How to provide value to your business with Business Process Improvement SAP Innovation Camp Newtown Square, PA 7/19/2017
Agenda
Topic Sessions : Value to Business 19 th July Time Title Description Speaker 11:00 12:30 How to provide value to your business with Business Process Improvement 13:45 15:15 Operate Business Process Improvement Suite in SAP Solution Manager 7.2 15:30 16:30 Discover standard SAP key figures to drive Business Process Improvement Get to know the SAP Support methodology Business Process Improvement Understand how looking at facts out of your SAP systems will help to identify systematic process gaps in SAP Finance, Procurement and Sales Backoffice processes. Learn from the experience of other customers Discover how you can use the SAP standard and license free tools from SAP Solution Manager 7.2 to analyze gaps in your existing SAP business processes and track the improvement process. The following applications will be showcased: Business Process Analytics Business Process Operations Dashboards Dependency Diagrams Progress Management Board Discover the SAP standard key figure content for Business Process Improvement covering all major modules of SAP ERP and S/4HANA Understand how operational key figures are connected with your overall company goals Get an overview how to select the key figures suited best for your use case Florian Blaesche & Jeff Kiczek Florian Blaesche & Jeff Kiczek Jeff Kiczek 3
Why Business Process Improvement
Business Process Improvement for SAP solutions Customer references 20 million $ - of revenue recovered by Cardinal Health through Business Process Improvement 'Crown Jewels of SAP Solution Manager Gartner talking about Business Process Analytics in SAP Solution Manager** *http://www.sap.com/asset/detail.2015-07-jul.cardinal-health-recovers-millions-with-help-from-sap-maxattention-services-ctv-mp4.html **https://www.gartner.com/doc/2894917/discovered-sap-solution-manager-crown 5
Business Process Improvement for SAP solutions Customer references 10% decrease in year to year support issues by Swarovski through Business Process Improvement* 80% improvement - in settlement processing archived by Balta Industries through Business Process Improvement** *https://dam.sap.com/mac/preview/a/67/gjygochlmmsrxxaoxpwxllmhxjxlmopyxly3owmgjgaeglet/39449_bts_39449_en.htm **https://jam4.sapjam.com/groups/s6lfdqlz2srp34vjhkwqw1/documents/ymlgkl8pslqvbex4fgjgtv/slide_viewer?_lightbox=true 6
Value of SAP solution: Potential vs Realization (1/2) No complaints: As is considered as normal/optimal even if it is not Value in % 120 New innovations shipped by SAP Illustrative typical 90% customer case Potential value of SAP solution 100 The gap typically widens over time Realized value of SAP solution 80 1 2 3 4 5 Year 7
Value of SAP solution: Potential vs Realization (2/2) Business Process Improvement can address highlighted degradations Value in % Illustrative typical 90% customer case 120 100 Technical problems Master data quality Insufficient end user training 80 Configuration vs reality Un-used process automation SAP innovation adopted Resolved techn. problems Re-training users Document backlog undermining central planning SAP innovation adopted Complexity: Obsolete master data & configuration Document backlog degrading techn performance & undermining archiving 1 2 3 4 5 Year 8
Goal: High & error-free automation in SAP solution Requirements and business benefits Excellent master data quality allowing automation and avoiding errors Correct configuration & process design allowing automation and reflecting the real world process Well trained end users not bypassing or undermining the SAP system Technical reliability error free background jobs and interfaces (Reverse ) Business Process Improvement High automation rate + little backlog + little exceptions + high throughput + fast lead times Low Total Cost of Ownership High Return On Investment 9
How to provide value to your business with Business Process Improvement
Business Process Improvement for SAP solutions More than just a(nother) tool Business Process Improvement Improve Business Goals Goals Support S/4HANA Transition SAP Solution Manager Tools Best Practice Methodology Out-of-thebox Key Figure Content Reduce TCO Reduce Complexity Business Process Improvement for SAP solutions is a service offering that Provides an initial analysis of an SAP BusinessSuite or SAP S/4 HANA system, Activates different SAP Solution Manager tools with out-of-the-box key figure content, Applies best practice knowledge in order to achieve tangible improvement results that could be business and/or IT driven. 11
Goals Business Process Improvement
