A new age is dawning in service delivery, one that forward-looking companies cannot afford to ignore. For years, the primary focus for enterprise process improvement was cost reduction, largely centered on labor arbitrage and efficiency gains in non-value-added transaction activities. The most progressive companies, however, have long passed the point where these strategies create advantage.
Today complex businesses are increasingly using end-to-end processes with global stakeholders. A company that manufactures goods in China may be using parts shipped from all over the world, with an end product sold in North America.
Such global processes require a global outlook, forcing companies to look "over the horizon" at operations from an end-to-end perspective, with a view toward standardization. Business outcome, rather than mere cost reduction, is the new watchword.
Companies today operate in a non-linear and dynamic environment—one that is enhanced by new technologies and transportation advances that have created a marketplace full of motion, change and emerging events. While laggard companies continue to focus on cost savings, progressive pioneers are working to adapt their delivery structures to accommodate change rather than manage the status quo. More and more, organizations are moving toward centralized, standardized delivery models built on a hub-and-spoke strategy.