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Applying Real-World BPM in an SAP Environment

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Product Details

ISBN:
978-1-59229-343-8
Author(s):
Ann Rosenberg, Mark von Rosing, Greg Chase, Rukhshaan Omar, and James Taylor
Type:
Hardcover, 694 pages
Year:
2011

Product Description and Table of Contents

• Learn what business process management (BPM) is and how to get started within an SAP context
• Benefit from a comprehensive compilation of use cases from early adopters
• Discover SAP technology, methodology, governance, process-based implementation content, and performance & value metrics

In this unique book, you will learn how to span the gap between business processes and information technology, as well as how to apply BPM within SAP projects. The authors provide extensive information on everything you need to know about the processes and methods to implement BPM (new ASAP, process-based implementation content, BPM technology, and more). Through real-world examples, best practices, and advice from SAP experts, you will understand how BPM works and how you can best use it to your advantage. Additionally, use cases from industry leaders and innovators show you how these early adopters improved their businesses by using BPM technology and methodology.

Linking Strategy to Operation
Explore how a company’s business model is linked to the process model, therefore including performance and value drivers.

BPM Anatomy
Get an in-depth look at what makes BPM in SAP environments so effective, and understand all of the options and unique add-ons that are available for you to link to your SAP system.

Real-Life Examples
Explore use cases from different industries to understand how BPM can be applied to your project to maximize efficiency, streamline process performance, achieve performance and value creation, and optimize customer relations.

Applicable Software for BPM
Learn how standard software in general and SAP products in particular relate to the BPM approach.

Bonus Material
Access additional articles via the SAP PRESS website on some of BPM’s future trends and more advanced fields from top BPM and SAP experts and researchers.

Highlights

• Business Model Management
• Performance and Value Drivers
• ASAP 7 Core Methodology and Business Add-Ons to ASAP
• Implementation Quality and Process-Based Implementation
• Governance Framework and Agile Methodology
• Enterprise Architecture and SOA
• SAP NetWeaver BPM and BRM
• SAP NetWeaver Composition Environment
• Rules and Decision Management
• Process Lifecycles
• Business Value Management

The Authors

The authors are the top of their fields at SAP, in research, and are innovative thought leaders within BPM.

