Search Results for: Deloitte

Deloitte Survey: Cognitive Adoption Resulting in Economic Benefits

The report, “Bullish on the Business Value of Cognitive: 2017 Deloitte State of Cognitive Survey,” released by Deloitte shows that early adopters of artificial intelligence and cognitive technologies are reporting strong opportunities for economic gains and job creation.

“There is a concern that ‘the rise of the machines’ will replace human workers, but we should look at how people and machines can work in collaboration as co-bots,” says Deloitte CEO Cathy Engelbert. “The ability to leverage new technologies to retool our workforce will ultimately lead to new opportunities to build high value skills for our workers.”

Contrary to public sentiment, 69% of respondents expect minimal to no job loss within the next three years.

“Organizations today that want to create a cognitive advantage should reimagine when, why and how humans and machines work together to achieve better outcomes,” says Ryan Renner, principal, Deloitte Consulting, and Deloitte’s cognitive advantage leader. “Cognitive technologies are disrupting how organizations conduct tasks, make decisions and complete interactions internally; and with their customers. The true value is created by knowing how to apply the technologies most effectively within the context of your business, marketplace, corporate culture and industry.”

Eighty-three percent of respondents report moderate to substantial economic benefits from AI and cognitive technologies. According to the report, organizations that claimed the greatest economic benefits feel that cognitive should be used for transformational change versus incremental improvements.

More than 1 in 3 (37%) companies have invested $5 million or more in AI and cognitive technologies.

  • 73% are exploring mature cognitive technologies such as robotic process automation
  • 70% explore statistical machine learning
  • 49% employ deep learning neural networks

“Cognitive technologies are still maturing, but our study shows that early adopters are experiencing benefits, especially those that have jumped in with both feet,” says Jeff Loucks, executive director Deloitte services, Deloitte center for technology, media and telecommunications. “The more experienced companies are, the more likely they are to see gains. That should provide an incentive for others to get started.”

View the full survey report here.

Think You Know Millennials? Think Again, Deloitte Study Says

The Deloitte Greenhouse™ Business Chemistry® group released “The Millennial mindset: Work styles and aspirations of Millennials,” a study analyzing the Business Chemistry types of millennials, baby boomers and Gen Xers.

The surprising results show that close to 60% of millennials identify with two of four primary Business Chemistry types.

  • Guardians (detail-oriented pragmatists) comprise 32%
  • Drivers (focused on outcomes and goals) make up 27%
  • Integrators (values connection and draws teams together) only 23%
  • Pioneers (blue-sky thinking, spontaneous) are 18%

In contrast, the study reveals that baby boomers are represented by millennials’ opposing Business Chemistry types – Pioneer and Integrator, the two most nonlinear, ambiguity tolerant and networked work styles.

“Intriguingly, millennials, the cohort often referred to as ‘generation me,’ are most likely to identify with the pragmatic, detail-oriented Guardian; and least likely to identify with the outgoing, spontaneous and imaginative Pioneer,” says Selena Rezvani, who led the study for the Deloitte Greenhouse Experience group. “It seems some of the most common stereotypes associated with millennials – being wide-eyed idealists and networked social creatures – are at odds with the Business Chemistry types that characterize the majority of this group. Improving generational intelligence by understanding the work preferences of millennials – the largest share of the labor force today – may be the key to unlocking their commitment and engagement.”

Millennials’ scores on 68 traits that make up Business Chemistry were compared to those of the older generations. Statistically-significant differences were found in several traits, one of which is tolerance for ambiguity. Millennials are significantly less likely than their older counterparts to be comfortable not knowing all the answers.

Millennials are more likely to:

  • Take time with decisions
  • Enjoy planning details
  • Be less trusting of others
  • Prefer to have all relevant information when beginning a project
  • Be less comfortable tolerating conflict
  • Prefer to work with colleagues who have strengths similar to their own

Generation stressed

The study revealed that millennials experience the highest levels of stress overall compared with other generations, though not by a large margin. Millennial Integrators and Guardians – the types most likely to tolerate risk rather than embrace it – report the highest stress, with approximately 40% saying they’re stressed much of the time.

“Collectively, these findings point to a millennial that is more deeply layered than stereotypes may lead one to believe. For example, a millennial active on social media may appear to be stereotypically extroverted, but offline they may actually prefer solitude to socializing. Further, our analysis shows that millennials are often more likely to read more deeply into issues and situations, versus simply taking them at face value,” says Kelly Monahan, Deloitte’s Center for Integrated Research. “Perhaps millennials, as the digital natives that they are, understand that there are limits to what you can glean in tone or intent merely from the surface.”

