS ScheerSAP Business Publisher by IDS Scheer

SAP Business Designer by IDS ScheerSAP Business Designer by IDS Scheer

SAP Enterprise Modeling by IDS ScheerSAP Enterprise Modeling by IDS Scheer



SAP Business Process Optimizer by IDS ScheerSAP Business Process Optimizer by IDS Scheer

SAP Enterprise Modeling Application Product BundlesSAP Enterprise Modeling Application Product Bundles


SAP Enterprise Business Process Management Life Cycle - Implementation

Implement:


�Accelerate Implementation via pre-prepared content

� Increase visibility via full integration

of all Business Process and Enterprise Architecture components and advanced reporting

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Implementation… Key Building Blocks

Close the IT / Business Gap

With Systematic alignment

Utilizing SAP’s Business Process Repository

SAP Solution Manager

To accelerate your Implementation

SAP Enterprise Modeling

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Project Scenario Process Process Step/Transaction

SAP Solution Manager SAP Enterprise Modeling

Project Scenario Process Process Step/Transaction

Synchronize

SAP Solution Manager and SAP Enterprise Modeling Synchronization: Structure

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Functional Allocation Diagram (FAD)

Value Added Chain Diagram (VACD)

Value Added Chain Diagram (VACD)

Event Driven Process Chain (EPC)

SAP Solution Manager and SAP Enterprise Modeling Synchronization: The Models

Project Scenario Process Process Step/TransactionProject Scenario Process Process Step/Transaction

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Original

Event Driven Process Chain (EPC)

Built Out Example

SAP Solution Manager and SAP Enterprise Modeling Synchronization: Model Build Out Example

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Documentation and Training embedded in Business Process Architecture

Transaction Call

Documentation Call

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Original

SAP Solution Manager and SAP Enterprise Modeling Synchronization: Updating SAP Synchronized Objects

EPC with SAP object added in SAP EM

Updates Solution Manager Blueprint Structure and Configuration

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Solution Manager

ERP - IMG

Process Oriented Configuration from SAP Enterprise Modeling to Solution Manager

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SAP Enterprise Modeling Process and Project Accelerators

Business Processes in SAP Enterprise Modeling

Process Oriented Configuration

Process Oriented Testing

Process Oriented Training

Process Performance Monitoring

Use AS-IS Process Redocumentation (Solution Documentation Assistant, etc) for Upgrade Preparation

TO-BE Processes

BlueprintDocumentation


SAP Enterprise Business Process Management Life Cycle - Run

Run:

SAP NetWeaver BPM


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Enterprise Multilevel End to End Concept: Top-Down Approach in SAP Enterprise Modeling

Process StepProcess Step

Main processMain process

ProcessProcess

ProcessProcess

areaareaLevel 1Level 1Level 1Level 1Level 1Level 1Level 1Level 1

Level 2Level 2Level 2Level 2Level 2Level 2Level 2Level 2



Inventorymanagement

Goodsreceipt

Send shipping

notification

Supplymanagement

Transactions/Enterprise ServicesTransactions/Enterprise Services


Automatic email with PO confirmation

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Automating non-standard processes can be challengingBecause traditional applications are often too inflexible to change

Out-of-the-box software is well-suited to manage standard processes

� Best practices provided by standard software such as SAP Business Suite

applications, e.g.

� Order processing

� Sell tangible goods from stock

� Procure to pay

� …

But what if you want to automate non-standard processes?

� To create innovative, differentiating, company-specific processes, e.g.

� Specific approval processes

� New product introduction

� Negotiate new purchasing contracts with suppliers

� Traditional applications are often too inflexible for fast-changing business processes

� Implementing new processes takes too much time and is too costly

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End to End process spans

manual and automated

activities

Standard Activities

Differencing Activities

Typically >80%

Processes that should be as cost

effective 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 Automated

Activities

Business Process Management covers both automated and manual perspective

Bu

sin

ess P

roce

ss M

od

elin

g in

SA

P E

M

NW

BP

MS

tan

dard

So

ftwa

re

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Business Process Excellence with SAP

Model to ExecutionBusiness to Model

SAP Enterprise Modeling

applications

SAP NetWeaver

Business Process

Management

SAP Enterprise Modeling applications by IDS Scheer complement the Business Process Management capabilities of SAP NetWeaver

Process Server

ProcessComposer

Process

Desk

ProcessDesk

SOA Design

Governance

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Conceptually describe the businessSupport implementation and gap analysis

Enterprise Modeling From Conceptual Planning to Technical Blueprints

SAP Enterprise Modeling Applications

by IDS Scheer

Business Architecture

Value Chain Diagram

Organizational Structures

Event-driven Process Chain

Transactions Services

Synchronization

Information Architecture

Enterprise Architecture

>> Consolidated view on application corefor planning and gap analysis <<

SAP Solution Manager Provide Enterprise SOA

content

Developing processes for execution

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Enabling SOA Service Discovery Engineering & Architecture


