raise the bar transform your finance function · raise the bar transform your finance function ......
TRANSCRIPT
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• IndustrySpecializationwithafocuson FINANCIAL Services
• Benchmarking yourcompaniesEnterprise Functions to Best in ClassintheIndustry
• AligningthesefunctionstoyourCompaniesoverallStrategy
• Identifying Core functions and movingcommoditizedactivitiesintoShared Services Centers
• Control & Complianceenvironment• Modernization & Standardization of yourcompaniesERPsolution
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Asignificantamountofcostsin FinancialInstitutionsarelockedupin
OperationsandBack-Officefunctions.These costsnotonlyreduceReturnonCapitalbutalso
impactyourabilitytoinvestinmoreclient-centricandrevenuegeneratingactivities,whichareessentialtomaintainyourcompany’scompetitiveposition.
EnterprisefunctionssuchasFINANCE, Procurement, Marketing, Legal and HRformamajorcomponentoftheback-officecosts.ManagingthesecostsisakeyagendaitemforBoards,CEOsandCFO’stoday.
HCLhasdevelopedabreakthroughEnterprise Function as a Service (EFaaSTM) proposition to strategicallymanagethesecostsandimprove yourcompany’sprofitability.HCL’sEFaaSTM
focuses on:
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Key Challenges with the Enterprise FINANCE function With intense scrutiny on financial performance bymultiple stakeholders including Auditors, Regulatorsand Shareholders, FINANCE is the most critical ofEnterprisefunctions.However,thereisaninconsistencyintheefficiencyofthisfunctionacrosstheindustryHCLconductedasurveyofFINANCEprofessionalsinmajorbanking, insurance& financial institutions, to identifythechallengesthattheyfaced.Someofthefindingsofthestudyinclude:• InconsistentglobalandlocalFINANCE processes• ComplexFINANCEfunctionlandscape
THERE’SMORETOYOURENTERPRISE FINANCE FUNCTION
• LackofstandardizationofGeneralLedgers
• Multiple handoffs, reconciliations and manualintervention
• Lack of analytical capabilities that hindercustomerandbusinessinsights
• Significantresourcedeploymentinthefunction
• RiskandregulatorycompliancemanagementThese challenges result in longer book closurecycles,theriskofinaccuratedataandanincreasedcostoftheFINANCEFunction.
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HCL’s EFaaSTM aims to transform the FINANCE Functionbyimprovingitsprocessesandsimplifyingthe underlying application platforms on an end-to-end basis. Using HCL’s proprietary ToscanaTM workflow platform, HCL creates and runs Utility/Shared Service Center (SSC) for its clients,which standardize FINANCE operations, digitizeinteractions, and integrate multiple reportingplatforms. By adopting stringent process control,the SSC also improves governance and increasestheaccuracyoffinancialreportingacrossFINANCE processes such as: Cost Accounting, Internal /ExternalReporting,Book-Closingandmore
HCL’s EFaaSTM is specifically tailored to addresschallengesinFinancialReporting.InmostFINANCE organizations, group consolidation requires a lot
of manual reconciliations and normalization of theoutputfrommultipledatasourcesandledgers.Thisisanexpensiveandtimeconsumingprocess,whichsometimes also leads to inaccurate internal andexternal reporting, thus reducing the time formorevalueaddedanalysis.
ThroughEFaaSTM,HCLestablishesaglobalBusinessServicesoperatingmodel,withstandardprocessesandsystemsandastrategicgovernanceframeworkthat transforms end-to-end reporting servicesfor both internal and external stakeholders of theorganization.Thissubstantiallyimprovesthequalityand timeliness of the period end ‘close’ process,and enhances control and regulatory compliancecapabilities.
HCL’s EFaaS™ for the FINANCE function
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Key Value Add:• Reducecycletimeforbookclosure•Moreaccurateregulatorycompliancereporting• AbilityforFINANCEteamtoviewtheBalanceSheetofthefirmwithdataasoft-2days• AbilitytodrilldownBalanceSheetdatabasedonRegion,LegalVehicleSector
Sample Balance-sheet dashboard for Capital Markets Firm
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Key Value Add:• Improvedreconciliationprocessonaniterativebasisinco-ordinationwithbusiness• Improvedcomplianceconfidence• Decisionmakingcapabilitybasedon: -ExposureTypeandBalanceType e.g.:direct,SFT(securityFinancialTransaction),AFS(AvailableforSale) -ExposurebyObligor -ExposurebyFinancial/RiskSystem
HCL’s Global Centers are staffed with FINANCE professionals with deep industry knowledge and acommitmenttoclientrelationships.
