Business Processes to Business Performance (BP to BP) By Sanjeev Varma CEO Steria (India)

1.  www.steria.com/in
 www.steria.com/in
3rd National Shared Services Conclave
25 Oct 2013
Business Processes to Business Performance (BP to BP)

2.  www.steria.com/inIndustry shifting gears from Business Processes to
Business Performance Management
 The industry has seen a steady movement from cost, quality, and productivity in early
2000 to specialisation, process reengineering and technology-enabled platforms in
2012
 The industry now provides platform multi-tenancy, non-linear growth, and a business
outcome-based revenue model instead of the earlier model of achieving operational
SLAs
 There is an increased depth and breadth of services with multifaceted offerings...
 Such as data analysis and real-time processing and more end-to-end services like
consulting, business transformation and optimisation
 Value-added solutions with process optimisation, & engineering and technology-enabled
platforms like cloud computing, social media, mobility, etc.
 Industry has matured, providing 360o services that have resulted in its increasing its
sphere of influence among clients
The shift will give the identity of being a full-service value provider rather than an
industry that plays only in the lower-end of the services spectrum

3.  www.steria.com/in
The shift over the years…
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1995- 2000
Emphasis on cost
effectiveness and
productivity
2000-05
Emphasis on greater
depth and breath while
embracing the
“globalization” of delivery
capacity
2005-12
Emphasis on values
added end-to-end
solutions and inclusive
growth in Tier II and III
cities
2012 and beyond
Emphasis on platform,
multi-tenancy, non-linear
revenue growth and
utilization of same
resources across multiple
clients
 Cost
 Quality
 Productivity
 Era of GICs
 Real-time processing
and voice
 Multi faceted service
offerings
 Era of 3rd party
offshoring
 Specialization
 Process re-
engineering
 Technology enabled
platforms
Transferring basic data entry
work to low cost locations
such as India
Disruptive Innovation Productivity Improvement / Innovation Disruptive Innovation
Even though work continued to come to low cost destinations with
addition to new locations such as Philippines and Brazil , it would
still not be count as disruptive innovation
We are at the threshold of another wave of disruptive innovation which posses the ability to create new markets, brands and
value propositions
Shared
Services

4.  www.steria.com/inIndian contact centres are evolving from cost to
profit centres – Effecting revenue growth for clients
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Category Details Case Examples
Cross-selling and
upselling
 Cross-sell - Customer comes
to buy something and a
completely different product (not
similar) is sold
 Upsell - Customer comes to
buy something and is sold a
similar but more expensive
product
 Platforms assist an agent reading a scripted offer for a product to the
customers at the end of sales and service calls
 Interested customers are transferred to the advertiser's call centre and the
firm is paid for the customer referral
 It monetises the contact centre and increases a firms' revenue, while
engaging the customers with product offers that they want and appreciate
Customer insight
 Analytics and data mining of
customer data
 Platforms help organisations gain actionable customer insights
 They maintain a clear view of customer experiences, the service quality
delivered and handling of customer concerns
 Firms can improve customer experience, reduce costs and increase
revenues across products, processes, customer channels and agent
performance
Prevent revenue
leakage
 A customer faces revenue
leakage as a result of
inefficient process, and
inability to identify the
problem area
 Platforms provide an audit of airline's fares, sales and usage data against
pre-defined rules and logic
 Identifies discrepancies throughout the revenue lifecycle, monitors agent
behaviour from booking through ticketing, uplift and usage, exchange and
refunds preventing revenue leakage
Technology
enhancement
 Virtual contact centre and
shared resources
 Platforms increase capacity, quality and performance without additional
capital expense
 Include scalable contact center platform, on-demand CRM and technology
and management tools

5.  www.steria.com/in
Customer Interaction Centres (CIS) are also
evolving to business transformation/performance
centres
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6.  www.steria.com/inPricing models shift from – traditional effort-based to
outcome-based, emphasis on driving non-linearity
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Effort Based
Pricing
Transaction Based
Pricing
Outcome Based
Pricing
 Traditional effort-based pricing models are no longer preferred as buyers and service providers move
towards an output-based - directly linked to the outcome.
 Also, from a staff augmentation mode, there is steady movement to a shared services model where the
service provider provides a defined outcome, typically on a fixed price basis

7.  www.steria.com/in
 www.steria.com/in
Steria Shared Services - Success Stories

8.  www.steria.com/in
NHS Shared Business Services - Success Story
 NHS SBS, 50:50 JV between Steria and Department of Health, UK offers a wide range of innovative and
reliable back office services to more than 40% of the NHS
 Based on sharing services with NHS trusts, this JV has established an innovative model for the delivery
of public sector business processes and has targeted areas such as Finance and Accounting, Payroll, HR,
Family Health Services and NHS Procurement
 Key Highlights of the project
 Each Trust typically makes cost savings of 20% to 40%
 NHS SBS named UK Central Government Supplier of the Year in March 2011
 Processing 4 million invoices p.a. | £35 billion payments p.a. | 2.5 million payroll transactions p.a.
 NHS SBS has made huge progress since it was created and has changed the perception of shared
services and outsourcing in the public sector.
 The business is regularly benchmarked against leading companies in the private sector and has been
acknowledged as World Class for the second year running by benchmarking specialists, the Hackett
group
Enabling savings of £250 million…

9.  www.steria.com/inCleveland Police & Steria shared services
partnership
 Steria and Cleveland Police Authority (CPA) in partnership for delivery of the Force’s
control room, community justice and back-office functions through a shared service model
 Key Services to CPA
 Preparation of criminal case files
 Crime management
 Risk and operational planning
 Shared services including finance, HR, payroll, commissioning and fleet management
 Key Highlights
 Benefiting 2,200 employees and local community
 40 transformation projects
 500 police staff transferred to Steria
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Enabling £70 million in cashable savings…
…over 10 years

10.  www.steria.com/inSteria partnership with Welwyn Hatfield Borough
Council
 Key Highlights
 97.8% of Council Tax - an increase of 0.20%
 11% improvement in the average time
process new benefits claims
 29% improvement in the average time
process change of circumstances
 91.1% of switchboard calls answered within
14 seconds, higher than the target of 80%
 Services to Welwyn Hafield Borough Council
 ICT
 Council tax
 Benefits
 Customer contact centre
 Reception and switchboard services
Improving efficiencies and provide better services
for Welwyn Hatfield's 100,000 citizens and ensure a
projected saving per annum