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Presentation from the 14th Annual North American Shared Services & Outsourcing Week, 2010 To find out more about the 2011 event go to: www.sharedservicesweek.com
Citation preview
Shared Services
- The next Generation -
Dr. Franz Deitering, SAPGlobal Head of Business Development Shared Services Solutions
© SAP 2009
1. What is Shared Services? What is it not?2. Why Shared Services? - Drivers and Goals.3. Global Trends and Trendsetters in Shared Services4. How do I get to the Next Generation in Shared Ser vices?5. What are the next steps?
Agenda
Five Steps to Success
© SAP 2009
1. What is Shared Services? What is it not?2. Why Shared Services? - Drivers and Goals.3. Global Trends and Trendsetters in Shared Services4. How do I get to the Next Generation in Shared Ser vices?5. What are the next steps?
Agenda
Five Steps to Success
© SAP 2009
Shared Services – the Basic Ideas
“Shared Services is a service delivery model that enables organizations to apply economic principles of demand and supply to internal business processes.”
Shared Services enables an organization to:
� Consolidate efforts for delivering the same service s to different groups within an organization – economies of scale & competence
� Be more commercial orientated; measure SSC-customer satisfaction and competitive offering based on service products
� Utilize multiple delivery channels for services dep ending on thenature of the service, the recipient and the circum stances
Drive Efficient and Effective processes
in order to reach Operational Excellence
© SAP 2009
© SAP 2008 / Page 5
Selection of Shared Service Center Customers
© SAP 2009
Shared Services look at technology to continue their
success story in turbulent times
Shared Services enable companies to
Consolidate efforts for delivering the same services to different groups within an organization
Lower administrative cost by leveraging economies of scale
Adapt more flexible to growth and acquisitions
Improve the service to the business
Best Practices
Baseline performance of processes relevant for centralization
Harmonize and standardize business processes
Automate business processes via technology investments
Enable employees and business partners via self services and single-point-of-contact
Manage services effectively through a globally consistent service and operating model
Implement governance to internal client-provider relationship
© SAP 2009
What is better?
Internal Shared Services or external BPO Providers?
� Lower cost
� Better risk management
� Better process quality
� Economies of scale
� Process optimization
� Labor arbitrage
� Lighten asset base; ROA
Dec
entr
al
Sha
red
serv
ices
BP
O
Key value objectives Sources of value
Maximum level of value achievable (1)
Significant High Medium Low Negligible
(1) Based on typical client/provider. Note that in specific cases, the client might have comparatively higher potential to generate value than the provider
© SAP 2009
Other Business ServicesOther Business Services
Procurement Outsourcing & SourcingProcurement Outsourcing & Sourcing
Key aspects
� Ability to implement and operate business processes based on the SAP NetWeaver platform and the SAP Business Suite
� Certification standards (every two years) ensures high levels of technical expertise of SAP solutions and proven support capabilities
� Strong BPO-specific collaboration between provider and SAP throughout lifecycle of a BPO project
BPO Providers
Human Resources OutsourcingHuman Resources Outsourcing
Leading BPO Providers deliver Services
“Powered by SAP”
B2B Integration Real Estate/EMEA Newspaper Admin
© SAP 2009
1. What is Shared Services? What is it not?2. Why Shared Services? - Drivers and Goals.3. Global Trends and Trendsetters in Shared Services4. How do I get to the Next Generation in Shared Ser vices?5. What are the next steps?