Annotations

of Business Models With Enterprise

Services or

other ES Repository

modeling objects

Enterprise Services Repository 7.1

Exclusive for A

RIS

� Seamless Integration of Business Process Architecture

based on ARIS ES Repository Integration

� Seamless Integration of Business Process Architecture

based on ARIS ES Repository Integration

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Benefits of SAP Enterprise Modeling – Enterprise Services Repository Integration

SAP Enterprise Modeling by IDS Scheer with Enterprise Services Repository

integration supports

�Process-driven requirements analysis

�Alignment of business process requirements and SOA

�Link of business blueprints to service realization

�Reuse of existing interfaces and services

�Modeling and sharing of multiple planning scenarios in SAP Enterprise Modeling before implementation

�Requirements analysis can define the need for new services

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Business Process Modeling Notation 2.0Improve Collaboration Between Business and IT

Business IT

Business-friendly process modeling perspective

(in SAP SAP Enterprise Modeling or NetWeaver BPM)

From modeling (no coding!) … to execution (no translation!)

Developer-friendlyimplementation perspective

(in SAP NetWeaver BPM)

Single ProcessModel

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Innovate New & Adapt Processes on Top of a Stable Core Building composite processes on top of the SAP Business Suite

Process Excellence

SAP NetWeaver

Non-SAPSOA-enabled

SAP Business Suite

Enhancement

Packages

Application Core Processes

� All SAP applications on SAP NetWeaver

� Non-SAP applications integrated with

SAP NetWeaver

Composite Business Processes

� Compose new business processes

� Extend core business processes

� Reuse service-enabled application core

processes (2,800+ ready-to-run services)

Process Innovation

*SAP NetWeaver Composition Environment is a model driven development environment for processes, views and business logic

SAP NW BPM

SAP NW BRM

Value Proposition

� Define a common business process layer

� BPM suite of choice for SAP customers

� Extend the reach of BPM technology to enable

completely new process scenarios

SAP EnterpriseModeling

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Sweet Spots for BPM Based on Beta Program and Design Partner Council customers

Composite Applications

Extended Processes

Business

Process Improvement

Use Case

Description

BetaReference

Build a new module

or process not available from SAP using CE, BPM and BRM

Extend ERP

approval process (e.g. procurement).

Use BRM to implement rules

(e.g. price calculation) in ERP

Implement BPM as

part of business process re-engineering. NW & ARIS deployed to

support BPM Lifecycle

PrimaryDriver ApplicationsPlatform Consulting

Detailed case studies in wiki


SAP Enterprise Business Process Management Life Cycle - Monitor

Monitor:SAP Process Performance Management by IDS Scheer

�Measure performance of existing processes

�Visualize, document and analyze the actual performed processes

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Continuous Improvement of Business Process Performance

�Transparent end-to-end processes

�Reveal cause & effect chains

�Recognize optimization potential

MonitorBusiness

Performance

AnalyzeBusiness

Performance

Analyze Structuresof Processes

and of Organization

EstablishContinuous

Improvement

Who

How

What

Determine patternsin processes and

organizational structures

Persistent, automated

monitoring of

performance indicators

Dimensional

Analysis of

Process measures

Why


SAP Enterprise Business Process Management Life Cycle - Optimize

Optimize:SAP Business Process Optimization by IDS Scheer

�Identify process weak points and bottlenecks

�Determine utilization of resources

�Analyze KPIs to enable sound

justification of suggested process improvements

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�Enhance SAP Enterprise Modeling for conceptual business process simulation

and optimization

�Dynamically analyze business processes

�Use simulated KPIs to evaluate a range of alternatives

�Determine optimal procedures

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SAP Enterprise Business Process Management Life Cycle

Analyze:


Identify process weak points and bottlenecks

Determine utilization of resources

Analyze KPIs to enable sound justification of suggested process improvements

Monitor:


Measure performance of existing processes

Visualize, document and analyze the actual performed processes

Run:

SAP NetWeaver BPM


Design:


Analyze and optimize existing processes

Design processes on a conceptual level

Achieve process governance and assignprocess ownership

Implement:


Accelerate Implementation via pre-prepared content

Increase visibility via full integration of all Business Process and Enterprise Architecture components and advanced reporting

Get There Faster.

Why SAP?SAP Offers a Holistic BPM Approach

Lower risk

� Standardized process notation fosters

tighter alignment between business & IT

� Vibrant ecosystem of partners and

community

Lower TCO

� Leverage best practices delivered by SAP

Business Suite results in faster time to

value

� Manage full process life cycle for

continous process improvement

Comprehensive Solution

� State of the art, standard based

composition tool (no coding, no

translation)

� Flexible and open technology foundation

to effectively extend core business processes

Proven Value

� Customers and partners are successfully

extending process automation of core

business processes for fast evolving needs

� Holistic BPM approach accelerates &

guides BPM adoption (methodology,

certification, technology)

Thank you!

Sarah White, Solution Engineer

SAP Quality and Risk Management

sap enterprise modeling applications (aris): the first ... the first step in... · sap enterprise...

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