Three Ways Shared Services Can Support an Evolving Business

Businesses in today’s economy are changing rapidly, and one of the most prevalent trends is companies looking to diversify and find alternative revenue streams. Nike for example, no longer is just in the shoe and sporting goods business, but they are also in the lifestyle and fitness technology industry.
So how can shared services support businesses as they grow and evolve?
Last week, PwC's Managing Director, Mr. Tom Torlone, and Bruce Hanavan, Founder and President of Direct Commerce hosted a webinar on Best-in-Breed P2P Automation. The session offered some interesting insights into not only what you should look out for when it comes to P2P automation solutions , but how shared services needs to keep up with the changing nature of businesses today.

The webinar addressed three key ways that shared services and Procure-to-Pay can better support evolving businesses.
1.       Separate process standardization from process flexibility
Key to operating at peak efficiency, Torlone said, is a flexible, adaptable process. As companies evolve, you may not know where your new sources of revenue are going to take you, so it is essential to have a business model and technology that will help you support your evolving business.
Torlone suggested separating process standardization from flexibility and that industry standard processes may not work for your company. Enforcing a rigid process may encourage workarounds. Torlone suggested thinking carefully about process and the need for flexibility from the beginning so that when your company does move, that you are able to move with it. While process standardization is essential for operational efficiency, don’t lock yourself into a rigid process that no one will use.
2.       Invest in an operating model that supports flexibility.
Anytime you sell a product or service, there are many departments in the business that need to get involved. You need to evaluate the customer, check their financials, sign an agreement, ship the product or deliver the service, receive payment, recognize the revenue, and put things on your books. That process cuts across a number of departments and functions. A multifunctional shared services model will help bring departments such as procurement and finance together to see the process as a truly end-to-end process. Moving from single function services to multifunctional shared services and Global Business Services helps bring functions under shared leadership and aligns priorities.
3.       Make the most of Best-in-Breed technology.
While most shared services use ERPs to manage many of their financial functions, the majority of P2P automation solutions integrate with ERPs and provide a high-tech front end to your systems that can transform the way your P2P processes work, allowing for simplified processes for you and your customers.  Torlone said there are several things you should look out for when investing in technology:

• Ensure technology is compatible with existing applications (such as your ERP and relevant ancillary support operations)
• Look to the cloud, and SaaS based delivery as these solutions are easier to roll out on a global basis.
• Consider the value for your suppliers. If investing in P2P technology that will affect your suppliers, consider the cost to your suppliers Torlone suggested free supplier networks benefit from higher adoption rates. Importantly you’ll want at tool that will help your relationship with your suppliers, so if there are costs, be sure that the service also brings value to your process.
• Think about the usability of the technology. The technology on our phones and that we use in our personal life is intuitive and accessible. But what about your P2P technology? The adoption rate of your automation tools is generally tied to the user friendliness of your technology, so be sure to monitor the user satisfaction of your suppliers

In sum, as companies are evolving at a rapid rate, your P2P department needs to be adaptable and flexible to keep up. More so than keeping costs down, being able to help the company bring in new sources of revenue will be a priority for many shared services in the coming years.

Download the webinar slides for more insight from Direct Commerce and PwC on Best of Breed P2P Technology.