hfs finance in the digital age - webinar deck v6proyectos.andi.com.co/camarabpo/webinar 2016... ·...
TRANSCRIPT
The Services Research Company
Finance in The Digital AgeWebcast Production, April 21st 2016
Mohit Bhatia VicePresidentMondelēz [email protected]
Phil FershtCEO&[email protected]
Reetika [email protected]
Shantanu [email protected]
21st APRIL 2016
Downloadyourcopynow!
Agenda
• Introduction
• StudyFindings
• PanelDiscussion
• Wrap-up
About HfS, The Services Research Company
Overview:• 20years’business experienceintheglobalITandbusiness process
outsourcing andsharedservices industry• Coined the“As-a-Service Economy”in2014• Industryanalyst,author,speaker,strategistandblogger• Advised andcogitatedon100’s ofglobalITservices, BPOandshared
services engagements• Meddleswiththelargestglobalnetworkofenterpriseservicesand
operationsprofessionals
CareerExperience:• PracticeLead,ITServices&BPOResearch,Gartner,Inc• GlobalBPOMarketplaceLeader,DeloitteConsulting• Consulting PracticeLead,IDCAsia/Pacific• ITMarketsPracticeLead,IDCEurope
Education:• BSwithHonorsinEuropeanBusiness &Technology, CoventryUniversity,
UnitedKingdom• DiplômeUniversitairedeTechnologie inBusiness &Technology fromthe
University ofGrenoble, France
Phil Fersht, Founder, CEO and Analyst, HfS Research
Unbridled Opinion… Simply Calling It How It Is
www.horsesforsources.com
©2016HfSResearchLtd. Proprietary│Page8
…With a More Serious Side Too! www.hfsresearch.com
©2016HfSResearchLtd. Proprietary│Page9
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©2016HfSResearchLtd.
The HfS Service Buyer Summits… next up San Fran
www.hfsevents.com/san-francisco-2016
©2016HfSResearchLtd.
Then onto New York…
www.hfsevents.com/new-york-2016
©2016HfSResearchLtd.
8.Plug&PlayDigital BusinessServices
Pluginto“readytogo”outcome-focused, people/process/techsolutionswithsecuritymeasuresandconsumption-basedpricing
Being As-a-Service…
AS-a-SERVICEIDEALS INTELLIGENTOPERATIONS
1.WritingoffLegacyAdoptinglonger-viewmindset tooverhaulobsoleteprocessesandscraplegacytechinvestments.Apreparednesstoinvestinchange
2.DesignThinkingReimaginingprocesseswithservicepartnerstoachievedefined,prioritizedoutcomes
3.Brokering ofCapabilitySource/manageexpertisefromallavailablesourcestoaddresscapabilitygaps
4.Collaborative EngagementMovingbeyond theFTEmodeltodrivesustained,continualvalue
5.Intelligent AutomationEmbracingautomationandcognitivecomputingtoaugmenthumanperformance
6.Having Actionable &AccessibleData
Applyinginsightsfromintegrateddata,inreal-timewithmeaningfulbusinesscontext
7.Holistic SecurityProactivelymanaging dataacrosstheentireservicechainofpeople,systems&processes
The C-Suite wants new providers, new leadership and their operations redesigned…
77%
69%
62%
54%
54%
54%
46%
46%
27%
36%
24%
43%
23%
25%
28%
48%
Replaceyourexisting(legacy)serviceprovider(s)with“As-a-Service”drivenproviders
Identify/hireatransformationalleader/changeagent
Investinspecializedexternalservicestoredesignoperations
Accomplishcreativeproblemsolving/"DesignThinking"
InvestinexternalITservicestohelpusmigrateawayfromlegacysystems
Investinspecializedchangemanagementsupporttoreorientoperationsstaff
Hireinnewoperationstalenttoredesignprocesses
Investineffectiveanalytics tools&skills
Significant Impact C-Level MiddleManagement
Howmuchimpactwouldtakingthefollowingactionshelpyoureachyourdesired“As-a-Service”end-state,ifyouweretomakethemtoday?
