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Dr Franz Deitering - Shared Services Next Generation

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Presentation from the 14th Annual North American Shared Services & Outsourcing Week, 2010 …

Presentation from the 14th Annual North American Shared Services & Outsourcing Week, 2010

To find out more about the 2011 event go to:
www.sharedservicesweek.com

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  • 1. Shared Services - The next Generation - Dr. Franz Deitering, SAP Global Head of Business Development Shared Services Solutions
  • 2. Agenda Five Steps to Success 1. What is Shared Services? What is it not? 2. Why Shared Services? - Drivers and Goals. 3. Global Trends and Trendsetters in Shared Services 4. How do I get to the Next Generation in Shared Services? 5. What are the next steps? © SAP 2009
  • 3. Agenda Five Steps to Success 1. What is Shared Services? What is it not? 2. Why Shared Services? - Drivers and Goals. 3. Global Trends and Trendsetters in Shared Services 4. How do I get to the Next Generation in Shared Services? 5. What are the next steps? © SAP 2009
  • 4. Shared Services – the Basic Ideas “Shared Services is a service delivery model that enables organizations to apply economic principles of demand and supply to internal business processes.” Shared Services enables an organization to: Consolidate efforts for delivering the same services to different groups within an organization – economies of scale & competence Be more commercial orientated; measure SSC-customer satisfaction and competitive offering based on service products Utilize multiple delivery channels for services depending on the nature of the service, the recipient and the circumstances Drive Efficient and Effective processes in order to reach Operational Excellence © SAP 2009
  • 5. Selection of Shared Service Center Customers © SAP 2009 © SAP 2008 / Page 5
  • 6. Shared Services look at technology to continue their success story in turbulent times Best Practices Baseline performance of processes relevant for centralization Harmonize and standardize business processes Automate business processes via technology investments Enable employees and business partners via self services and single-point- of-contact Shared Services enable companies to Manage services Consolidate efforts for delivering the same services to different effectively through a groups within an organization globally consistent service Lower administrative cost by leveraging economies of scale and operating model Adapt more flexible to growth and acquisitions Implement governance to Improve the service to the business internal client-provider © SAP 2009 relationship
  • 7. What is better? Internal Shared Services or external BPO Providers? Maximum level of value achievable(1) Decentral services Shared BPO Key value objectives Sources of value Lower cost Economies of scale Better risk Process optimization management Labor arbitrage Better process quality Lighten asset base; ROA Significant High Medium Low Negligible (1) Based on typical client/provider. Note that in specific cases, the client might have comparatively higher potential to generate value than the provider © SAP 2009
  • 8. Leading BPO Providers deliver Services “Powered by SAP” Key aspects BPO Providers Human Resources Outsourcing Human Resources Outsourcing Ability to implement and operate business processes based on the SAP NetWeaver platform and the SAP Business Suite Certification standards (every two years) ensures high levels of technical expertise of SAP solutions and proven Procurement Outsourcing & Sourcing Procurement Outsourcing & Sourcing support capabilities Strong BPO-specific collaboration between provider and SAP throughout Other Business Services Other Business Services lifecycle of a BPO project B2B Integration Real Estate/EMEA Newspaper Admin © SAP 2009
  • 9. Agenda Five Steps to Success 1. What is Shared Services? What is it not? 2. Why Shared Services? - Drivers and Goals. 3. Global Trends and Trendsetters in Shared Services 4. How do I get to the Next Generation in Shared Services? 5. What are the next steps? © SAP 2009
