Research On The Problems In The Operation Of M Group's Financial Shared Service Center

With the continuous development of economic globalization and information networking,enterprises around the world are facing unprecedented challenges and opportunities.Driven by economies of scale,the number of large multinational enterprises is increasing,and also their size.On the one hand,enterprises are hence integrating their industrial chain and concentrating their resources to improve production efficiency,greatly enhanced the competitiveness and improved the profitability;and on the other hand,it also brings new business management challenges.In the 1980 s,Ford Corporation from the United States creatively established a financial shared service center.By integrating those highly repetitive,relatively simple,redundant and easy to be standardized business processes from the subsidiaries,Ford Corporation made it possible to run them centrally in a shared service center.With this creative measure,Ford Corporation improved their management efficiency and reduced management costs significantly.Since then,experts and scholars around the world have conducted comprehensive and in-depth research on the financial shared service model,and companies in various regions have continued to explore this novel management model in practice.After nearly half a century of development,this innovative management model of financial shared services has been adopted by many large enterprises around the world.By utilizing this model,many companies have improved management efficiency and reduced operating costs significantly.As the main research method,this paper combined theoretical research with actual case study.Utilizing theoretical research outcomes in the field of financial shared services from past experts and scholars as a guide,combining the actual operation of financial shared service center over the past half century all over the world,the author introduced the M Group,which constructed and operated a financial shared service center in the mainland of china,and explained the advantages,risks and success factors of this innovative financial management model.Finally,the author pointed out that when building financial shared service center,companies can consider: addressing capital management problems by strengthening capital management and process reengineering;addressing tax-related financial risks by establishing accountability and regular review mechanisms,and combining process automation;addressing subsequent process optimization problems by building a top-down support model and mobile applications,and deploying cloud technology;and improving inter-departmental communication efficiency and personnel management by strengthening cross-departmental communication,improving personnel training and enhancing management systems.