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Intelligent Business Operations for Utilities, powered by SAP HANA International SAP Conference for Utilities 2015, Berlin. April, 2015
Dr. Harsh Jegadeesan Chief Product Owner Intelligent Business Operations SAP SE, Walldorf
@harshjegadeesan
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Disclaimer
This presentation outlines our general product direction and should not be relied on in making a purchase decision. This presentation is not subject to your license agreement or any other agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or to develop or release any functionality mentioned in this presentation. This presentation and SAP's strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent.
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Agenda
1 Need for Intelligent Business Operations
2 Demo Meter-to-Cash Intelligence
3 Use-Cases 4 Next Steps
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Shipment tracking
logistics
fraud management disease management
insurance
customer connect churn management
telecom
sortiment management replenishment
retail
loan disbursement
banking
The Emergence of Big Processes
Big processes are end-to-end processes
• span across business departments, even business networks
• technically span multiple business systems
• generate large volumes of data at high velocity
• supports digital transformation and determine business success.
…read more in this blog
Volume
Velocity
Variety
Value
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The main hurdle: Process Quality & Flexibility How can you transform Enterprise IT into a competitive advantage?
Sales Operations Business Partner Finance
Are you able to visualize, measure and control your
end-to-end process?
Can you leverage Big Data to infuse
situational awareness into your
processes?
Can you quickly adapt your
processes to the evolving needs of your business? Are you able to
leverage business intelligence to
optimize decisions in real-
time?
“Over the past decade, enterprises worldwide have spent more than $1 trillion building and managing systems to automate core business processes, and close to $1 trillion outsourcing processes as well as building extensive value chains.”
IDC
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IS-U ERP
CRM
The challenge of End-to-End Visibility Common issue at most of our customers
1 End-end-processes (like meter-to-case, procure-to-pay etc.) are usually made of several transactions in different (SAP and non-SAP) applications
2 Process owners and stakeholders in the LoB are missing an overall visibility and control.
3 Rip-and-replace with a packaged app is not always a viable solution: legacy investments, differentiating and custom processes, non-SAP systems etc.
Gartner’s definition of Intelligent Business Operations The next generation of business processes will have to move beyond cost savings and efficiency, and become more adjustable to changing market and customer dynamics. Tomorrow's business operations will integrate real-time intelligence. This will require a new approach using IBO — a style of work in which real-time analytic and decision management technologies are integrated into the transaction-executing and book-keeping operational activities that run a business.
ww
w.gartner.com
/newsroom
/id/1943514 New Process Formula: BAM & BPM + Real Time Intelligence Intelligent Business Operations
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Powered by SAP HANA A completely re-imagined, modern platform for real-time business
SAP Operational Process Intelligence providing real-time process visibility, intelligent insights and appropriate actions for Big Processes, thus creating operational transparency and enabling better real-time decision making for line-of-business users
SAP Operational Process Intelligence
SAP BPM for process management, SAP BRM for managing operational decisions and business rules & SAP Process Integration for A2A and B2B integration BPMN-based, high-volume scenarios, linear scalability, EAI pattern-based modeling, HTML5-based business user experience
SAP Process orchestration
SAP Power Designer is a industry-leading modeling tool for business architecture, data modeling and process modeling all-in-one. Power Designer improves collaboration between business & IT for as-is and to-be modeling and streamline implementation.
SAP Power Designer
SAP Event Stream Processor is a complex event processing engine which enables continuous querying on streaming big data. Event Stream Processor helps to detect complex patterns from large volumes of machine data and act on those patterns.
SAP Event Stream Processor
SAP Intelligent Business Operations, powered by HANA enable digital business transformation
Work Orders for Meter Change
In case of home move or other “meter change” work orders, process spans both OT and IT.
How do you visualize and control the whole end-to-end process?
Customer Bank Account Change
Orchestrate customer facing processes
Integrate underlying systems to improve process velocity
Automate operational decisions like regulatory compliance and SLAs
What does this mean to your business? Some examples of what IBO can enable for Utilities
Legal Compliance of Processes
Frequent changes in legal regulation require utilities to be able to provide exact documentation and BPMN models of end-to-end processes, and to flexibly and quickly deliver required changes.
Process Intelligence/Optimization
Process Documentation and Flexibility
Business Process Automation
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Demo: efficient meter-to-cash process
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Meter reading request received from supplier 1
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Distributor collects meter readings Distributor uploads meter readings to supplier system
2
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Generate bills for meter readings and validates bills 3
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Invoice Document created; validate invoice 4
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Invoice printing; deliver invoices to customers 5
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Customer make the payment for invoices 6
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Owen Taylor Shared Services Opera.ons Manager
Ensure efficient meter-to-cash operations, ensure superior customer experience and maximize cash from operations
Meet SLAs and manage performance of suppliers 3
2
A major utility company providing gas, electricity to its customers
1 Lack of end-to-end visibility into the overall process, weak spots and bottlenecks
Long cycle times between consumption, billing and invoice leading to revenue leakages
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Frank Solution Expert
“I want to iteratively build Business Scenarios to empower line-of-business users and Operational Managers”
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what are the ingredients of a Business Scenario?
