Shared Services Delivery Model Agenda: 1. Corporate perspective 2. Business Units Perspective 3. Economics Perspective 4. ...
Shared Services Delivery Model A Corporate perspective Outsourcing Strategy & Management Group 1
<ul><li>Topic   Page  . </li></ul><ul><li>Definition and goal of a Shared Service Center (SSC)  . . . . . . . . . . . . . ...
Definition and goal of a Shared Service Center (SSC) <ul><li>SSC - supporting processes within an organization on an appro...
Measures in perspective Measures at task level: Stopping investments Orcutting down on current initiatives Measures at a p...
Secret of Transformation Corporate Communication
Trends To take maximum concentration and complexity there will be need for new solutions. Costs Volume Startingpoint Impac...
Shared services- maturity process
Potential services for a SSC <ul><li>Facility Management </li></ul><ul><li>mailroom  </li></ul><ul><li>copying and printin...
Shared services requires maturing process  not purely corporate mandate Thank You
Moving Towards Shared Services - Business Units Perspective PGPM508_03 Ashish Baijal PGPM508_12 Sivaram Gunavel PGPM508_19...
Need <ul><li>Absence of standardized process </li></ul><ul><li>Multiple software systems serve different business units </...
Challenges
Benefits <ul><li>Promotes the consolidation of scarce resources with specific technology skills that can be shared across ...
Financial & People Implications <ul><li>Cost Reduction due to  infrastructure sharing capability  </li></ul><ul><li>Establ...
Communications
An Economic Perspective Shared Services Group 3 Prachi Joshi Prateek Jain Ritambhar Roy Raghu V N Sameer Dhamangaonkar Sat...
What is Shared service? <ul><li>Shifting common administrative activities from individual business units to a centralized ...
Common shared Service Functions
Cost Reduction <ul><li>Central theme of shared services’ business case </li></ul><ul><ul><li>Process improvements, a key d...
SSOs are strategic enablers, not just supporters <ul><li>Strategic pursuits of an organization using SSOs </li></ul><ul><u...
Other economic implications <ul><li>Manage tax implications of shared service efforts </li></ul><ul><ul><li>Growing global...
How to realize ROI while implementing Shared services
From Cost Centre to Profit Centre…Way forward <ul><li>Old v/s New Model </li></ul>
Group 5 Nitin Goel Kapali Chawla Puneet Taneja Sorabh Marwah Santanu Biswas Sandeep Sreenivasa
Shared Services - Definition Shared Services is a  service delivery model   where organizations achieve economies of scale...
Overview <ul><li>Requirements </li></ul><ul><ul><li>Standardization and Centralization of Support functions </li></ul></ul...
Generic Principles <ul><li>Devolved Data Entry  – Minimize data entry & transactional activity </li></ul><ul><ul><li>Manag...
SSC Technology Architecture
Facts, Figures and Recommendations <ul><li>The top three challenges to making a global shared services approach work in th...
THANK YOU
Shared Services  Implementation & Processes Outsourcing Strategy & Management Group 5 Abhishek Dwivedi PGPM508_09 Mihir Ja...
Shared Services Implementation Model Oct 27, 2009 Outsourcing Strategy & Management, Group 5
<ul><li>Data collection </li></ul><ul><ul><li>Company operation details, vendors, services offered, organization structure...
<ul><li>Scope </li></ul><ul><ul><li>Services to be included in a model </li></ul></ul><ul><ul><li>Individual components to...
<ul><li>Organization & Process Design </li></ul><ul><ul><li>Current organization structure and design </li></ul></ul><ul><...
<ul><li>Application & Technology Build </li></ul><ul><ul><li>Application development </li></ul></ul><ul><ul><li>Technology...
<ul><li>Orlando based company, serves all north American Siemens companies </li></ul><ul><li>Back office in Bangalore </li...
The Road Ahead Oct 27, 2009 Outsourcing Strategy & Management, Group 5 STAGE I     Achieve economies of scope & scale by ...
