INFORMATION SYSTEM STUDY REPORT PRESENTATIONPresentators: SamiaSabir Anum Jamil

Safeer Rasheed Murtaza Ali

OFFICES OF E&Y AROUND THE WORLD

LOCATION ACROSS PAKISTAN • ISLAMABAD• Ernst & Young• 3rd Floor, Eagle Plaza• 75 west, Fazal ul Haq Road• Blue Area• 44000 Islamabad• phone: +92 51 2344160/+92 51• 2344161• fax: +92 51 2344163• eyfrsh.isb@pk.ey.com•  •  • LAHORE• Ernst & Young• Mall View Building• 4 Bank Square• 54000 Lahore• phone: +92 42 37211531• fax: +92 42 37211539• eyfrsh.lhr@pk.ey.com•  • KARACHI• Ernst & Young• 601, Progressive Plaza• Beaumont Road• 75530 Karachi• phone: +92 21 35650007• fax: +92 21 35681965• eyfrsh.khi@pk.ey.com

ORGANIZATIONAL OVERVIEWE&Y global limited (known as EY) is a multinational professional services firm headquartered in London. It is one of the big four audit firms and is the third largest professional services firm in the world by aggregated revenue in 2014 after Deloitte and PricewaterhouseCoopers (PwC). EY is a global leader in providing four services.• Assurance• Advisory• Tax• TAS (Transaction advisory services)Some other special services by EYThe China Overseas Investment Network: The China Overseas Investment Network (COIN) is part of EY’s commitment to provide seamless and high-quality client service, worldwide, to Chinese companies going overseas and doing business overseas. Our globally integrated structure enables us to deploy dedicated teams with strong local experience, and profound industry knowledge to provide seamless services to our clients. Family Business Services:Each family business is unique; yet each successful family business has much in common. Taking advantage of that knowledge and understanding the success factors underpins what we call the “growth DNA of family business”. Japanese Business Services:Our Japanese Business Services is a global network of bilingual professionals dedicated to providing personalized service for our Japanese clients around the world. The team is made up of experienced men and women with in-depth knowledge of both the Americas and Japanese corporate environments, gained through hands-on experience of serving major clients

EARLY HISTORY OF E&Y• Ernst&young global limited (known as EY) is a

multinational professional services firm headquartered in London,UK.

• It is one of the” big FOUR “ audit firms and is the third largest professional services firm in the world .

• EY is the result of a series of mergers of ancestor organizations. The oldest originating partnership was founded in 1849 in England as Harding & Pullein. In that year the firm was joined by Frederick Whinney. He was made a partner in 1859 and with his sons in the business it was renamed Whinney Smith & Whinney in 1894.

• In 1903, the firm of Ernst & Ernst was established in Cleveland by Alwin C. Ernst and his brother Theodore and in 1906, Arthur Young & Co. was set up by the Scotsman Arthur Young in Chicago.

• The firm dates back to 1849 with the founding of Harding & Pullein in England. The current firm was formed by a merger of Ernst & Whinney and Arthur Young & Co. in 1989. It was known as Ernst & Young until 2013, when it underwent a rebranding to EY. The acronym "EY" was already an informal name for the firm prior to its official adoption.

• As of 2014, EY was the ninth largest privately owned organization in the United States.

GLOBAL STRUCTURE OF E&YThe organization operates as a network of member firms which are separate legal entities in individual countries. It has 190,000 employees in over 700 offices around 150 countries in the world. Their business units which are not purposely single country are grouped into four geographic areas.• America• Asia• EMEIA (Europe, Middle East, India and Africa) • Japan

MARKET ANALYSISDeloitte, KMPG ,PwC are the three competitors of EY.

COMPETITIVE ADVANTAGES OVER COMPETITORS

• Best for employee happiness and crazy fun.• Best for Pay• Best for overall growth• Best for hiring Graduates.• Best for promoting women

WOMAN CHART

GLOBAL REVENUE

ROUTE TO THE TOP

ACHIEVEMENTS• Entrepreneur of the year 2015• Employer of the Year 2010• Most Admired Knowledge Enterprise 2009• Accountancy Firm of the Year Award 2009 • Canada's Top 100 Employers (2009)• Great Place to Work Institute (2009)• Best Workplaces in Canada• China's Top Employers Award 2009• Top 10 Employers in China 2009• Teleos (Global, 2010)• Global Most Admired Knowledge Enterprise (MAKE) Award• Advisor of the Year for FORTUNE Magazine (USA, 2009)

• The Best Islamic Consultancy 2008

VISION2020

ORGANIZATIONAL HIERARCHYCountry

Managing Partner

Non Client Service

IT, Human Resource, Risk Management, Finance and Administration.

