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Implementing e-Business Processes with SCOR

Implementing e-Business Processes with SCOR. by Dr. Mathias Kirchmer President IDS Scheer, Inc. Philadelphia, PA Chicago, 04/11/00. Agenda. Changing Management Paradigms Function orientation Intra-Enterprise Business Process orientation Inter-Enterprise Business Process orientation

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Implementing e-Business Processes with SCOR

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  1. Implementing e-Business Processeswith SCOR by Dr. Mathias Kirchmer President IDS Scheer, Inc. Philadelphia, PA Chicago, 04/11/00

  2. Agenda • Changing Management Paradigms • Function orientation • Intra-Enterprise Business Process orientation • Inter-Enterprise Business Process orientation • Methods and Tools to work on Processes • Framework to analyze and design processes • Special requirements of inter-enterprise processes • Software tools to support process work • SCOR as Content Framework • Implementation of e-Business Processes • Analysis • Business Target • Software based Target • CPI • Bottom Line

  3. R B M P R 0 G R S S IDS Scheer Worldwide - Consulting and Software Employees 900+ Switzerland IDS Prof.... Scheer AGZurich Germany IDS Scheer AGSaarbrücken UK IDS ScheerLondon Partners 100+ Japan IDS Japan Co., Ltd.....Tokyo USA IDS Scheer, Inc.Chadds Ford, PA Customers 2700+ Singapore IDS Singapore Co., Ltd..... Brazil IDS Scheer South AmericaSao Paulo France IDS Scheer France Paris Countries 30+

  4. Life cycle solutions Holistic solutions Design of business processes Industry knowledge Knowledge of applications Implementation of business processes Tools/ Metho- dology Continuous optimization of business processes The IDS Scheer ApproachHolistic Solution

  5. ARIS Toolset / ARIS Easy Design: The Leaders Selected BPR Tool Vendors Challengers Leaders ARIS Toolset more than 16,500 licenses sold IDS Scheer Oracle ICL Popkin IBM Sterling Software Meta Software Ability to Execute Rational Logic Works Wizdom Systems Software AG Visio Lanner Group KBSI Promodel Micrografx CACI Software ABC Technologies Aonix Systems Modeling Holosofx IntelliCorp Interfacing Technologies CASEwise NEC Action Technologies UBIS Gensym Ptech Mosaix Hitachi SE Imagine That Scitor Mega Intl. High Performance Sys. Proforma Powersim As of 8/97 Refocused / Niche Players Visionaries Completeness of Vision Source: Gartner Group

  6. A Strong Partnership - for over 15 years • Multiple Official Partner Levels • mySAP.com Partner • ASAP Partner • Implementation Partner • Logo Partner • Development Partner • Complementary Software Partner • First Complete Implementation of R/3 (all modules, 11 sites, 7 countries, 2 years) • Pilot APO (SCM) Projects • Idea/Development of the R/3 Reference Models, development of the EPC method • Numerous joint mySAP.com initiatives • e-Modeling Language • Definition and Modeling of e-Scenarios • others • Joint Development of • APO (Supply Chain Management) • PP-PI Module of R/3 • Others • Joint activities in the field of ValueSAP • Joint activities in the field of ASAP • Use of ARIS Toolset / ARIS Easy Design by SAP Investment of SAP into IDS Scheer

  7. Blue Chip Customer Base

  8. Agenda • Changing Management Paradigms • Function orientation • Intra-Enterprise Business Process orientation • Inter-Enterprise Business Process orientation • Methods and Tools to work on Processes • Framework to analyze and design processes • Special requirements of inter-enterprise processes • Software tools to support process work • SCOR as Content Framework • Implementation of e-Business Processes • Analysis • Business Target • Software based Target • CPI • Bottom Line

  9. “The 1990’s were about ... integrating and redesigning enterprise processes using ERP. “The 2000’s will be about … integrating and redesigning inter-enterprise processes using the Internet.” - Michael Hammer, 1999

  10. Sales Engineering Production Billing Distribution Sales System Finance System Configuring System PPC System Shipping System Past: Optimizing Functions within an Enterprise ISSUE: Optimized functions may not lead to optimal results for the enterprise

  11. Sales Engineering Production Billing Distribution ERP / Integrated Database Present: Optimizing Business Processes within an Enterprise “Intra-Enterprise Processes” Enterprise A: ISSUE: Low / inflexible integration to external market partners; difficult to focus on core competencies

  12. AIR, AIP Engineering Sales ERP 1 SCM 1 CRM 1 AIR, AIP Sales Production ERP 2 SCM 2 CRM 2 AIR, AIP Sales Distribution ERP 3 SCM 3 CRM 3 Future: Optimizing Business Processes Across Enterprises “Inter- Enterprise Processes” Enterprise A Internet Enterprise B Enterprise C GOAL: Focus on core competencies to deliver best overall value

  13. Agenda • Changing Management Paradigms • Function orientation • Intra-Enterprise Business Process orientation • Inter-Enterprise Business Process orientation • Methods and Tools to work on Processes • Framework to analyze and design processes • Special requirements of inter-enterprise processes • Software tools to support process work • SCOR as Content Framework • Implementation of e-Business Processes • Analysis • Business Target • Software based Target • CPI • Bottom Line

  14. Analyze/Define Process Participants Combines all aspects Control view Data view Function view Analyze/Define New Products Output (Result) View (Products) ARIS - Framework to Build and Run e-Business Processes Organization View Organization view

