Business Processes to Business Performance (BP to BP) by Sanjeev Varma


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Business Processes to Business Performance (BP to BP) by Sanjeev Varma

3rd National Shared Services Conclave 2013

Sanjeev Varma
CEO – Steria (India)

Published in: Business, Technology
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Business Processes to Business Performance (BP to BP) by Sanjeev Varma

  1. 1.  3rd National Shared Services Conclave 25 Oct 2013 Business Processes to Business Performance (BP to BP) 
  2. 2. Industry shifting gears from Business Processes to Business Performance Management   The industry has seen a steady movement from cost, quality, and productivity in early 2000 to specialisation, process reengineering and technology-enabled platforms in 2012  The industry now provides platform multi-tenancy, non-linear growth, and a business outcome-based revenue model instead of the earlier model of achieving operational SLAs  There is an increased depth and breadth of services with multifaceted offerings...   Such as data analysis and real-time processing and more end-to-end services like consulting, business transformation and optimisation Value-added solutions with process optimisation, & engineering and technology-enabled platforms like cloud computing, social media, mobility, etc.  Industry has matured, providing 360o services that have resulted in its increasing its sphere of influence among clients The shift will give the identity of being a full-service value provider rather than an industry that plays only in the lower-end of the services spectrum
  3. 3. The shift over the years…  Disruptive Innovation Productivity Improvement / Innovation Transferring basic data entry work to low cost locations such as India Even though work continued to come to low cost destinations with addition to new locations such as Philippines and Brazil , it would still not be count as disruptive innovation Disruptive Innovation Shared Services 1995- 2000 2005-12 2012 and beyond Emphasis on cost effectiveness and productivity     2000-05 Emphasis on greater depth and breath while embracing the “globalization” of delivery capacity Emphasis on values added end-to-end solutions and inclusive growth in Tier II and III cities Emphasis on platform, multi-tenancy, non-linear revenue growth and utilization of same resources across multiple clients  Real-time processing and voice  Multi faceted service offerings  Era of 3rd party offshoring Cost Quality Productivity Era of GICs  Specialization  Process reengineering  Technology enabled platforms We are at the threshold of another wave of disruptive innovation which posses the ability to create new markets, brands and value propositions 3
  4. 4. Indian contact centres are evolving from cost to profit centres – Effecting revenue growth for clients  Category Details Cross-selling and upselling  Cross-sell - Customer comes to buy something and a completely different product (not similar) is sold  Upsell - Customer comes to buy something and is sold a similar but more expensive product  Platforms assist an agent reading a scripted offer for a product to the customers at the end of sales and service calls  Interested customers are transferred to the advertiser's call centre and the firm is paid for the customer referral  It monetises the contact centre and increases a firms' revenue, while engaging the customers with product offers that they want and appreciate Customer insight  Analytics and data mining of customer data  Platforms help organisations gain actionable customer insights  They maintain a clear view of customer experiences, the service quality delivered and handling of customer concerns  Firms can improve customer experience, reduce costs and increase revenues across products, processes, customer channels and agent performance Prevent revenue leakage  A customer faces revenue leakage as a result of inefficient process, and inability to identify the problem area  Platforms provide an audit of airline's fares, sales and usage data against pre-defined rules and logic  Identifies discrepancies throughout the revenue lifecycle, monitors agent behaviour from booking through ticketing, uplift and usage, exchange and refunds preventing revenue leakage  Virtual contact centre and shared resources  Platforms increase capacity, quality and performance without additional capital expense  Include scalable contact center platform, on-demand CRM and technology and management tools Technology enhancement 4 Case Examples
  5. 5. Customer Interaction Centres (CIS) are also evolving to business transformation/performance centres 5 
  6. 6. Pricing models shift from – traditional effort-based to outcome-based, emphasis on driving non-linearity Effort Based Pricing   Transaction Based Pricing  Outcome Based Pricing Traditional effort-based pricing models are no longer preferred as buyers and service providers move towards an output-based - directly linked to the outcome. Also, from a staff augmentation mode, there is steady movement to a shared services model where the 6 service provider provides a defined outcome, typically on a fixed price basis
  7. 7.  Steria Shared Services - Success Stories 
  8. 8. NHS Shared Business Services - Success Story   NHS SBS, 50:50 JV between Steria and Department of Health, UK offers a wide range of innovative and reliable back office services to more than 40% of the NHS  Based on sharing services with NHS trusts, this JV has established an innovative model for the delivery of public sector business processes and has targeted areas such as Finance and Accounting, Payroll, HR, Family Health Services and NHS Procurement  Key Highlights of the project    Each Trust typically makes cost savings of 20% to 40% NHS SBS named UK Central Government Supplier of the Year in March 2011 Processing 4 million invoices p.a. | £35 billion payments p.a. | 2.5 million payroll transactions p.a.  NHS SBS has made huge progress since it was created and has changed the perception of shared services and outsourcing in the public sector.  The business is regularly benchmarked against leading companies in the private sector and has been acknowledged as World Class for the second year running by benchmarking specialists, the Hackett group Enabling savings of £250 million…
  9. 9. Cleveland Police & Steria shared services partnership   Steria and Cleveland Police Authority (CPA) in partnership for delivery of the Force’s control room, community justice and back-office functions through a shared service model  Key Services to CPA     Preparation of criminal case files Crime management Risk and operational planning Shared services including finance, HR, payroll, commissioning and fleet management  Key Highlights    Benefiting 2,200 employees and local community 40 transformation projects 500 police staff transferred to Steria Enabling £70 million in cashable savings… 9 …over 10 years
  10. 10. Steria partnership with Welwyn Hatfield Borough Council  Services to Welwyn Hafield Borough Council      ICT Council tax Benefits Customer contact centre Reception and switchboard services   Key Highlights     Improving efficiencies and provide better services for Welwyn Hatfield's 100,000 citizens and ensure a projected saving per annum 97.8% of Council Tax - an increase of 0.20% 11% improvement in the average time process new benefits claims 29% improvement in the average time process change of circumstances 91.1% of switchboard calls answered within 14 seconds, higher than the target of 80%