Energy & Utilities UK | Renewable Energy Focus | 15 June 2015

GCC Solar Energy: Turning plans into reality

This online feature article is adapted from Arthur D. Little’s recent Viewpoint on reviving momentum that the Gulf Cooperation Council (GCC) has lost in past years for developing solar energy technology in the region. The GCC has one of the highest rates of insolation, and therefore huge potential to benefit from solar energy as its primary energy source. Almost all of the countries in the GCC have declared plans for significant solar energy initiatives – particularly Saudi Arabia, with its goals of implementing 41GW of solar energy over the long term.

However, the high ambition across the region appears to have lapsed since the various announcements in recent years. The article talks about key areas affecting the progress, including policy support, implementation vehicles, industrial strategy and participation of the private sector in the initiatives, as well as R&D, human capital development and investment funding.

Healthcare UK | Eye For Pharma | 14 June 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. Over the course of the last decade the consumer health industry has risen as an important force that is reshaping the future of health care, enabling  an individual-centric model whereby consumers play a more central and informed role, alongside providers, in health care prevention, maintenance and ultimately, treatment. Players targeting the consumer health opportunity space need to anticipate what the world will look like a couple of years ahead, what kind of solutions will be offered to consumers and decide where to be present and build the required capabilities.

Travel & Transportation UK | Transport for Cape Town | 08 June 2015

Transport Development Index reveals cost of transport in Cape Town in terms of time and money

The City of Cape Town’s Transport Development Index (TDI) – the first to be developed in Africa – reveals that 95% of commuters making use of public transport in the city fall within the low and low to medium income groups. Furthermore, the low income group spends on average 45% of their monthly household income on transport. The article discusses the TDI, which was developed by Transport for Cape Town (TCT), the City’s transport authority, to evaluate the accessibility and related costs of transport to different income groups and users across the city. Following on from the TDI, Cape Town was evaluated in terms of the Arthur D. Little Mobility Index that is used to measure cities all over the world. The Mobility Index uses 19 different transport-related assessment criteria such as the financial attractiveness of public transport; the share of public transport in the modal split; roads density; cycle path density; smart card penetration; car sharing performance; public transport frequency; traffic-related fatalities; mean travel time to work; and density of vehicles registered, among others. With an overall score of 37 points, the City of Cape Town ranks 73rd out of 85 cities worldwide and 4th out of six in Africa.

TIME Germany | Wirtschaftswoche | 05 June 2015

Final of the ears

High-tech giant Apple recently announced plans to enter the music streaming market. Competitors such as Spotify and Deezer will struggle to compete with Apple’s new business model – already the current market leaders are making losses. Clemens Schwaiger, digital media expert of Arthur D. Little, confirms that the decisive battle for music streaming is just ahead. Apple has not yet published concrete plans concerning the new streaming application. Nevertheless, experts believe streaming may be the perfect add-on to Apple’s iTunes. The company will offer a service that is slightly cheaper than competitors’ services. Schwaiger believes that Apple will soon become one of the big players in the music business – for the simple fact that the Californians have a bigger budget than any other company around the world.

With 800 million users worldwide, iTunes has massive potential. If only 10 percent of iTunes users complete subscriptions for the new streaming service, it will easily overtake Spotify with its 60 million users. For record companies, Apple’s entry may lead to bigger earning in the beginning. Some experts believe Apple may also be interested in the music marketing sector at some point. In that case, it will soon become a powerful competitor to record companies as well.

Energy & Utilities UK | The Energy Industry Times | 04 June 2015

A triple lock approach

As the UK prepares for a new generation of nuclear power plants, The Energy Industry Times analyzes its preparation and what others might learn from a country that boasts a long and solid nuclear history.  The article discusses how the UK hopes that its detailed approach will not only guarantee the implementation and operation of safe designs but will also help avoid the construction delays and cost overruns seen at the Olkiluoto 3 (OL3) plant being built in Finland by Areva. Michael Kruse, Partner and Head of the Central European Energy & Utilities Practice at Arthur D. Little is quoted as saying, “At OL3 not all issues – such as I&C for example – had been fixed, which caused delays due to the Finnish regulator STUK not accepting the design. There have been challenges in managing the design requirements. During the construction phase, new design and safety requirements have been imposed on Areva. Also the safety and design criteria, as well as relevant technical standards, were not clarified early enough. There was a lack of transparency on how requirements at plant level would be translated into the design of systems, structures and components, which caused acceptance issues after they were installed. It was also not clear which regulatory approvals would be needed during the project (hold points), and which were known and understood by the licensee and vendor.” Kruse noted that for the owner it is crucial to have an “agile” organisation that is able to cope with design changes and manage the regulator supply chain interface to prevent the schedule slipping.

