technology as an enabler for global shared services

2012-05-21 Copyright ©2012 by Oriflame Cosmetics SA

Technology as an Enabler for Global Shared Services

Oriflame Facts & Figures

• €1.5 Bn sales in 2011 • 3.6 million Sales Consultants • Around 700 million products sold per

year

• 1,000 products of which 1/3 new each

year • 150 million catalogues printed in 40

languages • 7,900 full-time equivalent employees

Sales by Category 2011


Operations in over 60 Countries – of which 13 Franchises


A Long Term Growth Company

1990 - 2011: CAGR organic sales of over 15% €m


Implications for Shared Services ?

• Fast growth over two decades – unaligned processes

• Complex, front-office driven business • Culture of independent entrepreneurs • Highly fragmented landscape

6 5/21/2012 Copyright ©2012 by Oriflame Cosmetics SA

Global Shared Services

keep it simple


Fundamentals of Shared Services

Concentration

• Scale effects • Fewer people

• Fewer IT assets

Focus activities on core business

Leading to further indirect savings

Standardization

A prerequisite for shared services

Elimination of non-value added activities and

quality improvement

Automation

More effective

processes

Substantial time savings and productivity

improvements



Concentration


• Fewer IT assets



Standardization



quality improvement

Automation

More effective

processes


improvements


Concentration - GSS Organization

Christian Jönsson VP Global Shared Services (GSS)

Pawel Pietruszewski Senior Director GSS Finance

Krasimir Gaydov Senior Director

GSS IT


Concentration - GSSF Organization

Senior Director GSS Finance

SSF Warsaw

SSF Fribourg

SSF Istanbul

SSF Mexico City SSF Delhi

Global Systems & Processes


Concentration - Delivery of services in GSSF

5/21/2012 Copyright ©2012 by Oriflame Cosmetics SA 14

Entity Finance Manager

Shared Services Finance

Customer – Service Provider

Integrated SSF

Entity Finance Manager

Local SSF team

Customer – Service Provider

Virtual SSF

Shared Services Finance

Local SSF team reporting within GSSF structure

Integrated service delivery independent of the location

Location decisions based on the best configuration of cost, flexibility, knowledge requirements

Concentration - Split of work in GSSF delivery models


Scope Integrated SSF Virtual SSF Service Delivery Service Delivery

Service Delivery

AP, Travel Expenses AR, GL, Cognos, Payments and Treasury, tax compliance

Mainly Central Mainly Local (level of central delivery dependent on local regulations, time zone, costs)

Accounting System delivery and development

Functional delivery Issues resolution

Central Central

Central Central

Process Management

Process improvement Internal Audit Special projects Policy development

Central Central Central Central

Central Jointly Central Central

Stakeholders Management

Group Reporting External Audit Other functions

Central Central Central

Central Local Jointly


Concentration


• Fewer IT assets



Standardization



quality improvement

Automation

More effective

processes


improvements


Standards in Oriflame GSSF

• Standards – IFS system – Interfaces to Cognos and Orisales – Chart of Accounts for Group and design logic for statutory – Processes and procedures impacting system design – Management Reporting tools and standard reporting package – Services scope and specification

• Non-standard – Statutory and tax reporting – Manual processes and procedures


– Control over standardized system set-up speeds-up implementation, provides ability to implement improvements across all the entities in the efficient way, reduces cost of support and maintenance

– Standardized reporting allows for cross-entity comparisons, reduces development effort, simplifies cross-entity knowledge exchange

– Unified scope provides ability to manage services in a consistent way across the regions

Standards - Decision process Broad input, tight decision making • Steering Committee

– Objectives and priorities – Approves exceptions

• SSF Reference Group (local finance managers) – Provides feedback on performance, issues, functional requirements

• SSF Project Team – Solution design, implementation

• SSF Management – Coordinates governance process, delivers


– The whole finance community provides input into the design and implementation of the concept

