Accenture integrated business services new answer
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Accenture integrated business services new answer

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Accenture-Integrated-Business-Services-New-Answer Feb 2013

Accenture-Integrated-Business-Services-New-Answer Feb 2013

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  • 1. Integrated Business Services: The New Answer forYour Master Data, Reporting and Analytics Needs
  • 2. Integrated Business Services: The New Answer for Your Master Data, Reporting and Analytics NeedsAlthough master data management is not a new idea, theconcept of enhanced reporting and analytics for improvedbusiness insights continues to gain strength. If they haven’talready, many businesses will soon be making significantinvestments in master data, reporting and analytics designedto improve their knowledge of customers; re-position theirproducts in the market; drive more profitable sales; bettermanage their resources; and ultimately deliver better financialperformance. At present, however, these investments typicallyare done at the independent function or business unit level—rather than in a holistic, enterprise-wide fashion.At the same time, many shared services Organizations at the forefront of both The efficiencies in people, process andorganizations are under increasing pressure trends are often realizing the significant technology alone could build a stand-aloneto provide higher-order services that can value that can come from aligning the two business case for providing master data,deliver more strategic value for the business. concepts within the right sourcing and reporting and analytics capabilities withinIn fact, Accenture has seen a rising interest governance model to create an enterprise- the IBS organization. But even greaterin the further evolution of shared services wide master data, reporting and analytics value may come from this service, as itto the integrated business services (IBS) capability. Such a capability can support can provide much-needed insight that canmodel1, which can deliver higher-value the organization and each of its business directly improve both the effectiveness andservices on an enterprise-wide basis units in outmaneuvering and outperforming overall business outcomes of the company.in a consistent, high-quality and cost its competitors. Just as finance, IT, sales, In fact, Accenture has already seen clientscompetitive manner. marketing and human resources have often across industries achieve value through brought together the non-core activities the insights that have come from providing from around the enterprise, Accenture master data, reporting and analytics services sees considerable potential value ahead within the IBS organization (see Figure 1). for organizations that provide master data, reporting and analytics capabilities as a service within the IBS organization. 1 For more information on the integrated business services model, please visit www.accenture.com/IBS-PoV.2 | Accenture | Copyright © 2012 Accenture. All rights reserved.
  • 3. Integrated Business Services: The New Answer for Your Master Data, Reporting and Analytics NeedsFigure 1. Industry examples of value achieved through master data, reporting and analytics servicesprovided by IBS organizations.Company Scope ValueGlobal Consumer • Finance • Implemented single point of responsibility for master data accuracyProducts Company • Sales • Increased usage of synchronized standardized reports while decreasing • Marketing divergent ad hoc requests • Human Resources • Accelerated financial and operational data availability to earlier in the monthly • Operations close/reporting cycle • Improved pricing data accuracy by 95 percent in selected cases • Reduced the need for transactional staff while creating a home for analytic talentNational Retail • Finance • Provided metrics and insight down to the store levelChain • Operations • Created actionable intelligence resulting in growing revenues and improved • Human Resources operating income • Supply Chain • Reduced inventory and increased compliance • Improved staff retention • Increased customer satisfactionGlobal • Finance • Scalable organizationCommunications • Standardized reports with reduced report portfolio& Technology • Improved decision making through consistent business management (metrics/KPIs)Company and insights • Centrally driven technology strategy/requirements • Significant savings from offshoring back-office reporting • Headcount reduction by year three • Realized cost savings that aligned to the soft savings of time back to service customers • Appropriate cost/customer service balanceGlobal Energy • Finance • Standardized the process, tools and outputsCompany • Rationalized number of reports produced by 50 percent • Standardized enterprise-wide metrics • Decreased costs by reducing 11 instances of Hyperion to one3 | Accenture | Copyright © 2012 Accenture. All rights reserved.
