enabling enterprises sieze the shared · pdf fileo2c p2p fi-gl hr mdm. copyright @ 2014...
TRANSCRIPT
Copyright @ 2014 Avaali. All Rights Reserved
ENABLING ENTERPRISES SIEZE THE
SHARED SERVICES OPPORTUNITY
Copyright @ 2014 Avaali. All Rights Reserved
Trends shaping SSC
From back office processing to front end customer interaction –we now have tools and apps to automate processes and
interpret meaningful data
Software solutions automate processes and even robotize them like never in the past
Mobile culture changing customer expectations and the way business is driven
A movement from “lift and shift of people” to wide scale transformation of business process enabled by new technology
and platforms
Real capability to change the way business is run
Strong alignment between business
objectives and services
outcomes
Shared services making its strongest re-emergence as a delivery model for a
decade
Close to 25% are heavily re-investing in their global shared service operations
25% of today’s enterprise buyers expect to move to a wide-scale transformation of
business processes enabled by new technology tools/platforms in just two years
The new stakes require enterprises to fix their “analog current” to get a “digital
future” – conversation moving from tactical success in terms of cost reduction to an
entirely new way of servicing internal customers with the support of technology
Key Trends
Copyright @ 2014 Avaali. All Rights Reserved
SSC transformation
Low High
Lo
wH
igh
Le
ve
l o
f a
uto
ma
tio
n
Relative process efficienciesLargely manual
Scan & digitize
Archive – link to ERP transactions
Capture, OCR / ICR
Automate workflow approvals , maintain audit trails, DMS
Fully automate key business processes such as AP, AR, HR etc.
Unified SSC framework – Fully automated & integrated with comprehensive metrics and governance
Transactional talent needs
to transform itself to digital
talent
Knowledge creation vs.
mass collection of
unstructured data
Conversations need to
move further from process
improvement and costs
Copyright @ 2014 Avaali. All Rights Reserved
Transformation in the way processes are
managed
SSC Business Processes
Order to Cash
Fully automated Collection / Remittance
Exception handling Sales order processing Customer
communications
Procure to Pay
Requisitioning Invoice Capture Validation Exception handling Approvals Information Access Archive Vendor
Communications
Fully automated business processes
Outcome based governance model
LOB functions
Executive
Management
Global
business units
Single platform / integrated solution
FI-GL
Automate financial postings
Workflows and approvals
MDM
Consolidate data to
central repository Governance
mechanisms
HR
Employee records Travel Management HR Helpdesk Workflows and
approvals
Other Processes
Contracts Management
CSAT Surveys Reporting &
Analytics
Copyright @ 2014 Avaali. All Rights Reserved
Key challenges
Order Processing Invoicing and
Collections
Remittance Matching and
Cash Application
Reporting
Manual order processing
and acknowledgement
Manual exception
handling and pricing
approval flows
Customer
correspondence
unavailable for reference
Poor customer
satisfaction
Difficult to process and
approve credit extension
requests
Customer invoices and
other collections
correspondence are
unavailable for
reference
Collections follow up &
dunning is manual and
ineffective
High DSO’s
Ageing Analysis is
cumbersome
No alerts and
reminders
Matching remittances to
open invoices is tedious
and error prone
Turnaround times are
high due to manual
exception handling
Difficulty in managing
short remittances
Missing audit trails
Lack of visibility into
process bottlenecks
Lack of
transparency in
outstanding
invoices
No SLA/KPI based
tracking
O2C P2P HR MDMFI-GL
Copyright @ 2014 Avaali. All Rights Reserved
Key challenges
RequisitioningGoods/Service
Receipt
Invoice
ProcessingPayment Run
Information
Access &
Reporting
Cumbersome
approval process
Manual PO/Service
Order creation
Manual
identification of tax
codes, freights,
discounts etc.
No vendor
communication
logs
Vendor T&C’s are
not documented
Supporting
documents are
not attached to
the GR and
service entry
sheet in ERP
Manual routing of
supportings to
different depts.
like Quality,
Excise, Admin
etc.
