transforming to global business services
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General Electrics GBS Emerging Market story and strategyTRANSCRIPT
Transforming to Global Business ServicesSep, 2011
General Electric
Global Business Services
Anirvan Sen
GE Background…
1 /SSON SingaporeSeptember, 2011/
General Electric - Portfolio
Energy Infrastructure
• Energy products & services• Oil & Gas• Water purification
Technology Infrastructure
• Jet engines and services• Rail & Marine propulsion• Healthcare• Security / Sensing/ Factory Automation
2 /SSON SingaporeSeptember, 2011/
NBC Universal
• Television networks • Film• Parks & resorts• Production & distribution
GE Capital
• Real Estate financing• Business leasing / loans• Fleet services• Healthcare financial services• Equipment Financing• Consumer loans
Consumer & Industrial
• Light bulbs• Electrical appliances • Electrical distribution
U.S.$72B
GE Around the World
Europe$37B
Asia Pacific$21B
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Canada & The Americas$13B
Middle East, Africa & Others$14B
2009 revenues total 157 billion with over 300,000 employees.1 Includes U.S. exports to external customers2 Includes $~5B from “Other Global” areas
GE-GBS Emerging Market Story…
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MEA example … exponential growth
Kuwait
Pak
Saudi Arabia
Lebanon
Iraq
U.A.E.
QatarJordan
Bahrain
AlgeriaLibya
Tunisia
DRCRwanda
Kenya
Ethiopia
Sudan
Eritrea
Nigeria
Chad
Niger
Guinea
MaliMauritania
C.A.R.
Egypt
Liberia
IvoryCoast
Senegal
B.Faso
Cameroon
2011
Kuwait
Pak
Saudi Arabia
Lebanon
Iraq
U.A.E.
QatarJordan
Bahrain
AlgeriaLibya
Tunisia
DRCRwanda
Kenya
Ethiopia
Sudan
Eritrea
Nigeria
Chad
Niger
Guinea
MaliMauritania
C.A.R.
Egypt
Liberia
IvoryCoast
Senegal
B.Faso
Cameroon
2004
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Zimba-bwe
ZambiaAngola
Rwanda
Tanzania
Served remotely in ‘10
Physical Presence
Planned for ‘11
… from 12 EEs & 7 countries in ‘04 to 240 EEs & 35 countries in ‘11
Zimba-bwe
ZambiaAngola
Rwanda
Tanzania
Presence
Model comparisons
• In house teams
• People run processes
• High micro management
• Tailor made business biased processes
• Challenges with fraction FTE support
Conventional Ops
• Shared teams across organization
• People agnostic, strong process culture
• Management by metrics / remote management
• Processes standardized across businesses
• Scale available for partial FTE increase
Shared Services
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• organi process standardization
• IT systems limited scalability/flexibility
• Manual touches
• Dependent on relationship capital
• Industry standards used
• Global platforms leveraged
• Digitized
• Repeated exceptions converted into processes
GE-GBS Strategy…
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GBS Strategy – Financial Services
SBSTrans.
Accounting, GL
Accnt Payables
Acct Rec.
