defining gbs - dave brown (kpmg)

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Global Business Services Roadmap:Benelux 2015Driving Value & Performance

Defining GBS

Dave Brown, KPMG LLP


What is Global Business Services (GBS)?

An integrated platform to deliver enterprise business services

Drives efficiency and business outcomes

Evolves with the market and company needs

Key Capabilities:

■Multi-functional business processes

■Multi-channel service delivery – outsourced, shared services and centers of excellence

■Process ownership and management

■Common information technology

■Enterprise-wide governance


GBS is a journey: Five levels of GBS maturity

BUSINESSSERVICESMATURITY

• ** Typical Savings with Progressive Maturity • Companies performing at Levels 4 and 5 typically achieve 3-5% higher ROE

Level 01

FRAGMENTED Decentralized service

delivery model Duplicative functions,

processes, and technology Little central control and

governance over business support services

Supply driven delivery model

Level 02

SUB-SCALED Consolidated delivery model Leverage economies of scale

for highly transactional services Shared services or outsourcing

typically on a single-function, regional basis

Supply driven delivery model

Level 03

SCALED Multi-functional service

delivery model that operates in siloes

Variation around the inclusion and level of processes, technology, and governance standardization

Transition to demand driven delivery model

Level 04

INTEGRATED Enterprise wide multi-

functional transactional and specialist business service model

Coordinated processes, technology, governance, and multi-channel delivery for scale and adaptability

Demand driven delivery model

Level 05

STRATEGIC Multi-functional, multi-

channel business service delivery synced end to end

Provides transactional, expert, and analytic services

Managed through integrated, outcome-oriented governance

Demand driven delivery model

** Level 1 to 215%

** Level 2 to 37%

**Level 3 to 47%

**Level 4 to 53%

**At Level 53% Yr-on-Yr


GBS is enabled and optimized by multiple dimensions

CHANGE AND PROGRAM MANAGEMENTA focused, holistic approach for getting the people and the enterprise ready, willing, and able to fully adopt and sustain changes through targeted strategies promoting understanding, buy-in and ownership. Change management helps to achieve greater realization of expected benefits, reduce resistance, and mitigate risks that might undermine the value of the initiative

OPERATIONAL EXCELLENCEOn-going focus on problem solving, improvement, and GBS transformation outputs toward delivering high quality, seamless, and consistent business solutions

COMMERCIAL PERSPECTIVECustomer relationship model defining the way GBS

operates “like a business”, and engages with customers

DELIVERY AND SOURCING STRATEGYThe defined strategic intent of the GBS organization, its purpose and relationship to the overall enterprise

SERVICE PORTFOLIODefinition of the breadth, depth, geographic reach of services provided by GBS

TALENT MANAGEMENTFlexible, integrated enterprise talent management model designed to attract, retain and engage resources

ENABLING TECHNOLOGYCommon technology platform across ERP, applications, and tools to enable standardized services

TAX AND RISK OPTIMIZATIONMonitor and manage change and regulations,

including fiscal, legal, and tax

DATA AND ANALYTICSEnhanced value through the capture, collection,

analysis and visualization predictive and prescriptive analytics

PROCESS EXCELLENCEDeployment of end-to-end service s with

focus on quality, continuous improvement and innovation

ENTERPRISE SERVICE GOVERNANCEAn integrated way of working to engage with

stakeholders and manage overall service delivery


How to define growth strategies? M&ANew marketsNew productsNew businesses

Growth Understand how to better engage with customers.BrandLoyaltyCustomer AcquisitionProduct/Svc Strategy

Customer Engagement

How to make global operations decisions? The most effective operating model?Operating Strategy Global Business Svcs.Shared Services

Global Operations

Where are opportunities aligned to your business? How to manage risk/returnBRIC MEA

Emerging Markets

How to manage uncertainty around legislative change? Where to focus?Government RegulationTax Issues

Legislative Where are the opportunities to reduce cost without impairment to the business?Balance Growth goals with cost reduction

Cost Reduction

Focus on opportunities in new technology while leveraging legacy investments.Digital Mobile SocialIT ConsumerizationInternet of Things Cloud

Technology Disruption

How to focus on the right data to convert to knowledge?Big DataAnalyticsKnowledge to Insight

Data Overload

How to retain, empower and manage this critical corporate asset?Learning & DevelopmentAcquisition & RetentionTalent Development

Talent & Human Capital

Issues facing executives today


Beyond cost savings

Unlock the Power ofData & Analytics

■ Increase sophistication andcentralize DA (remove duplicate systems, add tracking where needed, one ERP system, process requests faster, ability to track process breakdown utilizing analytics, identify missing process controls)

