Case Study
Generating TECHNOLOGY Impact
Agile execution of cloud based digital transformation roadmap enables bottom line impact in record time
Client
Genpact solution
Business impact
Genpact
Implemented one enterprise-wide set of redesigned processes on mobile enabled, cloud based solutions linked with building a scalable ERP platform for key functions.
• 25% productivity increase in finance and HR
Deployed 10 enterprise grade applications across 10 months with solution linked to strong analytical and MIS reporting systems.
• Annualized return on investment of 50% over a span of five years
Industry Global business services Business need addressed Create, in record time, an agile, scalable IT-based environment and standardized processes and policies across key finance and HR functions that enable double-digit growth, improved margins, reduced risk, improved compliance, and the seamless integration of acquired and merged entities.
DESIGN • TRANSFORM • RUN
• 8% reduction in revenue dilution • 15% reduction in hiring turnaround time • Improved scalability for future M&A events
To realize its plans for rapid growth, Genpact recognized the need to embark on a journey to transform its IT-enabled operating environment that currently serves 70,000 employees in 25 countries. Focused on the key tenets of global standardization, simplification, agility, and scalability, Genpact developed a cloud strategy that enabled it to roll out one enterprise-grade application per month. The initiative has produced tangible business value in months, rather than the years typically required for such large, transformational implementations. Business challenge
Genpact solution
Genpact’s rapid growth since its 2005 spin-off from General Electric created an internal operating environment that utilized a myriad of disparate systems and lacked enterprise-wide uniformity and standardization across its processes, policies, and regulations. The company also struggled with pipeline visibility, inadequate and inconsistent CRM data, and billing leakages.
To achieve its objective in a highly accelerated timeframe of two years, as compared to the typical six years for such an encompassing transformational program – Genpact began by conducting “as is,” “to be,” and cost benefit analyses to attain its “One Genpact” vision.
To fuel agile, scalable, strategic growth, Genpact launched an enterprise-wide, IT-enabled transformation initiative. The components of the program were:
Genpact spent the first several months of the program redesigning its processes, including sales, Order to cash, Procure to pay, Record to report, contract management, taxation, pipeline management, hire to retire, and financial planning and analysis. The company utilized internal teams to redesign the processes, as Genpact’s practice groups are led by process design experts. To ensure enterprise-wide adherence to the processes, the company transformed its geographically dispersed finance and HR shared service operations into centralized Centers of Excellence.
• overhaul its systems and technology infrastructure • Establish common enterprise architecture • Standardize processes and reporting • Institutionalize a singular, integrated set of applications • Enable seamless integration of new businesses • Align technology assets and resources • Generate more accurate and timely management reports The phased program, which focused primarily on sales, human resources and finance functions, was rooted in the same goals that Genpact executes for its clients, i.e., create an IT foundation that quickly enables significant business growth while managing costs, improving margins, reducing risk, and improving compliance.
Processes re-engineering
Technology overhaul Genpact defined a “plug and play” enterprise architecture to integrate new business that encompasses disparate processes and their technology footprint. As portrayed in the architecture diagram below (Figure 1), Genpact brought its state-of-the-art applications onto a single platform, cutting across multiple processes like talent management (Taleo), learning management (iLearn), customer relationship
One Genpact One process Globally uniform processes for Finance and Human Resources Shared services consolidation Global adoption Leaner & global Chart of Accounts (COA)
One reporting
One policy
One technology
Enterprise wide standards for critical finance policies and HR policies
Consolidation of ERP system on a single platform across the company Application rationalization, cloud adoption, simplification of travel management system, hyperion consolidation, contract management tool
Common prioritized masters Automated KPIs with reports from BI; aim to enable self service reporting
Projected benefits • 25% productivity increase: Finance and HR • Consistent and faster statistics and management reporting • 8% reduction in revenue dilution
• 15% reduction in hiring turnaround time • 40% application rationalization • Capture of cost, resources and revenue at the desired level of granularity
Figure 1 management (salesforce), third party contract management (iCon), employee mobility and expenses management (Concur), financial close and consolidation (Hyperion) and email management (Microsoft O365).
and implementation was developed and managed by Genpact’s internal IT group and a small team of external consultants. one ‘Go-Live’ in the cloud per month which is much faster than what typically large enterprises are able to achieve.
To ensure tight integration among its business operations, processes, and technologies, Genpact migrated to a single, consolidated cloud instance of Oracle 12, and established inherent links among all the system upgrades and the newly established processes.
