This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
What is Global Business Services (GBS)?
An integrated platform to deliver enterprise business services
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Maturity survey analysis: The Nordics view
Europe includes Nordics (30 Plus companies surveyed)
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Maturity survey analysis: The Nordics view
Analytics
0% 10% 20% 30% 40% 50%
GBS is not involved in data and analytics services
GBS is currently planning and building a data and analytics reporting service
GBS delivers basic data and analytics reporting (standard packages) and providesperiodic and ad-hoc analysis for customers
GBS delivers advanced data and analytics reporting and diagnostic analysis, andidentifies future operational reporting proactively based on the frequency and
importance of business needs
Analytics
Process Focus
0% 10% 20% 30% 40%
Business processes are managed solely within functionaldelivery teams, discrete to a function
Fragmented process ownership, but with informal peer-to-peer networking
Process owners exist and manage global process forselect processes, applied in functional silos
Functionally oriented process owners exist to managemost global processes
Global process ownership incorporating both the GBS andnon-GBS portion of an end to end process
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
GBS is enabled and optimized by multiple dimensions
CHANGE AND PROGRAM MANAGEMENTA focused, holistic approach for getting the people and the enterprise ready, willing, and able to fully adopt and sustain changes through targeted strategies promoting understanding, buy-in
and ownership. Change management helps to achieve greater realization of expected benefits, reduce resistance, and mitigate risks that might undermine the value of the initiative
OPERATIONAL EXCELLENCEOn-going focus on problem solving, improvement, and GBS transformation outputs toward delivering high quality, seamless, and consistent business solutions
COMMERCIAL PERSPECTIVE
Customer relationship model defining the way GBS
operates “like a business”, and engages with
customers
DELIVERY AND SOURCING STRATEGY
The defined strategic intent of the GBS
organization, its purpose and relationship to the
overall enterprise
SERVICE PORTFOLIO
Definition of the breadth, depth, geographic
reach of services provided by GBS
TALENT MANAGEMENT
Flexible, integrated enterprise talent management
model designed to attract, retain and engage
resources
ENABLING TECHNOLOGY
Common technology platform across ERP, applications, and
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
GBS maturity survey dimension parameters
Delivery and Sourcing
StrategyLittle or no alignment between GBS and corporate missions,
strategy and planning.
Bi-directional formulation of strategy & planning between GBS,
functional, BU and corporate management
GBS operates on multiple IT systems for each GBS customer.GBS operates on a single instance ERP across enterprise with
standard enabling technologies. Enabling Technology
GBS delivery groups are aligned singularly to functional leadership.
Functions are responsible for all aspects of process development,
performance management and
talent management.
GBS serves as an independent operating unit on par with other
Functions/BUs providing output based services to Functions/BUs
based on policy and requirementsEnterprise Governance
Decentralized service delivery model with single function Multi-functional, multi-channel service delivery modelServices Portfolio
GBS provides transaction processing and staff mix and skills reflect
this narrow focus
Broad talent management practices ensure GBS people and
leaders are recognized for their insight, innovation and customer-
orientation. Talent Management
No formal analysis of service supply-demand.
Formal supply-demand of services is used to optimize
consumption and evaluate service sourcing. Formal analytics in
place. Commercial Orientation
Business processes are managed solely within their delivery teams,
which are discrete to a function and/or geography.
Global process ownership incorporating both the GBS and non-
GBS portion of an end to end process. Process Excellence
Information is created and distributed through a combination of static
reporting and limited ad-hoc requests; analysis is performed on as-
needed basis.
