Case Study

Integrated finance operating model increases efficiency by 20% for gaming major

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Client:
Top-ten casino-entertainment provider

Industry:
Hospitality/gaming

Business need addressed:
Resolve finance and accounting (F&A) performance issues that included:

  • A lack of integration between the front and back office
  • Broken processes requiring high levels of manual effort
  • Gaps in the control framework and process design
  • Multiple, fragmented legacy systems
  • No end-to-end measurement systems

Genpact solution:
Designed an integrated F&A target operating model that leverages reengineered processes, more effective and efficient service-delivery technologies, better rationalized controls, and a new performance-management system.

Business impact
Genpact empowered the client to:

  • Increase process efficiency by 20%
  • Cut close cycle times by 10%-15% through automation and an integrated record-to-report process
  • Realize a five-year benefit of $16 million in its hire-to-retire (H2R) process

Business challenge

This Fortune 500 company is focused on becoming a leader in the gaming industry but was struggling to efficiently and effectively manage its F&A processes in four locations: corporate, consolidated finance operations, properties, and offshore accounts payables. It was wrestling with how to:

  • Fix and document broken process end to end
  • Prevent extra manual effort
  • Address the high number of controls and limited key performance indicators
  • Determine how to address a complex array of legacy systems
  • Improve the accuracy of financials and reporting
  • Increase the transparency and ownership of processes and controls
  • Respond to the greater scrutiny of the controls environment
  • Curtail rising compliance costs
  • Boost internal customer and employee satisfaction

Genpact solution

In partnering with the client, Genpact performed a root-cause analysis that assessed over 600 activities in the finance, IT, and HR functions. This review uncovered 48 opportunities that would yield improvements of over 20% in both efficiency and cost rationalization. The client had classified 78% of its controls as key controls, compared to an industry benchmark of 35%. Based on these findings, we mapped an operating-environment framework for strong process governance, identified the required policies, and set strategic guidance.

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In addition to redesigning processes to minimize complexity and manual effort, we produced process documentation to drive standardization, best practices and value, and greater efficiency and effectiveness. Our defined Internal Control Risk Framework (ICRF) allowed for a dramatic reduction in key controls. Finally, we developed a unified system architecture and operational reporting to improve flexibility and predictive reporting, and support business growth.

Business impact

In line with its objectives, the client benefited from a more customer-focused model to provide efficient services to the business and support its focus on profitable growth. We identified opportunities to boost efficiency by 20%, cut key controls by 25%-30%, and lower compliance costs. Automation and greater integration in record to report would reduce close cycle times by 10%-15%, while the recommended changes to the H2R process projected cost benefits of $16 million over five years.

For more information, contact, cfo.services@genpact.com and visit, genpact.com/gbs

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