Building Shared Services at RR Case Study
An analysis of the Building Shared Services at RR reveals that various challenges facing the company require immediate response. This will ensure that the company does not lose its customers and face closure at worse. This is the case because many customers have raised their concerns regarding these issues (McKeen & Smith, 2012). One of the pertinent issues is based on the decentralization of operations within the entire organization where each of the business operates independently. All the independent business units have the authority to develop and implement new projects besides making decisions without necessarily collaborating with the other business units or the entire firm (Cullen & Parboteeah, 2010).
Summary of Facts, Issues, Implications
With the decentralization of operations, the firm is currently facing various issues such as issuing customers with receipts of each of the four products that the company sells instead of issuing them with only one receipt to cover the entire transaction. Another issue facing the firm because of the decentralization of its operations is its inability to comply fully with the Sarbanes-Oxley standards. This may eventually attract some legal repercussions from the government. Its inability to comply with these regulations arises from the inability to account for all its operations (one of the requirements of the act) since the independent business units do not pursue a common goal or strategy. Therefore, it is imperative the general management puts in place a shared IT system, which is standardized among all the various units in order to streamline the firm’s operations in all its business units (McKeen & Smith, 2012).
Several advantages come with the adoption of a shared service system of IT. A shared IT service system has the capacity to solve the issues identified above the face the firm. Since IT will be fully adopted in all the company’s activities, it is important to put in place a single centralized and standardized IT operating system. Having a single customer service for RR communications, will enhance the firm’s decision-making process by making them faster and more effective across all the business units and departments. This is because all departments will enjoy easy access to company information and in real time. Consequently, the system will ensure smooth running and sharing of information without having important information that may add value to the entire firm being restrained in a given department. In addition, having a single customer service will ensure that clients do not necessarily visit the different business units in order to access company information (Cullen & Parboteeah, 2010).
However, the firm will be able to record all the queries and purchases from a single site and provide customers with all the information they need from the company. Furthermore, this will enhance the company’s ability to tackle some of the issues that its customers are facing. The single customer service center and the use of a centralized and standardized IT operating system are advantageous because of the relative ease when monitoring the units and their operations. In fact, their contribution to the entire firm will be evaluated easily. Furthermore, the company will now be able to monitor its financial operations easily and effectively since all its financial information will now be reflected in a single database centrally (McKeen & Smith, 2012).
In order to develop and effective strategy, it is important to ensure the support of the top-level management and in this case, the support of the division president. This appreciates the fact that the divisional president will manage all the company’s units. The divisional president’s willingness to ensure the successful implementation of the shared services will work greatly in streamlining the implementation process and functions of the entire company. During the first stages of developing this strategy, it is important to ensure that the system is highly beneficial to all the stakeholders. This arises from the fact that the company’s customers and other stakeholders such as suppliers are opposing the current system (Cullen & Parboteeah, 2010).
Consequently, since the remuneration of the divisional president is based on performance, ensuring that the system enhances the firm’s performance will be an added advantage and guaranteeing the president’s support. The president is experienced in controlling of the firm’s activities: it is important to point out that the new system enhances control and ensures that the different units work in harmony through easy monitoring besides easing the customer’s experience. It is important to make include the president’s part of the implementing team in order to ensure that their ideas are put into consideration during the adoption of the system (McKeen & Smith, 2012).
For instance, it is the concern of various presidents that the new system would force them to abandon their projects. However, as part of the implementation team, they will understand that the continuity of their projects is secured after the adoption of the shared service. Furthermore, the presidents will appreciate that change will only take place via the IT system. This will eventually harmonize the activities of the entire organization and ensure that their support in the implementation of the new system is intact (Cullen, & Parboteeah, 2010).
One of the basic aspects of an enterprise system is that it creates seamless integration of information within a company and throughout all its various divisions including accounting and financial. Therefore, it is imperative to have a centralized IT system in order to achieve an enterprise system. A centralized IT system fosters the smooth flow of relevant information among the various divisions of the firm. Since the information pertaining to the division was corrupted, it is imperative that the company puts in place a centralized IT system in order to achieve an enterprise system (McKeen & Smith, 2012).
The case study reveals that there was a lack of universal information and enterprise IM approach in RR communications. This led to various challenges to the company’s IT and business departments. The firm was unable to handle its customers effectively since it lacked common information and enterprise strategy. Consequently, the company’s management is faced with the challenge of effectively monitoring the business operations mainly due to lack of common information. Furthermore, the various business units are unable to exchange information smoothly and hence each is unaware of the operations of the other units. This makes the company unable in developing a strong brand image since the various units are unable to work as a team. In addition, the process of compiling financial information for the entire firm and presenting it to the stakeholders is difficult if not impossible since it is unable to access the information required in the preparation of financial reports (Cullen & Parboteeah, 2010).
Various governance mechanisms and metrics are effective in the successful implementation of a shared customer service center. The firm needs to put in place the governance mechanism and metric that aligns divisional units with the firm’s IT department. The firm also needs to ensure that its metrics are properly aligned with transparency by putting in place an IT infrastructure congruent with its business operations. In general, the various departments should be involved in the governance mechanism especially on risk alleviation, regulatory issues, and opportunities arising. In addition, the metrics that are put in place should focus on making divisional information fit into an enterprise system (McKeen & Smith, 2012).
Cullen, J.B., & Parboteeah, P. (2010). International business: Strategy and the multinational company. New York: Routledge.
McKeen, J.D., & Smith, H.A. (2012). IT Strategy: Issues and Practices. Upper Saddle River, NJ: Pearson Education, Inc.
PLACE THIS ORDER OR A SIMILAR ORDER WITH GRADE VALLEY TODAY AND GET AN AMAZING DISCOUNT