Payroll
All Other
Product Adaptation: Small & new sites� Establish GE footprint & controls
� Rigorous on-boarding process
Aggregation: Mature centers� Regional COEs for key processes
� Business specific COEs
Arbitrage: Mature / Value add centers� Achieve global economies of scale
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STAT
TAX / VATMonthly Taxes
Annual Taxes
Fin. Reports
Stat. Books
Stat Returns
Seamless integration with Stat & Tax…
� Achieve global economies of scale
� Transfer work to LCC
� Automate / standardize Processes
Attract, Develop & Retain GE talent� Big 4 skill set… GE mindset
� Center Leader to Controller assessment
Accelerate systems consolidation� New Navision/Oracle Financials
� P&E and e-T&L addressing functional needs
� Standard applications vs. “one offs”
GBS MEA: Product Strategy Summary
Accounts Payable
Travel & Living
Reporting and GL
Payroll
Stat & Tax
Legal Entity Management
HR Processes
55 GBS MEA IT Platforms
Traditional Model
Accounts Payable
Travel & Living
Payroll
Stat & Tax
Legal Entity Management
HR Processes
Valu
e t
o C
usto
mer
92 SBS IT Applications
Outsource Enhance Expertise
Simplify IT
GPB Model
Valu
e t
o C
usto
mer
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Fixed Asset Facility Management
IT Coordination
Indirect Sourcing
Complexity
Fixed Asset
Customs Operation
Inventory Accounting
Facility Management
IT Coordination
Indirect Sourcing
Complexity
Valu
e t
o C
usto
mer
Outsource Return
Build Expertise on ValueBuild Expertise on Value--Add to BusinessAdd to Business
Valu
e t
o C
usto
mer
Migrating to Hub-Spoke…
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Implementation roadmap
Morocco
Tunisia
Lebanon
Saudi Arabia
Yemen
Oman
UAE
Kuwait
Qatar
Bahrain
Iraq
Syria
Jordan GENPACT India
AFRICA
ME• Kenya CoE (in-house) :
• supporting Sub-Sahara Africa
• Algeria CoE (in-house):
• supporting North Africa
• Genpact (Outsource):
• Jaipur & Gurgaon, India
• supporting UAE, Qatar, Bahrain, Saudi
MEA Hub & Spoke model - ExampleCoEs at a
glance
Site selection Criteria
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Ethiopia
Algeria Egypt
Kenya
Tanzania
South Africa
Angola
Nigeria
Ghana
Morocco
Libya
Zambia
BeninDR Congo
Chad
Senegal
E Guinea
Ivory Coast
Kenya CoE ’10-11
Algeria CoE ‘09
Algeria CoE ‘10
Kenya CoE ‘09Genpact ‘09Hubs
Genpact ’11-12
• Ge Presence in the country
• Inflation rate
• Corporate Tax
• Technological Infrastructure
• Political stability & Security
• Government Incentives
• Geographical Connectivity (flight connections)
• Business/Supplier environment (corruption index)
• Financial Institutes (tax, judiciary)
• Employment law & Visa
• Language Skills (international English, other languages)
• Availability of skilled force
Process selection matrix (Finance Related
processes)
Tra
ns
ac
tio
na
l Outsource/Hub• AP Invoice processing • C& B/ GME/T&L/Non T&L processing & audit • Supplier reconciliation • Vendor creation • Preparation of payment proposal• IBS processing • Monitoring Funds in Bank• Accounts Receivables • Preparation & Review of Accounts Reconciliations• Journal Entries Posting (Accrual Amortization)• Trial Balance Submission• GE shares & Payroll processing• Query resolution for vendors/employees• Monthly reporting to GBS
In Country
•Petty Cash•Check Handling•Receipt of Invoice•Scanning of invoices/Claims
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Low
Consolidation Feasibility
High
• Monthly reporting to GBS
• Review of Account Reconciliations• Payment approval • PO Final approval • Final Approval of Journal entries•Controllership•LE Management•Stat/Tax mgmt and filing•Issue Resolutions / GE Biz Relationship•ProjectsJ
ud
gm
en
tal
(Need for physical proximity, extent of user department interaction)
• Review of Journal entries• Management Reporting• 1st leadership review of Acc Recs, TB Submission and other critical processes
GBS MEA IT Direction - ExampleMEA Applications Landscape
c
14
AP FA GL AR Payroll T&L Stat
8 8
5
Total Platforms in GBS : 55
87
5
20+ Centers
cc
� Quick Implementation
� Suited for small sites (less complexity)
� HQ Supported Implementation
� Multiple functionality availability
� MS Excel like look and feel
Navision
Oracle
Pla
tform
So
lutio
ns
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1.Reduce # of IT systems / platforms
2.Need a system allowing regionalization
3.Address urgent needs in growth countries
4.Provide platform for new centers (15+ in ’09-’11)
MEA IT Imperatives
Oracle
� Global Industry Standard (high talent
availability)
� Preferred platform for Integration and
Regionalization
� GE Expertise
� Multiple functionality availability
� Ease of interface with other applications
Pla
tform
So
lutio
ns
Questions and Questions and
14 /SSON SingaporeSeptember, 2011/
AnswersAnswers