Agenda
Five Steps to Success
© SAP 2009
Requirements of C-Level Executives
CEO/CFO/COO
Improve Cost Income Ratio
Decrease G&A Costs:� Vendor costs� Labor costs� System costs� Facility costs
Enable regulatory compliance
� Increased data accuracy and reliability� Improve Governance Model� Adopt more quickly to
changing regulatory requirements� Better Risk Management
Flexibility for growth and acquisitions
� Focus on core competences� Reduce share of
administrative work� Rapid post merger
integration
Improve Customer satisfaction
� Improve process quality� Perform benchmarking
and continuous improvement� Fulfillment of SLA� Perform customer
surveys� Easy-to-use self
services
Enable global simplification
� Pool process know-how� Drive global
standardization and cross-border delivery� Consistent messaging
for policies and inquiries� Increase operational
agility
Depth of integration
Processes and IT
Labor Mix
Scope
� Functional� Geographical� Organizational
� On-shore� Near-shore� Off-shore
� Harmonization� Standardization� Automation� Self Services
� Make (Shared, Non-Shared)� Buy (Business
Process Outsourcing)
Shared Services Value drivers
© SAP 2009
We’ve managed to reduce cost of some finance operations by as much as 30%,”says Mick Crowder, British Waterways’ head of shared services.”“
Business benefits Some benchmarks
� Lower process costs
� Increased transparency of business processes
� Economies of scale and scope
� Improved quality
� Strategic flexibility for mergers and acquisitions
Benefits from Shared Services in Financials
0.07
0.04
Cost of finance [% of revenue]
0.01
0.20.04
0.01
Accounts receivable
Customer billing
100% shared
Not shared
Source: ASUG Benchmarks 2006
Accounts payable
0.04
0.01
Collections
Page 12
2010 Global Business Services/Shared Services Performance Study@2010 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
The 2010 Global Business Services/Shared Services Performance Study included 198 organizations across various industries and geographies – the following is a partial list
Page 13
2010 Global Business Services/Shared Services Performance Study@2010 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Savings
5%
16%24%
10%
44%
AchievedPlanned
70% of SSOs plan to save 20% or more costs70% of SSOs plan to save 20% or more costs
21 to 40%41 to 60%>60% 11 to 20% 1 to 10%
60% of SSOs have saved 20% or more costs60% of SSOs have saved 20% or more costs
No Change
3%11%
18%
26%
9%
33%
2009
© SAP 2009
Benchmark Data Proofs Significant Cost
Savings in Shared Services Powered by SAP
Human Resources ProcurementFinance
Our Customers have Achieved Significant Benefits using Our Solutions
Tangible Benefits* % impact
Operating Cost
� Reduced Maverick Indirect Spend� Staff efficiency
3-5%
5-10%
Tangible Benefits* % impact
Operating Cost 25 – 40%
� Payroll� HR Cost per Employee� Improved recruitment costs� Improved process cost by
Employee Self Service
10-30%20-30%10-15%
14%
IT
Real-Estate
Tangible Benefits* % impact
Operating cost
� Increase office space efficiency
20-30%
Tangible Benefits* % impact
Operating Cost
� Reduced Integration cost� Hardware & Operations� Software Maintenance and
implementation
15-20%20-50%20-70%
Source ASUG benchmark
Tangible Benefits* % impact
Operating cost
� Accounts Payable� Accounts Receivable� Budgeting & forecasting� Cash management� Collections management� Credit management� Customer billing� Fixed asset management� General Ledger and
Finance Closing� Internal Auditing� Regulatory and compliance� Risk management� Tax accounting and
reporting� Treasury� Reduced DSO
- Working Capital Cost� Increased DPO
- Working Capital Cost
20-50%20-50%50-80%50-70%50-65%25-35%40-70%20-35% 45-75%
50-70%40-60%
40-60%5-10%
35-55%5-25%
5-25%
Function*Saving to peers
� Finance 49-61%
� Human Resources 16-49%
� Procurement 30-49%
� IT 8-39%
Overall Cost Saving Potential
© SAP 2009
1. What is Shared Services? What is it not?2. Why Shared Services? - Drivers and Goals.3. Global Trends and Trendsetters in Shared Services4. How do I get to the Next Generation in Shared Ser vices?5. What are the next steps?
Agenda
Five Steps to Success
© SAP 2009
© SAP 2008 / Page 16
The World is Getting Flatter
© SAP 2008 / Page 16
Page 17
State of Industry Play in 2009: Analysing Shared Services and BPO Trends in a Globalised and Turbulent World© 2009 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Companies target mainly optimisation through automation
19%
38%
30%
14%
0 - 25% 26 - 50% 51 - 75% 76 - 100%
Level of process automation in SSOFactors that have generated the most significant reduction in
labour and outsourcing costs
Source: SSON & The Hackett Group, 2009 SSO survey in G&A
Key initiatives underway in SSO Future outlook of SSO (five years from now)
Page 18
2010 Global Business Services/Shared Services Performance Study@2010 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
SAP is the most selected ERP vendor
62%
30%
18%
7%5% 4%
26%
63%
28%
11%
4% 3% 2%
28%
SAP Oracle PeopleSoft JD Edwards Lawson Baan Others
2009 2008
© SAP 2009
IT is a major driver of value generation
Typical cost savings achieved through SSC/BPO
Labor andrelated
IT
SW maintenance & implementation
Hardware & Operations
Software
Cost of pre-existing processes
* including cost of implementation project and transition, spread over deal duration
Drivers
~ 10%
~ 3%
~ 7%
~ 80%
Productivitygains
Reduced complexity
Total cost of outsourced processes*
IT
- 20%
GovernanceProvider Margin
- 30%- 30%
-20 to -70%-20 to -70%
-20 to -50%-20 to -50%
~ 0%~ 0%
Scale, Automation
Labor arbitrage
Reduction of customization
Consolidation of infrastructure (scale)
Skill, Best-in-class Processes
© SAP 2009
Big opportunity for Shared Services
HR
� Org. Change
� HR Admin
� Time Mgt
� Payroll
� Pensions
� Expatriate Mgmt
� Recruitment
F&A
� Accounts Payable
� Accounts Receivable
� Travel& Expense
� Vendor Requests
� General Ledger
IT
� Incident Mgmt.
