Structured FINANCE, Stuttgart, 25 November 2015 Presentation by Pascal Visée
DRIVING COMPETIVE EDGE WITH INTELLIGENT OPERATIONS
2 P Visée GEE ! 2015 ©
CONTENT
Brief personal intro
Case Study Unilever GBS journey
Intelligent Operations
Plenary discussion
3 P Visée GEE ! 2015 ©
MY CV IN 17 IMAGES
Fin Dir
Finland
SVP Finance
North East Asia
Fin Dir
Germany
SVP Finance
Europe
Group
Treasurer
Chief ES
(GBS) Officer
Supervisory
board
Supervisory
board
Supervisory
board
Supervisory
board
Supervisory
board
Independent Advisor on
Business Ops & Technology
Born NL1961 MSc, LLM,
CA Military
service
4 P Visée GEE ! 2015 ©
CONTENT
Brief personal intro
Case Study Unilever GBS journey #
Intelligent Operations
Plenary discussion
# Using charts of Unilever Investor Seminars 2012 & 2014
5 P Visée GEE ! 2015 ©
OUR GLOBAL BUSINESS SERVICES JOURNEY
From
Traditional ‘Back-office’
Organised by Function
To
Streamlined operational processes
that serve customers and consumers better
2010
Think Big
2011
Start Smart
2012/14
Scale-up Fast
Source : Unilever Investor Seminar Paris November 2012
6 P Visée GEE ! 2015 ©
OUR OBJECTIVES : SCALE, SERVICE, SPEED
Build scale
but retain local relevance
Improve service
continuous improvement
Increase speed and agility
radical simplification
Service , Speed and Agility Costs
Source : Unilever Investor Seminar Paris November 2012
7 P Visée GEE ! 2015 ©
2000-2010 : THE FOUNDATION ON WHICH WE BUILD
Moving from local
to regional/global
Converging
the system landscape Outsourcing transactions
Source : Unilever Investor Seminar Paris November 2012
From To
200
4
Global IT-Services
Global HR-Services
Regional Finance - Services
# SAP instances Global IT Network
Global HR
Regional Finance
8 P Visée GEE ! 2015 ©
SIGNIFICANT PROGRESS TO DATE
Global service
organisation established
Driving for Business
Excellence Operating leverage
Source : Unilever Investor Seminar Paris November 2012
D&E: Main hub Bangalore +
satellites (Katowice, Omsk,
Istanbul, Shanghai and Rio)
Halving the number of locations
in D
Hard service metrics trending up
Satisfaction up by 11% to 64%
(‘12-’10)
Support Functions contributed
to Overheads reduction
9 P Visée GEE ! 2015 ©
D & E MINDSET IN EVERYTHING WE DO
D&E relevant
innovation and services
Cost advantages
arbitrage, efficiencies,
synergies
Speed and agility
through co-location
Leverage
talent and employer
brand
Bangalore Operation Centre : 1400 FTE’s on site – 550 own and 850 co-located vendor partners
Source : Unilever Investor Seminar Paris November 2012
10 P Visée GEE ! 2015 ©
WE HAVE A BROAD SCOPE OF RESPONSIBILITY
HR
Solutions
Finance
solutions
Travel &
facilities
IT
Solutions
Information
& Analytics
Real
Estate
Technology Information
security
Source : Unilever Investor Seminar London December 2014
11 P Visée GEE ! 2015 ©
EVERYTHING WE DO MUST MEET TWO CRITERIA
Creating a better, simpler, more
agile place to work
Delivering profitable growth &
cost efficiency
Source : Unilever Investor Seminar London December 2014
12 P Visée GEE ! 2015 ©
WE HAVE FIVE PRIORITIES
Enabling in
employees to
be more
productive
Providing
platforms &
tools for
growth
Driving
organisational
simplification
Efficiencies in
business
infrastructure
& process
Cost
efficiencies in
our operations
Source : Unilever Investor Seminar London December 2014
13 P Visée GEE ! 2015 ©
IN SUMMARY
More efficient systems &