To read more about the study including additional findings, recommendations for maximizing millennial talent and methodology, please see the full report.

Deloitte Targeted by Cyberattack

New York-based Deloitte (FY16 net revenue of $17.5 billion) has been targeted by a sophisticated hack that compromised the confidential emails and plans of some of its blue-chip clients, according to the Guardian.

Deloitte discovered the hack in March this year, but it is believed the attackers may have had access to its systems since October or November 2016.

According to the Guardian, the hackers had potential access to:

  • Usernames and passwords
  • IP addresses
  • Architectural diagrams for businesses
  • Health information
  • Email attachments with sensitive security and design details

The breach, which is believed to have been U.S.-focused, was considered so sensitive that only a few of Deloitte’s most senior partners and lawyers were informed.

Deloitte’s internal review into the incident is ongoing. The team investigating the hack is working out of the firm’s offices in Rosslyn, Va., where analysts have been reviewing potentially compromised documents for six months.

So far, six of Deloitte’s clients have been told their information was affected by the hack.

A Deloitte spokesman has stated:

In response to a cyber incident, Deloitte implemented its comprehensive security protocol and began an intensive and thorough review including mobilizing a team of cybersecurity and confidentiality experts inside and outside of Deloitte.

 As part of the review, Deloitte has been in contact with the very few clients impacted and notified governmental authorities and regulators. The review has enabled us to understand what information was at risk and what the hacker actually did, and demonstrated that no disruption has occurred to client businesses, to Deloitte’s ability to continue to serve clients, or to consumers.

 We remain deeply committed to ensuring that our cybersecurity defenses are best in class, to investing heavily in protecting confidential information and to continually reviewing and enhancing cybersecurity. We will continue to evaluate this matter and take additional steps as required. 

Deloitte Launches Dynamic Modeling and Visualization Tool for Tax Reform Advisory Services

New York-based Deloitte (FY16 net revenue of $17.5 billion) launches a new service that leverages Tax Reform Navigator, a web-based solution that uses actual and projected financial data to provide a holistic view of how potential tax reform proposals are likely to impact a company.

Terri LaRae, partner and national leader of tax reform advisory services, says “Companies that prepare now may be better positioned to act advantageously if and when tax reform is enacted. We created Tax Reform Navigator to enhance Deloitte’s tax reform advisory services and give companies the confidence to make informed decisions during uncertain times.”

The tool can account for a number of variables and be customized to explore a range of scenarios when creating an integrated plan with domestic and international tax considerations. Along with the tax advisory services, some of the scenarios upon which the tool provides insight include:

  • Impact on existing attributes
  • Acquisitive organizations
  • Supply chains
  • Debt-intensive industries
  • Multinational organizations

The Tax Reform Navigator compares company data side by side and measures the potential impact of proposals in the House GOP blueprint, President Trump’s tax plan and the Tax Reform Act of 2014 (introduced but not voted on). Deloitte works with clients to design and generate reports that communicate tax reform planning progress to C-level executives, boards and other stakeholders to help inform business decisions and other efforts.

“Effective tax reform planning requires companies to explore different approaches and evaluate likely outcomes relative to their specific businesses,” LaRae adds. “The feedback we have received from clients has been positive. We plan to expand the tool’s features in the next month to include additional tax forecasting capabilities and visualize state-level tax implications.”

Deloitte Study: Only 13% of U.S. Workforce Is Passionate About Their Jobs

Despite 2017 corporate spending estimated at over $100 billion for training and over $1 billion for employee engagement, 68% of the U.S. workforce is not engaged at work, a new Deloitte’s Center for the Edge study says.

Further, the study found that only 35% of the workforce had the disposition to seek out challenges in their organization; even among engaged employees, more than 60% didn’t seek challenges. This lack of passion for work exists at all levels surveyed and job types in the workforce with 64% of all workers and 50% of executives and senior management surveyed being neither passionate nor engaged in their work.

These findings indicate that employers might be focused too narrowly on employee engagement, rather than developing a workforce with the necessary passion to solve complex challenges and pursue new opportunities during this period of rapid technological change. In addition, the findings indicate a shift to new types of learning and collaboration environments could in fact address key barriers to a more engaged and passionate workforce.

“We are in the early stages of a shift in the global economy that will require us to transition from an angst economy, driven by fear and erosion of trust, to a creative economy focused on markets with expanding opportunity,” says John Hagel, managing director, Deloitte Services LP and co-chairman, Center for the Edge. “Worker engagement may no longer be sufficient for performance improvement. In an environment of mounting performance pressure and increasing unpredictability, companies need a workforce that embraces challenge. Worker passion is becoming a key attribute for employees with the skill set that will contribute to sustained performance improvement for companies in increasingly competitive markets.”

