Section 1
Offering value to clients through technology and EY’s mission
From the perspective of EY’s purpose of Building a better working world, EY will first apply technology to itself and, backed by its own experience, show the world how professional services can be delivered . In that sense, EY’s mission is to self-innovate.
All of EY’s four service lines share the same function of analyzing a variety of internal and external data, including client data, to derive insights and provide feedback to clients on emerging issues involving management and business, as well as consulting and M&A recommendations. We believe that our ability to anticipate future change, measured by the quality of our analysis and depth of insights, is the key to building a long-term competitive advantage for EY.
Our analytical capabilities make use of advanced information technology such as artificial intelligence (AI). Collecting mass data in real time, managing it with good governance and security, and leveraging AI and various algorithms raise the analytical ability exponentially. Fully harnessing this technology enables us as human beings to scale our analytical capabilities.
A survey suggests that most auditing and tax work will be replaced by AI and automated software in the future. Even today, technology-driven solutions already enable information gathering and routine research and analysis to be automated and accelerated.
Likewise, the use of technology impacts how work is done in various industries, and therefore EY needs to change its work style as well.
Our service lines such as Consulting, and Strategy and Transactions are no exception. It is imperative that we provide professional services in strategy formation and business reform and other engagements which reflect the latest trends in technology.
From the perspective of EY’s purpose of Building a better working world, EY will first apply technology to itself and, backed by its own experience, show the world how professional services can be delivered . In that sense, EY’s mission is to self-innovate.
Section 2
What technology means to EY Japan
We believe that our ability to anticipate future change, measured by the quality of our analysis and depth of insights, is the key to building a long-term competitive advantage for EY.
In July 2021, following the appointment of a new Regional Managing Partner (RMP) at EY Japan, we defined our focus areas for the next three years. One of these is how to strengthen our data technology capabilities and be an exemplary user of technology. By embedding our people’s experience and know-how gained through EY’s professional services in the technology assets that we develop, we are able to scale our people’s skills, empowered by IT. This will enable us to further increase the value and quality of our services. This self-transformation will be innovation made real by and for EY.
EY promotes this innovation by reinforcing the organization for developing and operating technology assets on a global basis. We are setting up Regional Technology Hubs (RTH) at various locations around the world. In the Asia-Pacific region, we opened a RTH in Tokyo in July 2020 where professionals are working in areas such as full stack engineering and user interface development. On a global basis, EY has invested over 150 billion yen in the development of technology assets in the past three years. EY assets developed anywhere in the world will be accessible in Japan, giving access to EY’s global experience and know-how from technology.
As Japan has its own domestic rules and unique business practices, the RTH will act as the bridge for this. Travel in the other direction is also possible. We may deploy assets internationally that were originally developed for clients in Japan, as an example of global trends initiated in Japan.
Section 3
Current initiatives to strengthen technology
Going forward, we will deliver services with sustainable, long-term value for clients through services and new capabilities enabled only by deploying technology.
EY Japan focuses on the following five areas:
1. Launching an innovation fund
We have launched an innovation fund to attract global assets to Japan and develop and promote the assets that meet the needs of our clients in Japan.
2. Establishing a framework for development and operation
We reinforced the team in the RTH charged with a mission to develop and operate assets. They have collaborated with Global Delivery Services (GDS), which is an EY internal shared services organization, and established an onshore center in Fukuoka in October 2021. The center engages in the development, maintenance and operation of the assets.
3. Developing data technology talent
- As developers of assets
We recruit professionals both internally and externally to EY, integrate them in the RTH and provide training for them.
- As users of assets
AI, Big data analytics, and Customer experience design (“ABC” skills) are regarded as the essential tech skills for the business people of tomorrow. We plan to develop and introduce related training programs.
4. Promoting alliances and building ecosystems
We roll out EY’s global alliances with technology companies such as Microsoft and IBM in Japan and, in turn, build an ecosystem through collaboration with startups and venture companies from Japan.
5. Expanding EY wavespace™ Tokyo as an innovation hub
EY wavespace Tokyo expanded in July 2021 to become an innovation hub that provides a venue to envision the future of society and business with clients, plan the roadmap for change to activate visions of the future and experience demos of technology-driven solutions which bring it to life. At EY wavespace, clients and EY people collaborate for innovation.
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Summary
EY Japan focuses on the following five areas: 1. Launching an innovation fund 2. Establishing a framework for development and operation 3. Developing data technology talent 4. Promoting alliances and building ecosystems 5. Expanding EY wavespace™ Tokyo as an innovation hub
