Extend SAP processes using IBM BPM Webinar July-2016

© 2014 IBM Corporation
Enhance, Extend and Optimize SAP Processes across the Value Chain
for Achieving Business Differentiation, Flexibility and Agility
Logan Vadivelu
Hybrid Cloud, API-E & Smarter Process Solutions
logan.vadivelu@in.ibm.com
July 2016

2
Topics
 What problems that IBM BPM for SAP solve for our Customers?
– Extend, Enhance, Integrate and Optimize SAP core processes
 What Capabilities IBM BPM offer to help SAP Customers ?
 How IBM BPM for SAP Benefits Customers?
– Adoption Use Cases and Customer Successes
 Q&A, Next Step

3
Topics
 Q&A, Next Step

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
Process-driven Transactions ManagementHuman-driven Transaction Flow Management
FlexibilityVisibility Agility Control

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

Surround SAP With a Highly Flexible Process Layer
Enhanced UX & Task
Simplification
End to End Process &
Transaction Orchestration
Sub-Transaction Exception
Visibility & Handling
Decision Automation
& Approval Workflow
Real-Time Monitoring
and Operational Insight
Forensic Process
Discovery
Iterative Business
Blueprinting
“Success with ERP software has to be about improved end-to-end business performance not
just correctly functioning ERP software. Layering BPM on top of ERP is the only
way to differentiate your business and manage the true end-to-end picture
of what you do” – Quote from SuccessfulWorkplace Blog

IBM BPM Helps Reduce Most SAP Customizations
Process flow and
integration
Data access, quality
and integration
Application integration
and technical
collaboration
Business rules
Core business logic
User interface and other
usability issues
IBM BPM helps
to reduce these
classes of SAP
customizations –
the highest
volume of
customizations
Guided workflow and
process orchestration
Business rules and
complex event processing
Reusable coach views;
guided workflow
SAP integration modules
and Advanced Integration
Services
IBM BPM Capabilities

8
Topics
 Q&A, Next Step

Process Designer /
Optimizer
Integration
Designer
Process Center
Console
Process Center
Portal
Process Server
Core BPM Advanced Automation & Integration
BPMN BPEL AdaptorsProcess Rules
Performance
Data Warehouse
Integration
Social Collaboration
Coaches
Dashboards
Network Multiple Process Centers
Server RegistryShared Assets
Versioned Assets
Express, Standard & Advanced WAS ND 8.5
Responsive UI
IBM BPM Architecture & Components
Structured Process
Ordered Sequence of Activities
Some Ad Hoc
Unordered (Ad-hoc) Activities
Case
Some Activities with with Ordered Steps
Internal
Doc repository

Core IBM BPM for SAP Capabilities
Reduce
blueprinting time,
cost and risk
Improve process reliability,
flexibility, visibility and control
Improve process efficiency and
reduce business complexity
Innovation
Iterative
Business
Blueprinting
Process
Integration and
Orchestration
Process
Automation
Process
Discovery and
Monitoring
Decision
Automation
Guided
Workflow
Mine SAP
Business Events
to discover
actual
processes and
act in real time
to business
challenges
Use an iterative,
experiential-based
approach to
accelerate
traditional SAP
blueprinting with
SAP Solution
Manager
Interactively
guide end users
through SAP
Transactions to
improve
productivity,
visibility and
consistency
Optimize process
steps to improve
cycle time,
manageability
and visibility of
key processes
Dramatically reduce
the cycle time of
high volume
processes by
reducing/removing
human interaction
Automate
complex decision
making to reduce
bottlenecks and
improve business
outcomes
Transformation
Business Optimization Potential
SAP Customization
Business Innovation +
Differentiation
Smarter Process for SAP
Adoption Level

BPM Integrates with SAP – both ‘Design’ and ‘Run-time’
FI
Financial
Accounting
CO
Controlling
PS
Project
System
WF
Workfl
ow
IS
Industry
Solutions
HR
Human
Resources
MM
Materials
Mgmt.
SD
Sales &
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant
Maintenance
SM
Service
Mgmt.
EC
Enterprise
Controlling
AA
Asset
Accounting
SAP
Applications
Upload processes to
Solution Manager
Download processes
from Solution Manager
Orchestrate SAP
Processes and Services
Retrieve Enterprise
Service Definitions
Detect & Respond to
SAP Business Events
High Visibility Dashboards (BPM Coach UI)
Process Designer
SAP SolMan
SAP ESR
Via BPM Server
Import
Process
Models
XPDL
BPMN

Example: Lease Contract Management
IBM Process Designer
Turn ‘SAP Blueprint’ into Process Applications
Level - 2
Level – 3 / 4
Level - 5
Level - 1
SAP SolMan - SAP SolMan Project Blueprint can be
imported to automatically create ‘process
model’ (L3) in IBM BPM.
- The import includes ‘L4/ L5 transaction meta-
data’ from blueprint project
- The model further enhanced to add ‘non-SAP’
activities, variation via rules, KPIs, etc.