  • 10. Requirements of C-Level Executives Improve Enable regulatory Flexibility for growth Cost Income Ratio compliance and acquisitions Decrease G&A Costs: Increased data accuracy and Focus on core Vendor costs reliability competences Labor costs Improve Governance Model Reduce share of System costs Adopt more quickly to administrative work Facility costs changing regulatory Rapid post merger CEO/CFO/COO requirements integration Better Risk Management Enable global Improve Customer simplification Shared Services Value drivers satisfaction Pool process know-how Functional Improve process quality On-shore Drive global Near-shore Geographical Perform benchmarking standardization and Off-shore Organizational and continuous cross-border delivery Scope improvement Consistent messaging Fulfillment of SLA for policies and inquiries Depth of Perform customer Labor Mix Increase operational integration surveys agility Processes Easy-to-use self and IT Make (Shared, services Harmonization Non-Shared) Standardization Buy (Business Automation Process Outsourcing) Self Services © SAP 2009
  • 11. Benefits from Shared Services in Financials Business benefits Some benchmarks Lower process costs 100% shared Cost of finance [% of revenue] Not shared Increased transparency of business Accounts Customer Collections Accounts processes payable billing receivable 0.07 0.04 0.04 0.2 Economies of scale and scope 0.04 Improved quality 0.01 0.01 Strategic flexibility for mergers and 0.01 acquisitions Source: ASUG Benchmarks 2006 “ We’ve managed to reduce cost of some finance operations by as much as 30%,” says Mick Crowder, British Waterways’ head of shared services.” © SAP 2009
  • 12. The 2010 Global Business Services/Shared Services Performance Study included 198 organizations across various industries and geographies – the following is a partial list Page 12 2010 Global Business Services/Shared Services Performance Study @2010 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
  • 13. Savings 2009 Achieved Planned 5% 3% 10% 11% 9% 24% 16% 18% 26% 44% 33% 70% of SSOs plan to save 20% or more costs 70% of SSOs plan to save 20% or more costs 60% of SSOs have saved 20% or more costs 60% of SSOs have saved 20% or more costs >60% 41 to 60% 21 to 40% 11 to 20% 1 to 10% No Change Page 13 2010 Global Business Services/Shared Services Performance Study @2010 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
  • 14. Benchmark Data Proofs Significant Cost Savings in Shared Services Powered by SAP Our Customers have Achieved Significant Benefits using Our Solutions Finance Human Resources Procurement Tangible Benefits* % impact Tangible Benefits* % impact Tangible Benefits* % impact Operating cost Operating Cost 25 – 40% Operating Cost Accounts Payable 20-50% Payroll 10-30% Reduced Maverick Indirect 3-5% Accounts Receivable 20-50% HR Cost per Employee 20-30% Spend Improved recruitment costs 10-15% Staff efficiency 5-10% Budgeting & forecasting 50-80% Cash management 50-70% Improved process cost by Collections management 50-65% Employee Self Service 14% Credit management 25-35% Real-Estate Customer billing 40-70% Fixed asset management 20-35% General Ledger and 45-75% Overall Cost Saving Potential Tangible Benefits* % impact Finance Closing Internal Auditing 50-70% Operating cost Saving to Regulatory and compliance 40-60% Function* Increase office space 20-30% peers Risk management efficiency Tax accounting and 40-60% Finance 49-61% reporting 5-10% Human Resources 16-49% Treasury Reduced DSO 35-55% Procurement 30-49% IT - Working Capital Cost 5-25% Increased DPO IT 8-39% - Working Capital Cost 5-25% Tangible Benefits* % impact Operating Cost Reduced Integration cost 15-20% Hardware & Operations 20-50% Software Maintenance and 20-70% Source ASUG benchmark implementation © SAP 2009
  • 15. Agenda Five Steps to Success 1. What is Shared Services? What is it not? 2. Why Shared Services? - Drivers and Goals. 3. Global Trends and Trendsetters in Shared Services 4. How do I get to the Next Generation in Shared Services? 5. What are the next steps? © SAP 2009
  • 16. The World is Getting Flatter © SAP 2009 © SAP 2008 / Page 16
  • 17. Companies target mainly optimisation through automation Factors that have generated the most significant reduction in Level of process automation in SSO labour and outsourcing costs 38% 30% 19% 14% 0 - 25% 26 - 50% 51 - 75% 76 - 100% Key initiatives underway in SSO Future outlook of SSO (five years from now) Source: SSON & The Hackett Group, 2009 SSO survey in G&A Page 17 State of Industry Play in 2009: Analysing Shared Services and BPO Trends in a Globalised and Turbulent World © 2009 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
  • 18. SAP is the most selected ERP vendor 62% 63% 30% 28% 26% 28% 18% 11% 7% 4% 5% 4% 3% 2% SAP Oracle PeopleSoft JD Edwards Lawson Baan Others 2009 2008 Page 18 2010 Global Business Services/Shared Services Performance Study @2010 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