According to the study, passionate workers generally exhibit three attributes: long-term commitment to making a significant impact in a domain; questing disposition that actively seeks out new challenges in order to improve faster; and connecting disposition that seeks to build trust-based relationships with others who can help them get to a better answer.

Respondents fell into three clusters:

  • Passionate Employee – 13% of respondents have all three attributes of worker passion.
  • Contented Employee – 23% of respondents score high on an index of engagement indicators, but do not have all three attributes of worker passion.
  • Half-hearted Employee – 64% of respondents do not have all three attributes of worker passion and do not score high on engagement.

The study found that only 38% of engaged employees had the questing disposition, and nearly half of engaged workers also lacked a desire to make a significant impact in their industry, function or specialty. Engagement seemed to have the most significant effect on workers’ tendency to reach out to others to solve challenges and improve their own performance.

Of those employees who are “passionate,” the study revealed the following:

  • 71% report working extra hours.
  • 89% report feeling focused, immersed and energized in their work.
  • 68% are optimistic about the future of their company.
  • 71% feel they are encouraged to work across the company.
  • 67% the company collaborates well with customers.

Furthermore, while position had some effect, with those in senior positions being more likely to be passionate, age wasn’t a significant factor: Millennials don’t have an edge when it comes to passion.

The study showed that respondents who were not passionate reported a lack of autonomy, inability to work across teams and a lack of involvement in decision-making.

Worker passion clearly needs to be “activated” in the workplace. To begin with, business leaders should evaluate whether they are acting with passion in taking on difficult challenges and pushing boundaries in potentially exciting directions. Tapping into this kind of passion can shift individuals from the fear of change or failure – to excitement about the opportunity to test boundaries. Additionally, some workers would benefit from guidance and role models who can serve as practical examples of how to quest, connect and create impact within the context of a specific organization.

The study suggests that trends such as automation, could open up new opportunities to drive worker passion. As more and more mundane, repeatable tasks are automated, the study identified opportunities for existing employees to focus on high growth areas that tap into capabilities that are uniquely human: curiosity, imagination, creativity, and emotional and social intelligence. Ultimately this has the potential to move the U.S. workforce toward higher levels of engagement and worker passion.

Deloitte Helps Prepare Gen Z for Audit of the Future

Big 4 firm Deloitte and the Deloitte Foundation hosted the 2017 National Audit Innovation Campus Challenge at Deloitte University, awarding students of Morehouse College first place for their idea to develop an application to automate the audit risk assessment process.

The winning idea involved developing an application to improve the effectiveness of the risk assessment process by using artificial intelligence to identify non-financial data from external sources such as social media, journals, periodicals and newsfeeds, among others. This data, used in combination with public and non-public financial data, would contribute to the auditors’ ability to identify risks of misstatement in a company’s financial statements. The software continuously curates data and learns through direct feedback from auditors.

Under the guidance of the faculty advisors and subject matter leaders, student participants were presented with a glimpse of how innovative technologies can be applied to the audit profession in new ways. The experience highlights how an evolving audit profession requires a workforce that can tackle business challenges more effectively in a world of continuously evolving technologies, while also providing auditors with increased opportunities to deliver value for the capital markets.

Student teams from 33 top colleges and universities participated in the event, with six teams advancing to the final round. Students from Pace University earned second place. The University of Pittsburgh, University of Southern California, College of William and Mary, and University of Wisconsin-Madison were awarded honorable mentions.

Multiple emerging technologies are transforming the audit and creating exciting new opportunities, Deloitte says. Workflow automation, artificial intelligence and analytics have enhanced a number of the labor-intensive, manual processes traditionally associated with an audit, freeing up auditors to offer better judgments and deeper insights.

“As technology disrupts business at an unprecedented rate, the next-generation of talent will need to possess proficiency with emerging technologies and data analytics to help develop more innovative solutions to business challenges,” says Mike Fucci, chairman of Deloitte and the Deloitte Foundation.

Kimble Named Chairman and CEO of Deloitte Tax

Steve Kimble

Steve Kimble

Big 4 firm Deloitte has announced that Steve Kimble has been named to lead the firm’s tax business. Kimble succeeds Carl Allegretti, who led the tax business for five years and will continue in leadership roles for both U.S. and global marketplace efforts.

“Steve brings a wealth of experience to this role, including anticipating market changes, guiding companies on complex tax issues, and attracting, developing and retaining a team of high-performing professionals,” says CEO Cathy Engelbert. “I am confident that his strategic vision and commitment to our clients and people position him well to lead our U.S. tax practice.”

