The (not so) surprising secret to finding shared services success.

By Charles Araujo.

Shared services play a crucial role in the digital transformation of an organization, delivering on its promise of efficiency. In his blog Charles Araujo, Principal Analyst at Intellyx, shares how organizations can drive those efficiencies and gain competitive advantage through deconstructed business processes.

In an age of digital disruption, enterprise organizations are in a race to find the operational efficiencies that will enable them to invest in the future. As a result, many of them have once again turned to the creation of shared services organizations to reduce operational overhead and redeploy those resources toward more strategic efforts.

Enterprises create these centralized services organizations to provide a wide range of corporate services within HR, finance and IT to the organization’s business units. The logic is that they can gain significant resource efficiencies through centralization — but these hoped-for efficiencies are often difficult to realize, because despite serving similar functions, operational units within the various business units of an organization frequently operate in wildly divergent ways.

As they seek to establish shared services organizations, many enterprises choose to ignore these differences — and suffer the consequences, as a result. They are left scratching their head wondering why they have not realized efficiency gains and are unable to focus on more strategic and transformative efforts. 

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