Next Generation Back Office Shared Services for Government Supplier Conference 21 November 2011 John...
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Next Generation Back Office Shared Services for Government Supplier Conference 21 November 2011 John Collington – Chief Procurement Officer and Director General, Shared Services Paul Marriner- Acting Director , Shared Services PROTECT [IL1]
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Transcript of Next Generation Back Office Shared Services for Government Supplier Conference 21 November 2011 John...
Next Generation Back Office Shared Services for Government
Supplier Conference
21 November 2011
John Collington – Chief Procurement Officer and Director General, Shared ServicesPaul Marriner- Acting Director , Shared Services
PROTECT [IL1]
PROTECT [IL1]Next Generation Back Office Shared Services for Government : Monday 21st November 2011 2 of 9
The Current Shared Services Landscape
2 Options Considered
Option 1 - Crown Oversight
• Current services remain ‘as is’ BUT• A Crown body is set up to oversee and govern the future direction of those services, including:Performance standardsCollaborative approach taken to Oracle R12 upgrade to reduce overlap and associated spendEstablishing benefit targets and subsequent delivery
Option 2 - Crown Managed Shared Services
• Consolidation of current shared services in to a small number of ‘hubs’ which service all Department requirements• Crown body governs delivery and strategy , including the following:
Common performance standardsActs as contracting body for all major
suppliersManages transition programme from
current to new
PROTECT [IL1]Next Generation Back Office Shared Services for Government : Monday 21st November 2011 3 of 9
Recommended Target Operating Model
Crown Shared Service
Governance
Strategy Development
Contract Management
Business Assurance
Performance
Management
MI and Analytics
Shared Service
F&ATransactions
Case Management
Systems and Support
Performance Management & Reporting
Case management and telephony solutions
Contact Centre
SS
CM
anage
ment
Service Management
Customer Relationship
HR & PayrollTransactions
Case Management
ProcurementTransactions
Case Management
Management Information &
Analytics
MI and Analytics
Shared Service
F&ATransactions
Case Management
Systems and Support
Performance Management & Reporting
Case management and telephony solutions
Contact Centre
SS
CM
anage
ment
Service Management
Customer Relationship
HR & PayrollTransactions
Case Management
ProcurementTransactions
Case Management
Management Information &
Analytics
NHS\DH JVOracle
c. 100,000
Outsourced ISSC 1Large & Small Orgs – c.40-50,000
Joint Venture ISSC 2ERP c. 175,000
MI and Analytics
Shared Service
F&ATransactions
Case Management
Systems and Support
Performance Management & Reporting
Case management and telephony solutions
Contact Centre
SS
CM
anag
em
ent
Service Management
Customer Relationship
HR & PayrollTransactions
Case Management
ProcurementTransactions
Case Management
Management Information &
Analytics
MI and Analytics
Shared Service
F&ATransactions
Case Management
Systems and Support
Performance Management & Reporting
Case management and telephony solutions
Contact Centre
SS
CM
anag
em
ent
Service Management
Customer Relationship
HR & PayrollTransactions
Case Management
ProcurementTransactions
Case Management
Management Information &
Analytics
MI and Analytics
Shared Service
F&ATransactions
Case Management
Systems and Support
Performance Management & Reporting
Case management and telephony solutions
Contact Centre
SS
CM
anag
em
ent
Service Management
Customer Relationship
HR & PayrollTransactions
Case Management
ProcurementTransactions
Case Management
Management Information &
Analytics
MI and Analytics
Shared Service
F&ATransactions
Case Management
Systems and Support
Performance Management & Reporting
Case management and telephony solutions
Contact Centre
SS
CM
anag
em
ent
Service Management
Customer Relationship
HR & PayrollTransactions
Case Management
ProcurementTransactions
Case Management
Management Information &
Analytics
HMRCSAP
c. 75,000
MI and Analytics
Shared Service
F&ATransactions
Case Management
Systems and Support
Performance Management & Reporting
Case management and telephony solutions
Contact Centre
SS
CM
anage
ment
Service Management
Customer Relationship
HR & PayrollTransactions
Case Management
ProcurementTransactions
Case Management
