GBS/SSC/BPO Practicioner
In today’s digital world, Global Business Services (GBS) organizations are increasingly driven by data. Vast datasets inform decisions, shape strategies, and help improve efficiency. But there’s an emerging truth that GBS leaders must understand: data alone cannot create value.
While data provides insights, service science—the interdisciplinary study of service systems and value creation—teaches us that data becomes truly valuable only when it is interpreted, contextualized, and applied by humans. In this article, we will explore why GBS needs more than just data to create value and how service science offers a pathway to integrating data with human expertise for better outcomes.
GBS organizations are designed to optimize operations, streamline processes, and deliver measurable results. This structure has led to an increasing reliance on data-driven decision-making. Metrics such as cost reduction, process efficiency, and cycle times often dominate the focus, as they provide quantifiable measures of success. However, this overreliance on data overlooks a fundamental aspect of business: value is co-created between service providers and customers, and not simply derived from data.
In GBS, the internal stakeholders—business units and departments—are the customers. They are looking for more than transactional data; they seek strategic support that enhances their own decision-making processes. Here’s where the gap emerges: while data provides the “what,” it often fails to deliver the “why” or “how” in complex business scenarios.
Service science, a field pioneered by Dr. Jim Spohrer, teaches that value is not produced in isolation but through the interaction of systems. In a GBS context, data is just one part of a broader service system that includes people, processes, and technology. Data provides insights, but without human interpretation, these insights often remain inert and incomplete.
For instance, imagine a GBS team analyzing data from internal business units showing a decline in sales. The data might highlight trends like reduced customer engagement or increased churn, but it doesn’t explain why these trends are happening. Without contextual understanding from experienced professionals, the data alone cannot suggest actionable solutions.
Service science offers a service-dominant (S-D) logic framework, which emphasizes that value is co-created through interactions between service providers (GBS) and customers (stakeholders). According to S-D logic, data alone cannot create value because it lacks the human interaction necessary for co-creation. It is only when the data is interpreted, discussed, and applied in collaboration with stakeholders that it leads to valuable outcomes.
A key lesson from service science is the importance of human capital in service systems. In GBS, data needs to be interpreted by professionals with experience and intuition. These individuals can discern patterns, consider external factors, and understand the broader business context that data alone cannot capture.
Let’s say GBS is tasked with recommending cost-cutting measures to internal stakeholders. Data might suggest that reducing headcount or limiting resource allocation will increase operational efficiency. However, without human expertise, GBS risks making decisions that ignore long-term implications such as reduced employee morale, lower innovation potential, or degraded customer service.
Service science highlights that human interpretation adds the necessary depth to data-driven insights, ensuring that recommendations are both actionable and aligned with strategic business objectives. This is why GBS needs professionals who can bridge the gap between data and business outcomes.
Service science views organizations as service systems where resources—people, technology, and data—interact to co-create value. In GBS, these systems are complex, involving multiple layers of interaction between the service provider (GBS) and the customer (internal stakeholders).
A key concept in service science is the idea of resource integration, where different resources come together to create value. In a GBS context, data is just one resource. Human expertise is another critical resource that must be integrated to unlock the full value of data. Without human capital to interpret and act on data, it remains a passive resource, unable to drive real change.
Consider a GBS team responsible for recommending strategic initiatives based on market trends. The data might show emerging competitors and changing consumer preferences, but service science reminds us that these insights are only valuable if they are contextualized and applied. Experienced professionals within GBS, who understand both the internal business dynamics and external market conditions, are required to co-create actionable strategies with the stakeholders.
This interaction—between data and human judgment—is what drives service innovation and creates value for internal stakeholders. GBS cannot operate in silos, where data flows into dashboards without meaningful interpretation. Instead, it must function as part of a dynamic service system where data and human expertise combine to generate insights that stakeholders can act upon.
To shift from a purely data-driven approach to a value-driven model, GBS organizations must rethink their approach to service delivery. Service science offers a roadmap for this transformation by emphasizing three key elements:
Co-Creation of Value: Service science teaches that value is co-created in interactions between providers and customers. GBS must engage with internal stakeholders not just as service providers but as strategic partners. Data provides the foundation, but meaningful conversations and collaborations are what turn insights into action.