■ Common platforms and common processes and capabilities

Mitigate Overall Business Risk & Ensure Compliance

■ Proactive vs reactive response to regulatory demands

■ Global repository of regulatory requirements (tracking, reporting, and process driven common response to regulatory mandates)

Achieve Excellence & Consistency in Customer

Experience■ Ensure consistent experience to

the customer (uniform and consistent methods and platforms to respond to customer requests)

■ Utilize VOC and validate using internal DA information

■ Implement user satisfaction Indexes

Build Internal Repository of High Quality Talent

■ Build professionals within GBS that can be sourced out to the other business functions and train/provide services – source of internal high quality talent

■ Establish a clearer career path for GBS professionals

■ Leverage skills & build training

Increase Effectiveness & Ability to Scale

■ Need to be able to provide effective services, effective outcomes. i.e., Integrate project management to deploy lean six sigma and continuous improvement and effectiveness of delivery goes up due to centralized leadership of the different functions

Establish a Consistent Brand Experience

■ Improve competitive position

■ Support consistency of global brand experience

Enhance Sophistication & Collaboration

■ Mind shift in terms of professionalism. GBS organizations have much higher level of expectation in terms of it being a provider of choice, and a lever for cost competitiveness

■ Share skills and knowledge across the organization

■ End to end process standardization for non standardized products/services and business units

■ Process owners identification and accountability

■ Process controls and continues process improvement

■ Process automation

Drive Process Excellence


GBS CONSIDERATIONS

GBS models are evolving


What we hear in the marketplace

“Cost cutting is not the priority for us; we are looking for productivity improvement through process improvement and standardization.”

“GBS gets to see data across silos.”

“Before it took 18 to 36 months to roll out financial policy – now we can compress this to one quarter.”

“Anything that helps brand is much more valuable than cost savings.”

“Unique differentiator – we have transformation as an organisation – nobody else has that.”


David Brown, Global Lead, Shared Services & Outsourcing Advisory

BackgroundDave is the global lead for KPMG LLP’s (KPMG) Shared Services and Outsourcing Advisory practice. In this role, Dave provides Shared Service and Outsourcing advice to many of our larger, complex deal structures. Dave has more than two decades of experience in IT and business process outsourcing; shared services design/build/implement, sourcing management; contract renegotiations; and finance budgeting, planning, and analysis. Dave also delivers hands-on services as a client executive and has led many multinational deals and provided leadership support on several large and complex deals for both IT and business processes.

Professional and industry experienceIn addition to advising clients, Dave engages senior members of outsourcing service providers’ financial and IT delivery teams to establish and implement industry-accepted processes and structures related to outsourcing transactions.Before joining KPMG through the acquisition EquaTerra, where he held various senior leadership positions including the establishment of the Financial Architect & Benchmarking practices and was a client executive leading large multinational, multifunctional shared service and outsourcing engagements, Dave was a senior advisor at TPI. In that role, he assisted clients with the evaluation, negotiation, implementation, and management of IT and business process sourcing initiatives. Earlier in his career, Dave held various financial and IT positions in the telecom industry including Southwestern Bell Information Services, Southwestern Bell Directory Operations, Ameritech Advertising Services, and Bell Canada.

Sample client experience Led a large Pharmaceutical company through a Global IT outsourcing transition involving transitions with total contract

value in excess of $1 billion

Led Eli Lilly’s global finance and accounting outsourcing transaction and global shared service design/build and implementation

Provided financial and negotiation support for Unilever’s finance and accounting outsourcing deal (Europe and North America)

Led an assessment of Oil’s (Brazilian Telecom) IT operations, outsourcing and joint venture options. Led negotiations with third-party provider

Led a large U.S. Oil & Gas company through a Finance and Accounting outsourcing transaction providing overall leadership and financial support.

Led a large transportation company through procure-to-pay sourcing opportunity providing leadership and financial support

Assisted several clients with leadership and financial support that were pursuing IT and finance and accounting sourcing opportunities through market assessments of their current finance and accounting environment, or financial support during the transaction or negotiation

DAVID J. BROWNGlobal LeadShared Services and Outsourcing Advisory

KPMG LLPSuite 1600111 North Orange AvenueOrlando, FL 32801

Cell [email protected]

Education, licenses & certifications MBA degree, Finance/Accounting,

Queen’s University in Kingston, Canada

Bachelor of finance degree/accounting, University of Windsor

BA degree, sociology and psychology University of Windsor, Windsor, Canada


Global Business Services Roadmap:Benelux 2015Driving Value & Performance

Defining GBS

Dave Brown, KPMG LLP