Tech Mahindra – BPaaS – Invoice Management Solutions

Report
Tech Mahindra – BPaaS – Invoice Management
Solutions
Copyright © 2013 Tech Mahindra. All rights reserved.
1
Tech Mahindra’s AP BPO
Value Proposition
‘TechM’- A trusted partner with proven execution
Value Proposition
Efficiency
1
Highest level of efficiency
through Transformation led
approach
Responsibility
2
Assistance and investments
in Change Management
Freedom
3
Flexibility in Program
execution
Copyright © 2013 Tech Mahindra. All rights reserved.
• Tech Mahindra BPaaS Platform powered by ARIBA provides the
highest level of efficiencies
• Right most Shift Strategy to migrate Paper, EDI invoices, Upload,
XML etc to ‘Self billing’ : 45% to 80% over time
• Process Transparency & improved compliance at each step in AP
cycle
• Guaranteed Productivity enhancement and Automation
translated into financial gains
• Active role in Change management from Demand creation
perspective and driving adoption of solution at Client’s end
• Lead role in Supplier enablement; facilitated by client
• Assistance in driving Change management around adoption of AP
Global Processes and best of breed solution
• Adjustments to Scope, Sequencing and ramp up profile based on
execution realities
• Highest level of executive attention to the program
• Solution flexibility to cater to Paper, EDI and ‘Self Billing’ invoices
• Complete transparency on financial / business impact
2
Tech Mahindra’s AP BPO
Value Proposition
‘TechM’- A trusted partner with proven execution
Value Proposition
4
Commercial Value
Proposition
to deliver first quadrant cost
per invoice
Quality
5
Scalable Program construct
Mutuality
6
De-risked Program execution
Copyright © 2013 Tech Mahindra. All rights reserved.
• Zero upfront implementation fee and transition fee to enable
fastest pay back period and Year 1 benefits
• Committed Supplier enablement ratios in the financial model
• Implementation approach will maximize benefit by moving
largest suppliers at the front end
• Investments in integration of ERP with TechM BPaaS solution
• Scalable construct to include currently “out of scope” countries
to the Global AP Shared Services
• TechM BPaaS platform can potentially extend upstream/
downstream processes
• Tech Mahindra has deep set relationships with its clients at all
levels and understands the unique culture, values and
imperatives of each client
• We understand the IT – BPO integrated environment and would
be able to partner with clients to ensure success
• Strong Risk management framework
3
Alignment with CFO’s Objectives & Business
Context
Clients Objectives for Global AP
Program
TechM Value Proposition addressing the
objective
Creation of a Global Financial Shared Service
• Global Delivery Locations brings onshore, near-shore
and offshore mix for right sourcing
Standardization with zero tolerance for
deviations
• Global roll out of MARS ‘Golden Process’ using TechM
BPaaS platform
Solution Deployment Independent of ERP
systems and IT landscape
• TechM BPaaS platform led transformation tightly
integrated with ERPs systems
Move from manual invoices to e-Invoicing
• TechM solution delivers 80% of ‘Self billing’ over 5
year period
Reduce current costs of operations / Invoice
Processing
• Significant reduction in cost per invoice with TechM
BPaaS AP solution
Centralized reporting, measurable SLAs and KPIs
• Automated centralized reporting around SLAs/ KPIs,
spend visibility (for better working capital
management) and ad-hoc reports
Increased first time match rate for 2 or 3 way
matching
• Proposed construct of ‘Self billing’ leveraging supplier
network delivers 98% of first time match
Adherence to statutory, fiscal and regulatory
compliance across all regions
• TechM BPaaS supports global e-invoice operations
that address more than 70 currencies, electronic
signatures, authentication, and VAT/tax compliance
Copyright © 2013 Tech Mahindra. All rights reserved.
4
Alignment with CFO’s Objectives & Business
Context
Client Objectives for Global AP
Program
TechM Value Proposition addressing the
objective
Gain access to world class tools, technologies,
and methodologies
• TechM BPaaS solution is powered by industry leading
solution rated ‘Leaders’ in Gartner magic quadrant
Clear and aligned objectives by processes
(identifying tradeoffs between service, quality,
cost and control)
• TechM BPaaS solution provides the optimal balance of
cost, control, quality and compliance.
