SAP BPO


Business Process Optimization Leveraging Process Intelligence

Role of Process Optimization in Process Transformation

Process transformation is becoming an essential component of digital transformation initiatives. As organizations embark on their digital transformation journey, they realize that process transformation will play a key role. This is also reflected in the importance placed on process transformation in the RISE with SAP offering from SAP. Process transformation can be defined in a simple way as making changes to your process such that your process becomes more efficient and effective. One of the key levers to attain that goal is business process optimization (BPO), which enables organizations to understand the optimal way to execute their processes and identify improvement or re-engineering opportunities.

Business Process Optimization Leveraging Process Intelligence

Role of Process Optimization in Process Transformation

Process transformation is becoming an essential component of digital transformation initiatives. As organizations embark on their digital transformation journey, they realize that process transformation will play a key role. This is also reflected in the importance placed on process transformation in the RISE with SAP offering from SAP. Process transformation can be defined in a simple way as making changes to your process such that your process becomes more efficient and effective. One of the key levers to attain that goal is business process optimization (BPO), which enables organizations to understand the optimal way to execute their processes and identify improvement or re-engineering opportunities.

Role of Process Intelligence in Process Optimization

The starting point of understanding the opportunities to optimize processes is analyzing the data from the current state. This is where process intelligence comes into the picture. Process intelligence, derived through process mining, helps capture current state data and insights. This data can then be leveraged to understand the bottlenecks in the current state and optimal flows and opportunities to re-engineer segments of the process or the entire end-to-end process. SAPinsider Process Automation SOM research report covers this aspect in detail.

Key Considerations for SAPinsiders

Map and understand process interdependencies. While the focus is on reducing errors and increasing process efficiency, it is critical to understand process interdependencies. A comprehensive business process mapping on key processes needs to occur simultaneously to understand their interdependencies. Build swim-lane-style process maps that clearly illustrate how each process interacts with the other. Leverage best-in-class process mapping and design methodologies like SIPOC diagrams.

Understand the root cause of errors and inefficiencies. It is important to understand what the drivers are for inefficiencies and errors in a process. Methodologies like Lean Six Sigma and Six Sigma can be useful to perform the analysis. Some of the most widely used and effective root cause analysis methods are Failure Mode and Effects Analysis (FMEA), Scatter Plot diagram, Fishbone diagrams, and Pareto charts. These need to be developed in conjunction with process maps.

Formulate a process visibility strategy. Process visibility remains a key aspect of any process transformation. However, it is important to realistically pre-define what is the desired level of process visibility and evaluate the feasibility of attaining that level of visibility.

Embrace intelligent automation. Technology today allows us to take process automation beyond merely automating manual, non-value-adding tasks. Artificial intelligence- and machine learning-enabled automation allows you to further stretch the boundaries of process enhancement and move towards building a true intelligent enterprise of the future.

502 results

  1. Planning with TP/VS: The Third Pillar of Transportation Management

    Published: 01/August/2006

    Reading time: 23 mins

    See how Transportation Planning/Vehicle Scheduling (TP/VS) enhances and complements the SAP Logistics Execution System solution and takes transportation planning to the next level with full integration into the document flow. Key Concept Transportation Planning/Vehicle Scheduling (TP/VS) supports any transportation process in a company. It helps the transportation planner in daily tasks with automatic tools, such...…

  2. SAP GRC Global Trade Services Eases Product Classification

    Published: 15/February/2009

    Reading time: 9 mins

    Discover how you can use the classification tool available in SAP Governance, Risk, and Compliance Global Trade Services to maintain and assign the export/import classification, Commodity Code, and the Harmonized Tariff System. Key Concept An Export Control Classification Number (ECCN) is a specific five-character alpha-numeric number used to identify the level of control for an...…

  3. 2 Enhancements Unlock the Potential of SAP Wave Picking

    Published: 12/June/2009

    Reading time: 15 mins

    Improve warehouse productivity and efficiency by streamlining your warehouse activities with wave creation logic and a wave monitor. Key Concept A warehouse pick wave consists of a group of deliveries or work packages that need to be processed together during picking. For example, these deliveries need to ship together on the same truck, or you...…

  4. Calculate the Best Fitting Forecast with SAP APO Macros, Forecast Errors, and Process Chains

    Published: 22/July/2009

    Reading time: 19 mins

    Learn how to implement a fully automated forecast analysis system with model comparison within SAP Advanced Planning & Optimization demand planning. Key Concept A process chain is a series of processes that waits in the background for an event. Some of these processes can trigger a separate event that starts other processes, hence forming a...…

  5. ITSmobile: A New Technology for Warehouse RF Applications

    Published: 15/June/2008

    Reading time: 24 mins

    /MobileEvaluate ways ITSmobile can enhance your warehouse operations. Get valuable implementation tips and insights to consider. Key Concept Internet Transaction Server mobile (ITSmobile) replaces WebSAPConsole as the latest SAP technology for developing mobile data entry applications using GUI-based handheld computers. ITSmobile allows the user to execute warehouse radio frequency (RF) transactions on the mobile browser...…

  6. Efficient Production Planning Using SKU Groups with the SNP Optimizer

    Published: 01/May/2014

    Reading time: 31 mins

    SCMFind out how to overcome the limitations of Supply Network Planning’s aggregate and block planning capabilities. Key Concept Aggregate planning is a feature in Supply Network Planning (SNP) whereby net requirements calculation from medium to long term can be executed at a product group level using aggregate objects such as SKU groups, location groups, resource...…

  7. How to Use ABC-XYZ Classification in SCM 7.0, Enhancement Package 2

    Published: 29/July/2014

    Reading time: 25 mins

    Find out how to harness the ABC-XYZ functionality of SCM 7.0, enhancement package 2 to automate classification of products and optimization of statistical forecast model selection according to historical sales value and the products’ value volatility. Follow 6 steps to set up SAP Advanced Planning and Optimization (APO) Demand Planning for product classification and forecast...…

  8. Streamline Master Data Maintenance in Demand Planning

    Published: 24/November/2015

    Reading time: 12 mins

    Learn the process flow of realigning data and copying characteristic value combinations (CVC) in SAP Advanced Planning and Optimization (SAP APO) Demand Planning (DP). Follow a step-by-step procedure to understand the prerequisites, importance, configuration, and execution of the CVC maintenance process and interpretation of results. Key Concept Demand Planning (DP) in SAP Advanced Planning and...…

  9. Manage Promotion Planning in SAP APO

    Published: 27/May/2016

    Reading time: 13 mins

    Learn how promotion planning can be configured in SAP Advanced Planning and Optimization (SAP APO) to model special events or promotions separately from the normal forecasting process. Follow a step-by-step procedure to configure and run the associated master data objects, run simulations, and interpret the results. Key Concept Promotion Planning is a special feature provided...…

  10. New End-to-End Project Deployment Process in Solution Manager 7.1 and 7.2

    Published: 09/November/2016

    Reading time: 30 mins

    Learn about developments done with multiple large corporations for the IT Requirement-to-Deploy process in SAP Solution Manager 7.1 and 7.2. Follow the management of the IT Service Management (ITSM) and Application Lifecycle Management (ALM) spaces from requirement management, to design, build, test, and deployment in an integrated fashion. Key Concept The Requirement-to-Deploy focus solution is...…