Shared Services Platform (as self defining as it can be) promotes the idea of 'sharing' within an organization or group or may also be provided as 3rd party SBU services. Creating a Single point of contact for all service deliveries, enabling Cost effective solutions, leverage Automation, optimize workforce and the Speed to fulfillment is the key to success of such organizations. More and more companies are moving to such platforms and the success rate is very high.

1. 1
An Introduction
 What are Shared Services?
 Why Organizations Adopt Shared Services?
 How are Shared Services Implemented & Optimized?
 How does Oracle Enable Shared Services?
 What’s Next/Trends?
Sanjay Chaudhuri
Director Asia Pacific
Strategic Sourcing
Aug’ 2016

2.  Reduce Cost
 Improve Productivity
 Promote Timely execution
 Enable better Decision making
 Leverage existing and exploit emerging Technologies
 Ensure acceptable level of control and risk management
 Optimize skills/capabilities of the organization
 Promote collaboration across the extended enterprise
2
It is a service model designed to gain efficiency in routine processing by
leveraging common practices and enabling Technology
KeyBenefits
Objectives….
The Key here is the idea of 'sharing' within an organization or group or providing as 3rd
party services.

3. 3
SalesMarketingDistributionManufacturingPurchasing
FINANCE
HUMAN RESOURCES
INFORMATION TECHNOLOGY
LOB1
SalesMarketingDistributionManufacturingPurchasing
FINANCE
HUMAN RESOURCES
INFORMATION TECHNOLOGY
LOB2
SalesMarketingDistributionManufacturingPurchasing
FINANCE
HUMAN RESOURCES
INFORMATION TECHNOLOGY
LOB3
Silos of Resources & Data
OTHER SERVICES
OTHER SERVICES
OTHER SERVICES

4. 4
SalesMarketingDistributionManufacturingPurchasing
LOB1
SalesMarketingDistributionManufacturingPurchasing
LOB2
SalesMarketingDistributionManufacturingPurchasing
LOB3
Independent LOBs with Common Model Support
FINANCE
HUMAN RESOURCES
INFORMATION TECHNOLOGYShared
Services
Common
Platform
ADMIN & FACILITY SUPPORT
CORPORATE TRAVEL
LOGISTICS & DISTRIBUTION
SUPPLY CHAIN & PROCUREMENT

5. 5
• Service delivery models for Shared
Services are proven
– Ranging from sharing only technology
and / or processes and/or people
– Varying strongly in scope
• Technology is mature
– Core are global ERP/HRMS systems
– Wide range of tools in use
– Data Collection, BSC, Workday, etc.
• Best-practices available in
abundance
– From numerous successful
implementations in all industries
Shared Services Are Highly Mature… …And Have a High Success Rate
Yes, however,
had few issues.
Do not
Agree.
Yes,
Agree
Highly Matured And Successful
Source: Hackett “The Future of Shared Services” 2015

6. 6
HighLow Medium
TACTICAL
HighLowMedium
STRATEGIC
• ← Improve Service Levels
• ← Process More
with Same/Less
• ← Process
Standardization
• ← Process
Improvements
• ← Increase Control
• ← Capture Acquisition Synergies
• ← Data Visibility
• ← Coordinate IT
• ← Accelerate ERP
Implementation
• ← Headcount
Reduction
Increasing
Sustainable Value
and
Continuous
Improvement
as
f(x) of Time
Tactical versus Strategic Business Drivers

7. 7
Source: Deloitte Research “The Future of Shared Services”
Business drivers for adoption of SSC (% of respondents)
0 10 20 30 40 50 60 70 80 90
Capture acquisition
synergies
Cross-division/location
comparability
Coordinate IT
Data visibility and
comparability improvements
Accelerate ERP
implementation
Increase control
Improve service levels
Headcount reduction
Facilitate process
improvements
Process standardization
Headcount reduction is NOT #1 priority, although important
Other business drivers
Process standardization
and improvements
Process Standardization and Improvements

