bpm for agile development & minimizing sap customization
Post on 15-Apr-2017
128 Views
Preview:
TRANSCRIPT
Agile Development & Minimize SAP customization using BPM
Logan Vadivelu WW Smarter Process Technical Leader Distinguished Chief IT Architect (The Open Group)
Oct 2014
© 2012 IBM Corporation 2
Agenda
• What makes a Business Application ?
• Challenges with ERP
• Example HR Processes enabled by BPM
• IBM BPM enables Rapid development of Business Applications – Developing business logic (process, rules, activity / business function) – Developing User Interface (UI) – Developing Analytic Reports / Dashboard
• Customer Successes
• How can IBM Help you
© 2012 IBM Corporation 3
Agenda
• What makes a Business Application ?
• Challenges with ERP
• Example HR Processes enabled by BPM
• IBM BPM enables Rapid development of Business Applications – Developing business logic (process, rules, activity / business function) – Developing User Interface (UI) – Developing Analytic Reports / Dashboard
• Customer Successes
• How can IBM Help you
© 2012 IBM Corporation 4
Three key elements of a Business Application
• A business application typically has 3 key elements 1. Business logic (process, rules/
decisions and business functions)
2. User Interaction & Collaboration 3. Business Data & Reporting
• Packaged software applications – combines the above 3 rather
‘rigidly’ resulting in complexity and inflexibility
• BPM software platform enables – ‘separation’ and ‘loose coupling’
of the above 3 solution elements – for improved flexibility, agility and
rapid development / modification
Executive / Manager
Customer Sales & Service
Accounting / Purchasing
Contract / Legal
Business Logic (Process & Decision)
Users Interaction & Collaboration
Data & Reporting (Structured & Unstructured)
PROCESS RULES
© 2012 IBM Corporation 5
Technical Strategy for Business Applications Development
• Common wisdom has been to purchase “Packaged application software” for implementing business applications – They typically have limitations in supporting key business requirements and
lack agility and flexibility
• BPM technology use for business applications enables ‘rapid development’ and deliver much higher value than packaged apps
Ref: Seven reasons to build business applications on BPM technology, Neil Ward-Dutton September 2011
• supports iterative, collaborative change
• speeds up user acceptance
• better manages customizations
• supports continuous improvement to support business and users needs
• supports transition to a software-as-a-service (SaaS) delivery model
© 2012 IBM Corporation 6
Agenda
• What makes a Business Application ?
• Challenges with ERP
• Example HR Processes enabled by BPM
• IBM BPM enables Rapid development of Business Applications – Developing business logic (process, rules, activity / business function) – Developing User Interface (UI) – Developing Analytic Reports / Dashboard
• Customer Successes
• How can IBM Help you
© 2012 IBM Corporation 7
Executive Management Customer
Service
Invoice Reconciliation
Team
Finance and Ops Account
Administration
Process Flow
Rules / Events
Analytics Social / Collab
Docs
Mobile
Business Operates Differently in ERP Vs BPM Environments
Executive Management
Customer Service
Risk Management Teams
Finance and Ops
Account Administration
1
2
3
4
5
6
Manual Coordination Dependency on Knowledge Users Hard to manage, change, improve
Consistent business response by experts & novice Collaboration, Visibility, flexibility Continuous Improvement, less impact to business
Process-driven Transactions Management Human-driven Transaction Flow Management
© 2012 IBM Corporation 8
Business Performance Optimization Gaps in SAP Environment
Flexibility
Visibility
Agility
Control
Operational Managers & Users struggles to find status or bottlenecks for responding to Customers, Suppliers, and regulators
Configuration approach limits flexibility. Business works “In and Out” of SAP to support business operations inside the enterprise and along the value-chain
High customization leads to “slow IT response to business changes” Depends on ‘flow charts’ & users training for implementing process changes
Limited process & business control compliance. Lack of operational cost control capability. Hard to manage workload or onboard new workers
© 2012 IBM Corporation 9
Where ERPs / Packaged Apps fit within Business Process Hierarchy Understanding BPH is critical to effectively manage business processes
Process Hierarchy is a way of modeling large and complex processes through decomposition into lower level processes and detailed steps to show information at different granular levels.
