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Published byMargaretMargaret West Modified over 8 years ago
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Shared Services Centers Yair Shaked Finance Director
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Oracle Corp. – Key Facts Largest enterprise software vendor Founded 1977; Public 1986 Corporate offices – Redwood Shores, CA 145 Countries, WW. 78,000 employees worldwide Revenue(Last 12 Month)- 18B$ Net Profit (Last 12 Month)- 4.2B$
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NOT a Global Corporation Local Decision Making No commonality in Processes or Systems No Global Chart of A/C ’ s or Standard reports No Global picture of Customers, Suppliers and Employees Oracle in 1998
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Disparate Technology (52 Applications Instances) Fragmented Data Oracle’s Infrastructure 1998
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What did we want to achieve?
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Simplify, Standardize, Centralize, Control
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Improve operating margins from 20% range to 40% range.
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Need to reduce all Labor costs EXCEPT FOR R&D.
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Accounting and back office are not the crown jewels of Oracle. R&D is !
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Put your own house in order BEFORE doing acquisitions.
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Acquisition & Merge processes Short!
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Do it at time when things are going well.
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Doing it - by using Oracle Systems.
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Evolution of Shared Services at Oracle Data Entry Account reconciliations Limited B/S scope Corporate Submission Accounts clerks Audit Support Focus: Process Efficiency Business Support Exceptions Full B/S and P&L Analysis & Review Qualified Accountants Audit Lead Focus: Control Phase I Phase II
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Colorado Springs Bangalore Sydney Rocklin Dublin "מה שיכול להיעשות מכאן – ניתן להיעשות משם" Shared Services at Oracle Romania
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WHY Shared Services at Oracle Economies of Scale Consistent Business Processes Improved data integrity & business intelligence Increase control Reduce reporting cycles Oracle Unified Infrastructure Vision Consolidated Technology – Global Single Instance
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Where are we now? Key decisions at Global Corporation HQ. Management reporting – one version of the truth. Global standard processes. Transaction processing in Shared Service Center. Local Finance focused as business advisors. Monthly close process FAST (Days!) Acquisitions integrated FAST (weeks/months) Good corporate governance/SOX compliance.
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Finance Directors - Can Concentrate on Business Visibility and Accountability Self Service – Do it Right on the First Time Agile Organisation Take Our Own Medicine The Benefits of Shared Services
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Total F&A Cost Declined 30% Total Heads Declined 25% Cost per head declined Payback was 28 months Biggest Savings is IT
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Establish global standard business processes Clear separation of duties Facilitate operational reviews and audits Increase operational efficiency Expedite incorporation of new business units Manage cost The Benefits of Shared Services
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Oracle’s Implementation Methodology Change Mgt/ SSC Activities Define 1 wk GAP Analysis 3 Weeks Resolve 2 weeks UAT 3 wk Transition 2 Weeks Post Imp. Support Model Timeline 3 Months
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Critical Success Factors Executive Management Sponsorship Effective Change Management Outstanding Communication Quality Focus Global Process Owners Partnering
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Some Practical Considerations Need Top Management Commitment and Active Involvement – Create a unified Vision for Finance Hardest Part: Local resistance Leadership of local FD! Allow no room for duplication Architecture predefined - do not move a broken process Maintain and Build on the Process
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A Q &
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