8.  Average ROI for shared services implementation is about 20 percent
◦ Average payback period approximately three years
◦ 74 percent meet or exceed their financial targets
 Measurable direct bottom-line impact, e.g. up to 45% reduction of finance
cost through shared services
 Sizeable benefits achievable in payroll administration - the early adopter in
HR shared services
◦ Top performers beat the average payroll cost per employee by 47%
 Shared services also deliver on intangible benefits
◦ Such as productivity, quality and customer service
8
Overwhelming Evidence of proven financial benefits from SSCs

9. 9
Finance
• Cash disbursements
• Revenue cycle
• Accounting &
External reporting
• Tax management
• Manage Treasury
• Compliance
management
• Manage Planning
and Performance
• Business analysis
• Manage Function
HR
• Rewards
administration
• Payroll services
• Data management,
reporting/compliance
• Staffing services
• Workforce
development service
• Organizational
effectiveness
• Total rewards
planning
• Strategic workforce
planning
• Manage Function
Procurement
• Supply data
management
• PR & PO processing
• Supplier scheduling
• Receipt processing
• Compliance
management
• Customer
management
• Sourcing execution
• Supplier management
& development
• Sourcing & Supply
base Strategy
• Manage Function
Services
• Order and contract
management
• Service execution
• Service operation
• Planning & strategy
• Manage Function
Functional Areas And Key Processes Covered By SSC….1

10. 10
Info Tech (IT)
• Infrastructure
development &
management
• End user support
• Application
development &
maintenance
• Quality assurance
• Risk management
• IT business planning
• Enterprise
architecture planning
• Emerging
Technology
• Manage Function
Marketing & Sales
• Marketing
communications
• Brand and product
management
• Planning & strategy
• Market research &
analytics
• Sales execution
• Sales operation
• Sales planning
• Function
management
Manufacturing
• Production planning
• Inventory
management
• Shop floor scheduling
• Capacity management
• Function management
Corporate Services
• Gen. Administration
• Travel, Transport,
Logistics
• RE & FM Mgmt
• Government affairs
• Legal & Compliance
• QTY management
• Risk & security
management
• Corporate
communications
• Planning & strategy
• Executive office
Functional Areas And Key Processes Covered By SSC….2

11.  Clearly define the Shared Services vision
◦ Senior executive driven process with operating unit leader participation
◦ Clear alignment of Shared Services vision with overall organizational goals
 Develop a detailed business case for change
◦ Develop “case for change”; include both hard benefits (e.g. labor cost reduction) and
soft benefits (e.g. service improvement, better visibility, etc.)
◦ Do not under-estimate the implementation and transition costs
 Define scope for economies of scale and skill
◦ Scope includes “scale” based processes (e.g. Payables, invoices, etc.)….
◦ …and “skill” based processes (e.g. legal, marketing, tax, etc)
 Establish appropriate executive leadership
◦ Steering committee includes HQ and operating unit executives
◦ Use distinct leadership for SSC development vs. operations
 Select the right people for the project
◦ Select the “right” resources, not the “available” resources for the project
◦ Release SSC project resources from their day-to-day responsibilities
11
1
2
3
4
5
Source: “Ensuring Successful Shared Service Implementations: From Vision To Operation”, Accenture
Best Practices

12.  Communicate extensively
◦ Establish a clear communication plan (message outline, timing, audience,
communicator)
◦ Communicate to potentially affected employees early-on
 Start transition planning early
◦ Start transition activities up to 180 days prior to SSC implementation
◦ Focus on knowledge transfer, data conversion, and training activities
 Use technology as a strategic enabler
◦ Streamline/consolidate core transaction processing systems (ERP, HRMS, etc.)
◦ Invest in workflow capabilities, case management solutions, and self-service tools
 Recruit and train the “right” team for the Shared Service Center
◦ Use a mix of internal and external hires to develop the SSC team
◦ Develop and implement an enduring training plan
 Over support each implementation
◦ Over staff the organization during the transition and stabilization periods
◦ On-site project representatives for support & issue resolution during stabilization phase
12
6
7
8
9
10
Best Practices … contd.

