The challenge:

As a spin-off of Agilent, Keysight was required to set up a globally integrated structure across 30 countries within a 12-month timeframe, from scratch. Within this, aggressive, non-negotiable critical milestones were set, including the formation of Keysight as a separate operating entity by August 2014; the trading of the new entity’s shares on the NYSE by 3^rd November, 2014; and the final cut-over from Agilent by 23^rd December 2014.

The solution:

A two-phase implementation plan was formulated. For the first phase, the focus was on enabling Keysight to gain banking and operational independence. The second phase shifted the emphasis onto a massive technology and integration transformation. The latter aimed to establish global host-to-host connectivity with SWIFTNet, the installed Oracle ERP and Concur (a travel and expense management solutions provider).

In January 2014, a Singapore-based team was established with members from Keysight and Citi. This acted as the central command post for project planning, control and execution. Cross-regional, cross-functional teams from Asia Pacific, North America, Latin America, Western and Eastern Europe, further collaborated to ensure a seamless implementation. These partners helped to steer the process through a host of different legal, structural and regulatory environments.

The Singapore Finance and Treasury Centre (SFTC) was established at the same time and is today a core part of Keysight’s operational efficiency and now managed by the Global Treasury team.

Best practice and innovation:

The following core components were established:

• Global credit facility

  Citi established a ‘follow-the-sun’ programme to optimise aggregated global clearing limits by transferring excess capacity back-and-forth across regions and time zones.

• New account management processes

  These enabled account opening and closing, legal entities name-change, novation of operating accounts, banker guarantees and relevant documentation execution for more than 230 accounts across 26 countries around the world. Global co-ordination is via the SFTC.

• Integrated liquidity and investment management solution

  A combination of domestic and cross-regional automated end-of day, daily target-balancing cash pooling structures were established at SFTC, serving as the Pool Header. This solution encompasses 15 local-currency pools, with USD and EUR funds further concentrated on a daily basis in London. In Asia Pacific, a group credit interest-optimisation programme was implemented. With SWIFT FIN and FileAct messaging tools in place, the integrated solution gives treasury full visibility over cash flow, and allows management of the entire Group’s daily cash positions across 37 entities in 26 countries.

• Integrated cash management solution

  A single global host-to-host file-based connectivity, orchestrated via CitiConnect for Files, was fully integrated into Keysight’s Oracle ERP. This platform supports straight-through payments and reporting reconciliation, enabling a high level of process standardisation for the Shared Services Centres in India and Malaysia. In addition, ISO 20022 XML file formats are being rolled-out globally as is TWIST’s Bank Services Billing code set.

• Integrated trade services and finance solution

  Citi’s online Trade Document Outsourcing solution (including letters of credit [LC] confirmation and discounting options, available on demand) was implemented, leveraging the bank’s outsourcing team and global corresponding bank network.

• Integrated commercial travel and expense card solution

  A globally consistent, locally compliant commercial cards programme gives Keysight visibility and control over its employees’ travel and entertainment expenditure. Some 3,000-plus cards were issued across 37 entities in 26 countries.