sap curriculum congress 2010

Business Process Management and SustainabilityThe Next Generation for Business Process Excellence

Ann Rosenberg,SAP Global Business Process Management Lead SAP Field ServicesExternal Lecturer IT University of Copenhagen

SAP Curriculum Congress 2010

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SAP UA BPM Curriculum

Global SAP University Alliance BPM Curriculum development



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BPM and Sustainability

Business Process ManagementThe Strategic FrameworkThe Sustainability Process MapThe Integration and technology enablementSustainability Performance ManagementSAP as Exemplar




BPM and Sustainability

Business Process Management



Business Process Management – The SAP RoadmapReal-World BPM in an SAP Environment

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Why BPM



Linking Strategy to Operations: Process Modelsand Innovation

D.P. Norton and Randall H. Russel “Linking Strategy to Operations: Process Models and Innovation” Publicationdate: Jul 15, 2009, Hardvard Business Review

Three to five strategic themes:

Operational ExcellenceCustomer RelationshipGrowth Through Innovation...



D.P. Norton and Randall H. Russel “Linking Strategy to Operations: Process Models andInnovation” Publication date: Jul 15, 2009, Hardvard Business Review

Linking Strategy to Operations: Process Modelsand Innovation



How BPM can drive alignment !!!

Upgrade toBusiness Suite

BPM Technology(SOA...)

ApplicationManagement

(Solman)

Six Sigma/ LeanProcess

ImprovementProjects

IT Projects (SAPand Non SAP)



The Evolution of Process Management

IndustrialEngineering

ToyotaProduction

System

Total QualityManagement

BusinessProcess

Re-engineering LeanManufacturing

Six-sigma

BusinessProcess

Management

The Evolution of Process Management (Adapted from the book: Business Process Management – The SAP Roadmap, 2009)



Business Process Management is a ManagementDiscipline

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 processesSource: Gartner Business Process Management Summit 2007



Business Process Management covers bothautomated and manual perspective

End to End process spansmanual and automated

activities

Standard Activities

Differencing Activities

Typically >80%

Processes that should be as costeffective as possible

Typically <20%Processes that deliver competitive

advantage and evolve regularly

Automated Activities

Manual Activities

Typically <20%

Typically >80%

Of the 20% of AutomatedActivities

Bus

ines

s Pr

oces

s M

odel

ing

in

Com

posing



The Evolution of Architecture

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

Architecture Maturity Have Change To BusinessModularity



SAP Technology portfolio missionEnabling Best Practices, Own Practices, And Best Insight

SAP Technology Portfolio

Foundation & Application Lifecycle Management

(SAP NetWeaver + SAP BusinessObjects)

Business ProcessComposition

BusinessIntelligence

EnterpriseInformationManagement

ProcessIntegration

ENABLEOWN PRACTICES

Technology to extend & integrateBest Practice Processes

SAP NetWeaver CE incl. BPM/BRMSAP NetWeaver PI…

ENABLEBEST PRACTICES

Technology to run and accessbest practice processes

SAP NetWeaver 7.0, incl. EHPsSAP Solution ManagerSAP NetWeaver IdentityManagementSAP NetWeaver Portal…

PROVIDEBEST INSIGHT

Technology to Analyze, Explore andPredict Business

SAP BusinessObjects EnterpriseSAP BusinessObjects Data ServicesSAP NetWeaver MDMSAP NetWeaver BW / BWA…



(Ross, Standardized Technology and Optimized Core) (Ross, Business Modularity)

Source: Case study ”Arla Foods IT history” (Adapted from the book: Business Process Management – The SAP Roadmap, 2009)

Case study “Arla Foods IT history” and the direction outlined inthe strategic IT plan for 2007-2012.”



Case study “Arla Foods IT history” and the direction outlined inthe strategic IT plan for 2007-2012.”

