More than 66% report major changes in the complexities of doing business
According to a new global KPMG study, Irish respondents rated the changes as “very significant” or “somewhat significant”.
Confronting Complexity covers the past two years and includes 1,400 senior executives of companies in 22 countries. It was carried out in the last quarter of 2010.
It found outdated IT systems were a significant barrier to managing complexity, while the introduction of new technologies challenged conventional thinking, provided new forms of production and communication and forced companies to seek people with new skills.
Other findings showed:
nMergers and acquisitions lead to issues over information flows and management
nNew regulations were a constant source of change but were not necessarily a negative as they can help refocus a business on its overall purpose.
The study found Irish respondents were more likely to cite the recession as a key challenge in today’s environment as well as credit availability, controlling costs and exploiting opportunities.
The vast majority of Irish companies (98%) identified managing complexity as a key component to business success. Going forward, they cited improving information management (89%) and re-organising all or part of the business (82%) as other vital factors to success.
Other actions include outsourcing functions (59%) and conducting mergers and acquisitions (57%). Only 43% identified trying to influence regulation or public policy as important in the overall business mix.
KPMG managing partner, Terence O’Rourke, said the study “gives an insight into the level of agility required to compete in an increasingly globalised market and it reaffirms that opportunities exist for those who can think differently and turn potential hurdles to their competitive advantage”.
Rory Moloney, group managing director of Aon’s risk consulting operations in Europe, Middle East and Africa also identified risk management as a “strategic issue in boardrooms throughout the world”.
He made his comments when he announced the group’s decision to open a branch of its Global Risk Consulting business in the Irish market to offer clients a wider range of services.
“To date, we have responded to the demand from Irish-based companies by leveraging the expertise throughout our global network, but we have now made the decision to create additional value for clients by investing in a dedicated Irish business,” he said.