Executive Director

Associate Director

Assistant Director

Supervising Director

Senior Associates

Associates

Client Service

Service Line Leader

Partners

Senior Managers

Managers

Staff Assistants

Oak chart

MAIN BUSINESS FUNCTION OF E&Y• E& y is committed to delivering exceptional

client service across our four service lines –• 1 .Assurance• 2. Taxation• 3. Advisory • 4. Transaction Advisory Services (TAS)

• 1- ASSURANCE E&y provide the following assurance services:• Climate Change and Sustainability Services• Financial Accounting Advisory Services (FAAS)• Financial Statement Audit:• Fraud Investigation & Dispute Services• Accounting Compliance and Reporting

2-TAXATION SERVICE:

• Global compliance and reporting• Transfer pricing• Human capital• Tax policy and controversy • Indirect tax

3. ADVISORY SERVICE• IT Risk and Assurance• Performance Improvement• Advisory for financial service

4. TRANSACTION ADVISORY SERVICES

• Lead Advisory• Restructuring• Operational Transaction Services • Transaction Support • Transaction Tax

RESOURCES OF E&Y• Hardware Resources

• Software Resources

• Database Resources

• Network Resources

HARDWARE RESOURCESThe IT of EY consists only of four brands • DELL• LENOVO• IBM• MICROSOFT

• All the employees in EY have been given a

personal computer for the daily work purposes

and also because in case of emergency they can

resume the work

• Dell Latitude series servers are used which

operates 24/7 for networking purpose, in case

of failure another backup server resumes from

the current state.

• Other equipment includes CISC0 routers and switches for coverage of network and internet all over the offices.

• Hardware components are replaced with new technologies after every three years or in case of emergencies those particular faulty hardware are replaced with current technology

SOFTWARE RESOURCESSoftware are the set of instructions and procedures for processing data. Software resources includes all programs, utilities, updates that is installed in hard drives.• Microsoft Windows 7 is used as operating systems in all laptops

and local computers.

• However, in workstations and network servers specialized operating system which is a modification of Microsoft Windows 7 is used which is known as “ ONE DESK ”.

Symantec security software IT is used for security and encryption on all

devices due to which even in case of theft no one

access that computer Symantec is also used for

USB encryption in this way no USB devices can be

accessed without providing the required

password.

• GAMAX (Global Audit Methodology Software) is used

for audit purposes its latest version is based on Microsoft Sharepoint.

CASEWARE is also used, this software supports in preparing and

documenting computer-assisted workpapers. CaseWare can import

accounts, make adjustment entries and reclassify items

• Microsoft Lync is used for sharing and communicating between within and offices which are present around the world.

• ERP system of EY is soon going to replace by SAP (System application and products in data processing). SAP is the world’s leading provider of business software. It provides superior service and support. It is designed to fulfill the requirements of the firm at low cost.

DATA RESOURCES• There are 3 hubs of EY which are interconnected and

present in Singapore, UK and USA.• The main home for knowledge at EY is called

knowledge web (KWEB)• In all the Hubs a database called Knowledge Web is

present which contains numerous information on subjects related to EY’s operation of main business functions and applications.

• Datacenters of EY are located in Stuttgart, Germany, Singapore and USA which stores data from all the offices which are present around the world.

• Data is also stored in software database on

daily bases and then transferred to global file

servers which are operated from datacenters.

• Data is also stored on offsite storage servers

so even in case of nuclear war EY will be able

to operate.

NETWORK RESOURCES• The main Country server of EY in Pakistan is located

in Karachi which operates 24/7.EY is connected to 140 countries through IVPN (Internet Virtual Private Network). With a VPN, each network can connect to the main office’s network and then to the other branch offices.

• EY also uses cloud computing, the practice of using a network of remote servers hosted on the Internet to store, manage, and process data, rather than a local server or a personal computer. EY uses cloud computing only for E-mail storage. They don’t use it for data storage for security purpose.

• As the technology is being continuously enhanced EY will replace their current network technology of using IVPN. By 2016 VPN will be replaced by “One Net” in which one network provider will give connection to all offices. This way all the offices around the world will be connected through a single connection reducing the risk of third party being connected to the same network, thus minimizing the risk of data getting stolen through cybercrimes.

• EY uses category 6E wires and also fiber optic cables for networking.

