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3 Generations of Shared Services at Oracle

3 Generations of Shared Services at Oracle. ACCA Ireland Employer Conference, Limerick, Sept 06. John Martin EMEA Director of SSC Consulting. Oracle Corporation. <Insert Picture Here>. Largest enterprise database software vendor Founded 1977; Public 1986 275,000 Customers

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3 Generations of Shared Services at Oracle

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  1. 3 Generations of Shared Services at Oracle ACCA Ireland Employer Conference, Limerick, Sept 06

  2. John MartinEMEA Director of SSC Consulting

  3. Oracle Corporation <Insert Picture Here> • Largest enterprise database software vendor • Founded 1977; Public 1986 • 275,000 Customers • Head Office - Redwood Shores, California • 140+ countries; 60+ subsidiaries; • 55,000 employees worldwide • Annual Revenues $12 billion • License, Support, Consulting, Education

  4. Oracle in Ireland • 12 Lines of Business • Major Investment in Applications Team • Oracle Business of the Year 2005 • Belfast Office open in May 05 • Consulting Nearshore Delivery Centre • Innovation

  5. <Insert Picture Here> 1st Generation - Migration to Ireland 1997 - 2001

  6. Oracle in 1998 • NOT a Global Corporation • Local Decision Making - (Country & Line of Business) • No commonality in Processes or Systems • No Global Chart of A/C’s or Standard reports • Inadequate Global picture of Customers, Suppliers and Employees

  7. Key Drivers - Phase 1 • Drive to Save $1bn • Oracle Unified Infrastructure Vision • Consolidated Technology – Global Single Instance • eBusiness Transformation • Economies of Scale • Consistent Business Processes • Economies of Scale • Improved data integrity & business intelligence • Reduce reporting cycles

  8. Phase 1 - Approach 1997 • Feasibility Studies • Develop Standard Processes (8 Months) • Mapped Processes to Oracle Applications • Integration Testing for Stability 1998 • Establish SSC in Dublin 1999 • Monaco (V.1) Complete - Mar 99 • Start Migrations - 16 week plan • First Live country – Hungary, June ‘99 2000 • Go Global 2001 • Migrations complete

  9. Scope of Phase 1 – Dublin SSC

  10. Phase 1 - Outcome • Migration of 42 Countries to Dublin • 20% Reduction in F&A Headcount • Common Application • Standardisation of Process (Some) • Global SSC Organisation (Not fully) • Change in employee mindset • Lots of Self Service

  11. <Insert Picture Here> 2nd Generation - Offshore to India 2002 - 2005

  12. Key Drivers - Phase 2 • True Global Processes • Fix Broken Processes - Procurement • A Global Finance Organisation • Control • Visability & Accountability – SOX • Economies of Scale • Single Instance of Database

  13. Approach - Phase 2 • Global Process Owners • Centralise Global Processes • Bangalore • SSC & Country Model Organisations • Change Employee Profile of Regionals SSC’s

  14. Oracle SSC, Bangalore 2003 • License update orders (non revenue) • Customer & vendor setup • Tactical F,P&A (forecast & budget by line of business) • Cash application (accounts rec.) 2004 • Project Accounting • Accounts Receivable • Cash Management • Tactical Purchasing • Accounts Payable • Fixed assets • Expense Reporting

  15. Dublin SSC – What do we do ? Bangalore, India

  16. Local Subsidiary Organisation

  17. Phase 2 - Outcome • Migration to Bangalore • Downsize Regional SSC’s • Downsize of Country Organisation • Creation of Control Hubs • Full Standardisation of Process • Global Single Instance

  18. <Insert Picture Here> 3rd Generation - Nearshore to Romania 2006 +

  19. Key Drivers - Phase 3 • Integration of Acquired Entities • Move to Low Cost Locations • Downsize Local Finance Organisation • Centralise Statutory Accounting • Re Centralise Collections Process - Romania • Centralise Expense Processing - Romania

  20. Dublin SSC – What do we do now ? Bucharest, Romania Bangalore, India

  21. Local Subsidiary Organisation

  22. Local Subsidiary Organisation

  23. Global Team Work SSC Bangalore & Bucharest SSC Dublin Local Country Finance Team & Strategic Analysts

  24. Phase 3 - Outcome • New Focus for Regional SSCs • Change of Focus for Local Finance • Growth of Nearshore Operations • Focus on World Class Finance

  25. Benefits • Total F&A Cost Declined 30% • Total Heads Declined 25% • Cost per head declined • Payback was 28 months • Biggest Savings is IT • Key target - Finance Cost as % Revenue

  26. Some Critical Success Factors • Executive Management Sponsorship • Effective Change Management • Outstanding Communication • Customer & Quality Focus • Global Process Owners • Partnering • Customers & Suppliers • With Internal Customers • Business Partners

  27. Q & A

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