I. BACKGROUND OF THE ORGANIZATION
Ernst & Young is a multinational professional services firm headquartered in London, England, United Kingdom CITATION Mur16 l 1033 (Murry, 2016). EY is one of the largest professional services firms in the world and is one of the “Big Four” accounting firms CITATION Mur16 l 1033 (Murry, 2016).
EY operates as a network of member firms which are separate legal entities in individual countries. It has 250,000 employees in over 700 offices around 150 countries in the world CITATION The16 l 1033 (The Hindu BusinessLine, 2016). It provides assurance, tax, consulting and advisory services to companies and the mission of the company is to build a better working world.
OVERVIEW
Chairman & CEO Mark Weinberger
Founded in 1989
Headquarters: London England
Status: Private Independent Company
Industry Sector: Business Support Services, Management Consulting Service
In 1903 Alwin Ernst founded public accounting firm Ernst & Ernst in Cleveland, OH with his older brother Theodore CITATION Win17 l 1033 (Winston, 2017). In 1906 Arthur Young founded accounting firm Arthur Young & Company in Chicago with his brother Stanley CITATION EY18 l 1033 (EY, 2018). In 1924 the two companies formed alliances with major British accountancies Ernst with Whinney Smith & Whinney, and Young with Broads Paterson & Co CITATION Cle18 l 1033 (Cleverism, 2018).
In 1979 Ernst formally merged with its partner to create Ernst & Whinney, resulting in the world’s fourth largest accountancy CITATION Ber89 l 1033 (Berg, 1989). Over the next decade, it thrived, with its consulting practice growing quickly. Young’s firm did not fare as well – its image was negatively impacted by a number of events, including an association with the savings and loan scandal. It faced increasing difficulty competing.
In the late 1980s, the two explored the idea of merging in order to complement each other’s strengths. Young’s customers were primarily high-tech firms and investment banks on the West and East coasts, while Ernst’s were mostly manufacturing and healthcare players in the South and Midwest. Young had more customers in Europe, while Ernst had a strong presence in the Pacific Rim.
While this was a major reason for the consideration, a more important one was that Ernst was interested in absorbing the struggling Young practice. So in 1989, it acquired Young in a move that was publicly advertised as a merger. The outcome was Ernst ; Young, a member of a group of the world’s largest accounting firms known as the “Big Six”. It was private, so did not report its profits.
The change was not without its growing pains. Ernst was known for governing from the top, while Young was known for a more decentralized form of management. However, the two entities eventually overcame their transitional issues to become a major provider of assurance, tax, transaction, and advisory services. The firm has since been rebranded (and trades as) “EY”.
Business model of EY
Customer segmentation
Ernst & Young has a mass market business model, with no significant differentiation between customers. The company targets its offerings at firms of all industries and sizes desiring assurance, tax, transaction, and advisory services.
Value Proposition
Ernst & Young offers one primary value proposition that is brand/status.
The company has established a powerful brand as a result of its success. It is the third largest professional services firm in the world in terms of revenues ($28.7 billion in 2015), and is one of the “Big Four” audit firms (along with KPMG, Deloitte, and PwC). It has over 230,000 employees in more than 700 offices in 150 countries.
Channels
Ernst & Young’s main channel for customer acquisition are the customer relationships of their partners. The company also promotes its offering through its social media pages and attendance at summits and conferences such as KM World, KMUK, KM Asia, the APQC KM conference, Enterprise Search Summit, and the Strategic and Competitive Intelligence Professionals Summit.
Customer Relationships
Ernst ; Young’s customer relationship is primarily of a dedicated personal assistance nature. The company has its teams working closely with clients to solve their problems. That said, there is a self-service component. The company’s website has a “Library” section that includes self-help resources such as reports, newsletters, and white papers. The site also features a Client Portal where customers can manage the various aspects of their account.
Activities
Ernst ; Young’s business model entails designing and providing problem-solving services for clients.
Key Partners
Ernst & Young forms strategic partnerships with other companies in order to provide customers with enhanced offerings. A high-profile example of such a relationship is its alliance with Microsoft Corporation in which it uses Microsoft’s cloud and data platforms to deliver new offerings.