Transformations in the technological and system underpinnings of specific processes include:
To reap full value from digital technologies, such as mobility solutions, dynamic workflows, robotic processes, and advanced visualization, Genpact implemented Systems of EngagementTM: a thin, agile technology layer that transforms end-to-end process management. To enable rapid deployment and scalability, it utilizes cloud-based managed services for all its transformed processes. The entire cloud strategy
Order to cash • Enhanced visibility via a single contract management system for all contract types, enhanced controls, and a global view of billing data • Reduced manual touch points by enabling a direct link between contracts, billing and resource allocations and/or time sheet entries, resulting in fewer manual touch points and tracking utilization • Stemmed revenue leakage via a system-based interlinkage between billable expenses and invoicing leveraging Oracle Financials and salesforce.com
Performance management
Learning management
Employee on-boarding + Hiring
CRM Social collaboration
R
R
R
R
R ESB Cloud – Governance, security, management, locator, transformation services
Employee mobility and expenses management
R
iCon
PRM
Other apps
DB HUB
LDAP
SSO/LDAP
ESB tool
Resource management
B
Web center portal Invoice processing (ORCL) GDS Other apps
B
CDC
SOA – ESB BPEL/ BPM
Other apps ESB
ETL tool Hyperion
B
SaaS ELT/ETL
Payroll
OID/LDAP
ETL tool
DB HUB DW
DW
SSO/LDAP
B
R Real time/Near real time
B Batch
Figure 2 Record to report • Automated accruals based on POs and receiving in the system, leading to lesser manual efforts and easier generation of audit schedules • Reduced close cycle time through smarter consolidation across 100+ ledgers Procure to pay • Enhanced user experience with a mobile-enabled travel management system • Enabled proactive spend controls via online budgetary controls for PO-based purchasing and travel expenses • Enabled automated invoice processing by leveraging its cloud based Akritiv-ESM platform resulting in significant reduction in invoice processing Financial planning and analysis • Driving the right profitability metric at the right level via a contribution margin/gross marginbased P&L structure
• Enhanced accuracy, driving efficiency through enterprise-wide standard reports and metrics and mobile-enabled self-service • Single pipeline tracking system globally for a consolidated multifunctional view via reports and dashboards for sales/vertical/horizontal • Consolidate and report financial results, revenue forecasts, meet global regulatory requirements, and reduce the cost of compliance at a lower turnaround time Contract management • Achieved better visibility and management of contractual obligations through the implementation of an automated contract management framework and single repository for contracts • Addressed the key challenges of contract compliance and risk management in contract administration and governance
Hire to retire • Drove higher productivity, accuracy, and enhanced employee experience through the design of processes and Oracle workflow, based on best-in-class HR practices and benchmarks • Built a rapidly scalable and growth-oriented end-to-end hire to retire process on a cloudhosted platform to enable smooth transitioning from talent acquisition to automated employee onboarding till separation • Enabling talent development through a cloud based global learning platform • Achieved effective workforce planning by placing a structured and automated process in place for human resources and internal fulfilment
Business impact Putting into internal practice the same type of outcome focused, integrated process and technology approach encoded in our proprietary Smart Enterprise Process (SEPSM)framework that it delivers to its clients, Genpact achieved multiple benefits through this initiative, including: • 25% productivity increase in finance and HR • More than 40% application rationalization – bringing down the number of applications from 140 to 45 • 15% reduction in hiring turnaround time • 8% reduction in revenue dilution • 80% reduction in non-compliant data security incidents
• Five-fold reduction in the number of utilized applications • Real-time information exchange between systems • Significant reduction in in-house application footprint through extensive leverage of cloud • Improved scalability for future M&A events The expected bottom-line savings impact from this fast-tracked, IT-driven transformation initiative will deliver annualized return on investment of 50% over a span of five years. This was achieved through a combination of application realization, IT service delivery standardization, annualized infrastructure and benefits savings, below-plan IT OpEx. Flexibility, agility, global standardization and scalability were cornerstones of Genpact’s bold transformation journey resulting in faster time to value. By rooting its strategy in the cloud and leveraging its expertise in technology, process design and delivery, and Systems of EngagementTM, the company nimbly enabled a record roll-out of immense proportion to realize all its goals and set the company on the path to sustainable growth. This transformation journey had its roots solidly grounded in Genpact’s Intelligent OperationsSM methodology. By leveraging the Data-to-Insightto-Action arc, the team was able to sense, act, and continuously learn from the results. By surfacing and analyzing targeted data, they not only build actionable insights, but also deliver that insight as executions using process science empowered by cloud technology.
About Genpact Genpact (NYSE: G) stands for “generating business impact.” We design, transform, and run intelligent business operations including those that are complex and specific to a set of chosen industries. The result is advanced operating models that support growth and manage cost, risk, and compliance across a range of functions such as finance and procurement, financial services account servicing, claims management, regulatory affairs, and industrial asset optimization. Our Smart Enterprise Processes (SEPSM) proprietary framework helps companies reimagine how they operate by integrating effective Systems of EngagementTM, core IT, and Data-to-Action AnalyticsSM. Our hundreds of long-term clients include more than one-fourth of the Fortune Global 500. We have grown to over 70,000 people in 25 countries with key management and a corporate office in New York City. Behind our passion for process and operational excellence is the Lean and Six Sigma heritage of a former General Electric division that has served GE businesses for more than 16 years. For more information, contact, technology@genpact.com and visit www.genpact.com/home/solutions/enterprise-application-services Follow us on Twitter, Facebook, LinkedIn, and YouTube. © 2015 Copyright Genpact. All Rights Reserved.