SAP Shared Service Framework

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Agenda

Shared Services trends

SAP Solutions relevant for Shared Services

SAP Shared Service Framework

Demonstrations

Summary


Agenda




Demonstrations

Summary


So, What is Shared Services?Definition

…the provision of a service by one part of an organization or group where that service had previously been found in more than one part of the organization or group…

…the consolidation of business operations that are used by multiple parts of the same organization…


Organizational drivers for Shared ServicesChallenges

Cost PressuresCustomer Satisfaction

Governance & Compliance

Globalization Service Delivery

Process StandardizationLabor Mix Acquisitions

Harmonization

Operational Agility

Depth of IntegrationGeographical Scope

Automation

Process Quality

Data Accuracy

Policies & Procedures

Risk of Errors


Technology’s role in Shared Services

Subsidiary A Subsidiary B Subsidiary ...

Shared Service Center

[Captive or BPO]

Administrative Functions

Business Applications

Technology and Automation Platform for Shared Service Center

Employee ● Manager ● Customer ● SupplierService Center Challenges • Service Center costs• Headcount• Service quality• Customer satisfaction• Geographical scope• Throughput• Service Level fulfillment

Business & IT Challenges• Operational cost• Process standardization• Scalability• Harmonization• Heterogeneity• Landscape complexity• Governance• Compliance• Acquisitions• Automation• User adoption• Transparency

SAP Shared Service Framework Features• Service orchestration• Process orchestration• Backend orchestration• Multi-channel• Multi-functional• Single workspace for

agents• Technology platform• Service Center

management

Benefits• Efficiency• Effectiveness• Integration with backends• Proactive decision-making• Lower costs• High quality service• Leverage economies of

scale• Improved stakeholder

satisfaction

SAP Shared Services Delivery Platform SAP Shared

Service Framework

Core Processes


Evolution of Shared Service

Maturity Stage

• Standalone IT platforms by function

• Transactional Standardization

• Regional Shared Services Consolidation

• Transactional Automation• Unit Cost Reduction Focus

• Function Centralization• Service Management

Implementation• Knowledge COE’s• BPO & Managed Services

Outsourcing• Unit Cost Reduction with

Service Value Focus

• Multi-functional• Service Orchestration using

Technology Platform• Service Management Centric• Global COE’s• Automation led transformation• Unit Cost Reduction with

Service Value and Business Value Focus

FunctionDriven

ServiceDriven

ValueDriven

Val

ue


Levers to transform Shared Services by maturity stage

Source: SAP Shared Services Studies

Stages of Maturity

Typical Profile

Net Cost Savings % Effectiveness Improvement %

Fragmented Varying Processes

Centralized Mostly Standard

Processes Varying Service

Levels

Automated Transactions

Consistent Service Levels

Efficiency Metrics

Highly Automated Highly Integrated System Consolidation Comprehensive

Metrics Governance

No Shared Service Emerging Established Leaders

1%

8%

15%

23%

5%

14%

32%

0.5%


Automation is key for Shared Service Organizations

19%

38%

30%

14%

0 - 25% 26 - 50% 51 - 75% 76 - 100%

Level of process automation in SSO

Greenfield location

Offshoring

Outsourcing

Quality program (six sigma, LEAN, other)

Existing facilities

SSC processes

Reduced number of ERPs / applications

Labor arbitrage

Staff skills and languages

End-to-end process design

Automation / Self-service

Consolidation / simplification

Standardization of processes

7%

13%

17%

22%

25%

27%

29%

30%

33%

39%

53%

55%

83%

Factors that have generated the most significant reduction in labor and outsourcing costs

Source: SSON & The Hackett Group, 2010 SSO survey in G&A

Move to a more favorable geographic location

Move to a lower cost labor market

Reduction in headcount due to lower service demand

Additional outsourcing

Servicing additional divisions/departments of the organization

Implementation of continuous improvement program

Additional automation

5%

12%

12%

15%

17%

24%

25%

31%

40%

46%

49%

66%

80%

84%

Key initiatives underway in SSO

Less offshoring

More offshoring

Service delivery platform owned by service centers

More outsourcing

Expansion to service other functions

More centers of expertise

1%

2%

22%

22%

22%

28%

25%

29%

35%

36%

42%

91%

Future outlook of SSO (five years from now)


