Risk | Be Diligent | 01 February 2016

Institutional Real Estate Letter: Europe

As companies' reliance on third parties (such as contractors, partners and suppliers) increases, the need to both detect and prevent risk from these third parties becomes ever more important. National legislation with broad international reach is increasing the acute risk of legal non-compliance and the associated impact on corporate reputation. In this article, Stephen Watson and Javier Serra of Arthur D. Little, explain why a risk-based due diligence approach is required to detect and prevent these risks.

Technology & Innovation Management USA | Wall Street Journal | 28 January 2016

Could cloud be the Game Changer in Cybersecruity

Since 2013, the data security challenge has become even greater. The number of data attacks has almost doubled, costing many more companies billions of dollars as well as reputation damage and loyalty loss. And they are getting more sophisticated. The move from information systems hosted by organizations on their own premises to the use of cloud based systems is also changing things. In fact, the cloud requires a completely new security paradigm says Salman Ali, Principal at Arthur D. Little. "Security on user premises versus that of systems in the cloud is like comparing physical security in an office block with that of a shopping mall" he explains. "In an office block there's a security man at a desk near the front door, controlling who and what comes into the building. In a shopping mall there's no security at the front door, but lots of vigilant and visible guards observing and intervening when necessary." In this article, Ali argues that information and communications system security is following a similar path.

Technology & Innovation Management | Forbes | 20 January 2016

In The Digital World CEOs Need To Embrace The Opportunities

And Take The Threats More Seriously

 This article discusses recent internet security breaches at two UK companies and how no business is safe from cyber-attacks. Arthur D. Little’s recent The 2015 Digital Transformation Study is mentioned as it states that although front-runners have emerged, most companies still take a piecemeal approach to digital transformation. Michael Opitz, initiator of the study is quoted as saying: “As customers across the world embrace the new marketplace of shared ownership, on-demand services, and personalization, no industry is immune to the growing need for digital transformation. We fear that today too few CEOs recognize the urgent need to not just invest in new technology, but fully realign every aspect of their businesses to the new digitally-driven marketplace.” He adds that it is “about cultural change”. Organizations need to move away from traditional approaches to projects that involve long lead times and periods of reflection to adopting more of the “act fast, fail fast” approach associated with start-ups.http://www.forbes.com/sites/rogertrapp/2015/12/20/in-the-digital-world-ceos-need-to-embrace-the-opportunities-and-take-the-threats-more-seriously/

Technology & Innovation Management | Informed Decisions | 29 December 2015

Innovations in Pharmaceutical Technology (IPT)

This feature article in IPT details ADL’s research into the consumer health market, and explains how consumers have adopted mobile technology as an extension of themselves, and expect companies they do business with to engage this. Both consumers and patients are better informed, have wider choice, and demand increased personalization. Opportunities exist for both existing players and new entrants, as well as those in adjacent industries. Existing players will need to develop new perspectives, and new entrants will need to acquire healthcare knowledge and credibility. Industries that border consumer health will be able to join in as well, such as food and beauty companies developing offerings that appeal to the health-conscious consumer.

Private Equity | Consultancy.uk | 24 December 2015

India remains an attractive investment destination

This article at Consultancy.uk, drawing from Arthur D. Little’s report in collaboration with the Associated Chambers of Commerce of India, India – Investment Opportunity, compares India as a target for foreign direct investment with other countries. It is ranked high, among other attractive destinations such as China and Brazil. However, India comes with challenges related to infrastructure and government legislation. The country has seen an increase of $9 billion in its foreign direct investment, from $25.3 billion in 2007 to $34.4 billion in 2014. Its largest investment sector was services, followed by telecoms.


Technology & Innovation Management | Customer Experience Magazine | 24 December 2015

Transformational Leadership is the Key to Embracing Digitalization

From logistics and manufacturing to consumer goods and entertainment, every major industry is grappling to respond to the realities of an on-demand, personalized digital economy. Despite CEOs and strategists working around the clock to realign their business development to embrace digitalization, a new global study from Arthur D. Little reveals that the majority of corporations still underestimate the risks of failing to keep pace with a rapidly digitizing economy, and feel ill-equipped to make a holistic digital transformation. In this article, the results of Arthur D. Little’s Digital Transformation Index are revealed.


Technology & Innovation Management | Consulting.UK | 22 December 2015

80% of firms face lagging digital transformation maturity

Eight out of ten companies are lagging behind when it comes to digitalisation, and are executing reactive, rather than active, digital strategies. A lack of knowledge and sense of urgency are seen as the biggest obstacles to digital transformation and transformational leadership is the key to embracing digitalisation. This article discusses Arthur D. Little’s recently released ‘Digital Transformation – How to Become Digital Leader’ report which researches the digital maturity of more than 100 European companies from seven industries.


Sustainability & Risk | UK Construction | 22 December 2015

Detection and prevention of risk from third parties

Companies in many sectors – particularly construction, infrastructure operation, energy and telecoms – interact with a large number of third parties, including their customers, partners, suppliers and commercial agents. A company may have an economic relationship with thousands of third parties each year and potential relationships with more than three times those selected in the same period. In some sectors – particularly construction – companies can critically depend on third parties. It is not unusual for over 90% of any given contract value to be passed on to these third parties. In this article, Stephen Watson and Javier Serra from Arthur D. Little, discuss the types of risk and potential impact that these third parties can bring.


Energy & Utilities | Renewable Energy Focus | 21 December 2015

Managing and creating value from third

party risk

 With major construction and infrastructure development companies, including those in the renewable energy sector, increasingly expanding their footprints into countries far from their home markets, Stephen Watson and Javier Serra from Arthur D. Little give some essential advice for successfully managing third-party risk.

Automotive | Motor Industry Magazine | 15 November 2015

An Alternative Impact

What effects will the diesel scandal have on the future of automotive mobility? Short-term effects are hard to predict and will probably vary by region, but the long-term effect is clear: all powertrain concepts will be literally put on the public test stand. In this article, Klaus Schmitz, Partner at Arthur D. Little, speculates on whether the diesel furore will have a tangible impact on the public's feelings towards alternative powertrains.

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