enabling enterprises sieze the shared · pdf fileo2c p2p fi-gl hr mdm. copyright @ 2014...

Copyright @ 2014 Avaali. All Rights Reserved

ENABLING ENTERPRISES SIEZE THE

SHARED SERVICES OPPORTUNITY


Trends shaping SSC

From back office processing to front end customer interaction –we now have tools and apps to automate processes and

interpret meaningful data

Software solutions automate processes and even robotize them like never in the past

Mobile culture changing customer expectations and the way business is driven

A movement from “lift and shift of people” to wide scale transformation of business process enabled by new technology

and platforms

Real capability to change the way business is run

Strong alignment between business

objectives and services

outcomes

Shared services making its strongest re-emergence as a delivery model for a

decade

Close to 25% are heavily re-investing in their global shared service operations

25% of today’s enterprise buyers expect to move to a wide-scale transformation of

business processes enabled by new technology tools/platforms in just two years

The new stakes require enterprises to fix their “analog current” to get a “digital

future” – conversation moving from tactical success in terms of cost reduction to an

entirely new way of servicing internal customers with the support of technology

Key Trends


SSC transformation

Low High

Lo

wH

igh

Le

ve

l o

f a

uto

ma

tio

n

Relative process efficienciesLargely manual

Scan & digitize

Archive – link to ERP transactions

Capture, OCR / ICR

Automate workflow approvals , maintain audit trails, DMS

Fully automate key business processes such as AP, AR, HR etc.

Unified SSC framework – Fully automated & integrated with comprehensive metrics and governance

Transactional talent needs

to transform itself to digital

talent

Knowledge creation vs.

mass collection of

unstructured data

Conversations need to

move further from process

improvement and costs


Transformation in the way processes are

managed

SSC Business Processes

Order to Cash

Fully automated Collection / Remittance

Exception handling Sales order processing Customer

communications

Procure to Pay

Requisitioning Invoice Capture Validation Exception handling Approvals Information Access Archive Vendor

Communications

Fully automated business processes

Outcome based governance model

LOB functions

Executive

Management

Global

business units

Single platform / integrated solution

FI-GL

Automate financial postings

Workflows and approvals

MDM

Consolidate data to

central repository Governance

mechanisms

HR

Employee records Travel Management HR Helpdesk Workflows and

approvals

Other Processes

Contracts Management

CSAT Surveys Reporting &

Analytics


Key challenges

Order Processing Invoicing and

Collections

Remittance Matching and

Cash Application

Reporting

Manual order processing

and acknowledgement

Manual exception

handling and pricing

approval flows

Customer

correspondence

unavailable for reference

Poor customer

satisfaction

Difficult to process and

approve credit extension

requests

Customer invoices and

other collections

correspondence are

unavailable for

reference

Collections follow up &

dunning is manual and

ineffective

High DSO’s

Ageing Analysis is

cumbersome

No alerts and

reminders

Matching remittances to

open invoices is tedious

and error prone

Turnaround times are

high due to manual

exception handling

Difficulty in managing

short remittances

Missing audit trails

Lack of visibility into

process bottlenecks

Lack of

transparency in

outstanding

invoices

No SLA/KPI based

tracking

O2C P2P HR MDMFI-GL


Key challenges

RequisitioningGoods/Service

Receipt

Invoice

ProcessingPayment Run

Information

Access &

Reporting

Cumbersome

approval process

Manual PO/Service

Order creation

Manual

identification of tax

codes, freights,

discounts etc.

No vendor

communication

logs

Vendor T&C’s are

not documented

Supporting

documents are

not attached to

the GR and

service entry

sheet in ERP

Manual routing of

supportings to

different depts.

like Quality,

Excise, Admin

etc.

