Profitability Analysis Peter Wells Head of Projects & Delivery

Transcription

1 Profitability Analysis Peter Wells Head of Projects & Delivery

2 Agenda Introduction to Sthree PLC Addressing Business Issues The Science Bit Keys to Success What s Next?

3 Introduction to

4 Multi Brand Model Launched in 1986 Sector: ICT Launched in 1990 Sector: Engineering & Energy, Oil & Gas, Life Sciences & ICT Launched in 1995 Sector: Banking & Finance, Engineering & Energy ICT Launched in 1990 Sector: Banking & Finance, Life Sciences & ICT Launched in 2013 Sector: Enterprise Applications (SAP) Launched in 2013 Sector: Fin Services Senior Roles Contract and Permanent Staffing

5 Global Footprint 48 Offices 19 countries

6 Financial Highlights Operational Highlights: Group Headcount circa 2,500 Continued Sector Diversification 60% non ICT Strong Performance in Energy & Life Sciences 30% of GP Continued Global Expansion

7 PAP Addressing Business Issues

8 Reasons for the Project Improved Business Intelligence - Improving Profitability reporting through improved Business Intelligence aligning to Group Strategy - Provide improved data quality and reporting to support decision making, both within the finance function and across the business, including the Front Office. - This will also provide improved visibility of profitability by client to support the move towards a more customer focused strategy. Strategic Enablement - A key feature of the proposed PA solution is that it includes substantial redesign of some of the core organisational structures and objects in the SAP ERP system. The current design is a legacy of poor design decisions in the past - This has resulted in a SAP solution which is significantly constrained and not fit for purpose in the context of future expansion and management reporting currently built on top of it. - Getting these things right is vital first step to enable projects on the HR and Finance Roadmaps. Efficiency/Cost Savings: -Time savings arising from removal of manual or inefficient current activities, such as reporting, data manipulation, reconciliation, spreadsheet analysis.

9 Addressing Business Issues SAP Solution inflexible and heavily dependent on IT Difficult to deal with organisational change We can t deliver true insight for the business to make decisions that will increase profitability Strategic direction of Sthree could be negatively affected due to poor information I want to see true office and sales team profitability I can t see which parts of the business are performing well and which aren t Finance Manual Allocations of Costs time consuming & difficult to trace back Inaccurate reporting means I can put measures in place to improve profits Business Managers Sponsor (CFO) IT CEO + Directors HR HR Org Structure doesn t service HR needs due to finance & sales dependencies SAP HR Is restricting our roadmap for change Minimal Overhead allocations means I can t see true profitability. We are not leveraging our investment in technology We need standard, automated & scalable solutions to support business growth We are often seen as a blocker to change

10 Before & After From this. Switch to Cost Centre & PCM To this

11 Business Issues Addressed More flexible systems, less dependency on IT. (ECC, PCM and BOBj) Allocating costs is more automated, accurate and less time consuming Finance Our reporting delivers true insight to drive strategic Decision making I have clear and detailed information to map out the Strategic direction of Sthree CEO + Directors I can see true office and sales team profitability. I can see which parts of the business are performing and which aren t. This is a real eye opener Accurate reporting means I can put measures in place to improve profits Sponsor (CFO) The HR Org structure Is now servicing needs Business Managers IT HR SAP HR is enabling our roadmap for change Fuller, more accurate allocation of overheads means I can see my true profitability We ve started & can continue to leverage our investment in technology SAP is more standard and scalable to support business growth Sometimes we don t even need to be involved with change

12 The Science Bit

13 Technical Solution Provide Office, Team, Client, Sub-Territory profitability at a detailed level using Business Objects (v3.8) Standardise SAP structures (FICO, HCM in ECC6) to provide flexibility to support on-going business change. PCM to be used to automatically allocate costs and provide information for more detailed and accurate profitability analysis Use of SAP s recommended FIM Solution for managing data flow to and from PCM Process re-engineering to ensure capture information is accurate and efficient COPA to be used to capture more granular segmentation of sales and cost of sales (later phase and ongoing)

14 Business Objects PAP System Architecture Office P&L SD/MM 1 SD/MM Revenues ECC CO-PA HCM FICO 1 1 HCM FICO BW CO-PA Contractor Direct Costs Gross Margin 2 PCM Sales Team Direct Costs PCM FIM 3 4 Local Contribution Indirect Costs 1. Base data feeds into BW from ECC & BOBJ 2. ECC data transformed & feeds PCM 3. PCM results fed back to BW for dissemination 4. PCM Allocations provided to EDW for integration with enterprise data 5. Management Account reports produced within Business Objects MAP EDW 5 Country Contribution Head office costs (allocated) Profit Before Tax

15 Cost Allocations with PCM

16 CHOICE OF QUICK OR RICH INTERACTIVITY PDF - Group PDF Division Brand Country Sector Interactive - Group Interactive Division Brand Country Sector Interactive Team-level WebIntelligence PRESENTATION TITLE PAGE 16

17 Keys to Success

18 Project Structure & Governance Collaboration is Key

19 Keys to Success Make it about Real Business Issues Ensure you have the correct project structure & governance Ensure the right level of business involvement Collaboration with Implementation Partner and Business Change Management is key

20 What s Next?

21 What s Next? COPA Rollout increased granularity (e.g. candidate specialisms) ROAMBI Visualisation (now Live for Exec) BI Upgrade (Improving Performance, use of wider toolset) Improved Client Profitability Moving BI and ECC to the Cloud..

22 Any Questions