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Our Advisory Services EY Advisory & Consulting Co., Ltd.

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Page 1: EYアドバイザリー・アンド・コンサルティング ... - Our Advisory … · 2018-01-29 · Improving performance to prepare for change EY Advisory & Consulting Co., Ltd

Our Advisory ServicesEY Advisory & Consulting Co., Ltd.

Page 2: EYアドバイザリー・アンド・コンサルティング ... - Our Advisory … · 2018-01-29 · Improving performance to prepare for change EY Advisory & Consulting Co., Ltd

Improving performanceto prepare for changeEY Advisory & Consulting Co., Ltd.Of EY's four main service lines ̶ Assurance, Advisory, Tax and Transaction Advisory Services ̶the Advisory service line in Japan is operated by EY Advisory & Consulting Co., Ltd.Amidst an uncertain and constantly evolving business environment, our professionals in all fields of expertise take a multifaceted perspective to propose and implement exceptional global strategies that enhance business competitiveness and drive improved organizational performance.

EY globalservice lines

EY JapanEY member firms active in Japan are collectively referred to as EY Japan. Under the umbrella of EY Japan Godo Kaisha, a limited liability company jointly invested in by its constituent firms including EY Advisory & Consulting Co., Ltd. and Ernst & Young ShinNihon LLC, four service lines coordinate to assemble the optimal team for each project and help clients solve increasingly complex problems and achieve growth. We help our clients resolve complex problems and achieve growth. Each project is assigned handpicked personnel from across our four service lines of Assurance, Advisory, Tax, and Transaction Advisory Services.

EY (Ernst & Young)EY is a global leader in assurance, advisory, tax and transaction services.247,570 personnel from more than 150 different countries across the world collaborate under our unifying purpose of Building a better working world.

Transaction Advisory Services

Page 3: EYアドバイザリー・アンド・コンサルティング ... - Our Advisory … · 2018-01-29 · Improving performance to prepare for change EY Advisory & Consulting Co., Ltd

* Japan Business Service (JBS) is an EY global network providing wide-ranging assurance, advisory, tax and transaction advisory services. Over 500 Japanese-speaking professionals based in more than 50 major cities around the world (with 105 professional seconded overseas from Japan) provide support to Japanese companies looking to expand internationally.

Number of professionals by region

Japan ――――― 7,927(1 country)

Americas ――― 71,489(30 countries/regions)

Asia-Pacific ― 43,858(24 countries/regions)

EMEIA ――― 124,296(98 countries/regions)

Europe, Middle East, India and Africa

JBS* network

EMEIAUnited Arab Emirate U.K.ItalyIndiaEgypt HollandKazakhstan Cyprus SwitzerlandSwedenSpainCzech RepublicTunisia Denmark

GermanyTurkeyNorwayHungaryFinlandFranceBelgiumPolandPortugalSouth AfricaRomaniaLuxembourgRussia

AmericasAmerica Argentina CanadaChile

Brazil Peru Mexico

APACIndonesia CambodiaNorthern Mariana Islands GuamSingapore Sri Lanka ThailandPhilippines

Vietnam Malaysia Myanmar ChinaTaiwan South KoreaAustraliaNew Zealand

As of October 2017

As of July 2017

Page 4: EYアドバイザリー・アンド・コンサルティング ... - Our Advisory … · 2018-01-29 · Improving performance to prepare for change EY Advisory & Consulting Co., Ltd

Our OrganizationEY Advisory & Consulting Co., Ltd.Our more than 1,300 experienced professionals collaborating across 12 capabilities and 15 industries leverage their cutting-edge, global perspective and ability to execute to provide the optimal advisory services to solve the increasingly complex challenges companies face.

Company OverviewCompany names EY Advisory & Consulting Co., Ltd.

Business description

Advisory services provided in relation to: • Actuarial Services• Cybersecurity• Financial Services Risk Management

• Internal Audit/Internal Control• Risk Assurance• Risk Transformation

• Customer• Finance• Strategy

• Supply Chain & Operations• Technology• People Advisory Services

Operations started in January 2017Capital 450 million Japanese yenPersonnel Approximately 1,300 *As of the end of June 2017

Company Representative

Chairman and Representative Director : Andy Embury President and Representative Director : Masahiko Tsukahara

OfficeHead Office: Kasumigaseki Building, 29F, 3-2-5 Kasumigaseki, Chiyoda-ku, Tokyo, Japan

Tel: +81 3 3503 1490 (main number) Fax: +81 3 3503 2818Hibiya Office: Hibiya Kokusai Building, 2-2-3 Uchisaiwaicho, Chiyoda-ku,Tokyo, Japan

As of the present, June 2017

Capabilities

Industries

Actuarial ServicesCybersecurityFinancial Services Risk Managem

ent

Internal Audit/Internal Control

Risk AssuranceRisk Transform

ation

Customer

FinanceStrategySupply Chain & Operations

TechnologyPeople Advisory Services

Automotive & Transportation

Banking & Capital Markets

Consumer Products & Retail

Government & Public Sector

Health

Insurance

Life Sciences

Media & Entertainment

Power & Utilities

Real Estate, Hospitality & Construction

Sogo-Shosha

Technology

Telecommunications

Wealth & Asset Management

Diversified Industrial Product

Page 5: EYアドバイザリー・アンド・コンサルティング ... - Our Advisory … · 2018-01-29 · Improving performance to prepare for change EY Advisory & Consulting Co., Ltd

EY Advisory & Consulting Co., Ltd.

Capabilities

Capabilities

Page 6: EYアドバイザリー・アンド・コンサルティング ... - Our Advisory … · 2018-01-29 · Improving performance to prepare for change EY Advisory & Consulting Co., Ltd

Actuarial Services

Cybersecurity

Financial Services Risk Management(FSRM)

Internal Audit/Internal Control

Risk Assurance(FAIT, SOCR)

Risk Transformation

Customer

Finance

Strategy

Supply Chain & Operations

Technology Solution Delivery

Technology Transformation

People Advisory Services

Page 7: EYアドバイザリー・アンド・コンサルティング ... - Our Advisory … · 2018-01-29 · Improving performance to prepare for change EY Advisory & Consulting Co., Ltd

Actuarial Services

For example, EY assists clients with the following issues:

Businesses seeking implementation support related to various actuarial services, such as assessing the potential impact of adopting IFRS 17, organizing key issues related to actuarial services, or preparing balance sheets at the time of transition.

Businesses that require support with developing an actuarial model using Prophet, or are seeking review of their actuarial model or related internal audits performed.

Businesses seeking ICS field tests, field tests related to the Financial Services Agency's economic value-based solvency regime and support with enhancing ERM, verifying internal models and internal audit of ERM systems.

Businesses seeking support with developing new products, preparing a technical note for insurance premiums and policy reserves, and support with product approval.

Businesses that require support with operations relating to the acquisition or merging of insurance companies, in addition to incorporation assistance and business restructuring support.

Recent years have presented insurance companies with new operational challenges, such as keeping pace with trends in regulations and accounting standards, including ICS (Insurance Capital Standard) developments, changes to insurance accounting standards (e.g., IFRS 17 and the FASB‘s update on actuarial services for long-duration contracts) and enhanced risk management systems. As part of EY Advisory & Consulting's actuarial services are delivered by deeply experienced actuaries, who leverage their industry-leading insights and leading practices while making use of EY's global network to provide insurance companies with a broad spectrum of borderless insurance actuarial services.

Actuarial Services

Page 8: EYアドバイザリー・アンド・コンサルティング ... - Our Advisory … · 2018-01-29 · Improving performance to prepare for change EY Advisory & Consulting Co., Ltd

Actuarial Services overview

Financial reporting and calculation

We help clients conduct detailed analyses and efficiently create financial reports for both internal management and public disclosure based on the various accounting standards required of insurance companies.• Maintaining financial reporting systems (e.g., embedded value, IFRS 17).• Conducting profitability analyses, preparing related reports and maintaining financial performance

forecasting functions.• Insurance actuary operations for general insurance companies and small amount and short-term

insurance providers, etc.

Actuarial reviewWe provide actuarial science support when reviewing policy reserves as calculated using GAAP, and when auditing financial reports.• Liability reserve review and auditing support

Risk/capital management

We provide support with the development and implementation of risk-adjusted performance evaluation (RAPM) systems, in addition to support with related asset liability management (ALM) and other risk mitigation systems.• Developing economic capital methodology• Developing ROI metrics and asset liability management (ALM) systems• ICS and Financial Services Agency field test support

New product developmentRatemakingMarketing methods

We help clients develop new products, prepare statements of calculation procedures for insurance premiums and policy reserves, and receive approval for new products.• Support with developing new products• Examining and analyzing base rates and examining insurance rates based on profitability

assessments, etc.• Analyzing marketing methods

Insurance company acquisitions, mergers and incorporation

We provide support with all operations relating to insurance company M&A, as well as subsequent incorporation procedures and corporate restructuring.• Valuing acquisition targets• Services before and after incorporation• Assisting with transition to an authorized insurance provider for mutual aid systems

Actuarial modelingWe provide a range of services related to actuarial modeling.• Assisting with development of actuarial models• Reviewing actuarial models

Internal controlsActuarial analysis

We provide support with actuarial analysis in operations related to internal controls systems.• Assisting with internal audit of policy reserve calculations, etc.• Assisting with internal audit of ERM systems, including model governance

Actuarial Services

Act

uaria

l Ser

vice

s

Page 9: EYアドバイザリー・アンド・コンサルティング ... - Our Advisory … · 2018-01-29 · Improving performance to prepare for change EY Advisory & Consulting Co., Ltd

Cybersecurity

For example, EY assists clients with the following issues:

Businesses seeking to visualize their overall state of readiness against increasingly diverse and sophisticated cybersecurity threats, identify high-business impact vulnerabilities and make systematic efforts to strengthen cybersecurity measures accordingly.

Businesses seeking a technical assessment by ethical hackers with world-class expertise and research capabilities to confirm whether there are any deficiencies in their current security measures and if mitigation and response measures during cyberattacks are functioning properly.

Businesses seeking to establish effective, risk-based measures against vulnerabilities in all layers of technology by putting in place structures to implement organization-wide governance, monitoring whether each lifecycle stage is being implemented properly and reporting back to management.

Today's digital society faces constant threats to data security and privacy, raising the bar for organizations to protect their competitive advantage and brand confidence by taking the initiative against cybercrime. EY Advisory & Consulting leverages EY's global insights and network through cross-border teaming to support multi-faceted countermeasures against attacks.

