sap shared service framework
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© 2012 SAP AG. All rights reserved. 1
IT ERP – Center of Excellence
SAUDI ARABIAN AIRLINES AND SAPPARTNERING FOR SUCCES
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15 of the Top 23largest European Carriers run SAP *(by scheduled passengers carried)
7 out of the Top 10* largest airlines run SAP*(by scheduled passengers carried)
1.6 billion of the world’s passengersflown by SAP Customers
16 out of 29 Airlines with over 100 destinations run SAP
SAP Presence within the Airline Industry
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Strong SAP Presence Within the Major Alliances
One World Star Alliance Skyteam
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Disclaimer
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© 2013 SAP AG. All rights reserved. 5Customer
Agenda
Shared Services trends
SAP Solutions relevant for Shared Services
SAP Shared Service Framework
Demonstrations
Summary
© 2013 SAP AG. All rights reserved. 6Customer
Agenda
Shared Services trends
SAP Solutions relevant for Shared Services
SAP Shared Service Framework
Demonstrations
Summary
© 2013 SAP AG. All rights reserved. 7Customer
So, What is Shared Services?Definition
…the provision of a service by one part of an organization or group where that service had previously been found in more than one part of the organization or group…
…the consolidation of business operations that are used by multiple parts of the same organization…
© 2013 SAP AG. All rights reserved. 8Customer
Organizational drivers for Shared ServicesChallenges
Cost PressuresCustomer Satisfaction
Governance & Compliance
Globalization Service Delivery
Process StandardizationLabor Mix Acquisitions
Harmonization
Operational Agility
Depth of IntegrationGeographical Scope
Automation
Process Quality
Data Accuracy
Policies & Procedures
Risk of Errors
© 2013 SAP AG. All rights reserved. 9Customer
Technology’s role in Shared Services
Subsidiary A Subsidiary B Subsidiary ...
Shared Service Center
[Captive or BPO]
Administrative Functions
Business Applications
Technology and Automation Platform for Shared Service Center
Employee ● Manager ● Customer ● SupplierService Center Challenges • Service Center costs• Headcount• Service quality• Customer satisfaction• Geographical scope• Throughput• Service Level fulfillment
Business & IT Challenges• Operational cost• Process standardization• Scalability• Harmonization• Heterogeneity• Landscape complexity• Governance• Compliance• Acquisitions• Automation• User adoption• Transparency
SAP Shared Service Framework Features• Service orchestration• Process orchestration• Backend orchestration• Multi-channel• Multi-functional• Single workspace for
agents• Technology platform• Service Center
management
Benefits• Efficiency• Effectiveness• Integration with backends• Proactive decision-making• Lower costs• High quality service• Leverage economies of
scale• Improved stakeholder
satisfaction
SAP Shared Services Delivery Platform SAP Shared
Service Framework
Core Processes
© 2013 SAP AG. All rights reserved. 10Customer
Evolution of Shared Service
Maturity Stage
• Standalone IT platforms by function
• Transactional Standardization
• Regional Shared Services Consolidation
• Transactional Automation• Unit Cost Reduction Focus
• Function Centralization• Service Management
Implementation• Knowledge COE’s• BPO & Managed Services
Outsourcing• Unit Cost Reduction with
Service Value Focus
• Multi-functional• Service Orchestration using
Technology Platform• Service Management Centric• Global COE’s• Automation led transformation• Unit Cost Reduction with
Service Value and Business Value Focus
FunctionDriven
ServiceDriven
ValueDriven
Val
ue
© 2013 SAP AG. All rights reserved. 11Customer
Levers to transform Shared Services by maturity stage
Source: SAP Shared Services Studies
Stages of Maturity
Typical Profile
Net Cost Savings % Effectiveness Improvement %
Fragmented Varying Processes
Centralized Mostly Standard
Processes Varying Service
Levels
Automated Transactions
Consistent Service Levels
Efficiency Metrics
Highly Automated Highly Integrated System Consolidation Comprehensive
Metrics Governance
No Shared Service Emerging Established Leaders
1%
8%
15%
23%
5%
14%
32%
0.5%
© 2013 SAP AG. All rights reserved. 12Customer
Automation is key for Shared Service Organizations
19%
38%
30%
14%
0 - 25% 26 - 50% 51 - 75% 76 - 100%
Level of process automation in SSO
Greenfield location
Offshoring
Outsourcing
Quality program (six sigma, LEAN, other)
Existing facilities
SSC processes
Reduced number of ERPs / applications
Labor arbitrage
Staff skills and languages
End-to-end process design
Automation / Self-service
Consolidation / simplification
Standardization of processes
7%
13%
17%
22%
25%
27%
29%
30%
33%
39%
53%
55%
83%
Factors that have generated the most significant reduction in labor and outsourcing costs
Source: SSON & The Hackett Group, 2010 SSO survey in G&A
