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SAP Eepse Spp
Maximize Business Process EfciencyWhile Minimizing Process CostsRely on SAP Enterprise Support for Business ProcessAnalysis, Monitoring, and Improvement
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Table of Contents
MAxiMizE BuSinESS ProcESS EfficiEncy WhilE MiniMizing ProcESS coStS
4 ovem e caees BsessPess impveme
Lack of Global Transparency
Costly, Inecient Processes
Ineective Document Processing
System Clutter
5 hw Des SAP hep y Mee tese caees?Initial EvaluationBusiness Process Improvement Methodology
7 BenetsYouCanExpectGlobal Transparency
Greater Process Eciency
Increased Process Eectiveness
Clean System Thats in Sync with Your Business
9 ExamplesofPotentialBusinessProcessimpvemes
Order to Cash
Archiving
Sales Orders
E-Commerce
10 Vae-Added Seves m SAP Avegba Spp
11 csFor More Information
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Overcoming the Challenges of BusinessProcess Improvement
Faced with todays economic crisis, companies
are striving to enhance the performance of their
core business processes. The continuous quality
check service of SAP Enterprise Support ser-
vices can help by enabling you to analyze, moni-
tor, and improve the core processes supported
by your SAP software. The result? Maximized
business process eciency and a higher return
on your software investment.
Improving the performance of your organizations core busi-
ness processes can deliver a wealth of benets including
greater operational eciency, reduced cost, and increased
protability. But challenges exist. To enable real business
performance improvement, you must optimize the software
that supports those processes, strengthen the relationship
between business and IT, and address the following issues.
lAck of gloBAl trAnSPArEncy
All of a companys operational units do not necessarily adhere
to the same standardized template for each core business
process. As a result, the execution of each process can dier
across the global organization. Only by gaining transparency
across all business units can you increase process compliance
and standardization.
coStly, inEfficiEnt ProcESSES
Nonprocient system resources and inecient processes
can increase the cost of doing business. They can also trigger
systematic issues like user-handling, conguration, and master
data errors that can further increase process costs if not
detected in a timely manner. To minimize process costs, you
must automate business processes, reduce manual process in-
eciencies and human errors, and avoid systematic process
exceptions.
inEffEctiVE DocuMEnt ProcESSing
The delayed processing of sales orders, delivery documents,
invoices, or payments can lead to a decrease in customer
satisfaction and a delay or even loss of revenue. Such business
drawbacks can also occur if the proposed delivery dates are too
ambitious, the documents are incomplete, or the system fails
to generate an invoice for services or goods already delivered.
To strengthen customer loyalty and optimize revenue, you must
process such documents in an accurate and timely fashion.
SyStEM cluttEr
Failure to update the status of business documents in thesystem can lead to inaccurate planning results and business
reporting. For example, if production orders remain open in the
system, the corresponding reservations, capacity requirements,
and purchase requisitions are not deleted and the orders are
still relevant for material requirements planning. These open
documents clutter mission-critical systems and can lead to
inaccurate planning results. Documents closed from a business
perspective should also be closed in the system. The elimination
of these closed documents also reduces database volume.
focuS on trAnSPArEncy, AutoMAtion, AnD A clEAn SyStEM
caees Bsess Pess impveme
caees gas
Lack of
global
transparency
Increase process standardization
enterprise-wide
Reduce process diversication
Ensure compliance with process
template
High process
costs
Automate business processes
Reduce ineciencies and human
errors associated with manual
processes
Avoid systematic process exceptions
Ineective docu-
ment processing
Increase customer satisfaction by
eliminating delays in processing
documents related to deliveries or
shipments
Avoid nancial losses due to delayed
invoices or payments
System clutter Continually update the status of busi-
ness documents in your SAP software
Close all documents within your sys-
tem that are closed from a business
perspective
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How Does SAP Help You Meet These Challenges?