  • 4. Integrated Business Services: The New Answer for Your Master Data, Reporting and Analytics NeedsIn this paper, we examine how establishing Challenge 1: Building function or from business unit to businessmaster data, reporting and analyticscapabilities within a single IBS organization consistency in data unit. Instead, IBS can establish one process with consistent and standardized outputcan address five of the most common structures and centralizing that takes into account the requirements ofchallenges faced by organizations that quality management each of the parties. Moreover, because IBScurrently have these capabilities spread is designed to have accountability, it canacross functions and business units. Even with a strong corporate governance provide considerable incentive to maintain structure, an enterprise can face a higher established standards and to promote anChallenge 1: Building consistency in risk of data quality issues when functions environment in which individuals involveddata structures and centralizing quality and business units develop their own master in the set-up and maintenance of mastermanagement data, reporting and analytics capabilities. data elements are educated in the proper Additionally, when different business units use of the data elements.Challenge 2: Meeting the evolving have control over how they use and reportanalytical needs of the business on information, they may present the data IBS can also help to not only promote (using unique formats or views, non-standard consistency in data structures, but alsoChallenge 3: Developing cross-functional, time periods, revised data definitions, to centralize quality management. Thedata-driven insight etc.) that reflects the business unit in the proliferation of ad hoc reports and/or most favorable manner. They may benefit significant rework by the functions/businessChallenge 4: Providing career paths for in the short term, but they then spend units can be eliminated. The data can allmaster data, reporting and analytics resources time “proving” their underlying data and be viewed in the same way. The richness analytics to corporate. At the same time, of common, shared reports with key measuresChallenge 5: Maximizing master data, corporate decision-makers often struggle from multiple functions can bring exponentiallyreporting and analytics technology with disparate presentations that may greater business value as it leads to improvedinvestments drive different conclusions. decision making. An additional possible bonus is that the data can often now be officially “watermarked” (through a semi- How IBS can help transparent image that sits behind the text of the report) and certified, since IBS is an Establishing master data, reporting and independent and objective authority. Key analytics as a service within the IBS management review meetings can now organization can mean that there is be run using only those reliable reports a single owner of the governance and and analysis that have authenticated data management of the data across the sources (as evidenced by the “watermark”). enterprise, which can pave the way Officially watermarked data can increase toward “one version of the truth.” Moving trust in the data and reduce wasted effort control of data to IBS can introduce a on data reconciliation. much-needed independent authority over data standards. IBS is designed to take responsibility for maintaining data consistency across the organization and for gaining cross-functional agreement before making any changes. The clear ownership can help guard against the proliferation of master data elements from function to4 | Accenture | Copyright © 2012 Accenture. All rights reserved.
  • 5. Integrated Business Services: The New Answer for Your Master Data, Reporting and Analytics NeedsFor example, a global life sciences How IBS can help Challenge 3: Developingcompany had two different ways ofdefining “days sales outstanding.” The IBS is, by nature, customer-focused. cross-functional, data-discrepancy in approach called into question By moving ownership of the master data, driven insightthe conclusions about customers, sales reporting and analytics capabilities to IBS,and financials, and eventually undermined the enterprise can tap into the structural When it comes to data-driven insights,confidence in the integrity of the data support needed to easily scale, modify and the whole truly can be greater than theitself. Management wasted time trying to improve the services to meet the changing sum of its parts. Although functions andreconcile differences and force conclusions needs of the business. The combination business units may realize initial successbased on inconsistent data sources, rather of governance, consistent data structures in developing their own master data,than making important business decisions across entities and a dedicated team whose reporting and analytics capabilities, truebased on higher-order multi-functional skills range from transactional data insight often comes when organizationsbusiness analytics that could have been management to higher-order analysis are able to quickly, easily and confidentlydelivered directly into their hands. can mean that IBS provides the timely link the data and the insights from multiple information and insight that leadership functions/business units (for example, teams desire to make decisions designed finance and sales). Additional insightsChallenge 2: Meeting the to keep them ahead of the competition and out of harm’s way. (and value) are often generated if the organization can adeptly layer in andevolving analytical needs manage third party data sources as well.of the