Move to a more favorable geographic location
Move to a lower cost labor market
Reduction in headcount due to lower service demand
Additional outsourcing
Servicing additional divisions/departments of the organization
Implementation of continuous improvement program
Additional automation
5%
12%
12%
15%
17%
24%
25%
31%
40%
46%
49%
66%
80%
84%
Key initiatives underway in SSO
Less offshoring
More offshoring
Service delivery platform owned by service centers
More outsourcing
Expansion to service other functions
More centers of expertise
1%
2%
22%
22%
22%
28%
25%
29%
35%
36%
42%
91%
Future outlook of SSO (five years from now)
© 2013 SAP AG. All rights reserved. 13Customer
Value of moving to Shared Services
Tangible Benefits* % impact
Reduced Maverick Indirect Spend
Staff efficiency
3-5%
5-10%
Tangible Benefits* % impact
Payroll HR Cost per Employee Improved recruitment costs Improved process cost by
Employee Self Service
10-30%20-30%10-15%
14%
Tangible Benefits* % impact
Increase office space efficiency
20-30%
Tangible Benefits* % impact
Reduced Integration cost Hardware & Operations Software Maintenance and
implementation
15-20%20-50%20-70%
Several Sources: e.g. ASUG benchmark data; Hackett Group
Tangible Benefits* % impact
Accounts Payable Accounts Receivable Budgeting & forecasting Cash management Collections management Credit management Customer billing Fixed asset management General Ledger and
Finance Closing Internal Auditing Regulatory and compliance Risk management Tax accounting and
reporting Treasury Reduced DSO
- Working Capital Cost Increased DPO
- Working Capital Cost
20-50%20-50%50-80%50-70%50-65%25-35%40-70%20-35% 45-75%
50-70%40-60%
40-60%5-10%
35-55%5-25%
5-25%
Function*Saving to peers
Finance 49-61%
Human Resources 16-49%
Procurement 30-49%
IT 8-39%
Finance HR Procurement
Real Estate
IT
Overall Cost Saving Potential
Analysts rate Shared Service Framework a top priority
© 2013 SAP AG. All rights reserved. 15Customer
Agenda
Shared Services trends
SAP Solutions relevant for Shared Services
SAP Shared Service Framework
Demonstrations
Summary
© 2013 SAP AG. All rights reserved. 16Customer
SAP Solutions in Finance relevant for Shared Services
SAP ERP FIN
Treasury and Risk Management
Bank Communication Management
Financial Closing Cockpit
Travel Receipts Management
SAP ERP FIN
Invoice Management Automation
E-Invoicing Inbound & Outbound
Collections Management
Dispute Resolution
Entity Close Management
Master Data Governance for Financials
SAP Shared Service
Framework
Core Processes
Additional Engines
Supplier/Customer Portal
Budgeting
Real Estate Management
Business Planning
Financial Consolidation
Fixed Assets
ReportingShared Service
FrameworkBusiness
Communication Mgmt
© 2013 SAP AG. All rights reserved. 17Customer
SAP Solutions in HR relevant for Shared Services
Add-on
Processes
SAP Shared Service
Framework
Core Processes
Additional Engines
SAP ERP HCM
Payroll Processing
E-Recruiting
Learning Solution
Employee File Mgmt by OpenText
Employee Self-Service
Manager Self-Service
Processes & Forms by Adobe
Business Communication Mgmt
Shared Service Framework
Reporting
© 2013 SAP AG. All rights reserved. 18Customer
Customer
Incident &Service Request
Management
Service LevelManagement
Service Asset and
Configuration
Management
Knowledge Management
ChangeManagement
Problem Management
SAP IT Service Management enables efficient and ITIL®-compliant IT support processes
Incident & Service Request Management
Problem Management
Change Management
Knowledge Management
Service Asset & Configuration Management
Service Level Management
SAP Solutions in IT relevant for Shared ServicesSAP IT Service Management (SAP ITSM)
© 2013 SAP AG. All rights reserved. 19Customer
Agenda
Shared Services trends
SAP Solutions relevant for Shared Services
SAP Shared Service Framework
Demonstrations
Summary
© 2013 SAP AG. All rights reserved. 20Customer
Core Processes
Build Step 1
Answer to the challenges - SAP Shared Service FrameworkYour service orchestration platform
SAP Shared Service
Framework
© 2013 SAP AG. All rights reserved. 21Customer
Process orchestration with Shared Service FrameworkSupport efficiency & scalability in operations through unsurpassed automation
SSF provides support for processes and sub-processes across
multiple systems, solutions and landscapes in a governed, secure and integrated
manner for additional SAP engines that can be
implemented as single or multiple instances
Benefits Cross-department visibility & transparency Ability to improve business practices Leverage existing IT investments for Shared
Services without disruption
Step 1 Step 2 Step 3
Step 4 Step 5 Step 6
Representation of functional sub processes within an organization showing alternative processing options
SAP Shared Service
Framework
Core Processe
s
Additional Engines
Add-on Processes
© 2013 SAP AG. All rights reserved. 22Customer
Backend orchestration with Shared Service FrameworkConvert heterogeneous landscape for unified service delivery