IT Business Value of SAP solution: Business Process Improvement Scope & deliverables Support foundation for digital transition Improving (transactional) data quality to support Fast Closing MRP Planning Inventory Optimization Reduce Complexity Identification of customers, materials, vendors, etc. with no / low activity Support standardization / harmonization projects Optimization of Business / Value Driver (e.g. DSO, DPO, DII, Fast Close, Reduce costs for purchasing, finance or manufacturing, improve Supply Chain Planning accuracy) Increase business process efficiency by reducing manual rework and reprocessing Increase degree of business process automation Support clean-up activities for old & obsolete business data / prepare archiving Identification of incorrect / not ideal application configuration Identification of inactive organizational units or document types Reduce TCO Improve throughput & performance Plan & Build GoLive Run Timeline 13
Key Figure Content Business Process Improvement
Use Cases Measure Key Figure Overview Types of key figures and their respective use cases Throughput Backlog Exception Lead Time Automation rate No. of documents/ items posted in time frame No. of documents/ items not completely processed until expected date No. of error messages (incl. msg. texts) raised in selected time frame Avg. processing time for completed process instances How many documents were processed manually vs. automatically Go-Live support/ hypercare Go-Live support Process excellence / improvements Process compliance & audits Data archiving support Migration prep. Integration tests Go-Live support Process excellence / improvements Process compliance & audits Root cause analysis Process excellence / improvements Go-Live support Process excellence / improvements 15
Key Figure Overview KPI Catalog in the Cloud https://go.support.sap.com/kpicatalog 16
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Analysis Tools Business Process Improvement
Business Process Improvement Approach Using the Business Process Improvement Suite in SAP Solution Manager Progress Management Board What shall be improved and what is the progress Available with SAP Solution Manager ST7.2 SP3 Dependency Diagram Differentiate cause and effect to improve the right thing Available with SAP Solution Manager ST7.1 SP14 Tabular Dashboard Continuous tracking / break-down across org. units Available with SAP Solution Manager ST7.1 SP12 Business Process Analytics Identify the root cause Available with SAP Solution Manager ST7.1 SP5 Issue Management Document & track actions Available with SAP Solution Manager ST7.1 SP5 19
Business Process Improvement Standardized Methodology with Business Process Analytics 1 2 3 Get Global Transparency Identify Org Units to be analyzed Split between old & operational data 4 5 6 Perform Detail Analysis Identify Root Causes (RC) Document Root Cause via Issue 7 8 9 Define Action Items via Task Visualize Impact on Business KPIs Control Achievements via Progress Management Board 20
Methodology Business Process Improvement
Applied Business Process Improvement Delivery approach 1 Select high-level goal, business/value driver as focus area 2 Apply Business Process Improvement methodology per area Control via Tabular Dashboard Track implementation via Issue Management Select Best Practice key figures & KPI trees Activate & measure via Business Process Analytics Analyze via Business Process Analytics 4 Bundled in one or several work streams within a Business Process Improvement project/ initiative with respective roadmap 3 Track progress & value realization centrally across business KPIs, PPIs via Progress Management Board 22
Maximize the value of your existing SAP investment Business Process Improvement with Business Process Analytics Control via Tabular Dashboard Apply Business Process Improvement methodology per area Select Best Practice key figures & KPI trees 10% Business Process Analytics / Dashboards Track implementation via Issue Management Activate & measure via Business Process Analytics 30% Define & implement action items Analyze via Business Process Analytics 15% Analysis methodology 15% Business Process Analytics Effort distribution 15% Best Practice knowledge & content 5% Business Process Analysis 23
Business Process Improvement Best Practice: Organizational Structure for Business Process Improvement IT Executive Sponsor Business Application Expert / Module Owner Project Lead (BP Analytics Owner) BP Analytics Expert Global/Local Process Owner (GPO, LPO) & Local Key Users (LKU) Business driven vs. IT driven projects: Business driven projects usually focus on business goals or TCO improvement of Backoffice processes, while IT driven projects usually focus more on data quality or reduction of support effort 24
Common constraints of management & business Senior Management: Why do we need another reporting system? We have standard ways to measure performance already We already achieved excellence in e.g. our supply chain All our people are fully trained on SAP Reply: Business Process Improvement is not reporting, it is a fully interactive way to do process control of your system Business Process Improvement helps you to identify those 5% of cases which still run into any exception in the SAP Business Suite Even people are fully trained on SAP they might not work in the most efficient way. Business Process Improvement helps to identify this cases in SAP, so that additional traning can be provided were required. 25
