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SAP Business Transformation Study
Professional Services
INFOMATE
ENABLING GROUPWIDE SHARED
SERVICES
InfoMate Pvt Ltd is a subsidiary of
John Keells Holdings PLC (JKH),
Sri Lanka’s largest conglomerate
with interests in manufacturing,
retail, hotels, logistics, and construc-
tion. InfoMate functions as a
shared-services center, providing
back-office services for 70 JKH
subsidiaries and for third-party
companies. JKH wanted to stan-
dardize core processes and deliver
services across the group. It chose
SAP® software, which resulted in
significant business benefits.
Key Challenges
• Standardize business processes across
diverse businesses
• Adopt best practices across the group
• Create shared-services capabilities
• Monetize investments in standard platform
and shared services by offering business
process services externally
• Optimize ROI and total cost of ownership
related to SAP® offerings
Implementation Best Practices
• Adopted the standard ASAP methodology
• Assembled a strong cross–functional
project team consisting of a core team,
power users, and consultants
• Clearly defined roles and responsibilities,
including project sponsor and champion
• Adopted “Why not SAP?” stance for any
proposed functionality
Financial and Strategic Benefits
• Gained group synergies in finance, HR,
and procurement to lower sales, general,
and administration costs
• Adopted groupwide best practices,
including clean master data, electronic
document workflows, electronic bank
reconciliations, and mail-room services
• Improved data quality and accuracy
• Achieved faster accounts closing and
consolidation
• Achieved economies of scale by means of
common processes and data
Why SAP Was Selected
• Best-in-class coverage of business pro-
cesses in finance and HR
• Support for industry-specific processes
across multiple industries from a single
platform
• SAP NetWeaver® technology platform to
facilitate integration with more than 10
business-specific, front-end systems
• Data integrity across multiple processes
• Role-based access for better controls
Low Total Cost of Ownership
• Replaced several stand-alone, custom-
built systems
• Lowered cost of integration
• Used standard features (less than 2%
customization)
• Established a single blueprint for multiple
locations
• Used industry templates
• Deployed lower-cost infrastructure
Operational Benefits
Key Performance Indicator Impact
Higher productivity of -50 employees
finance employees in
JKH group
Faster and more accurate By 5th of month
accounts closure
Lower IT costs -10%
(software license)
Lower procurement -1% to -2%
Improved service-level 24-hour
agreements (turnaround time) turnaround
Improved transaction 99.5% accuracy
quality
QUICK FACTS
Industry
Professional services
Revenue
US$800,000
Employees
85
Headquarters
Colombo, Sri Lanka
Web Site
www.infomateworld.com
SAP® Solutions and Services
SAP® ERP application, SAP ERP
Financials solution, SAP ERP Human
Capital Management solution, SAP
NetWeaver® technology platform
Implementation Partner
Siemens AG
50 095 739 (09/06)
© 2009 by SAP AG.
All rights reserved. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign,
SAP Business ByDesign, and other SAP products and services mentioned
herein as well as their respective logos are trademarks or registered trademarks
of SAP AG in Germany and other countries.
Business Objects and the Business Objects logo, BusinessObjects, Crystal
Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business
Objects products and services mentioned herein as well as their respective
logos are trademarks or registered trademarks of Business Objects S.A. in the
United States and in other countries. Business Objects is an SAP company.
www.sap.com/contactsap
All other product and service names mentioned are the trademarks of their respec-
tive companies. Data contained in this document serves informational purposes
only. National product specifications may vary.
These materials are subject to change without notice. These materials are provided
by SAP AG and its affiliated companies (“SAP Group”) for informational purposes
only, without representation or warranty of any kind, and SAP Group shall not be
liable for errors or omissions with respect to the materials. The only warranties for
SAP Group products and services are those that are set forth in the express war-
ranty statements accompanying such products and services, if any. Nothing herein
should be construed as constituting an additional warranty.
“The SAP software and the shared-services model have enabled a group as diverse
and dynamic as ours to establish better controls and bring about standardization.”
Dilani Alagaratnam; President – HR, Legal and Secretarial; John Keells Holdings PLC
Shared Services in a Diversified
Conglomerate
InfoMate Pvt Ltd is a subsidiary of John
Keells Holdings PLC (JKH), Sri Lanka’s
largest conglomerate. With revenues of
over US$387 million, JKH has interests
in manufacturing, retail, hotels, logistics,
and construction. InfoMate has 55 cli-
ents, principally companies of the JKH
Group, located in South Asia. Though
set up as a shared-services center,
InfoMate now has third-party business
process outsourcing (BPO) capabilities.
