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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


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 One: When the shared services are in silos and organizations do functional outsourcing or offshoring.
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.
How does next generation shared services look like

“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.

1. Adopting end-to-end process management: Integrated end-to-end process ownership can help organizations move from siloed functions to gain visibility across multiple lines of business (LOB) and geographies. The advantage of embracing this approach will benefit digitalization and process standardization, and customer experiences. According to SSON Analytics, global process ownership and managing an end-to-end process play a significant role in driving success and GBS is becoming the preferred model for deployment. Their recent survey found that 62% of order to cash GBS have end-to-end process ownership, compared to 32% of shared services.

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.

Achieving operational efficiency with 70-20-10 model

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.

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HighRadius Integrated Receivables Software Platform is the world's only end-to-end accounts receivable software platform to lower DSO and bad-debt, automate cash posting, speed-up collections, and dispute resolution, and improve team productivity. It leverages RivanaTM Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes and also enables suppliers to digitally connect with buyers via the radiusOneTM network, closing the loop from the supplier accounts receivable process to the buyer accounts payable process. Integrated Receivables have been divided into 6 distinct applications: Credit Software, EIPP Software, Cash Application Software, Deductions Software, Collections Software, and ERP Payment Gateway - covering the entire gamut of credit-to-cash.