Multiple SAP and non-SAP back-end systems can be integrated into the shared services center using the SAP Shared Service Framework
Integrated Shared Services Agents’ workplace so that the agent has a single window of access
Agents use single sign-on to access different systems which otherwise would warrant multiple login with different credentials
SAP Shared Service
Framework
System ISystem II
System III
Benefits Simplified and connected IT landscape Single sign-on Governance and compliance Agility
© 2013 SAP AG. All rights reserved. 23Customer
Build Step 1
Interaction orchestration with Shared Service FrameworkMulti-channel approach to connect with customers, employees, suppliers, …
Employee ● Manager ● Customer ● Supplier
Tier 1 Generalists
Tier 2 Specialists
Tier 3 COE**
**COE = Center of Expertise
Interaction *
Tier 0 – 80%
Tier 1 - 10%
Tier 2– 8%
Tier 3 – 2%
*Reference: The Hackett Group
Service Request/
Ticket
© 2013 SAP AG. All rights reserved. 24Customer
Knowledge Base
Service delivery without orchestrationSample HR process - Adoption / birth of a child
HR
Electronic Policy
Paper Policy Doc
Text Editor
Ticketing System
Outlook
Excel
Power Point
Communication System
10 60
Check Knowledge Base & Papers Docs
Receive callCreate response & spell check/format
Update the backend system
Verify identity
Respond to the ticket & categorize
Evaluate self performance & generate management report
Create ticket
180 300 360 480
* SAP Study
500 600
Total Time
Spent -
10 minutes
Cumulative Time(seconds)
© 2013 SAP AG. All rights reserved. 25Customer
BCM
HR
SSF HR
Analytics
30 60
Receive callVerify identity
Create ticket
180 240 240 240 240
Total Time
Spent -
4 minutes
ApprovalCreate P&F request
Respond to the ticket
Automatic categorization & update of backend system
Automatic logging of processing parameters for management report
Cumulative Time(seconds) * SAP Study
Orchestrated Service Delivery with SAP SSFSample HR process - Adoption / birth of a child
© 2013 SAP AG. All rights reserved. 26Customer
Document System
Finance
Text Editor
Ticketing System
Outlook
Excel
Power Point
Communication System
10 60
Access the parked invoice document
Receive callCreate response & spell check/format
Update the backend system
Verify identity
Respond to the ticket & categorize
Evaluate self performance & generate management report
Create ticket
180 300 360 480
* SAP Study
500 600
Total Time
Spent -
10 minutes
Service delivery without orchestrationSample Finance process - Parked Invoice query from Vendor
Cumulative Time(seconds)
© 2013 SAP AG. All rights reserved. 27Customer
BCM
Finance
SSF FIN
Analytics
Orchestrated Service Delivery with SAP SSFSample Finance process - Parked Invoice query from Vendor
30 60
Receive callVerify identity
Create ticket
180 240 240 240
* SAP Study
240
Total Time
Spent -
4 minutes
Link business context
Access the parked invoice document
Respond to the ticket
Automatic categorization & update of backend system
Evaluate self performance & generate management report
Cumulative Time(seconds) * SAP Study
© 2013 SAP AG. All rights reserved. 28Customer
SAP Shared Service Framework – Screens
Single integrated agent interface
Confirmed caller details appear automatically
Complete history of caller interaction
Agent worklist
Knowledge base
© 2013 SAP AG. All rights reserved. 29Customer
SAP Shared Service Framework – Screens
Integrated Telephony
Integrated service ticketing environment
Ability to categorize the ticket for reporting and analysis
Pre-population of data with minimal data entry
Ability to provide context specific information for future
© 2013 SAP AG. All rights reserved. 30Customer
SAP Shared Service Framework – Screens
Link contextual information from the backend system with access to the backend screens in the same window
Possibility to upload/attach additional contextual information
© 2013 SAP AG. All rights reserved. 31Customer
SAP and a Global Partner Ecosystem offer RDS to meet specific business needs…
SoftwareQuickly address the most urgent business processes
ContentSAP best practices, templates and tools make solution adoption easier
EnablementGuides and educational material speed end user adoption
ServiceFixed scope and price provides maximum predictability and lowers risk
SAP RAPID DEPLOYMENT SOLUTIONS
Service
Software
Enablement
Content
RAPID DEPLOYMENT
SOLUTIONS
© 2013 SAP AG. All rights reserved. 32Customer
What‘s in SAP Shared Service Framework rapid-deployment solution for financials?Foundation and Scope Items including:
Service Request Creation via internal user call from CRM
Service Request Creation from ERP
Did you know that with SAP Shared Service Framework for financials, you can achieve:
A process efficiency increase of 50%? A cost reduction of 30% and a headcount reduction by 60% across key areas? Up to 50% reduction in bad debt risk and 40% faster access to sales and credit
information? A reduction of Day Sales Outstanding by 3 days and 10% reduction in bad debt
write-offs?
