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Global Operations

Propelling Strategic Business


Growth Through a Co-ordinated
Global Business Services
Structure

Sep, 2012 - Singapore

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GBS Roadmap to 100% GE
February 2012/

General Electric - Portfolio


Technology Infrastructure

Energy Infrastructure

Jet engines and services


Rail & Marine propulsion
Healthcare
Security / Sensing/ Factory Automation

Energy products &


services
Oil & Gas
Water purification

Consumer & Industrial

GE Capital

Light bulbs
Electrical appliances
Electrical distribution

Real Estate financing


Business leasing / loans
Fleet services
Healthcare financial services
Equipment Financing
Consumer loans
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GBS Roadmap to 100% GE
February 2012/

Global Operations At a glance


GBS mission
-

To deliver a standard portfolio of world class financial services, employee services, travel and
compliance services for the GE businesses globally with a strong Compliance and Controllership
focus.

Partner with Business, Finance, and HR teams to ensure high quality and service orientation through a
network of global, regional and in-country centers.

GBS current state


Evolution

Impediments

Operate in 134 countries

Large, integrated Controllership team

Regional compliance teams

Processes managed by individual experiences

Strong GBS IT platforms

Most processes not globalizedglobally standard

Strong polar based management structure

Perception as support service vs enabling service

Strong global process rigor in areas of FP&A,

Limited metrics-based governance

HR, IT (Global Corporate Reporting)

Limited cross-pollination of ideas across poles

Large number of subscale operations (local &


regional)

Next stage of evolution : Global GBS model 2014+

Standard processes & services


Increased GGO partnership
Standard delivery model
Dedicated Financial services HQ FN
Standard reporting
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GBS Roadmap to 100% GE
February 2012/

GBS Financial Services - Direction


Product delivery model
Align low-complexity items to global
model
Use regional scale to drive regional
product delivery
Enhance in-country specific expertise
to enable growth

Service delivery thru simplification


All standard activities into GBS/BPO
back offices
Achieve economies of scale and cost
minimization

Service as a culture
Benchmark with world-class
process/cost metrics
Regular/consistent pulsing and
improvement

Key enablers right mix of global, regional and local expertise


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GBS Roadmap to 100% GE
February 2012/

Global Delivery Model Next Gen


Pankaj Ghemawats AAA strategy

Aggregation

Adaptation

Small GBS Sites (<5 FTE)


Establish GE footprint &
controls
Enhance GE DNA

Arbitrage

5-20 FTEs sites


Based on language or statutory
Regional COEs for key processes

20+ FTEs
Global economies of scale
Transfer work to LCC
Standardize Processes

GE Design
Hub Centers

Delivery Spokes

GBS customer engagement


Stat/Tax focal point
Controllership
GE vendor/customer alignment

Processing focal point


Closing and reporting management
Remote site support
Process Controllership

Big 4 skill set GE mindset


Center Leader to Controller

Transaction processing
Account reconciliations
Standard reporting
Core GL support

Accelerate IT

Attract Talent

BPO

Global ERP: Navision/Oracle/SAP


P&E and e-T&L global product
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GBS Roadmap to 100% GE
February 2012/

Standardize global delivery model


Hub Centers

Delivery Spokes

GBS customer engagement


Stat/Tax focal point
Controllership
GE vendor/customer alignment

BPO

Processing focal point


Closing and reporting management
Remote site support
Process Controllership

Transaction processing
Account reconciliations
Standard reporting
Core GL support

Delivery Model Attributes


Develop standardized core competency
Engage BPO for transactions globally
Attract talent from business & Big 4

Talent &
skillset
Customer relationship management
Customer service
Customer operations management

Global processing centers (CoEs)


Low-cost locations (hubs)
Languages requirements
Standalone vs. aggregations

2 tier to 3 tier/4 tier


Single ownershipdivided
responsibility
World class outsourced process

Customer
Relationship

Locatio
n

Infrastructure
(IT/ERP)

Service
Delivery Model

Process
re-design

Governance
& Organization

BPO

digitization & automation (workflows)


Standardize to global platforms (Nav,
SSS)

Globally integrated governance


structure
Customer relationship management
Dedicated quality organization
Governance council incl. GGO, GBS &
Biz
In-house vs. outsource
In-country vs. offshore
Hub vs CoE
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GBS Roadmap to 100% GE
February 2012/

Global delivery model - Project


Project to address 4 main components

Develop Process standards and include Enterprise standards


Engage SMEs.. obtain industry benchmarks, best practices
Extend Participation of support functions like Controllership
Create Performance monitoring standards and mechanism

Fine-tune 3 tier model of responsibilities ..Spoke, Hub & BPO


Partner with HR to define skill-sets for the new delivery model
Enrich and standardize operational governance with BPO
Trigger Change Management reqd. for Operational Alignment

Finalize Activity selection matrix (Spoke, Hub vs BPO)


Rationalize existing commercials.. create unified approach
Review and upgrade the current productivity framework

Migrate all IT needs to Global Platforms


Enable multi-location infrastructure and support
Ensure scalability during setup for enabling Growth
Enrich Functionalities to encompass future biz needs

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GBS Roadmap to 100% GE
February 2012/

GBS : Outsourcing model

Accounts Payable
Travel & Living
Reporting and GL
Payroll

Stat & Tax


Legal Entity Management
HR Processes

55 GBS MEA IT Platforms

Fixed Asset

GPB Model

Facility Management
IT Coordination
Indirect Sourcing

Complexity

Value to Customer

Value to Customer

Traditional Model

Accounts Payable
Travel & Living
Payroll

Outsource

Stat & Tax


Enhance
Legal Entity Management
HR Processes
Expertise

92 SBS IT Applications
Simplify
IT

Fixed Asset
Outsource
Customs Operation
Inventory Accounting

Facility Management
IT Coordination
Indirect Sourcing

Return

Complexity

Build Expertise on Value-Add to Business

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GBS Roadmap to 100% GE
February 2012/

Process selection matrix (Finance Related

Judgmental

Transactional

processes)
Outsource/Hub

In Country
Petty Cash
Check Handling
Receipt of Invoice
Scanning of invoices/Claims

Review of Account Reconciliations


Payment approval
PO Final approval
Final Approval of Journal entries
Controllership
LE Management
Stat/Tax mgmt and filing
Issue Resolutions / GE Biz Relationship
Projects

AP Invoice processing
C& B/ GME/T&L/Non T&L processing & audit
Supplier reconciliation
Vendor creation
Preparation of payment proposal
IBS processing
Monitoring Funds in Bank
Accounts Receivables
Preparation & Review of Accounts Reconciliations
Journal Entries Posting (Accrual Amortization)
Trial Balance Submission
GE shares & Payroll processing
Query resolution for vendors/employees
Monthly reporting to GBS
Review of Journal entries
Management Reporting
1st leadership review of Acc Recs, TB
Submission and other critical processes

Low

High

Consolidation Feasibility
(Need for physical proximity, extent of user department interaction)
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GBS Roadmap to 100% GE
February 2012/

Questions and
Answers
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GBS Roadmap to 100% GE
February 2012/