JTI is implementing a next-gen GBS organization with a OneOffice mindset

• Award Recipient

  Japan Tobacco International

• Accolade

  

  Finalist

• Category

  

  OneOffice Mindset

• What put this entry on the shortlist

  Using advanced digital platforms can supercharge GBS organizations’ effectiveness and value creation capabilities and be a foundational part of service delivery excellence. For example, JTI’s GBS P&C team delivers 97% first-call resolution within 48 hours, improving from an average resolution time of two weeks to less than two days. This is well above industry best practices. JTI’s GBS measures its results in terms of delivering value to its internal clients. The adoption and deployment of ServiceNow, as core to the GBS operations, has resulted in a significant improvement in the visibility, efficiency, and quality of services. This example of the OneOffice mindset shows how the services team, corporate functions, market, factory, leaf origins and technology teams can operate as one and deliver value.

The Situation: Japan Tobacco International (JTI) desired to build a next-generation, multi-functional global business services organization (GBS) as part of its broader enterprise transformation, designed to achieve its Vision2030. To realize the GBS’ end goal, it would need to underpin GBS with a modern, digitally enabled, state-of-the-art service management system, significantly improving the employee experience and freeing customers to focus on commercial and consumer priorities, driving productivity back to the business. To accelerate the plan, JTI engaged EY and ServiceNow to re-imagine solutions associated with IT services management (ITSM) and apply them to run a large-scale business services organization.

HFS selected JTI as a finalist in its inaugural OneOffice™ Mindset awards due to the complexity employed in re-imagining information usage across its organization to significantly improve service delivery to employees and customers.

The Issue: JTI’s business operations functioned in legacy silos, delivering various services to employees and customers

In 2019, JTI’s leadership mandated the importance of investing in business transformation to align the company’s people, technology, processes, and products squarely where they could have the most significant impact on improving business effectiveness. To achieve this, JTI identified the need to centralize, standardize, and automate management and capabilities across corporate functions such as finance, people and culture, marketing and sales, legal, global indirect procurement, and logistics.

JTI decided to create a brand new, first-generation GBS organization as the focal point for this transformation effort and to execute its vision. As a result, JTI’s GBS organization earned a mandate to deliver organizational change incorporating multi-functional scope, geographic scale, and operational complexity into its transformation blueprint.

Plans included assessing, managing, migrating, and implementing more than 600 transition waves across at least 100 countries and markets. In addition, as there was a need to build and deliver many programs and processes from scratch, JTI emphasized the need to transform the organization’s technology capabilities in parallel with the GBS-led process migrations.

The objective was that within 2½ years, JTI would have this multi-function GBS organization up and running. To drive and enable the business transformation, JTI created a unified, digital experience where all employees can use a unified platform to find, access, and request anything they need. This effort required a digital-first, software-enabled approach that prioritized employee and customer-centricity.

The Solution: JTI leaned heavily on ServiceNow and EY expertise to bring modern information processing, workflows, and technology-led change

Enterprises are often overwhelmed after decades of using homegrown information systems geared to services delivery. In many cases, the systems have been incomplete, difficult to use, and not standardized across enterprise architecture. Rather than continuing on this path any further, JTI looked to a standard set of industry solutions from ServiceNow related to information processing, workflow, and decision requirements.

From inception, the GBS organization chose to roll out an enterprise-wide, cross-functional service management engine (MyJTI), allowing all JTI employees to choose and request a variety of services from an extensive GBS global service catalog supporting finance, people and culture, marketing and sales, legal, global indirect procurement, and global supply chain. GBS’ transition activity and knowledge capture began when COVID-19 erupted worldwide in March 2020, resulting in every process transition and implementation of MyJTI being achieved remotely.

By December 2021, 70% of process transitions to ServiceNow in GBS had covered more than 100 markets. To help drive uptake, JTI established ServiceNow as the only channel to review, request, and get services. This decision was instrumental in the successful setup and running of the new GBS organization, especially during a pandemic when all operations and services had to be conducted remotely.

The focus was initially on GBS, but JTI extended the solution to support functions outside of GBS, including corporate agile teams, global supply chain, and facilities. JTI has been using ServiceNow for IT service management for 10+ years. The IT department was an early adopter, so the IT service management system contains several customizations, whereas GBS has ensured the platform leverages “out of the box” standard functionality. Applying service management outside of IT to GBS was new, so JTI implemented a considerable change management effort to educate employees, which has been critical to successful adoption, understanding, and customer experience.

The Result: Together with EY, JTI succeeded in creating a next-generation GBS organization using ServiceNow as a core process platform

By using the platform approach to service management, GBS acted as a transformation enabler and created a greater focus on customer-focused and consumer-focused activities, with several benefits:

• JTI established and is operating a successful GBS as an internal services provider. Without the ServiceNow platform, JTI would have been unable to assess, action, or deliver results in a business-centric manner.
• Adopting a OneOffice mindset was critical for the company to develop a definitive service catalog, a single-entry point, and a single point of service. By providing a digitized service catalog approach to people and culture (P&C), GBS streamlined the “menu” available to customers to enable faster and better service.
• With ServiceNow, the IT and GBS team has been able to effectively craft solutions designed and built in parallel with the business to achieve goals for centralizing support functions activities and converting them into customer service elements.
• As of these initiatives, the platform was providing 309 services and has accommodated 327,000 employee-submitted service requests. It has delivered an additional 1,631 enhancements to support continuous improvement.
• The ServiceNow project defined and improved ways of working and collaboration between people & culture (HR) and agile business partners for GBS. Previously, there was a lack of clarity on who to talk to for which type of employee support, now results are delivered in days not weeks.

The Bottom Line: Using advanced digital platforms can supercharge GBS organizations’ effectiveness and value creation capabilities and be a foundational part of service delivery excellence. For example, JTI’s GBS P&C team delivers 97% first-call resolution within 48 hours, improving from an average resolution time of two weeks to less than two days. This is well above industry best practices

JTI’s GBS measures its results in terms of delivering value to its internal clients. The adoption and deployment of ServiceNow, as core to the GBS operations, has resulted in a significant improvement in the visibility, efficiency, and quality of services. This example of the OneOffice mindset shows how the services team, corporate functions, market, factory, leaf origins and technology teams can operate as one and deliver value.