Table of Contents

  • ... Foreword ... 17
  • ... Introduction ... 19
  • PART I ... Business Process Transformation ... 21
  • 1 ... The Importance of a Business Model ... 23
  • 1.1 ... Explaining the Difference in Overall Output Performance ... 23
  • 1.2 ... Revisit the Enterprise Model During Economic Turmoil ... 27
  • 1.3 ... Core Competitive and Core Differentiated Positioning ... 29
  • 1.4 ... A Historic View of Business Models ... 31
  • 1.4.1 ... The Development of Business Model Concepts ... 35
  • 1.4.2 ... Business Model Component Development ... 36
  • 1.5 ... New Form of the Business Model Concept ... 40
  • 1.5.1 ... Resources ... 43
  • 1.5.2 ... Capabilities and Abilities ... 44
  • 1.6 ... The Logic of a Business Model Framework Based on Competencies ... 46
  • 1.6.1 ... Flexible and Free Connection of the Competencies ... 48
  • 1.6.2 ... Consistency and Union of the Competencies ... 49
  • 1.7 ... Organizing Business Competencies ... 49
  • 1.8 ... Summary and Conclusion ... 52
  • 2 ... Business Model Transformation Toward the Service-Oriented Enterprise ... 55
  • 2.1 ... Adaptation of the Service-Oriented Enterprise ... 56
  • 2.1.1 ... Adaptation Driver: Increased Service Orientation ... 58
  • 2.1.2 ... Adaptation Driver: Networked Business ... 58
  • 2.1.3 ... Adaptation Driver: Power-Shift from Supply- to Demand-Side ... 59
  • 2.1.4 ... Service-Oriented Enterprise as Goal – Transformation as Journey ... 59
  • 2.2 ... Business Transformation Change Levers ... 60
  • 2.2.1 ... Change Lever: Customer Offering ... 61
  • 2.2.2 ... Change Lever: Business Model ... 62
  • 2.2.3 ... Change Lever: Value Creation Coordination ... 63
  • 2.3 ... Business Transformation Case Studies ... 64
  • 2.3.1 ... Case Study: Rolls Royce Total Care ... 64
  • 2.3.2 ... Case Study: Arvato Lead Logistics Services ... 65
  • 2.3.3 ... Case Study: Hewlett Packard Managed Printing Solutions ... 66
  • 2.3.4 ... Lessons Learned from the Cases ... 67
  • 2.4 ... Information Technology as Dynamic Capability of Business Enablement ... 69
  • 2.5 ... Process-Centric IT Lifecycle Management ... 73
  • 2.5.1 ... Closing the Loop of Business Process Management ... 73
  • 2.5.2 ... Accelerating the Process Lifecycle ... 75
  • 2.6 ... Reaping the Promised Value of Reusing Information and Services ... 77
  • 2.7 ... Summary and Recommendations ... 79
  • 3 ... Practical Example: How to Develop Performance and Value Drivers ... 85
  • 3.1 ... The Need for Performance and Value Creation ... 86
  • 3.2 ... Performance and Value Drivers ... 88
  • 3.2.1 ... Value Planning and Identification ... 92
  • 3.2.2 ... Value Creation ... 94
  • 3.3 ... Dimensions of PPI Measurement ... 101
  • 3.4 ... Summary and Conclusions ... 102
  • 4 ... The Holistic Approach: Combining BPM with Value and Performance Management, Enterprise Architecture, Governance, and SOA ... 105
  • 4.1 ... Applying the Different Approaches ... 106
  • 4.2 ... Innovate Your EA Framework with BPM and Value and Performance Management Principles ... 107
  • 4.3 ... Solution Transformation – Harmonizing Enterprise Architecture, BPM, and SOA ... 114
  • 4.4 ... Summary and Conclusions ... 117
  • 5 ... Conclusion ... 121
  • PART II ... BPM Case Studies from the Real World ... 123
  • 6 ... Observing How SAP Customers Approach BPM: The Gap between Business and IT in BPM Projects ... 125
  • 6.1 ... BPM Usage Clusters in Industry and Application Use Cases ... 127
  • 6.1.1 ... Most Common Industries Adopting BPM ... 127
  • 6.1.2 ... Most Common Applications for BPM ... 128
  • 6.2 ... Typical Business Requirements Satisfied by BPM ... 129
  • 6.2.1 ... Articulating and Prioritizing Business Goals and Problems ... 129
  • 6.2.2 ... Qualifying Questions to Instate BPM Projects ... 130
  • 6.2.3 ... Orchestrating Dependent Actions in a Sequence ... 130
