“Shared” Services for Life Sciences Companies
A prescription for value
What can a growth-minded, cost-conscious life sciences executive do to simultaneously pursue both growth and cost-reduction goals? We believe that one extremely effective strategy can be to adopt a shared model for select functional and business support services – that is, to consolidate certain functional (e.g., HR, finance, IT, real estate, procurement) and business (e.g., R&D, commercialization, compliance) support activities into a shared organization that performs work across all of an enterprise’s lines of business.
Today as never before, life sciences companies must use every possible means to reduce their costs and increase their efficiency. An effective shared model to deliver functional and business support services can be an excellent way to achieve these goals. To realize the value that a shared model can drive, thorough planning and a strategic approach are essential, as is careful attention to the challenges that can arise during implementation, especially with respect to CoEs.
We believe that life science companies that effectively apply the shared services model to appropriate services and processes across their entire scope of activity will be better positioned to outperform those companies that do not.
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