Telcos' innovation strategies have been shown up in a new report, which laments a continued protection of their core business activities. The report from management consultants Arthur D. Little, Match-Maker Ventures and The Telecom Council of Silicon Valley, noted that realising value from innovation remained "elusive". Over two-thirds (67 percent) of telco respondents said that innovation is among their top three strategic priorities, but only 34 said they were satisfied with their innovation activities. The report noted that their approaches were often "shallow" and "scratching the surface". "Observing and mimicking often is the key, instead of true innovative thinking," it said. A desire to protect the status quo and shareholder pressure were two reasons for this, according to the report.
In this article about truck manufacturers in the Middle East truck market, the authors of a new report from Arthur D. Little are quoted as saying the following: "From a marketing footprint, we're not suggesting they should withdraw from the market in South America. The recommendation is to scale back on the production capacity side and reallocate capacity to Middle East in one form or another," said Roman Mathyssek, Principle at Arthur D Little's Munich Office. "It is only a temporary solution. They have overcapacity in South America but not enough in the Middle East." And they are going to need it, soon. "The region is going to see a shift to quality, which also hasn't been addressed adequately enough in the past," Arthur D Little's Michael Rüger, Partner, Frankfurt Office, told Automotive World. "People always think it's just a budget market and you just sell on price, but that's not true. You sell on quality now more than ever. That's the new name of the game, and it goes hand in hand with services and everything else that you need in order to sell a high quality truck to a fleet."
Fixed-mobile convergence has become a reality in Europe, driven by operators in markets with infrastructure-based competition and essentially adopted by customers for its discounts. Behind the nice take-up figures, there is a contrasting reality - the challenge being for operators to capture the value creation potential. In this article, Gregory Pankert of Arthur D. Little discusses why moving beyond discounting is critical to maintain differentiation and secure a positive incremental margin. Operators will need to deepen their understanding of how convergence affects customer segments and value contribution, and translate it into new go-to-market strategies.
Over the past few decades' airports have evolved from mere infrastructure providers to hubs of commercial activities. Many airports have therefore extended their service offerings, focusing increasingly on providing a holistic customer experience with the passenger central to both strategic and commercial decisions. Proper management of airport parking activities has a defining impact on the customer experience, as the parking premises form the first physical point of contact at the airport for point-to-point passengers. In this article, François-Joseph Van Audenhove and Aurelia Betatti of Arthur D. Little, discuss ways to maximise customer experience and create added value from airport parking activities.
Industry 4.0 and related new technologies such as the Internet of Things (IoT) are changing the face of the industry. CXOs in all industries are currently defining new ways to explore and exploit the benefits. The bad news is that the variety of technologies and limited number of industrialized examples make it hard to understand the complexity of the topic. The good news is that the concepts are far more than buzzwords. The new technologies have game-changing potential. In this article, Russell Pell of Arthur D. Little, is interviewed about Industry 4.0, IoT and additive manufacturing.
In this article about how robots are moving up to take on both menial paperwork and complex data analysis, Alejandro González and Pedro Fernández-Olano, authors of the Arthur D. Little report "Defining the Digital Organization," are quoted as saying they do not foresee widespread use of robotics in banking in the short term, particularly in corporate banking, which often requires more complex interactions with customers. But they recognize that sophisticated software algorithms-or software robots, for that matter-doing more of the grunt work on the back end could be useful. "Banks would be able to do things more efficiently and not lose money in irrelevant customer marketing campaigns," says Gonzalez.
Digital transformation has changed the world. The ubiquity of the Internet and the extremely rapid expansion of increasingly versatile smartphones have disrupted the way consumers interact with several industries. From entertainment to the car industry, almost no sector of the economy has been left out of the digitalization wave. Financial services are not an exception. The way customers interact with banks and insurance companies has changed: according to Eurostat and The Financial Brand, as much as 40% of banking customers in the EU are active online banking users. That number rises to 61% in the US. We expect this number to rise to 83%-89% in the EU by 2020. In this article, Alejandro Gonzalez and Pedro Fernández from Arthur D. Little, examine how financial institutions can implement technologically-inspired strategies.
Electricity demand in Europe is down 5% on 2010 levels, with up to 8% declines in the major markets. U.S. power consumption is stagnant over the same period. Energy demand in developed markets is being driven down for many reasons, chiefly environmental, but the key fact is GDP growth in developed markets is no longer based in energy-intensive industries. Utility CEOs are therefore looking to grow their top line outside of the traditional asset base. In this article, Kirsty Ingham, David Borràs and Matthias von Bechtolsheim from Arthur D. Little, examine how utilities can achieve sustainable growth.
Innovation from sources outside of the traditional healthcare system is changing the pharma industry. A digital revolution in many business models means a positive overall change for patient care - but introducing new services too quickly could see development in other areas suffering. In this article Ulrica Sehlstedt, Nils Bohlin, Fredrik de Maré and Richard Beetz from Arthur D. little discuss the impact of digital health on the pharmaceutical industry.
The "Internet of Things" is one of the hottest topics within the global industry environment. All kind of products are becoming "connected" or "smart"- from home appliances to cars and trucks to vending machines and fitness devices (wearables and smart watches). Enabling products to communicate with the outside world offers tremendous opportunities for value-added services and opens up significant space for new and innovative business models around the connected device ("smart object"). However, the market for services around connected devices is still in a relatively immature stage - sustainable business models are in "trial-and-error" mode. In this article Ansgar Schlautmann from Arthur D. Little, discusses how Telco's can connect the dots within the ecosystem.