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The SIG Webinar will begin shortly.
Once the webinar begins, the sound will come from your computer
speakers.
In the meantime, please take a look at the upcoming SIG networking events listed on the right side of your screen
and plan to join us if you are in one of
these cities this fall.
For more information and to register for all SIG events:
www.sig.org
NETWORKING EVENTS
GLOBAL SUMMITS
Oct 17-20 – Carlsbad, CA
SYMPOSIUMS
Sep 29 – New York, NY
Oct 4 – Toronto, CAN
Nov 9 – London, UK
REGIONAL ROUNDTABLES
Sep 27 – Cincinnati, OH
Nov 3 – Pittsburgh, PA
Networking and sharing thought leadership are part of SIG membership
Global Summits – attend two large events with 50+ breakouts, 5-8 keynotes and unlimited networking opportunities
Global events in North America, EMEA, APAC – attend SIGnature
events, GBS Roadmap series, Challenge awards
Weekly Webinars and Monthly Town Hall Teleconferences –access virtual thought leadership
Peer2Peer Resource – ask top-of-mind questions for instant responses
SIG Resource Center – access 4,000+ presentations, research, whitepapers, tools, templates and more
Career Network – post and find jobs or internships
Student Talent Outreach – meet students interested in a career in supply chain, sourcing or services
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Stay connected with other SIG members through various social media channels
bit.ly/SIGBlog
SIG Global Summits are semi-annual events with 350-400 decision-makers in attendance
Global Summits
• 3-days of networking in a non-commercial
environment
• 5 keynote sessions
• Global brands
• CPO Roundtables
• Over 50 breakout sessions
• Hundreds of industry thought leaders with a
buy-side ratio of 70:30
Carlsbad, CAOctober 17-20, 2016
67% of delegates are director level or above, of which 43% are
VP/C-level
Recent speakers include:
We are bringing SIG to you…all over the globe
GLOBAL EVENTS
GLOBAL SYMPOSIUMS
Oct 4 – Toronto, Canada
Nov 9 – London, England
GBS ROADMAP SERIES
Nov 15-16 – Copenhagen, Denmark
Mar 2 – Zurich, Switzerland
CHALLENGE THE FUTURE AWARDS PROGRAM
Feb 2-3 – London, England
For more information go to: www.siguniversity.org
Online learning environment with multiple eLearning options: Cohort, Self-Paced and Custom Solutions
Modules with lessons, formative assessments, and NO final exam
Certification good for 5 years
Early enrollment options that can save you up to 25%
Certified Sourcing Executive program coming in 2017
Updated governance, risk and compliance program coming in 2017
Certified Sourcing Professional starting January 9th, 2017!
September 20, 2016
A SIG WEBINAR
GBS Evolution & Accelerating
Benefits
© 2016 Neo Group Inc. Proprietary
TODAY’S PRESENTERS7
ATUL VASHISTHA
Founder & ChairmanNeo [email protected]
Atul is the Founder and Chairman of Neo Group, a
firm he founded in 1999. Neo is recognized as a
leading global services and sourcing data,
analytics, monitoring and advisory firm. Atul is also
the CEO of SourcingBoard.org, a buyers-only
curated peer network for leaders who source
technology and technology-enabled services.
Prior to founding Neo, Atul was Senior Vice
President of International at Cardinal Health
(NYSE: CAH) where he led the international
operations of the Fortune 25 Company.
Jack is a strategic sourcing manager at Boston
Scientific Corporation and leads a sourcing team
responsible for Outsourcing, IT, HR and MRO
categories within BSC’s GBS organization. Jack
has been in the outsourcing industry for over 20
year both on the buy side and as a service provider
with Compaq and HP. Boston Scientific’s Global
Business Services has been in operation for 5
years and received the Global Excellence in
Outsourcing Innovation award in 2015 for its GBS
service infrastructure implementation.
