Credit Matters VIII · Levers of SS/GBS Success 1. Low-cost sourcing 2. Simplification & Standardisation 3. End-to-End Process enablement and Ownership 4. Task Assessment framework

Be Passionate

GBS & Shared ServicesBurning down the House

DAN FRENCH – CONSIDER SOLUTIONS

Credit Matters VIII Discovering DNA 2.5

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This Session

• Journey so Far• The Shift to Digital • The Burning “House” – Imperatives & Expectations• The Digital Advantage & Intelligent Automation• The New “House” - beyond Shared Services & GBS• Q&A

© 2019 Consider Solutions All rights reserved

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World Class Finance

World Class

Risk

Man

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ess T

rans

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Fina

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plia

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Global Influences


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The Journey so Far

• “Lift & Shift”• 1990’s

• Single Process SSC• Centralisation• Transaction & Headcount focussed

• 2000’s• Outsourcing• Multi-function GBS• India plus

• Optimisation• 2010’s

• Global Process Ownership• Process and CoE matrix• Integrating multi-function, -source, -location Global Business Services model


“Productivity benchmarks have steadily improved”

6 © 2019 Consider Solutions All rights reserved


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Acquire Service Provider

Transformation is not primarily about Technology

ProposeService

Commit Service Provider

Commit & ChargeCustomer

Pay ServiceProvider

Locate Customer

Select Service Provider

Acquire Customer



Executive Stakeholder Demanded Outcomes of SS / GBS

Direct Cost Reduction • FTE reduction• Standardisation• Shortening cycle time for internal customers (Buyers et al)• Improving cash collection, cashflow managementImproving Business Unit Experience• “Making Finance Easier”• Cycle time and cost reductions in the Business UnitsEnhanced Risk Management, Control & Compliance Flawless Issue Resolution Preserving process knowledge (that was formerly in business, now in SS/GBS)


Aspirational/Desirable Outcomes of SS/ GBS

Enhanced Reputation as value creator as well as cost reducer

Centre of Excellence (CoE), with expertise to optimise and automate

End-to-End Business Process CollaborationTalent Pipeline for the entire business


Levers of SS/GBS Success

1. Low-cost sourcing 2. Simplification & Standardisation3. End-to-End Process enablement and Ownership 4. Task Assessment framework for process/task automation5. Automation (ERP, RPA, niche process applications and Cloud apps) 6. Talent & Skills 7. Business Partnering, focus on customer’s customer, engagement, interest, value, “Listen but Guide” 8. Analytics/Action Oriented Insights for better decisions, better business collaboration, better outcomes 9. Staff Engagement 10. Executive Support & Understanding 11. Organisation Structure


Clustered & Prioritised

A.Analytics, End-to-End Process enablement & Business Partnering (3,7,8) - 42%

B.Simplification, Standardisation, Assessment & Automation (2,4,5) – 30%

C.Staff Engagement, Talent & Skills (6,9) - 14%

D.Organisation & Executive Alignment (10,11) – 14%


Interactive Poll – Your Current Shared Services / GBS Reputation

A.Low Cost ProviderB.Standard Service Provider C.Centre of Business ExpertiseD.Business Value Creator

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Procurement

HR

Operations

Finance

HR

ERP BI

ERP 2

Global Process Ownership (GPO) as a value-creating strategy



“Customer to Cash”

DemandGeneration

Customer Engagement

Compete &

ContractOrdering Fulfilment Settlement

Market to Contract Order to Cash

Customer to Cash

Marketing Selling Cash

SalesMarketing

Supply Chain

Legal

Operations

Finance Collections

Shared Services/GBS

TreasuryIT

Strategy

Delivery

Service Delivery


“Source to Pay”

Demand Sourcing Contracting Ordering Fulfilment Settlement

Source to Contract Purchase to Pay

Source to Pay

Source Buy Pay

ProcurementBusiness

Supply Chain

Legal

Operations

Finance Payables

Shared Services/GBS

TreasuryIT

Category Management

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Navigating differing perspectives & performance measures



Global end-to-end Process focus is key to Value

Capability & SkillsEngagementCommunicationUnderstandingCollaborationShared VisionCo-ordinated ExecutionOwnership?


Interactive Poll – Where are you on the Global Process curve?

A.No Real Focus yetB.Shared Services scope onlyC.“Global Process Ownership” in name but not in practice D.We are recognised as THE facilitators of global, end-to-end process collaboration

and co-ordinated execution

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“Burning Down The House” . . . . Imperatives & Expectations

• Global Process simplification for business and the consumer• End-to-end process transformation vs ”stage optimisation”• Continuous Improvement – no “one hit wonders”• Aligning/combining process and digital• Driving change beyond SS/GBS, from cost to value• Embracing “front office” functions• Speed & Scale of Change

• Data driven insight & real-time decision making• Robotics, RPA• AI, Machine Learning

• Learning from ‘Digital Natives’ and Tech companies . . .


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“Burning Down The House” . . . . Challenges

• Is our consumer facing business model right for the future?• Is our operating/execution model right for the future?• Have we genuinely ‘cracked the code’ on global processes?• Do we have clear ownership, accountability and alignment?• What is the new role of Shared Services?• Who is the customer?• Is customer focus a winning strategy?• Do we have a smart, self service data strategy?• Aligning Model, Process & Digital

• Model & Process first, but technology is always more alluring . . . • Digital transformation is a $1.7tn industry but 70% fail . . . .


The Digital Advantage & Intelligent Automation


Plenty of Investment Buzz!