Source: "Ideals of As-a-Services" Study, HfS Research 2015Sample: Enterprise Buyers > $1 Billion Revenues = 178
Work in As-a-Service Progress: Digital and Data the real drivers, but current model is still delivering value
66%
53%
52%
39%
31%
23%
21%
17%
13%
Reducingtheoverallcostofprocessdelivery
Moredigitally-alignedoperations
Accessbetterdatatoimproveourbusiness
Movetoanoutcomes-drivensourcingmodel
Reducedrelianceonmanuallabortodeliverprocesses
Respondingtodisruptivecompetitors
Abilitytoaccess,in"realtime",moreflexible poolsofskilledlabor
Pre-emptingcompetitorsinourtargetgrowthmarkets
Nomorevaluetobefoundincurrentsourcingmodel
Whatarethemostsignificantdriversinyourmovetothe“As-a-ServiceEconomy”?(Choosetop3)
Source: "Ideals of As-a-Services" Study, HfS Research 2015Sample: Enterprise Service Buyers = 178
Agenda
• Introduction
• StudyFindings
• PanelDiscussion
• Wrap-up
Overview• Tracksverticalizedtechnology-enabledoperationsinbanking,financialservicesandinsurance
• Tracksenterpriseanalyticsservicesacrossbusinessfunctionsandindustryverticals• ConductsBlueprintreportsacrossserviceareasinglobalsourcing
PreviousExperience• ProjectManagerinthesourcingresearchwingofthebusinessresearchandconsultingfirmValueNotes,encompassingarangeofresponsibilities,includingresearchproductdesignanddevelopmentfortheoutsourcingcommunity,managementofcustomresearchengagements,anddevelopmentofthoughtleadershipthroughtargetedcontentandcommunityinteraction
• NicheBPOandKPOcoverage,includinganalytics,medicaltranscription,marketresearch,ande-learning
• Bespokeengagements,includingin-depthcompetitiveintelligencestudies,marketandinvestmentopportunityassessments,demand-sidesurveys,andmarketingcommunicationoptimizationforoutsourcingbuyers,providers,consultants,andinvestors
Education• Bachelor’sinBusinessAdministration,SymbiosisInternationalUniversity,India• Master’sinMarketingManagementwithBetaGammaSigmahonors,AstonBusinessSchool,UK
Reetika JoshiResearchDirector,Operations&AnalyticsStrategiesHfSResearch
[email protected]@joshireetika
©2016HfSResearch Proprietary│Page18
New Research Provides A Snapshot of ‘Digital F&A’ TodayWith responses from 160 buyers, 130 service providers and 90 advisors, this studypresents challenges, opportunities and future implications for the finance andaccounting market as a whole.
■ Still A Long Way To Go In F&A Outsourcing. Thedominant operating model for F&A is still sharedservices and internal business units.
■ Room For Improvement In Finance OperationsPerformance. Most buyers express a ‘Satisfied’ state(63%) with only 9% being Very Satisfied with theoperational performance of F&A processes.
■ Digital presents a real opportunity to address thecurrent operational state of F&A. We find F&Aexecutives hopeful about the future of digitalenablement, ‘sold’ on the value proposition andbusiness outcomes, but struggling to see the businessimpact today, leading to heightened expectations fromservice providers in the next two years.
AsaFinanceexecutive sharedonthenuances ofoperationalsatisfaction,“InP2P,mostoftransactionalworkwentoverintoBPOjustfine.Itwasinvendorcontactsandproblemsolvingwhereweinitially didn’t fullyanticipatetheproblemsolvinglayer,buttheterritoryfinanceteamsdid.Wewoundupputtingasenior layerofproblemsolversintoourBPOandthatreallymovedusuponsatisfaction.”
©2016HfSResearch Proprietary│Page19
Finance Professionals Buy Into Digital Transformation
Towhatextentdoyouagree/disagreewiththefollowing statements?