Key Resources
Ernst ; Young’s main resources are its human resources. Within its staff of over 230,000, it has a network of 800 thought leadership professionals operating across 40 countries who write publications such as reports and white papers. The firm also relies heavily on customer service staff to provide support
Ernst & Young has a value-driven structure, aiming to provide a premium proposition through significant personal service. Its biggest cost driver is likely cost of services, a variable expense. Other major drivers are in the areas of customer support and operations and administration, both fixed costs.
Ernst and Young had utilized more than 190000 people in 2015, with operations in more than 150 nations around the world. It is considered one of the Huge Four bookkeeping firms, and Forbes magazine reliably positions the company among the biggest private companies in America. In July 2013, Earns and Young adopted EY as its official worldwide brand.
In 2016 EY audited 947 public companies which are registered with the US SEC, more than any other auditing firm.
II. DENTIFICATION OF THE INDUSTRY AND THE COMPETITORS
Industry definition is necessary so that competitors can be identified; macro-environmental forces that affect the organization and its industry can be assessed, and the organization’s relative strengths and weaknesses can be compared to other organizations within the industry.
The main competitors of EY are
McKinsey and Company.
McKinsey has highly qualified employees who are recruited from various different streams. The company has wide Geographic reach as it has its presence across the world and also the company has good relationship with high level executive of different companies give strong brand loyalty.
Accenture.
This company provides technological solutions and also has geographical reach over 120 countries. Accenture also have good advertising and brand building through TVCs and print ads has helped the brand growth
Deloitte Consulting.
They has business led and IT enabled approach to the clients and they are experts in audit business having over 180000 employee. They are also having expert in professional service like audit, counseling, financial advisory, tax and legal.
PwC PricewaterhouseCoopers.
It is the world largest professional service firm and one of the largest accountancy firms. And has excellent advertising through commercials, which has created a strong brand awareness
KPMG.
The company has won several awards in counseling, outsourcing, tax solution etc. categories. The company has been actively involved in sponsorship of many event which is the strength of the company.
Boston Consulting Group BCG.
The company focuses on strategy and operation project which is the main strength of the company.
A T Kearney.
The company runs nearly 60 offices in 40 countries, and helps business and government leaders all over the world to plan for the future. The brand has been recognized with several awards across sectors.
Booz and Company.
The company is one of the largest government counseling agencies and the most of the clients are from top 100 global companies and have a good brand image in the world.
III. ANALYSIS OF THE INDUSTRY
The industrial analysis of Ernst and Young has been seen in different scene comparing to other manufacturing industries. The functioning and the working environment are being seen with all about the capacity building of the each of the departments. 700 numbers of offices has been setup all over the world. The functioning of these offices where controlled from the head office. Their main purpose of providing service is to make the accounting, auditing and taxation firms with government, private and NGOs all over the world to function smoothly.
Porter’s Five Forces
Threat of New Entrants
For the Big Four, this threat is low. The costs of entry include high regulatory requirements and the need to build up a client base. Smaller firms are unlikely to catch up with the Big Four as these global giants hold a huge amount of talent, resources, and large clients. That being said, this threat is a lot higher when you look at small firms. In order to start a small public accounting firm all you need are experienced CPAs, some starting capital, contacts in the community, and time to produce training and other regulatory materials CITATION Can18 l 1033 (Candela, 2018).
Threat of Substitutes
In general, the services that public accounting firms provide are regulatory or economic requirements. Companies will always require audit and tax services. Consulting services can be performed by individual consulting companies, but public accounting firms have a lot of talent and expertise in these areas. When looking at EY specifically, the threat is a little higher. Because of regulation, all services are, at their core, the same. EY and other firms rely on high switching costs to maintain their client base. An audit is always the hardest to perform the first year CITATION Can18 l 1033 (Candela, 2018)Bargaining Power of Customers
The bargaining powers of customers are low, because the switching costs described above keep clients with their service provider most of the time. Additionally, public companies and some private companies require these services either by law or by their owners/customers/creditors CITATION Can18 l 1033 (Candela, 2018).
