Deloitte Shared Services, GBS & BPO · PDF fileIntroduction to ITV ... iProcurement &...

Deloitte Shared

Services, GBS &

BPO Conference

Berlin, Germany

Ian Butterworth & Amanda Coad,

22 – 23 September 2015

Analytics at ITV – what is the

opportunity for shared services

and where does the business

case lie?

Financial Analytics

What is the opportunity for Shared Services?

Ian Butterworth, Head of Purchase to PayAmanda Coad, Finance Manager Group & Services

Introduction to ITV

Number of Employees – c5,000

Group External Revenue - £2,590mEBITA (before exceptionals) - £730m

Invest £1bn in programming for our family of channelsShare of Broadcast c45% in the UK

Producer 5,700 hours of original programme content

Grown the international business through acquisitions

Our Background

About us

Group

Head of BSC

Purchase to Pay

PayrollChangeOrder to

CashRecord to

Report

Talent & Royalty

Payments

BSC Structure

About us

A lean ITV that can create world class content, executed across multiple platforms and sold around the world

Maximise audience and revenue share

from free-to-air broadcast and VOD

business

1Grow

internationalcontent business

2Build a global payand distribution

business3

Over time as we continue to rebalance the business and grow new revenue streams, both organically and through acquisition, there will be an increasing emphasis on

international content creation and distribution

2010 2015

Scri

pte

dEn

tert

ain

men

t &

Fac

t/En

t fo

rmat

s

SCRIPTED

CONTINUOUSDRAMASCRIPTED

D AY T I M E

mediacircus

D AY T I M E

ITV’s International Growth over last 5 Years

NON

ORACLE

• Addison Lee• HR Data• Bottom Line• NGA ‘Resourcelink’

AX Core Client

ACL GatewayAdhoc Analytics

Load Reconcile Analyse

Control Analytic

Dashboard Analytic

Ad hoc Analytic

Workflow

Assess Work Resolve

Dashboard Visualisation

Monitor Analyse Act

RTR(25)

OTC(7)

PTP(64)

PYRL(21)

FS(12)

Business ProcessesU

K B

usi

nes

ses

Current Position of Analytics

Our History

Amanda Coad2002 - 2008Tour Operations Finance- Cost Control- Balance Sheet Risk- Forecasting & Budgeting- Process Improvement

Record to Report Group Finance Manager

Roles @ ITV and Key achievements include:

2008 2015

Divisional Management Accountant – ITV Studios

Finance Manager – ITV Studios

Change Manager – Talent & Royalties

Automation of Royalty Statement Solution

Record to Report – Group Finance

Financial Analytics

Acquisition Accounting

Process Improvement- FX & Interco

Lead in Change Management transition

Treasury Reporting

About us

Ian Butterworth2005Group Accountant

Project Team‘pushing the boundaries of PTP’

StandardiseSimplifyAutomateControl & ComplianceVanilla ERP (Oracle)

Head of Purchase to Pay

Initiatives introduced into ITV via PTP include:

20082015

iProcurement & iExpenses

Corporate Cards (centrally settled)

How to Guides produced

Online training tools

Outsource Invoice Scanning

Auto close PO’s

Self settle cards

Financial Analytics

No Receipt No Pay

Master Data Team

Instant Issue Cards

CPI Embedded

Invoice Discounting

AP Team ofthe Year

About us

“Your Life.....But Easier”

I wish I could prove all my

processes work

I wish I had data to prove there was no fraud in my organisation

I wish I had a way to ensure

risk was reduced

I wish I could confirm all my

payments were accurate

I wish that data could drive the

right behaviour in my organisation

I wish I had a way of making my org more

credible

“....well Sepp..... Analytics won’t fix your processes, but it will help you identify where your risk is!....”

Is it worth it, Benefits for you could be...

• Reduce risk

• Highlight potential fraud

• Confirm your processes work

• Engaged team who own Analytics

• Rapid move up the value chain

• Entrusted business partner

• Change in business behaviour

• Deliver opportunities for change

• Be proactive and ahead of audit findings

• Upskilled team

• Reduced audit time

About us

What do we mean by ‘Analytics’?

ITV uses analytics to:

- Monitor risk

- Test variation from norm

- Reduce process bottlenecks

- Eliminate duplicate payments

- Ensure 100% of transactions are reviewed

- Drive business behaviour

- Drive engagement and ownership within teams

Mr Selfridge

About us What do we mean by Analytics?


We think of an Analytic like a

Jack in the Box.....

