How Public Services Agencies can achieve better productivity and efficiency using common platform shared services framew

1. How Public Services Agencies can achieve better productivity and efficiency using common platform shared services framework Adi Budiman Industry Principal Public Services SEA Public Services Run Better With SAP

2. Agenda • Observation • Framework • Case Studies

3. Shared Services penetration growths fast

4. Why governments promote Common Platform Shared Services Increase Public Trust & Public Value Achieve Economies of Scale Resource Reallocation • Deliver consistent, responsive constituent services • Obtain best value from available resources • Improve services and service delivery while maximizing cost reductions and cost avoidance • Group similar activities and expertise for economies of scale • Aging populations mean lower tax bases, governments must prepare ahead • “Back-office” / public administration improvements allow government to improve “front-office” services • SOA feeds shared services by emphasis of interoperability and re-use of components Executives, CIO’s, Agency Heads Shared Services Value Drivers Increase Quality of Services while Cutting Costs Improve Productivity • Functional • Geographical • Organizational • Government • Contract • Outsourced • Deliver responsive, high quality, consistent, end-to-end services to all users • Implement a scalable, sustainable, and flexible IT platform for growth at incremental cost • Sustain service levels and knowledge base despite retiring workforces Scope • Enable employees to be self reliant with less administrative and IT intervention • Standardize processes based on best practices, eliminate duplicative transactions and functions Depth of integration Labor Mix Processes and IT • Harmonization • Standardization • Automation • Self Services • Make (Shared, Non-Shared) • Buy (Business Process Outsourcing)

5. Agenda • Observation • Framework • Case Studies

6. Value How Common Platform Shared Services Lower TCO & Creates Value? • Impact Shared Service Centers National Competitive Advantage • Evolve towards a lean Organization • Scale supporting process with future growth of agencies • Quick integration of cross-ministries/agencies • National shared services enables Ministries and Agencies strategic direction of efficient organic growth and acquisitions Shared Services Management • Multifunctional shared services provides an additional decrease in administration costs • Reduce cost of running shared services • Increase productivity and activity share of shared services Drive Effectiveness Multifunctional Shared Services • Best practice companies aim to cut SG&A costs by 10 to 20% with shared services • Shared services provides global transparency to improve cash flow • Improves quality and accountability with guaranteed service levels Mono-functional Shared Services • Reduce cost of doing business • Improve key financial KPIs with consolidation and harmonization Drive Efficiency Procure -ment Facility HR IT F&A

7. Solution:Enterprise process visibility and access SYSTEMS AND PROCESSES STAFF Users Technical / IT staff Functional / Process staff Financial Management Human Resources Procurement Systems and Technology Agency Agency Shared Service Center Agency Solution: Uniform, consistent, automated processes Solution:Flexible, adaptive technology platform Shared Services Delivery FrameworkEfficient Service Delivery, Transparency, Service Quality and lower TCO • Benefits • Consolidated information at government level to facilitate fact-based, informed decision-making • Common and shared performance indicators for quality assurance and business process improvement • Benefits • Enhanced service to citizens and agencies via standardization of repeatable business processes • Automation reduces risk of errors • Consolidated, one “source of truth” / single data source enables faster, accurate service Citizens / Other Authorities / Departments / Suppliers • Benefits • Lower overall TCO (Total Cost of Ownership) • Simpler and less expensive maintenance, changes and upgrades • Reduced IT complexity and acquisition, integration and development costs SAP Shared Services solutions help turn administrative functions into a service to agencies and communities, and free resources for value-add

8. Approach Applied to Multiple Administrative Functions Government Shared Services covers process automation, collaboration between process constituents and supports the quest for excellence in service quality across key lines of business within the organization CIO/Head of Solution LoB Shared Service Operation Head of SSC AGENCIES‘ HEAD Configure Administrative Processes for Shared Services Operate Administrative Processes as Shared Services Monitor and Optimize Shared Services Delivery Self-Service (Emp./Mgr./Applicant Supplier/Customer) Select service from employee self-service (portal or kiosk) Initiate request through call, dobe interactive forms or email Manager: Approve employee request via MSS Self Service Portal Shared Service Operation (Lvl 1, 2, . . ) Identify contact and purpose Review context of request Create Ticket Respond to request Automation Enablers Contact Center Monitor and OptimizeShared Service Delivery Dashboard Monitor peaks in work load Monitor SLA fulfillment FINANCE HR PROCUREMENT FACILITY MGMT IT • Infrastructure • SOA • Security • Network • Asset Management • Real Estate • Maintenance Management • Self Service Mgmt • Purchase Order Processing • Financial settlement • Public Sector tender • Supplier Relationship Management • Public Sector Finance • Manage Risk & Compliance • Grants Management • Performance Based Budgeting • Continous Performance Improvement • Improvement • Recruitment • Personnel Admin • Payroll • HCM • Self Services • Travel / Leave Management

9. Agenda • Observation • Framework • Case Studies

10. SAP for Public Sector Enables Shared Services

11. SAP® Supplier Relationship Management for Public Sector

12. Computerworld Honors • “From an organizational perspective, by instituting the COTS solution and the HR Shared Service Center, the Postal Service has realized the following benefits: • Annual savings of $50 million • Sunset of over 30 legacy standalone systems – replaced by one integrated system • Establish the USPS as a leader in HR technology, self-service and shared service center activities • Provided a standardized IT platform for more than 50 processes that will enable the USPS to further automate and re-design up to 200 additional business processes in up coming years • Created the foundation to add additional human resource functionality into HR systems • Established interoperability arrangements for USPS employee information as they move to/from other agencies” Source: Computerworld http://www.cwhonors.org/viewCaseStudy2008.asp?NominationID=723

13. Erie County, New YorkComputerworld Honors “…Erie County government designed and implemented a shared service technical infrastructure. This large effort included…applications/ERP. The ERP system has been replaced by a tier 1 system from SAP. Human resources, payroll, benefits, procurement, accounting, grants, capital and budget were implemented in 2004. An analysis of process savings performed 60 days post ERP implementation reveals $3 to $4 million of reduced annual expense. The savings were realized in the areas of payroll, human resource management, automation of the procurement process…” Source: Computerworld http://www.cwhonors.org/case_studies/ErieCountyNY.pdf

14. In conclusion: TCO savings using Common Platform Shared Services Our Customers have Achieved Significant Benefits Human Resources Procurement Finance Real-Estate Overall Cost Saving Potential IT

15. Adi Budiman Industry Principal Public Services SEA SAP Asia Pte Ltd 30 PasirPanjang Road #03-01 Singapore EAdi.Budiman@sap.com M +65- 9070 7890 Terima Kasih!