The Hackett Group's research found that business services budgets and staff are expected to decrease just slightly in 2013, with operating budgets dropping by .5 percent and staff reduced by 1.7 percent. Both numbers are fairly on par with those for 2012. At the same time, revenues have increased by about 7 percent annually over the past two years, creating a productivity gap that requires business services organizations to do significantly more with fewer resources. To accomplish this, many companies are choosing to increase automation or eliminate non-value added work.The Hackett Group's research found that to support the new borderless business environment, companies are focused in four areas in 2013: Fostering the agility required to achieve profit goals when revenue falls short of expectations, and for business services functions to add value without adding to headcount and budget; Continuing process improvement efforts to move toward a more standardized and global approach to the business and to business services operations; Maturing the concepts of process ownership beyond the basics of process standardization, and creating value by working across functional, business unit and geographic borders; Deriving actionable strategies from the mountains of potentially valuable data generated by business services activities. Enabling growth by fully implementing enterprise process ownership is a major priority for most companies, the research found. More than a third of all companies expect to have cross-functional end-to-end process ownership in two to three years, a more than 4x increase over today. Nearly another third expect functional level ownership. Across business services, more than 90 percent of all companies expect to have either full process ownership across the entire enterprise or at least multiple geographic/business units in two to three years. The percentage of companies with ownership across the enterprise is expected to nearly double, to nearly half of all companies. Strong growth is also expected in tech deployment, managing process talent, tech standards, and master data governance.
While GBS is a major pillar for establishing a global growth platform, GBS leaders have struggled to meet the high expectations company leadership has had for them outside of cost savings, including alignment with corporate and business strategic goals and delivery of productivity improvements and high-quality service.Finally, the study found that business services functions will be making strategic investments in business intelligence in 2013, and furthering data stewardship initiatives such as master data standardization and cleansing. The globalization of business functions is in part driving the increasing need for knowledge about customers, suppliers, employees and operations. More details on The Hackett Group's research is contained in the full Enterprise Key Issues Research Insight, which is available at no cost (registration required) at http://www.thehackettgroup.com/research/2013/key2013enex/ About The Hackett Group The Hackett Group (NASDAQ: HCKT), a global strategic business advisory and operations improvement consulting firm, is a leader in best practice advisory, business benchmarking, and transformation consulting services including strategy and operations, working capital management, and globalization advice. Utilizing best practices and implementation insights from more than 7,500 benchmarking studies, executives use The Hackett Group's empirically-based approach to quickly define and implement initiatives that enable world-class performance. Through its REL group, The Hackett Group offers working capital solutions focused on delivering significant cash flow improvements. Through its Archstone Consulting group, The Hackett Group offers Strategy & Operations consulting services in the Consumer and Industrial Products, Pharmaceutical, Manufacturing, and Financial Services industry sectors. Through its Hackett Technology Solutions group, The Hackett Group offers business application consulting services that help maximize returns on IT investments. The Hackett Group has completed benchmark studies with over 2,800 major corporations and government agencies, including 97% of the Dow Jones Industrials, 86% of the Fortune 100, 90% of the DAX 30 and 48% of the FTSE 100.
More information on The Hackett Group is available: by phone at (770) 225-7300; by e-mail at email@example.com.