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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
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C
O
R
E
C
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R
E
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
ne
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