SBI Capital Markets offers world-class client service, and relies on a clear view of internal operations. How could SBI Capital Markets transform and streamline its systems for greater efficiency?
Working with IBM® Services, SBI Capital Markets implemented integrated Oracle E-Business Suite applications, transforming its daily operations to reveal new business insight.
70%reduction in time and effort required to complete expense requests
90%of business and support processes digitized, boosting transparency and productivity
7days saved on average when generating month-end financials
Business challenge story
Getting a clearer view
SBI Capital Markets, widely known as SBICAP, competes on the world stage, offering the entire gamut of investment banking services and corporate advisory roles among industry and government. Managing more than 500 consultants assigned to multiple projects, known as ‘mandates,’ requires close attention to detail. Ensuring that service is compliant and efficient, and that fees are raised and allocated correctly, are all essential tasks if SBI Capital Markets is to win and retain valued clients. Sharad Jambukar, Group Head of IT at SBI Capital Markets, explains: “SBI Capital Markets is the Investment Banking arm of the State Bank of India [SBI], and is India’s leading investment bank. To make sure we deliver the best services for our public and private-sector clients, we always look for ways to improve our internal systems both in terms of technological capabilities and corporate culture.” SBICAP ran a variety of bespoke project management, human resources management and billing systems, and there was little or no integration of data or processes at the enterprise level. Sharad Jambukar highlights the difficulties: “Our project management, billing, payroll and human resources management systems functioned separately and were only partially digitized. While these processes were working well individually, we found it was hard to obtain a complete view of the business. Staff spent a significant amount of time inputting data from one system to another, increasing the scope for human error. Additionally, we were operating a mix of manual and digitized processes, which further exaggerated the complications. “Most importantly, the company’s billing and financial processes were almost entirely separate and manual. Consultants’ mandate fees, travel and expenses were submitted on paper, and the finance team could not generate and send invoices until the data had been validated and approved as correct. This routine was a slow, costly and unreliable way to manage people, and did not fit well with our ambitions to simplify operations.” The situation was repeated in many of SBICAP’s departments: isolated local systems combined with teams of people dedicated to manual workarounds. Without an integrated enterprise-grade solution, SBICAP could only gain a partial glimpse of its business performance. Senior management struggled to ascertain key performance indicators for each employee and for the business as a whole. As the company expanded, it was becoming increasingly difficult to allocate the right consultants with confidence, to understand costs, and to determine the true profitability of each project.
Aligning all the pieces
SBICAP looked to transform its operations, seeking to remove barriers to growth, increase efficiency and reduce costs. The company instituted a steering committee to guide the evaluation and selection of technology vendor to undertake the transformation. The committee observed: “IBM Services stood out among all other vendors in our RFP process and truly understood our requirements. As we reviewed major software vendor offerings, IBM Services showed that Oracle E-Business Suite solutions mapped very closely to SBI Capital Markets’ operations. On that basis, IBM drew up a comprehensive plan to implement the applications.” IBM Services advised against integrating the existing mix of in-house-developed and vendor solutions; as well as business risk, there was no reliable way to predict the project costs. The IBM team recommended Oracle E-Business Suite applications as the foundation for fully digitalized business operations. The application suite included Oracle Financial Management, Oracle Human Resources Analytics and Oracle Projects Portfolio Management, providing comprehensive functionality for SBICAP’s key business activities. Sharad Jambukar explains: “This project was about much more than deploying new software. We gained the opportunity to transform the service culture of SBICAP, to ensure we operate as effectively and efficiently as possible. IBM Services recognized the impact of change, and worked in tandem with our internal training team to maximize staff buy-in. In a deployment of just six months, SBICAP has become a fully integrated enterprise, enabled by IBM and Oracle E-Business Suite. “Oracle E-Business Suite met our needs perfectly. For example, Oracle Human Resources Analytics provides us with the tools to acquire greater clarity into the punctuality and productivity of our workforce, to help us adjust our training and compensation programs accordingly. Oracle Financial Management enables us to complete and track transactions with greater detail, helping us to meet increased demand by the regulator for greater transparency. Similarly, with Oracle Projects Portfolio Management we gain greater insight into every action taken by our consultants, greatly improving our ability to assess the profitability of our mandates.”
