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Raising the bar Shared services, value creation
& business finance optimisation
Mark Pickett
VP Finance – EMEA Hardware, Oracle
Today’s Crisis Can Drive Tomorrow’s Transformation
“Sometimes a crisis can provide you with
an opportunity to transform your
organization in ways that wouldn’t be
possible during good times. In the late
1990s, when Oracle’s operating margins
were under pressure, we embarked on an
initiative to consolidate and standardize
our IT infrastructure. By the time Oracle
had emerged from the dot.com bust in
2003, we had more than doubled our
operating margins, and created a strong,
integrated platform to support our M&A
and organic growth strategies.” Jeff Henley, Chairman of the Board Oracle Corporation
Oracle Corporation
• 32,000 developers and
engineers
• 18,000 customer support
specialists, speaking 27
languages
• 17,000 implementation
consultants
• 2 million students supported
annually
• 850 independent Oracle user
groups with 800,000 members
INNOVATION SCALE
• $37.2B in revenue in FY13*
• #1 in 50 product/industry
categories
• 380,000 customers in 145
countries
• 20,000 partners
• 120,000 employees
• 15 million developers in
Oracle online communities
* GAAP revenue reported in USD as of May 31, 2012
Oracle’s Shared Services Journey Phase I : 1998-2003
• Get Oracle’s internal operations in order
• Simplify. Standardize. Centralize. Automate.
• Implement plain-vanilla Oracle software to run our business
• Enhance decision-making and accountability
• Increase margins
Simplify. Standardize. Centralize. Automate.
1998 2003 & Beyond
• 65+ financial apps instances • Global Single Instance (ERP)
• Fragmented Data: tens of
thousands of Excel
spreadsheets
• Global Data Warehouse
• Inconsistent Processes • Global Processes
• Local Support • Shared Service Centers
• Local Decision Making • Centralized Decision Making
• Autonomous Countries • Multi National Corporation
• Geographic Functions • Global Functions
• Country Infrastructure • Simplified Global Infrastructure
Value Creation (1) in Shared Service Centers
• Allowed to doing things right: Operational Excellence
• Reducing Cost of business processes
• Improving Quality of products and services
• Increasing Speed of operations.
• …and doing the right things: Management Excellence
Importance of GPO role Linchpin of Standardization Program
GLOBAL
APPLICATION
OWNER...In IT
Partner with the Global Process Owner – Global process definition
– Best use of technology
Support Single Instance and Shared
Services Strategy
– Application support & implementation services
GLOBAL PROCESS
OWNER…In Business
Evaluate Shared Service Center Process
– Use of technology
– Responsibility profiles and organizational structure
– Efficiency, effectiveness, relevance, best practices
– Global headcount requirements
Act as Champion of Global Process & Articulate
– Strategic direction
– Understanding of global requirements
– Business needs and service level standards
Oracle’s Business Transformation
• Undertake an aggressive acquisition strategy to
expand our portfolio
• Add a new line of business – hardware
• Utilize proven best practices from Phase I to
accelerate operational savings
• Scale business profitably
PHASE II (2004 - 2011)
Business Objectives:
Oracle Acquisitions – over 85 Acqns since 2005
Identity & Access
Management
Performance
Management
Enterprise Content
Management
Business Intelligence Middleware Platform
and Management
Virtual Machines Systems Management Operating Systems
APPLICATIONS
DATABASES
OPERATING SYSTEMS & VIRTUAL MACHINES
SERVERS, STORAGE AND NETWORKING
Data Integration
(pending)
MIDDLEWARE
Oracle’s Shared Services Journey : Phase II • Utilize proven best practices from Phase I to accelerate operational
savings – Simplify, Standardize, Centralize, Automate
• Transform Dublin SSC to Global Controllers Organization – new focus
on Control & Acquisitions
• Establish new Global Centers (Romania, Bangalore) for a number of
new centralized processes (Finance/non Finance) / FP&A
• Value Creation (2) in Shared Service Centres
• Provides Control
• Agility & Flexibility
• Scaleability
• Controllers
• Revenue
Recognition
• Procurement
• Comp Admin
• Exp Reporting
11 Countries
• Customer
Contracts
• Credit &
Collections
50 Countries
• Controllers
• Revenue
Recognition
• Customer
Contracts
• Credit &
Collections
• Exp Reporting
• Procurement
• Comp Admin
113 Countries
113 Countries
• Controllers
• Order Entry
• AR / Cash Apps
• Exp Reporting
• Purchasing
• Fixed Assets
• Project Acct
• Credit &
Collections
• Customer Data
• AP
• Comp Admin
197 Countries
Shared Service Centre Structure - 2012 5 SSCs,197 Countries, 22 Languages
Breaking out of the Country FD Structure
President Safra Catz
Finance
Operations /
Quote-to-Order
Controllership /
Order-to-Cash /
Source-to-Settle
Global
Business
Finance
Corporate :
Tax,
Treasury,
Internal
Audit, Risk
Traditional FD responsibilities prior to any centralization
Overall Fiduciary responsibility
Controlling / Strategic Finance
Accounting
Tax
C&C
Purchasing
Travel
IT
Payroll
Compensation (Planning / Admin)
Facilities
Labor law
Customer visits / disputes
Very procedural,
inward-looking position,
Stewardship,
Diligent Administrator
TRANSACTION
Manager
Managing Change & the Changing Culture
“Sociology, not Technology”…it’s a People thing…
Don’t Over ExIT…just do it…!
