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Making the shift – Moving from transactional service                 provider to end-to-end process transformation        ...
The Natural Evolution of Globalization - The MoveTowards Value-Added Services                                   u    Enabl...
Corporations Are Facing A New Competitiveness u There are fundamental shifts in the corporate landscape…  u Escalating pre...
Globalization is About More than Cost Reduction.. but Getting Full Value is Easier Said than Done   The Full potential:   ...
Domestic Outsourcing...not about Cost Arbitrage     1. Process Expertise / Best In Class Services        u   Deep expertis...
Domestic Outsourcing...not about Cost Arbitrage  2. Delivering Business Solutions – Moving from Transactions to Solutions ...
Domestic Outsourcing...not about Cost Arbitrage    3. Unleashing Disruptive Virtual Companies       u   Utilize Intellectu...
Driving Performance on Business Outcomes requiresan End to End Process View          End-to-end approach can enable compan...
Key Elements of End to EndKey Hypothesis                                                       Key Elements u 60/70% of co...
Key Business Outcome Improvement Drivers    End-to-End                        Efficiency                                  ...
Our Learnings from work with multiple customers/processesu No one customer is Best-in-Class across metrics… pockets of bri...
Thank YouContact InformationHarpreet Duggal – Senior Vice President & Business Leaderharpreet.duggal@genpact.com          ...
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Making the shift – Moving from transactional service

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Making the shift – Moving from transactional service