� Infrastructure Mgmt
� Application Mgmt
Procure-
ment
� Fleet Mgmt
� Purchase
� Logistics
� Supply Mgmt
� Event Mgmt
� Sourcing
Facility
� Office Mgmt
� Property Mgmt
� Restaurant & mail services
� Relocation
� Infrastructure and technical facility Mgmt
MultifunctionalShared Services Organizations
Governance; Risk Mgmt; Compliance; Performance Mgmt ; SLA cockpit
Page 21
2010 Global Business Services/Shared Services Performance Study@2010 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Nearly half of organizations now have multi-functional SSOs
76%72%
58%55%
51% 52%
35%
24%28%
42%45%
49% 48%
65%
2003 2004 2005 2006 2007 2008 2009
Within individual functions Across several functions
© SAP 2009
1. What is Shared Services? What is it not?2. Why Shared Services? - Drivers and Goals.3. Global Trends and Trendsetters in Shared Services4. How do I get to the Next Generation in Shared Ser vices?5. What are the next steps?
Agenda
Five Steps to Success
© SAP 2009
Shared Service Automation
Shared Services in the future
� Elimination of manual tasks through process automation
� SAP Shared Service Framework
� Standardization of transactional processes
� Governance of client relationship
Shared Services in the past
� Cost reduction frequently achieved through labor arbitrage and resource pooling
� SSC’s perform services by working on multiple already existing systems
� Process automation not in SSC’s realm
Focus on cost reduction (Lift &
Shift approach)
Focus on automation &
productivity to reduce cost
Multifunctional SSO
One Shared Service PlatformBusiness Process
Automation
Maturity
Val
ue
crea
tio
n
Lift & Shift
Off-Shoring
© SAP 2009
Organizational and Communication Structure
Tier 2Specialists
Tel
epho
ne
E-m
ail
Tier 3COE/BusinessPartner
Requests
Communication channels
FAQ
Por
tal K
iosk
Mob
ile S
elf S
ervi
ces
Due
t Allo
y
Tier 1Ticketing, RoutingProduct Catalogue, SLA
Generalists
The SAP Shared Service Framework bundles, structure s and routes incoming requests, which leads to efficient case management, process transparency and better service quality based on a product catalogue with p redefined service level agreemets
SSFBusiness Suite
Tier 0
Sca
n
Bus
Com
Mgm
t.
Fax
Ado
be
© SAP 2009
8
Interaction and Service Mangement
Shared Services Delivery Platform
(2) COE: center of excellence
HCM shared services
Procurement shared services
Financial shared services
Bus
ines
sev
ents
Bac
k en
d 1
Bac
k en
d N
Corporate services
Intranet portalAutomation engines Interaction center
Governance and Operations Cockpit
Process AggregationAutomation Engines
12
3
© SAP 2009
Solutions for Shared Services
SAP Shared Service Framework (SSF)
The SAP Shared Service Framework focuses on :
1. Communication and interaction between Service Center, clients, suppliers and employees� Self services rendered via one self service portal� Predefined self-service scenarios� In- & outbound contact center scenarios supporting response on first contact
2. Aggregation of process execution at the Shared Services Operation� Shared processes can be executed on and for multiple backend systems� Aggregate view of applicable data across corporate landscape
3. Shared Service Center analytics and governance support� Measurability of delivery performance � Operations dashboard
4. One coherent infrastructure for multifunctional Shared services
Shared Services Framework
Product Catalogue; Multifunctional back-end capability; IT-Architecture
Portal Solutions; additional Self Services; Processes and Forms; …
SLA Cockpit; track performance and enable compliant operations
F&A HR ITProcure-
ment
Real-
Estate /
Facility
Enablers
Enablers
Enablers
Shared ServicesProcess Management
© SAP 2009
SAP Shared Service Framework (SSF)
The SAP Shared Service Framework is the technical a nd business platform for order based service management powering multifunctional S hared Services Organisations
1. Communication and interaction between Service Cente r, clients, suppliers and employees
� Relevant applications are augmented with launch-points facilitating in- & outbound contact center scenarios for most-frequently rendered shared processes. Aim: response on first contact, efficient follow-up via the Shared Services team.
