This article by Robin Francis, Philip Webster and Laurie Gillodo of Arthur D Little focuses on the importance and growth of the renewable energy sector and how it is now a mainstream part of the energy mix, primarily due to government subsidy and support. However, renewable energy is approaching a transition phase whereby it is starting to become cost competitive with conventional generation technologies, therefore becoming a commercially viable option. However, despite these positive trends in renewable energy, many companies operating in this industry face challenges such as bankruptcies, exits, consolidation, significant losses and confusion over subsidies, therefore reducing investor confidence. Reasons why many of these businesses find themselves unable to maintain profitability are identified in this article: brutal intra-industry competition and resulting overcapacity and margin pressure; too much focus on technology and not enough on market needs; overdependence on unpredictable legislation; and a belief in the status quo. Recommendations are made by the authors to counteract these challenges, and they demonstrate that profit is possible in the renewable energy industry, such as seen with GE and Siemens.
An article by Tom Becker, Associate Director of Arthur D Little, about quality management and the value this can create for customers and businesses. He discusses how product and service quality has become increasingly important and how products need to be more than just ‘defect-free’. Quality management should seek to move from simply being an ‘assurance’ stage to also incorporating it into all parts of the business through ‘empowerment’ and finally should aim to increase ‘customer delight’ thereby exceeding customer expectations. Becker stresses that quality management should become a key partner in the value chain to being more of a solution provider, as opposed to being the source of hurdles to be overcome. There are opportunities for quality management to become part of capturing and interpreting customer intelligence and evolving into a more holistic, strategic and value-adding aspect of businesses.
In this article, Bertrand Grau, Principal Analyst at Arthur D. Little discusses why mobile revenue growth will continue to decline until at least 2016. Bertrand says the mobile and fixed-line industries will suffer declines of around two per cent and that the advent of 4G will not halt the decline. He says that for operators to monetise 4G, they will have to stimulate data usage so customers have to “climb” higher tariffs offering greater allowances; however he says this will be difficult to achieve.
Our Global Chairman and CEO Ignacio Garcia Alves participated at the VIP dinner of the 14th World Knowledge Forum in Seoul, Korea. He moderated the session on Creative Economy and Creating Class plus one session on "The Secret of the Creative City".
Ignacio Garcia Alves chairs session article
AT&T, Telefónica and Vodafone are on a shopping tour. Thus the fragmented European market with far more than 100 mainly nationwide active mobile communications and fixed network suppliers should become a uniform European home market with three or four strong players. This is the only way for Europe to catch up with American and Asian groups concerning incredibly fast internet and mobile communications networks. Even Deutsche Telekom is searching for suitable candidates to take over. The company works closely in so many business segments with its business partner Orange that they can fuse at any time. Ansgar Schlautmann of Arthur D. Little considers such a mega consolidation as likely: “Due to the high number of cooperations a wedding in the long term is absolutely possible.”
Mid-sized upstream oil and gas companies often make relatively low investments in technology development and lack the leverage over service and equipment companies that is held by the larger E&P companies.
In this article, Arthur D. Little describes the results of a review in which it found that those mid-sized E&P companies with more proactive approaches to the adoption of technologies and stronger technology management processes generally seemed to yield better overall business performance expressed in both cost and resource replacement terms. This suggests that improving technology strategies can bring substantial benefits to the business performance of mid-sized E&P companies.
Technology Application in Mid-Sized Oil and Gas Companies article
First published in Petroleum Review October 2013
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In this article, Thilo Kaltenbach of Arthur D. Little Healthcare Practice looks at how pharmaceutical companies must implement specific strategies and work alongside payers and patients in order to authorise new drugs in an ever-changing global market. The article discusses market access challenges, national differences, the impact on biotech companies and key success factors.
Arthur D. Little has launched Strategic Advisory Services for Competition and Regulation (SASCAR). The SASCAR competence centre will help define socially and economically appropriate public policy and support telecoms companies, manufacturers, governments and regulators in a global market increasingly dependent on the digital economy. Dr. Karim Taga, Managing Partner and Global Practice Leader of Arthur D. Little’s TIME practice said, “The Arthur D. Little TIME practice is very proud to add such an important service line to our core portfolio. Our consultants will work side-by-side with many high-caliber experts in the public policy and regulatory domain that we have invited to join the SASCAR competence centre. We have strong and independent opinions and we are eager to further engage our clients with what we believe is a highly relevant value proposition.”
Those who pay less for their ticket will get less miles: Lufthansa tightens the conditions on price conscious passengers and supports their change to competitors of the Gulf. The airline already suffers from the growing competition of Turkish or Gulf Airlines, as Ralf Baron, partner of the management consultancy Arthur D. Little says in a study for the Wirtschaftswoche: "In the beginning a high proportion of the travel novices fly long distance with Gulf airlines, because on average they are clearly cheaper than the Europeans."
In this article, Dr. Andreas Gissler, Director for the Automotive, Manufacturing and Mobility Group at Arthur D. Little discusses the vision of the ‘connected car’ and its significant impact on the industry. He states that OEMs should create the framework today so that they can overcome start-up hurdles and achieve competitive advantage in the saturated market. He says that OEMS need to immediately find answers to some key questions in order to make the vision of the connected car a sustainable success story.