Business Process Management Strategy And

Shared Services

Our experience and learning with Shared Services – Strategic insights

• Three broad but different phases of thinking and priorities – Phase 1 is really about standardization and the need to avoid duplication. Phase 2 is about becoming leaner , adopting best practices, and productivity. Phase 3 is really about asking the tough questions around Core and Non Core Capability.

• Phase 3 is the most daunting , yet the most strategic. “Never outsource your future “- Clayton Christensen – “ How to Measure your Life “. Examples abound from semi conductors to PC’s. The definition of “Future “ is driven by Capability .

• Core Capability needs to be Market beating, Relevant to the customer , and a Core part of your business cash accretion. They must be Institutional and pass the 3 R test- Relevant, Repeatable, Replicable .

• Invest and double down /outshine on Core capabilities. Partner and Scale Non core capabilities. Ask whether anyone else can do this better than you constantly ?

• Finance must play a large role in shaping this thinking and lead from the front.

Global Business Services (GBS) set up - centralized India P2P processes

HC-20

MAR 2004

2004-05 Moved India OTC, and EST(Employee Services) to GBS

Set up Travel & Hospitality desk under GBS

Created US-F&A Back office

2009-10 Set up R2R & Treasury Back Office within GBS

Created Europe Back office

2010-11

e SCM evaluation

Implemented several best practices (Mail Room,

Input Control, VOC surveys, dashboards,

knowledge management etc )

Added LDR and SOD Management to GBS

2011-12

Redefined our strategy

Service Partner Identified

HC-150

Our SSC has been the back bone of our BPM strategy

R&D

Manufacturing Engineering

S

U

P

P

O

R T

S

E

M

I

C

O

R

E

C

O

R

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Clinical Research

Clinical Trials

Sales & Mkt

Strategic Support Functions*

Distribution

*F&A, HR, IT, SCM - As Core Support to Business

Finance & Accounts

IT

HR

Procurement

Legal

Real Estate

Fun

ctio

ns

Spre

ad

Spin Off – Third Party

Evolving F&A SSC

Centralization

Shared Services

Co

st R

edu

ctio

n v

s. B

ase

10%

35%

20% Co-sourcing

SSC

as

a B

usi

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ss…

.In

du

stry

Vie

w

Co

re

Sup

po

rt

Augment & Consolidate

Consolidate / Spin Off

Invest Outshine

1 2

3 4

Capability & Maturity

Bu

sin

ess

Cri

tica

l

High Low

Stra

tegi

c A

pp

roac

h

Process maturity

Business Criticality

Sensitivity

Linked to Current OS Portfolio

Cost save potential/

Business Case

Aligned with the strategic

objective

Change Impact

Parameters for considering

Augmentation/ Consolidation and Spin off

De

cisi

on

Cri

teri

a

Strategic context

• Retain core functions and outsource non core to partners for whom this is core

• Make our processes more robust, efficient and disciplined by having access to

operational best practice through new technology, tools and techniques

• The partner would bring global practices and opportunities to interact with

experts

• The employees would get:

• Higher Opportunities of Career Growth

• Multi Skilling or specialisation based on preference and performance

• Job Rotation Opportunities

• To be a part of global organization in terms of clients

• Cost savings as an incidental benefit!

Bring New geographies like Russia, Germany and Mexico under the Umbrella

Core / Non Core Focus

Hybrid Model as an integral part of our BPM strategy

2014 Q3/Q4

2014 Q1/Q2

2013 Q3/Q4

2012 Q3/Q4

2012 Q1/Q2

2011 2013 Q1/Q2

2015 Q3/Q4

2015 Q1/Q2

Review Decision Design & Implement Delivery

F&A Phase -2

MIS, Germany & Russia Accounting

HR

IT

Procurement

F&A Phase -1

P2P, R2R OTC, ES

- Parameters

- Potential

- Consolidation /

Outsource Outsource

-RFP Management

- Solutioning

- LOI

- Due Diligence

- MSA

- Transition

-Service Level

- BAU

Consolidation - Process Design - Baseline Metrics - De/Re Skilling - Transition

9 - 12Months

4 - 6 Months

2 Months 4-6 weeks

Ph

asin

g o

f Im

ple

men

tati

on

Service Partner Selection

Legal

High level road map with focus on value realisation

- Build Global Sourcing Services to drive implementation of future strategy

-Transition

Way forward

Head-GSS

Head-Service Delivery

Head-Relationship &

Vendor Management

Head-Capabilities

and Expansion

- Focus on Customer Experience and Strategic Value

Involvement, Alignment, Transparency, Processing Visibility, Trust Building, Demonstrating Value

Thank You