business For example, one media and entertainment company wanted to better understandIn today’s fast-paced environment, consumer consumption habits across release How IBS can helpbusinesses can benefit from the ability windows (e.g., theatrical, DVD, on demand,to move quickly into new territories or etc.). The company hypothesized that if A common fundamental driver behindnew segments to stay ahead of their it could connect consumption habits and developing a shared master data, reportingcompetition. At other times, they may behaviors across windows, the company and analytics capability is to enable afind themselves dealing with an increasingly could develop a holistic and effective social single entity to have ownership of andvolatile marketplace. Time is often of the media strategy to better engage customers access to consistent data from acrossessence when making business decisions and influence consumption, thereby leading functions and business units. This entityin these situations, and if the data/reporting to increased sales and improved margins. can become a cornerstone of progressstructures are not in place, the enterprise The company quickly discovered that exploiting and give the organization the ability tomay miss opportunities or see substantial this opportunity would require addressing not only provide common, shared andimpact from risks that materialize into issues. incompatible data structures and business standardized reports but also, to derive goals across siloed business units (i.e., theatrical, television and home entertainment). IBS-owned master data, reporting and analytics would have accelerated its ability to capitalize on a strong idea and generate a more optimized value chain.5 | Accenture | Copyright © 2012 Accenture. All rights reserved.
  • 6. Integrated Business Services: The New Answer for Your Master Data, Reporting and Analytics Needsgenuine business insight and take action Challenge 4: Providing exposure to multiple areas of the business.on it. The consistent data can be used to New internal opportunities may arise togenerate reports focused on key functional career paths for master take a leadership role, either specific tomeasures, or combined with third-party data, reporting and master data, reporting and analytics; withininformation (such as macro-economic analytics resources the larger IBS hierarchy; or within anotherforecasts), which can multiply the value business unit or corporate.of all the information exponentially. In The skill sets within any proper mastershort, it can accelerate the ability for the data, reporting and analytics capability The benefit to the business can be substantialcore business to perform a full range of can run the gamut—from transactional as well. By building a single master data,reporting and analytics—from foundational, data management to basic reporting to, reporting and analytics team designed tostandard reporting to more advanced, at the very far end of the value spectrum, service the organization in its entirety,predictive business analytics. predicative analytic skills that may require the organization can have an opportunity a PhD. As with any organization, there to consider new sourcing strategies. ForFor example, a leading consumer products can be a delicate balance between hiring example, basic reporting functions of lowcompany recently used multi-function enough resources with the proper skill sets sensitivity and low complexity may beanalytics across finance, sales, marketing to meet business needs while maintaining appropriate to move to lower-cost locations,and supply chain to make the connection a sustainable payroll cost structure. The while more advanced capabilities might bethat an anticipated poor crop season in organization can benefit from avoiding sourced in a differentiated fashion.one sales region would drive down demand over/under utilization of resources, whilefor migrant workers and thus have a major meeting the demands of skilled resources— For one industry leading globalimpact on sales for particular products. people who desire a career, not just a job, communications and technologyBecause of this macro-economic predictive and expect adequate compensation. It can organization, Accenture identified thebusiness analytics capability, the company become difficult, expensive and, in some cases, potential for net cost savings in the rangewas able to anticipate the decreased sales, unrealistic for organizations to duplicate of 35-45 percent. These savings came fromadjust inventory, make corresponding this capability across multiple functions. the wage arbitrage, work and workforcemarketing decisions to boost sales in other optimization, and efficiency gains achievableregions and products, and reflect the revised through outsourcing of core reportingforecast in the latest management reports. How IBS can help services. One of the major constructs of IBS, As the need for higher-value analytics regardless of function, is the ability becomes clear, the services organization to provide relevant training and career and businesses served can benefit from progression possibilities through a variety working together to build the business case of roles—including management positions. for the right sourcing model (see Figures 2 For individuals who have historically worked and 3). exclusively within a specific function or business unit master data, reporting and analytics team, the typically more rigorous IBS talent management process can be a welcome change. They often have more performance management and personal development opportunities as they gain6 | Accenture | Copyright © 2012 Accenture. All rights reserved.
