SAP Transformation

Glyn EvansCorporate Director of Business Change

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The City– The largest UK local authority

– 1 million citizens, 30% minorities (>50% by ????)

– 391,000 households, 30% social housing

– Cradle of industrial revolution but suffered from decline inmanufacturing

– Reinventing itself around knowledge and service economies

Birmingham City Council

The Council– Inventor of modern municipal Government

– 120 councillors

– 40,000 non-teaching employees

– An annual budget of £3.5 billion

– 5000 customer facing staff

– Over 1000 locations - £1.4bn property portfolio

Our digital ambitions

ExternalInternal

Business transformation Digital Birmingham

Birmingham’s objectives

The world to be:– customer comes first

– managers and staff serveBirmingham people whereverthat is needed

– we solve people’s problems

– collaboration and decisionmaking asnear front line as possible

– we have excellent, cost effectiveservices

– we have high levels of jobsatisfaction

Council key outcomes:– Succeed economically

– Stay safe

– Be healthy

– Enjoy a high quality of life

– Make a contribution

– Raising our game

Delivered byBusiness Transformation – changing what we do

Organisational Development – supporting staff to do it

Business transformation objectives

Step-change in service quality

Improved efficiency

Increased job satisfaction

The challenge

Less than half transformationalchange programmes achieve their

objectives

Lack of leadership and engagement at senior levelsMethodological failuresInadequate resourcing (capability and capacity)

Service Birmingham overview

New joint venture company, Service Birmingham:– Formed April 2006

– Ownership approx two-thirds Capita, one-third BCC

– Staff trust to receive 5% of profits (limited to community and general staffdevelopment purposes)

Exclusive contract for the delivery and support ofICT infrastructure– Commitment to achieving top decile performance within two years

Non-exclusive contract for supporting business transformation withinthe CouncilTransformation projects enables by SAP and delivered by HCL-Axon

Secondment staffing model

Business transformation

A corporate programme of radicalservice redesign impacting on allbusiness areas

A key way of supporting thecorporate programme

9

Service Birmingham

What is Service Birmingham?

– A joint venture between BirminghamCity Council (BCC) and a consortiumled by Capita.

– BCC transferred their internal ICTand business transformation staffover to Service Birmingham at itsincorporation

– Service Birmingham is the preferredsupplier of BCC for theirtransformation work

Objectives the Joint Venture– To enable BCC to achieve £1bn

Savings over the next 10 years

– Become recognised as a provider ofworld class ICT and BusinessTransformation services

– Provide strong customer focus toenable Service Birmingham torespond to the Councils’ strategicand tactical needs

– Achieve social and economic targets

– Create 800 new jobs in a BirminghamBusiness Centre

– Develop a reputation as a partnershiprecognised for excellence

Business transformation programmes

Excellence in InformationManagement Working for the Future Excellence in People

Management

Corporate ServicesTransformation Customer First

Children, Young People &Families Adults

Housing Environment

Realising more than £2 billion of benefits (£1.424 billioncashable) over ten years for an investment of £591 million

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Corporate Services (CST)

CST will deliver key outcomes for the City:– radically improve the efficiency of finance and procurement services

• total benefits of £826m

– drive more consistent, efficient and effective management of 3rd party spend

– strategic framework for business and financial planning to improve resourceallocation

– simplify, optimise and standardise the accounting process

Based on SAP ECC, SRM, BI and PI TechnologiesHCL Axon SAP partnerIt was the “lead” transformation programme, first to “go-live” inOctober 2007500 staff involved in change workshopsOver 4,000 staff trained in SAP

SAPSRM 5.0SAP

SRM 5.0

cProjects /cFolders

cProjects /cFolders

3rd Party3rd Party

DocumentManagement

(Documentum)

DocumentManagement

(Documentum)

SAP Netweaver 2004sSAP Netweaver 2004s

ProcessIntegration (PI)

ProcessIntegration (PI)WorkflowWorkflow

SAP ERP ECC6.0SAP ERP ECC6.0

GeneralLedger

GeneralLedger Finance /

Controlling

Finance /Controlling Project

Systems

ProjectSystems Asset

Accounting

AssetAccounting

FundsManagement

FundsManagement Treasury

Management

TreasuryManagement Accounts

Payable

AccountsPayable

FI-CA(Contract

Accounting)

FI-CA(Contract

Accounting)

