Building a glass house baker hughes

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Building a glass house baker hughes

  1. 1. ©2013 Software AG. All rights reserved.©2013 Software AG. All rights reserved. Bhavesh Joshi Director, Global Cashflow Baker Hughes John Crupi Vice President, R&D Software AG Dave Brooks Vice President, Solutions Intelligent Business Operations Software AG October 9, 2013 Building a Glass House Bringing Visibility to the Organization Without Bringing Down the House
  2. 2. ©2013 Software AG. All rights reserved. For internal use only2 | Today’s Discussion • Set the Stage: Intelligent Business Operations • Baker Hughes: Order To Cash Project Before / After / Benefits / Technology • Panel Discussion: Lessons Learned & Use Cases Bringing Visibility to the Organization Without Bringing Down the House • Ways of Getting Started (or continuing your journey)
  3. 3. ©2013 Software AG. All rights reserved. For internal use only3 | Real Time vs. Real Value
  4. 4. ©2013 Software AG. All rights reserved. For internal use only4 | Intelligent Business Operations
  5. 5. ©2013 Software AG. All rights reserved. For internal use only5 | What Do We Mean By Intelligent Business Operations? Measuring leading indicators increases Visibility and Agility Financial Performance Cycle time Customer satisfaction Error rate Process cost Delivery reliability Operational Performance gives you the What, How & Why behind the important numbers Revenue Cash Flow EBITROA Gross Margin
  6. 6. ©2013 Software AG. All rights reserved. For internal use only6 | Intelligent Business Operations (IBO) Observe Decide Act D E C I S I O N P R O C E S S Environment and Influencers Data Context Improve Automate Sensors Apps & Systems Public API SaaS APPS
  7. 7. ©2013 Software AG. All rights reserved. For internal use only7 | IBO Use Cases focus on Operational Decisions Time to Decide & Act Decision Type Business Reviews Alliances Strategy Markets and Products Business Planning Products & Price Cost of Goods Sold Cost-Benefit Analysis Quality of Service/ Customer Satisfaction Order & Payment Tracking Partner SLA Tracking & Mgmt Credit Approval Management Exception Management Theft Detection & Prevention Insurance Claim Processing Customer Experience Management Inventory & Asset Tracking Business Process Monitoring Dynamic Resource Management UseCases Years Months Weeks Days Hours Minutes Second s Strategic & Tactical Operational
  8. 8. ©2013 Software AG All rights reserved.8 | Business Value Track: Intelligent Business Operations Order to Cash | BAKER HUGHES
  9. 9. The Project • 9 Divisions becoming 1 company: One Baker Hughes • Focus on the Order to Cash process • “Rules Before Tools” • Enterprise level project • Significant Change Management • Part of BPM journey
  10. 10. Before • No global, standard Order to Cash process • Exceptions and discrepancies in early stages of the process resulted in significant rework and effort when it came time to invoice the customer • Inefficiencies impacted overall Order to Cash cycle time
  11. 11. After • Uniform Order to Cash Processes around the world • Dedicated team from Sales Ops, Finance & IT for implementation, training & change management • Rule-based Alerts drive action • Business Process Instrumentation monitors events across the entire process
  12. 12. ©2013 Software AG. All rights reserved. For internal use only12 | Project Magnitude Note: the numbers represent key process users
  13. 13. Benefits • Global standards facilitate best practices • Visibility & transparency drives operational accountability • Cross-functional personnel know when appropriate action is needed • Streamlined process helped decrease Days Sales Outstanding by 1.5 days
  14. 14. Technology • Integration points Synch & Service XML interfaces (technology agnostic) – no direct connects • Transport e-mail; Broker webMethods; Translation Layer SAP • Analytic Engine monitors process- intrinsic metrics and business KPIs in real-time • System can learn what’s “normal” by day of week and week of month • Feeds SAP Business Objects for the dashboard
  15. 15. ©2013 Software AG. All rights reserved. For internal use only15 | How Do You Deliver the Right Amount of Transparency? http://www.treehotel.se/en/location http://www.metmuseum.org/saraceno
  16. 16. ©2013 Software AG. All rights reserved. For internal use only16 | Panel Topics How does Operational Visibility drive behavior? Once you move the needle, how do you make it stick? Rules before Tools: What rules are the most important to get right? How do you decide “which walls should be the glass walls”? What challenges did you face rolling out this kind of program? What were some unexpected surprises (good ones)?
  17. 17. ©2013 Software AG. All rights reserved. For internal use only17 | Questions? For further information, please contact: Bhavesh Joshi Director, Global Cashflow Baker Hughes, Inc. Phone: 281-209-7383 e-mail: bhavesh.joshi@bakerhughes.com Dave Brooks Vice President, Solutions Intelligent Business Operations Phone: 650-270-6023 e-mail: dave.brooks@softwareag.com

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