Drive performance improvement, and
operational excellence initiative to reach global
benchmarks in global accounts payable process
• Program design includes sharp focus on driving
highest level of automation and straight through
processing through a strong governance program to
reach the top quadrant benchmarks in cost per
invoice.
Global and scalable solution
• TechM BPaaS solution and the global reach in terms of
delivery centers provides the Scalability for future
phase implementation
Copyright © 2013 Tech Mahindra. All rights reserved.
5
Benefits Realized
Transformation of Accounts Payable at USD 15.4 Billion Mahindra Group
Parameter
Before
After
# of Locations where SAP was Implemented
9
13
# of Plants where SAP was Implemented
12
51
# of business scenarios
20
40
# of Material SKU’s
7,000
25,000
Pricing changes for multiple parts Per Year
2,000
240,000
Automated invoice processing %
0%
90%
# of people
50
50
700,000/USD 0.5 Billion
12,400,000/USD 5 Billion
Manual: 3-4 Weeks
Manual: 10 days, Automated: 1 day
14,000
248,000
# of transactions Per Year/ Value
Average TAT
Transactions per processor/Year
hat was done
W
 SAP Harmonization of all plants on SAP 6.0 version
 Automated Invoice Processing Program development
 Consolidation of all Accounts Payable activities
Copyright © 2013 Tech Mahindra.
All rights reserved.
 Standardization
of Processes
across plant locations
Vendor Engagement Programs
 Supplier Relationship Module platform
 Enabling Vendor Financing Schemes
6
Our Solution Approach
We will enable these through our Tech Mahindra Business as a Service (BPaaS)
solution stack
Transition
TechM managed
PMO
TechM managed
Transition
PO-Invoice Automation
Golden
Process
Supplier Enablement
Standardized Process
Right Shift from 73% Manual to 20% manual in 5 years
Journey from 2% to 80%
Hiring & On-boarding
Self Billing adoption
iStrive – Continuous improvement framework
Language, Location
Organizational Capability
Training across employee
Development
lifecycle
Performance management and Incentivization
Employee retention
Invoice Conversion (ICR/OCR)
Supplier Network
PO-Invoice Automation
Invoice Professional
Tools
Delivery
BCP/DR
mASTERTM Framework
Continuous
Improvement
QMS
People
Price: Per Invoice
Risk Management
Process
Steady State
TechM managed
Change management and governance
Operating model
and pricing
Adaptors
Fargo/Belfast –
Near shore
Copyright © 2013 Tech Mahindra. All rights reserved.
Hyderabad/Chandigarh –
Offshore Center
Regional Mail Rooms
7
Right Shift Approach
Global AP Process
Adoption
Client’s preferred Approach
PDF File
Format
Paper format
Upload
Tech Mahindra Approach
Adoption Rate
Vendor
Portal
EDI
Self Billing
Year
1
Year
2
Year
3
Year
4
Year
5
45%
55%
65%
75%
80%
Paper
80%
Manual
PDF File
15%
Manual
Adoption
20%
Upload
Adoption
3%
EDI
Electronic
2%
Self Billing
80%
Self Billing
Key
Drivers
Copyright © 2013 Tech Mahindra. All rights reserved.
PO-Invoice Automation
Supplier Network
8
Our Vision of ‘To-Be’ state
Tech Mahindra’s BPaaS platform
(powered by Ariba)
Invoice Professional
PO & Invoice Automation
Client’s Intranet
Supplier
Supplier
cXML
AS2
Supplier
Vendor Management
EDI
Purchase Orders
Adapter
PO Conf & ASNs
Supplier
Network
Invoices - Status
Payment - Status
Supplier
Email
CSV
Paper
Payment Professional
Discount Professional
Supplier
Spend Analytics
Supplier
Procurement Pro
Supplier
HTML
Supplier
Procurement Content
Supplier
Supplier
Enterprise Sourcing
Contract Management
Supplier Perf. Mngt
Upstream & Downstream Capability
Copyright © 2013 Tech Mahindra. All rights reserved.
9
Smart Invoicing
Invoice Automation
 The Greatest Value is in TOUCHLESS processing!
