... Foreword... 17... Introduction... 19 PART I... Business Process Transformation... 21 1... The Importance of a Business Model... 23 1.1... Explaining the Difference in Overall Output Performance... 23 1.2... Revisit the Enterprise Model During Economic Turmoil... 27 1.3... Core Competitive and Core Differentiated Positioning... 29 1.4... A Historic View of Business Models... 31 1.4.1... The Development of Business Model Concepts... 35 1.4.2... Business Model Component Development... 36 1.5... New Form of the Business Model Concept... 40 1.5.1... Resources... 43 1.5.2... Capabilities and Abilities... 44 1.6... The Logic of a Business Model Framework Based on Competencies... 46 1.6.1... Flexible and Free Connection of the Competencies... 48 1.6.2... Consistency and Union of the Competencies... 49 1.7... Organizing Business Competencies... 49 1.8... Summary and Conclusion... 52 2... Business Model Transformation Toward the Service-Oriented Enterprise... 55 2.1... Adaptation of the Service-Oriented Enterprise... 56 2.1.1... Adaptation Driver: Increased Service Orientation... 58 2.1.2... Adaptation Driver: Networked Business... 58 2.1.3... Adaptation Driver: Power-Shift from Supply- to Demand-Side... 59 2.1.4... Service-Oriented Enterprise as Goal Transformation as Journey... 59 2.2... Business Transformation Change Levers... 60 2.2.1... Change Lever: Customer Offering... 61 2.2.2... Change Lever: Business Model... 62 2.2.3... Change Lever: Value Creation Coordination... 63 2.3... Business Transformation Case Studies... 64 2.3.1... Case Study: Rolls Royce Total Care... 64 2.3.2... Case Study: Arvato Lead Logistics Services... 65 2.3.3... Case Study: Hewlett Packard Managed Printing Solutions... 66 2.3.4... Lessons Learned from the Cases... 67 2.4... Information Technology as Dynamic Capability of Business Enablement... 69 2.5... Process-Centric IT Lifecycle Management... 73 2.5.1... Closing the Loop of Business Process Management... 73 2.5.2... Accelerating the Process Lifecycle... 75 2.6... Reaping the Promised Value of Reusing Information and Services... 77 2.7... Summary and Recommendations... 79 3... Practical Example: How to Develop Performance and Value Drivers... 85 3.1... The Need for Performance and Value Creation... 86 3.2... Performance and Value Drivers... 88 3.2.1... Value Planning and Identification... 92 3.2.2... Value Creation... 94 3.3... Dimensions of PPI Measurement... 101 3.4... Summary and Conclusions... 102 4... The Holistic Approach: Combining BPM with Value and Performance Management, Enterprise Architecture, Governance, and SOA... 105 4.1... Applying the Different Approaches... 106 4.2... Innovate Your EA Framework with BPM and Value and Performance Management Principles... 107
4.3... Solution Transformation Harmonizing Enterprise Architecture, BPM, and SOA... 114 4.4... Summary and Conclusions... 117 5... Conclusion... 121 PART II... BPM Case Studies from the Real World... 123 6... Observing How SAP Customers Approach BPM: The Gap between Business and IT in BPM Projects... 125 6.1... BPM Usage Clusters in Industry and Application Use Cases... 127 6.1.1... Most Common Industries Adopting BPM... 127 6.1.2... Most Common Applications for BPM... 128 6.2... Typical Business Requirements Satisfied by BPM... 129 6.2.1... Articulating and Prioritizing Business Goals and Problems... 129 6.2.2... Qualifying Questions to Instate BPM Projects... 130 6.2.3... Orchestrating Dependent Actions in a Sequence... 130 6.2.4... Orchestrating Actions that Bridge Multiple Systems... 131 6.2.5... Orchestrating Actions Between Organizations... 132 6.2.6... Architecting Processes for Change... 132 6.2.7... Process-Specific User Interfaces... 133 6.2.8... Measuring and Monitoring Business Processes... 134 7... First Applications: Enterprise Information Management... 135 7.1... INVISTA: Enabling Cross-System Master Data Management... 136 7.1.1... Background... 137 7.1.2... BPM Solution... 138 7.2... Ericsson: Using Business Rules to Enable Globalization of Supplier Master Data Governance... 141 7.2.1... Background... 142 7.2.2... BPM Solution... 143 7.3... SAP IT: Accelerating Postmerger Data Enrichment and Migration... 150 7.3.1... Background... 150 7.3.2... BPM Solution... 154 8... Industry-Specific Processes... 161 8.1... Patrimonio Hipotecaria: Supporting Unique Mortgage Processes Attached to SAP for Banking... 163 8.1.1... Background... 