Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
SlideShare a Scribd company logo

Shared services secret 7: Don't be defeated by ERP and ERP Complications

•
•
sharedserviceslink.com
sharedserviceslink.com

This session was presented at '15 Secrets to Shared Services Success" conference organised by sharedserviceslink.com. To find out more about forthcoming conferences check http://www.sharedserviceslink.com

1 of 18
Download to read offline
Secret No.7: Be Tenacious It Helps to Have the Skin of a Rhino – don’t Be Defeated by ERP and Re-Engineering Complications Péter Villányi Avis Group Business Support Centre 18th March 2009
Agenda • Avis - Background • Avis – Shared Service Centre History • Financial Systems Transformation • The Next Generation 2
Avis – Background Avis Europe is a leading car rental company in EMEA and Asia Avis Europe • 8 million rentals annually • 14 corporate countries with 1,800 locations • Licensee network across 94 countries with 1,200 locations • Combined annual revenue €2.1bn • Around 18% market share in Europe (includes Budget 3%) Budget Europe • Coverage across 63 countries in 800 locations • Combined revenue of €450m 3
Avis : Shared Service Centre History • Opened call centres in 2000 (Manchester, Barcelona) • Opened Business Support Centre, in Budapest, for finance and administrative services in January 2004: – Scope: Accounts Receivables and Payables, Financial Accounting, Customer Services, Databases, IT – Markets: UK, Germany, France, Spain, Italy, Netherlands, Austria, Switzerland, Belgium, Portugal – Headcount: currently 340 – ERP: none – access to country legacy systems and CODA 4
The Keys to Implementation Success – classic list • Top Management Support – 93% • Recruitment in the SSC – 70% • Change management mentality during project - 66% • Early & Effective communication to affected persons – 57% • Gaining Quick Wins – 40% Source – The Hackett Group, ‘Fourth Annual European Shared Services Organization Study 2005’ 5
Solutions to Reality – Customer Focus Organizational Buy-In Corporate strategy, with C- level sponsorship, or if in doubt mandate it! Absolute clarity from start, Scope included in signed off strategy Clear Customer Relationship Managing customers Model, include pricing and of the centre issue escalation! 6
Solutions to Reality – Operations / Process Focus Business systems or Process re-engineering required processes suitable to a specifically to address SSC approach (ERP) document exchange – ERP nice, but not essential Planning – program Comes back to business strategy linked, communicated & – this solves most things, but achievable across total still requires right talent business Many ways to do this across different cost perspectives – in the SSC or in country, or mix. Transition approach Need to be flexible! PMO & correct methodology vital Simple / clever processes essential – success then in KT Getting quality at the right and People, supported by mark effective customer relationship model 7
Solutions to Reality – People Issues SSC & location skills / Essential to have right start up experience experience for a SSC (not just a finance operation), same for location. Buy-in carefully! Manage attrition Reflects success in other areas: scope, reward, management and vision Change / Project Enabler to establish the SSC, but Management resource also the change in business. Buy-in carefully! Recruitment Success driven by project methodology – timing, roles, mechanics Reward & Motivation Survey + skills based, plus career management 8