Source: “Finance In The Digital Age”, HfS Research 2016Sample: Enterprise Buyers = 160
35%
32%
23%
25%
28%
49%
50%
53%
51%
46%
13%
16%
16%
19%
18%
7%
4%
6%
Enterprisesthatembracedigitaltransformationacrossbusinessfunctionswillgainmore groundthantheir
competitorsinthenextcoupleofyears
Successfuldigitaltransformation impactsthewholeserviceexperience forendcustomersandinternalemployees,byintegratingthe front,middleandbackofficeprocesses
Thenewwaveofdigitaltechnologiesisfundamentallychangingthewaythatthefinancefunctionoperates
Financeprofessionalswhoembracedigitaltechnologieswillexperiencefastercareerprogression
Serviceprovidersthatfailtoembedmoredigitalcapabilitieswithintheirfinanceandaccountingoperationswillseetheir
valuepropositionfadeaway
Agree Strongly AgreeSomewhat Neutral DisagreeSomewhat DisgreeStrongly
©2016HfSResearch Proprietary│Page20
…But 1 in 2 Buyers Is Unsatisfied With Digital Impact Today
Howsatisfiedareyouwiththeimpactofdigitaltechnologies inyourF&Aprocessestoday?
7%
8%
7%
12%
10%
10%
6%
46%
44%
45%
40%
41%
41%
44%
35%
34%
37%
30%
34%
33%
40%
11%
13%
9%
13%
14%
15%
8%
6%
RecordtoReport
Overall
OrdertoCash
FinancialPlanning&Analysis
ProcuretoPay
Treasury,Budgeting
Audit
Verysatisfied Satisfied Neutral Unsatisfied Veryunsatisfied
Source: “Finance In The Digital Age”, HfS Research 2016Sample: Enterprise Buyers = 160
©2016HfSResearch Proprietary│Page21
Buyers’ Wish list—Be More Data-Driven & Efficient Processes
Thinkingabout theadoptionofdigitaltechnologies, howimportantwouldyousaythefollowingbusinessdriversaretoyour financeorganization?
35%
39%
32%
31%
30%
23%
31%
19%
23%
57%
49%
51%
52%
52%
59%
49%
56%
47%
7%
10%
15%
16%
17%
17%
19%
23%
29%
Improveoperationalinsightstoincrease productivity
Gainoperationalefficiencytohelpstafffocusonhighervalueactivities
Breakfromlegacytechnologythatisholdingbackourorganization
Createamoreanalytical cultureamongstaff
Enhanceourcollaborativecapabilitywithourcustomersandpartners
Promotemorecreativethinkingandcollaborationamongstaff
Expand marketinsightstoimprovecompetitivenessandgrowthopportunities
Lessen theneedtokeephiringnewstafftosupportbusinessgrowth
Improvethemobilityexperienceofemployees
Hugeimportance Someimportance Minimalimportance Noimportanceatall
Source: “Finance In The Digital Age”, HfS Research 2016Sample: Enterprise Buyers = 160
©2016HfSResearch Proprietary│Page22
Investments in Digital Enablement Are Low As of Today
14%
15%
11%
10%
10%
9%
43%
39%
41%
42%
33%
26%
30%
38%
36%
35%
23%
34%
13%
8%
11%
14%
35%
31%
Cloud-based/SaaSplatformsuponwhichtobuildshareabledigitalcapabilities
Analyticsandbigdatatoolsandapplications
Mobilitytoolsandapplications
Interactive/collaborativetools,applicationsandsocialmedia
Cognitivecomputingplatformsandmachinelearning
Roboticprocessautomation(RPA)toolsandapplications
Investingheavilytogetaheadofthecurve Abouttherightamountfortoday'sneeds
Someinvestment,butnotenough Minimal/noinvestment
Whathavebeenyourinvestmentssofarinembedding Digitalcomponents intoyourF&Aprocesses?
