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Shared services has become a prominent operating model for business support services during the past two decades. Many large companies have implemented some form of shared services. Now that companies and organizations are realizing the benefits from the first generation of shared services, many are looking for enhanced returns that unlock more value, often by further leveraging shared services to a new threshold of impact where it can contribute to overall business strategy and help consolidate competitive advantage. This next generation of the shared services business model is known as the integrated business services (IBS) model.
“Integrated” truly is the operative word to characterize IBS and the essence of what distinguishes it from other models of shared services. The convergence of IBS with procurement operating models correspondingly occurs by way of five basic integrations:
Regardless of sector or enterprise, IBS organizations share a number of common characteristics of incremental value, which also impact the setup of the procurement operating model.
Companies are evolving their procurement operating models into a setup of front, middle, and back office organizations supported by a local tiered approach. This structure is well suited to address typical procurement challenges and is already driving significant benefits.At the same time, many companies are on a more extensive journey from multifunctional shared services to Global Business Services and then to Integrated Business Services. Arriving at the IBS destination affords an opportunity for synergies that can help procurement drive different, incremental benefits like:
End to end governance and enterprise wide process efficiencies through standardization.
Improved agility in facilitating interaction with internal customers and suppliers.
Leverage of cross functional risk management, analytics and supply chain integration.
Procurement executives should embrace this evolving model and align it with their procurement vision. As mounting competitive pressures make it imperative that enterprises unlock more value from their organizational assets, is your company establishing the foundations necessary to enable the Procurement function to fully add value.
Christian Campagna is a managing director in Accenture’s Management Consulting practice. Mr Campagna is the lead for the Integrated Business Services practice globally. He brings more than 22 years of experience in leading large transformational programs that help clients develop leading edge solutions for the finance function, as well as other general and administrative functions.
Kris Timmermans is a managing director in Accenture’s Management Consulting practice, and leads Accenture’s Global Sourcing & Procurement practice. In the last 20 years with Accenture, Mr Timmermans has led a large number of global procurement and supply chain transformations for companies in the Consumer Goods, Automotive, Pharmaceutical, Natural Resources and Chemicals industry. He holds a master’s degree in Mechanical Engineering from the KULeuven and MIT, Boston. Mr Timmermans is a member of the Procurement Leaders Advisory Board and P50.
Kai Nowosel is a managing director in Accenture’s Management Consulting practice, and leads Accenture’s Sourcing & Procurement Services practice in Europe, Africa and Latin America. He has more than 18 years of experience in the procurement field the and prior to his role at Accenture, Mr Nowosel held various purchasing leadership positions at multinational companies globally. Transforming the Sourcing & Procurement function to a value adding business functions with the focus on innovation, partner management and bottom line impact has been his primary area of focus.
Markus Hoppe is a senior principal in Accenture’s Sourcing and Procurement practice. He has more than 14 years experience and has been responsible for many large procurement transformation programs. He focuses on value opportunities through end-to-end source-to-pay transformations specifically procurement operating models that leverage Integrated Business Services. He holds a masters degree in Business Administration from Duke Fuqua business school.
Robert E. Booth a managing director in Accenture’s Management Consulting practice, and is the Sourcing & Procurement Business Services lead for Consumer Goods & Services for Europe, Africa & Latin America. Mr Booth has more than 20 years experience in business and professional services delivery in various sales and delivery roles in consulting, technology and Business Process Outsourcing. He has a background in procurement and back office transformations encompassing people, process and technology change, typically supported by SAP, Oracle or Ariba technology.
September 4, 2013
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