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.
Even though Big Data is a new frontier and there is widespread excitement about masteringand executing something new, it is important to base any new investments in skills andtechnology on a strong business context. In this article, Lokesh Dadhich and Shinichi Akayama of Arthur D. Little, discuss why Telcos should aim to build upon small successes and then gradually roll out Big Data initiatives organization-wide.
Historically, pay-TV operators have provided both exclusive movie content and live sports content. The former has been increasingly preyed upon by OTT players (e.g. Netflix). OTT players have been successful for three main reasons: offering an abundant catalogue (available anywhere at any time), at an affordable price and with a simple user interface. Therefore, the perceived value of the filmed entertainment content value proposition of pay-TV operators has come under pressure. In this article, Clemens Schwaiger and Daniel Cheaib of Arthur D. Little discuss how pay-TV operators are shifting their buying power to premium sports, and why free-to-air (FTA) broadcasters are finding it increasingly difficult to retain such live sports rights.
Recent cases in which we have participated have shown that the organization of digital efforts is a key and controversial aspect of every digital transformation. Channels, clients, IT and other departments often think that digitalization is their natural field of play, and that they must keep ownership of the process. Traditional channels, product areas and other "business-as-usual" departments sometimes see digitalization as more of a threat than an opportunity, and their lack of involvement and commitment is a real danger to the outcome of the transformation. In this article, Alejandro Gonzalez and Pedro Fernández of Arthur D. Little, explain why becoming digital centric is a must.
Banks and insurance companies that are able to transform themselves will be well placed to benefit from digitalisation. However, most companies remain unprepared, write Alejandro Gonzalez and Pedro Fernández of Arthur D. Little.