Bargaining Power of Suppliers
The “supplies” of the service industry are the employees and the tools they use CITATION Can18 l 1033 (Candela, 2018). 1. Employees have bargaining power as public accounting is a relatively skilled industry and will only become more so as technology skills become necessary. Already employees need at least undergraduate degrees as well as CPA licenses. Additionally, CPAs have a lot of options for employment and frequently exercise that power. Public accounting has high turnover. 2. The tools that companies use tends to have high switching costs as the firms not only have to pay for the hardware/software, but also to train all (often reluctant) employees and potentially clients.
Threats of Competitors
The Big Four as a group see little rivalry from the rest of the industries; EY specifically sees competition from the other three firms. This is why a big part of the business model of these firms is in networking and “earning” the business of growing companies looking for a bigger auditor to match, or hoping to acquire the business from the dissatisfying clients of another firm.
This analysis of competitive advantage focuses on EY competing with the other three big accounting firms. All of these firms share a huge number of core competencies that make them the Big Four public accounting firms. Additionally, this analysis will attempt to identify the comparative advantages (favorable access to resources) and distinctive competencies (relatively few things EY does better) that would contribute to EY’s competitive advantage CITATION Can18 l 1033 (Candela, 2018).
IV. ANALYSIS OF THE MACRO-ENVIRONMENT
Ernst and Young’s global professional service firm which has 700 offices employing 250000 numbers of employees over 150 countries over the world giving services to the financial institutions, banking departments, audit firms and taxations. The company supports the clients in qualitative assessments as well as quantitative measurement of interdependencies between their business activity, regulatory environment and the whole economy CITATION TIM16 l 1033 (ABADIDA, 2016). It is one of the ‘Big Four’ auditing firms amongst others like Deloitte, KPMG and PricewaterhouseCoopers (PwC) CITATION TIM16 l 1033 (ABADIDA, 2016). The Company is spread all over the world in operations in Europe, The Middle East, Africa, The Americas, Asia-Pacific and Japan. The Company picked up its Revenue starting from the year 2010 and its growth continued over seven billion U.S. dollars within five years of time. As of year 2017, EY was the third largest accounting firm in the world in terms of revenue following Deloitte and PwC CITATION TIM16 l 1033 (ABADIDA, 2016). Within the same year the firm also ranked the second in terms of employment with more than 245000 employees over the world CITATION TIM16 l 1033 (ABADIDA, 2016).
Revenue Information
Source: EY Statistics and Facts
By looking at the combined revenue of EY worldwide from the year 2009 to 2017, starting from the year 2010 there is steady growth of revenue from 8.37 billion to 14.51 billion which indicates that the company is doing well in this era of economy worldwide today. EY today has combined global revenues of US$31.4b for the financial year ended 30 June 2017 CITATION Ern18 l 1033 (Young, 2018). As per the EY report record global revenues the overall, financial year (FY) 2017 revenue grew by 7.8% in local currency (versus FY16) and all EY service lines delivered strong growth in FY17: Assurance grew 4%; Advisory 10.4%; Tax 7.9% and Transaction Advisory Services (TAS) 15.5%.
With their dynamic strategic management aligning with the present scenario of the world economy, they have achieved strong revenue growth. With these initiatives clients all over the world increasingly turned to EY for their decent service on how to manage risk, where to seek growth and how to cope up with the digital technologies into their day to day functioning CITATION Ern18 l 1033 (Young, 2018). Whereby, EY has universal approach to digital transformation and innovation which is adapted all over the offices of EY over the world. Therefore to scan the external environment I have chosen PEST analysis.
Political
Changes in regulation of public accounting firms have a big impact on their ability to do business. For example, other countries have requirements that public companies rotate auditors every few years. This additional restraint if implemented in the U.S. could put cost businesses a lot of money in switching costs CITATION Can18 l 1033 (Candela, 2018). Regulation on financial reporting for companies also has a big impact on firms. Changes in tax law or Generally Accepted Accounting Principles can be very costly to implement. These can turn into consulting opportunities for firms.
Economic
This is not a big issue for public accounting firms than any other business as they offer a relatively necessary good. It does, however, affect the work they do. As pressure on businesses increases so does risk and so does the amount of work and skepticism those auditors need to employ. Firms will simultaneously be trying to cut costs while also increasing the amount of work they should do.