Solutions to Reality – Financial Issue Issue: – Business Case in place / achievable (Hackett Survey: 15% of SSC survey respondents expect > 40% cost saving, 34% > 20%, 34% expect saving > 11%) Solution: • Ensuring the business case is do-able – customers, business, systems, volume driven • Managing hidden costs of implementation • Controlling the business case • Benefit realization program starts very early 9
Final Conclusions on SSC implementation SSC Opportunity assessment Business case Organization Buy-in Planning, CRM, Transition, Key People, Communication Recruitment, Reward, Quality Quality Management, Attrition, Benefit Realization 10
New system solutions • Flexibility vs. standardisation • One system cannot deliver best practice on all processes • Process by process approach – Financial and Supplier processes – Customer supporting processes 11
Financial Processes - Reality check • Achieved efficiencies when first set up • Finance system was outdated and unsupported • Needed to move systems to achieve more efficiencies • Requirement for up to date technology 12
Objectives of the project Aim to drive further efficiencies through the organisation with new finance system: • Reduced processing costs & errors • Meets local country requirements • Integration with local business systems • Standardisation • Easy to use • Improved efficiency, less cost 13
Evaluation Key criteria for new finance system: • Not ERP • Single instance • Capability to support local countries • Latest technology but proven 14
Evaluation Chose Financials from CODA • Latest ‘Neon’ release • Proven international capabilities • e-Procurement • Process control 15
The Roll-out • Live Oct 2007 – Germany, Portugal • Live Jan 2008 – UK, Holland, Belgium, Luxembourg • March/April 2008 – Austria, Switzerland, France • May 2008 – Italy, Spain, European HQ (~40 entities) – Inter-company processes • Strong functional support for a year 16
Roadmap for the Next Generation initiatives BSC Next BSC Next Generation Generation (current status) BSC Program • Benefit from labour • Is not just about the BSC • Transfer additional cost arbitrage • Improve process and service and volumes services E2E • Centre of Competence for • Combined effort by BSC continuously improving and countries service quality and • Provide a basis for increase service expanding BSC services efficiency • Build competence for • Efficient , harmonized and continuous service effectively managed E2E improvement processes • Increase Partner Satisfaction both in the countries and in the BSC 17
Overview of the Next Generation projects Receivable • Improve Avis capability to collect outstanding debt more quickly Project and reduce cash flow and interest on payments Process Improvement Database • Increase efficiency by an automated workflow Projects Project • Improve Customer Satisfaction by improving quality of data CODA Phase II • enhancements to the current CODA version FAC Project CODA Phase II • enhancements to the current CODA version P2P Project Roles & • End to end view of back office processes. Using RACI charts at Responsibility startegic, tactical and operational levels Enabling Initiatives Training and • Define the job requirements of all key process roles, identify Skilled Res. training needs and deliver training more effectively and efficiently Quality System • Using Lean Six Sigma tools to define process quality goals & KPIs • Set up quality KPIs Process • Standard framework for process mapping and procedure Management documentation 18