 SMART Invoice Validation drives auto post rates of 98%+
PO-Invoice Automation
Rejects exceptions
back to suppliers in real
time
Client’s ERP
Exception
Supplier
Exception
98%+
Auto Post
70+ MATCHING
VALIDATIONS
Supplier
Invoice
Supplier
PO & Invoice
Automation
Supplier
Supplier
• Less than 2% Exceptions
• Massive decrease in AP Effort
• Procurement Time Savings
Copyright © 2013 Tech Mahindra. All rights reserved.
• Instant Visibility to Errors
• Rapid Resolution & Re-Submission
• Forecast-able Cash Receipts
10
Supplier Enablement framework
Global Team Devoted to Your Success
Services and
Support
Resources
Supplier
Solutions
Team
Largest team of experienced supplier enablement program managers
that onboard track and educate suppliers
Dedicated team of account, product and service managers focused
exclusively on supplier satisfaction
Operations
Personnel
Experienced operational team focused on adhering to
a global SLA of 99.999% uptime
Engineering
Team
Developers and quality analysts deliver new
capabilities with valued input from supplier council
24x7 Global
Support
Experienced support team with ability to support suppliers in
local language
Copyright © 2013 Tech Mahindra. All rights reserved.
11
Working Capital Tension
Situation and Objectives of Buyers and Suppliers
Buyers
Suppliers
Historic Cash Reserves: $1.9T+*
Low Interest Rates: 0% - 0.3%
Investor pressures for greater
returns
Supply Chain Risk
Copyright © 2013 Tech Mahindra. All rights reserved.
Payment Terms Stretched
Working Capital Tension
Limited bank credit
Low visibility into cash flows
Cash flow is critical
12
Integration to ERP
Master Data Synchronization
• Master data (users, supplier, g/l codes, chart of accounts, etc.) is imported from the
Customer’s ERP system. Data validation and testing are recommended by the Customer
prior to the upload - following the initial import, Customer driven validation criteria are
used to govern periodic synchronization of master data from ERP to the application.
Transactional data integration
• Purchase orders and shipping receipts are imported to the Ariba System for reconciliation
purposes in a real time basis via the Ariba ERP specific adaptor. Upon reconciliation,
partially and fully reconciled invoices are exported from the Ariba Invoice Pro application
in a real time basis to the ERP for further invoice and or payment approval workflow.
Copyright © 2013 Tech Mahindra. All rights reserved.
13
Master Data Synchronization
Vendor Master
UOM
Chart of Account
Users
G/L Codes
Currencies
Supplier
Supplier
Invoice Pro
Supplier
OR
Supplier
Supplier
Network
Adaptor
ERPs
Importing Master files may
be facilitated either through
CSV files or systematic
Integration (File channel or
EAI).
Copyright © 2013 Tech Mahindra. All rights reserved.
Supplier
Supplier
Supplier
Supplier
Supplier
14
EIPP Integration Options
Vendor
ePayment
Vendor
Discounts
Network
Adaptor
Network
Adaptor
cXML
IDoc/RFC
Receipts
OC, ASN
Invoices & Credits
CO
Invoice & Pay Status
Invoice
EDI
Vendor
Email
Vendor
CSV
Any
Vendor
HTML
Discounts & Pay
Inv Status
Discounts
Vendor
cXML
PO/Change/Cancel
OC & ASN
PO
AS2
Workflow
Paper
Vendor
Pay/Remit
Vendor
Vendor
Network
Adaptor
Network
Adaptor
Network
Adaptor
Network
Adaptor
Ariba Open Adapter – leverages Customer infrastructure, Certified by Ariba
Customer Adapter – implemented by Customer, Certified by Ariba
Ariba/Netweaver or FusionAdapter – implemented / Certified by Ariba
Copyright © 2013 Tech Mahindra. All rights reserved.
15
Quality Management Framework
Our 3600 feedback constitutes an integral part of continuous improvement to
identify, recommend, deploy SL strategies
• Prioritized
Recommendations
End
Customer
• Governance cadence
•Call back detractors;
understand root
cause (proprietary
framework)
Agents
•Ion Exchange –
proprietary
knowledge sharing
platform
•Encourage open
comm./new ideas
Partners
•Strong Handshake
•Regular reporting,
meeting cadence
3600
Feedback
• Periodic Discussions
• Tracker
MARS
•Part of governance
mechanism
•Regular meetings
for check-ins
Copyright © 2013 Tech Mahindra. All rights reserved.
