Next Generation BPM. Michael Hill Product Manager SAP Technology Group Market Development and Enablement SAP Labs, LLC

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1 Next Generation BPM with SAP NetWeaver Composition Environment Business Process Modeling with SAP NetWeaver Composition Environment: Overview and Outlook (TechTour) Michael Hill Product Manager SAP Technology Group Market Development and Enablement SAP Labs, LLC

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 2009 / SAP TechTour 09 / BPM101 Page 2

3 Business Process Management (BPM) covers both the automated and manual perspective Manual Activities Typically >80% End to End process spans manual and automated activities Automated Activities Typically <20% Of the 20% of Automated Activities Processes that deliver competitive advantage and evolve regularly (Primary SOA Candidates) Typically <20% Differenciating Activities Processes that should be as cost effective as possible Typically >80% Standard Activities

4 Manage Enterprise Business Processes Application Core Processes 1 Define & standardize core business processes Leverage packaged Business Applications Adopt service-enabled industry-specific best practices CRM Application Core Processes SRM SCM PLM ERP Non-SAP Application Core Processes (Business Applications) Core business processes, covered by SAP Business Suite Expose business logic via Service Interfaces / GDT RFC / BAPI Business Objects / Events SAP 2009 / Page 4

5 Manage Enterprise Business Processes Composite Business Processes (with Galaxy) 2 Compose new innovative business process extensions Integrate, adapt and extend core business processes Services & event enablement - provisioning and consumption End-to-end Process Orchestration Composite Business Processes (using SAP NetWeaver BPM) Extend core applications with human-centric, rule-based workflow logic Use standard interfaces of SAP (GDT s, Enterprise Services, RFC) Might contain own business logic beyond core applications Composition, Reporting and Analysis SAP Business Suite Customer Supplier CRM SRM SCM PLM ERP 3 rd party Integration & Information Management EhP EhP SAP 2009 / Page 5

6 SAP s Roadmap for Business Process Management (BPM) Methodology and Governance STRATEGY SET-UP TRANSITION CONTINUOUS IMPROVEMENT LINK TO STRATEGY DEFINE BUILDING BLOCKS DEFINE BASICS DEVELOP ANALYTICS CREATE BASIS PERFORM ANALYSIS ADD PROCESS-BASED REWARDS + EXPAND REPORTING + CHOOSE PATH CREATE METHODS DEFINE PORTFOLIO ALLOCATE BUDGET + MONITOR FIT-GAP HARMONIZE TERMS OPTIMIZE PROCESSES PERFORM AUDITS COMMUNICATE & TRAIN MANAGE CHANGE BUILD PROCESS-CENTRIC IT BPM Technology BPX Certification and Community

7 Which road do you prefer to take in the way to process excellence? SAPBPM Roadmap (Technology)

8 SAP NetWeaver Business Process Management Delivered with SAP NetWeaver Composition Environment Common use cases / patterns Composition of own practices State-of-the art business process composition Embedded in an integrated composition environment Superior integration with SAP Business Suite Direct path from business view to process execution Nothing lost in translation Dynamic role-based views Single active model Flexible execution Business Rules management (BRM) Embedded rules in process to drive process agility App-Centric Non-App-Centric Automate processes where users are interacting with multiple systems: Employee on-boarding, vacancy-to-hire, asset management, budget preparation, forecasting, and automated procurement process Handle critical business exceptions and events: Project issue management, high-value claim, out-of-stock, and hourly worker exceptional scheduling Processes that involve paper forms and approvals: Loan applications, new customer accounts, and vacation requests People-centric processes: Case management, claims, self-service, multi-channel access, and promotion crew request

9 SAP NetWeaver Business Process Management Embedded in SAP NetWeaver Composition Environment SAP NetWeaver Business Process Management Process Composer Process Desk Process Server Comprehensive process management Unifying human and system automation processing steps Business Process is more than just service orchestration Composition of event-driven processes Seamless combination of service, event and human task Enterprise services consumption Tightly integrated with native Business Rules Management Benefits of an integrated composition environment Model-driven development Integrated toolset Out-of-the-box ESR integration Lifecycle management SAP 2009 / Page 9

10 SAP NW BRM & SAP NW BPM Integration Overview Rules Composer Rules Engine Process Rules Management Desk Rules in BPM Some Use cases Complex rule based decisions (Pricing, Credit Decisions etc.) Responsibility determination ( Rule based Task Assignment) Recognition of business events Routing rules (Receiver Determination) Parameter thresholds & tolerance (constraint rules) Many Ways to Model Rules Model with Rules Composer & use as a rules service Model in the context of a business process And, Many Ways to Integrate Rules services through an automated activity Use rules as mapping transforms Use rules through EJB functions Use rules from human-task user interfaces Use rules as gateway conditions

11 Investment Approval Process (IAP) SAP 2007 / Page 11

12 SAP 2009 / SAP TechTour 09 / <Session ID> Page 12 DEMO

13 Germany s Coca-Cola bottler Considers SAP NetWeaver BPM to support future BPM vision React flexibly to local business needs - support localization of global SAP Business Suite roll out for Coke bottlers We expect that SAP NetWeaver BPM will help to significantly reduce the time to implement new and change existing business processes. Alexander Grobe Manager Innovation and Enterprise Architecture Easy implementation of rules in business processes - change business rules fast and flexibly and even without coding Faster process innovation cycle implement innovate new business processes on top of SAP Business Suite

