The FINANCIAL — NEW YORK — Extensive use of digital technologies is expected to support the implementation of advanced shared services models across a broader range of business functions over the next several years, new joint research from Accenture and HfS Research shows.
The Impact of Digital Technologies on Business Services, digital technologies, including software-as-a-service (SaaS), big data and analytics, cloud and mobile, are expected to have the largest projected changes in procurement and supply chain management. Forty five percent of respondents expect digital transformation to “extensively impact” advanced shared services models in procurement over the next three years, compared to 18 percent who saw such change in the past three years. In supply chain, 49 percent expect extensive impact compared to 20 percent who reported it the last three years, according to the study, Disrupt or be Disrupted.
Significant increases are also expected in finance and accounting services (40 percent in the next three years vs. 23 percent in the last three); human resources (31 percent vs. 23 percent); and engineering (27 percent vs. 13 percent).
“Many organizations have long used various shared services models to unlock valuable cost savings, improve efficiency and increase productivity across the enterprise,” said Christian Campagna, global managing director, Accenture Strategy, CFO & Enterprise Value. “Our research now shows that savvy organizations are realizing that new digital technologies can propel their use of more advanced integrated services to support unconventional areas, better focus on the external customer and supplier relationships, and enhance their competitiveness,” he added.
Such trends are especially evident in more mature shared services models. These include global business services, which extend the traditional single- or multi-function model to include globally aligned end-to-end processes; and integrated business services, an end-to-end model focused on simplifying the customer experience to achieve better business outcomes.
Digital adoption fueled by need to improve end-to-end integration of internal and external services
Nearly all organizations surveyed agree that one of the leading reasons for adopting digital technologies is the need to improve integration of processes and operations across functional boundaries. Other common drivers include improved productivity, cost reduction and improving competitiveness, according to Accenture.
Respondents also widely agree that enterprises that fail to embrace the digital transformation will lose ground to competitors who take a more aggressive approach to digital solutions over the next several years. However, despite recognizing its value, just one in five respondents (19 percent) has a clear strategy in place to manage this digital transformation.
“Forward-thinking organizations are clearly recognizing that digital transformation is not a mere trend or a fad – it represents a critical evolution of new capabilities to boost their competitiveness – and its significance and value cannot be underestimated,” said Phil Fersht, chief executive officer, HfS Research. “The study indicates that many companies that have not yet embraced digital as part of their shared services model are not just failing to keep pace, they are risking being rendered obsolete in the emerging as-a-service economy,” he added.
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