Intelligent Business Operations. Nikolaos Tsirgelis, Jason Bath, Silvio Arcangeli

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1 Espresso Thursday Intelligent Business Operations Nikolaos Tsirgelis, Jason Bath, Silvio Arcangeli

2

3 The Journey to Predictable Real Time Processes, Data, Event & Rules SAP acquires Business Rules Management (BRM) leader YASU Technologies SAP introduces Process Orchestration combining BPM, BRM, PI + EDI & B2B 6,800+ customers invested in Process Orchestration, BPM, PI or BRM SAP releases API Management partnering with Apigee st release of SAP s BPM & BRM solution SAP acquires Sybase And gains PowerDesigner Enterprise Architect Gartner leader & Event Stream Processor Gartner CEP Leader SAP releases Operational Process Intelligence powered by SAP HANA SAP releases Intelligent Business Operations powered by SAP HANA 2014 SAP SE or an SAP affiliate company. All rights reserved. 3

4 SAP Intelligent Business Operations The evolution of BPM towards the Digital Enterprise and the Internet of Things Silvio Arcangeli Enterprise Architect, Director of IBO Go-to-Market, SAP EMEA March 17 th 2015

5 The challenge of End-to-End Visibility Common issue at most of our customers 1 End-end-processes (like Procure-to-Pay, Order-to-Cash etc.) are 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. Any Logistics Any ERP Any CRM 2014 SAP SE or an SAP affiliate company. All rights reserved. 5

6 An IBO customer case Invoice Management & Accounts Payable in a major Telco Receiving Verification Payment 1 Core SAP-centric process, and yet it involves an OpenText system for OCR, a custom system for e-procurement, different reporting systems etc 2 Manual effort needed to extract reports from the different systems and reconcile the metrics to get some business visibility. 3 No timely visibility over cash liquidity, difficult to control inconsistencies between countries and enforce a unified governance model 2014 SAP SE or an SAP affiliate company. All rights reserved. 6

7 An IBO customer case Invoice Management & Accounts Payable in a major Telco The questions the Shared Services Center Manager was asking, and IBO is now answering. (Without bothering him with all the IT complexity underneath) Once an invoice is received, how long does it take to go through the end-to-end process and get paid? How does that differ in each country? Among the invoices which are currently pending accounting in a certain country, which are the ones that are closer to their due date? What is the total amount (in ) of invoices that are currently being processed in Invoice Management and will then reach Accounts Payable? (worst case scenario for cash flow if they all pass verification) Which invoices are about to expire or overdue, and what are the forecasted penalties? 2014 SAP SE or an SAP affiliate company. All rights reserved. 7

8 Intelligent Business Operations in Procurement Global Procurement Operations the SAP case Gain end-to-end transparency across procurement operations Sense and respond to critical business situations justin-time material availability for manufacturing operations Improve material availability and optimize inventory costs 2014 SAP SE or an SAP affiliate company. All rights reserved. 8

9 Bogdan G. Bruma SAP Procurement Operations Manager, Prague I need the fact based view on todays situation users, world-wide delivery, procurements per day/emea Challenges 1 Getting end-to-end transparency on real-time status across all parties & departments involved 2 Finding where to initiate action today to prevent missing SLAs tomorrow 3 Getting control to manage KPIs like cycle-time not only for parts of the process

10 Global Procurement Operations Global Procurement handles purchasing for SAP world-wide Prague Procurement is run in shared service centers in Prague, Buenos Aires and Singapore Procurement supports purchasing: 3rd-party services Facility equipment HR related services IT/ telecommunication Marketing Office supplies, logistics Non-catalog items Buenos Aires Singapore

11 The SAP IBO solution Management Dashboard Business Process Clarity and Insight 2014 SAP SE or an SAP affiliate company. All rights reserved. 11

12 The SAP IBO solution Real-time view into current instances for Process Stakeholders 2014 SAP SE or an SAP affiliate company. All rights reserved. 12

13 The SAP IBO solution No coding required, no change to existing legacy apps, no risk! 2014 SAP SE or an SAP affiliate company. All rights reserved. 13

14 The SAP IBO solution Real-time analytics merged with transactional visibility 2014 SAP SE or an SAP affiliate company. All rights reserved. 14

15 The SAP IBO solution HANA-powered Predictive capabilities 2014 SAP SE or an SAP affiliate company. All rights reserved. 15

16 The SAP IBO solution Insight to Action Optimize process and business outcome 2014 SAP SE or an SAP affiliate company. All rights reserved. 16

17 An IBO customer case Loan Origination in a major Bank Lead Generation Opportunity Processing Offer Processing Underwriting Closure and Funding 1 Heterogeneous cross-application process, lack of end-to-end visibility. 2 Manual effort via phone calls and s to manage and run the process 3 Hard to follow up on opportunities in a timely fashion SAP SE or an SAP affiliate company. All rights reserved. 17

18 An IBO customer case Loan Origination in a major Bank The questions the Process Manager was asking, and IBO is now answering. (Hiding all the IT complexity underneath) Which are the current loan requests which are taking longer to process? Which ones are close to violating the SLA? How many opportunities were won and lost in the current month? What is the average time taken to accept an offer? What is the current average number of quotations per opportunity? 2014 SAP SE or an SAP affiliate company. All rights reserved. 18

