DALLAS, April 27, 2020 /PRNewswire-PRWeb/ -- For those enterprises striving to create a culture of innovation, Global Business Services divisions* can be an enormous asset, markedly accelerating the innovation journey and driving the enterprise innovation agenda, according to Everest Group research.
In its newly published report, Innovation in GBSs: Pinnacle Model® Analysis, Everest Group examines 51 GBS organizations and identifies Pinnacle™ (best-in-class) GBS centers—those entities that are achieving superior outcomes because of their advanced capabilities.
Collectively, Pinnacle GBS organizations debunk six common myths associated with innovation.
1. Myth: Bigger and older GBS centers are not agile and lean enough to deliver better business outcomes. Reality: Bigger and older GBS centers deliver better business outcomes.
2. Myth: GBS centers should not focus on in-house technology development. Reality: Pinnacle GBS centers primarily develop mature technologies in-house while leveraging ecosystem partners for niche technologies.
3. Myth: Mature GBS centers deliver only high-end innovation. Reality: Pinnacle GBS centers focus mostly on incremental innovation.
4. Myth: The GBS innovation team should have more leadership members to ensure better outcomes. Reality: Pinnacle GBS organizations exhibit a balanced team structure while other GBS organizations are more top-heavy.
5. Myth: Centralized innovation teams in GBS centers and parents are essential to deliver business impact. Reality: A hybrid team structure at the parent level and an innovation head or dedicated steering committee at the GBS center level have proved to be more successful.
6. Myth: Service providers and technology vendors are the most important value creators in the innovation ecosystem. Reality: Pinnacle GBS organizations extensively leverage a mix of service providers, technology vendors, and startups for driving innovation.
"The entities we've identified as Pinnacle GBS centers are adept at leveraging their unique position and capabilities to help their parent organizations build truly disruptive innovation capabilities," said H. Karthik, partner at Everest Group. "This is demonstrated by significantly higher ROI and cost savings as well as operational and strategic impact."
Pinnacle GBS centers have been able to achieve significant business impact by effectively driving their innovation engines. Here are a few examples:
- Cost impact: Pinnacle GBS centers generated 1.5X higher return on investment (ROI) and cost savings than other GBS centers. An example of an innovation initiative with cost impact is identifying potential opportunities to consolidate multiple product lines and processes, thereby realizing the benefits arising from economies of scope.
- Operational impact: Pinnacle GBS centers have achieved 1.9X greater operational impact than other GBS centers. For instance, a leading Banking, Financial Services and Insurance (BFSI) GBS organization built a smart contracting platform to seamlessly process unstructured data and automate multiple transactional processes, reducing FTE time.
- Strategic impact: Pinnacle GBS centers delivered 1.6X more strategic impact than other GBS centers. An example of a GBS center having significant impact is a leading electronic and hi-tech GBS organization who leveraged next generation technology solutions to revamp its existing cold chain to preserve and increase the shelf life of perishable goods and chemicals, ensuring the quality through last-mile delivery to the end customer.
***Download a complimentary abstract of the report.***
May 7 Webinar: How GBS Centers Can Leverage Innovation to Prepare for the Economic Downturn
Everest Group is hosting a complimentary webinar to assist senior enterprise executives in understanding how they can effectively leverage their GBS organizations for driving the enterprise innovation agenda. The webinar will address these questions:
- For what kinds of innovation initiatives are enterprises leveraging the GBS model?
- How does the current uncertain environment present a significant opportunity for GBS centers to build and demonstrate innovation?
- What business outcomes have Pinnacle GBS centers delivered for their organizations?
The live webinar will be held on Thursday, May 7, at 9 a.m. CDT.
***Register here.***
About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global enterprises, service providers, and investors. Through our research-informed insights and deep experience, we guide clients in their journeys to achieve heightened operational and financial performance, accelerated value delivery, and high-impact business outcomes. Details and in-depth content are available at http://www.everestgrp.com.
*Note: For the purposes of this report, Everest Group uses the term GBS to include Shared Services Centers (SSCs), Global In-house Centers (GICs) and Global Capability Centers (GCCs), although distinctions in these business models can be made.
SOURCE Everest Group
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