  • 19. IT is a major driver of value generation Typical cost savings achieved through SSC/BPO Drivers - 20% Governance Labor and Provider Margin related Productivity Scale, Automation gains Skill, Best-in-class -- 30% 30% Processes ~ 80% Labor arbitrage SW maintenance & implementation Reduction of ~ 7% -20 to -70% -20 to -70% customization IT Software Reduced ~ 3% complexity IT ~ 0% ~ 0% Hardware & Operations Consolidation of ~ 10% -20 to -50% -20 to -50% infrastructure (scale) Cost of pre-existing Total cost of outsourced processes processes* * including cost of implementation project and transition, spread over deal duration © SAP 2009
  • 20. Big opportunity for Shared Services Multifunctional Shared Services Organizations Governance; Risk Mgmt; Compliance; Performance Mgmt ; SLA cockpit F&A HR IT Procure- Facility ment Accounts Org. Change Incident Mgmt. Fleet Mgmt Office Mgmt Payable HR Admin Infrastructure Purchase Property Mgmt Accounts Time Mgt Mgmt Logistics Restaurant & Receivable Payroll Application mail services Travel& Mgmt Supply Mgmt Pensions Relocation Expense Event Mgmt Expatriate Infrastructure Vendor Sourcing Mgmt and technical Requests facility Mgmt General Ledger Recruitment © SAP 2009
  • 21. Nearly half of organizations now have multi-functional SSOs 76% 72% 65% 58% 55% 51% 52% 49% 48% 45% 42% 35% 28% 24% 2003 2004 2005 2006 2007 2008 2009 Within individual functions Across several functions Page 21 2010 Global Business Services/Shared Services Performance Study @2010 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
  • 22. Agenda Five Steps to Success 1. What is Shared Services? What is it not? 2. Why Shared Services? - Drivers and Goals. 3. Global Trends and Trendsetters in Shared Services 4. How do I get to the Next Generation in Shared Services? 5. What are the next steps? © SAP 2009
  • 23. Shared Service Automation Value creation Multifunctional SSO Business Process One Shared Service Platform Automation Lift & Shift Off-Shoring Maturity Shared Services in the Shared Services in the past future Cost reduction frequently Elimination of manual tasks achieved through labor arbitrage through process automation and resource pooling SAP Shared Service Framework SSC’s perform services by Standardization of transactional working on multiple already processes existing systems Governance of client relationship Process automation not in SSC’s realm Focus on cost reduction (Lift & Focus on automation & Shift approach) productivity to reduce cost © SAP 2009
  • 24. Organizational and Communication Structure The SAP Shared Service Framework bundles, structures and routes incoming requests, which leads to efficient case management, process transparency and better service quality based on a product catalogue with predefined service level agreemets Tier 0 Business SSF Portal Kiosk Mobile Self Services Duet Alloy COE/Business Tier 3 Suite Partner Specialists Tier 2 Ticketing, Routing Generalists Tier 1 FAQ Product Catalogue, SLA Telephone BusCom Mgmt. Communication E-mail Adobe Scan Fax channels © SAP 2009 Requests
  • 25. Shared Services Delivery Platform 3 Governance and Operations Cockpit 2 Process Aggregation 1 Interaction and Service Mangement Automation Engines Automation engines Intranet portal Interaction center Back end 1 Financial shared services HCM Business shared services events 8 Procurement shared services Back end N Corporate services © SAP 2009 (2) COE: center of excellence
  • 26. Solutions for Shared Services SAP Shared Service Framework (SSF) The SAP Shared Service Framework focuses on : 1. Communication and interaction between Service Center, clients, suppliers and employees Self services rendered via one self service portal Predefined self-service scenarios In- & outbound contact center scenarios supporting response on first contact 2. Aggregation of process execution at the Shared Services Operation Shared processes can be executed on and for multiple backend systems Aggregate view of applicable data across corporate landscape Shared Services 3. Shared Service Center analytics and Process Management governance support Measurability of delivery performance Shared Services Framework Operations dashboard Product Catalogue; Multifunctional back-end capability; IT-Architecture Portal Solutions; additional Self Services; Processes and Forms; … 4. One coherent infrastructure for SLA Cockpit; track performance and enable compliant operations multifunctional Shared services Real- Procure- F&A HR IT Estate / ment Facility Enablers Enablers Enablers © SAP 2009