EnterpriseArchitecture

BPM

SOA

ServiceOriented

(Ross, Business Modularity)

Source: Case study ”Arla Foods IT history” (Adapted from the book: Business Process Management – The SAP Roadmap, 2009)



The process maturity journey which is needed to executeBusiness Modularity

• 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

(Ross, Standardized Technologyand Optimized Core)

(Ross, Business Modularity)



From 2nd Generation to 3rd Generation

Time

2ndGeneration

3rdGeneration

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 2010. All rights reserved. /


RoadmapComposer, Solution Manager, BPMTechnology (Business to Model andModeling to execution (SOA/ Composing))

ASAP Core and ASAP Business add-ons

Mindset

Business Models, End-to-end Processes, Business add-ons,Classification frameworks…

TRAINING

BUSINESS MODELDESIGN/ BUSINESS

PROCESS DESIGN

METHODOLOGY

TOOLS

SKILLS & RESOURCES

BPM Trends, BPX Community (SDN)….COMMUNITY

New anatomy for implementing a standardsoftware solution based on the Business Suite

Trained, certified and experiencedBPX Associate and Professional



ProcessLifecycle

• BPM Method• BPM Technology• Process Owner

ApplicationLifecycle

• Impl. Method• Apllication

Managementsystem

• IT/CIO

ProjectLifecycle

• PMI/ Prince 2• PM Tools• Project Manager

ValueLifecycle

• ValueManagement

• Value Tools• Business Unit

Owner

ToBeDesign

Process Owner CIO Project Manager Business Unit Owner

BPM Methodology – The new ASAPMethodology support the 4 lifecycle




SustainabilityThe Strategic Framework



Why Sustainability



Business Value at stake



Sustainability Management FrameworkA new Strategic Framework is needed



Sustainability Process Maturity ModelAssessment and target



Sustainability Vision & Strategy process development



Sustainability Process Management Life-cycle



Sustainability Process Performance Measurements



Sustainability Improves all Levers Used to CreateValue

Value CreationLevers

Impact of SustainabilityEfforts

TotalShareholder

Return

Profits

Free CashFlow

ValuationMultiple

Risk Premiums

New MarketEntry

RevenueGrowth

MarginImprovement

Market Share

EmployeeRecruitment and

Engagement

Cost Savings

Pricing Power Brand value, pricing power

Greater operational efficienciesResource efficiencySupply chain optimization

Employ best talentEmployee productivity

Customer loyalty: less churnCompetitivenessMore revenue sources

Lower operational risksLower cost of capitalGreater access to capital and insurance



Sustainability Governance Management



Sustainability is becoming a common vendorevaluation criteria for many



Such as the Walmart supplier sustainabilityassessment




SustainabilityThe Sustainability Process MapThe Integration and technologyenablement



Obstacles on the Road to SustainabilityManual Processes and Fragmented Systems

Sustainability Initiatives

REACH/ROHS

ProductSafety

SustainableProducts

SustainabilityReporting EHS Energy Carbon Supply

Chain

U.S.

Germany

Japan

U.K.

France

China

Canada

India

Procure-ment Finance

AssetMgmt Planning PLM ERP SCM Production

ShopFloor

SustainabilityTeam

Operations

EHS

Logistics

Manufacturing

HR

IT

Procurement

Finance

Facilities

CorpGovernance

No view of interdependent businessprocesses or shared information:

Increased risks

Limited awareness to act quickly

Missed handoff points

Data errors



The Sustainability Process Map

ProductCompliance

RecyclingCompliance

ProductFootprint

Material & ProductSafety

SustainableDesign

Sourcing &Procurement

Traceability& Recall

GreenLogistics

Supply ChainDesign & Planning

Availability, Security, Accessibility & PrivacyGreen IT

Commuting ResidentialEnergy

PersonalFootprint

Smart GridParticipation

Production EnergyManagement

CarbonManagement

Facility EnergyManagement

Natural ResourceManagement

Benchmarking &Analytics

StrategyManagement

Financial Risk &Performance

Corp. Citizenship &Engagement

Materiality &Assured Reporting

Labor Compliance& Human Rights

Strategic WorkforceManagementTravel Management Diversity

Industrial Health& Safety

EnvironmentalCompliance

Risk Assessment &ReductionProcess Safety Emergency

Management

Product

SupplyChain

IT

Consumers

Operations

ExecutiveManagement

Environment,Health & Safety

HumanResources

SustainabilityStrategy

Operational RiskManagement

ResourceProductivity

SustainableWorkforce

SustainableConsumption

Value Drivers



Sustainability Needs Integration

Close the loop betweenstrategy and executionSAP sustainability apps are pre-integrated with SAP Business Suite.

Analyze, optimize and co-innovate your value chainSAP Business Suite is fully SOAenabled.

