Research On The Establishment Process Of The Financial Shared Service Center Of Company

In the tide of economic globalization,many multinational enterprises set up branches in the worldwide.When the branches are established,the decentralized organization can not support the enterprise development more and more.And the disadvantage of this decentralized organization starts to appear.The first disadvantage is that the business process can not be standardized.Secondly,the internal control is weak.Thirdly,the operation cost increases.Fourthly,the information and data collection is not transparent and timely.Finally,the management can not focus on core business.One new organization model,shared service center,is applied under this background.SSC means Shared Service Center.The human resource,technology and process are integrated by SSC foundation.Some boring transaction work,for example accounting,is centralized from the branches to SSC that can provide standard,professional and efficient service to the internal customers.Management problems of multinational enterprise B in the decentralized organization are analyzed in the study.The necessity of SSC foundation in enterprise B is also discussed.By the business process reengineering in SSC foundation,the process can be standardized and the internal control can be also enhanced in each business unit.When the transaction work is centralized to SSC,the cost can be saved due to economies of scale.During BPR,the data input and output is standardized and IT system is integrated,so the data transparency and the speed of data collection are improved.If the boring transaction work is transferred to SSC,each business unit can have more time to focus on core business.It’s analyzed that SSC foundation is based on some terms.With the development of logistics,E-banking,ERP,communication technology and IT,it’s feasible to set up SSC.SSC of enterprise B is driven by the highest management.And location selection and foundation by project management are also introduced in the study.SSC foundation and operation is a complex and systematic work with too much uncertainty.So the management will face too many problems and difficulties that caused by process optimization reengineering,system interface,communications cross departments,internal customer requirement,SSC people management,pressure of performance indicator,cost and timeliness requirement.The management needs to take some effective actions to solve the problems.In this case,it’s possible to establish SSC successfully and make the internal customer satisfied.In the 1980s,Ford founded finance shared service center.In the next,the similar organization has been set up in GE.Up to now,more and more multiply enterprises have set up this organization.And these enterprises’ SSC covering Asia Pacific are normally established in China.Besides that,Haier,Huawei and Tencent etc.domestic companies have set up shared service center in order to adapt to the international market.SSC is becoming popular in China.More and more domestic enterprises are preparing the SSC foundation.Until now,there is some new trend in SSC development.For example,the scope of SSC is expanded.So the author prefers to combine the management theory and many years SSC working experience in enterprise B to summarize the effective solutions to SSC foundation.The study herein can also be used as reference to similar companies.