Social
The demand for public accounting is, at its core, driven by social factors. People demand security. This isn’t going to change unless our economic system fundamentally changes. The demand for employees is high as regulation increases the amount of work required and the baby boomers retire and leave a gap in the job market. Additionally, the AICPA states that the 1990s saw a dip in accounting professionals as college grads took to IT positions CITATION Can18 l 1033 (Candela, 2018).
Technological
Mary Candela says that this is the biggest factor affecting the world today and public accounting is no different. Firms’ biggest interest today is in integrating technologies into the services they provide and making sure to stay ahead of new technologies so that they can best serve their clients and stay competitive in the professional services industry. See a more in-depth analysis of technological environments below.
Technology as an Opportunity
In general, EY will be looking to provide more consulting services to businesses that match the way they do business and the way they want to do business. This includes understanding their systems/data and helping them get more out of those tools. In audit, public accounting is seeing huge changes. Companies have more and better data. Auditors have more and better tools. Data analytics and robotic process automation are going to change the auditing world. Automation of tasks and of analysis can make sure that the work that auditors do is less focused on routine manual tasks and more on professional judgments and insights. Auditors can automatically collect data and look at all of a company’s transactions to identify risks. This means that audits are more efficient and more effective. It is necessary to emphasize how much of a revelation this is to the audit world. Auditing has always been based in sampling. Because of human limits, audits are performed by randomly sampling transactions and testing them to make sure that they are correct. Big data and advances in machine learning and data analytics mean that audits could start testing entire populations. Auditors can spend their time looking at the really important or risky areas while a computer runs through the repetitive testing of transactions that don’t really require judgment.
Technology as a Threat
Technology does not threaten the market for public accounting services, nor does it threaten the job market for these services. All technology does is change how the services are performed. New technologies are emerging and companies are racing to adopt them. Unfortunately, new technologies bring new risks. For public accounting this includes the following:
? Data security as auditors and tax professional make more and more digital requests is a high priority for clients.
? Crypto currencies require regulation not only for their use, but also for how they fit into accounting standards.
? Audits may shift from assuring users that the data (financial statements) is correct to instead to assuring users that the data analytics (algorithms that produce or audit financial statements) are correct.
V. What is the organization’s measurement and control system?
Measures and control
As industries converge, they create new value and opportunities for business. EY helps organizations identify and capitalize on these new opportunities. From mobility to health care to future cities, traditional industry boundaries are being disrupted, as sector converge to adapt to technological and societal changes. Navigating this fact-changing environment requires agility and fresh thinking. As E;Y, reinvent how we work, live EY is helping clients embrace industry disruption as an opportunity.
At EY, they dedicated to helping their clients, from start-ups to Fortune 500 companies – and the work they do with them is as varied as they are.
Through their four service lines Assurance, Advisory, Tax and Transaction Advisory Services — we help organizations capitalize on opportunities. We help them fulfill regulatory requirements, keep investors informed and meet stakeholder needs. And in a fast-changing world, we give them the support they need to be effective today and create long-term growth for tomorrow.
Across all disciplines and from every angle, EY professionals draw on our shared creativity, experience, judgment and diverse perspectives. Wherever they operate, we help clients address their toughest challenges, so their businesses are fit for a digital future.
The blend of technology and business innovation is revolutionizing how organizations operate, compete and deliver products and services. Through our strategic relationships with technology and industry leaders, and a host of businesses with specialized capabilities, we blend powerful technology, distinctive capabilities and industry experience to help our clients address their toughest challenges.
We collaborate to create pioneering services, powered by leading and emerging technologies, including AI, block chain, Internet of Things and cybersecurity. Our services address a broad range of client needs, including helping them turn insights into business breakthroughs, accelerating their supply chain strategies, and modernizing their finance and accounting processes.
At EY our main purpose is building a better working world. We start by asking better questions: questions that challenge inspire and unlock new answers to some of today’s most pressing challenges.
We believe that every audit, every tax return, every advisory opportunity, and every interaction with a client or colleague should make the working world better than it was before. Fulfilling our purpose starts by asking better questions, because the better the question, the better the answer. These better answers help our clients operate more efficiently manage risk, foster growth and inspire confidence, which, ultimately, leads to a better working world.
