deloitte shared services, gbs & bpo · pdf fileintroduction to itv ... iprocurement &...
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Deloitte Shared
Services, GBS &
BPO Conference
Berlin, Germany
Ian Butterworth & Amanda Coad,
22 – 23 September 2015
Analytics at ITV – what is the
opportunity for shared services
and where does the business
case lie?
Financial Analytics
What is the opportunity for Shared Services?
Ian Butterworth, Head of Purchase to PayAmanda Coad, Finance Manager Group & Services
Introduction to ITV
Number of Employees – c5,000
Group External Revenue - £2,590mEBITA (before exceptionals) - £730m
Invest £1bn in programming for our family of channelsShare of Broadcast c45% in the UK
Producer 5,700 hours of original programme content
Grown the international business through acquisitions
About us
Group
Head of BSC
Purchase to Pay
PayrollChangeOrder to
CashRecord to
Report
Talent & Royalty
Payments
BSC Structure
About us
A lean ITV that can create world class content, executed across multiple platforms and sold around the world
Maximise audience and revenue share
from free-to-air broadcast and VOD
business
1Grow
internationalcontent business
2Build a global payand distribution
business3
Over time as we continue to rebalance the business and grow new revenue streams, both organically and through acquisition, there will be an increasing emphasis on
international content creation and distribution
2010 2015
Scri
pte
dEn
tert
ain
men
t &
Fac
t/En
t fo
rmat
s
SCRIPTED
CONTINUOUSDRAMASCRIPTED
D AY T I M E
mediacircus
D AY T I M E
ITV’s International Growth over last 5 Years
NON
ORACLE
• Addison Lee• HR Data• Bottom Line• NGA ‘Resourcelink’
AX Core Client
ACL GatewayAdhoc Analytics
Load Reconcile Analyse
Control Analytic
Dashboard Analytic
Ad hoc Analytic
Workflow
Assess Work Resolve
Dashboard Visualisation
Monitor Analyse Act
RTR(25)
OTC(7)
PTP(64)
PYRL(21)
FS(12)
Business ProcessesU
K B
usi
nes
ses
Amanda Coad2002 - 2008Tour Operations Finance- Cost Control- Balance Sheet Risk- Forecasting & Budgeting- Process Improvement
Record to Report Group Finance Manager
Roles @ ITV and Key achievements include:
2008 2015
Divisional Management Accountant – ITV Studios
Finance Manager – ITV Studios
Change Manager – Talent & Royalties
Automation of Royalty Statement Solution
Record to Report – Group Finance
Financial Analytics
Acquisition Accounting
Process Improvement- FX & Interco
Lead in Change Management transition
Treasury Reporting
About us
Ian Butterworth2005Group Accountant
Project Team‘pushing the boundaries of PTP’
StandardiseSimplifyAutomateControl & ComplianceVanilla ERP (Oracle)
Head of Purchase to Pay
Initiatives introduced into ITV via PTP include:
20082015
iProcurement & iExpenses
Corporate Cards (centrally settled)
How to Guides produced
Online training tools
Outsource Invoice Scanning
Auto close PO’s
Self settle cards
Financial Analytics
No Receipt No Pay
Master Data Team
Instant Issue Cards
CPI Embedded
Invoice Discounting
AP Team ofthe Year
About us
“Your Life.....But Easier”
I wish I could prove all my
processes work
I wish I had data to prove there was no fraud in my organisation
I wish I had a way to ensure
risk was reduced
I wish I could confirm all my
payments were accurate
I wish that data could drive the
right behaviour in my organisation
I wish I had a way of making my org more
credible
“....well Sepp..... Analytics won’t fix your processes, but it will help you identify where your risk is!....”
Is it worth it, Benefits for you could be...
• Reduce risk
• Highlight potential fraud
• Confirm your processes work
• Engaged team who own Analytics
• Rapid move up the value chain
• Entrusted business partner
• Change in business behaviour
• Deliver opportunities for change
• Be proactive and ahead of audit findings
• Upskilled team
• Reduced audit time
About us
ITV uses analytics to:
- Monitor risk
- Test variation from norm
- Reduce process bottlenecks
- Eliminate duplicate payments
- Ensure 100% of transactions are reviewed
- Drive business behaviour
- Drive engagement and ownership within teams
Mr Selfridge
About us What do we mean by Analytics?
There are many more opportunities for Analytics
- Control SLA’s on outsourcers
- Working Capital Management
- Revenue leakage
- SOX compliance
- Financial planning
- Business performance
- Targeted marketing
The Mafia with Trevor McDonald
About us What do we mean by Analytics?
ITV utilises 3 types of Reports
- Workflow
- Dashboard
- Ad hoc
Ninja Warrior UK
About us What do we mean by Analytics?
What Financial Analytics has delivered
• PTP Purchase requisition approvals
• Insights into employee expense outliers through clustering
• Identification of duplicate split expense claims
New Fraud Detection Capabilities
About us What do we mean by Analytics?
