You are on page 1of 48

Management Information Systems Case Study

Rizwan Asif 09-4715 Kazim Asghar 09-4767 Arooj Zahid 09-4768

Price Waterhouse and Coopers & Lybrand merged Creating one of the largest full-service professional organizations PwC PwC engaged in 6 lines of business across 24 industries in over 152 countries worldwide, with over 150,000 representatives.

Introduction (Cont..)
Major assets were: Their personnel & the knowledge base of those personnel. Before merger, both firms established information specialists for developing efficient internal networking practices for competitive advantage. To be successful, they are required to fully utilize their extended resources.

Strengths & Weaknesses

PW and C&L operated from different IT platforms with thousands of databases on different types of servers. Consolidation was considered to be the most effective way for companies of this nature to expand their range of services, global capabilities, market share and intellectual capital.

How to create a global organization that could fully integrate and add value to the new assets? How to successfully integrate the internal networks of the firms into one network of the new?

Problem (Cont..)
Ultimate goal was to establish a common global knowledge base: a networked information service that would be available to PwC workforce and its clients. For this they have to consider 150,000 partners and staff with geographical coverage over 152 countries.

Both companies started back to the mid 1800 when both companies started as accounting firms based in London. Both forms expanded their business through partnerships and by late 1980-90s both grown up to become global companies offering professional services beyond accounting.

History (Cont..)
Two companies merged on July 1, 1998 to create one worlds largest full service professional organization.

History (Cont..)
Similar in terms of services and geographical coverage Not similar in terms of industry coverage. Became strong by sharing their expertise

Organizational Structure
There was no formal headquarters for PwC but the global leadership was based in New York, Frankfurt and London. Headquarters are wherever services were delivered, which could be anywhere in the world.

Organizational Structure (Cont..)

PwC split their structure into three theaters
Americas Europe, Middle East and Africa Asia Pacific

Organizational Structure (Cont..)

Global Executive team composed of eight members including Chairman, CEO and Six Global in-charge of for following industries
Geography Service Line Human Resources Operations Risk management

Organizational Structure (Cont..)

Overall integration was achieved rather smoothly. Both PW and C&L were organized in a matrix structure by region For PwC there was focus on industry, but history was in the line of service

Organizational Structure (Cont..)

PwC consisted of 6 lines of business and 24 market sectors clustered into five groups. The 6 business lines were:
Audit Assurance and Business Advisory Services Business Process Outsourcing Financial Advisory Services Global Human Resource Solutions Management Consulting Services and Global Tax Services

Organizational Structure (Cont..)

The 5 Industry groups consisted of:
Financial Services Industry Service Industry Global Energy and Mining Industry Consumer and Industrial Products Technology, Information/Communications and Entertainment

Organizational Structure (Cont..)

As an increase in breadth and depth of expertise PwC enjoyed annual revenue of $ 17.3 billion worldwide for fiscal 30 June 1999 a record $ 2 billion increase in earnings The increase in revenues is achieved by capitalizing on the synergies.

The Integration Process

9 months before planned announcement of the merger PW and C&L teams already begun working to plan the structure of the new organization. The planning of corporate-wide integration was done by global executive teams which reviewed the overall firm and gave guidance to each local office.

The Integration Process (Cont..)

The Global Team provided guidance but final decision was made by each office at its own discretion.

Knowledge Management
Knowledge management was to play an very important role in the merger Ability to share knowledge and intellectual capital was key for successful integration and continued client service Efficient Knowledge Management could lead to Competitive advantage

Knowledge Curve (KC)

Knowledge curve was the name of intranet introduced to PwC Originally developed by IT team of C&L, KC was the core of the PwC Intranet system Intranet was entry point to make firm wide knowledge and make it accessible to the organization

Knowledge Curve (Cont..)

KC enabled profiling in three dimensions
Geography Industry Line of business

KC was structured at two levels

Knowledge Curve Global Knowledge Curve at local level

Knowledge Curve (Cont..)

PwC goal was to have all knowledge base centralized at Knowledge Curve Global But at global level priorities were given to topics that are more common firm-wide Which means limitations So based upon which Knowledge is needed on KC Global, only that information is shared Each KC office had its own home page with knowledgebase and information important at each local level.

Knowledge Curve (Cont..)

Development team was able to build website within a local KC. Local portal is customized KC Global to local needs with added features Content page provided users with office specific knowledge As KC Global developed some of local pages shifted to KC Global.

Knowledge Resources
PwC consultants can access knowledge resources through computers via Lotus Notes or Intranet Once logged in, consultants can use the following
All main information repositories General business tools (e.g. HBS resources) Alliance databases

GTS Channel
GTS Channel is a global database which was available to everyone; users just have to plug in their computers to any PwC office worldwide to get to work

The Knowledge Team

There were about 300 knowledge workers internationally Their work includes
Conduct research for the consultants in their teams harvest knowledge inwards by working with consultants to get knowledge from their assignments into the internal repositories kept by PwC Help manage content in the central repositories Ensure an open communication channel between knowledge headquarters and their industry group at the local level

The Knowledge Team (Cont..)

