Business process management (BPM) is a holistic management approach that promotes business effectiveness and efficiency. BPM involves designing, modeling, executing, monitoring, and optimizing business processes. This allows processes to be aligned with an organization's goals and customers' needs while improving innovation, flexibility and integration with technology.
How BPM Can Help Improve Efficiency and Reduce Costs
1. « it’s all about efficiency and cost savings »
BUSINESS PROCESS MANAGEMENT LIFE -CYCLE
Stéphane Haelterman
2. 27/04/2009
FROM BUSINESS WORKFLOW TO BUSINESS PROCESS MANAGEMENT
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
10 years ago, technology was defining the boundaries of a business process
Today, a business process provides the context for strategic technology
Business
Process
Management
Business
Workflow
We help you manage your business process (r)evolution
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3. 27/04/2009
THE BRIDGE BETWEEN INFORMATION TECHNOLOGY AND BUSINESS
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
A business process is a collection of interrelated tasks, which accomplish a particular goal.
Processes are critical to any organization as they generate revenue and often represent a
significant proportion of costs.
Business Process Management (BPM) is a method of efficiently aligning an organization with
the wants and needs of clients. It is a holistic management approach that promotes business
effectiveness and efficiency while striving for innovation, flexibility and integration with
technology.
BPM is currently bringing a revolution in the business by providing enterprise infrastructure
that manages and automates processes that have both human and system related tasks.
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THE BRIDGE BETWEEN INFORMATION TECHNOLOGY AND BUSINESS
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
BPM as to be seen from two viewpoints:
People
BPM alignment to the customer means that customer-facing staff are best suited to
understand customer needs and must be empowered to make improvements. Many of these
improvements can be done without the use of new technology.
Technology
Some see that information moves between enterprise software packages and immediately
think of Service Oriented Architecture (SOA); while others believe that modeling is the only way
to create the ‘perfect’.
Both of these concepts go into the definition of BPM. For instance, the size and complexity of
daily tasks often requires the use of technology to model efficiently. BPM is the
convergenceofWorkflow,EAIand structuredorad-hoc processes.
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BPM LIFE-CYCLE STEPS
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
Design
Representation of the process flow, the actors within, alerts &
notifications, escalations, Standard Operating Procedures, Service
Level Agreements, and task hand-over mechanisms.
Modeling
Optimization Design Modeling takes the theoretical design and introduces
combinations of variables, for instance, changes in the cost of
materials or increased rent, that determine how the process might
operate under different circumstances. It also involves running
quot;what-if analysisquot; on the processes.
Execution
One way to automate processes is to implement SAP Business
Workflowthat executes the required steps of the process in
combination with human intervention. Automating a process
Monitoring Modeling definition requires flexible and comprehensive infrastructure.
Change
Monitoring
Management
Monitoring encompasses the tracking of individual processes so
that information on their state can be easily seen with statistics to
measure the performance, detect discrepancies and analyze
bottlenecks.
Execution
Optimization
Process optimization includes retrieving process performance
information from modeling or monitoring phase and identifying
the potential or actual bottlenecks and potential rooms for cost
savings or other improvements and then applying those
enhancements in the design of the process thus continuing the
value cycle of Business Process Management.
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6. 27/04/2009
IDENTIFYING BPM LIFE-CYCLE NEEDS
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
I have customer complaints ( Call Center Activities Follow-up / Helpdesk Automation )
Customers are not paying in time ( Customer Credit Management )
I lose supplier’s discounts ( Invoice Management )
I have too many handling charges ( Invoice Management, Purchase Efficiency… )
I lose market shares ( Sales Automation / Proactive Marketing Campaigns )
I’m too late bringing a new product on the market ( Material Request )
I have stolen goods ( Purchase Efficiency )
The meter setup and reading is not done in time ( Workforce Management )
I missed an important recruitment ( Manager Self Service )
My employee spends too much money ( Travel Expense Approval )
What does my employee and where ( Time Sheet Approval )
My procedure is not integrated with my systems Six Sigma
Information is not accessible at the right time and person Total Quality Management
Business Process Reengineering
I cannot measure the efficiency of my processes
Lean Systems
I have less flexibility changing my procedures
Reorganization
I lose process knowledge due to employee turnover
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BPM LIFE-CYCLE IS A SUBJECT OF INTEREST IN THE FOLLOWING CASES
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
Process oriented (re)organization
Process Optimization
Quality Management
Staff requirements planning
Integrated Management System
Cost reduction
Transparency in organization / data
Organization and systems in harmony with corporate strategy
Product cost accounting
Balance Scorecard / KPI’s / PPI’s
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COMPLEXITY IN BPM LIFE-CYCLE PROJECTS
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
People
Different departmentsmay be involved in the design and modeling phases
