... Foreword Introduction PART I... Business Process Transformation The Importance of a Business Model
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1 ... Foreword Introduction PART I... Business Process Transformation The Importance of a Business Model Explaining the Difference in Overall Output Performance Revisit the Enterprise Model During Economic Turmoil Core Competitive and Core Differentiated Positioning A Historic View of Business Models The Development of Business Model Concepts Business Model Component Development New Form of the Business Model Concept Resources Capabilities and Abilities The Logic of a Business Model Framework Based on Competencies Flexible and Free Connection of the Competencies Consistency and Union of the Competencies Organizing Business Competencies Summary and Conclusion Business Model Transformation Toward the Service-Oriented Enterprise Adaptation of the Service-Oriented Enterprise Adaptation Driver: Increased Service Orientation Adaptation Driver: Networked Business Adaptation Driver: Power-Shift from Supply- to Demand-Side Service-Oriented Enterprise as Goal Transformation as Journey Business Transformation Change Levers Change Lever: Customer Offering Change Lever: Business Model Change Lever: Value Creation Coordination Business Transformation Case Studies Case Study: Rolls Royce Total Care Case Study: Arvato Lead Logistics Services Case Study: Hewlett Packard Managed Printing Solutions Lessons Learned from the Cases Information Technology as Dynamic Capability of Business Enablement Process-Centric IT Lifecycle Management Closing the Loop of Business Process Management Accelerating the Process Lifecycle Reaping the Promised Value of Reusing Information and Services Summary and Recommendations Practical Example: How to Develop Performance and Value Drivers The Need for Performance and Value Creation Performance and Value Drivers Value Planning and Identification Value Creation Dimensions of PPI Measurement Summary and Conclusions The Holistic Approach: Combining BPM with Value and Performance Management, Enterprise Architecture, Governance, and SOA Applying the Different Approaches Innovate Your EA Framework with BPM and Value and Performance Management Principles
2 Solution Transformation Harmonizing Enterprise Architecture, BPM, and SOA Summary and Conclusions Conclusion PART II... BPM Case Studies from the Real World Observing How SAP Customers Approach BPM: The Gap between Business and IT in BPM Projects BPM Usage Clusters in Industry and Application Use Cases Most Common Industries Adopting BPM Most Common Applications for BPM Typical Business Requirements Satisfied by BPM Articulating and Prioritizing Business Goals and Problems Qualifying Questions to Instate BPM Projects Orchestrating Dependent Actions in a Sequence Orchestrating Actions that Bridge Multiple Systems Orchestrating Actions Between Organizations Architecting Processes for Change Process-Specific User Interfaces Measuring and Monitoring Business Processes First Applications: Enterprise Information Management INVISTA: Enabling Cross-System Master Data Management Background BPM Solution Ericsson: Using Business Rules to Enable Globalization of Supplier Master Data Governance Background BPM Solution SAP IT: Accelerating Postmerger Data Enrichment and Migration Background BPM Solution Industry-Specific Processes Patrimonio Hipotecaria: Supporting Unique Mortgage Processes Attached to SAP for Banking Background BPM Solution Coca-Cola Erfrischungsgetränke AG: Promotion Material Planning and Procurement as an Extension of SAP Trade Promotion Management Background BPM Solution GISA: Increased Competition in Utilities Demands Efficient Customer Service Connections Background BPM Solution Siemens IT Solutions and Services: Balancing Standardization and Customizability in a New Solution Background BPM Solution RS Components: Automating Supply Chain Collaboration for Inventory Planning and Supplier Performance Management Background BPM Solution
3 9... BPM, Business Transformation, and Continuous Process Improvement KAESER KOMPRESSOREN: Transforming from a Products Company to a Service Company Background BPM Solution Braskem S.A.: Realizing the Value of Efficiency and Visibility in Supplier Processes Background BPM Solution Good Ideas for BPM Public Sector: Potholes and Green Area Maintenance Taxpayers Get More for Their Buck Background BPM Solution Airline: Streamlining the Maintenance Process for the Transportation Industry with BPM Background BPM Solution Planning for BPM Transformation Hospira: Integrating Architecture to Become Process-Centric Company Profile Need for Business Process Management Discipline Architecture Practice and BPM BPM Solution BPM Center of Excellence (CoE) Building a BPM Community of Practice Lessons Learned What s Ahead? Danish Defense: Value Drivers in Corporate Businesses The Importance of Having the Right Business Model in Place The Need to Describe the Business Model The Need for Business Governance Implementing BPM in the Danish Defense BPM and Core Business Danish Armed Forces BPM and Technology Delivery Terminology and Conventions Technology Delivery Implementation of Change Conclusion Conclusion PART III... BPM Anatomy for Implementations Methodology and Governance SOA Survey Feedback Survey for the Methodology Key Observations and Trends in SOA Projects Summary How to Combine Business Modeling and Process Modeling Business Model Innovation and Optimization How To Create Value in Connecting the Business Model and Processes The Limitation of Having Only a Process Focus
