Ready, Set, Grow - Deloitte United States · on observable traits and preferences. Deloitte teamed with scientists from Deloitte teamed with scientists from the fields of neuro-anthropology

Ready, Set, GrowExecutive Breakfast November 30th 2018

© 2018. For information, please contact Deloitte Consultores, SA

Agenda

Welcoming and breakfast

At a glance: introduction

Ready: define and support investment

Set: structure set-up and operations

Grow: optimize and extend operations

Sharing experiences and wrap up

08:30

09:00

09:15

09:30

09:45

10:00


#ReadySetGrowMultinational business groups from diverse locations across the world…

Portugal

Germany

USA

#2

#6

France

#10

#4

Nigeria

#1

Austria#1

# Number of companies from different locations with Shared Services and Tech Centers in Greater Porto


#ReadySetGrow…have implemented their GBS & Tech Centers in Porto Region

#10 From Portugal

#6 From Germany

#4 From France

#1 From Austria#2 From USA #1 From Nigeria

- Non exhaustive-


#ReadySetGrowPorto region attractiveness is based on a social environment, easy global accessibility and strong investment dynamic within an Innovation and Technology ecosystem

European best

destination in

2017

UPTEC – universities promote the digital era and seeking for business opportunities

Daily connections to most European cities

Social & Political Climate

111 nominations earned

Investments

This is dummy text

Universities & Talent

#15 in

the overall quality of

infrastructure

The greatest number of

investments and jobs

created in the country

#24 in the air transport

infrastructure #1 University in Portugal

#9 Country - Smallest impact of crime

and violence in business activities

INTERNATIONAL ACCESSIBILITY

Porto has the second

biggest airport in Portugal

Infrastructures

SOCIAL ATTRACTIVENESS


#ReadySetGrowMain challenges for Global Business Services

DELIVER WITH EFFICIENCY AND QUALITY

INCREASE BUSINESS SCOPE

ADOPTION OF NEW TECHNOLOGIES

TALENT MANAGEMENT


#ReadySetGrowEfficiency and Service Quality

1,7

1,9

3

3,2

3,8

3,8

5,1

5,4

Anticipating Business Unit needs

Providing non-routine services

Staff knowledge of Business Unit objectives

Staff knowledge of multiple Shared Service

processses

Reacting to Business Unit Requests

Providing routine services

Timeliness of response

Cost of Services

CUSTOMER NEEDS AND SERVICE QUALITY

COST OF SERVICE(ranked 2nd in 2013)

TIMELINESS OF RESPONSE(ranked 1st in 2013)

Source: 2017 Global Shared Services Survey


#ReadySetGrowTalent Management


21%

23%

24%

10%

22%

Less than 5%

5% to less than 10%

10% to less than 15%

15% to less than 20%

20% and greater

35%

43%

45%

46%

51%

62%

62%

Focus on building company brand /

reputation

Financial support for continuing

education

Perfromance based pay (e.g., variable

bonuses)

Job rotation outside of na SSC into other

areas of the business

Job sharing / flexible work practices

Multi-function opportunities

Focus on developing strong culture

EMPLOYEE TURNOVER APPROACHES TO RETAIN SSC EMPLOYEES


#ReadySetGrowAdoption of new technologies

3,3

4,3

4,4

4,6

4,7

Implement artificial intelligence tools

Implement robotics & process automation

Leverage cloud computing

Use other niche "bolt-on" tools to core system

Enhance current ERP / Core system

AUTOMATION DATA ANALYTICS


Main Challenges from companies using Analytics

53%

52%

42%

40%

28%

26%

22%

Data reliability and

consistency

Supporting technology

platform

Understanding of business

background

Access to skilled talent

Securing financial resources

for required investment

Data availability

Absence of leadership focus


#ReadySetGrowBusiness Scope Consolidation

33%

27%

19%

21%

GEOGRAPHIC COVERAGE

LocalGlobal

Multi

Regional

Regional

69% Multi-functional SSCs (two or more functions within the same center)