• Co-developed
Value Register
QMS
16
mASTER Transition Methodology
Analysis
Opportunity
Identification
Customer Requirement
•
Pre Solution Questionnaire
•
Investigate Business ‘Y’
•
Identify and Set
Expectations on Project
Deliverables
•
Projected Scope
Discovery Process (if applicable)
•
Understand e2e process
and Identify off shoring
candidates
•
Finalized Project Scope
•
Understand process
measures and KPIs
•
Understand IT Design
•
Understand hiring
requirements and FTEs
skill set
•
Understand training
requirements
•
Risk & Mitigation plan
Purchase Order/LOI
Solution
Process
Understanding
• Validate /Create “As-Is”
Process Maps
• Create Process SIPOC
• Collect and Measure
Process Baseline data
• Establish Process metrics
• Analyze Volume Data: Max,
Min, Seasonality
• Validate FTE skill set and
requirements
• Validate training
requirements
• Identify Variation Sources
• Conduct Cause and Effect
Analysis
• Pareto Analysis
• Verify system access
requirements
• Conduct Volume to FTE
analysis
Toll Gates
Output
 Project Scope
 Proposal
 Purchase Order
 Discovery report
Solution Design
• Establish governance
structure, escalation
mechanism and PMO
• Project Communication
Plan
• Create “To-Be” Process
Deployment Maps
• Transition kick off
meeting
• Detailed Transition Plan
(MPP)
 Recruitment Plan
 Knowledge transfer plan
 Training Plan
 Parallel Run Plan
 Transition toll gates
 Go-live Acceptance
criteria
 Establish quality
management process
• Identify Risk &
Mitigation strategies
• Facility and Technology
Deployment Plan
• Business Continuity Plan
TG1
Output
 Process Flowcharts
 Process Metrics &
Baseline data
 FTE Sizing &
Volume analysis
 Technical Req
Report
Copyright © 2013 Tech Mahindra. All rights reserved.
Output
 Governance plan & PMO
 Roles and responsibility
matrix
 “To Be” process maps
 Detailed Transition Plan
 Risk & Mitigation Plan
Transition
Execution
Transition Setup
& Knowledge
Transfer
Project Team mobilization
•
Implement Hiring plan
Implement technology plan
•
• Conduct Tech and
Infrastructure readiness
•
check
• Apply for EINs and system
•
ids
• Establish BCM guidelines
•
Knowledge Transfer
• Conduct KT induction
Training.
•
• Validate adapted
processes
• Create SOPs and Training
•
Manuals
Implement Training plan
•
• Implement Pre & Process
Training
• Monitor Training
•
Progress
• Agent certification
• Training System readiness
check
• SOW finalized
• Acceptance criteria and
TG2 toll gates met.
TG3
Output
 BCM guidelines.
 Training
Guide/SOP’s.
 Agents certified.
Relationship
Steady State /
Continuous
Improvement
Pilot
• Monitor performance
and track issues .
• Conduct QBR.
• Plan Program
Improvement.
• Execute Improvement
Projects.
• Set Process
Improvement targets
for year.
• Identify new
opportunities.
• Benchmark Process.
• Evaluate & deploy new
Technologies and
tools.
• BCP Audit (every 4
months).
Go Live
implementation.
Finalize service quality
plan
Establish production
SLA
Establish escalation
process management
Gauge training
effectiveness and plan
Training interventions
Create and circulate
the Transition
Handover Document.
Conduct business
reviews
Update delivery and
other enabling
documents
Conduct compliance
audits and close gaps
TG4
Output
 SLA’s & KPI’s
 Escalation
Management
matrix.
 Transition
Handover
Document.
17
Risk Mitigation Strategy
Risk Identification
•
•
•
•
•
•
•
•
•
Define Scope of Risk
Risk Management Plan
Previous Experience
TechM Organizational DB
Project Specification
Responsibi
lity
Mutually agree upon overall limits of the scope. The Change
Control process would be followed for the change requests.
TechM & Mars
Schedule overrun
Impacts deployment
Schedule, Cost
Program/ Project Manager to monitor and report. Multiple levels of
reviews need to be established to put right focus on the schedule.