Value of moving to Shared Services

Tangible Benefits* % impact

Reduced Maverick Indirect Spend

Staff efficiency

3-5%

5-10%


Payroll HR Cost per Employee Improved recruitment costs Improved process cost by

Employee Self Service

10-30%20-30%10-15%

14%


Increase office space efficiency

20-30%


Reduced Integration cost Hardware & Operations Software Maintenance and

implementation

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

Several Sources: e.g. ASUG benchmark data; Hackett Group


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%

Finance HR Procurement

Real Estate

IT

Overall Cost Saving Potential

Analysts rate Shared Service Framework a top priority


Agenda




Demonstrations

Summary


SAP Solutions in Finance relevant for Shared Services

SAP ERP FIN

Treasury and Risk Management

Bank Communication Management

Financial Closing Cockpit

Travel Receipts Management

SAP ERP FIN

Invoice Management Automation

E-Invoicing Inbound & Outbound

Collections Management

Dispute Resolution

Entity Close Management

Master Data Governance for Financials

SAP Shared Service

Framework

Core Processes

Additional Engines

Supplier/Customer Portal

Budgeting

Real Estate Management

Business Planning

Financial Consolidation

Fixed Assets

ReportingShared Service

FrameworkBusiness

Communication Mgmt


SAP Solutions in HR relevant for Shared Services

Add-on

Processes

SAP Shared Service

Framework

Core Processes

Additional Engines

SAP ERP HCM

Payroll Processing

E-Recruiting

Learning Solution

Employee File Mgmt by OpenText

Employee Self-Service

Manager Self-Service

Processes & Forms by Adobe

Business Communication Mgmt

Shared Service Framework

Reporting


Customer

Incident &Service Request

Management

Service LevelManagement

Service Asset and

Configuration

Management

Knowledge Management

ChangeManagement

Problem Management

SAP IT Service Management enables efficient and ITIL®-compliant IT support processes

Incident & Service Request Management

Problem Management

Change Management

Knowledge Management

Service Asset & Configuration Management

Service Level Management

SAP Solutions in IT relevant for Shared ServicesSAP IT Service Management (SAP ITSM)


Agenda




Demonstrations

Summary


Core Processes

Build Step 1

Answer to the challenges - SAP Shared Service FrameworkYour service orchestration platform

SAP Shared Service

Framework


Process orchestration with Shared Service FrameworkSupport efficiency & scalability in operations through unsurpassed automation

SSF provides support for processes and sub-processes across

multiple systems, solutions and landscapes in a governed, secure and integrated

manner for additional SAP engines that can be

implemented as single or multiple instances

Benefits Cross-department visibility & transparency Ability to improve business practices Leverage existing IT investments for Shared

Services without disruption

Step 1 Step 2 Step 3

Step 4 Step 5 Step 6

Representation of functional sub processes within an organization showing alternative processing options

SAP Shared Service

Framework

Core Processe

s

Additional Engines

Add-on Processes


Backend orchestration with Shared Service FrameworkConvert heterogeneous landscape for unified service delivery

Multiple SAP and non-SAP back-end systems can be integrated into the shared services center using the SAP Shared Service Framework

Integrated Shared Services Agents’ workplace so that the agent has a single window of access

Agents use single sign-on to access different systems which otherwise would warrant multiple login with different credentials

SAP Shared Service

Framework

System ISystem II

System III

Benefits Simplified and connected IT landscape Single sign-on Governance and compliance Agility


Build Step 1

Interaction orchestration with Shared Service FrameworkMulti-channel approach to connect with customers, employees, suppliers, …

Employee ● Manager ● Customer ● Supplier

Tier 1 Generalists

Tier 2 Specialists

Tier 3 COE**

**COE = Center of Expertise

Interaction *

Tier 0 – 80%

Tier 1 - 10%

Tier 2– 8%

Tier 3 – 2%

*Reference: The Hackett Group

Service Request/

Ticket


Knowledge Base

Service delivery without orchestrationSample HR process - Adoption / birth of a child

HR

Electronic Policy

Paper Policy Doc

Text Editor

Ticketing System

Outlook

Excel

Power Point

Communication System

10 60

Check Knowledge Base & Papers Docs

Receive callCreate response & spell check/format

Update the backend system

Verify identity

Respond to the ticket & categorize

Evaluate self performance & generate management report

Create ticket

180 300 360 480

* SAP Study

500 600

Total Time

Spent -

10 minutes

Cumulative Time(seconds)


BCM

HR

SSF HR

Analytics

30 60

Receive callVerify identity

Create ticket

180 240 240 240 240

Total Time

Spent -

4 minutes

ApprovalCreate P&F request

Respond to the ticket

Automatic categorization & update of backend system

Automatic logging of processing parameters for management report

Cumulative Time(seconds) * SAP Study

Orchestrated Service Delivery with SAP SSFSample HR process - Adoption / birth of a child


Document System

Finance

Text Editor

Ticketing System

Outlook

Excel

Power Point

Communication System

10 60

Access the parked invoice document

Receive callCreate response & spell check/format

Update the backend system

Verify identity

Respond to the ticket & categorize


Create ticket

180 300 360 480

* SAP Study

500 600

Total Time

Spent -

10 minutes

Service delivery without orchestrationSample Finance process - Parked Invoice query from Vendor

Cumulative Time(seconds)


BCM

Finance

SSF FIN

Analytics

Orchestrated Service Delivery with SAP SSFSample Finance process - Parked Invoice query from Vendor

