Leveraging Transformation

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Leveraging Transformation Operational
Excellence in ITes IndustryASSOCHAM

• K.V.Rama Mohan
  20 December, 2006

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The Infosys BPO Story
Eliminate work
Do it differently
Do it better

• Established in 2002, rapid organic growth
• Focus on end-to-end outsourcing
• Today among Top 10 third party BPOs in India
  Operations in India, Czech Republic, Philippines
  (through a partner), China

Transformation gains
Do it cheaper
Transformational BPO
Efficiency gains
Cost gains
The Infosys BPO transformation promise
Revenues, m
Customers
Employees
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Our focus areas - horizontals
Contd.
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Our focus areas - verticals
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Representative clients
Global Commodity Manufacturer
Large Global Custodian (US/EU)
Investment Manager (US)
Mortgage Bank (US)
Accounts Payables Accounts Receivables General
Ledger Fixed Asset Accounting
Asset/Cash Recon, Trade Settlements, Corporate
Actions, Sub-custodian fee billing, Tax reclaim,
AP, Stock transfer
Employee administrative services like Defined
Benefits, Defined Contributions, Health and
Welfare, Payroll
Mortgage loan underwriting, document preparation,
post closing and servicing, including customer
care and queries
Global Office Services Provider
A world leader in a primary metal
Leading Telecom Provider (UK)
Global Hi-tech manufacturer
Customer service and support Revenue
Assurance Accounts Payables
Inventory Purchasing Low Value Buying Expediting B
lanket Purchase Order Maintenance
Directory Inquiry Services Fault Line
Reporting Post-service Customer satisfaction New
business acquisitions
Sales Order Management Sales Support HR
Administration, Helpdesk Legal Administration
Global Investment bank (UK)
US based Car Rental Company
Investment bank (US/UK)
Insurance arm of a re-insurance co.
Credit Analysis Fixed Income Research Economic
Analysis Industry analysis Company analysis
Accounts Payables Accounts Receivables Billing Col
lections
Stock and Cash reconciliation, reference data
management, preliminary research and presentation
Underwriting of Property, Excess, MGA lines of
business, All rule based underwriting including
new and renewal
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Transforming the client's operations is the end
state of our operations excellence vision

• Integrate technology capabilities to eliminate
  work
• STP (Straight through processing)
• Value added reporting / analytics
• Business assurance

Eliminate Work
Transformation

• Process backboning
• Six sigma
• Benchmarking
• Technology augmentation

Do it differently

• Role reengineering
• Shop floor automation
• STAR
• Process org restructuring
• Inter Intra industry best practices

Do it better
Efficiency
Cost Saving

• Global delivery model (India, Czech, Australia,
  Philippines, China, LatAm)
• Front end automation
• Adaptive operating model

Do it cheaper
Processes
Functions
Products
Business
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The Business Transformation Group brings in
diverse skills to transform processes and products
BTG
TSG
Consulting
Quality
Transformation
Technology
Data Analytics
Six Sigma Methodologies
Business Process Reengineering/ STAR (Lean)
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Key Transformation Drivers and initiatives to
support them
Asset Efficiency

• Reduced cost of operations
• Leveraging committed investments
• Focus on converting fixed costs to variable
• Increased Process Efficiency through process
  improvement and technology augmentation

• Distributed processing capability and enablement
• Faster product / service / locational rollout
• Conversion from people to process dependency

Transformational BPO
Stakeholder Satisfaction
Positioning for future

• User experience
• Predictability of operations through process
  compliance and standardization
• Analytics to support customer acquisition and
  retention

• Performance visibility / dashboards
• Automated workflow and authority levels
• Regulatory (e.g. Sarbanes-Oxley) and contractual
  compliance

Compliance and Control
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Business Transformation How to reach there?
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A common understanding of Operations Excellence
is essential to ensure its implementation
Operations Excellence is Infosys BPOs roadmap to
a differentiated client experience, by
consistently exceeding service delivery metrics
and measurably transforming our clients business
Key Terms Road Map This is an ongoing journey.
There is no end-state, only milestones Differenti
ated Experience It has to be measured on the
total experience that the client has in working
with us and its impact on the clients
customers Service Delivery Metrics Exceeding
service metrics should be pegged as the minimum
delivery on client expectations Measurably
Transform Doing it better than the client and
measurably transforming the process should be the
goal (a process is Transformed only if we can
show the dollar benefit)
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The focus has to be on delighting our clients
customers

• An experience that consistently
• delights our clients customers and
• demonstrates our superior execution capability
  and transformational improvements
• WE WILL DO IT BETTER THAN HOW OUR CLIENTS DID IT

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This exercise will help us see our reflection in
the mirror

• Are We
• Truly client centric??
• Truly people centric??
• Passionate about driving excellence??
• Doing all that we can possibly do to excel in
  things that are under this groups control??

