Solution Brief: Enterprise Compliance Management

Transcription

1 Solution Brief: Enterprise Management What is your true state of compliance? Companies today face a myriad of regulatory requirements that have been imposed by state and federal agencies, Sarbanes-Oxley (SOX), Health Insurance Portability and Accounting Act (HIPAA), SEC 17a4, Gramm-Leach-Bliley; more regulation is a certainty. Failure to comply could lead to criminal penalties or jail time for certain executives and loss of brand image or market capitalization for the organization. At the same time, compliance costs for auditing, testing, remediation and reporting are high with little relief in sight. Many organizations have spent significant amounts of money on compliance, yielding few tangible benefits beyond passing audits. They are realizing that, while passing audits is important, they are not seeing any other hard benefits from their investments. They are also beginning to understand that merely passing an audit does not ensure that the critical processes and technical capabilities are in place to prevent all inaccurate reporting, misconduct and fraud. If you are one of the many who have invested heavily and are not seeing a return on your compliance investment, you are not alone. With extensive experience in enterprise compliance assessment, planning, implementation and support, Fujitsu Consulting can help companies enhance the effectiveness and efficiency of their compliance frameworks while maximizing financial performance and minimizing the risk of failure. To see tangible benefits from this investment, you need to develop a suitable compliance strategy backed by an implementation plan. This strategy should take into consideration how you will appropriate funds for your compliance efforts, how you can create a baseline compliance capability that instills a culture of compliance within your organization, and how you can leverage these efforts to improve other facets of your organization. One critical leverage-point is the need to integrate compliance with records and . Consider the following from Cohasset Associates: An overwhelming 93% of companies believe the process by which they manage electronic records will be important in future litigation, yet 62% do not believe they could defend their own electronic records in court. Failure to address records and from a compliance perspective has resulted in civil penalties and fines. Major banks and brokerage firms have already seen penalties in the tens of millions stemming from failure to preserve and present pertinent records and . FUJITSU CONSULTING

2 Working Towards A Solution Many of today s executives are faced with the dilemma of reconciling, on one hand, the effectiveness and efficiency of their compliance frameworks with, on the other, imperatives for maximizing financial performance and minimizing the cost of failure. Goals include: Decrease the cost of compliance most companies spend around 1% of revenue annually on compliance while world-class organizations spend only 0.067%, a significant difference over the years Reduce the risk of failure fortunes can be lost in fines, judgments and restatements of earnings Increase operational efficiencies store only the records you need, improve the quality and speed of records retrieval, dispose of records when legally appropriate However, rapid and certain relief is possible through a program that involves three key stages: assessment of your current compliance framework, followed by stabilization and optimization. Solution Offerings Fujitsu Consulting offers a continuum of integrated Enterprise Management service offerings designed to help companies maximize the performance of their compliance frameworks while reducing operating costs and the risk of failure. Enterprise Management framework Why Fujitsu Consulting? Fujitsu Consulting starts with a business focus we do not throw technology at the problem. First, we develop an understanding of the strategy, people, process and organizational components of the particular opportunity, then leverage technology to deliver results. Backed by a technology-focused corporation, Fujitsu Consulting offers a broad range of solutions for the enterprise, encompassing hardware, software, services and consulting. These solutions can be delivered anywhere in North America. All services are based on world-class Macroscope methodologies, with a results-oriented focus that helps ensure you will not merely implement a system, you will achieve the results you desire. Our Approach Fujitsu offers a portfolio of Enterprise Management solutions that can assist companies at all levels of compliance maturity. Many companies start with an assessment that allows them to better define their compliance strategy and helps them understand how to leverage compliance enterprise-wide, how much investment will be required and what the payback will be. Others already have a rudimentary compliance capability in place but wish to stabilize that capability so they can be assured that they can sustain compliance as new systems are developed and new laws passed. Still others have a relatively stable compliance capability but wish to explore opportunities to better leverage their investment.

3 The following sections provide more information on the Fujitsu Consulting portfolio of Enterprise solutions. Macroscope Methodology Macroscope delivers an integrated suite of business and information technology methodologies designed to help companies roll out higher quality application systems, in less time, at a lower cost. Macroscope contains a repository of best practices that can be used to design, implement and manage change initiatives such as strategic business and IT planning, business transformation, IT architecture, applications and systems development, deployment and maintenance and benefits realization. Macroscope encapsulates more than 30 years of know-how and is the foundation of all of Fujitsu service offerings, reducing risk for clients by adhering to a results-based approach that our consultants can deliver with predictable and consistent high quality. Companies using Macroscope include Boeing, Air France, Hydro-Quebec, PEMCO Corporation and Recreational Equipment Inc. (REI). Enterprise Management framework Current state assessment - People - Process - Organization - Technology Trends analysis value case roadmap program plan Migration strategy Target architecture Establishing A Baseline Many companies have gone through the exercise of defining key compliance processes and identifying control points. They have succeeded in passing just their initial audits. However, few have the people, process, organizational and technology components in place to sustain and leverage these efforts. Worse, few understand the total cost of failure: what happens if that key piece of evidence the lawyer needs cannot be found? What if the books are still inaccurate? Is the company s brand image protected? An assessment directed by Fujitsu Consulting can help companies understand what is currently going on within their compliance frameworks.