VI. ANALYSIS OF THE ORGANIZATION (MISSION, VISION, CORE VALUES, OPERATING GUIDELINES, CORE COMPETENCIES, GOALS)
Vision
Asking and answering the toughest question to build a better working world.
Mission
At Ernst & Young, we support you in achieving your unique potential wherever you are in the world – both personally and professionally. We give you stretching and rewarding experiences that keep you motivated, working in an atmosphere of integrity and teaming with some of the world’s most successful companies. And while we encourage you to take personal responsibility for your career, we support you in your professional development in every way we can. You enjoy the flexibility to devote time to what matters to you, in your business and personal life. At Ernst ; Young, we know it’s your point of view, energy and enthusiasm that make the difference.
Core Competencies
The majority of what the firms call their strengths is actually core competencies or values. Delivering great service, helping clients achieve their goals and gain new insights, being a global company, working with new technologies, and providing employees with development opportunities are all expected parts of being one of these large firms. They are all prestigious and they are all working hard to achieve the same goals (global reach, technological advances, employee work-life balance)
EY lists the following as “The EY Difference”: Global mindset, top talent and employee development, and fostering of entrepreneurial businesses
Distinctive Competencies
Of the items that EY lists and the structural and cultural differences it promotes, the following could potentially contribute to a competitive advantage.
? Separate Financial Services branch? – EY separates its tax and audit groups first by financial services versus other industries and then by geographic region. Because of this, EY feels it can better serve the financial services industry by developing more experts with more experience.
? Transaction Advisory services – EY’s separate transaction advisory practice allows them to lead the industry in its expertise with this type of work.
? Diversity? – EY’s focus on diversity is effective according to Diversity Inc’s Top 50 Companies to Work For where they were ranked #1 in 2017 and have placed in the top 10 since 2009
? Entrepreneurship?- EY’s Entrepreneur of the Year program provides entrepreneurs and innovators with information, networking opportunities, and support. This is an excellent community and client development tool.
? Branding: Building a Better Working World?- EY’s tagline is everywhere throughout their website and other materials. After rebranding in 2013, the firm is focused on delivering a consistent message to the world.
Operating Guideline
? Assurance (Audit) – Provides independent assurance to stakeholders that a company’s financial statements are fairly presented in accordance with a financial reporting framework. There are also other types of audits that provide assurance about internal controls over financial reporting, IT controls, third party systems, and more.
? Tax – Provide experience in tax planning, compliance, and reporting. There are also tax consulting services that can be offered to non-audit clients that involve developing tax strategies and planning.
? Advisory – These are EY’s consulting services focused on helping improve how clients run their business and processes. This includes a lot of important technological services.
? Transactions – This is an additional consulting line that focuses on strategies for managing capital and transactions. This is a focus area for EY.
EY’s goals are as follows:
1. Attract new clients and retain old ones
a. Evaluate: Number of clients (retention, attraction, revenues).
2. Provide more value to clients
a. Evaluate: Client feedback (structured and unstructured), number of services provided, and the ROI of those services.
3. Stay ahead of technology? (Provide the audit of the future)
a. Evaluate: Benchmark services provided against other firms. Measure how much time it takes to complete an engagement and the output of that engagement. Increase the number of employees with technology-related titles (New positions). Increase the training hours spent on emerging technology subjects.
Current financial position (As of 30th June 2018)
Revenue earned- €89,235,000
Gross profit- €24,607,000
VII. ANALYSIS OF THE ORGANIZATION – ORGANIZATION-LEVEL AND BUSINESS UNIT STRATEGIES
A. What are the current organization-level strategies? Business unit strategies?
B. How are the strategies aligned with the goals?
C. Compare this organization’s strategies with those of competitors.
D. Use SWOT analysis and Gap analysis to suggest strategies.
E. Evaluate strategies (advantages ; disadvantages of each strategy).
F. Key performance indicators (KPI’s)
STRENGTH
Forbes magazine has ranked EY as the 8th largest private company in United States.
EY have an extensive global reach covering over 150 countries.
