Corinne Reisert Sarah Zelt Joerg Wacker

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Presentation transcript:

Corinne Reisert Sarah Zelt Joerg Wacker How to Move from Paper to Impact in Business Process Management. The Journey of SAP Corinne Reisert Sarah Zelt Joerg Wacker

INTRODUCTION

Introduction Objective: Summarizes SAP’s BPM journey from paper to impact presenting a case that shows how BPM can be set up in organizations Fast Facts about SAP: Market leader in enterprise application software with 44 year history of innovation and growth Annual revenue (IFRS) of €20.793 billion More than 77,000 employees in more than 130 countries More than 300,000 customers in 190 countries Process Management at SAP: “Run Simple” as the operating principle Chief Operating Officer (COO) is responsible for the company’s process office COOs of each business unit agree on the joint execution of the SAP strategy and a common portfolio of process improvements

SITUATION FACED

Situation Faced Pressures to produce innovative solutions faster and more simply Transformation of research and development processes Move away from complex and static project methods toward agile and simple processes Positive experiences leading to an increased emphasis on Business Process Management (BPM)  Goal: Implement BPM initiatives on a company-wide level to establish a process infrastructure and a process improvement culture

ACTION TAKEN

Actions taken Productivity Consulting Group (PCG)  strengthen the importance of BPM throughout the company SAP Process Map  create transparency in SAP’s key processes, roles, and responsibilities SAP Process Maturity Model  constantly increase the maturity of SAP’s processes Approaches for performance measurement and process improvement A portfolio of BPM-related services  support Process Managers on their way to reaching process excellence Strengthening BPM Community  foundation for BPM at SAP

SAP Process Map

SAP Maturity Model Maturity Level 0: The process is neither transparent nor managed. Maturity Level 1: The process is transparent. Basic process documentation (included in the SAP Process Map) is available. An accountable Process Manager and Business Owner are named. The degree of process standardization is transparent (e.g., is this process a global process applicable to all of SAP’s local Market Unit or are there local variants (e.g., to reflect local legal regulations)?) Knowledge transfer through such efforts as internal training and process handbooks is available to ensure that process participants have the required knowledge to execute the process. Maturity Level 2: The process is managed. Process operation, input and output is measured, monitored, and transparent to decision-makers. PPIs are regularly monitored using SAP standard software. “Customers” of the process are named—for example, a Manager who is looking for a new hire is the customer of the HR recruitment process—and their top three requirements are defined. Detailed process documentation is available (included/linked in the SAP Process Map). Process variants are documented. Risk assessment is performed. Maturity Level 3: The process is on a high level of optimization and is continuously improved. The process vision is defined. Annual improvement targets are defined. Service level agreements are established. SAP standard systems are applied to support the process’s execution. Online real-time process data is available for processes that are supported by SAP tools. Accountability for the process output is ensured. A continuous improvement process is established. Process standardization is higher than 80 percent.

BPM Community

BPM related Services

RESULTS ACHIEVED

Results achieved A process-management infrastructure was established throughout the company leading to transparency in SAP’s key processes and measurable process improvements: Process modelling as critical activity in understanding complexity and the basis for process improvement More than 626 employees with a modeling editor More than 1,200 employees are enrolled in internal training 92 percent of all Level 3 processes are documented and published in the SAP Process Map 1,023 processes on Level 3 and below are documented SAP Process Map also serves as a reference structure for IT projects, the enterprise architecture, idea management, business continuity, and the data privacy and protection office Fact-based instrument through process measurement that supports discussions with management and process customers and that helps to measure business performance High satisfaction (based on a sample of 100 projects per year: 20:1 payback and customer satisfaction > 75%) Significant reduction of processing times (e.g. marketing services process time reduced by up to 74%; simplified food-counter process)

LESSONS LEARNED

Lessons learned Strategic alignment of BPM with top management support Strong governance with the SAP Process Map, the SAP Process Maturity Model, and BPM standards A lively and engaged BPM community  Implementing BPM from a top-down perspective helps, but building an understanding of BPM and its value from the bottom-up is also required