Business Process Improvement using
Business Process Analytics
Mark Cooling/SAP SSC (Ireland) Ltd.
July, 2012
© 2012 SAP AG. All rights reserved. 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.
© 2012 SAP AG. All rights reserved. 3
Key Take Aways Business Process Analytics tool & Business Process Improvement
Main target of Business Process Improvement is that you maximize the
value of your existing SAP solution
Business Process Analytics is a problem oriented SAP Solution
Manager tool that supports Business Process Improvement activities and
complements your existing SAP Business Warehouse/SAP
BusinessObjects reporting environment
SAP provides a Business Process Improvement methodology in order
to analyze critical process milestones in a systematic 9 step approach
Over 750 out-of-the-box key figures allow a fast technical Business
Process Analytics implementation within days so that the root cause
analysis is the main activity within a Business Process Improvement project
1
2
3
4
© 2012 SAP AG. All rights reserved. 4
Key Take Aways Business Process Analytics tool & Business Process Improvement
Main target of Business Process Improvement is that you maximize the
value of your existing SAP solution
Business Process Analytics is a problem oriented SAP Solution
Manager tool that supports Business Process Improvement activities and
complements your existing SAP Business Warehouse/SAP
BusinessObjects reporting environment
SAP provides a Business Process Improvement methodology in order
to analyze critical process milestones in a systematic 9 step approach
Over 750 out-of-the-box key figures allow a fast technical Business
Process Analytics implementation within days so that the root cause
analysis is the main activity within a Business Process Improvement project
1
2
3
4
© 2012 SAP AG. All rights reserved. 5
Motivation for Business Process Improvement Projects Benefits & Challenges
Goal Benefit Challenge
Transparency
Global transparency across
organizational units &
process variants
…increase process compliance and standardization by
reduction of process diversification and template
adherence.
Efficiency
Reduced process costs ... automate business processes and reduce manual
process inefficiencies and human errors. Avoid
systematic process exceptions.
Effectiveness
Higher customer
satisfaction, improve
working capital
…avoid delayed business documents (e.g. deliveries or
shipments) and financial losses (e.g. delayed invoices or
payments).
Clean-up
Better planning results &
more accurate business
reporting
…avoid business documents remaining in un-finished
status. Close all documents within the SAP system that
are closed from a business perspective.
Internal Audit
Higher reliability of financial
reporting & possible
detection of fraud
…avoid parked documents and open items in FI-AP and
FI-AR before PEC. Ensure that all SD invoices are
created and transferred to FI before PEC. Review
blocked payments in MM & FI.
© 2012 SAP AG. All rights reserved. 6
Focus & Value Areas for Company Success Mapping of example Key Figures
Customer Satisfaction Overdue Sales Orders
Sales Ordes with delivery block
Overdue outbound delivieries
Number of returns
Revenue / Receivables
Sales Orders & Deliveries without
invoice
Invoices not transferred to FI
Open & overdue items in FI-AR
Bank statements not posted
Inventory / Capital tie-up
Slow moving items
Materials with expired shelf life
Inspection lots w/o usage decision
Open & overdue reservations items
Cost / Payables
Number of credit memos (requests)
Open & overdue items in FI-AP
Blocked items for payment (cash
discount endangered)
Early payments
Supply Chain Planning Accuracy
Open & Overdue Purchase Requisition & Order items
Open & Overdue STO items (incl. stock in transit)
Open & Overdue Planned Orders
COGI errors
Prod. Orders overdue for release
Schedule lines initially not confirmed
Data Accuracy
Incomplete Sales Document items
Application Log errors
Update errors & ABAP dumps
Performance
Production / Process / PM Orders
without deletion flag
Transaction & job runtimes
Integration & Automation
Interface errors
Background job cancellations
Batch Input errors
Wo
rkin
g C
ap
ita
l Wo
rkin
g C
ap
ital
© 2012 SAP AG. All rights reserved. 7
IT Business Business Process
Stabilization (monitor interfaces & jobs)
Business Process
Improvement (based on document backlog)
Business Process
Improvement (based on internal benchmarks)
Minimize interface failures
Minimize errors or delays in
background processing
Maximize technical
performance
Avoid functional errors (e.g.