EY's Approach to Cybersecurity

The promotion of reform

and continual improvements base

d in

a st

eadf

ast g

over

nanc

e

Governance

Risk tolerance

Threat analysis

Operational prioritization

Respond

DetectEducate

Complicate

Preventing attacks

Detect

Detecting attacks

Respond

Responding to attacks

Educate

Educating staff

Complicate

Cybersecurity

Page 10: EYアドバイザリー・アンド・コンサルティング ... - Our Advisory … · 2018-01-29 · Improving performance to prepare for change EY Advisory & Consulting Co., Ltd

Cybersecurity services overview

Cybersecurity program assessment

We help client management make decisions on their cybersecurity program through visualization by using a flexible framework incorporating major international standards including ISO27001 to assess the maturity of the overall state of the current cybersecurity program.

Attack & penetration testingWe employ world-class technological and research capabilities to assist in identifying risks posed by cyberthreats through cross-border use of its Advanced Security Centers, which possess a long track record of services provided in assessments of large-scale application and network security.

Threat exposure managementWe provide support with establishing structures to monitor whether lifecycle stages are being implemented properly and reporting back to management as part of the establishment of an organization-wide governance system, rather than simply implementing security software including conventional vulnerability assessment tools.

Cyber threat intelligenceWe utilize a variety of data sources other than OSINT (Open Source Intelligence) to gather information on and analyze the attacking organization or group and help clients develop the intelligence needed to effectively counter threats.

Certification and improvement support (including PCI DSS compliance, ISMS certifications, PrivacyMark)

We provide assistance with obtaining security certifications by leveraging its extensive consulting track record including top-tier companies and global knowledge while avoiding cost overruns caused by using a risk-based approach.

Cybersecurity auditWe perform assessments in line with audit objectives, identify issues and make specific recommendations for improvement. By utilizing the global EY network, we contribute to maintaining and improving management on a global scale, including overseas locations.

Management of personal information and privacy

We provide businesses support on a global scale with various regulations affecting operations, such as the Amended Act on the Protection of Personal Information in Japan and General Data Protection Regulation (GDPR) in the EU.

Resilience (business continuity management)

We provide support with the entire BCM lifecycle, from designing plans to enable risk-based, agile management of the continuity of critical business functions and recovery from personnel, process and technological damage resulting from disrupted operations, to maintenance and improvement.

Cybersecurity

Cybe

rsec

urity

Page 11: EYアドバイザリー・アンド・コンサルティング ... - Our Advisory … · 2018-01-29 · Improving performance to prepare for change EY Advisory & Consulting Co., Ltd

Financial Services Risk Management (FSRM)

For example, EY assists clients with the following issues:

Financial institutions looking to efficiently drive actions to address regulations in consideration of peers' good practices in addition to regulatory trends around the world as well as in Japan while promptly respond to financial regulations, understanding interrelationships among regulations and reducing costs.

Financial institutions seeking to strengthen governance not only in terms of organizational structure, but also data governance to improve data quality and model governance to enhance risk management.

Financial institutions seeking to enhance their risk management framework for non-financial risks in addition to conventional financial risks, such as by conceptual clarification of conduct risk compared with compliance and operational risks and revision of management framework of non-financial risk.

Financial institutions looking to supplement resource gaps in carrying out internal audit, or effectively use outside experts to gather meaningful advice for management from an technical perspective.

It is well known that navigating financial regulations and enhancing risk management are common challenges faced by financial organizations as part of doing business. However, the recent delay in the completion of the globally-developed Basel III package has resulted in each jurisdictional authority adopting a different stance on the package. At the same time, in risk management practices in the financial services industry, non-financial risks are now garnering more attention in addition to financial risks and enhancing management of non-financial risks is a pressing issue.In order to help financial services clients address these challenges, EY Advisory & Consulting offers a range of services covering clients' varied needs, making full use of EY's deep experience, expert knowledge, past case studies and other intellectual assets made available through EY's global FSRM network.

Financial Services Risk M

anagement

Page 12: EYアドバイザリー・アンド・コンサルティング ... - Our Advisory … · 2018-01-29 · Improving performance to prepare for change EY Advisory & Consulting Co., Ltd

Financial Services Risk Management service overview

Basel Regulatory FrameworkWe provide integrated support from gathering information on evolving regulatory trends and organizing regulatory requirements to developing processes and systems (e.g., developing governance, defining process and system requirements, user acceptance authentication, project management).

OTC derivatives We provide a wide range of support including on domestic margin regulations, Resolution Stay Protocol, CVA/XVA readiness and response measures on the Volcker Rule, MiFID II and UTI.

Stress testsThe importance of stress tests has grown dramatically in recent years, and we provide support with how to approach them including building scenarios from governance and internal controls related to stress tests, liquidity stress tests, and capital adequacy assessments while taking into consideration regulations in the US and Europe, where response measures are progressing, as well as the current state of practical affairs.

Recovery and Resolution Planning (RRP)

We collaborate with overseas EY offices to provide highly effective solutions in areas of interest to authorities around the world including restructuring, bankruptcy plans, playbooks, enhancing stress tests, BCM and SSC readiness and solvent wind-downs.

Operational riskWe provide support with management of the RCSA (risk control self-assessment) process, aggregation and analysis of internal loss data (e.g., accident information), development and enhancement of operational risk quantification (internal model), and management of cyber and reputation risks, which are gaining increasing importance.

Data governanceWe provide support with setting data quality appetite required of regulatory and internal management, selecting important data items, documentation such as data dictionaries and data flows, analysis and validation of data quality and introduction of tools to maintain and update documentation.

Model governanceWe assist clients with developing appropriate systems covering various models used by financial institutions from a variety of perspectives including developing, adopting, using and validating models while taking into consideration the latest initiatives by financial institutions based on guidance such as SR11-7 (OCC2011-12) and SR15-18 in the US.

Quantitative advisory (excluding actuarial services)

We provide services in model improvement, parameter estimation, code analysis and validation related to market, credit and operational risk as well as overall risk and stress tests.

Sector compliance (Banking & Capital Markets, Insurance, and Wealth & Asset Management)

Regulation is an unavoidable reality of the financial industry. We provide a full spectrum of support services from licensing and registration applications to disciplinary action response while taking into account the unique characteristics of each sector. We also consider international trends in financial regulation and the 2016 amendment of the Banking Act in Japan to help clients establish global and/or group governance.

Conduct riskWe help clients address the new issue of “conduct risk” (risk that inappropriate business judgment and behavior will have an adverse effect on a financial organization itself, markets, or clients and counterparties) by researching domestic and international trends, clarifying its relationship with operational risk and compliance and developing structures to manage it.

Financial crime (AML)We provide AML-related services for financial institutions to assist with risk assessments based on both Japanese regulations (e.g., Act on Prevention of Transfer of Criminal Proceeds) and international standards including US regulations, streamlining and improving KYC, CDD and transaction monitoring as well as training and internal audit.

Internal Audit (IA)There are growing calls for the necessity of development and improvement of internal audit structures at financial institutions as part of strengthening corporate governance overall. EY assists its clients in this regard by providing assistance with enhancing the quality of internal audit, external quality assessments and co-sourcing and outsourcing services based on cutting-edge expertise and leading practices.

Financial Services Risk Management

Fina

ncia

l Ser

vice

s

Risk

Man

agem

ent

Page 13: EYアドバイザリー・アンド・コンサルティング ... - Our Advisory … · 2018-01-29 · Improving performance to prepare for change EY Advisory & Consulting Co., Ltd

Financial Services Risk Management (FSRM)̶ IT Risk Management ̶

For example, EY assists clients with the following issues:

Companies seeking to enhance their systems risk management structures by gaining an understanding of the level of development of systems risk management structures at financial institutions (financial groups) and clarify issues and improvements to be made at their own company (group) through an independent third party.

Companies seeking to develop and enhance systems internal audit structures based on external third-party expert insights to close gaps in systems internal audit personnel and skills.Companies seeking to perform effective and efficient internal audit using an external third party due to a lack of resources to perform systems internal audit.

Companies seeking to leverage external experts' insights and knowledge to develop and revise the structure of their policy related to system development and implementation.Companies seeking to make effective use of external third-party assistance with assessments due to a lack of resources to perform systems risk assessments.

Companies seeking the assistance of experts in overseas regulations to address the wide range of requirements of local overseas regulations in areas including systems, information security and outsourcing through a global assistance platform including both local offices and offices in Japan.

Companies seeking to develop management structures compliant with global (e.g., ISMS, ITSMS, PMS, QMS) and payment card industry (PCIDSS) standards, and ultimately receive certification in these.

The information systems at the core of financial organizations' business infrastructure are becoming more important than ever. Potential risks to information systems include business disruptions caused by system malfunctions or operational errors; unauthorized, malicious access from inside or outside and information leaks; and the inability to determine the reliability of large amounts of data.Managing these risks can no longer be addressed by IT departments alone ̶ they must addressed by the entire organization under a firm-wide management structure. EY Advisory & Consulting provides a broad range of services to meet its clients' diverse needs by leveraging its years of experience, expert insight and EY's deep record of past cases and knowledge.

IT Risk Managem

ent

Page 14: EYアドバイザリー・アンド・コンサルティング ... - Our Advisory … · 2018-01-29 · Improving performance to prepare for change EY Advisory & Consulting Co., Ltd

IT Risk Management service overview

Systems risk management inspection (external audit of systems)

We help clients identify the strengths and weaknesses of their systems risk management structures as well as improve and strengthen said structures by performing investigations from a variety of perspectives and approaches making use of the insights of experienced experts in financial institutions' IT environments based on benchmarks and management standards related to systems risk management at financial institutions.

Assistance with systems internal audit

We provide a variety of assistance including with developing and enhancing systems internal audit structures and providing human resources (co-sourcing, outsourcing) for internal audit departments, which tend to lack systems audit personnel.

Advisory services relating to systems risks

We provide assistance with managing systems and systems risks, from development, revision and standardization of policies on management of systems and systems risks, to assistance with developing and implementing systems risk assessment frameworks.

Foreign regulatory compliance support

We take local authorities' regulations on systems risks, information security and outsourcing into consideration to provide assistance with developing and revising relevant policies, designing SLAs, and audit including systems audit and information security audit.

