Shared services secret 7: Don't be defeated by ERP and ERP Complications
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Transcript of Shared services secret 7: Don't be defeated by ERP and ERP Complications
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Secret No.7: BeTenacious
It Helps to Have the Skin of a Rhino – don’t Be Defeated by ERP and Re-Engineering Complications
Péter VillányiAvis Group Business Support Centre18th March 2009
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Agenda
• Avis - Background
• Avis – Shared Service Centre History
• Financial Systems Transformation
• The Next Generation
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Avis – BackgroundAvis Europe is a leading car rental
company in EMEA and Asia
Avis Europe• 8 million rentals annually• 14 corporate countries with 1,800 locations• Licensee network across 94 countries with
1,200 locations• Combined annual revenue €2.1bn• Around 18% market share in Europe
(includes Budget 3%)
Budget Europe• Coverage across 63 countries in 800
locations• Combined revenue of €450m
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• Opened call centres in 2000 (Manchester, Barcelona)
• Opened Business Support Centre, in Budapest, for finance and administrative services in January 2004:
– Scope: Accounts Receivables and Payables, Financial Accounting, Customer Services, Databases, IT
– Markets: UK, Germany, France, Spain, Italy, Netherlands, Austria, Switzerland, Belgium, Portugal
– Headcount: currently 340
– ERP: none – access to country legacy systems and CODA
Avis : Shared Service Centre History
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The Keys to Implementation Success – classic list
• Top Management Support – 93%
• Recruitment in the SSC – 70%
• Change management mentality during project - 66%
• Early & Effective communication to affected persons – 57%
• Gaining Quick Wins – 40%
Source – The Hackett Group, ‘Fourth Annual European Shared Services Organization Study 2005’
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Solutions to Reality – Customer Focus
Organizational Buy-In
Scope
Managing customers of the centre
Corporate strategy, with C-level sponsorship, or if in doubt mandate it!
Absolute clarity from start, included in signed off strategy
Clear Customer Relationship Model, include pricing and issue escalation!
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Solutions to Reality – Operations / Process FocusBusiness systems or
processes suitable to a SSC approach (ERP)
Planning – program linked, communicated & achievable across total business
Transition approach correct
Getting quality at the right mark
Process re-engineering required specifically to address document exchange – ERP nice, but not essential
Comes back to business strategy – this solves most things, but still requires right talent
Many ways to do this across different cost perspectives – in the SSC or in country, or mix. Need to be flexible! PMO & methodology vital
Simple / clever processes essential – success then in KT and People, supported by effective customer relationship model
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Solutions to Reality – People IssuesSSC & location skills /
experience
Manage attrition
Change / Project Management resource
Recruitment
Reward & Motivation
Essential to have right start up experience for a SSC (not just a finance operation), same for location. Buy-in carefully!
Reflects success in other areas: scope, reward, management and vision
Enabler to establish the SSC, but also the change in business. Buy-in carefully!
Success driven by project methodology – timing, roles, mechanics
Survey + skills based, plus career management
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Solutions to Reality – Financial Issue
Issue:– Business Case in place / achievable
(Hackett Survey: 15% of SSC survey respondents expect > 40% cost saving, 34% > 20%, 34% expect saving > 11%)
Solution:• Ensuring the business case is do-able – customers, business,
systems, volume driven • Managing hidden costs of implementation• Controlling the business case• Benefit realization program starts very early
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Final Conclusions on SSC implementationSSC Opportunity assessment
Business case
Organization Buy-in
Planning, CRM, Transition, Key People, Communication
Recruitment, Reward, Quality
Quality Management, Attrition, Benefit Realization
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New system solutions
• Flexibility vs. standardisation
• One system cannot deliver best practice on all processes
• Process by process approach– Financial and Supplier processes– Customer supporting processes
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Financial Processes - Reality check
• Achieved efficiencies when first set up
• Finance system was outdated and unsupported
• Needed to move systems to achieve more efficiencies
• Requirement for up to date technology
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Objectives of the project
Aim to drive further efficiencies through the organisation with new finance system:
• Reduced processing costs & errors• Meets local country requirements• Integration with local business systems• Standardisation• Easy to use• Improved efficiency, less cost
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Evaluation
Key criteria for new finance system:
• Not ERP
• Single instance
• Capability to support local countries
• Latest technology but proven
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Evaluation
Chose Financials from CODA
• Latest ‘Neon’ release• Proven international capabilities• e-Procurement• Process control
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The Roll-out
• Live Oct 2007– Germany, Portugal
• Live Jan 2008– UK, Holland, Belgium, Luxembourg
• March/April 2008– Austria, Switzerland, France
• May 2008– Italy, Spain, European HQ (~40 entities)– Inter-company processes
• Strong functional support for a year
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Roadmap for the Next Generation initiatives
BSC(current status)
BSC(current status)
BSC Next Generation
Program
BSC Next Generation
ProgramNext Generation
BSCNext Generation
BSC
• Is not just about the BSC• Improve process and
services E2E• Combined effort by BSC
and countries• Provide a basis for
expanding BSC services• Build competence for
continuous service improvement
• Increase Partner Satisfaction both in the countries and in the BSC
• Benefit from labour cost arbitrage
• Transfer additional service and volumes
• Centre of Competence for continuously improving service quality and increase service efficiency
• Efficient , harmonized and effectively managed E2E processes
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Overview of the Next Generation projects• Improve Avis capability to collect outstanding debt more quickly
and reduce cash flow and interest on paymentsReceivable Project
• Increase efficiency by an automated workflow• Improve Customer Satisfaction by improving quality of data
DatabaseProject
• enhancements to the current CODA versionCODA Phase IIFAC Project
• enhancements to the current CODA versionCODA Phase IIP2P Project
• End to end view of back office processes. Using RACI charts at startegic, tactical and operational levels
Roles & Responsibility
• Define the job requirements of all key process roles, identify training needs and deliver training more effectively and efficiently
Training and Skilled Res.
• Standard framework for process mapping and procedure documentation
Process Management
Process Improvem
ent Projects
Enabling Initiatives
• Using Lean Six Sigma tools to define process quality goals• Set up quality KPIs
Quality System & KPIs
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