Use Cases Scenarios Enhance Extend and Optimize SAP

Use Cases & Scenarios Enhance, Extend and Optimize SAP Processes across the Value Chain for Achieving Business Differentiation, Flexibility and Agility Logan Vadivelu WW Smarter Process Technical Leader & SAP SME Distinguished Chief IT Architect (The Open Group) logan. vadivelu@in. ibm. com June 2014 © 2014 IBM Corporation

Topics § What Capabilities IBM BPM offer to help SAP Customers ? § Example Scenarios / Use Cases 2 © 2014 IBM Corporation

Core IBM BPM for SAP Capabilities Innovation Reduce blueprinting time, cost and risk Iterative Business Blueprinting Use an iterative, experiential-based approach to accelerate traditional SAP blueprinting with SAP Solution Manager Transformation Improve process reliability, flexibility, visibility and control Guided Workflow Interactively guide end users through SAP Transactions to improve productivity, visibility and consistency Improve process efficiency and reduce business complexity Process Discovery and Monitoring Process Integration and Orchestration Decision Automation Mine SAP Business Events to discover actual processes and act in real time to business challenges Optimize process steps to improve cycle time, manageability and visibility of key processes Automate complex decision making to reduce bottlenecks and improve business outcomes Process Automation Dramatically reduce the cycle time of high volume processes by reducing/removing human interaction Business Optimization Potential Non-disruptive to SAP IBM BPM plugs into SAP Solution Manager and makes it easier to model business processes, in a roundtrip fashion Non-disruptive to SAP: IBM BPM generates business process applications that guide users through SAP screens & track process metrics for better productivity and control Non-disruptive to SAP Business Monitor tracks existing SAP transactions with workflow context to better manage existing processes with BAM dashboards Incremental Innovation: IBM BPM enables drastically easier enterprise service integration, process orchestration, inline business rules and process automation… in ways that enable business-driven improvements with less risk, quicker results and more agility. © 2014 IBM Corporation

Education & Office Automation Use Cases General Use Cases / Areas § Collaborative / Ad-hoc scenarios § Shared Services in HR & Finance (AP / AR) § SAP phased roll out of modules § Business Exception Handling (in AP, AR) § Reducing SAP custom development § Office Automation Use Case Examples § Student Registration & On boarding § Management of Grant / Curriculum / Course Registration / Research Administration § Asset Management § PO / Contract Management / RFQ Management § Vendor sourcing and procurement compliance § Billing / Invoice Dispute management in Procure-to-Pay § Etc …. . © 2014 IBM Corporation

Level 3 Example – Order to Cash Level – 3 Process - - Order-to-Cash No Verify Customer & Product Info Enter Order Data Pick & Pack Goods Create Delivery Invoice Customer Level 4 Process Step Credit Limit Exceeded ? Yes Post Goods Issue Auto Release Block ? Yes Release Credit Block No Review Credit Increase Post Payment No Manager Approval Credit Approved ? Hold Order © 2014 IBM Corporation

Level 3 Example – Order to Cash & Product Returns / Exchanges Level – 3 Process - - Product Exchange / Return Exchange Submit Returns Request Authorize Returns Create Returns with Free of Charge Subsequent Delivery Post Goods Issue for the Delivery Obtain Customer Confirmation Level 4 Process Step Exchange or Return Yes Return Create Returns Delivery Post Goods Receipt for the Return Create Credit Memo Obtain Approval Require Approval ? No Issue Credit Memo © 2014 IBM Corporation

Procurement Collaboration – Value Chain - Buyer & Vendor © 2014 IBM Corporation

Example: Applying BPM for Process Simplification and Optimization Custom Implementation (no BPM) : E-mail based, disconnected, No collaboration, No visibility, Not easy to change, High Ta. T (turn around time) Research Assc Sends PR via EMail Finance Analyst Checks Budget Covers? Sends PR to Buyer via E-Mail Buyer Creates PO (in SAP) Return for modify / withdraw Apply BPM : Simplified, Optimized, Managed, End-to-End Collaboration, Visibility, Reduced Ta. T, Easy to change, Better business control, Traceability, etc Check Budget for coverage Create PO N Research Assc Creates PR; Adjusts per Budget & Submits PR Preapproval Rule Finance Analyst Review Require Approval ? Y Get Manager Approval Y Convert PR to PO (in SAP) Rejected Notify Research Assc PO Created Release PO to Vendor © 2014 IBM Corporation

