Enhancing value in a disruptive environment
Enhancing value in a disruptive environment
Insight

Enhancing value in a disruptive environment

Faced with evolving customer behaviors, new and unexpected technologies, and shifting regulatory and tax policies, disruption is becoming business as usual for many organizations worldwide.

This paper provides insight to help businesses:

  • Understand the effects of major business, technology, tax and regulatory disruptors on value chains
  • Identify their organization’s key value drivers and steps to take to optimize their approach to create greater profitability and cash flow

Faced with evolving customer behaviors, new and unexpected technologies, and shifting regulatory and tax policies, disruption is becoming business as usual for many organisations worldwide. In response, some companies are reevaluating both their value chains and operating models to better understand the ways in which disruption may be affecting how they can and should deliver business value.

Regardless of source, disruptors are catalysts for change in existing value chains.Complex interdependencies among people, processes, and systems require an integrated project team to help determine the operating model is viable and supported across the organisation.

The reality in many organizations is that functional siloes, discrete business planning processes, misaligned key performance indicators, and other challenges can drive leaders to view disruptors as stand-alone problems to be addressed in isolation—with strategy and operations focused on changes driven by business disruptors and the tax function focused on tax disruptors. Companies that view the required changes as unrelated organizational objectives may not be enhancing their end-to-end value chain and may also be significantly increasing their overall tax risk profile. Organizations that can respond to disruptors in a fully integrated manner offer themselves a better opportunity to maintain and enhance enterprise value.

Value chains of the future: Highly integrated dynamic networks

The current economic era is increasingly characterized by always-on consumerism, customization, and same-day delivery. 

Organizations use e-commerce, digitization, and automation to be nimble and cost-efficient in response. Yet, these new demands and technologies also place new stresses on organizations’ legacy operating models and open the door to competition from nontraditional parties. Organizations are taking important steps to adapt to these evolving trends. KPMG’s Global Transformation Study found that 96 percent of organizations are in some phase of transformation.1 As business transformation drives change in the operating model and value chain, there is no guarantee that an organization will create value—indeed, in many cases, value may be reduced. As companies seek to leverage new technologies, they should seek to balance risk and reward specific to their industry and operating model.