Professional Services on the Brink of Disruption

Catherine Lynch, Senior Director Industry Marketing, SAP 26 September 2017

Can you imagine the largest Professional Services firmhaving no employees?

A new growth model

Nonlinear growth

Linear growth

Headcount

Revenue

INDUSTRY DISRUPTION is changing the rules

DIGITAL DISRUPTION MODEL OF NEW ENTRANTS

Digital trends transforming the professional services industry

Emergence of global talent networks

Emergence of innovative and disruptive business models

Digitalization of knowledge and service delivery

20%

of consulting work is classic

strategy, down from

60%–70% 30 years ago1

78%

of professional services firms

think it’s important to measure

engagement delivery against

planned outcomes2

3%–5%

higher utilization rates through

better resource matching3

1. “Consulting on the Cusp of Disruption” Clayton M. Christensen, Harvard Business Review

October 2013.

2. SAP digital readiness assessment aggregate data collected from Pro Serve firms. 3. SAP Benchmarking.

Technology trends enabling digital transformation

Big Data & Analytics

Bringing transactions and analytics together on a single platform, firms can run in real time and optimize processes

Cloud computing

With cloud-based solutions such as business networks, firms can manage their total workforce including contingent workers

Algorithms and machine learning

Enables domain specialists to focus on value-added analysis and interpretation activities in accounting and legal sectors

Will a robot automate my job in 20 years?

94%Accountants and auditors

89%Security guards

75%Call centeremployees

71%Service technicians

66%Legal associates

48%Computer programmers

Source: “Future of Employment” study – Oxford Martin School

Reimagine Business Models

8© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Outcome-based engagements as opposed to monetizing the effort involved

Knowledge as a servicedelivery models requiring firms to provide

affordable lifecycle services

Talent networkstapping into infinite capacity to source work

though open networks

Business

models

Shift in How Work Gets Done

9© 2017 SAP SE or an SAP affiliate company. All rights reserved.

INSOURCED OUTSOURCED NETWORKS

“By end of 2017 – 45% of total global workforce will be contingent” * Ardent Partners

WHY

Talent Networks - Reimagine The Structure of Your Firm

10© 2017 SAP SE or an SAP affiliate company. All rights reserved.

Partners

Directors

Senior Manager

Managers

Associates

Partners

Directors

Senior Manager

Managers

Associates

Partners

Directors

Senior Manager

Managers

Associates

Contingent Contingent

Partners

Directors

Senior Manager

Managers

Associates

Contingent Contingent

Traditional firm

hierarchical

structure

Reduction in

junior roles

replaced by AI

Contingent workforce

used to fill gaps / flex

workforce where required

Use of contingent workers

is increasing at all levels

driven by the “freelance”

economy

Digitalizationis the key to unlocking nonlinear growth.

For more information: « Driving non-linear growth

through digitalization »: http://bit.ly/2fks13v

« Four Ways Digital Leaders set themselves apart:

Oxford Economics & SAP Survey: http://bit.ly/2vbKpBm