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TABLE OF CONTENTS

Sr. No
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. About the company IT E-Business SWOT Analysis Value Chain

Content

Page number
02 03 - 05 06 - 07 08 09 - 10 11 12 13 14 15 16 17

Porters Five Force Framework Knowledge Management Activities Customer Relationship Management Conclusion Bibliography

About the company

1.1 History

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.

1.2 Services
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.

1.3 Mission
Turn knowledge into value for the benefit of its clients, its people and the community.

1.4 Values
The vision of the company is simple - to turn knowledge into value for the benefit of our clients, people and our capital markets.

1.5 Strategy
The company focuses on professional behavior, client and market knowledge and multidisciplinary.

INFORMATION TECHNOLOGY
KPMG professionals offer an extensive range of advisory services in IT support and management, covering the following areas: 3

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 firms business 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 companys 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 clients 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:

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. 5

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.

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 companys 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:
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. Ebusiness 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.

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 firms 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

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 Intelligence or other vertical solutions. Information Technology, Advisory Services, project management, quality control is the actual implementation of:

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ERP Advisory IT Project Advisory IT Strategy and Performance Information Protection and Business Continuity Advisory Business Intelligence IT Architecture, Infrastructure Systems and ERP Implementation

Porters 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 companys 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.

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KNOWLEDGE MANAGEMENT ACTIVITES

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".

KPMGs 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 "jumpstart" 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 13

tools which can read electronic documents, scanned paper documents, e-mail messages and web pages. Knowledge management software can help organization but most of the organizational knowledge is tacit.

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CUSTOMER RELATIONSHIP MANAGEMENT

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. KPMGs 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 organisations 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 predefined operational performance indicators and benchmarks. The services offered are assistance in building clients 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.

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2. Caring for existing customer:

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 cant survive in business with the existing customers. It has to attract new customers. New customers are attracted with quality, technology, price and innovation.

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CONCLUSION
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 managements 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-today 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.

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BIBLIOGRAPHY

http://www.kpmg.com/UK/en/Pages/default.aspx http://www.personneltoday.com/articles/2009/08/04/51615/personnel-today-awards-2009-awardfor-hr-impact-shortlisted.html http://www.kpmg.com/KZ/EN/WHATWEDO/ADVISORY/PERFORMANCE-ANDTECHNOLOGY/TECHNOLOGY/Pages/default.aspx http://www.talanton.info/our-services.html

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