intelligent business operations for utilities, powered by sap hana

©  2015 SAP AG or an SAP affiliate company. All rights reserved. 1

Intelligent Business Operations for Utilities, powered by SAP HANA International SAP Conference for Utilities 2015, Berlin. April, 2015

Dr. Harsh Jegadeesan Chief Product Owner Intelligent Business Operations SAP SE, Walldorf

@harshjegadeesan


Disclaimer

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


Agenda

1 Need for Intelligent Business Operations

2 Demo Meter-to-Cash Intelligence

3 Use-Cases 4 Next Steps


Shipment tracking

logistics

fraud management disease management

insurance

customer connect churn management

telecom

sortiment management replenishment

retail

loan disbursement

banking

The Emergence of Big Processes

Big processes are end-to-end processes

•  span across business departments, even business networks

•  technically span multiple business systems

•  generate large volumes of data at high velocity

•  supports digital transformation and determine business success.

…read more in this blog

Volume

Velocity

Variety

Value


The main hurdle: Process Quality & Flexibility How can you transform Enterprise IT into a competitive advantage?

Sales Operations Business Partner Finance

Are you able to visualize, measure and control your

end-to-end process?

Can you leverage Big Data to infuse

situational awareness into your

processes?

Can you quickly adapt your

processes to the evolving needs of your business? Are you able to

leverage business intelligence to

optimize decisions in real-

time?

“Over the past decade, enterprises worldwide have spent more than $1 trillion building and managing systems to automate core business processes, and close to $1 trillion outsourcing processes as well as building extensive value chains.”

IDC


IS-U ERP

CRM

The challenge of End-to-End Visibility Common issue at most of our customers

1 End-end-processes (like meter-to-case, procure-to-pay etc.) are usually made of several transactions in different (SAP and non-SAP) applications

2 Process owners and stakeholders in the LoB are missing an overall visibility and control.

3 Rip-and-replace with a packaged app is not always a viable solution: legacy investments, differentiating and custom processes, non-SAP systems etc.

Gartner’s definition of Intelligent Business Operations The next generation of business processes will have to move beyond cost savings and efficiency, and become more adjustable to changing market and customer dynamics. Tomorrow's business operations will integrate real-time intelligence. This will require a new approach using IBO — a style of work in which real-time analytic and decision management technologies are integrated into the transaction-executing and book-keeping operational activities that run a business.

ww

w.gartner.com

/newsroom

/id/1943514 New Process Formula: BAM & BPM + Real Time Intelligence Intelligent Business Operations


Powered by SAP HANA A completely re-imagined, modern platform for real-time business

SAP Operational Process Intelligence providing real-time process visibility, intelligent insights and appropriate actions for Big Processes, thus creating operational transparency and enabling better real-time decision making for line-of-business users

SAP Operational Process Intelligence

SAP BPM for process management, SAP BRM for managing operational decisions and business rules & SAP Process Integration for A2A and B2B integration BPMN-based, high-volume scenarios, linear scalability, EAI pattern-based modeling, HTML5-based business user experience

SAP Process orchestration

SAP Power Designer is a industry-leading modeling tool for business architecture, data modeling and process modeling all-in-one. Power Designer improves collaboration between business & IT for as-is and to-be modeling and streamline implementation.

SAP Power Designer

SAP Event Stream Processor is a complex event processing engine which enables continuous querying on streaming big data. Event Stream Processor helps to detect complex patterns from large volumes of machine data and act on those patterns.

SAP Event Stream Processor

SAP Intelligent Business Operations, powered by HANA enable digital business transformation

Work Orders for Meter Change

In case of home move or other “meter change” work orders, process spans both OT and IT.

How do you visualize and control the whole end-to-end process?

Customer Bank Account Change

Orchestrate customer facing processes

Integrate underlying systems to improve process velocity

Automate operational decisions like regulatory compliance and SLAs

What does this mean to your business? Some examples of what IBO can enable for Utilities

Legal Compliance of Processes

Frequent changes in legal regulation require utilities to be able to provide exact documentation and BPMN models of end-to-end processes, and to flexibly and quickly deliver required changes.

Process Intelligence/Optimization

Process Documentation and Flexibility

Business Process Automation


Demo: efficient meter-to-cash process

11 ©  2014 SAP AG or an SAP affiliate company. All rights reserved.

Meter reading request received from supplier 1


Distributor collects meter readings Distributor uploads meter readings to supplier system

2


Generate bills for meter readings and validates bills 3


Invoice Document created; validate invoice 4


Invoice printing; deliver invoices to customers 5


Customer make the payment for invoices 6


Owen Taylor Shared Services Opera.ons Manager

Ensure efficient meter-to-cash operations, ensure superior customer experience and maximize cash from operations

Meet SLAs and manage performance of suppliers 3

2

A major utility company providing gas, electricity to its customers

1 Lack of end-to-end visibility into the overall process, weak spots and bottlenecks

Long cycle times between consumption, billing and invoice leading to revenue leakages


Frank Solution Expert

“I want to iteratively build Business Scenarios to empower line-of-business users and Operational Managers”


what are the ingredients of a Business Scenario?