  • 6.2.4 ... Orchestrating Actions that Bridge Multiple Systems ... 131
  • 6.2.5 ... Orchestrating Actions Between Organizations ... 132
  • 6.2.6 ... Architecting Processes for Change ... 132
  • 6.2.7 ... Process-Specific User Interfaces ... 133
  • 6.2.8 ... Measuring and Monitoring Business Processes ... 134
  • 7 ... First Applications: Enterprise Information Management ... 135
  • 7.1 ... INVISTA: Enabling Cross-System Master Data Management ... 136
  • 7.1.1 ... Background ... 137
  • 7.1.2 ... BPM Solution ... 138
  • 7.2 ... Ericsson: Using Business Rules to Enable Globalization of Supplier Master Data Governance ... 141
  • 7.2.1 ... Background ... 142
  • 7.2.2 ... BPM Solution ... 143
  • 7.3 ... SAP IT: Accelerating Postmerger Data Enrichment and Migration ... 150
  • 7.3.1 ... Background ... 150
  • 7.3.2 ... BPM Solution ... 154
  • 8 ... Industry-Specific Processes ... 161
  • 8.1 ... Patrimonio Hipotecaria: Supporting Unique Mortgage Processes Attached to SAP for Banking ... 163
  • 8.1.1 ... Background ... 164
  • 8.1.2 ... BPM Solution ... 166
  • 8.2 ... Coca-Cola Erfrischungsgetränke AG: Promotion Material Planning and Procurement as an Extension of SAP Trade Promotion Management ... 171
  • 8.2.1 ... Background ... 171
  • 8.2.2 ... BPM Solution ... 174
  • 8.3 ... GISA: Increased Competition in Utilities Demands Efficient Customer Service Connections ... 179
  • 8.3.1 ... Background ... 179
  • 8.3.2 ... BPM Solution ... 181
  • ... Siemens IT Solutions and Services: Balancing Standardization and Customizability in a New Solution Siemens IT Solutions and Services: Balancing Standardization and Customizability ... 184
  • 8.4.1 ... Background ... 184
  • 8.4.2 ... BPM Solution ... 186
  • 8.5 ... RS Components: Automating Supply Chain Collaboration for Inventory Planning and Supplier Performance Management ... 189
  • 8.5.1 ... Background ... 190
  • 8.5.2 ... BPM Solution ... 191
  • 9 ... BPM, Business Transformation, and Continuous Process Improvement ... 197
  • 9.1 ... KAESER KOMPRESSOREN: Transforming from a Products Company to a Service Company ... 197
  • 9.1.1 ... Background ... 198
  • 9.1.2 ... BPM Solution ... 199
  • 9.2 ... Braskem S.A.: Realizing the Value of Efficiency and Visibility in Supplier Processes ... 205
  • 9.2.1 ... Background ... 206
  • 9.2.2 ... BPM Solution ... 209
  • 10 ... Good Ideas for BPM ... 217
  • 10.1 ... Public Sector: Potholes and Green Area Maintenance – Taxpayers Get More for Their Buck ... 217
  • 10.1.1 ... Background ... 218
  • 10.1.2 ... BPM Solution ... 221
  • 10.2 ... Airline: Streamlining the Maintenance Process for the Transportation Industry with BPM ... 227
  • 10.2.1 ... Background ... 228
  • 10.2.2 ... BPM Solution ... 231
  • 11 ... Planning for BPM Transformation ... 235
  • 11.1 ... Hospira: Integrating Architecture to Become Process-Centric ... 235
  • 11.1.1 ... Company Profile ... 236
  • 11.1.2 ... Need for Business Process Management Discipline ... 237
  • 11.1.3 ... Architecture Practice and BPM ... 238
  • 11.1.4 ... BPM Solution ... 241
  • 11.1.5 ... BPM Center of Excellence (CoE) ... 246
  • 11.1.6 ... Building a BPM Community of Practice ... 249
  • 11.1.7 ... Lessons Learned ... 249
  • 11.1.8 ... What’s Ahead? ... 250
  • 11.2 ... Danish Defense: Value Drivers in Corporate Businesses ... 251
  • 11.2.1 ... The Importance of Having the Right Business Model in Place ... 253
  • 11.2.2 ... The Need to Describe the Business Model ... 255
  • 11.2.3 ... The Need for Business Governance ... 257
  • 11.2.4 ... Implementing BPM in the Danish Defense ... 268
  • 11.2.5 ... BPM and Core Business ... 282
  • 11.2.6 ... Danish Armed Forces BPM and Technology Delivery ... 284
  • 11.2.7 ... Terminology and Conventions ... 287
  • 11.2.8 ... Technology Delivery ... 290
  • 11.2.9 ... Implementation of Change ... 291
