If you receive errors when attempting to view this white paper,
please install the latest version of
Adobe
Reader.
"Learn how a new, interconnected economy
is forcing companies to manage an ever-growing information
network - and the best way to adopt new technologies to give you
greater flexibility for faster growth while maintaining business
integrity. "
Source: SAP
Time to Change: New Thoughts on Supporting Business Change Fast and Flexibly
Business Process Change Management is also known as :
SAP Change Management,
ERP Change Management,
Change Manager,
Software Change Management Process,
Business Change,
Supporting Business Change,
Business Technology,
Services-driven Applications,
Emergence of Business Technology,
Business Technology Applications,
Business Processes,
SOA Change Management,
CIO Change Management,
Business Technology Model,
CTO Change Management,
Change Management Leadership,
Process Improvement Change Management,
Change Management in Business,
Integrate Business Technology,
CFO Change Management,
Application Change Management Process,
Business Technology Services,
IT Change Management Process,
Database Change Management Process,
Key Business Processes,
Change Management Process Documentation,
Perspective of Business Technology.
Organizations need to create new processes, products, and services faster than the
competition - but not by putting their mission-critical procedures and management
capabilities at stake. They must assess and manage risk across their existing and
new extended business network. Winning teams cultivate relationships by improving
communication and collaboration with suppliers, customers, and other partners and
moving from adversarial, low-collaboration models to cooperative, mutually beneficial
arrangements.
Executive Summary
New Technology Changes
the Game
In difficult economic times, facing unprecedented
pressure to cut costs, companies need to adopt new
technologies to accelerate processes and help managers
win with greater flexibility and new methods. To succeed
in ever-changing market conditions, enterprises must
manage and navigate an information network of business
partners. They have long focused IT efforts on automating
internal processes to save money. Now they need to
rethink how technology can support and transform the
way decisions are made and business is conducted within
and across their boundaries.
Companies need to move from capitalheavy
investments to fast-turnaround
projects. Best-run businesses build
strategic advantage with rapid, valueoriented,
compact projects. Technology
and its use continue to advance regardless
of market conditions. Consequently,
there are new challenges stretching
the resources of the traditional IT
department. Specialization of all players
in complex business networks and
new technologies require support for
"front-office" activities, integrated with
back-office execution, that puts additional
and unique pressures on IT. All
of these factors together call for an
overall change in how solutions are
deployed and what it takes to do so.
Winning companies focus on key
business processes and take a new
approach to how solutions can be built,
changed, and deployed - while maintaining
the integrity of crucial enterprise
processes. The latest releases of SAP ®
Business Suite applications and SAP
BusinessObjectsTM solutions, along with
the SAP and Capgemini approach, give
managers insight into their business
and the tools to take action and innovate
their business - without disrupting
ongoing operations. Thus, enterprises
can enjoy best-of-breed front-office
processes without compromising business
integrity and without the costs
and maintenance of best-of-breed
integration points. This changing
emphasis - from classic IT automation
to support for new demands - calls for
a greater need to understand underlying
business issues and how to choose
and implement solutions.
This joint paper from SAP and
Capgemini discusses the challenges
of the interconnected economy and
describes solutions that enable companies
to use technology to innovate
the way they do business.
Technology Accelerates Business
Making Time Your Friend
Economic turbulence and change disrupt
customary business practices. In
the era of globalization, companies face
not only more competitors but also new
kinds of competitors who may play by
different rules and come from different
business and social backgrounds. Without
any market share to defend, new
players have little to lose and much to
gain - at the expense of current leaders.
Market leaders earn and keep their positions
by understanding business opportunities,
forming clear strategies to capture
opportunities, using technology to
drive business goals, and having the
organizational discipline to execute
quickly and decisively.
Some see new technology models as
dangerous. Others see opportunities to
enable the enterprise by safely adopting
new technology and business practices.
To succeed now and prepare for
the future, companies must innovate
and learn how to add value - and move
faster than the competition. At the
same time, companies need to increase
efficiency and support for missioncritical
procedures and processes, and
they must manage risk across the
extended business network and enable
business users to make sound decisions
fast. Doing this requires both
software solutions and techniques that
are delivered together in a different
manner of engagement. Solutions and
techniques must be delivered to various
business managers in a large number
of small projects - ideally supported
by predefined packages designed
for fast deployment and rapid ROI . This
is very different from a classic largescale
IT implementation.
To survive now and succeed in the
future, organizations need to create
new processes, products, and services
faster than the competition - but not by
putting their mission-critical procedures
and management capabilities at stake.
Enterprises must assess and manage
risk across their existing and new
extended business network. They
need to supply accurate information
and cultivate the ability for people
across the enterprise to make sound
business decisions fast, based on the
best available insight. Winning teams
cultivate relationships by improving
communication and collaboration with
suppliers, customers, and other partners
and moving from adversarial,
low-collaboration models to cooperative,
mutually beneficial arrangements.
What is called for are new, softwaresupported
business processes built
around managing front-office, valuecreating
activities. Companies need
more than just the technology, however.
They need the tools and techniques
to capture business needs and deploy
in a matter of weeks - not months.