• EY uses standard wireless with two factor authentication mechanism

NETWORK TOPOLOGY USED IN E&Y

EY uses STAR Topology. It’s a type of topology in which all the computers are connected to a single hub through a cable. This hub is central node and all the other nodes are connected to the central nodes. Every node has its own dedicated connection to the hub; it acts as a repeater for data flow. EY use this with optical fiber and 6E category wires.

• Advantage of using STAR Topology• Hub can be Fast performance with few nodes

and low network traffic• upgraded easily• Easy to troubleshoot, • Easy to set up and modify• If one node is affected the rest node can work

smoothly

ANALYSES OF IT DEPARTMENT • Information technology (IT) has become a vital and integral

part of every business plan. From multi-national corporations who maintain mainframe systems and databases to small businesses that own a single computer, IT plays its role.EY is an Auditing firm and the role of IT depart in EY is very crucial.Being an Audit firm they have to manage millions of data files and records with out any bungling for that purpose they have to trust on the technology .EY has a big IT depart that is responsible for all the IT assistance for the business, In EY, IT is the backbone of operations and everything is connected due to successful operation of IT.

ROLES AND ACTIVITIES OF E&Y

• MAINTAINANCE OF INFRA STRUCTURE• DIGITAL SURVEILLANCE• NETWORK• DAY TO DAY OPERATIONS• EVALUATION OF STATISTICS AND

INFORMATION• THE FINAL DECISION

ANALYSES OF OTHER BUSINESS FUNCTION

• ADMINISTRATIVE SUPPORT• BUSINESS DEVELOPMENT• FINANCE• ACCOUNTS• HUMAN RESOURCES• KNOWLEDGE MANAGEMENT• MARKETING• PROCUREMENT• QUALITY AND RISK MANAGEMENT• E-CHANNEL• CUSTOMER RELATIONSHIP MANAGEMENT

IT IN OTHER FUNCTIONAL AREAS• ACCOUNTS: EY uses GFIS(Global finance Information system) software,a specialized accounting software for tracking financial information,ledger and reporting of accounting information and maintaining accurate financial records across all the offices globally.• HUMAN RESOURCES: In HR People Sofftware is used which will be replaced by SAP by 2020 for storing all data of clients and employees Microsoft sharepoint is used for Contract Management and other time management softwares for scheduling meetings·For recruitment, HR uses TALEO recruitment management system which automatically shortlists CV’s and select potential candidate and provides training onlineCustomer can complain online by fulfilling online complaint form • STAFF:Worldwide HR personnel consist of 150 individuals including 10, which are working in Pakistan.Out of which 3 HR employees are working in Karachi, 2 in Islamabad and so on divided in whole country.

HIERARCHY OF ITGlobal Chief Information Officer

IT Risk Managemen

t and Production

Strategy and

Architecture

Assure Technology

Officer

Market IT Service

Delivery

Technology Officer for Advisory

TAS Managing

Core Service Business

Delivery IT

Cross Organizatio

n Service Delivery

Chief Officer for

Global Infastructur

e

EY AT A GLANCE

WEAKNESESS• Business continuity plan: Business continuity plan should be improve which

means that the business should be continued in any circumstances like network failures, down server problems etc.

• Strong competition :It causes slow growth in overall industry. Because all the market trends are already established and the companies are in stability stage, pursuing their fixed objectives to maintain their current position in the market.

• Companies research centers effecting business: Some companies are setting over their own research centers in which they are doing research on such objectives which helps business in growth and it is also dangerous for the companies which are associated with advisory.

• Fortune 500: Higher dependence on Fortune 500 and other quasi government clients affecting audit fee income. The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks 500 large U.S. corporations as ranked by their gross revenue.

SUGGESTIONS• Business continuity plan should improve specially in our country. Law and

order situation is very bad so, some time they have to stop business operation due to uncertain environment. They should start work to solve this issue.

• There is a big competition in the market and every organization are providing their services to their customers effectively. To increase the business they need to set new trends and increase the growth of competition.

• Companies are setting their own research centers which is very dangerous for the advisory and audit firms because the companies starting to do this work own their own. So it is recommended to EY that they need to invest more in technology and work on innovation and use their experience to work in this market which will create a big impact in this market and companies will then again rely on EY for auditory and advisory purposes.

• EY should reduce their dependency on fortune 500 toe fficiently increase their audit fee income.

CONCLUSION

This report focuses thoroughly on analysis of IT used in EY. It

highlights all the main business components and details about all

the resources being used by EY around the world and how the IT of

EY helps the firm maintain its top position in the best of auditors by

helping and supporting each department in a unique way and by

also minimizing the risks for the organization by properly organizing

all the security measures. Therefor the top companies like EY utilize

the impact of IT and becomes the best.

THE END