  • 7. Integrated Business Services: The New Answer for Your Master Data, Reporting and Analytics Needs Figure 2. Master data, reporting and analytics value chain and functional versus IBS responsibilities. Functional owned activities • Forecasting • Service level approval • Optimization (e.g., turn-around • Simulation time for standard • Experimental design • Performance vs. ad hoc, manual • Report and query • Root cause conclusion • Model development/ management vs. automated, etc.) • Data validation • Report requirements requirements and communication requirements • Customer engagement Decision making Predictive analyticsValue add Standard analytics Ad hoc reporting Standard reporting Data integrity Policy compliance Complexity • Data and report • Data strategy • Report design/build • Real-time queries • Categorization • Relationship • Target tracking governance • Data architecture • Report production • Iterative report • Root cause tracing identification • Compliance reporting • Data setup • Report maintenance development • Data mining • Visualization • Service level reporting • Data maintenance/ • Water-marking • Text analytics • Advanced statistical scrubbing • Basic statistical analysis • User access analysis • Model execution/ monitoring IBS (captive and outsourced) owned activities Figure 3. Potential sourcing model for master data, reporting and analytics services. Captive Activities Captive Outsourced Outsourced Activities • Target tracking Decision making • Relationship identification • Model execution/monitoring Predictive analytics • Visualization • Advanced statistical analysis • Categorization • Data mining/text analytics Standard analytics • Basic statistical analysis • Root cause tracing • Real-time queries Ad hoc reporting • Iterative report development • Report design/build Standard reporting • Report production/maintenance • Water-marking • Data setup • Data strategy • Data architecture Data integrity • Data maintenance/scrubbing • User access • Data and report governance • Compliance reporting • Service level reporting Policy compliance 7 | Accenture | Copyright © 2012 Accenture. All rights reserved.
  • 8. Integrated Business Services: The New Answer for Your Master Data, Reporting and Analytics NeedsChallenge 5: Maximizing Making the connection:master data, reporting Determining what movesand analytics technology to the master data,investments reporting and analyticsWhen different functions and service within the IBSorganizational entities make autonomous organizationdecisions to invest in their own masterdata, reporting and analytics capabilities, From a function-by-function perspective,the investments often do not achieve how does an enterprise determine whichmaximum return. The individual entities data types and reporting capabilities shouldoften develop their own methods for reside in the IBS organization? The tableanalyzing data and provide reports to their shown in Figure 4 provides functionalconstituents in their own format (which examples of the data types and reportingmay or may not resemble that of the capabilities that might be better organizedother organizational entities). Data and and delivered out of the IBS organization,reports from individual entities may require relevant to master data, reportingsignificant rework before consolidation, and analytics.and the quality and accuracy of the datamay be called into question. The enterprisecan lose precious decision-making timeduring iterations. Ultimately, what startsout as smart investments by individualorganizational entities can turn into acostly way for the enterprise to run itsbusiness as a whole.How IBS can helpBuilding high performance in analyticsand reporting generally involves investmentin both technology applications andinfrastructure. By bringing managementof these investments under the purviewof the IBS organization, the company asa whole can benefit from smarter, big-picture investments designed to promotea consistent architecture built to meetend-to-end business requirements. Theapproach is typically more cost-efficientand the resulting capabilities better.8 | Accenture | Copyright © 2012 Accenture. All rights reserved.
  • 9. Integrated Business Services: The New Answer for Your Master Data, Reporting and Analytics NeedsFigure 4. Examples of data types and reporting capabilities (by function) that couldmove to an IBS model.Finance • Budget/forecast • Actuals • Cost benchmarkingSales • Customers • Products • Pricing (compliance, change request and modeling/elasticity) • Volume • Revenue • Market share • MarginMarketing • Promotions spend • Customer segmentation • Marketing return on investment • Social mediaHuman Resources • Headcount • Open positions • Time to fill • Performance managementOperations • Suppliers • Procurement spend • Make/buy • Standards setting • Production cost variances • Environment (weather, demographics, geo-political, etc.)9 | Accenture | Copyright © 2012 Accenture. All rights reserved.
