David Keyes

BPM Sales Executive, North America

20 February 2013

IBM BPM for SAP

Enhancing the value of your SAP investment with BPM

2013 IBM Corporation

Governments face common challenges when improving

processes

Processes reside inside applications
Processes are rigid and costly to change IT changes needed lag far
behind with passage of time, changes may no longer be relevant

Processes span multiple applications

Any changes have implications across all applications inefficient and
ineffective processes remain long after the need for change has been
recognized

Undocumented manual processes

No automation exists to enable on-the-fly process changes
No automation exists to trigger processes based on
events or patterns

Ad-hoc processes
Most systems are not equipped to capture ad-hoc work
Most ad-hoc processes often not tracked or monitored
Costs remain hidden and ad-hoc processes remain ad-hoc

BPM Addresses These Challenges to Provide Integrated End-to-End Solutions

2013 IBM Corporation

Process is a priority for Clients

Make business process more efficient

56%
Introduce new IT-led products or services for our customers

40%
Get better business intelligence to more employees, faster

36%

Process is
Priority!

Lower IT or business costs

36%
Improve Web operations or customer experience

34%
Improve customer service

26%
Engage customers in new ways

24%

Process Improvement is the #1 Priority

for CIOs - 5 years in a row
Gartner, Inc, Leading in Times of
Transition: The 2010 CIO Agenda

Data September 2010 Information Week 500 Survey

2013 IBM Corporation

Typical process problems

Customer
Service

Account
Administration

Finance
and Ops

1.

Unstructured Tasks and

Communication (ex Paper or
email)

2.

Inefficient Working Environment

Spans Systems

3.

Inconsistent Prioritization

4.

Incomplete or Inaccurate Data

Flow Between Systems

5.

Lack of Control Over System

and Business Events
(Exceptions)

6.

Poor Visibility Into Process

Performance

7.

Inconsistent or inefficient
execution of business rules

Executive
Management

Invoice
Reconciliation
Teams

4
5

SAP processes are typically informal, due to documentation-centric implementations. ABAP customization is often
used to help manage and optimize SAP processes.
2013 IBM Corporation

IBM BPM Overview

BPM provides innovative tooling to capture, understand, document, collaborate, and optimize ANY
business process causing the most pain, or needing the most visibility

BPM projects do not require disruptive multi-year investments

IBM BPM allows you to create process models that execute the process while capturing process
metrics and key business data for improved visibility and control

Risk Management
Teams

PEOPLE

The picture IS your SAP process

Finance
and Ops
Account
Administration

Executive
Management

Customer
Service

RULES

PROCESS

SYSTEMS
2013 IBM Corporation

IBM BPM An innovative solution to a complex problem

Embrace complexity, adapt quickly and exceed expectations

2013 IBM Corporation

In this presentation, you will learn how IBM BPM enhances your
SAP investment
Benefit
Improve alignment of strategies and operations
Improve productivity
Improve insight
Reduce costs through increased flexibility
Support changing industry requirements
Optimize IT spending
Reduce risk
Improve financial management and corporate governance
Gain higher ROI faster
Provide immediate access to enterprise information
Give employees new ways to access enterprise information

SAP Only

SAP with IBM BPM
































2013 IBM Corporation

Most SAP implementations have issues today

Late Deployments

Over Budget

Poor Operational Visibility

Rigid Processes

ROI Targets Not Met

2013 IBM Corporation

SAP Process Management Challenges

Most SAP
implementation

documentation
is static and does

much
customization
is often required

not reflect the

processes actually
being used

Most SAP processes rely

on human compliance

with process
documentation
9

making it

difficult to
migrate to
future releases

2013 IBM Corporation

A simple SAP process today

A high level process blueprint is defined in PowerPoint, Visio,
SAP Solution Manager or a modeling tool, including
transactions:
VD03
VD03 -- Display
Display customer
customer master
master
VA01
VA01 -- Create
Create sales
sales order;
order;
VOK0
VOK0 -- Maintain
Maintain Pricing;
Pricing;
CK51N -- Create
Create Order
Order BOM
BOM Cost
Cost Estimate
Estimate
CK51N
IW21
IW21 -- Create
Create notification
notification

The implementation then relies on users to read, properly

understand and comply with documentation
by entering the proper sequence of transaction codes in SAP.
2013 IBM Corporation

With this approach, how can you?...