They were ranked No. 1 in the Forbes The Best Accounting Firms to Work For
Workforce consists of the best talent pool from across the world
Over 150,000 employees form a formidable workforce at Ernst & Young
EY offers expert services in assurance, tax advisory, consulting, financial advisory and legal solutions
Acquisitions and mergers have strengthened the brand’s position in the business
Crisp marketing campaigns directed at enterprises and corporates are a huge success for EY brand
Sponsorship of various global events related to sports, knowledge etc. give a huge presence to EY
WEAKNESSES
Strong competition from other major players means growth is slow for EY
Companies setting up their own research centers affecting business
OPPORTUNITIES
EY have immense opportunity in emerging economies
The more Ernst ; Young spend on infrastructure the more clients they will get
Companies continuously looking for consulting solutions
Acquiring smaller consulting firms can establish EY’s position strongly
THREAT
They have allegedly had many lawsuits filed against them e.g. they were involved in Lehman Brothers, they were also sued by Akai Holdings etc.
The global recession could affect EY’s consulting business
Fluctuating global currencies affects operations
Increasing competition can reduce market share of Ernst ; Young
Main Competitors are:
McKinsey and Company
Accenture
Deloitte Consulting
PwC Price water-house CoopersKPMG
Boston Consulting Group BCG
A T Kearney
Booz and Company
Bain ; Company
VIII. ANALYSIS OF THE ORGANIZATION – FUNCTIONAL STRATEGIES
A. Marketing – Finance – Operations – Purchasing – Human Resources – Information Systems
B. How well are the functional strategies aligned?
Corporate ; Commercial Department.
Corporate Law
Domestic and cross-border corporate transactions, including mergers, acquisitions and joint ventures, as well as equity investments and change of control transactions
Effective planning and implementation support for corporate reorganizations
“Day-to-day” advice to companies of all legal forms on any corporate and commercial legal aspects
Support and advice on devising and implementing corporate compliance programs
Corporate Legal Secretarial services
Commercial Law
Counsel businesses in connection with their ongoing contractual relationships with domestic and international customers, suppliers and distributors.
Advice on all forms of commercial contracts: contracts covering outsourcing conducted through a detailed procurement process, services distribution, supply, manufacturing, marketing, collaboration, software licensing, development and online terms and conditions product.
Antimonopoly Compliance
Agreements which seem to restrict competition
Activities which may result in restricting competition
Establishing and/or maintaining prices for goods or services which are too high or too low
Limitations of access to certain goods or services of a certain market or segments of such a market
Assistance in obtaining anti-trust clearance
Advising on anti-trust disputes
Shareholders’ Controversy
Advice on disputes, lawsuits and claims among company shareholders and/or company shareholders and the company
Claims and legal actions regarding resolutions of the board of directors or the general shareholders’ meeting
Court-ordered dissolution and the liability of company directors.
Corporate Governance
Establishment of effective corporate governance structures, including drafting of comprehensive shareholders agreements.
Corporate governance, including director and officer liability
Advice to listed companies, institutional investors, private equity investors, underwriters, board committees, directors and others.
Transaction
In today’s dynamic business environment companies are taking advantage of changing markets to expand through acquisitions. Businesses are increasingly focused on the economies of scale that result from acquisitions. This requires an efficient and effective pre- and post-acquisition and merger process.
Transactions are becoming more complex, so investors need access to legal advice that helps them to manage deals effectively.
From the beginning
We support buyers and sellers at all stages of transactions — from bid preparation and submission to negotiation, signing and completion. We advise on the full range of deal structures, from public takeovers or tender offers through to divestments, auctions, privatizations and demergers. Our track record in M&A, expertise and local knowledge ensure that we deliver cost-efficient, high-quality practical legal advice.
We make deals happen
We offer complete end-to-end transaction advice and support to corporate and private equity buyers and sellers – from pre-bid structuring to post-deal completion and integration including the following:
Acquisition due diligence
Pre-transaction structuring
Sale and purchase agreements and negotiations
Carve-outs and Separation
Anti-trust clearance
Integration planning and execution.