What is a Business Scenario? 1. business scenario is the modeling artifact created by a solution/process expert in a design-time environment 2. business scenario captures the end-to-end big process , the value stream, process metrics, KPIs, actions and business situations

end-to-end big process is discovered from SAP and non-SAP

systems and represents the actual execution view of the process

process metrics and KPIs

phases and milestones capture the value-stream as business

users understand the process in a simple linear model

goal

business situations

actions tasks & checklists

status classification

cycle time, duration measures and KPIs, notifications on risky or violated KPIs

the goal defines the business outcome

business situations are threats or opportunities in operations

drill-down to backend systems to take appropriate actions

collaborative problem solving with tasks and checklists

process status determination to cluster and act In

gred

ient

s of

a B

usin

ess

Sce

nario


3 simple steps to create a Business Scenario a model-driven approach for iterative development

generate business scenario

discover end-to-end big process 1 configure

business scenario 2 3

process fragments can be of many varieties – structured, semi-structured, unstructured

process façade provides abstraction across process platforms

define correlation conditions

configure goals, phases and milestones

define process metrics and KPIs

define actions, checklists and business situations

check and activate

generate business scenario


What is a Business Scenario?

What is a Business Scenario? business scenario captures the end-to-end big process , the value stream, process metrics, KPIs, actions and business situations

end-to-end big process is running across SAP and non-SAP systems and represents the actual

execution view of the process

process metrics and KPIs

phases and milestones capture the value-stream as business

users understand the process in a simple linear model

goal

business situations

actions tasks & checklists

status classification

cycle time, duration measures and KPIs, notifications on risky or violated KPIs

the goal defines the business outcome

business situations are threats or opportunities in operations

drill-down to backend systems to take appropriate actions

collaborative problem solving with tasks and checklists

process status determination to cluster and act In

gred

ient

s of

a B

usin

ess

Sce

nario


High-Level Architecture

SAP

Java

Ser

ver

SAP

HAN

A SAP Process Orchestration

A2A & B2BIntegration

OrchestrationProcesses

Accelerators

Tasks Rules Processes Phases & Milestones Goals Business

Situations


End-to-End Processes

Insight-to-Action

Measures & Indicators

HANA Process Foundation

Rules Tasks Workflow

SAP Transactional Data 3rd Party Data

Virtual Data Model

Machine Data with SAP ESP

SAP

Pow

erDe

signe

r

Busi

ness

Pro

cess

M

odel

ing

Ente

rpris

e Ar

chite

ctur

eDa

ta M

odel

ing

space.me

Decide §  Trigger mitigation

notification

Orient §  Identify Customers

whose consumption increased more than regional average

Act §  Inform customer of

consumption and propose meeting consulting for home efficiency

Use-Cases: Increase Network Efficiency and Upsell Home Efficiency Services

Observe

§  Transactions and Events from Business Apps (SAP and none-SAP)

§  Weather Information

§  Customer Payment History

§  Consumption info from Smart Meter

How can I decrease peak energy consumption in extreme weather?

E.g. When consumption increase is much higher than regional average - compared to normal weather, send sms/email to inform customer in real-time and propose home-efficiency consulting service

Decide §  Trigger mitigation

work orders

Orient §  Using business rules

identify outage locations

Act §  Manage outage and

restore services

Use-Cases: Outage Management

Observe

§  Events from call centers and IVR systems

§  Events from smart meters

§  SCADA events from the grid

How can I detect outages and reduce outage durations?

Use-Cases: Pre-empt “Bill-Shocks”

Observe

§  Transactions and Events from Business Apps (SAP and none-SAP)

§  Consumption info from Smart Meter

§  Customer Payment History

How can I decrease revenue loss from risky customers that are inconsistent in paying their bills?

Orient

§  Identify risky customers and correlate their data

§  Monitor current consumption and related bill

Decide

§  Predict possible revenue loss

§  Trigger mitigation notification

Act

§  Inform customer of his current forecast bill to help him control consumption

E.g. Send email/SMS to customer with bill forecast of current consumption, with tips and advice on how to reduce home energy consumption, based on individual profile.


Gain end-to-end transparency across procurement operations

Intelligent Business Operations in Procurement Global Procurement Operations

Sense and respond to critical business situations – just-in-time material availability for manufacturing operations

Improve material availability and optimize inventory costs


Track progress of customer complaints in real-time

Intelligent Business Operations in Customer Support Managing Omni-Channel Customer Complaints

Collaboratively solve customer complaints in the right-time to improve customer satisfaction

Improve problem resolution times

Enable customers to engage with you through multiple channels


Oil and Gas: Managing Upstream Incidents in Wells

Drilling Operations in Wells can be interrupted due to unforeseen (e.g. broken drill-bits) and can lead to non-productive time. NPT can lead to losses in millions of dollars.

Sensors in the wells detect such situations and trigger mitigation

workflows

Workflows order spare parts and send work

orders to the engineering crew

Incident-to-resolution can be tracked in Operational

Process Intelligence SAP Event Stream

Processor

SAP Process orchestration


Sense Act Track

Infuse intelligence into operational processes

Orchestrate and Integrate end-to-end processes

Document and share end-to-end processes and achieve IT-Business alignment

Learn More SAP Intelligent Business Operations, powered by HANA

Subscribe to our YouTube playlist

Join our JAM site

Visit our SCN page

Read our whitepaper


Apply Design Thinking for identifying Business Scenarios

Phases!

Activities! 1. Identify Business "Scenario 2. Define Business "Scenario Canvas

1. Observe the process "flow 2. Interview People in "the process 3. Interview IT to "understand technical "landscape/"implementation

1. Create Process Map 2. Define Personas

3. Capture goals, KPIs, actions, business "situations 4. Define IT architecture

1. Design click-through prototype of business scenario

1. Validate prototype with business "users 2. Pilot project (optional)

1. Define project plan 2. Conduct realization workshop with IT to define data acquisition, interfaces etc.

Output! Business Scenario "Canvas

Process Map Personas

Business Scenario specification IT Landscape (optional)

Business Scenario"Click-through "Prototype

Live"Implementation

Sign-off Interviews"Photos/"Videos

See more here:

http://tinyurl.com/sap-ibo-design-thinking

Contact for help!


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