Dynamic reporting, with predictive modeling provide users with
prescriptive analysis of real time data from internal and external
sourcesData & Analytics
Absence of organizational flexibility and senior management
ownership
High degree of management buy-in and formal processes for
driving GBS acceptance in the organizationChange Management
Assurance reporting requirements are not included in service
provider contracts, and no coordination occurs with providers on
assurance related matters
Assurance reporting with impact to the organization's financial
reporting, operational, and compliance objectives with due
diligence occurring for new and existing providersRisk and Tax Optimization
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Mapping results against the GBS maturity results: Nordics
SCALED
Functionally oriented
Global shared service model
Variation around processes, tech and governance
standardization
Se
rvic
e D
eli
ve
ry M
an
ag
em
en
t M
atu
rity
Strategic
Multi-functional, multi-channel service delivery model
Provides transactional and analytic services
Managed through integrated, outcome-oriented governance
Synced end-to-end
Integrated
Enterprise wide multi-functional service
delivery platform
Coordinated processes, technology, governance, and multi-
channel delivery for scale and adaptability
SUB-SCALED
Consolidated delivery model
Leverage economies of scale for highly transactional services
Shared services or outsourcing typically on a single-function
FRAGMENTED
Decentralized service delivery model
Duplicative functions, processes, and technology
Little central control and governance over business support
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
What maturity looks like and how to achieve
Action Plan
Delivery and
Sourcing Strategy
■ Use outsourcing partners to give access to
technology enablers and leading practices
■ Identify a champion at senior level to help gain
alignment with Executive objectives
■ Monitor & report benefits to increase GBS buy-in
■ GBS strategy tied directly to overall
corporate strategy
■ Mix of captive and outsourcing to have the
best labor arbitrage and value delivery
Enabling
Technology
■ Rationalize existing systems
■ Invest in technology led process improvements and
innovations
■ Create dedicated IT organization and/ or CoE to
support GBS
■ One ERP system with 2 or less instances
■ Use of Enterprise Service management for
non-IT governance activities
■ Automation in all possible parts of a process
Governance
■ Formalize, regularize and document all governance
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
What maturity looks like and how to achieve
Action Plan
Talent
■ Assess workforce capabilities across employee
lifecycle and form clear career paths
■ Enable cross-training and placement across
functions and processes, regular staff rotation
■ Talent management tailored to operations
■ Turnover less than 15% per year
■ Continuous learning and development, robust
training, knowledge management and
collaboration are part of GBS culture
Commercial
Orientation
■ Invest in GBS brand building activities
■ Perform benchmarking on price and performance
against third party providers
■ Measure SLAs that cover more than just
operational/ cost metrics, focus on performance
■ Operate GBS like an independent business
unit with P&L
■ Services as competitive as a third party
provider
Process
Excellence
■ Empower process owners to design and manage
end to end processes; hire black belts
■ Perform process benchmarking with peers
■ Regularly report productivity gains to
demonstrate GBS benefits
■ Process owners with complete ownership
■ At least 5% efficiency improvement YoY
■ Process optimization using lean/six sigma
expertise. Change management and
corporate gov to drive transformation agenda
Data and
Analytics
■ Invest in predictive analytics, state of art tools
■ Talent management tailored to D&A needs
■ Leverage third party services and resources
wherever possible
■ Provide services to GBS and across
functions to help drive better and faster
business decisions leading to better
outcomes
Desired State
Implementing a GBS operating model in GSK
What we do at GSK...
Pharmaceuticals
We develop and make medicines
to treat a range of conditions
including: respiratory diseases,
cancer, heart disease, epilepsy,
bacterial and viral infections
such as HIV and lupus, and
skin conditions like psoriasis.
Consumer Healthcare
We make innovative consumer
products in four categories of
Total Wellness, Skin Health,
Oral Care and Nutrition. Our
portfolio includes well-known
brands such as: Horlicks,
Panadol and Sensodyne.
Vaccines
We research and make
vaccines for children and
adults that protect against
infectious diseases, including:
influenza, rotavirus, cervical
cancer, measles, mumps,
rubella, hepatitis, polio,
tetanus and meningitis.
Implementing a GBS Operating model in GSK18
Background to Core Business Services
19GSK At a glance
2000 2005 2008 2010 2013 2015
Merger
GlaxoWellcome
& SmithKline
Beecham
1st IT Centre
Poland
2nd IT Centre
Malaysia
•Bill Louv
Appointed
CIO/SVP CBS
BSCs Open
West London
North America
Functional BSCs
incorporated
Malaysia
Poland
Costa Rica
CBS Portfolio
Critical Measures
Enabling Processes & Customer
Kuala Lumpur
Costa Rica
North Carolina
West LondonPoland
Philadelphia
Global Business Services journey
Business
Partners and
Centres of
Excellence
Third Party
Providers
Captive
Business
Service
Centres
CBS – Core Business Services three-tier delivery model captive
Implementing a GBS Operating model in GSK 20
GBS Demographic Assessment
Total number of GBS employees in your company ~ 10000
Total number of GBS Centers 5 BSCs + 2-3 major locations
Regions of OperationsNorth America, Europe,
South America, Asia Pacific
Regions of Opportunity Middle East and Africa
Key Factors - GBS Assessment Industry Best Practices
Number of ERP
system4-5 1 – 3
Number of ERP
system instances>10 1 to 5
Functional areas
within GBS
Finance,
Indirect Procurement,
WREF
IT
>5
Continuing to Roll out global ERP
22
Goal:
SCALE+STANDARISATION+SPEED
CBS Principles
provide guidance how people
work and connect, how
services are to be
constructed and how they
should improve
CBS Governance
framework ensuring proper
decision making process and
decision flow across services
in CBS
CBS Capabilities
CBS capabilities required to
operate within service
system
Playbooks – created by doing best practices how to identify opportunities, migrate, stabilise, optimise,
transform and operate services in the ecosystem with the use of CBS toolkits
BSC Places
and People
Service Standards
& Enabling Processes Opportunity
Identification
GSK Change
Framework (ADP)
Customer
Excellence
CBS Infrastructure, Frameworks & Toolkits
Global Business Services journey
Service System highlights
Implementing a GBS Operating model in GSK
CBS Service Portfolio
Introduction to the CBS Service Portfolio
Purpose : A selection of reasons
Definition
– The CBS Service Portfolio is the agreed single list of services provided by CBS, described and
organised in a way which is meaningful to stakeholders and ultimately customers.