4 The Holistic Approach Creating Value by Connecting the Business Model to the Processes Business Model Approach to Connecting Strategy to Business Model and Business Model to Operational Model (Processes) Process Identification and Harmonization on the Strategic Level Process Identification and Harmonization on the Tactical Level Harmonization through a Simple Pattern Using the ICASIO Approach Definition and Validation of Process Step Variants Using the RACI Model Approach Process Identification and Harmonization on the Operational Level Conclusion ASAP Methodology 7 Core Project Preparation Business Blueprint Realization Final Preparation, Go-Live Support, and Run Business Add-Ons to ASAP Business Add-Ons to ASAP a New Flavored Approach Tools for Applying Business Add-Ons to ASAP Business Add-Ons to ASAP Methodology, Governance Frameworks, and Implementation Technology Content: Part I Business Add-Ons that Deliver Methodology, Governance Frameworks, and Implementation Content: Part II BPM Tools From Modeling to Execution Composite Development Architecture Guidelines Value Proposition of SAP NetWeaver CE Platform Overview Structure of Composites Separation of Functionality SOA Pattern Conclusion Highlights of the Innovation Provided by SAP NetWeaver BPM and BRM Business Analyst Experience Process Developer Experience Improved Business Insight Interoperability with SAP Applications Interoperability with Other Task User Interfaces Handling Decisions and Business Rules in a BPM Approach The Power of Decisioning Identifying Operational Decisions Implementing Decisions with Business Rules Best Practices in Decision Management Governance Managing the Organizational Implications Business Rules Management from SAP Roots of Business Rule Framework Plus Roots of SAP NetWeaver BRM Business Rule Framework Plus SAP NetWeaver Business Rules Management Usage Recommendations Simple Sample Application for Enterprise Service Consumption
5 15... Process-Based Implementation Content Business Add-Ons to ASAP that Deliver Implementation Content Business Add-On to ASAP Delivering Point of Sales Implementation Content Business Add-Ons to ASAP that Deliver Small SOA/BPM-Based Implementation Content Packages SAP Rapid Deployment Solutions Enablement and Communities Enablement: People as Key Success Factor The Link Between IT and Business Role-Based Education for Organizational Performance Roles and Required Skills Summary Enablement: SAP University Alliances BPM Curriculum Enablement: Starter Kit for Business Process Management, an Add-On to ASAP Benefits and Target Audience Navigating Through the Starter Kit for BPM, an Add-On to ASAP Enablement: SOA KIT, an Add-On to ASAP Enablement: SOA CIO Guide Abstract Solution Space and Key Capabilities Reference Architectures and Maturity Model SAP Product Implementation Guidance Trends and Roadmap Conclusion Enablement: Value Prototyping Enablement: SAP Value Partnership Enablement: Composite in a Day Workshop Enablement: Communities Conclusion PART IV... Future Outlook Future Trends for BPM BPM Future Outlook: Six Ideas Supporting the Knowledge Worker Fostering Collaboration Responding to Rapidly Changing Situations Working Any Time, Anywhere Developing Process Skills Giving Control to the Business Summary BPM for Knowledge Workers What Is a Business Process? What Is a Business Practice? Business Practice Example: Part Replacement SAP ASAP Methodology Summary Exploring Additional Future BPM and SOA Trends Business Process Management and Semantic Interoperability by Alexander Dreiling SOA for Business Networks Service Delivery Framework by Alistair Barros
6 A Requirements Framework for Semantic Business Process Modeling by Alistair Barros and Ingo M. Weber Process-Centric Decision Support by Mathias Fritzsche, Wasif Gilani, and Michael Picht Semantic Technologies: An Enabler of Intelligent Business Processes by Ivan Markovic Customer and Partner Views on the Future of BPM: A View from Two SAP Mentors by Twan van den Broek and Richard Hirsch Appendices A... IT Performance and Value Management Research B... Value Driver Processes Sorted After Strategic, Tactical, and Operational Levels C... Bibliography D... The Authors Index
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