Invoices are not
digitized
Manual
validation of
invoice data
Manual process
for approvals &
exception
handling
Processing time
is high
Unable to qualify
for cash
discounts
Payment
processing is
time consuming
Different
stakeholders
involved for
different types
of payments
Difficult to track
to completion
Missing audit
trails
Lack of visibility
into process
bottlenecks
No unified view
of liabilities
No SLA/KPI
based tracking
Access to the
physical
documents is
time consuming
O2C P2P HR MDMFI-GL
Copyright @ 2014 Avaali. All Rights Reserved
Key challenges
Financial Postings
Posting Requests are received from multiple departments
Different types of postings need to be handled
Manual routing of posting requests to multiple departments for verification/further information/approvals
No clear visibility across the organization
Difficult to meet compliance requirements
O2C P2P HR MDMFI-GL
Copyright @ 2014 Avaali. All Rights Reserved
Key challenges
Employee Records Management Travel Management HR Helpdesk
Paper documents
Frequent copying and mailing of records
Fragmented storage of documents
Error prone processes, misfiling or total loss of paper documents
Restrictions to unauthorized access cannot be guaranteed
High storage costs ,effort and compliance issues
Low employee satisfaction
Printing and copying of receipts
Postage/courier of supportings
Paper archives are difficult to manage
Exception handling and approval workflow are manual
Frequent Late reimbursements
Expense frauds
Audit requests are difficult to meet
Inconsistent application of policies
Required trained staff
Limited track of case histories
Slow resolution of issues
Limited SLA/KPI based tracking
O2C P2P MDMFI-GL HR
Copyright @ 2014 Avaali. All Rights Reserved
Key challenges
Master Data Management
Low master data quality
Duplicate master records
Manual approval flows and exception handling
High processing time
Keeping track of request status is cumbersome
Audit trail of changes are often missing
Retention management - No process to purge obsolete master records
O2C P2P FI-GL HR MDM
Copyright @ 2014 Avaali. All Rights Reserved
SSC Strategy & Consulting
Evaluation and Recommendation of Best of Breed technology solutions
Implementation services
Support services
Offerings
Avaali’s Offerings for SSC Enablement
Processes & Technologies
P2PO2C HRFI MDM
Scanning
& OCR
ERP
IntegrationWorkflows
Document
Management/
Archiving
Reporting
Copyright @ 2014 Avaali. All Rights Reserved
Process Automation in SSC
Customer Order Processing &
Validation
Order acknowledgement
Sales order creation
Invoicing & Collections
Remittance matching and
Cash ApplicationReporting
- Scan & capture Customer order
- Archive customer PO & establish
link for future reference
- Initiate workflows to handle
exceptions
- Send acknowledgement for customer
order
- Document all customer
correspondence and clarifications
sought
- Automatic Sales order creation
- Workflow for pricing approvals
- Customer PO & other communication
details are attached to the sales order
- Communicate delivery date, credit period
& other details to the customer
- Create and send invoices to customers
- Run Ageing analysis reports with pre-configured
thresholds and rules
- Automatically trigger alerts for customer follow-
ups
- Refer to prior correspondence and order/invoice
details
- Automatically capture and validate remittance
details
- Match payments automatically to invoice line
items and clear them
- Workflows for exception handling
- Archive bank statements etc. and attach them
in ERP for future reference
- Constant online visibility
- Complete audit trail of entire
process
- Reporting based on various
KPI’s/SLA’s
O2C P2P HR MDMFI-GL
Copyright @ 2014 Avaali. All Rights Reserved
Process Automation in SSC
Process Purchase
requisition
Order confirmation
Goods receipt
Capture & Validate
incoming Invoices
Invoice Processing
Information Access and Reporting
Payment Run
- Auditable workflows for
purchase requisition approval
- Automated Purchase/Service
Order creation
- All Vendor communications
are saved/archived for
reference
- Capture order confirmation
details and match data with
PO in ERP
- Automatic creation of order
confirmation document in
ERP if required
- All supportings are archived
and attached to the
GR/Service Entry Sheet in
ERP
- Workflows triggered to
Quality and Excise
Departments for verification
- Paper invoices are scanned
and subjected to OCR,
- Line items are matched
against the PO
- Digitized documents are
archived and linked to ERP
- Liability reporting
- Dashboards based on
various KPI’s/SLA’s
- All P2P documents are
visible in ERP in digital
form with controlled access
- Business rules are
checked based on invoice
type
- Workflows are triggered
for approvals & exceptions
- Straight through
processing
- Audit trail maintained
- Workflows are triggered for
payment approval based on
payment mode
- Original invoice and all
supportings are accessible
for approvers
- Audit trail maintained
O2C P2P HR MDMFI-GL
Copyright @ 2014 Avaali. All Rights Reserved
Process Automation in SSC
Financial Postings request
Approval Workflow Process Visibility
- Communicate a posting request to the finance area.
- Submit the request through a simple-to-use web
application or ERP user interface.
- Single entry point for all posting requests
- Automated workflow for approval
- Requests directed to multiple recipients for additional
information or corrections,.
- Once approved request proceeds to authorized
financial service area for posting.