Each department has its own viewof the business process
Individuals arenote used to think in term of processes
Proceduresare often rigidandentrenchedin the organization
The staff is often not willing to changein terms of roles & responsibilities
There are often political issues
The management is notalwayssponsoring and supporting the change
Often part of a reorganizationproject seen as a job-killer( share service center, outsourcing )
Official responsibilities vs. work organization
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COMPLEXITY IN BPM LIFE-CYCLE PROJECTS
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
Technology
Applications ( FI, CO, SD, MM, PP, …)
Data interchange ( EDI, IDoc, ALE )
Business Reporting ( Business Warehouse, Business Intelligence, Business Objects )
Telephony ( CTI + SAPPhone )
Web interface ( BSP, WebDybpro, Enterprise Portal )
System and process integration ( PI / BPM for Netweaver, ccBPM )
Document Management Systems ( OpenText, IRIS, Filenet, Documentum )
Optical Character Recognition ( IRIS, TIS, Kofax, ReadSoft, ITSoft, Docutek, Captaris )
Groupware ( Microsoft, Lotus )
Visual Composer
Adobe Interactive Forms
Service Oriented Architecture
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BENEFITS
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
Monitoring
Complete process history
Used to optimize the business process
Better control within compliance regulations ( SOX, IFRS, BASEL II )
Analysis of the process performance
Statistics
People
Increase of productivity
Improved usability ( push vs pull )
Various interfaces to existing functionalities
Immediate access to archived documents and scanned images
Better routing of tasks
Work list via email, enterprise portal, web sites, and mobile devices
Privacy and security
Less training required
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ADVANTAGES
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
Advantages for the user
Easier and faster access to information
Reduced administrative tasks
Easy learning and understanding of processes
Advantages for the management
Better control of the information, the service levels and the process costs
Flexibility to change processes, organizational structure and underlying technology
Advantages for the enterprise
Improvement of the productivity by the distribution of the information and
workload
A faster and better reaction upon errors
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12. 27/04/2009
RETURN ON INVESTMENT AFTER 6 MONTHS
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
Reduced worktime ( 50% to 90% )
Less people needed
Less time spent
Reduced Increased
worktime productivity
Increased productivity ( 10% to 75% )
Less errors
Less penalties
Reduction of
Reduction of handling charges ( 20% to 40% )
Reduction of
handling
Less office furnitures
office space
charges
Less communication fees
Reduction of office space ( 20% to 40% )
Less rooms
Less archives
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13. 27/04/2009
BUSINESS WORKFLOW IS EVERYWHERE
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
SAP SAP SAP SAP SAP SAP
R/3 ECC CRM SRM SCM PLM
SAP SAP SAP SAP SAP SAP
EH&S APO GRC IS HCM SEM
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14. 27/04/2009
ACCORDING TO THE GARTNER GROUP
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
«Business Process Management wins the “triple crown” of saving money, saving
time and adding value »
«BPM is delivering both short-term return on investment (ROI) and long-term
value. »
«We expect process optimization to become a habit in many enterprises, driven by
compliance acts and quality initiatives »
«We anticipate that many enterprises will use streamlined processes as a
competitive weapon in the marketplace »
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VALUE PROPOSITION
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
EBAIA helps you automate your processes in SAP by mapping them in the enterprise
organization, by integrating them with your IT infrastructure, by providing you with
the adequate monitoring and support you in managing your change.
EBAIA has a strong experience in process automation in different industries.
EBAIA propose you the best solution combining in-depth experience, powerful
technology and business capabilities ( in line with the evolution of SAP products ) to
improve your business processes.
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CUSTOMER BENEFITS
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
Delivery of full Business Process Management solutions
Business and consulting oriented
Strong track record
Measured return on investment
Efficiency and cost saving oriented
Service and innovation
Strong partnership with SAP and third-parties
Aligned with the SAP Solution Map
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GENERAL SERVICES
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
Audit for process automation
Analysis of your (automated) business processes to determine bottlenecks (long throughput
times, redundancy, unnecessary steps, broken links), wrong roles and responsibilities, obsolete
or inefficient functionalities, and improper technology use.
Prove Of Concept
We reduce the scope of your Business Process Management Life-Cycle project
We create a working prototype on 10 days
We use it as communication medium
We use it as a basis for the final solution
Process Automation
We help you with the design, modeling, execution, monitoring and optimization of your
business process
We assist you with the blueprint, realization and go-live
We provide you with project management
We support you managing the change
We advise you on business reporting
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GENERAL SERVICES
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
Return On Investment assessment
Together, we can calculate the actual cost of the business process you would like to automate
by analysing the worktime, the productivity, the handling charges, the office
space, reorganization aspects and other factors.