14 Germany s Coca-Cola bottler Productive usage of SAP NetWeaver BPM Promotion Planning

15 SAP NetWeaver GISA German IT service provider creates process templates for the utilities industry React flexibly to new requirements De-regulation in the power industry drives the need for utility companies to implement new, flexible processes We use SAP NetWeaver BPM to create innovative process templates to meet utilityspecific requirements, for example to streamline the process of managing customer inquiries for new electricity connections. Hans-Ludwig Reinecke SAP Manager GISA GmbH Create innovative processes As a showcase, GISA created a process template that streamlines customer inquiries for new electricity connections via a customer portal Leveraging a SOA-based implementation approach SAP NetWeaver BPM allows GISA to flexibly orchestrate enterprise services and combine them with human interactions in one process model

16 Focus Areas SAP FOCUS AREAS Process Composition Common Process Layer Process Visibility Compose new innovative business process extensions Enable end-to-end process transparency on application core and process extensions Improve process visibility to enable process optimization OWN PRACTICE + BEST PRACTICE + BEST INSIGHT

17 Future Direction Business Process Management FOCUS AREAS Process Composition Common Process Layer Process Visibility Compose new innovative business process extensions Enable end-to-end process transparency on application core processes and process extensions Improve process visibility to enable process optimization RELEASE PLAN SAP NetWeaver CE 7.1, EHP1 SAP NetWeaver 7.2 DETAILS Process Composition Planned Enhanced UI technology support Enhanced business rules mgmt Business event consumption PLANNED Future Direction Additional UI technology support Rich client for business analyst Platform openness via APIs VISION BPM centric business applications Online design collaboration Industry specific applications Common Process Layer Reference content for application core processes via SAP Solution Manager Enhanced discovery of SOA extension points Customer authoring for business processes Process extension through composition along business process context Model driven business configuration Broader SAP process content offering Process Visibility Process reporting Integration to SAP NetWeaver BW Pre-defined BWContent Process analytics Enhanced BI front-end tooling Business activity monitoring End-to-end process monitoring & analytics (core & extension) Actionable process analytics 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.

18 Process Composition Details SAP NetWeaver Business Process Management in 2009 Process composer Process server Process desk Desk Direct path from business view to process execution Model and execute rule-based composite business processes Business-friendly graphical modeler based on business process modeling notation (BPMN) Combine human interaction and system integration in one model Support key process concepts (workflow, event, task, rules, context, roles, and UI) throughout their life cycle Process UI generation out of the process context (data types) Process reporting with defined reporting points embedded in the process model End-to-end eventing integrated with SAP local events (event provisioning) and correlated to the process directly (including intermediate message events)

19 Future direction SAP NetWeaver BPM Enhanced UI technology support Define UI requirements out of a process context New UI gets automatically generated Disclaimer: This slide 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.

20 Future direction SAP NetWeaver BPM Enhancement of analytical reporting capabilities Ability to create a new reporting activity out of a process context Disclaimer: This slide 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.

21 SAP NetWeaver Business Rules Management and SAP NetWeaver Business Process Management Integration Overview Rules composer Rules engine Rules Process management Desk Embedded rules in process to drive process agility Robust tool for central business rules management Provides a separate graphic modeling tool to model complex rule execution sequences Provides a web interface for business users to modify simple if-then rules and decision tables and also manage different versions Various ways of modeling rules: Model with rules composer and use as a rules service Model in the context of a business process And, many ways to integrate: Rules services through an automated activity Use rules as mapping transforms Use rules through EJB functions Use rules from human-task user interfaces Use rules as gateway conditions

22 Future direction SAP NetWeaver BRM Business friendly rules management environment Web-based access to business rules for Business Process Experts Disclaimer: This slide 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.

23 Personas Across the Enterprise Executive Business IT Business User Business Process Experts (BPX) Business/IT waterline Business Expert Business Analyst (BA) Business Manager Design collaboration vertical layers of abstraction horizontal multi-design user support threaded model discussions model differencing Process Architect (PA) Info Architect (IA) Application Architect IT Admin Application Consultant IT Services Developer IT Developer Hard Core

24 Multiple Views on Business Processes Executive LoB Manager Business Analyst Process Architect Major phases KPI Dashboards Analytics plus Task sequences Parallelism plus Task & Business Event Business rules Business entities plus Task & event details Business rule details Business object details Exception handling Business drives processes management Business affects process change within IT sandbox Design collaboration improves process quality and design productivity Discoverability from IT to business Structured requirements from business to IT Design on several level of abstraction driving towards executable models SAP 2009 / Page 24

25 Next Step: Common Process Layer Business Process Management for Core and Composite Processes Process transparency Process visibility Executive Common process layer Business scenario LoB SAP Business Suite Process composition Specification model Analyst Repository (federated) Event infrastructure Execution model Developer ESB Common process layer SAP reference content including extension points Process modeling across core and composite processes Extending application core processes along business process context One model, different views for different personas Common monitoring, life-cycle management and process performance management

26 Future direction SAP NetWeaver BPM Enhance the discovery experience for SAP extension points Gain a common view and access to SAP s business process reference content and its extension points Disclaimer: This slide 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.

27 Next Opportunity: Combining Composite Business Processes with Discovery and Analysis Process visibility Own practices and best insight Process reporting for composite business processes Reporting activities embedded in business process context Integration with SAP NetWeaver BW (predelivered data extractors) Directly consumable in Xcelsius and Crystal reports Invoke dashboards out of a process context Leveraging native UI technology within SAP NetWeaver Composition Environment (VC, Web Dynpro) as well as Xcelsius Future enhancements: Process analytics for business process management (observed activities) Actionable process analytics Composite application SAP technology portfolio (SAP NetWeaver and SAP BusinessObjects) Discovery Composition and & Analysis analysis Information Integration Management management Process Information Foundation foundation Foundation foundation Unifying life-cycle management 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.

28 Thank you! SAP 2009 / SAP TechTour 09 / <Session ID> Page 28

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