Shared Services leaders have been aware of the opportunities that a strong data practice can offer. The coronavirus pandemic only magnified this, with an increased need to understand the business and customer at speed. Those whose data practice was already embedded and advanced were able to respond and recover from the blows of the pandemic with speed and agility. This further highlighted the need to invest in data for those behind.

Becoming a “data-driven” organisation has been a top priority for many organisations over the past decade. However, according to the New Vantage Partners Big Data and AI Executive Survey 2021 including more than 85 large enterprises, less than 40% of respondents said their organisations compete on analytics or manage data as a business asset. A number that has changed only a little from previously conducted surveys. Only 24% call their organisations data-driven and just 24.4% report success in forging a culture around strategic data use.

In this blog, we summarise insights from Sumit Mitra, Chief Executive Officer of Tesco Global Business Services and Tesco Bengaluru, on his presentation at this year’s SSOW Europe 2022, about the reality of industry aspiration and how to become a truly data-driven organisation.

Data-driven insights from Tesco

Sumit’s presentation was dedicated to data and science, where he discussed the importance of converting reports into usable data. He also discussed the importance of harnessing and leveraging data to make decisions, to take GBS to the next level.

Sumit shared that Tesco has built a debt cockpit using the power of analytics, economics and data science statistics. According to Sumit, Tesco’s debt used to be around 6% of their total revenue, which is an incredible number when you think about their £54 billion revenue last year. By using their debt cockpit, they have reduced their debt to 2.1% of their total revenue.

The debt cockpit works by transforming a simple report into a powerful working tool with visualisation and a strong analytical model to categorise and combine data from several reports. The aim of this cockpit is multi-fold:

• Helps finance directors make quick and insightful decisions on efficient cash generation.
• Provides a quick summary of the forecasted debt position for the current period and the key focus areas for immediate action.
• Provides a quick summary of data that is critical, and the categories that need further attention (machine learning classifies suppliers as high and low risk, based on the payment behaviour and credit rating).
• Devises a collection strategy focused on cash collection of the suppliers classified, based on priority.

The debt cockpit can drive decisions within three minutes, enable faster cash collection of £1.3 million per period and positively improve working capital. Sumit claimed that the future is all about decision cockpits and that this is the future decision journey that GBS’ need to take.

In summary, every report is a potential key to better decision making, if it transforms into a decision cockpit. This is a big mindset shift that needs to take place. It will require new skillsets and strong sponsorship from decision-makers.

There is big value to be had for those companies that can make the necessary commitments. For example, this financial year Tesco has committed to improving margins by £25 million. Next year they have set a target of £50 - £70 million as they continue to build insights for their organisation.

Want to become a data-driven organisation and take your GBS to the next level?

Hear more from Sumit and join the world’s industry experts on 17 – 19 October 2022 in London, UK to discover how you can transform your GBS and position your company for success at SSOW Europe Autumn 2022.

View the 2022 agenda here!

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