5
rEly on thE continuouS QuAlity chEck SErVicE of SAP EntErPriSE SuPPort
SAP Enterprise Support oers a continuous quality check
(CQC) service for businessprocessanalysis,monitoring,
ad mpveme. The CQC service can identify potential
improvements in your core business processes and the SAP
software that supports them specically, the SAP ERP,
SAP Customer Relationship Management (SAP CRM), and
SAP Supplier Relationship Management (SAP SRM) applica-
tions. During this service, you will get to know the tools that
support proven SAP methodology for business processimprovement.
initiAl EVAluAtion
As a rst step, experts from the SAP Active Global Support
(SAP AGS) organization conduct an initial analysis of the
business processes supported by your SAP ERP, SAP CRM, or
SAP SRM application. This helps you identify dierent problem
areas such as inactive or out-of-date documents, process design
gaps (for example, conguration errors or missed closing steps
in business documents), standardization issues, or the lack of
business-user training. Based on the results of this analysis,
you can select the specic processes such as order to cash
or procure to pay that demonstrate the greatest potential for
improvement. With the preliminary analysis, you can already
see not only the potential for improvement but also the signi-
cance of SAPs business process improvement methodology
an issue-oriented approach to measure process performance.
BuSinESS ProcESS iMProVEMEnt MEthoDology
Next, SAP AGS applies proven SAP methodology for businessprocess improvement to maximize your software ROI and pro-
cess eciency (see Figure 1). This methodology consists of the
following ve steps.
StepOneDene
During this step, you select key performance indicators (KPIs)
that support your chosen processes. We provide an extensive
set of problem-oriented KPIs that are ready to use. The KPIs
should be chosen based on business impact, probable benet,
estimated savings, and potential improvement in subprocess
lead times. During this step, you also identify the rst depart-
ment or unit for the initiative, gather requirements, and dene
target values.
Figure1:SAPMethodologyforBusinessProcessImprovement
Denesmall number of key
performance indicators (KPIs)
with process owners
(3-5 per process)
PerformRootCauseAnalysis
with process owners, IT, and
key users
Mease KPIs and review
data with process owners
and key users
impeme measures
with process owners,
IT, and key users
c and
sustain results
Bsess pess
analysis
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Sep tw Mease
Step two focuses on measuring the respective KPIs and
reviewing the results with process owners and key business
users. The measurements are drawn using the business pro-
cess monitoring and analytics functionality in the SAP Solution
Manager application management solution. During this step,
it is essential to incorporate the feedback of business process
owners as well as IT colleagues in order to nd the system
setup tting your specic needs.
StepThreeAnalyze
In step three, your business and IT stakeholders analyze
the dierent root causes for deviations and exceptions from
expected business process performance determining, for
example, what led to a high backlog. Using the detailed analysis
functionality of SAP Solution Manager, we can provide a com-
prehensive list of all documents in backlog, along with the
ability to jump directly into an aected business document
for detailed root cause analysis.
Sep f impeme
This step includes the actual change and adaptation of the
business process based on the implementation of counter-
measures to correct the underlying issues. Working closely
with SAP experts, your project team denes and executes
actions to reinstall or adjust business process designs. For
each root cause identied, one or more action items must be
created, including the assignment of deadlines and
responsibilities.
Sep fve c
The nal step focuses on controlling and sustaining results
such as reduced document backlog using the trend analysisfunctionality of SAP Solution Manager (see Figure 2). Addition-
ally, the team sets up monitoring and alerting functionality for
the respective business process to stabilize the new level of
process performance and improve process eciency and
eectiveness. This is managed by dening thresholds and
alerting the appropriately identied business person(s) in
case of critical deviations.
In addition, business process operations (BPO) dashboards
can provide an overview of a specic business topic (such as a
business process) or business area. All information needed by
the executive user is available at a glance on a single screen.
