News

Business services of the future: More digital, more intelligent

May 7, 2020

Multinational companies in various industries have pursued value creation opportunities by deploying these global business services (GBS) model to build a differentiator in the market.

The best companies today, know that the recipe for success in business has many crucial ingredients. Some of those attributes may be clear to customers, where they can see a clear superiority of quality as a visible difference in brands. Amongst rest, one essential component is the internal structure that allows them to create and celebrate the difference. To perform at their best, it is necessary that the companies create a framework that leaves customer-facing parts of the business free to concentrate on delivering quality and value to their customers. Clearly, this demands much higher process efficiency and technology optimisation, something the retail industry has recognised as an imperative over the last few years.

The evolution service strategies driven by process excellence

In the recent past, recognition of this strategy has resulted in companies adopting “offshoring”, “outsourcing” or building their very own “shared services”, which later evolved to “GIC” “GCC” and many more. One could go so far as to say that the biggest value addition that MNCs have provided, in fact, over the last three decades since their entry into the economy, is the evolution of simple outsourcing to “offshoring”. Will added process efficiencies, this became “Shared services”, and then grew to become a multifunctional “Global Business Services model” built on efficiency, adaptability, scalability and capability. This has been their most disruptive contribution to the Indian retail industry.
Business services of the future: More digital, more intelligent

Multinational companies in various industries have pursued value creation opportunities by deploying these global business services (GBS) model to build a differentiator in the market. Traditional shared-services organisations focus on supporting tasks associated with a single function only. While a true, GBS, comprises of specialists from multiple functional domains—IT, finance, human resources, contract management, procurement, supplier management and so on. The biggest differentiator for a world-class GBS is the concept of owning end to end with the ability to thinking and behaving as a single office environment, namely from the back office to headquarters (mid-office) to the shop floors or front-line sales team (front office). Moreover, the fundamental GBS groups’ overarching mandate is to provide the business with a comprehensive set of services at a low cost, at agreed-upon levels of quality focusing on the business outcome rather than specific Service levels.

Today, many companies are re-examining—and, in some cases, backing away from—their commitment to GBS for several reasons. Some prefer to argue that the model has introduced greater organisational complexity but not necessary performance upgradation. Specifically, around value creation, cumbersome governance, speed of execution, leakage of talent, lack of agility and especially what I call “Watermelon syndrome” are few of the other key reasons. Like the go-between the green and red parts of the fruit, in this case, it signifies the gap between GBS organisation SLAs, which are the “green” and the organisation itself, which is “red”. This void is made of expectancy – where the organisation and its SLAs of GBS do not meet at all.

The next steps- Intelligent business services

The single biggest reason why, in most of the cases, GBS fails to deliver value is because of the inability to have a vision and a clear strategy on how to execute a GBS model. In most cases, the reason is a lack of focus on strategic execution. While the model is still relevant, it is important to re-think and redefine the execution and operational process. With technology innovation appearing every day in the shared services space, it is critical to use these new technologies to build the next-generation business services that are digitally enabled and intelligent. An intelligent business services solution would enable far greater efficiencies and much higher service excellence. Here are my five principles for building one:

⦁ P&L benefit: GBS teams have to continue to deliver the same cost and productivity advantages they always have, but they must be conscious and aware of how to bank them successfully. The P&L upsides must be tracked, and it should be visible in the corporate P&L. This should be delivered through a meticulous focus on cost drivers and obsession to improve run-rate rather than a one-off.

⦁ Digitalisation: The rise of digitalisation enables GBS groups to provide benefits that go beyond cost. GBS teams can augment their resourcing through proper automation strategy, virtualisation, analytics, and other digital tools and capabilities into their existing operations. This step will help in standardising the processes to eliminate non-value-added touches, and thus develop and deploy more effective ways to support the business units. In this process, all incoming works are structured, validated and authenticated in a digital format (and remains digital), and are tracked by a digital workflow system. Only exceptions are passed into “human” operations which are augmented with RPA Bot (made smarter by AI) that can automatically accomplish the desired work on behalf of the operations team, creating “Hum-Bot” operations.

⦁ Hum-Bot operations: The uniqueness of Hum-Bot operations is that the BOTs carry out “rule-based tasks” while colleagues move up the value chain to perform more “intelligent” work. This connects the “dots” within the organisation by leveraging data science and data analytics and thus generating long term value as a true “Business Partner”.

