The latest trends and technologies driving GBS maturity

50 %
50 %
Information about The latest trends and technologies driving GBS maturity

Published on June 2, 2016

Author: kpmg

Source: slideshare.net

1. Thelatesttrendsand technologiesdriving GBSmaturity 1Q 2016 Pulse Survey Results KPMG Global Insights Pulse

2. 2©2016 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à- vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. KPMG’ssharedservicesandoutsourcingadvisorypractice KPMG has the ability to support member firms’ clients transform enterprise services and help improve value, increase agility and create sustainable business performance. Who we are What we do How we do it The Shared Services and Outsourcing Advisory practice brings a specialized team of more than 1,000 professionals within KPMG’s global network of independent member firms operating in 155 countries. We help clients design, build, and manage information technology (IT) and business processes across the enterprise. We help clients align their business strategy, organization and execution to enable them to manage the entire IT and business process life cycle improving business performance, and laying the groundwork for genuine business transformation. We apply focused research, automating tools, proprietary data, clear business acumen, and a forward-thinking mind-set to provide timely, objective, actionable advice and practical approaches for clients.

3. 3©2016 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à- vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. KPMGGlobalInsightsPulse The surveys are a quarterly review of global business services (GBS) market trends and individual observations from the ‘front lines’. Input sources: Topics evaluated: Primary functional focus: — 1000+ KPMG sourcing advisors — 12 leading global business, IT, and cloud service providers — KPMG market research — Drivers for GBS usage — Demand and buying patterns — Deal attributes — Thematic topics for each Pulse Survey — The role of the GBS executive — GBS governance — Update on process and cognitive automation — Call center/customer care — Finance and accounting — Human resources — Information technology — Procurement — Real estate and facilities management — Vertical industry BPO — Emerging BPO/KPO functions Focus on performance, trends, and futures — Launched in 2004 by EquaTerra* — Part of a growing family of KPMG Pulse market research studies * KPMG LLP (US) KPMG Holdings Limited (UK) and KPMG International acquired the business and subsidiaries of advisory firm EquaTerra, Inc. in February 2011.

4. TheroleoftheGBSexecutive

5. 5©2016 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à- vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. TheroleoftheGBSexecutive David Brown, KPMG’s Global Lead, Shared Services and Outsourcing Advisory KPMG in the US “ “ — Creating strong GBS leadership at the executive level as a peer to other CXO roles is critical to enabling the drive to higher levels of GBS maturity and delivering meaningful and measureable business value and outcomes beyond cost savings. — Most GBS groups are still organized and managed by function or geography, though this will change over the next three years, moving towards end-to-end process ownership and global management models. — Functional or geographic GBS leadership rarely (in <10% of organizations) rolls-up into a single global GBS executive, though awareness of the need for this role and planning for its implementation is growing. — GBS executive leadership, in whatever form, faces many challenges to improving GBS capabilities, especially in enabling end-to-end process ownership and gaining executive level support for GBS operations and improvement efforts. Bringing GBS services into one organization that operates under one accountable executive leader is crucial in maximizing efficiency and effectiveness and driving greater business value.

6. 6©2016 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à- vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Advisors:GBSorganizationandmanagementmodels— todayandinthreeyears Today In three years 20% 19% 25% 16% 56% 65% 60% 56% 24% 16% 15% 27% 0% 20% 40% 60% 80% 100% Organized and managed globally By end-to-end process By geographic region By function Uncommon Common Very common 71% 77% 22% 15% 26% 20% 63% 58% 3% 2% 15% 27% 0% 20% 40% 60% 80% 100% Organized and managed globally By end-to-end process By geographic region By function Source: KPMG Global Insights Pulse 1Q16

7. 7©2016 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à- vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Advisors:GBSorganizationandmanagementmodels— todayandinthreeyears 12% 21% 40% 32% 28% 28% 11% 7% 6% 9% 4% 4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3Q14 1Q16 No plans, not on the radar Awareness but no action Developing plans to install role/under discussion Plans being executed, 3+ year timeline Plans being executed, 1-3 year timeline Role already established Source: KPMG Global Insights Pulse 1Q16

8. 8©2016 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à- vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Advisors:biggestchallengesfacingGBSexecutives 43% 49% 43% 35% 61% 52% 41% 43% 44% 45% 52% 42% Expanding & integrating GBS operations across processes & functions Enabling an integrated IT model, systems & applications to support GBS Performing governance globally across all GBS processes Executive level support to adopt and/or expand GBS Enabling end-to-end process ownership Evolve GBS focus from cost savings to strategic business value 1Q16 3Q14Source: KPMG Global Insights Pulse 1Q16