ABAP dumps, update errors)
Identify possible end-user
training gaps
Standardization issues
Close process design gaps
Adjust customizing and/or
configuration
Clean up old & open business
data
Lead Time calculation for
certain process steps
Analysis of Inventory (Slow
Moving Stock)
Supply Chain Analysis (STO
Value in Transit, STOs
without Deliveries)
Order Analysis (Returns,
Rejections, Incompleteness)
“Protect initial investment”
“Make most of initial investment & achieve optimum according to plan”
Business Process Monitoring for interfaces,
background jobs & cross-application
Business Process Analytics
Business Process Analytics
Business Process Operations Dashboards
Business Process Lifecycle Alert Monitoring, Analytics, Dashboards
© 2012 SAP AG. All rights reserved. 8
Key Take Aways Business Process Analytics tool & Business Process Improvement
Main target of Business Process Improvement is that you maximize the
value of your existing SAP solution
Business Process Analytics is a problem oriented SAP Solution
Manager tool that supports Business Process Improvement activities and
complements your existing SAP Business Warehouse/SAP
BusinessObjects reporting environment
SAP provides a Business Process Improvement methodology in order
to analyze critical process milestones in a systematic 9 step approach
Over 750 out-of-the-box key figures allow a fast technical Business
Process Analytics implementation within days so that the root cause
analysis is the main activity within a Business Process Improvement project
1
2
3
4
© 2012 SAP AG. All rights reserved. 9
Business Process Operations Architecture & Information Flow – High-level Overview
Data Storage
Collect SAP data for
Analytics
Data Source
Application
InfoCube
0SM_BPMRH
InfoCube
0SM_BPM Table
DSWP_BPM_ALERTS
Collect SAP & non-SAP data for
Monitoring
Extract
alert
data
Monitoring on
Analytics data
BPMon Trend
Analysis
BP Monitoring BP Analytics BP Op Dashboards
© 2012 SAP AG. All rights reserved. 10
Complementing your reporting environment Traditional Business KPI approach vs Business Process Analytics
Influencing factors
• Slow warehouse tasks
• Slow transportation
• Insufficient stock
Business KPIs (often %-based)
• Order fulfillment rate
• Days of Sales Outstanding
Key figures for respective
detailed measurement
“Top-down approach”
Out-of-the-box key figures from
BPMon / Analytics
• Overdue Sales Orders / Deliveries
• Incompletes SD documents
• Schedules initially not confirmed
Business Areas &
KPIs affected
Root Causes • Master Data
• Customizing
• End User
• Business Exception
“Bottom-up approach”
(Theoretically) Derive (Practically) Identify
Define Derive
© 2012 SAP AG. All rights reserved. 11
Key Take Aways Business Process Analytics tool & Business Process Improvement
Main target of Business Process Improvement is that you maximize the
value of your existing SAP solution
Business Process Analytics is a problem oriented SAP Solution
Manager tool that supports Business Process Improvement activities and
complements your existing SAP Business Warehouse/SAP
BusinessObjects reporting environment
SAP provides a Business Process Improvement methodology in order
to analyze critical process milestones in a systematic 9 step approach
Over 750 out-of-the-box key figures allow a fast technical Business
Process Analytics implementation within days so that the root cause
analysis is the main activity within a Business Process Improvement project
1
2
3
4
© 2012 SAP AG. All rights reserved. 12
Business Process Improvement Methodology Five phases of typical Six Sigma project (DMAIC)
Define BP Analysis by
Measure
Analyze
Control
Implement
Decide on Work Streams/
Processes to start with
Set up BP Analytics
Root Cause Analysis
Create Action Plan &
Execute Action Items
BP Monitoring should
show no red alerts
BP Analytics Trend
Analysis should show
decreasing trend
© 2012 SAP AG. All rights reserved. 13
Possible Work Streams To Start With Business Processes or Value Areas
Customer
Satisfaction
Revenue
Stream
Working
Capital
Supply Chain
Planning
Period End
Closing
Order to
Cash
Returns
Management
Procure to
Pay
Plan to
Produce
Maintain to
Settle
Open Items
Management
(FI)
Weak / indirect correlation Strong / direct correlation
© 2012 SAP AG. All rights reserved. 18
Business Process Analytics Functional Scope
SAP BW based Business Process Analytics
(Internal) Benchmarking
Age structure of document backlog
Trend analysis
Additional Business Process Analytics features with SAP Solution
Manager 7.1 Support Package 5 (requires ST-A/PI 01P on the backend system)
Advanced Benchmarking
Value Benchmarking
Selection variants / favorites can be stored
Filters on characteristics
© 2012 SAP AG. All rights reserved. 20
Business Process Analytics (< Solution Manager 7.1 SP5) Benchmarking
