New EY Service Aims to Solve Capital Challenges in Digital Business


Archived Published: 27 June 2016 ID: G00312940

Analyst(s):

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Summary

EY has announced an integrated set of transaction advisory service offerings, designed to help clients evaluate and assess the capital investments required for their organizations to become digital businesses.

News Analysis

Event

On 23 June 2016, EY announced Transaction Advisory Services (TAS) Digital Capital Agenda, an integrated set of TAS offerings that addresses the diverse capital requirements of digital business initiatives.

Analysis

Becoming a digital business is placing significant pressure on today's organizations, for several reasons. The digital era continues to significantly highlight the challenges organizations face from both a business and technology perspective. These two aspects are now so tightly intertwined that it is difficult to know where one begins and the other ends. Capital is required to fund digitalization efforts, address new business risks and value organizations in preparation for merger-and-acquisition activities. Additionally, many other capital-intensive challenges exist for organizations embarking on becoming a digital business.

EY's TAS Digital Capital Agenda provides an integrated set of services across the transaction life cycle to address the impact of digital disruption on companies. These services consider all key aspects of the organization — revenue, customer experience, products and services, organization, operations, capabilities and investment. EY has embedded a digital perspective into its existing TAS business to deliver a set of strategic offerings, bringing focus and structure to the process of funding and fueling digital business initiatives.

EY’s Digital Capital Agenda service offerings include:

  • Identifying digital investments and strategic partnerships

  • Reviewing competitor digital maturity and ecosystems

  • Optimizing digital funding options

  • Digital and commercial due diligence and growth strategy analyses

  • Valuing digital assets and intellectual property

  • Assisting with digital scenario planning and assessing impact on shareholder value

The most important impact of this announcement, in Gartner’s view, is that it represents an innovative approach from a professional services firm to coordinate service offerings for digital business from a capital perspective, coupled with a digital strategy development capability. CEOs and senior business leaders may now find a service provider that can offer the necessary services that enable them to evaluate the impact of digital business, to evaluate potential mergers and acquisitions, and to assess and fund digital business initiatives.

Recommendations

CEOs and senior business leaders embarking on digital initiatives: Consider these types of offerings as a way to value digital assets that can be monetized, assess competitors to improve market position, build ecosystems to increase growth opportunities, and fund digital business initiatives. Be aware that other service providers with comparable advisory capabilities may follow this approach and rebundle services in a similar manner.

Senior business leaders considering digital business initiatives: Recognize that an agreed-upon way of understanding and leveraging the digital era will be required as the lines between business and technology continue to blur, and the fluidity of industries becomes more obvious.

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