Quickly know the status of key processes?

Ensure that the process you designed
is the process that is being executed?

Get real-time visibility into where workload
or other bottlenecks are causing business
issues?

Effectively reroute work to less experienced
workers to reduce bottlenecks?

Know which process changes are most
likely to help improve business
performance?

Quickly rollout SAP process changes?

Quickly integrate new process workers into
your business?

Many SAP customers

attempt to address these
issues with customization.
2013 IBM Corporation

SAP provides services that should help

public String search(){
try {
// Retrieve an instance of the configuration port
EmployeeBasicDataByEmployeeQueryResponseIn port = service
.getEmployeeBasicDataByEmployeeQueryResponse_InSoapBinding();
// specify username and password issued for you via SDN
// to authenticate to the backend as follows
javax.xml.ws.BindingProvider bp =
(javax.xml.ws.BindingProvider) port;
Map<String, Object> context = bp.getRequestContext();
context.put("javax.xml.ws.security.auth.username", "username");
context.put("javax.xml.ws.security.auth.password", "password");
// Construct the input to be applied to the service call
EmployeeID employeeID = new EmployeeID();
employeeID.setValue(this.employeeID);
EmployeeBasicDataSelectionByEmployee employeeByEmployee =
new EmployeeBasicDataSelectionByEmployee();
employeeByEmployee.setEmployeeID(employeeID);
EmployeeBasicDataByEmployeeQueryMessage input =
new EmployeeBasicDataByEmployeeQueryMessage();
input.setEmployeeBasicDataSelectionByEmployee(employeeByEmployee);
// Invoke the business methods
EmployeeBasicDataByEmployeeResponseMessage output = port
.employeeBasicDataByEmployeeQueryResponseIn(input);
Employee employee = output.getEmployee();
//Get the response
this.employeeName = employee.getCommon().getName().getGivenName();
this.employeeLastname =
employee.getCommon().getName().getFamilyName();
this.employeeBirthday = employee.getCommon().getBirthDate();
this.employeeMaritalStatus =
employee.getCommon().getMaritalStatusName().getValue();
return "ok";
} catch (Exception e) {
//Clean the object and return an error
this.employeeID = "";
this.employeeName = "";
this.employeeLastname = "";
this.employeeBirthday = null;
this.employeeMaritalStatus = "";
return "error";
}

but no easy way to implement

2013 IBM Corporation

IBM offers a comprehensive solution to common SAP process

challenges
Challenge

IBM Solution

Opaque SAP processes make process analysis

and improvement difficult

Iterative, playback-based modeling facilitates

transparent process definition

Rigid SAP processes increase time to value

Directly execute SAP process models for flexible

processes and rapid process change cycles

End-to-end processes are difficult to model,

simulate and manage

Easily orchestrate heterogeneous processes for

simple end-to-end control

SAP Enterprise Services are difficult to use and

incomplete

Easily consume and deploy SAP Enterprise

Services at the business level

Limited SAP process and real-time visibility causes

risk to KPIs and SLAs

Actively monitor and manage SAP and

heterogeneous processes in real time

Low utilization of inline operational decision

management limits productivity

Improve process throughput, consistency and

responsiveness with active inline decision
management
2013 IBM Corporation

With IBM BPM 8.0

The picture IS your SAP process

Analyze.

Define.

Execute.

Monitor.

Improve.

All in one tool analysis through execution through improvement

14

2013 IBM Corporation

IBM BPM for SAP capabilities

Increasing Integration

Process Discovery
and Monitoring

Mine SAP business events to discover actual processes and

act in real time to business challenges

Process Blueprinting

Use an iterative, experiential-based approach to accelerate

traditional SAP blueprinting

Guided Workflow

Interactively guide end users through SAP screens to

improve productivity, visibility and consistency

Process Integration
and Orchestration

Optimize process steps to improve cycle time, manageability

and visibility of key processes

Decision Automation

Automate complex decision making to reduce bottlenecks

and improve business outcomes

Process Automation

Dramatically reduce the cycle time of high volume processes

by reducing/removing human interaction
2013 IBM Corporation

IBM BPM 8.0 integrates seamlessly with SAP

SD
Sales &
Distribution

Orchestrate SAP
Services

MM
Materials
Mgmt.