� Central inbox where agents access their workload optimized for Shared Service Process Management
� Context specific search capabilities and context information about caller
� Pre-defined service scenarios leveraging Biller Direct and the Service Center
2. Aggregation of process execution at the Shared Serv ices Operation
� Relevant applications are enabled to connect to several backend systems (FSCM Collections, Dispute, Credit Mgmt., Biller Direct, Inhouse-cash)
� Support for heterogenous system landscapes
� Aggregate view of applicable data across corporate landscape
3. Governance and Operations Cockpit
Measure and manage Service Level Agreements. Controlling and managing the SSO like a business.
4. One coherent infrastructure for multifunctional Sha red services
Contact center technology spans HR and Finance and sets foundation for further functional streams to be included
5. Master Data handling in multiple backend landscape s
Provisions for data handling in non-harmonized master data environments. Harmonized master data are desirable
6. Customer feedback, outbound campaigns
Product related feedback, target group oriented campaigns
7. Product Catalog
SLA based service products can be categorized in a product catalogue and can be priced and charged
© SAP 2009
Enablers for Shared Service DeliverySAP Shared Service Framework
Provides Service Experts with the tools required to respond fast and provide quality responses to questions from customers, suppliers and internal users
• Customer History
• Multi-channel support
• Computer Telephony and Dialer integration
• Transaction launch pad
• Agent’s inbox
• Process Management Framework
• Routing
• Email Response Mgmt
• Knowledge Tools
• Customer Feedback
• Campaigns
• Products, Sales, Billing
© SAP 2009
SAP Solutions relevant for Shared Services
Corporate servicesProcurement
shared servicesHCM
shared servicesFinancial
shared services
SAP product available
SAP product available with future releases
Future focus
Partner product available
Partner product available with future releases
Collaborative business map available
Sxx, Vxx, Bxx SAP product and service Pxx Partner product
For more information see: http://www.sap.com
Shared services process mgmt.
� Shared Service Framework
� Process flow analytics
Service level mgmt. cockpit
� Invoice mgmt. OCR option
Outbound doc. handling
Interactive Forms
Duet (information worker)
� NetWeaver Master Data Management.
� NetWeaver Exchange Infrastructure
� Bus. comm. mgmt. (CTI and WICOM)
� Document mgmt.
Productivity Pack by RWD
� Business Workflow
� NW Identity Management
� Resource mgmt.
� Accounting interaction center
� General ledger
� Accounts payable
� Invoice management
� Supplier enabling (biller direct pay-side)
� Accounts receivable
� Credit management
� Collections management
� Dispute management
� Customer enabling (biller direct sell-side)
� Intercompany reconciliation
� Intercompany processing
� In-house cash
� Bank-Communication Mgt
� Inventory accounting
� Fixed asset accounting
� Tax accounting
� Treasury & Risk Mgt
� Financial Clocing cockpit
� Financial statements
� Tax management
� SSC dashboard analytics
Supplier connectivity
� Employee interaction center
� Payroll and legal reporting
� Time and attendance
� HCM processes and forms
� Benefits management
� Employee administration
� Recruiting
� Enterprise learning
� Employee Self-Service and Manager Self-Service
� Kiosk Systems
� SSC dashboard analytics
� Procurement interaction center
� Requisitioning
� Purchase request processing
� Purchase order processing
� Trading contract management
� Receiving
� Financial settlement
� Manage catalog content
� Managing compliance
� Supplier collaboration
� SSC dashboard analytics
� Travel management
� Real estate management
� Enterprise asset mgmt.,spec. IT help desk
� Environment, health, and safety compliance management
� Global trade services
Financial Process Steps in FI Backend
SSF generates value by integrating
communication and by optimizing execution
Autom. CreateService Requestsin SSC worklist
SSC updatesrelevant fin. data
/documents
Restart financial task(Payment run)
SSC workson servicerequests
ExecuteAP Process -Payment Run
ExceptionsPayment
run
SSC solvesissue, delivers
service
Vendor calls
Agentreceives
call
Vendor asksfor invoicesettlement
Agentinformsvendor
Vendor ends call
Communication Process Steps in Shared Service Frame work
Vendor: When will my invoices get paid?
