Business Process Management - the SAP Roadmap

Jim Hagemann Snabe is Corporate Officer of SAP and General Manager of SAP's Product & Technology Unit focusing on the development of SAP's Business Suite and 26 Industry Solutions worldwide. With more than 16 years experience in consulting, sales, and development, Jim has intimate knowledge of the trends and challenges driving the software marketplace. Snabe received a master's degree in operational research from the Aarhus School of Business in Denmark. He has published articles and lectures on various business topics, from technology to accounting. 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. Professor Charles Moller conducts research in business process innovation and the connection between BPM and SOA at the Aalborg University, Denmark. Mark Scavillo is Head of Process Governance, SAP Process Office, at SAP AG. The Process Governance Team within the SAP Process Office has created the BPM method that links to SAP's enterprise SOA strategy.

Foreword ... 15 Preface ... 17 1 ... Introduction ... 21 ... 1.1 ... What are the benefits of BPM? ... 22 ... 1.2 ... What Is BPM? ... 25 ... 1.3 ... Business and BPM ... 27 ... 1.4 ... Technology and BPM ... 29 ... 1.5 ... People and BPM ... 30 ... 1.6 ... The BPM Journey and the Structure of this Book ... 31 2 ... The Evolution of Process Management ... 35 ... 2.1 ... Scientific Management ... 35 ... 2.2 ... The Toyota Production System ... 36 ... 2.3 ... Total Quality Management ... 37 ... 2.4 ... Business Process Reengineering ... 43 ... 2.5 ... Business Process Management ... 44 ... 2.6 ... The Future of Process Management ... 50 3 ... Enterprise Architecture and Business Strategy ... 53 ... 3.1 ... What Is Enterprise Architecture? ... 54 ... 3.2 ... Enterprise Architecture Maturity ... 56 ... 3.3 ... Enterprise Architecture as a Strategy ... 59 ... 3.4 ... BPM and Business Strategy ... 62 4 ... Enabling Technologies for BPM ... 65 ... 4.1 ... What Is a Business Process Management System? ... 65 ... 4.2 ... The Emergence of Enterprise Systems ... 67 ... 4.3 ... Moving Towards the Second Generation of ERP ... 70 ... 4.4 ... ERP/II Systems ... 73 ... 4.5 ... Moving Towards a Business Process Platform ... 78 5 ... The BPM Transformation ... 83 ... 5.1 ... Grundfos Case Study: BE -- THINK -- INNOVATE ... 84 ... 5.2 ... A New Value Proposition ... 88 ... 5.3 ... A Comprehensive Framework for BPM ... 91 6 ... Introduction to the BPM Roadmap ... 95 7 ... The BPM Strategy ... 101 ... 7.1 ... Link to Strategy ... 102 ... 7.2 ... Define Building Blocks ... 105 ... 7.3 ... Choose Path ... 108 ... 7.4 ... Monitor Fit-Gap ... 110 ... 7.5 ... Summary and Key Points ... 112 8 ... The BPM Set-up ... 113 ... 8.1 ... Define Basics ... 114 ... 8.2 ... Develop Analytics ... 124 ... 8.3 ... Create Methods ... 134 ... 8.4 ... Harmonize Terms: Process Terminology ... 154 9 ... The BPM Transition ... 157 ... 9.1 ... Create Basis ... 158 ... 9.2 ... Perform Analysis ... 181 ... 9.3 ... The Portfolio ... 191 ... 9.4 ... Optimize Processes ... 199 10 ... Continuous Improvement ... 219 ... 10.1 ... Process-Based Rewards ... 220 ... 10.2 ... Expand Corporate Business Reporting ... 221 ... 10.3 ... Process-Based Budget and Cost Allocations ... 222 ... 10.4 ... Process Audits ... 224 ... 10.5 ... Summary and Key Points ... 225 11 ... Supporting Activities ... 227 ... 11.1 ... Build a Process-Centric IT ... 228 ... 11.2 ... Manage Change ... 232 ... 11.3 ... Communicate and Train ... 236 12 ... Summary ... 247 13 ... The Value of Bringing BPM and BPP Together ... 251 ... 13.1 ... Business Needs to Understand How SOA Can Enable BPM ... 252 ... 13.2 ... The Basic Step to Bring BPM and SOA Together ... 254 ... 13.3 ... Establish the Correct Information Base in Terms of SOA-Relevant Processes ... 259 ... 13.4 ... Specifying Business Service Contracts Including Required Quality Criteria ... 261 ... 13.5 ... Ensuring an Integrated Business and IT View During Process Modeling ... 266 ... 13.6 ... Ensuring the Link Between BPM and SOA Governance ... 268 14 ... Arla Case Study ... 269 ... 14.1 ... The Three Generations ... 270 ... 14.2 ... Summary ... 282 15 ... SAP's View on Business Process Management ... 285 ... 15.1 ... Innovation Without Disruption ... 285 ... 15.2 ... Business Network Transformation ... 287 ... 15.3 ... SAP's New BPM Methodology ... 308 16 ... Summary ... 315 17 ... Wyeth Pharmaceuticals: In Pursuit of Process Excellence ... 319 ... 17.1 ... Company Profile ... 319 ... 17.2 ... Organizational Background ... 320 ... 17.3 ... BPM Philosophy ... 321 ... 17.4 ... The History of BPM Within TO&PS ... 324 ... 17.5 ... Approach to BPM: Setting the BPM Vision ... 327 ... 17.6 ... Executing the BPM Vision ... 329 ... 17.7 ... Summary ... 339 18 ... Conclusion ... 341 ... 18.1 ... BPM -- A New Strategic Context ... 341 ... 18.2 ... The BPM Roadmap ... 342 ... 18.3 ... BPP -- the BPM Enabler ... 343 A ... List of Abbreviations ... 347 B ... Typical Questions ... 351 ... B.1 ... Part 1: Business Process Management: A New Strategic Context? ... 351 ... B.2 ... Part 2: The BPM Roadmap ... 353 C ... Summary of Experiences ... 365 D ... Bibliography ... 381 E ... Authors ... 389