CO
Controlling
AA
Asset
Accounting

PP
Production
Planning
SM
Service
Mgmt.
QM
Quality
Mgmt.

SAP
Applications
PM
Plant
Maintenance

Monitor SAP
Business Events
Download processes
from Solution Manager

Upload processes to
Solution Manager

FI
Financial
Accounting

HR
Human
Resources

EC
Enterprise
Controlling
PS
Project
System

WF
Workflo
w
IS
Industry
Solutions

Retrieve Enterprise
Service Definitions

2013 IBM Corporation

IBM Business Monitor for SAP Process Discovery

View SAP transactions as processes without

process orchestration!

Easily create shadow process views of SAP Business

Events by associating milestones with changes in
business state

Completely non-intrusive to SAP simply turn on the

SAP Business Events needed

Automatically create a process view of any SAP

Business Event(s) to:

Understand the actual SAP processes being used in

production

Prepare for process innovation

Detect business challenges as they happen

Fix issues before they become problems

All without disrupting your SAP

environment! (and no custom
coding)
2013 IBM Corporation

Playback-based iterative SAP process blueprinting

SAP Solution
Manager

Model Processes

Design, build and refine processes for execution in a single

integrated tool set. Optionally store process definitions in SAP
Solution Manager Repository.

Invoke Screens

Iteratively invoke or design screens as part of the process

definition exercise

Playback Process

Playback modeled processes at any time to directly see, feel and

touch the real process

Monitor Results

Empirically understand how the process can meet KPIs and SLAs

Simulate and
Refine

Simulate changes without changing the current model

Deploy!

Promote the new or changed process into production

Use live process execution to design and test SAP business processes, then implement your
SAP process inside the same tool!
2013 IBM Corporation

IBM BPM Drives Faster and Better Blueprinting for Your SAP
Implementation

Live playback during all phases of process
design and rollout

Reduce blueprinting time and costs

Deliver agile SAP business processes that
are easy to change

Create market-differentiating SAP processes

Position your SAP implementation for process
orchestration and continuous process
improvement

19

Business users can

directly drive the SAP
blueprinting process.
2013 IBM Corporation

IBM BPM can deliver guided workflow for SAP

Yes

Select
Select
customer
customer

VD03
VD03 -Display
Display
customer
customer
master
master

VA01
VA01 -Create
Create
sales
sales
order
order

VOK0
VOK0 -Maintain
Maintain
Pricing
Pricing

New pricing
Required?
No

SAP Process Flow

in IBM BPM V8

CK51N
CK51N -Create
Create Order
Order
BOM
BOM Cost
Cost
Estimate
Estimate

IW21
IW21 -Create
Create
notification
notification

Transactions
(Native SAP Screens) Automatically
Invoked in SAP

Invoke the correct SAP transaction sequence for each process instance, while gaining
real time insight into business performance issues and opportunities
2013 IBM Corporation

Workflow in the Traditional SAP Implementation

VD03
VD03 -- Display
Display customer
customer master
master
VA01
VA01 -- Create
Create sales
sales order;
order;
VOK0
VOK0 -- Maintain
Maintain Pricing;
Pricing;
CK51N
CK51N -- Create
Create Order
Order BOM
BOM Cost
Cost Estimate
Estimate

Process designers create SAP documentation (paper, Word, HTML, etc.)

IW21
IW21 -- Create
Create notification
notification

Users are trained in how to use the SAP process documents

Some users comply with the process as designed, others create their own

Training time for new users is often lengthy

Difficult to move users from task to task, even in the same department

21 Little to no visibility of backlogs, bottlenecks, poor throughput and other process issues

2013 IBM Corporation

IBM BPM Guided Workflow Improves SAP Value

Documented processes become orchestrated processes

Improve SAP process:

