Dr Franz Deitering - Shared Services Next Generation

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

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 /

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


Agenda


© 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

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


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%


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


Operating cost

� Increase office space efficiency

20-30%


Operating Cost

� Reduced Integration cost� Hardware & Operations� Software Maintenance and

implementation

15-20%20-50%20-70%

Source ASUG benchmark


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


Agenda


© SAP 2009

© SAP 2008 /

The World is Getting Flatter

© SAP 2008 / Page 16

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)


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


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


Agenda


© 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


� Procurement interaction center

� Requisitioning

� Purchase request processing

� Purchase order processing

� Trading contract management

� Receiving

� Financial settlement

� Manage catalog content

� Managing compliance

� Supplier collaboration


� 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 /

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


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


Request Cost Center Change


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 /

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 /

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

Email

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

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

Mail

Phone

Fax

E-mail

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

Mail

Phone

Fax

E-mail

Mail

Phone

Fax

E-mail

Phone

Fax

E-mail

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

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


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


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


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


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


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

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Dr Franz Deitering - Shared Services Next Generation

Business

Transcript of Dr Franz Deitering - Shared Services Next Generation