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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.
• 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.
Problem • 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? .
• For this they have to consider 150..) • Ultimate goal was to establish a common global knowledge base: a networked information service that would be available to PwC workforce and its clients.Problem (Cont. .000 partners and staff with geographical coverage over 152 countries.
• 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 • Both companies started back to the mid 1800 when both companies started as accounting firms based in London. .
.) • Two companies merged on July 1. 1998 to create one world’s largest full service professional organization. .History (Cont.
• Became strong by sharing their expertise ..) • Similar in terms of services and geographical coverage • Not similar in terms of industry coverage.History (Cont.
• Headquarters are wherever services were delivered. . which could be anywhere in the world.Organizational Structure • There was no formal headquarters for PwC but the global leadership was based in New York. Frankfurt and London.
Middle East and Africa ▫ Asia Pacific .Organizational Structure (Cont.) • PwC split their structure into three “theaters” ▫ Americas ▫ Europe..
.) • Global Executive team composed of eight members including Chairman.Organizational Structure (Cont. CEO and Six Global in-charge of for following industries ▫ ▫ ▫ ▫ ▫ Geography Service Line Human Resources Operations Risk management .
) • Overall integration was achieved rather smoothly.Organizational Structure (Cont. but history was in the line of service . • Both PW and C&L were organized in a matrix structure by region • For PwC there was focus on industry..
• 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.) • PwC consisted of 6 lines of business and 24 market sectors clustered into five groups..
) • The 5 Industry groups consisted of: ▫ ▫ ▫ ▫ ▫ Financial Services Industry Service Industry Global Energy and Mining Industry Consumer and Industrial Products Technology.Organizational Structure (Cont. Information/Communications and Entertainment ..
.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.Organizational Structure (Cont.) • As an increase in breadth and depth of expertise PwC enjoyed annual revenue of $ 17..
. • 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 • 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 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. only that information is shared • Each KC office had its own home page with knowledgebase and information important at each local level..) • 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.
..) • Development team was able to build website within a local KC.Knowledge Curve (Cont. • 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. HBS resources) ▫ Alliance databases .g. consultants can use the following ▫ All main information repositories ▫ General business tools (e.
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 ..
) • 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.
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.. posters & flyers .The Knowledge Team (Cont. give aways. wallet cards.) • Manager of Communications had the responsibility promote KC in 150.
The Knowledge Team (Cont.) • Feedback from workforce was collected through knowledge point help desk • Also.. there were staff satisfaction surveys related to KC .
information is only stored by industry or line of business .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.
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 .
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 .Knowledge Centre • It was integrated facility for knowledge sharing.
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 .
) • 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..IT Systems and Organizational Structure Differences (Cont. 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 .
.) • 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.
E-mail Networking & Intranet using Lotus Notes (Cont. C&L in Hong Kong alone had 115 domains which made restructuring task difficult ..) • Domain restructuring was one of the most complicated restructuring tasks ever done • PW had 115 domains which were reduced to 7.
Australia Message to PW .Illustration Price Waterhouse Database Mail Coopers & Lybrand Database Mail Reuters Audit Paper Hub Message to C&L Sydney.
data is sent to archive database • These steps prevented the data to become obsolete which gave data more value .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.
anyone can see anybody’s contacts but data owners can edit them. • PwC decided to choose open database .) • 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..Database and Server Integration (Cont.
powerful knowledge base • Information in PwC Lotus Notes was in the form of documents • C&L whereas used SQL .Database and Server Integration (Cont..) • Next step involved categorizing and eliminating duplication in databases • This process was time consuming but ensured efficient.
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 .
) • 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..
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 .) • Notes Team ▫ Recertification of Notes ID ▫ Official notes name would include line of service.Plans for Improvement (Cont..
etc Content LOS Content provider Projects Team Hong Kong Home page of Knowledge Curve DAT A SPL & GTS Change Team GTS home page & GTS database Hong Kong Pages DAT A DAT A DAT A DAT A DAT A Replication to Sydney Notes Team . Telephone list.Development Team Knowledge Curve Global SQL Databas e Master Clients list. Power code mapper.
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