credit matters viii · levers of ss/gbs success 1. low-cost sourcing 2. simplification &...
TRANSCRIPT
Be Passionate
GBS & Shared ServicesBurning down the House
DAN FRENCH – CONSIDER SOLUTIONS
Credit Matters VIII Discovering DNA 2.5
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This Session
• Journey so Far• The Shift to Digital • The Burning “House” – Imperatives & Expectations• The Digital Advantage & Intelligent Automation• The New “House” - beyond Shared Services & GBS• Q&A
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World Class Finance
World Class
Risk
Man
agem
ent
Proc
ess T
rans
form
atio
n
Fina
ncia
l Con
trol
&
Com
plia
nce
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Global Influences
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The Journey so Far
• “Lift & Shift”• 1990’s
• Single Process SSC• Centralisation• Transaction & Headcount focussed
• 2000’s• Outsourcing• Multi-function GBS• India plus
• Optimisation• 2010’s
• Global Process Ownership• Process and CoE matrix• Integrating multi-function, -source, -location Global Business Services model
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“Productivity benchmarks have steadily improved”
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Acquire Service Provider
Transformation is not primarily about Technology
ProposeService
Commit Service Provider
Commit & ChargeCustomer
Pay ServiceProvider
Locate Customer
Select Service Provider
Acquire Customer
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Executive Stakeholder Demanded Outcomes of SS / GBS
Direct Cost Reduction • FTE reduction• Standardisation• Shortening cycle time for internal customers (Buyers et al)• Improving cash collection, cashflow managementImproving Business Unit Experience• “Making Finance Easier”• Cycle time and cost reductions in the Business UnitsEnhanced Risk Management, Control & Compliance Flawless Issue Resolution Preserving process knowledge (that was formerly in business, now in SS/GBS)
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Aspirational/Desirable Outcomes of SS/ GBS
Enhanced Reputation as value creator as well as cost reducer
Centre of Excellence (CoE), with expertise to optimise and automate
End-to-End Business Process CollaborationTalent Pipeline for the entire business
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Levers of SS/GBS Success
1. Low-cost sourcing 2. Simplification & Standardisation3. End-to-End Process enablement and Ownership 4. Task Assessment framework for process/task automation5. Automation (ERP, RPA, niche process applications and Cloud apps) 6. Talent & Skills 7. Business Partnering, focus on customer’s customer, engagement, interest, value, “Listen but Guide” 8. Analytics/Action Oriented Insights for better decisions, better business collaboration, better outcomes 9. Staff Engagement 10. Executive Support & Understanding 11. Organisation Structure
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Clustered & Prioritised
A.Analytics, End-to-End Process enablement & Business Partnering (3,7,8) - 42%
B.Simplification, Standardisation, Assessment & Automation (2,4,5) – 30%
C.Staff Engagement, Talent & Skills (6,9) - 14%
D.Organisation & Executive Alignment (10,11) – 14%
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Interactive Poll – Your Current Shared Services / GBS Reputation
A.Low Cost ProviderB.Standard Service Provider C.Centre of Business ExpertiseD.Business Value Creator
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Procurement
HR
Operations
Finance
HR
ERP BI
ERP 2
Global Process Ownership (GPO) as a value-creating strategy
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“Customer to Cash”
DemandGeneration
Customer Engagement
Compete &
ContractOrdering Fulfilment Settlement
Market to Contract Order to Cash
Customer to Cash
Marketing Selling Cash
SalesMarketing
Supply Chain
Legal
Operations
Finance Collections
Shared Services/GBS
TreasuryIT
Strategy
Delivery
Service Delivery
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“Source to Pay”
Demand Sourcing Contracting Ordering Fulfilment Settlement
Source to Contract Purchase to Pay
Source to Pay
Source Buy Pay
ProcurementBusiness
Supply Chain
Legal
Operations
Finance Payables
Shared Services/GBS
TreasuryIT
Category Management
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Navigating differing perspectives & performance measures
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Global end-to-end Process focus is key to Value
Capability & SkillsEngagementCommunicationUnderstandingCollaborationShared VisionCo-ordinated ExecutionOwnership?
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Interactive Poll – Where are you on the Global Process curve?
A.No Real Focus yetB.Shared Services scope onlyC.“Global Process Ownership” in name but not in practice D.We are recognised as THE facilitators of global, end-to-end process collaboration
and co-ordinated execution
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“Burning Down The House” . . . . Imperatives & Expectations
• Global Process simplification for business and the consumer• End-to-end process transformation vs ”stage optimisation”• Continuous Improvement – no “one hit wonders”• Aligning/combining process and digital• Driving change beyond SS/GBS, from cost to value• Embracing “front office” functions• Speed & Scale of Change
• Data driven insight & real-time decision making• Robotics, RPA• AI, Machine Learning
• Learning from ‘Digital Natives’ and Tech companies . . .
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“Burning Down The House” . . . . Challenges
• Is our consumer facing business model right for the future?• Is our operating/execution model right for the future?• Have we genuinely ‘cracked the code’ on global processes?• Do we have clear ownership, accountability and alignment?• What is the new role of Shared Services?• Who is the customer?• Is customer focus a winning strategy?• Do we have a smart, self service data strategy?• Aligning Model, Process & Digital
• Model & Process first, but technology is always more alluring . . . • Digital transformation is a $1.7tn industry but 70% fail . . . .