IP/IT
Intellectual property
IP management, including audit of IP protection status, securing effective IP use and protection
Sale and other disposal forms of IP rights
Distribution, agency, contract manufacturing, supply, sponsorship, advertising (marketing) and other commercial agreements
IP backed asset financing/security interests over IP assets
IP due diligence and verification, including of related agreements
Antitrust risks in licensing, joint venture and non-compete arrangements, including risks related to settlement of patent disputes
Developing concepts of IP protection for foreign investors entering Russian markets
Developing concepts of IP protection for Russian entities operating in foreign jurisdictions.
IP/IT transactional work and e-commerce
Structuring software distribution and licensing models, including those involving cloud computing
Software, hardware, resell and distribution agreements
SaaS, license, franchising, exclusive rights assignment, R&D, design and construction agreements
Legal protection of commercial information by obtaining trade secret status and exclusive rights to know-how
Advice on design and legal protection of website, content and technology acquisition
Domain-name registration/monitoring
Digital signature and digital invoice.
Data protection and privacy
Compliance audits of processing of Personal Data:
Assessment of non-automated processes
Assessment of Personal Data information systems including development of threats model and classification of Personal Data information system
Gap analysis and development of recommendations on improvement of processing cycle of Personal Data
Drafting and advice on implementation of compliance tools and binding corporate rules.
IX. ANALYZE ORGANIZATION’S IMPROVEMENT/CHANGE INITIATIVES
(e.g., Six Sigma, SQM, TQM, Lean Manufacturing, JIT, Process Reengineering, High Performance Work Teams, Assessment using Malcolm Baldrige National Quality Award Criteria, ISO 9000, ISO 14000, Benchmarking, Balanced Scorecard, etc.)
A. Previous ; current impact/success of improvement initiatives.
B. Alignment of improvement initiatives and integration into strategic management of the organization.
C. Comparison of improvement initiatives with other organizations within and outside the industry.
Previous ; Current impact/success of improvement initiatives.
EY services help to build confidence, whether directly through the work or indirectly through what the EY company work allows others to achieve. EY play a crucial role in the functioning of global capital markets, and therefore the business world as a whole.
EY are a global organization and are able to offer the clients consistent services and service methodologies wherever they do business, tailored specifically for their market and circumstance.
In this transformative age, EY have to stay ahead of new trends. EY need to maintain and improve the quality of the traditional services and the sector knowledge, while making greater use of emerging technologies and different skills to create new, innovative offerings. EY serve the clients and build trust and confidence through:
Evolving servicesExpanding innovation capacityLooking at digital from every angleInvesting in emerging marketsEnsuring qualityStrengthening brandAlignment of improvement initiatives and integration into strategic management of the organization.
Why EY strategy?
EY clients today face constantly changing and increasingly complex environments, which call for timely and effective decisionmaking. EY helps the clients implement actionable responses to these changes, while building their internal capacity to deliver sustainable business results in an uncertain world.
Typical client challenges
Business Performance Challenges
Anemic growth, especially among target markets and customers
Margin erosion, due to increasing competition and/or lack of differentiation
Reducing enterprise cost profile to increase competitiveness and/or generate efficiencies
Achieving and maintaining customer/client satisfaction in light of challenges
External Challenges
Competitor strategic moves (e.g., acquisition, partnership, global expansion)
Disruptive threats (e.g., new competitors, technologies, regulations, changing customer expectations, commoditization)
Global growth and emerging markets challenges
Internal Challenges
Leadership changes (e.g., CEO, BU president, Board of Directors)
Strategic planning approach no longer able to keep up with external realities
Internal capabilities no longer aligned with strategic needs
Five ways EY Strategy drives insights to action
Focus on results
EY team has the real world experience and depth of industry insights to design and operationalize your strategy. We know what it takes to get things done and understand the realities of managing transformational change to your global processes, technologies and organizational capabilities. EY work with the end in mind — providing end to-end strategic thinking and capabilities that are pragmatic and focused on delivering results.