  • 10. Integrated Business Services: The New Answer for Your Master Data, Reporting and Analytics NeedsConclusionAs organizations continue to focus on developing data-driven business insight, master data, reporting and analyticscan be a prime target to be delivered as a service via the IBSorganization. By embedding this capability within the IBSorganization and offering it as a service, companies can putdata governance, quality and standards into the hands of anorganization that can continue to drive efficiencies, improveprocesses, innovate their services and ensure consistencyin data and analytics. It can provide a career path for masterdata, reporting and analytics resources, which can benefitboth the individual as well as the organization. More critically,it can push the organization toward the often desired butelusive “one version of the truth” across businesses andfunctions which, when coupled with third party data, canbecome the foundation for accelerating insights that canhelp today’s leaders answer their analytics questions in aneffort to outmaneuver and outperform their competitors.10 | Accenture | Copyright © 2012 Accenture. All rights reserved.
  • 11. Integrated Business Services: The New Answer for Your Master Data, Reporting and Analytics Needs11 | Accenture | Copyright © 2012 Accenture. All rights reserved.
  • 12. About the authors About Accenture Stay ConnectedAneel Delawalla is a senior manager in Accenture is a global management Join Usthe Accenture Finance and Enterprise consulting, technology services and FacebookPerformance practice based in Los Angeles. outsourcing company, with 257,000 http://www.facebook.com/He has more than 10 years of experience people serving clients in more than accenturemanagementconsultingin defining back office strategy, conducting 120 countries. Combining unparalleledcapability assessments, and architecting experience, comprehensive capabilities Follow Usintegrations and transformations, with a across all industries and business functions, Twitterdeep focus on the Finance function. and extensive research on the world’s http://twitter.com/accenture_fep most successful companies, AccentureDaniel (Dan) Baldor is a senior manager collaborates with clients to help them Watch Usin the Accenture Finance and Enterprise become high-performance businesses and YouTubePerformance practice based in Miami. governments. The company generated net http://www.youtube.com/accentureHe has more than 12 years of experience revenues of US$27.9 billion for the fiscalassessing, designing and implementing year ended August. 31, 2012. Its home page Connect With Usshared services operating models for clients is www.accenture.com. LinkedInin multiple industries. http://www.linkedin.com/company/ accentureKristin McMinn is a senior manager in About Accenturethe Accenture Finance and EnterprisePerformance practice based in Kansas City. Management Consulting,As the offering development lead for the Finance & EnterpriseAccenture Integrated Business Services Performanceoffering, she has devoted her career tohelping organizations transform their Accenture is a leading provider ofback office capabilities to be agile, management consulting services worldwide.efficient and effective. Drawing on the extensive experience of its 16,000 management consultants globally,The authors would like to thank Paul Accenture Management Consulting worksJeruchimowitz, Eric Noren and Dominic with companies and governments to achieveLacy for their contributions to this article. high performance by combining broad and deep industry knowledge with functionalDISCLAIMER: This document is intended capabilities to provide services in Strategy,for general informational purposes only Analytics, Customer Relationship Management,and does not take into account the reader’s Finance & Enterprise Performance, Operations,specific circumstances, and may not reflect Risk Management, Sustainability and Talentthe most current developments. Accenture & Organization. Accenture Finance &disclaims, to the fullest extent permitted Enterprise Performance consulting servicesby applicable law, any and all liability for help finance organizations maximize thethe accuracy and completeness of the value they create for their enterprises.information in this document and forany acts or omissions made based on such For more information, please visit us atinformation. Accenture does not provide www.accenture.com/fep.legal, regulatory, audit or tax advice.Readers are responsible for obtainingsuch advice from their own legal counselor other licensed professionals.Copyright © 2012 AccentureAll rights reserved.Accenture, its logo, andHigh Performance Deliveredare trademarks of Accenture.