Applying Real-world BPM in an SAP Environment

Greg Chase is an SAP mentor and is director of solution marketing for business process management (BPM) at SAP. Greg's areas of expertise include customer use cases and solution development using a BPM approach, value engineering in a BPM context, and BPM for enterprise information management (EIM). He is responsible for working with SAP partners to create and position service offerings utilizing SAP developer technologies. Greg has been in the software industry for over 20 years at various startup companies and global leaders, including SAP and Oracle. He holds a bachelor's degree from the University of California at Davis. Rukhshaan (Ruks) Omar is an independent global marketing specialist responsible for industry positioning for SAP NetWeaver BPM. Ruks has compiled a comprehensive collection of industry-relevant BPM use cases based on analyzing early projects from adopters and market research. She has more than 20 years of IT experience working with leading global software vendors. She holds degrees in computer science and mathematics from the University of Durban-Westville and the University of South Africa. James Taylor is founder and CEO of Decision Management Solutions, a California-based consulting firm. Ann Rosenberg is a Senior Strategic Business Process Management Consultant, working for the SAP Process Office. The Process Governance Team within the SAP Process Office has created the BPM method that links to SAP's enterprise SOA strategy. Mark von Rosing lectures Leadership and Business Economics at the Copenhagen Business School, Denmark.

. 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

. 1.5. New Form of the Business Model Concept. 40

. 1.6. The Logic of a Business Model Framework Based on Competencies. 46

. 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

. 2.2. Business Transformation Change Levers. 60

. 2.3. Business Transformation Case Studies. 64

. 2.4. Information Technology as Dynamic Capability of Business Enablement. 69

. 2.5. Process-Centric IT Lifecycle Management. 73

. 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

. 3.3. 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

. 6.2. Typical Business Requirements Satisfied by BPM. 129

7. First Applications: Enterprise Information Management. 135

. 7.1. INVISTA: Enabling Cross-System Master Data Management. 136

. 7.2. Ericsson: Using Business Rules to Enable Globalization of Supplier Master Data Governance. 141

. 7.3. SAP IT: Accelerating Postmerger Data Enrichment and Migration. 150

8. Industry-Specific Processes. 161

. 8.1. Patrimonio Hipotecaria: Supporting Unique Mortgage Processes Attached to SAP for Banking. 163

. 8.2. Coca-Cola Erfrischungsgetränke AG: Promotion Material Planning and Procurement as an Extension of SAP Trade Promotion Management. 171

. 8.3. GISA: Increased Competition in Utilities Demands Efficient Customer Service Connections. 179

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. 8.4. Siemens IT Solutions and Services: Balancing Standardization and Customizability in a New Solution. 184

. 8.5. RS Components: Automating Supply Chain Collaboration for Inventory Planning and Supplier Performance Management. 189

9. BPM, Business Transformation, and Continuous Process Improvement. 197

. 9.1. KAESER KOMPRESSOREN: Transforming from a Products Company to a Service Company. 197

. 9.2. Braskem S.A.: Realizing the Value of Efficiency and Visibility in Supplier Processes. 205

10. Good Ideas for BPM. 217

. 10.1. Public Sector: Potholes and Green Area Maintenance -- Taxpayers Get More for Their Buck. 217

. 10.2. Airline: Streamlining the Maintenance Process for the Transportation Industry with BPM. 227

11. Planning for BPM Transformation. 235

. 11.1. Hospira: Integrating Architecture to Become Process-Centric. 235

. 11.2. Danish Defense: Value Drivers in Corporate Businesses. 251

12. Conclusion. 295

PART III. BPM Anatomy for Implementations. 297

13. Methodology and Governance. 299

. 13.1. SOA Survey. 300

. 13.2. How to Combine Business Modeling and Process Modeling. 308

. 13.3. ASAP Methodology 7 Core. 339

. 13.4. Business Add-Ons to ASAP. 387

14. BPM Tools -- From Modeling to Execution. 413

. 14.1. Composite Development Architecture Guidelines. 414

. 14.2. Highlights of the Innovation Provided by SAP NetWeaver BPM and BRM. 475

. 14.3. Handling Decisions and Business Rules in a BPM Approach. 480

. 14.4. Business Rules Management from SAP. 513

. 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

. 15.2. SAP Rapid Deployment Solutions. 563

16. Enablement and Communities. 565

. 16.1. Enablement: People as Key Success Factor. 566

. 16.2. Enablement: SAP University Alliances BPM Curriculum. 574

. 16.3. Enablement: Starter Kit for Business Process Management, an Add-On to ASAP. 576

. 16.4. Enablement: SOA KIT, an Add-On to ASAP. 579

. 16.5. Enablement: SOA CIO Guide -- Abstract. 582

. 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

. 18.2. BPM for Knowledge Workers. 619

. 18.3. Exploring Additional Future BPM and SOA Trends. 629

. 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