Business Process Consulting Services - websmp201.sap … · Business Process Consulting Services...

Business Process Consulting ServicesProviding Value To Your Business

Carola Feind-Just, Business Transformation Services2014

© 2013 SAP AG. All rights reserved. 2

Business Process Consulting Services Umbrella Structure

Analysis of SCMPotential

Industry / Cross LOB Based SAP Solution Based Others

SCM Feasibility StudyBusiness Process

ManagementGovernance Service

HR process design Business ProcessConsulting Generic

Service

*Business Process Consulting Services Umbrella Structure will be updated from time-time. Please check the portal for latest information

Please note: Product ID for the service in the CRM product catalogue is: 9000676


Business Process Consulting Generic Service at a glance

Abstract Approach Deliverables

Business ProcessConsulting Services helpyou extract maximum valueout of your SAP investmentsthrough end-to-end processoptimization and innovationleveraging SAP solutions inthe best way

Business Process Consulting Service isbased on 4 phased Approach of BPMMethodology :

• Calibration

• As-Is Phase

• To-Be Design

• Solution Transformation

• Clearly defined and agreed project goal with a clearfocus on prioritized business processes with theirunderlying relevant architecture topics

• In-depth business process weakness analysisregarding process, organizational or IT technicalaspects

• Recommended new to-be design for weaknesselimination regarding all aspects evaluated based uponthe industry best practices and know-how

• Complete documented BPM Blueprint that providesdetails of As-Is processes, improved To-Be processeswith identified solution tracks and their relevant contents


Agenda

• Key Trends and Business Needs

• Business Process Consulting Services

• Business Benefits and Value Proposition

• Project Approach and Planning

• Scope & Pre-requisites

• SAP Consulting & References


Agenda








Executive Summary

Challenges and Opportunities• Limitations in business process performance• Need to re-engineer processes to gain higher efficiency• Need to cope with frequent process changes/improvements• Lack of clarity of business process pain-points• Need industry best practices know-how to gain higher business

benefits

Customer Goals/Needs• Customer needs to have a well defined approach for running

process improvement projects• Customer needs insights from industry process experts to help

them optimize their business processes

Customer Specific Information• <Address pain points/problems/needs/goals of customersinterested in this service and that can be alleviated/achieved bythe service>

• <Give background information so that someone not familiarwith the situation can easily understand it.>

• <Identify the essential sales questions/points>


Today’s New RealityContext in which businesses operate today

Today’s Business ChallengesEconomic climate demands for a fast return on investment, often within the same year of the implementation

Business requirements tend to have earlier expiration dates due to the climate changes

Companies must see act fast and clearlyCustomers ask for Implementation Acceleration and Best Practices

Look for ways to maximize business value

Ask for Visibility on the progress of projects and want measurable results early

Express the need to get it right for the first time“Customers want smaller, focused projects with fast ROI


Customer’s Business Needs

Need forBusiness Innovation

Agility to promoteinnovationProduct/ ServiceDifferentiationCustomer /IndustryResponsivenessPerformance Insightand Visibility

SuccessfulJoint Ventures/M&A

Consolidation ofbusiness operationsEase of IntegrationGlobal SourcingCost PressuresDownsizingTalent Management

Governance/Regulatory Compliance

Global Policies/ProcedureDeploymentStandardizedpracticesAccurate and TimelyReportingRobust businessmodel

EnsuringOperational Excellence

Integrated andCollaborativeNetworksAutomationOptimizedOrganizationalPerformanceGlobal, Mobile,MultigenerationalWorkforce

Do your business processes support your business outcomes?


Global CxOs concur on the strategic importance of enterpriseprocess optimization in driving business success

Market Trends

CxOs want BUSINESS PROCESS TRANSFORMATION PROGRAMS

CEOs demand CHANGE in major business processes that willCONTRIBUTE TO BUSINESS OUTCOMES

"Business Transformation programs’ top priorities are REVENUEIMPROVEMENT, COST REDUCTION AND PROCESS REDESIGN"

Source: Forrester, The Top 10 Business, Process, Technology Trends Impacting Business Process Pros in2013

Source: Gartner 2013 CEO Priorities: What CIOs need to know? byThomas Wailgum

Source: Study Results from Impact of Transformation Management Survey by Prof. Dr. Robert Winter fromthe University of St.Gallen and Prof. Axel Uhl from the University of Applied Sciences NorthwesternSwitzerland.


