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    * Smart Payment 2022
    * Business Transformation Finance 4.0 & Shared Services 2022
   
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    * Lean Industry 4.0 2023

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TRENDS SHAPING SHARED SERVICES TRANSFORMATION IN 2022

   
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Trends Shaping Shared Services Transformation in 2022



Shared Services have been an evolving service delivery operating model for the
past few decades as large businesses across the globe are increasingly using
shared services models to support a variety of functions. However, the current
ongoing pandemic has challenged the conventional set-up of shared services and
forced SSC and GBS professionals to adapt and re-think how it is set up and
operates, whilst also leveraging the many benefits from having such a model in
place during a time of crisis. With increasing revenue, reduction in operating
expenditure, and streamlined management, shared services modernization will
radically alter the corporate world. Let us look at some of the key trends
driving shared services’ transformation as businesses shift their attention to
operating models, process workflows and talent development.

 * Value Generation from Breaking the Functional Silos

Delivering high-value services throughout the enterprise in a consistent and in
an economical manner through an integrated business services model is key for
enterprises. While SSC/GBS model has helped enterprises tremendously in scaling
up, real value for the organization is generated via breaking the functional
silos and enabling less internal complexity as a result of that. The larger the
organization, the more likely it is for operational or reporting errors to cause
major problems due to a lack of alignment between core systems and business
process changes that have occurred. SSC enterprises today are focused on
improving customer outcomes and achieving operational efficiency savings by
integrating processes end-to-end including source-to-pay, order-to-cash, and
record-to-report. Most of these processes are being integrated with monitor
performance tools that help optimize processes and enable SSCsin to deliver
significant value to the enterprise. For example, one of the most matured shared
services functions is finance, which is provided through an integrated,
centralized global model for many organizations. Finance as an integrated
service is transparent and enables finance leaders to monitor working capital
throughout the system. This data not only enables management to make better
strategic decisions but also eases transactional activities throughout the
organization.

 * Unified Governance through Global Shared Services

As integration increases for business functions, enterprises progress towards
developing governance models through global shared services because it improves
the proximity of businesses, reduces time zone dependencies, and increases the
scale of operations. This helps the company to achieve economies of scale,
standardize processes, build expertise and focus on the core business.
Governance dictates both the strategic as well as operational aspects of a
business. Strategic governance addresses service, investments, scope, and price
while operational governance covers day-to-day items related to processes,
technology, and people.

 * Shared Services Digitization

Digital technologies are transforming all business functions from SCM and HR to
Finance and customer experience, and more. While Robotic Process Automation
reduces costs by automating routine, manual tasks, cloud-based IT environments
enable end-to-end integration of operations. Those integrated processes provide
data to analytics, and analytics drive better decision-making, more efficient
operations, and increased enterprise performance through high-value business
insights. Artificial intelligence tools help manage customer experience and
control supplier management to create improved and efficient service. Digital
transformation is essential in the journey to next-generation shared services.
It will marry operations and technology to create innovative, seamless service
lines on a global scale. Let us look at some of the digital transformation
technologies that are revolutionizing shared services.

Process Mining
To remove bottlenecks and automate optimization, enterprises must embrace
digital transformation. Enterprises need to find ways to break down information
silos and allow the free flow of information. Digital tools offer a solution to
this problem. Digital tools also help the workforce, by freeing them of
repetitive, mundane tasks that plague their overall productivity and help them
engage in value-added tasks. Process mining tools help in analyzing event logs
and other available data to build up a graphic representation of your workflows,
which assists in locating process bottlenecks and highlighting duplicated areas
of work.

Some of the key capabilities of a process mining tool are:

 * KPIs monitoring in real-time.
 * Predictive Analysis
 * Process Standardization
 * Visualization of how processes contribute to business outcomes.

Process mining, therefore, acts as the keystone to enterprise digital
transformation initiatives. It provides important information needed to make
sound business decisions. Through process mining tools, enterprises can
visualize the impact on businesses when they run through the scenarios of
changing the process. Enterprises subsequently can make improvements in their
existing processes and know what returns to expect from their investments.
Process mining tools should be the foundation upon which all future investment
and transformation projects should be based.

Robotic Process Automation
Shared Services have always focused on delivering cheaper, faster, and better
services to the enterprises they serve. However, while cost-efficiency continues
to be an important strategic imperative, there is more pressure than ever for
SSCs to digitally transform the operations they are charged with, and create new
services and business value, not just cut costs.

SSCs stand to benefit immensely from RPA as it improves efficiency, reduces
costs and increases ROI. This allows organizations to shift their workforce to
higher-value tasks, as RPA takes care of low-value repetitive tasks. Most SSCs
and GBS are still in the early phases of shared services automation, primarily
using unattended robots, with little to no functionality or intelligence, to
improve several back-office tasks. However, as RPA has increased its
capabilities – through embedded and Artificial Intelligence, SSCs would be able
to perform more cognitive-heavy tasks automatically while keeping human
employees in the loop.

Advanced Analytics
Shared services organizations can leverage predictive analytics using data from
multiple departments and perform cross-functional analytics that can deliver
unique operational insights. In a recent global survey, 61% of respondents said
that the data analytics in their organizations was still ‘basic’, while 27% said
they had sufficiently competent analytics. Only 8% had capabilities for complex
event processing and neural networks. Enterprises today are increasingly looking
towards predictive analytics to manage uncertainties and make swift and sound
decisions.

Artificial Intelligence
AI will increasingly be adopted by enterprises worldwide for business
transformation with newer capabilities of AI already being used by some
organizations like facial recognition and natural language processing (NLP). For
global business services organizations, AI can mean automation beyond RPA. Using
cognitive AI and analytics, organizations can use unstructured data and handle
complex marketing, finance, accounting, and customer service processes with
automation.

Breaking functional silos, unified governance and digital transformation are
some of the trends powering the future of shared services. These factors will
help businesses to improve the experience for their internal stakeholders as
well as customers. Shared services should therefore look to increase their
responsiveness to growth and take advantage of future business models.



Published By

- ILLUNINAR - The Digital Enterprise Digest






More in this category: « Financial Milestone To Hit Before The End Of 2022 4 AI
Trends: Its all about sale in 2022 »
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