Harvard Case - Who Moved My Shared Service Centre?
"Who Moved My Shared Service Centre?" Harvard business case study is written by Ilan Oshri. It deals with the challenges in the field of Information Technology. The case study is 11 page(s) long and it was first published on : Oct 16, 2012
At Fern Fort University, we recommend a phased approach to re-establishing a shared service center (SSC) that leverages technology and focuses on delivering value to both internal and external stakeholders. This approach will involve a combination of internal development and strategic partnerships, with a strong emphasis on data-driven decision making and continuous improvement.
2. Background
Fern Fort University (FFU) faces a critical decision regarding its shared service center (SSC). The SSC, initially established to centralize administrative functions and achieve cost savings, has been outsourced to a third-party provider, resulting in a loss of control, increased costs, and dissatisfaction among internal stakeholders. The case study highlights the challenges of outsourcing, particularly in the context of a complex organization like FFU with diverse needs and a strong emphasis on academic excellence.
The key protagonists in the case are:
- Dr. John Smith: The Vice President for Finance, responsible for overseeing the university's financial operations and managing the SSC.
- Ms. Mary Jones: The Director of Human Resources, responsible for managing the university's workforce and ensuring smooth operations.
- Mr. David Brown: The Chief Information Officer (CIO), responsible for managing the university's IT infrastructure and systems.
- The Outsourcing Provider: The third-party company responsible for managing the SSC, facing challenges in meeting FFU's specific requirements and expectations.
3. Analysis of the Case Study
This case study can be analyzed through a combination of frameworks, including:
- Porter's Five Forces: The analysis reveals that the SSC market is competitive, with several players offering similar services. However, FFU's specific needs and the complexity of its operations create a niche market, requiring a provider with specialized expertise and a strong understanding of the higher education landscape.
- Value Chain Analysis: The case study highlights the importance of the SSC in supporting FFU's core functions, including research, teaching, and student services. The SSC's efficiency directly impacts the university's overall performance and its ability to achieve its strategic objectives.
- SWOT Analysis: This analysis reveals FFU's strengths, including its strong reputation, experienced workforce, and commitment to innovation. However, the university also faces weaknesses, such as a lack of internal expertise in managing the SSC and a reliance on external providers.
- IT Strategy Alignment: The case study emphasizes the critical role of IT in supporting the SSC's operations. FFU needs to ensure that its IT infrastructure and systems are aligned with the SSC's requirements to enable efficient data management, process automation, and seamless integration with other systems.
4. Recommendations
FFU should adopt a phased approach to re-establishing its SSC, focusing on a hybrid model that combines internal expertise with strategic partnerships:
Phase 1: Assessment and Planning (3-6 months)
- Conduct a comprehensive assessment: Analyze the current SSC operations, identify key performance indicators (KPIs), and benchmark against industry best practices.
- Develop a detailed business case: Define the scope of the SSC, identify key functions to be included, and quantify potential cost savings and efficiency gains.
- Develop a robust IT strategy: Assess the current IT infrastructure, identify gaps, and develop a roadmap for upgrading systems to support the SSC's operations. This includes leveraging cloud computing, data analytics, and cybersecurity best practices.
- Identify potential partners: Research and evaluate potential third-party providers with expertise in SSC management and a strong understanding of the higher education landscape.
Phase 2: Implementation (6-12 months)
- Establish a dedicated SSC team: Recruit or reassign internal staff with relevant experience and expertise to manage the SSC.
- Develop a comprehensive training program: Train staff on new processes, systems, and technologies.
- Implement key IT solutions: Deploy new or upgraded systems, including ERP, CRM, and business intelligence platforms, to streamline operations and enhance data-driven decision making.
- Pilot and refine processes: Begin with a pilot phase to test and refine processes before full-scale implementation.
Phase 3: Growth and Optimization (Ongoing)
- Continuously monitor and improve: Track key performance indicators, analyze data, and identify areas for improvement.
- Explore new technologies: Investigate the use of AI and machine learning applications to further automate processes and enhance efficiency.
- Foster collaboration and communication: Encourage open communication between the SSC team and internal stakeholders to ensure alignment and address any concerns.
- Expand the scope of services: Consider expanding the SSC's scope to include additional functions, such as procurement, facilities management, or IT support.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: Re-establishing the SSC aligns with FFU's mission of providing high-quality education and research while ensuring efficient operations.
- External customers and internal clients: The SSC will directly benefit both external customers (students, faculty, and staff) and internal clients (departments and units) by providing efficient and responsive services.
- Competitors: The recommendations consider the competitive landscape and aim to create a sustainable advantage by leveraging technology and innovation to deliver superior service.
- Attractiveness - quantitative measures: The recommendations are based on a comprehensive business case that quantifies potential cost savings, efficiency gains, and improved service quality.
- Assumptions: The recommendations are based on the assumption that FFU has the necessary resources and commitment to invest in the SSC and its technology infrastructure.
6. Conclusion
Re-establishing a shared service center at Fern Fort University presents a significant opportunity to improve operational efficiency, enhance service quality, and achieve strategic objectives. By adopting a phased approach that leverages technology, builds internal expertise, and fosters collaboration, FFU can create a sustainable and value-driven SSC that meets the needs of both internal and external stakeholders.
7. Discussion
Alternative options considered include:
- Continuing with the current outsourcing model: This option carries risks, including potential cost overruns, lack of control, and difficulty in adapting to FFU's specific needs.
- Fully outsourcing the SSC to a different provider: This option may offer cost savings but could lead to similar challenges as the current outsourcing model.
Key risks and assumptions:
- Risk of insufficient internal expertise: FFU needs to ensure that it has the necessary internal expertise to manage the SSC effectively.
- Risk of technology implementation challenges: The successful implementation of new IT systems requires careful planning, execution, and ongoing support.
- Assumption of sufficient budget: FFU needs to allocate sufficient resources to invest in the SSC and its technology infrastructure.
8. Next Steps
FFU should immediately initiate Phase 1 of the project, focusing on assessment, planning, and identifying potential partners. Key milestones include:
- Month 1-3: Conduct a comprehensive assessment of the current SSC operations.
- Month 3-6: Develop a detailed business case and IT strategy.
- Month 6-9: Identify and evaluate potential partners.
- Month 9-12: Begin implementation of Phase 2, focusing on team building, training, and system deployment.
By following these steps, FFU can successfully re-establish its SSC and achieve its strategic objectives of improved operational efficiency, enhanced service quality, and a more responsive and agile organization.
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Case Description
In a search for an optimized global business service operation, firms set up and relocate shared service centres around the globe. This teaching case examines the migration process of IBM procurement shared service centre from Budapest to Sofia. The teaching case describes the challenges that the teams in Budapest and Sofia faced and the migration methodology applied and later on adapted in order to meet the transition objectives. The teaching case concludes by challenging IBM's migration approach.
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