Companies need next-generation business
software designed to help build
cooperative relationships with business
partners, manage risk, and increase
revenues while juggling the sometimes
conflicting needs of stakeholders inside
and outside the organization. This is a
new game, with new rules, new requirements,
and new methods to deliver
quickly and at low cost. To win the
race, companies need technology that
enables the enterprise to:
- Adapt and thrive in a business environment
characterized by change and
speed
- Cut costs without having an adverse
impact on business capabilities
- Increase sales and add new offerings,
channels, partners, and markets
- Provide freedom and flexibility to
business users across the enterprise
- Manage local and global compliance
without restricting creativity and
innovation
- Leverage existing technology for
higher ROI and lower total cost of
ownership (TCO)
New, iteratively driven solutions do not
allow for classic requirement-gathering
definition phases, so it is important to
know what issues could be involved
before starting work on any particular
requirement. In the following pages, we
will discuss these issues, the drivers
related to new technologies, and their
impact on business processes and
innovation.
Winning companies
focus on key business
processes and take
a new approach to how
solutions can be built,
changed, and deployed -
while maintaining
the integrity of crucial
enterprise processes.
Challenges of an Interconnected
Economy
Thinking and Acting Differently
New technology continues to morph
and warp the field of play, both inside
the enterprise and externally with customers,
suppliers, and markets. The
introduction of a completely new generation
of technology has been underway
for some time now, from the Internet to
Web 2.0 and to what are known as
"cloud services" and "Web computing."
Service-oriented architecture
(SOA ) technology offers a powerful
new paradigm of modular consumption
of business functions and the composition
of new business processes
focused on the business users across
the enterprise.
What these new technologies have in
common is that they are not built from
the ground up as traditional, monolithic
applications. They are built quickly and
flexibly along specific process requirements
and reuse proven enterprise services
that safeguard process integrity in
spite of rapidly composed, continuously
changing business processes. This
gives companies the flexibility they need
to build solutions to suit their specific
business needs - and their budgets.
To deal successfully with the alwaysevolving
complexities of the distributed
enterprise, companies must inevitably
embrace the use of services-driven
applications as the key to the functionality
collectively known as business
technology.
"Business technology," which includes
cloud computing, or grid technology,
refers to open source, standardized,
networked services that reach across
network, organizational, and geographic
boundaries. Built on the SOA model,
applications created using services are
fast to build, powerful, and relatively
inexpensive, and they can be reused
and shared within the organization - and
outside it as well. Business technology
has tremendous power to facilitate
innovation and connect and support
disparate groups of people, data, and
processes. But the emergence of
business technology has created
a tension between the divergent goals
and methodologies of these new technologies
and traditional IT. The services enabled
SAP Business Suite software
provides the foundation for rapid
business process innovation without
compromising business integrity.
Historical Perspective
Important similarities can be seen
between the changes taking place in
technology today and the shift in the
1990s from mainframes and dedicated
applications used for data processing
to a new generation of technology
based on networked personal computers.
This technology became known as
"information technology." From boardrooms
to front offices, some resisted
this new way of thinking about technology
and how to use it to do business.
Some saw the new technology as a
threat to the status quo, while others
doubted the value and practicality of
leaving mainframes behind.
Resisted or embraced, the revolution
came, and forward-looking companies
moved immediately to understand and
address the changes, opportunities,
risks, and costs involved. The recession
of the early 1990s proved to be
the impetus to change. New and more effective
working practices became
essential, and adopting new technology
gave a competitive advantage. But as
these changes brought user-driven flexibility
and effectiveness, they also
brought significant data control and
management challenges. The adoption
of the client-server technology model,
the engine of the IT era, allowed greater
freedom in the distribution of activities,
by making it easier to match individuals
and expertise to the required
processes. By their very nature, traditional
IT applications can produce fundamental
divisions among business
processes, by focusing on transactions
to produce data. Business technology
applications can help fill the gaps of
functionality and capabilities in traditional
IT.
It is impossible to imagine - and difficult
to remember - what our world
would be like without the flexibility and
ubiquity of personal computing. However,
the freedom of computing included
forfeiting the central dominion of the
central IT department over the company's
data. Departmental and local data
silos emerged, and a centrally orchestrated
governance of corporate data
was lost.
Data Across the Enterprise -
Software as a Service
Data Across the Enterprise -
Software as a Service
Enterprise resource planning (ERP)
applications provide a base to ensure
that data is coherent in its use across
the enterprise. In the new technology
and business era, companies need
advanced software to make sure that
the addition of the new layer of software
and functionality - business technology
- is safely integrated into the
existing IT enterprise systems. Software
as a service (SaaS) helps managers
integrate business technology,
adopt new practices, and enable innovative
innovative
business processes without adding
IT complexity in the short run. SaaS
is a valid alternative to on-premises
deployment of business processes,
and it is recommended that companies
take a look at the full life cycle of the
solution, including efforts of process
and system integration and questions
about dominion over corporate data
and business processes. SaaS is particularly
attractive for managing commodity
and fringe processes and trying
new practices, while differentiating
core processes will continue to be
deployed in on-premises scenarios.
Transforming Data into Business
Insights
"A man with a watch confidently knows
what time it is. A man with two watches
is never certain." (Unknown)
Making sense of the business world
poses many challenges, with data and
processes spanning disparate databases
and disconnected sources. The
struggle to create and maintain a single
version of the truth based on a company's
data would make Sisyphus
despair. Entering new markets and
expanding the service or product line
means adding and altering processes,
studying new metrics - and processing
massive amounts of transactional data.
Mergers and acquisitions may bring in
expensive and difficult-to-maintain legacy
systems, out-of-date software, and
a hodgepodge of data sources.
Business technology makes even larger
amounts of data accessible to business
users across the enterprise. Not
only do business users continuously
access information throughout the
enterprise - individual users also
introduce increasing amounts of new
information and data sources in the
organization's network. The processes
and data referred to as business technology
have great potential to enable
creative business managers to innovate
new products and services and find
new ways to increase revenues, grow
the business, and expand markets. No
forward-looking company can afford
to ignore the great potential of these
technologies.