 Leveraging power of data: Most of the GBS have been unable to join horizontal processes like lead to cash, trouble to resolve and concept to market. Instead of which, they have focused traditionally on vertical capabilities like Finance, Payroll, procurement etc. without connecting the dots and using the “intelligence” of business services to create “un-tapped” value opportunities which are perpetual unknowns for an organisation.

⦁ Business continuity & security: Being an “intelligent” business services comes with a responsibility to deliver business continuity and security of data during disasters. During these dire times amidst Covid19, GBS leaders have the bent of unenviable battle to run their operations seamlessly and continue to master their business continuity plans while one country after another goes into the lockdown mode. Therefore, this “intelligence” needs to be converted from tacit to explicit knowledge, which requires knowledge management tools to ensure the business is process led rather than “human” led and data is secured and managed with the utmost respect for stakeholders.

The logical next step for the global business services model of tomorrow is intelligent, multifunctional, fully integrated, end-to-end process-oriented model, with the power to transform the Core of the enterprise.

It can no longer be a “subservient” offshore/nearshore location which “does what they are told”. Instead, this requires to be a horizontal organisation which creates “untapped value opportunities” for the organisation. It would also, additionally, make it possible for the rest of the enterprise to concentrate all its energy on a sustainable increase of revenue and even exploration of new opportunities and new markets.

For the days to come, this could well be the most vital ingredient in the recipe of growth.

You May also like...

Great Customer Offer – The Economic Times

Big Data Analytics -Taking a Deeper Dive, Financial Express

“Is internal comms about to get interesting?”, PR Moments

Training Gen-Y employees to be leaders by Nick Williams, Human Capital

Madhu Menon – CFO, Tesco HSC Participates In Bloomberg India CFO Summit 2014

We are investing more in tech as digital property is the way forward: Tesco CIO, the Economic Times

Company Encourages Employees to Go Green, The New Indian Express

Business Women Get More Opportunity, DNA

In Pursuit Of Happiness_The Hindu Business Line

The Future of Big Data in Retail, Images Retail

Garden away those corporate woes – Bangalore Mirror

Hackathons Morph Into Recruiting Vehicle, The Hindu

Tesco HSC Steps to Clean Karunashraya Lake, Bangalore | CSR Vision

Is Diversity Your Company’s Most Resounding Mantra? by Anju Sethi, Head, Learning and Development, Tesco HSC | CXOtoday.com

Oh Baby! Why women can’t break the IT ceiling | Bangalore Mirror

Decade-old Tesco captive still strong, Business Standard

Glen Attewell Interviewed On NASSCOM Website’s Face 2 Face Column

IndiaCSR: Tesco HSC Launches Sustainability Initiatives For Greener Future

OUR AIM TO PLANT TREES

Plan to protect dwindling wetlands of Bengaluru

NEW LIFE TO PLANTS IN PARK: Eenadu

In Retail, Domain-specific Skills Must For Effective Customer Servicing – TimesJobs.Com

Cos Now Hire Storytellers to Mentor Staff – The Economic Times

Training The Managers, The Tesco Way – HR Katha

Every Bit Counts – Human Capital

Lay The Foundation of IT With Agile Technology – CIO Review

For Children Of Migrant Worker – Bangalore Mirror

When change is the only constant – Times Ascent

Staying power of the new workplace

From Nottingham To Whitefield, Metro Life – Deccan Herald, October 5, 2015

Tesco HSC Announces Corporate Name Change to Tesco Bengaluru

From Seeing The Dawn Of Windows To Being The Director Of Technology For Tesco, Bengaluru, Vidya Laxman’s Journey – YourStory.com

Expat’s Diary: For Tesco Bengaluru’s HR-Head, ‘Passion’ And ‘Relationship’ Hold The Key To Indian Work Culture: HR Katha

Boss’s Day: Be a leader, not a ‘boss’ – Timesjobs.com

Gender Diversity’s Good, But Where Is It? – CXO Today

5 Ways To Appreciate An Employee – The Economic Times

Technology Consulting – What Does the Future Hold? – Consultants Review

Tesco Bengaluru Partners With Lithium Urban Technologies to offer a pioneering and emission-free transportation experience for its employees