Main functions included in the SSCs

Finance

Human Resources

Information Technology

61% of the organizations consider

their collection of SSCs and outsourcing to be a GBS organization

> 50%of those have a reporting Line to the Head of GBS

Traditional back-office functions

SCOPE OF SHARED SERVICES ORGANIZATION

FUNCTIONS COVERAGE

3%

31%

16%

38%

12%More than 10 functions

1 function

2 functions

3 to 5 functions

6 to 10 functionsSource: 2017 Global Shared Services Survey


GB

S M

atu

rity

Jo

urn

ey

LeadingMature GBS & COEs, single cross-functional governance, run like a business, multi-functional, global standardisation

PracticingValued added SSC / Outsourcing, limited cross-functional governance, multi-functional, increased co-location

DevelopingTransactional SSC / Outsourcing, limited governance and customer alignment, individual functions managed in discrete SSCs

LimitedDecentralised operations, no governance, inconsistent and inefficient processes

Decentralized/ fragmented

Co-ordinated in-house Practices

Transactional Captive SSC

Valued added SSC and/or outsourcing

Centers of Excellence

Global Business Services

#ReadySetGrowOrganizational and Scope Trends


#ReadySetGrowThese trends bring challenges in stages of the GBS / SSC evolution

#SETstructure set-up and

operations

Analyze the particular

challenges of operations at the

level of Human Capital, and

the solutions so that the focus

on operational efficiency

(quality and level of service is

maintained)

#GROWoptimize and extend

operations

Boost the scope of action

based on the support tools

that guarantee the

continuous optimization of

the activity (e.g. RPA,

Advanced Analytics, Service

Design)

#READYdefine and support

investment

Opportunities to accelerate

the organization start-up

process as well as benefit from

fiscal optimization

associated with the moment

of implementation

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13

#ReadySetGrow

14© 2018. Para informações, contacte Deloitte Consultores, SA

READY


READYGet to Invest – Highlights of the Portuguese Tax System

CORPORATE TAX

21% Standard corporate tax

Municipal surchargeLevied on taxable profits at a maximum rate of 1.5%

State surchargeLevied on taxable profits at a rate up to 9%

Tax losses for CIT may be carried forward for 5 years 5 years

No Net Wealth taxNo Capital Duty

PERSONAL TAXATION

Resident individuals are taxed on their worldwide income and nonresidents are taxed only on their Portuguese-source income

Investment and real estate income and capital gains on securities (remain income is taxed at progressive rates up to 48%)

28%

Value added activities for non-habitual resident individuals 20%

VAT generally is levied on the supply of goods and services, and on importsNonresident suppliers generally are required to register for VAT in Portugal

Rate Mainland Madeira Azores

Standard 23% 22% 18%

Intermediate 13% 12% 9%

Reduced 6% 5% 4%

© 2018. Para informações, contacte Deloitte Consultores, SA

READYGet to Invest – Highlights of the Portuguese Tax System

Tax Structuring

• Formal / legal structure

• Funding options

• Outflows: dividends, interest,

royalties, services

• Inflows: services and goods

Tax Efficiency

• Corporate reorganizations:

exemptions from Corporate Income

Tax, Real Estate Transfer Tax, Stamp

Duty and Legal Fees

• Participation exemption: dividends

paid to foreign shareholding

• Patent box: up to 50% of income

derived from the licensing of

patents, designs and industrial

models

• Foreign branch exemption

Tax Benefits

• Reinvestment of retained earnings

• Active Employment Measures (Financial Incentives (OPEX) and tax incentives (Social Security)

• CFI – Investment Tax Code (Fiscal Incentives (CAPEX)


READYGet to Invest – Where?

Real Estate market insights

Porto Metropolitan Area

2,040 Km2

Population

1,700,000

56,306 students, of witch 5,890are international students

27 airlines reach Porto, with

more than 60 destinations

North RegionUnemployment rate

7,2%Built to suit

Real Estate as a service

First movers

In 6 projects until 2019

80,000 sqm in Pipeline

16,000sqm

BNP Paribas12,000sqm

Natixis

Existing office space

1,45M sqmeters

Average rent per sqm

13€/sqm

Going EastCity strategy

Porto


SET


SETDelivering experience – Support Processes

Contract Personnel CenterBus i n e s s

• General accounting • Accounts payable• Accounts receivable• Billing and collections• Financial reporting

• Payroll administration• HR administration• Rewards

administration

• Data entries• Reconciliations• Other administrative

tasks

Senior/Junior experience

• Accounting and Management

• Tax compliance

• P2P, R2R, O2C

• Masterdata, Procurement

• ERP Tools (SAP, Oracle, Navision, etc.)