Certification approval and compliance support

We take the requirements of global (e.g., ISMS, ITSMS, PMS, QMS) and payment card industry (e.g., PCIDSS) standards into consideration to provide assistance with analyzing your current situation, identifying issues, proposing and driving implementation of improvement measures and handling inspections.

IT Risk Management

IT R

isk

Man

agem

ent

Page 15: EYアドバイザリー・アンド・コンサルティング ... - Our Advisory … · 2018-01-29 · Improving performance to prepare for change EY Advisory & Consulting Co., Ltd

Internal Audit/Internal Control

For example, EY assists clients with the following issues:

Businesses seeking to enhance internal audit quality, and more efficiently utilize existing resources.

Businesses seeking to create efficiencies by restructuring internal controls.

Businesses seeking to realize outsourcing (BPO, ITO) which accomplishes the original objectives.

EY Advisory & Consulting helps its clients with developing internal controls adapted to changes in the business environment as well as a variety of monitoring, including of internal audit. We also provide sourcing risk advisory (SRA) and contract risk management services tailored to company-specific risks and management initiatives.

Enhance internal audit quality and efficiency Redevelop internal controls Outsourcing (BPO/ITO)

Internal audit and IT internal audit services• Support performing internal audit• Support enhancing internal audit• Internal audit quality evaluation

Contract risk management services

Internal control and IT internal control services

Global Group Governance development support services

Sourcing risk advisory (SRA) services

Services serving the needs of the organization

Steps to enhance internal audit

Necessary functions of

internal audit

Internal control and compliance monitoringThe objective of internal audit is to assess the design, implementation and maintenance of internal controls. This includes assessment of compliance with key controls and company policy.

Provide advice on operationsInternal audit functions should not simply address “internal audit principles;” they should provide high-quality, appropriate advice about operations as part of its key activities.

Provide strategic, valuable adviceInternal audit functions should provide expertise on the organization's strategic initiatives, issues and reforms, and possess the personnel, knowledge and experience needed to effectively provide service at this level.

New trends

Universally acceptable principles

The expectations of management

Corporate activities and

business activities

Internal Audit/ Internal Control

Page 16: EYアドバイザリー・アンド・コンサルティング ... - Our Advisory … · 2018-01-29 · Improving performance to prepare for change EY Advisory & Consulting Co., Ltd

Internal Audit / Internal Control service overview

Internal audit and IT internal audit services

We help clients with all activities related to internal audit, including: performance of internal audit, including overseas, IT, theme-based and management audit; enhancement of internal audit, including designing group internal audit structures, establishing an internal audit framework, introducing a risk-based audit approach and standardizing audit-related content; and assessment of internal audit quality.

Internal control and IT internal control services

We help clients design, assess and improve internal controls such as by performing and streamlining assessments of internal controls over financial reporting, establishing internal controls over risk areas other than financial reporting (e.g., compliance, operational effectiveness/efficiency, asset safeguarding) and introducing control self-assessment (CSA) systems.We also provide assistance with initial SOX/J-SOX response during IPOs or M&A as well as planning, designing and implementing measures to improve internal management structures during IPOs or corporate scandals.

Global group governance development support services

We consider a variety of factors including the objectives of overseas expansion; the background of subsidiaries' incorporation (e.g., whether it was newly incorporated or acquired); and the size, corporate structure, corporate culture and pressing issues of local entities to assist our clients with developing a governance framework for group companies around the world and internal controls due diligence during M&A.

Sourcing RiskAdvisory (SRA) services

We provide assistance related to business process outsourcing (BPO) of functions such as accounting and HR as well as information technology outsourcing (ITO), including: planning the outsourcing strategy, identifying and assessing risks, designing project plans, standardizing controls, selecting vendors, executing agreements, identifying and assessing risks in the process for paying external vendors, designing action plans and SLA monitoring and management.

Contract risk management services

We assist clients with managing risks associated with the performance of contracts, and with regard to royalties and advertising expenses, we visit contractual counterparties on behalf of the client to investigate performance of the contract.

Internal Audit/Internal Control

Inte

rnal

Aud

it/

Inte

rnal

Con

trol

Page 17: EYアドバイザリー・アンド・コンサルティング ... - Our Advisory … · 2018-01-29 · Improving performance to prepare for change EY Advisory & Consulting Co., Ltd

Risk Assurance(FAIT, SOCR)

For example, EY assists clients with the following issues:

Businesses seeking an evaluation report from an independent third party to gain customers' trust and differentiate themselves from competitors.*

Businesses that want to use or offer cloud services but have reservations about associated risks.

Businesses that want a fast and reliable means of restarting operations after an unexpected business disruption such as a large scale disaster or severe IT problems.

Businesses that are looking to strengthen their personal information management systems, or ensure that their information protection and privacy management procedures adequately meet the regulatory requirements in each country of operation.

* Assessment reports are issued by Ernst & Young ShinNihon LLC, a member firm in the EY group. Please contact us for more information regarding this process.

IT function outsourcing, including the use of cloud services, is rapidly accelerating. As this continues, a key success factor for IT service providers will be their ability to address data security concerns. EY helps clients tangibly demonstrate how they fulfill their responsibilities as service providers.Centering around its IT assurance services built on extensive expertise and independence, EY Advisory & Consulting takes the perspective of an independent third party to provide advice on achieving more effective risk management taking into consideration IT risk evaluation methods, relevant frameworks and internal controls over IT systems, as well as Business Continuity Planning (BCP), Business Continuity Management (BCM) and privacy-related services.

Risk Assurance

(FA

IT, SOCR)

Page 18: EYアドバイザリー・アンド・コンサルティング ... - Our Advisory … · 2018-01-29 · Improving performance to prepare for change EY Advisory & Consulting Co., Ltd

Risk Assurance (FAIT, SOCR) service overview

Service Organization ControlReport (SOCR)

We provide assurance reports on internal controls related to financial reporting (JICPA AAPC Guideline No. 86 , AT801, ISAE3402) as well as those related to internal controls related to security and other areas (SOC2, SOC3).*

Cloud risk assessment support services

We help clients assess systems and security risks in line with the lifecycle to smoothly introduce or offer cloud services.

BCP and BCM related servicesWe provide a suite of BCP and BCM services, including designing, revising, reviewing and analyzing business impact level and assessing risks related to BCP, as well as training, education and ISO22301 certification, etc., to enhance BCM readiness.

Privacy related services

We provide a full range of services including assistance with response measures for the Japanese Amended Act on the Protection of Personal Information and foreign regulations, PrivacyMark certification and renewal, and necessary response measures, etc., for general business operators following the start of the My Number system. We also provide assurance reports related to personal information security and privacy management (SOC2, SOC3)*.

* Assessment reports are issued by Ernst & Young ShinNihon LLC, a member firm in the EY group. Please contact us for more information regarding this process.

Risk Assurance(FAIT, SOCR)

Risk

Ass

uran

ce

(FA

IT, S

OCR)

Page 19: EYアドバイザリー・アンド・コンサルティング ... - Our Advisory … · 2018-01-29 · Improving performance to prepare for change EY Advisory & Consulting Co., Ltd

EY Advisory & Consulting provides support to enhance and streamline risk management functions and build an organization highly responsive to risk by helping clients both improve performance through operational and IT risk insights and utilization of technology including data analytics and GRC and realize “proactive risk management,” which contributes to early detection and early response. We place particular focus on supporting risk management for high-business impact, IT-focused projects and risks in business process transformation.

Risk Transformation

For example, EY assists clients with the following issues:Businesses having difficulty sharing and aggregating information on risks despite specializing of risk management across multiple departments due to the growing diversity and complexity of risks faced.

Businesses at greater risk of difficulty solving problems given the ability level of current project administrators as a result of the increased scale and complexity of IT projects.

Businesses facing significant risk that the capacity of a system to solve business problems, the essential goal of the project, is lacking due to focus placed on launching the system.

Businesses considering process transformation of accounting or other functions but want to thoroughly examine the balance between risks and benefits.

We think that in managing project (or the programs they are part of) risks, risk reduction measures balanced with project goals can be created from the start of the project by gaining an understanding of the overall lifecycle and identifying key factors which could lead to the project (or program) not creating the value originally anticipated. EY provides core risk transformation services to enhance the performance of project (program) investments while minimizing unexpected problems and to clarify the series of processes and tools to create a high level of value.

Five challenges and actions during the lifecycle of a project (program)Portfolio governance Program governance Project life cycle

Idea selection Program/portfolio management

Advance planning Structure Execution

Has the right project been chosen?

Are preparations sufficient to conduct a

large-scale project?

Are preparations sufficient to ensure the success of the project?

Do you have a firm understanding of the

project status?Are all personnel working

towards success?

Idea selection Project portfolio analysis Complexity analyses Predictive index

diagnosticRisk analyses using

multidimensional cubesPrioritization analysis when making decisions

• Quickly identify which project ideas have the most economic value.

• Before conducting detailed analyses and development of ROI and business cases, conduct analyses to ensure there is no bias.

• Align the project with your business strategy and decide whether it is appropriate or should be terminated.

• It is possible to optimize all investment, risk, and benefits by establishing an order of priority after balancing the portfolio.

• Before beginning the gauged project, analyze your organization's ability to handle the complexity and endemic risks.

• By making adjustments to the planning, team, process, and management elements of the project, it is possible to boost results.

• Using detailed information to make decisions in advanced allows businesses to create an ideal platform for achieving the project they desire, helping them to avoid problems or unpredicted issues before they occur.

• Using the set goals as a reference, predict what risks may occur throughout the course of the project.

• In order to ensure maximum gain, and make decisions regarding the project, enhance the company's ability to analyze the current status of achievement, and latent risks of the project.

• Focus on and adjust the process in order to improve project results and optimize profit.

• Using detailed information to make decisions in advanced allows businesses to create an ideal platform for achieving the project they desire, helping them to avoid problems or unpredicted issues before they occur.

• Using the set goals as a reference, predict what risks may occur throughout the course of the project.

Commencement Introduction Creation of profit

❶ ❷ ❸ ❹ ❺

Completion

Risk Transformation

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Risk Transformation service overview

Program risk management (PRM) services

• We help clients improve performance through the adoption of the right information by helping improve the success and maximize the value of investment in transformation projects through risk controls from the upstream to the downstream of system implementation and by assisting with challenges including the identification of issues in the system conceptualization stage, confirmation and clarification of company policy, consideration of system roadmaps and selection of vendor packages.

