How To Improve Your Business Process With Sap
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1 Business Process Analytics & Improvement SAP Solution Manager 7.1 SAP AG August, 2011
2 Disclaimer This presentation outlines our general product direction and should not be relied on in making a purchase decision. This presentation is not subject to your license agreement or any other agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or to develop or release any functionality mentioned in this presentation. This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent SAP AG. All rights reserved. 2
3 Agenda Overview From Business Process Stabilization to Business Process Improvement SAP Business Process Improvement SAP Business Process Analytics in SAP Solution Manager SAP Business Process Improvement Methodology Further Information 2011 SAP AG. All rights reserved. 3
4 Overview Business process lifecycle (implementation, stabilization, improvement)
5 Business Process Monitoring Alert Monitoring, Analytics, Dashboards IT Business Business Process Stabilization (monitor interfaces & jobs) Business Process Improvement (based on document backlog) Business Process Improvement (based on internal benchmarks) Minimize interface failures Minimize errors or delays in background processing Maximize technical performance Avoid functional errors (e.g. ABAP dumps, update errors) Identify possible end-user training gaps Standardization issues Close process design gaps Adjust customizing and/or configuration Clean up old & open business data Lead Time calculation for certain process steps Analysis of Inventory (Slow Moving Stock) Supply Chain Analysis (STO Value in Transit, STOs without Deliveries) Order Analysis (Returns, Rejections, Incompleteness) Protect initial investment Make most of initial investment & achieve optimum according to plan Business Process Monitoring for interfaces, background jobs & cross-application Business Process Analytics Business Process Analytics & Business Process Monitoring (application-specific) Business Process Operations Dashboards 2011 SAP AG. All rights reserved. 5
6 What customers want to achieve? Business Process Stabilization & Improvement Output Exception Improvement: Increased output in the future Stabilization: Faster reaction on exceptions to bring output back to expected level Time 2011 SAP AG. All rights reserved. 6
7 Business Process Analysis & Monitoring From Analysis to Stabilization & Improvement Provides indicators for SAP Business Process Analysis performed on SAP ERP, SAP CRM or SAP SRM backend system Provides scope for Business Process Stabilization & Improvement Clean-up of old & open business data Improved planning result accuracy Improved performance of transactions, reports or processes Higher reporting quality Higher end-user efficiency Detect & correct gaps in process implementation Configuration issues Missing closing steps Business Process Analytics Internal Benchmarking Benchmarking across organizational units Visibility & Transparency Business Process Standardization Business process template adherence Missing end-user training Business Process Monitoring Early detection of business process exceptions Overdue business documents not processed fast enough Interface errors & inconsistencies Issues within background processing Performance issues Automization of manual tasks Real-time alert monitoring of interfaces & background jobs 2011 SAP AG. All rights reserved. 7
8 SAP Business Process Improvement SAP Business Process Analytics & Business Process Improvement Methodology
9 SAP Business Process Improvement Motivation, Benefits & Customer examples Goal Benefit Customer examples Transparency Efficiency Effectiveness Clean-up Global transparency across organizational units & process variants -- in house benchmarking Reduced process costs Higher customer satisfaction & faster revenue stream Better planning results & more accurate business reporting Automated analysis of open items in Finance (Accounts Payable, Accounts Receivable, General Ledger across legal entities) saves high manual efforts. Incomplete sales documents in certain organizations lead to delays in the sales & distribution process. Too many production orders that are not closed have a negative impact (processing time) on period end closing. Incorrect usage of business processes (wrong document types, unfinished business documents, etc.) lead to high manual workload in post processing and increase of SG&A costs*. Deliveries/orders with delayed invoices lead to delay in revenue stream. Too many credit memos because of price corrections. Too many sales schedules not confirmed for desired delivery date decreases customer satisfaction. Old and open planned orders/purchase orders lead to incorrect planning results in supply chain planning (MRP). Failed component consumption in production confirmation negatively impacts stock levels. *Sales, General & Administration 2011 SAP AG. All rights reserved. 9