19 The SAP vision: Pace Layered approach Middleware as the strategic enabler to Enterprise Transformation WEB DEVICES ENTERPRISE SOFTWARE SOCIAL Systems of Innovation Hours to days change cycles SAP API Management Systems of Differentiation Days to weeks change cycles SAP Intelligent Business Operations Systems of Record Infrequent changes SAP Business Suite NON-SAP 2014 SAP SE or an SAP affiliate company. All rights reserved. 19

20 The SAP solution IBO in the Heterogeneous Landscape Intelligent Business Operations bundle Process Modeling SAP Power Designer Process Flexibility SAP Process Orchestration Complex Event Processing SAP Event Stream Processor Process Intelligence SAP Operational Process Intelligence Any Logistics Any ERP Any CRM 2014 SAP SE or an SAP affiliate company. All rights reserved. 20

21 Business Scenario Strategic Decisions vs. Operational Decisions Different Timeframes and Different Needs Operational Decisions Credit Check Inventory Check Resource Allocation PO Approval Fraud Detection Real-time Promotions [ ] Strategic Decisions Business Planning Product Innovation P&L Analysis Mergers & Acquisitions [ ] Milliseconds Days Weeks Years Timeframe 2014 SAP SE or an SAP affiliate company. All rights reserved. 21

22 How to get value from Data Insights? Value that insight can bring to transaction decays with time Traditional BI can t fit these cases! Janelle Hill, Gartner BPM and Intelligent Business Operations 2014 SAP SE or an SAP affiliate company. All rights reserved. 22

23 Leverage Big Data for Optimized Processes Approach both Operational Intelligence and Business Intelligence Strategic Decisions Big Data at Rest IBO / Big Data in Motion Orient Decide Operational Decisions Operational Decisions 2014 SAP SE or an SAP affiliate company. All rights reserved. 23

24 Operational Intelligence Leveraging the HANA Platform Merging OLAP and OLTP IBO leverages HANA to infuse Intelligence to heterogeneous processes Heterogeneous & Custom Processes IBO on HANA RUN Standard Transactions S4 Applications on HANA Strategic Decisions BI on HANA UNDERSTAND SAP HANA Platform 2014 SAP SE or an SAP affiliate company. All rights reserved. 24

25 Smart process apps support business activities that are people centric, highly variable, loosely structured and subject to frequent changes First level Second level Third level Smart contextual embedded analytics guidance with rules/ predictions collaboration Process agility with BPM/Rules integration to core business systems goals, milestones, checklists and tasks App mobile first search and discover in app store configure and deploy like packaged apps quick decisions agility faster value

26 Smart Process Apps with SAP Intelligent Business Operations Financial Services Payment Cockpit Manage the payment processes between banks and corporates, provide business rules, approve tasks and workflows to steer the payment process Logistics Hub Operations Enable hub operators to receive and send high volume shipments to next leg of the destination by resolving inconsistencies at the earliest to ensure the no shipment is left behind. Technology Procurement Operations Enable purchase organization to get visibility around the procurement process. Procurement Officers would like to meet their SLA s and ensure payments on time to get discounts. Telecom New Customer Acquisition Enable companies to offer telephony and data communication services to manage the process of customer care, service orders and new customer acquisition Retail Store Assortment Manage the store assortment process in retail stores to empower store managers to sell local produce and replenish inventory Automotive Make to Order Business needs visibility on orders where in the process is the order, when are we likely to delivery the order and take action to ensure that order is delivered on time. This is the current state of planning and may be changed by SAP at any time 2015 SAP AG. All rights reserved. 26

27 Scenario: Sense and Respond (M2P IOT scenario) Oil and Gas: Managing Non-Productive Time (NPT) 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 SAP Operational Process Intelligence 2014 SAP SE or an SAP affiliate company. All rights reserved. 27

28 Sample Sense & Respond campaign Location-based promotion on Internet data consumption high-level OODA loop Marketing Manager How can I increase customer spend? Observe Orient Decide Act Customer profile and contract Geo-data (Customer location) Phone calls and messages Internet Data Consumption Correlate event feeds with customer data Gain visibility in customer buying behavior & interests Detect cross-sell & upsell opportunities Detect customer churn threat Trigger personalized promotions E.g. Customer has entered a shopping area downtown, is there since more than an hour, belongs to premium segment with postpaid contract, and has consumed more than 100Mb of Internet Data Send him an SMS with an expiring promotion code that grants further Internet Credit at discounted rate 2014 SAP SE or an SAP affiliate company. All rights reserved. 28

29 INTELLIGENT BUSINESS OPERATIONS by SAP HANA Solution Overview Summary and Q&A

30 Key Take Aways Through the Intelligent Business Operations Solution, SAP enables organizations to infuse intelligence in their Business Operations Achieve Process Visibility and Situational Awareness transparently over your current heterogeneous legacy, protecting past investments Leverage Process Intelligence and Real-Time Big Data and Predictive Analysis to optimize Operational Decisions Improve Process Flexibility and enable faster and easier change through top-down Business Process Improvement 2014 SAP SE or an SAP affiliate company. All rights reserved. 30

31 Questions & Answers

32 Thank you Contact information: 2014 SAP SE or an SAP affiliate company. All rights reserved.

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