In difficult economic times, businesses need technology
to enable them to move quickly, save money, be more
agile, and take advantage of opportunities. Winning
companies will reduce IT costs, standardize business
processes, gain better insight, and employ more-flexible
processes - reflecting more-flexible thinking.
There is a critical conflict between the
potential value of the extra data that
business technology allows users to
access and the need for strict controls
to determine exactly what data must be
safeguarded as core enterprise data.
To address this conflict, companies
must ensure that business technology
is both separated from - and safely
connected to - information technology.
Enterprises need software to separate
structured data that is carefully produced
and maintained in ERP and allied
applications from unstructured data
such as instant messaging, collaboration
tools, Web pages, e-mails, word
processing documents, graphics, and
spreadsheets. To manage this balance,
enterprises need new solutions and
techniques instead of traditional business
intelligence applications based
on internal reporting.
Along with the increase in the amount
of business data is the inevitable
increase in the costs of storing and
archiving enterprise data. There is also
the reality that it is extremely difficult to
define which data is old enough to be
stored in a cheaper but less-accessible
fashion. Without access to historical
data when required, business managers
find it hard to make decisions that
are based on experiences and findings
from the past. This problem is further
aggravated by the typical short tenure
of managers in their positions along
their career paths. An aging workforce
that takes experience worth billions into
retirement also depletes the corporate
knowledge base.
Today companies need
to rethink how technology
can support
and transform the way
decisions are made
and the way business
is conducted within
and across
boundaries.
Empowering All Business Users
with Actionable Insights
Simply put, business managers and
executives normally do not think in
terms of structured processes supported
by ERP applications and documented
business procedures. Their role is to
analyze facts, assess conflicting data,
and make decisions while accepting
risks caused by incomplete information.
To this end they need software solutions
with functionality that can operate
outside the realm of traditional IT.
Executives and managers need solutions
that enable them to change
processes on the fly, adapt business
models to new markets and situations,
and take advantage of opportunities
with speed and confidence. They need
to escape constraints imposed by ITsupported
business processes that
have been created for efficiency and
repeatability. They need whatever tools
they can get, to help increase revenues
and add value to the business through
innovative thinking.
Enabling Finance Executives to
Manage Risk and Compliance
The chief financial officer (CFO),
responsible for financial and regulatory
compliance and enterprise liquidity,
needs software solutions to manage
fundamental financial processes such
as accounts payable and financial
close. CFOs must provide governance
as well as financial risk and compliance
insights to lines of business to optimize
working capital. Finance and compliance
executives need functionality that
provides thorough compliance oversight,
especially in light of increased
government scrutiny and a proliferation
of regulatory boards and regulations.
They need the ability to capture more
data to increase insight into and control
over risk management and to mine
through mountains of data for intelligence
to assess and guard against not
only current but also future risk.
But this cannot be at the expense of
preventing business managers from
having the freedom to do what needs
to be done. Business managers at
times need to work without the constraints
of the enterprise resource planning solutions. They need to operate
with creativity, and they need functionality
that allows them to do this within
the organization's guidelines. All enterprises
want to balance the needs of
local offices established to meet local
market requirements with the needs of
the overall enterprise. Local optimization
of events must be linked to the
larger organization's enterprise management
activities.
IT - A Strategic Partner for
Business Process Transformation
The chief information officer (CIO) and
the IT department need to deliver new
functionality to add value and to keep
older applications and legacy systems
up and running - while improving efficiency
and cutting costs. These are
extremely trying responsibilities even in
a strong economy characterized by
growth and expansion. In difficult economic
conditions, the pressure on IT
only increases, with more calls for
downsizing, cost cutting, and project
rationalization. IT is chartered with
ensuring 24x7 availability and reliability
of mission-critical and business supporting
processes enabled by
enterprise software. Without IT,
business simply does not get done.
But this is not all that is expected of IT
today. The roles of the IT department
and the overall organization are inextricably
linked, and IT departments continue
to take a more strategic role in
the enterprise. It has become increasingly
clear that companies depend on IT
not only for transactional and support
processes vital to the enterprise, but
also to create value. IT departments
deliver new functionality to add value
and help the business expand while
maintaining existing applications that
provide the backbone of support to
the enterprise. Especially in the current
environment, IT must be creative in
working with diminished budgets and
increased pressure to improve efficiency
and reduce costs. At the same time, IT
must help facilitate planning for the
future and enable business innovation
by delivering new functionality to the
lines of business.
Companies depend on IT for transactional
and support processes vital to
the enterprise; they also look to IT to
create value and make a more strategic
contribution to the business. IT can
help facilitate planning for the future
while staying afloat in a chaotic present.
The most advanced IT organizations
are equipped to approach applications,
processes, and data from the
perspective of business technology and
are prepared to strategically assess the
opportunities and risks involved.
Embracing New Technology
to Power the Business
Innovation and Collaboration
Businesses are well aware of the
increasing technological literacy of
consumers and the effect this has on
everything from product development
to entering new markets. Consumers
wield great and growing power to
understand - and directly affect - the
marketplace. This trend is reflected
within the corporate world itself as well.
Individual business users within the
enterprise have increased technological
savvy, contributing wide-scale changes
in how business-to-business activities
are conducted.