We deliver a report with detailed cost savings you can do by automating or optimizing your
selected business process
Solution Expertise
We propose you complete tailor-made solutions to integrate your automated process with
your various systems and applications
SAP Business Workflow expertise, maintenance and trainings
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19. 27/04/2009
FEATURED SOLUTIONS
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
We can help you automate and help you reduce the cost of the
following processes
Invoice Management Driven Case Management
Purchase Efficiency Incoming Emails Follow-up
Complaints Handling Proactive Marketing Campaigns
Call Centers Activities Follow-up Helpdesk Automation
Material Request Customer Quotation
Customer Credit Management Sales Automation
Travel Expense Approval STMS Request Approval
Timesheet Approval Service Notification Processing
Workforce Management … and many more
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FEATURED SOLUTIONS EXAMPLES & TECHNOLOGY USED
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
Invoice Management
Validation and approval of vendor invoices, Supplier Performance Monitoring
SAP FICO, SAP VIM, SAP Business Workflow, OCR
(IRIS, Dokutec, Readsoft, Kofax, ITSoft, TIS), Archiving (OpenText, IRIS, IBM), SAP Business
Intelligence, SAP Business Objects, SAP Enterprise Portal Universal
Worklist, Webdynpro, EDI, IDocs, Adobe Interactive Forms
Purchase Efficiency
Validation and approval purchase requisitions and purchase orders
SAP MM, SAP Business Workflow, Archiving (OpenText, IRIS, IBM), SAP Business
Intelligence, SAP Business Objects, SAP Enterprise Portal Universal
Worklist, Webdynpro, Adobe Interactive Forms
Complaints Handling
Active Plant complaint follow-up with ISO requirements
SAP QM, SAP Business Workflow, Archiving (OpenText, IRIS, IBM), SAP Business
Intelligence, SAP Business Objects, SAP Enterprise Portal Universal Worklist, Webdynpro
Call Centers Activities Follow-up
Active customer enquiry follow-up within service level agreements
SAP CIC, SAP Business Workflow, SAP Business Intelligence, SAP Business Objects, SAP
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Enterprise Portal Universal Worklist, Webdynpro
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FEATURED SOLUTIONS EXAMPLES & TECHNOLOGY USED
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
Material Request
Collaborative collection of departments material data for costing, forecasting and production
SAP MM, SAP FICO, SAP APO, SAP Business Workflow, SAP Case Management, SAP Business
Rules Framework, SAP Business Intelligence, SAP Business Objects, SAP Enterprise Portal
Universal Worklist, Webdynpro, Adobe Interactive Forms, Sinfos
Customer Credit Management
Customer credit approval with multi-level account blocking
SAP FICO, SAP Business Workflow, SAP Case Management, SAP Business Intelligence, SAP
Business Objects, SAP Enterprise Portal Universal Worklist, Webdynpro
Workforce Management
Planning of meter setup/reading by technicians with invoicing
SAP IS-U, SAP FICO, SAP Business Workflow
Helpdesk Automation
Active follow-up of IT internal issues and change requests
SAP CRM Service Tickets & Web-IC, SAP Business Workflow
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ACCOUNT PROFILES AND CONTACTS
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
All SAP Accounts
Six Sigma / Total Quality Management / BPR / Lean Systems / Reorganization
SOX / IFRS or Compliance
Contact targets
CFO or/and Financial controller
COO or/and CPO
CIM or/and CIO or/and SAP Manager
Purchasing Manager
Sales Director / Sales Manager
Customer Operations Manager
Marketing Manager
HR Manager
Plant Manager
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BPM KEY MESSAGES
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
Executives
Consider BPM as a cost saver
Optimization improves efficiency and cost savings
Line of business managers
Monitor process efficiency for improvement
Use cockpits, dashboards to challenge Business Analysts and to report to Executives
Business Analysts
Identify business process bottlenecks
Become Business Process Manager for all business units
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KEY TAKE AWAY
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
Think Business, Apply Technology
Focus on Value Added Processes
BPM Life-Cycle is Not an Extension of SAP Business Workflow
SAP Business Workflow is one important Backbone for your BPM Life-Cycle
BPM Life-Cycle = Cost Savings & Efficiency
SAP Business Workflow is Everywhere
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CONTACT
BUSINESS PROCESS MANAGEMENT LIFE-CYCLE
Stéphane Haelterman
shae@ebaia.com
+32474900124
Feel free to connect with me on LinkedIn
http://www.linkedin.com/in/shaelter
You are welcome to join my SAP Business Workflow group on LinkedIn
http://www.linkedin.com/groups?gid=1881723
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