164 8.1.2... BPM Solution... 166 8.2... Coca-Cola Erfrischungsgetränke AG: Promotion Material Planning and Procurement as an Extension of SAP Trade Promotion Management... 171 8.2.1... Background... 171 8.2.2... BPM Solution... 174 8.3... GISA: Increased Competition in Utilities Demands Efficient Customer Service Connections... 179 8.3.1... Background... 179 8.3.2... BPM Solution... 181 8.4... Siemens IT Solutions and Services: Balancing Standardization and Customizability in a New Solution... 184 8.4.1... Background... 184 8.4.2... BPM Solution... 186 8.5... RS Components: Automating Supply Chain Collaboration for Inventory Planning and Supplier Performance Management... 189 8.5.1... Background... 190 8.5.2... BPM Solution... 191
9... BPM, Business Transformation, and Continuous Process Improvement... 197 9.1... KAESER KOMPRESSOREN: Transforming from a Products Company to a Service Company... 197 9.1.1... Background... 198 9.1.2... BPM Solution... 199 9.2... Braskem S.A.: Realizing the Value of Efficiency and Visibility in Supplier Processes... 205 9.2.1... Background... 206 9.2.2... BPM Solution... 209 10... Good Ideas for BPM... 217 10.1... Public Sector: Potholes and Green Area Maintenance Taxpayers Get More for Their Buck... 217 10.1.1... Background... 218 10.1.2... BPM Solution... 221 10.2... Airline: Streamlining the Maintenance Process for the Transportation Industry with BPM... 227 10.2.1... Background... 228 10.2.2... BPM Solution... 231 11... Planning for BPM Transformation... 235 11.1... Hospira: Integrating Architecture to Become Process-Centric... 235 11.1.1... Company Profile... 236 11.1.2... Need for Business Process Management Discipline... 237 11.1.3... Architecture Practice and BPM... 238 11.1.4... BPM Solution... 241 11.1.5... BPM Center of Excellence (CoE)... 246 11.1.6... Building a BPM Community of Practice... 249 11.1.7... Lessons Learned... 249 11.1.8... What s Ahead?... 250 11.2... Danish Defense: Value Drivers in Corporate Businesses... 251 11.2.1... The Importance of Having the Right Business Model in Place... 253 11.2.2... The Need to Describe the Business Model... 255 11.2.3... The Need for Business Governance... 257 11.2.4... Implementing BPM in the Danish Defense... 268 11.2.5... BPM and Core Business... 282 11.2.6... Danish Armed Forces BPM and Technology Delivery... 284 11.2.7... Terminology and Conventions... 287 11.2.8... Technology Delivery... 290 11.2.9... Implementation of Change... 291 11.2.10... Conclusion... 293 12... Conclusion... 295 PART III... BPM Anatomy for Implementations... 297 13... Methodology and Governance... 299 13.1... SOA Survey... 300 13.1.1... Feedback Survey for the Methodology... 300 13.1.2... Key Observations and Trends in SOA Projects... 301 13.1.3... Summary... 308 13.2... How to Combine Business Modeling and Process Modeling... 308 13.2.1... Business Model Innovation and Optimization... 309 13.2.2... How To Create Value in Connecting the Business Model and Processes... 309 13.2.3... The Limitation of Having Only a Process Focus... 311
13.2.4... The Holistic Approach Creating Value by Connecting the Business Model to the Processes... 315 13.2.5... Business Model Approach to Connecting Strategy to Business Model and Business Model to Operational Model (Processes)... 316 13.2.6... Process Identification and Harmonization on the Strategic Level... 324 13.2.7... Process Identification and Harmonization on the Tactical Level... 325 13.2.8... Harmonization through a Simple Pattern Using the ICASIO Approach... 327 13.2.9... Definition and Validation of Process Step Variants Using the RACI Model Approach... 329 13.2.10... Process Identification and Harmonization on the Operational Level... 332 13.2.11... Conclusion... 337 13.3... ASAP Methodology 7 Core... 339 13.3.1... Project Preparation... 342 13.3.2... Business Blueprint... 353 13.3.3... Realization... 363 13.3.4... Final Preparation, Go-Live Support, and Run... 377 13.4... Business Add-Ons to ASAP... 387 13.4.1... Business Add-Ons to ASAP a New Flavored Approach... 388 13.4.2... Tools for Applying Business Add-Ons to ASAP... 393 13.4.3... Business Add-Ons to ASAP Methodology, Governance Frameworks, and Implementation Technology Content: Part I... 398 13.4.4... Business Add-Ons that Deliver Methodology, Governance Frameworks, and Implementation Content: Part II... 408 14... BPM Tools From Modeling to Execution... 413 14.1... Composite Development Architecture Guidelines... 