Resource Integration: Effective GBS organizations understand that data, technology, and human expertise must be integrated to create value. Data is essential, but it’s the experience, intuition, and business acumen of GBS professionals that drive value creation.
Service Innovation: Service science encourages continuous service innovation through learning and adapting. GBS can apply this principle by using data to identify opportunities for innovation but relying on human insight to tailor solutions that meet the specific needs of internal stakeholders.
The future of GBS is not just about crunching numbers or optimizing processes; it’s about creating value that supports the strategic goals of the business. Data alone, no matter how sophisticated, cannot achieve this.
Service science provides a clear message: value emerges from the interaction of resources, and in GBS, those resources include both data and human expertise. It’s not enough to have the data; GBS professionals must have the ability to interpret, contextualize, and apply that data in ways that align with business objectives.
Imagine a scenario where GBS is asked to support a business transformation initiative. The data might show operational inefficiencies, but these insights alone won’t lead to successful transformation. Service science suggests that co-creating solutions with stakeholders—involving them in the decision-making process and using data as one part of a broader conversation—will lead to better outcomes. GBS professionals must engage with stakeholders, bringing their expertise and experience to the table to turn data into a transformative action plan.
GBS organizations must recognize that data alone cannot create value. While data is a powerful tool, it requires human insight and collaboration to turn it into actionable strategies that benefit the business. Service science provides a comprehensive framework for understanding this, emphasizing the importance of co-creation, resource integration, and innovation in service systems.
By embracing the principles of service science, GBS can evolve beyond a data-driven model to a value-driven organization that serves as a strategic partner to its internal stakeholders. This transformation involves integrating data with human expertise, engaging in meaningful conversations, and using service innovation to continuously improve the value GBS delivers.
Ultimately, the future of GBS is not just in managing processes or analyzing data—it’s in co-creating solutions that drive business success. Through the lens of service science, GBS can unlock its full potential and create value that goes beyond the numbers.
#leadershipmatters
About the author:
Krzysztof Herdzik
Advisor Business Process Transformation
Over 22 years of experience as Ex-Group CFO, Managing Director and Co-Founder of US Tech Company, ACCA Graduated.
Awarded by Forbes, recognized by the Wall Street Journal, and noticed by NYSE for the work done in the Global Business Service Sector.
My goal is to support GBS leaders to achieve their goals in the shortest possible time.
Over the last decade, I have guided companies to achieve a cumulative 300 million USD in savings and productivity boost through Global Business Service transformations, freeing up +2 billion USD in cash position for innovations, growth and opportunities for my clients.
I’m the author of the newsletter: “The Journey of GBS Leader” which is read by more than 1,500 GBS professionals every day. Are you one of them?
Disclaimer: The views expressed in this article are the author’s own and do not reflect the views of any organization.
In a bold and daring statement, let’s face it: the Global Business Services (GBS) as we’ve known might come to an end – AI might be the biggest change catalyzation since the GBS concept was created. And no, it’s not artificial intelligence (AI) that’s ringing the bell. It’s something far more human – it’s the capabilities of GBS leaders.
As we stand on the brink of a new era, it is clear that artificial intelligence (AI) is set to revolutionize Global Business Services (GBS). Like the advent of the internet and mobile technology, AI presents a seismic shift, transforming how we do business, interact, and deliver value. For GBS leaders, this change is both a challenge and an opportunity, an inflexion point that calls for a pioneering spirit.
We are on the brink of a technological revolution that is set to redefine our industry – the advent of Generative AI. According to McKinsey’s latest research, this groundbreaking technology could contribute an astounding $2.6 to $4.4 trillion annually across 63 different applications. To grasp the enormity of this figure, consider this: it’s equivalent to adding between 57 million to 98 million new GBS jobs (with an average salary of $45k) to the global economy every year. This isn’t just a game-changer; it’s a whole new game.