“EY is investing in many of the areas that are going to help our clients going forward. One of them is around acquisitions; another one that’s closely related are strategic alliances. The third area is around digital. Now, we have a different strategy around digital than some of our competitors. For us, we believe in putting digital in everything we do. And then the fourth area is all around innovation – we’re looking really to disrupt ourselves. We’re looking to disrupt our tax practice, we’re looking to disrupt our audit practice, we’re looking to change our people model.”Carmine Di Sibio, Global Managing Partner – Client Service
“In the current environment, companies really have no other choice but to embrace disruption and embrace change.” Watch Uschi Schreiber, Global Vice Chair – Markets, talk about the upside of disruption.
This was one of many themes explored at this year’s Innovation realized client retreat in San Francisco. The event was deliberately designed to mirror market unpredictability and inspire fresh thinking, and is just one of the many EY initiatives to elevate innovation to the top of all our client discussions.
No single organization can maintain a lead across all of the new digital platforms that are coming up. It’s therefore now more important than ever to bring in specialist skills and resources, and build an ecosystem of like-minded companies so that we can react quickly to the changes that are taking place. Over the last year we made 26 acquisitions to strengthen our client capabilities and seven new strategic alliances.
Robotics Process Automation (RPA) tools automate an organization’s high-volume, highly repetitive, multistep tasks. But that’s not the whole story.
RPA provides a way to integrate IT systems without building an expensive and complicated additional system to do it. Which means that not only can resources that had been absorbed by repetitive tasks be redirected elsewhere, but also data can be collected and used more quickly, securely and accurately; the customer experience can be improved; and the organization can become more efficient and agile.
Find out how RPA could make workplaces far more people-friendly, or connect with Hans Jessen, Global Innovation – RPA Leader.
We are proud to be named as a leader for business analytics consulting globally by IDC MarketScape’s annual report series, Worldwide Business Analytics Consulting and Systems Integration Services Vendor Assessment(1).
The IDC MarketScape report cites EY as one of the leading business analytics consulting organizations that provides technical and sector insights and competence to clients.
Find out more about our analytics services, and the importance of not neglecting the human element of analytics.
(1) April 2016 | IDC #US40150316
We hire blockchain specialists globally with not just the ability to understand the technology, but also the ability to ask better questions – like, ‘what happens when value moves as easily as data?’
Read more, or connect with Paul Brody, Global Innovation – Blockchain Leader.
This year we bolstered our cybersecurity services through agreements with leading technology providers. Our services range from end point monitoring (providing deep insight into every computer within the client’s environment) to rapidly responding to attacks, including investigating the root cause and comprehensively remediating any impact.
We work with more than200,000 clients
In more than150 countries
including nearly80% of the Fortune Global 500
We also work with governments, middle-market companies and entrepreneurs.
We help central and local government clients – like Kochi Metro. We also help institutions such as Slovakia’s Association of Innovative Pharmaceutical Industry and the British Museum.
As leaders in high-growth entrepreneurship with more than three decades working alongside the world’s fastest growing companies, we have the experience, authority and know-how to help companies accelerate growth.
We have distilled that experience into the EY 7 Drivers of Growth, which provide a powerful means for determining what our clients need at different stages along their growth journey.
“India’s car-based commuter culture isn’t sustainable,” says Sujith Nair, a senior manager in our Advisory practice. “Without better public transport, average travel speeds could be around walking pace by 2030. Metro railways are a great solution. They don’t take up much space; they’re low-emission and high-capacity. But they’re also capital intensive, and it can be difficult to attract outside investors.”
One city that’s about to open a new metro is Kochi in Kerala, one of India’s 20 Smart Cities investing in new infrastructure as part of a government project. Kochi Metro’s set to be very popular – with estimates that, by 2021, more than 800,000 people will use it every day. Sujith is part of an EY team advising on the project.
“I knew, with close to a million passengers a day, there had to be something for investors,” says Sujith, “it got me thinking about what might happen if smart cards got smarter.”
Using C-EMV (contactless) technology for the first time in an Indian transport system, EY’s team and the leaders of Kochi Metro pioneered a new smart card that would act as a digital wallet for commuters. Rather than being just for public transport – this card could be used in shops and restaurants all over the city. But the innovation didn’t stop there. On offer to investors was an entirely new business model – access to a shared digital platform and a captive consumer-base.
“We approached a number of banks as investors and were blown away by the demand,” says Sujith. “The metro gets capex and a percentage of the non-transit revenue. And it’s a great deal for the bank – as well as receiving a return on their investment, they get transaction fees from a huge commuter base, and branding rights, too.
“The government’s happy too, as it got to reduce its spending and is considering setting the national standards for smart cards based on the Kochi model.”
And it’s not just Kochi that’s benefitting. EY’s model is now helping to attract investment in other Indian cities – Hyderabad and Nagpur – showing just how far a good idea can travel.