  • 27. SAP Shared Service Framework (SSF) The SAP Shared Service Framework is the technical and business platform for order based service management powering multifunctional Shared Services Organisations 1. Communication and interaction between Service Center, clients, suppliers and employees Relevant applications are augmented with launch-points facilitating in- & outbound contact center scenarios for most- frequently rendered shared processes. Aim: response on first contact, efficient follow-up via the Shared Services team. Central inbox where agents access their workload optimized for Shared Service Process Management Context specific search capabilities and context information about caller Pre-defined service scenarios leveraging Biller Direct and the Service Center 2. Aggregation of process execution at the Shared Services Operation Relevant applications are enabled to connect to several backend systems (FSCM Collections, Dispute, Credit Mgmt., Biller Direct, Inhouse-cash) Support for heterogenous system landscapes Aggregate view of applicable data across corporate landscape 3. Governance and Operations Cockpit Measure and manage Service Level Agreements. Controlling and managing the SSO like a business. 4. One coherent infrastructure for multifunctional Shared services Contact center technology spans HR and Finance and sets foundation for further functional streams to be included 5. Master Data handling in multiple backend landscapes Provisions for data handling in non-harmonized master data environments. Harmonized master data are desirable 6. Customer feedback, outbound campaigns Product related feedback, target group oriented campaigns 7. Product Catalog SLA based service products can be categorized in a product catalogue and can be priced and charged © SAP 2009
  • 28. Enablers for Shared Service Delivery SAP Shared Service Framework Provides Service Experts with the tools required to respond fast and provide quality responses to questions from customers, suppliers and internal users • Customer History • Multi-channel support • Computer Telephony and Dialer integration • Transaction launch pad • Agent’s inbox • Process Management Framework • Routing • Email Response Mgmt • Knowledge Tools • Customer Feedback • Campaigns • Products, Sales, Billing © SAP 2009
  • 29. SAP Solutions relevant for Shared Services Shared services Financial HCM Procurement Corporate services process mgmt. shared services shared services shared services Shared Service Framework Accounting interaction center Employee interaction Procurement interaction Travel management Process flow analytics General ledger center center Real estate management Service level mgmt. cockpit Accounts payable Payroll and legal Requisitioning Enterprise asset mgmt., Invoice management reporting Purchase request processing spec. IT help desk Invoice mgmt. OCR option Supplier enabling Time and attendance Purchase order processing Environment, health, and Outbound doc. handling (biller direct pay-side) HCM processes and forms Trading contract management safety compliance Interactive Forms Accounts receivable Benefits management management Duet (information worker) Receiving Credit management Employee administration Global trade services NetWeaver Master Data Financial settlement Collections management Recruiting Management. Manage catalog content Dispute management Enterprise learning NetWeaver Exchange Managing compliance Customer enabling Infrastructure Employee Self-Service Supplier collaboration (biller direct sell-side) Bus. comm. mgmt. and Manager Self-Service Intercompany reconciliation SSC dashboard analytics (CTI and WICOM) Kiosk Systems Intercompany processing Document mgmt. SSC dashboard analytics In-house cash Productivity Pack by RWD Bank-Communication Mgt Business Workflow Inventory accounting NW Identity Management Fixed asset accounting Resource mgmt. Tax accounting Treasury & Risk Mgt Financial Clocing cockpit Financial statements Tax management SSC dashboard analytics Supplier connectivity SAP product available Partner product available Sxx, Vxx, Bxx SAP product and service Pxx Partner product SAP product available with future releases Partner product available with future releases Future focus Collaborative business map available For more information see: http://www.sap.com © SAP 2009
  • 30. SSF generates value by integrating communication and by optimizing execution Vendor: When will my invoices get paid? Agent Vendor asks Agent Vendor Vendor receives for invoice informs ends call calls call settlement vendor Communication Process Steps in Shared Service Framework Autom. Create SSC works SSC solves Service Requests on service issue, delivers in SSC worklist requests service Execute Exceptions SSC updates Restart AP Process - Payment relevant fin. data financial task Payment Run run /documents (Payment run) Financial Process Steps in FI Backend Accountant : Bank Data are missing in vendor master data!
