The Future of Shared Services within Siemens

Transcription

1 The Future of Shared Services within Siemens Michel de Zeeuw, CEO Global Shared Services Siemens AG siemens.com/answers

2 Our vision to provide answers to the great challenges of our time Energy Sector More than 50% of the electrical power in Brazil is generated by Siemens technologies Industry Sector >80% of automobile factories in Europe use our automation and drive technologies Healthcare Sector We provided 890 million people with affordable access to advanced medical imaging Infrastructure & Cities Sector In Doha, Siemens will build the Middle East's most ecofriendly tram system 190 countries with ~ 370,000 employees and a revenue of more than 78 bn. in 2012 More than 290 major production and manufacturing plants worldwide 90,000 suppliers worldwide and ~150,000 internal customers of indirect material About 1% of Germany's jobs are directly or indirectly linked to Siemens

3 Brief overview in numbers Energy Sector Industry Sector Healthcare Sector Infrastructure & Cities Sector Resource-saving power generation Boosting industrial productivity Comprehensive patient care solutions Sustainable technologies for metropolitan areas New orders 26,881 New orders 19,985 New orders 13,806 New orders 17,150 Total rev. 27,537 Total rev. 20,508 Total rev. 13,642 Total rev. 17,585 Profit 2,159 Employees 86,000 Profit 2,467 Employees 105,000 Profit 1,815 Employees 51,000 Profit 1,102 Employees 89,000

4 Global Shared Services (GSS) is a global multifunctional organization providing services to all Siemens businesses Human Resources Services Accounting & Finance Services Supply Chain Management Services Business Solution Services ~2,550 employees ~2,450 employees ~720 employees ~580 employees 4.4 Mill. travel & exp. claims 330,000 pay checks/month Mill. AP transactions p.a. 5-6 Mill. AR transactions p.a. 400,000 purchase orders per year 12 logistic centers 2.6 Mill. calls handled in Customer Care Services 200,000 pensioners/month 27,000 expatriates (short & long term delegations) ~400 legal entities (AREs) Over 200 customer projects per year in Marketing Services across 45 regions Frimley Iselin Portugal Munich Czech Republic Bratislava China A global delivery footprint with: Orlando Cairo 5 main delivery hubs in low cost locations (Back Office) India Singapore Front and expertise office services provided through regional and country staff São Paulo Argentina Melbourne Global Delivery Center Local and Expertise Delivery Center

5 Need for change 2009 the board gave us a mandate for certain services and expressed clear expectations Status as of late 2009 Already large organization with around 4000 FTEs, broad portfolio and examples of best practices Inconsistent portfolio of regional services and no global synergies Improvement potential in quality and transparency Need for Change Requirements Create synergies on a global and cross-functional basis Reach benchmarks in cost position levels Improve quality and transparency in operations We want GSS to be part of the solution

6 The GSS roadmap outlines three steps on the way to an Innovative Solution Provider Great Services & Solutions Creating and driving innovative business solutions supporting Siemens Lift & Drop Cost reduction Quality improvement + Change Process improvement Service innovation Engage with customers Bundle mandated services Professionalize operations Develop service culture + Innovative Solutions End-to-end optimization Service solutions Improve customer experience Improve service quality and efficiency Optimize operations Develop solution competencies Transform customer experience Develop comprehensive solutions Integrated business services Enhance entrepreneurial spirit

7 Our achievements global consolidation and clear structured business responsibilities for bundling and professional operations Global Operations Delivery Hubs focus on execution Ramp up of ~1,400 in AFS and HRS 36% growth Sharing best practice, harmonization and standard IT-tools Day to day service improvement Lift and Drop AFS Accounting & FinanceServices HRS Human Resource Services Business Lines with global business responsibility Portfolio harmonization and restructuring Transition management SCMS BSS Move to transaction based pricing with standard costing structure Supply Chain Management Services BusinessSolution Services Cooperation and alignment with functional governance

8 Our achievements creating a strong service and productivity oriented culture to engage with customers and generate savings Strong customer engagement model Regional GSS heads drive customer satisfaction Implementation of monthly User Satisfaction Index Service mindset programs rolled out Standard ticketing tool across operations Lift and Drop All focus on savings Dummy data Year on year commitment to productivity savings Supported by tracking and monitoring tools Tracking of savings generated in customers P&L Savings targets linked to management incentives

9 Our achievements improving quality and transparency within processes and services Excellent Processes Customer integration Quality standards Consistent supplier management Mindset and capabilities Comprehensive qualification Continuous improvement Quality controlling Business-driven quality planning Focused quality reporting Quality Management Leadership for Quality Management involvement Control and support roles Targeting to reach World Class levels in Quality Trained above 50% of staff on quality and Six Sigma More than 300 continuous improvement projects Achieved level 3 on 5 in Level 4 (World Class) targeted for 2013/2014 Change KPI Reporting Suite IndiGO! More transparency through global KPIs One global tool for operational and strategic KPIs with drill down capabilities Worldwide rollout of framework covering all our services

10 Supported by Service Lifecycle Management* Our achievements Customer driven transformation approach for a greater customer experience Business Line Functional Guidance (SLM) and Programs e.g. PIA, Simplify, TOM Change programs driven by Business Lines Business Lines provide framework, standard, best practices, support and transparency Change Cluster Local requirements, priorities and projects Change plan is deployed locally in a collaborative approach HRS: Regional HR platforms, AskHR, policy harmonization, end to end optimization AFS: Event driven closing cockpit, e-invoicing, self billing, external benchmarking Cluster SCMS: OneSRM support, internal benchmarking/harmonization Cluster Roadmaps *Monitoring and Support, Generation Model, Maturity Assessment, Target GM, Service Improvement Plan

11 The execution of our strategy led to significant achievements over the past years Strategic Development Change Lift & Drop GSS TOP + Savings Productivity savings - GSS P&L effect Cost savings - Customer P&L effect Innovative Solutions User Satisfaction Index Customer Satisfaction Index (7,1) Satisfaction Indexes Close collaboration with functions and businesses to foster improvements Strong focus on operational performance (quality, KPIs, service mindset) FTE Revenue Revenue & Employee Development* * On comparable basis They do have a significant responsibility to help us to get Siemens 2014 to get the job done in a more effective way Joe Kaeser, President and CEO of Siemens AG

12 In our last phase our main focus will be on developing innovative solutions to support Siemens key strategic issues 1 Organizational Agility 2 Customer Experience 3 Growth and Revenue Employee on-boarding coordination to ensure first day readiness Mergers and Acquisitions Support Mobile Analytics Solutions e.g. delivery status and capacities on a mobile device HR analytics Redesign of end to end sales administration and fulfillment process Single contact for sales and after sales support and customer escalation Build call monitoring capabilities to improve customer experience One Solution for travel administration activities Provide automated information and analytics to generate more sales leads One Solution for all order and client administration activities Support new online ordering process through study of customer needs We take a broader view of Operational Excellence, providing business value to operational productivity We need to increase our capabilities: internal and external customer intimacy and business knowledge

13 Our achievements Customer driven transformation approach (in progress and on-going) Our OnBoarding Process Solutions to reduce the complexity and time to deliver GSS is now able to be accountable for the OnBoarding process end to end Business is able to begin specific job training and business unit induction more quickly Innovative Solutions Further value add by closely monitoring the overall process for quality and performance KPI s The teams were able to meet the goal of Day 1 Readiness. Reduction for OnBoarding from one month to one week Especially adding value for countries where we are hiring significantly

14 Innovation distinguishes between a leader and a follower Steve Jobs

15 Questions and Answers siemens.com/answers

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