Common constraints of management & business Operational employees: You are saying we do not know how to do our jobs These results cannot be true / I see something different in my reporting system Most of this data is old, from years ago and not relevant to us anymore Reply: Solving issues in SAP systematically will long term free up some of your time and your are able to work on more value generating tasks Business Process Improvement does not filter out anything. You might see things which have been hidden by your reporting environment Old open transactional data still impacts your system and business: It might slow down the performance (e.g. of end user transactions, period end closing activities) and it might be the reason for your inaccurate planning and controlling results 26
Customer Stories Business Process Improvement
IT Business Value of SAP solution: Business Process Improvement Scope & deliverables Improving Days Sales Outstanding Support foundation for digital transition Improving (transactional) data quality to support Fast Closing MRP Planning Inventory Optimization Support clean-up of old data prior S/4HANA migration Support clean-up activities for old & obsolete business data / prepare archiving Reduce Complexity Identification of customers, materials, vendors, etc. with no / low activity Support standardization / harmonization projects Identification of incorrect / not ideal application configuration Identification of inactive organizational units or document types Optimization of Business / Value Driver (e.g. DSO, DPO, DII, Fast Close, Reduce costs for purchasing, finance or manufacturing, improve Supply Chain Planning accuracy) Increase business process efficiency by reducing manual rework and reprocessing Increase degree of business process automation Reduce TCO Improve throughput & performance Reduction of TCO for OTC process Plan & Build GoLive Run Timeline 28
Value to Business at SAP IT Improvement target: Project stakeholders: Project approach IT driven: Reduce data footprint on ERP SAP DBS: Center of Expertise Business Process Improvement SAP IT: Corporate Service, Shared IT Application, OCC Team SAP business: Application Managers from Corporate Finance & Administration SAP IT started a clean-up taskforce end of 2015 to identify and clean-up old open business documents in all major applications of SAPs ERP 18 KPIs defined to be cleaned-up Usage of Business Process Analytics and Dashboards in SAP Solution Manager Receive sponsorship from upper management to allocate resources Meet with Business process managers & IT subject matter experts to analyze root cause patterns and execute action items Expected Project success: have been don Improvement of user instructions and business rules to continuously follow-up with open documents More than 5 million documents closed / corrected / archived / deleted e as part of the continues improvement activities 29
Value to Business at Cardinal Health Improvement target: Project stakeholders: Business driven: Improvement of Revenue protection (DSO) SAP DBS: Regional CoE, Global Center of Expertise Business Process Improvement Cardinal Health IT: Technology Platform team, Functional experts Cardinal Health business: Business Process Optimization, Business Analyst Cardinal Health had suspicion of issues in customer billing but had challenges to get transparency of magnitude. They leveraged Business Process Analytics and the BPImp methodology to quickly and systematically gain transparency, rapidly identify root cause and put in correction and remediation efforts Project approach Leverage standard Best Practice Key Figures and Business Process Analytics Involve the right experts from Business/IT/ & SAP MaxAttention team Sponsorship and prioritization from the business Project success: Ha Protection of more than 20 million USD revenue Improvement of process design ve been done as part of the continues improvement activities 30
Value to Business at Swarovski Improvement target: Project stakeholders: Project approach Business driven: Reduction of backoffice effort in Order to Cash process SAP DBS: Center of Expertise Business Process Improvement Swarovski IT: Process Improvement Team, application experts for SD & FI Swarovski business: Business Process owners from SD & FI To run sales and finance even better, the business and IT teams at Swarovski worked jointly with the SAP team using the business process improvement service for SAP Solutions 30 built-in and customized KPIs provided Usage of Business Process Analytics and Dashboards in SAP Solution Manager Bringing IT and business teams together with the right KPIs Development of step by step plan to resolve all of the identified issues Expected Project success: Ha 99% Reduction of incomplete bank statements and improvement of bank statement posting rules 95% Reduction of exceptions during automatic billing ve been done as part of the continues improvement activities *https://dam.sap.com/mac/preview/a/67/gjygochlmmsrxxaoxpwxllmhxjxlmopyxly3owmgjgaeglet/39449_bts_39449_en.htm 31
Thank you. Contact information: Jeff Kiczek Florian Blaesche http://discover.sap.com/germany-business-process-improvement/en_us/index.html Partner logo