BPO dashboards can be used as a management tool to quickly
gain insight into selected KPIs. The setup of BPO dashboards is
part of the expert-guided implementation service for business
process improvement available from SAP AGS.
fe 2: red Dme Ba Pa 2
1500
1250
1000
750
500
250
Day, Month
Ordersinphasereleas
ed
10 11 12 01 02 03 04 05
Pa 1
Pa 2
Trend analysis
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Benets You Can Expect
7
iMProVE your BuSinESS ProcESSES AnD roi in SAP SoftWArE
To improve business performance, process-driven companies
like yours must maximizeprocesseciencyand minimize
pess ss. That means your core business processes
along with the systems that support them should be stabi-
lized and improvedcontinuouslyto optimize the return on
your initial investment. By relying on SAP Enterprise Support
to analyze, monitor, and improve your key business processes
and related software via the CQC service, you can achieve
these objectives and enable real performance improvements
gloBAl trAnSPArEncy
The CQC service includes internal benchmarking that reveals
how business units throughout your enterprise handle busi-
ness processes. This benchmarking makes it fairly simple and
fast to identify the best organizational units to serve as role
models in rolling out best practices. Additionally, the CQC
service provides out-of-the-box KPIs that signicantly reduce
the high manual eort normally required to gather the same
information. Consider the impact of these KPIs in nance.
All nance departments must identify open items for major
accounts before period-end closing. The predened KPIs auto-
mate the analysis of open items and let your nance teams see
immediately which accounts and which legal entities are
aected.
grEAtEr ProcESS EfficiEncy
Through the CQC service, you can increase process eciency
by identifying process steps that are currently wasting valuable
resources, like systemresources. For example, too many old
yet still open production orders have a negative impact on pro-
cessing time during period-end closing. Thats because they
will still be considered for calculations that are no longer rele-
vant, such as work in progress, overhead costs, reservation
planning, and capacity planning.
BenetsofBusinessProcessImprovementusingSAPEnterpriseSupport
Benets Examples
Global transparency Automate analysis of open items in nance (accounts payable, accounts
receivable, general ledger) across all legal entities to reduce manual eorts
Identify incomplete sales documents in all respective business units to avoid delays in the sales
and distribution process
Greater process
eciency
Identify old yet still open production orders that can negatively impact
processing time and delay period-end closing Eliminate manual steps and automate the execution of complete, accurate business processes,
avoiding a high postprocessing workload and increased selling, general, and administrative costs
Increased process
eectiveness
Improve revenue stream by eliminating invoice delays and generating
accurate invoices for all deliveries and orders
Increase customer satisfaction by conrming desired deliver dates with sales schedules
Minimize credit memos due to price corrections
Clean system Eliminate old yet still open planned orders and purchase orders that lead to inaccurate supply
chain planning
Reduce database size and cost
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Optimize the Performance of Core Business Processes
clEAn SyStEM thAtS in Sync With your BuSinESS
To achieve correct planning results and accurate business re-
porting, it is crucial to have a clean system meaning that
the systemreectsbusinessreality . For example, old yet still
open planning orders or purchase orders need to be closed
properly to ensure the accuracy of supply chain planning.
The CQC service helps ensure that all documents closed
from a business perspective are also closed in your system.In addition to enabling more accurate planning and reporting,
this also reduces the size and cost of your database.
The service can also help optimize a second valuable resource
workingtimeofemployees. By automating manual process
steps, the service helps free up time that employees can use
for vae-added aves. And by enabling the execution of
complete business processes that do not deviate from the
standard template, the service helps eliminate high manual
workload in postprocessing and decrease selling, general, and
administrative costs.
incrEASED ProcESS EffEctiVEnESS
By maximizing the eectiveness of your business processes,
the CQC service can help increase customer satisfaction. For
example, the success of your business depends on your ability
to deliver the right goods to your customers on time. The CQC
service can help ensure that your system processes all sales
orders and outbound deliveries in an accurate and timely
fashion to strengthen customer loyalty and minimize returns.
