14-15 September 2016

Lisbon, Portugal

#DeloitteSharedServices

Deloitte Shared Services, GBS & BPO Conference

Plenary 2: Vodafone – Implementing a large mixed ownership Global Business Services model

Steve McCrystal, Vodafone

Vodafone Shared Services

Presented by Steven McCrystal

3

VodafoneOne of the world’s largest telecommunications

companies with a presence in Europe, Africa, the Middle East and Asia Pacific

£ 37.2 billionMarch 2016

Service revenue

The Group has significant international presence with mobile operations in 26 countries, 55mobile partner networks worldwide and fixed

broadband operations in 17 markets delivering great services to ~500m customersC1

A converged communications leader

Corefootprint Number 1 or 2

Four growth engines

• Data• Fixed• Emerging markets• Enterprise

in mobile

Unified communicationsPath to

Deeper and stronger in existing markets

Leading data network quality

Strong service revenue growth

Vodafone’s Strategy

Our Journey… Shared Services as a Key Strategic lever

20062007

2009

2011

2014

2016

050

600

4,200

20,000

13,500

Approved a single ERP to enable

standardization

First shared service centre established in

Budapest

India & Egypt begin to deliver Customer Operations and

Technology services

Shared Services Mgmt Committee

Established

Optimize global footprint; Romania

One Vodafone Shared Services to maximize

value

SHARED SERVICES

C1

A continually expanding portfolio of capabilities…

Finance

• Procure to Pay

• Reporting cycle

• Cash management

• Management accounting

• Sourcing

• Contract mgmt.

• Purchasing operations

• International mobility

• Front/back office (Ask HR)

• Learning & Development

HR

SCM

• Bid & Pricing

• Marketing & Sales

• Contracting & Legal

• Technology Operations

• Webchat

• Voice

• Back office

• Telesales

• Application development

• Application operations

• Application maintenance

• Testing

• m-care solutions (mobile app dev)

• Web portal / e-commerce and retail

• Robotics

• Social Media

• Network Optimization

• Firewall Services

• IP & VPN connectivity

• Data Management Reporting

• Predictive analytics

• Insights

• Sentiment analytics

Customer Care

Digital

Networks

BI/ Analytics, Research & Insights

Fraud & Security

IT

Enterprise

Our Strategic Objectives

• Increase VSS penetration

• Optimize and expand Footprint

• Leverage expertise in Shared Services

• Develop innovative products and services

• Do it better & smarter

• Embrace automation

• Digital Shared Services

Value creation is the measure of our success

VSS Digital vision

Define & embed a standardized digital

maturity index into our processes

Learn, adapt, drive, and implement new digital technologies to be an agile organization that creates competitive advantage

Implement the optimal process automation solution to “boost” process productivity and service

quality

Free up capacity enabling crowdsourcing capabilities

and solutions

Strengthen the digital security infrastructure to

protect our company, customers and

employee data

Digital Processes

Driving Digital

Embedding a standardized digital maturity index and applying the most effective technological solutions

Digital Index drivers

Robotics Mobility Social

Analytics Cloud

Digital Processes

Digital Processes

CLASS 1Basic Process

Automation

Interfaces

Batch Processing

Screen Scraping

+

+

CLASS 2Enhanced Process

Automation

Rules Engine

Multi System

Enhanced Controls

+

CLASS 3Autonomic/

Cognitive

Advances in Technology Automation

Artificial Intelligence

Natural Language

Processing

Machine Learning

Adaptive Alteration

“Big Data” Analytics

Large-scale Processing

Digital Processes

Digital Processes

Flexible Workforce to build a sustainable competitive advantage

FUTUREPRESENT

Fragmented workforce

management tools

Innovative is not a shared

behavior across teams and

organizations

Low levels of collaboration

3

54

Siloed and static workforces organized around specific skills and functions

Agile organization taking advantage of digitalization to boost ideation and strengthen talent sourcing

Training is structure by core

departmental core competencies

Siloed work generally aligned

by business function

Skills matrix

Continuous training is core

Crowdsourcing

“Think box”

1 2Project

oriented

Digital Processes

Digital Processes

Effectively manage a complex governance structure to drive continuous growth and customer experience excellence

ExCo

VSS Management Committee

VSS LTC

ust

om

er O

ps

En

terp

rise

BI

Fin

ance

HR

Tech

no

log

y

En

abli

ng

Fu

nct

ion

s

Sh

are

d S

erv

ice

s

Partners: Local Markets, Group Functions, 3rd Parties

Endorse strategy & sponsor execution

Steer the business & approve roadmap

Define strategy to maximize benefits & drive operational excellence

Ensure a holistic approach

Lessons Learnt

1. Be relevant

2. Shared services are always great…when they report to you

3. Say ‘No’ more

4. Don’t obsess on operating model/ownership – be pragmatic

5. Digital is real…lead or get out of the way

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