Accountant : Bank Data are missing in vendor master data!
© SAP 2008 / Page 31
Account Identification
New search attributes Company Code and Back-End Client (for basic multi
back-end enablement)
Confirmed partner list: allows to confirm multiple
partners and to adjust their partner function
Requesting Service out of FI transactions
Example: Payment Run
Button„Service Request“
to display automatically created service
requests and to request service manually
Financial Correspondences in Shared Service
Framework
Customer & Vendor Fact Sheets
Self Services portal
Financial Self Service Center
Service Map Index Most Frequently Used
Related Links
Link 1
Link 2
Link 3
Link 4
Link 5
Link 6
Link 7
Posting RequestsAdjustment Posting within COFinancial Document Posting
Budget/Change TransferCustomer Credit Posting
Information RequestsCustomer Information
Vendor InformationPayment Status
Credit Limit InformationPersonnel File
Dispute Case Monitoring
Directory
Master Data Service RequestsAsset – create/change
G/L Account – create/changeCost Element – create/changeCost Center – create/changeProfit Center – create/changeInternal Order – create/change
Project– create/changeWBS Element – create/change
Customer Master Data – create/changeVendor Master Data – create/change
Financial Document Posting
Internal Order – create/change
Project – create/change
Request Payment Status
Cost Center – create/change
Budget/Change Transfer
My Change RequestsMy Change Requests
Financial Self Service Center
Service Map Directory
Asset RetirementDepartment responsible requests an asset retirement by scrapping
Budget/Change TransferBudget responsible managers can request to transfer budget between internal orders in his area of responsibility
Cost Element – create/changeLocal finance department can request a newcost element or changes in existing ones
Cost Center – create/changeUpdate of cost centre is only allowed for cost centre responsible person
Change /Budget TransferBudget responsible managers can request to transfer budget between internal orders in his area of responsibility Explanation Text …
Credit Limit InformationSales rep. /account manager requests an update of the current credit
Customer Credit PostingSales responsible can request credit posting for their customers
Customer Master Data –create/change
Sales representative from local department acquire a new customer or change general data of his customer
Dispute Case Monitoring Sales/shipping department checks existing disputes
GL Account – create/change Explanation Text …
All | A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Find: Go
Index
Self Services portal
Most Frequently Used
Related Links
Link 1
Link 2
Link 3
Link 4
Link 5
Link 6
Link 7
Financial Document Posting
Internal Order – create/change
Project – create/change
Request Payment Status
Cost Center – create/change
Budget/Change Transfer
Self Services portal
Request Cost Center Change
Self Services portal
Request Cost Center Change
Self Services portal
SAP Biller Direct Buy side
News BS2010:
� Configurable Status Display of Vendor Invoices (Parked, Blocked for payment,..)
faciliates integration with SAP Invoice Management by Open Text
� Creation of Service Request facilitates communication with Shared Services
Center
Self Services portal: Collaboration between
Supplier and Shared-Services Center (1/2)
1. Vender sends inquiry to buyer e.g. inquiry for parked invoice.
1. Vender sends inquiry to buyer e.g. inquiry for parked invoice.
2. Shared-Services Center agent process vendors’ inquiries with CRM Interaction
Center.
2. Shared-Services Center agent process vendors’ inquiries with CRM Interaction
Center.
SSC Agent
Supplier
Self Services portal: Collaboration between
Supplier and Shared-Services Center (2/2)
3. Shared-Services Center agent replies the solution to supplier.
3. Shared-Services Center agent replies the solution to supplier.
4. Supplier get the feedback and status via Biller Direct.
4. Supplier get the feedback and status via Biller Direct.
Supplier
SSC Agent
© SAP 2008 / Page 42
FSCM integration to SSF
Travel Management Integration to SSF
Access to the relevant backend data has been
the missing link in SLM projects
Backend LoB1 Backend LoB2 Backend LoB3
Extractors
Service Level Management Application
KPI Calculation, Visualizatione.g. Digital Fuel
Service Flow
Business logic and process steps
Finance KPI enablement
� Number of Asset Master Records� Number of scrapped assets� Number of sold assets� Number of Asset Transfer’s (Intra- and Intercompany)� Number of asset adjustment requests� Number of asset problems reported
� Percent accounts payable errors
� Suppliers submit invoices electronically
� Percent of electronic supplier/vendor invoices� Days payables outstanding
� Process Cost per Invoice
� Invoices per FTE
� Process Cost as a percent of revenue
� Percentage of invoices supported by Purchase Order -By volume
� Percentage of invoices supported by Purchase Order -By volume
� First pass invoice yield
� Intercompany on time payments
Subject to this specification is the data extraction interface for the base-date required to calculate the KPI. The KPI calculation and dashboard tool itself is not part of the delivery specified here.