As PwC focus was to make global entity and KC team moved small databases to global repositories The Knowledge Workers managed content that belonged to their group within global repositories There were also central groups to ensure global repository works smoothly

The Knowledge Team (Cont..)

PwC was moving quickly to intranet platform which provided with greater chance to integrate everything The limitations were mainly the team ability to create awareness about KC, enabling consultants to understand capabilities and applications of KC By 2005 their goal was to ensure consultants more fully understood KC and how they can contribute in KC

The Knowledge Team (Cont..)

Manager of Communications had the responsibility promote KC in 150,000 PwC workforce in 152 countries worldwide Campaigns to increase awareness of KC include
Visiting various offices and scheduling presentations Teaching people (one-on-one) Distributing literature, give aways, wallet cards, posters & flyers

The Knowledge Team (Cont..)

Feedback from workforce was collected through knowledge point help desk Also, there were staff satisfaction surveys related to KC

Lotus Notes Vs Knowledge Curve

Both are used at PwC Lotus Notes allowed users to search across some or all business domains Also allowed users to search all documents opened over a certain period However, information is only stored by industry or line of business

Lotus Notes Vs Knowledge Curve (Cont..)

In KC it was possible to search for information by business development tree But to search across databases without knowing databases names was not possible This was due to absence of good search engine PwC to solve this issue signed contact with Verity as search provider

Knowledge Centre
It was integrated facility for knowledge sharing, training and data warehousing project support. Through Knowledge centre company could:
Receive hands-on training in many of the leading data warehousing technologies Have access to continuous market information View extensive state-of-the-art product evaluations Provide an environment where clients could work with PwC consultants to design and develop strategic knowledge-based solutions

Issues and Challenges

Global scale integration was not an easy task Integration process was made complex by independent systems focused on line-ofbusiness leading to inefficient usage of assets It was a challenge to break the closed systems and creating new system which will enable everyone to access KC globally

Issues and Challenges (Cont..)

Major challenges included:
Differences in IT system and organizational structure E-mail networking and Intranet using Lotus Notes Integration of databases and servers

IT Systems and Organizational Structure Differences

There were distinctive differences between PW and C&L in the way companies operated Integration was easier on PW side as their IT team was working before merger to setting up some standards Though standards were loose even than 70-80% system was in common at the time of merger

IT Systems and Organizational Structure Differences (Cont..)

C&L IT team had less communication with teams in other countries They are autonomous in terms of personnel and technology used As a result their IT structure was fragmented and outdated However, they were more advanced in Audit group where they used electronic working papers

E-mail Networking & Intranet using Lotus Notes

Linking e-mail system was first focus of integration Both companies agree that solid internal communications is a key factor to run new company smoothly Integration was facilitated by Lotus Notes on Intranet But team took whole year in planning and as at Feb, 2000 work is still in progress

E-mail Networking & Intranet using Lotus Notes (Cont..)

The global e-mail networking plan was very complex and impractical E-mails between two offices were routed through distant servers causing hours of delay Restructuring on the topology of Lotus Notes Domain was most complicated part

E-mail Networking & Intranet using Lotus Notes (Cont..)

Domain restructuring was one of the most complicated restructuring tasks ever done PW had 115 domains which were reduced to 7, C&L in Hong Kong alone had 115 domains which made restructuring task difficult

Price Waterhouse Database Mail Coopers & Lybrand Database

Reuters Audit Paper Hub

Message to C&L

Sydney, Australia
Message to PW

Database and Server Integration

Many duplications of databases required rationalizations Databases were revaluated by:
Identification of the data owner The identified owner has given the responsibility to for updating database on regular basis If owner could not be identified, data is sent to archive database

These steps prevented the data to become obsolete which gave data more value

Database and Server Integration (Cont..)

There was no one officially assigned to manage a certain database In C&L contacts database was closed, only partners can add contacts and access it PW had open contacts database, anyone can see anybodys contacts but data owners can edit them. PwC decided to choose open database

Database and Server Integration (Cont..)

Next step involved categorizing and eliminating duplication in databases This process was time consuming but ensured efficient, powerful knowledge base Information in PwC Lotus Notes was in the form of documents C&L whereas used SQL

Plans for Improvement

GTS was reviewing administrative systems and how it could communicate better with PwC customers Development Team
Executive Dimension (to analyze power data) Leave management Tax management Executive recruitment Document Management

Plans for Improvement (Cont..)

Network Team
Would continue to consolidate servers New application server for firm-wide applications and data sharing Network management Monitoring Security Internet Service

Plans for Improvement (Cont..)

Notes Team
Recertification of Notes ID Official notes name would include line of service, city and country Standardizing Notes mail templates Upgrading Lotus Notes infrastructure to version 5

Projects Team
Maintenance and upgrade of POWER system Implementation of Office 2000

Development Team
Knowledge Curve Global
SQL Databas e Master Clients list, Telephone list, Power code mapper, etc

LOS Content provider

Projects Team
Hong Kong Home page of Knowledge Curve

SPL & GTS Change Team

GTS home page & GTS database

Hong Kong Pages






Replication to Sydney

Notes Team