Management Information &
Analytics
MI and Analytics
Shared Service
F&ATransactions
Case Management
Systems and Support
Performance Management & Reporting
Case management and telephony solutions
Contact Centre
SS
CM
anage
ment
Service Management
Customer Relationship
HR & PayrollTransactions
Case Management
ProcurementTransactions
Case Management
Management Information &
Analytics
MI and Analytics
Shared Service
F&ATransactions
Case Management
Systems and Support
Performance Management & Reporting
Case management and telephony solutions
Contact Centre
SS
CM
anage
ment
Service Management
Customer Relationship
HR & PayrollTransactions
Case Management
ProcurementTransactions
Case Management
Management Information &
Analytics
MI and Analytics
Shared Service
F&ATransactions
Case Management
Systems and Support
Performance Management & Reporting
Case management and telephony solutions
Contact Centre
SS
CM
anage
ment
Service Management
Customer Relationship
HR & PayrollTransactions
Case Management
ProcurementTransactions
Case Management
Management Information &
Analytics
MOJ\HO Oracle
c.150,000
MI and Analytics
Shared Service
F&ATransactions
Case Management
Systems and Support
Performance Management & Reporting
Case management and telephony solutions
Contact Centre
SS
CM
anage
ment
Service Management
Customer Relationship
HR & PayrollTransactions
Case Management
ProcurementTransactions
Case Management
Management Information &
Analytics
MI and Analytics
Shared Service
F&ATransactions
Case Management
Systems and Support
Performance Management & Reporting
Case management and telephony solutions
Contact Centre
SS
CM
anage
ment
Service Management
Customer Relationship
HR & PayrollTransactions
Case Management
ProcurementTransactions
Case Management
Management Information &
Analytics
MOD Oracle
c.75,000Ex SPVA
NHS\DH JVOracle
c. 100,000
Next Generation Back Office Shared Services for Government : Monday 21st November 2011 : 4 of 9PROTECT [IL1]
These Include:
1. Performance monitoring of ALL SSCs
- performance through competition.
2. Independent delivery - no Department will deliver services from the two ISSCs
3. Crown Management and Crown as the Contracting Authority for the 2 ISSCs
3. Private Sector involvement through divestment
4. A service for Smaller Departments
3. Implement a single, Value for Money, ERP solution in ISSC 2; and
3. Operate on a single set of processes to ensure performance can meet upper quartile benchmark levels.
Key Strategic Principles
Next Generation Back Office Shared Services for Government : Monday 21st November 2011 : 5 of 9PROTECT [IL1]
PROTECT [IL1]
Core and Optional Service Offerings
The key principles of the Service offerings are:1.Only pay for what you need. i.e. Grants admin is optional2.Need to take all core processes that are end-to-end i.e. P2P3.Consultancy type services is optional to preserve VAT refund for Core services
Next Generation Back Office Shared Services for Government : Monday 21st November 2011 : 6 of 9
Proposed Transition Governance
PROTECT [IL1]Next Generation Back Office Shared Services for Government : Monday 21st November 2011 : 7 of 9
Proposed Transition Plan
Next Generation Back Office Shared Services for Government : Monday 21st November 2011 : 8 of 9
PROTECT [IL1]
Taking Advantage of ERP in the cloud
Hardware Hosting Layer
Support Layer
Software Layer
(Finance / HR / Payroll/ CRM/ Procurement)
Tier 1 or 2 ERP
Multiple Installations
Multiple Support Orgs
Private Cloud
SingleSupport Org
Estimated Potential Saving 65-70%
3rd Party Single
Support Org
SingleOn-Premises Installation
ERP “Software as a Service” (SaaS)
“Pay per use”
Estimated Potential Saving
??%
Estimated Potential Saving
40%
Public Cloud
Multiple ERPs
Single ERP
Next Generation Back Office Shared Services for Government : Monday 21st November 2011 : 9 of 10
PROTECT [IL1]
What Do Suppliers Need to Consider?
Next Generation Back Office Shared Services for Government : Monday 21st November 2011 : 10 of 9
PROTECT [IL1]
Shared Services is about raising performance but also aboutsaving money. This means we will:
1. look to consolidate services 2. look to use new technology and services such as
Cloud which drive better VFM – what is the opportunity?3. re-use before we re-buy4. not be ‘Gold-Plating’ our services.
But there will be opportunities around:• BPO for Back Office functions within ISSC 2• ERP transition services– both Tier 1 and 2• BPO Transition services