Finance KPI‘s for which SAP plans to enable the base-data extraction (overview)
� Total number of GA transactions� Days to close� Days after month-end close that it takes to report
distribution and other key accounting reports� Process Cost per Journal Entry� Average duration per posting request� Posting time during month end closing
� Percent billing errors� Percent electronic billing� Process Cost per Transaction� Customer Invoices per FTE� Labor Cost as a percent of revenue� Process Cost as a percent of revenue� FTE Count per Billion of Revenue� Customer Bills per Customer Remittance� Customer Bills per Customer� Collections Contacts per FTE� Collection contacts per customer
17
Nicht zugeordnete Belege
Beleg
Vorschau
1/2 2/21/2
Nicht zugeordnete Belege Vorschau
1/2 2/2 2/2
Beleg
Optional, offen: rechte Maustaste & Spesenart
Beleg
E-invocingsupport
Multi-BackendSupport
Status infovia
Biller Direct
OCR Option for SAP InvoiceManagement
Payment
SAP Invoice Management
Invoice Recognition
Invoice Processing
© SAP 2008 / Page 48
DocumentScan
e.g. SAPArchiving -Enterprise
Scan
SAP
SAP
Non-SAP
FAX
Paper
EBPP
Pay
ERP (FI/AP)
e.g. SAP Archiving by Open Text
Document Archiving & Viewing
SAP Invoice Management by Open Text
Version 5.2 enhancements for Shared Services Framework
EDI
Automated reconciliation and posting
© SAP 2009
HCM Service Delivery with Self-Services from SAP
Empower your Workforce to Ensure Data and Process Transparency
© SAP 2009
Choose the process
Choose the service
Enter the data
HCM Service Delivery with Self-Services from SAP
Process and Forms: Automation Across Multiple Roles
Choose the employee
Services initiated by any user: manager, employee, and decentralized HR
© SAP 2009
Service Level Management motivation:If you can’t Measure you can’t Manage!
� How can I prevent and avoid problems?
� How do I manage business SLA’s & KPI’s?
� How can I baseline and benchmark?
ServicePerformance
Drive Service Quality
� How do I allocate costs to business units based on the relevant approach to usage?
� Where are services costs compared to budget? by service? by customer?
� How do I validate my service invoice?
Service Cost
Track, Control and Allocate Costs
ServiceCatalog
� What business and IT services are available?
� What is the price and quality for each service?
� Who is using what service?
Manage Service Offerings and Usage
© SAP 2009
Governance Framework Service Level Management
ServiceFlow is a certified solution by SAP‘spartner Digital Fuel.
Provides Shared Services operation managers with to ols and insights to manage delivery along Service Level Agreements and defined KPI‘s. Helps minimize delivery cost while maximizing client satisfaction
� Dashboard with actual performance vs. Service Level Agreement
� Base-data drawn from the SAP transaction system
� Drill-down to organization, processor and item(s) causing the delivery performance degradation
� Prediction of Service Level adherence and impact on financial topline (penalties, kickbacks)
� Near real-time alerting of pending service level adherence issues
� Effortless online Service level reports to clients
xCelcius vizualization of Business Intelligence report Adobe and xCelcius vizualization of BI-report
Standard SAP BI Service Transactions overview report
© SAP 2009
Platform considerations for Shared Services
Organizations and Business Process Automation
Shared service center Internal clients served by the SSC
Old SAP
Non-SAP
� Defined segregation of tasks� Service delivery platform owned by the SSC� Automation engines decided or implemented by the SSC� Communication mechanisms with internal and external process
constituents� Interfaces to operate across heterogeneous systems
Automationengines
Automatedservice
Self-serviceportal
SAP ERP
� SAP enables shared services to offer valuable servi ces even in heterogeneous system landscapes
© SAP 2009
1. What is Shared Services? What is it not?2. Why Shared Services? - Drivers and Goals.3. Global Trends and Trendsetters in Shared Services4. How do I get to the Next Generation in Shared Ser vices?5. What are the next steps?