JKH needed a robust IT platform to
enable it to pursue its growth strategy,
achieve economies of scale, dissemi-
nate global best practices, and exploit
group synergies while lowering IT costs.
It also wanted to make a strategic entry
into the BPO industry. To achieve these
objectives, JKH had to address the fol-
lowing challenges:
• Standardize finance, accounting, and
HR processes
• Ensure transaction quality through
standardized data entry norms
• Establish better controls and improve
compliance
• Ensure business continuity with
adequate infrastructure
• Optimize IT costs by rationalizing
software demand
Leveraging Technology to Enable
Shared Services
Deploying a common SAP® software–
based platform was a critical step
toward standardization and shared-
services delivery. However, JKH did not
adopt a “one size fits all” approach. It
retained key industry-specific applications,
leveraging the SAP technology platform
for process harmonization and integration.
This led to standardization of back-office
processes without loss of flexibility.
Next, InfoMate built extensions over the
SAP software for superior services
delivery. For instance, it built BPOmate,
a world-class document management sys-
tem, to provide real-time visibility. Then it
implemented best practices in business
continuity, Six Sigma, and measurement
systems. InfoMate also obtained the
ISO/IEC 27001:2005 certification for
information security procedures. Today
InfoMate’s portfolio includes analytics,
accounts payable, accounts receivable,
bank reconciliations, and payroll
processing.
Delivering the Promise
JKH has achieved impressive benefits
from its shared-services operations.
Monthly processing of over 50,000 invoic-
es, electronic bank reconciliations, and
accounts closing for 70 group companies
are handled centrally. Superior manage-
ment reporting and synergies in areas
such as procurement and finance are key
strategic benefits.
As Dilani Alagaratnam, President – HR,
Legal and Secretarial, says, “SAP soft-
ware and shared services have enabled
us to be transparent and compliant and to
offer better-than-expected returns to our
stakeholders in data security, efficiency,
and accuracy.”
Driving Strategic Benefits
The creation of this platform is expect-
ed to lead to further benefits. Ronnie
Peiris, JKH’s Group Finance Director,
explains, “Reducing the total cost of
finance and accounting was the main
objective in the first phase. The second
phase enabled us to consolidate and
reduce our software licensing costs and
enhance service levels. In the third
phase, we drove reengineering and
productivity enhancements by eliminat-
ing non-value-adding processes, result-
ing in fewer errors, process-driven
uniformity, and accurate information.”
Ramesh Shanmuganathan, executive
vice president and group CIO, says,
“To consolidate so many disparate
processes across multiple companies
was a challenge. But with the best prac-
tices supported by SAP software, we
could look at the end-to-end business
processes rather than at functional
silos. This helped us define logical splits
of responsibility between the shared-
services center and business. In
summary, we have been able to suc-
cessfully integrate people, processes,
and technology to deliver a strategic
business enabler through shared servic-
es, using SAP software as the platform
of choice.”

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Sap case study

  • 1. SAP Business Transformation Study Professional Services INFOMATE ENABLING GROUPWIDE SHARED SERVICES InfoMate Pvt Ltd is a subsidiary of John Keells Holdings PLC (JKH), Sri Lanka’s largest conglomerate with interests in manufacturing, retail, hotels, logistics, and construc- tion. InfoMate functions as a shared-services center, providing back-office services for 70 JKH subsidiaries and for third-party companies. JKH wanted to stan- dardize core processes and deliver services across the group. It chose SAP® software, which resulted in significant business benefits. Key Challenges • Standardize business processes across diverse businesses • Adopt best practices across the group • Create shared-services capabilities • Monetize investments in standard platform and shared services by offering business process services externally • Optimize ROI and total cost of ownership related to SAP® offerings Implementation Best Practices • Adopted the standard ASAP methodology • Assembled a strong cross–functional project team consisting of a core team, power users, and consultants • Clearly defined roles and responsibilities, including project sponsor and champion • Adopted “Why not SAP?” stance for any proposed functionality Financial and Strategic Benefits • Gained group synergies in finance, HR, and procurement to lower sales, general, and administration costs • Adopted groupwide best practices, including clean master data, electronic document workflows, electronic bank reconciliations, and mail-room services • Improved data quality and accuracy • Achieved faster accounts closing and consolidation • Achieved economies of scale by means of common processes and data Why SAP Was Selected • Best-in-class coverage of business pro- cesses in finance and HR • Support for industry-specific processes across multiple industries from a single platform • SAP NetWeaver® technology platform to facilitate integration with more than 10 business-specific, front-end systems • Data integrity across multiple processes • Role-based access for better controls Low Total Cost of Ownership • Replaced several stand-alone, custom- built systems • Lowered cost of