BPM Transformation JourneyImproving business processes to better support the customer’s strategy

• New Functionality

A culture ofheroes

Processes areimproved at the workgroup or departmentlevel

Processes areorganized andredesigned at theenterprise level

Processes aremeasured andmanagedsystematically

Process Teamscontinuously improveprocesses

No organizedprocesses

Level 1 Some organizedprocesses

Level 2 Most ProcessesOrganized

Level 3 Processes aremanaged

Level 4 Processes arecontinuously improved

Level 5

• Businessresponsiveness

• Change businessprocess quickly andeffectively

• Businessoptimization

• Increase decisionquality

• Optimization acrossboarders ofBusiness & IT

• Transformation fromreactive to real-time

• IncreaseTransparency

• IT cost reductionand control

• Reduce time-to-market

• Documentedprocesses


Agenda








Business Process Consulting Services at a Glance

The rate of marketplace change is increasing and companies arefaced with the need to continuously adapt their business processes.However, many companies struggle to realize full benefits fromprocess reengineering and innovation activities.

Business Process Consulting Services help you extract maximumvalue out of your SAP investments through end-to-end processoptimization and innovation leveraging SAP solutions in thebest way. Specifically, SAP helps you with:

Process AnalysisProcess DesignSolution Transformation

A holistic approach to process improvements – BPL content,BPM methodology and governance, BPM technology, training –helps you to meet your business objectives.Best practices and methods help you efficiently analyze as-isprocesses and design to-be processes.


Value PartnershipEngage SAP as your strategic partner and create measurable value through business transformation:

Agree on mutual goals and measure success with key performance indicatorsCreate road maps and manage business transformation programsBuild prototypes for innovation

Business Architecture & IT StrategyRealize optimized business processes andorganizational efficiency as well as optimization of ITArchitectures and IT Strategies:

Drive business process innovation andefficiencyStreamline IT architectures andapplication portfoliosReshape organizational andgovernance structuresDrive technology driven businessinnovations

Value & TransformationManagement

Realize and optimize the valuemanagement, in order to assure thevalue and business case realization.Realize and enable businesstransformations on behalf of ourcustomers.

Performance Management & InsightGain insight on performance of business and IT:

Improve decision makingEstablish closed-loop performance management (including sustainability)Solve business problems based on advanced data analysis

Business Transformation Services ( BTS )Business Process Consulting is an integral part of our Service Portfolio


Business ProcessLibrary (BPL)

BPL is repository of reference content

for industry and cross industry

processes which allows customers to

accelerate implementation cycles and to

improve quality

It is an important enabler for as-is

analysis, efficient to-be process design,

solution transformation and process-

based implementation projects

Business Process Consulting ServicesWhat’s in it for our customers ?

BTS Experts

Customer projects are executed by a

mix of BTS industry and methodology

experts ensuring we bring in all

essential components in successfully

transforming the business

Our teams work in tandem with SAP

solution experts ensuring our proposed

process improvements are well realized

through right solutions and technologies

Value centric SAPImplementation

Approach - ASAP

ASAP provides a proven,

comprehensive, repeatable and rich

implementation methodology to

streamline projects

New ASAP which supports multiple

lifecycles is more effective at the

business side is well integrated with

business process design, change

management and value realization


A Value PartnershipFramework to Support Business Process Consulting Services

Long-term, value-driven engagementmodel to achieve seamless integrationbetween Business and IT and manage valuerealization.

Clarify the value of SAP solutions byestablishing a clear IT roadmap linkingbusiness strategy and IT

Leverage knowledge transfer using industrybest practices to help increase your ITcapabilities

Gain quick access to the right SAPresources through an effective governancemodel

Drive co-innovation to directly influencefuture revenue generation and market-share

Single point of contact for all SAP-relatedactivities


Agenda








Your Business Benefits Realized

Improved business performanceExclusive access to growing repository of proven businessprocess content and benchmarking data proprietary to SAPgathered across industries and solutions

Enhanced competitive positionBy innovating your business processes to give yourorganization increased readiness for new business models,new markets and reduced time to market

Risk mitigation & assuranceBy leveraging proven BPM Methodologies and alignedapproaches (ASAP 7.1, Value Management / Realization)and also implementation accelerators from SAP

Lowered IT CostsBy reducing cost of implementation through acceleration ofblueprinting and maximized usage of SAP’s solutionfunctionalities


Why SAP Services Is Your Best Partner

SAP ensures best fit between your business requirementsand our SAP solutions with our business processconsulting services

SAP will help you maximize use of standard SAPfunctionalities to support your business processes,thereby reducing it costs

SAP has deep industry expertise and provenmethodologies

SAP has the right resources: process and managementconsultants and solution experts

