OpenSAP Sbi1 Week 3 Sustainable Business Processes

Week 3 Unit 1:
Embedding Sustainability into

Business Processes
Embedding Sustainability into Business Processes

Business Process
Collection of related, structured

activities that produce a specific
service or product for a customer
2014 SAP AG or an SAP affiliate company. All rights reserved
Public

Business Process Automation
Usage of software systems to drive, record, and analyze the activities

required to execute a business process
Source: Excerpt from SAP Value Map, Consumer Products, 2013

Public

Business Processes are Automated Using Integrated Applications
Enterprise resource planning

(Finance, HR, production assets, inventories,
manufactured goods, )
Customer relationship management

(Brand, customers, campaigns, )
Product lifecycle management

(Products, bill of material, )
Supplier relationship management

(Contracts, suppliers, )
Supply chain management
(Logistics, transportation assets, )
Source: SAP Value Map, Consumer Products, 2013

Public

The Challenge of Embracing Sustainability Using Traditional Applications
They werent built for the
circular economy.
They werent built to
manage externalities.
They werent able to handle
massive data volumes.

They werent able to
reach consumers.
They werent built to
handle networks of
people or businesses.
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Technical Innovation Allows Us to Build New Systems (or Enhance Old Ones)
In-memory computing, big data

Handle huge data volumes
More easily add new data attributes
Dramatically speed up analytics
Recycle
Cloud
Sustainable practices for more
businesses
Enable networks of people/businesses
Mobile
Everyone can use it
Everywhere, any time
Social
Design
All resources
Sell &
Use
All people
Source
Across the
value chain
Store &
Ship
Produce
Viral adoption
Enormous reach
Public
Thank you
Contact information:
[email protected]
2014 SAP AG or an SAP affiliate company.

All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG or an
SAP affiliate company.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG
(or an SAP affiliate company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional
trademark information and notices.
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.
National product specifications may vary.
These materials are provided by SAP AG or an SAP affiliate company for informational purposes only, without representation or warranty of any kind,
and SAP AG or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP AG or
SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and
services, if any. Nothing herein should be construed as constituting an additional warranty.
In particular, SAP AG or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related
presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP AGs or its affiliated
companies strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be
changed by SAP AG or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment,
promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties
that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
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Week 3 Unit 2:
Sustainable Design
Sustainable Design
Introduction
Design
Creation of a plan or convention for the
construction of an object or a system
Sustainable design
Design products and services that are in
line with the principles of social,
economic, and environmental
Sell &
Use
sustainability
Recycle
Design
Raw material,
fertilizer, energy,
water, cleaners,
dyes, waste,
packaging,
chemicals, etc.
Store &
Ship
Source
Produce
Sources: Wikipedia + Worldwatch Institute, Harnessing Institutional Procurement for People and the Planet, July 2003
Public
Sustainable Design
Business Impact
Investment
Early in the product lifecycle
DfC, DfE, DfR
Time
Return
Improve product efficiencies
and quality at the lowest
cost of change and the
highest degree of freedom
New market opportunities
(local and export)
More competitiveness of
products and services
Source: Nestle Research, 2008

Public
Sustainable Design
Design for Compliance (DfC)
Triggers
Legal requirements: Reach, RoHs, GHS
(Industry) self regulation: Flavor labeling
Customer requirements: Recipes,
specifications, declarations
Approach
Check for compliance with regulation with
each design/recipe change
Use of IT
Computer-aided/assisted design
Product safety and stewardship
Automate the compliance check across
millions of recipes, calculation rules, and an
ever increasing number of regulations
Public
Sustainable Design
Design for Environment (DfE)
Triggers
Competitive differentiator, customer
requirement
Reduce use of non-renewable material
Cost reduction (energy)
Approach
Calculate environmental impact to
complement the traditional form/fit/function
approach
New skills required for engineers/designers
Use of IT
Integrate additional data/content, e.g.,
emission factors or alternative materials
Dassault Systmes SolidWorks Corp.
Public
Sustainable Design
Design for Recyclability (DfR)
Triggers
Aeron Chair by Herman Miller
Regulation (EPEAT, WEEE)

Cost of supply
Competitive differentiation
Approach
Modularity
(Standardize parts for reuse and recycle)
Dematerialization
(Minimize glues, adhesives)
Avoid degradation
(Eliminate certain plastics)
Use of IT
Integration of product lifecycle
management with recycling administration
Public
Thank you
[email protected]

Public
Week 3 Unit 3:
Sustainable Sourcing and
Procurement
Sustainable Sourcing and Procurement