  • 31. Account Identification New search attributes Company Code and Back- End Client (for basic multi back-end enablement) Confirmed partner list: allows to confirm multiple partners and to adjust their partner function © SAP 2008 / Page 31
  • 32. Requesting Service out of FI transactions Example: Payment Run Button „Service Request“ to display automatically created service requests and to request service manually
  • 33. Financial Correspondences in Shared Service Framework
  • 34. Customer & Vendor Fact Sheets
  • 35. Self Services portal Financial Self Service Center Service Map Directory Index Most Frequently Used Master Data Service Requests Posting Requests Financial Document Posting Asset – create/change Adjustment Posting within CO Internal Order – create/change G/L Account – create/change Financial Document Posting Project – create/change Cost Element – create/change Budget/Change Transfer Cost Center – create/change Customer Credit Posting Request Payment Status Profit Center – create/change Cost Center – create/change Internal Order – create/change Budget/Change Transfer Project– create/change WBS Element – create/change Customer Master Data – create/change Vendor Master Data – create/change Related Links Link 1 Link 2 Information Requests My Change Requests Customer Information My Change Requests Link 3 Vendor Information Link 4 Payment Status Link 5 Credit Limit Information Link 6 Personnel File Link 7 Dispute Case Monitoring
  • 36. Self Services portal Financial Self Service Center Service Map Directory Index Most Frequently Used Find: Go Financial Document Posting Internal Order – create/change All | A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Project – create/change Department responsible requests an asset retirement by Request Payment Status Asset Retirement scrapping Cost Center – create/change Budget responsible managers can request to transfer Budget/Change Transfer Budget/Change Transfer budget between internal orders in his area of responsibility Local finance department can request a new Cost Element – create/change cost element or changes in existing ones Related Links Update of cost centre is only allowed for cost centre Link 1 Cost Center – create/change responsible person Link 2 Budget responsible managers can request to transfer Link 3 Change /Budget Transfer budget between internal orders in his area of responsibility Link 4 Explanation Text … Link 5 Sales rep. /account manager requests an update of the Link 6 Credit Limit Information current credit Link 7 Sales responsible can request credit posting for their Customer Credit Posting customers Customer Master Data – Sales representative from local department acquire a new create/change customer or change general data of his customer Dispute Case Monitoring Sales/shipping department checks existing disputes GL Account – create/change Explanation Text …
  • 37. Self Services portal Request Cost Center Change
  • 38. Self Services portal Request Cost Center Change
  • 39. Self Services portal SAP Biller Direct Buy side News BS2010: Configurable Status Display of Vendor Invoices (Parked, Blocked for payment,..) faciliates integration with SAP Invoice Management by Open Text Creation of Service Request facilitates communication with Shared Services Center
  • 40. Self Services portal: Collaboration between Supplier and Shared-Services Center (1/2) 1. Vender sends inquiry to buyer e.g. inquiry 1. Vender sends inquiry to buyer e.g. inquiry for parked invoice. for parked invoice. Supplier 2. Shared-Services Center agent process 2. Shared-Services Center agent process vendors’ inquiries with CRM Interaction vendors’ inquiries with CRM Interaction Center. Center. SSC Agent
  • 41. Self Services portal: Collaboration between Supplier and Shared-Services Center (2/2) 3. Shared-Services Center agent replies the 3. Shared-Services Center agent replies the solution to supplier. solution to supplier. SSC Agent 4. Supplier get the feedback and status via 4. Supplier get the feedback and status via Biller Direct. Biller Direct. Supplier
  • 42. FSCM integration to SSF © SAP 2008 / Page 42
  • 43. Travel Management Integration to SSF
  • 44. Access to the relevant backend data has been the missing link in SLM projects Service Level Management Application e.g. Digital Fuel Service Flow KPI Calculation, Visualization Business logic and process steps Extractors Backend LoB1 Backend LoB2 Backend LoB3