integration • Used standard features (less than 2% customization) • Established a single blueprint for multiple locations • Used industry templates • Deployed lower-cost infrastructure Operational Benefits Key Performance Indicator Impact Higher productivity of -50 employees finance employees in JKH group Faster and more accurate By 5th of month accounts closure Lower IT costs -10% (software license) Lower procurement -1% to -2% Improved service-level 24-hour agreements (turnaround time) turnaround Improved transaction 99.5% accuracy quality QUICK FACTS Industry Professional services Revenue US$800,000 Employees 85 Headquarters Colombo, Sri Lanka Web Site www.infomateworld.com SAP® Solutions and Services SAP® ERP application, SAP ERP Financials solution, SAP ERP Human Capital Management solution, SAP NetWeaver® technology platform Implementation Partner Siemens AG
  • 2. 50 095 739 (09/06) © 2009 by SAP AG. All rights reserved. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP Business ByDesign, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects S.A. in the United States and in other countries. Business Objects is an SAP company. www.sap.com/contactsap All other product and service names mentioned are the trademarks of their respec- tive companies. Data contained in this document serves informational purposes only. National product specifications may vary. These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express war- ranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. “The SAP software and the shared-services model have enabled a group as diverse and dynamic as ours to establish better controls and bring about standardization.” Dilani Alagaratnam; President – HR, Legal and Secretarial; John Keells Holdings PLC Shared Services in a Diversified Conglomerate InfoMate Pvt Ltd is a subsidiary of John Keells Holdings PLC (JKH), Sri Lanka’s largest conglomerate. With revenues of over US$387 million, JKH has interests in manufacturing, retail, hotels, logistics, and construction. InfoMate has 55 cli- ents, principally companies of the JKH Group, located in South Asia. Though set up as a shared-services center, InfoMate now has third-party business process outsourcing (BPO) capabilities. JKH needed a robust IT platform to enable it to pursue its growth strategy, achieve economies of scale, dissemi- nate global best practices, and exploit group synergies while lowering IT costs. It also wanted to make a strategic entry into the BPO industry. To achieve these objectives, JKH had to address the fol- lowing challenges: • Standardize finance, accounting, and HR processes • Ensure transaction quality through standardized data entry norms • Establish better controls and improve compliance • Ensure business continuity with adequate infrastructure • Optimize IT costs by rationalizing software demand Leveraging Technology to Enable Shared Services Deploying a common SAP® software– based platform was a critical step toward standardization and shared- services delivery. However, JKH did not adopt a “one size fits all” approach. It retained key industry-specific applications, leveraging the SAP technology platform for process harmonization and integration. This led to standardization of back-office processes without loss of flexibility. Next, InfoMate built extensions over the SAP software for superior services delivery. For instance, it built BPOmate, a world-class document management sys- tem, to provide real-time visibility. Then it implemented best practices in business continuity, Six Sigma, and measurement systems. InfoMate also obtained the ISO/IEC 27001:2005 certification for information security procedures. Today InfoMate’s portfolio includes analytics, accounts payable, accounts receivable, bank reconciliations, and payroll processing. Delivering the Promise JKH has achieved impressive benefits from its shared-services operations. Monthly processing of over 50,000 invoic- es, electronic bank reconciliations, and accounts closing for 70 group companies are handled centrally. Superior manage- ment reporting and synergies in areas such as procurement and finance are key strategic benefits. As Dilani Alagaratnam, President – HR, Legal and Secretarial, says, “SAP soft- ware and shared services have enabled us to be transparent and compliant and to offer better-than-expected returns to our stakeholders in data security, efficiency, and accuracy.” Driving Strategic Benefits The creation of this platform is expect- ed to lead to further benefits. Ronnie Peiris, JKH’s Group Finance Director, explains, “Reducing the total cost of finance and accounting was the main objective in the first phase. The second phase enabled us to consolidate and reduce our software licensing costs and enhance service levels. In the third phase, we drove reengineering and productivity enhancements by eliminat- ing non-value-adding processes, result- ing in fewer errors, process-driven uniformity, and accurate information.” Ramesh Shanmuganathan, executive vice president and group CIO, says, “To consolidate so many disparate processes across multiple companies was a challenge. But with the best prac- tices supported by SAP software, we could look at the end-to-end business processes rather than at functional silos. This helped us define logical splits of responsibility between the shared- services center and business. In summary, we have been able to suc- cessfully integrate people, processes, and technology to deliver a strategic business enabler through shared servic- es, using SAP software as the platform of choice.”