Building a Glass House: Bringing visibility to the oragnization without bringing down the house

©2013 Software AG. All rights reserved. ©2013 Software AG. All rights reserved.

Bhavesh Joshi Director, Global Cashflow Baker Hughes

John Crupi Vice President, R&D Software AG

Dave Brooks Vice President, Solutions Intelligent Business Operations Software AG October 9, 2013

Building a Glass House Bringing Visibility to the Organization Without Bringing Down the House

©2013 Software AG. All rights reserved. For internal use only

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Today’s Discussion

• Set the Stage: Intelligent Business Operations

• Baker Hughes: Order To Cash Project Before / After / Benefits / Technology

• Panel Discussion: Lessons Learned & Use Cases Bringing Visibility to the Organization Without Bringing Down the House

• Ways of Getting Started (or continuing your journey)


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Real Time vs. Real Value


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Intelligent Business Operations


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What Do We Mean By Intelligent Business Operations? Measuring leading indicators increases Visibility and Agility

Financial Performance

Cycle time

Customer satisfaction

Error rate

Process cost Delivery reliability

Operational Performance gives you the What, How & Why behind the important numbers

Revenue Cash Flow

EBIT ROA

Gross Margin


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Intelligent Business Operations (IBO)

Observe Decide Act

D E C I S I O N P R O C E S S

Environment and Influencers

Data

Context Improve

Automate

Sensors Apps & Systems

Public API

SaaS APPS


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IBO Use Cases focus on Operational Decisions

Time to Decide & Act

Decision Type

Business Reviews Alliances Strategy Markets and Products Business Planning Products & Price Cost of Goods Sold Cost-Benefit Analysis Quality of Service/ Customer Satisfaction

Order & Payment Tracking Partner SLA Tracking & Mgmt Credit Approval Management Exception Management Theft Detection & Prevention Insurance Claim Processing Customer Experience Management Inventory & Asset Tracking Business Process Monitoring Dynamic Resource Management

Use

Cas

es

Years Months Weeks Days Hours Minutes Seconds

Strategic & Tactical Operational

Presenter

Presentation Notes

Preventive maintenance

©2013 Software AG All rights reserved. 8 |

Business Value Track: Intelligent Business Operations Order to Cash | BAKER HUGHES

The Project • 9 Divisions

becoming 1 company: One Baker Hughes

• Focus on the

Order to Cash process

• “Rules Before

Tools” • Enterprise level

project • Significant Change

Management • Part of BPM

journey

Before • No global,

standard Order to Cash process

• Exceptions and discrepancies in early stages of the process resulted in significant rework and effort when it came time to invoice the customer

• Inefficiencies impacted overall Order to Cash cycle time

After • Uniform Order to

Cash Processes around the world

• Dedicated team from Sales Ops, Finance & IT for implementation, training & change management

• Rule-based Alerts drive action

• Business Process Instrumentation monitors events across the entire process

Presenter

Presentation Notes

Total Lapse Days (TLD) Days to Create Debit Memo Request from DMR Complete Date Days to Create PGI from Delivery Date Days to Invoice Create from DMR/Delivery Date Days to RTA from Invoice Creation Days to Send Invoice from Invoice Creation Days to Deliver Invoice from Send Invoice Days to RTA is after Send Invoice Actual Payment Days RTA to Payment (APD) Invoice Amount exceeds $1,000,000 RTA amount exceeds $1,000,000 Credit Memo amount exceeds $100,000 Payment amount exceeds $1,000,000


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Project Magnitude

Note: the numbers represent key process users

Benefits • Global standards

facilitate best practices

• Visibility &

transparency drives operational accountability

• Cross-functional personnel know when appropriate action is needed

• Streamlined process helped decrease Days Sales Outstanding by 1.5 days

Technology • Integration points

Synch & Service XML interfaces (technology agnostic) – no direct connects

• Transport e-mail; Broker webMethods; Translation Layer SAP

• Analytic Engine monitors process-intrinsic metrics and business KPIs in real-time

• System can learn what’s “normal” by day of week and week of month

• Feeds SAP Business Objects for the dashboard


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How Do You Deliver the Right Amount of Transparency?

http://www.treehotel.se/en/location http://www.metmuseum.org/saraceno


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Panel Topics How does Operational Visibility drive behavior?

Once you move the needle, how do you make it stick?

Rules before Tools: What rules are the most

important to get right?

How do you decide “which walls should be the glass walls”?

What challenges did you face rolling out this kind of program?

What were some unexpected surprises (good ones)?


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Questions?

For further information, please contact: Bhavesh Joshi Director, Global Cashflow Baker Hughes, Inc. Phone: 281-209-7383 e-mail: [email protected]

Dave Brooks Vice President, Solutions Intelligent Business Operations Phone: 650-270-6023 e-mail: [email protected]

mailto:[email protected]

mailto:[email protected]

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