Upcoming SlideShare
Loading in...5
×

Shared Services model of delivery

24,032

Published on

Corporate, Financial, Economic & Business Unit perspective of Shared services delivery model

Published in: Education, Business, Technology
0 Comments
9 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
24,032
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
1,589
Comments
0
Likes
9
Embeds 0
No embeds

No notes for slide

Shared Services model of delivery

  1. 1. Shared Services Delivery Model Agenda: 1. Corporate perspective 2. Business Units Perspective 3. Economics Perspective 4. Technology Perspective 5. Implementation Perspective Outsourcing Strategy & Management
  2. 2. Shared Services Delivery Model A Corporate perspective Outsourcing Strategy & Management Group 1
  3. 3. <ul><li>Topic Page . </li></ul><ul><li>Definition and goal of a Shared Service Center (SSC) . . . . . . . . . . . . . . . . . 03 </li></ul><ul><li>Corporate Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 03 </li></ul><ul><li>Measures in perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04 </li></ul><ul><li>Secret of Transformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 05 </li></ul><ul><li>Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06 </li></ul><ul><li>Shared services- maturity process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07 </li></ul><ul><li>Potential services for a SSC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08 </li></ul><ul><li>Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09 </li></ul>
  4. 4. Definition and goal of a Shared Service Center (SSC) <ul><li>SSC - supporting processes within an organization on an approximately similar way, are delivered a new, semi-autonomous unit and on the basis of agreements it provides services to other units </li></ul><ul><li>The goal is generally to improve the service quality while cutting costs </li></ul><ul><li>SSC versus centralization, service-oriented versus task </li></ul><ul><li>Creating - </li></ul><ul><ul><li>shared services standards, </li></ul></ul><ul><ul><li>policies, </li></ul></ul><ul><ul><li>tools and an associated strategy of service delivery, and </li></ul></ul><ul><ul><li>continued improved performance </li></ul></ul>Corporate Objective
  5. 5. Measures in perspective Measures at task level: Stopping investments Orcutting down on current initiatives Measures at a process level: Collaboration and joint investments Measures at a functional level: Concentration, integration, mergers, Take-over or outsourcing Saving potential Short term (0,5-1 year Medium term (1-2 years Long term (2-5 years) Stopping projects Cutting down on training and learning Cutting down on engaging external consultants System optimazation Collaboration regarding purchasing, support, etc. Optimization and standardization of processes Integration, mergers and concentration Outsourcing of parts of the organization Shared Services Centre Full outsourcing Capitalizing effects
  6. 6. Secret of Transformation Corporate Communication
  7. 7. Trends To take maximum concentration and complexity there will be need for new solutions. Costs Volume Startingpoint Impact Scale reached Impact Scale reached Complexity Costs will increase
  8. 8. Shared services- maturity process
  9. 9. Potential services for a SSC <ul><li>Facility Management </li></ul><ul><li>mailroom </li></ul><ul><li>copying and printing service </li></ul><ul><li>archive </li></ul><ul><li>purchase </li></ul><ul><li>catering </li></ul><ul><li>Customer Service </li></ul><ul><li>sales service </li></ul><ul><li>telephone customer service (call center) </li></ul><ul><li>Administration </li></ul><ul><li>financial administration </li></ul><ul><li>pensions administration </li></ul><ul><li>Payroll </li></ul><ul><li>Personelmanagement (HRM) </li></ul><ul><li>recruitment and selection </li></ul><ul><li>Personnel administration </li></ul><ul><li>training </li></ul><ul><li>ICT Services </li></ul><ul><li>application development </li></ul><ul><li>Helpdesk </li></ul><ul><li>Management and operation </li></ul><ul><li>Training </li></ul><ul><li>Real Estate Management </li></ul><ul><li>management buildings </li></ul><ul><li>Security management </li></ul><ul><li>Sales and marketing </li></ul><ul><li>ad coordination </li></ul><ul><li>direct mail </li></ul><ul><li>sales </li></ul><ul><li>Tele ordering </li></ul><ul><li>Order administration </li></ul>
  10. 10. Shared services requires maturing process not purely corporate mandate Thank You
  11. 11. Moving Towards Shared Services - Business Units Perspective PGPM508_03 Ashish Baijal PGPM508_12 Sivaram Gunavel PGPM508_19 Priya Khanna PGPM508_23 Chetan Mahindra PGPM508_36 Anjana Rao PGPM508_59 Prashant Malviya Group 2