There are many more opportunities for Analytics

- Control SLA’s on outsourcers

- Working Capital Management

- Revenue leakage

- SOX compliance

- Financial planning

- Business performance

- Targeted marketing

The Mafia with Trevor McDonald


ITV utilises 3 types of Reports

- Workflow

- Dashboard

- Ad hoc

Ninja Warrior UK


What Financial Analytics has delivered

• PTP Purchase requisition approvals

• Insights into employee expense outliers through clustering

• Identification of duplicate split expense claims

New Fraud Detection Capabilities



• Segregation of Duties exceptions where employees have updated master data tables and posted related transaction

• Identification of inappropriate accounting transactions

New Monitoring Capability for High

Risk Exceptions



• Programme balance sheet classification

• Aged programme stock and creditor analysis

• Identification of fixed assets inappropriately not being capitalised

Automation of Balance Sheet

Control Activities



• Identify manual journals posted to sub-ledger control accounts in error

• Quantify number of correction journals in the general ledger and help identify root cause analysis

Timely Resolution of GL Posting Errors and

Insight


What is the impact on the SSC?

How does it affect the team?

- Gives you data to influence

- Gets you a seat at the table

- You enhance your reputation

- You become a proactive business partner

- Your team become really engaged with clearing exceptions

- Lots of ownership in teams

Britain’s Got Talent


The Impact on the SSC

It’s not all plain sailing...

- It is more work in the team

- They take time to embed

- You need to establish good governance around changes

- You need technical resource to support BAU

- You need to agree times and formats to receive data from 3rd parties

- Analytics can be seen as silver bullets, not everything needs an analytic

Safehouse



The results make it worthwhile

- Reduced both internal and external audit costs

- Happy Audit Committee

- Zero duplicate payments since Analytics introduced (verified via 3rd party)

- More proactive, much better informing audit than being informed by them

- Extra channel to drive continuous process improvement

- Our thinking around controls have changed, we now build Analytics into new project

- Rapid rise up the maturity curve

Black Work



Building your Business Case

Judge Rinder

Considerations for your Business Case

• Control is more effective and timely

• Improved audit focus and efficiency

• Ability to provide proactive fraud monitoring

• KPI improvements

• Efficiency savings in SSC

• Start small and grow

• Deliver Analytics in clusters

• Use experienced practioners to lead




Governance: Set up then and now

Project Set Up – The Key

Project Planning• New area for ITV so we really had to think about what we wanted from

analytics before green light

• Large time spent upfront debating and agreeing the scope and purpose of each analytic

• Do we really need it, what is it going to add or what risk is it controlling

• Produced detailed list of analytics reduced any expectation gap – we knew what we were getting before we started design

• Strong focus on ‘so what’ actions during requirements capture – ‘how would this change my day job”?

• Had the list of circa 115 analytics once we started and had clear CR process




Governance: Set Up then and Now

Bo

ard

Ste

eri

ng

Gro

up

Wo

rkin

g P

arty

By exception only

Monthly

Weekly

X 2

X 3X 3

Internal Auditors External Auditors Finance BI BSC Technology

• Project Management• Offshore Management• Risks and Issues

• Communications• Timetable

• Owner of IA “tests”• Testing of ACL

• Owner of EA “tests”• Testing of ACL

• Owner post implementation• Support and build

• Point contact for test• Specification• BSC text management

• Governance• Architecture• Procurement of servers

• Accenture management• iBusiness interface

• Key decisions• Change requests• Challenge of design /

specification





External Audit

Where will I be in 12 months after Go Live?

Financial Analytics established in BAU

A Governance Board that meets once a month for 30 mins• Log any changes• Prioritise development• Track progress

A team that use Analytics to drive behavourial change





Top Takeaways

Reminder of the Risks• Initially more work in SSC• You will struggle to deliver without senior sponsorship• An Analytic will not solve everything• Get your project set up right• Make sure you have a BAU owner of the solution• Don’t do too much too soon

Saturday Night Takeaway





Top Takeaways

A reminder of the benefits you could achieve

• Reduce risk

• Highlight potential fraud

• Confirm your processes work

• Engaged team who own Analytics

• Rapid move up the value chain

• Entrusted business partner

• Change in business behaviour

• Deliver opportunities for change

• Be proactive and ahead of audit findings

• Upskilled team

• Reduced audit time





Top Takeaways

Audience questions and perspectives

Thanks for Listening... and Goodbye

What is the opportunity for Shared Services?

Ian Butterworth, Head of Purchase to PayAmanda Coad, Finance Manager Group & Services

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42Deloitte Shared Services, GBS & BPO Conference 2015

Deloitte Shared Services, GBS & BPO · PDF fileIntroduction to ITV ... iProcurement &...

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