Invoices are not

digitized

Manual

validation of

invoice data

Manual process

for approvals &

exception

handling

Processing time

is high

Unable to qualify

for cash

discounts

Payment

processing is

time consuming

Different

stakeholders

involved for

different types

of payments

Difficult to track

to completion

Missing audit

trails

Lack of visibility

into process

bottlenecks

No unified view

of liabilities

No SLA/KPI

based tracking

Access to the

physical

documents is

time consuming

O2C P2P HR MDMFI-GL


Key challenges

Financial Postings

Posting Requests are received from multiple departments

Different types of postings need to be handled

Manual routing of posting requests to multiple departments for verification/further information/approvals

No clear visibility across the organization

Difficult to meet compliance requirements

O2C P2P HR MDMFI-GL


Key challenges

Employee Records Management Travel Management HR Helpdesk

Paper documents

Frequent copying and mailing of records

Fragmented storage of documents

Error prone processes, misfiling or total loss of paper documents

Restrictions to unauthorized access cannot be guaranteed

High storage costs ,effort and compliance issues

Low employee satisfaction

Printing and copying of receipts

Postage/courier of supportings

Paper archives are difficult to manage

Exception handling and approval workflow are manual

Frequent Late reimbursements

Expense frauds

Audit requests are difficult to meet

Inconsistent application of policies

Required trained staff

Limited track of case histories

Slow resolution of issues

Limited SLA/KPI based tracking

O2C P2P MDMFI-GL HR


Key challenges

Master Data Management

Low master data quality

Duplicate master records

Manual approval flows and exception handling

High processing time

Keeping track of request status is cumbersome

Audit trail of changes are often missing

Retention management - No process to purge obsolete master records

O2C P2P FI-GL HR MDM


SSC Strategy & Consulting

Evaluation and Recommendation of Best of Breed technology solutions

Implementation services

Support services

Offerings

Avaali’s Offerings for SSC Enablement

Processes & Technologies

P2PO2C HRFI MDM

Scanning

& OCR

ERP

IntegrationWorkflows

Document

Management/

Archiving

Reporting


Process Automation in SSC

Customer Order Processing &

Validation

Order acknowledgement

Sales order creation

Invoicing & Collections

Remittance matching and

Cash ApplicationReporting

- Scan & capture Customer order

- Archive customer PO & establish

link for future reference

- Initiate workflows to handle

exceptions

- Send acknowledgement for customer

order

- Document all customer

correspondence and clarifications

sought

- Automatic Sales order creation

- Workflow for pricing approvals

- Customer PO & other communication

details are attached to the sales order

- Communicate delivery date, credit period

& other details to the customer

- Create and send invoices to customers

- Run Ageing analysis reports with pre-configured

thresholds and rules

- Automatically trigger alerts for customer follow-

ups

- Refer to prior correspondence and order/invoice

details

- Automatically capture and validate remittance

details

- Match payments automatically to invoice line

items and clear them

- Workflows for exception handling

- Archive bank statements etc. and attach them

in ERP for future reference

- Constant online visibility

- Complete audit trail of entire

process

- Reporting based on various

KPI’s/SLA’s

O2C P2P HR MDMFI-GL



Process Purchase

requisition

Order confirmation

Goods receipt

Capture & Validate

incoming Invoices

Invoice Processing

Information Access and Reporting

Payment Run

- Auditable workflows for

purchase requisition approval

- Automated Purchase/Service

Order creation

- All Vendor communications

are saved/archived for

reference

- Capture order confirmation

details and match data with

PO in ERP

- Automatic creation of order

confirmation document in

ERP if required

- All supportings are archived

and attached to the

GR/Service Entry Sheet in

ERP

- Workflows triggered to

Quality and Excise

Departments for verification

- Paper invoices are scanned

and subjected to OCR,

- Line items are matched

against the PO

- Digitized documents are

archived and linked to ERP

- Liability reporting

- Dashboards based on

various KPI’s/SLA’s

- All P2P documents are

visible in ERP in digital

form with controlled access

- Business rules are

checked based on invoice

type

- Workflows are triggered

for approvals & exceptions

- Straight through

processing

- Audit trail maintained

- Workflows are triggered for

payment approval based on

payment mode

- Original invoice and all

supportings are accessible

for approvers

- Audit trail maintained

O2C P2P HR MDMFI-GL



Financial Postings request

Approval Workflow Process Visibility

- Communicate a posting request to the finance area.

- Submit the request through a simple-to-use web

application or ERP user interface.

- Single entry point for all posting requests

- Automated workflow for approval

- Requests directed to multiple recipients for additional

information or corrections,.

- Once approved request proceeds to authorized

financial service area for posting.

- Full overview of all requests, transactions, and

processing status.

