What Digitization and AI Technologies can do to Accelerate the Transformation of Traditional GBS Setups

Saswata Kar is the Global Head of Master Data, Analytics & Data Sciences for Philips GBS, which was recently recognized as a top 20 most admired SSO & GBS by SSON Research & Analytics.

In addition to his role for Philips GBS, Saswata is also a recognized thought leader and ​global advisory board member for SSON Research & Analytics, a premier resource for all metrics, benchmarks and insights that impact Shared Services / GBS operations.

The Global Business Services (GBS) model has revolutionized how major firms conduct business, globally. As a key strategic enabler, GBS organizations by design bring new opportunities through the act of simplifying, standardizing, and automating processes for increased efficiency.

Curated and improved services with a broader scope of operations

Shared services are also a strategically astute bet on digital business models that can ensure long-term expansion in the digital era. Data analytics, RPA, intelligent automation, and Natural Language Processing are just a few of the cutting-edge technologies that have enabled GBS organizations to help their parent company's processes run more smoothly. For instance, at Philips GBS we use RPA and Deep Analytics knowledge to either help uncover hot spots that need to be remedied or for improved insights such as - optimizing lead times in supply chain, deploying RPA during transitions, and even automating training platforms.

Change is necessary for disruption and transformation

An integrated end-to-end process model with separate process ownership and the usage of cutting-edge auxiliary technologies in GBS is required for effective digital transformation. Future AI technologies are expected to be very significant as clients demand instant access to all information in the digital age, whether it be internal or external. To succeed in the future, businesses must first be digitally native to adopt digital technologies otherwise agility and adaptability becomes a challenge.

Let’s take the case of B2B Global Business Services with vast supply chains where the ability to piece together where each shipment is located will provide clients an edge. This will enable them to be informed of future movements and predict when things will arrive. All of this is possible because of the Internet of Things (IoT), which makes sensors accessible everywhere. These sensors provide real-time data updates to cloud servers. Because data from cloud servers can be examined every second, data scientists can then build models based on the previous movement of goods or orders to forecast where they will arrive, and at what time. With the aid of apps that data engineers and application developers design, customers can access these specifics as well. GBSs are anticipated to eliminate the boundaries between internal organizations like Finance, Supply Chain, Customer Services, Quality & Regulatory, IT, Data & Analytics, and so forth to provide global customers with real-time information - a journey we have embarked on as well at Philips GBS.

AI will come to the rescue in complex legacy, yet digital, solutions

I see a big opportunity within the digital space for the unification and simplification of digital tools (as the next wave of critical activities will involve AI tools). Organizations will need to be in control of such real time information from various BPMs, understand the multiple versions available and then connect the dots. To be in control of various tools, AI will come to our rescue.

Promote innovation, yet do it with responsible governance

The time to program the logic and procedure behind the selection and utilization of digital technologies, such as various BPM systems, already exists. Once GBS adopts these digital technologies, AI systems will automatically use these logic gates and business processes to make the best decisions based on prior experiences.

GBS is the agent of change, but only a select few have been able to kickstart the awaited digital revolution. This typically happens because of a lack of mandate, an inability to break free of the operate-and-improve paradigm, or the lack of a clearly defined playbook. The future is exciting, provided GBS management understands and supports AI adoption. Involving some regulation and continuously improving AI models by adding contemporary trends will also be hugely beneficial. GBS organizations that recognize this need, remain agile by adopting digital working practices and embed a strong governance model that resonates with the larger enterprise, are best placed to drive the future.