10 SAP Business Process Analytics Definition and Functional Scope What is Business Process Analytics? BP Analytics is a tool to support the BP Improvement Methodology BP Analytics is based on SAP BW What is supported by Business Process Analytics? (Internal) Benchmarking Age structure of document backlog Trend analysis Direct link to managed system (detail list) 2011 SAP AG. All rights reserved. 10
11 Business Process Analytics Benchmarking 2011 SAP AG. All rights reserved. 11
12 Business Process Analytics Age Structure 2011 SAP AG. All rights reserved. 12
13 Business Process Analytics Trend Analysis 2011 SAP AG. All rights reserved. 13
14 SAP Business Process Improvement Methodology Five phases of typical Six Sigma project (DMAIC) Decide on Work Streams/ Processes to start with BP Analysis by Define BP Monitoring No yellow or red alerts should show up Control Use BP Analytics Identify areas with improvement potential BP Analytics Trend Analysis should show decreasing trend BP Operations Dashboards Implement Analyze Measure Benchmark organizational units Analysis of backlog & trends Create Action Plan Execute Action Items Root Cause Analysis 2011 SAP AG. All rights reserved. 14
15 SAP Business Process Improvement Standardized Methodology with Business Process Analytics Get Global Transparency Identify Org Units to be analyzed Identify Potential for old Data Reduction Perform Detail Analysis Identify Root Causes (RC) Create Frequency Diagram of RC Define Action Plan Visualize Impact on Benefit/Value Categories Control Achievements via Trend Analysis 2011 SAP AG. All rights reserved. 15
16 SAP Business Process Improvement Analysis of Exceptions I Example: Overdue Sales Orders Identifying Systematic Issues Key Figure Overdue Sales Order Master Data Customizing End User Technical Exception Business Exception Inactive Sales Organizations Inactive Document Types System expects deliveries where none are expected from business side Missing quantities that are not needed are not rejected Functional error Technical Performance Reporting Quality Supply Chain Planning Revenue Stream Customer Satisfaction Key message: Systematic issues have mainly an influence on the value areas Technical Performance, Reporting Quality and Supply Chain Planning 2011 SAP AG. All rights reserved. 16
17 SAP Business Process Improvement Analysis of Exceptions II Example: Overdue Sales Orders Real (Business) Exceptions Key Figure Overdue Sales Order Master Data Customizing End User Technical Exception Business Exception Planned dates calculated too ambitiously Incomplete Sales Order Cancelled background job Erroneous interface Missing Stock Delivery Block Slow/delayed warehouse tasks Slow/delayed transportation Technical Performance Reporting Quality Supply Chain Planning Revenue Stream Customer Satisfaction Key message: Business exceptions have mainly an influence on the value areas Revenue Stream and Customer Satisfaction 2011 SAP AG. All rights reserved. 17
18 SAP Business Process Improvement Best Practice: Organizational Structure for Business Process Improvement IT Business BPMon Owner / Project Lead Executive Sponsor Definition of Key Figures & Filter Criteria Root Cause Analysis Verification of Business Impact Definition of Action Items IT Application Expert/Module Owner BPMon Architect / Expert (Configuration of Business Process Analytics) Global/Local Process Owner (GPO, LPO) & Local Key Users (LKU) 2011 SAP AG. All rights reserved. 18
19 Further Information
20 Further Information SAP Note & Link Prerequisites for CQC service: BPA and BPM Describes the necessary (minimum) prerequisites in order to execute an CQC Business Process Analysis and Business Process Monitoring services respectively Business Process Monitoring on SAP Service Marketplace SAP AG. All rights reserved. 20
21 2011 SAP AG. All rights reserved No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iseries, pseries, xseries, zseries, eserver, z/vm, z/os, i5/os, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation. Linux is the registered trademark of Linus Torvalds in the U.S. and other countries. Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries. Oracle is a registered trademark of Oracle Corporation. UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc. HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C, World Wide Web Consortium, Massachusetts Institute of Technology. Java is a registered trademark of Sun Microsystems, Inc. JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company. Sybase and Adaptive Server, ianywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAP company. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence. The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages SAP AG. All rights reserved. 21
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