  1. 1. Making the shift – Moving from transactional service provider to end-to-end process transformation Harpreet Duggal Senior Vice President, GenpactNASSCOM BPO Strategy Summit10 June, 2009 – Bangalore, India 1 Confidential. All trademarks appearing herein belong to their respective owners.
  2. 2. The Natural Evolution of Globalization - The MoveTowards Value-Added Services u Enable companies to become better at Core to grow top line u Preservation of cash & improved working capital Today Competitiveness u Take Processes to Best-in-class u Minimize capital investment Mid u Benefit from Six Sigma and Lean expertise 2000s Capacity u Margin expansion Early u Turn fixed costs into variable to support expansion & growth 2000s Productivity u Onshore capital expenditure avoidance u 25-50% cost savings 1990s Labor Arbitrage u Leverage global talent pool All of us Want to Travel to Best-in-Class 2 Confidential. All trademarks appearing herein belong to their respective owners.
  3. 3. Corporations Are Facing A New Competitiveness u There are fundamental shifts in the corporate landscape… u Escalating pressures on enterprises… § global competition § demand for innovation § speed to market § productivity pressures § risk mitigation & compliance Demanding a § shareholder scrutiny u are leading to a shift in corporate strategy new breed of § focus on core Business Partner § global sourcing § variable cost models § minimize capital investment § improve productivity 3 Confidential. All trademarks appearing herein belong to their respective owners.
  4. 4. Globalization is About More than Cost Reduction.. but Getting Full Value is Easier Said than Done The Full potential: Road-blocks: § Narrow focus on short term cost takeout & contracted SLAs § Not getting into full partnership mode early § Reluctance to change/re-design processes significantly- Perception of “unique processes”, “we are the best” and “operational disruption” § Clients’ saving commitment to street and budget limitations delay the right level of upfront investments required 4 Confidential. All trademarks appearing herein belong to their respective owners.
  5. 5. Domestic Outsourcing...not about Cost Arbitrage 1. Process Expertise / Best In Class Services u Deep expertise in specific industries – Banking, Insurance, Automotive, Healthcare …. u Deep Expertise by Domain – F&A, Supply Chain, Collections, Risk Management …. u Define what is the standard for Best in Class, by industry and by Domain… and deliver those to customers. u Research & Development into Optimum processes and enabling technologies – e.g. invoice exchange, translation, task dis-aggregation, core vs. non-core Need to Demonstrate True Process Expertise & Domain Knowledge to Create Value 5 Confidential. All trademarks appearing herein belong to their respective owners.
  6. 6. Domestic Outsourcing...not about Cost Arbitrage 2. Delivering Business Solutions – Moving from Transactions to Solutions u Bundling of Services − Procure to pay (sourcing + AP + cash management) − Sales Force Effectiveness u Delivering specific value − Risk Management − Working Capital Improvement − Credit Card Operations − Sales Force.com? u Linkages between Services − SOX.com? & Technology − Hospitals.com? − Well beyond labor arbitrage… through process u Delivering Cost & improvements, re-engineering Productivity − Pricing based on results − Complete back office “to support expansion” u Delivering Total Services − Tax, Infrastructure, Accounting, Admin Integrated Process & Technology Solutions 6 Confidential. All trademarks appearing herein belong to their respective owners.
  7. 7. Domestic Outsourcing...not about Cost Arbitrage 3. Unleashing Disruptive Virtual Companies u Utilize Intellectual Talent & Virtual Expertise to dramatically shift costs and compete in existing businesses. u Ideally focused on service industries/ knowledge based u Utilize the power of the internet & telecommunications − Virtual Investment Bank? − Virtual Market Research? − Virtual Insurance Co? − Virtual Bank? − Virtual Architect, Law Firm, Advertising? u Huge Potential – current Services work is helping build up the Domain Knowledge to compete Focus On Core Competencies… Revolutionize Biz Models India More Likely To Adopt Disruptive Models 7 Confidential. All trademarks appearing herein belong to their respective owners.
  8. 8. Driving Performance on Business Outcomes requiresan End to End Process View End-to-end approach can enable companies drive step improvement in process performance through focused and flawless execution Significant process variability across companies drives large variances in similar processes Benchmarks at sub processes level allow detailed characterization of potential for improvement in each step... and its subsequent impact at a business Level End to End allows a Process view that can transcend the functional silos in an organization 8 Confidential. All trademarks appearing herein belong to their respective owners.
  9. 9. Key Elements of End to EndKey Hypothesis Key Elements u 60/70% of common processes u Build a common framework for across industries are similar comparison u Measuring Process Efficiency u Measurements focused on alone misses the real benefits Effectiveness and Efficiency u Driving real improvements u Huge potential impact of requires Process Expertise + combining skills, solves real Technology + Analytics + Insight business issues u Clients will require different levels u Implement in Modules, no “Big of interface at different times Bang” required Some Obvious Questions – Need An Expert To Answer Them 9 Confidential. All trademarks appearing herein belong to their respective owners.
  10. 10. Key Business Outcome Improvement Drivers End-to-End Efficiency Effectiveness Process Originations § Time to key in an invoice §Conversion rates on applications… ?Volumes § Cost per loan application §Cycle time to open a new customer account Bill to Cash § Collection efficiency % (Cash §Eliminate billing leakage collected / Total AR) §Days Sales Outstanding § Past due % Account § Invoices actioned on time §Paid on Time % Payable § Total AP cycle time §Vendor queries §# Vendor discountsu Insights – Technology only solves part of the problem: § E.g., only 40% of transactions in the Accounts Payable process are “first pass, straight through” § Typically only 5-10% of the end-to-end cycle time of a process is “value-added time”u The E2E approach also leads to higher employee engagementu Will facilitate the move from FTE-based pricing to outcome-based pricing models 10 Confidential. All trademarks appearing herein belong to their respective owners.
  11. 11. Our Learnings from work with multiple customers/processesu No one customer is Best-in-Class across metrics… pockets of brillianceu As wide a variation within a company as across companiesu Granular, practical insight is the key to continuous improvementu Technology is just one potential lever… process expertise, analytics and ability to drive behavior are often bigger leversu Unique roadmaps are required for each client based on their view on priorities, risk, investment and appetite for change Unlock 2X – 3X value, in addition to the traditional 30-40% process efficiency 11 Confidential. All trademarks appearing herein belong to their respective owners.
  12. 12. Thank YouContact InformationHarpreet Duggal – Senior Vice President & Business Leaderharpreet.duggal@genpact.com www.genpact.com 12 Confidential. All trademarks appearing herein belong to their respective owners. owners. Confidential. All trademarks appearing herein belong to their respective

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