This online feature discusses Arthur D. Little’s new ‘Open Innovation with Start-Ups’ report which suggests operators should give greater consideration to partnering with startup companies rather than procuring their services. The report suggests that rather than acting as gate-keeper to services, operators should openly collaborate with startup companies and allow those taken on board to develop their own internal capabilities, which will in turn benefit from the “scale and scope” of telcos. Karim Taga, Global Practice Leader of ADL’s Technology, Information, Media, and Electronics Practice, is quoted as saying “Many large global telecommunications providers are crying out for a fundamental re-set of their innovation efforts and capacity. As counter-intuitive as it sounds, some of the world’s biggest telcos will see their innovation efforts bear more fruit by opening up their R&D models, embracing fast-moving start-ups, and actively engaging with potential partners at every level in the global supply chain.”
This article discusses how multiple Internet of Things devices in smart cities pose a potential security nightmare. But who is responsible for security in a smart city? Usually it is the government or local authority, but that is changing, says Ansgar Schlautmann, Associate Director at Arthur D. Little. He explains, “Smart cities involve an ecosystem of suppliers, including operators. A good example of a telco playing a major role is Valencia, where Telefonica is the main contractor. We see telcos are actively looking at running smart cities. We suggested to one of the telcos we supported that it act as a general contractor and find the IT companies and vendors.”
This online feature discusses Arthur D. Little’s new global mobility study which has shown there are still significant challenges to overcome before mobility and car sharing become mainstream. The study sheds light on the three megatrends of autonomous driving, electric mobility and car sharing. Wolf-Dieter Hoppe, associate director of the automotive practice at Arthur D. Little is quoted saying, “OEMs face a huge communicative challenge in convincing their reluctant customers about autonomous driving, even though in the long run, autonomous driving will significantly increase the amount of driven-passenger kilometres.”
This online feature discusses Arthur D. Little’s new global mobility study which sheds light on the three megatrends of autonomous driving, electric mobility and car sharing. The study reveals consumers are very skeptical concerning the industry’s biggest trend, autonomous driving, and only one-third say they would use an autonomous car. The study also shows that the meaning of mobility in consumers’ minds is changing profoundly, particularly in the global megacities, where current problems may no longer be solved with classic concepts. Car-sharing and driving services will therefore play an important role in these areas. For a long time, one of the key assumptions of this development has been that the role of the car as a status symbol would decrease and the use of car-sharing services would increase. However, Wolf-Dieter Hoppe, associate director of the automotive practice at Arthur D. Little is quoted saying, “Car sharing won’t replace the private vehicle – it is still best seen as an additional mobility option.”
This article discusses how over the past 10 years, small and medium businesses (SMEs) have experienced huge changes to the way they do business, with almost everything requiring a level of online interaction. However, when it comes to broadband, SMEs are left feeling the brunt of bureaucratic red tape, complicated contracts and a general lack of transparency from the service providers. According to a Federation of Small Businesses study carried out last year, 94 per cent of businesses feel that a reliable internet connection is critical to the success of their business. Yet, time and time again, studies have shown that London has some of the slowest broadband speeds in Europe. Research by Ericsson, Arthur D. Little and the Chalmers University of Technology has shown that when the broadband speed for an economy doubles, GDP increases by 0.3 per cent as a direct result. The research suggests that if this is to become a reality, then service providers need to make a step-change towards making reliable broadband accessible, less complicated and less expensive.
Smart city initiatives are constantly evolving around the globe. At present, more than 100 cities are implementing some kind of smart solution within their ecosystem and by 2020, Arthur D. Little predicts that the global market will grow to a whopping size of more than $2 trillion. Telecommunication players around the world are engaging in the smart-city context – but, as of today, mostly as “connectivity suppliers” rather than significant drivers of overarching smart-city initiatives. In this article, a guest feature written by Ansgar Schlautmann, Global Head of the “Innovative Business Designs” competence Center at Arthur D. Little, Ansgar discusses the strategic questions that operators need to consider in order to tap into the smart-city opportunity.
This online feature article is adapted from Arthur D. Little’s recent Viewpoint on telecommunication providers as enablers for Smart Cities. Arthur D. Little research predicts that Smart City revenues are expected to increase by almost 14% in the coming years, growing to $2 trillion by 2020 and helping to improve GDP growth by up to 15%. In its report, Arthur D. Little considers the development of Smart Cities; and a number of key success factors in the development to being fully integrated.
The global automobile industry is facing three megatrends. Car sharing, autonomous driving and electric vehicles are the main challenges for the future. Arthur D. Little conducted a study of 6,500 global customers to find out what they thought of these new trends. Local customers are extraordinarily sceptical of all three trends, even though producers have already invested billions of euros into the new technologies. Currently only 22% of German customers say they would use a completely autonomous car, whereas 42% refuse completely. The difference of opinions is particularly large compared to those of customers in China and Korea, where the new technologies are most popular.
Wolf-Dieter Hoppe, Arthur D. Little car expert, points out that the main challenge for OEMs is to gain customers’ trust in their technologies because most people are concerned about safety. In a worldwide comparison, customers have more faith in Google and Apple than in the big OEMs, which are trusted only locally. Furthermore, the study points out that customers do not consider electronic cars a serious alternative to current car options. Arthur D. Little experts assure that car sharing will not threaten OEMs’ revenues in the long run. The niche develops constantly, but private cars will not lose their current status. The authors of the study recognize that German companies are in a leading position in the global car-sharing industry.
This online feature article is adapted from Arthur D. Little’s recent Viewpoint on ‘Embracing the Consumer Health Opportunity. Consumer health is a broad definition, covering everything from a gym-goer aiming to stay healthy to a patient looking to manage a chronic disease. Consequently, it is composed of a number of business areas, ranging from the large and mature, such as over-the-counter (OTC) pharmaceutical sales, to expected fast-growth markets, such as wearables and mobile apps. The common denominator is that they are all centered on the patient/consumer. Within the consumer health space it is the individual who is paying the costs and making the decisions. As a consequence of technological development, both consumers and patients are better informed, have wider choice, and demand increased personalization.
This online feature article is adapted from Arthur D. Little’s recent Viewpoint on ‘Embracing the Consumer Health Opportunity. Healthcare is no longer solely a business sector for companies in traditional life science core industries such as pharmaceuticals, medical technology and diagnostics. It is rapidly becoming an interdisciplinary arena that is of interest to businesses from many other industries, such as R&D-driven food and beverage companies, consumer electronics, telecoms, housing/real estate and retail. This is because of the increasing sophistication of consumers, combined with the drive towards healthier lifestyles, which is leading to the creation of new, cross-industry business opportunities.