TABLE OF CONTENTS

Sr. No Content Page number

1. About the company 02

2. IT 03 - 05

3. E-Business 06 - 07

4. SWOT Analysis 08

5. Value Chain 09 - 10

6. Porter’s Five Force Framework 11

7. Knowledge Management Activities 12 – 13

8. Customer Relationship Management 14 – 15

9. Conclusion 16

10. Bibliography 17

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About the company

1.1History

KPMG was formed in 1987 and was started by 4 individuals who already had a firm and merged their businesses. KPMG has got this name after the names of partners of the company who merged their own independent accounting firms. K stands for Klynveld, after Piet Klynveld, P stands for Peat, after William Barclay Peat, M stands for Marwick, after James Marwick and G stands for Goerdeler, after Reinhard Goerdeler. Today KPMG is one of the world's leading professional advisory services firms.

1.2Services

It provides services to the other organizations which consist of audit, tax and advisory

services. They help the organizations in negotiating the risks and perform in the dynamic

and challenging environments in which they do business. They provide advises to other

companies in solving complex issues. They help their client by suggesting the new

opportunities in business, improvement in the performance and to manage the risk. In audit

services, they provide financial statement audit and regulatory audit. Regarding tax, they

provide business and personal tax services. The advisory services are organized in three

themes that are growth, governance and performance and nine service lines which are

accounting advisory services, business performance, corporate finance, financial risk

management, forensic, internal audit, risk and compliance services , IT Advisory,

restructuring and transaction services.

1.3Mission

“Turn knowledge into value for the benefit of its clients, its people and the community.”

1.4Values

“The vision of the company is simple - to turn knowledge into value for the benefit of our

clients, people and our capital markets.”

1.5Strategy

The company focuses on professional behavior, client and market knowledge and

multidisciplinary.

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INFORMATION TECHNOLOGY

KPMG professionals offer an extensive range of advisory services in IT support and management,

covering the following areas:

 

IT program and project management

IT strategy & performance

Business Intelligence Services

IT Enablement: SAP and Oracle solutions

IT in merger and acquisition: pre-deal and post-deal services

INFORMATION TECHNOLOGY SYSTEM

An IS is a set of interrelated elements or a component that collects input, processes it and

publishes output in the form of data or information and provides a feedback mechanism to meet an

objective. Following are the different types:

1. Open System: Open system is system which interacts with environment. Organization

which share information with everyone comes in open system.

2. Close System: Close system is a system which does not interact with environment.

Organization which does not share information with everyone comes in closed system.

3. Cybernetic System: Cybernetic system is a system that possesses input, state and

output, and consequently an evolution equation. This system is just like open system but the

only difference is cybernetic is controllable.

4. Adaptive System: Adaptive system is a system which adapts itself with the environment

by using historical records and analysis.

Information system strategy triangle relates business strategy with organizational strategy and

information system strategy. KPMG need business strategy as it drives to both strategy i.e.

organizational strategy and information system strategy. Firms who are successful know to balance

all the three strategy. IS strategy can affect itself and gets affected by changes in a firm’s business

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and organizational strategies. In order to balance it changes in the IS strategy must be

accompanied by changes in both the organizational and overall business strategy. If firm designs

its business strategy in such a way that it can use IS to gain strategic advantage then the

leadership position in IS can only be sustained by constant innovation. All the three strategies must

constantly be adjusted.

A business strategy is the vision of the company. Company constructs a plan in response to market

forces, customer demands, and organizational capabilities. But it becomes difficult to achieve the

goals as in market competitors are available. Organization plans generic strategies with the help of

information system. Generic strategies are cost leadership, differentiation and niche or focus.

Information strategy helps generic strategies by giving support to it. Critical success factors should

be usually five to eight for each business objective.

Organizational strategy takes into account the organizational structure, business framework and its

policies, procedure, rules and regulations. In short, it is how the organization organizes itself in

order to achieve its goals and implement its business strategy. Information system strategy is the

plan an organization uses in providing information services. IS allows a company to implement its

business strategy. Business strategy is a function of competition, positioning and capabilities. IS

helps to determine the company’s capabilities. IS strategy should complement business strategy.

When IS support business goals then the business work well.

STRATEGIC INFORMATION SYSTEM

Strategic information systems are the information system that is developed for corporate business

initiative. They give a competitive advantage to the organization.