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Delivering Operations Excellence
Organization wide tool to drive Ops Excellence
Operations Excellence Management System
Operations
People
Risk
Infrastructure
Self Assessment Framework

• Monitoring telecommunications network
• H/W S/W maintenance
• Facilities management
• Employee facilities
• Transport
• Food
• Wellness center

• Floor Management
• Rostering
• Monitoring
• Capacity planning
• Quality Management
• Process Control improvement
• SLA Reporting
• Customer Portal
• Knowledge Management

• Process specific risks and mitigants
• Security
• Physical
• Data
• Network
• Disaster Recovery
• Business Continuity Planning
• Regulatory compliance

• Skill-based Recruitment
• Training Employee development
• Performance Management
• Career Planning
• Performance improvement plans
• Process Complexity Model

Governance Structure

• Perfomagic Performance Appraisal System
• Serve Centrale
• Vendor alliances

• SLATE
• I-Lite Training System
• Pro-Vista Customer Portal
• Project allocation system
• Leave System

ENABLERS
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Operations excellence is a measure of the
operations performance, excellence and Customer
Satisfaction

• OPERATIONS PERFORMANCE (Running the business)
• Measure each process and engagement on
• Are processes In Control?
• Are they Capable?
• What is the Sigma level ?
• Score on Self Assessment Framework?
• OPERATIONS EXCELLENCE (Changing the business)
• Map every process on our transformational journey
  of - Doing it Cheaper, better, Differently and
  Elimination of work
• Measure the transformation in Dollars
• CSAT Score Our Customer and their customers

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Infosys BPOs Operations Excellence Components

• Self Assessment
• Process Capability and Stability
• Transformational Dollar Savings
• CSAT
• Besides
• Methodologies (Discovery , Operations ,
  Transition) Certifications
• Risk Assessment
• Certifications
• Business Excellence

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The KEY GOALS

• BUSINESS GOALS
• Revenues and Gross Margins
• PEOPLE GOALS
• Attrition
• Internal Governance
• Team lead touch time with agents
• Team lead process certification
• Domain Training and Certification on skills
• E sat
• PROCESS GOALS
• Process Control, Stability, Capability (Sigma
  scores).
• Self certification
• External governance
• C sat

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THE KEY GOALS

• TRANSFORMATION GOALS
• Continuous improvements Six Sigma initiatives
• Client Business knowledge and drivers
• Revenue productivity
• End customer focus
• Value addition to client in terms of Dollars

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The need for iSOP Program - Infosys perspective

• To handle Growth and Scalability related
  challenges
• To manage business unit performance and its
  integration with Corporate
• For improvement in overall effectiveness and
  capabilities at organisation level
• For learning, reuse and knowledge sharing at
  organisational, business unit and personal level
• For identifying and addressing systemic issues
  within all units

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Journey To Performance Excellence
Infy
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Benchmarking Stages of improvement
World Class Recognized as the best Benchmarked
by others
Best in Class Exceeds customer expectations,outper
forms all direct competitors and has clear
competitive edge
Efficient Meets all internal requirements for
cost margins, asset utilization,cycle-time and
measures of excellence
Effective Satisfies all customer requirements
Incapable Is ineffective , inefficient and at the
risk of failing. Needs major redesign
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We believe that a successful model involves

• Multiple small steps to achieve a larger
  objective
• Benchmarking and understanding of Processes
• Multiple initiatives that include
• Continuous improvement and monitoring
• Process reengineering
• Technology Augmentation
• Participation from all stakeholders towards a
  commonly agreed goal along all stages of a BPO
  engagement
• Ongoing measurement and control of transformation
  initiatives and objectives

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Any initiative encounters multiple challenges and
it is important to understand them

• Client organization to support transformation
• Governance structure to enable the smooth
  implementation and monitoring of transformation
  initiatives
• Stakeholder buy in / Management
• Change management
• Every transformation results in change at some
  level or the other. Effective identification of
  the impact and change management capability is
  crucial
• Operational stability
• Multiple moving parts is not desirable to enable
  a focused approach to transformation
• Synergy with clients transformational initiative
• Ensure that the initiatives are in synch with
  parallel organizational initiatives
• Impact on upstream and downstream processes
• Transformation does not work in isolation, it has
  a significant impact on upstream and downstream
  processes and it is important for the
  stakeholders to be bought it
• Legal and Regulatory compliance
• Business case
• Last but not the least the initiative has to
  make commercial sense

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Good is not good where better is
expected Thomas Fuller British author
WE WILL DO IT BETTER THAN OUR CLIENTS AND
COMPETITORS
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Thank you!