Incr
easi
ng P
roce
ss
Gra
nula
rity
(American Productivity and Quality Center)
Process Levels - APQC Process Classification Framework (PCF)
L1
L2 - Group
L3 - Process
L4 - Activity
L5 – SAP Transactions
Category Vision / Strategy
Operation
Process
BPR / Blueprinting
Modules Configuration
© 2012 IBM Corporation 10
An Example of Process Levels in BPH – Order to Cash BPM enables Level – 3 process modeling, orchestration of Level-4s and provide visibility
Capture Order Deliver Order Receive Payment
BPH Level 1 BPR, Blueprinting (ARIS, Visio, IBM BWL)
Web Order B2B Order Other Channel Level 2
BPR, Blueprinting, Process Modeling (ARIS, Visio, IBM BWL KPIs, SLAs, Rules, etc)
Level 4 BPM & ERP (Human & System Task, Rules, Integration, ERP Configuration, Customization, etc)
Check & Apply Promotion, xSell / upSell
Select Delivery Option, upSell Express delivery
Select Stock Availability & Determine Warehouse
Select Payment Option, Do Credit Check
Create Order in SAP
Approve ?
Y
N Display Message
Level 3 BPR, Blueprinting, Process Modeling, BPM) (BPMN Modeling in IBM Process Designer BPEL in IBM Integration Designer Human & System Task, Rules, KPIs, SLAs, etc)
Validate Info
Level 5 Order gets Blocked, Priority Changed, Shortage of Stock, Delivery Date Changed, etc Business
Exceptions / Events
Play in Slideshow Mode
© 2012 IBM Corporation 11
Business logic is represented as ‘process, activity, rules and functions’ Process modeling enables easier understanding, business visibility and manageability
Level 4 Process Step
Verify Customer & Product Info
Credit Limit Exceeded ?
Yes
No Create Delivery
Manager Approval
Credit Approved ?
Yes
No
Pick & Pack Goods
Post Goods Issue
Enter Order Data
Auto Release Block ?
Yes Release Credit Block
Review Credit
Increase
No Hold Order
Invoice Customer
Post Payment
Business Process - - Order-to-Cash
Accounting Process - - Accounts Receivable (Credit Memo)
Authorize Returns
Submit Returns Request
Exchange or
Return
Return
Exchange
Create Returns with Free of Charge Subsequent
Delivery
Create Returns Delivery
Post Goods Receipt for the Return
Create Credit Memo
Require Approval ?
Yes
Issue Credit Memo
Obtain Approval
No
Post Goods Issue for the
Delivery
Obtain Customer
Confirmation
Level 4 Process Step
Activity
Rule / Decision
Activity is implemented as business function
© 2012 IBM Corporation 12
BPM Process Hierarchy for SAP BPM Adds Value Above and Below the SAP Core Transactions
L1
L2 - Group
L3 - Process
L4 - Activity
L5 – SAP Transactions
Process Levels - APQC Process Classification Framework (Source: APQC – American Productivity and Quality Center)
BPM
SAP
L6 – Sub-Transaction and Exception Management
BPM + SAP
Category
Record Keeping (SoR)
Data Integrity
Transaction Reporting
Data Reusability Productivity
(System of Record)
Flexibility
Visibility
Simplicity
Optimization Automation
Mobile / Social
Agility
Consistency
Reusability Compliance SLA / KPI
Collaboration
(System of Engagement – ‘process’, ‘mobile’ ‘social’)
Play in Slideshow Mode
© 2013 IBM Corporation 13
IBM BPM enables Iterative, Agile application development
Use ‘live’ process execution to design and validate business application with users and deploy into production server
Model Processes
Playback Process
Design UI Screens
Monitor Results
Simulate and Refine
Deploy!
Design, build and refine processes for execution in a single integrated tool set. Optionally store process definitions in SAP Solution Manager Repository.