SAP knows SAP best providing first-hand information onour products and development strategy suited tocustomer´s business roadmap


Business Process Consulting Services enables customersto…

… plan smarter … run faster … perform better

Companies across industries seek to …… Improve business performance

… Enhance competitive position

… Mitigate risk

… Lower IT Costs


Agenda








Business Process Consulting Services FrameworkBusiness Process Management Methodology

As-IsAnalysis

To-BeDesign

SolutionTransformationCalibration

1 2 3 4

1.1 Understand high-level businessvision and strategy

1.2 Identify business successfactors

1.3 Calibrate IT topics1.4 Define high-level process

landscape1.5 Prioritize processes

2.1 Assess reference content2.2 Identify relevant process

parameters and classification2.3 Document as-is processes and

process flow2.4 Analyze processes and identify

weaknesses2.5 Identify interdependencies and

cluster weaknesses2.6 Assess and prioritize weakness

clusters2.7 Analyze as-is IT architecture2.8 Consolidate roles, systems,

information carrier etc.

3.1 Design to-be IT architecture3.2 Develop weakness cause

elimination approach for allrelevant weakness clusters

3.3 Create to-be process definitionand map solutions

3.4 Detail process description onactivity level

3.5 Consolidate roles, systems,information carrier etc.

3.6 Derive necessary adoptions ofthe organizational structure

3.7 Develop business case

Activities for all Solution Tracks4.1 Elaborate solution approach per

business process4.2 Develop transformation roadmap4.3 Transform IT architecture4.4 Identify requirements for master

data conceptSolution Tracks

Core ConfigurationCore enhancementSOA/CompositionThird Party Solution

• Detailed to-be design forweakness elimination regardingall aspects evaluated during as-is

• IT capabilities

• Clearly defined and agreedproject goal

• List of prioritized processes to beanalyzed in detail

• Identify relevant architecturetopics

• Prioritized and clustered list ofweaknesses regarding process,organizational or IT technicalaspects

• BPM Blueprint that providesdetails of identified solution tracksand their relevant contents


Phase 1: CalibrationApproach & Deliverables

OutputThe results are documented in the BPM Blueprint.

AbstractThe goal of the Calibration phase is to select the business processesto be analyzed in detailDelivers an overview regarding

Business strategyIT strategyProcess landscape

Activities

Review and define businesssuccess factorsReview and define high levelprocess landscapeDefine process evaluationcriteria based on successfactorsSelect RepresentativeOrganizationsEvaluate processesPrioritize processes to beanalyzedDefine KPIs for the processin scope

High-LevelProcess LandscapeBusiness Success Factors Prioritized Business

Processes

Project 1

Project 2

Project n

As-IsAnalysis

To-BeDesign

SolutionTransformationCalibration

1 2 3 4


Phase 2: As-Is AnalysisApproach & Deliverables


AbstractDerive Business Process List and as-is process descriptionIdentify, understand and categorize weaknesses and customer painpointsUnderstand as-is system landscape

Activities

Map process flowIdentify process goalsIdentify relevant processparametersIdentify processweaknesses/pain pointsIdentify interdependenciesand cluster weaknessesAssess and prioritizeweaknesses clusterDevelop a first vision of to-beDocument as-is processes (ifnecessary)

As-IsAnalysis

To-BeDesign

SolutionTransformation

2 3 4

Business Processeswith Weaknesses Weakness Clusters


Phase 3/To-Be DesignApproach & Deliverables


AbstractThe goal of the proposed process design is to define and documentoptimal processes.All identified weaknesses with high priority should be eliminated.The documentation of the proposed business processes shouldinclude process flows, the underlying organizational structure andoptimal system support.

Activities

Develop solution approachesfor all relevant weaknessclusterDevelop a first draft of a to-be process modelDevelop a detailed to-beprocess modelDocument to-be processesFreeze To-BeCalculate optimizationspotential

To-BeDesign


3 4

Value MapLow Fidelity Mock-Up,User-Centered Design

P1

Direct cost [€]

P2

P1 Business Process 1P2 Business Process 2

e.g. 300,000

xxx

xxx

e.g. 600,000

xxx xxx e.g. 3 m e.g. 4 m

Process Landscape,To-Be Business Processes,

Business Process Description


Phase 4: Solution TransformationApproach & Deliverables


AbstractProvide decision and informationbase for generic content ofsolution tracks:

Core configurationCore enhancementSOA/CompositionThird Party solution

Activities

Identify necessarycomponents/systems orservices to support to-beprocessesMap to-be processes toexisting solutions or servicesEstablish implementationcontrollingAnalyze organizational andmaster dataIdentify gapsDefine system landscape ornecessary servicesDefine integration roadmapand transformation actionplan between all processes inscope


4

Business Processes List SOA/Composition


SummaryResults & Benefits

Deliverables

Wha

t?W

hat?