Agenda
Five Steps to Success
© SAP 2009
What are the next steps?
“Vision without
execution is
hallucination.”
Thomas Edison
© SAP 2009
Discovery Evaluation OperationsImplementation
SAP Consulting supports your company in all
phases of the Shared Services Project
Create VisionAnalyse Potential
Create Business CaseEvaluate Feasibility, Benefits, Costs and
Risks
Create the design Realize and migrate services
Improve continuously
Confirm that Shared Services
merit further investigation
Confirm that it is viable to implement shared
services
Develop the solution design
Develop change plan
Establish pilot
Migrate Services
Stabilize, Optimize and Evolve Shared Services
Operations
� Develop strategic business rationale� Position
Shared Services as a key element of the trans-formation strategy� Define High
Level Scope
� Identify Baseline� Define Operating
Model� Define Service
Delivery Model� Select Location� Review IT landscape� Define Scope and
Process Cuts� Create Roadmap
� Organization Design� Governance Model� Solution Design� Service Management
Framework� Pricing� Communication Plan
� Prepare target environment� Plan and implement
migration� Hand over to
operations
� Transition phase ends� Monitor service
quality� Stabilize target
environment� Implement
continuous improvements� Evolve Shared
Service organization
Boa
rd p
rese
ntat
ion
1 month 3 months 12 months continuously
© SAP 2009
� HR Operating Model
� Service Delivery Model
� SSC organizational structure
� Location
� Service Level Agreements
� Governance model
� Legal form
Employee Interaction CenterInquiriesOrders
KnowledgeDatabase
DigitalPersonnel File
Scanning
Generalist1st Level
Specialist2nd Level
Expert3rd Level
Employee PortalSelf Services
Phone
Fax
Core ERPe.g. FI-AR, HCM
100%
10%35%
5%
50%
CorrespondenceTool
Adobe Inter-active Forms
Employee Interaction CenterInquiriesOrders
KnowledgeDatabase
DigitalPersonnel File
Scanning
Generalist1st Level
Specialist2nd Level
Expert3rd Level
Employee PortalSelf Services
Phone
Fax
Phone
Fax
Phone
Fax
Core ERPe.g. FI-AR, HCM
100%
10%35%
5%
50%
CorrespondenceTool
Adobe Inter-active Forms
Four action areas are common for Shared
Service projects to reach the full benefit
Organization People
� Change Management
� Communication
� Knowledge creation and transfer
� Business Simulation und Training
� Roles and Skill profiles
� Personnel adjustment
Processes
� Cost Baseline
� Process scope and interfaces
� Harmonization and standardization
� Process documentation
� Process targets and parameter
� Pricing
� Benchmarks
IT
� IT Architecture, IT application landscape
� Employee/Accounting Interaction Center
� Scanning, Workflow
� Knowledge base
� Self Services
� Automation
� SAP CoE
SAP Consulting's great experience and know-how in a ll of these areas makes it the ideal partner for Shared Service projects
© SAP 2009
© SAP 2008 / Page 58
Selection of Shared Service Center Customers
© SAP 2009
The Bottom Line
The ability to control and anticipate� Increased control of processes across the entire company
� Supports governance of service provider-consumer relationship
� Allows for better decision making based on comprehensive insight
Automation powers shared services transformation� Automates labor-intensive admin processes
� Frees line operations from administration work
� Helps F&A, HR, and others functions become a strategic partner
State-of-the art shared services automation platfor m� Architecture enables leveraging economies-of-scale
� Automation improves efficiency in administrative processes
� Shared Service Framework and self-services improve service experience
© SAP 2009
THE BESTTHE BESTTHE BESTTHE BEST----RUN SERVICES RUN SAP RUN SERVICES RUN SAP RUN SERVICES RUN SAP RUN SERVICES RUN SAP
Page 62
2010 Global Business Services/Shared Services Performance Study@2010 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
The 2009/10 Global Business Services Performance StudyHypotheses to test….