process
Increased employee
productivity
Innovative platforms
driving growth
A more agile organisation
Incremental profit of
€300m pa from projects
8-10% year on year
efficiency in ETS costs
€100m+ pa cash release
For reduced cost
Source : Unilever Investor Seminar London December 2014
14 P Visée GEE ! 2015 ©
CONTENT
Brief personal intro
Case Study Unilever GBS journey
Intelligent Operations
Plenary discussion
16 P Visée GEE ! 2015 ©
OPERATIONS
Corporate departments
Regions and/ or Divisions
Business units
Factories
Gen Mgt
Marketing
Sales
R & D
Supply Chain
Procurement
HR
Finance
ICT/IM
Comms
Legal
Facility mgt
SPLIT UP IN LINE WITH THE ORGANISATIONAL MATRIX
17 P Visée GEE ! 2015 ©
WITHIN THE MATRIX EVERY FUNCTION HAS ITS ‘OPERATION’
Gen Mgt
Marketing
Sales
R & D
Supply Chain
Procurement
HR
Finance
ICT/IM
Comms
Legal
Facility mgt
Functional Strategy, Leadership, Change Mgt & ‘Technical’ Expertise
Functional Operations, i.e. Finance Operations, Sales Operations etc
18 P Visée GEE ! 2015 ©
‘END-TO-END’ PROCESS MANAGEMENT : CUSTOMER FIRST!
All processes geared towards
business outcomes in particular
customer satisfaction
E.g. Supply Chain E.g. Order-to-Cash
Buying
Logistics
Production
Warehousing
Distribution
Physical Process : Administrative Process :
Order – Sales Function
Fullfillment – SC Function
Bill – Finance Function
Collect – Finance Function
19 P Visée GEE ! 2015 ©
‘OPERATIONS’ BEST MANAGED BY PROCESS
Gen Mgt
Marketing
Sales
R & D
Supply Chain
Procurement
HR
Finance
ICT/IM
Comms
Legal
Facility mgt
Functional Operations, i.e. Finance Operations, Sales Operations etc mostly managed by Function
Operations best managed by process, i.e. geared towards business outcomes e.g. customer satisfaction
20 P Visée GEE ! 2015 ©
INTEGRATED BUSINESS OPERATIONS
Gen Mgt
Marketing
Sales
R & D
Supply Chain
Procurement
HR
Finance
ICT/IM
Comms
Legal
Facility mgt
Phase 0 – Managed by Function
Phase 1 – Report to CFO
Phase 2 – GBS reports to CEO or CFO
Phase 3 – Integrated Business Operations (IBO) – Chief GBS or Operations Officer reporting to CEO
21 P Visée GEE ! 2015 ©
SIMPLIFICATION OF BACK-END TO ENABLE FRONT-END
‘07 ‘09 ‘13 ‘15
Country Shared
Services
creations
Build a hybrid
model across IT
finance & sales
True business
services including
procurement
Integrated, true
hybrid & business
partner
‘02 ‘09 ‘11 ‘14
Regional
Business
Services
Hybrid model
across all regions
True business
services –
Finance & HR
Analytics & digital
workplace
‘00 ‘05 ‘10 ‘12
Global IT, HR
Regional Finance
SSC
Developing & emerging
mindset across all
Business Services
Scale, service,
speed
Digital
‘99 ‘03 ‘06 ‘10
Shared Services
Creation
Building a progressive
Business Model
Agile & flexible
Operating Model
Simpler, faster,
flatter
23 P Visée GEE ! 2015 ©
TECHNOLOGY
LEAN DIGITALSM ECOSYSTEM - NEW TECHNOLOGIES ACCELERATE
VALUE CREATION
Mobility
Robotic
Automation
Cognitive
Computing
Saas/Cloud
Machine
Learning
Big Data
Analytics
Advanced
Visualization
Natural Language
Processing (NLP)
Autonomic
Computing
Dynamic
Workflow
Natural Language
Generation (NLG)
Intelligence
Augmentation
Digital technologies
leveraged by companies
having stable ERP landscape
and standardized End-to-End
processes
Enterprise Performance Management
Predictive Analytics for decisions
High Visualization & Visibility
Source: © 2015 Copyright Genpact. All Rights Reserved.
