Short answer

When designing organizational structures for support functions like IT, consider a shared services model to leverage economies of scale and specialized expertise, but ensure clear definitions and stakeholder alignment.

Field: Innovation & Markets
Source: Communications of the Association for Information Systems (2014)
Method: Literature Review and Conceptual Framework Development
Evidence: Moderate effect

Implementing shared services models, particularly within Information Systems (IS) departments, can lead to significant cost reductions, enhanced service quality, and the development of new organizational capabilities. This innovation & markets research insight is drawn from a 2014 study published in Communications of the Association for Information Systems. Using Literature review and conceptual framework development, researchers explored how this design variable affects real-world outcomes. The key design takeaway: When designing organizational structures for support functions like IT, consider a shared services model to leverage economies of scale and specialized expertise, but ensure clear definitions and stakeholder alignment.

Study

Innovation & MarketsHigh ImpactModerate effect

Shared Services Drive Efficiency and Capability in IT Functions

Communications of the Association for Information Systems · 2014

Key Findings

01Shared services are adopted primarily for economic and strategic objectives, such as cost reduction and quality improvement.
02There is a lack of a unified definition and understanding of shared services within the IS research community.
03Key areas for future research include objectives, stakeholders, and the fundamental concept of 'sharing' in service delivery.

Application

Design takeaway

How to apply

Evaluate current support functions (e.g., IT, HR, Finance) for potential consolidation into a shared services model, focusing on clear objectives and stakeholder buy-in.

Project actions

01When proposing a new service or system, consider if it could be a 'shared service' for multiple user groups.
02Clearly define the benefits and target audience for any shared service you design.

Method & Evidence

AimWhat are the key drivers, stakeholders, and mechanisms for successful implementation of shared services within Information Systems (IS) functions, and how can research better address these aspects?

MethodLiterature Review and Conceptual Framework Development

ProcedureThe authors conducted a comprehensive review of existing literature related to shared services, with a specific focus on their application within the Information Systems (IS) discipline. They synthesized findings to establish a common understanding, identify research gaps, and propose a future research agenda.

ContextOrganizational Information Systems (IS) and Business Process Management

Variables

IV["Implementation of a shared services model"]

DV["Cost reduction","Service quality","Organizational capabilities"]

CV["Type of functional area (e.g., IT, HR)","Organizational size and structure"]

Strengths & Limitations

Strengths

+Provides a foundational understanding of shared services in IS.
+Identifies critical areas for future research, guiding further investigation.

Limitations

The concept of shared services can be complex and may not be suitable for all organizational contexts or all types of functions.

Reliability & validity

The reliability of the findings is based on a synthesis of existing literature. Validity is enhanced by the focus on a specific discipline (IS) and the identification of common themes and gaps.

Think critically

How might the 'human factors' of team integration and cultural differences impact the success of a shared services model, even if the technical aspects are well-designed?

Design Principles

"Optimize resource utilization and capability development through strategic consolidation of support functions."

For organizations, understanding the strategic benefits and operational mechanisms of shared services is crucial for optimizing resource allocation and fostering innovation. This approach allows for specialization and economies of scale, which can be particularly impactful in technology-intensive sectors.

What This Means for Your Design

Companies can save money and get better at things like IT by having one central team do the work for many different parts of the company, but we need to study this more to make sure it works well.

How to use in your project

1.Reference this paper when discussing the strategic rationale for adopting a particular design solution that involves consolidating resources or functions.

Add to My Project

Quick Cite

Paragraph starter

The strategic implementation of shared services, as explored in organizational literature, offers a framework for optimizing resource allocation and enhancing capabilities within functional areas. This approach, particularly relevant to Information Systems, aims to reduce costs and improve service quality by centralizing support functions, thereby creating opportunities for specialization and economies of scale that can benefit the overall design project.

Source

Communications of the Association for Information Systems

Exploring Shared Services from an IS Perspective: A Literature Review and Research Agenda

journal · 2014

View source

Questions About This Research

What does the research say about shared services drive efficiency and capability in it functions?: When designing organizational structures for support functions like IT, consider a shared services model to leverage economies of scale and specialized expertise, but ensure clear definitions and stakeholder alignment. Evidence: Communications of the Association for Information Systems (2014).
Why does "Shared Services Drive Efficiency and Capability in IT Functions" matter for design?: For organizations, understanding the strategic benefits and operational mechanisms of shared services is crucial for optimizing resource allocation and fostering innovation. This approach allows for specialization and economies of scale, which can be particularly impactful in technology-intensive sectors.
How can designers apply this research?: When designing organizational structures for support functions like IT, consider a shared services model to leverage economies of scale and specialized expertise, but ensure clear definitions and stakeholder alignment.
What were the main findings?: Shared services are adopted primarily for economic and strategic objectives, such as cost reduction and quality improvement.. There is a lack of a unified definition and understanding of shared services within the IS research community.. Key areas for future research include objectives, stakeholders, and the fundamental concept of 'sharing' in service delivery.
What research method was used?: Literature Review and Conceptual Framework Development.
How strong is the evidence?: Evidence strength is rated Moderate effect, based on a 2014 journal from Communications of the Association for Information Systems.
What should I do differently in my next project?: Evaluate current support functions (e.g., IT, HR, Finance) for potential consolidation into a shared services model, focusing on clear objectives and stakeholder buy-in.
What are the limitations?: The research is based on a literature review, and empirical validation of the proposed frameworks and agenda would be beneficial. The definition of 'shared services' can vary, leading to potential ambiguity.