Solution value profile Preconfigured software Affordable with transparent and reasonable
pricing Rapid implementation in as little as 4
weeks Faster time to value Low total cost of implementation Clearly defined fixed baseline scope Fixed-price implementation services Foundation to grow your Finance vision
A Compelling Finance SolutionDelivered Quickly And Affordably
© 2013 SAP AG. All rights reserved. 33Customer
What‘s in SAP Shared Service Framework rapid-deployment solutionfor human capital management?Scope items Service Request – Create leave request
(Employee Self-Service) Service Request – Change working
times(HCM Processes & Forms)Solution value profile
Preconfigured software Affordable with transparent and
reasonable pricing Rapid implementation in as little as 5
weeks Fast time to value Low total cost of implementation Clearly defined fixed baseline scope Fixed-price implementation services Foundation to grow your HR vision
A Compelling HR SolutionDelivered Quickly And Affordable
Did you know that with SAP Shared Service Framework for human capital management,you can achieve
A time for HR to respond to data analyses requests reduction of 20-30%? A leave and vacation processing time reduction of 90%? An HR processing time reduction of 30%?
© 2013 SAP AG. All rights reserved. 34Customer
What‘s in SAP IT Service Desk OperationIT Service DeskIncident & Problem ManagementKnowledge Article ManagementOnline Monitoring & Reporting
SAP Rapid Deployment solutions value profilePreconfigured software – eliminates guessworkRapid implementation time in six to eight weeks *Faster time to value than comparative solutionsLow cost implementation, fixed scope, and fixed priceSimple buying process A clear path to your full IT service desk vision
Key Benefits:Provide IT service desk agents with an easy-to-use application interface for working in a wide array of
communication channelsCapture, document, track, investigate, and resolve all user requests – from creation to solution
implementationDocument solution-related content and provide this information – through search functionality – to both the IT
service desk agents and end usersEnable concise reporting and monitoring of IT service processes and performance* Actual implementation time depends on customer requirements and specific customer situation.
A Compelling IT Service Management SolutionDelivered Quickly And Affordable
© 2013 SAP AG. All rights reserved. 35Customer
Agenda
Shared Services trends
SAP Solutions relevant for Shared Services
SAP Shared Service Framework
Demonstrations
Summary
Demonstrations
© 2012 SAP AG. All rights reserved. 37
Agenda
Shared Services trends
SAP Solutions relevant for Shared Services
SAP Shared Service Framework
Demonstrations
Summary
© 2012 SAP AG. All rights reserved. 38
Shared Services performance indicators
KPI Improvement Customers > 10%
Productivity
Quality
Customer Service
47%
43%
35%
0 % 25%
10 %
0 % 25%
10 %
0% 25%
10%
Source: Hackett 2010
© 2012 SAP AG. All rights reserved. 39
Shared Services performance indicators
KPI Improvement Description
Standardization and automation leads to significant increases in productivity
Integrated end to end processes supports continuous quality improvements based on highly standardized processes
Measuring and managing Service Level agreements and customer satisfaction ensures excellence in customer service
Source: Hackett 2010
Productivity
Quality
Customer Service
47%
43%
35%
© 2012 SAP AG. All rights reserved. 40
Customer references for SAP Shared Service Framework
KPI Description Customer
DSM integrated Finance Shared Services in a heterogeneous system landscape and leveraged Invoice Management plus Financial Supply Chain Management for E2E processes
Coca Cola EMEA ensures low TCO in 27 countries with SAP Shared Service Framework as business platform for Shared Services in Finance and HR
SAP runs SAP and implements Shared Service Framework for Finance, HR, Procurement and Facility Management and increases customer service in multiple dimensions
Source: SAP reference data base
Productivity
Quality
Customer Service
© 2013 SAP AG. All rights reserved. 41Customer
Selected Shared Service Customers
© 2012 SAP AG. All rights reserved. 42
End to end process integration and automation helps achieve greater productivity, efficiency, transparency and high-quality service
Strong analytics enable the head of Shared Services to run the organization like a business
SAP Shared Service Framework enables profitable growth and supports global governance & compliance1
2
3
Automate and integrate for competitive advantageSAP’s unique capabilities
© 2012 SAP AG. All rights reserved. 4343
Questions ?
Run Betterfly…
Thank You!
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