• English skills

Nearshore Projects

Tools & Methodologies

RPA Automation

Re

mo

te A

ccess

Deloitte Hub

Competitiveness

Experience

Depending on the number of FTEs, contract duration, tasks and profiles, our pricing starts at a competitive level


SETDelivering experience – Support Processes

myInsight


SETDelivering experience – Training and Development

Using Science to Improve the Art of Relationships

02 03 0401

• Facilitation vs. Presentation

• Managing a whole group discussion

• Best impact with visual aids

• Personal impact

• Intermediate level

• Advanced level• Basic concepts (assets,

liabilities, etc.)

• Billing, Intercompany, Collections, Cash Application,

• Exercises (Client reality)

Train the Trainer

Excel

SAP

Accounting for Non-Accountants

Business Chemistry


SETDelivering experience – Business Chemistry

Using Science to Improve the Art of Relationships

Expressly designed for use in a business context, Business Chemistry®

draws upon the latest analytics technologies to reveal four scientifically based patterns of behavior.

The system is designed to provide insights about individuals and teams based on observable traits and preferences. Deloitte teamed with scientists from the fields of neuro-anthropology and genetics to develop a system that leverages modern

computational techniques to bring a data-driven approach to observing and understanding differences in people’s business styles.

The resulting system is easy to remember, but with a sophisticated underpinning that highlights statistically relevant behavioral cues in a business environment.


SETContinuous Improvement & Performance


GROW


Analytics

GROWTechnology Enablers

Robotic ProcessAutomation (RPA)

Service Design

SSC / GBS organizations are increasingly viewed as incubators for innovation, particularly around new technologies and capabilities like predictive analytics, visualization, robotics, and cognitive computing.

When we’re talking about technologies that are intended to drive efficiencies, or even business partnering effectiveness, SSC / GBS is a natural starting point within many organizations.


Applications may remain unchanged

Note: Robots are implemented in the current IT infrastructure, according to predefined rules and procedures

ERP

MS Outlook

Document Management

MS Excel

Others

Web applications

Robotics solutions are based on software that allows to:

Automatize processes, without requiring system changes

Configure robots in a quick and agile way

Replicate tasks executed manually by the employees (repetitive rules-based tasks)

GROWDisruptive Technologies – Robotic Process Automation

Integration and automation at the user interface level


GROWRobotic Process Automation Benefits main benefits

EFFICIENCY / COST REDUCTION

• Increase of work capacity with lower costs:

‒ A robot works 168 hours per week while one FTE works 40 hours

‒ A robot represents a substantially lower cost than one FTE

INCREASE OF QUALITY AND ERRORS MITIGATION

• Reduces manual intervention and the number of employees between 20% and 60 %

• Reduces human errors (between 80% and 99%)

• Continuous operational cycle without productivitybreaks

AUDITABILITY

• Logging of all activities executed

• Explore analytical information in order to improve the process

• Control of occurrences in order to act quickly

FLEXIBILITY / MULTITASKING

• Several routine tasksexecution with each robot

• Processes and robots flexible activation / deactivation

EMPLOYEES MOTIVATION

• Human Resources strategic realignment

• New Competencies development

ON PREMISE ON CLOUD AS A SERVICE (RPAaS)


GROWRobotic Process Automation Deloitte Survey Septembre 2018 - #worktodo

53% of respondents have already started their RPA journey. This is expected to increase to 72% in the next two years.

The benefits of RPA adoption are significant. Payback was reported at less than 12 months, with an average 20% of full-time equivalent (FTE) capacity provided by robots.

78% of those who have already implemented RPA expect to significantly increase investment in RPA over the next three years, yet scaling RPA is clearly proving more difficult than anticipated: only 3% of organizations have scaled their digital workforce.