What is a Business Scenario? 1. business scenario is the modeling artifact created by a solution/process expert in a design-time environment 2. business scenario captures the end-to-end big process , the value stream, process metrics, KPIs, actions and business situations
end-to-end big process is discovered from SAP and non-SAP
systems and represents the actual execution view of the process
process metrics and KPIs
phases and milestones capture the value-stream as business
users understand the process in a simple linear model
goal
business situations
actions tasks & checklists
status classification
cycle time, duration measures and KPIs, notifications on risky or violated KPIs
the goal defines the business outcome
business situations are threats or opportunities in operations
drill-down to backend systems to take appropriate actions
collaborative problem solving with tasks and checklists
process status determination to cluster and act In
gred
ient
s of
a B
usin
ess
Sce
nario
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3 simple steps to create a Business Scenario a model-driven approach for iterative development
generate business scenario
discover end-to-end big process 1 configure
business scenario 2 3
process fragments can be of many varieties – structured, semi-structured, unstructured
process façade provides abstraction across process platforms
define correlation conditions
configure goals, phases and milestones
define process metrics and KPIs
define actions, checklists and business situations
check and activate
generate business scenario
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What is a Business Scenario?
What is a Business Scenario? business scenario captures the end-to-end big process , the value stream, process metrics, KPIs, actions and business situations
end-to-end big process is running across SAP and non-SAP systems and represents the actual
execution view of the process
process metrics and KPIs
phases and milestones capture the value-stream as business
users understand the process in a simple linear model
goal
business situations
actions tasks & checklists
status classification
cycle time, duration measures and KPIs, notifications on risky or violated KPIs
the goal defines the business outcome
business situations are threats or opportunities in operations
drill-down to backend systems to take appropriate actions
collaborative problem solving with tasks and checklists
process status determination to cluster and act In
gred
ient
s of
a B
usin
ess
Sce
nario
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High-Level Architecture
SAP
Java
Ser
ver
SAP
HAN
A SAP Process Orchestration
A2A & B2BIntegration
OrchestrationProcesses
Accelerators
Tasks Rules Processes Phases & Milestones Goals Business
Situations
SAP Operational Process Intelligence
End-to-End Processes
Insight-to-Action
Measures & Indicators
HANA Process Foundation
Rules Tasks Workflow
SAP Transactional Data 3rd Party Data
Virtual Data Model
Machine Data with SAP ESP
SAP
Pow
erDe
signe
r
Busi
ness
Pro
cess
M
odel
ing
Ente
rpris
e Ar
chite
ctur
eDa
ta M
odel
ing
space.me
Decide § Trigger mitigation
notification
Orient § Identify Customers
whose consumption increased more than regional average
Act § Inform customer of
consumption and propose meeting consulting for home efficiency
Use-Cases: Increase Network Efficiency and Upsell Home Efficiency Services
Observe
§ Transactions and Events from Business Apps (SAP and none-SAP)
§ Weather Information
§ Customer Payment History
§ Consumption info from Smart Meter
How can I decrease peak energy consumption in extreme weather?
E.g. When consumption increase is much higher than regional average - compared to normal weather, send sms/email to inform customer in real-time and propose home-efficiency consulting service
Decide § Trigger mitigation
work orders
Orient § Using business rules
identify outage locations
Act § Manage outage and
restore services
Use-Cases: Outage Management
Observe
§ Events from call centers and IVR systems
§ Events from smart meters
§ SCADA events from the grid
How can I detect outages and reduce outage durations?
Use-Cases: Pre-empt “Bill-Shocks”
Observe
§ Transactions and Events from Business Apps (SAP and none-SAP)
§ Consumption info from Smart Meter
§ Customer Payment History
How can I decrease revenue loss from risky customers that are inconsistent in paying their bills?
Orient
§ Identify risky customers and correlate their data
§ Monitor current consumption and related bill
Decide
§ Predict possible revenue loss
§ Trigger mitigation notification
Act
§ Inform customer of his current forecast bill to help him control consumption
E.g. Send email/SMS to customer with bill forecast of current consumption, with tips and advice on how to reduce home energy consumption, based on individual profile.
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Gain end-to-end transparency across procurement operations
Intelligent Business Operations in Procurement Global Procurement Operations
Sense and respond to critical business situations – just-in-time material availability for manufacturing operations
Improve material availability and optimize inventory costs
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Track progress of customer complaints in real-time
Intelligent Business Operations in Customer Support Managing Omni-Channel Customer Complaints
Collaboratively solve customer complaints in the right-time to improve customer satisfaction
Improve problem resolution times
Enable customers to engage with you through multiple channels
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Oil and Gas: Managing Upstream Incidents in Wells
Drilling Operations in Wells can be interrupted due to unforeseen (e.g. broken drill-bits) and can lead to non-productive time. NPT can lead to losses in millions of dollars.
Sensors in the wells detect such situations and trigger mitigation
workflows
Workflows order spare parts and send work
orders to the engineering crew
Incident-to-resolution can be tracked in Operational
Process Intelligence SAP Event Stream
Processor
SAP Process orchestration
SAP Operational Process Intelligence
Sense Act Track
Infuse intelligence into operational processes
Orchestrate and Integrate end-to-end processes
Document and share end-to-end processes and achieve IT-Business alignment
Learn More SAP Intelligent Business Operations, powered by HANA
Subscribe to our YouTube playlist
Join our JAM site
Visit our SCN page
Read our whitepaper
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Apply Design Thinking for identifying Business Scenarios
Phases!
Activities! 1. Identify Business "Scenario 2. Define Business "Scenario Canvas
1. Observe the process "flow 2. Interview People in "the process 3. Interview IT to "understand technical "landscape/"implementation
1. Create Process Map 2. Define Personas
3. Capture goals, KPIs, actions, business "situations 4. Define IT architecture
1. Design click-through prototype of business scenario
1. Validate prototype with business "users 2. Pilot project (optional)
1. Define project plan 2. Conduct realization workshop with IT to define data acquisition, interfaces etc.
Output! Business Scenario "Canvas
Process Map Personas
Business Scenario specification IT Landscape (optional)
Business Scenario"Click-through "Prototype
Live"Implementation
Sign-off Interviews"Photos/"Videos
See more here:
http://tinyurl.com/sap-ibo-design-thinking
Contact for help!
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