TechM & Mars
Risk Analysis and
Categorization
Unavailability of
Data & SME
Impacts Schedule
Mars transition manager to assist TechM in gathering data
and availability of resources during DD excercise
TechM & Mars
Relate Risk with source
People, Process, Environment &
Technology
Prioritize and Categorize
Record Risk register with consequences
Failure of
certification of
TechM Knowledge
Acquisition
Associates
Impacts Schedule
Associates with relevant skill set and adequate experience to be
part of the KA team
Periodical assessments at topic level
TechM
Efficient & effective
knowledge transfer
to TechM resources
by client SMEs
Impacts Schedule
Mars and TechM team to prepare detailed knowledge transfer plan.
Doubt log to bring up any disconnects by off-shore SMEs
Part of communication plan with steering committee
Signoff on knowledge acquisition by Mars program manager
TechM and Mars
Retention of key
employees engaged
in knowledge
transfer
Impacts Schedule/
Learning
Diligent knowledge transfer between Mars and TechM
Regular tracking of progress and deliverables
Backup resources to be identified
TechM and Mars
Delay in Sign-Off for
the deliverables
Impacts Schedule
TechM and Mars will follow the agreed time frame to provide signoff.
Mars
Improper Project
Communication
Impacts
Development
TechM and Mars will follow the agreed on communication plan for
this implementation.
TechM and Mars
Spike in volumes
TAT & Accuracy
Mars to share such scenarios well ahead for proper resource
planning
TechM and Mars
Deliverables not met
TAT & Accuracy
Dedicated Quality Lead alignment – Daily RCA, Performance
reviews, feedback
TechM
Attrition
TAT & Accuracy
Quarterly capacity planning and back-fill process ensuring adequate
capacity
TechM
Resistance by
Supplier to get on
Ariba network
Impacts Schedule/
Deployment/
Savings
Mars to follow TechM recommended Supplier Enablement process
to ensure all suppliers agree to follow the approved process and
agree to join the Ariba Network
Mars
Measure the likelihood of occurrence
Probability and impact assessment
Register Updates
Activity to control upon impact
Approach to minimize risk
Avoid, Transfer, Mitigate, Accept Plan
Positive Risk / Opportunities
Risk Register Updates
Risk Control
•
•
Mitigation Plan
Impacts Schedule,
Cost
Risk Control
•
•
•
•
•
Impact
Change in
Requirements /
Scope
Risk Probability
•
•
•
Risk
Implement Risk Avoidance
Track and control risk
Copyright © 2013 Tech Mahindra. All rights reserved.
18
Change Management Approach
Salient features of our approach
Governance
1
Develop and “test” frame to
embed change
2
3
“Prove” the frame
Execution
Roll-out the frame (“Grow”)
GET YOUR ‘A –TEAM’
GOD LIES IN DETAILS
Map all risks – No shortcuts
Co-dev sol’n /
gap
assessment
Develop
transition
plan
Risk Management
SET YOUR PILOT FRAME
Trade
off Size vs. ease of
Program manage
implementation (complexity X
resistance)
Set and
align
strategic
goals
EXECUTE
Execute
to strategic and operational targets
First step needs to
be right
mASTERTr
ansition
Develop trans.
plans
Leadership alignment
Continuous improvement
Continuous
mASTER
Improvement Co-create roll- Develop trans.
out plan
plans
transition
………………………………….
Knowledge Base
Create Key stroke level document
In-line governance (within program)
GET THE RIGHT STAKEHOLDERS
Set and
operational
Ability
toalign
influence
is critical
targets – timelines, KPIs,
SLAs
mASTER
transition
Monitor-Resolve-Manage Risk
Focus onProgram
getting manage
it right first,
then move to continuous
improvements
CELEBRATE SUCCESSBaseline
goals and
Create excitement, get promoter
aim higher
base to endorse
Re-set targets basis performance and expectations
Who you communicate to
is important;
you
Bottom-up what
and topdown transparency
communicate
even more
Set operational targets –
timelines, KPIs, SLAs
Account governance
Recognize and reward
Value creation through
step changes
Stakeholder
management
Stakeholder communication
Dvp. communication plan (who-when-what)
Copyright © 2013 Tech Mahindra. All rights reserved.
Create communication materials
Track communication impact
19
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