Visibility
Manageability
Reliability
Consistency
Auditability
Performance

Business blueprinting

Training

Production execution

Detect bottlenecks

Reroute process instances with capacity overload

Escalate problem processes

Initiate and track exception processes

Begin continuous process improvement

22

2013 IBM Corporation

Use IBM BPM 8.0 to orchestrate SAP

BAPIs

Guided Workflow
Management for SAP
Express, Standard or
Advanced (BPMN)
23

Process Orchestration
and/or Automation
with BAPIs
Advanced Only
(BPEL)

Process Orchestration
and/or Automation
with SAP Enterprise
Services
Advanced Only
(BPEL)
2013 IBM Corporation

Easily Encapsulate and Bind SAP Enterprise Services

Create Sales Order
(synchronous inbound service
operation (A2X))
<wsdl:definitions name="SalesOrderCreateRequestConfirmation_In"
targetNamespace="http://sap.com/xi/APPL/SE/Global"><wsdl:documentation>Create Sales
Order</wsdl:documentation><wsp:UsingPolicy wsdl:required="true"/><wsp:Policy
wsu:Id="OP_SalesOrderCreateRequestConfirmation_In"/><wsdl:types><xsd:schema
targetNamespace="http://sap.com/xi/SAPGlobal20/Global"><xsd:import
namespace="http://sap.com/xi/APPL/SE/Global"/><xsd:element
name="SalesOrderCreateRequest_sync"
type="p1:SalesOrderCreateRequestMessage_sync"/><xsd:element
name="SalesOrderCreateConfirmation_sync"
type="p1:SalesOrderCreateConfirmationMessage_sync"/><xsd:element
name="StandardMessageFault"><xsd:complexType><xsd:sequence><xsd:element
name="standard"
type="p1:ExchangeFaultData"/></xsd:sequence></xsd:complexType></xsd:element></xsd:sche
ma><xsd:schema targetNamespace="http://sap.com/xi/APPL/SE/Global"><xsd:simpleType
name="DivisionCode.Content"><xsd:restriction base="xsd:token"><xsd:minLength
value="1"/><xsd:maxLength value="2"/></xsd:restriction></xsd:simpleType>

IBM BPM simplifies usage of SAP Enterprise Services so

that they can easily be used by process designers with
knowing the complex technical details
of the SAP service itself.
24

Create Sales Order

IBM BPM SAP
Integration Module

Encapsulated with SCA

Bound per technical
environment standards

Ready for drag and drop into
the Process Designer
2013 IBM Corporation

Drag and Drop SAP Enterprise Services Into the Process

Model

Create Sales Order

Create Sales Order

IBM BPM SAP

Integration Module

IBM BPM SAP

Integration Module

Allows process designers with no technical knowledge of SAP Enterprise Services to use
them in process diagrams

Simplifies all process interactions with the SAP environment

Streamlines process design

Eliminates complex coding for SAP interfaces

25

2013 IBM Corporation

Simplify Complex SAP Transaction Flows with Simpler User

Interactions and Process Flexibility
Replace.

..With

Select Customer
IBM BPM SAP Integration Module

Retrieve Customer
Master Data
IBM BPM SAP Integration Module

Single Optimized
Order Entry Screen

Replace complex flows of multiple SAP transactions
with highly efficient single screens

Simplify work content

Reduce process cycle times and errors

Improve business performance
26

Create Sales Order

IBM BPM SAP Integration
Module

Create Order BOM

Cost Estimate
IBM BPM SAP Integration
Module

Create Notification
IBM BPM SAP Integration
Module
2013 IBM Corporation

Orchestrate and automate complex E2E processes

End-to-End Process Choreography

1. Order is received 2. Customer records
from the web site
are updated with
order request
information
9. Customer order is
invoiced

3. Credit check and

approval are
completed

4. Customer order
is written and
confirmed for
production
6. Production order
is completed and
warehoused
7. Customer order
is approved for
shipment

5. Required
components are
determined,
ordered,
allocated and
received

8. Customer order
is picked from
warehouse and
scheduled for
shipping

IBM BPM Order to Ship End-To-End Process

27

Retrieve Customer
Master Data

Create Sales
Order

Create Order BOM

Cost Estimate

IBM BPM SAP

Integration Module

IBM BPM SAP

Integration Module

IBM BPM SAP

Integration Module

Create Notification
IBM BPM SAP
Integration Module

2013 IBM Corporation

Value Summary of IBM BPM for SAP

Business Performance

Quickly:

