The SAP Business Transformation Management …

1 2013 SAP AG. All rights Hornung MS, SAP Joel Adler UPennThe SAP Business Transformation Management Method (BTM2)parallels with DYNAMICS/P3 2013 SAP AG. All rights is Organizational Dynamics at Penn about?Dynamics Concentrations 2013 SAP AG. All rights of BTM2& DYNM/P3A rare industrial situation that sees its Business strategy inextricably tied to these two principles of Penn Organizational Dynamics Holistic approach Balance of Process and Behavioral perspectivesMapping of Content of the P3concentration Project Management Program Management Risk Management Portfolio Management Business Process Management 2013 SAP AG. All rights 2013 SAP AG. All rights the world s transaction revenuetouches an SAP system. 2013 SAP AG. All rights SAP mobile platform reliably delivers messages worldwide every day. 2013 SAP AG. All rights HANA can increase analysis speed by morethan10,000x, equal towalking from California to New York in 6 minutes.

2 2013 SAP AG. All rights customersproduce85%of the world s pet food. 2013 SAP AG. All rights for Business Transformation (BT) Fundamental and complex changesTechnological innovations ( Information and communication technologies) Increasing globalization (that leads, for example to stronger competition)Pressure for sustainability (which results in changed customer preferences or regulations)Changing workforce (such as increasing global mobility)Radical changes of economic conditions ( Financial crisis)What is Business Transformation (BT)* ExcerptBusiness Transformation implies fundamental and complex organizational changes within as well as across companies alongside the value chain; Business Transformation can also radically alter the company's relations with the wider economic and societal environment. What is Business Transformation (BT)* ExcerptBusiness Transformation implies fundamental and complex organizational changes within as well as across companies alongside the value chain; Business Transformation can also radically alter the company's relations with the wider economic and societal for BT:* Business Transformation Research.

3 2013 SAP AG. All rights Transformation AcademyA global, trans- and interdisciplinary network of Thought LeadersAcademics / InstitutesCustomers / ProfessionalsSAP ExpertsNew: SAP Partners 2013 SAP AG. All rights success rate of Business Transformation projects (less than 40%) Source: Isern et al. (2009)Lack of holistic Management approaches Source: Winter, Uhl (2011)Low success rate of Business Transformation projects (less than 40%) Source: Isern et al. (2009)Lack of holistic Management approaches Source: Winter, Uhl (2011) Business Transformation Management Call for action 25% Failure because of technical demands can not be mapped, sizing problems, problems with connecting legacy systems 75% are failing because of non-technical non acceptance of the solution, skill problems, communication problems, problems with project resourcesSource: Seven Reasons Why Information Technology Projects Fail (2011) 2013 SAP AG. All rights BTM2 Big PictureEnablementProgram/Project ManagementProgramPlanning and GovernanceProgram & Proj.

4 IntegrationMgmtProgram & Project Scope MgmtProgram & Project Time & Cost Mgmt ProgramQuality Mgmt ProgramHumanResource Mgmt ProgramProcurement MgmtRiskManagement360rStrategicRiskAsses smentDeep dives for strategic risk areasAssesstransformationbusiness caseDefine risk strategyRiskManagement ExecutionRisk MonitoringIdentify additional improvementRisk Mgmt. as part of Board GovernanceCompetence & training managementCompetence strategyTraining need analysisAs-is analysis Gap analysisCurriculumdevelopmentTraining preparationTrainingEvaluation & improvementProgramReportingOrganizationa l Change ManagementSet-up & governanceStakeholder managementChange agent networkCommunicationmanagementPerformanc emanagement -Project teamPerformancemanagement -BusinessChange readiness assessmentChange monitoringProcessesManagementDeterminesc ope of analysisFrom template to bespoke inventoryIdentify improvements /add attributesMap selected processesPlan process implementationImplementprocessesEvaluate processesEstablish CIPV alueManagementBaseline analysis ValueestimationDetailed Business caseAgreeownership for realizationPlan benefit realizationExecute benefit realization Review and evaluate resultsEstablishpotentials for further benefitsMetaManagement Orchestration of individual disciplines.

5 Guidelines, Leadership, Culture, Values and CommunicationITTransformationManagementB usiness and IT Capability AssessmentTo-be analysisGap analysisIT roadmap planSolutionarchitecturedesignIT Deployment planIT Operations & Service OptimizationIT Lifecycle Management StrategyManagement AS-ISDataCollectionAnalysis of needs & maturity levelDesignbusiness visionDesignBusiness ModelIntegratedtransformationplanBusines s CaseOrganizational modelRisk analysisDirection 2013 SAP AG. All rights ManagementOrchestration of individual disciplines: Guidelines, leadership, culture, values, and communicationBusiness Transformation Management Methodology (BTM ) Disciplines and deliverables in detailMetaManagement EngageEngageTransformTransformOptimizeOp timizeStrategy to be approved by decision makersProject startup and AS-IS Data collectionAnalysis of Transformation needs and causes (80/20 rule)Design Business VisionDesign Business ModelDefine integrated Transformation planPlan benefit realizationDetailed benefitestimationBenefit review and evaluationRealizebenefitEstablish potentialsfor further benefitsValueManagementRiskmitigation planRiskIdentificationExecute risk mitigation planRisk monitoringReview and evaluate risksRiskManagementProcess to-be designBusiness process analysisProcess evaluationProcess implementationRun, monitor and optimize Business Process deployment planSolution architecturePlan IT operationsIT deployment and testingIT lifecycle Management IT operations & service optimizationTransformational ITManagementChange monitoringExecute change planImprove org.