• We provide support with project implementation, risk management and coordination through PMO (project management office).

• We conduct third-party assessments of large-scale system implementation and upgrade projects (for social infrastructure industries, specifically, large enterprises and government agencies).

Process risktransformation (PRT) services

We help clients manage risks associated with business process transformation including early closing and IFRS adoption.

Governance, risk, compliance (GRC) services

We help clients develop governance, risk and compliance (GRC), an integrated risk management method to address risks comprehensively, strategically standardize processes and leverage technology to combine risks laterally across functions. We also provide assistance with implementing software for these purposes.

Data risk services

We help clients enhance management risk management and internal audit through data analysis by data analytics experts and cutting-edge technology including analytic models using statistical techniques. We also help clients with organizational improvement activities based on risks detected in the process of improving data utilization methods as well as implementation of, and education on, BI, statistical analysis and CAAT tools.

Risk enabled performance management (REPM) services

We help clients implement risk enabled performance management, which makes it possible to create concrete value by making investment decisions based on the results of highly reliable risk analysis.

Risk Transformation

Risk

Tra

nsfo

rmat

ion

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Customer

For example, EY assists clients with the following issues:issues:

Businesses who want to know whether the appeal of their brand is being properly communicated to customers, and to take action to do so through communication and services in all points of contact with customers including through partner companies.

Businesses who want to develop global CRM including key account management, a critical element of global business expansion, and implement it at all overseas locations around the world.

Businesses that need to revise the positioning of their call centers as another marketing channel for the company rather than an extension of previous roles in response to demographic change including a decreasing and aging population as well as a growing number of foreigners.

What does it take to be a “trusted company”? Companies who earn their customers' trust have the power to change the world. Greater customer trust can be built by gaining a deeper understanding of customers, maintaining two-way communication and providing an engaging customer experience. Trusting relationships with customers are unquestionably necessary in order for a company to be successful. Every interaction with a customer can be an opportunity to build trust ̶ or lose it. In the modern, digitalized landscape, we are constantly connected with customers. This means it is even more important to collaborate with partner companies to provide experiences which exceed customer expectations and drive transformation through problem-solving such as offering improved efficiency.EY Advisory & Consulting helps clients make changes to develop and improve trusting relationships with clients through marketing, sales, and service focused on the customer experience.

Experience design approach example

• Objective setting:target/expectation effect/ideal form/prioritization• Predefinition:customer experience/communication/customer contact• Research:customer analysis/technology/cross-industry trends

• Customer experience prioritization:complexity/product/provision evaluation• Customer experience brush up• Customer journey map

• The creation of targeted customer experiences• Customer experience simulation• Prioritization

• Capability setting:skill/technology/data/governance• Capability gap analysis• Capability application planning

• The drafting of roll out plans• The selection of essential technologies and tools• Pilot planning

• Pilot execution• Assessing effectiveness• Business execution

• Monitoring, The establishment of a reform cycle

• Next step planning

Assessment Innovation Setting Methodology investigation Roll out Execution/roll out Improvements

Customer

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Customer service overview

Experience lead transformation

We perform customer journey mapping of the relationships between products and services in the customer lifecycle and design the value provided by the company (customer satisfaction and convenience) with consideration to what value the customer is truly seeking out, and any value garnering attention but not being sought out. We also help clients design and execute initiatives and plans needed to deliver this value as well as validate their effectiveness.

Digital marketing transformation

We coordinate with experience-led transformation to help customers plan and implement a marketing platform that takes into consideration the ideal state of customer touch points and both digital and offline marketing channels. We also assist clients with road map design, organizational function planning and design/execution of other plans which incorporate technological considerations when launching or modernizing a digital marketing organization.

Brand governance

Does your brand message reverberate with customers? Throughout the various interactions with your customers both online and offline, your brand is affected not only by advertisement and promotion, but also the website, contact centers, and image and customer service at the retail locations of your company and its partners. Our brand governance services make use of assessments including mystery shopping and social listening to help clients establish brand strength and brand governance, which have a large impact on the customer experience, when planning and implementing governance structures.

Sales force effectiveness

We help clients with ground-level conceptualization including sales and marketing channel innovation ideas, coordination between marketing and SCM functions and segregation of duties throughout the organization. We also provide assistance with designing and implementing operations and systems related to modelling and governance of the sales operation process associated with marketing campaigns in Japan, Asia, emerging countries and other regions.We also assist with conceptualizing sales channel transformation, organizational design and KPI development coordinated with the implementation of marketing automation, as well as practical support and change management using PDCA to validate effectiveness.

Service transformation

Service and contact centers are touchpoints crucial to improving customer satisfaction ̶ we help clients develop service menus, rules/methods for sharing information and KPI aimed at making them more customer-centric by proposing preventive maintenance suited to individual customers and improving service levels.We help clients implement and drive transformation by designing roadmaps which reflect the latest case studies and trends in technology, not just the operational processes as they are at present.

Customer profitability and campaign management

We help primarily B2C clients, including e-commerce companies, visualize customer-by-customer profit reflecting SG&A and distribution expenses in addition to conventional sales and gross margin. We assist clients with designing a roadmap of problems and response measures for customer-by-customer initiatives aimed at strengthening one-to-one marketing in order to improve marketing campaigns with questionable effectiveness including discounts and point systems, and recent issues in distribution expense management.

Customer

Cust

omer

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Finance

For example, EY assists clients with the following issues:

Businesses that want to go above and beyond simply ascertaining actual costs and expenses within the group at a given point in time, analyzing variance and giving feedback, but to also draw insights from the group's vast amount of business data to improve the precision of information provided for executive and senior management decision-making.

Businesses that are aiming to optimize investment judgments relating to M&A, etc., conduct post-investment monitoring, and gain a swift insight into investment effects with a view to maximize enterprise value/shareholder's value in addition to increasing the asset turnover across the group as a whole.

Businesses that, by making improvements to the productivity of their finance division through a process of reform/standardization of business processes and personnel training, are hoping to create a system that can, for a reasonable cost, respond swiftly to the diverse needs of business officers.

Businesses that want to develop finance organization structures that are efficient both globally and locally as a foundation for controls and governance that can scale with rapid overseas expansion by the group.

The competitive landscape businesses face is changing rapidly ̶ there has been an emergence of innovation-driven business model transformation and cross-industry competition, product life cycles are becoming shorter, the preferences and behavioral patterns of customers in the information society are diversifying, foreign exchange and interest rates are growing more volatile, M&A deals targeting inorganic growth are increasing, globalization is accelerating and there is growing pressure from the public to address risks and strengthen compliance.In order to promptly respond to these changes, the CFO and finance functions will be expected to fulfill a greater role than they have in the past both in terms of quantity and quality as business partners to executive and senior management. EY Advisory & Consulting helps clients with strengthening the function of the CFO to achieve corporate strategy and efficient operation and organizational administration of their finance function.

Changes in the environment surrounding the CFOEmergence of big data in business and the

difficulty of extracting insights from it

Increased complexity in business processes and information systems

Shortage of high value-added personnel with the requisite skills

Increased M&A for inorganic growth

Rapid innovation and adoption of new technologies

Progression of globalization

Greater pressure to address risks and improve compliance

Business model changes due to disruptive technology

Greater diversity and organic collaboration between personnel on a global level

Greater volatility in the business environment (e.g., changes in supply and demand, foreign

exchange and interest rates)

Rapid changes in the competitive

landscape

Finance

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Finance service overviewWe provide comprehensive services covering group management; organization, processes and personnel; and technology to help CFOs and finance divisions actualize their role as a business partner.

Group management

Enhancing performance management

We provide a broad range of assistance to help clients establish mechanisms which exert a continuous positive effect on performance, from setting performance management metrics (both financial and non-financial), to implementation and adoption of KPI management processes and business information analysis tools.

Improving budget management

We help clients develop budget management structures, processes and systems which effectively implement a PDCA cycle reflecting the characteristics of their industry in order to promptly determine and carry out initiatives needed to gauge progress on achieving the business plan, reduce costs and improve profitability.

Implementing IFRS

We help clients plan and execute a wide variety of initiatives, including first and foremost addressing tax and financial accounting matters, as well as revision of internal group management accounting and changes to operations and systems. We also provide assistance with driving group-wide efforts that require cross-border cooperation between different associates and divisions.

Improving financial management

We assist clients from the planning to execution phase of enhancing treasury management including improving capital efficiency, managing currency risk and optimizing procurement costs, as well as strengthening financial governance by revising group accounting policies.

Organization, process and personnel

Early closingWe help clients beyond simply making reforms within the accounting department ̶ we help identify bottlenecks in overall end-to-end processes that cross departmental and group company lines including order-to-cash and procure-to-pay, and examine and carry out actions to resolve these.

Enhancing the function of the finance organization

We provide consistent support with making organizational reforms and enhancing human resources, from functional design and execution planning to skill-will mapping of personnel in order to ensure that regular operations are carried out efficiently and develop a highly functional organization that provides helpful financial information to management.

Global Business Service

We help clients beyond just delegating simple or repetitive operations to shared services with the goal of reducing costs ̶ we provide consistent assistance from planning to execution phases in order to actualize global business services (GBS) with a focus on optimizing controls, strengthening governance and improving quality, to operational improvements.

TechnologyImproving the organization using cutting-edge technology

We use cutting-edge technology including next-generation ERP systems and robotic process automation (RPA) as an enabler to enhance the finance division's role and achieve operational efficiencies. We provide consistent assistance from proof of concept (PoC) to selecting, introducing and developing the appropriate technologies.

Targets CFOs should work towards1 Provide real-time business insights useful to executive and senior management.

2 Improve compliance and enhance ability to respond to the various risks and volatility the company faces.

3 Lead prompt post merger integration.

4 Cultivate finance talent with the requisite skills and provide the best service both globally and locally.

5 Achieve the above targets using efficient processes while reducing costs for the finance division.

Finance

Fina

nce

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Strategy

For example, EY assists clients with the following issues:

Businesses that want to rebuild their business model by utilizing new technology ahead of competitors, in order to break away from conventional price competition, which relies on brute strength, and to build a qualitative competitive advantage by enhancing their value proposition.

Business that want to modernize group management to maximize its strengths and realize medium to long-term growth by reorienting the business towards global expansion, and businesses that want to reconstruct their business infrastructure to achieve this.

Businesses that want to accelerate expansion into new emerging markets by leveraging their products and services, while responding to changes in the fierce competitive environment, revising their business strategy and restructuring operations.

