This is the first of a two-part series.
What a difference two decades make. When shared services centers (SCC) found their corporate footing in the ‘90s, they succeeded by creating economies of scale through the elimination of redundant functions, people and technology systems. Fast-forward to today’s hyper-competitive global business world, and SSCs cannot survive on cost reduction alone. To win, they must deliver differentiated value in an agile and flexible way.
Moving to this new approach is predicated on the ability to quickly embrace digital technologies such as social, mobile, analytics and cloud (the SMAC Stack), intelligent process automation (IPA) and Code Halos (making meaning from the digital data surrounding people, organizations and processes). Our recent study reveals that IPA can help companies reduce costs by 15%, while the rich insights surfaced by analyzing the data generated by automation can deliver revenue increases of 10%.
In short, SSCs that continue with traditional approaches will continue to deliver commodity services. Organizations that adopt innovative approaches using digital technologies will begin to solve challenges and deliver value in a whole new way, resulting in a three-pronged paradigm shift to providing better services (optimization), new services (value-ization) and more services (globalization).