  15. ARIS Toolset

  16. SCOR Level One Plan Source Make Deliver SCOR as Content Framework Level One in ARIS Toolset (EasySCOR Modeler)

  17. e-Busines Process Scenario (in ARIS Toolset)

  18. Agenda • Changing Management Paradigms • Function orientation • Intra-Enterprise Business Process orientation • Inter-Enterprise Business Process orientation • Methods and Tools to work on Processes • Framework to analyze and design processes • Special requirements of inter-enterprise processes • Software tools to support process work • SCOR as Content Framework • Implementation of e-Business Processes • Analysis • Business Target • Software based Target • CPI • Bottom Line

  19. Continuous Process Improvement Business Process Analysis Project Management Change Management Training | Communication | Information IT Infrastructure Business Process Oriented Implementation Software Based Target Business Target

  20. Continuous Process Improvement Business Process Analysis Project Management Change Management Training | Communication | Information IT Infrastructure Business Process Oriented Implementation Software Based Target Business Target

  21. Example: Inter-Enterprise Process - “As Is” Catering Company Airline Catering Needed Select Meals Catalogue Fill Out Order Sheet Order Form Fax Sheet Order Configure Order Produce Meals SAP R/3 Deliver Meals Catering Done

  22. Continuous Process Improvement Business Process Analysis Project Management Change Management Training | Communication | Information IT Infrastructure Business Process Oriented Implementation Software Based Target Business Target

  23. Quantity Time Product Flow Information Flow Supply Chain - As Is (Example) Central Warehouse Storage Location Sales Chain Distribution Center Order Order Order Production Retail Customer Order Vendor

  24. Quantity Time Product Flow Information Flow Supply Chain - To Be (Example) Distribution Center Delivery w/o Order “Pull Principle” Production Customer Vendor Daily Reconciliation Reconciliation w. Forecast

  25. Example, Inter-Enterprise Process - “As Is” Catering Company Airline Catering Needed Select Meals Catalogue Fill Out Order Sheet Order Form Fax Sheet Order Configure Order Produce Meals SAP R/3 Deliver Meals Catering Done

  26. Example: Inter-Enterprise Process - “To Be??” Catering Company Airline Catering Needed Select Meals Catalogue Fill Out Order Sheet Order Form Fax Sheet Email Configure Order Produce Meals SAP R/3 Deliver Meals Catering Done

  27. “Putting a Web site in front of lousy processes merely advertises how lousy they are.” - Michael Hammer, 1999

  28. Example: Inter-Enterprise Process - “To Be” Catering Company Airline Catering Needed Select & Configure Meals Produce Meals SAP R/3 SAP R/3 Deliver Meals Catering Done

  29. Continuous Process Improvement Business Process Analysis Project Management Change Management Training | Communication | Information IT Infrastructure Business Process Oriented Implementation Software Based Target Business Target

  30. KPI Example: SAP APO based To Be Processes SCOR Model SAP Reference Model APO L1 Reference Model L2 L1 Demand Planning SCC ATP SNP L2 L3 Scenario 1 Scenario 2 Scenario n L4 L3 SCOR SAP

  31. Supply Chain - To Be (Example Process Model) R/2 Customer Offers Processing Placing of Orders Placing of Orders Customer Orders Processing CADIM / EDB Development Input New Product Documents Administration Delivery to Customer R/3 Marketing Concept Product Change Master- and Structure Data Administration Calculation Order/ Goods Delivery Schedule Sales Planning Forecast Network-/ Distribution Planning Order for In-House Production Production Finished Goods Warehouse Production Planning APO Sales- Original Planning Order/ Material and Semi-Finished Product Delivery Schedule

  32. Material master is to be created Specify material type Material type is specified Specify material number Specify industry sector XOR Material number is assigned externally Industry sector is specified Material number is assigned internally XOR Maintain material master warehouse view Maintain material master classification view Maintain material master accounting view Maintain material master purchasing view XOR Mat. master purchasing view is maintained Mat. master classification view is maintained Mat. master warehouse view is maintained split valuation is specified split valuation is not specified Create valuation types Software Reference Model - Example: SAP R/3

  33. Software Specific e-Busines Scenario - Example: mySAP.com

  34. Continuous Process Improvement Business Process Analysis Project Management Change Management Training | Communication | Information IT Infrastructure Business Process Oriented Implementation Software Based Target Business Target

  35. Process Performance Manager

  36. Continuous Process Improvement Business Process Analysis Project Management Change Management Training | Communication | Information IT Infrastructure Business Process Oriented Implementation Software Based Target Business Target

  37. Agenda • Changing Management Paradigms • Function orientation • Intra-Enterprise Business Process orientation • Inter-Enterprise Business Process orientation • Methods and Tools to work on Processes • Framework to analyze and design processes • Special requirements of inter-enterprise processes • Software tools to support process work • SCOR as Content Framework • Implementation of e-Business Processes • Analysis • Business Target • Software based Target • CPI • Bottom Line

  38. Bottom Line • Improving inter-enterprise business processes becomes the key factor in achieving business goals. • Inter- and intra-enterprise business processes must fit together seamlessly to improve the value chain of a company. • Designing and implementing improved intra- and inter-enter-prise processes (“e-business processes”) requires a sophisti-cated Business Process Management approach (BPM). • The required BPM can be established and managed based on the ARIS Architecture, supported by the ARIS Toolset and included reference models such as SCOR. • The procedure for e-Business Process Improvement (eBPI) must be well defined (procedural model) to ensure effective and efficient projects.

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