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The Digital Advantage & Intelligent Automation
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Plenty of Investment Buzz!
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RPA / “intelligent Automation” Experiences to Date
• Take Advantage!• Big efficiency gains for the right tasks• Cheaper and faster than ERP extension, integration• BOTs don’t get bored, tired or lose concentration – quality & compliance benefits• Integrates technology gaps in end-to-end processes• Eliminates frustrating tasks from valuable people, a more appealing workplace
• Take Care!• 400% task productivity increase may not be significant in the end-to-end process• Development & Operation need control, oversight and governance • BOTs have no judgement and will repeat errors at scale – design & test well!• A lot of moving parts/points of failure, ERP updates/upgrades?• Powerful, auditable, rules-based automation• Without detailed, task level, standard operating instructions, don’t try to automate• “Automation makes bad worse, faster”• “Elimination is the best automation”
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What about the role of AI?
Courtesy: Neota Logic
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Applying ML in the Real World - Diagnosing Cancer
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The AI Classifier found 92.5% of cases!
Diagnosis by AI
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
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But the Human Pathologist was better – 96.6%!
Diagnosis by Human Expert
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
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But AI supporting humans is even better! 99.5%
Diagnosis by Expert Human AND AI
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“Humanistic AI” is a key perspective . . .
• AI in itself is not a ‘doomsday scenario’
• Not just about eliminating jobs
• Effectiveness is every bit as value-creating as Efficiency• “How AI can enhance our memory, work and social lives”
• Check out Dr Tom Gruber’s TED Talk . . . • Co-creator at Siri• Product Design Executive at Apple• Chief Scientist & Co-founder at Consider Solutions
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The Balancing Act
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Efficiency(Best Execution)
Effectiveness(Best Decisions)
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Up to
80%
of finance effort is spent acquiring and preparing data for reporting, leaving as little as 20% for value added analysis and decision making
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A World of Data Uncertainty
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Traditional, and even “Agile”, responses are too slow . . .
Requirements
Planning
IT Facilitation
Configuration
Results
Cycle TimeX
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“Uberization” of Insight – Speed is a Necessity
Data & ProcessInsight
“Connect & Go”
Intelligent, process-aware services
Nuggets of Gold without the “Blood, Sweat & Tears”
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Fast Insight drives Global Process Alignment & Collaboration
Capability & Skills
Engagement
Communication
Understanding
Collaboration
Shared Vision
Co-ordinated Execution
Performance Improvement & Value Creation“Data Driven Decision Making”
Performance Measurement (Metrics & KPIs)
Detailed Process Execution Insight (Continuous Data)
The New “House”Beyond Shared Services & GBS
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The New House
• It’s not just about the “customer” but the “consumer”• Be very clear on the future business model• Is there a need for “legacy” and “future” separation?• Look beyond ALL silos – efficiency & effectiveness beyond• Embrace Automation – explore, learn, strategize and exploit new ways of adding value
to the consumer• Combine Process and Digital• Dive into Data – fuel the processes, analyse the nuances• Focus on Talent – what is the future and what skills do we need to acquire, develop
and retain
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The Future is Not Just Robotic but Intelligent, Dynamic and Connected• Consumer Imperatives
• Convenience • Speed • Quality• Reliability• Cost
• Enabling Imperatives• Consumer experience• End-to-End process • Digital end-to-end, seamless• Smartly applied smart technology• Data driven decisions
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The New “House” - Future Operating Model – Platform Based?
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Customer Experience, Customer Journey
Business Capability (“Soup to Nuts” Process, Digital End-to-End)
Hardcore Cross-Capability IT Platforms
Derivation: McKinsey
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The Technology Adoption/Disappointment Cycle
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Lessons along the road
“RPA is about fixing the potholes in the road. Do not confuse it with building the new highway”
Steve Gordon, VP Global Service Operations – BD
"Don't trade the entire toolbox for one screwdriver“
Sanjay Srivastava, Chief Digital Office – GENPACT
“One of the myths in AI is that you can AI your way out of something you don't understand”
Anon
“The new technologies are helping us think differently, but in isolation they aren’t the answer”
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The Shape of our Talent will help . . .
Courtesy: Jason Yip
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No “One Hit Wonders” - It’s a continuous journey . . .
“We always hope for the easy fix: the one simple change that will erase a problem at a stroke. But few things in life work this way. Instead, success requires making a hundredsmall steps go right - one after the other, no slipups, no goofs, everyone pitching in.”
Atul Gawande, Better: A Surgeon's Notes on Performance
The “aggregation of marginal gains”, improving everything by a small percentage, is a proven recipe for success
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Review
• Journey so Far• The Shift to Digital • The Burning “House” – Imperatives & Expectations• The Digital Advantage & Intelligent Automation• The New “House” - beyond Shared Services & GBS• Q&A
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“I skate to where the puck is going to be, not where it has been.”
Wayne Gretzky
Reputedly the greatest ice-hockey player ever
Questions or Get Involved? [email protected] French
Founder & CEO, Consider Solutions
www.consider.biz
@consider_ations
Be Passionate
Credit Matters VIII Discovering DNA 2.5
Any questions?APP Feedback please
THANK YOU
Dan FrenchFounder & CEO, Consider Solutions www.consider.biz@consider_ations