Akin to the transformation from mainframes
to networked personal computers
is the shift from client-server models
to an SOA business technology
model. The next generation of Web
apps - Web 2.0 hybrid applications -
and cloud computing functionality comprise
shared personal, business, and
technology services.
Built on the SOA model, business technology
applications are inexpensive,
sophisticated, flexible, and fast to put
together. Services are shared, collaborative
business applications that are created,
maintained, and of course used
by those who need such information.
These services are open source, available
for anyone to use and change to
suit his or her purposes. Business
technology services and applications
are loosely coupled, meaning they can
be easily combined and recombined as
new business models and processes
are created. The services are modular
and repetitive, so they can be reused,
shared, and modified, for great efficiency
and ROI .
Shift from Inflexible Models
to Adaptive SOA
The shift to services is a fundamental
change point created by a new set of
conditions, including the wide availability
of key technology elements, adoption
of standards, improvements in telecommunications
- and, not least,
people's expectations and capabilities.
The Internet provided connectivity, the
Web provided shared standards, and
cheap, available technology fueled the
fire. Together these factors comprise
a technology shift from the previous
internal business use for automating
commercial transactions into ubiquitous,
open use of technology in every
aspect of business and social life.
The time and cost to deliver services is
low, and so services support the ability
to rapidly - and frequently - try out
new, innovative ideas. This is particularly
important in areas directly affecting
operational success, such as sales,
supply chain, and other external-facing
activities. SOA functionality plays a key
role in acting as an enabling layer connecting
the services of business technology
with the existing client-server
applications of IT.
Capturing the Power of Web 2.0
to Deliver Value
Commonly called "mashups," hybrid
Web applications bring together various
elements from across the Web and
combine data from multiple sources
into a single application. Mashups are
often associated with personal use
without regard to procedures, compliance,
and security. However, Web
applications referred to as "enterprise
mashups" take the model a step further
and offer unique, powerful, and
continuously evolving functionality.
Enterprise mashups are well defined
and controlled and combine the creativity,
wide availability, and services-driven
architecture of mashups with strong
standards for security, policy, and
compliance.
Whether called mashups or Web applications,
this technology is increasingly
being adopted by business users,
much as with spreadsheets and other
applications using unstructured data in
the 1990s. Enterprise attention is
required both for governance and for
the cost and time savings that using
mashup technology can bring.
As innovation continues, newer and
even less foreseeable services and
applications will eventually enter the
business technology network and, by
association, the ecosystem and enterprise
network of the global organization.
Business technology applications
and services need to be connected to
- and draw upon the resources of -
the traditional IT department. There is
no way to keep the two twains from
meeting. To strike the right balance and
assess and manage the risks involved,
companies need to establish a buffer
layer that mediates between traditional
IT solutions and systems and business
technology software, services, and data.
In times of limited IT
budgets, SAP software
helps companies control
TCO by providing support
for integrated processes
and harmonized
user interfaces that minimize
the need for user
training. SAP solutions
contribute to simplified
software landscapes
that greatly reduce integration
efforts, help
improve a company's
business process management
capabilities,
and allow process and
technology innovation to
be activated selectively.
Deploying Services to Enable
Transformation
Services-based business technology
software is used principally by people
in the front office, in support of interactions
across the firewall, to create value
and drive business. The traditional
function of the IT department is to
record business transactions in the
back office. Companies face complex
challenges in how these two very different
enterprise activities should work
together. This is not just a technology
challenge of joining two different technology
types together - it's a bigger
and wider challenge that extends to
enterprise governance and compliance.
Business technology is about flexibility,
experimenting with market opportunities,
constant change, and paperless
environments - outside normal
processes that have been carefully
established. Using business technology
functionality to create new products,
access new markets, and work in
partnership is of particular importance
in downturn market conditions. On the
other hand, using business technology
by definition involves increased risks -
doing new forms of business with new
customers and closer to real time than
ever before.
The roles and people involved in business
technology and IT are inherently
different, with diverging goals, methods,
and measurements of performance.
Users of business technology
are concerned with the creation of revenue,
margins, and market share. IT
users are looking to administer business
functions for less cost. The risk
is that the actions of those in business
technology may offset cost savings
being delivered by IT.
A set of sophisticated solutions can
provide an enabling layer between
traditional IT activities and business
technology, service-based functionality.
Cutting-edge software can provide
both the connectivity and the necessary
policy management for successful
governance and compliance. To implement
the necessary enabling layer,
companies need software solutions
that enable them to move from connectivity
to interactive services, distinguish
between structured data and unstructured
data, integrate processes and
procedures, and enact and enforce
policies and standards.
The Enabling Layer
Tightening the Business Network
for Competitive Advantage
Distributed global enterprises work
with an extremely complex ecosystem
of interconnected partners - all part of
the organization's extended network. In
the pharmaceutical industry, for example,
a business would work with healthcare
professionals, academics, suppliers,
patients, and state and federal
government agencies. It works with
these and other constituencies and
partners using business processes
including prescription and dispersion,
disease management, research, clinical
activities, marketing, drug trials, new
product processes, and healthcare
legislation.
More and more, companies in all industries
find they need to work with a similarly
complex network of partners and
stakeholders across the business network
and around the globe, with business
processes running the gamut
from procurement to research and
development. To balance the differing
needs of business technology and
traditional IT and ensure that missioncritical
processes are protected from
risk, it is essential to implement
a separation zone between internal
and external systems and solutions.
The challenge is to add new functionality
into existing IT solutions while
safely maintaining crucial ERP applications
that control most of the business.