Which of the business opportunities around the world should you focus on, and how can you improve your operations?Business encompasses wide-ranging and complex issues ̶ having a strategy that enables flexible management to respond quickly to changes in the business environment is becoming more important than ever before.At EY Advisory & Consulting, we utilize professional network of highly specialized domestic and foreign experts to support the planning and execution of the optimum strategy.

Examples of approaches to revising business strategy

Technological factors

Social factors

Economic factors

Political factors

Macro environment

Organizational capabilities

Strategic positioning

Business strategy

Market scope

Market presence of competitors

Customer population size and purchasing

power

Competitors' corporate structure

and strategy

Customer needs

Competitors' corporate resources and

capabilities

Product and service life

cycle(Market size and growth potential)

Strength of competitors(Intensity of competitive landscape)

Key success factors

(KFS) for the market

Your company's competitive advantages

Market environment

Competitive landscape

Strategy

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Strategy service overview

Assistance with designing business strategy

How should companies establish a build a competitive edge to achieve sustainable growth in an intense competitive landscape?What organizational capabilities are needed to achieve that competitive edge?How should companies transform the structure of their operations to enable them to create new value and establish a solid business infrastructure?We help clients realize the medium to long-term growth that comes with adaptability to changes in the environment.

Assistance with visualizing management

How can you keep pace with ever-changing circumstances and enable agile decision-making for myriad businesses across the world? We help clients establish mechanisms that enable management to effect prompt decision-making by extracting and processing data as needed that can contribute to management decisions from the vast sea of information and visualizing information which could provide hints to the process.

Assistance with designing medium-term business plans

How can companies map out their future from a medium to long-term perspective?When you backcast from the goals you are aiming for, can you lead your company on a path of realizing inorganic growth as a realistic way to achieve those goals?Amidst the intense changes in the environment businesses now face, we help clients design business strategy to steer their operations and operational strategy that enables them to achieve it.

Assistance with launching new businesses

Your chances of succeeding with a complex new business can be increased dramatically by identifying new business opportunities from the perspective of changes in market structure arising from shifts in the macroeconomic environment and the strengths currently possessed by management resources to construct an effective business model.

Company-wide cost reductions

Even for companies which have put in sufficient effort, a majority of cases have room for optimization due to organizational constraints and a lack of expertise.We help clients achieve maximum effect through internal business rationalization and negotiation with external parties using the expertise we have built up through our extensive track record of cases as well as tools such as benchmarks.

Assistance with transforming operational structure using advanced technology

We provide our clients with strong support to drive dynamic qualitative transformation of operations, make companies themselves the innovators and shift to a new business model which questions the state of industry competition by integrating the strengths of advanced technologies and companies' capabilities.

Assistance with designing overseas market entry strategy

What risks can companies anticipate when they try to break into new markets?Will the business opportunities currently available continue into the future?We leverage our global network of professionals to help clients understand market characteristics hard to identify from the outside and develop the best approach to new markets based on this understanding.

Global Program ManagementWe use EY's proprietary Global Program Management framework to help clients enhance their global management structure amidst a business environment which demands global expansion of operations and stronger cooperation with overseas associates.

Strategy

Stra

tegy

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Markets are diversifying. Production and sales centers are becoming globalized. Price wars are heating up on a global scale, and the threat of natural disasters looms. These internal and external forces are compelling companies to transform their value chains. That means adjusting supply-demand processes, enhancing cost competitiveness, reducing lead times and preparing business continuity plans. Companies also need to take these processes into consideration when expanding their supply chains globally.EY Advisory & Consulting provides a full range of services to support clients appropriately manage change and transform value chains. These services include strategic planning, process reform, and IT system rollout, establishment and operation.

Supply Chain & Operations

For example, EY assists clients with the following issues:

Amid expanding global networks, our clients need to adopt consistent operational management methods within their business networks. Information and data required to make corporate decisions need to be obtained accurately and efficiently.

Identifying the benefits that clients can expect from leveraging advanced digital technology in their product development and supply chains, and how this technology can be applied to resolve their existing business issues.

Building a flexible and scalable IT infrastructure to handle changes as supply chains constantly change as a result of group company reorganizations and acquisitions of overseas entities.

Strategic Architecture

Integrated Operational Excellence

Supply Chain Resilience

Integrated supply chain operating model

Supply chain segmentation and synchronization

Supply chain risk, sustainability and resilience

Innovation and complexity optimization

Commercial excellence

Run-to-target manufacturing

Route-to- market optimization

Supply chain network and flow optimization

Digital, Analytics and IT enablement

Perf

orm

ance

man

agem

ent

Fina

ncia

l Sup

ply

Chai

n

Talent development and change management

Supply chain reinvention transformation framework

Supply Chain & O

perations

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Supply Chain & Operations service overview

EY Catalyst

EY Catalyst is a cloud-based platform that strives to provide continuous improvements to business. By conducting continual assessments, automatic action planning and improvement implementation, EY Catalyst is able to continually optimize operational costs (OPEX). Furthermore, thanks to the import of best practice libraries and IWS*1, etc., as well as the preparation of a training regime and various project templates, introducing EY Catalyst takes no time at all.

Global operating modeltransformation (OME*2)

EY's global network provides clients with the supply chain management and tax advisory expertise they need to optimize their value chains, manage risks and enhance compliance from indirect tax and transfer prices perspectives. We also help clients visualize business process and improve cash flows by consolidating functions at RHQ or CoE.

Digital supply chain designsupport

We support clients' efforts to transform their value chains by using digital technologies like IoT, robotics, and data analytics. These technologies not only enable clients to reduce costs and boost efficiency, they also help them envision and create new value chain and business models.

Data management to support value chain transformation

We help clients enhance management of transaction data and master data in order to maintain operating efficiency, scalability, and the consistency and quality of data that impacts customer response speed in their global businesses.

SCM enhancement by S&OP*3

process implementation

We support clients enhance monitoring and control to improve their cash flow and achieve their financial goals. This includes supply chain management aimed at improving customer service levels and optimizing inventory levels, as well as consolidating global sales prices, manufacturing costs, and foreign exchange data into a One Number system.

Corporate managementvisualization (EI&A*4)

Our ability to leverage data analytics, business intelligence, enterprise performance management, and information integration platforms supports clients in establishing corporate management infrastructure. Our comprehensive information management practices observe transformations of value chain and utilize those insights to improve businesses.

PLM road map design and implementation support

We help clients design and implement road maps for Product Lifecycle Management (PLM). Clients use these road maps to enhance product design information management, modularize and standardize parts, build more flexible production networks, achieve IT-leveraged mass customization, and provide high-quality, low-cost after-market services.

Direct/Indirect procurement cost reduction

We support clients in building frameworks for continuous cost reduction. These frameworks analyze cost factors for direct and indirect procurement and benefits to identify cost reduction target and visualize the procurement process and forecast vs. results. We also help clients enhance compliance level by scrutinizing contracts and performance of suppliers.

Sustainablesupply chain management

Through a process of identifying and managing existing and new environmental and social issues that present a risk to the supply chain in relation to client business operations, EY provides businesses support introducing a sustainable management program that complements existing operations, make improvements to supply chain resiliency and efficiency, in addition to formulating procurement policies.

*1  IWS (= Integrated Work System) is a framework of solutions aimed at integrating practices such as TPM, lean and Six Sigma, and maximizing production efficiency. Developed by P&G, a contracted partner, EY is the solution provider.

*2  OME (= Operating Model Effectiveness) is a framework of solutions aimed at ensuring tax benefits as well as business structure and operation optimization in areas such as supply chain.

*3 S&OP (=Sales and Operations Planning)*4  EI&A (= Enterprise Intelligence and Analytics) is a framework of solutions aimed at improving performance and reducing risk by utilizing various client-owned

information from a management perspective.

Supply Chain & Operations

Supp

ly C

hain

&

Ope

ratio

ns

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Technology Solution Delivery

For example, EY assists clients with the following issues:

Businesses who want to drive business process reengineering (BRP) using enterprise systems in their management reforms.

Businesses that want to modernize their enterprise systems using the latest technology.

Businesses that want to improve and streamline their information systems infrastructure of the local entities and projects invested in when expanding overseas.

It has become critical to constantly optimize organizational and business processes for not only organizations facing inorganic changes in the business environment such as M&A and overseas expansion, but organizations whose operations have continued as before as well.There have been significant advancements in the technology to develop enterprise systems, which form the backbone of these business processes, and system-related problems faced so far can be solved by incorporating the right elements of these technologies.Consultants at EY Advisory & Consulting are well-versed in business processes and possess advanced technological skills ̶ they leverage the knowledge accumulated from EY's deep experience in global projects to help their clients drive management reforms of enterprise resource management (ERP) systems.We also help our clients actualize cutting-edge technologies in ERP, including IoT and AI.

Operational management

trends

Strengthening global

management

Addressing markets and customers

Improving the supply chain

Improving the efficiency of assets and operations

IT trends

Cloud computing

In-memory databases

AI and machine learning

IoT

Mobile

Security

Enterprise system deployment projects

Logistics/production

Accounting

Analysis

Human resources

Methodology and tools accumulated from EY's prior cases

Consultants with technological and industry insights

UseDeployDesignPlan

EY helps ensure sound project implementation

Technology Solution D

elivery

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Technology Solution Delivery service overview

Assistance with enterprise system planning

We provide a suite of planning phase assistance services to help clients organize their management targets and system issues, define the themes of reforms to be achieved through the project, prepare the business and system requirements needed to achieve these, select the right information system configuration (including packages and vendors), and design a deployment plan accordingly.

BRP-driven ERP system implementation

Our consults leverage their extensive industry knowledge and experience in project management to make use of clients' existing methodologies and tools to help clients achieve BPR using ERP systems that does not simply emulate business as usual or result in excessive new development.

Development of systems infrastructure at overseas subsidiaries and investments

We help clients define the right governance level for their overseas subsidiaries and investments and design the best system configuration to achieve that while taking into consideration the local IT situation. We also provide assistance with planning and deploying systems infrastructure, including coordination with local IT vendors.

Assistance with PMO and PGMO

Modernizing large-scale systems or implementing multiple projects concurrently requires development of a sound project management system, which must be managed flexibly and precisely. We use our experience with large-scale projects and a variety of tools to help clients manage their projects.

