Dr. Christian Campagna, Managing Partner at Accenture - Integrated Business Services - Benefits of a pioneering hybrid delivery model spoke at the CFO Event UK 2013

1. Integrated
Business Services
CFO Event,
London – Heathrow
October 23, 2013

2. For almost 30 years, the shared services model has proven to be
a successful concept for enterprise effectiveness
Costs down, efficiency up
Recent Statistics
• More than 80% leverage
finance Shared Services
• 52% of finance activities
are delivered out of GBS
• 74% of GBS organizations
are multi-function
• 34% of GBS companies
report YOY cost savings
>10%
• Up to 7000 people and
counting- GBS
organizations are growing
Mid-1980s
Mid-1990s
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Mid-2000s
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3. But effectiveness in the back-office does not guarantee success
for the enterprise
Globalization
Changing Consumer
Behavior
Corporate Challenges
Rapid
Digitalization
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• Global Agility &
Flexibility
• Competitive
Differentiation
• Client & Value
Focused Culture
• Control, Transparency
& Insight
• Future of Work
Revenue / Cost
Optimization Pressure
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4. Integrated Business Services (IBS) is the next evolution of Shared
Services and can help to address many new business challenges
Discrete
Shared Services
Geo 1 Geo 2
Multi-Function
Shared Services
Geo 3
Geo 1
FIN
FIN
FIN
Geo 2 Geo 3
FIN
FIN
Global
Business Services
Global
Integrated
Business Services
Global
Source to Pay
Customer Services
Supplier Services
HR
HR
HR
Order to Cash
HR
Employee Services
Financial Services
IT
IT
IT
Hire to Retire
Analytic Services
Business Impact of Each Model on the Enterprise
Model Type:
Discrete
Multi-function
Global Business
Integrated Business
Process Transformation
OpEx Reduction
Capital Efficiency
Risk Mitigation
Revenue Growth
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5. As the name implies, it’s all about «integration» to help support a
new global business strategy
1
End-to-End
2
Functions and processes
3
Service delivery
4
Sourcing
5
IBS strategy
integration between the back-, mid- and front-office
integrated
integrated
integrated
cross-functions to enable global strategies
with strategic partners to realize optimal expertise and cost
integrated
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into client meaningful services
into the C-Suite to achieve sustainability
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6. Financially, IBS is designed to address revenue and margin
enhancing activities while still improving traditional cost areas
Impact of Traditional Shared
Services on the P&L
Impact of Integrated Business
Services on the P&L
Direct Enabler of the
Business Strategy
Revenue
Revenue
Optimized Marketing Costs
Sales &
Marketing
SG&A
Sales &
Revenue
Marketing
Back Office Cost Savings
for Traditional Functions
SG&A
Enhanced Back Office
Cost Savings
Optimized Material Costs
COGS
COGS
Improved spend control
and policy adherence
Reduce Operational Costs
Grow Top Line Revenue
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7. Based on what IBS can deliver, it can become a strategic and
competitive element of a company’s business model
CEO
Regions
Operating Units
IBS
Corporate Functions
Operational management
of the business and
external customer
Innovation and product
or service development
Deliver integrated
support and valueenabling services
Strategy and policy
Efficiency Engine
Business Enabler
Growth Platform
• Cost avoidance for new markets
• End-to-End process and service
management
• Delivers continuous improvement
• Provide the glue for the entire
operating model
• Service and customer oriented
• Measures achieving business
objectives
• Shared responsibility for business
outcomes
• Enhanced career paths and talent
pools
• Ongoing scope innovation
• Service and solution innovation
• “Plug & play” for new markets and
acquisitions
• React quickly to transformations
• Location and souring neutral
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8. With its strategic importance and enterprise wide reach setting up
and running IBS operations is not an easy task
Truly global operations
High speed of change
Fast payback periods
High know-how standards
Cash Flow neutral
Global Hub
Regional Spoke
Local Satellite
Strong control & transparency
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Fast scalability of large
organisations
Innovation and
continuous Improvement
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9. IBS hybrid delivery models can optimize the benefits of captive
and outsourcing solutions…
SSC
Global scale
Hybrid
BPO
variable
variable/fix
fix
Return
Scope of Service
Scalability
Control & Transparency
Speed of Change
Cash Flow neutral
Price
Continuous Improvement
…and can significantly reduce the risk in building and running an
IBS organsiation and can help to ensure continous innovation
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10. As in the past, Finance will continue to play a leading role in helping
companies evolve... this time to Integrated Business Services
Success Factors in the Evolution
Mid-1980s
Today
Solid long term vision
IBS Lead
Continuous support
from the entire Board
Global
Customer Services
Supplier Services
Pick carefully your first
battles for success
Finance Services
Employee Services
Acknowledge and plan
for “re-imaging” of your
existing SSO
Ensure IBS leadership
team includes leaders
from the business
Analytics Services
Service Innovation
Global Service Owners
Integrated Delivery Network
Integrated Service Management
Track, measure, and
communicate !!!
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11. And we are just at the beginning of innovative services delivered
out of Integrated Business Services organisations
Life Sciences
Consumer Goods
• Product launch services
• Digital content and web sales
• Intelligent customer,
intermediary and patient
support
• Global trade promotions and
image management
• Pharmacovigilence and
clinical study support
• Strategic and tactical sourcing
Seeds & Crop Protection
• Advanced sales, service and
educational solutions for field
sales force
• Virtual in-store stock planning
Transportation & Logistics
• Quotes and order taking
• Route planning and booking
• Strategic sourcing
• Tracking and exceptions
handling
• Process development
and R&D collaboration
• Cargo document management
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12. Integrated Business Services will dramatically change the way
corporations operate…..
…and time will tell what this will look like in the future
Thank you for your attention !
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