Over many years, an increasing number
of devices designed to be networked
have led to business information systems
constructed around a vast array
of standardized connectivity requirements
and protocols. The growth and
complexity of networks in a business
ecosystem contribute to the increasing
need for functionality to manage
the networks and control access and
security. And the evolution of new
devices continues, with increases in
power, complexity, and sophistication.
The demand for bandwidth to feed the
network is insatiable, and downtime for
a company's network can spell disaster.
The safe operation of such a business
network depends on the effective
transition of an enterprise-centric network
supporting traditional information
technology to a network that supports
both the traditional IT department and
the needs of business technology services
and business users.
Companies need to focus on supporting
an external, business-technology
set of services that can manage the
policies of the relationships among
various external entities - and with the
internal IT department elements. This
transition is an opportunity to rationalize
the traditional, existing network, to
reduce costs and free resources to
meet the needs of the business
community for expanded, business
technology services.
Transforming Data and Content
into Insights
The conflict between unstructured and
structured data is an issue that continues
to grow and that has profound
implications for compliance. Auditors
increasingly demand "information
assurance" to determine that enterprise
data was accurately created by
known procedures and not based on
imported, unchecked data.
The vast amount of unstructured data
in the enterprise ecosystem is created
by individual business users, often
without regard to standards or policy.
Building a consistent, coherent, and
compliant architecture to import, create,
manage, store, and recover data
across all enterprise activities is far
beyond the scope of a single master
data management project. Archiving
data presents challenges, as many
archiving systems are built around proprietary
techniques for which products
are no longer available, leading to the
risk of relying on an obsolete reader to
access information archives.
The software that functions as the
enabling layer is in effect the separation
zone between the unstructured
information and market-facing activities
of business technology and the structured
data of the enterprise IT departments
administering the back-office
processes. This separation is necessary
for security and compliance purposes
and for the requirements of the
technologies themselves. Companies
must demonstrate to auditors that
these policies are in place and that
information is not being accepted as
enterprise data by default.
And the sheer volume of data inside
the enterprise leads to an apparently
never-ending requirement for more and
more storage. Moving data accessed
infrequently into so-called "offline" lowcost
systems is the traditional answer,
but it is increasingly difficult to define
any significant amount of data to be
classified for offline storage.
Standards to Enable
Interoperability Across the
Network
Software solutions used to build the
enabling layer between traditional IT
departments and business technology
must use standards and process patterns
that have been devised to enable
enterprises to do business together.
The software should work with and
adhere to the requirements and conditions
of standards groups, including:
- The open group architectural
framework (TOGAF)
- The Jericho forum
- Extensible access method (XAM)
data
- Business process execution
language (BPEL)
Business Insights - From Strategy
to Execution
Decision makers across the organization
need to know that their information
is current and based consistently on a
single version of the truth yet reflects
the many different and interrelated
aspects of the organization. Acquiring
this information and carrying out the
strategies that rely on it require the
complete integration of the organization's
business and IT processes
through a robust and unified technology
platform.
Companies need software solutions
that are integrated and holistic. Those
that maintain applications built on multiple
underlying architectures find integration,
testing, multiple user interfaces,
maintenance and support, and data
life-cycle management much more
expensive than those enterprises with
end-to-end solutions. And a fragmented
approach lengthens the time it takes to
gain business insights, because of the
disparate data and process environments.
This situation elongates time to
action because process design and
execution hit so many roadblocks.
Overall, the integration between internal
and external activities - between
business technology and traditional
information technology - is a critical
activity that all enterprises will face.
The longer a strategic approach is
delayed, the more complex and difficult
the challenge becomes. When faced
with a similar situation - the issue of
adopting networked personal computers
over mainframes - companies that
waited were forced to reintegrate and
standardize in the mid-1990s. Companies
lagging behind the curve can pay a
heavy price. Starting to think about
how to build the enabling layer is a
necessity, and recognizing the urgency
of doing this work to save costs is a
reality.
Strategic Advice for a Best -Run
Business
Solutions for End-to-End Business
Processes
"SAP Business Suite software, with the synchronized release
strategy and enhancement packages, will deliver value by
fully supporting our integrated end-to-end business processes.
We anticipate that the enhancement package strategy will
remove the upgrade barrier and help us to more efficiently
deliver the innovation we need for continued success. . . .
[T]he costs associated with implementation and testing of new
functionality are greatly reduced."
Ed Toben, Senior Vice President, GIT and Business Services, Colgate-Palmolive Company
With these facts in mind, it is possible
to see that companies face hard challenges
- and invaluable opportunities -
that call for unprecedented business
flexibility without sacrificing speed, efficiency,
or business integrity. To face
these challenges, business managers
may take their own routes to solve their
own needs by using external service
providers. This creates a risk of recreating
the disconnected conditions of
the early nineties that the advent of PC
technology introduced. The question
therefore is not whether to change, but
how to change safely and enable enterprises
to make the most of new technologies
in a connected enterprise, without endangering systems that support
mission-critical processes. Networked
enterprises require solutions to
enable end-to-end processes that span
departmental boundaries and connect
with business partners. Enterprise performance
and business risk are determined
and influenced by the business
network and establish new dimensions
for business insight and governance.
Businesses need technology advances
and improved functionality to grow revenues
and add value, but pressures to
cut costs are exacerbated by difficult
economic times. Companies need to
look at IT in a new light and rethink how
technology can support and transform
the way decisions are made and the
way business is conducted. The importance
of information technology as a
strategic enabler is changing with the
business environment and business
requirements, with IT focusing on supporting
the lines of business to achieve
strategic business objectives.