Sales &Distribution

Sales &Distribution

SAP BI 7.0SAP BI 7.0

BusinessIntelligence(reporting &analytics)

BusinessIntelligence(reporting &analytics)

CorporatePerformanceManagement

(SEM)

CorporatePerformanceManagement

(SEM)

IntegratedPlanning (IP)

IntegratedPlanning (IP)

SAPNetweaverPortal 7.0

SAPNetweaverPortal 7.0

Self-ServiceProcurement

Self-ServiceProcurement

PlantMaintenance

PlantMaintenance

ContractManagement

ContractManagement

MaterialsManagement

MaterialsManagement

GrantsManagement

GrantsManagement

SolutionManager

SolutionManager

TimeRecording

TimeRecording

TenderManagement

TenderManagement

SAP MDM 5.5SAP MDM 5.5

SRMCatalogue

Management

SRMCatalogue

Management

CST SAP application architecture

Customer First - The challenge

.

.

Simplicity: Now…

the more vulnerable and disadvantaged people who mostneed a service find it hardest to access what they want

Personal Service: Now…

satisfaction is currently 59% - we need to know what drives itto improve

Professionalism: Now…

inconsistency of response times, quality standards, data - ourbuildings are not welcoming, safe, accessible andconvenient

Efficiency: Now…

organising by service means we “process” customers manytimes over

Customer First - The vision

.

.

Simplicity: Imagine…

if the customer hadn’t been passed from pillar to post, and theycould easily access services using the method they prefer at aconvenient time

Personal Service: Imagine…

being able to tailor services to our customer’s needs, knowing whatdrives their satisfaction and how to resolve the causes of contactand complaints

Professionalism: Imagine…

if our staff delivered a consistent high quality of customer serviceevery time in a safe and welcoming environment

Efficiency: Imagine…

solving most of our customers problems there and then, at the firstpoint of contact, and being able to track enquiries through to delivery

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Customer First – The outcomes

Simple and convenientaccess to services

More transactionscompleted at firstpoint of contact

Trackingtransactions from point of

contact to delivery

Consistent & improvedstandards of customer

handling

Stronger culture ofcustomer focus

More proactive use ofcustomer information

Customer First will deliver thefollowing outcomes

Putting customers at the heart of everything we do

Go

Customers will be able to register and login to their secureaccount to manage their Council-related affairs

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Customer Login:Giving customers access to their

secure account to transact with the Council

ILLUSTRATIVE

Putting customers at the heart of everything we do

Once logged in, customers will access their personalhomepage with access to their transactions and statements

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Customer Home Page: Secure, personalised page for every customer

My homepagenavigation to keepyour personaldetails up to dateand view yourtransactions

1 click access totransactions,bookings, forms andstatements

Personalisedcampaigns targetedto the customer

Quick 1-click access tomost common services todrive channel shift, pre-populating forms withcustomer details

Go

ILLUSTRATIVE

Upgrade your account(by verifying youridentity) to accessmore secure services

Putting customers at the heart of everything we do

Clicking ‘My Requests’ allows customers to view their owntransactions submitted across all channels

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Customer Portal: Viewing your transaction history across channels

My homepagenavigation to keepyour personaldetails up to dateand view yourtransactions

1 click to view fulldetails of thetransaction

Easy to view statusand due dates foreach transactionGo

ILLUSTRATIVE

Putting customers at the heart of everything we do

1-click access to view and act on specific transactions,bookings and statements

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Customer Portal: Viewing a specific transaction

Details of thetransactionincluding status,service due dateand escalations

Easy access buttonsto Enquire, SendFeedback, Updateand Cancel atransaction

Ability to view fulldetails of originaltransaction

1-click access torelated transactions

Go

ILLUSTRATIVE

Customer First - Overall Architecture

BW/SEM

Finance Reporting& Planning

CRM &Telephony

SAP CRM

ServiceCatalogueService

Catalogue

BookingsBookingsServiceTickets

ServiceTickets

CustomerMaster

CustomerMaster

Web logicCitizen Portal

Registrationand

Authentication

Registrationand

Authentication

Applicationand Bookings

E-Forms

Applicationand Bookings

E-Forms

OnlinePayments

OnlinePayments

Cus

tom

er W

ebIn

tera

ctio

n

SAP Portals

Single Sign-on

Single Sign-on

Role BasedAccess to

Applications

Role BasedAccess to

Applications

XI - EAI

InterfaceManagement

InterfaceManagement

Legacy ApplicationsLegacy Applications

SAP ECCr

AccountsReceivableAccounts

Receivable

CustomerMaster

CustomerMaster

PaymentProcessingPayment

Processing

Bank RecBank Rec

‘One Account’‘One Account’

