The conflict between German medical device manufacturers and the health insurance funds is becoming rougher. Background is a new EU order which should regulate how medical devices will come to the market in future. In a provocative paper, health insurance funds are demanding sharper licensing controls for medical devices and a central control like the American health authority, the FDA. The medical device industry fears a competitive loss due to more bureaucratic work and costs and describes the paper as a frontal attack against the innovation ability of the German medical technology manufacturers. “The problem is that the growth of the medical device manufacturers depends to a large extent on the refunding policies of health insurance funds“, explains Thilo Kaltenbach from Arthur D. Little.
In this article, Ben Thuriaux-Aleman and Stephen Rogers of Arthur D. Little talk about the emergence of the projects, technology and procurement division in E&P organisations. Companies are under increasing pressure to deploy their best available technological capabilities to maximise recovery and efficiency, while at the same time minimising costs in a safe way. Innovations should have the greatest impact in greenfield projects given that the performance levels baked in with technology selection are locked-in for the full 20 – 40 years. However, the strong pressure on ‘first oil’ means that projects managers are rewarded against delivery on schedule and scope. The authors state that a new organisational form that tackles these challenges is the integration of Projects, Technology and Procurement into one single, integrated global division. They suggest that as asset development challenges drive the development and adoption of more and more complex technologies, this organisational design will be seen more frequently in the future.
Didier Levy, director of Arthur D. Little’s Telecommunications, IT Media and Electronics practice, considers the business impact of 4G LTE for telecoms companies. He says that moving to 4G is extremely important for European telecom operators whose current networks are running out of capacity. He states that 4G LTE can carry 70 per cent more traffic than the latest 3G technology, which is enough to meet capacity needs for the next ten years. Didier says that operators need new tariff structures, partnerships with content providers, cost reductions, better network utilisation and network sharing if they are to build profits.
VW and BMW have entered the market for e-mobility and Mercedes will follow. The current number one, Renault-Nissan, wants to remain on top by securing commercial customers of e-mobility such as logistics companies and suppliers. Klaus Schmitz from Arthur D. Little says, “Because of the low density of electric cars, private investments for public charging stations are not worthwhile. And vice versa the missing infrastructure prevents the market uptake of electric cars.”
The Asia Pacific Market has overtaken North America to become the dominant force in air passenger traffic, reports Air Transport World. According to Arthur D. Little’s 2013 World Air Traffic Report, global air passenger growth slowed in the traditionally strong markets of Western Europe and the US for the second year running in 2012, while emerging regions experienced a boom.
Comms Business Magazine asks Didier Levy, Arthur D. Little’s Telecommunications, IT Media and Electronics Director, what operators can expect from 4G Networks. Levy suggests 4G will not be a silver bullet for industry pricing power or revenues, and operators must implement five key strategies to benefit properly from the rollout. These include monetising data, innovating in services, reducing costs, optimising network use, and network sharing. These recommendations follow the release of the 2013 Exane and Arthur D. Little report on 4G earlier this year.
Business analysts look to Arthur D. Little’s 8th Global Innovation Survey for clues on the future of investment in innovation. In their Future of Business blog, Roger Trap and John Orwid present a streamlined version of the report examining the link between innovation and performance and the effectiveness of radical business models.
Senior Arthur D. Little employees James Catmur, John Barker and Charles Boulton discuss how ‘agile’ concepts are being used to improve corporate efficiency without compromising safety and risk management. ‘Agile’ solutions place the emphasis back on business aims, preventing adherence to a linear process from becoming an aim in itself. Using a detailed model of Agile Options they address both the challenges presented by this concept and the way forward. To be successful in the long run, they argue that companies will need to demonstrate to stakeholders that the results achieved with agile solutions can match up to traditional approaches. There is still some way to go before stakeholders can be convinced, but the early signs are promising.
Tom Becker, Veit Butterlin and Carsten Kahner of Arthur D. Little outline how companies can integrate quality management into the value chain. Product and service quality have never been more important in today’s world of globalisation, expanding consumer rights, and customer expectations. Quality management is evolving into a three stage process: Assurance, Empowerment and Consumer Delight. These respectively cover minimising defects, encouraging a company-wide holistic approach to quality management, and using quality management as a facilitator between Marketing & Sales, Manufacturing and R&D. Companies must embrace these new concepts now that quality is no longer a policeman but a business partner.
The problems Car manufacturers are currently facing up to are massive. For the international automotive show (IAA) Arthur D. Little has formulated the seven greatest challenges for car manufacturers – and provides approaches for solutions. These include integrated mobility models and new market and technology strategies in the area of e-mobility, such as costumer oriented product concepts and innovative business models. Furthermore, Arthur D. Little asserts that the role and importance of quality management and costumer experience management will change and that premium manufactures need sales model innovation to push their growth ambitions