Benefits

Why

?

Business Strategy linked to IT Strategy

Identified areas of improvement linked to thebusiness requirements of each Business unit

Industry Reference Content

Improved End-End Business Process Maps

As-Is Process & Pain-points Descriptions

Business Value Drivers & Detailed KPIStructure , Measurement

Evaluated IT Landscapes alternatives

Key know how on Industry Best Practices &Value Management concepts

Improved Business Process Design forCustomer’s Business Units

Solid basis for measuring value throughprocess improvement using defined KPIs

Optimized mapping to underlying solutions

Technology outlook enabling prioritization ofbusiness issues

How

?H

ow?

Who

?W

ho?

Comprehensive target IT landscape

Comprehensive mid-term ImplementationRoadmap that considers BU-dependencies(Roadmap, Budget, Period)

Long term / strategic roadmap that outlinesthe ESA architecture landscape

Process Owners per Business Area

Clearly defined Roles & Responsibilities

Supporting Business Rules

Organizational Alignment

Consistent prioritization of Business & ITinitiatives

Midterm Planning alignment with SAPproduct strategy

Long-term planning alignment with SAPtechnology strategy

Alignment of the organization with newimproved processes & technology

Faster, more flexible Business Platform

Clear Governance : No overlaps in coverage


Project Accelerators (1)Additional SAP Resources to support our teams during projects

Strategic KPIs Typical Industry Issues

Key Industry Drivers Value Scenarios for Industry


Project Accelerators (2)Sample Industry KPI & Benchmarks to support our teams during projects

KPI 1:

Reduce the Cost to Support Sales andOperations Planning : Sales and OperationsPlanning Cost as a Percent of Revenue

Calculation :(Sales and Operations Planning FTEs* S&OPAverage Fully Loaded Cost per FTE + Sales &Operations Planning External Spend ) / TotalRevenue

KPI 2 :

Revenue Loss due to Stock-Outs as a Percentof Total Revenue: Reduce Revenue Loss due to Stock-Outs

Calculation :Annual Revenue Loss due to Stock-outs/ TotalRevenue

KPI 3 :

Days In Inventory (DII): Reduce Days In Inventory (DII)

Calculation :(Total Inventory *365)/( Cost of Goods Sold (%of Revenue)* Total Revenue)

Value Driver Best Peer /Industry Best *

ImprovementPotential

Demand Forecast Accuracy 96% 5 - 10%

Increase Sales by Accurate Demand Forecasts(Stock-Outs as % of Revenue) 0,05% 3) 3 - 5%

Increased Earnings from ReducedManufacturing Cycle-Time (day) 1,5 3) 3 - 5%

Capacity Utilization 93% 3 - 5%

Reduce Warehouse Management Cost(as a Percent of Revenue) 0,34 % 3) 5 - 10%

Reduce Total Inventory Carrying Cost(% of Inventory) 3 - 5%

Reduce Days In Inventory (DII) 57 (BASF) 5 - 10%

Reduce Total Transportation Cost(% of Revenue) 0,50% 3) 3 - 5%

Percent of Orders Delivered On-Time 96% 3 - 5%

Percent of Orders Delivered On-Time 96% 3 - 5%

* based on (3) SAP Benchmark, Chemical Industry Best in Class** strategic KPI, not monetized here and not included in benefit values

Asse

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ion

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Adap

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SCVi

si-

bilit

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Agenda








Key AssumptionsPrerequisites for Business Process Consulting Services Deliverables

Identification of Strategic TopicsProcess Improvement projects are typically carried out forkey selected Business Value Drivers. At a high level,clarity should exists on which business areas andsubsidiaries will be covered

Identification of ProjectsFor the above selected area, many customers alreadyhave some on-going improvement projects or relateddocuments from previous projects. Please identify thesame to ensure project adheres to timelines

Identification of Project LeadFor successful Business Transformation and futureimplementation, it’s critical to select a strong seniorProject Lead from Business side with strong BPMKnowledge and Change Management skills

Identification of Core TeamAs future process improvement projects are likely carriedout internally, it’s crucial that selected team for 1st Phasedevelop strong BPM & Value Management conceptsduring the projects. Hence, Team Members should beselected with these criteria in mind


