Building a Glass House: Bringing visibility to the oragnization without bringing down the house

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Innovation World 2013 presentation

Efforts to increase operational transparency and performance often come with a unique set of challenges. In 2010, Baker Hughes began its journey to provide real-time visibility into its operations. Initial business process instrumentation efforts focused on both procure-to-pay and order-to-cash processes. In June 2012, its Board of Directors challenged the organization to reduce days sales outstanding by 10 percent.

Join this interview-style panel discussion to learn how Baker Hughes approached this initiative—the business drivers, the approach, business results and lessons learned. Also hear from industry experts on trends of business and IT collaboration to gain real-time insight at the right time.

Speakers:
Dave Brooks, VP, Intelligent Business Operations, Software AG (moderator)
Bhavesh Joshi, Director, Global Lapse Days Project, Baker Hughes
John Crupi, VP, R&D Software AG

Published in: Technology, Business
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Building a Glass House: Bringing visibility to the oragnization without bringing down the house

  1. 1. Building a Glass House Bringing Visibility to the Organization Without Bringing Down the House 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 ©2013 Software AG. All rights reserved.
  2. 2. 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) 2 | ©2013 Software AG. All rights reserved. For internal use only
  3. 3. Real Time vs. Real Value 3 | ©2013 Software AG. All rights reserved. For internal use only
  4. 4. Intelligent Business Operations 4 | ©2013 Software AG. All rights reserved. For internal use only
  5. 5. What Do We Mean By Intelligent Business Operations? Measuring leading indicators increases Visibility and Agility Financial Performance Revenue Gross Margin ROA Cash Flow EBIT Customer satisfaction Process cost Delivery reliability Cycle time Error rate Operational Performance gives you the What, How & Why behind the important numbers 5 | ©2013 Software AG. All rights reserved. For internal use only
  6. 6. Intelligent Business Operations (IBO) D E C I S I O N Observe P R O C E S S Decide Act Context Improve Automate Data Apps & Systems Sensors SaaS APPS Public API Environment and Influencers 6 | ©2013 Software AG. All rights reserved. For internal use only
  7. 7. IBO Use Cases focus on Operational Decisions Use Cases Decision Type Strategic & Tactical Operational 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 Years 7 | Months ©2013 Software AG. All rights reserved. For internal use only Weeks Days Hours Minutes Second s Time to Decide & Act
  8. 8. Business Value Track: Intelligent Business Operations Order to Cash | BAKER HUGHES 8 | ©2013 Software AG All rights reserved.
  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. Project Magnitude 12 | ©2013 Software AG. All rights reserved. For internal use only 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 processintrinsic 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. How Do You Deliver the Right Amount of Transparency? http://www.treehotel.se/en/location http://www.metmuseum.org/saraceno 15 | ©2013 Software AG. All rights reserved. For internal use only
  16. 16. Panel Topics How do you decide “which walls should be the glass walls”? How does Operational Visibility drive behavior? Once you move the Rules before Tools: What rules are the most needle, how do you make it stick? important to get right? What challenges did you face rolling out this kind of program? What were some unexpected surprises (good ones)? 16 | ©2013 Software AG. All rights reserved. For internal use only
  17. 17. 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 17 | ©2013 Software AG. All rights reserved. For internal use only

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