Iteratively invoke or design screens as part of the process definition exercise
Playback modeled processes at any time to directly see, feel and touch the real process
Empirically understand how the process can meet KPIs and SLAs
Simulate changes without changing the current model. Incorporate new process changes
Promote the new or changed process into production
© 2013 IBM Corporation 14
IBM Business Process Manager V8.5.5
Process Design / Optimizer
Integration Design
Process Center
Portal
Mobile App
Process Server Core BPM Advanced Automation & Ad Hoc
BPMN Case Adaptors Process Rules Performance Data Warehouse
BPEL
Social Collaboration
Coaches Dashboards
Network Multiple Process Centers
Server Registry Shared Assets
Versioned Assets
WAS ND 8.5
Mobile Toolkit
Case Design
Embedded CMIS Repository
© 2012 IBM Corporation 15
Agenda
• What makes a Business Application ?
• Challenges with ERP
• Example HR Processes enabled by BPM
• IBM BPM enables Rapid development of Business Applications – Developing business logic (process, rules, activity / business function) – Developing User Interface (UI) – Developing Analytic Reports / Dashboard
• Customer Successes
• How can IBM Help you
© 2012 IBM Corporation 16
An illustrative Hiring Process – Capability to Process Model
Create Position
Describe duties
Research salaries
Salary approval
Post internal
Post external
Engage firm
Evaluate
Screen candidates
Setup face-to-face
Conduct interview
Make Offer
Extend offer
Negotiate terms
Source: IBM Blueworks Live
© 2012 IBM Corporation 17
An Example of Expense Reimbursement Process
© 2012 IBM Corporation 18
HR On-boarding in a Heterogeneous IT Environment
• On-boarding touches on core HR of course but also
– Finance (payment of recruitment commission to externals) ,
– Legal (contract validation) ,
– Recruitment (if there is an internal department),
– Procurement ( dealing with external recruiters etc) and
– Internal systems like staff directories,
– Internal education schedules (eg e-learning systems, like Saba)
© 2012 IBM Corporation 19
Illustrative Hiring On-boarding – Capability model
Select Candidate
Inform Recruiter
Establish Compensation
Package
Establish Start Date
Background Check
Criminal Record Check
Drug Screen
Review Results
Offer
Create Offer Letter
Transmit Offer Letter
Accept Offer
Add Candidate To HR Records
Input Employee Information into
Database
Request Equipment
Request Workspace
Request Access Badge
Set Employee Status To Active
Orientation
New Hire Orientation Class
Benefits Overview Class
Provide Orientation CD
Watch Orientation CD
Complete Forms
Begin Work
Meet Manager
Obtain Access Badge
Obtain Equipment
Go To Workspace
© 2012 IBM Corporation 20
Illustrative Hiring On-boarding – Capability to Process model
© 2012 IBM Corporation 21
HR Hiring Process
© 2012 IBM Corporation 22
Agenda
• What makes a Business Application ?
• Challenges with ERP
• Example HR Processes enabled by BPM
• IBM BPM enables Rapid development of Business Applications – Developing business logic (process, rules, activity / business function) – Developing User Interface (UI) – Developing Analytic Reports / Dashboard
• Customer Successes
• How can IBM Help you
© 2012 IBM Corporation 23
1) Developing business logic (process, rules)
• Single Interface that enable business process authors and analysts to – Model and implement
– Simulate
– Inspect and debug
– Examine process performance
– Automatically optimize
© 2012 IBM Corporation 24
Authoring business rules to implement Decisions
© 2012 IBM Corporation 25
2) Developing User Interface (for Collaboration and Interaction)
Tasks grouped by: Overdue; At Risk; Due Today; Due Tomorrow; Due This Week; Due Later
BPDs I am authorized to start
Completed tasks
Full-text, internet style search search
Business Space
Click to Claim
Priority Indicator
Start Process Instance
© 2012 IBM Corporation 26
Speed time to create new coaches with new stock controls, updated default human services, and coach data validation services
Default human service and Coach for User Task activities
5 new “stock” coach views
BPM enables Rapid Application Development (UI)
Design-time modeling of coach data validation through a service
Runtime display of input errors
© 2013 IBM Corporation 27
3) Developing Analytics Reports and Dashboard for Visibility
• Accessible to users (Managers) that belong to tw_managers group and are managers of the teams
• Shows quick overview of a team status (At Risk / Overdue / On Track) • Has a link to explore deeper the team performance • Replaces pre v8.5 My Team Performance dashboards
Link to detailed team peformce page
© 2013 IBM Corporation 28
Visibility in Run-time and Design-time (simulation)
© 2012 IBM Corporation 29
IBM Mobile App for iOS - Workflow Tasks & Process Launch
Add Attachments
Stream
© 2012 IBM Corporation 30
IBM Mobile App - Complete Approval Requests Anywhere & Anytime