It is important for organization to have their strategic business objectives aligned with area of

Information Systems. This is only possible when organization develop a strategic plan for

Information System (PESI). KPMG have a significant experience in international market and by that

experience they have created a methodology of strategic system information services which is

focused on protecting the value of organizations by established a process to help initiatives

Systems Information on the strategy of client’s business. They came up with six basic step of the

methodology of strategic service for information systems are:

1. Perform an assessment of capabilities in the area of Information Technology:

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This phase help us to identify and assess the current environment of processing information

according to the balanced wheel of information technology.

2. Identify the requirements of business:

During this phase the KPMG examines the analysis of business and Information Systems

by performing an analysis of failures to determine the future state of information

technologies including enterprise architecture, service provision and management.

3. Select alternatives for the Information System:

Based on the future state of information technology during this phase a list of alternatives is

made. This list may be valid for the organization to implement or execute to achieve the

requirements of the business.

4. Design a scenario of Strategic Information Systems:

Strategic information system is been drawn. During this phase, a detailed analysis of each

strategic alternative is performed. Analyzing is done to know the impact that the various

strategic initiatives will have on each other and strengthen these initiatives where

appropriate.

5. Develop the Strategic Plan for Information System:

This last phase is devoted to develop the Strategic Plan for Information Systems.

6. Diagnostic capacity of Information Technology:

The diagnostic capabilities of information technology focus on three main areas of capacity

that include

i) Governance (Governance)

ii) Services (delivery) and

iii) Enterprise Architecture (Enterprise Architecture)

The aim of evaluating these three areas is to gain a general understanding of the existing IT

environment of the organization.

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E-business

Electronic business or internet business is the application of information and communication

technologies in support of all the activities of business. By electronic business many companies are

able to bond their internal and external data processing systems more efficiently and flexibly. They

work more closely with suppliers and partners and satisfy the needs and expectations of their

customers. It is easy for accessing to e-business businesses through the internet as one can be

24x7 available that will present a strong likelihood among customers from around the world will visit

sites.

1. Internet is transforming industry value chains:

E-business is transforming company’s role within their industry. Many manufacturers are moving up

the value chain to offer e-business advisory services. At the same time, new web enabled

competitors are appearing at each point on the value chain, threatening companies’ accustomed

sources of value.

2. Intermediaries are changing but not disappearing:

Companies have found it difficult to bypass their traditional intermediaries that a reluctance to cut

out intermediaries poses a major obstacle to their e-business plans. Instead, companies are

searching for new ways of working with the middleman. Some firms are attempting to turn their

agents into customer-service agents and many firms are web-enabling relations with wholesalers

rather than selling directly to customers.

3. For online distribution, companies are developing a “portfolio of options”:

Rather than drive customers to a single sales channel, executives believe they must give

customers several options. Many companies are enabling their customers to buy through online

marketplaces, corporate extranets and system-to-system connections, as well as through in person

channels.

4. Companies are using e-business to expand products and services and to reach

new groups of customers:

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To meet customer demands KPMG are using internet to provide value-added products and

services. The internet is turning out to be an effective way of reaching new customers, particularly

overseas. This is a very important strategic goal and is the most efficient way to do this.

5. E-business improves internal and external collaboration:

The Internet is turning out to be more than a sales and purchasing channel. Improved collaboration

with business partners is a highly important objective for their e-business strategies and improved

knowledge management is highly important.

In this competitive world, information technology and e-commerce is a constant challenge for

companies to balance their business goals with the business risks of using technology. KPMG

understand the need of the technology and take advantage of the tremendous opportunities offered

by technological innovation. But the risk involved in it should not be neglected. KPMG understand

the risk factor and are aware of their responsibilities to control this risk. KPMG's Information Risk

Management practice advises on managing risks from the use of information technology. E-

business world is important as more and more businesses are entering into electronic trading that

is business-to-customer and business-to-business. KPMG's IRM group is at the front position of

assisting businesses to create these "communities of trust" that are vital to successful e-trading.

The provision of independent audits may secure e-business infrastructures which can be assisted

in the design and implementation of PKI solutions. Information Risk Management has the skills and

experience to help global organizations achieve their objectives in this vital and expanding arena.

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SWOT Analysis

STRENGTH:

Broad reach in globe with a wide

range of services.

