TIME UK | European Communications | 28 August 2015

The strategic questions telcos must consider to succeed in smart cities

Smart city initiatives are constantly evolving around the globe. At present, more than 100 cities are implementing some kind of smart solution within their ecosystem and by 2020, Arthur D. Little predicts that the global market will grow to a whopping size of more than $2 trillion. Telecommunication players around the world are engaging in the smart-city context – but, as of today, mostly as “connectivity suppliers” rather than significant drivers of overarching smart-city initiatives. In this article, a guest feature written by Ansgar Schlautmann, Global Head of the “Innovative Business Designs” competence Center at Arthur D. Little, Ansgar discusses the strategic questions that operators need to consider in order to tap into the smart-city opportunity.

TIME UK | Consultancy.uk | 27 August 2015

Smart City market revenues to grow to 2 trillion by 2020

This online feature article is adapted from Arthur D. Little’s recent Viewpoint on telecommunication providers as enablers for Smart Cities. Arthur D. Little research predicts that Smart City revenues are expected to increase by almost 14% in the coming years, growing to $2 trillion by 2020 and helping to improve GDP growth by up to 15%. In its report, Arthur D. Little considers the development of Smart Cities; and a number of key success factors in the development to being fully integrated.

Automotive Germany | Handelsblatt | 25 August 2015

OEMs face critical customers

The global automobile industry is facing three megatrends. Car sharing, autonomous driving and electric vehicles are the main challenges for the future. Arthur D. Little conducted a study of 6,500 global customers to find out what they thought of these new trends. Local customers are extraordinarily sceptical of all three trends, even though producers have already invested billions of euros into the new technologies. Currently only 22% of German customers say they would use a completely autonomous car, whereas 42% refuse completely. The difference of opinions is particularly large compared to those of customers in China and Korea, where the new technologies are most popular.

Wolf-Dieter Hoppe, Arthur D. Little car expert, points out that the main challenge for OEMs is to gain customers’ trust in their technologies because most people are concerned about safety. In a worldwide comparison, customers have more faith in Google and Apple than in the big OEMs, which are trusted only locally. Furthermore, the study points out that customers do not consider electronic cars a serious alternative to current car options. Arthur D. Little experts assure that car sharing will not threaten OEMs’ revenues in the long run. The niche develops constantly, but private cars will not lose their current status. The authors of the study recognize that German companies are in a leading position in the global car-sharing industry.

Healthcare UK | Pharmaceutical Field | 16 August 2015

Consumer health in the digital age

This online feature article is adapted from Arthur D. Little’s recent Viewpoint on ‘Embracing the Consumer Health Opportunity. Consumer health is a broad definition, covering everything from a gym-goer aiming to stay healthy to a patient looking to manage a chronic disease. Consequently, it is composed of a number of business areas, ranging from the large and mature, such as over-the-counter (OTC) pharmaceutical sales, to expected fast-growth markets, such as wearables and mobile apps. The common denominator is that they are all centered on the patient/consumer. Within the consumer health space it is the individual who is paying the costs and making the decisions. As a consequence of technological development, both consumers and patients are better informed, have wider choice, and demand increased personalization.

Healthcare UK | Nutraceutical Business Review | 05 August 2015

Embracing the Consumer Health Opportunity

This online feature article is adapted from Arthur D. Little’s recent Viewpoint on ‘Embracing the Consumer Health Opportunity. Healthcare is no longer solely a business sector for companies in traditional life science core industries such as pharmaceuticals, medical technology and diagnostics. It is rapidly becoming an interdisciplinary arena that is of interest to businesses from many other industries, such as R&D-driven food and beverage companies, consumer electronics, telecoms, housing/real estate and retail. This is because of the increasing sophistication of consumers, combined with the drive towards healthier lifestyles, which is leading to the creation of new, cross-industry business opportunities.