Source: “Finance In The Digital Age”, HfS Research 2016Sample: Enterprise Buyers = 160
©2016HfSResearch Proprietary│Page23
Buyers ‘Satisfied’ With Digital F&A Are Behaving Differently
■ They expect a much bigger impact in the next two years and are accordinglyinvesting more
■ They are significantly more focused on data-driven collaboration■ They are better coordinatedwith IT and don’t see alignment as a key challenge■ Their top-five definitive plans of action involve digital talent expansion■ They have far stronger views on changing talent requirements for future finance
professionals
8% 44% 34% 13%OverallSatisfactionWithDigitalImpactonF&A
Verysatisfied Satisfied Neutral Unsatisfied Veryunsatisfied
Source: “Finance In The Digital Age”, HfS Research 2016Sample: Enterprise Buyers = 160
©2016HfSResearch Proprietary│Page24
Agenda
• Introduction
• StudyFindings
• PanelDiscussion
• Wrap-up
Introducing The Panelists
Overview• Mohit joinedMondelēz inApril2015andisresponsibleforleadingthestrategyandexecutionoftheoverallFinance&TaxSharedServicesagendaincludingpartneringwiththeserviceprovidersandMondelez leadership.
• ThispositionisalsoresponsiblefortheenablingfinanceorganizationsupportingMondelēzBusinessServices(MBS).SinceheisbasedinNewDelhi,healsoplaystheroleofbeingtheClientExecutiverepresentingMBSfortheAPACregion.
• Veryrecently,inadditiontohisexistingresponsibilities,hewasgivenchargeoftheGlobalFinancetransformationprogram.
PreviousExperience• Mohit isaCharteredAccountantandhasabout28yearsofexperiencewhichincludesalmost5yearsasaPublicCompanyCFO.
Misc• Hehasawifeanda14yearolddaughter.Helovestospendtimewiththemandholidaywheneverhegetsachance.Hisotherinterestsincludelisteningtomusic,finediningandreading.
Mohit BhatiaVicePresident,Mondelēz BusinessServicesFinanceMondelēz International
Overview• Kimhasover25yearsofindustryexperienceinOperations,ServiceDelivery,andAdvisorywithaprimaryfocusonorganizationalandoperationaltransformation.
• Kimhashelpedcompaniesrealigntheirstructure,governanceandmanagementprocesses,establishsharedservicecenters,evaluateandtransitionservicestooutsourcingarrangements,planandtransitionprocessestoonshoreandoffshorecenters,re-engineeradministrativebusinessprocesses,andreducetheoverallcoststructureandspendongoodsandservices.
PreviousExperience• Kimhasextensiveexperienceacrossmanyindustriesindeliveringservicesaswellasassistingcompaniesimprovethedeliveryoftheirgeneralandadministrativesupportservices.HerfunctionalareasoffocusspanFinanceandAccounting,HumanResources,ProcurementandCustomerServiceandLogistics,SupplyPlanning,CustomerCare,InformationTechnology,Data&AnalyticsandEnablingTechnologies.
• ProvidedadvisorysupportforalargeCPGcompanyleadinga$1.25billionrestructuringinitiativewhichincludesdevelopmentandimplementationofGlobalBusinessServices,reorganizingtheCommercialOperations,optimizingtheSupplyChainorganizationandexpandingGlobalDataandAnalyticscapabilities.
• LedprojecttosupportaLatinAmericanMFGCompanytoevaluateanddevelopstrategicalternativesfortheirinformationtechnology,financeandaccountingandhumanresourcessharedservicesoperationsacrossallbusinessunitsglobally.
• ProvidedadvisorysupporttotheexecutivesatalargefinancialgroupastheyevaluatedtheircurrentdeliverymodelintheareasofFinanceandAccounting,CreditandGlobalBankingOperations.
Kim HuddleManagingDirector,SharedServicesandOutsourcingAdvisoryKPMG
Overview• ShantanuGhoshisresponsibleforGenpact's servicelinesthatcutacrossallindustryverticals- Finance&Accounting,SourcingandProcurement,CustomerserviceandHumanResources.
• Inaddition,heleadsGenpact's ConsultingandRiskadvisoryservices.HejoinedGenpact inearly2005andhasbuilttheFinanceandAccounting(F&A)businessforglobalclientsoutsideofGE,makingGenpact anindustryleaderinthedomainofF&Aservices.
• HefrequentlyrepresentsGenpactatindustryforumsandcontributestothoughtleadershipeffortsthroughwhitepapersandwebinars.
PreviousExperience• PriortojoiningGenpact,ShantanuwasCFOforGEIndiawithoversightresponsibilityforallGEbusinessesinthecountry.Inthiscapacity,heledtheimplementationofGE’sriskandcomplianceframeworksinthedifferentoperatingcompanies,wastheheadofGE’sCorporateAuditteaminIndiaandwasresponsibleforGE’sFinanceManagementTrainingProgramforIndia.
