Travel Trends: Transparency, Standardisation and Best Practises

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• Travel Trends Transparency, Standardisation and
  Best Practises
• 2 June 2005
• Amsterdam, The Netherlands

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How Can Data Work for You?Data integration into
business processes
ModeratorJean-Michel Kadaner, President, Key
Corporate Solutions PanelHendrik
Vordenbäumen, Director Solution Management, mySAP
ERPSebastian Brandtstädter, Project Manager
Strategic Sourcing Projects, Roche Diagnostics
GmbH Peter Sijbers, Global Commodity Manager,
Philips
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What and where do we get data from / to?

• HR department
• Traveler information
• Manager Information

• Secretary
• How do I book, what my manager wants me to book
• Am I staying in policy

Tax recovery services Who was travelling
where? Original receipts
Service Provider Detailed data on delivered
service

• Controlling
• Budget
• FI Travel Costs
• SOA compliance?

Travel Department Who is where? Who is in policy?
Visa-Service Who is travelling where Travel
history
Purchasing How much did we spend with whom?
Travel agency What is the travel policy? Vendor
contracts GDS-Data

• Approver
• Policy compliance?
• My budget?
• How much did we spend?

Travel Accounting Policy compliance?
Traveler Am I in policy? How much did I
spend? How much do I get?
GDS Booking data Traveler information

• Credit Card
• Detailed data on travel
• service providers

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External data receiver / provider
Service provider
Tax recovery service
Purchasing
Internal data receiver/provider
Controlling
Travel Agency
Traveler
Insurances
HR
Bank
Secretary
Approver
Travel Expense Department
Travel Management
Travel Department
Visaservice
Credit Card Company
GDS
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Integration to Other Key Business Processes
Total value potential can only be achieved by
seamlessly integrating all critical business
processes

• Master Data
• Online Booking Profile
• Credit Cards
• Organizational Structure
• Roles/Travel Privileges
• Reimbursement

• General Ledger
• Posting to accounting
• Credit card reconciliation/payment
• Reimbursement

Human Resources
Financials
TM

• Automatic approval routing
• Confirmation of accept/reject
• Standard scenarios with flexible options

• Capture of Level 3 data of Credit Cards
• Global consolidation
• Third party data (like GDS)

Business Analytics
Workflow
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End to end process

• What is a real end-to-end process in Travel
  Management?
• Purchase to Pay
• From (online) booking, over fulfillment, to
  expense reporting, to books and records, to
  analytics and then back to online booking

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What determines a successful travel management
program?

• Efficacy How effective the processes, policies
  and pricing is relative to the intended goal
• How effectively is the travel budget being spent?
• How effective is the travel agency at obtaining
  the best rates?
• How effective are the travel policies
• Efficiency The amount of input required to
  produce a desired output
• How much time it takes an employee to make a
  travel reservation / travel expense report?
• How much does it cost to manage the travel
  management program?

Source Finding Gold in That Mountain of Data
Acte Conference Vancouver 2004
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Source Finding Gold in That Mountain of Data
Acte Conference Vancouver 2004
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Capturing and managing data
Compliance Management
Data Sources
Agency (air, hotel, car)
TE Card
ProcurementManagement
Data Repository
TE System
ERP System
Operations Management
Supplier Data
Industry Data
Scorecards
Benchmark Data
Source Finding Gold in That Mountain of Data
Acte Conference Vancouver 2004
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Compliance Management
Measurement Calculation Data source Compliance
to Agency Total Air s booked Agency
data Total Air s expensed TE data Compliance
to Airline1 Total Air s expensed on Pref. TE
data Total Air s possible to fly on
Pref. Agency/OAG Compliance to policy Total Bus
Seg. purchased TE data/Agency Total Bus Seg.
eligible Agency/OAG
1 Air denominator should remove situations where
preferred not available or not LLF
Source Finding Gold in That Mountain of Data
Acte Conference Vancouver 2004
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Operations Management
Measurement Calculation Data source Cost per
transaction Total s Paid to Agency Agency
data Total of transactions TE
data Complaint rate Total of
complaints Agency data Total number of
transactions Agency/OAG Avg. Transaction
time Total phone call time Total online
time Agency Total segments
purchased Agency
Source Finding Gold in That Mountain of Data
Acte Conference Vancouver 2004
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Procurement management
Measurement Calculation Data Source Air on
contract Total Air s booked on contract Agency
data Total Air s Expensed TE data Rate
availability of reason codes incidents Agency
data/Contract Total of transactions
eligible Agency Competitiveness of
rate Contracted Hotel rate Adv/Disadv. Contrac
t Benchmark Hotel rate Agency
Source Finding Gold in That Mountain of Data
Acte Conference Vancouver 2004
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Objective To influence Company management to
reduce travel-related expenses, and make the
company more cost-competitive
Scorecards

• Analysis
• TE Expense /FTE, of sales, trends,
  year-to-date spending vs. budgets, foreign
  exchange impacts
• Behaviours Advance booking, restricted ticket
  usage, preferred carriers, low cost carriers.
• Communication
• Identify key decision influencers and obtain
  sponsorship/support
• Present findings and opportunities
• Identify information and support needs
• Understand business situation (e.g., travel
  drivers and budget sensitivity)
• Segment audiences (job function, management
  level, traveller types, budget owners, etc.) and
  execute tactics.

• Success Model
• Set BU goals TE spending, behavioural metrics
  (e.g., advance booking )
• Appoint BU resource to track and communicate
  progress
• Benchmark against peers
• Actively track against goals
• HOW?
• Scorecards
• Monthly Letters showing
• TE progress against budgets/goals
• Lost opportunities and improvements in behaviours
  driving those savings
• Comparison against peers
• Drill down from total company to cost centre
  level on all measures
• Training and Focus Groups with segmented audiences

Source Finding Gold in That Mountain of Data
Acte Conference Vancouver 2004
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Scorecards (contd)
Source Finding Gold in That Mountain of Data
Acte Conference Vancouver 2004
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Where are we today?

• Different responsibilities
• Very heterogeneous system landscape with many
  interfaces
• Very minimal use of global MIS systems
• Many different Travel Management approaches