Assistance with achieving outsourcing and shared service centers

Many companies are making efforts towards outsourcing and shared service centers. Steep increases in overseas personnel expenses recently and technologies like RPA and AI accelerating the rise of business process automation are precipitating a period of change from how business has been done so far. EY helps its clients throughout the entire project, from assessing the current situation to planning/design and execution.

Assistance with enterprise system implementation

Foreign companies in Japan including those from the US and Europe often carry out business process integration using the head office's ERP system (including when Japanese companies are acquired by foreign companies). Our expert consultants assist clients with communicating with the head office and with Japan's unique requirements (e.g., laws and regulations, business customs).

Industry solutionsEach industry has unique operations and business customs, and systems infrastructure implemented to achieve these. We have consultants well-versed in the IT operations of all industries who help clients deploy systems infrastructure which takes the unique characteristics of their industry into consideration.

Technology Solution Delivery

Tech

nolo

gy

Solu

tion

Del

iver

y

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Technology Transformation

For example, EY assists clients with the following issues:

Businesses that want to develop a strategic roadmap for IT architecture that can support business transformation in a business environment undergoing continuous, intense change.

Businesses that want to enhance their IT infrastructure to support communication and collaboration functions and optimize services in order to establish touchpoints with myriad customers through an omnichannel and maintain a high public profile as a company.

Businesses that want to improve the performance of their operations related to the administration of business IT systems ̶ particularly, to make reforms including administration organization, sourcing, infrastructure/architecture and asset management.

Create a better working world by transforming the way enterprises leverage technology to deliver new business models and drive agile, efficient and cost effective IT.

• Make smarter investments in technologyThe pace of technology change is unrelenting and costs are increasing accordingly. How can we help clients modernize and automate environments and get the best return on their technology spend?

• Leverage technology for growthTechnology transformation has extended beyond IT; technology should now be a full partner to the business, seeking and exploiting new opportunities for growth.

Key Trends impacting our client's technology functions

Robotics

Wearable Computing

The Internet of Things

Social

Cloud

Telematics

Predictive Artificial

Intelligence

The 3rd Platform

Drones

3D Printing

Virtual or Augmented

Reality

Mobile

“Big data” analytics

• Move towards Everything-as-a-Service; movement to cloud on a scale basis

• Cloud/mobile-first has become the default mode for delivering technology

• “Robotrend” and robotic process automation replacing humans for basic workflow; rise of artificial intelligence

• Internet of things, generation of exponential amounts of data

Opportunity/Impact• Significant shift in IT Operating

Model, Technology service delivery and service management integration

• Next generation Dev/Ops capability

• Trust-based architectures• New focus on business process

management - light-weight, heavy-weight; inter-oprability and machine-learned and driven

• Management and mining of mass amounts of data

Toda

yTo

mor

row

Technology Transform

ation

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Technology Transformation service overview

IT business performance Help clients manage and improve the performance of their IT operations, including their operational structure, sourcing, infrastructure, asset management and delivery management.

Service Management Integration

Help clients with the move towards “everything-as-a-service”. The key to success for future organizations is understanding how to source, manage and integrate the various services, and optimize the associated cost & performance.

Connected BusinessAssist organizations in building the “connected business enterprise” through unifying communications & collaboration capabilities (mobile-first), enhancing network/security architecture, and optimizing IT infrastructure & service cost models.

Business ArchitectureHelp clients navigate, structure and plan for business change through delivering business-driven architectures and transformation roadmaps that tie the strategies, goals and objectives of the organization to the systems and solutions that will deliver them.

Purpose-Led Transformation Help organizations align their IT purpose to business expectations through purpose-led transformation of IT.

Agile and DevOpsHelp our clients realize the value of adopting Agile methodologies and DevOps enabled engineering practices through implementation of the process, technology and culture changes required to transition to iterative and continuous software delivery.

Technology Transformation

Tech

nolo

gy

Tran

sfor

mat

ion

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People Advisory Services

For example, EY assists clients with the following issues:Workforce management

Businesses that want to close the gap between their present and future human resources portfolios with a view towards group management and global management in 2030.

Businesses that want to control rising future human resources costs.

Digital human resources

Businesses that want to improve their human resources ecosystem scientifically using the latest technologies including robotics, cloud-based human resources systems and people analytics.

Businesses that want to know whether they should shift human resource-intensive tasks to AI and robotics.

Mobility and talent leadership

Businesses that are unsure of how to achieve human resources management and utilization that put the right person in the right place on a global level.

Businesses that want to achieve highly effective personnel transfers which take tax and legal risks into consideration.

Businesses that want to examine new leadership development suited to the digital age.

Businesses that want to know how to develop new requirements for ideal personnel for sales and R&D divisions and career path planning.

The business environment is undergoing unpredictable change at a dramatic pace, including accelerated globalization, demographic changes, diversification of consumer and employee values and the emergence of new technologies.However, history has clearly shown that regardless of the passage of time, whether people and organizations can ultimately succeed amidst disruptive innovation caused by changes in business and technology depends on whether they themselves can change.EY Advisory & Consulting provides a full line of services to solve the immense, complex and global personnel and organizational challenges companies face, delivered by professionals with deep expertise in human resources and organization practices.

People Advisory

Services

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People Advisory Services overview

Performance

Organizational reforms/change management

• Change management, training and communication during organizational reforms• Improvement of employee engagement, turnover

Organizational design• Firm-wide organizational design and restructuring suited to new business strategies

and business model reforms• Restructuring and globalization of specific divisions such as sales or R&D

HR operations and delivery model

• Human resources organizational design including HR business partners, CoEs and operations

• Assistance with transition from local HR organizations to a global HR organization

Steamlined HR business process policy

• Automation of HR operations through RPA• Designing globally shared HR operations, operational standardization and driving

human resources BPR

Systems

Global and domestic human capital management (HCM) systems

• Designing globally shared HR platform and database structures• Implementation of global and domestic HR, payroll, working hours and WF systems• Product evaluation and creating business cases (investment effectiveness analysis)

Global and domestic talent management systems

• Implementation of global and domestic talent systems• Product evaluation and creating business cases (investment effectiveness analysis)

HR BPO/SSC • Assistance with HR BPO, outsourcing and shared service centers

Talent

Workforce strategy management

• Medium to long-term analysis and forecasting of human resource expenses towards achieving business strategy

• Assistance with developing personnel optimization models as well as combining and utilizing employees with a diverse employment structures

Leadership development• Leadership research and analysis in collaboration with DDI, a global leadership institution• Assistance with assessments and competency development for the new age of

digital leadership

Human resources development and training

• Redesigning standards for ideal personnel, modeling and administrating competencies and skills

• Assistance with planning and implementing educational opportunities for next-generational leaders and managers as well as succession management

Diversity & Inclusiveness• Promoting a flexible workplace and HR management policy based on business strategy• Holding trainings and competency development for diversity personnel and their

supervisors

Rewards

Designing and implementing an HR system

• Redesigning ranks, evaluation and remuneration systems as well as carrying out trainings to firmly establish the newly implemented system

• Designing and implementing new performance development (e.g., “no rating” evaluation)

HR M&A, organizational restructuring

• Promotion of HR due diligence and HR post-merger integration (PMI)• Assistance with personnel transfers and cost optimization during organizational

restructuring

Designing executive compensation

• Assistance with strengthening corporate governance (establishing a compensation committee and a nomination committee)

• Designing short-term and long-term incentives (e.g., STI, LTI, stock options)

Mobility

Establishing a global mobility policy

• Developing rules on overseas-to-overseas HR transfers (e.g., mobility policy, overseas transfer policy, secondment agreements, assignment letters)

Global mobility administration

• Assistance with individual income tax filings, obtaining visas and related operations, salary disparities and donations

• Advisory services related to PE accreditation

Analytics & insights

People analytics • Highly accurate model design and reporting through analysis of big data analytics including recruiting, retention and high performers.

Setting and analyzing HR KPI • Setting metrics for the HR and organizational domains, cost efficiency analysis

People Advisory Services

Peop

le A

dvis

ory

Se

rvic

es

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Focus Issue

Focus Issue

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Digital Transformation & Emerging Technologies

Robotic Process Automation

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Digital Transformation & Emerging Technologies

For example, EY assists clients with the following issues:

Businesses that want to determine a digital strategy. Businesses that want to know which of their current businesses are suited for the digital world?

Businesses that want to know how new technology contributes to offering customers better service, grow revenue and reduce costs.

Businesses that want to know how to make use of new technologies.

In today's age, everything is digitalized.For an organization seeking a way to achieve high growth while protecting its businesses, it is difficult to simply continue doing things the way they have been so far ̶ there are no simple roadmaps or certain answers.EY helps enterprises and managers maintain confidence while pressing forward in this new digital world.We help our clients use that confidence to effect real change and provide exceptional service to protect and grow clients' businesses and ultimately build a better working world.EY helps clients restore market confidence and lead their company to overcome disruption by providing its deep understanding and insights into new information technology and innovations as well as its superb decision-making ability.

Operations

We help clients coordinate, strengthen and automate their operations and supply chain to propose new digital value.

Innovation and creationWe provide all the services needed to create new ideas and business models.

Corporate strategyWe help clients establish strategy and operations appropriate to the digital age.

Addressing risksWe help clients assess the risks of digital technology and develop mechanisms that can promptly address them.

New customer experienceWe analyze clients' businesses to help them realize a new customer experience.

Digital Transformation & Em

erging Technologies

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Digital Transformation & Emerging Technologies service overview

RPA(Robotic Process Automation)

We use software to help clients free up human resources from work that is better suited for machines, such as frequent, repetitive work.This allows employees to concentrate on higher value-added work than before.Integration of AI allows for an even greater scope of work to which this can be applied.*Please see the page on Robotic Process Automation for more details on this service.

AI(Artificial intelligence)

AI enables computers to think about and tackle extremely complex problems in much the same way a human would.We help clients achieve AI which transcends industry lines, including machine learning, image processing, natural language processing and logical processing.

BlockchainBlockchain is a digital P2P transaction data exchange technology. It uses a digital ledger of transaction data shared across a distributed computer network to simultaneously improve the security of transactions as well as the speed of settlement.

Analytics We provide our clients with disruptive insights which can produce a competitive edge in their daily business processes using big data and advanced analytical technology.

IoTSmart cities are an example of the significant impact the use of IoT has on society.IoT sensors and service infrastructure allow for communication and automation between devices, enabling them to work together via the internet.

