CSC’s SAP-Enabled Finance
Transformation Project
Michael Langner, Partner
May 5, 2015
CSC Proprietary and Confidential
A GLOBAL
POWERHOUSE
IN BUSINESS AND IT
TRANSFORMATION
CSC Proprietary and Confidential
72,000
7,700+
$12.6B
2,500+
50+
30+
14
EMPLOYEES WORLDWIDE
SAP PROFESSIONALS
WORLDWIDE
GLOBAL IT
SERVICES POWERHOUSE
SAP PROJECTS
YEARS OF INNOVATION
YEARS SAP PARTNER
KEY INDUSTRES WITH
ACCELERATORS,
TEMPLATES AND
EXPERIENCE
May 12, 2015
22
CSC - Leading next-gen technology and business solutions
Industries
Energy and Natural
Resources
Financial Services
Healthcare
Manufacturing
Public Sector
Communications and
High-Tech
Travel and
Transportation
Consumer and
Retail
INDUSTRY EXPERTISE
Solutions
Cloud
Applications Services
72,000
Business Process Services
and Outsourcing
EMPLOYEES OPERATING
IN 70 COUNTRIES
CSC Proprietary and Confidential
$12.6B
Big Data &
Analytics
Cybersecurity
Consulting
GLOBAL IT SERVICES
POWERHOUSE
Infrastructure Services
50+
YEARS OF
INNOVATION
Software and IP
#162
RANKING ON THE FORTUNE
500 FOR 2012
May 12, 2015
3
Where are we coming from?
In early 2012 Mike Lawrie joined CSC and
starts the “Forward Together” program to
transform CSC’s operations, go-to-market
approach, and corporate culture.
This went together with a dramatic cost
reduction drive.
http://www.csc.com/about_us/insights/98905-our_strategy_moving_forward
CSC Proprietary and Confidential
May 12, 2015
4
Global leader in next-generation technology
solutions and services
Helping customers achieve superior returns
on their technology investments through:
• Innovative solutions
• Domain expertise
• Global scale
Transformation Journey
Get fit
Win more
18 months
2 years
•
•
•
•
CSC Proprietary and Confidential
Lead
Longer term
Expanding market coverage
Scaling next-gen offerings
Building strategic partnerships
Broadening next-gen technical skills
Note: Percentages represent % of total revenue for Q1, 2015.
May 12, 2015
5
Realizing the Vision of Finance
APPROACH
•
•
•
•
•
Standardize end-to-end processes and modernize systems
Dedicate experienced process specialists from Finance
Leverage Shared Services and Centers of Excellence
Enhance skill sets throughout Finance
Leverage CSC go-to-market offerings
PRIMARY OUTCOME:
FINANCE ENABLES
THE BUSINESS
Finance as a valued, trusted
advisor and business partner,
supporting CSC to achieve its
market leadership and profitability
goals with advanced analytics
and decision-support capabilities,
while ensuring strong controls
with redefined roles:
• Strategists
• Operators
• Stewards
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SECONDARY OUTCOME:
CSC
GO-TO-MARKET
• Utilizes CSC’s portfolio of
services from initial strategy
through run and maintain
• Enables proactive
anticipation of customer
issues with compelling and
competitive solutions
• Serves as a reference for
transformation market
opportunities
May 12, 2015
6
Legacy System Situation – The Case for Change
Contract
Management
Systems
Consolidation
Systems
Ineffective
• Inability to effectively support
operating model
• No single point of financial information
Inefficient
• Manual and labor intensive
• Disparate, burdensome processes
• Significant customization of SAP instances
Invoicing
Systems
Client
Repository
Systems
Time
Systems
GIS
Labor/Usage
Systems
CSC Proprietary and Confidential
Inflexible
Billing
Systems
Asset Mgmt.
Systems
Insufficient
Integration
Inconsistent
• Unscalable tools
• No standardization
• Complex information structures (115K profit
centers, 325 legal entities)
• 3 instances of SAP ERP, 1 HCM
• No master data management
• Non-standard systems with little data integration
among Finance, HR, CRM, SRM
• Inconsistent data
• Variations in application of policy
• No standard definitions
May 12, 2015
7
SAP-Enabled Finance Transformation Simplified Systems Architecture
Planning
Contract
Management
Systems
Contract
Management
Invoicing
Systems
Asset and
Service
Management
Client
Repository
Systems
Tax
Management
GIS
Labor/Usage
Systems
Billing
Systems
Asset Mgmt.
Systems
Project/Offering
Usage
Collection
SAP ERP “C1”
• Finance/
Controlling
• Sales Order
• Projects
• Billing
• Time Entry
• Resource
Management
Customer
Relationship
Mgmt. (SFDC)
Offering
Life Cycle
Mgmt. (OLM)
Sourcing/
Procurement
(Ariba)
HR (Workday)
Integration Services
COTS
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Reporting
Data Services
Consolidation
Systems
Time
Systems
Consolidation
Cust. Dev.
