GBS Transformation – the path to success

In the ever-evolving world of business, staying ahead of the curve is essential for sustainable success. Global Business Services (GBS) is a transformative approach that has gained traction in recent years, helping organizations adapt to the latest industry trends, enhance operational efficiency, and drive growth.

The convergence of advanced technologies, changing employee expectations, and the aftermath of global events has propelled organizations to reevaluate traditional models of work. Companies need to adapt their structures to stay flexible and resilient in an unpredictable world. In this dynamic landscape, Human Resources (HR) professionals play a pivotal role in developing strategies to harness the potential of a global talent pool and align it with organizational goals.

Evolution of GBS

Global Business Services (GBS) has undergone a remarkable transformation in recent years, adapting to the ever-evolving business landscape, moving from a simple shared services model to a more strategic and holistic approach. During the last ten years that many global companies shifted their shared services organizations (SSOs) and centers of excellence to full-scale GBS.

Rather than being just a service provider, a GBS services company operates as an equal business partner with the company it serves, running its operations autonomously and having full control over the processes.

Some of the most popular End to End processes managed by GBS are:

Procure to pay
Order to cash
Hire to Retire

GBS operates under central leadership, ensuring consistent alignment with the business strategy and effective communication between GBS and the business.

Newly evolving model of GBS and its benefits

GBS model encompasses several key components that are essential for its success in the contemporary business landscape. the emphasis on process transformation is paramount. This involves adopting agile methodologies and shifting away from rigid standardization.

By partnering with external stakeholders, organizations can tap into a broader pool of resources, ideas, and expertise. This collaborative approach promotes innovation and helps organizations adapt to market changes more effectively.

Key components of GBS model:

Digital Transformation: The latest trend in GBS is the incorporation of digital technologies. Organizations are embracing automation, artificial intelligence (AI), machine learning, and data analytics to drive process optimization and agility. Digital transformation is at the forefront of GBS, enabling businesses to stay ahead in the rapidly changing digital landscape.
Data-Driven Insights: GBS leverages the power of data to make informed decisions. With big data analytics, organizations can uncover valuable insights, predict trends, and respond proactively to market shifts. Data-driven decision-making is paramount for success in the digital age.
Agile Workforce: In the digital age, the GBS approach emphasizes an agile and adaptable workforce. Employee training and upskilling are vital to ensure that the workforce is equipped with the skills needed to excel in an environment where technology is constantly evolving.
Customer Experience-Centric Approach: GBS remains focused on enhancing the customer experience. By aligning GBS with customer needs and preferences, organizations can deliver personalized, value-driven solutions and maintain competitive advantage in the digital era.

Realigning GBS Strategy for Optimal Impact

The need for resilience brings the value generated by GBS into the spotlight: supporting and protecting key resources of the company, protecting liquidity through end-to-end oversight of processes, and providing executive teams with timely data to make informed decisions.

The evolving industry landscape triggers several key aspects for consideration by executives which are focused on:

Right operating model
Delivery center strategy
Trends in business operations and globalization

Global Business Services (GBS) offers multifaceted benefits to organizations, providing a streamlined and integrated approach to operations.

Cost Savings: GBS can lead to significant cost savings through process standardization and automation. By consolidating operations, organizations can reduce overhead and achieve economies of scale. GBS 2.0 achieves it through a combination of automation, process optimization, and talent augmentation, rather than through workforce reduction.
Enhanced Customer Experience: GBS 2.0 focuses on delivering an exceptional customer experience by leveraging data and technology to understand and meet customer needs effectively.
Innovation Acceleration: With its external ecosystem engagement, GBS 2.0 accelerates innovation by tapping into the collective intelligence of a broader network of partners and collaborators.
Improved Efficiency: GBS streamlines operations and eliminates redundancies, resulting in improved efficiency. This allows organizations to allocate resources more effectively and focus on strategic initiatives.
Scalability: GBS provides a scalable model that can adapt to an organization's changing needs. As businesses grow, GBS can easily expand to accommodate new functions and business units.
Strategic Focus: By outsourcing routine and transactional tasks to GBS, organizations can free up internal resources to focus on strategic activities and innovation. GBS 2.0 provides organizations with the agility to respond rapidly to market changes. This adaptability is essential in an environment where disruption is the norm.

Conclusion

In the digital age, GBS is the path to success for forward-thinking organizations that effectively implement GBS can position themselves for sustained growth and competitiveness in the global marketplace.

Achieving success in GBS demands a steadfast commitment to continuous improvement and a readiness to navigate the dynamic business landscape.