  • 45. Finance KPI enablement Subject to this specification is the data extraction interface for the base-date required to calculate the KPI. The KPI calculation and dashboard tool itself is not part of the delivery specified here. Finance KPI‘s for which SAP plans to enable the base-data extraction (overview) Number of Asset Master Records Total number of GA transactions Number of scrapped assets Days to close Number of sold assets Days after month-end close that it takes to report Number of Asset Transfer’s (Intra- and Intercompany) distribution and other key accounting reports Number of asset adjustment requests Process Cost per Journal Entry Number of asset problems reported Average duration per posting request Posting time during month end closing Percent accounts payable errors Percent billing errors Suppliers submit invoices electronically Percent electronic billing Percent of electronic supplier/vendor invoices Process Cost per Transaction Days payables outstanding Customer Invoices per FTE Process Cost per Invoice Labor Cost as a percent of revenue Invoices per FTE Process Cost as a percent of revenue Process Cost as a percent of revenue FTE Count per Billion of Revenue Percentage of invoices supported by Purchase Order - Customer Bills per Customer Remittance By volume Customer Bills per Customer Percentage of invoices supported by Purchase Order - Collections Contacts per FTE By volume Collection contacts per customer First pass invoice yield Intercompany on time payments
  • 46. Nicht zugeordnete Belege Vorschau 17 2/2 1/2 1/2 Beleg
  • 47. Nicht zugeordnete Belege Vorschau Optional, offen: rechte Maustaste & Spesenart 2/2 2/2 1/2 Beleg Beleg
  • 48. SAP Invoice Management by Open Text Version 5.2 enhancements for Shared Services Framework Status info via E-invocing Biller Direct support EBPP SAP Invoice Invoice Payment Recognition Processing EDI FAX SAP Document Scan e.g. SAP Automated reconciliation and posting Pay Archiving - Enterprise Paper Scan OCR Option for Non-SAP Email SAP Invoice Management SAP Invoice Management ERP (FI/AP) Document Archiving & Viewing Multi-Backend Support e.g. SAP Archiving by Open Text © SAP 2008 / Page 48
  • 49. HCM Service Delivery with Self-Services from SAP Empower your Workforce to Ensure Data and Process Transparency © SAP 2009
  • 50. HCM Service Delivery with Self-Services from SAP Process and Forms: Automation Across Multiple Roles Services initiated by any user: Choose the service manager, employee, and decentralized HR Choose the employee Choose the process Enter the data © SAP 2009
  • 51. Service Level Management motivation: If you can’t Measure you can’t Manage! Service What business and IT services are available? Catalog What is the price and quality for each service? Who is using what service? Manage Service Offerings and Usage Service How can I prevent and avoid problems? Performance How do I manage business SLA’s & KPI’s? How can I baseline and benchmark? Drive Service Quality Service How do I allocate costs to business units based Cost on the relevant approach to usage? Where are services costs compared to budget? by service? by customer? How do I validate my service invoice? Track, Control and Allocate Costs © SAP 2009
  • 52. Governance Framework Service Level Management Provides Shared Services operation managers with tools and insights to manage delivery along Service Level Agreements and defined KPI‘s. Helps minimize delivery cost while maximizing client satisfaction Dashboard with actual performance vs. Service Level Agreement Base-data drawn from the SAP transaction system Drill-down to organization, processor and item(s) causing the delivery performance degradation xCelcius vizualization of Business Intelligence report Adobe and xCelcius vizualization of BI-report Prediction of Service Level adherence and impact on financial topline (penalties, kickbacks) Near real-time alerting of pending service level adherence issues Effortless online Service level reports to clients Standard SAP BI Service Transactions overview report ServiceFlow is a certified solution by SAP‘s partner Digital Fuel. © SAP 2009
  • 53. Platform considerations for Shared Services Organizations and Business Process Automation Shared service center Internal clients served by the SSC Self-service Automated portal service Automation engines SA P Old SAP ER P Defined segregation of tasks Service delivery platform owned by the SSC Non-SAP Automation engines decided or implemented by the SSC Communication mechanisms with internal and external process constituents Interfaces to operate across heterogeneous systems SAP enables shared services to offer valuable services even in heterogeneous system landscapes © SAP 2009
  • 54. Agenda Five Steps to Success 1. What is Shared Services? What is it not? 2. Why Shared Services? - Drivers and Goals. 3. Global Trends and Trendsetters in Shared Services 4. How do I get to the Next Generation in Shared Services? 5. What are the next steps? © SAP 2009
  • 55. What are the next steps? “Vision without execution is hallucination.” Thomas Edison © SAP 2009