414 14.1.1... Value Proposition of SAP NetWeaver CE... 414 14.1.2... Platform Overview... 414 14.1.3... Structure of Composites... 419 14.1.4... Separation of Functionality... 443 14.1.5... SOA Pattern... 463 14.1.6... Conclusion... 474 14.2... Highlights of the Innovation Provided by SAP NetWeaver BPM and BRM... 475 14.2.1... Business Analyst Experience... 475 14.2.2... Process Developer Experience... 476 14.2.3... Improved Business Insight... 478 14.2.4... Interoperability with SAP Applications... 478 14.2.5... Interoperability with Other Task User Interfaces... 479 14.3... Handling Decisions and Business Rules in a BPM Approach... 480 14.3.1... The Power of Decisioning... 481 14.3.2... Identifying Operational Decisions... 486 14.3.3... Implementing Decisions with Business Rules... 492 14.3.4... Best Practices in Decision Management... 499 14.3.5... Governance... 508 14.3.6... Managing the Organizational Implications... 511 14.4... Business Rules Management from SAP... 513 14.4.1... Roots of Business Rule Framework Plus... 513 14.4.2... Roots of SAP NetWeaver BRM... 513 14.4.3... Business Rule Framework Plus... 513 14.4.4... SAP NetWeaver Business Rules Management... 529 14.4.5... Usage Recommendations... 541 14.5... Simple Sample Application for Enterprise Service Consumption... 545
15... Process-Based Implementation Content... 553 15.1... Business Add-Ons to ASAP that Deliver Implementation Content... 554 15.1.1... Business Add-On to ASAP Delivering Point of Sales Implementation Content... 555 15.1.2... Business Add-Ons to ASAP that Deliver Small SOA/BPM-Based Implementation Content Packages... 559 15.2... SAP Rapid Deployment Solutions... 563 16... Enablement and Communities... 565 16.1... Enablement: People as Key Success Factor... 566 16.1.1... The Link Between IT and Business... 567 16.1.2... Role-Based Education for Organizational Performance... 568 16.1.3... Roles and Required Skills... 571 16.1.4... Summary... 574 16.2... Enablement: SAP University Alliances BPM Curriculum... 574 16.3... Enablement: Starter Kit for Business Process Management, an Add-On to ASAP... 576 16.3.1... Benefits and Target Audience... 576 16.3.2... Navigating Through the Starter Kit for BPM, an Add-On to ASAP... 577 16.4... Enablement: SOA KIT, an Add-On to ASAP... 579 16.5... Enablement: SOA CIO Guide Abstract... 582 16.5.1... Solution Space and Key Capabilities... 582 16.5.2... Reference Architectures and Maturity Model... 584 16.5.3... SAP Product Implementation Guidance... 596 16.5.4... Trends and Roadmap... 597 16.5.5... Conclusion... 597 16.6... Enablement: Value Prototyping... 598 16.7... Enablement: SAP Value Partnership... 600 16.8... Enablement: Composite in a Day Workshop... 600 16.9... Enablement: Communities... 604 17... Conclusion... 607 PART IV... Future Outlook... 613 18... Future Trends for BPM... 615 18.1... BPM Future Outlook: Six Ideas... 615 18.1.1... Supporting the Knowledge Worker... 616 18.1.2... Fostering Collaboration... 616 18.1.3... Responding to Rapidly Changing Situations... 617 18.1.4... Working Any Time, Anywhere... 617 18.1.5... Developing Process Skills... 618 18.1.6... Giving Control to the Business... 618 18.1.7... Summary... 619 18.2... BPM for Knowledge Workers... 619 18.2.1... What Is a Business Process?... 619 18.2.2... What Is a Business Practice?... 622 18.2.3... Business Practice Example: Part Replacement... 625 18.2.4... SAP ASAP Methodology... 627 18.2.5... Summary... 629 18.3... Exploring Additional Future BPM and SOA Trends... 629 18.3.1... Business Process Management and Semantic Interoperability by Alexander Dreiling... 630 18.3.2... SOA for Business Networks Service Delivery Framework by Alistair Barros... 631
18.3.3... A Requirements Framework for Semantic Business Process Modeling by Alistair Barros and Ingo M. Weber... 632 18.3.4... Process-Centric Decision Support by Mathias Fritzsche, Wasif Gilani, and Michael Picht... 633 18.3.5... Semantic Technologies: An Enabler of Intelligent Business Processes by Ivan Markovic... 634 18.3.6... Customer and Partner Views on the Future of BPM: A View from Two SAP Mentors by Twan van den Broek and Richard Hirsch... 635... Appendices... 637 A... IT Performance and Value Management Research... 639 B... Value Driver Processes Sorted After Strategic, Tactical, and Operational Levels... 641 C... Bibliography... 657 D... The Authors... 673... Index... 687