13. 13
Success Factor Deemed Most Important by Surveyors is
Executive Sponsorship
Strong planning and Process Standardization are not enough on their own
Source: The Johnson Group’s Survey of 40 global organizations, workshops, and client engagements.
87
Respondents

14. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Increase automation tools
Streamline processes
Expand scope of services
Improve customer service levels
Improve controls
Expand the number of internal customers
Improve overall governance structure
Improve performance management
Develop/improve formal training programs
14
Top Initiatives: Percentage (%) of
Respondents
Source: Deloitte Research

15. 15
100
54
19
17
10
0
20
40
60
80
100
a b c d sumONE
common ERP
system.
Legacy
System
Multiple
ERP
systems
Total
1. ERP
2. Data Analysis and Reporting Tools
3. Workflow
4. Document Imaging
5. Data Warehouse
6. E-Payment
7. Employee Self-Service
8. EDI
9. Manager Self-Service
10. Financial Consolidation Tool
% of
respon-
dents
Top 10 Technology Enablers ERP Standardization Is A Given
Multiple
ERP
instances
Source: Accenture
Homogeneity of IT landscape: It’s best to identify and have one single integrated
ERP system as the single most important best-practice for SSC performance

16.  Outsourcing and Off-shoring
◦ Once an organization feels comfortable with internal Shared Services it may
decide to outsource and/or offshore operations
◦ Mature offerings in Finance/IT available, HR/procurement/etc. taking up speed
 More automation
◦ Most important objective of most SSCs: single global ERP/HRMS system
◦ Top 2-4 priorities are: Vendor self-service, Employee self-service,
e-procurement and Continuous Improvement are the Key Drivers.
 Global reach - movement to global shared service models
– Pressure to move to lower labor markets
− Increased efficiency with lesser SSCs
 Scope expansion along all Corporate Functions
16
Outsourcing, Automation, Global Reach and Scope Expansion

17. 17
68%
62%
56%
49%
44% 44%
40%
32% 32%
0%
10%
20%
30%
40%
50%
60%
70%
KPI SLA Continuous
Improvement
Model
Employee
Self-Service
Imaging
Workflow
Call Centre Balanced
Scorecard
Governance
Board
Employee
Development
Programme
Source: The Johnson Group
SLAs that do not promote simplicity, transparency and accountability.
They are likely to cause more administrative burden than benefit.
Continuous Improvement and Self Service are also Key Drivers

18. 18
Simplicity
• Short (1-3 pages) and simple to understand
• Bundle services by BU to enable tradeoffs across functions
• Enable straightforward, ongoing communication
Key Success Factors What You Need
Transparency and
Choice
• Invoicing clear and understandable
• Insight to service cost drivers & encourage desired behavior
• Base level “lights-on” operation other than optional services
• Flexible, scalable service levels, up or down
Metrics and
Accountability
• Track performance against internal targets and external
benchmarks (without adding excessive infrastructure)
• Link business and service management (SBU Model)
What Makes SLA’s Successful?

19. 1919
82%
71%
48%
45%
42%
40%
40%
39%
34%
31%
28%
25%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Service Level Agreements
Key Performance Indicators
Imaging/Workflow
Employee Development Programs
Account Managers
Continuous Improvement Model
Call Center
Balanced Scorecards
Employee Self-Service
Communications Model
Customer Self-Service
Manager Self-Service
Best Practices adopted by Leading Shared Services Operators
Source: Johnson Group
Governance related
Performance related
Technology related
% of Centers

20. 20
• Unifying Technology
– Developed Applications to support multiple organizations in one instance
• Workflow
– The key link between SSC and the divisions being served is built into the Application
• Interfaces
– Management tools can interface & integrate with comprehensive application seamlessly
• Self Service
– Integrated applications is used by the LOB being served, driving Operating Efficiency
• Business Intelligence
– Powerful means to monitor and manage performance by both the SSC and LOB’s
• System Enabled Metric Application
– Activity Based Costing or BSC can be used to manage performance against SLA
• Integrated Customer Relationship Management (CRM)
– CRM Modules are pre-integrated into the E CRM Application

21. Thanks You
Q & A