What is needed is new functionality
catering to managing front-office, value-
creating activities. Along with new
software, companies need the tools
and techniques to capture business
needs and deploy solutions quickly.
Companies need next-generation business
software designed to help build
cooperative relationships with business
partners, manage risk, and increase
revenues while juggling the sometimes
conflicting needs of stakeholders inside
and outside the organization. Companies
need cutting-edge solutions that
enable them to adapt and thrive in a
business environment characterized by
change and speed. They need solutions
to cut costs without having an
adverse impact on business capabilities
and to increase sales and add new
offerings, channels, partners, and markets.
They need to provide freedom
and flexibility to business users across
the enterprise; manage local and global
compliance without restricting creativity
and innovation; and leverage existing
technology investments.
TThe SAP Proposition
Efficiency, Flexibility, and Insight
in Business Networks
SAP software is renowned for helping
companies achieve the key strategic
aspects of a best-run business. With
SAP Business Suite applications and
SAP BusinessObjects solutions, SAP
is applying that leadership in business
software to meet new demands and
enabling companies to leverage existing
SAP ERP applications.
/p>
SAP has long been a leader in the
enterprise applications market, helping
organizations automate and improve
business operations, leading to better
business process execution. With the
SAP BusinessObjects portfolio of solutions,
SAP has enhanced its offering
and also provides leading business
intelligence software to help organizations
make better strategic decisions.
The combined portfolios of solutions
give customers superior execution and
strategy and, most important, provide
the means to align and connect them in
a closed-loop system supporting strategic
and operational agility. SAP software
supports greater efficiency within
the company and across the business
network, sharpens insight for users
based on reliable real-time data, and
provides the flexibility to turn insight
into strategic decisions. This results in
optimized business performance, which
enterprises need to stay ahead of the
competition.
By providing a comprehensive portfolio
of modular applications, SAP addresses
the business needs of enterprises
of all sizes in all industries, helping optimize
business operations and IT with
respect to process flexibility, efficiency,
and insight into business networks.
Based on open, service-enabled business
process and intelligence platforms,
SAP software drives end-toend,
industry-specific processes and
increases insight for all lines of business.
In times of limited IT budgets,
SAP software helps companies control
TCO by providing support for integrated
processes and harmonized user
interfaces that minimize the need for
user training. SAP solutions contribute
to simplified software landscapes that
greatly reduce integration efforts, help
improve a company's business process
management capabilities, and allow
process and technology innovation to
be activated selectively.
With SAP software, companies can
balance traditional IT transactions and
cutting-edge business technology interactions.
With the software, businesses
can mediate the differences of business
technology and information technology
- connecting (yet creating a buffer
between) the front office and back
office and providing the necessary
security of data and processes.
SAP Business Suite - Execute on
Business and IT Strategies
SAP Business Suite helps enterprises
optimize, execute, and align business
and IT strategies. With the software,
companies have the unique ability to
perform essential end-to-end business
processes with modular applications
that are designed to work with each
other. In addition to reporting and analytics
functions, companies get a
robust technology environment for
designing, composing, and adapting
business processes that meet specific
industry needs, from healthcare to consumer
products manufacturing. SAP
Business Suite applications support
processes for finance, human resources,
manufacturing, procurement, product
development, marketing, sales, service,
supply chain management, and IT
management.
Enabled by SOA , SAP Business Suite
gives large enterprises the flexibility to
adjust business processes in a world of
accelerating change. The core applications
of SAP Business Suite are powered
by the SAP NetWeaver® technology
platform, enabling companies to
integrate value chains and leverage
SAP and non-SAP solutions from the
SAP ecosystem. The platform enables
organizations to support the integrity,
security, and scalability of missioncritical
business processes.
With SAP Business Suite, every line of
business can receive transactional
information and management reports -
anytime from anywhere - through standard
SAP interfaces, mobile devices,
and desktop applications. The software
helps companies connect operations
with strategy for planning, budgeting,
and operational reporting across organizational
divisions and processes.
WWith the latest releases of SAP Business
Suite applications, powerful functionality
helps companies address the
new challenges of business technology
and information technology. The latest
versions enable valuable, comprehensive
sets of interconnected business
processes that support the company's
business strategy and involve multiple
lines of business. Preintegrated processes
support lines of business in
optimizing key performance indicators
that contribute to enterprise business
strategies. Examples of these value
scenarios include:
- Collaborative demand and supply
planning and manufacturing network
planning for consumer products
companies/li>
- Integrated product development for
high-tech companies
- Asset safety and compliance for
chemical companies
Enhancement Packages - Delivering
More Innovation Quickly
SAP customers benefit from the
enhancement package approach that
enables continuous, less-disruptive
innovation. To support customers in
reducing total cost of ownership (TCO),
SAP Business Suite 7, the newest version,
delivers more than 300 functional
innovations through enhancement
packages for SAP ERP and a synchronized
release schedule for all core
applications for increased ROI .
Enhancement packages let companies
take advantage of new and improved
business functions to improve the efficiency
and flexibility of existing business
processes, while keeping core
software stable. Enhancement packages
are installed along with support
packages as part of regular maintenance
(afterward, innovation can be
activated when you need it) without
having to run an upgrade project. And
the switch framework provides the flexibility
to activate only the functionality
needed by the business.