Know the flow and status of key processes

Agility

Rollout SAP process changes

Flexibility

Integrate new process workers into your business

Ensure that the process you designed is the process that is being executed

Detect and resolve bottlenecks

Variability

Effectively reroute work to less experienced workers to reduce bottlenecks

Manageability

Automatically escalate problem process instances

Audit ability

Modify queued and running processes on the fly to respond to changing business

Consistency

conditions

Apply the correct amount of process integration and automation

Know which process changes are most likely to help improve business
28

Visibility

performance

Improve the quality, visibility and agility of

your SAP processes in order to deliver an
exceptional customer experience, reduce
costs and optimize business performance.
2013 IBM Corporation

Examples of IBMs own BPM projects and benefits

Business
Agility
Achieved

29

Mid-Market Deal Registration: Delivered $18.5M 2012 PTI by reducing deal registration cycle time
with rules-based work-flow automation.

Supply Chain Alerts: Over $2M annual savings for timely notifications when supply chain
disruptions occur.

Pricing estimator for Cross-brand solutions: Reduced pricing proposal implementation from
14 days to 1 day and deployment to new countries in days versus weeks.

GTS Cloud Sales Enablement: Integrated work-flow, rules and monitoring to reduce partner
register to welcome kit cycle-time from days to hours.

GMU Geo Location Code Assignment: Geo location code is key enabler of GMU expansion.
Eliminated manual process and enabled GMU reps to update rules directly and reduced cycle time
to update and run rules from several weeks with many handoffs to just a week for more than 50
countries.

MTS: Increased IBM Client satisfaction through proactive notification of exposures in clients IT
inventory by applying rules derived via analytics. Proof of value delivered.

Infrastructure Optimization: Reduced cycle time by 75% to complete the analysis required to
migrate from Physical servers to Virtual servers.

2013 IBM Corporation

Small sample of IBM BPM SAP customers

30

2013 IBM Corporation

Large US Toy Company Improves SAP Supply Chain Processes to Reduce

Costs
Challenge:

Increase responsiveness with customers and
collaboration with suppliers while utilizing previous
investments in core enterprise applications

Benefits:

Increased productivity by 250 percent without
additional resources being put into play

BPM Solution
Gathers the bill-of-lading information from freight
forwarders and corresponding invoice data from
SAP at the right time
Automatically prepares and routes all
documentation required
Automates the reconciliation process required for all
US Customs requirements, updating SAP at each
milestone

Reduced cycle times by 80 percent, from 12 days

to only two

Improved overall business efficiency

IBM BPM reduced dependency on phone calls, e-mails and paper faxes, while standardizing
communication between employees and vendors with increased process visibility
31

2013 IBM Corporation

IBM BPM for SAP

One Continuous Process, One Integrated Tool Set

The picture IS the process

Analyze. Define. Execute. Monitor. Improve.

Broadest and Most Differentiated Software Capabilities

Simplicity for fast deployment and full business user participation

Centralized governance for repeatability and consistency
Visibility and Control to continuously improve business operations
Power through High Scalability, Integrity & Quality of Service
Market Leading process, case, decision and rules capabilities
Best in class exceptions handling and case management

Unparalleled Expertise and Investment

Over 15 years of industry leadership

100s of assets

Broadest, Deepest solution portfolio & services
32

Largest Client Base

5,000 + BPM Clients

Gartner ranks IBM #1 in BPM with
24.7% share

IDC ranks IBM #1 with 34.2%
market share

Strongest Ecosystem

1000+ Business Partners

Global Users group
2013 IBM Corporation

Proposed Next Step BPM Discovery Workshop

A collaborative workshop to:
Determine which areas of business pain and/or opportunity are good fits for BPM
Identify and prioritize potential BPM pilot projects
Select and scope a pilot project (90-120 days), assess the fit and value of BPM and/or Decision Management capabilities for this project

What does the IBM team do?

Clarify the process improvement pilot project scope
Characterize the expected business impact and benefits
Assess the high-level implementation effort and solution development
Identify and assess potential risks
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

2013 IBM Corporation

34

2013 IBM Corporation