  • 56. SAP Consulting supports your company in all phases of the Shared Services Project Discovery Evaluation Implementation Operations Create Vision Create Business Case Create the design Realize and migrate Improve continuously Analyse Potential Evaluate Feasibility, services Benefits, Costs and Risks Confirm that Confirm that it is viable Develop the solution Establish pilot Stabilize, Optimize and Shared Services to implement shared design Evolve Shared Services merit further services Migrate Services Operations Board presentation investigation Develop change plan Develop Identify Baseline Organization Design Prepare target Transition phase strategic Define Operating Governance Model environment ends business Model Solution Design Plan and implement Monitor service rationale Define Service Service Management migration quality Position Delivery Model Framework Hand over to Stabilize target Shared Select Location Pricing operations environment Services as a Review IT landscape Communication Plan Implement key element of Define Scope and continuous the trans- Process Cuts improvements formation Create Roadmap Evolve Shared strategy Service organization Define High Level Scope 1 month 3 months 12 months continuously © SAP 2009
  • 57. Four action areas are common for Shared Service projects to reach the full benefit Organization People HR Operating Model Inquiries 100% Employee Interaction Center Change Management Orders 50% Service Delivery Model Phone 35% 10% 5% Communication Employee Portal E-mail SSC organizational Fax Self Services Generalist 1st Level Specialist 2nd Level Expert 3rd Level Knowledge creation and transfer Core ERP structure Adobe Inter- active Forms e.g. FI-AR, HCM Business Simulation und Training Mail Location Scanning Knowledge Database Digital Correspondence Personnel File Tool Roles and Skill profiles Service Level Personnel adjustment Agreements Governance model Legal form Processes IT Cost Baseline IT Architecture, Process scope and interfaces IT application landscape Harmonization and standardization Employee/Accounting Interaction Center Process documentation Scanning, Workflow Process targets and parameter Knowledge base Pricing Self Services Benchmarks Automation SAP CoE SAP Consulting's great experience and know-how in all of these areas makes it the ideal partner for Shared Service projects © SAP 2009
  • 58. Selection of Shared Service Center Customers © SAP 2009 © SAP 2008 / Page 58
  • 59. The Bottom Line State-of-the art shared services automation platform Architecture enables leveraging economies-of-scale Automation improves efficiency in administrative processes Shared Service Framework and self-services improve service experience The ability to control and anticipate Increased control of processes across the entire company Supports governance of service provider-consumer relationship Allows for better decision making based on comprehensive insight Automation powers shared services transformation Automates labor-intensive admin processes Frees line operations from administration work Helps F&A, HR, and others functions become a strategic partner © SAP 2009
  • 60. BEST- THE BEST-RUN SERVICES RUN SAP © SAP 2009
  • 61. Thank you! franz.deitering@sap.com © SAP 2009
  • 62. The 2009/10 Global Business Services Performance Study Hypotheses to test…. Back Office Service Delivery models…… Are becoming increasingly differentiated – increasing importance of Centres of Excellence / Expertise, Helpdesks to complement ‘traditional’ transaction processing Have increasing levels of components delivered by third parties. The appetite for outsourcing elements of service delivery continues to grow despite the current environment – outsourcers will move work to where it can be most effectively and acceptably delivered Are substituting off-shoring of transactional, paper-based processes with automation. Offshoring paper based transactional processes in order to gain wage arbitrage benefits is increasingly a worse option than eliminating paper through automation Are moving from multi-function to leveraged services. Service delivery is moving beyond services silos to Global Business Services. Functional solutions are becoming more integrated driven by enhanced benefits Are moving beyond the transaction. Where once only World Class shared services had moved into non transaction work, a much broader population are moving beyond the transaction Are becoming more commercial. Increasing numbers of back office models are becoming more ‘arms length’ through charging for their services and moving away from cost centre models Are becoming more global. Organisations are moving beyond regional back office solutions to global solutions – with Global Business Services as the enabler Page 62 2010 Global Business Services/Shared Services Performance Study @2010 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