– Focused decision making ensures timely delivery


Concentration


• Fewer IT assets



Standardization



quality improvement

Automation

More effective

processes


improvements


IFS GSSF

General Accounting

Non-Consultant AR

AP / T&E

Automation - IFS ERP solution is at the centre of Financial Systems concept

IFS C

onnect

Orisales

Orisales GDC

Cognos

Controller

Cognos BI

IFS Reports Cognos Controller Reports

Orisales Reports

Cognos

Planning


IFS GSSF

General Accounting

Non-Consultant AR

AP / T&E


IFS C

onnect

Orisales

Orisales GDC

Cognos

Controller

Cognos BI


Orisales Reports

Cognos

Planning


One Accounting system on single occurrence: Single Chart of Accounts Integrated Group and Statutory Reporting Functional alignment

IFS GSSF

General Accounting

Non-Consultant AR

AP / T&E


IFS C

onnect

Orisales

Orisales GDC

Cognos

Controller

Cognos BI


Orisales Reports

Cognos

Planning


Automated interfaces between key applications – single input of data Automated Interface: IFS – Orisales and IFS – Cognos

IFS GSSF

General Accounting

Non-Consultant AR

AP / T&E


IFS C

onnect

Orisales

Orisales GDC

Cognos

Controller

Cognos BI


Orisales Reports

Cognos

Planning


Elimination of the paper flows of documents and manual input of data • E-Invoicing for scanning and approval of vendor invoices (IFS module) • Expense management for setting and approving cash advances and travel

costs (IFS module) • Bank interfaces through IFS Connect

Automation - IFS End-User Portal


Automation - IFS E-Invoice workflow

Visibility of all the invoices in the process Elimination of the paper-flow and walking around Strict Internal Controls


Automation - Expense Management System


Automation – Payment Solution


IFS Application 7.5

IFS Extended Server

HTTP

File

FTP

Mail

Service

Bureau

On-Line Bank Application

Core XML Transformer

Routing/R

outing Address

preferably payment message

XML ISO20022

Base line solution for outgoing payment

Payroll

(salaries)

Core XML

OriSales (bonuses, disburs.)

Core XML

SFTP

IFS Connect

Swiftnet

IFS GSSF

General Accounting

Non-Consultant AR

AP / T&E


IFS C

onnect

Orisales

Orisales GDC

Cognos

Controller

Cognos BI


Orisales Reports

Cognos

Planning


Operational, transaction level reporting

Integrated Management Reporting

Putting this together into the Service Catalogue


What have we done

• GSS IT – Process started in 2007 with establishment of GSO IT

and business owners – Low rates (cost levels and staff levels) in external

benchmarking

• GSS Finance – Full implementation in EMEA finalized in 2 years – Asia and Latin America following in 2012


GSSF WAW and FRI are supporting 17 and 11 legal entities respectively

FRI

Spain Oct 10

Portugal Jan 11

OCSA Lux (7 legal entities)

Feb 11

Holland Mar 11

E-Commerce Mar 12

WAW

Poland Jul 10

Slovakia Oct 10

Czech R. Jan 11

GSO Prague Jan 11

Hungary (2 reporting entities)

Apr 11

Slovenia Apr 11

Sweden (2 legal entities)

Jul 11

Norway Jul 11

Finland Jul 11

GSO Dublin Jul 11

Romania Oct 11

Bulgaria Oct 11

Serbia Jan 12

Kosovo Jan 12

Montenegro Jan 12

OPP Jan 12

VIRTUAL

Turkey Jan12


GSSF Team in Europe

• 60 people based in Warsaw, Fribourg and Stockholm

• From 0 to 20 years of experience in Oriflame • 9 nationalities

– Brazilian; Polish; Portuguese; Romanian; Slovak; Slovenian; Spanish; Swedish; Swiss


Summary

• Can we provide both integrity and agility ? – Integrity allows for greater agility at the global level – Business relieved from finance and IT can be more

focused on core business • How can multifunctional business services

organization add more value to the business ? – Ease of managing multifunctional changes – Seamless experience for the clients in regards to the

implementation / improvement projects


technology as an enabler for global shared services

Business

oriflame cosmetics sa3

oriflame cosmetics sa10

oriflame cosmetics sa11

oriflame cosmetics sa12

oriflame cosmetics sa13

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functions central

oriflame facts