Sample FINANCE Dashboard
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• HelpsmanagetheFINANCEFunctiononanend-to-end,andmovesitto“best-in-class”practices
• Facilitatestheadoptionofstandardizedchart-of-accounts
• Provides timely, accurate, and value addedreporting for internalandexternalstakeholders-eliminatesmanualreconciliation
• Consolidates multiple instances of applicationanddatawarehouseplatforms
• Enhances Governance & Control to improveRegulatoryCompliance
• Business “Outcome Based” constructs whereHCL puts its “skin in the game” to ensure thesuccessofthetransformation
HCL collaborates with global strategic partnerssuchastheGlobalBig4Consultingfirms,tohelpcreatetheseutilitiesorsharedservicescentersforclients.Thesepartnershipsensure:
• Benchmarking with world-class enterprisefunctions
• Cost/benefitsevaluation
• Performance and change managementframeworks
• Stakeholder assessments and leadershipalignment
• Effectivecommunicationsstrategy
HCL’s EFaaSTM for the FINANCE function offers the following benefits:
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BENEFITSBEYONDFINANCE FUNCTIONTRANSFORMATION GAINBUSINESSAGILITY,FLEXIBILITYANDSCALABILITY
WithHCL’sEFaaS™,financial institutionsnotonlygettoexperienceP&Limpactthroughenterprisecostreductionbut alsogainBusinessAgility, Flexibility andScalabilitybymoving fromafixedcost/Captiveoperationtoautility/orSharedServiceCentermodel.
• EnterpriseCostReduction
• TechnologyCostReduction
• ReducedTotalCostofOwnership
• OperationalAgilitytoBusinessNeeds
• IntegratedITandBusinessProcesses
• Business-alignedITSystem
• Unifiedgovernancetomanagetransformation
• IncreasedBusinessFlexibility
• Functionally-alignedSLA
• IntegratedChangeManagement
• IncreasedBusinessScalability
• RapidScaleupandScaledowntoaddressdemandvariability
P&L Impact Business Agility Business Flexibility Scalability in Operation
EFaaSTM Benefits
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DueDiligence andRisk
Transition Platform Transformation
Process Consolidation
Best in ClassProcess
Big 4 Consulting PartnerHCL
Due diligence and risk assessment includesdevelopingprocess maps,theco-governancemodel,andanintegratedIT-BPOroadmap
Transition includesrebadgingandorganizationchangemanagement
Process consolidation includesfunctionalalignment,adjustingtheresource and locationmix,andsharedservicesutilitycreation
Platform transformation includescreationofacommondatamodel,dataandplatformconsolidation,andnewplatformimplementationandanalytics
BestinClassProcessesincludesanend-statefunctionwhichisbenchmarkedtothebestintheindustry
5STEPSTOELEVATEDENTERPRISEFUNCTIONS
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RISINGABOVECONVENTIONALBUSINESSMODELSEFaaSTM: Key Differentiators
KEY
ATT
RIB
UTE
SVA
LUE
DEL
IVER
ED
• Integratingallprocesses and ITsystemsfora function
• End to End Infra,BPO&ApplicationServices
• FunctionallyAlignedSLAs
• SingleViewoftheFunction
• PrivateUtilityforLargeEnterprises
• PublicUtilityforSmall&MediumEnterprises
• HybridSharedservicewithPublic&PrivateUtility
• LowinitialInvestment
• Economiesofscale
• SpecialPurposeVehicles
• JVModel
• Joint Ownerships
• SeamlessTransformation
• RiskMitigation
• Co-Financing
• UpfrontinvestmentofGuaranteed Savingsby HCL
• Transaction based&Hybrid(Fixed+variable)pricing
• LowTotalCostofOwnership
• PredictableITSpend
Integrated Enterprise Function Services
Shared Services/ Utility Creation
Flexible Engagement Models
Innovative Commercial Construct
Innovative Commercial Construct
• Big4Consultingpartnerintheengagementtocreatesolidgovernancemodelandframeworks
• Best-in-ClassFINANCEPractices
• RobustGovernance&DeliveryModels
Best in Class Partnership
Best in Class Partnership
HCL’sEFaaSTM is a timelyresponsetotheneedsof
FinancialServicesfirmslookingtoreducethecostoftheirFINANCE
function.Byfocusingonre-engineeringtheFINANCEProcesses,standardizingtheunderlyingApplicationplatforms,andcreatingSharedServiceCenters(SSCs),HCL’sEFaaSTMsolution
providesanintegratedapproachto transformingtheFINANCE Functionsforitsclients