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How SHARED SERVICE CENTERS will TRASNFORM to embrace disrupting TECHNOLOGIES ?

Source | LinkedIn : By Gabriel STÜVE

75 000 shared services centers (SSC) are expected to be established globally by 2022 according to Grand View Research, growing at a CAGR of close to 30% from 2015 to 2022. Shared Service Centres are cost-effective units delivering technical, operational and administrative support from the corporate headquarters, and common to BU’s of the company such as IT, finance, accounting, human resources, payroll, purchasing, and usually located cost-effective regions like India, China, Latin America, and Eastern Europe.

But in a context of disrupting technologies in every sector and function, how will SSC embrace digital to boost performance in the next few years? And what technologies are already disrupting SSC?

Embracing new technologies is a real TRANSFORMATION journey

Based on my years experience helping organisation and SSC improve performance, with traditional diagnostic and Operational Excellence approaches, by streamlining “vertical” end-to-end processes (from BU to SSC) and “horizontal” SSC internal processes, organisation and management systems, SSC can achieve up to 20 % increase inefficiency and productivity.

Moreover, embedding a culture of continuous improvement in the SSC is a main concern for SSC leaders to sustain results in time. My point of view on the key success factors to transform behaviours and embark people in the transformation journey are described in my previous posts.

But when SSC embrace disrupting technologies they can achieve up to 50% increase in efficiency and productivity. Adopting technologies in a SSC must be considered like a real transformation journey that depends on 3 basic fundamental transformational success factors

  1. Top management and headquarters support,
  2. Assessment on how technologies will impact not only the SSC but the company’s business model as a whole (digitalisation of front office operations, customer experience, core processes, support fonctions, SSC and back office operations),
  3. Building the transformation roadmap vitesse that will transform old legacy process and IT, and at the same time embrace accelerating disrupting solutions in a realistic and well ORCHERTRATED planning.

What TECHNOLOGIES are disrupting SSC ?

Some SSC have already started embracing technology and digitalising operations implementing digital solutions such as those described below:

BIG DATA ANALYTICS technology reduces the time to analyse big volumes of data and analyse data in real time. Projects are very often launched to produce from the very basic reporting and scorecards, to prescriptive analytics internal reporting based on statistical analysis and trend analysis, to even predictive analytics providing CMO’s with customer data and insights to trigger sales decisions and actions.

Within a recent operational excellence program for a world leader in a service sector, we built a real-time analytics reporting for both top management, BU and SSC Finance managers located in different countries. A big challenge was to provide the right insights and recommendations to BU Finance Managers and CFO to solve their business problems. But still the major challenge was to change the mindset and the behaviours of the Finance BU managers for them to launch and monitor corrective action and improvement plans when they saw their KPIs in red.

Within another Operational Excellence program for a 200 FTE shared service in Latin America, the SSC Management and teams built an ‘analytics real-time management tool’ to monitor activity and productivity of their teams.

Read On…

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