TUI Shared Service Centre Enabling the Most Beautiful Time of the Year

Introduction
Steve Newman


Director TUI Finance Centre, TUI Northern Europe

Sandy McNair


Project Manager, Deloitte & Touche

TUI Overview
TUI Northern Europe (TUI NE) is part of TUI AG, the largest tourism and services group in the world with revenues of 22.4bn , employing 80,000 people in 500 companies around the world. TUI NE consists of the 3 core business divisions.

Retail/Distribution

Tour Operator

Airline

SHG
Employees 6000 ~1000 Shops & 7 Call Centres Employees 3000 2500 Hotels & 4.8m PAX Employees 3000 @20 UK airports with 32 Aircraft

TUI Vision for Finance Shared Services

TUI driver?    Deliver greater value from Finance

Support the changing business and drive integration

Increase consistency of reporting and allow Management a clearer view of group data

Opportunity to implement best practices and standard processes, where possible

Opportunity for faster and more comprehensive upgrades

    

SSC Business Model

TOLCICS

Project Vision

To deliver a best practice single site Finance Shared Service Centre supporting TUI Northern Europe and Britannia which utilises Oracle 11i financials and existing finance systems, and delivers e-procurement across TUI NE and BAL in line with the approved Business Plan

Finance & Procurement Platform Drivers

Finance  Changing business model to optimise group business performance  Reduce administration and finance costs across the whole group by realising economies of scale  Eliminate duplication  Internally share best practices  Facilitate implementation of future changes in business operation and organisation Procurement  Process Standardisation with reduced procurement cycle timescales  Electronic approval processes allowing greater cost and budgetary control  Improved Management Information allowing improved negotiating position  Enabling Tracking and confirmation of requirements, order, invoices, thus reducing processing times and costs  Processing efficiencies

The implementation of the Enterprise platform represents an opportunity for TUI to meet many of the business imperatives envisaged for integration of the group. It provides an opportunity for functional consolidation ability to leverage and standard set of processes, a enabled by Oracle applications.

Enterprise Platform
Support for Integration 80% TUI NE fit Training materials & procedures Process specialists in TFC Considerations Local business practices & legal requirements Support for Integration Specialist Mgt Structure Accounting Capability Customer Focus Continuous Improvement Considerations Recruitment Multi-lingual resources Space Planning Support for Integration Standard structure Flexibility for Additional Requirements Support for Management Reporting Solution Considerations Compromise on local requirements Support for statutory charts

Support for Integration 80% TUI NE fit Hub & Spoke Integration Platform Oracle Single Instance Considerations Adherence to structures Maintenance co-ordination Design consultation

Project Enterprise Delivering the Vision

Project Management & Change

Source Systems Developers

Hotel Payments Project

SSC Site Selection & Development

MQ Series Integration

Travel Accounting System

Shared Services & Oracle 11i

Source System Integration

170 Systems & Internal Teams

Document Scanning Banking Provider Selection

Internal Support & Hosting

TUI Infotec Internal Service Provider

Methodology to enable the Implementation

Change Management
Define SSC Cultural Requirements Deliver Communication & Training Assess Knowledge transfer & organisational readiness
Rapid implementatio n methodology Solution definition (processes, setup, user guides, etc)

Programme Management
Manage Framework for Integration & Control of all project components Active Sponsor & Stakeholder engagement Risk Management & mitigation

Pre-configured reference environment (R11i)

iTrac Implementation Tools

Process confirmation using template for SSC Process Design Local Design to focus on value add for specific unique business processes Configuration, Testing, Training utilising out of the box tools

SSC Design
Site selection & Facilities Preparation Design SSC Operating Model Define & execute transition plan

Implementation Approach
Stage 1 Stage 2 Stage 3 Stage 4

Model Office & Planning

Design & Build

Pilot Implementation

Subsequent Rollouts

Model Office Confirmation Gap Analysis COA & Business Data Design iProc Supplier & Catalogue Analysis

Global Design iProc Supplier Rationalisation

Local Design iProc Catalogue Roll Out

Utilise Model for further Roll Outs

Process & Application Model Built on iTrac ~80%

Local Requirements Built ~20%

Programme & Change Management Shared Services Design & Delivery Technical Integration

Core Solution Components

Processes
Self Service

Voucher Management
Order to Cash Purchase to Pay

Front Office Travel Accounting

iE

iP PO

Bank Statements

CM

AR GL FA

AP

Document Processing Solution

Engineering & Flight Costing Invoicing

Revenue Accounting

Oracle ADI & Cognos Reporting Tools

General Accounting

Customer Relations Refunds & Comp.

Revenue Accounting

Payroll

Business Change & Technical Challenges

Business Challenges
Organisational & Change Business Consolidation changing business structure HR Records no one repository Autonomous Businesses resistance to change Process Process Purchasing Compliance enforcing raising of POs and user education Management Reporting changing culture of reporting on Excel Data Quality source systems & mappings Source Systems No concept of DR or CR Key Process Design Decisions
 Standard Process Adoption

Technical Challenges
Organisational & Change Business Consolidation changing structure of support Internal technical skills knowledge transfer required Reliance on third parties for infrastructure changes

- result in few customisations or workarounds, that in turn reduce the delivery time & cost

 Standard Chart

of Accounts - provides efficiency in consolidation, reporting and maintenance of application configuration

Why Oracle?

Track Record in Shared Services Strength of iProcurement Platform Solution Scalability & Integration Supportability In House Expertise Flexibility of Multi-Org & Data Model

Benefits Achieved
Achieved?


TFC Live and delivering Value Added Service to business partners!

Best practice processes in place with basis for continuous improvement

Common Chart of Accounts & one source of the truth in place enhancing business analysis

 

Enhanced reporting delivered with significantly reduced effort

    

Scaleable common Financials platform robust basis for subsequent roll outs

Questions & Answers

Steve Newman Director TUI Finance Centre steve.newman@tui-tfc.co.uk

Sandy McNair Project Manager amcnair@deloitte.co.uk