fbpx

Digital technologies expected to accelerate and expand shared services models

By Freya Purnell
Advanced shared services models are expected to be adopted across a broader range of business functions over the next few years, according to new joint research from Accenture and HfS Research.

The shift will be driven by more extensive use of digital technologies such as software-as-a-service, big data and analytics, cloud and mobile.

The study, Disrupt or be Disrupted: The Impact of Digital Technologies on Business Services, predicts that the most significant changes will be seen in the procurement and supply chain management arena.

Forty-five per cent of respondents expect digital transformation to “extensively impact” advanced shared services models in procurement over the next three years, compared to 18 per cent who saw such change in the past three years, and in supply chain, 49 per cent expect extensive impact, compared to 20 per cent who have seen it over the last three years.

Significant increases are also expected in finance and accounting services (40 per cent in the next three years vs. 23 per cent in the last three); human resources (31 per cent vs. 23 per cent); and engineering (27 per cent vs. 13 per cent).

While organisations have previously used shared services models to generate cost savings, improve efficiency and increase productivity, according to Christian Campagna, global managing director of Accenture Strategy, CFO & Enterprise Value, the focus of more advanced organisations has shifted to using integrated services to “support unconventional areas, better focus on the external customer and supplier relationships, and enhance their competitiveness”.

The research shows these trends are especially evident in more matured shared services models, which include global business services (in which end-to-end processes are globally aligned), and integrated business services (another end-to-end model focused on simplifying the customer experience to achieve better business outcomes).

While recognising the importance of digital technology adoption to improve integration of processes and operations across functional boundaries, few organisations have a strong vision on how this will work in practice.

Only one in five respondents (19 per cent) have a clear strategy in place to manage digital transformation.

The research also showed that CFOs are playing a strong role in determining which processes are suitable for digital transformation. Thirty-seven per cent of CFOs make the final decision about implementation and another 52 per cent provide major input, second only to the CIO (40 per cent and 47 per cent respectively).

“The CFO’s pivotal position at the intersection of finance, technology and strategy makes him or her uniquely qualified to help the organization unlock the value of the digital revolution and maximize its benefits,” said Campagna. “Our research implies that CFOs will continue to take on more responsibility in guiding the organisation’s technology, both as it relates to shared services and on a broader level across the organisation.”

 

Share this post

submit to reddit
scroll to top