SAP
Cloud
May 12, 2015
8
Finance Transformation Scope - End to End Process Flow
Sell
Win
Pipeline
Management
Opportunity
Management
Deal Review
CSC Proprietary and Confidential
Contract
Setup
Manage
Record
Analyze
Time
Revenue
Recognition
MultiDimensional
P&L
Expenses
Billing
Operational
Reporting
Accounting
Balance
Sheet and
Cash Flow
Assets
May 12, 2015
9
Outcomes: Finance Transformation Metrics
Metric
Chart of Accounts
Days to Close
Current
System
New System
10,000 GL,
1,800 Interco.
1,200 GL,
40 Interco.
15
3
75,000/qtr
Down 90%
Area
Planning and
analysis
Efficiency
• % of reports delivered through self-service
• % of reports delivered by Shared Services
• # of statutory reports and tax returns filed on time
• # of days to resolve out of balance
Manual Journal Entries
• % of BS reconciliations completed on schedule
Profit Centers
150,000
non-standard
Reporting Elements
Custom/
Non-standard
Standard SAP
30%
70%
(90% indirect)
Catalog Ordered Items
• # of BS reconciliations per FTE
80
• Adjustments processed before cut off
Record-to-Report
• # of journal corrections
• Timeliness of report distribution
• Manual journal entry %
• Time to remediate and retest control deficiencies
• Days to close month / quarter /annual books
Invoice Accuracy
# of Requisition
Systems
90 – 95% est.
99%
8
1
• Accounts receivable per FTE
Order-to-Cash
• Fixed assets process costs as % of revenue (labor plus outsourcing)
• % of invoice items processed error free first time
# of Approval Steps
Up to 17
<3
• Procurement incident aging
# of Time Recording
Systems
CSC Proprietary and Confidential
13
1
Source-to-Settle
• % of invoice line items paid on time
• Accounts payable process cost as % of revenue (labor plus
outsourcing)
May 12, 2015
10
How is CSC achieving this?
Using the same offerings
that our clients are buying
from CSC
• “Drinking our own champagne”
• SAP Implementation Services by CSC’s Global SAP Practice
• SAP Instance hosted by our private BizCloud offering for both Development,
QA and Production
SAP-enabled Finance
Transformation
• Process and Organization changes at the same time as the ERP
implementation
• Focus on Business Changes and Business Outcomes
• Early analysis and communication of Business Impacts
SAP Functionality for
Professional Services and
Outsourcing
• “Vanilla” SAP Implementation with only 361 Development Objects
• Incl. BI on. HANA
• Professional Services focused: PS-Project Systems, RRB (Resource Related
Billing), CATS (Cross-Application Timesheet), Lean Staffing, CPI (Commercial
Project Inception), CRM Contract Management
• Outsourcing-Focused: Service Management, Plant Management, Converged
Charging/Pricing, Converged Mediation
Embracing the Cloud
• SAP in the Cloud
• Ariba in the Cloud
• Salesforce.com in the Cloud
• SuccessFactors in the Cloud
All Elements have to come together!
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May 12, 2015
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Using the same offerings that our clients are buying from us…
Industries
BizCloud VPE hosted private cloud
with dedicate compute and
networking and logical segregation
of storage
Cloud IU for SAP Optimized cloud
infrastructure and run-and-maintain
Energy and Natural
Financial Services
application
Resources support on usage basis
with public, virtual private and
private cloud deployment options
Solutions
SAP Enabled Finance Transformation by
our SAP and Strategy Consulting practices
• SAP Knowledge
• Professional Services and Outsourcing
CSC Enterprise Performance
Industry Knowledge
Management Transformation
and impact-driven
Healthcare • Pro-active
Manufacturing
PublicBusiness
Sector
Communications and
Travel and
Consumer and
High-Tech
Transportation
Retail
Involvements
CSC Master Data Management
Ariba Implementation
Services
from
our
INDUSTRY EXPERTISE
Implementation
Ariba Practice
Cloud
Big Data &
Analytics
Consulting
Cybersecurity
Applications Services
Business Process Services
and Outsourcing
SAP Run- and Maintain
Support
93,000
EMPLOYEES OPERATING
IN 70 COUNTRIES
CSC Proprietary and Confidential
$15.5B
Infrastructure Services
Software and IP
Identity Management Solutions... Automation for user account
creation, lifecycle management, user authentication, single sign-on,
GLOBAL IT SERVICES
RANKING ON THE FORTUNE
YEARS
OF
Identity
and
Access
Governance
(IAG),
Federated
Identity
Management
POWERHOUSE
500 FOR 2012
INNOVATION
(FIM), and Cloud SSO.
50+
#162
May 12, 2015
12
End-State Outcomes
Implementation of a Common Financial System and Standard Global Processes
Standard Processes
• Global end-to-end standardized processes that reach
through all business areas
• Best business practices
• Scalability, agility, trust, and predictability
Common Systems
• Radically simplifies enterprise architecture
• Reduced total cost of ownership
• Next-gen technology
Shared Services
• Optimal delivery model
• Single process management framework
• Leveraged, scaled, lower cost delivery centers
Finance as Business Partner/Advisor
• Integrator of total business view
• Insight, challenge, support of business decisions
• Actively manages financial drivers of current and future value
Using Our Own CSC Consulting Services
and CSC Methodologies and CSC Solutions
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May 12, 2015
13
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May 12, 2015
14
Thank You
CSC Proprietary and Confidential