Back Office Service Delivery models……
� Are becoming increasingly differentiated – increasing importance of Centres of Excellence / Expertise,
Helpdesks to complement ‘traditional’ transaction processing
� Have increasing levels of components delivered by third parties. The appetite for outsourcing elements of
service delivery continues to grow despite the current environment – outsourcers will move work to where it
can be most effectively and acceptably delivered
� Are substituting off-shoring of transactional, paper-based processes with automation. Offshoring paper
based transactional processes in order to gain wage arbitrage benefits is increasingly a worse option than
eliminating paper through automation
� Are moving from multi-function to leveraged services. Service delivery is moving beyond services silos to
Global Business Services. Functional solutions are becoming more integrated driven by enhanced benefits
� Are moving beyond the transaction. Where once only World Class shared services had moved into non
transaction work, a much broader population are moving beyond the transaction
� Are becoming more commercial. Increasing numbers of back office models are becoming more ‘arms
length’ through charging for their services and moving away from cost centre models
� Are becoming more global. Organisations are moving beyond regional back office solutions to global
solutions – with Global Business Services as the enabler
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2010 Global Business Services/Shared Services Performance Study@2010 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Executive summary – shared services today is not the same as shared services 10 or even 5 years ago
Shared Services . . .
� Are becoming more strategic. ‘Link to strategy’ is the fastest growing driver for shared services
� Are no longer just about cost. Effective service delivery is now as important as improving
efficiency.
� Form part of an overall Service Delivery Model… – increasing importance of Centers of
Excellence / Expertise to complement ‘traditional’ transaction processing model
– Over three quarters of WC shared services have COE versus just over half of peer group
� …elements of which are provided by others. The appetite for outsourcing elements of service
delivery continues to grow
� Are driven by automation. Transactional shared services are seeing a step change in
productivity through automation reducing exceptions and creating the capacity to take on non
transactional work. The backbone of this is movement towards a single ERP provider.
� Are increasingly run across functions. Functional solutions are becoming more integrated.
� Are moving beyond the transaction. Where once only world-class shared services had moved
into non transaction work, a much broader population are moving beyond the transaction
Page 64
2010 Global Business Services/Shared Services Performance Study@2010 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
The G&A Service Delivery Model is at the heart of G&A strategy
G&A Service Delivery Strategy
Service Delivery Model
Organization
model
Skills and talent
requirements
SDM
Components
Functional
process
design
Service
placement
Enabling
technology
architecture
G&A
governance
model
Process
sourcing
model
A strategy for what work is executed where, and by whom, and the benefit
Service Delivery
Transformation
Build Execution
Capabilities
Develop
Implementation
Roadmap
Service
Delivery Strategic Plan
Efficiency &
Effectiveness Goals
Design &
Operating
Principles
Organizational
Capabilities
Validate
Organizational Capabilities
Page 65
2010 Global Business Services/Shared Services Performance Study@2010 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Achieving an Optimal Service Delivery Model (SDM)The 7 components of the SDM
Organization Model
Skills and Talent Requirements
SDMComponents
Service Placement Process
Sourcing Model
Organizational
entities, structure
and reporting lines
for service delivery
Defined roles and responsibilities and
how decisions are to
made related to
service delivery
How and where
processes and sub-processes are
sourced
Processes, exception
handling rules,
mappings, etc. associated with
functional roles and
responsibilities
Architecture of the
technology platforms required to support
service delivery Skills needed to deliver
and successfully transform services
Clear understanding of
which activities and
processes are to take
place where
Top management
participation
Steering committee
effectiveness
Skills in G&A functions and business operationsFormal training and skills development opportunities
Retention of top performers
Automation
Online Self Service accessOnline and web access
DigitizationLevel of IT and systems
integration
Shared services (SSCs)
Centers of excellence
Work done at BU level
BU-level standards
Enterprise-wide
standardsLocal standards
Decision-making
effectiveness
In-house versus outsource
Onshore versus offshorePhysical versus virtual
6
2
5
1
GovernanceModel
7
EnablingTechnologyArchitecture
4
FunctionalProcessDesign
3
Page 66
2010 Global Business Services/Shared Services Performance Study@2010 The Hackett Group, Inc. All rights reserved. Reproduction of this document or any portion thereof without prior written consent is prohibited.
Technology solutions continue to enable SSO success2009
29%
38%
58%
33%
65%
48%
34%
35%
71%
70%
53%
53%
60%
60%
60%
60%
60%
73%
73%
87%
Intercompany reconc iliat ion tools
Self-service (front end)
Automat ic matching & paymentallocat ion tools
Digit izat ion (digital imaging)
ERP
Intranet
KPI Dashboard and SLA tool
Call center tools
Imaging / Scanning
Workflow
Peer Group World-Class
Q. Which tools have provided the greatest benefits
© SAP 2009
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