Key Topics § Business drivers for BPM in SAP – The Role and Benefit of BPM in SAP environment § IBM BPM for SAP Capabilities help customers leverage SAP for end-toend business process management § Typical “Returns Management” process in SAP is complex with variants and need to be managed for ‘exceptions’, to reduce cost and time – How IBM BPM for SAP can add substantial value at every level of the hierarchy and step of the “Product Returns Management” processes • Exception Management • Flexibility using Rules, Events and Process Separation from Applications • End-to-End Orchestration § How Can IBM Help ? © 2014 IBM Corporation

Typical Product Returns / Exchange Management Challenges Effective RM is critical for cost savings and customer satisfaction § Returns management is one of the critical areas that Retailers are focusing on to cut costs and improve customer relationships. – Product returns impose significant financial costs on a retailer’s business. A recent study indicates that more than $35 billion per year is spent on processing returned goods. – The effective management of returns can help reduce lost revenue, inventory cycle time, and processing costs, while also maximizing value recovery for returned products. – Customer return information to be linked to merchandising and inventory systems to assist with demand planning and real-time inventory monitoring. § Making the returns process easier on customers will not only improve the customer experience, but may increase revenues as well. – The returns process should be as seamless an experience for the customer as the initial purchase. § BPM can help effectively manage Returns Management along four dimensions: – customer management, physical logistics, diagnostics and processing, and disposition. © 2014 IBM Corporation

Product Returns / Exchange Processing Scenario Variants § Product Returns / Exchange Processing has few variants due to Ts & Cs of the Order, Such as: – Return Accepted, Put back into Stock and Credit Memo issued to the Customer (e. g. , extra quantity delivered, don’t like, etc) – Return Accepted, Put back into Stock, and Subsequent Delivery sent to the Customer (e. g. , Wrong item replaced, Exchange with different model, etc) – Return Accepted, Item sent to QI (Quality Inspection), and Subsequent Delivery sent (e. g. , Defective item) – Return Accepted, Item Re-packaged & Re-priced, and Subsequent Delivery sent / or Credit Memo issued to the Customer (e. g. , Opened item) – and few more …. . © 2014 IBM Corporation

Product Returns / Exchange Management Process Flow § Scenario Variants – Return Accepted, Put back into Stock, and Subsequent Delivery sent to the Customer (e. g. , Wrong item replaced, Exchange with different model, etc) – Return Accepted, Put back into Stock and Credit Memo issued to the Customer (e. g. , extra quantity delivered, don’t like, etc) Level 3 Process Exchange Submit Returns Request Obtain Customer Confirmation Create Returns Delivery Post Goods Receipt for the Return Create Credit Memo Issue Credit Memo Require Approval ? No Yes Legend SAP Step Post Goods Issue for the Delivery Exchange or Return Authorize Returns Return BPM Step Create Returns with Free of Charge Subsequent Delivery Business Rule Obtain Approval © 2014 IBM Corporation

Applying IBM BPM Guided Workflow for Returns Process Guided Workflow – Automatically Sequence and Route SAP User Transactions Create Returns with Free of Charge Subsequent Delivery Yes SAP Process Flow in IBM BPM V 8 Submit Returns Request Authorize Returns Post Goods Issue for the Delivery Obtain Customer Confirmation Subsequent Delivery? VL 02 N BPM e-Form VA 01 No Create Returns Delivery Post Goods Receipt for the Return Create Credit Memo Issue Credit Memo Require Approval ? No Yes Transactions (Native SAP Screens) Automatically Invoked in SAP Obtain Approval BPM e-Form VL 01 N VL 02 N FB 75 VF 04 © 2014 IBM Corporation

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