Across the industries, revenues

are spread which reduces the

exposure to business and

economic life cycle risk.

Integrate the firm’s member by

bringing stakeholder confidence.

The methodologies used by them

helps client in their performance.

WEAKNESS:

Have limitations in implementing

technology for solutions.

For the mid market, the business

consulting strategy lacks.

OPPURTUNITIES:

Growth in emerging market which

can be benefit for the company.

Increase in infrastructure may

increase the demand for advisory

services.

Strong power of new orders and

legislation

THREATS:

Competitors

New models in consulting

services delivery.

New business model and new

agreement types.

Value Chain

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Fig.1

KPMG focuses on six of the key value producing activities. The activities are customer

management, resource management, skills acquisition, workforce optimization, human capital

development and partnership developments. The services which KPMG provides to its clients are

supported by IT.

Customer management means understanding the clients company and provides solutions which

support the end customers. Resource management is utilizing people effectively by matching their

skills, capabilities, knowledge, and career interests to projects and initiatives. Skills acquisition is to

deliver quality things to clients which require set of skills. Workforce optimization is the utilizing the

staff to its maximum level to achieve the goals. Human capital development is building training and

distance learning programs so that customer requirements and market trends are matched.

Management tools are used to ensure that people are developing intellectual and social capital to

meet increasing demands and challenges. Partnerships provide value and manage the cost. It

delivers innovative services to customers.

In KPMG, Information technology systems implementation helps all business performance

improvement services that ends up or includes automation and implementation of ERPs, Business

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Intelligence or other vertical solutions. Information Technology, Advisory Services, project

management, quality control is the actual implementation of:

ERP Advisory

IT Project Advisory

IT Strategy and Performance

Information Protection and Business Continuity Advisory

Business Intelligence

IT Architecture, Infrastructure Systems and ERP Implementation

Porter’s Five Forces Framework

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1. Threats of new entry:

Today government is easy with the rules and regulations for new entry. More and more

firms are entering the market. This makes the competition more difficult. The determinants

of the market environment get change at any time like market share, price and customer

loyalty.

2. Rivalry among existing firm:

KPMG is one of the best consultancy firms and has lot of competitors. The existing firms

come up with new models and methodologies which make them strong in the market. When

there is a rivalry among the existing firm each firm do something new to attract more and

more customers.

3. Threats of substitutes:

Because of the substitutes available, there is a change in the company’s profit or price.

KPMG in order to remain in market has to consider the prices also.

4. Bargaining power of buyers:

If the power of the buyers is high then firms are forced to low the prices. Today many firms

have entered the market and even the existing firms are present makes the company goes

according to the buyers need and demand.

5. Bargaining power of suppliers:

KPMG itself provides services to other companies. So they are the suppliers for other

companies.

KNOWLEDGE MANAGEMENT ACTIVITES

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KPMG defines knowledge management as "A business model embracing knowledge as an

organizational asset to drive sustainable business advantage. It is a management discipline that

promotes an integrated approach to identify, evaluate, capture, create, enhance, share, and apply

an enterprise's intellectual capital".

KPMG’s Knowledge Management services include:

Customer Management:

Clients are helped out in designing and implementing customer management systems. It

includes the analysis and estimation of the economic impact of such an endeavor. Help are

provided with identifying and implementing the necessary changes in the organization's

structure, delivery channels, operations and infrastructure, as well as the change in

management support aiming, at enhancing the clients’ operational efficiency and effectiveness.

Conceptual Design:

Conceptual design is a design and arrangement of functional and technical requirements of

business intelligence applications. It helps them to support business analytics, budgeting and

planning, costing and profitability measurement.

Data Warehousing:

The data warehousing solutions of KPMG help its clients in achieving dramatic results by

developing an integrated system of hardware, software and network technologies. These

integrated systems are designed to translate operational data into accessible business

information. Firm have a dedicated group of experienced professionals who have designed and

built data warehouses ranging from departmental data marts to terabyte information systems for

various organizations. KPMG has also developed a unique approach to help clients to "jump-

start" their data warehousing initiatives.

Knowledge management software helps organization in collecting and organizing information,

sharing information among users, enhancing the ability of users to collaborate and preserve

knowledge gained through use of information. Knowledge management software includes those

tools which can read electronic documents, scanned paper documents, e-mail messages and web

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pages. Knowledge management software can help organization but most of the organizational

knowledge is tacit.