Companies can choose enhancement
packages that help with outsourced
manufacturing, component and task
sourcing, and audit management and
quality management. Companies can
solve immediate challenges by implementing
selective process steps quickly,
enabling them to get a jump start
with functionality that includes:
- Project and portfolio management for
IT and research and development
- Manufacturing visibility, integration,
and intelligence
- Inventory optimization
- Accelerated savings procurement
SAP is one of the first and only software
providers to use service-oriented
architecture to deliver new functionality
to users in the form of enhancement
packages.
Enterprise Support
Business Suite provides robust
support for finance, human resources,
manufacturing, procurement, product
development, marketing, sales, service,
supply chain management, and IT
management processes. Built by a
company with more than 35 years of
experience with best-in-class enterprises,
SAP Business Suite can help
organizations:
- Integrate high-integrity business processes
across organizational, departmental,
and geographic boundaries
- Expand existing business processes
or add new processes as quickly as
possible
- Consolidate enterprise software landscapes
to reduce costs or scale their
operations for more-efficient growth
Aligning Strategy and Execution
SAP Business Suite enables enterprises
to execute and optimize their business
and IT strategies at the same
time, with the unique ability to perform
their essential industry-specific and
business support processes. The software
provides better insight and visibility
across organizations, improves operational
efficiency and effectiveness,
and increases the flexibility to address
business change. Companies can
sharpen insight and visibility into processes
and data, improve operational
efficiency and effectiveness, and
increase the flexibility to address business
change throughout the enterprise.
"The new enhancement package offers flexibility to help us to more efficiently
deliver the innovation we need for continued success. . . . [Costs associated with implementation and
testing of new functionality are greatly reduced."
Hindustan Unilever Limited
Enabling and Managing Change
SAP NetWeaver is the reliable, secure,
and scalable foundation for missioncritical
business processes. In addition,
it provides business value by supporting
SAP -certified partner solutions and custom-
built solutions. It increases business
insight by providing the correct business
and information context for business analytics
to boost efficiency and flexibility for
extended end-to-end processes. The
SAP NetWeaver Business Process Management
component provides support
to extend core applications with agile,
differentiating processes.
"These services don't just reduce
costs, they help us grow the
business. We think SAP hit a
home run with SAP NetWeaver
and service-oriented architecture."
Don Ross, Implementation Lead,
Hubbell Lighting Inc.
"Capgemini consultants made a
huge difference. We could not
have done this without them.
Lorraine Chase, Functional Lead,
Sales and Distribution, Hubbell Lighting Inc.
All core applications in SAP Business
Suite are based on SAP NetWeaver,
which integrates naturally and with
relative ease. As an advanced SOA -
enabled technology platform, SAP
NetWeaver unifies a comprehensive
set of middleware functions in a modular
software environment with the aim
of integrating non-SAP applications to
further reduce IT complexity and cost
and to increase business flexibility.
SAP BusinessObjects Solutions
- Optimizing Business
Performance
SAP BusinessObjects solutions enable
businesses to address the key challenges
to optimizing business performance.
With the software, companies
can enable collaborative networks. The
SAP BusinessObjects portfolio supports
the efficient flow of information
from a broad array of data sources,
enabling an organization to collaborate
across business boundaries, make
more effective decisions, and strengthen
its competitive advantage.
With the solutions, companies can
enable people to work as teams in a
way that reflects how they really work.
The SAP BusinessObjects portfolio
provides business users tools and
applications to handle the information
needed, in the right context for the
issue at hand. The solutions enhance
cooperation, collaboration, and decision
making within groups, across work
units, and throughout the enterprise.
In addition, the portfolio contains solutions
to help companies gain business
insight, manage enterprise performance,
and govern enterprise risk and
compliance.
"The SAP BusinessObjects
solutions have provided us with
the flexibility and scalability
to allow us to effectively grow
our business."
Durgesh Das, Business Intelligence Manager,
CompuCredit Corporation
Reliable, Compliant, and Sustainable
Operations
SAP BusinessObjects governance, risk,
and compliance solutions help organizations
maximize strategic and operational
effectiveness while minimizing cost.
With them, companies can aggregate
and manage key risks activities,
automate controls across processes,
and monitor risks and controls across
disparate systems.
"With SAP BusinessObjects
governance, risk, and compliance
solutions, the ‘hallway
noise' about security has
gone from nonstop negative
comments to nonexistent."
James Bowman, Manager, IT Security,
Allegheny Energy Inc.
Drive Performance with Financial and
Operational Performance Management
The SAP BusinessObjects enterprise
performance management (EPM) solutions
enable organizational alignment
and execution that conform to strategic
goals, foster collaboration, drive accountability,
and measure performance.
The solutions provide the business
insight companies need to undertake
corrective action, synchronize budgets
with corporate goals, and perform fast,
accurate statutory and management
reporting. With the solutions, enterprises
can build user-friendly models
to manage their organizational costs,
minimize spend, and maximize profitability.
These solutions natively integrate
universally used productivity tools such
as Microsoft Excel with unified data
stores to preserve data integrity and
consistency for EPM processes.
Breaking the Barriers of Traditional
Business Intelligence Solutions
With the business intelligence solutions
and information management solutions
in the SAP BusinessObjects portfolio,
companies gain an industry-leading
intelligence platform that provides all
constituents in a business network with
trusted business information, helping
them respond faster and make better,
timelier decisions. This intelligence platform
gives end users access to a broad
array of internal and external, structured
and unstructured, SAP and non-
SAP data sources, reflecting SAP 's
commitment to openness and interoperability
in heterogeneous software
landscapes.