Tesco Bengaluru Partners with Lithium Urban Technologies to offer emission-free transportation employees: India CSR

Eco-friendly Cars: Samyuktha Karnataka

Emission-free Transportation : Eenadu

Tesco, Lithium Urban Joins Hands: Deccan Herald

Tesco Bengaluru opts for green transportation with Lithium: The Times of India

Need to Reassess Traditional Approaches: People Matters

Marathon Mania: The Economic Times

Women techies log on to trendy, soft wear – Bangalore Mirror

How Retail Giant Tesco Handled The e-comm Onslaught – The Hindu BusinessLine

Investment In People Makes Good Sense: CXOToday

Deck the halls – Deccan Herald

Seminar on M-commerce Held – The New Indian Express

Staying power of the new workplace

Looking inside contemporary application architecture – Silicon India

Employee Volunteering is a key element in Tesco’s CSR efforts

Press Release: Tesco Bengaluru Wins Best Practice in Data Analysis Strategy Award

Tesco keen to work with Indian start-up ecosystem – Business Standard

TechGig: Women Achievers: It is important for women in technology to be seen, heard and leave an impact, says Tesco Bengaluru tech director Vidya Laxman

New Indian Express: Women Had a Blast

Bangalore Mirror: City Team Feeding UK’s Hungry

Economic Times: Whitefield Builds a Kingdom of Its Own

Hindustan Times: Want the job? Here’s why you should ditch the professionally-written CV

IndiaCSR: Tesco Bengaluru celebrates World Environment Day

Silicon India: Making Your Organization the Best Workplace

Company CSR: Tesco Bengaluru Supports Sankara Eye Hospital To Enable 430 Free Eye Surgeries

CSR India: Tesco Bengaluru supports Sankara Eye Hospital to enable 430 free eye surgeries

Tesco Bengaluru Plants 6500 Saplings Together with Local Communities to Increase City’s Green Cover

Prajavani: Tesco’s Tree Plantation Drive

TimesJobs.com: A Fresher’s Guide to The Technology Industry

Press Release: Tesco Bengaluru hosts Technology Day – Ignite 2016

Tesco Bengaluru bets on agile market push

Tesco Bengaluru installs e-toilets in Whitefield

Tesco Bengaluru Extends Maternity Leave to 22 Weeks

Forbes: Big Data At Tesco: Real Time Analytics At The UK Grocery Retail Giant

Human Capital: Technology At The Very Helm!

CSR Mart: Eco-friendly Transportation for Colleagues

Mint: Lithium Urban Tech paves the way for EV revolution in India’s cab market

ETRetail: Dev-ops adoption in retail in India

Human Capital: Creation of Measurable Goals

Press Release: Tesco Bengaluru renews its commitment to serving Tesco shoppers and colleagues at dedicated shared service centre

Outlook Business: Ride to rejuvenate

Be Grateful, Positive And Strong Urges Deepa Malik at 2017 IWD Event

ET CIO: Tesco Labs has up to 50 projects on the go at any one time: Tesco Bengaluru’s Priyadarsanie Ramasubramanian

Deccan Herald: Keeping a close watch

Deccan Chronicle: Corporate sector leads way in implementing new maternity bill

The Statesman: Path of progress

YourStory: Tesco’s Glen Attewell: ‘My father was a weaver, mother worked in textiles, they pushed me to succeed’

Press Release: Tesco Bengaluru appoints Sumit Mitra as CEO

ET Retail: Retail supply chain planning and optimization

Financial Express: Maternity Benefit Bill, 2016: From Anand Mahindra to TeamLease and Paypal: Will this hurt employment of more women? Here’s what they said!

World HR Dairy: Maternity Benefit (Amendment) Bill, 2016 increases paid Maternity Leave to 26 weeks in India | Major Highlights and Industry Reaction

TheDrum: Apple, Google, Lego, Tesco and BMW top UK’s most loved brands on social media

Economic Times: Bye-bye corner office: It’s one team, one space

Press Release: Tesco Bengaluru reinforces commitment to sustainable practices through World Environment Day activities

Business World: We Go Beyond The Mandated 2% For CSR: Aniisu Verghese, Tesco

Economic Times: Here is how companies are learning from millennials’ mistakes

Deccan Herald: Rise of AI redefining retail

Financial Express: Tesco Bengaluru CEO Sumit Mitra: We believe in driving a culture of innovation