Gaining a complete picture
With Oracle E-Business Suite in place, SBICAP is gaining greater insight into the effectiveness of its business operations and has engendered a can-do climate of cultural transformation. The steering committee observed: “Moving from disparate and partly manual processes to one single digital ERP system has greatly improved the productivity of our workforce and delivered a clear view of SBI Capital Markets’ business operations.” SBICAP leveraged IBM’s previous implementation experience with similar global businesses to deliver fast results. The result is a project management and execution solution system that is tightly coupled with financial and HR management. The finance solution is fully integrated with SBICAPs’ operational areas, right down to payroll and time management. Sharad Jambukar continues: “For example, staff and managers no longer handle paper-based expense claims. Oracle iExpense enables a digital submission, approval and payment process that flows directly into the project profitability analysis and the corporate general ledger. Previously it took more than 75 minutes to complete end-to-end expense requests. By creating an integrated workflow in Oracle E-Business Suite, the process now takes less than 20 minutes – a time saving of over 70 percent. By reducing the administrative burden in this way, we give our consultants more time to focus on building client relationships. “In many other areas, too, SBICAP has transformed processes. In human resources, Oracle Human Resources Analytics enables automatic payroll adjustments for absence, and feeds absence data directly to the Oracle Financial Management solution. As well as accelerating workflows, we can also ensure that personal information, such as payroll data, is kept fully confidential and secure.” “Similar process integrations have helped SBICAP to reduce the time taken to calculate fees and generate accurate client invoices, enhancing our cash flow. We have also eliminated month-end and quarter-end delays to billing, formerly up to seven days; using Oracle E-Business Suite, billing is always on-time. “With Oracle Projects Portfolio Management we’ve achieved a detailed view of the profitability of each project. We now automatically track which individual has taken action on each project, and measure the target set out when the mandate was created against ongoing project developments. Additionally, we automatically measure the amount of resources and time spent so far on each project—revealing even further detail on profitability. Knowing the profitability and cost of each project enables management to make informed decisions and tailor employee rewards based on individual performance. With this insight, we can clearly identify strategies for success to replicate and innovate. “By digitizing more than 90 percent of our core business and support processes with Oracle E-Business Suite, we have been able to increase transparency and boost productivity. For instance, we articulated standard operational procedures when configuring the automated processes in our ERP, making approval processes quicker and easier. Employees no longer spend large amounts of time determining and locating personnel with the necessary authority to approve an action. And with an ERP system that prompts users to follow standard operational procedure, we can ensure that we maintain compliance with regulations set out by the Securities and Exchange Board of India.” SBI Capital Markets is looking ahead, exploring new ways Oracle E-Business Suite can be leveraged to sharpen its competitive edge. Sharad Jambukar concludes: “By far the most significant benefit of working with IBM Services to implement Oracle applications is that we’ve acquired the tools to optimize the success of our business. Working with IBM we can design realizable future growth strategies based on the patterns of our previous achievements. We’re looking forward to exploring the ways that we can further integrate Oracle E-Business Suite with other aspects of SBI Capital Markets operations.”
About SBI Capital
Founded in August 1986, SBI Capital Markets Ltd. (SBICAP) is a wholly owned subsidiary and the Investment Banking arm of State Bank of India (SBI), the largest commercial bank in India. SBICAP is India’s largest domestic Investment Bank, offering the entire gamut of investment banking and corporate advisory services. The bank employs up to 500 staff and operates five subsidiaries across the globe. Subsidiaries include SBICAP (Singapore) Ltd, SBICAP (UK) Ltd, SBICAP Ventures Ltd, SBICAP Securities Ltd and SBICAP Trustee Ltd.
- FSS: Banking - Back Office - Core Systems Transformation
- FSS: Banking - Back Office - Payments
- GBS AD&I - EA - Oracle - E-Business Suite
- GBS BCS EA - Oracle
- IBM Global Business Services