- Full overview of all requests, transactions, and
processing status.
- Clear audit trail of all change requests improves
reporting ability and compliance management.
- Clear visibility into entire process.
O2C P2P HR MDMFI-GL
Copyright @ 2014 Avaali. All Rights Reserved
Process Automation in SSC
Employee Records
Management Travel Management HR Helpdesk
- Process standardization and automation
- Centralized management of employee documents
- Automated workflows for
approvals/verifications/exceptions/deletions
- Digitized Employee records
- Self service portals for employee, manager and HR admin
- Self-service scanning and assigning of receipts
- Automatic capture of receipt details and automatic matching to
trip details in the backend system
- Archiving functionality
- Complete audit trail and history of all e-receipts
- Self Service portals
- HR Call Tracking
- Workflow for Helpdesk
- Knowledge repository based on activities
- Integration with ERP systems
- SLA-based Reporting
O2C P2P MDMFI-GL HR
Copyright @ 2014 Avaali. All Rights Reserved
Process Automation in SSC
Master Data request Approval Workflow Process Visibility
- Web forms for raising requests
- Centralized processing of requests
- Tracking of requests and status, with
ticket details and audit trail
- Automated workflow for approval
- Workflows for additional info and verification
- Control of Master data requests
- Full overview of all requests, transactions,
and processing status.
- Clear audit trail for reporting and
compliance management.
O2C P2P FI-GL HR MDM
Copyright @ 2014 Avaali. All Rights Reserved
SSC - Benefits
1. Best in class business processes
Standardised and streamlined processes
Automated processes with faster turnaround time
Fully compliant processes
2. Driving best in class outcomes
High service quality due to automation & visibility
Reduction in DSO, Invoice Cycle time leading to
better vendor relationships / better discounts,
accurate and updated GL
3. Better transparency and Visibility
Dashboards and SLA tracking
Outcomes vs. business objectives
Faster decision making
Copyright @ 2014 Avaali. All Rights Reserved
OpenText Vendor Invoice Management for
Tata Sky
Customer Profile:
- One of India’s largest
Media/DTH Companies
- Over 10 million
subscribers with coverage
for over 36,000 towns
across IndiaSolution Highlights
• Advisory services to design and setup
SSC for AP/P2P operations, including
handling transportation invoices
• Implemented OpenText Vendor Invoice
Management including Invoice Capture
Center for OCR
• Solution cut across various departments
with order to pay process variations for
post-facto and pre-facto invoicing
• Solution catered to various invoices
sizes with huge number of supporting
documents
• DMS setup for both AP and non-AP
documents
Benefits
• Lower invoice cycle time from 7 to
2 days
• Reduction of FTE in AP by 3
people in < 1 month
• Scalability to process 4x growth in
invoices
• Improved visibility over current
liabilities and AP process
bottlenecks
Challenges & Opportunities• No central location of receiving and processing invoices, hence no clear picture
about pending liabilities and bottlenecks
• Lot of offline correspondence and approvals in AP that are not documented or
recorded in the system
• Non-standard business rules for invoice approval and processing
• Periodic reporting and reconciliation was problematic
• Many issues in handling 3-way matching and associated exceptions
• No digitization of invoices and associated documents
Copyright @ 2014 Avaali. All Rights Reserved
Shared Service Center Automation
Customer Profile:
- diversified conglomerate
with operations in over
30 countries
- strong presence in more
than 100 markets around
the world
- Over USD 600 million in
revenues
- 7500+ employees
Solution Highlights
• Advisory services - identified current issues
and recommended SSC best practices
• Evaluated best of breed technology vendors
and recommended the best fit.
• Implemented Readsoft scan & OCR solution to
digitize vendor invoices, customer orders,
customer payment advices, cheques etc.
• Implemented Readsoft Process Director AP,
AR & Sales Order modules for automated
business rules, exception handling and
workflows
• Touchless processing capabilities
Benefits
• Reduced invoice cycle time and
errors
• Reduced DSO
• High volume processing without
increasing AP & AR headcounts
• Complete digitization and
paperless office
• Improved visibility over current
liabilities, open customer
invoices and process bottlenecks
Challenges & Opportunities
• Remote locations in India and abroad where paper documents where processed
• No digitization and electronic movement of documents
• No standardized business rules to manage P2P and O2C processes
• Lack of visibility on process status and bottlenecks
• Error prone vendor invoice processing and no way to identify duplicates
• No standard payment authorization process
• Remittance matching and cash allocation issues
• High cost per document
Copyright @ 2014 Avaali. All Rights Reserved
FURTHER INFORMATION
WWW.AVAALI.COM