9. Governancebest practicesforGBS

10. 10©2016 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à- vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. GovernancebestpracticesforGBS “ Liz Evans, Managing Director, Shared Services and Outsourcing Advisory KPMG in the US “ “ In an integrated environment, the need to have clearly defined roles and responsibilities and hand-offs in your governance environment are extremely significant for success. — Good governance coupled with strong change and program management is critical to the success of an organization’s global business services efforts, especially as focus shifts to delivering meaningful and measureable business outcomes above and beyond cost savings. — Governance is a perennial challenge to the success of shared services and outsourcing efforts, especially with integrated delivery models comprising global business services. — The bar of what constitutes “best in class” GBS governance is constantly being raised so even as organizations’ skills improve they are still often not able to keep up with the demands placed upon them by more advanced and aggressive GBS efforts. — The biggest challenge to GBS governance efforts is a fundamental lack of governance maturity and capabilities at a level required to support existing GBS efforts. — The top governance success factor to ensure expected value is delivered from GBS efforts is measuring business outcomes against original business case expected value. — Clearly defined roles and responsibilities for the new governance & operating organization and end-to-end global process ownership are the top two critical considerations for GBS governance.

11. 11©2016 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à- vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. BiggestGBSgovernancechallenges 19% 32% 39% 41% 41% 50% 61% 0% 50% 100% Inability to execute operationally against GBS operating model Lack of technical automation/integration in support of GBS Lack of enterprise-wide support for a new GBS operating model Stakeholder misalignment regarding business scope and expectations Lack of strategic alignment between business strategy and GBS strategy Lack of clear ownership for GBS strategy and execution Lack of governance maturity and capability to manage GBS scale and scope Advisors Serviceproviders 15% 10% 50% 55% 55% 35% 70% 0% 50% 100% Source: KPMG Global Insights Pulse 1Q16

12. 12©2016 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à- vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. TopenablingtechnologiesforGBSgovernance 5% 14% 18% 21% 23% 30% 35% 39% 42% 51% 0% 50% 100% Asset management tools Mobility applications Vendor management tools/applications Risk compliance and management tools Contract management/procurement tools Integrated custom developed tools Sophisticated data analytics and reporting tools/dashboards Microsoft products Performance monitoring tools Workflow tools for alerts, approvals, etc. Advisors Serviceproviders 5% 26% 21% 37% 26% 37% 47% 21% 47% 32% 0% 50% 100%Source: KPMG Global Insights Pulse 1Q16

13. 13©2016 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à- vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. TopgovernancesuccessfactorstoensureGBSvalue Source: KPMG Global Insights Pulse 1Q16 18% 29% 35% 36% 48% 51% 71% 0% 50% 100% Effective customer surveying and implementation of appropriate action plans Ability to effectively extract and analyze GBS information in support of the business Monitoring achievement of cost reduction and efficiency objectives Focus on continuous improvement for key business/technical processes Clearly defined process integration between the GBS org. & bus. units/suppliers Effective monitoring of key performance indicators and service levels Measuring business outcomes against original business case expected value Advisors Serviceproviders 12% 41% 29% 29% 53% 35% 94% 0% 50% 100%

14. 14©2016 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à- vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. TopconsiderationsforsuccessfulGBSgovernance organization 25% 27% 33% 45% 53% 54% 57% 0% 50% 100% GBS governance organization alignment with regional operating structure Effective structure and focus of joint governance boards Well-articulated scope and focus of the governance organization Talent, experience, and skills of GBS governance organization Well-defined integration between the governance org. & the retained org. End-to-end global business process ownership Clearly defined roles & responsibilities for the new governance & operating org. Advisors Serviceproviders 17% 11% 50% 33% 67% 44% 78% 0% 50% 100%Source: KPMG Global Insights Pulse 1Q16

15. 15©2016 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à- vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. ToprelationshipmanagementcomponentsforGBS governance 18% 23% 30% 36% 38% 38% 43% 48% 0% 50% 100% Clearly identified personnel match- ups and working relationships Well-defined and communicated chargeback and cost allocation methods Internal and external service level agreements Clearly defined decision rights amongst key stakeholders Dedicated relationship managers between the bus. units & the governance org. Well-defined service catalog shared with the business Appropriate stakeholder representation on joint management boards Service agreements in place between the GBS org. & the bus. units Advisors Serviceproviders 22% 28% 33% 28% 78% 6% 50% 44% 0% 50% 100%Source: KPMG Global Insights Pulse 1Q16