JACK SANDERSON
Strategic Sourcing ManagerBoston [email protected]
© 2016 Neo Group Inc. Proprietary
AGENDA8
Current Sourcing Landscape
Why GBS & Benefits of GBS
Boston Scientific Case Study
GBS Evolution Model
GBS Evolution Assessment
Appendix
9
© 2016 Neo Group Inc. Proprietary
• Globalization Strategy
• Sourcing
• Location strategy
• Health Checks
• Renegotiations
• Governance
Since 1999, we have been helping clients
accelerate benefits and minimize risks associated
with global in-house services and sourcing
We have a Singular focus on the global services
and sourcing supply chain
We achieve outcomes through deep IP, real-time
analytics, globally recognized experts, proven
methodologies and co-creation with our clients
NEO GROUP OVERVIEW
We deliver results through three distinct and linked solutions and services:
ADVISORY SERVICESGOVERNANCE
SOLUTIONS
• Design
• Run and support
• Ongoing Governance
Services, such as, Resource,
Contract and Performance
Management Services
SUPPLY WISDOM
• Country
• City
• Supplier
• Outsourced Service Desk
• Monitoring Subscription
Services
© 2016 Neo Group Inc. Proprietary
CURRENT SOURCING ENVIRONMENT10
Traditional Outsourcing (3rd Party
Supplier)
Traditional Insourcing (Captives and Shared
Services)
Shared Services Centers (SSCs)
Global In-House Centers (GICs)
Centers of Excellence (COEs)
Offshore Dedicated Centers (ODCs)
Deliverable Based Contracts
Resource Based Contracts
Operational and
Tactical Focus:
• Labor Arbitrage
• Global Talent
• Economies of Scale
• Process Maturity
© 2016 Neo Group Inc. Proprietary
CHALLENGES & MISSED OPPORTUNITIES11
• Fragmented Approach
• No single point of budgetary control
• Limited CXO commitment
• Lacks strategic focus
• Loss of value over time
© 2016 Neo Group Inc. Proprietary
THE SOLUTION - GBS12
Global Business Services (GBS) is an autonomous business organization
within an enterprise that is responsible for the delivery of end-to-end business
processes and technology, using integrated services from internal and 3rd party
sources, across locations and business units
© 2016 Neo Group Inc. Proprietary
KEY BENEFITS OF GBS ADOPTION13
Consolidation of demand
management
Key
Benefits
Consolidation of supply
management
Comprehensive reporting and
analytics Centralized repository for
IP and best practices
Unified approach to
sourcing governance
© 2016 Neo Group Inc. Proprietary
• Do you have a GBS organization?
– Yes
– No
POLL #114
© 2016 Neo Group Inc. Proprietary
THE BOSTON SCIENTIFIC GBS STORY15
Boston Scientific’s GBS organization leverages a mix of captive
centers and vendor outsourcing to optimally deliver services
GBS Service Infrastructure: Scalable Processes
Finance & Budget Management
Request Management
Performance Management
Service Management
GBS Vision & Strategy
Business Partner Relationship Management
Governance
Stra
tegi
c P
artn
ers
hip
wit
h
the
Bu
sin
ess
Op
eratio
nal Exce
llen
ce
End to End Process Delivery Excellence
Global Hubs(Outsourced)
Regional Delivery Centers(Captive)
Continuous ImprovementCommunications/
Branding
Talent Management
Knowledge Management
Solution & Transition Management
Demand Management
Vendor Management
Risk Management
Man
age
as
a B
usi
ne
ss
Technology Support
18
Global Business Services
GBS Performance Scorecard
Performance
against SLAs Oct’ 15 Nov’ 15 Dec’ 15 Jan’ 16 YTD (2016) Trend
Am
eri
cas
*C & C1 87%
95%
87%
98%
87%
98%
57%
91%
57%
91%
CoE1 100% 100% 100% 100% 100%
Acct. Services1 100% 100% 100% 100% 100%
PTP1 100% 100% 100% 100% 100%
Payroll1 80% 100% 100% 80% 80%
HCP1 100% 100% 100% 100% 100%
VM1 100% 100% 100% 100% 100%
Eu
rop
e
CS1 100%
90%
100%
89%
100%
91%
100%
87%
100%
87%Acct. Services1 88% 83% 77% 77% 77%
CTC1 88% 88% 88% 88% 88%
PTP1 83% 83% 100% 83% 83%
Asia
CS1 100%
100%
100%
100%
100%
100%
100%
100%
100%
100%Acct. Services1 100% 100% 100% 100% 100%
CTC1 100% 100% 100% 100% 100%
PTP1 100% 100% 100% 100% 100%
1 Trend for Individual service Line’s SLA performance is compared to last 6 months average
Trend compares current month to average performance of last 12 months
For SEV 1 trend compares current month to previous month
Green= 90% or greater
Yellow= 80% to 89.9%
Op Excellence
Red= Less than 80%
VOC Trending
Entity Apr-15 may-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16
S. Korea
- - J K K K K J J
Japan
- - -K
ANZ
- - - - K K
China- - - - K J J J
USA- - - - -
Austria L K K J J J J J J J
Belgium L L L J J K J J J J
Switzerland J J J J J J J J J J
Czech Rep L L L L L K K J J
Germany L L K J J J J J J J
Spain J K K K K K L J K K
France EHQ K K K J J K J J K K
France Sales K K K J J K J J K K
UK L L L L K J J J J J
Italy J K K - J J J J J J
Netherlands L L K J K J J J K J
Sweden L J J J J J J J J J
Poland L L L K K L K J K K
Portugal J K K K K K K K K K
South Africa K K K L - J K J K
They need to understand
more, will provide it till end of
Oct after Oct workshop.
“Vendor statement reconciliationprocess is impacting ageing balance and invoice turnaround time negatively.”
“A number of year-end incidents spilled over in Jan-2016”
Scope expansion can be driven by both end-to-end expansion as
well as by taking on new functional areas
Key Concept 1: End-to-End Expansion
Fun
ctio
nal
Alig
nm
ent
Process Alignment
Function 1 Function 2
Customer-to-Cash
Source-to-Pay
Account-to-Report
Function 3
Customer Master Data Mgmt.
