sap enterprise modeling applications (aris)
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SAP Enterprise Modeling Applications (ARIS): The first step in your BPM strategy for SAP
•Sarah White, SAP Quality and Risk Management
•Solution Engineer
Get There Faster.
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:
SAP Enterprise Modeling by IDS Scheer
�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 Process Performance Management by IDS Scheer
SAP Process Performance Management 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
Get There Faster.29 June 2010 | ProcessWorld 2010 | 15
SAP Enterprise Business Process Management Life Cycle - Implementation
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
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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
Get There Faster.29 June 2010 | ProcessWorld 2010 | 24
SAP Enterprise Business Process Management Life Cycle - Run
Run:
SAP NetWeaver BPM
SAP Enterprise Modeling Integration with SAP ESR
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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
Level 3Level 3Level 3Level 3Level 3Level 3Level 3Level 3
Level 4Level 4Level 4Level 4Level 4Level 4Level 4Level 4
Inventorymanagement
Goodsreceipt
Send shipping
notification
Supplymanagement
Transactions/Enterprise ServicesTransactions/Enterprise Services
Level 5Level 5Level 5Level 5Level 5Level 5Level 5Level 5
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
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ss M
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NW
BP
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So
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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
SAP Enterprise Modeling by IDS Scheer
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
Get There Faster.29 June 2010 | ProcessWorld 2010 | 35
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
Get There Faster.29 June 2010 | ProcessWorld 2010 | 37
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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SAP Business Process Optimization by IDS Scheer
�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:
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.
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