  12. 12. Need <ul><li>Absence of standardized process </li></ul><ul><li>Multiple software systems serve different business units </li></ul><ul><li>Requirement of broad range of technologies from mainframes to client/server to distributed SOA </li></ul><ul><li>Evolving new business products and technology variation </li></ul><ul><li>Lack of experienced technical personnel </li></ul><ul><li>Expensive maintenance costs </li></ul><ul><li>Holistic view to monitor various processes and functions </li></ul><ul><li>Quicker data retrieval by eliminating the need to roll up results from multiple units </li></ul><ul><li>Keep business units focused on profit-making activities </li></ul>
  13. 13. Challenges
  14. 14. Benefits <ul><li>Promotes the consolidation of scarce resources with specific technology skills that can be shared across business units </li></ul><ul><li>Methodology based on industry standards and best practices </li></ul><ul><li>Avoiding duplication and encouraging reuse </li></ul><ul><li>Flexible engagement models that will accommodate clients’ diverse business unit needs </li></ul><ul><li>Ownership remains with the business unit </li></ul><ul><li>Keep business units focused on profit-making activities </li></ul><ul><li>Cut operating costs </li></ul><ul><li>Can support strategic initiatives </li></ul>
  15. 15. Financial & People Implications <ul><li>Cost Reduction due to infrastructure sharing capability </li></ul><ul><li>Establish transfer pricing for internal shared services </li></ul><ul><li>Relocating knowledgeable personnel to service centers to establish the knowledge base, or, the reverse, sending service center resources to the business unit. </li></ul><ul><li>Internal people dissatisfaction and unrest due to drastic changes in everyday work </li></ul><ul><li>Reduced requirement of infrastructure and human resources </li></ul>
  16. 16. Communications
  17. 17. An Economic Perspective Shared Services Group 3 Prachi Joshi Prateek Jain Ritambhar Roy Raghu V N Sameer Dhamangaonkar Satish Sawant Sohail Khan
  18. 18. What is Shared service? <ul><li>Shifting common administrative activities from individual business units to a centralized operation to reduce costs and improve service quality </li></ul><ul><li>What it does? </li></ul><ul><li>Improves overall efficiency and control while giving every business unit access to functionally deep and talented resources. </li></ul><ul><li>Enables business units to focus on what really matters like satisfying customers and developing new products and services to sustain competitive advantage. </li></ul>
  19. 19. Common shared Service Functions
  20. 20. Cost Reduction <ul><li>Central theme of shared services’ business case </li></ul><ul><ul><li>Process improvements, a key driver of cost reduction, also a prime concern among SSOs </li></ul></ul><ul><li>Recession induced urgency to deliver cost savings to bottom-line </li></ul><ul><ul><li>Reduced operations leading to lower headcount </li></ul></ul><ul><ul><li>Implementing and/or improving enforcement of controls over spending </li></ul></ul><ul><li>SSOs share general pressure to cut their own costs </li></ul><ul><ul><li>Headcount reductions, deferral of infrastructure and IT projects, cut in discretionary spending </li></ul></ul><ul><li>Improving productivity as a complement to cost reduction efforts </li></ul><ul><ul><li>Eliminate, Simplify, Standardize, Automate </li></ul></ul>
  21. 21. SSOs are strategic enablers, not just supporters <ul><li>Strategic pursuits of an organization using SSOs </li></ul><ul><ul><li>Facilitate enterprise growth, improve business focus and enhance talent management </li></ul></ul><ul><ul><li>High quality data can be made available from across the enterprise for analysis and subsequent action </li></ul></ul><ul><ul><ul><li>Aggregated and standardized information </li></ul></ul></ul><ul><ul><ul><li>Data consistency and reliability </li></ul></ul></ul><ul><ul><li>By optimizing schedules, frees up resources for advisory support </li></ul></ul><ul><ul><li>Supports business growth, especially growth through acquisitions </li></ul></ul><ul><ul><li>Talent sourcing and development tool </li></ul></ul><ul><ul><ul><li>Training ground for talent; find and develop business-bound employees </li></ul></ul></ul><ul><ul><ul><li>Improves attraction and retention among SSO personnel </li></ul></ul></ul>