6 Change readinessEnsure sustainablechangeOrganizational Change preparationNeed, as-is and gap analysisTransfer, application and evaluationCompetence & Training planningProgram/Project initiationProgram/ProjectrealizationProg ram/Project closureProgram and Project , communic. and performance up change plan41253 2013 SAP AG. All rights 2013 SAP AG. All rights 2013 SAP AG. All rights 2013 SAP AG. All rights 2013 SAP AG. All rights 2013 SAP AG. All rights - Strategy Management Portfolio of strategic optionsTransformation readinesslowhighlowhighStrategicredirect ion Expand core Business , transfer and developmentOngoingobservationRisks and opportunitiesOvercome stakeholder crisisIncrease readiness through sensitization of stakeholdersConsolidation & Focus: Focus on core competencies/ Business , Reduction of overcapacitiesDesign Business model: 4 strategic options 2013 SAP AG. All rights - Strategy Management Transformation need analysisStage 0 Stage 1 Stage 2 Stage 3 Stage 4 Stage 5lowhighFlexibility to react (time and options)lowhighPro-activemanagementPro-a ctivemanagementLack of awarenessand knowledgeLack of awarenessand knowledgeLack of stakeholder commitmentLack of stakeholder commitmentLack of strategyLack of strategyLack of businesssuccessLack of businesssuccessNegative impacts not yet visibleBlockade of necessary Transformation effortsCapital consumption, negative cash flowLoss of customersUnclear operating resultsSustained successLack of liquidityLack of liquidityConsideration of different stages: Decreasing flexibility with increasing pressureTransformation stages 2013 SAP AG.

7 All rights 2013 SAP AG. All rights 2013 SAP AG. All rights 2013 SAP AG. All rights 2013 SAP AG. All rights 2013 SAP AG. All rights 2013 SAP AG. All rights 2013 SAP AG. All rights 2013 SAP AG. All rights 2013 SAP AG. All rights 2013 SAP AG. All rights 2013 SAP AG. All rights 2013 SAP AG. All rights 2013 SAP AG. All rights 2013 SAP AG. All rights 2013 SAP AG. All rights 2013 SAP AG. All rights DynamicsandP3 2013 SAP AG. All rights of BTM2& DYNM/P3A rare industrial situation that sees its Business strategy inextricably tied to these two principles of Penn OrganizationalDynamics Holistic approach Balance of Process and Behavioral perspectivesMapping of Content of the P3concentration Project Management Program Management Risk Management Portfolio Management Business Process Management 2013 SAP AG. All rights of Dynamics/P3courses to BTM2 Processes ManagementRisk ManagementCompetence & Training ManagementOrganizational Change ManagementStrategy Management IT Transformation ManagementValue ManagementMeta ManagementManaging Project Portfolios, BayneyGroup Team Dynamics: Kaminstein, ZaneCoaching Others to Manage Conflict, NapierOrganizational Culture Change, VandersliceMastering Organizational Politics and Power, EldredKnowing Yourself: The Coach as an Instrument of Change, NapierDirectionEnablementSystems Thinking.

8 PourdehnadComplexity, Sustainability, and Systems Thinking, BarstowOrganizational Essentials for Leadership, ChoukrounProgram/Project ManagementOrganizational Project Management , ChoukrounProgram Management , HeaslipManaging Project Risk, HornbacherOrganizational Risk Management , Combrick-GrahamProcess Improvement, StankardBusiness Process Excellence, KirchmerThe Art and Science of Organizational Strategy and Planning, ChoukrounOrganizational Diagnosis, Kaminstein, ZaneEffective Entrepreneurship and Leadership, KeechIs Bigger - Inevitable, Better or Worse in Organizations?, LichtPsychodynamics in Organizations, HirschhornLeader-Manager as Coach, RussoStories in Organizations: Tools for Executive Development, GrecoBuilding a Business Case for Sustainability, Barstow, NuessleOrganizational Ethics and Integrity, Fielder 2013 SAP AG. All rights You!Contact information:Tim HornungPractice Manager, Business Transformation AdlerP3 Studies Leader, Organizational DynamicsUniversity of