Disruptors in the Back-Office:

Transcription

1 Disruptors in the Back-Office: Controlling the Chaos Canon Business Process Services Ted Ardelean Director, R&D Marketing Chris Nottelman West Region Accounts Manager sig.org/eval

2 Disruptors in the Back -Office: Controlling the Chaos Ted Ardelean Chris Nottleman October 18, 2016

3 Presented by Ted Ardelean Director R&D Marketing Chris Nottelman West Region Accounts Manager 3

4 About Canon Business Process Services, Inc. S u b s i d i a r y o f C a n o n U. S. A., a C a n o n G r o u p C o m p a n y S e r v i c e s BPO: AP, Claims Process, Auto Fin, Cr Card processing, Legal coding DPO: Imaging, Records management, Print, Mail Office Services: Reception, hospitality, A/V, Admin Services Discovery: Physical, digital, consulting, technology Workforce: Material Handling, Logistics, Administrative, Light Industrial 4, p e o p l e S e r v i c e d e l i v e r y I A O P To p G l o b a l O u t s o u r c i n g On-site, Off-site, Offshore processing L e a d e r t o centers 2016 Six-sigma process excellence methodology Customized, supplementing client technology with CBPS technology BPO Business Process Outsourcing DPO Document Process Outsourcing 4

5 Agenda 1 The back-office Trends driving change in back-office What are the disruptors? How do they impact the Back-Office Strategies to maintain order and control costs 5 Case studies, take away, and Q & A 5

6 The Back-Office Corporate Services People-interfacing activities that support core and admin functions aka: Office Services, Business Services Shared Service Centers The corporate functions such as HR, F&A, Legal, Procurement, SCM Facility Services Services related to Space & Infrastructure and to People & Organization (IFMA) 6

7 Poll question How are Corporate Services changing in your company? Decreasing # of people? Is the company strategically moving to fewer but larger locations? Is work-life an important strategy to attract workers and increase productivity? New amenities? 7

8 The disruptors in the back-office 1 Digital Business 2 Workforce demographics 3 Workplace trends 8

9 1 Digital Business Digital business means using technology in every corner of the business to create value for customers or increase operational efficiency in the rest of the business Add technology to current products FedEx SenseAware Examples Adidas MICOACH Smart Ball Create new products out of technology GE Predix Platform Use technology in the processes that make the product or service you sell Customer Portals ecommerce Websites Use technology in the processes that support the entire business (back-office) Automated data capture/extraction/validation/correction Document Management, RPA P2P Automation, Virtual Receptionist, ediscovery Digital Locker BPA Business Process Automation 9

10 1 Digital Business 64% of IT and marketing executives expect to transform their business into a digital business by the end of Gartner Group PwC 19 th Annual Global CEO Survey 10

11 2 Workforce Demographics Workforce changes Baby boomer generation retiring quickly Worker shortage Knowledge loss Culture change from analog to digital Millennials expect digital work, digital office Multiple generations present conflicting needs for employers Shift from employee to non-employee relationship anywhere from 8 to 40% of the workforce may consist of temp, contract, outsourced or shared-job employees Source: Department of Labor s Bureau of Labor Statistics (BLS) GAO R Contingent Workforce In Corporate Services average age of facilities staff is 52 60% will retire in in next 10 years There is no formal supply pipeline for FM and Administrative workers Pew Research Center What is your policy about work from home and use of non-employees? Generation Z (under 18 years old), Generation Y/Millennials (18-33 years old), Generation X (34-50 years old), Baby Boomers (51-70 years old) 11

12 3 Workplace Change Quality of life at work experience Fewer larger facilities Amenity rich White glove service rather go to work than work from home The flexible work arrangement has reduced the space per employee to 150 sq ft compared to 400 in 2005 Focus Real Estate & Facilities Management on employee engagement productivity, wellbeing Digital ways of working and tools Deskless Access to all tools and files on the go 12

