Building Shared Services at RR Case Study
An analysis of the Building Shared Services at RR reveals that various challenges facing the company require immediate response. This will ensure that the company does not lose its customers and face closure at worse. This is the case because many customers have raised their concerns regarding these issues (McKeen & Smith, 2012). One of the pertinent issues is based on the decentralization of operations within the entire organization where each of the business operates independently. All the independent business units have the authority to develop and implement new projects besides making decisions without necessarily collaborating with the other business units or the entire firm (Cullen & Parboteeah, 2010).
Summary of Facts, Issues, Implications
With the decentralization of operations, the firm is currently facing various issues such as issuing customers with receipts of each of the four products that the company sells instead of issuing them with only one receipt to cover the entire transaction. Another issue facing the firm because of the decentralization of its operations is its inability to comply fully with the Sarbanes-Oxley standards. This may eventually attract some legal repercussions from the government. Its inability to comply with these regulations arises from the inability to account for all its operations (one of the requirements of the act) since the independent business units do not pursue a common goal or strategy. Therefore, it is imperative the general management puts in place a shared IT system, which is standardized among all the various units in order to streamline the firm's operations in all its business units (McKeen & Smith, 2012).
Several advantages come with the adoption of a shared service system of IT. A shared IT service system has the capacity to solve the issues identified above the face the firm. Since IT will be fully adopted in all the...
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