24 P Visée GEE ! 2015 ©
CONTROL & RISK MANAGEMENT BEGINNING TO DRIVE AUDIT COSTS LOWER BY 30-40%
End-to-End risks covered
Across functions/geographies
Based on automation and predictive analytics
Enhanced Control Framework through BS
Central Controls/framework
Transform and standardize
Control testing and audit analytics
Risk & Controls Centre of Excellence
World’s leading snacks company set up an internal control testing hub
covering SOX testing, Access Right monitoring & remediation
with savings of ~40% in cost of internal audit
A $34 B pharma company redesigned control framework for Shared Service Center
to achieve control rationalization, automation, SOX Compliance and leverage
audit analytics for real time identification of control gaps and fraud indicators
Source: © 2015 Copyright Genpact. All Rights Reserved.
25 P Visée GEE ! 2015 ©
FINANCIAL PLANNING & ANALYSIS (FP&A)
Decision
Making
Business
Partnering
High End
Analysis
Recurring Variance
Analysis & Support
Standard
Reporting
Strategic Decisions
Market Strategy, Scenarios
creation, Profitability analysis
Budget, Forecast, BI
Analytics, Ad-hoc analysis
Variance Analysis, P&L
Analysis, Budget Support
Standard Monthly
Reports, Dashboards
Reta
ined
F
P&
A -
BS
Management
Reporting COE
Analytics
Support
HUB
Business
Facing
Strategic
Moves into a foundation of stable
transactional Business Services
High Success Rate
CPG at forefront
Transactional Contextual/Judgmental
VS
Hard to move FP&A to BS:
High end
Strategic to business
Core process
Myths
FP&A is:
Easier to move to shared services
3 times better performance
Faster stabilisation
Reality
COMPANIES ARE MOVING FP&A TO BUSINESS SERVICES
Source: © 2015 Copyright Genpact. All Rights Reserved.
26 P Visée GEE ! 2015 ©
CONTENT
Brief personal intro
Case Study Unilever GBS journey
Intelligent Operations
Plenary discussion
27 P Visée GEE ! 2015 ©
STATEMENT 1
Generally speaking, I view the quality of the middle and backoffice
operations of large companies as relatively poor and often in sharp
contrast with the sophistication of the core business.
Fully agree
= 1
Mostly agree
= 2
Partially
agree = 3
Mostly
disagree = 4
Totally
disagree = 5
28 P Visée GEE ! 2015 ©
STATEMENT 2
For large MNC’s I see a growing trend to organise
middle and backoffice operations through a GBS organisation.
Fully agree
= 1
Mostly agree
= 2
Partially
agree = 3
Mostly
disagree = 4
Totally
disagree = 5
29 P Visée GEE ! 2015 ©
STATEMENT 3
Digitisation is a hype.
Fully agree
= 1
Mostly agree
= 2
Partially
agree = 3
Mostly
disagree = 4
Totally
disagree = 5
30 P Visée GEE ! 2015 ©
STATEMENT 4
Digitisation is one of the key trends that will shape MNC’s for the
future. Not acting on it could bring lasting competitive disadvantage.
Fully agree
= 1
Mostly agree
= 2
Partially
agree = 3
Mostly
disagree = 4
Totally
disagree = 5
31 P Visée GEE ! 2015 ©
STATEMENT 5
Establishing a GBS organisation can be a critical enabler for the
digitisation journey, as it establishes both discipline & agility.
Fully agree
= 1
Mostly agree
= 2
Partially
agree = 3
Mostly
disagree = 4
Totally
disagree = 5
32 P Visée GEE ! 2015 ©
STATEMENT 6
The level of ‘intelligence’ in my own companies
(middle & backoffice) operations I view as
Very high
= 1 High = 2 Medium = 3 Low = 4 Very low = 5
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