how do you deliver analytics in an effective manner from a shared ... - deloitte … · 2014. 11....

© 2014 Deloitte LLP. All rights reserved.

How do you deliver analytics in an effective manner from a Shared Services or GBS organisation

Michael HauptDirector Finance Performance Management & Insight, Deloitte UK

Gareth JamesPartner Audit Finance Analytics, Deloitte UK


Bringing key transformation trends together …

2 Deloitte Shared Services, GBS & BPO Conference 2014

Low

Low

High

High

Finance Value Add

(Strategist & Catalyst)

Finance Efficiency & Control

(Steward & Operator)

?


Agenda


• Why is Analytics an exciting opportunity for your SSC/GBS?

• What framework and building blocks do you need to have in place?

• How to link Analytics capabilities into your SSC/GBS?

© 2014 Deloitte LLP. All rights reserved.4

Why is Analytics an opportunity for your GBS/SSC organisation?


What do we mean by ‘Analytics’?



What do we mean by ‘Finance Analytics’?


Planning & Analysis Business Insight &

Decision Support

Process, Risk & Control

Analytics

Automated Reporting, incl.

- Standard Variance Analyses

- Self-Service Analysis

- …

Automated Planning and

Forecasting, incl.

- Driver-based planning

- P&L,B/S & CF forecasting

- Scenario analysis

- …

Finance-supported business

insight to enable effective

business partnering, incl.

- Pricing

- Cost to Serve Analysis

- ROI analysis

- …

Finance-owned specialist

insight, incl.

- Working Capital Analytics

- Tax / ETR Analytics

- …

Control, errors, exceptions

(incl data quality)

Fraud risk monitoring and

policy override

Policy and regulatory non-

compliance (incl security)

Process & control automation

SSC process efficiency and

service effectiveness

Internal and external audit

efficiency analysis


Key trends in adopting Analytics in SSC / GBS


Financial

Advice

Financial

Reporting & Planning

Transactions &

Data Management

Traditional Emerging

Reporting, Planning

& Decision Support

Process, Risk & Control

Analytics Data Management & Analytics

Business Insight &

Decision Support

Business

Partnering

Financial Planning & Analysis

1

2


Deep Dive I

Setting up a GBS Operating Centre for Reporting, Planning & Decision Support


Key objectives


Procurement

IT

HR

Finance

OC Tax

OC Treasury

OC Decision Support

Transactional Processes

MR PBF Anal.

RTR PTP OTC RA Comp

1. High quality Management Information & Insight

2. Integrated and efficient processes

• Management Reporting

• Planning, Budgeting & Forecasting

• Performance Analysis

3. Capacity & Capability for FBP development

4. Organisational agility

EXAMPLE


Key building blocks


2

23

AnalyticsPlanningReporting

Common

Management

Information

Reporting & Analytics

Data Warehouse Cons.Planning

ERP ExternalOther GB

S

Transactional Processes

FB

P

Process & Activity Framework

Relationship Management

Talent Development

Information Management & Governance

Integrated BI & Analytics architecture

24

25

1

1

4

5

Data Management

GB

S O

C

3

2

EXAMPLE


Activity & Capability split (example)


Level 0 / Level 1

(GBS)

Level 2

(GBS OC)

Level 3

(Business Partner)

Activitie

s

Routine Transactions

Data Reconciliation

Std Report Production

Basic analysis

Management Reporting,

Commentary & Ad hoc Analysis

Planning & Forecasting

Performance Analytics

Insights generation

Finance Partnering

Strategic business advice

Ca

pa

bili

tie

s Basic systems skills

Basic Excel skills

Basic Finance skills

Advanced business & finance skills

Advanced information modelling

and analytics skills

Project management

Commercial skills

Communication skills

Deep relationships & knowledge

of the business

Routine activities Knowledge based activities

EXAMPLE


Process design & ownership (planning)


GBS OC (Process Owner) Business Partner

Issue timetable

Populate planning templates

Validate assumptions with

business

Update financial models

Prepares standard reports & analysis

Runs scenario analysis (if requested)

Strategic commentary

Coordinates with the CoE to

generate additional analysis

Finalize presentation materials

Reviews with

executive leadership

for approval

Final system updates

(based on approvals)

EXAMPLE


Relationship Management


Business Partner

CFO

On-Site FDs

On-Site FBPs

FP&A Lead

Transactions

OC Decision Support

CoE Lead

Specialized

Analysts

Relationship

Managers

OC Tax & Treasury

RTRRTR

Treasury

Specialized

Analysts

Specialized

TeamsRTRRTR

GBS

GBS

Functional Leads

RTR

EXAMPLE


Global Information Management

Deloitte Shared Services, GBS & BPO Conference 2014

Global Information Requirements

Global Information Model &Governance

Value-based prioritisation of analytics

deployment roadmap (2x2x2)

EXAMPLE

14

Finance Analytics

Supply Analytics

Commercial Analytics


Right tool for the right job


EXAMPLE

AnalyticsPlanningReporting

Common

Management

Information

Reporting

Data WarehouseCons.