Holistically managesustainabilityAlways understand the financialimpact of your activities.



Integration Architecture

Instant value to people everywhereInstant value to people everywhere

High value extensions via networked applicationsHigh value extensions via networked applications

EnergyMgmtSPM

Continuous innovation of the SAP Business SuiteContinuous innovation of the SAP Business Suite

SustainableSourcing &

Procurement

Green Logistics/Supply Chain

Planning

Operational RiskOperational RiskMgt/ EHSM

FinancialEmission

Accounting

Orc

hest

ratio

n

CarbonMgmt

GlobalBatch Mgt.

EnvironmentalCompliance

ReachCompliance

Sustainability Reporting other




SustainabilitySustainability Performance

Management



Managing Sustainability Performance –Is It Really Voluntary?

NGOs and Governments80% of Global Fortune 250 disclose their

sustainability performance

Investors

CustomersSustainability as a commonvendor evaluation criteria

ManagementSustainable business practicesto improve operating margins

$5 trillion insocially responsibleinvestment fundsSRI 2007 Study



Added Value – Key Business InformationProvided from Other SAP Solutions

SustainabilityPerformance Management

Mgt frameworksRisk Management

Strategy ManagementProcess Control

EPM and GRC Solutions

Operational informationSAP EHS Management

SAP Carbon Impact

Sustainability Solutions

Critical business dataOrganizations

Materials

SAP Business Suite




SustainabilityDemo



Execute StrategyPerformance analytics to drive business improvement

Set strategic goals, objectivestied to KPIs

Monitoring against targets andbenchmarks

Performance reporting

Root cause analysis

Dashboards and Scorecards

Align performance results tofinancial, manufacturing, HR,and other operational areas

Capability #1



Performance AnalyticsUser-defined and shareable reports, dashboards, scorecards,and briefing books

Capability #1



Execute to the Company Sustainability Strategy —Leveraging the Balanced Scorecard

Capability #1



Drill Down to More Detail with Reports andDashboards

Capability #1



Reduce RiskDisclosures-based on reliable information

Central KPI library

Pre-delivered content based onGRI framework

Calculation of sustainabilitymetrics

Data consolidation andadjustments

Approvals

Time stamping data and roll-back

Searchable audit trail

Collect Review Approve Disclose

Capability #2



Central KPI LibraryWith GRI and customer specific content

Searchable, filterable, andreusable library

Capability #2



Central KPI LibraryEnables easy creation of sustainability KPIs

KPI library isreusable

Sub-KPIs can go several tiers deep

Easy to use guided procedure

Capability #2



Includes Intuitive, Drag and Drop-StyleFormula Builder

Capability #2



Time-dependent organizations

Automatically maintained SAP masterdata enables performance tracking by

cost center, company code, etc.

Sustainability-specific organizationparameters

Aggregate Results Along Multiple OrganizationHierarchies Synchronized With SAP Master Data

Capability #2



Manage Multiple Concurrent SustainabilityFrameworksDifferent standards, regions, frequencies

Reuses KPIs across several frameworksand collapses all related required data

collection

Capability #2



Eliminate Wasted Time and MoneyEfficient data collection from systems and people

Automated data collection fromsystems

Automatic updates from SAPsystemsData from non-SAP systems viaWeb services

Guided processes for datacollection from people

WorkflowSurveys and questionnaires

Capability #3



Efficient Data CollectionGathers data from people or systems

Automated data collectiondirectly via SAPQuery, BWQueries, and Web services

Capability #3



Efficient Data CollectionGathers data from people or systems

Standardized questionnaire forguided manual collection

Capability #3




SustainabilitySAP as Exemplar

A Case Study inBusiness Performance

Excellence



Sustainability Process Maturity ModelAssessment and target


SAP University Alliances BPM Curriculum

Why an SAP University Alliances BPMCurriculumIntroduction to the SAP University AlliancesBPM Curriculum

BPM Curriculum Purpose andObjectivesLesson Plan overviewIntroduction to each session: purposeand contentHow Global Bike is used as the casestudy to support the group assignmentsBooks and academic literatureFinal assignment

Pilot: IT University of CopenhagenThe SAP University Alliances BPMSemester is part of Master in ITManagement and StrategyStudents skills and background (42students in the class)Structure of the sessions (14 sessions)Pilot - feedback and observation