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RPA / “intelligent Automation” Experiences to Date

• Take Advantage!• Big efficiency gains for the right tasks• Cheaper and faster than ERP extension, integration• BOTs don’t get bored, tired or lose concentration – quality & compliance benefits• Integrates technology gaps in end-to-end processes• Eliminates frustrating tasks from valuable people, a more appealing workplace

• Take Care!• 400% task productivity increase may not be significant in the end-to-end process• Development & Operation need control, oversight and governance • BOTs have no judgement and will repeat errors at scale – design & test well!• A lot of moving parts/points of failure, ERP updates/upgrades?• Powerful, auditable, rules-based automation• Without detailed, task level, standard operating instructions, don’t try to automate• “Automation makes bad worse, faster”• “Elimination is the best automation”


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What about the role of AI?

Courtesy: Neota Logic


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Applying ML in the Real World - Diagnosing Cancer


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The AI Classifier found 92.5% of cases!

Diagnosis by AI

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr


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But the Human Pathologist was better – 96.6%!

Diagnosis by Human Expert

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr


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But AI supporting humans is even better! 99.5%

Diagnosis by Expert Human AND AI


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“Humanistic AI” is a key perspective . . .

• AI in itself is not a ‘doomsday scenario’

• Not just about eliminating jobs

• Effectiveness is every bit as value-creating as Efficiency• “How AI can enhance our memory, work and social lives”

• Check out Dr Tom Gruber’s TED Talk . . . • Co-creator at Siri• Product Design Executive at Apple• Chief Scientist & Co-founder at Consider Solutions


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The Balancing Act


Efficiency(Best Execution)

Effectiveness(Best Decisions)

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Up to

80%

of finance effort is spent acquiring and preparing data for reporting, leaving as little as 20% for value added analysis and decision making


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A World of Data Uncertainty



Traditional, and even “Agile”, responses are too slow . . .

Requirements

Planning

IT Facilitation

Configuration

Results

Cycle TimeX


“Uberization” of Insight – Speed is a Necessity

Data & ProcessInsight

“Connect & Go”

Intelligent, process-aware services

Nuggets of Gold without the “Blood, Sweat & Tears”


Fast Insight drives Global Process Alignment & Collaboration

Capability & Skills

Engagement

Communication

Understanding

Collaboration

Shared Vision

Co-ordinated Execution

Performance Improvement & Value Creation“Data Driven Decision Making”

Performance Measurement (Metrics & KPIs)

Detailed Process Execution Insight (Continuous Data)

The New “House”Beyond Shared Services & GBS

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The New House

• It’s not just about the “customer” but the “consumer”• Be very clear on the future business model• Is there a need for “legacy” and “future” separation?• Look beyond ALL silos – efficiency & effectiveness beyond• Embrace Automation – explore, learn, strategize and exploit new ways of adding value

to the consumer• Combine Process and Digital• Dive into Data – fuel the processes, analyse the nuances• Focus on Talent – what is the future and what skills do we need to acquire, develop

and retain


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The Future is Not Just Robotic but Intelligent, Dynamic and Connected• Consumer Imperatives

• Convenience • Speed • Quality• Reliability• Cost

• Enabling Imperatives• Consumer experience• End-to-End process • Digital end-to-end, seamless• Smartly applied smart technology• Data driven decisions


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The New “House” - Future Operating Model – Platform Based?


Customer Experience, Customer Journey

Business Capability (“Soup to Nuts” Process, Digital End-to-End)

Hardcore Cross-Capability IT Platforms

Derivation: McKinsey

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The Technology Adoption/Disappointment Cycle


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Lessons along the road

“RPA is about fixing the potholes in the road. Do not confuse it with building the new highway”

Steve Gordon, VP Global Service Operations – BD

"Don't trade the entire toolbox for one screwdriver“

Sanjay Srivastava, Chief Digital Office – GENPACT

“One of the myths in AI is that you can AI your way out of something you don't understand”

Anon

“The new technologies are helping us think differently, but in isolation they aren’t the answer”


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The Shape of our Talent will help . . .

Courtesy: Jason Yip


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No “One Hit Wonders” - It’s a continuous journey . . .

“We always hope for the easy fix: the one simple change that will erase a problem at a stroke. But few things in life work this way. Instead, success requires making a hundredsmall steps go right - one after the other, no slipups, no goofs, everyone pitching in.”

Atul Gawande, Better: A Surgeon's Notes on Performance

The “aggregation of marginal gains”, improving everything by a small percentage, is a proven recipe for success


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Review

• Journey so Far• The Shift to Digital • The Burning “House” – Imperatives & Expectations• The Digital Advantage & Intelligent Automation• The New “House” - beyond Shared Services & GBS• Q&A


“I skate to where the puck is going to be, not where it has been.”

Wayne Gretzky

Reputedly the greatest ice-hockey player ever

Questions or Get Involved? [email protected] French

Founder & CEO, Consider Solutions

www.consider.biz

@consider_ations

mailto:[email protected]

http://www.consider.biz/

Be Passionate

Credit Matters VIII Discovering DNA 2.5

Any questions?APP Feedback please

THANK YOU

Dan FrenchFounder & CEO, Consider Solutions www.consider.biz@consider_ations

http://www.consider.biz/

Documents

Credit Matters VIII · Levers of SS/GBS Success 1. Low-cost sourcing 2. Simplification & Standardisation 3. End-to-End Process enablement and Ownership 4. Task Assessment framework