KPMG
has tailored its services - including assurance, tax, consulting and financial
advisory services - to address the complex business challenges faced by
global clients.
Legal services are provided by KLegal which is a parallel organisation
of KPMG International, the global professional services organisation.
Through the firm's international network of industry professionals, the
best people, products and technologies are combined to enhance services
with industry insights and best practices.
In 1999, KPMG achieved record revenues of US$12.2
billion, a 17 percent increase driven by all of our major service lines.
More than 100,000 KPMG professionals in member firms worldwide collaborate
across industry, service and national boundaries to deliver professional
services in 159 countries.
This enviable network of firms is connected through three operating regions,
bringing together our local and national resources with greater flexibility,
responsiveness and and consistency of service delivery worldwide.
Many
companies expected e-business to alter their core business
As dramatic changes occur across industries,
companies who are unable to adapt quickly may face the threat of diminishing
market share, says global KPMG study.
Fifty-seven
percent of executives surveyed say e-business is transforming their companies
role within their industry. E-Business is changing nearly all that companies
do, from the procurement of supplies to the delivery of products and services.
New industry (e)-entrants, value-added services and delivery channels are
shifting the boundaries within and between industries, greatly altering
existing value chains.
These findings are reported in a global research study, The
e-business value chain: Winning strategies in seven global industries, conducted
by The Economist Intelligence Unit in co-operation with KPMG. In compiling
the report, 331 industry executives were surveyed and personal interviews
conducted with 42 senior executives through out North America, Europe and
Asia. The analysis is based on a number of measures, including the level
of senior management commitment, web site development and online revenues.
The study assesses cross-industry trends and examines winning
strategies in seven industries. For more information on e-business best
practices, see Banking, Insurance, Automotive, Chemicals, Pharmaceuticals,
Communications, Electronics, Consumer Markets, to view industry specific
articles.
E-business creates new challenges
The greatest barriers to e-business lie within the
corporation, according to the report. The need to redesign business processes,
the lack of e-business skills and the lack of integration between front-
and back-end systems are the three most formidable barriers to implementing
e-business strategy.
A high level of involvement by senior management
was also found to be crucial to the success of e-business strategy. While
more than half reported a high involvement of senior managers, the remaining
42 percent of companies experience inadequate involvement of this group
in strategy implementation.
Companies are evenly split on the question of whether
to form a separate e-business unit. Fifty-two percent of those surveyed
believe that for online and physical operations to truly support each
other, e-business must be integrated into the lines of business. Others
argue that to compete successfully e-business operations must be independent
and flexible.
Relationships realigning with technology
More than a third (37 percent) of survey respondents
say that a reluctance to cut out intermediaries is a major obstacle to
their e-business plans. However, the Internet is improving both internal
and external collaboration between business partners. Seventy-four percent
considered this a highly important objective, and most expect improved
knowledge management to play an important role in achieving this goal.
Nearly half of respondents believe that within 18
months online business-to-business exchanges will be very important to
their own supply chains. Still, online exchanges must change to meet user
demands. Online marketplaces will have to evolve from being mere auctions
for commodities to full service markets that allow companies to buy customized
goods.
Consumers benefit from greater choice
Online distribution companies surveyed are developing
a "portfolio of options" by enabling consumers to buy through
online marketplaces, corporate extranets and in-person channels - rather
than driving customers to a single sales channel.
According to the study, the top e-business goal
is to provide value-added products and services to meet the escalating
demands of customers and to keep goods and services from becoming commodities.
Another top goal is reaching new customers, particularly
overseas. For some companies, e-business is not just an opportunity to
tap into a bigger pool of customers, but to target specific groups and
meet their particular needs.
KPMG
Lisbon
Edifício Monumental
Av. Praia da Vitória, 71 A - 11º
1069-006 Lisboa
Portugal
Tel.:
+ 351 21 011 00 83
Fax: + 351 21 011 01 48