Planning

MDM

ERP ExtOther

int

Analytics

&

Visual.

Orders/

Transactions

‘Traditional’ Business Intelligence Solutions

Data Warehouse

BI solutions for Reporting, Planning, Consolidation and

Profitability Management

MDM

‘Emerging’ Analytics Solutions

Visualisation

Cloud-based planning

Real –time Transaction Data Analytics

‘Cost-to’ Analytics

Spent Analytics (Bank Spent, Trade Spent,

Cash & Working Capital)

Revenue Leakage

…


Business Case


• Value creation opportunities

per function

• Reduction of non value added activities

• Arbitrage (optional)

• Organisational integration & agility

• Employee satisfaction & effectiveness

• Accuracy, compliance & control

Value Opportunities

Efficiency Gains

Non-quantifiable

benefits

FOCUS!!!

Investments• Technology

• Project & Change Management

EXAMPLE


Deep Dive II

SSC process, risk & control analytics


Key objectives


Shared Services Centre (SSC) Process, Risk & Control Analytics

• manage based on exceptions, series of automated tests to help highlight variation from norm or policy

violations

• proactively monitor for fraud or policy abuse including from internal and external compliance

perspectives

• highlight system access and segregation of duties issues

• data matching, reconciliation and quality automation, underpinning greater confidence in SSC KPIs

• highlight process inefficiencies, non standard transaction flows and “bottle necks” in the service

• improve internal and external audit efficiency, allowing the team to have continuous audit monitoring


The Case


Shared Services Centre (SSC) Process, Risk & Control Analytics

• A more proactive, responsive role can be delivered for SSC through the adoption of analytics.

• SSC have masses of data – a better way is needed to pick the transactions that matter.

• Move the SSC forwards on in its lifecycle – especially as more work comes in, there has to be a way to

work more efficiently or differently to keep up.

• Show Audit Committees that we are embracing automation opportunities and at the same time

improving compliance and controls, reducing risk e.g. Bribery Act or SAO sign off.

• Provides evidence to independent assurance providers that process design is fully operating


Example 1 – Process Pathway Analysis


We created an end to end process visualisation to assess deviations

• Understanding and visibility of ALL the process flow paths.

• The common patterns can be checked for conformity to the process.

• More advanced calculations can be added to look at average dwell in

each stage for each pattern.

EXAMPLE


Example 2 – Process Performance Analysis


We used a visualisation technology to build a custom interface for users to explore

and ask questions of the data against their processes and business scenarios

• The overall view of the process shows us key

metric for each stage of the process.

• The boxes change colour when the rate in and rate

out are out of balance.

• Using filterers we can compare different types of

order scenarios over time.

• Further analysis can be performed to drill into

the data that will allow further analysis of the

selected scenario.

• Custom view can be made for different teams,

showing relevant visualisations and metrics.

EXAMPLE


Example 3 – Risk & Control Analytics


Identify and

connect to

relevant data

sources

Risk monitoring and controls

automation platform

Capture

knowledge of key

risks, internal

controls and

assurance

requirements

Exception

Closed

Generate

Exception

Notify User

Route and

Escalate

Action taken

Defined exception handling and

remediation function

Dashboard Reporting

Exception Management

System

EXAMPLE


Sharing Key Learning Points


• Analytics will not solve your process problems – be they in the SSC or ‘upstream’

• Have a long term plan and implement it gradually – walk before you try and run

• Tackle opportunities process by process, and implement the those repeating analytics in waves

• Don’t allow “ownership” to pass to IT.

• Allow and expect your underpinning technologies and organisation model to evolve

• Bear in mind ‘independence’ from your core ERP / business systems

• Ensure the environment is ITGC compliant if you want your audit colleagues to rely on your capabilities


Thank you!



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how do you deliver analytics in an effective manner from a shared ... - deloitte … · 2014. 11....

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