  • 63. Executive summary – shared services today is not the same as shared services 10 or even 5 years ago Shared Services . . . Are becoming more strategic. ‘Link to strategy’ is the fastest growing driver for shared services Are no longer just about cost. Effective service delivery is now as important as improving efficiency. Form part of an overall Service Delivery Model… – increasing importance of Centers of Excellence / Expertise to complement ‘traditional’ transaction processing model – Over three quarters of WC shared services have COE versus just over half of peer group …elements of which are provided by others. The appetite for outsourcing elements of service delivery continues to grow Are driven by automation. Transactional shared services are seeing a step change in productivity through automation reducing exceptions and creating the capacity to take on non transactional work. The backbone of this is movement towards a single ERP provider. Are increasingly run across functions. Functional solutions are becoming more integrated. Are moving beyond the transaction. Where once only world-class shared services had moved into non transaction work, a much broader population are moving beyond the transaction Page 63 2010 Global Business Services/Shared Services Performance Study @2010 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
  • 64. The G&A Service Delivery Model is at the heart of G&A strategy G&A Service Delivery Strategy Service Service Delivery Model Service Delivery Delivery Transformation Strategic Plan Service Process placement sourcing model Validate Organizational Organizational Capabilities G&A Capabilities governance Functional model SDM process Efficiency & Components design Build Execution Effectiveness Capabilities Goals Organization model Enabling Design & technology Develop Operating Skills and talent architecture Implementation Principles requirements Roadmap A strategy for what work is executed where, and by whom, and the benefit Page 64 2010 Global Business Services/Shared Services Performance Study @2010 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
  • 65. Achieving an Optimal Service Delivery Model (SDM) The 7 components of the SDM Shared services (SSCs) Clear understanding of How and where In-house versus outsource Centers of excellence which activities and processes and sub- Onshore versus offshore Work done at BU level processes are to take 1 processes are Physical versus virtual place where 2 sourced Service Placement Process Sourcing Decision-making Defined roles and 7 Model effectiveness responsibilities and Processes, exception BU-level standards Governance handling rules, how decisions are to 3 Enterprise-wide Model made related to mappings, etc. standards service delivery SDM Functional associated with Local standards Process Components Design functional roles and 6 responsibilities Top management Organizational Organization participation entities, structure Model 4 Steering committee and reporting lines 5 Enabling effectiveness for service delivery Skills and Technology Talent Architecture Requirements Architecture of the Automation technology platforms Online Self Service access Skills in G&A functions and business operations Skills needed to deliver required to support Online and web access Formal training and skills development opportunities and successfully service delivery Digitization Retention of top performers transform services Level of IT and systems integration Page 65 2010 Global Business Services/Shared Services Performance Study @2010 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
  • 66. Technology solutions continue to enable SSO success 2009 87% Workflow 70% 73% Imaging / Sc anning 71% 73% Call c ent er t ools 35% 60% KPI Dashboard and SLA t ool 34% 60% Int ranet 48% 60% ERP 65% 60% Digit izat ion (digit al imaging) 33% 60% Aut omat ic matc hing & payment alloc at ion tools 58% 53% Self-servic e (front end) 38% Q. Which tools have provided the greatest benefits 53% Int erc ompany rec onc iliat ion t ools 29% Peer Group World-Class Page 66 2010 Global Business Services/Shared Services Performance Study @2010 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
  • 67. Copyright © 2008 SAP AG 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. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. SAP, R/3, xApps, xApp, SAP NetWeaver, Duet, SAP Business ByDesign, ByDesign, PartnerEdge 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 in several other countries all over the world. All other product and service names mentioned and associated logos displayed are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. The information in this document is proprietary to SAP. 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