Intelligent Business Operations for Utilities, powered by SAP HANA
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The document presents SAP's vision for Intelligent Business Operations (IBO) for utilities, highlighting the need for real-time analytics and process automation to enhance efficiency and customer satisfaction. It details challenges like lack of end-to-end visibility in business processes and introduces solutions such as leveraging big data and SAP HANA for operational transparency. The presentation outlines a structured approach to creating business scenarios that address operational inefficiencies and improve decision-making capabilities.
Intelligent Business Operations for Utilities, powered by SAP HANA
- 1. © 2015 SAP AG or an SAP affiliate company. All rights reserved. 1 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
- 2. © 2015 SAP AG or an SAP affiliate company. All rights reserved. 2 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.
- 3. © 2015 SAP AG or an SAP affiliate company. All rights reserved. 3 Agenda 1 Need for Intelligent Business Operations 2 Demo Meter-to-Cash Intelligence 3 Use-Cases 4 Next Steps
- 4. © 2015 SAP AG or an SAP affiliate company. All rights reserved. 4 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
- 5. © 2015 SAP AG or an SAP affiliate company. All rights reserved. 5 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
- 6. © 2015 SAP AG or an SAP affiliate company. All rights reserved. 6 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.
- 7. 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. www.gartner.com/newsroom/id/1943514 New Process Formula: BAM & BPM + Real Time Intelligence Intelligent Business Operations
- 8. © 2015 SAP AG or an SAP affiliate company. All rights reserved. 8 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
- 9. 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
- 10. © 2015 SAP AG or an SAP affiliate company. All rights reserved. 10 Demo: efficient meter-to-cash process
- 11. 11© 2014 SAP AG or an SAP affiliate company. All rights reserved. Meter reading request received from supplier 1
- 12. 12© 2014 SAP AG or an SAP affiliate company. All rights reserved. Distributor collects meter readings Distributor uploads meter readings to supplier system 2
- 13. 13© 2014 SAP AG or an SAP affiliate company. All rights reserved. Generate bills for meter readings and validates bills 3
- 14. 14© 2014 SAP AG or an SAP affiliate company. All rights reserved. Invoice Document created; validate invoice 4
- 15. 15© 2014 SAP AG or an SAP affiliate company. All rights reserved. Invoice printing; deliver invoices to customers 5
- 16. 16© 2014 SAP AG or an SAP affiliate company. All rights reserved. Customer make the payment for invoices 6
- 17. © 2015 SAP AG or an SAP affiliate company. All rights reserved. 17 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 suppliers3 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
- 18. © 2015 SAP AG or an SAP affiliate company. All rights reserved. 18 Frank Solution Expert “I want to iteratively build Business Scenarios to empower line-of-business users and Operational Managers”
- 19. © 2015 SAP AG or an SAP affiliate company. All rights reserved. 19 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 IngredientsofaBusinessScenario
- 20. © 2015 SAP AG or an SAP affiliate company. All rights reserved. 20 3 simple steps to create a Business Scenario a model-driven approach for iterative development generate business scenario discover end-to-end big process1 configure business scenario2 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
- 21. © 2015 SAP AG or an SAP affiliate company. All rights reserved. 21 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 IngredientsofaBusinessScenario
- 22. © 2015 SAP AG or an SAP affiliate company. All rights reserved. 22 High-Level Architecture SAPJavaServer SAPHANA SAP Process Orchestration A2A & B2B Integration Orchestration Processes 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 SAPPowerDesigner BusinessProcess Modeling EnterpriseArchitecture DataModeling space.me
- 23. 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
- 24. 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?
- 25. 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.
- 26. © 2015 SAP AG or an SAP affiliate company. All rights reserved. 26 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
- 27. © 2015 SAP AG or an SAP affiliate company. All rights reserved. 27 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
- 28. © 2015 SAP AG or an SAP affiliate company. All rights reserved. 28 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
- 29. 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
- 30. © 2015 SAP AG or an SAP affiliate company. All rights reserved. 30 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
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