More Related Content

Shared services secret 7: Don't be defeated by ERP and ERP Complications

  • 1. Secret No.7: Be Tenacious It Helps to Have the Skin of a Rhino – don’t Be Defeated by ERP and Re-Engineering Complications Péter Villányi Avis Group Business Support Centre 18th March 2009
  • 2. Agenda • Avis - Background • Avis – Shared Service Centre History • Financial Systems Transformation • The Next Generation 2
  • 3. Avis – Background Avis Europe is a leading car rental company in EMEA and Asia Avis Europe • 8 million rentals annually • 14 corporate countries with 1,800 locations • Licensee network across 94 countries with 1,200 locations • Combined annual revenue €2.1bn • Around 18% market share in Europe (includes Budget 3%) Budget Europe • Coverage across 63 countries in 800 locations • Combined revenue of €450m 3
  • 4. Avis : Shared Service Centre History • Opened call centres in 2000 (Manchester, Barcelona) • Opened Business Support Centre, in Budapest, for finance and administrative services in January 2004: – Scope: Accounts Receivables and Payables, Financial Accounting, Customer Services, Databases, IT – Markets: UK, Germany, France, Spain, Italy, Netherlands, Austria, Switzerland, Belgium, Portugal – Headcount: currently 340 – ERP: none – access to country legacy systems and CODA 4
  • 5. The Keys to Implementation Success – classic list • Top Management Support – 93% • Recruitment in the SSC – 70% • Change management mentality during project - 66% • Early & Effective communication to affected persons – 57% • Gaining Quick Wins – 40% Source – The Hackett Group, ‘Fourth Annual European Shared Services Organization Study 2005’ 5
  • 6. Solutions to Reality – Customer Focus Organizational Buy-In Corporate strategy, with C- level sponsorship, or if in doubt mandate it! Absolute clarity from start, Scope included in signed off strategy Clear Customer Relationship Managing customers Model, include pricing and of the centre issue escalation! 6
  • 7. Solutions to Reality – Operations / Process Focus Business systems or Process re-engineering required processes suitable to a specifically to address SSC approach (ERP) document exchange – ERP nice, but not essential Planning – program Comes back to business strategy linked, communicated & – this solves most things, but achievable across total still requires right talent business Many ways to do this across different cost perspectives – in the SSC or in country, or mix. Transition approach Need to be flexible! PMO & correct methodology vital Simple / clever processes essential – success then in KT Getting quality at the right and People, supported by mark effective customer relationship model 7
  • 8. Solutions to Reality – People Issues SSC & location skills / Essential to have right start up experience experience for a SSC (not just a finance operation), same for location. Buy-in carefully! Manage attrition Reflects success in other areas: scope, reward, management and vision Change / Project Enabler to establish the SSC, but Management resource also the change in business. Buy-in carefully! Recruitment Success driven by project methodology – timing, roles, mechanics Reward & Motivation Survey + skills based, plus career management 8
  • 9. Solutions to Reality – Financial Issue Issue: – Business Case in place / achievable (Hackett Survey: 15% of SSC survey respondents expect > 40% cost saving, 34% > 20%, 34% expect saving > 11%) Solution: • Ensuring the business case is do-able – customers, business, systems, volume driven • Managing hidden costs of implementation • Controlling the business case • Benefit realization program starts very early 9
  • 10. Final Conclusions on SSC implementation SSC Opportunity assessment Business case Organization Buy-in Planning, CRM, Transition, Key People, Communication Recruitment, Reward, Quality Quality Management, Attrition, Benefit Realization 10
  • 11. New system solutions • Flexibility vs. standardisation • One system cannot deliver best practice on all processes • Process by process approach – Financial and Supplier processes – Customer supporting processes 11
  • 12. Financial Processes - Reality check • Achieved efficiencies when first set up • Finance system was outdated and unsupported • Needed to move systems to achieve more efficiencies • Requirement for up to date technology 12
  • 13. Objectives of the project Aim to drive further efficiencies through the organisation with new finance system: • Reduced processing costs & errors • Meets local country requirements • Integration with local business systems • Standardisation • Easy to use • Improved efficiency, less cost 13
  • 14. Evaluation Key criteria for new finance system: • Not ERP • Single instance • Capability to support local countries • Latest technology but proven 14
  • 15. Evaluation Chose Financials from CODA • Latest ‘Neon’ release • Proven international capabilities • e-Procurement • Process control 15
  • 16. The Roll-out • Live Oct 2007 – Germany, Portugal • Live Jan 2008 – UK, Holland, Belgium, Luxembourg • March/April 2008 – Austria, Switzerland, France • May 2008 – Italy, Spain, European HQ (~40 entities) – Inter-company processes • Strong functional support for a year 16
  • 17. Roadmap for the Next Generation initiatives BSC Next BSC Next Generation Generation (current status) BSC Program • Benefit from labour • Is not just about the BSC • Transfer additional cost arbitrage • Improve process and service and volumes services E2E • Centre of Competence for • Combined effort by BSC continuously improving and countries service quality and • Provide a basis for increase service expanding BSC services efficiency • Build competence for • Efficient , harmonized and continuous service effectively managed E2E improvement processes • Increase Partner Satisfaction both in the countries and in the BSC 17
  • 18. Overview of the Next Generation projects Receivable • Improve Avis capability to collect outstanding debt more quickly Project and reduce cash flow and interest on payments Process Improvement Database • Increase efficiency by an automated workflow Projects Project • Improve Customer Satisfaction by improving quality of data CODA Phase II • enhancements to the current CODA version FAC Project CODA Phase II • enhancements to the current CODA version P2P Project Roles & • End to end view of back office processes. Using RACI charts at Responsibility startegic, tactical and operational levels Enabling Initiatives Training and • Define the job requirements of all key process roles, identify Skilled Res. training needs and deliver training more effectively and efficiently Quality System • Using Lean Six Sigma tools to define process quality goals & KPIs • Set up quality KPIs Process • Standard framework for process mapping and procedure Management documentation 18