Technology As An Enabler for Global Shared Services
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1 2012-05-21 Copyright ©2012 by Oriflame Cosmetics SA
2012-05-21 Copyright ©2012 by Oriflame Cosmetics SA
Technology as an Enabler for Global Shared Services
Oriflame Facts & Figures
• €1.5 Bn sales in 2011 • 3.6 million Sales Consultants • Around 700 million products sold per
year
• 1,000 products of which 1/3 new each
year • 150 million catalogues printed in 40
languages • 7,900 full-time equivalent employees
Sales by Category 2011
3 2012-05-21 Copyright ©2011 by Oriflame Cosmetics SA
Operations in over 60 Countries – of which 13 Franchises
4 2012-05-21 Copyright ©2011 by Oriflame Cosmetics SA
A Long Term Growth Company
1990 - 2011: CAGR organic sales of over 15% €m
5 2012-05-21 Copyright ©2011 by Oriflame Cosmetics SA
Implications for Shared Services ?
• Fast growth over two decades – unaligned processes
• Complex, front-office driven business • Culture of independent entrepreneurs • Highly fragmented landscape
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Global Shared Services
keep it simple
8 2012-05-21 Copyright ©2012 by Oriflame Cosmetics SA
Fundamentals of Shared Services
Concentration
• Scale effects • Fewer people
• Fewer IT assets
Focus activities on core business
Leading to further indirect savings
Standardization
A prerequisite for shared services
Elimination of non-value added activities and
quality improvement
Automation
More effective
processes
Substantial time savings and productivity
improvements
10 5/21/2012 Copyright ©2012 by Oriflame Cosmetics SA
Fundamentals of Shared Services
Concentration
• Scale effects • Fewer people
• Fewer IT assets
Focus activities on core business
Leading to further indirect savings
Standardization
A prerequisite for shared services
Elimination of non-value added activities and
quality improvement
Automation
More effective
processes
Substantial time savings and productivity
improvements
11 5/21/2012 Copyright ©2012 by Oriflame Cosmetics SA
Concentration - GSS Organization
Christian Jönsson VP Global Shared Services (GSS)
Pawel Pietruszewski Senior Director GSS Finance
Krasimir Gaydov Senior Director
GSS IT
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Concentration - GSSF Organization
Senior Director GSS Finance
SSF Warsaw
SSF Fribourg
SSF Istanbul
SSF Mexico City SSF Delhi
Global Systems & Processes
13 5/21/2012 Copyright ©2012 by Oriflame Cosmetics SA
Concentration - Delivery of services in GSSF
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Entity Finance Manager
Shared Services Finance
Customer – Service Provider
Integrated SSF
Entity Finance Manager
Local SSF team
Customer – Service Provider
Virtual SSF
Shared Services Finance
Local SSF team reporting within GSSF structure
Integrated service delivery independent of the location
Location decisions based on the best configuration of cost, flexibility, knowledge requirements
Concentration - Split of work in GSSF delivery models
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Scope Integrated SSF Virtual SSF Service Delivery Service Delivery
Service Delivery
AP, Travel Expenses AR, GL, Cognos, Payments and Treasury, tax compliance
Mainly Central Mainly Local (level of central delivery dependent on local regulations, time zone, costs)
Accounting System delivery and development
Functional delivery Issues resolution
Central Central
Central Central
Process Management
Process improvement Internal Audit Special projects Policy development
Central Central Central Central
Central Jointly Central Central
Stakeholders Management
Group Reporting External Audit Other functions
Central Central Central
Central Local Jointly
Fundamentals of Shared Services
Concentration
• Scale effects • Fewer people
• Fewer IT assets
Focus activities on core business
Leading to further indirect savings
Standardization
A prerequisite for shared services
Elimination of non-value added activities and
quality improvement
Automation
More effective
processes
Substantial time savings and productivity
improvements
16 5/21/2012 Copyright ©2012 by Oriflame Cosmetics SA
Standards in Oriflame GSSF
• Standards – IFS system – Interfaces to Cognos and Orisales – Chart of Accounts for Group and design logic for statutory – Processes and procedures impacting system design – Management Reporting tools and standard reporting package – Services scope and specification
• Non-standard – Statutory and tax reporting – Manual processes and procedures
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– Control over standardized system set-up speeds-up implementation, provides ability to implement improvements across all the entities in the efficient way, reduces cost of support and maintenance
– Standardized reporting allows for cross-entity comparisons, reduces development effort, simplifies cross-entity knowledge exchange
– Unified scope provides ability to manage services in a consistent way across the regions
Standards - Decision process Broad input, tight decision making • Steering Committee
– Objectives and priorities – Approves exceptions
• SSF Reference Group (local finance managers) – Provides feedback on performance, issues, functional requirements
• SSF Project Team – Solution design, implementation
• SSF Management – Coordinates governance process, delivers
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– The whole finance community provides input into the design and implementation of the concept
