Strategy & Organization Germany | Absatzwirtschaft | 05 December 2014

Low margins prevent companies from making IT investments

In this article, Arthur D. Little Partner Wilhelm Lerner and Principal Lars Riegel are interviewed regarding the consumer goods market in Germany. They point out new trends and strategies for fast moving consumer goods. Both experts see problems ahead for German businesses: compared to other countries Germany has a very low margin especially for groceries. These low margins make it difficult to invest in modern IT technologies. In addition, German retailers are not yet renowned for their expertise with new media and special services. Nevertheless, new IT technologies and improving services are going to have an increasing influence on shoppers globally and brands should therefore create an emotional brand experience to attach people to their brands.

Energy & Utilities Switzerland | Finanz und Wirtschaft | 28 November 2014

New euphoria in the energy sector

In more and more countries, conventional energy production is no longer the preferred option. As a consequence, Swiss energy companies sense new business fields including energy efficiency and energy services. Global management consultancy Arthur D. Little calculated the volume of new business fields for Swiss energy companies for 2015 on 2.2 billion CHF. Nevertheless, there will only be a growth of 2-3 percent per year because of missing professionals and a complex decision making processes for the customers.

Travel & Transportation UK | BBC Brazil in London | 26 November 2014

Study put Sao Paulo Ahead of New York in Quality of Urban Mobility

This article highlights the ranking of Sao Paulo’s transport network against 83 other worldwide cities in Arthur D. Little’s study, “The Future of Urban Mobility 2.0”.  Sao Paulo was ranked 34, one place above New York. It scored well in terms of affordability of public transport, but fell down due to its heavy congestion. François-joseph Van Audenhove, partner at ADL, is quoted stating that Brazil’s public transport system performs well, but is lacking in terms of maturity. Oleksii Korniichuk, Head of Mobility Competence Center, CE at Arthur D. Little, is quoted explaining how Brazil experienced a natural growth in the number of cars on its roads with the growth of the city itself, and the government responded by trying to create infrastructure to accommodate the increase in traffic. He says to improve its congestion, Sao Paulo should make long-term improvements in its public transport network and encourage the use of bicycles and pedestrian paths.

Travel & Transportation UK | Smartrail World | 18 November 2014

Hong Kong Tops Urban Mobility Index but Cities Struggle with Transit Challenges

This article summarizes the findings in Arthur D. Little’s study, “The Future of Urban Mobility 2.0”.  The study’s evaluation of 84 global cities according to 19 criteria found that most cities were still not fully equipped to cope with the projected growth of world urbanization through 2050. The article cites urban mobility as one of the toughest challenges that cities currently face, and says that current transport systems are under increasing strain. François-joseph Van Audenhove, partner at ADL, is quoted explaining how the study aims to help cities and countries build transport systems suitable for tomorrow’s high demand.

Travel & Transportation UK | Evening Standard | 17 November 2014

Olympics “Pushed London into World Transport Top 10”

This article highlights how the improvements made to London’s transport system in preparation for the city to host the 2012 Olympic Games put London in the top 10 world cities ranked in Arthur D. Little’s study, “The Future of Urban Mobility 2.0”. ADL partner François-joseph Van Audenhove is quoted explaining that all the upgrades were driven by Transport for London. Due to the changes made for the games, everyday commuters benefited from more reliable and frequent transport services and enhanced bus, train and Tube capacity, which showed a vision for the quality of the city’s transport network in the long term.

TIME Austria | Computerwelt | 17 November 2014

Study analyzes scenarios for future IP traffic

A study by Arthur D. Little and the cable network operator Liberty Global on “The future of the Internet” shows that the Internet has changed from a pure communication platform to a video streaming platform. In the US, the Internet streaming service Netflix reaches one third of the entire traffic at peak times. Other Internet-based applications causing traffic such as Smart Metering, Digital Health, Secure Home Delivery and applications for industrial companies will increase traffic even further. Moreover, a tremendous growth in the machine-to-machine communication is also expected. This will be challenging for the infrastructure as well as for network operators and will require new business models for companies.

Automotive Germany | Automobil Produktion | 13 November 2014

Old car models make Audi suffer

Global management consultancy Arthur D. Little has published an analysis of the latest sales figures in the German car market. The figures prove that both Porsche and Audi are facing a negative trend in comparison with the same quarter in 2013. The analysts point out that this is caused by a car model change that will be coming to market in 2015 as both Porsche and Audi will enter the car market with new models. Volkswagen which has released new models in 2014 features the best capacity utilization, with 90,3 % whereas Audi had to face a low degree of 73,8 %. Still Arthur D. Little does not foresee any severe trouble for the German car industry in 2015. All in all the average degree of capacity utilization in the third quarter was even higher than in the same quarter in 2013. This leads the consultants to a positive forecast for the year 2015. Especially because Audi and Porsche are both going to release new models.

TIME UK | Mobile News | 03 November 2014

Select Group Aiming to Transform the Industry

This article, a guest feature written by Salman Ali, Principal at Arthur D. Little, explains the need for centralized management of telecommunication networks as web traffic and the number of connected devices in use grow exponentially in the next few years. This change would streamline the movement of traffic through data centers to devices, allowing individual web applications to manipulate the network in “self-defined, instantly created virtual private networks”. The article offers five action points for telecom carriers to consider in order to lead and drive the industry progression.

TIME Germany | Handelsblatt | 31 October 2014

Who builds the smart home?

Intelligent home appliances are still on the rise and represent a lucrative future market. But only those who manage the customers' needs for comfort and safety can be successful in the long term. So far, the smart home market was dominated by energy companies, but according to Arthur D. Little-experts this business field could soon be controlled by heating technology and household appliance manufacturers like Siemens and Bosch. In order to establish smart home products successfully, the energy companies and the trade should work together to compete with the heating and household appliance manufacturers in the long run.

Korea | Chosun Journal | 24 October 2014

Samsung, Hyundai should transform through active M&A to take a big leap

This article features an interview with Arthur D. Little CEO Ignatio Garcia Alves, drawing out detail from a roundtable discussion at the Shilla Hotel in Seoul, in which Alves participated. The article includes Alves’ comments about current trends and recommendations for the future for Korean companies such as Samsung and Hyundai. He stated that now is the most important period for Korean companies, and that they need to take advantage of it through change and innovation. Stating that Korean companies lack the “fighting spirit” of French companies and are “more hesitant” than Chinese companies, Alves encouraged Korean companies to become more aggressive. He recommended that they evolve themselves through mergers and acquisitions and streamline their operations. He also advised that Korean companies target the European and US markets as they expand outward.

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