13 Disruption and Impact on Back -Office Operations Digital Business Workforce Demographics Workplace Reduces number of workers Changes process dual digital - manual Demands technology skills in low level jobs Adds complexity inefficient when tech limits are hit Requires job and function redefinition Unit cost increases as physical transactions decrease New technology adds cost Capital investment will increase unless a new strategic approach is taken to sunset hardware, software and skill requirements Shortage of workers Higher training costs More challenging to support the larger, complex locations More challenging to support the smaller locations that no not have the workload for full FTEs Redefine job responsibilities More contingent workers or service providers needed Replace workers with digital solutions Requires new logistics and customer service approach Requires automation and remote services 13

14 Example When the back-office processes are not automated in sync with digital business, efficiencies are not realized. Customer inputs order on website Seller manually transcribes order into order process system ecommerce Workflow Order sent to distribution center Order fulfilled Merchandise returned Refund Credit Posted If the back-office process is not 100% digital, interfaces (manual) are usually created to complete the process. Start Digital Process End Interface Back-Office Functions Digital and Manual Process

15 Example: Typical back-office automation needed Start Digital Processes End Office Services Print/Mail Records Mgmt Interface Support Function Digital Upgrade Opportunity S&R Real Estate & Facility Mgmt Finance & Procurement Legal Virtual Reception Hoteling Collaboration AV Conferencing Office Print Security Return Mail Digitization Multi- Channel/Media Comm Automated data capture Scanning/OCR Digital Records Workflow Tracking Dynamic Rates IoT Sensing IWM Space Optimization IoT Sensing Energy Mgmt Surveillance AP Automation ACH, P-Cards Vendor Portal Digital Invoice ebilling ediscovery Case Mgmt e-filing Labor cost optimization through job pooling, cross-training Facility space optimization through outsourcing, function consolidation Efficiency and labor cost cutting through strategic use of RPA, Data Capture IWM = Integrated Workplace Management IoT = Internet of Things RPA = Robotic Process Automation 15

16 Strategies to maintain order and control costs in the Back -Office If managed in-house Consolidate functions, pool labor Outsource activities that require capital or expertise Go digital, all the way Pool contingent jobs and convert into SOW service Outsource Keep minimum essential staff on-site Move declining activities to vendor s shared services e.g. mailroom, print room, imaging, paper processing, Help Desk Use vendor hardware/software to avoid capital investment Go digital - automation, cloud, mobile, analytics Use six-sigma to improve process Tip: use service provider s 6-sigma resources if you do not have your own Let your operational data drive decisions Tip: If data is not available ask service provider for benchmark data 16

17 Case Study Customer Profile Challenge Solution Results One of the largest global oil and gas companies was moving 10,000 employees to a new 385- acre corporate campus. Ensure a smooth installation of services necessary to support employees and campus operations Plan for people, process and systems to manage everything that needs to move and make life at work enjoyable Implement a logistics process, hire the workforce to manage the day-to-day campus services, and install technology to increase efficiency and reduce costs Installed the people process and technology to provide employee services for people within 3 months Implement the logistics systems and equipment necessary to move/deliver packages, people, materials, furniture, IT hardware, food delivery, records, mail, trash, etc. Consolidate all the former back-office functions into one operation 17

18 Take away Digital business, demographics, and workplace trends are changing the structure of the back-office including the skills needed, job responsibilities, technologies, and services provided As transaction volume in the back-office decrease unit costs increase. To control costs, companies need to consolidate functions and jobs and use more automation. Digital business tends to increase the skill level required in back-office functions and add complexity to processes. Every year it is getting harder to staff and manage corporate services. Back-office functions are mature, non-core, and need investment in skills, hardware, and better technology tools. Companies are opting to outsource to ensure they have flexible labor, right skills, and technology.

19 Questions Thank you Advancing Business Performance to a Higher Level

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21 Workshop # 1 Disruptors in the Back-Office: Controlling the Chaos Speakers: Canon Business Process Services Ted Ardelean tardelean@cbps.canon.com Chris Nottleman cnottleman@cbps.canon.com Download the App: bit.ly/sigfall16 Tweet: #SIGfall16

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