Digital Transformation & Emerging Technologies

Digi

tal T

rans

form

atio

n &

Emer

ging

Tec

hnol

ogie

s

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Robotic Process Automation

For example, EY assists clients with the following issues:

Businesses that want to examine and implement specific measures to address changes in the labor environment such as reducing overtime to improve employees' work-life balance and later retirement ages.

Businesses that have already implemented shared services and outsourcing, but are unsure whether they can implement RPA or how it will benefit them.

Businesses that are examining “digital” initiatives, but are having difficulty phasing in and implemented said initiatives as they do not have a clear image of how to do so.

RPA drives work automation using software robots.Companies are now beginning to automate existing work in order to improve productivity and efficiency.The scope of application for RPA is also growing along with the development of AI and related technologies.Just as industrial robots revolutionized the production floor in the past, in the future, how well a company can utilize this new digital workforce known as software robots will be directly linked with their ability to compete in the digital age.

Our approach is different

Our approach is proven

Our approach is sustainable

• Methods to realize business value EY draws on its extensive experience to provide clients with recommendations on how advance implementation of RPA with operational divisions at the lead and IT divisions providing support. We don't stop at simply deploying new tools ̶ we provide advisory services from strategic, organizational and operational perspectives to help clients maximize business effect.

• Achieve results faster We help clients realize the effect of early deployment by recommending projects using agile development approach or implementing projects piece-wise according to parts or phases.

• Respond to business changes faster We use RPA to help clients both maintain continued growth by automating business processes and respond to process change requests quickly.

• Proven project track record and deeply experienced professionals We share EY's extensive global experience to provide our clients with consistent support from start to finish.

• Broad knowledge about business processes and RPA technology Our deeply experienced teams use their understanding of the importance and nuances of clients' unique business processes to fulfill their role as business advisors you can trust.

• Coordination with product vendors and rich product knowledge Our extensive knowledge of RPA products allows us to provide clients guidance on how to efficiently implement and operate them. Our strong relationships with multiple major vendors allow us to effectively coordinate with vendors.

• RPA implementation methodology EY offers tools and methodologies ready to use out of the box based on its past project experience and realizing implementation effects.

• Development of internal experts We help impart the knowledge and experience clients' RPA personnel need to continue driving change and cultivate internal experts.

• Operations model proposals We provide assistance with maintaining and operating RPA and propose optimal operations models.

EY's unique approach

Robotic Process Automation

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Robotic Process Automation service overview

Pre-implementation assessment

Our service is broadly applicable across operational domains including SCM, bookkeeping/accounting and IT. We use evaluation metrics including processes, systems and data quality to help clients make a determination on the applicability of RPA and gain a quantitative and qualitative understanding of its pros and cons.

Proof of ConceptWe help clients by selecting work scenarios to be automated using RPA as well as configuring robots and measuring their effectiveness. These results are useful in selecting the best vendor for your company and designing an implementation plan.

RPA vendor evaluation EY has equitable relationships several major vendors, and understands their recent trends. This enables us to help clients select the best solution for them without favoring any particular vendor.

Developing and executing implementation plans

We work with clients to provide recommendations on RPA implementation prioritization, overall design of the business processes to be automated and developing executing and implementation roadmaps. Forming consensus among stakeholders from the planning stages is critical to successful implementation.

Center of excellence launch and follow-up service

We help clients develop and maintain controls management including development of proprietary training and internal organizations (CoEs) to enable them to make full use of RPA independently after implementation.

SSC and BPO revision Operational and organizational reforms

We provide consistent assistance beyond shared services and business outsourcing, including planning, organizational and business process development and implementation/adoption based on the new option of automation using RPA.

Digitalization assistance We review, and provide clients assistance with, the various emerging digitalization solutions based on RPA as a foundational infrastructure.

Robotic Process Automation

Robo

tic P

roce

ss A

utom

atio

n

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Industries

Industries

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Automotive & Transportation

Banking & Capital Markets

Consumer Products & Retail

Government & Public Sector

Health

Insurance

Life Sciences

Media & Entertainment

Power & Utilities

Real Estate, Hospitality & Construction

Sogo-Shosha

Technology

Telecommunications

Wealth & Asset Management

Diversified Industrial Product

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Automotive & Transportation

While new fields expected to grow rapidly in the future including connected cars and mobility present an unprecedentedly great opportunity for corporate growth and social change, the potential risks and challenges they also pose have still not been fully examined and analyzed. There is growing urgency for cross-company, cross-industry collaboration on a number of broad issues that are difficult for one specific industry to solve. EY Advisory & Consulting leverages the latest analytic technology and its experience in strategy planning to enable its clients to choose the right path for their company and develop cross-company, cross-industry collaboration.

For example, EY assists clients with the following issues:

Businesses that want to use data analytics driven by diverse sources including ERP, SNS, telematics, repair and warranty data and production data to optimize and reduce costs of sales incentives and product warranties, place the right human resources in the right places, streamline product development investments and improve the accuracy of performance forecasts.

Businesses that want to plan and develop strategy for new business domains and develop proofs of concept assuming a diverse range of scenarios, and based on this, hold cross-company, cross-industry roundtables and work sessions to identify specific risks and challenges presented and propose solutions and project management accordingly.

Businesses seeking assistance with analyzing changes in the risk environment associated with developing new businesses and developing internal controls and internal audit systems accordingly, improvement and acceleration of the financial closing process and implementing robotic automation.

Banking & Capital Markets

The decision-making expected of both major financial institutions, who are pushing ahead on globalization in search of new revenue sources, and regional financial institutions, who are looking for a sustainable business model amidst greater focus on regional revitalization, is becoming increasingly difficult due to the emergence of issues like negative interest rates, unprecedented changes in the social and market environments including Brexit, rapid technological innovation such as RPA, AI and Fintech and addressing the continuous corresponding changes to laws and regulations.

For example, EY assists clients with the following issues:

Businesses that want to integrate previous, overlapping systems as well as implement new systems in order to unify their data infrastructure and develop more efficient data governance structures due to the ballooning time and human resources required during closing because accounting, financial and tax data is stored across multiple different systems.

Businesses that want to implement the latest information technology including RPA and AI to use automation in order to streamline work that has been done through a human wave attack thus far, as well as perform more sophisticated analysis than is done at present. Or, businesses that want to accumulate their organization's knowledge and use it to make decisions that typically fall to a specific department on an organization-wide basis.

Businesses that want to implement strategically-aligned business process reengineering because of the increasing inefficiency and cost of system administration due to complex business processes and multiple, disorganized enterprise systems created by the heretofore haphazard approach to regulatory management.

Consumer Products & Retail

As the consumer environment in Japan is undergoing major changes such as an aging, declining population and decreased consumption due to consumption tax hikes, the procurement environment is also experiencing changes brought about by the proliferation of e-commerce websites and internet supermarkets. Meanwhile, competition between companies is expected to intensify amidst transitions to new business models leveraging advanced technology (e.g., IoT, big data, AI, RPA).

For example, EY assists clients with the following issues:

Businesses that do not understand why one product's sales are “hot” while another's are “not”.Businesses that want to use various data gathered with advanced technology to deepen their understanding of consumer motivation that cannot be ascertained by analyzing POS data.

Businesses that want to automate troublesome work such as master registrations when introducing a new product and calculating rebates which differ for each trading partner.

Businesses that want to increase the accuracy of their orders and inventory management using retail outlet demand forecasting to simultaneously achieve improvements in customer satisfaction and capital efficiency.

Automotive & Transportation

Banking & Capital Markets

Consumer Products & Retail

Government & Public Sector

Health

Insurance

Life Sciences

Media & Entertainment

Power & Utilities

Real Estate, Hospitality & Construction

Sogo-Shosha

Technology

Telecommunications

Wealth & Asset Management

Diversified Industrial Product

Automotive & Transportation / Banking & Capital M

arkets / Consum

er Products & Retail

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Government & Public Sector

The social environment in Japan has become increasingly complex in recent years, and now faces more diverse challenges. In order for Japan to drive innovation and help drive global society forward, it must develop well thought-out plans and strategy to solve problems as well as concrete means of executing these. EY Advisory & Consulting draws on its professionals with proven capability to assemble the best teams for its clients and provide consistent services from research and analysis as well as planning and strategy design towards solving policy challenges, to developing methods and means of achieving strategy and assistance with evaluation.

For example, EY assists clients with the following issues:

Entities that want to gather and organize concrete and comprehensive information needed for plan, examine and implement future policy.

Entities that want to clarify the issues facing the current administration and achieve sound administration by making concrete improvements.

Entities that want to implement, operate and maintain systems with an emphasis on strengthened security and slim administrative operations while giving consideration to improving the usefulness and accessibility of information.

Entities that would like assistance with planning and implementing solutions which put the value of IT systems to maximum use to develop government strategy and solve challenges the government is facing.

Health As the healthcare environment becomes increasingly challenging, in order to provide stably provide the healthcare services their region requires, developing a forward-looking business infrastructure will be a top priority ̶ healthcare institutions will need carry out and institutionalize early detection of key business challenges and prompt measures to improve them based on an accurate assessment of the external environment.EY Advisory & Consulting provides clients the right service at the right time from a diverse array of services to support healthcare institutions' sustainability by providing assistance with executing measures to solve problems based on its analysis of policy, the external environment and business challenges involved in healthcare.

For example, EY assists clients with the following issues:

Institutions that have not established a medium to long-term medical industry strategy based on a regional healthcare framework and do not have a clear image of what they should aim to achieve regionally.

Institutions that largely recognize the challenges they face in terms of hospital business administration, but remain unable to execute improvement measures as they do not know what actions to take in order to plan “ground-up” solutions and the measures to achieve them.

Institutions that want to make the capital investments needed to rebuild aging hospitals and improve their business infrastructure but are unable to develop a financing plan to achieve these as they lack adequate cash flows.

Insurance Compliance and internal audit programs and operations/risk/finance management effect not only business functionality, but also a business's profits.EY Advisory & Consulting professionals help clients visibly improve performance by first identifying business risk areas requiring improvement and then developing practical plans, process improvements and responding to issues.As advisory professionals and experts with insights into the industry, we provide diverse range of perspectives and experience in key domains.

For example, EY assists clients with the following issues:

Businesses that want to align finance, risk and actuary functions while ensure achieving efficient, consistent analysis and reporting in response to the growing wave of change in regulations and accounting treatment.

