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Mastering SAP Financials 2010
CIARAN MARA
PROCESS SOLUTIONS MANAGERORICA
Shifting Gears - Driving Efficiency: Using innovative automation technology and solutions for better
performance in your SSC
Mastering SAP Financials 2010
Overview
Global Trends
Value, Advantages & Opportunities of SSC’s
Where to begin, Enhancing your SSC with Partners
The challenge of Change Management
Questions
Mastering SAP Financials 2010
Introduction15 years in finance, focused on process improvement in SSC’s.
Implemented Reporting & Scanning systems in Australia, New Zealand, Singapore, Canada & USA for Shared Service Centres.
Project Managed, Trained, Conducted Change management, Communications and implementations of 5 Readsoft Scanning solutions Globally with Orica and one Back end scanning solution.
love my Rugby Union, Travel and experiencing Different cultures
Mastering SAP Financials 2010
SSCs becoming increasingly strategic…
Deloitte 2009 Global SSC Survey Results“Companies are continuing to expand their SSC operations – we see the pace of
activity and global deployment...at an unprecedented pace”“Largest increases in participation over 2007 were in Financial Services,
Transportation and Public Sector industries”
The Hackett Group“Shared services are becoming more strategic. “Link to strategy” is a driver for
shared services” and “76% of SSCs rate Finance as top function”“World-class finance organisations have reduced cost of finance from 1% to 0.59%
of revenue from 1998 to 2008” (2008 Finance Benchmark)
EquaTerra“Experience in both the private and public sector indicates
that shared services can deliver 20 to 70% savings”
Mastering SAP Financials 2010
High level Drivers for SSCs
Implement a consistent, harmonized set of best practice businessprocesses across a region
Standard business processes and transparent information allows for easier and faster integration of acquisitions
Improve process efficiency & effectiveness by leveraging scale
Mastering SAP Financials 2010
Competitive Advantages of a SSC
Mastering SAP Financials 2010
Automation is key to driving value in SSCs
Business process improvement platform
Common and scalable back-office processes
Governance and compliance
Efficiency and effectiveness
Predictable performance
Mastering SAP Financials 2010
Processes Going Paperless…
Requisitions
Master dataupdate/create requests
ACCOUNTSPAYABLE
FINANCE
PURCHASING
CONTROLLING
RECEIVING
DATA CAPTURE
Incominginvoices
Financial postingrequests
DATA CAPTURE
Delivery notes
Purchase to Pay
Master Data
Order to Cash
Finance
RequisitionOrder ConfirmationDelivery NoteIncoming InvoicePayment Approval
Customer OrderRemittance Advice
Vendor MasterCost CenterProfit Center
Financial PostingCorrections
Mastering SAP Financials 2010
Request & Paper driven processesSomething that most organizations have in common
They are full of business processes and those processes are often full of problems that cause additional expense or worse.
• Processes run manually and without any way to control them
• Incorrect changes in master data• People try to bypass established processes• Maverick procurement• People avoid using complicated systems• Quality of service is low or varies in quality
and cannot be guaranteed
• Processes run manually and without any way to control them
• Incorrect changes in master data• People try to bypass established processes• Maverick procurement• People avoid using complicated systems• Quality of service is low or varies in quality
and cannot be guaranteed • Slow processes• Expensive processes• No transparency• Wrong postings and excessive corrections• Low or no visibility into the process• Difficulty in maintaining compliance • Department’s reputation in the organization
is harmed
• Slow processes• Expensive processes• No transparency• Wrong postings and excessive corrections• Low or no visibility into the process• Difficulty in maintaining compliance • Department’s reputation in the organization
is harmed
• Phone based service• Email based service• Paper based service
• Phone based service• Email based service• Paper based service
Mastering SAP Financials 2010
Key benefits to transforming processesAutomate and control processes and master data
Lower costs in your core service areas
Improve productivity throughout the process chain
Improve service to the entire organization
Increase visibility – measure what was previously unseen
Ensure compliance both internally and externally
Maximize the investment in your ERP
Mastering SAP Financials 2010
Traditional AP Process is broken…
No controllable & measurable platform for improvementSupplier noise (Queries and Follow-Up)Invoices arriving after Due Date for paymentMissing and duplicate invoices (2%)Inability to take advantage of early payment discountsMoving from a “processing” to a “value-add” function
Mastering SAP Financials 2010
A reality check on cost reductions
Invoice elimination & consolidation strategies
Impact on pricing for poor DPO – P2P inefficiencies
Inability to leverage TWC improvement
Re-work for Buyers/Procurement
Cost of storage, photocopies, call and noise.
Inefficient use of Procurement/Buyer time administering
Inability to address true P2P inefficiencies
Mastering SAP Financials 2010
Mitigate risk by partnering with Experts
Importance of partnering with AP specialist/veteran
Leverage investment for continuous improvement & growth
Change Management
R&D (future-proof)
Mastering SAP Financials 2010
Process efficiencies & effectiveness…
Reduced processing costs within AP and the wider business
Standardise processes, improve AP efficiency and enhanced SLAs
Improved control and scalability of AP process to support continuous improvement initiatives
Reduction of costs through early payment discount schemes
Improved invoice visibility and cash management
Governance and compliance
Mastering SAP Financials 2010
AP Automation pays dividends…
Enabling Supply Chain Financing
Duplicate payment / Credit recovery capability
GST benefit of recognised invoices
Efficient P2P process enables price savings for consistent on time payments
Improved cash utilisation of improved forecasting – Funding and Cost of Debt improvement
Mastering SAP Financials 2010
It’s a Journey…
Traditional
Learning
Advanced
Top-Performer
SilosEfficiency-focusedMinimal metricsDecentralisedManual process3-way match / all approvalsLow technology enablementNo SLA with customers
End-to-End P2PPerformance Mgmt. & continue improvementCentralised / low-cost locationAutomated processOptimised transaction strategyHigh levels technology enablement
The migration to Top-Performer is a journey attainable through Strategy, Process Optimisation and Business Process Globalisation
Mastering SAP Financials 2010
AP is only the beginning for SSC automation
Transitioning from processing to a value-add partner
Supporting key strategic business initiatives
Redefining roles, expectations and targets
Change Management and committing to improvement
Mastering SAP Financials 2010
Key Points to take home
Business process automation is a journey
Value in creating a controllable, measurable platform for continuous improvement
SSCs have the opportunity to automate all paper and request driven processes
Challenge for SSCs is in driving/supporting change management for “customers”
Mastering SAP Financials 2010
Questions
0