Economic Times: 5 ways to delegate decision making

The Economic Times: To bridge gender gap, companies going big on innovation

Dr. Sumit Mitra wins ‘CEO of the Year’ at the Future Leaders Summit and Award 2018

Tesco in Bengaluru collaborates with Indian Institute of Science for a technology fellowship programme

Tesco Leaders at NASSCOM Product Conclave 2018

Securing mobile apps – Preventing MiM attack

Bengaluru goes from technology capital to talent hub as e-tailers hunt for IT skills

Tesco establishes a Business Services Centre in Budapest to serve its Central European operations

How to make an organisation an awesome place to work

We are a Great Place To Work® certified organisation.

Applied data scientists – A natural evolution for software engineers?

Tesco Business Services – UK Receives Process Improvement Award at the Engage 19

Tesco establishes a Business Services Centre in Budapest to serve its Central European operations

Tesco collaborates with NASSCOM Foundation to set up its first Nook in Bengaluru

Tesco, Nasscom to improve employability

My First Job: Sumit Mitra,CEO, Tesco Global Business Services

Read interview of Sumit Mitra; he is CEO of TESCO Global Business Services

Shiva Chinnasamy of Tesco on the evolving role of a technology leader

Top 5 Key Skills A Good Data Scientist Should Have

Bengaluru is central to how we run Tesco, says CEO Dave Lewis

Dr. Sumit Mitra – CEO, Tesco Business Services & Tesco Bengaluru is now on Confederation of British Industry (CBI) advisory board for India

NASSCOM Leader Talk: Interview with Dr. Sumit Mitra, CEO – Tesco Business Services & Tesco Bengaluru

Business Today: Tesco Bengaluru Helps Over 320 Underprivileged Youth Stand Tall Through Life Skills and Vocational Training and Job Placements.

TimesJobs.com: Leader’s talk: Sumit Mitra, CEO, Tesco Business Services

Economic Times: Develop The Habit of Collaboration

Entrepreneur India: Make Your Employees Feel Like the Founder

Tesco announces launch of community-based clean water programme in rural Bengaluru

Entrepreneur.com: Why Innovation in Hiring Has Become the Need of the Hour

Dr. Sumit Mitra wins ‘CEO of the Year’ at the Future Leaders Summit and Award 2018

Tesco Bengaluru appoints Sumit Mitra as CEO

Tesco Bengaluru reinforces commitment to sustainable practices through World Environment Day activities

Tesco Bengaluru renews its commitment to serving Tesco shoppers and colleagues at dedicated shared service centre

Tesco Bengaluru hosts Technology Day – Ignite 2016

Tesco Bengaluru Wins Best Practice in Data Analysis Strategy Award

Tesco HSC Announces Corporate Name Change to Tesco Bengaluru

Economic Times: Companies go liberal in giving time off to new dads

Analytics India: How Tesco Bengaluru Is Working On Using AI, VR And 3D Modelling In Retail Industry

Tesco Bengaluru Participates in Women – Only Hackathon

Dr. Sumit Mitra wins ‘CEO of the Year’ at the Future Leaders Summit and Award 2018

Tesco Bengaluru inaugurates first community career development Centre in partnerhsip with NASSCOM Foundation

Delivering The Most Compelling Offer For Customers

Tesco Business Services is recognised as one of the top 20 Most Admired Shared Services Organisations in the World by SSON

Waste food to Plant Wealth: Tesco helps farmers with compost

Sustainability Practices at Tesco

Business services of the future: More digital, more intelligent

How Bengaluru kept UK’s Tesco retail ops going during Covid-19

Vidya Laxman, Director, Tesco Technology: A bag full of opportunities will soon overflow with AI

Refuelling India’s Tech Economy

Top skills companies will look for in the post COVID era

How Analytics Is Shaping The Retail Industry In India

BCP PlayBook: Tesco put people at the heart of its COVID-19 resilience plan

Staying power of the new workplace

Tesco Business Services receives four awards at the ‘Impact Annual Awards Asia 2020’ organized by Shared Services & Outsourcing Network (SSON)

Tesco Bengaluru appoints Ramamoorthy Rajagopal as Finance Director

Tesco Bengaluru Appoints Nimmi Sebastian as Head of Communication & CSR