CUSTOMER RELATIONSHIP MANAGEMENT

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Customer relationship management describes a company very widely and its business strategy

including customer-interface departments as well as other departments. Customer relationship

management is a software based approach for handling customer relationship. It store information

of current and prospective customers.

KPMG support its clients in the area of customer management strategy. It includes selection and

implementation of IT systems dedicated to Customer Relationship Management and transforming

their businesses to focus on their customers. KPMG’s customer relationship strategy offer market

trends analysis in terms of customers and competition, evaluation of customer relationship

management readiness as well as evaluation of the business requirements and needs. The

services which are offered to clients are development of a customer strategy plan and development

of sales channel concepts. Customer portfolio segmentation and analysis are helping organisation’s

to identify and assess customer management process risks and inefficiencies that could help

companies to acquire, retain and service the most profitable customers. The services which are

usually offered are the definition of risk management strategy and scoring procedure, customer

data analysis, segmentation and benchmarking. KPMG provides an integrated approach that

covers several strategic and operational aspects of a call centre, building a call centre with pre-

defined operational performance indicators and benchmarks. The services offered are assistance in

building client’s call centres i.e. inbound or outbound, helping in assessing clients call centres

capacity and workforce planning analysing and improve the call traffic trends to required strategic

service levels and market benchmarking.

Customer relationship management activities are:

1. Product Extension:

Competition for any product has become a normal thing as many companies have entered the

market. One has to be a smart in doing business. Our customers are already purchasing the

product. For loyal customers, organizations usually introduce products and services which are

different from original purchase. Once purchased, our goal is to retain them as customer for the

extended products or services.

2. Caring for existing customer:

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The business should not forget about the existing customers as they are very important. Existing

customer are important as because of them the company are making profit. So, special caring

should be given to existing customer.

3. Creating goodwill:

Goodwill is very important in business. If the company has a positive goodwill then the new

customer and suppliers may directly be attracted. But existing customers plays an important part in

making goodwill in the market.

4. Service:

Before and after sale service had become crucial. Service given by the company helps in gaining

customer satisfaction. If customers are satisfied then they will come back for your product and may

influence other customer.

5. One to one service:

Market is huge. To satisfy or to attract or to retain customers business has to provide services on

one to one service. Different customers exist with different taste and preferences, so to satisfy each

customer becomes important.

6. Attract new customer:

A company can’t survive in business with the existing customers. It has to attract new customers.

New customers are attracted with quality, technology, price and innovation.

CONCLUSION

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The findings of this report confirm that information and knowledge management is an accepted part

of the business agenda: the benefits of knowledge management are acknowledged; and

organizations with a knowledge management programme are demonstrably better off than those

without. However, the full benefits of KM are being missed and organizations are failing to tackle

knowledge management’s real challenges

Companies’ particular just believe the employee considerations and see knowledge management in

purely technological terms. As a result, employees complain of information overload and of policies

that fail to reward them for driving knowledge management initiatives – for instance by sharing and

maintaining knowledge. Organizations are failing to grasp the fundamental changes to their day-to-

day operations and culture that successful knowledge management implementation requires. They

are also failing to raise their sights and recognize the impact on profit, share price and employee

retention and development that knowledge management can deliver.

Technological improvements will help knowledge workers, not least in fighting information overload:

the emergence of knowledge management tools in areas such as content management, user

needs profiling and intelligent Internet searching will make their jobs easier.

This, in turn, will drive a more stylish understanding of the HR and internal interactions aspects as

organizations take a more holistic view of knowledge and its value. The result will be a virtuous

circle as organizations take knowledge management more seriously, make the necessary internal

changes to encourage knowledge working and see the benefits in terms of enhanced shareholder

value.

BIBLIOGRAPHY

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http://www.kpmg.com/UK/en/Pages/default.aspx

http://www.personneltoday.com/articles/2009/08/04/51615/personnel-today-awards-2009-award-

for-hr-impact-shortlisted.html

http://www.kpmg.com/KZ/EN/WHATWEDO/ADVISORY/PERFORMANCE-AND-TECHNOLOGY/

TECHNOLOGY/Pages/default.aspx

http://www.talanton.info/our-services.html

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