Energy & Utilities Germany | Handelsblatt | 29 May 2015

Nuclear power stations maintain a risk

The ideological battles for the future of nuclear power are over. The nuclear power phase-out has already been decided. Critics worry about the provisions of German energy service providers. The estimated costs for the dismantling of nuclear power facilities and equipment are €70 billion, whereas companies have calculated €38 billion only. However, Michael Kruse, Arthur D. Little’s energy expert, points out that storage of the radioactive materials, rather than the dismantling itself, is the main problem. A radioactive waste repository has not been found so far.

This problem will prevail for at least a century. Experts demand that the costs of the dismantling be socialized and decommissioned into public stock. This may be the only sustainable solution for the financial issue. The financial burden is too big for energy providers alone. Energy service providers have already announced that they are planning to go to court against the government’s nuclear power phase-out decision in order to receive compensation. Public stock might be an acceptable compromise for both sides.

TIME Austria | medianet | 28 May 2015

Escaping from the OTTs’ stranglehold

Data-consuming OTTs such as Netflix and Spotify challenge both internet service providers and traditional media with their new online streaming offers. Telecommunication companies complain that they are investing into modern networks while OTTs are making the profit. However, the new study by Arthur D. Little and Exane BNP Paribas predicts that the upcoming OTT boom will provide opportunities for internet service providers as well. ADL and Exane experts expect demand for fast broadband connections to grow more quickly, enabling providers to develop new offerings to make larger profits. OTTs will also challenge traditional media such as radio, TV and Pay TV. Arthur D. Little projects that prices for content will increase. Traditional TV channels may react by developing their own OTT offerings. In Austria the convergence between media and telcos has just started: market leader ORF has acquired Flimmit, and T-Mobile has partnered with Netflix.

Technology & Innovation Management Sweden | | 27 May 2015

Systemizing Breakthrough Innovation: Study Results

Most companies recognize the need for breakthrough innovation – it can change the fundamental bases of competition, “rewrite the rules” of an industry and transform the prospects of the successful innovator. There is no one-size-fits-all model for how best to respond to this challenge. Arthur D. Little surveyed over 80 large organizations to explore how to deliver a consistent pipeline of radically new products, performance features, business models and market space. In this article, Ben Thuriaux- Alemán, Fredrik Härenstam and Richard Eagar of Arthur D. Little, discuss how serial breakthrough innovation is real and achievable for any company.

TIME Germany | Heise online | 24 May 2015

Dobrindt: No more dead spots from 2018

Alexander Dobrindt, the German minister of transport, asserts that areas with no reception will disappear in the next three years. This week the Bundesnetzagentur (Federal Agency for Networks) will start a new auction to sell frequencies for mobile services. The 700 MHz frequencies have been used by public service broadcasting authorities for decades and will soon be used to improve mobile networks. Dobrindt wants telcos to purchase the frequencies in order to develop networks quickly, so that mobile internet is available on highways and trains, and especially in rural areas. Arthur D. Little experts are confident that the auction will be a milestone for broadband in Germany. They expect earnings of up to 2 billion euros. Critics point out that the UMTS auction in 2000 provided earnings of around 50 billion euros – compared to these dimensions the forecasted public broadband subsidies seem small.

TIME UK | Computer Business Review | 20 May 2015

‘Optimism’ returns to telcos as OTT windfall approaches

An article about Arthur D. Little and Exane BNP Paribas’ latest report, ‘How to ride the OTT wave,’ which predicts that the telcos sector will return to growth from 2017. Bertrand Grau, Principal at Arthur D. Little is quoted as saying, “While in the short-term, we believe that traditional players will be ready to meet the challenge posed by OTTs, a select number of OTTs could reach the scale necessary to compete with pay-TV on premium content.”

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