  • 11.2.10 ... Conclusion ... 293
  • 12 ... Conclusion ... 295
  • PART III ... BPM Anatomy for Implementations ... 297
  • 13 ... Methodology and Governance ... 299
  • 13.1 ... SOA Survey ... 300
  • 13.1.1 ... Feedback Survey for the Methodology ... 300
  • 13.1.2 ... Key Observations and Trends in SOA Projects ... 301
  • 13.1.3 ... Summary ... 308
  • 13.2 ... How to Combine Business Modeling and Process Modeling ... 308
  • 13.2.1 ... Business Model Innovation and Optimization ... 309
  • 13.2.2 ... How To Create Value in Connecting the Business Model and Processes ... 309
  • 13.2.3 ... The Limitation of Having Only a Process Focus ... 311
  • 13.2.4 ... The Holistic Approach – Creating Value by Connecting the Business Model to the Processes ... 315
  • 13.2.5 ... Business Model Approach to Connecting Strategy to Business Model and Business Model to Operational Model (Processes) ... 316
  • 13.2.6 ... Process Identification and Harmonization on the Strategic Level ... 324
  • 13.2.7 ... Process Identification and Harmonization on the Tactical Level ... 325
  • 13.2.8 ... Harmonization through a Simple Pattern Using the ICASIO Approach ... 327
  • 13.2.9 ... Definition and Validation of Process Step Variants Using the RACI Model Approach ... 329
  • 13.2.10 ... Process Identification and Harmonization on the Operational Level ... 332
  • 13.2.11 ... Conclusion ... 337
  • 13.3 ... ASAP Methodology 7 Core ... 339
  • 13.3.1 ... Project Preparation ... 342
  • 13.3.2 ... Business Blueprint ... 353
  • 13.3.3 ... Realization ... 363
  • 13.3.4 ... Final Preparation, Go-Live Support, and Run ... 377
  • 13.4 ... Business Add-Ons to ASAP ... 387
  • 13.4.1 ... Business Add-Ons to ASAP – a New Flavored Approach ... 388
  • 13.4.2 ... Tools for Applying Business Add-Ons to ASAP ... 393
  • 13.4.3 ... Business Add-Ons to ASAP Methodology, Governance Frameworks, and Implementation Technology Content: Part I ... 398
  • 13.4.4 ... Business Add-Ons that Deliver Methodology, Governance Frameworks, and Implementation Content: Part II ... 408
  • 14 ... BPM Tools — From Modeling to Execution ... 413
  • 14.1 ... Composite Development Architecture Guidelines ... 414
  • 14.1.1 ... Value Proposition of SAP NetWeaver CE ... 414
  • 14.1.2 ... Platform Overview ... 414
  • 14.1.3 ... Structure of Composites ... 419
  • 14.1.4 ... Separation of Functionality ... 443
  • 14.1.5 ... SOA Pattern ... 463
  • 14.1.6 ... Conclusion ... 474
  • 14.2 ... Highlights of the Innovation Provided by SAP NetWeaver BPM and BRM ... 475
  • 14.2.1 ... Business Analyst Experience ... 475
  • 14.2.2 ... Process Developer Experience ... 476
  • 14.2.3 ... Improved Business Insight ... 478
  • 14.2.4 ... Interoperability with SAP Applications ... 478
  • 14.2.5 ... Interoperability with Other Task User Interfaces ... 479
  • 14.3 ... Handling Decisions and Business Rules in a BPM Approach ... 480
  • 14.3.1 ... The Power of Decisioning ... 481
  • 14.3.2 ... Identifying Operational Decisions ... 486
  • 14.3.3 ... Implementing Decisions with Business Rules ... 492
  • 14.3.4 ... Best Practices in Decision Management ... 499
  • 14.3.5 ... Governance ... 508
  • 14.3.6 ... Managing the Organizational Implications ... 511
  • 14.4 ... Business Rules Management from SAP ... 513
  • 14.4.1 ... Roots of Business Rule Framework Plus ... 513
  • 14.4.2 ... Roots of SAP NetWeaver BRM ... 513
  • 14.4.3 ... Business Rule Framework Plus ... 513
  • 14.4.4 ... SAP NetWeaver Business Rules Management ... 529
  • 14.4.5 ... Usage Recommendations ... 541
  • 14.5 ... Simple Sample Application for Enterprise Service Consumption ... 545
  • 15 ... Process-Based Implementation Content ... 553
  • 15.1 ... Business Add-Ons to ASAP that Deliver Implementation Content ... 554
  • 15.1.1 ... Business Add-On to ASAP Delivering Point of Sales Implementation Content ... 555