What Financial Analytics has delivered
• Segregation of Duties exceptions where employees have updated master data tables and posted related transaction
• Identification of inappropriate accounting transactions
New Monitoring Capability for High
Risk Exceptions
About us What do we mean by Analytics?
What Financial Analytics has delivered
• Programme balance sheet classification
• Aged programme stock and creditor analysis
• Identification of fixed assets inappropriately not being capitalised
Automation of Balance Sheet
Control Activities
About us What do we mean by Analytics?
What Financial Analytics has delivered
• Identify manual journals posted to sub-ledger control accounts in error
• Quantify number of correction journals in the general ledger and help identify root cause analysis
Timely Resolution of GL Posting Errors and
Insight
About us What do we mean by Analytics?
How does it affect the team?
- Gives you data to influence
- Gets you a seat at the table
- You enhance your reputation
- You become a proactive business partner
- Your team become really engaged with clearing exceptions
- Lots of ownership in teams
Britain’s Got Talent
About us What do we mean by Analytics?
The Impact on the SSC
It’s not all plain sailing...
- It is more work in the team
- They take time to embed
- You need to establish good governance around changes
- You need technical resource to support BAU
- You need to agree times and formats to receive data from 3rd parties
- Analytics can be seen as silver bullets, not everything needs an analytic
Safehouse
About us What do we mean by Analytics?
The Impact on the SSC
The results make it worthwhile
- Reduced both internal and external audit costs
- Happy Audit Committee
- Zero duplicate payments since Analytics introduced (verified via 3rd party)
- More proactive, much better informing audit than being informed by them
- Extra channel to drive continuous process improvement
- Our thinking around controls have changed, we now build Analytics into new project
- Rapid rise up the maturity curve
Black Work
About us What do we mean by Analytics?
The Impact on the SSC
Judge Rinder
Considerations for your Business Case
• Control is more effective and timely
• Improved audit focus and efficiency
• Ability to provide proactive fraud monitoring
• KPI improvements
• Efficiency savings in SSC
• Start small and grow
• Deliver Analytics in clusters
• Use experienced practioners to lead
About us What do we mean by Analytics?
The Impact on the SSC
Building your Business Case
Project Set Up – The Key
Project Planning• New area for ITV so we really had to think about what we wanted from
analytics before green light
• Large time spent upfront debating and agreeing the scope and purpose of each analytic
• Do we really need it, what is it going to add or what risk is it controlling
• Produced detailed list of analytics reduced any expectation gap – we knew what we were getting before we started design
• Strong focus on ‘so what’ actions during requirements capture – ‘how would this change my day job”?
• Had the list of circa 115 analytics once we started and had clear CR process
About us What do we mean by Analytics?
The Impact on the SSC
Building your Business Case
Governance: Set Up then and Now
Bo
ard
Ste
eri
ng
Gro
up
Wo
rkin
g P
arty
By exception only
Monthly
Weekly
X 2
X 3X 3
Internal Auditors External Auditors Finance BI BSC Technology
• Project Management• Offshore Management• Risks and Issues
• Communications• Timetable
• Owner of IA “tests”• Testing of ACL
• Owner of EA “tests”• Testing of ACL
• Owner post implementation• Support and build
• Point contact for test• Specification• BSC text management
• Governance• Architecture• Procurement of servers
• Accenture management• iBusiness interface
• Key decisions• Change requests• Challenge of design /
specification
About us What do we mean by Analytics?
The Impact on the SSC
Building your Business Case
Governance: Set Up then and Now
External Audit
Where will I be in 12 months after Go Live?
Financial Analytics established in BAU
A Governance Board that meets once a month for 30 mins• Log any changes• Prioritise development• Track progress
A team that use Analytics to drive behavourial change
About us What do we mean by Analytics?
The Impact on the SSC
Building your Business Case
Governance: Set Up then and Now
Reminder of the Risks• Initially more work in SSC• You will struggle to deliver without senior sponsorship• An Analytic will not solve everything• Get your project set up right• Make sure you have a BAU owner of the solution• Don’t do too much too soon
Saturday Night Takeaway
About us What do we mean by Analytics?
The Impact on the SSC
Building your Business Case
Governance: Set Up then and Now
Top Takeaways
A reminder of the benefits you could achieve
• Reduce risk
• Highlight potential fraud
• Confirm your processes work
• Engaged team who own Analytics
• Rapid move up the value chain
• Entrusted business partner
• Change in business behaviour
• Deliver opportunities for change
• Be proactive and ahead of audit findings
• Upskilled team
• Reduced audit time
About us What do we mean by Analytics?
The Impact on the SSC
Building your Business Case
Governance: Set Up then and Now
Top Takeaways
What is the opportunity for Shared Services?
Ian Butterworth, Head of Purchase to PayAmanda Coad, Finance Manager Group & Services
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42Deloitte Shared Services, GBS & BPO Conference 2015