End-to-End Business Processes
SAP Business Suite software and SAP
BusinessObjects solutions increase the
integrity, flexibility, insight, and efficiency
of business networks by supporting
end-to-end business processes - connecting
you to partners, customers, and
suppliers. The software empowers people
to better manage enterprise performance
and align enterprise risk and
compliance management with a codified
governance framework. Powerful functionality
enables you to visualize and
control business processes based on
unified internal and external data sources,
which helps you close the loop
between strategy and execution.
"The SAP BusinessObjects
Planning and Consolidation application
is such a flexible tool -
it is very easy for me to analyze
data. Now we can see and make
changes in the specific areas affected.
In the past, we could see
only the total company impact."
Robert Garvey, Senior Manager,
Financial Planning and Analysis, Myron Corp.
Capgemini and the Collaborative
Business Experience
Working Together in a Different Way
Changes in technology call for changes
in techniques, processes, and implementation.
The long-term, big-budget
classic IT approach does not apply in
the world of business technology. Business
users need to drive fast, highimpact
changes directly, with rapid turnaround
and deployment. Business
technology is not about a single project
with terms and conditions negotiated to
control the relationship and with inevitable
change orders as the work progresses.
It's about working together in
a shared understanding to create value
in response to ever-changing business
requirements.
The Collaborative Business Experience®
is the cornerstone of Capgemini's
approach2 - a different way of working
to help enterprises gain the flexibility
they need. Goals and behaviors are
jointly defined as a framework for the
relationship and to support a strong
collaboration around the delivery model.
Working this way brings a powerful
combination of capabilities to the table,
in addition to the experience of SAP .
Capgemini works directly with business
managers in its proven Accelerated
Solutions EnvironmentTM (ASE) centers,
with offerings including the following
that enable innovation and business
value:
- RApid INnovation (RAIN)
methodology
- Rapid Design & Visualization (RDV)
Lab
- Agile methodologies development
- Rightshore® global delivery model
"RAIN is a very good tool for us
as a customer - to have a clear
bridge from the current state
into the future about how IT
can be a true enabler in our core
business."
Olle Jonsson, Group CIO, SKF Group
With these offerings, Capgemini helps
define and model complete business
processes to see how SAP software
can be deployed as quickly as possible
and to best meet the company's needs.
By providing a visual solution prototype,
Capgemini also helps facilitate
business user adoption of the solutions.
Capgemini facilitators work with
business managers and the company
to help optimize their SAP software
implementation.
Businesses need to win quick results
tactically, but they must also close the
gap between strategy and execution.
This requires enterprises to view their
technology decisions in the context of
their business solutions - not purely on
the basis of technological considerations.
Many recognize this need but
fail in the execution of the goal.
Capgemini, through its Collaborative
Business Experience® approach, can
help organizations bring its members
together to facilitate a business solutions
implementation and get results
they need fast.
Business Network Transformation
Efficiency, Flexibility, Insight -
At the Speed of Change
In difficult economic times, businesses
need technology to enable them to
move quickly, save money, be more
agile, and take advantage of opportunities.
Winning companies will reduce IT
costs, standardize business processes,
gain better insight, and employ moreflexible
processes - reflecting moreflexible
thinking. They are looking to
their enterprise software for a head
start to close the gap between strategy
and execution. These companies seek
to link decision-making systems to integrated,
end-to-end processes that can
be configured to reflect evolving roles
and responsibilities. Companies use
cutting-edge, integrated software solutions
that help them build cooperative
relationships with business partners,
manage risk, and increase revenue
while juggling the competing needs of
stakeholders inside and outside the
organization.
To make the most of current opportunities
and to plan for future success,
organizations need software that
enables them to adapt and thrive in a
business environment characterized by
change and speed. Companies will find
new ways to do business and focus on
low-risk, high-value, and fast projects -
instead of big, long-term, and costly
undertakings. Companies challenge
their IT and their software to help
increase sales by adding new offerings,
channels, partners, and markets. At the
same time, companies need to reduce
costs without having an adverse impact
on business capabilities or limiting the
ability of business users to stimulate
new ideas and create new business.
Companies require software to manage
local and global compliance while
providing freedom and flexibility to
business users across the enterprise.
And with an eye to the bottom line,
businesses in good times and bad seek
solutions that leverage existing technology
for higher ROI and lower TCO.
SAP Business Suite software and SAP
BusinessObjects solutions, along with the SAP
and Capgemini approach, give managers insight
into their business and the tools to take action
and innovate their business - without disrupting
ongoing operations.
Best-run businesses look to trusted
advisors to discover potentials for business
optimization, in particular by
benchmarking current performance
against peer groups. Further, these
businesses are looking for their trusted
advisors to lead them beyond the discovery
of additional business value to
the actual realization of that value - and
fast. They expect these partners to be
in lockstep with the future as it unfolds,
in order to deliver rapid value.
Companies foster continuous insights
by deploying business analytics targeted
at identifying critical business risks
and by gaining visibility into missioncritical
and differentiating business processes
that deserve the highest attention
and focused investment. In the
mission-critical areas, companies need
to plan and execute rapid, compact
projects with a short time to impact and
a fast return on investment. Putting
"hot-topic projects" in a strategic context
helps ensure that tactical projects
make a lasting contribution. A sustainable
focus on the business value contributed
by IT and new technologies
requires monitoring the business performance
of strategic processes and
continuously measuring the contribution
of IT to process effectiveness and
efficiency.
The aftermath of the current economic
reality will relentlessly expose which
companies have emerged stronger
than before. These companies will lead
because they had insights into their
focus areas, efficiency in operations
to stay afloat, and business flexibility
to capture the opportunities every
crisis offers to the bold.