Introduction
Sourcing
Procurement practices aimed at finding,
evaluating, and engaging suppliers of
goods and services
Recycle
Design
Sustainable sourcing
Source products and services in line with
the principles of social, economic, and
ecological sustainability, beyond the
traditional aspects of cost, quality, and
consistent supply
Less resource intensive
Less polluting
Less harmful to human heath and the
environment
Sell &
Use
Raw material,
fertilizer, energy,
water, cleaners,
dyes, waste,
packaging,
chemicals, etc.
Store &
Ship
Source
Produce
Sources: Wikipedia + Worldwatch Institute, Harnessing Institutional Procurement for People and the Planet, July 2003
Public

Business Impact
Trends
Brand value at risk

Increasing regulation
Changing customer requirements
Resource scarcity and price volatility
Investment
Build new sourcing and procurement
capabilities (varies by industry and region)
Return
License to operate
Mitigate risk, ensure business continuity
Optimize resources
Brand and product differentiation
McDonalds to Recall 12 Million Shrek Glasses Citing

Cadmium Health Risk (NY Times)
Underage Workers Found in Apple Supply Audit
(BBC News)
Mattel Issues New Massive China Toy Recall
(NBC News)
Oil Spill Panel Urges Major Reforms
(BBC)
Public

Overview: How Industries Change
Compliance
(legal and customer
requirements)
Active management
(suppliers and products)
Supply Chain
Optimization
(link sourcing and design)
Supplier
Risk and
performance
More
Sustainable
Products
Sophistication
Public

Compliance: Meet legal and customer requirements at the lowest cost
Supplier code of conduct

Minimum requirements to do business
Supplier standards, audits, etc.
Chemical transparency
Part of procurement
systems
REACH (registration of chemicals)

RoHS (restriction of hazardous substances)
Product provenance
Compliance rules / content
Conflict minerals (human rights abuses)
Impact
License to operate (loss of market if not
compliant)
New attributes for procured

goods
Public

Active Management: Transparency About Suppliers and Product Attributes
Corporate reporting
Framework (GRI, DJSI, etc.)

By industry (SASB, etc.)
By impact (CDP, etc.)
By customer (P&G, Walmart, etc.)
Connectivity, master data

management
Product attribute ecolabels

600+ private ecolabels (FSC, etc.)
Government (ENERGY STAR, etc.)
Online product information
Impact
Subject matter complexity
Transparency (certification, audit, etc.)
Multi-tier network (address hotspots
wherever they exist in supply chain)
Online reporting, mobile for

smallholders
Public

Example: SAP Product Stewardship Network
Source: The Sustainability Consortium
Public

Supply Chain Optimization: Linking Sourcing and Design
Industry network transformation

m:n business network
Multi-tier visibility
Scalable across industry and impact
category
Data granularity begins at material master
Data needs to be material (see materiality)
Data needs to reside in system of record
when business decisions are being made
IT levers
Cloud-based connectivity
Big data transparency and analytics
Source: http://www.ariba.com
Public
Thank you
[email protected]

Public
10
Week 3 Unit 4:
Sustainable Production
Introduction
Production
The action of making or manufacturing
goods from components or raw materials.
Recycle
Design
Sustainable production
The creation of goods and services using
processes and systems that are
economically viable while minimizing
pollution, conserving energy and natural
resources, and protecting the safety and
health of workers, communities, and
consumers.
Sell &
Use
Worker safety,
clean
technologies,
substitute
material, reuse
material, increase
efficiencies, lower
waste
Store &
Ship
Source
Produce
Sources: Oxford Dictionary + Lowell Center for Sustainable Production

Public
Business Impact
Infrastructure investments, process

improvements, education, and
engagement in:
Environmental, health, and safety
compliance and risk management
Product safety and stewardship
Energy management
Return
Lower resource and production costs

Lower regulatory compliance costs
Improved sales and brand recognition
Improved people and product safety
Decoupling growth from impact
Talent retention
Source: IDC Manufacturing

Public
Environment, Health, and Safety Compliance and Risk Management
Triggers
Operational excellence goals
Risk and cost of incidents
Safety and environmental regulations and
reporting requirements
Approach
Control risks proactively to prevent incidents
Standardize and automate safety and
environmental compliance processes
Embed safety culture in daily operations
Use of IT
Top risk dashboard and preventive actions

Mobile incident and near-miss capture
Incident analytics and corrective actions
Emissions calculations and reporting
Public
Product Safety and Stewardship
Triggers
Complex global product regulations
Product marketability
Risk to revenue and brand
Approach
Adapt to dynamic compliance requirements
Standardize and automate product
compliance processes
Enhance collaboration across supply chain
Use of IT
Unified data throughout product life cycle