Pricing, Contracts &
Rebates
Order Entry & Invoicing
Customer Inquiries
Credit & Collections
C2C Analytics and Continuous Improvement
Customer-to-Cash Process Example:
• Pricing loaded inconsistently across divisions increases the potential for invoice disputes and slower payments
• Customers deducting rebates while check issued/paid out
Key Concept 2: New Functional Expansion
• Areas such as Meetings Management, which has close ties to Source-to-Pay
• Master Data Management benefits from GBS process standardization and governance capabilities enables the whole corporation to have better analytics
Skill Set
Small ScaleMeasurable
Strong Governance
Process Adjacency
Enterprise Wide Focus
Capitalizing on existing GBS capabilities to drive value into new functional areas
EtE visibility unlocks value by creating agile processes that result in improved cash flow, lower cost process and better data which can
be reinvested in the business (eg. Sales)
Lessons Learned
1. BU governance needs and structures are different than outsourcing
vendor governance
2. Start Early – building effective governance is hard work
3. Conveying the value can be difficult until the organization has some
real “before and after” experiences
4. Establish clear accountability for both design and run
5. Don’t try to do it all at once – prioritize
6. Top-down support is critical to maintain momentum
7. Full-time resource/team required to maintain focus on build and run
© 2016 Neo Group Inc. Proprietary
• What other benefits are you deriving other than labor arbitrage
from sourcing and/or GBS? Pick 2 or rank
– Top-line growth
– Faster time to market
– Higher quality and/or productivity
– Access to key capabilities and/or talent
– Savings associated with efficiency and/or effectiveness
POLL #222
© 2016 Neo Group Inc. Proprietary
THE GBS EVOLUTION JOURNEY23
Beginning the Journey
I. BASIC Moving up the Curve
II. EVOLVINGComparable with Local Peers
III. MATUREBetter than most Local Peers
IV. ADVANCEDOn par with World-Class GBS Programs
V. LEADERSHIP
The journey to an efficient GBS governance structure can be
tracked through milestones for each stage
These milestones help an organization calibrate their GBS
evolution and learn what kind of transformation is required to
grow to the next level
5 Stages of GBS Evolution
© 2016 Neo Group Inc. Proprietary
STAGES OF EVOLUTION24
I. BasicBeginning to focus on GBS as a strategic option to manage offshore capabilities and sourcing arrangements
Sourcing processes are still fairly decentralized and there is no clear GBS leader identified
GBS is a new name for a bigger better and improved Centralized Shared Services (CSS) that is already in place
II. EvolvingAlready established a GBS strategy and have begun exploring ways to transform into a GBS led sourcing
organization
Business departments are still reluctant to commit resources to the changing structure
GBS typically includes at least a CSS and remote Global In-House Center (GICs) for a single function
III. MatureGBS now has roles and responsibilities defined to engage better at the functional levels and also owns the overall
sourcing strategy
Business leaders begin committing resources to the GBS strategy
GBS must at least include SSO, GIC and 3rd Party Dedicated Centers for a single function
IV. AdvancedGBS organization fully owns the sourcing strategy and develops it in alignment with the overall enterprise business
strategy
GBS has increased commitments from business groups towards initiatives with strong business plans
GBS now includes multi-function sourcing operations (ITO & BPO) and all operating models
V. LeadershipGBS is essentially functioning as an independent business unit headed by a GBS head who is part of the corporate
executive council
Operational groups like VMO, IT Infrastructure, etc. now reports to the GBS head
GBS is an entity with an integrated governance model that oversees full GBS scope - multi-function, multi-shore all
operating models
© 2016 Neo Group Inc. Proprietary
GBS EVOLUTION ASSESSMENT*25
50+ criteria that help calibrate GBS maturity and governance
Measured across 10 categories
Rated on a scale of 1 through 5, in ascending order of maturity
BSC”s GBS has elements of a mature model including global process
stewards, and End to End process focus and global infrastructure
Shared Service Delivery Maturity
A mature GBS model can slow a company’s SG&A growth by 1.92% and reduces the cash conversion cycle by 41.3 days Source: KPMG research 2016
© 2016 Neo Group Inc. Proprietary
THANK YOU27
NEO GROUP
GLOBAL HEADQUARTERS6200 Stoneridge Mall Road, 3rd Floor
Pleasanton, CA 94588, USA
ASIA-PACIFIC HEADQUARTERSNo 13, 1st Floor, C Block,
Embassy Heights, Magrath Road,
Bangalore - 560025
AMSTERDAM, NETHERLANDS
AUSTIN, TEXAS
BOGOTA, COLOMBIA
LONDON, UK
NEW YORK, USA
ATLANTA, USA
SAO PAOLO, BRAZIL
SILICON VALLEY, USA
SYDNEY, AUSTRALIA
ATUL VASHISTHAChairman and CEO, Neo Group
415.839.8050
www.neogroup.com