Benefits
– For Customers:
– It populates the Service Gateway with quality Service links for the GSK population.
– For Stakeholders:
– It enables greater visibility of CBS services and ultimately explains which services are
available
– For Service Line Owners and Service Owners:
– Can manage service information in one place within a common framework
– For CBS LT & Governance
– Supports the creation of a common and consistent language and approach for CBS
– Supports the move towards service-orientation and end to end services
Issues1. Resourcing and capability for each initiative within A32. Buy in and alignment
a. Within CBS, e.g. SD vs SLO vs GPO.b. Within Service Development, e.g. this A3 vs
Programme Management vs Initiatives.c. Within Service Lines or Functions, e.g. SLOs vs
GPOs vs functional)3. How to design the Transformation Process (Transform Future
Services WIG) - Q2 2014 under an initiative4. How does this Strategic WIG work with the Strategic WIG on Asia
– potential future dependency depending on next two months on Asia
1. Service Lines in the BSCs are delivered at inconsistent levels of performance2. Need to deliver consistent benefits as part of the rationale of creating BSCsLead measures
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Show me the $$, €€, ££
Cost savings potential with improved GBS maturity
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
<10% 10-20% 21-30% 31-40% 40%+
Typical Cost Savings, Levels 1-2 to 3, Level 3 to 4-5
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Beyond cost: Additional value drivers sought & achieved
1,00 2,00 3,00 4,00 5,00
Improving consistency of the employee experience
Drive improved cash flow or balance sheet performance
Better use and development of talent
Greater infrastructure scalability
Greater organizational flexibility
Improving consistency of the customer experience
Creating platform for innovation & continuous improvement
Increased quality of services provided to business
Transparency & greater control of financial / ops risks
Use of advanced predictive D&A tools to support GBS
Implementation of true end-to-end processes
Stronger governance and compliance
1=Low Importance, Very Unlikely achieved, 5=High importance, Very likely achieved
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Possible Case Study – How do we think of Benefits - $10B Firm
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Above line benefits can dwarf labor and outsourcing benefits
Above line benefits associated with cash flow increases, revenue growth, acquisition integration
associated with process improvement may more than double any hard core OH cost savings
2015 20192016 2017 2018
Principles: 2015 Critical Service Improvements
(Repeated from 2012, 2013 & 2014)
– Formal agreement of Improvements between CBS Service Line and
Customer/Stakeholder
– Measure/s to be improved
– Clear Targets with timeframes for delivery
– Clear operational measure definitions
– Transparency of progress
CBS and Critical Measures Programme
Voice of Customer Improvements (Customer Satisfaction)
– Mergers Acquisitions & Divestment engagements
– Global Digital services from 50% to 90% Customer Satisfaction
Cost reduction and avoidance
– Printing Services (2013) : 25 % Reduction in Total Cost of Ownership (TCO)
– Windows XP decommissioning accelerated to avoid additional cost of support
– Real Estate Rationalization – Year on Year Savings to CAPEX and OPEX
– 25% Reduction in fees for late Credit Card (Expense) payments
– Lab Services : 20% increase in Chemical Re-use
Service Improvement
– Networks : Reduce High Business Impact Outage hours by 15%
– Multiple examples of reduction in Backlogs (CRs), Cycle times & Issue Volumes
– Joiners & Leavers Right First Time (IT Accounts, Security Badges etc.) – Year on Year Improvements
– % Overdue Debt Reduction & Paid on Time measures
Other
– Site Services : Reduction in CO2 Emissions year on year
Both Effectiveness and Efficiency Measures – A Selection from 2013 & 2014
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Why GBS matters to support corporate goals
■ Companies are looking at growth
again but want to use their cash in a
prudent manner.