Global compliance platform
Supply chain integration
Cloud-based business networks
Public
Energy Management
Triggers
Energy supply and price volatility
Operational excellence goals
Emissions reduction targets
Approach
Gain visibility into enterprise-wide energy
use and costs
Optimize energy costs
Improve environmental performance
Use of IT
Correlate energy use with production
Big data analytics: what-if simulation
KPI dashboards to drive awareness and
action
Public
Thank you
[email protected]

Public
Week 3 Unit 5:
Sustainable Logistics
Introduction
Logistics
The management of the flow of goods
between the point of origin and the
point of consumption.
Recycle
Design
Sustainable logistics
Manage the flow of goods between
origin and consumption such that a
more sustainable balance between
economic, social, and environmental
impacts is achieved.
Sell &
Use
Pollution, noise,
safety, waste, fuel
consumption,
emissions, land
use, biodiversity,
congestion, etc.
Store &
Ship
Source
Produce
Source: Wikipedia
2014 SAP AG. All rights reserved.
Public
Business Impact
Investment
Optimize network
Change mode of transportation
Upgrade fleet
Improve asset utilization
Mobilize employees
Change energy source
Select subcontractor
Return
Energy and cost savings (fuel, electricity)
Reduced emissions, brand recognition
Increased worker safety
Source: RnRMarketResearch.com
Public
Network and Routing Optimization
Approach
Network design
Routing
Modal planning (air, rail, road, or ocean?)
Local sourcing
Load optimization (shared transports)
Impact of IT
Reach through mobility
Planning algorithms
Fleet/load sharing
Public
Fleet Upgrade and Renewal
Approach
Predictive maintenance
Alternative drive trains
(hybrid or electric cars)
Alternative fuels
(biogas, biodiesel, renewable electricity)
Impact of IT
Sensoring
Internet of Things
Asset management systems
Sourcing systems
Public
Dematerialization
Approach = Impact of IT
3D printing
Tele-presence
Digitization of physical goods
(documents, books, music, video, )
Public
Thank you
[email protected]
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG.
The information contained herein may be changed without prior notice.
These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or
warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group
products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing
herein should be construed as constituting an additional warranty.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in
Germany and other countries.
Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.
Public

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Week 3 Unit 1:

Embedding Sustainability into

Embedding Sustainability into Business Processes

Collection of related, structured

2014 SAP AG or an SAP affiliate company. All rights reserved

Embedding Sustainability into Business Processes

Usage of software systems to drive, record, and analyze the activities

Source: Excerpt from SAP Value Map, Consumer Products, 2013

Embedding Sustainability into Business Processes

Enterprise resource planning

Customer relationship management

Product lifecycle management

Supplier relationship management

Source: SAP Value Map, Consumer Products, 2013

Embedding Sustainability into Business Processes

They werent built for the

massive data volumes.

2014 SAP AG or an SAP affiliate company. All rights reserved

Embedding Sustainability into Business Processes

In-memory computing, big data

2014 SAP AG or an SAP affiliate company.

2014 SAP AG or an SAP affiliate company. All rights reserved

Source: Nestle Research, 2008

2014 SAP AG or an SAP affiliate company. All rights reserved

Aeron Chair by Herman Miller

Regulation (EPEAT, WEEE)

2014 SAP AG or an SAP affiliate company.

2014 SAP AG or an SAP affiliate company. All rights reserved

Sustainable Sourcing and Procurement

Sustainable Sourcing and Procurement

Brand value at risk

2014 SAP AG or an SAP affiliate company. All rights reserved

McDonalds to Recall 12 Million Shrek Glasses Citing

Sustainable Sourcing and Procurement

Sustainable Sourcing and Procurement

Supplier code of conduct

REACH (registration of chemicals)

Compliance rules / content

Conflict minerals (human rights abuses)

2014 SAP AG or an SAP affiliate company. All rights reserved

New attributes for procured

Sustainable Sourcing and Procurement

Framework (GRI, DJSI, etc.)

Connectivity, master data

Product attribute ecolabels

Online product information

2014 SAP AG or an SAP affiliate company. All rights reserved

Online reporting, mobile for

Sustainable Sourcing and Procurement

Source: The Sustainability Consortium

2014 SAP AG or an SAP affiliate company. All rights reserved

Sustainable Sourcing and Procurement

Industry network transformation

2014 SAP AG or an SAP affiliate company.

2014 SAP AG or an SAP affiliate company. All rights reserved

Sources: Oxford Dictionary + Lowell Center for Sustainable Production

Infrastructure investments, process

Lower resource and production costs

Source: IDC Manufacturing

Top risk dashboard and preventive actions