Travel & Transportation Germany | Wirtschaftswoche | 04 August 2015

The offerings of Germany's best airports

Passengers expect a wide range of entertainment offers when they visit airports. “Shopping miles” and restaurant and visitor platforms are already common. Airports are on the verge of becoming adventure worlds for passengers. The German newspaper Wirtschaftswoche examined the country’s 10 biggest airports and how the offers fit into the self-image of airports. The airports in Frankfurt, Munich and Hanover were listed at the top of the ranking, while the capital’s airport, Berlin-Tegel, failed in the categories comfort, processes and flight offerings and was listed in the bottom position.

Experts have little doubt that additional offerings that improve customers’ comfort, such as shopping and restaurants, are the future of aviation. Aurelia Bettati, partner at Arthur D. Little, highlights that some airports earn more than 50% of their revenues from retail. This development is forecast to increase within the next years. Modernizations and new concepts are meant to make the customer experience more pleasant. Airports will also focus more on business people. Lounges, conference rooms and office services are among the services of the future.

Energy & Utilities Germany | ew-aktuell | 30 July 2015

Europe’s energetic future

Matthias von Bechtolsheim, partner in Arthur D. Little’s energy and utilities practice, was interviewed about the French energy turnaround. The French government recently passed a law to increase the usage of renewable energies, and nuclear energy is planned to be reduced from 75% to 50%. von Bechtolsheim highlights that Germany’s measures, taken in 2011, could be a role model for other countries in Europe.

However, the French actions go far beyond the German plans in some areas. France will expand the usage of electronic cars significantly. To support that process, the government has implemented monetary incentives to raise demand, and is planning to invest in development of an infrastructure. von Bechtolsheim points out that the French plans may be a first step towards a European energy union, which is a long-term goal for Europe. Nevertheless, there is still a long way to go to realize a union. Among the obstacles are the heterogeneous market concepts within the different countries and the legal requirements for energy efficiency.

Automotive Germany | kfz betrieb | 22 July 2015

"It will take longer than 2020, but the future belongs to e-mobility"

Thomas Becker, Associate Director for Automotive and Mobility at Arthur D. Little, has little doubt that electric vehicles will form the future of mobility. Nevertheless, he is pessimistic about the governmental goal of 1 million electric cars on German roads by 2020. Currently Germany is far behind its own ambitions. Becker points out that other nations such as Norway, the Netherlands and China have experienced a national e-mobility boom due to lavish public subsidies and incentives. German customers are restricted by the high costs of electric cars. Lack of infrastructure and low coverage also prevent a breakthrough.
Nevertheless, Becker is optimistic that the advantages of electric cars will soon lead to an increase in urban areas. Lately private investors have started to expand the infrastructure. Even though this might also be a good marketing strategy for discounters such as Aldi, Becker still believes in their function as role models. A better public infrastructure is the key to greener mobility. Furthermore, Becker is confident that new technologies are going to improve the opportunities for electronic cars. Recently several fuel cell cars were launched that may offer advantages over longer distances because of their higher range.

TIME UK | Computer Weekly | 15 July 2015

Nordic Region has Most Connected “Things” Per Person

This article about the strong influence of the Nordic region on the development of the Internet of Things and Industrial Internet of Things draws heavily from Arthur D. Little’s “Connected Things” report, published jointly with TeliaSonera. The report puts the region in a top position to take advantage of opportunities generated by the IoT, citing the Nordics’ high Internet penetration, stable regulatory environment, vibrant user community, and four-to-one ratio of connected things per person compared with the rest of the world. The fastest-growing segments of the IoT in the Nordics are connected people, connected things, and connected buildings.

Energy & Utilities UK | Consultancy UK | 15 July 2015

Arthur D. Little: Gulf between Promised Solar Capacity

This article about the potential of the Gulf region to adopt solar energy is based on Arthur D. Little’s report, “GCC Solar Energy: Turning Plans into Reality.” The region has the means, particularly all-day sunshine, to harness solar energy, but it has a long way to go, according to the article. Countries across the Gulf region, particularly Saudi Arabia, have announced big plans to tap solar energy, but few of these plans have come to fruition. The report authors say the region needs government backing, clear roles between players, well-defined policy initiatives, and strong R&D efforts to move the plans into reality.

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