© 2012 SAP AG. All rights reserved. 21
Business Process Analytics (< Solution Manager 7.1 SP5) Age Structure
© 2012 SAP AG. All rights reserved. 22
Business Process Analytics (< Solution Manager 7.1 SP5) Trend Analysis
© 2012 SAP AG. All rights reserved. 23
Business Process Analytics (>= Solution Manager 7.1 SP5) Business Process Analytics - Filter
Analytics data can be filtered on several different characteristics
© 2012 SAP AG. All rights reserved. 25
Business Process Improvement Standardized Methodology with Business Process Analytics
Get Global Transparency
1
Identify Org Units to be analyzed
2
Identify Potential for old Data Reduction
3
Identify Root Causes (RC)
5
Create Frequency Diagram of RC
6
Perform Detail Analysis
4
Define Action Plan
7
Visualize Impact on Benefit/Value Categories
8
Control Achievements via Trend Analysis
9
© 2012 SAP AG. All rights reserved. 26
End User
Missing quantities that are not needed are not rejected
Business Process Improvement Example: Overdue Sales Orders – Identifying Systematic Issues
Key Figure
Overdue Sales Order
Technical Performance
Reporting Quality
Supply Chain Planning
Technical Exception
Functional error
Customizing
System expects deliveries where non are expected from business side
Master Data
Inactive Sales Organizations
Inactive Document Types
Customer Satisfaction
Revenue Stream
Business Exception
Key message: Systematic issues have mainly an influence on the value areas
„Technical Performance“, „Reporting Quality“ and „Supply Chain Planning“
© 2012 SAP AG. All rights reserved. 27
End User
Incomplete Sales Order
Business Process Improvement Example: Overdue Sales Orders – Real Exceptions
Technical Performance
Reporting Quality
Supply Chain Planning
Technical Exception
Cancelled background job
Erroneous interface
Customizing
Master Data
Planned dates calculated too ambitiously
Customer Satisfaction
Revenue Stream
Business Exception
Missing Stock
Delivery Block
Slow/delayed warehouse tasks
Slow/delayed transportation
Key message: Business exceptions have mainly an influence on the value areas
„Revenue Stream“ and „Customer Satisfaction“
Key Figure
Overdue Sales Order
© 2012 SAP AG. All rights reserved. 30
Key Take Aways Business Process Analytics tool & Business Process Improvement
Main target of Business Process Improvement is that you maximize the
value of your existing SAP solution
Business Process Analytics is a problem oriented SAP Solution
Manager tool that supports Business Process Improvement activities and
complements your existing SAP Business Warehouse/SAP
BusinessObjects reporting environment
SAP provides a Business Process Improvement methodology in order
to analyze critical process milestones in a systematic 9 step approach
Over 750 out-of-the-box key figures allow a fast technical Business
Process Analytics implementation within days so that the root cause
analysis is the main activity within a Business Process Improvement project
1
2
3
4
© 2012 SAP AG. All rights reserved. 31
Business Process Monitoring Functional Scope – High-level Overview
Application specific monitoring for
SAP ERP (SD, MM, PP, LE, WM, PM/CS, QM, FI) & SAP EWM
SAP CRM (Sales, Services, Customer Interaction Center; Marketing)
SAP APO (planning runs in DP, SNP, PP/DS, gATP/BOP)
SAP SRM (Self-service Procurement, Sourcing Cockpit)
Background Job monitoring for
Single background jobs or SAP BW Process Chains
Interface monitoring for
IDoc, BDoc, tRFC, qRFC, bgRFC, Batch Input, flat files, SAP PI
Cross-Application monitoring for ABAP dumps, Update errors, number range fill-level, Application Log entries
Performance monitoring for transactions and RFC processing
Industry specific monitor enhancements for
SAP Apparel and Footwear, SAP for Automotive, SAP for Banking, SAP for Retail, SAP for Utilities
Data Consistency monitoring for
SAP ERP, SAP CRM, SAP APO
Complete catalog of >750
standard out-of-the-box key
figures available under
http://service.sap.com/bpm >
Media Libary > Customer
Information > Key Figure
Overview
© 2012 SAP AG. All rights reserved. 32
Business Process Improvement Project Roadmap
Plan & Build Phase
Week
1 2 3 4 5 6 7 8-10 11-15 16-20 21-25
Positioning – Bus. Process Analysis / Benefit Case
– Prepare Management Workshop
– Workshop / Get Mgmt. Buy-in
Technical Readiness – Prepare Analytics in SolMan
– Authorization Concept
Organizational Readiness – Communication & Project Plan
Define – Define Scope / Select Key Figures
Duration: Activity Milestone: Activity Cut-off from Plan/Build to Run phase Duration: Work Package Milestone: Work Package
Duration: Parallel Activity outside initial scope
© 2012 SAP AG. All rights reserved. 33
Business Process Improvement Project Roadmap
Run Phase
Week
1 2 3 4 5 6 7 8-10 11-15 16-20 21-25
Measure – Set up Key Figures in BP Analytics