BPM in an SAP perspectiveProcess and Technology evolutionBPM TechnologyBPM GovernanceBPM MethodologyBPX Associate and ProfessionalBPX Community

Next step: Roll-out SAP University AlliancesBPM curriculum



As a Global Business Process Management Lead and Senior Program Manager forBusiness Add-ons in SAP Field Services, GPMO, Ann Rosenberg is responsible for the BPMblending SOA approach from a methodology and Business Add-Ons content perspectivewhich is offered to SAP´s customers. Ann joined SAP in the year 2000 and has since beenworking in SAP Business Consulting, SAP Process Office and Global Project ManagementOffice. Ann has a Black Belt in Six Sigma and an Executive MBA from SIMI. Ann has aprofound experience in setting up BPM organizations and the transformation change whichIT needs to execute to be able to support a process-oriented organization. Ann has designthe new SAP BPX certification program for associate and professional and has published thebook “Business Process Management – The SAP Roadmap”. Ann work as external lecturerat the IT University of Copenhagen and is leading the BPM Roundtable at SAP UniversityAlliances.



As a Professor for Business Model Management, Business Process Management and ValueManagement at the Copenhagen Business School and IT University, Denmark. He lectures bothon Bachelor and Masters level. Furthermore is he:• Founder of the Global University Alliance BPM program• The Co-developer of SAPs Business Process Management Framework and approach• Designer and co-developer of the new SAP BPX certification program for associate and

professional• Main author of SAP Press New Business Performance Management book: Applying real-world

BPM in an SAP environment• Founder of the European BPM User Group, which consists of over 200 companies• He just received IBM’s prestigious “Growth award 2008/2009” for contributing as the strongest

growth enabler across EMEA.

Mark has coached and helped numerable companies create and realize value. His developedapproaches within Business Modelling, Process Management and Business Value Management,has helped hundreds of companies over the world.

He is interest in the following research areas:Business Model Management, Business Process Management, Service Orientation, EnterpriseArchitecture

•M.Eng.•MBA

•M.Com•PhD



As a Professor for Business Information Management at the Wiesbaden Business School ofRhein Main University, Germany, Karin Gräslund teaches Masters of Art s in Financespecifically in Enterprise Information and Performance Management since 2007. Sheeducates her Bachelor Students of Business Administration in 3rd and 6th Semester in basicand advanced course of modern and value-oriented Business Process and EnterprisePerformance Management .• She is responsible SAP University Alliance Representative of the Rhein Main University,• is involved in the Business By Design Activities of the Wiesbaden Business School,• trains the SAP TERP10 Certification Program for SAP Education since the beginning of

the TERP10 Pilot project• cooperates with SAP in the area of Applied Sciences within her master curriculum• and is Member of the BPM Roundtable and the BI Roundtable at SAP University

Alliances.

Prof. Dr. Helmut Krcmar (today Business Information Management at TU Munich) recrutedKarin Gräslund as research associate at the University of Hohenheim, Stuttgart from 1994and employed her as head of Publice Service Consulting team in his Enterprise ITM 1997.2000 she began to work for SAP Germany as consultant and project manager for ERPPlanning and Business Information Warehouse, from 2004 as Sales Executive and SolutionExpert for SAP NetWeaver. Meanwhile she has 10 years industrial experinces in BPM andInformation Management Consulting cooperating with consulting partners like bearing point,Deloitte, Accenture, Steria Mummert among others.



As a senior lecturer and academic developer at Sheffield Business School (SBS), Siavashlectures in Business Operations and Process Management, Strategic Information andKnowledge Management, Business-IT Alignment and Digital Innovation.

Siavash has founded the Enterprise Systems Competence Center (ESCC). The centre aimsto foster teaching, learning, research and practice excellence in the area of EnterpriseSystems, BPM and Enterprise Architectures.

Siavash holds an MSc in IT and Management, is a certified SAP consultant and has morethan 10 years of experience in industry and higher education as a consultant, IT practitionerand academic. He is currently leading the development of Masters level courses withspecific reference to BPM and EA at SBS.

He takes active (research) interest (non-IT inclusive) in BPM, EA, Business-IT Alignment,Open Source, Technology Innovation and Educational Leadership.



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