Develop a brief on what asset based consulting is and several case studies incluidng McKinsey Solutions, PwC Denova and Deloitte Solutions

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Asset-based Consulting

Asset-based consulting is a business practice where companies turn employee and company expertise into products, tools or templates that can be used repeatedly by their employees or clients. This is to ensure consistency when carrying out business processes, and make it easy for companies to scale their services in an ever expanding market environment. Examples of firms in the US that offer this service include McKinsey & Company, Deloitte, PWC, KPMG, and Bain & Company.

definition

  • Asset-based consulting is a business practice where companies turn employee and company expertise into products, tools or templates that can be used repeatedly by their employees or clients. This is to ensure consistency when carrying out business processes, and make it easy for companies to scale their services in an ever expanding market environment.
  • Asset-based consulting represents a change in the business model from one in which human talent is the main product or service, into one in which the tasks, skills and services offered by subject matter experts or employees are turned into products or tools that can be used during client engagement or by clients themselves, alongside expert services.

BENEFITS OF ASSET-BASED CONSULTING

  • The benefits of asset-based consulting include less reliance on manual effort, better consistency or repeatability, competitive differentiation, greater speed, and lasting relevance. Consistency means that the results are predictable, and allows for ease of bench marking as results are repeatable. With less reliance on manual effort, this means that the pressure to hire and keep talent is reduced. As such, when processes are automated, great results can be delivered and repeated regardless of who is hired.
  • Asset-based consulting offers great speed especially in analyzing complex data as well as the potential for getting deeper and actionable insights. In addition, companies that switch to asset-based consulting are more likely to have lasting relevance and a competitive differentiation edge. Cloud computing, data analytics and accelerators create value and are a top priority for organizations.

DELIVERY MODELS

  • There are various delivery models in asset-based consulting used by top financial companies and these are dictated by the nature of the company and its needs. The delivery models discussed below are from McKinsey & Company, Deloitte, PWC, KPMG, and Bain & Company.

MCKINSEY & COMPANY

  • McKinsey & Company has two offerings as far as asset-based consultancy is concerned. These are McKinsey Solutions and McKinsey Wave. McKinsey solutions is a collection of software tools that have been categorized and optimized according to industry and business function. These solutions help clients by providing diagnostic tools, market intelligence, management technology and analytics. Industries covered by McKinsey Solutions include aerospace & defense, agriculture, electric power & natural gas, financial services, healthcare systems & services, metals & mining, oil & gas, public sector, and retail. On the other hand, solutions for business functions include marketing & sales, operations, organization, program management, strategy & corporate finance, and technology & digital functions.
  • McKinsey Wave is a management platform that is focused on helping organizations deliver impact, especially around large-scale organizational change. It allows teams to collaborate in real time and to act on insights. McKinsey Wave is typical of asset-based consulting and includes expert services, combining both product and talent. It is designed to be used for tracking large-scale transformation and restructuring as well as merger management. McKinsey Wave allows organizations to plan, track, report and act on insights and information in their platform.

DELOITTE

PWC

KPMG

  • KPMG has two asset-based consulting platforms. These are KPMG Spark and KPMG Clara. KPMG Spark is an online bookkeeping service that is designed for small business owners. As with asset-based consulting, KPMG integrates its Spark technology with dedicated and experienced accountants who are available on call. KPMG Clara allows business owners to view and track live bank data, track vehicle mileage, prepare tax submissions, view detailed transactions, collaborate as a team, carry out a powerful search, access the SurePayroll service, track financial performance through reports and graphs, create invoices, make payments, and do third party integrations.
  • While the KPMG Spark platform is designed for KPMG clients, KPMG Clara is designed to be used by KPMG auditors to streamline all audit activities carried out by the company regardless of the auditors' locations. According to KPMG, Clara is agile, automated, intelligent and scalable. It allows for auditors to interact with their clients online in real-time as they do client audits. Specifically, KPMG Clara allows for audit collaboration, updates on audit progress and risks, a risk-based understanding of significant accounts, analysis of complete populations, data-driven risk assessment and deep industry insights.

BAIN & COMPANY

  • Bain & Company has a cloud based platform known as the Bain Results Accelerator. This platform is useful in managing transformational programs or in change management. The Bain Results Accelerator is designed to reduce bureaucracy, provide visibility, foster communication and engagement, while providing and generating a proprietary dashboard with actionable insights.
  • The Bain Results Accelerator allows for streamlined planning, real-time monitoring and simplified collaboration. Properties for the Bain Results Accelerator include dashboards that can be customized for decision makers and an interface that can be configured with a flexible design and layout options.

Research Strategy:

  • To provide an in-depth overview of asset-based consulting and examples of firms that offer this service in the US, our research strategy for the first three companies included in the research were straightforward as requested by the client. We had to find two more companies which could be classified as 'top' financial companies. This search strategy was not successful as the results we got included banks and investment companies among a host of other financial companies.
  • We then discovered that the companies that the client had requested us to include in the research are by definition 'management consulting' companies. Furthermore, the client question was focused on asset-based consulting which is an offshoot of management consulting. We therefore decided to focus our search on top management consulting companies in the US and thereafter select companies that fell in the 'data analytics & big data' category. The companies that met this criteria were the likes of Deloitte, McKinsey and PWC. This strategy proved successful as we were able to add two more names to the list of three management consulting companies specified by the client. The companies we added to the list are KPMG and Bain & Company.
Sources
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Quotes
  • "Asset-based consulting refers to an approach to consulting in which tools and software solutions are primary assets, in addition to human capital. "
Quotes
  • "An industry becomes susceptible to disruption when it becomes entrenched in its longstanding solutions and financial structure. Disruptive innovations provide simpler or more elegant solutions to existing problems, enabled by new technology and often at a lower cost."
Quotes
  • "The term ‘Asset Based Consulting’ in practice covers a wide range of approaches from augmenting manual effort with templates, best practices and software tools, through to creating fully packaged services that replace individuals with an automated solution."
Quotes
  • "Deloitte Digital is changing the game again—in a really big way. The Assets & Solutions Group (ASG) allows our network of member firms to offer clients assets and app-enabled services that are an extension of the Salesforce platform across key industry sectors and functional areas. This natural evolution in a long-standing, industry-leading relationship with Salesforce is informed by the deep, global experience of Deloitte Digital’s Salesforce practice. We’ve built a wealth of technical prowess, strategic vision, and industry insights from our Salesforce implementations—all of which enable our network of member firms to offer you a faster time to value and reduced risk throughout your digital transformation journey. Are you ready to join us?"
Quotes
  • "Supply Chain Opportunity and Optimisation Platform (SCOOP) is PwC’s supply chain analytics platform which provides rapid insight into supply chain performance. Using advanced analytics – including machine learning, simulation and optimisation – it addresses your complex supply chain challenges and helps identify quick wins using your data."
Quotes
  • "Designed to help businesses, from startup to spin-off, save time and offer them the financial tools they need, when they need them, KPMG Spark is a software enabled service providing cash and accrual-basis tax accounting. Combining the latest technology and a team of accountants, we bring all of your tax accounting into a single platform, without the hourly fees and long-term contracts traditionally charged by accountants."