KPMG Advisory recently introduced various cloud services (Sofy Suite) into the market which are based on the Software as a Service (SaaS) model. IT solutions developed and maintained by KPMG, in collaboration with alliance partners, are offered to clients as subscription-based cloud services. As a professional services firm, KPMG’s entry into the marketplace for off-the-shelf software products by delivering them in a SaaS model is a new concept for us. What’s the rationale behind the introduction of this new business model?
Business model innovation
As we’re living in the ‘Age of Disruption’, any business should be carefully examining its business model and exploring how information technology can help fundamentally improve the way it delivers value to its clients.
The cloud generally, but more specifically Software as a Service, has very quickly become the de facto standard technology delivery model and is forecast to continue its rapid growth. By 2021, according to Gartner, the market size will have almost doubled compared to that of 2017, to a total value of $113 billion.
By delivering our services through a SaaS model, KPMG will not only be able to innovate the way clients consume our services but also invent new ways to assist our clients in addressing numerous business issues.
Scalable distribution of knowledge and better practices
One of the foundations of the professional service industry has always been in specialisation and expertise. This expertise is traditionally embedded in the methodologies of the firms and, perhaps more importantly, in the minds of the experts they employ. By incorporating the improved practices and methodologies of the subject matter experts into global SaaS solutions we are able to distribute the knowledge much more quickly and more widely due to the inherent scalability of the technology. A wider distribution helps create a flywheel effect where the more specialist inquiries and interactions of clients and experts helps drives further improvement as a result of their feedback. This, in turn, allows for an even greater distribution.
Faster implementation of solutions
An increasing number of clients are looking for advice that can be implemented to create value for their organisations quickly. Embedding certain aspects of advice and methods into standardised technology solutions enables clients to adopt and benefit from the proposed solution rapidly.
By having technology solutions available that can solve business problems more quickly, we are able to assist clients much faster.
Making expert knowledge available to clients
The expertise that is embedded into the technology solution becomes much more accessible to clients compared to using a consultant or a prescribed method. Once a client has been provided with the user-friendly technology tools, they can easily incorporate this expert knowledge into their business processes. The benefit of having knowledge that is easily accessible means the client can continue to further improve its organisation without the need for a consultant. Using these technology solutions means we can make more of an impact.
Our continual focus on improving the way we help our clients has led us to introduce SaaS solutions to the market. The response from our clients has been highly positive and, as a result, our SaaS business is growing rapidly. However, we’re aware that SaaS is no panacea: it may be less suitable to address a highly specific problem or a completely new problem never previously tackled. That said, the SaaS model is here to stay and we expect it to continue to grow. In addition to our existing Advisory solutions, KPMG is currently developing solutions for other service lines, including Tax and Data Management, and we also plan to investigate developing SaaS options for Audit.
KPMG Sofy Suite is an example of a SaaS solution which is built on advanced data solutions to help companies make better business choices, increase their efficiency, and also mitigate risk in their decision-making. One of Sofy’s main solutions is Sofy GRC. Read our blog about the reason of KPMG having GRC SaaS solutions.