Insight

Digital transformation of your value chain

Creating the proper structure for digital transformation investments can reduce tax risk and significantly optimize after-tax profits.

Paul Glunt

Paul Glunt

Principal, Value Chain Management, KPMG US

+1 949-885-5759

Jerry Thompson

Jerry Thompson

Principal, International Tax, Value Management, KPMG US

+1 314-244-4033

Pravin Ugalat

Pravin Ugalat

Principal, Economic & Valuation Services, KPMG US

+1 949-874-3549

Matt McNeill

Matt McNeill

Managing Director, International Tax & Value Chain Management, KPMG US

949-431-7354

As the adage goes, “Change is the only constant.”

As other executives within organizations are driving new investments in digital capabilities to identify and unlock new sources of value across the business, tax executives should be paying very close attention to how those investments are being structured - the types of assets being developed, how, by whom, and where they are being developed, and how they are being monetized. All of these changing value drivers mean disruption for your existing value chain and tax model.

Digital Transformation for Your Value Chain
Digital transformation serves as an onramp for businesses to access not only the technologies available today, but those of tomorrow. Learn more about how this can be applied to your value chain.

 

Starting at the start - analyzing your value chain

Most businesses have not started or have only just begun to assess the implications of digital transformation for their transfer pricing models and tax structures. Many businesses have significant risk embedded in their current tax operating models around digital, and much of that risk currently remains unknown to them. And a few early movers are already ahead of the pack having focused on identifying and understanding how digital transformation affects their end-to-end value chain and engaging affirmatively to capture significant benefits by aligning their tax structure to the new digital value drivers within their organizations.

 

Read the report to learn about

  • Digital transformation trends in 2021
  • What it means for tax when digital transformation transforms the value chain
  • New strategies to enhance bottom line results
  • How to do a value chain analysis (VCA)
  • Digital Centers of Excellence (DCOE)
  • How a VCA supports DCOE planning

How KPMG can help

KPMG is assisting companies to both understand their current state as well as plan for their future state. As we consider the technologies at play, it is clear that the future state is closer than many realize. Tax and finance executives should address these matters today to ensure proper alignment of the tax model with their organizations’ current and future state value chain. A simple place to start is to ask:

  • Do I know how my organization is utilizing and/or developing digital technologies today?
  • Do I know who owns those digital assets within the organization and how affiliates are compensating the owner of such digital assets?
  • In my company’s digital transformation journey, do I know what the intended future state looks like?