30 60

Receive callVerify identity

Create ticket

180 240 240 240

* SAP Study

240

Total Time

Spent -

4 minutes

Link business context

Access the parked invoice document

Respond to the ticket

Automatic categorization & update of backend system


Cumulative Time(seconds) * SAP Study


SAP Shared Service Framework – Screens

Single integrated agent interface

Confirmed caller details appear automatically

Complete history of caller interaction

Agent worklist

Knowledge base



Integrated Telephony

Integrated service ticketing environment

Ability to categorize the ticket for reporting and analysis

Pre-population of data with minimal data entry

Ability to provide context specific information for future



Link contextual information from the backend system with access to the backend screens in the same window

Possibility to upload/attach additional contextual information


SAP and a Global Partner Ecosystem offer RDS to meet specific business needs…

SoftwareQuickly address the most urgent business processes

ContentSAP best practices, templates and tools make solution adoption easier

EnablementGuides and educational material speed end user adoption

ServiceFixed scope and price provides maximum predictability and lowers risk

SAP RAPID DEPLOYMENT SOLUTIONS

Service

Software

Enablement

Content

RAPID DEPLOYMENT

SOLUTIONS


What‘s in SAP Shared Service Framework rapid-deployment solution for financials?Foundation and Scope Items including:

Service Request Creation via internal user call from CRM

Service Request Creation from ERP

Did you know that with SAP Shared Service Framework for financials, you can achieve:

A process efficiency increase of 50%? A cost reduction of 30% and a headcount reduction by 60% across key areas? Up to 50% reduction in bad debt risk and 40% faster access to sales and credit

information? A reduction of Day Sales Outstanding by 3 days and 10% reduction in bad debt

write-offs?

Solution value profile Preconfigured software Affordable with transparent and reasonable

pricing Rapid implementation in as little as 4

weeks Faster time to value Low total cost of implementation Clearly defined fixed baseline scope Fixed-price implementation services Foundation to grow your Finance vision

A Compelling Finance SolutionDelivered Quickly And Affordably


What‘s in SAP Shared Service Framework rapid-deployment solutionfor human capital management?Scope items Service Request – Create leave request

(Employee Self-Service) Service Request – Change working

times(HCM Processes & Forms)Solution value profile

Preconfigured software Affordable with transparent and

reasonable pricing Rapid implementation in as little as 5

weeks Fast time to value Low total cost of implementation Clearly defined fixed baseline scope Fixed-price implementation services Foundation to grow your HR vision

A Compelling HR SolutionDelivered Quickly And Affordable

Did you know that with SAP Shared Service Framework for human capital management,you can achieve

A time for HR to respond to data analyses requests reduction of 20-30%? A leave and vacation processing time reduction of 90%? An HR processing time reduction of 30%?


What‘s in SAP IT Service Desk OperationIT Service DeskIncident & Problem ManagementKnowledge Article ManagementOnline Monitoring & Reporting

SAP Rapid Deployment solutions value profilePreconfigured software – eliminates guessworkRapid implementation time in six to eight weeks *Faster time to value than comparative solutionsLow cost implementation, fixed scope, and fixed priceSimple buying process A clear path to your full IT service desk vision

Key Benefits:Provide IT service desk agents with an easy-to-use application interface for working in a wide array of

communication channelsCapture, document, track, investigate, and resolve all user requests – from creation to solution

implementationDocument solution-related content and provide this information – through search functionality – to both the IT

service desk agents and end usersEnable concise reporting and monitoring of IT service processes and performance* Actual implementation time depends on customer requirements and specific customer situation.

A Compelling IT Service Management SolutionDelivered Quickly And Affordable


Agenda




Demonstrations

Summary

Demonstrations


Agenda




Demonstrations

Summary


Shared Services performance indicators

KPI Improvement Customers > 10%

Productivity

Quality

Customer Service

47%

43%

35%

0 % 25%

10 %

0 % 25%

10 %

0% 25%

10%

Source: Hackett 2010


Shared Services performance indicators

KPI Improvement Description

Standardization and automation leads to significant increases in productivity

Integrated end to end processes supports continuous quality improvements based on highly standardized processes

Measuring and managing Service Level agreements and customer satisfaction ensures excellence in customer service

Source: Hackett 2010

Productivity

Quality

Customer Service

47%

43%

35%


Customer references for SAP Shared Service Framework

KPI Description Customer

DSM integrated Finance Shared Services in a heterogeneous system landscape and leveraged Invoice Management plus Financial Supply Chain Management for E2E processes

Coca Cola EMEA ensures low TCO in 27 countries with SAP Shared Service Framework as business platform for Shared Services in Finance and HR

SAP runs SAP and implements Shared Service Framework for Finance, HR, Procurement and Facility Management and increases customer service in multiple dimensions

Source: SAP reference data base

Productivity

Quality

Customer Service


Selected Shared Service Customers


End to end process integration and automation helps achieve greater productivity, efficiency, transparency and high-quality service

Strong analytics enable the head of Shared Services to run the organization like a business

SAP Shared Service Framework enables profitable growth and supports global governance & compliance1

2

3

Automate and integrate for competitive advantageSAP’s unique capabilities


Questions ?

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SAP Shared Service Framework

Technology

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