■ Cost optimization and moving away
from non-core businesses are
primary business drivers at this time
■ Costs extraction remains a primary
value driver for many organizations,
yet many struggle to identify ways
to continue to optimize and improve
their operating models to deliver
greater benefits
DEALS & DEAL MAKERS
Rising Optimism Fuels Deal
Rebound
At the current pace, M&A volume for the full
year would exceed $3.7 trillion, making it the
second-biggest year in history
By Dana Cimilluca, Dana Mattioli and Shayndi Raice
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Mature strategy and service portfolio can drive GBS development
89% had a strong strategy function
92% had a large service portfolio
Of all GBS
with strong
process
ownership
83% had a strong strategy function
87% had a large service portfolio
Of all GBS
with strong
commercial
orientation
89% had a strong strategy function
86% had a large service portfolio
Of all GBS
with strong
talent
management
92% had a strong strategy function
90% had a large service portfolio
Of all GBS
with strong
governance
processes
43
Transform
Optimise
Continuous improvement
Culture
Collaboration
Equipment &
Safety
Future services –beyond the current scope
Transform end to end service to drive
enterprise value
Embed capabilities and optimise end-to-end
process efficiency to drive business value
Provide expert consultancy on services and
processes to remove variation and complexity
Practicing ADP, innovative, vibrant, service oriented and
rewarding culture
Provide collaborative management support structure,
technologies and tools with smart working setup
Provide necessary office equipment and take additional steps to
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
One of the strongest
conclusions from the
research is that ‘top
performers’ – companies
driving the strongest growth
and profitability have cracked
the code on leveraging
technology and talent more
effectively than their peers.
Investments in the right technology and talent contribute
to growth
■ Demonstrate Competitive Differentiation
■ Transform Data into Significant Value
■ Leverage Emerging Technology
■ Accelerate Product Development Cycles
■ Create a ‘Market of One’
■ Create New Roles to Accelerate Growth
■ Maintain a 360˚ View of Competitive Threats
■ Extraordinary Ability to Attract & Retain Talent
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Our client was in a divestiture scenario resulting in the split of its two unique business divisions – medical devices and
pharma. This divestiture resulted in a transition service agreement (TSA) for two years, with the medical device company
providing back office support for the new pharma company. The pharma company needed to redefine themselves quickly
as at the end of two years the back office support TSA would expire – with all people, process, and technology support from
the medical device company terminating. Based on the maturity assessment results, KPMG was asked to support GBS
transformation initiatives across enabling technology, services portfolio, process ownership & optimization, and talent
management.
Global
pharma
company1The client was looking to accelerate growth and increase profitability by re-allocating resources to GBS in order to focus
investment on marketing, sales, and new products in high growth markets. Initial conversations focused on a finance
transformation initiative involving global process and technology changes – the project quickly evolved to GBS on a broader
scale. With KPMG’s support, GBS represented an opportunity for the client to take finance, customer service, logistics, and
other services to the ‘next level’ through the development of a network of global and regional centers, providing seamless
global services to the client’s growing global enterprise.
Global
consumer
products
company2The client’s global leadership established a strategic priority to leverage their global scale by centralizing non-core activities,
allowing the local businesses to focus on where they can most add value. As the company has a highly global and diverse
geographical presence, many projects had been initiated on a local or regional basis with limited alignment to a global way
of working. The implementation of a GBS organization would maximize the value available from the in-flight projects by
executing in a globally consistent way, and using the GBS organization as a competitive strength. Using experts from across
our business, KPMG was engaged in the high level design, detailed design and implementation of the client’s GBS
organization, working on all aspects of the operating model.
Global
beverage
company3KPMG was awarded the GBS transformation advisory role in January 2014 for a duration of 3 years. We worked as one
Corporate management consultant team and presented a global KPMG team with representation from the U.K., U.S. and
Asia Pac. Client’s GBS function is a hybrid model evolving from a single Finance function to potentially expanding into
Procurement, HR, and Supply Chain. We are investing in deploying the KPMG 6Ps methodology and Managed
Governance Services (MGS) as tools to support the client GBS operations and foster optimal efficiency of center
operations.
