Hi,
I am currently undertaking a piece of work looking to undertake some high level analysis into the feasibility of introducing a shared service (the analysis will feed into an outline business case). The project board are heavily focussed on financial savings (and whether the shared service would achieve any) and I'm am conscious that a large bulk of the savings will come from economies of scale (through having a pooled central resource) however I'm unsure as to how I would calculate this. The as-is data capture has been high level due to project timescales (have captured volumes, % FTE, unit costs/FTE etc.) and I could easily apply a ratio (i.e. assume that the economies of scale would allow activities to be undertaken 20% quicker) but it is how I come up with the ratio that I'm struggling with!
Any help/advise or suggestions would be gratefully received!.
Rudyard
Kippers Try these sites see http://www.cio.gov.uk/documents/ss/toolkit/design/g20.pdf where they've broken the service offering into the core -high-level processes, such as procure-to-pay, invoice to cash etc. I have done an enterprise architecture assignment for a large shared services and we approached it in a similar vain. What we have found though is these mesaures mean nothing (as they are relative), for example, "Said Company" needed 3 person to process 1000 pay slips; whereas another (Bank) needed 1 person to process 1000 payslips. However, Said company had 50,000 employess and the bank had about half; Said company was within the top 3 prefered employees in the country, whereas the Bank did not rank at all. So economies of scale is not the final arbiter/criteria; you need to context them in terms of the value ad. warm regards, K
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