– Focused decision making ensures timely delivery
Fundamentals of Shared Services
Concentration
• Scale effects • Fewer people
• Fewer IT assets
Focus activities on core business
Leading to further indirect savings
Standardization
A prerequisite for shared services
Elimination of non-value added activities and
quality improvement
Automation
More effective
processes
Substantial time savings and productivity
improvements
19 5/21/2012 Copyright ©2012 by Oriflame Cosmetics SA
IFS GSSF
General Accounting
Non-Consultant AR
AP / T&E
Automation - IFS ERP solution is at the centre of Financial Systems concept
IFS C
onnect
Orisales
Orisales GDC
Cognos
Controller
Cognos BI
IFS Reports Cognos Controller Reports
Orisales Reports
Cognos
Planning
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IFS GSSF
General Accounting
Non-Consultant AR
AP / T&E
Automation - IFS ERP solution is at the centre of Financial Systems concept
IFS C
onnect
Orisales
Orisales GDC
Cognos
Controller
Cognos BI
IFS Reports Cognos Controller Reports
Orisales Reports
Cognos
Planning
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One Accounting system on single occurrence: Single Chart of Accounts Integrated Group and Statutory Reporting Functional alignment
IFS GSSF
General Accounting
Non-Consultant AR
AP / T&E
Automation - IFS ERP solution is at the centre of Financial Systems concept
IFS C
onnect
Orisales
Orisales GDC
Cognos
Controller
Cognos BI
IFS Reports Cognos Controller Reports
Orisales Reports
Cognos
Planning
5/21/2012 Copyright ©2012 by Oriflame Cosmetics SA 22
Automated interfaces between key applications – single input of data Automated Interface: IFS – Orisales and IFS – Cognos
IFS GSSF
General Accounting
Non-Consultant AR
AP / T&E
Automation - IFS ERP solution is at the centre of Financial Systems concept
IFS C
onnect
Orisales
Orisales GDC
Cognos
Controller
Cognos BI
IFS Reports Cognos Controller Reports
Orisales Reports
Cognos
Planning
5/21/2012 Copyright ©2012 by Oriflame Cosmetics SA 23
Elimination of the paper flows of documents and manual input of data • E-Invoicing for scanning and approval of vendor invoices (IFS module) • Expense management for setting and approving cash advances and travel
costs (IFS module) • Bank interfaces through IFS Connect
Automation - IFS End-User Portal
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Automation - IFS E-Invoice workflow
Visibility of all the invoices in the process Elimination of the paper-flow and walking around Strict Internal Controls
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Automation - Expense Management System
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Automation – Payment Solution
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IFS Application 7.5
IFS Extended Server
HTTP
File
FTP
Service
Bureau
On-Line Bank Application
Core XML Transformer
Routing/R
outing Address
preferably payment message
XML ISO20022
Base line solution for outgoing payment
Payroll
(salaries)
Core XML
OriSales (bonuses, disburs.)
Core XML
SFTP
IFS Connect
Swiftnet
IFS GSSF
General Accounting
Non-Consultant AR
AP / T&E
Automation - IFS ERP solution is at the centre of Financial Systems concept
IFS C
onnect
Orisales
Orisales GDC
Cognos
Controller
Cognos BI
IFS Reports Cognos Controller Reports
Orisales Reports
Cognos
Planning
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Operational, transaction level reporting
Integrated Management Reporting
Putting this together into the Service Catalogue
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What have we done
• GSS IT – Process started in 2007 with establishment of GSO IT
and business owners – Low rates (cost levels and staff levels) in external
benchmarking
• GSS Finance – Full implementation in EMEA finalized in 2 years – Asia and Latin America following in 2012
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GSSF WAW and FRI are supporting 17 and 11 legal entities respectively
2012-05-21 Copyright ©2012 by Oriflame Cosmetics SA 31
GSSF WAW and FRI are supporting 17 and 11 legal entities respectively
FRI
Spain Oct 10
Portugal Jan 11
OCSA Lux (7 legal entities)
Feb 11
Holland Mar 11
E-Commerce Mar 12
WAW
Poland Jul 10
Slovakia Oct 10
Czech R. Jan 11
GSO Prague Jan 11
Hungary (2 reporting entities)
Apr 11
Slovenia Apr 11
Sweden (2 legal entities)
Jul 11
Norway Jul 11
Finland Jul 11
GSO Dublin Jul 11
Romania Oct 11
Bulgaria Oct 11
Serbia Jan 12
Kosovo Jan 12
Montenegro Jan 12
OPP Jan 12
VIRTUAL
Turkey Jan12
2012-05-21 Copyright ©2012 by Oriflame Cosmetics SA 32
GSSF Team in Europe
• 60 people based in Warsaw, Fribourg and Stockholm
• From 0 to 20 years of experience in Oriflame • 9 nationalities
– Brazilian; Polish; Portuguese; Romanian; Slovak; Slovenian; Spanish; Swedish; Swiss
33 5/21/2012 Copyright ©2012 by Oriflame Cosmetics SA
Summary
• Can we provide both integrity and agility ? – Integrity allows for greater agility at the global level – Business relieved from finance and IT can be more
focused on core business • How can multifunctional business services
organization add more value to the business ? – Ease of managing multifunctional changes – Seamless experience for the clients in regards to the
implementation / improvement projects
34 5/21/2012 Copyright ©2012 by Oriflame Cosmetics SA
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