KPMG CFO MILLENNIUM WISH LIST SURVEY: MAJORITY OF CFOS GRAPPLE TO UNDERSTAND CUSTOMER NEEDS AND TRUE IMPACT OF THE INTERNET
In a survey to determine what CFOs will be focusing on in the first year of the new millennium, KPMG LLP, the professional services firm, discovered that a large emphasis will be placed on understanding customer needs, followed closely by the impact of the Internet on revenues, expansion and overall business strategy development.
In the "KPMG CFO Millennium Wish List Survey," 37 percent of respondents ranked "spending more time understanding customer needs" as the area they will pay most attention to in the year 2000. Interestingly, the survey also confirmed the Internet's increasing influence on today's global business environment. Thirty three percent of respondents stated that they are scrambling to understand how the Internet will impact profits and growth and 30 percent stated they are seeking to gain a better understanding of how the Internet will impact the company's overall corporate strategy.
"The KPMG wish list survey clearly paints a picture of today's business landscape. The greatest challenge CFOs across the globe are facing right now is how to embrace the Internet and fold it effectively into the company's existing strategy," commented Nilesh Shah, KPMG partner, E-Business Tax Services. "In the new millennium, it will be imperative for companies to begin to understand the many complexities and consequences of the Net in an effort to sustain long-term growth and elevated bottom-line results."
Interestingly, KPMG's CFO survey also revealed that CFOs will have more time to focus on the burgeoning e-commerce arena in the coming year, with 66 percent of respondents stating that a reduction of stress is likely as they move away from Y2K concerns.
"In recent months, CFOs were faced with myriad Y2K concerns dealing with expenditures and in making sure corporate systems were Y2K compliant," stated Shah. "With the Y2K threat behind us, CFOs can now begin to focus on e-commerce complexities and more specifically, on bringing their companies into the age of the Internet."
In the wake of today's e-driven bull market, increased emphasis has been placed on maximizing corporate stock performance. In response to this trend, the KPMG survey asked CFOs how they will be attempting to improve shareholder value in 2000. Interestingly, the survey found that 62 percent view increased revenues and reduced costs as equal priorities.
"The survey results demonstrate what we see more and more each day-- an increased emphasis on elevated shareholder value by the majority of CFOs," said Michael Burke, KPMG's global managing partner of total tax minimization services. "While increasing revenues and reducing costs are often the most common avenues taken to maximize corporate stock performance, it is important to note that effective management of a company's effective tax rate can also play a vital role in achieving elevated market returns."
Note to Editors:
The survey was conducted via telephone December 20-22, 1999 and January 3-5, 2000, with an average survey base of the world's leading CFOs/or senior executives from 50 major global companies. Results of the study are available by calling Jill Ronda, director of marketing, KPMG's E-Business Tax Services or Nancy Autler, director of marketing, KPMG's International Tax Services at 201-505-3400.
KPMG LLP is the U.S. member firm of KPMG International. In the U.S., KPMG partners and professionals provide a wide range of accounting, tax and consulting services. As a provider of information-based services, KPMG delivers understandable business advice -- helping clients analyze their businesses with true clarity, raise their level of performance, achieve growth and enhance shareholder value. KPMG International's member firms have more than 100,000 professionals, including 6,800 partners, in 160 countries. KPMG's Web site is http://www.us.kpmg.com.
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