Fatwire

KnowledgeManagementKnowledge

Management

Telephony Con

tact

Cen

tre

and

F2F

Inte

ract

ions

CallroutingCall

routing

CallHandling

CallHandling

WorkforceMgt

WorkforceMgt

SAP MDM

SingleCustomer

Record

SingleCustomer

Record

Legacy ApplicationsLegacy Applications

Queue Mgt

Bus. ObjectsData Integrator

Customer First - SAP architecture

SAP CRM 2007

PI 7.0

SAP BI 7.0SAP Portals7.0

KnowledgeManagementKnowledge

Management

CollaborationCollaborationInteraction

Service OrderMgt

InteractionService Order

Mgt

InteractionResourcePlanning

InteractionResourcePlanning

MarketingSegmentationand List Mgt.

MarketingSegmentationand List Mgt.

MarketingCampaignsMarketing

Campaigns

ApplicationIntegration

ApplicationIntegration

ProcessIntegrationProcess

Integration

ServiceReporting

IntegratedPlanning

CustomerMaster andContacts

CustomerMaster andContacts

InteractionInstalled Base

Mgt

InteractionInstalled Base

Mgt

Campaigns StrategicScorecards

SAP MDM 5.5

DataGovernance

DataGovernance

DataConsolidation

DataConsolidation

DataHarmonisation

DataHarmonisation

Business ObjectsXI

ETLETL

Data ProfilingData ProfilingDashboards

SAP ECC

CustomerMaster

CustomerMaster

SalesSales

AccountiingAccountiing

Delivery skills – HCL Axon

Roles Avg Exp Key Skills/Experience

ProgrammeManagement

10 Yrs + Large scale, multi partner deliveryexperience.

SolutionArchitecture

10 Yrs + Complex SAP landscapes, with diverserange of legacy applications

Functional Design 7 Yrs + SAP CRM with J2EE design experience

Development 3 Yrs + SAP CRM, Java and Oracle Weblogic

Change 7 Yrs + Org change experience in public sector

Support skills

Support Level Key Skills

1st Generically skills advisors work across applicationto diagnose problems.Agent guidance helps resolve straightforwardqueries at first point of contact.Typically less than 3 mins per query.

2nd Application generalists resolve more complexqueries and perform complex diagnosis.Typically 3 mins +

3rd Applications specialists with configuration anddevelopment skills resolve complex queries thatrequire modifications to the underlyingapplications. 3 years plus experience in SAPconsultingTypically 20 mins +

Creating a consistent approach fortransformation

StrategicNeed Visioning

Phase 3 Phase 4 Phase 5 Phase 6 Phase 7

Identifying & PlanningTransformation

Transforming Services Realising Benefits

Programme & Project Management

TransformationShaping

&Planning

CommonDesign

ServiceCreation

&Realisation

Proving&

TransitionConsolidation Continuous

ImprovementStrategicOutcome

TransformationInitiation

InitiatingChange

Phase 2Phase 1Phase 0

Transforming Public Services

Reduce the cost ofdelivery and implementation

Ensures quality & consistencyacross the transformation

programmes

Provides a structured& professional

approach to transformation

Improves programmeplanning

Helps manage programme risk Adds rigour to programmecosting

Reduces rework &reinvention

Provides a repository forbest practice as it is developed

within the Council

Creating a consistent approach fortransformation

StrategicNeed Visioning

Phase 3 Phase 4 Phase 5 Phase 6 Phase 7

Identifying & PlanningTransformation

Transforming Services Realising Benefits

Programme & Project Management

TransformationShaping

&Planning

CommonDesign

ServiceCreation

&Realisation

Proving&

TransitionConsolidation Continuous

ImprovementStrategicOutcome

TransformationInitiation

InitiatingChange

Phase 2Phase 1Phase 0

Transforming Public Services8 Phases50 Stages500 Activities

– each activity has associated deliverable(s)

Supporting information– examples, templates, “How to”

– tools, techniques

– e-learning, website

Fully supported by Centre of Excellence– Independent quality assurance

– Integrated programme and project management

Placed in the public domain

glyn.evans@birmingham.gov.uk