The Slovak government faced a challenge: with one of the highest expenditures on pharmaceuticals as a share of GDP in the OECD, it seemed likely doctors were over-prescribing drugs – placing pressure on the public purse. But previous attempts to get costs down – such as rules on how doctors and pharmaceutical sales teams could engage, and price controls – had not so far worked.
In response, in 2014, the government instituted a concept of an industry-wide pharmaceutical withholding tax: taxing any cash and non-cash transactions (like food and travel) between the pharmaceutical industry and doctors and hospitals at 19%. Complex and indiscriminate, it was set to have far-reaching impacts.
Richard Panek, a partner in our Slovak Tax team explains: “In some areas the tax made sense, but in others it had serious unintended consequences – in particular in the field of clinical trials. As a tax on gross revenue, it took no account of the costs of clinical trials, such as blood tests and lab work. Implementing it would have caused major cash-flow problems for doctors – and ultimately stopped the trials.
“The effects would have been serious for patients – who would no longer have access to experimental and potentially life-saving drugs – and also for the industry, diverting some €30m R&D spend annually to other countries.”
The sustainability of the industry, jobs in hospitals and labs, and the continuity of foreign investment in Slovak R&D were at stake. Seeking help presenting their case to the government, Slovakia’s Association of Innovative Pharmaceutical Industry came to us for help.
“It seemed to us talking was definitely the best cure,” Richard continues. “So we worked hard to build constructive relationships between our client and the government – creating a working group to bring everyone together in an open and inclusive way. We then used case-studies, detailed technical tax research and industry-specific positioning papers to explain the complex, far-reaching consequences.”
As a result, several important exceptions were implemented – including for clinical trials: safeguarding R&D spend, the jobs of health care professionals and researchers, and access to potentially life-saving drugs. And in March 2016, our work contributed to another legislative change – a “compassionate use program” that allows hospitals to continue to source experimental drugs free-of-charge, and tax-free, for patients with serious conditions after clinical trials have ended.
By bringing government and business together in constructive conversation, our tax team has helped shape the future of the Slovak health sector. And most importantly, has left a positive legacy for wider society for many years to come.
When the British Museum decided to move more than 8,000 of its objects and artifacts into a new state of the art storage facility with more efficient access, it asked for EY’s project management recommendations. And when it needed a plan to better manage the flow of its nearly seven million visitors a year, EY’s Valuation and Business Modelling (V&BM) team identified congestion hotspots and made suggestions as to how the crowds could be alleviated.
These are just two examples of the many ways that EY has been helping the British Museum to solve some of its most complex problems and secure its future. As part of the British government’s 2010 spending review, the museum’s grant was reduced significantly, so it has worked with EY to look for new ways to improve efficiency and generate revenue.
“We’ve built a strong relationship with the British Museum, based on a track record of successfully delivering more than a dozen different projects,” said Chris Dabrowski, Director, Performance Improvement, Advisory, and the EY relationship lead.
“We are not considered as just another set of advisors” he added. “We understand how the British Museum works and have built a relationship that allows us to constructively challenge their thinking in new and different ways.”
While he has been leading the relationship with the British Museum, people across all four of EY’s service lines have been involved in different projects. For example, Advisory teams have developed third-party revenue generation business cases for the Loans, Conservation and Scientific Research departments, and have produced a five-year operating-cost model for the museum’s World Conservation and Exhibition Centre.
“We have benefitted enormously from the collaborative approach and from the range of skills at EY, including business process analysis and operational modelling.” said Christopher Yates, Deputy Director of the British Museum. “EY’s ability to think through complex challenges and provide strong data-backed evidence for its recommendations is helping us to develop robust long-term plans for the museum in a changing world.”
EY people work on a pro-bono and skills-based volunteering basis, and gain great experience of an unusual public-sector client.
“Everyone who works with the British Museum says it is one of their favorite clients, because the work is just so interesting and different,” said Chris Dabrowski. “And there is more to come. Our ambition is to build on the strong relationship we have to help the museum in its next phase of development.”
Watch Annette Kimmitt, EY’s Global Middle Market Leader, talk about how we help our clients accelerate growth.
In 2016 we were recognized as a leader in middle market consulting in the first IDC MarketScape: Worldwide Middle Market Business Consulting Services 2016 Vendor Assessment (1).
Find out more about how we work with the analyst community.
Entrepreneurs create new technologies, business models, services and products that change the global competitive landscape. We are proud to help these entrepreneurs via initiatives such our annual EY Entrepreneur Of the Year™ Program, which culminates in the World Entrepreneur Of The Year award ceremony.
Watch highlights of this year’s event.
(1) IDC MarketScape, Worldwide Middle Market Business Consulting Services 2016 Vendor Assessment July 2016, IDC #US41184416.