GROWRobotic Process Automation is an early stage of robotization. Combining cognitive and learning capacities, we create solutions capable of simulating interaction and human decision-making

Cognitive Solutions: Main Capabilities

BUnderstanding concepts based on contextual signals

CFormulation of hypotheses and application of rules to support decision making

DUse of writing, voice and images for assimilation and elaboration of images

AContinuous learning and performance improvements based on experience

ECorrelation of relevant concepts and variables

Enablers

Semantic Computing/ Ontology

Text Analytics Engine

Natural Language Processing

B

Natural Language Generation

Textual Entailment

Augmented / Virtual Reality

Speech Synthesis

E

Machine Learning

Reinforcement LearningA

Image Recognition

Handwriting Recognition

Voice Recognition

Information RetrievalD

Probabilistic Inference

Rules-Based Engine

Virtual Decision AdvisingC


GROWAnalytics capabilities are mostly being used to provide aggregate information, with few SSC / GBS to be used for predictive purposes

Analytics Maturity Curve for SSC / GBS

Source: Analytics in GBS and Shared Services

Embedding Analytics into

SSC/GBS operations to improve

efficiency

Leveraging data travelling through

the SSC/GBS to feed insight back to

the business

Optimising IT infrastructure and

cloud computing investments to

provide Data as a Service

Using Analytics to optimise

hybrid/outsourcing structures to

drive measurable value and

innovation

Taking ownership of the enterprise

wide analytics agenda / developing

an analytics CoE within SSC/GBS

structure

Operational efficiency in your SSC

Providing insight back to business

Optimising and leveraging IT

infrastructure

Remodeling service delivery through

innovation

Analytics ownership by the SSC

Analytics maturity curve


GROWCritical success factors / challenges to consider when implementing Analytics

Implementation success factors

• Need for specific know-how of various businesses

• Expectation management (analytics does not solve

all problems, and is a gradual implementation

process)

• Planning and scope definition - focus on key

business factors, not all information is useful to

management

• Establish governance solutions, taking into account

the changes


70%

60%

53%

36%

35%

Provide requested reports to the enterprise

Gather and aggregate enterprise data

Analyse historical data to discover trends

Develop & deliver insights to help leaders run the

business more effectively

Perform predictive analytics and/or optimization


GROWGlobal leading SSC / GBS organizations continue to move up the value chain, beyond the traditional transaction processing work that they were founded upon

SERVICEDELIVERY

CUSTOMER EXPERIENCE

VALUE CREATION

How can we automate to

eliminate exceptions and manual effort?

How can we improve the customer experience and insight?

How can we add value to the organisation beyond cost

reduction?

RPA, Cognitive

Process Specific Technologies

Single Instance ERP

Experience

personalizes and consistent

Insights

Proactive and predictive

Speed

Became agile and scalable

Higher Value Process

Business Partnering

Business Analytics

CoE for Digital Transformation

Global Workforce Management


GROWService Design examines value and experience from multi-user perspective (customer, employer, agent, technology and business)


GROWService Design supports the convergence of technology and talent models opening new opportunities and value creation along the SSC/GBS and organizations

Who can do the work?Technological advancements enabling

new models for interaction between

companies, employees, and customers…

WORKFORCE

What work can be automated?Increasing automation over the next

10-20 years…

WORK

Where is the work done?Rethinking combinations of talent,

technology and workplace…

WORKPLACE

Automation Level

Physical Proximity

Talent Category

Current work options

Future work options


SHARINGEXPERIENCES


#SHARING EXPERIENCESChallenges to be discussed

#SET

Talent Chemistry

Training

…

#GROW

Robotic Process Automation

Analytics

Service Design

#READY

Location

Investment Optimization

Tax Optimization

Ready, Set, GrowExecutive Breakfast November 30th 2018

© 2018. Para informações, contacte Deloitte Consultores, S.A.

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Ready, Set, Grow - Deloitte United States · on observable traits and preferences. Deloitte teamed with scientists from Deloitte teamed with scientists from the fields of neuro-anthropology