Analyze – Analyze Key Figures with BP Analytics
– Define corresponding Action Items
Implement – Implement defined Action Items
Control – Continuously follow Trend Analysis
with BP Analytics
Management Sign-off – Get sign-off for achieved
improvements
Duration: Activity Milestone: Activity Cut-off from Plan/Build to Run phase Duration: Work Package Milestone: Work Package
Duration: Parallel Activity outside initial scope
© 2012 SAP AG. All rights reserved. 34
Business Process Improvement Best Practice: Organizational Structure for Business Process Improvement
• Definition of Key Figures &
Filter Criteria
• Root Cause Analysis
• Verification of Business
Impact
• Definition of Action Items
Project Lead
(BPAnalytics
Owner)
Application
Expert / Module
Owner
BPAnalytics Expert
(Configuration of Business
Process Analytics)
Global/Local
Process Owner
(GPO, LPO) & Local
Key Users (LKU)
Executive Sponsor
IT Business
© 2012 SAP AG. All rights reserved. 35
Business Process Operations Summary
Business Process Analysis
SAP service (process health check) that can be used as a starting point
Business Process Monitoring
Tool helping with Business Process Stabilization and helping to perform
monitoring tasks more efficiently
Business Process Analytics
Tool helping with Business Process Improvement methodology and helping to
make business processes more efficient and effective
Business Process Operations dashboard
Dashboard framework to configure user group specific dashboards
© 2012 SAP AG. All rights reserved. 36
Key Take Aways Business Process Analytics tool & Business Process Improvement
Business Process Analytics is a problem oriented SAP Solution
Manager tool that supports Business Process Improvement activities and
complements your existing SAP Business Warehouse/SAP
BusinessObjects reporting environment
SAP provides a Business Process Improvement methodology in order
to analyze critical process milestones in a systematic 9 step approach
Main target of Business Process Improvement is that you maximize the
value of your existing SAP solution, i.e. operate more efficient and
effective
Over 750 out-of-the-box key figures allow a fast technical Business
Process Analytics implementation within days so that the root cause
analysis is the main activity within a Business Process Improvement project
1
2
3
4
Thank You!
Contact information:
Mark Cooling
SAP Active Global Support
SAP SSC (Ireland) Ltd.
Further Information
© 2012 SAP AG. All rights reserved. 39
SAP Service Offerings SAP Enterprise Support
SAP Solution Manager Enterprise Edition
Business Process Monitoring functionality
Business Process Analytics functionality
Expert Guided Implementation
Expert Guided Implementation for Business Process Monitoring
Self Service - 'Business Process Analysis'
SAP Services
SAP CQC Business Process Analysis and Monitoring
SAP Business Process Analysis*
SAP Business Process Operations*
SAP Classroom Trainings
(E2E300) Business Process Integration & Automation Management
(SM300) Business Process Monitoring
* Only for SAP MaxAttention /
SAP Safeguarding customers
© 2012 SAP AG. All rights reserved. 40
Further Information – SAP Notes
1320940 - Prerequisites for CQC service: BPA and BPM
• Describes the necessary (minimum) prerequisites in order to execute an CQC Business
Process Analysis and Business Process Monitoring services respectively
784752 - BPMon in SAP Solution Manager - Prerequisites
• Describes the more detailed and recommended technical prerequisites in order to implement
Business Process Monitoring with a wide scope
521820 - Availability of Business Process Monitoring
• Describes the latest Support Packages or single SAP notes available in order to possibly
rule-out known malfunctions of Business Process Monitoring
© 2012 SAP AG. All rights reserved. 41
Further Information – Links
Business Process Monitoring on SAP Service Marketplace
https://service.sap.com/bpm
Business Process Monitoring on SDN
https://www.sdn.sap.com/irj/sdn/nw-processmonitoring
White Paper “Exception Handling and Business Process & Interface Monitoring”
Link to Business Process Monitoring
© 2012 SAP AG. All rights reserved. 42
Further Information – SDN Blogs & Wiki
Functional Scope of Business Process Monitoring in SAP Solution
Manager http://www.sdn.sap.com/irj/scn/weblogs?blog=/pub/wlg/15153
Frequently Asked Questions
http://wiki.sdn.sap.com/wiki/display/SM/FAQ+Business+Process+Monitoring
http://wiki.sdn.sap.com/wiki/display/SM/FAQ+Business+Process+Analytics
Typical Use Cases for Business Process Monitoring
http://www.sdn.sap.com/irj/scn/weblogs?blog=/pub/wlg/16947
Business Process Monitoring - Template configuration available for
download
http://www.sdn.sap.com/irj/scn/weblogs?blog=/pub/wlg/15187
© 2012 SAP AG. All rights reserved. 43
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