Businesses that want implement automation, rationalization and optimization to maintain and improve operational excellence as well as margins.

Businesses that want to improve operational performance by using the latest technologies in claims, assessment, policies and payments.

Gov

ernm

ent &

Pub

lic S

ecto

r / H

ealth

/ In

sura

nce

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Power & Utilities

Globally accelerating social problems involving the economic environment and resources make themes in conventional business domains (i.e., industries) such as the ever-expanding reform of electrical and gas utility systems, as well as new and renewable energy, smart cities, smart grids, hydro business and “venous” businesses appear to be attractive markets, but these fields have poor customer visibility and it can be very difficult to identify business opportunities.EY Advisory & Consulting collaborates with EY's global network to help clients seeking growth in the business domains of both “industries” and “themes”.

For example, EY assists clients with the following issues:

Businesses that are considering developing new businesses in emerging markets to spur growth but are having difficulty validating customer value, selecting partners and negotiating with government institutions due to a lack of information about the local market.

Businesses that are considering launching a new electrical power business following energy liberalization but have become bogged down in studies about the systems involved and cannot pivot to creating and implementing actual business plans.

Businesses that are considering launching an equitable energy business based on various forecasts, but cannot pivot to implementation due to running debate over themes that are difficult to put into action.

Media & Entertainment

The proliferation of smart media has resulted in diversified content distribution channels in the media and entertainment industry. Companies are now expected to reconstruct their business models to transcend traditional sub-sectors such as movies, publications, broadcast and games.EY Advisory & Consulting leverages its experience in the media and entertainment industry and EY's global network to help clients continue to grow their businesses.

For example, EY assists clients with the following issues:

Businesses that want to use emerging technologies including AI, IoT and blockchain to develop new revenue and business models and reform their business structures to enable further growth.

Businesses that want to mitigate risks involving their content such as unauthorized distribution and illegal transactions by strengthening internal controls including fraud detection and prevention, as well as efficiently optimizing operations.

Businesses that want drive “work transformation,” i.e., use technology to streamline the voluminous manual processing unique to the content industry as well as complex processes straddling multiple companies.

Life Sciences A variety of medical data (including from health insurance claims as well as vitals) has been accumulated so far ̶ now that an environment to utilize these data is taking shape, patients are expecting outcome-driven, individualized healthcare.This environment is driving many life sciences businesses, including new market entrants, to make efforts towards disrupting existing business models.EY Advisory & Consulting's global experts in the life sciences industry help clients develop strategy for this new business environment and navigate their way to success.

For example, EY assists clients with the following issues:

Businesses questioning the purpose of pharmaceuticals manufacturers as the industry shifts from a intra-hospital referral healthcare to inter-hospital regional healthcare.Businesses that want to initiate organizational reforms to break free from the existing “pharmaceuticals manufacturing business” by redefining the roles of MRs, MSLs and others.

Businesses that want to revise processes which share information across divisions and optimize their supply chain overall to accelerate decision-making as detailed demand forecasting and flexible supply structures are gaining importance along with the shift to individualized healthcare.

Businesses that want to develop digital solutions not only to streamline new drug development and create new evidence, but also gain an understanding of the unmet needs of their true customers ̶ patients ̶ and contribute to improving outcomes.

Life Sciences / Media & Entertainm

ent / Pow

er & Utilities

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Real Estate, Hospitality & Construction

The industries and markets in real estate, hospitality & construction are growing more diverse and complex as businesses aim to expand overseas, companies from other industries enter the market and new business structures are created.As competition intensifies due to deregulation, design and development that transcends conventional business frameworks, low cost competition utilizing digital technology, improved service quality and focusing internal resources on core operations will be critical for companies to establish a competitive advantage.EY Advisory & Consulting helps clients achieve their business strategy by taking a multi-pronged, comprehensive approach encompassing strategy, organizational structure and business technology.

For example, EY assists clients with the following issues:

Businesses that are pushing forward on planning new businesses with the aim of expanding overseas, but cannot get to the execution stage because they are unable to overcome various constraints. Businesses that want to quickly launch and grow a business.

Businesses that want to improve customer satisfaction by achieving greater use of digital marketing including cutting-edge technologies such as AI and IoT.

Businesses that cannot implement timely and accurate reporting because operations have become compartmentalized and information cannot be managed centrally.Businesses that want to achieve low-cost competition, improve service quality and strengthen corporate governance.

Technology The sophistication and commoditization of technologies including AI, IoT, Industry 4.0, blockchain and big data analytics as well as the declining population in Japan are giving new urgency to reforming existing businesses and also creating new businesses.In order to achieve this, Japanese companies will need to redefine and improve the competitive strengths unique to Japan as well as revise their current target markets and business/operational models, stimulate new demand by promptly entering new markets and examine the sustainability of their businesses all while implementing and institutionalizing reforms and innovation.

For example, EY assists clients with the following issues:

Businesses that want to drive and accelerate strategy and plan design from business prototyping through execution in order to achieve smooth and timely creation of new business models and ideas incorporating digital technologies not captured in the current conceptualization of business.

Businesses that want to improve the top line and revenues by comprehensively revising individual challenges and issues including product/service look and feel, sales networks, sales techniques, marketing activities and price strategy of their current businesses.

Businesses that want to accelerate reforms involving the effectiveness of conventional investments and domestic/overseas corporate M&A; costing structure; planning, design and development methods; materials procurement methods and supply companies; and ease-of-work/productivity all under the constraints of people, material and money.

Sogo-Shosha The metabolism of global business is revolving over a shorter and shorter span as the pace of technological development accelerates ̶ political and economic environments are becoming more segmented and diverse.This new era will press Japan's sogo-shosha, which use a business model unique to Japan, to find synergies between a global business network and broad business domains as well as harness the strength of exceptional multinational human resources to create new value for the future.EY Advisory & Consulting leverages its expertise and ideas to help sogo-shosha solve problems and drive innovation.

For example, EY assists clients with the following issues:

Businesses that want to develop business models and value chains that utilize the latest digital technologies including AI, IoT, robotics and big data.

Businesses that want to improve the corporate value of their acquisition and investments.

Businesses that want to evade risks including cyberattacks, data leaks, compliance violations and underperforming investments to the greatest extent posssible.

Businesses that are not achieving traction with exceptional multinational human resources and want to develop talent management mechanisms to improve labor productivity and apply the new ideas driven by global diversity to their business.

Real

Est

ate,

Hos

pita

lity

& Co

nstr

uctio

n /

Sogo

-Sho

sha

/ Tec

hnol

ogy

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Wealth & Asset Management

Diversified Industrial Products

Population aging (a particularly prominent issue in Japan), low interest rates, laws and regulations and new technologies are combining to create extremely difficult market conditions.The wealth & asset management industry is clearly facing greater challenges than ever before as retail and institutional investors alike more carefully scrutinize the value of wealth & asset management, the ratio of elderly people in the overall population increases and pension funding subsequently becomes increasingly inadequate, and pressure for high-yield products builds amidst prolonged low interest rates.

For example, EY assists clients with the following issues:

Businesses that want to flexibly and promptly address organizational and operational issues presented by the increasing legal and regulatory burden across global regional and local lines following banking and insurance regulations.

Businesses aiming for early-stage implementation of advanced technologies including “robo-advisor” business models found in fintech as well as RPA, blockchain and AI.

Businesses that want to create value that financial services can ordinarily offer to institutional and retail clients.Businesses that want to develop necessary business strategy and plans.

The rapid development of new technologies including big data, IoT and AI is creating new possibilities for greatly improving product profitability in the manufacturing industry. There are also opportunities to create new sources of revenue coming from the shift in focus from tangible to intangible products. Meanwhile, as new business models that transcend industry boundaries are on the rise, how well-developed a company's strategy is will weigh on their success or failure. We provide clients consistent support from planning to execution to drive manufacturing innovation from the perspective of how they can monetize their competitive strengths.

For example, EY assists clients with the following issues:

Businesses that have carried out a proof of concept project as a digital promotion measure, but its cost vs. effect does not go beyond simply “improving ground-level operations”. Businesses that want to develop concepts and action plans that maximize their strengths.

Businesses that want to fundamentally revise their IT cost structure and secure IT investments in growth fields.

Businesses that want to develop operations and IT strategies that effect real sales growth.

Businesses that want to promptly adopt human resources management that can prevent the dissipation of knowledge due to an aging workforce and drive enhancement of their global business locations.

Telecommuni-cations

The markets for fixed-line and mobile telecommunications are becoming saturated and pressed to reduce costs now more than ever, while at the same time they are expected to develop new service businesses.Cost reductions are expected to come from streamlining and automating work involving large amounts of transactions. New service businesses will require achieving cross-industry collaboration and expansion using new technologies in order to develop a diverse array of services to support the proliferating digital businesses.

For example, EY assists clients with the following issues:

Businesses seeking assistance with designing and executing business plans which put their telecommunications infrastructure to maximum use and create ideas for new businesses using cutting-edge technologies such as big data, AI and IoT.

Businesses seeking assistance with streamlining and automating troublesome routine work in their telecommunications business including invoicing and payments, system monitoring and administration and integrating data with acquired companies.

Businesses seeking assistance with examining methodology and developing asset management systems for new businesses using idle assets including telecommunications equipment and facilities and other land and facilities held by the company or its group.

Telecomm

unications / Wealth & A

sset Managem

ent / Diversified Industrial Product

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Contact for inquiries about our services:EY Advisory & Consulting Co., Ltd.29F Kasumigaseki Building, 3-2-5 Kasumigaseki, Chiyoda-ku, TokyoSwitchboard : 03 3503 1490

EY | Assurance | Tax | Transactions | Advisory

About EY

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

About EY Japan

EY Japan refers to the member firms of EY in Japan. EY Japan includes Ernst & Young ShinNihon LLC, Ernst & Young Tax Co., Ernst & Young Transaction Advisory Services Co., Ltd. and EY Advisory & Consulting Co., Ltd. Each of these firms is a separate legal entity. For more information, please visit ey.com/jp/en/.

About EY Advisory & Consulting Co., Ltd.

EY Advisory & Consulting is a member firm of EY Japan. Collaborating with EY professionals of diverse expertise from around the world, we provide comprehensive advisory services optimized to meet our clients’ business challenges using an innovative, global perspective and a commitment and capability to deliver, go to www.eyjapan.jp/advisory/.

© 2017 EY Advisory & Consulting Co., Ltd. All Rights Reserved. ED None

This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.