• Shantanu joinedGEastheCFOandpricingleaderforGE’sConsumerFinancebusinessinIndia.BeforeGE,ShantanuworkedwithUnileverIndia.
Education• Shantanu isaCharteredAccountantandhasaBachelor’sofCommerceDegreefromSt.Xavier’sCollege,India.
Shantanu GhoshSVP– CFOServices&ConsultingGenpact
Plans to Improve Digital Finance: Analytical Capability & Digital IT
Doyouplantoexecuteonthefollowingactionstoimproveyour'Digitalfinance'experienceoverthenext24months?
Source: “Re-architecting Finance" Study, HfS Research 2016Sample: Enterprise Buyers = 160
30%
29%
19%
24%
28%
22%
20%
11%
17%
17%
42%
40%
50%
44%
37%
38%
36%
44%
29%
20%
19%
20%
23%
22%
23%
24%
30%
27%
27%
27%
9%
11%
8%
9%
12%
16%
14%
18%
27%
35%
Investineffectiveanalyticstools&skills
InvestininternalITtalenttohelpmigratefromlegacyfinancesystems
Investcontinuouslyindevelopingcompetenciesformidandseniorlevelfinancestaff tounderstandanddriveDigitaltransformation
Retraininternaloperationstalenttoredesignfinanceprocesses
InvestinexternalITservicestohelpusmigrateaway fromlegacyfinancesystems
Hireinnewtalentthat"getsDigital"toredesignfinanceprocesses
Investin3rdpartyservicestoredesignfinanceoperationstoincorporateDigitaltechnologies
Creativeproblemsolving/DesignThinkingwithservicepartner
Identify/hireatransformationalleader/changeagent
Investinroboticprocessautomation
Havemadedefinitiveplans toexecute Considering, butnoactionsyet Undecided Noplansatall
Digital Outcomes: F&A Leaders Seek Rapid Cycle Time Optimization From DigitalTowhatdegreedoyouthinktheadoptionofdigitaltechnologies willimpactthefollowing inthenexttwoyears?
34%
28%
26%
26%
25%
21%
19%
53%
49%
65%
54%
62%
54%
53%
11%
20%
8%
17%
13%
21%
25%
Cycletimeoptimization
Agilityofthebusinesstodrivechangesinoperatingmodel
Costandproductivity
Userexperienceinfinanceprocesses
Leveragingfinancialandnon-financialdataforbetterdecisionmaking
Internalandexternalcustomerexperiencesoffinanceprocesses
Operationalriskmanagement
Hugeimpact Some impact Minimalimpact Noimpactatall
Source: “Finance In The Digital Age”, HfS Research 2016Sample: Enterprise Buyers = 160
Senior Management Disconnected From Operational Layer’s Issues
18%
18%
18%
18%
16%
13%
9%
3%
1%
6%
7%
10%
3%
4%
Overall
OrdertoCash
ProcuretoPay
Treasury,Budgeting
FinancialPlanning&Analysis
RecordtoReport
Audit
SVP+
VPandBelow
Howsatisfiedareyouwiththeimpactofdigitaltechnologies inyourF&Aprocessestoday?(VerySatisfied)
Source: “Finance In The Digital Age”, HfS Research 2016Sample: Enterprise Buyers = 160
Source: Future of Jobs Report, World Economic Forum, 2016
Top skills in 2020 shift to Critical Thinking, Creativity and Emotional Intelligence
Analytics, Creativity, Automation and End-to-end Process Capability dominate talent requirements in finance
45%
37%
35%
34%
32%
30%
25%
21%
43%
51%
51%
57%
51%
58%
54%
52%
11%
12%
13%
9%
17%
11%
21%
27%
Analyticalskillstoimproveoperations/productivity
Proactivelyidentifyingnewwaysofdoingthings
Understanding/usingautomation
Improvingend-to-endprocesses
Influencingseniorexecutives
Definingbusinessoutcomes
UnderstandingLeanprinciples
Applicationofdesignthinking
Increasingsignificantly Increasingsomewhat Nochange/decreasing
Towhatextentarethefollowing talentrequirements increasing inimportance togainmorevaluefromyourfinanceprofessionals?