Discover
Blueworks Live
(licensed separately)
Define
Process Designer
Deliver
Process Portal & Process
Server
Analyze
Process Portal Dashboards
How does IBM BPM help Process-driven SAP implementation ?
– IBM BPM helps manage and monitor end-to-end business processes
(all process levels), including Level 4 / 5 in application systems
• IBM BPM extends Level-4 & 5 of SAP ERP / CRM / SCM & non-SAP
systems and augments with Levels 1-3 implemented in IBM BPM
– IBM BPM helps with flexibility & agility for quickly responding to
business changes
– IBM BPM helps to minimize, if possible eliminate, SAP customizations
13

IBM BPM Guided Workflow Requires Limited IT Involvement
1
Import the SAP Business
Process Hierarchy (BPH)
into IBM BPM
BPM
Task UI
SAP UI
Gain Insight into previous steps / collaboration
history for better completion of your Process Step
(SAP Transaction)
3
Launch a new process instance or
select from your inbound task list.
2
BPM UI
Task List

Process Monitoring: KPI Exception Visibility

Process Monitoring: Business Impact Analysis
Bottleneck Analysis
Where are my bottlenecks and are we improving?
Exception Analysis
What mostly impacts business performance?

Discover / Mine Processes from SAP Business Events
 Easily discover, analyze
and characterize SAP
processes
 Empirically understand
compliance and
performance issues with
existing processes
 Easily transfer discovered
processes to IBM BPM
 Optimize to-be processes
 Non-intrusive to SAP
systems
– No special logging or
configuration required in
the production
environment
– Little to no impact on
production system
performance
Available today as an IBM services
engagement

Process Integration extends & Orchestrates SAP Core Process
Simplifies integration and eliminates custom coding. Improves reusability
ALE
Module
BAPI
Module
QISS Module
(Query Interface for SAP)
SCI Module
(Synchronous RFC/BAPI
Interface)
IBM Adapter for SAP
Advance Event Processing
Module
SAP Certified Integration
Advanced Integration Service (AIS) integration pattern enables rapid SAP Integration
– Input:
• AIS Service Interface;
• IBM Adapter for SAP (or) Web Service Interface
– Code generated (according to best practices for service invocation)

SAP ECC (> NW 7.0)
SD
MM
PP
...
 SAP Business Rules Framework Plus (BRF+)
• ABAP-based business rules framework (Available with NetWeaver release 7.0 EHP1 and 7.1 EHP1)
• An officially SAP supported approach for connecting to third-party rules engines
• Provides out of the box Import & Export features
 Leverage proven integration style
• Configuration of a dedicated RFC destination & Usage of scalable RFC communication
 Apply native ABAP patterns to enable core SAP business application to leverage
business rules
• ABAP code is calling BRF+ function
• Rules enablement can be done using reusable pattern to make integration maintainable
IBM ODM (Decision Server)
Decision automation improves agility, reduces customization
Rule Execution
Server
Rule Designer
RFC Dest
(SM59)
ODM
SAP Extender

Process automation and optimization
Orchestrate and Automate Complex E2E Processes – regardless of the back-end
1. Order is
received from
the web site
1. Credit check
and approval
are completed
1. Required
components are
determined,
ordered,
allocated and
received
1. Customer order
is written and
confirmed for
production
1. Production order
is completed and
warehoused
1. Customer order
is approved for
shipment
1. Customer order
is picked from
warehouse and
scheduled for
shipping
1. Customer records
are updated with
order request
information
1. Customer order
is invoiced
End-to-End Process Choreography
Retrieve Customer
Master Data
IBM BPM SAP
Integration Module
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
IBM BPM Order to Ship End-To-End Process

Enhanced UX improves User productivity
 UI built for phones, tablets and desktops
• Adjusts layout based on screen size & orientation
• Slide out “drawers” on left & right
– AngularJS based ‘Responsive Coach Views’ and
‘Lite Coaches Toolkit’
Process Portal –
Tasks List View in
iPhone
Process Portal – Tasks List View in Desktop
Process Portal –
Task Completion View
in iPhone

22
Topics
 Q&A, Next Step

IBM BPM adds value to ‘New’ or ‘Existing’ SAP system
A New SAP
Implementation
SAP Version
Migration
Any SAP Implementation can benefit from every Smarter Process
capability at every life cycle stage.
StableSAP
Implementation
 Green field
 Re-implementation
 Instance consolidation
 End to end process orchestration
 Process optimization and
differentiation
 Point solutions
 Continuous business optimization
 BPM and SAP CoEs
 Functional upgrade
 Major version
upgrade

BPM for SAP Adoption Scenarios
The scenarios / use cases will be equally applicable to both 'green field' and
'existing install base'.
1. Extend & Enhance SAP core processes
• Extend and enhance SAP L-4 transactions with BPM for handling business exceptions,
approvals, enable value chain partners to directly participate in the process
• Minimize SAP customization by leveraging BPM for developing functionality / process
steps not supported in SAP
2. Transform & Optimize value chain processes
• BPM manages all levels of process hierarchy, and uses SAP & other systems to
perform L-4 business transactions.
• BPM provides end-to-end process visibility plus KPI & SLA management. Allows to
modify process flow 'on the fly' to respond to business situation, new opportunities, etc.
3. New, Green field SAP projects
• Use BPM for 'SAP business blueprinting'. Instead of capturing process flows as static
diagrams in visio or similar tools, discover & define in BPM and synchronize with SAP
SolMan for driving SAP configuration.
• The defined process models are executed in BPM for managing end-to-end, value
chain processes.
• Plus the scenarios listed in 1) & 2)

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
25

IBM BPM is a market leader
+ = Enables Innovative Business Model
Install base of over 5,000+ active implemented customers and
800+ business partners
Leader in Gartner’s Magic Quadrant for Intelligent Business
Process Management Suites and leader in the Forrester Waves
for BPM Suites and Dynamic Case Management
#1 market share in Business Process Management (BPM) and
Business Rule Management Systems (BRMS) according to
Gartner and IDC

Extend SAP processes using IBM BPM Webinar July-2016

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