The service can also help increase your revenue stream and
minimize credit memos by enabling your system to generate
the proper invoice without delay for all sales orders and
deliveries.
During the recently performed continuous quality check business
process analysis and monitoring service, potential for business process
improvement has been identied. During a workshop, the results were
presented. However, we werent left alone with them. SAP showed us howto work with their tools in a structured way bringing business and IT
together to solve the issues that occurred in the past in a sustainable way.
Freddy Berghmans, Manager of Competence Center Applications, Fabory Group B.V.
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Optimize the Performance of Core Business Processes
SAlES orDErS
You can identify KPIs for incomplete sales orders, orders on
delivery block, orders on credit block, and outbound deliveries
overdue. Easy-to-interpret dashboards can then reveal how
seasonal peaks aect trends in backlog and throughput for
each KPI so you can take immediate action.
E-coMMErcE
If e-commerce orders are not processed promptly, it can have
a negative impact on credit card authorizations. Through the
CQC service, you can automatically generate e-mail notica-
tions when e-commerce orders are not processed within a
certain time period.
Through the CQC service, you can identify potential improve-
ments in the core business processes supported by your SAP
ERP, SAP CRM, or SAP SRM application.
orDEr to cASh
By setting up analytics for a KPI such as overdue deliveries,
the CQC service lets you identify the number of outstanding
deliveries overdue for each shipping point, determine their rootcauses, and accelerate the order-to-cash process.
The service further improves the order-to-cash process by
providing visibility into the root causes of credit memos.
ArchiVing
By providing visibility into which documents are incomplete,
open, or out-of-date, the CQC service enables you to archive
more eectively reducing database size and increasing
system performance. You can capture core statistics on open
business data and drill down into individual documents for
root cause analysis and processing.
Examples of Potential Business ProcessImprovements
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Expert-guided implementation Business process monitoring
Expert-guided implementation Stabilization (with a focus
on monitoring)
Expert-guided implementation Business process improve-
ment (with a focus on analytics)
For more information on expert-guided implementation services
from SAP AGS, visit www.sap.com/services/education
/catalog/solutionmanager.epx.
With a valid SAP Enterprise Support agreement, you also have
access to expert-guided implementation services from SAP
Active Global Support. These services oer direct guidance
from SAP experts in implementing best practices for projects
involving SAP Solution Manager. Combining classroom train-
ing, practical experience, and expertise on demand, the services
focus on the following areas:
Value-Added Services from SAP ActiveGlobal Support
Expert-Guided Implementation Services
The CQC service applies proven business process
improvement methodology from SAP enabling
you to increase business process eciency, minimize
process costs, and realize tangible performanceimprovements.
http://www.sap.com/services/education/catalog/solutionmanager.epxhttp://www.sap.com/services/education/catalog/solutionmanager.epxhttp://www.sap.com/services/education/catalog/solutionmanager.epxhttp://www.sap.com/services/education/catalog/solutionmanager.epx7/27/2019 Maximize Business Process Efficiency While Minimizing Process Costs (A4)
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for MorE inforMAtion
To learn more about the CQC service for business process
analysis, monitoring, and improvement or about other SAP
solutions for business process management visit the SAP
Service Marketplace extranet at www.service.sap.com/bpm.
Improving core business processes while lowering the total
cost of ownership in the software that drives them is a com-
mon goal for IT and business professionals alike. By relying on
the CQC service of SAP Enterprise Support to analyze, monitor,
and improve your key business processes and related software,
you can achieve this goal. The CQC service applies proven busi-
ness process improvement methodology from SAP enabling
you to increase business process eciency, minimize process
costs, and realize tangible performance improvements. Flexiblein design, the service even supports industry-specic business
processes.
Conclusion
Ramp Up Process Eciency and Increase Your ROI in SAP Software
The continuous quality check service from SAP Enterprise
Support can unlock potential improvements in your core
business processes and the SAP software that supports
them specically, the SAP ERP, SAP CRM, and SAP SRMapplications.
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