Success Stories
Major telecom company drives process standardization with Shared Services
Client:
Major telecom companyChallenge:
- Our client had grown through acquisition and found itself with multiple IT systems and disparate finance processes.
Solution:
- CSC helped craft a strategy that would consolidate a number of back-office processes into a Shared Service Organization. Simultaneously, multiple SAP instances were consolidated to provide greater system integration and reduce support costs.
Results:
- CSC and our client produced a roadmap to produce an expected $500 million in savings over two years. This includes $200 million in process improvements, $200 million in working capital improvements, primarily from accounts receivable, and $100 million from consolidation of IT infrastructure.
Major telecom company drives process standardization with Shared Services
Client Situation
Our client had grown through acquisition and found itself with multiple IT systems and disparate finance processes. As a result of this acquisition activity the client needed to:
1) Develop a Roadmap for standardizing on one ERP solution where applicable to deliver accurate and timely reporting,
2) As an interim step develop a reporting strategy based on Hyperion to deliver common and consistent reporting within the first 100 days,
3) Identify and remove duplicate ERP and legacy environments,
4) Multiple legacy environments and data marts doing the same things throughout the value chain,
5) Standardize global business processes where appropriate for a diverse end-user community and identify local/legal fiscal differences,
6) Improve IT capabilities and responsiveness to support changing business needs,
7) Create consistent master data and hierarchy data/structures
Approach
The approach consisted of three major phases:
1) Assessment - During this phase CSC reviewed existing processes, benchmarked these processes to best-in-class metrics, and reviewed the technology and application architecture,
2) Blueprinting - This phase involved detailed design of the future state. This phase included detailed process design, process narratives, a fit/gap analysis with the proposed technology support, updates to Roles & Responsibilities and updates to Policies & Procedures needed to support the future state,
3) Deployment/Business Benefit Realization - This final phase included the redeployment of an integrated SAP architecture, the launch of a Shared Service Organization that provided finance services to a number of business units, and the realization of the business benefits that included process cost reduction, working capital improvement and reduced IT support costs.
Results
During this Project, CSC worked closely with the client to produce a roadmap that will allow the client to realize a payback of $500 million over 2 years post implementation. This includes:
1) Approximately $100 million associated with legacy elimination and server consolidation,
2) Approximately $200 million associated to business change and process improvements (BPR/transformation and shared services), and
3) Approximately $200 million reduction in the minimization of Account Receivables.