Global
oil and gas
company4Our client established a Global Business Services organization consisting of Finance, Workplace and Travel, HR, IT and IM
services and mobilized a 3-year program to increase capability and service levels and reduce costs. The program was made
up of 30 strategic initiatives delivered through 80+ projects in over 20 country-clusters. KPMG was asked to support the
design and delivery; and approached this task with a ‘customer centric’ team based in Europe and North America, supported
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Key Details
Model &
Sourcing
Hybrid model (captive and
outsourced)
Centers
3 (Global – Mumbai,
Regional – Mexico City,
Warsaw)
Rationale
■ Simplifying and
standardizing how work
gets done
■ Reducing structural costs
increasing gross and
operating profit
■ Building on client’s current
position to enhance its
leading market share
positions
Benefits
■ Global workflow
efficiencies, more effective
internal controls,
enhanced business
partnering, deeper levels
of expertise and
organizational capability
Mexico City
Warsaw In Scope Processes/Support
Finance
■ Accounts Payable and T&E
■ Credit to Cash (Credit, Collections,
Deductions, etc.)
■ Record to Report (General Accounting, Cost
Accounting, Fixed Assets, Reporting, etc.)
Supply Chain
■ Supply Network Planning (Supply planning
and synchronization, Replenishment planning,
Inventory management, Co-Packing and
Export planning)
■ Transportation Management (Transportation
planning, Warehouse management, Co-
Packing and Contract Management)
■ Order to Invoice (Order Acquisition, Order
Processing, Customer Invoicing)
Other
■ Master Data Management
■ Analytics
■ Procurement
Other Observations
Governance
Developed new end-to-end governance design across new business service organization and as it
relates to ongoing project management. Including but not limited to development of controls,
committee structures, division of responsibility.
Distinguishing
Characteristics
Starting state was mostly decentralized operations, low organizational span of control, underutilized
labor arbitrage, lack of process standardization across subsidiaries, amount of manual intervention,
inefficient use of existing technology, and existing F&A SSC in place moving to globally integrated
GBS model.
Mumbai
Global or Regional Centers Planned Additional Sites
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Key Details
Model &
Sourcing
Hybrid model (captive and
outsourced)
Centers 3
Rationale
Development of a GBS
organization as a competitive
strength, with the
implementation of three
centers around the globe.
Benefits
■ Greater focus on
commercial activities by
markets
■ Enhanced information to
support decision making
■ Professional high quality
services
■ New/deeper functional
services
■ Lower cost
and clear transparency
India
Latin America
Europe In Scope Processes/Support
Finance
■ S2P (Finance) e.g., accounts payable, T&E
■ O2C (Finance) e.g., credit management,
collections
■ R2R
■ MDM
Procurement■ S2P (Procurement) e.g., contract and
catalogue management
■ Supply chain
HR
■ Payroll and benefits
■ Recruitment
■ Learning & Development
■ Training
■ Change management
■ Communication plans
IT■ Enabling IT for service delivery
■ Supporting multiple technology initiatives
■ Integrated information technology framework
Other
■ Standardization of E2E processes
■ O2C Front end (e.g., Telesales, Customer
contact)
■ Analytics and insights
■ Service management and governance
■ Support centre (service desk)
■ Business case development
■ Location analyses
■ PMO/TMO support
■ Transition support and global delivery center
setup support
Other Observations
Governance Service management end-to-end governance design across GBS organization
Distinguishing
Characteristics
The Stage Gate methodology that the client uses globally is being used to deploy each center and to
roll out additional services into the centers.
Global or Regional Centers Planned Additional Sites
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Key Details
Model &
Sourcing
Initial SSC first established in
Glasgow, in 1998, now
operates 7 shared service
centres across the globe for
finance & HR processes
Centers 7
Benefits
The plan, launched in 2005
was closed officially at the end
of 2010. Target of $800 million
in savings achieved. A major
factor has been improved
performance due to the
network of Business Service
Centres (SBSCs), creating
significant economies of scale
In Scope Processes/Support
Finance
60% of total Finance FTEs are in SSCs. AP, AR, GL, Record to Report, Group Reporting, Statutory
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Key Details
Model &
Sourcing
Hybrid model (captive and
outsourced): key partners –
Accenture, Capgemini,
HP/EDS, IBM, Unisys
Centers 10+
Rationale
Simplify and remove
unnecessary complexity,
standardize processes and
leverage global scale
internally as well as
externally
Benefits
■ Tangible improvements
in service operations
due to process
consolidation and
standardization.
■ Savings > cEUR500m to
date
Other Observations
Governance Chief Enterprise Support Officer initially reported directly to the CEO (now to the CFO)
Distinguishing
Characteristics
■ 10 year + implementation timeline – initially establishing functional SSCs and then more
latterly combining all of these into a single global entity. Heavy reliance on third parties
■ Transformation to get to current shared services landscape has seen radical simplification.
Highlights being: Moving from multiple legacy systems to 1 SAP system; Reducing
business units from over 200 to 25; Simplification of the middle management structure
No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.