4 Our consultants can: Assess your current state of compliance using pre-defined templates (more than 30 available) Identify key gaps in the areas of people, processes, organization and technology Review what other industry stalwarts are doing and introduce best practices Build a business case so that appropriate levels of funding can be obtained to carry out improvements Create a high-level measurement plan, identifying linkages between key initiatives and the outcomes that must be realized Design a high-level enterprise architecture, featuring a service-oriented approach Develop a phased plan for the migration of particular parts of the business to the new architecture I ve never seen an executive team offer up such unsolicited praise and agree so quickly and unanimously to a recommendation. Your assessment process was rock-solid, you gave us the right information to make difficult decisions and enabled us to get the funding to move this critical effort forward despite tight fiscal constraints. I m ecstatic with the results. Director, major manufacturer in the Southeast U.S. Enterprise Management framework Organization design and development Process and policy definition Training/ education automation Records integration

5 Removing Uncertainty After defining a strategy and getting the business case approved, the next step is stabilizing your compliance framework. The stabilization program we offer can alleviate many concerns; Fujitsu Consulting can: Develop an organizational model identifying the people responsible for compliance and their interaction within the enterprise, ensuring adequate governance, leadership and accountability Identify and develop key processes, and create the process flowcharts, control points, file plans and other deliverables needed to ensure consistency across the enterprise Train your people on newly-implemented policies, procedures and platforms, ensuring that everyone is aware what is expected of them; Automate key activities (such as control point testing, monitoring and reporting), simplifying tasks that are too costly, time-consuming or complex to be performed manually Define record functionality so that information can be made available as needed across the enterprise, ensuring that compliance records are suitably and consistently created, stored, retrieved and discarded. Enterprise Management framework COE governance Design, build and run capabilities Enterprise architecture Change Enterprise content integration Phased compliance rollout Process automation/ harmonization operations outsourcing Application value assessment Application IT service Taking It To The Next Level While stabilizing their compliance capability, companies focus on compliance-related processes; they tend to be fairly reactive. They typically do not dedicate the time and money needed to address enterprise-level challenges such as saving the wrong or too much data, eliminating redundant or obsolete systems, or harmonizing and automating processes enterprise-wide. As a result, storage costs for physical records may remain high; duplicate and incompatible systems may remain in place; and processes may still be sub-optimal. Fujitsu consultants can address these concerns and help you take your compliance framework to the next level through. Note that the optimizations just described could apply just as easily to an enterprise content framework.

6 leverages the expertise gained during stabilization to create a proactive compliance capability and drive process improvement and cost reductions throughout your organization. A best practice to help you optimize your compliance framework is the creation of a (CoE), which can turn optimization into an ongoing initiative that focuses on high-risk mitigation and enhanced return on investment. The CoE consolidates skill sets and responsibilities for the plan, design, build and run capabilities needed to work across departments or divisions to achieve a broad range of optimization goals. These include: Harmonize and integrate processes Design and automate integrated business processes and workflows Implement a service-oriented architecture Build in proactive risk Consolidate systems and platforms Reduce unnecessary record and data capture Optimize storage for performance and cost Reduce overall support and operations costs While a CoE may not be essential for achieving these goals, it can create critical mass, concentrating skilled resources, knowledge, reusability, focus and accountability in a single area. In its most mature state, the CoE becomes self funded, contracting within and outside the organization to provide high value, enterprise-wide consulting and implementation services. This is a challenging undertaking but, if implemented correctly, can leverage the skills, tools and experience gained in earlier compliance efforts to transform the way your organization operates. But what does optimization cost? You will be relieved to learn that Fujitsu can reduce the overall cost of operating and supporting your compliance framework through options that include: Moving development and support capabilities to a Fujitsu service center onshore, near-shore or offshore Working with in-house IT staff to perform a Application Portfolio that assesses all applications in your compliance portfolio, determining if they may need to be upgraded, consolidated, refined or eliminated Using the IT Infrastructure Library (ITIL) standard to identify key issues and improve the quality and cost of IT services and support Conclusions The Fujitsu Enterprise Management framework offers a complete solution for your compliance needs, regardless of the maturity of your current framework. Our strategic approach offers you stability in less time while positioning you to leverage your investment in compliance enterprise-wide. Since all organizations will be required to continue investing in compliance, the question becomes: Will this spending be myopic or strategic? Those viewing compliance as a necessary evil will continue to focus on passing their audits and are likely to realize few additional tangible benefits. Those viewing compliance as an opportunity will leverage their investment and experience to develop powerful, lasting capabilities that will serve them well into the future.

7 Free consultation Fujitsu Consulting offers a free, no-obligation consultation for qualified prospects. We will work with you and your team to determine how to: Headquarters & United States 333 Thornall Street Edison, NJ United States Tel: Fax: Assess your current state of compliance Take the cost and risk out of compliance Leverage your compliance investment enterprise-wide More Information For more information on the regulatory compliance services offered by Fujitsu, please contact: Canada Simcoe Place 200 Front Street West Suite 2300 Toronto, Ontario Canada M5V 3K2 Tel: Fax: Chris Torkelson Vice President, Information Management Fujitsu Consulting chris.torkelson@ us.fujitsu.com Quebec 1000 Sherbrooke Street West Suite 1400 Montreal, Quebec Canada H3A 3R2 Tel: Fax: Experience the Fujitsu Consulting Difference A trusted provider of and technology consulting to business and government, Fujitsu Consulting is the North American consulting and services arm of the $44.5-billion Fujitsu group. Fujitsu Consulting integrates the core expertise of the Fujitsu companies and its partners to deliver complete business solutions in the areas of IT governance, information, legacy systems modernization and application outsourcing. Through its full range of consulting, implementation and IT services and its industry-recognized strategic approach, Macroscope, Fujitsu Consulting enables clients to build more value into their IT investments and drive their leadership in the marketplace. We work with you to create solutions and produce results that drive your business. 2005, Fujitsu Consulting, Inc. Macroscope is a registered trademark of Fujitsu Consulting (Canada) Inc. All rights reserved.