16. Processandcognitive automation

17. 17©2016 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à- vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Theevolutionofprocessautomation Basic process automation Enhanced process automation Cognitive automation Rules engine Screen scraping Work flow Machine learning Large-scale processing Adaptive alteration Artificial intelligence Big data analytics Natural language processing Processing of unstructured data and base knowledge RULES LEARNING REASONING 01 02 03 — Artificial intelligence — Natural language recognition and processing — Self-optimization/self-learning — Digestion of super data sets — Predictive analytics/hypothesis generation — Evidence-based learning — Built-in knowledge repository — Learning capabilities — Ability to work with unstructured data — Pattern recognition — Reading source data manuals — Macro-based applets — Screen scraping data collection — Workflow — Visio®-type building blocks — Process mapping — Business process management

18. 18©2016 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à- vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Levelsofclientautomationactivitybymaturitylevel Advisors Service Providers 72% 41% 19% 27% 40% 43% 3% 19% 19% 1% 4% 26% 0% 20% 40% 60% 80% 100% Cognitive automation Enhanced process automation Basic process automation 15% 40% 29% 14% 30% 33% 24% 15% 43% 67% 0% 20% 40% 60% 80% 100% Cognitive automation Enhanced process automation Basic process automation No activity Self-education and planning Experimenting and running pilots Live implementations Source: KPMG Global Insights Pulse 1Q16

19. 19©2016 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à- vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Biggestchallengestoprocessautomation 38% 48% 10% 19% 24% 33% 0% 50% 100% Disparate underlying IT systems; lack of integration Inconsistent and non-standard bussiness processes make it impractical Immaturity of RPA technologies Client inability to build compelling and realistic business case Lack of client appetite, budget and skills to make required process standardization Determining where to start and deploy RPA technologies Advisors Serviceproviders 25% 29% 32% 39% 40% 41% 0% 50% 100% Source: KPMG Global Insights Pulse 1Q16

20. 20©2016 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à- vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Potentialjoblossesbydeliverymodel-nextthreeyears Advisors Service providers 26% 16% 17% 5% 42% 32% 44% 42% 21% 21% 22% 26% 5% 26% 17% 26% 5% 5% 0% 0% 0% 20% 40% 60% 80% 100% Retained organization Shared services ITO operations BPO operations 0-10% 11-20% 20-30% 30-50% 50%+ 52% 23% 26% 23% 32% 40% 37% 36% 11% 26% 25% 27% 4% 9% 11% 11% 1% 2% 2% 2% 0% 20% 40% 60% 80% 100% Retained organization Shared services ITO operations BPO operations Source: KPMG Global Insights Pulse 1Q16

21. 21©2016 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à- vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Potentialjoblossesbydeliverymodel-nextfiveyears Advisors Service providers 20% 5% 6% 10% 20% 17% 15% 45% 20% 28% 40% 20% 35% 39% 20% 5% 20% 11% 25% 0% 20% 40% 60% 80% 100% Retained organization Shared services ITO operations BPO operations 0-10% 11-20% 20-30% 30-50% 50%+ 25% 17% 16% 13% 42% 26% 28% 28% 25% 32% 31% 33% 7% 20% 15% 19% 2% 5% 9% 7% 0% 20% 40% 60% 80% 100% Retained organization Shared services ITO operations BPO operations Source: KPMG Global Insights Pulse 1Q16

22. 22©2016 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à- vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Likelihoodprocessmaturationwilldriveuseofless outsourcing 16% 16% 12% 10% 25% 26% 26% 25% 44% 47% 40% 50% 9% 11% 15% 5% 6% 7% 10% 0% 20% 40% 60% 80% 100% ITO - Advisors ITO - SPs BPO - Advisors BPO - SPs 1 - Not at all likely 2 3 - Moderately likely 4 5 - Highly likely Source: KPMG Global Insights Pulse 1Q16