  • 15.1.2 ... Business Add-Ons to ASAP that Deliver Small SOA/BPM-Based Implementation Content Packages ... 559
  • 15.2 ... SAP Rapid Deployment Solutions ... 563
  • 16 ... Enablement and Communities ... 565
  • 16.1 ... Enablement: People as Key Success Factor ... 566
  • 16.1.1 ... The Link Between IT and Business ... 567
  • 16.1.2 ... Role-Based Education for Organizational Performance ... 568
  • 16.1.3 ... Roles and Required Skills ... 571
  • 16.1.4 ... Summary ... 574
  • 16.2 ... Enablement: SAP University Alliances BPM Curriculum ... 574
  • 16.3 ... Enablement: Starter Kit for Business Process Management, an Add-On to ASAP ... 576
  • 16.3.1 ... Benefits and Target Audience ... 576
  • 16.3.2 ... Navigating Through the Starter Kit for BPM, an Add-On to ASAP ... 577
  • 16.4 ... Enablement: SOA KIT, an Add-On to ASAP ... 579
  • 16.5 ... Enablement: SOA CIO Guide — Abstract ... 582
  • 16.5.1 ... Solution Space and Key Capabilities ... 582
  • 16.5.2 ... Reference Architectures and Maturity Model ... 584
  • 16.5.3 ... SAP Product Implementation Guidance ... 596
  • 16.5.4 ... Trends and Roadmap ... 597
  • 16.5.5 ... Conclusion ... 597
  • 16.6 ... Enablement: Value Prototyping ... 598
  • 16.7 ... Enablement: SAP Value Partnership ... 600
  • 16.8 ... Enablement: Composite in a Day Workshop ... 600
  • 16.9 ... Enablement: Communities ... 604
  • 17 ... Conclusion ... 607
  • PART IV ... Future Outlook ... 613
  • 18 ... Future Trends for BPM ... 615
  • 18.1 ... BPM Future Outlook: Six Ideas ... 615
  • 18.1.1 ... Supporting the Knowledge Worker ... 616
  • 18.1.2 ... Fostering Collaboration ... 616
  • 18.1.3 ... Responding to Rapidly Changing Situations ... 617
  • 18.1.4 ... Working Any Time, Anywhere ... 617
  • 18.1.5 ... Developing Process Skills ... 618
  • 18.1.6 ... Giving Control to the Business ... 618
  • 18.1.7 ... Summary ... 619
  • 18.2 ... BPM for Knowledge Workers ... 619
  • 18.2.1 ... What Is a Business Process? ... 619
  • 18.2.2 ... What Is a Business Practice? ... 622
  • 18.2.3 ... Business Practice Example: Part Replacement ... 625
  • 18.2.4 ... SAP ASAP Methodology ... 627
  • 18.2.5 ... Summary ... 629
  • 18.3 ... Exploring Additional Future BPM and SOA Trends ... 629
  • 18.3.1 ... “Business Process Management and Semantic Interoperability” by Alexander Dreiling ... 630
  • 18.3.2 ... “SOA for Business Networks – Service Delivery Framework” by Alistair Barros ... 631
  • 18.3.3 ... “A Requirements Framework for Semantic Business Process Modeling” by Alistair Barros and Ingo M. Weber ... 632
  • 18.3.4 ... “Process-Centric Decision Support” by Mathias Fritzsche, Wasif Gilani, and Michael Picht ... 633
  • 18.3.5 ... “Semantic Technologies: An Enabler of Intelligent Business Processes” by Ivan Markovic ... 634
  • 18.3.6 ... “Customer and Partner Views on the Future of BPM: A View from Two SAP Mentors” by Twan van den Broek and Richard Hirsch ... 635
  • ... Appendices ... 637
  • A ... IT Performance and Value Management Research ... 639
  • B ... Value Driver Processes Sorted After Strategic, Tactical, and Operational Levels ... 641
  • C ... Bibliography ... 657
  • D ... The Authors ... 673
  • ... Index ... 687



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Download: Six bonus articles for readers of this book

Product Reviews


  1. Good Reference

    Posted by Brent Xi on Jan 7th, 2014

    I use this book for BPM study and reference. This helps me understand clients' business blueprints more effectively.


  2. SAP BPM Guide

    Posted by Krishna on Jul 22nd, 2013

    It provides the complete understanding of BPM in SAP space and its offerings with relevant case studies. It is a good book for anyone for their BPM initiatives using SAP technologies.


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