- Clear audit trail of all change requests improves

reporting ability and compliance management.

- Clear visibility into entire process.

O2C P2P HR MDMFI-GL



Employee Records

Management Travel Management HR Helpdesk

- Process standardization and automation

- Centralized management of employee documents

- Automated workflows for

approvals/verifications/exceptions/deletions

- Digitized Employee records

- Self service portals for employee, manager and HR admin

- Self-service scanning and assigning of receipts

- Automatic capture of receipt details and automatic matching to

trip details in the backend system

- Archiving functionality

- Complete audit trail and history of all e-receipts

- Self Service portals

- HR Call Tracking

- Workflow for Helpdesk

- Knowledge repository based on activities

- Integration with ERP systems

- SLA-based Reporting

O2C P2P MDMFI-GL HR



Master Data request Approval Workflow Process Visibility

- Web forms for raising requests

- Centralized processing of requests

- Tracking of requests and status, with

ticket details and audit trail

- Automated workflow for approval

- Workflows for additional info and verification

- Control of Master data requests

- Full overview of all requests, transactions,

and processing status.

- Clear audit trail for reporting and

compliance management.

O2C P2P FI-GL HR MDM


SSC - Benefits

1. Best in class business processes

Standardised and streamlined processes

Automated processes with faster turnaround time

Fully compliant processes

2. Driving best in class outcomes

High service quality due to automation & visibility

Reduction in DSO, Invoice Cycle time leading to

better vendor relationships / better discounts,

accurate and updated GL

3. Better transparency and Visibility

Dashboards and SLA tracking

Outcomes vs. business objectives

Faster decision making


OpenText Vendor Invoice Management for

Tata Sky

Customer Profile:

- One of India’s largest

Media/DTH Companies

- Over 10 million

subscribers with coverage

for over 36,000 towns

across IndiaSolution Highlights

• Advisory services to design and setup

SSC for AP/P2P operations, including

handling transportation invoices

• Implemented OpenText Vendor Invoice

Management including Invoice Capture

Center for OCR

• Solution cut across various departments

with order to pay process variations for

post-facto and pre-facto invoicing

• Solution catered to various invoices

sizes with huge number of supporting

documents

• DMS setup for both AP and non-AP

documents

Benefits

• Lower invoice cycle time from 7 to

2 days

• Reduction of FTE in AP by 3

people in < 1 month

• Scalability to process 4x growth in

invoices

• Improved visibility over current

liabilities and AP process

bottlenecks

Challenges & Opportunities• No central location of receiving and processing invoices, hence no clear picture

about pending liabilities and bottlenecks

• Lot of offline correspondence and approvals in AP that are not documented or

recorded in the system

• Non-standard business rules for invoice approval and processing

• Periodic reporting and reconciliation was problematic

• Many issues in handling 3-way matching and associated exceptions

• No digitization of invoices and associated documents


Shared Service Center Automation

Customer Profile:

- diversified conglomerate

with operations in over

30 countries

- strong presence in more

than 100 markets around

the world

- Over USD 600 million in

revenues

- 7500+ employees

Solution Highlights

• Advisory services - identified current issues

and recommended SSC best practices

• Evaluated best of breed technology vendors

and recommended the best fit.

• Implemented Readsoft scan & OCR solution to

digitize vendor invoices, customer orders,

customer payment advices, cheques etc.

• Implemented Readsoft Process Director AP,

AR & Sales Order modules for automated

business rules, exception handling and

workflows

• Touchless processing capabilities

Benefits

• Reduced invoice cycle time and

errors

• Reduced DSO

• High volume processing without

increasing AP & AR headcounts

• Complete digitization and

paperless office

• Improved visibility over current

liabilities, open customer

invoices and process bottlenecks

Challenges & Opportunities

• Remote locations in India and abroad where paper documents where processed

• No digitization and electronic movement of documents

• No standardized business rules to manage P2P and O2C processes

• Lack of visibility on process status and bottlenecks

• Error prone vendor invoice processing and no way to identify duplicates

• No standard payment authorization process

• Remittance matching and cash allocation issues

• High cost per document


FURTHER INFORMATION

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enabling enterprises sieze the shared · pdf fileo2c p2p fi-gl hr mdm. copyright @ 2014...

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