  22. 22. Other economic implications <ul><li>Manage tax implications of shared service efforts </li></ul><ul><ul><li>Growing global footprint; different tax regimes </li></ul></ul><ul><ul><li>Appropriate transfer pricing policy; consider rules of country where SSC is located and country where service is delivered </li></ul></ul><ul><ul><li>Advisory services in shared environment; some portion of the revenue must be generated in low-tax jurisdictions </li></ul></ul><ul><ul><li>Intangible value generated out of standardized technology and processes </li></ul></ul><ul><li>Opportunities presented by IFRS reporting </li></ul><ul><ul><li>IFRS reporting done by SSOs will reduce cost of compliance with effective internal controls </li></ul></ul><ul><ul><li>Enterprise-wide financial reporting consistency and hence improving cross-entity comparability </li></ul></ul>
  23. 23. How to realize ROI while implementing Shared services
  24. 24. From Cost Centre to Profit Centre…Way forward <ul><li>Old v/s New Model </li></ul>
  25. 25. Group 5 Nitin Goel Kapali Chawla Puneet Taneja Sorabh Marwah Santanu Biswas Sandeep Sreenivasa
  26. 26. Shared Services - Definition Shared Services is a service delivery model where organizations achieve economies of scale through the creation of a separate entity in which the “customers” have a degree of ownership and determines the types of services and service levels provided How service provides people, processes, technology, structures, and funding will be done. Dedicated Governance Model Focused on Selected business or IT services
  27. 27. Overview <ul><li>Requirements </li></ul><ul><ul><li>Standardization and Centralization of Support functions </li></ul></ul><ul><ul><li>Facilitates shared expertise </li></ul></ul><ul><ul><li>Economies of scale may be realized in High Volume transactions </li></ul></ul><ul><li>These elements can only improve efficiency </li></ul><ul><li>True Benefits of the shared services environment are dependent on supporting Technology infrastructure </li></ul><ul><li>Focus is on managing high volume transactional activity in a standardized manner </li></ul><ul><li>Greater emphasis on the way the data is updated in the systems and the connectivity between units and Shared service </li></ul><ul><li>Technology architecture demands the integration of several discrete components, which must function in an integrated manner to ensure successful delivery of the end to end process </li></ul>
  28. 28. Generic Principles <ul><li>Devolved Data Entry – Minimize data entry & transactional activity </li></ul><ul><ul><li>Manager & Employee Self Service </li></ul></ul><ul><ul><li>Workflow </li></ul></ul><ul><li>Data Integrity – Effectively share data between them </li></ul><ul><ul><li>Captured once at origin & Validated at origin </li></ul></ul><ul><ul><li>Audit Trails </li></ul></ul><ul><li>Data Integration – Use of multiple apps requires integration </li></ul><ul><ul><li>Workflow Integration – employee resigns, workflow must be updated </li></ul></ul><ul><ul><li>Self Service – Updating of data without intervention of SSC staff </li></ul></ul><ul><li>Management Information - provide critical management information </li></ul><ul><ul><li>Reporting Tools should be available </li></ul></ul><ul><ul><li>Capability to produce outputs locally or globally & Audit trail functionality </li></ul></ul><ul><li>Data Protection - compliance with data protection </li></ul><ul><ul><li>Access rights </li></ul></ul><ul><ul><li>Data deletion and Retention Policies </li></ul></ul><ul><li>Application Sourcing – Multiple suppliers or single supplier of integrated solutions </li></ul><ul><ul><li>Buy not build </li></ul></ul><ul><ul><li>Scalable/Flexible – Accommodate changes in organization size </li></ul></ul><ul><ul><li>Implementable/ Supportable – Should be supportable by the vendor </li></ul></ul>
  29. 29. SSC Technology Architecture
  30. 30. Facts, Figures and Recommendations <ul><li>The top three challenges to making a global shared services approach work in the real world from a technology perspective were </li></ul><ul><ul><li>managing ERP systems (34.6%), </li></ul></ul><ul><ul><li>knowledge management (28.8%) and </li></ul></ul><ul><ul><li>workflow and imaging tools (28.8%) </li></ul></ul><ul><li>Shared services are not technology projects, they are about business change. Technical engagement is needed throughout </li></ul><ul><li>Implementation requires consistent & persistent communications and change management – regardless of people or political fluctuations. </li></ul>
  31. 31. THANK YOU
  32. 32. Shared Services Implementation & Processes Outsourcing Strategy & Management Group 5 Abhishek Dwivedi PGPM508_09 Mihir Jana PGPM508_14 Ankan Majumdar PGPM508_24 Krishna Prasath PGPM508_33 Kedar Sahasrabudhe PGPM508_40 Arun V M PGPM508_54
