Global Research Director, KPMG LLP
The pool of organizations participating in this maturity assessment effort includes some of the largest and most mature GBS organizations in the world
KPMG LLP (KPMG) has been conducting an ongoing series of global business services (GBS) assessments in which it works with organizations’ top GBS executives to assess the maturity of their GBS operations across ten dimensions, such as governance, commercial orientation, process ownership, and enabling technology. Assessed on a five-point scale are both the current state as well as aspiration targeted maturity levels three years out. The pool of organizations participating in this maturity assessment effort includes some of the largest and most mature GBS organizations in the world as well as organizations with smaller or newer (in terms of how long a format GBS strategy and operation has been in place) GBS operations.
The most mature areas of GBS operations across all participant firms, based on average current maturity scores, are services portfolio and strategy. Services portfolio include elements such as functional scale and business unit and geographical scope while strategy includes elements such as integration of GBS in overall business strategy and transformation agenda. These are also the two dimensions with the highest average targeted aspirational scores, though they are starting from the highest current base. The graph below illustrates current and aspirational scores for the largest and most advanced GBS organizations participating in the assessment study, though scores from smaller and newer GBS operations also rank services portfolio and strategy as number one and two.
While it is expected that GBS organizations will continue to drive maturity efforts in core areas such as services portfolio and strategy, it is insightful where there are plans to increase investments and accelerate maturity improvement efforts. The average current maturity scores for data and analytics (D&A) are ranked last for all classes of participants in the assessment study. The D&A dimension includes elements such as data and analytics deployment and GBS involvement and capability. The gap between current and aspirational maturity levels is greater for D&A (71 percent expected improvement in maturity level scores in three years) than for any other GBS maturity dimension (average expected improvement is 40 percent).
The scope of D&A usage is primarily inward focused into supporting GBS operations for organizations with lower levels of maturity but more mature firms aspire to, and some today are, providing D&A capabilities back into the organization as whole. The latter may include providing performance metrics and analysis to executive leadership, but increasingly progressive GBS organizations are exploring how, through the application of advanced D&A techniques and services, to support core externally focused activities such as sales and marketing, new market penetration, product and services design, and supplier and supply chain management.
Extending the scope of D&A usage outward from the GBS organization to support the business, especially for external-facing activities, is obviously valuable to the business but also a critical means for the GBS organization to articulate and deliver on a value proposition based on cost reduction and transaction process improvement. KPMG has seen an increasing number of GBS organizations “hit a wall” at level three maturity, unable to progress beyond delivering (diminishing) cost savings and managing consolidated transactional services. Leveraging D&A capabilities to drive measurable business value is one means to scale this wall.