“When you use a consulting firm it’s all about the expertise that’s brought to the table. EY’s team was much more experienced, had a lot more focus in the areas we were looking at, and that proved to be a differentiating factor and key element of success.” Senior Director, Financial Planning and Reporting Consumer packaged Goods Company
Collaborative approach
Core to who EY are as a firm and how EY define the collaborative approach. EY have found the best solutions result from “group genius” — great minds working together. From day one, we work with you to design a strategy that will work for your organization, and in the process, EY transfer the knowledge and help you build capabilities to sustain momentum.
“The thing that I liked the most about what we did with Ernst & Young is I really feel like their senior team and the managers really joined arm-in-arm with us and really wanted to partner with us and see us be successful.” President and COO Health care organization
Speed to impact
The global economy is moving fast. Your strategy needs to move faster. EY accelerate the execution of your strategy by “taking the next step” — moving beyond insights to action through EY global network and external business relationships. EY focused on value acceleration and can connect you with relevant business partners and support your strategy implementation to help you achieve the impact you expect.
“When I look at the innovation process and what it takes for a business to be successful in challenging themselves to think beyond their normal boundaries, I couldn’t think of a better partner, than Ernst & Young, to do that.” Executive Vice President Business process outsourcing company
Analytics and insight
The EY brand is built on trust. This trust relies on integrity and effort to bring you fact-based insights to support your strategic decisions. EY clients appreciate the analytical rig our and open, honest objectivity. EY recognize that while you may be hiring us for our experience, we will not be successful without the appropriate analysis and business logic to earn the trust of your organization each and every day.
“EY went beyond standard internal, historical, financial metrics. EY helped to identify the predictive drivers of our business and build that into our management processes. Now the CEO says that this has changed the way she runs the company, and that she can see issues far sooner than ever before, and have insight about what to do about them.” VP of Finance Global Food Company
People and culture
EY Company attracts and grow bright and diverse professionals who share in a culture of exceptional client service. What this means for you is that we bring the highest performing teams who are insightful, connected and responsive, and work with you and your team to drive action.
“The EY team we had on this project really owned and drove it within the organization and became part of the fabric of our team and that’s different, they aren’t consultants, their team was part of our team.” President Global car and truck Rental Company
Comparison of improvement initiatives with other organizations within and outside the industry.
EY scaling the use of drones in the audit process within and outside the industry
EY to use pioneering industry software to improve inventory counts
Artificial intelligence (AI) to be built into the drones to extend capability
Information to feed directly into EY Canvas, the EY assurance global audit digital platform
X. Conclusion and Future of Organization Ernst ; Young Company is the result of a series of mergers of ancestor organizations. It’s also a builds a new talent management model, whereby they make lots of difference by helping their people, clients and wider communities to achieve their potential.
One way EY is adopting and further supporting this blended workforce is through ‘Gig Now’, a new innovative approach to developing a network of top contractor talent. With Gig Now’s advanced technology platform and experienced recruiters, EY is able to tap into the best talent around the world, build a more agile and flexible workforce model, and scale global talent base faster and more effectively than ever.
References
BIBLIOGRAPHY ABADIDA, T. B. (2016). Ernst ; Young – Company Profile, Information, Business Description, History, Background Information on Ernst ; Young. Retrieved from 787 Seventh Avenue: https://www.referenceforbusiness.com/history2/49/Ernst-Young.html
Berg, E. N. (1989). Reports Say Arthur Young and Ernst May Merge. The New York Times, 02.
Candela, M. (2018). Strategic Audit of the Public Accounting Industry with a focus on EY. Digital Commons, 1-16.
Cleverism. (2018). Retrieved from Cleverism web site: https://www.cleverism.com/company/ey/
EY. (2018). EY. Retrieved from EY wb site: www.ey.com
Murry, C. (2016). cater murry. Retrieved from cater murry web site: https://www.cartermurray.com/clients/ey
The Hindu BusinessLine. (2016). RITES awards contract to EY. The Hindu BusinessLine.
Winston, E. (2017, October 10). The History of Ernst ; Young. Class Room. Retrieved from https://classroom.synonym.com/the-history-of-ernst-young-12079682.html
Young, E. ;. (2018, September 13). EY reports record global revenues of US$34.8b in 2018. Retrieved from London, 13 September 2018: https://www.ey.com/lu/en/newsroom/news-releases/news_20180913-ey-reports-record-global-revenues-2018
