Why Has There Never Been a Better Time to be a GBS Leader?
What you’ll learn
- The four stages of shared services evolution
- How to Evolve Your GBS Organization to Become a Hub of Innovation
Introduction
Changing consumer behavior, disrupted supply chains, virtual and remote workforce are significant business impacts that businesses worldwide had to quickly adapt to during the pandemic. And these changes are here to stay. Today, the demand for the digital transformation of end-to-end processes within order to cash function is increasingly gaining prominence - GBS is going digital! The GBS organizations that adapted well to the changing demands of all stakeholders - internal and external, in general, already had active, well-coordinated, and highly functional strategies in place, which provided them the support they needed. According to a Mckinsey survey, “More than 90 percent (of GBS organizations) reported that they had effectively scaled up the remote-delivery model, with virtually no loss of productivity — and without harming client-service experience or employee experience.”How to evolve your GBS organization
The Shared Services models evolved into GBS with the primary objective of being a cost-saving center. But, today, GBS organizations can be the catalysts of value creation by adopting digitalization and advanced technologies like Artificial Intelligence (AI). According to digital transformation guru and GBS expert Tony Saldanha, there are four stages to shared services maturity:
Stage Two: When the shared services model becomes global.
Stage Three: When organizations go after not just cost reduction but actual value creation.
Stage Four: When GBS organizations adopt advanced technologies to transform their processes—for example, using AI in claims and deductions to make smarter decisions.
“To really push their GBS to the next level, they need to compare themselves to start-ups. They want to have start-up like agility, 10 times the current speed of decision making and two times the current cost-efficiency of a large company,”
Tony Saldanha,Co-Founder, Inixia
Here are three primary ways GBS organizations can improve their game and get to stage four of the maturity curve.
2. Making Smart, Data-Based Decisions: It’s not an unknown fact that GBS organizations are a gold mine of data. They can use AI’s advanced algorithms and analytics to mine this data and make informed business decisions. Citing his days at P&G GBS transformation, Saldanha recalls, “You have the ability to leapfrog, you cannot spend all of your time on just continuous automation and continuous improvement. Even though there were no such terminologies as big data or data scientists 10 to 12 years ago, we (at P&G) assigned a dedicated business analyst to analyze data and create value out of it and changed things by leveraging technology.”
3. Innovating with Exponential Technologies: Change of mindset is highly crucial for GBS leaders to adopt advanced technologies. Instead of asking, “is the technology ready for your GBS?” they need to identify the areas ready to implement the technology. GBS leaders need to think about use cases, for example, deploying AI to automate A/R processes such as claims and deductions or using Blockchain to disrupt supply chain models.
Along with the above mentioned steps, Tony Saldana’s advice for GBS organizations is to adopt Google’s 70-20-10 model; where 70% of the organization’s effort is running operations. 20% is continuous improvement, and 10% is actually to disrupt.
The GBS industry will double in size in the next five years and become the most important asset to accelerate digital transformation. So the timing is perfect for GBS leaders to reevaluate and remodel their organization to become the catalysts of innovation.
Gain in-depth insights and detailed technology use cases for GBS leaders by the expert, Tony Saldanha, Co-Founder, Inixia.
There's no time like the present
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