SSF's Journal - Aug'18

V. Unique and Innovative
D-Cap is a unique transformation centric business
model that
enables transformation of enterprise-wide
processes
by leveraging process capabilities and
synergizing the benefits of both in-house and
outsourcing models,
while maintaining the required level of data
confidentiality and control,
that are particularly suited and practicable for
mid to large corporations.
At the same time the model is innovative to
VI.
provide a segment specific focus to mid-tolarge
companies
using its transformational centricity, combining
front-end and back-end improvements, and
Aggregation of Capabilities and Segregation of
Operations leading to best of the two worlds -
pure play captive and pure play BPO,
along with a uniquely flexible ownership
structure, and by
becoming an extension of the organization - to
move beyond dedicated 'captive' to dedicated
'capability' unit
Strategic Benefits and Business Case
This innovative solution as the cornerstone of the
overall Business Process Transformation Strategy
leverages the two components - Process Capability
as a Service (PCaaS) and Segregation of Operations
(SDU), together delivering substantial strategic
benefits as under:
a) Value of PCaaS: The model brings dedicated
BPM expertise with an end-to-end
transformational solution that amazingly
combines strategy, execution and process
excellence through PCaaS. It is not limited to
merely providing advisory capabilities for
transformation or acquisition of a totally new set
of skills and capabilities for managing an in-house
model. It also helps to avoid the limitations of
outsourcing, where the attention to a low scale
client is a challenge and enables becoming
extension of the client organization for Business
Services.
b) On Demand: The Aggregation of Capabilities for
SDU and availing of services ‘on-demand’ by
the client on ‘usage basis’ (under PCaaS) from
the D-Cap partner brings the power of BPM
expertise to drive process efficiency and
effectiveness, while avoiding under-utilization of
high cost specialist expertise and resources
focused on BPM, being part of SDU on a full time
basis.
www.sharedservicesforum.in
c) Customer Experience: The combination of PCaaS
and SDU with transformation focus brings holistic
customer centricity, enhancing the overall
experience of internal and external customers.
d) Consolidation: The Segregation of Operations
becomes more an ‘off shoot’ of a structured
Transformation Roadmap, eliminating the
fragmented approach to back-office
consolidation or outsourcing. When consolidation
is considered, the SDU approach not only leads
to benefits due to similar functions/processes
brought under one umbrella that are currently
distributed across multiple locations but also
ensures ‘no loss of control’ and ‘hassle-free’
remote operations (India or overseas) as the
operations are managed by a BPM practitioner of
the D-Cap partner. SDU also realigns resources
in terms of right level, right skill, right level and
redeployment, with opportunity for process
improvements post consolidation.
e) Beyond Captive to Capability: The SDU which is
initiated as captive in-house operations grows in
maturity over a period of time. This provides a
great spin-up effect to make the D-Cap move
beyond a ‘Dedicated Captive’ to become
‘Dedicated Capability’ model when the SDU
demonstrates enterprise-wide partnership to cocreate
value.
The above strategic benefits translate into a business
case as under:
a) End-to-End Process Improvements: With a wellorchestrated
business transformation effort
combining accountabilities to design, execute,
operate and deliver, the model supports
customers of the segment companies with frontend
benefits through end-to-end process
assessment, reengineering, redesign and
automation and treats consolidation or
outsourcing, not as the first step, but only as the
most essential step towards process
transformation.
b) RoI: Despite a smaller scale of operation under
SDU, the model supports clients with a business
case of ~25% IRR minimum, payback of 2-3 years
and 5 to 10% YoY improvement opportunities.
c) ‘Economies of scale’ for investments and
operations that enable the client to reduce
investment substantially to get the financial
benefits through SDU, use of PCaaS and
ownership structuring.
d) ‘Economies of Knowledge’ that brings valuable
all round BPT expertise in all aspects of
transformation at the right time, driving unbiased
client focused value to be derived from holistic
end-to-end focus, far outweighs the cost
incurred through the D-Cap model.
e) Value Creation: An opportunity to monetize the
SDU through spin-off at the right time.
PROCESS EDGE | AUGUST 2018 |
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