Key AssumptionsProject Related Areas

Identification of Project ScopeDetailed project scope will be defined during the

Calibration Phase. Only the X selected businessprocesses ( defined at Level 2 ) will be covered.Incase any more are needed, the project timelinewill be extended based on T&M basisMan-days will be given as per our best estimatesat point of proposalProcess Improvement Projects implementation isoutside the scope

ResourcesAvailability of customer’s resources or keystakeholders (in a timely manner) for interviews/workshops is essential for our consultants toadhere to the project timelineConsultants are subject to their availability at thepoint of contract signing


Resources & Estimated Efforts

ExecutiveSponsorship

Senior SAP Executive C-Level Executive

• Define engagement objectives• Commit SAP resources• Provide overall thought

leadership and direction

ProjectLeadership

BTS Principal Manager with strongcredibility & access

• Define engagement objectives• Set expectations with and provide

access to key stakeholders• Internal communication of findings

• Provide engagement leadership• Use SAP’s tools and drive

process for informationgathering, analysis andpresentation

• Set-up interviews/workshops withstakeholders

• Provide company specificinformation

• Act as a “sounding board”• Integrate findings with

implementation team andbusiness lead activities

Execution BTS, additional experts as needed Business process owners/leads,implementation team leads

CustomerCustomer


Sample Engagement model

Finance

Procure to Pay

Plan to Produce

ProjectManagement + PMO

ValueManagement

Steering Committee ExecutiveEngagement Sponsor

Project Manager

AccountManagement

Representative Business and IT

Representative Business and IT

Representative Value Management

…..

Precious Metal

Industry Expert

Technology

TBDTBD

Business

Customer Logo

Customer Logo Customer Logo


Key Critical Success Factors

Management commitment to the projectBusiness driven thinking to surface real business requirementsKnowledgeable participants responsible for one or more business processes.Clear and well defined business and project goals communicated to all stakeholdersAvailability of existing documented business processes and systemsOpen mindset to new ways of workingWillingness to consider SAP / industry best practices where appropriatePrompt decision-making and issues resolutionChange management activities are encouraged and carried out effectivelyExpertise and information readily available for non-SAP modulesAssignment of Business Owners and/or Subject Matter Experts in each functional area toparticipate on a significant basis thorough out the project duration.Empowered and full-time project teamCustomers and SAP will endeavor to ensure there is continuity of resources from theirrespective organizations throughout the duration of the project. Consultants are offeredsubject to their availability at the point of signing the contract. In the event they are notavailable, SAP may replace them with similarly qualified consultants.


Agenda








BTS Value Driven Services are Cited as one of the “Top 10Reasons” Customers Choose SAP


Project ExamplesWhat Customers Have Gained from Our Projects

Automotive Company Consumer ProductCompany

Energy ServiceProvider

Business Process OptimizationPlanning and redesigning the global parts

distribution network

• Reduced inventory and increased order fillrate

• Lower TCO due to harmonized ITarchitecture

• Lower labor and process costs dueto streamlined processes

Program MethodologyBenchmarking

Comparing customer’s programmethodology to best practices and deriveclear recommendation to reduce program

time and cost

• Reduction of implementationprogram cost by 15%

• Significant improvement of methodology forfuture projects

Business and IT LandscapeTransformation

Approach for harmonizing businessprocesses and developing a robust IT

landscape to support expansion into newmarkets

• Higher reporting transparency based onharmonized processes

• Future-proof IT landscape• Reduced TCO through replacing country

stand-alone systems

Business Efficiency ThroughIT Optimization

Fast return through benchmarking Effective transformationfor growth


Project ExamplesWhat Customers Have Gained from Our Projects

Business Process Designand Prototyping

Best-practice process design andprototyping of solution for new productionsite in Asia

• Clear view on feasibility of processesdesigned

• Subsequent implementation of processesand systems performed in less than 6months meeting the ambitious deadline

Innovative Markdown PricingStatistical analysis and modeling to optimize

markdown prices: knowing when to leavethe current price, when to cut the price, and

by what discount

• Profit increase of 6%• Revenue increase of 9%• Units sold increase of 12%

Effective design and execution Fast return through innovation

Energy EquipmentProvider

Retail Company


Çallk Uses Transformation Services fromSAP® Consulting to Improve Performance


Glass Packaging Producer Enlists the Helpof SAP® Consulting


SAP‘s hugely successful books on BPM

1 2

1ST Book : Explained BPM Methodology & Governance concepts with customer success stories

2ND Book : Explains how to apply Real-World BPM in an SAP Environment

Thank You!

Carola Feind-Just

Business Transformation ServicesMobile : +49 151 5711 8299E-mail :[email protected]


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