Kimble most recently led a team of 4,300 professionals in the specialized tax services practice, comprised of global employer services, international tax and transfer pricing, mergers and acquisitions, multistate tax services and Washington tax policy. In addition to his management responsibilities, he served a number of large multinational clients across industries such as financial services, energy, manufacturing, health care and retail, while also serving on Deloitte’s board of directors.

“We continue to operate in a rapidly changing and increasingly digital global business environment, which creates both challenges and opportunities,” says Kimble. “As we navigate the rapid pace of change, I look forward to working closely with the companies we serve to provide high-quality tax services and business insights. I’m also committed to developing agile talent and building the next generation of tax leaders to differentiate Deloitte in the marketplace.”

Based in New York, Kimble is passionate about the role of mentorship in guiding career development and takes great pride in serving as a mentor to professionals both within and outside of Deloitte.

Deloitte: Pace of Innovation Gives Birth to the Kinetic Enterprise

Deloitte, in its eighth annual technology report, Tech Trends 2017: The Kinetic Enterprise, says companies must sift through the hyperbole surrounding emerging technologies to find solutions offering real potential.

To do so, they should become “kinetic” organizations – “companies with the dexterity and vision required to thrive amid ongoing technology-fueled disruption.”

Tech Trends 2017 examines seven key trends that will likely revolutionize enterprise technology in the next 18 to 24 months. Among the trends discussed are machine intelligence, dark analytics and mixed reality, which is a blend of augmented reality, Internet of Things and virtual reality. The report also covers innovations in analytics, digital and cloud that are transforming the way organizations engage with customers and citizens; and reimagine products, services and business models.

“Kinetic enterprises are fluid and their leaders understand that to remain relevant, they will need to develop a deliberate innovation response to these disruptive forces,” says Bill Briggs, chief technology officer and managing director, Deloitte Consulting LLP. “It’s not about chasing every shiny new object; it’s about translating the raw potential of emerging technology into a focused set of priorities with measurable, tangible business impact.”

According to the report, some of the key trends that will transform the business landscape in 2017 and beyond include:

  • Dark Analytics: Advances in computer vision and pattern recognition allow companies to plumb the recesses of unstructured data, which may include images, audio, video and information residing in the “deep web.” These tools can unlock powerful strategic and operational insights for businesses in the next level of technology-driven enlightenment.
  • Everything-as-a-Service: Services-based ecosystems are becoming increasingly common in business. This model requires open and agile systems, which could provide a business rationale for modernizing legacy core systems. From next-generation ERP to “replatforming” custom back-office applications, everything-as-a-service (XaaS) can help information technology achieve greater efficiencies and lay a foundation for business innovation and growth.
  • Machine Intelligence: Artificial intelligence and machine learning are doing more than providing insights and recommendations. Increasingly they are augmenting and automating more complex, mission-critical tasks. This continuum covers cognitive and predictive analytics, bots and robotics process automation – related but distinct disciplines delivering on the broader promise of machine intelligence.

“This goes beyond the CIOs and IT department. There are factors changing every element of business,” says Briggs. “Machine intelligence, blockchain and other technologies will have huge implications for talent, operations, and for the enterprise as a whole. Developing a strategy for prioritizing investments and harnessing these emerging technologies has become a boardroom directive.”

Krieger Named MP for New Jersey for Deloitte

Paul Krieger

Paul Krieger

Paul Krieger has been named MP for New Jersey for Big 4 firm Deloitte. Krieger, a partner at Deloitte & Touche, was named to the role Dec. 1, succeeding Joe Welter. Welter is retiring in June.

In this role, Krieger will be responsible for driving client and business growth, as well as head the direction of the firm’s New Jersey market activities.

Krieger joined Deloitte’s audit practice in 1990. He then was named to the partnership in 2002.

“Paul brings an impressive record of accomplishment and dedication to serving clients across the tri-state region,” Welter says in a prepared statement. “I am confident that he will continue to build and grow our New Jersey practice while providing valuable and distinctive client service.”

In Canada, Deloitte is Now Running a Bitcoin ATM

Big 4 firm Deloitte is hosting a BTM, or bitcoin transaction machine, which was unveiled recently in the Toronto office of the firm’s Rubix blockchain division, CoinDesk.com reported.

Much like an ATM, the machine can exchange currency for bitcoin.
Iliana Oris Valiente, strategy leader of Rubix by Deloitte, told CoinDesk: “We see this as being an important milestone for us as an organization. It’s a move to improve accessibility and hands-on learning as first step toward greater blockchain adoption.” Rubix by Deloitte is the accounting firm’s blockchain technology offering based in Canada, which works exclusively on enterprise blockchain applications with clients around the world, CoinDesk explains.