  33. 33. Shared Services Implementation Model Oct 27, 2009 Outsourcing Strategy & Management, Group 5
  34. 34. <ul><li>Data collection </li></ul><ul><ul><li>Company operation details, vendors, services offered, organization structure </li></ul></ul><ul><li>Opportunity Identification </li></ul><ul><ul><li>Services which does not form core business </li></ul></ul><ul><ul><li>Find out services which can be outsourced/unified </li></ul></ul><ul><li>Value Proposition </li></ul><ul><ul><li>Service composition to be provided by vendor </li></ul></ul><ul><ul><li>Possible business benefits out of it </li></ul></ul><ul><li>Final Report & Review </li></ul><ul><ul><li>Review of business value </li></ul></ul><ul><ul><li>Final decision whether to continue to next phase </li></ul></ul>Assessment of Potential Value Oct 27, 2009 Outsourcing Strategy & Management, Group 5
  35. 35. <ul><li>Scope </li></ul><ul><ul><li>Services to be included in a model </li></ul></ul><ul><ul><li>Individual components to be serviced </li></ul></ul><ul><li>Current State Analysis </li></ul><ul><ul><li>AS IS and TO BE processes </li></ul></ul><ul><ul><li>Gap Analysis & Recommendations </li></ul></ul><ul><li>Operating Model </li></ul><ul><ul><li>Operational details </li></ul></ul><ul><ul><li>Formation of teams, roles, communication model, SLA terms </li></ul></ul><ul><li>Charge Strategy </li></ul><ul><ul><li>Billing Strategy </li></ul></ul><ul><li>Business Case </li></ul><ul><ul><li>Final business case presentation </li></ul></ul><ul><ul><li>Contract signing and agreement on further phases </li></ul></ul>Due Diligence Oct 27, 2009 Outsourcing Strategy & Management, Group 5
  36. 36. <ul><li>Organization & Process Design </li></ul><ul><ul><li>Current organization structure and design </li></ul></ul><ul><ul><li>Detailed study of current processes </li></ul></ul><ul><ul><li>Gap analysis and recommendations </li></ul></ul><ul><li>Training Design </li></ul><ul><ul><li>Training requirements (Process & Technology) </li></ul></ul><ul><ul><li>Knowledge transition </li></ul></ul><ul><li>Service Management Framework </li></ul><ul><ul><li>Key service level governing parameters </li></ul></ul><ul><ul><li>SLA terms and support framework </li></ul></ul><ul><li>Transition Planning </li></ul><ul><ul><li>Formulation of transition team and detailed transition plan </li></ul></ul><ul><li>Technical Design </li></ul><ul><ul><li>Identification of infrastructure requirements </li></ul></ul><ul><ul><li>Design for upgrade/modification of software and hardware systems </li></ul></ul><ul><li>Roll out strategy </li></ul><ul><ul><li>Final rollout plan </li></ul></ul>Process & System Design Oct 27, 2009 Outsourcing Strategy & Management, Group 5
  37. 37. <ul><li>Application & Technology Build </li></ul><ul><ul><li>Application development </li></ul></ul><ul><ul><li>Technology implementation </li></ul></ul><ul><li>Shared service center build </li></ul><ul><ul><li>Location preference, facility design </li></ul></ul><ul><li>Shared Services Organization build </li></ul><ul><ul><li>Creation & implementation of organization structure </li></ul></ul><ul><li>Training </li></ul><ul><ul><li>Training to customers for new changes </li></ul></ul><ul><ul><li>Training to vendor employees about new processes </li></ul></ul><ul><li>Detailed rollout </li></ul><ul><ul><li>Application deployment & Hygiene testing </li></ul></ul><ul><ul><li>Regular monitoring and support </li></ul></ul>Rollout & Support Oct 27, 2009 Outsourcing Strategy & Management, Group 5
  38. 38. <ul><li>Orlando based company, serves all north American Siemens companies </li></ul><ul><li>Back office in Bangalore </li></ul><ul><li>Major handling of payroll, procurement, import-export, accounts payable processes </li></ul><ul><li>Siemens company enters with SSL contract after negotiations about overall contract </li></ul><ul><li>Acts as minimalist profit center and is forced to pass on benefits to Siemens companies </li></ul><ul><li>Major IT infrastructure to support processes </li></ul><ul><li>Growth based on volumes </li></ul>Siemens Shared Services LLC Oct 27, 2009 Outsourcing Strategy & Management, Group 5
  39. 39. The Road Ahead Oct 27, 2009 Outsourcing Strategy & Management, Group 5 STAGE I  Achieve economies of scope & scale by integrating more Lines of Services STAGE II  Constant price reductions by process improvements. STAGE III  Become a profit center from a cost center by carrying out similar activities for other companies. Outsourcing the services of our shared service center for a fee.
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×