Source: “Re-architecting Finance" Study, HfS Research 2016Sample: Enterprise Buyers = 160
MostBuyersviewServiceProvidersasExecutionShops…
28%
52%
17%
3%
Avitalpartner thatplugscriticalgapsintermsofskills,global scale,domain
knowledgeandtechnology
Agreatvehicletodrivedowncostsandimproveefficiencies
Anaccesstocheaplabor,butlittlevaluebeyond that
Generaldisappointment
Source:TheHfSWorkingSummit forServiceBuyers,December2015(Sample53enterpriseoutsourcingleads)
Buyers:Whatdoyoureallythinkaboutserviceproviders?
Less than a third of providers are chasing digital talent…
38%
32%
32%
31%
30%
29%
27%
25%
11%
33%
37%
45%
38%
36%
27%
24%
37%
56%
13%
29%
10%
23%
25%
24%
37%
22%
22%
16%
2%
13%
8%
9%
21%
11%
16%
11%
Investing in a robotic process automation platform
Taking short term revenue sacrifices with existing clients to invest in Digital capabilities that add …
Investing in analytics talent
Aggressively pursuing risk-sharing deals with clients to co-create Digital solutions we can industrialize
Investing in millennials with a Digital culture and mindset
Investing in Digitally-savvy transformational consultants
Investing in a cognitive computing platform
Actively targeting acquisitions to add new Digital capabilitles
Targeting re-bids with low-margin offers to steal away high-potential clients
Aggressively pursuing this strategy with hard investments
Opportunistically pursuing, with some investments
Not doing enough to get ahead of this
Doing very little and hoping the old model keeps us alive for the foreseeable future
Howaggressivelyisyour firmtakingthefollowingmeasurestogeneratemoreDigitally-alignedengagementswithyourclients?
Source: “Re-architecting Finance" Study, HfS Research 2016Sample: Enterprise Service Providers = 130
Budget Restrictions And Lack of Process Standardization Stand In The WayWhatarethetop3obstaclestoyourfirmachievingmoreF&Abusiness impactthroughdigital?Rankyour top3with1being thebiggestobstacle.
51%
48%
38%
33%
29%
22%
22%
20%
16%
13%
12%
Lack of budget
Lack of process standardization
Co-ordination between IT and business
Dealing with legacy systems
Middle management incentives
Failure to align digital to business outcomes
Senior manaement incentives
Senior management don't see benefit
Change management
Lack of service provider capability
Lack of IT department capability
Source: “Finance In The Digital Age”, HfS Research 2016Sample: Enterprise Buyers = 160
The“Master/Slave”ModelDominatesToday’sServicesRelationships
21%
69%
10%
Collaborative– wejointlystrategizeandexecute
Directive– wetellthemwhattodo
Dysfunctional– there’sagenerallackof
communicationandaccomplishment
Source:TheHfSWorkingSummit forServiceBuyers,December2015(Sample53enterpriseoutsourcingleads)
Buyers,pleasedescribeyourrelationshipwithyourprimaryserviceprovider…
Howbuyerswouldimprovethequalityandoutcomesfromtheircurrentservicerelationships…
28%
13%
9%
45%
4%
2%
Lettinggoandgivingupmorehigher-valueworktoourserviceprovider(s)
Threateningtoentertaincompetitivebid(s)toforceyourcurrentprovider(s)touptheirgame
Bringbackmoreworkin-houseandimproveitourselves
Rolloutanautomationstrategyintandemwithourprovider
Bringinaspecialistadvisortorecalibrateourrelationship(s)andgetusontherightcourseforAs-
a-Service
Notalot– wepaidfor“cheapandcheerful”andthat’swhatwe’restuckwith
Source:TheHfSWorkingSummit forServiceBuyers,December2015(Sample53enterpriseoutsourcingleads)
Agenda
• Introduction
• StudyFindings
• PanelDiscussion
• Wrap-up
Questions?