Engage your Top Talent & find your “Poachers Turned Gamekeepers”
Talk the language of change: “Making the Impossible Possible”
Reinforce shared values and norms
…and keep doing it…move from a reactive measure into a core agent
of innovation and success
Manage Organizational Inertia through a Culture of Change
Raising the Bar: Value Creation (3) From 2012
• GBF provide Strategic Leadership to across all Business
• Scale up Global Business Finance with GPOs
• GBF Global Process Owners / Build communities
• Standardisation around Best Practices & Measurement
• Move Shared Service Centers up Value Chain
• More Automation, More Business Support, at Less Cost
• Refine Engagement Model / Integrate with In-Country teams
• Establish Global, Best-in-Class Management Systems
• Provide committed support to Career Development
Raising the Bar: Value Creation: Field
Transaction
Manager
Business Partner Support
Value Add Business Partner
Provides reactive decision support
as challenger
Focus on internal tasks
Improves performance in
co-operation with business
Driving Change
Phase 1 Phase II
Raising the Bar: Value Creation: SSCs
Transactions
Automated
Business Partner Support
Value Add Business Partner
GFIC / SSCs start to move up Value Chain,
taking Business Partnering Support
roles
Field Business Partners develop
Strategic Leadership role
Phase III
Marketing Sales Support Partners Finance Ordering and
Contracts
• Event Intelligence
• Marketing Contribution Analysis
• Segmentation
• Campaign Intelligence
• Data Quality Monitoring
• Pipeline Intelligence
• Forecasting
• Account Analysis
• White Space Analysis
• Up-Sell / Cross-Sell Opportunities
• Executive Dashboards
• Operational Dashboards
• Contract Renewal Management
• Install Base Intelligence
• Partner Ordering Analysis
• Partner Enrollment
• Partner Analytics
• Revenue
• T&E Analysis
• Expense Actual vs. Budget
• Expense by Manager
• Headcount
• Ordering Analysis
• Ordering Queue Monitoring
• Quote-to-Order Flow & Analysis
• License Contract Intelligence
Business Intelligence at Oracle Today
Business Intelligence at Oracle Today Supply Chain
Procurement & Spend
Field Service Manufacturing Value Chain
Planning Product Quality
• Revenue & Backlog
• Inventory Analysis
• Fulfillment Status
• Customer Status
• Order Cycle Time
• BOM Analysis
• Direct & Indirect Spend
• Buyer Productivity
• Contract Compliance
• Supplier Performance
• Purchase Cycle Time
• Task & Labor Analysis
• Resource Utilization Analysis
• Order & Shipment Analysis
• Inventory Ageing & Level of Service Analysis
• Cycle Time Analysis
• Inventory Turns Analysis
• Resource Usage
• Transaction and Inventory Analysis
• Tactical Plan Analysis
• S&OP Scenarios Analysis
• Risk Analysis
• Inventory Analysis and Excess & Obsolete
• Service Plan Analysis
• Hardware System and Part Reliability Analysis
• Annual Failure Rate against Goals Analysis
• Early Warning System Analysis
Increasing Volume
and Processing Time
Before BI Contract Turnaround = 14 days
Business Intelligence in Finance License Contracts Example
Contract Turnaround = 4 days After BI
• Analyzed root cause
• Decision based on fact vs.
conjecture
• Implemented process to reduce
by 66%
• Business benefit estimated to be
worth $7 million
Issue:
• Unable to efficiently report on T&E expenses, identify top spenders
• No T&E view for People Managers, as they do not own cost centers
Solution:
• Give people managers transparency into their actual T&E spend vs. plan
• Enable proactive cost control
Oracle Products Implemented:
• Oracle Business Intelligence Enterprise Edition
• Travel & Expense Analytics
Travel expenses per employee
Q3FY08
Before
Q3FY09
After
T&E Analytics Help Manage Spend
Globalising Business Intelligence…the learnings
• Clear and complete definitions and standards for data
• Master Data Repository for consistent numbers
• Global Steering Committee with Executive Sponsorship
• Need cross-LoB support, particularly from Apps IT
• Create GPOs responsible for Reporting Dashboards, with clear
understanding of business and business needs
• Dashboard must be accurate, reflect the requirements of the users,
and in step with the process in which it is used
• Share Usage metrics with the Users
• Business Intelligence for Finance has been hardest…!
• Lower costs
• Better information
• Better customer service
• Strong internal controls &
easier compliance efforts
• Fast integration of new acquisitions
Outcome: Better Performance
“Life isn't about waiting for the storm to pass...it's about learning to dance in the rain”
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