In this engaging discussion, Greg Sarafin, Global Vice Chair at EY, and Fiona Czerniawska, CEO of Source, delve into the evolving landscape of consulting. They emphasize the shift toward outcome-focused business models and the need for firms to act as orchestrators rather than just advisors. The conversation touches on the integration of AI, revealing its journey from support to independent agency. They also explore how strategic partnerships can enhance value creation and payment models based on client ecosystem outcomes.
The shift in client expectations demands that firms adopt an ecosystem approach, focusing on co-creating business outcomes with partners.
AI is evolving from a supportive role to an autonomous agent, requiring firms to guide clients in optimizing technology investments effectively.
Deep dives
The Evolution of Business Partnerships
The transformation of client expectations has led to a shift in how professional services firms operate, moving from a traditional product and service model to one focused on delivering comprehensive business outcomes. Firms like EY emphasize the importance of ecosystems by integrating multiple partners to co-create solutions for clients, thus enabling clients to achieve strategic goals rather than simply providing standalone advice. This change reflects a broader trend across industries, where clients are increasingly seeking outcomes, exemplified by the automotive industry's transition from selling vehicles to offering mobility solutions. As this shift occurs, professional service firms are required to adopt an orchestrator role, coordinating diverse partners in order to meet complex client needs effectively.
Outcomes over Technology
In the current landscape, successful collaboration between technology and professional services hinges on a focus on business outcomes rather than simply advocating for specific technologies. EY reframes discussions to emphasize the significant transformation potential tied to the finance function's evolution, offering curated partnerships that support these goals. This approach helps mitigate the common pitfall of engaging in technological debates, allowing clients to concentrate on tangible results instead. By prioritizing outcome-based engagements, EY positions itself as a true partner, aiding clients in navigating technological complexities while achieving their desired business results.
The Future Role of AI in Ecosystems
AI is set to play a pivotal role in reshaping business ecosystems, enhancing platforms' capabilities and driving efficiencies in operations. As PaaS providers integrate AI technologies, companies will need guidance in selecting the appropriate frameworks to optimize their investments and outcomes. The ongoing evolution of AI holds the promise of revolutionizing processes, transitioning from a support function to a proactive agent capable of solving problems autonomously. This potential necessitates that firms like EY remain attuned to AI advancements, enabling them to navigate the complexities of emerging technologies while harnessing their transformative power for their clients.
Greg Sarafin, Global Vice Chair, EY Partner Ecosystem, caught up with Fiona Czerniawska, CEO of Source, on the latest episode of our The Future of the Firm podcast.
Greg and Fiona shared their insight on the following matters and more:
Clients want firms to help them drive their business outcomes, and increasingly take joint responsibility for those outcomes. That includes bringing along the collective partners that are needed.
Partnering is the route to an outcome-based commercial model vs. the traditional product and services-based one.
The role of consulting firms is shifting from being the advisor to the orchestrator. We discuss how EY is approaching this globally.
Stakeholder value is created when clients move to a major platform as a service (PaaS) which is then strengthened by adding an orbiting ecosystem of smaller software businesses.
A journey lies ahead that will take AI from being a copilot to having agency. We discuss the opportunities and timeline.
Clients want to pay firms based on the value their ecosystems create. We explore what this means for fee models.
We finish by discussing how firmss may take their partner ecosystems to the next level.
If you enjoyed this conversation, don’t miss our sister podcast, Business Leader’s Voice. In a recent episode, we talked to Jason Maude of Starling Bank about what a tech-first business wants from consulting firms.
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