23. 23©2016 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à- vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. LeveragingtrendsandtechnologiestodriveGBSmaturity There are a variety of levers organizations have at their disposal to drive GBS maturity and deliver meaningful business benefits above and beyond cost savings Move towards global, CXO level leadership on GBS Drive end-to-end process ownership tied to global GBS governance efforts and leverage key technologies such as D&A and automation Prioritize investments related to GBS governance (people, processes, technologies, authority) to get ahead of the curve rather than playing catch up Clearly define GBS roles and responsibilities against retained organization and business units and ensure GBS governance value is measured in terms of business outcomes Drive process automation maturity by defining a roadmap and prioritizing investments in efforts and technologies that bring the greatest business value; you cannot “skunk works” yourself to greatness Recognize and account for the potential business value different types of automation can bring and the associated costs and complexities to implement Recognize that white collar job loss due to increased automation is inevitable and take proactive steps to address ramifications

24. Aboutglobalinsights pulsesurvey

25. 25©2016 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à- vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. KPMG’ssharedservicesandoutsourcingadvisorypractice KPMG has the ability to support member firms’ clients transform enterprise services and help improve value, increase agility and create sustainable business performance. Who we are What we do How we do it The Shared Services and Outsourcing Advisory practice brings a specialized team of more than 1,000 professionals within KPMG’s global network of independent member firms operating in 155 countries. We help clients design, build, and manage information technology (IT) and business processes across the enterprise. We help clients align their business strategy, organization and execution to enable them to manage the entire IT and business process life cycle improving business performance, and laying the groundwork for genuine business transformation. We apply focused research, automating tools, proprietary data, clear business acumen, and a forward-thinking mind-set to provide timely, objective, actionable advice and practical approaches for clients.

26. 26©2016 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à- vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. KPMGGlobalInsightsPulse The surveys are a quarterly review of global business services (GBS) market trends and individual observations from the ‘front lines’. Input sources: Topics evaluated: Primary functional focus: — 1000+ KPMG sourcing advisors — 12 leading global business, IT, and cloud service providers — KPMG market research — Drivers for GBS usage — Demand and buying patterns — Deal attributes — Thematic topics for each Pulse Survey — The role of the GBS executive — GBS governance — Update on process and cognitive automation — Call center/customer care — Finance and accounting — Human resources — Information technology — Procurement — Real estate and facilities management — Vertical industry BPO — Emerging BPO/KPO functions Focus on performance, trends, and futures — Launched in 2004 by EquaTerra* — Part of a growing family of KPMG Pulse market research studies * KPMG LLP (US) KPMG Holdings Limited (UK) and KPMG International acquired the business and subsidiaries of advisory firm EquaTerra, Inc. in February 2011.

27. David J. Brown Global Lead, Shared Services and Outsourcing Advisory KPMG LLP (US) E: djbrown@kpmg.com Thankyou For more information visit: http://bit.ly/1RK8emU

28. kpmg.com/socialmedia kpmg.com/app © 2016 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Add a comment

Related presentations

Related pages

KPMG Global Insights Pulse - The latest trends and ...

KPMG Global Insights Pulse - The latest trends and technologies driving Global Business Services (GBS) maturity
Read more

global business services (GBS) - KPMG Institutes

... and technologies driving global business services (GBS) ... latest trends and technologies driving GBS ... of Driving Global Business Services Maturity.
Read more

A global point of view | KPMG | GLOBAL

... A global point of view on the issues impacting ... about the latest trends in ... pulse survey on the trends and technologies driving GBS maturity.
Read more

Global Business Services - KPMG ADVISORY

The need for GBS maturity. Trends and technologies driving global business services ... 10 Leading Practices for GBS. Leverage global business services ...
Read more

Top global market trends and predictions for 2016 and beyond

... Top global market trends and predictions ... implement innovative technology are all efforts that GBS ... market trends. Source: KPMG, GBS Maturity ...
Read more

David J. Brown | LinkedIn

View David J. Brown’s professional profile on LinkedIn. ... The trends & technology driving GBS maturity June 3, ... David J. Brown; Top Trend ...
Read more

IBM Operations and Supply Chain Optimization Thought ...

... How digital technologies are ... This Global Location Trends report outlines the latest trends ... Scoring high on the supply chain maturity ...
Read more

The Dollars and Sense of Driving Global Business Services ...

Advisory › An online publication of our latest thinking › The Dollars and Sense of Driving Global Business Services Maturity
Read more

Webcast: How to Fast Track Your Global Business Services ...

It is often difficult to move from scaled GBS operations to ... Learn how other enterprises have been able to move along the maturity curve and reap the ...
Read more