SAP Continuous Improvement – The Importance of Business Process Optimization

You don’t have to look far to read an article or see an advertisement touting the benefits of an SAP implementation or deployment of S/4 HANA, SAP RPA, SAP Leonardo, or another buzzworthy SAP solution. But when is the last time you read an article highlighting the importance of SAP continuous improvement through Business Process Optimization (BPO)? Our friends at ASUG hosted a webinar on BPO and this article will familiarize you with the nomenclature of BPO and explain why it is such an important foundational pillar in any SAP continuous improvement strategy.

What is SAP business process optimization (BPO)?

SAP BPO is the art of maximizing the value of technology investments by streamlining workflows and business processes to improve workforce efficiency and organizational agility. So great, now you know what BPO is, but you are probably asking: what does BPO look like in a real-world environment and how do I achieve this? Great question! BPO can be broken down into three fundamental pillars: sustainment, optimization, and strategy. Each of these categories will be discussed in the following paragraphs.

Sustainment

At a macro level, there isn’t a single organizational task more important than sustainment (i.e. keeping the lights on). Sustainment shapes the very framework for the ways in which business is conducted and serves as the engine that propels revenue generation – the primary factor in all other organizational initiatives. From an SAP perspective, it is important to note that sustainment is a multi-pronged approach that requires careful consideration surrounding a number of different topics. As it relates to sustainment, here are some things to think about:

• What is the size and scope of your SAP super-user network?
• How do you approach and manage processes and associated documentation?
• Have you established health metrics for processes and operations?
• What is your strategy for managing upgrades/outages in a post-implementation environment?
• What strategic partnerships do you have in place for SAP consulting/staffing of key skillsets?

Optimization

While predicated on the adoption of an appropriate mechanism for sustainment, optimization is an equally important counterpart in the overarching approach to SAP continuous improvement. The optimization component focuses primarily on the identification of unnecessary complexities and process inefficiencies to develop solutions that more appropriately address the needs of the business, all within the confines of technological capabilities. As you well know, SAP provides solutions with a great deal of out-of-the-box value, but that most of the time require additional customization to align with legacy business processes. As such, here are some things to think about as it relates to optimization:

• How aligned are current business/SAP processes (i.e. how much customization is needed)?
• Are there any unnecessary complexities/redundancies in business processes?
• What opportunities are there for minor technical enhancements that provide major ROI?
• What large scale capabilities are lacking?
• As it relates to business processes and SAP upgrades, what mechanisms are in place to tackle SAP OCM?

Strategy

At its core, the objective of BPO is to enable the realization of business strategy through agility. At times, it may seem that BPO and agility are conflicting ideologies. However, as processes are evaluated, optimized, and redeployed, it becomes evident that the opposite holds true. Well thought out and properly architected BPO initiatives result in increased efficiency, higher productivity, and drastically improve the time it takes to get from strategy inception to realization. All the while, increasing opportunities for organizational growth and acting as a catalyst of stabilization during times of market turbulence.

4 key ingredients of successful SAP Continuous Improvement BPO initiatives

People – The importance of the SAP super-user network can’t be understated. Good talent is hard to find, so when you do find it, make sure you’re keeping it. Furthermore, make sure that there is a channel for knowledge transfer throughout the organization. The goal should be to continually grow the network through the transfer of knowledge. (Hint: finding great talent is our specialty at Bull City Talent!)

Process – Process is equally important in this equation, as process-discipline improves cross-functional business alignment and in turn, leads to faster decision making and organizational agility. SAP continuous improvement through BPO encompasses more than IT. For the overarching initiative to be successful, it is important to understand that BPO is truly a partnership between IT and the business. To be successful, all parties must have a seat at the table.

Data – How many times have you heard “you’re only as good as your data?”. Well, it’s true. Accurate data is imperative to the success of your SAP continuous improvement journey. Data is the primary driver that navigates discussion and initiates the analysis and alteration of business processes to bring them into closer alignment with business strategy. By that same token, business strategy realization can then be linked back to the accuracy of empirical data to support BPO.

Technology – In terms of technology, it’s important to understand the out-of-the-box functionality of your SAP environment and the pre-configured processes that govern this functionality. While some amount of customization is inevitable, the closer in alignment you can bring business processes to pre-configured SAP processes will help to minimize technological bottlenecks and time spent dealing with break/fixes. Ultimately, ensuring that you are strong in the people and process categories will help to minimize technological challenges.

Why SAP Continuous Improvement BPO?

Continuous Improvement – BPO provides a framework and support system for SAP continuous improvement and allows maximum value to be drawn from business processes.

Performance – Process-discipline and metrics-centered business actions, both by-products of BPO, promote organizational performance, as well as provide additional capacity for external integration and internal business alignment.

Competitive Advantage – As process becomes more aligned with business strategy, the cycle of executing that strategy is shortened, thus providing better products, service, and support to the customer. All of which create a quantifiable competitive advantage.

Regardless of where you are in your SAP continuous improvement journey, we want you to know that Bull City Talent Group is here to help. Whether through leveraging our network of technical and functional SAP consultants, or through simply having a human conversation, we welcome the opportunity to get to know you better.

Learn more in the ASUG webinar on BPO here.