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Part - IX

Technology Implementation Challenges

Centralization comes with its set of unique technology challenges, which must be tamed before a firm decides to centralize its business processes.

• Selection of Right Technology: In the dotcom days, many firms selected the cutting-edge or the bleeding-edge technologies to implement their business ideas. Selection of a mature technology with available skill-set and manpower becomes a key decision for Shared Service Strategy to become successful.

• Robust Architecture: Central unit should support all the business units, on a 24X7 basis. So the selection of robust application architecture is a key for the system to be Always-ON, Always-Functioning.

• Technology Infrastructure: Each site has to operate its own Network, which is then connected to central network. This can also be understood as various Local Area Networks (LAN's) connecting to Wide Area Network (WAN).

• System Security: The fact that Sensitive functions like Payable and Receivables are performed at one central location, introduces need for multiple levels of security to ensure data security, access and authentication checks and audit trails enablement.

Implementation Roadmap

Phased Implementation Strategy is the least risk approach towards Shared Service Strategy, where a firm divides the migration path into multiple phases, each having a stage-gate to determine the success or failure of each step.

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* Contributed by -
Narendar Lokwani,
II Year, PGSM,
IIM Bangalore,
Pre-Sales and Mktg Team, Aditi Technologies.