Task List and Task Completion
© 2012 IBM Corporation 31
Customer Successes with IBM BPM
Auto Component Manufacturer Automates Integration Process Between Engineering and Manufacturing (SAP)
Aircraft Company • Reduces supplier collaboration issues caused by lack of visibility into engineering changes. • Cost savings for the company of over $9.5 Million over three years
Toy Company • Manages Supply chain processes. • Reduced cycle times by 80 percent, from 12 days to only two • Increased productivity by 250 percent
Pharma Company Manages core manufacturing and supplier collaboration processes
Airline manages MRO processes • End-to-end business flow, from ordering maintenance work through completion, including procurement, MM • Faster and more accurate reporting and analysis • Improves decision making and enhances staff productivity
Electronics Company Manages order fulfillment, pricing, global logistics, and customer resource management business processes
Automation Technology Company • BPM as strategic sales and marketing platform to manage processes across SAP and BAAN systems • Speeds up the process times significant across time zones in 15 countries (more to be added in future releases)
Electrical Utility Company • BPM for alarm analyses to spot and speed asset service and maintenance •15% more Work Orders, 15% crew productivity increase, 7% staff productivity gain
© 2012 IBM Corporation 32
Customer Successes with IBM BPM for HR Processes University Hospitals accelerates recruitment Many of our core HR processes were still very manual and paperwork-driven, or relied on various spreadsheets and small databases that weren’t integrated with each Other. The process was taking an average of 18 weeks, and in some cases up to 26 weeks.
Major grocer upgrades HR processes With over 32,000 employees, Recruiting, hiring, and empowering great people is top priority for this company. Keeping up with HR events and ensuring process completion is a huge task—particularly since this organization is the fastest growing grocer in North America. The first HR processes were deployed to 500 users in 90 days. The initial deployment yielded significant benefits—with reductions of up to 90 percent of the time spent managing the process while accelerating the completion of requests by over 400 percent. Today, there are 14 different processes deployed—supporting a complete range of areas from pay changes to 401K and other employee benefits.
An Airline in the Middle East • Implement an integrated human-capital management system for managing and orchestrating all mission-critical HR business processes. • Automated orchestration of 28 dynamic HR approval processes, such as leave requests, excess-overtime approvals and salary increases
Paint Manufacturer in Asia • Implemented BPM for the management of its sales staff, human resources (HR) processes.
A Govt Agency • Design to streamline and standardize the process for receiving, sorting and choosing new hire applications.
A Super Market in Europe Improved HR management by removing the complexity in vacation requests. Employees submit through a portal to HR. The system automatically updates employees' calendars to reflect vacation dates and adjusts the payroll. Managers have visibility to better organize resources.
© 2012 IBM Corporation 33
Agenda
• What makes a Business Application ?
• Challenges with ERP
• Example HR Processes enabled by BPM
• IBM BPM enables Rapid development of Business Applications – Developing business logic (process, rules, activity / business function) – Developing User Interface (UI) – Developing Analytic Reports / Dashboard
• Customer Successes
• How can IBM Help you
© 2012 IBM Corporation 34
The SAP Process Opportunity Workshop
A collaborative workshop between the IBM and you to: • Determine which areas of business pain and/or opportunity are good fits for BPM for SAP • Select candidate process sets with high affinity to IBM BPM for SAP • Identify and prioritize potential pilot projects • Select and scope a pilot project (90-120 days)
• What does the IBM team do? • Clarify the pilot project scope • Characterize the expected business impact and benefits • Assess the high-level implementation effort and solution development • Identify and rank additional projects beyond the pilot project
How does it work? • Delivered onsite through collaborative discovery sessions with process owners and key
business and technology stakeholders • Pre-workshop preparation calls provide orientation on the workshop approach and
potential process improvement opportunities as well as set the workshop agenda • Preparatory time is also spent gathering and reviewing existing customer process
documentation
Typically 2-3 days, conducted free of charge
© 2012 IBM Corporation 35
Questions
+ = Enables Innovative Business Model
top related