IBM provides expertise in using business process management (BPM) to develop business applications that minimize customization of SAP systems. BPM allows separating business logic, user interfaces, and reporting for improved flexibility. It also enables rapid, iterative application development by modeling processes, simulating changes, and deploying updates. IBM discusses using BPM to develop applications for human resources processes like hiring and expenses. Customers have used IBM BPM to streamline HR and other processes, reducing times by up to 90% while improving visibility and productivity. IBM offers workshops to assess how organizations can leverage BPM for their SAP processes.

1. Agile Development & Minimize
SAP customization using BPM
Logan Vadivelu
WW Smarter Process Technical Leader
Distinguished Chief IT Architect (The Open Group)
Oct 2014

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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

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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

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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

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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

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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

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Executive
ManagementCustomer
Service
Invoice
Reconciliation
Team
Finance
and Ops
Account
Administr
ation
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 ManagementHuman-driven Transaction Flow Management

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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

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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.
IncreasingProcess
Granularity
(American
Productivity
and Quality Center)
Process Levels - APQC Process
Classification Framework (PCF)
L1
L2 - Group
L3 - Process
L4 - Activity
L5 – SAP Transactions
CategoryVision / Strategy
Operation
Process
BPR /
Blueprinting
Modules
Configuration

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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 OrderB2B 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, etcBusiness
Exceptions / Events
Play in Slideshow Mode

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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

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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 ReusabilityProductivity
(System of Record)
Flexibility
Visibility
Simplicity
Optimization
Automation
Mobile / Social
Agility
Consistency
ReusabilityCompliance SLA / KPI
Collaboration
(System of Engagement –
‘process’, ‘mobile’ ‘social’)
Play in Slideshow Mode

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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

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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 AdaptorsProcess Rules Performance
Data Warehouse
BPEL
Social Collaboration
Coaches Dashboards
Network Multiple Process Centers
Server RegistryShared Assets
Versioned Assets
WAS ND 8.5
Mobile
Toolkit
Case Design
Embedded CMIS
Repository

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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

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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

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An Example of Expense Reimbursement Process

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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)

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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

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Illustrative Hiring On-boarding – Capability to Process model

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HR Hiring Process

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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

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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

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Authoring business rules to implement Decisions

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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

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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

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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

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Visibility in Run-time and Design-time (simulation)

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IBM Mobile App for iOS - Workflow Tasks & Process Launch
Add Attachments
Stream

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IBM Mobile App - Complete Approval Requests Anywhere
& Anytime
Task List and Task
Completion

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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

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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.

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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

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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

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Questions
+ = Enables Innovative Business Model