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Snabe, Rosenberg, Møller, Scavillo
Business Process Management — the SAP Roadmap
2009, 411 pp., hardcover
ISBN 978-1-59229-231-8
Carsten Ziegler, Thomas Albrecht
BRFplus–Business Rule Management
for ABAP Applications
2010, approx. 350 pp., hardcover
ISBN 978-1-59229-293-6
Jan Rauscher, Volker Stiehl
The Developer’s Guide to the
SAP NetWeaver Composition Environment
2008, 365 pp., hardcover, with DVD
ISBN 978-1-59229-171-7
Stefan Hack, Markus A. Lindemann
Enterprise SOA Roadmap
2008, 417 pp., hardcover
ISBN 978-1-59229-162-5
Ann Rosenberg, Greg Chase, Rukhshaan Omar,
James Taylor, and Mark von Rosing
Applying Real-World BPM in
an SAP® Environment
Bonn (cid:31) Boston
Dear Reader,
Since the publication of SAP PRESS’s first book on Business Process Management in
early 2009, Business Process Management — the SAP Roadmap, BPM has proven to
be one of the most dynamic areas in the entire SAP arena: In an impressive manner,
SAP has managed to grow both the functionality of their technology products related
to BPM, as well as the awareness of and commitment to BPM in their customer
base.
This book’s contents and its developmental history greatly illustrate the dynamics
and breadth of the topic: Covering background, project approach, technology, and
customer use-cases, it describes SAP’s BPM approach comprehensively and from
many different perspectives. Having been involved in all of the conceptual discus-
sions around this book, I know how much time, work, and passion the five authors
have invested in interviewing customers, motivating contributors, and editing the
material towards the creation of a consistent publication. I am sure that this book
will help you, the reader, to get started with your BPM project.
We appreciate your business, and welcome your feedback. Your comments and
suggestions are the most useful tools to help us improve our books for you, the
reader. We encourage you to visit our website at www.sap-press.com and share your
feedback about this work.
Thank you for purchasing a book from SAP PRESS!
Florian Zimniak
Publishing Director, SAP PRESS
Galileo Press
Boston, MA
[email protected]
http://www.sap-press.com
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The Library of Congress has cataloged the printed edition as follows:
Applying real-world BPM in an SAP environment / Ann Rosenberg ... [et al.]. — 1st ed.
p. cm.
Includes bibliographical references and index.
ISBN-13: 978-1-59229-343-8
ISBN-10: 1-59229-343-3
1. Automation. 2. Industrial management—Data processing. 3. Performance technology. 4. Man-
agement information
systems. 5. SAP ERP. I. Rosenberg, Ann.
HD45.2.A67 2011
658.4’01—dc22
2010042699
ISBN 978-1-59229-343-8 (print)
ISBN 978-1-59229-877-8 (e-book)
ISBN 978-1-59229-878-5 (print and e-book)
© 2011 by Galileo Press Inc., Boston (MA)
1st edition 2011
Contents
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
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Contents
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
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Contents
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
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Contents
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
