Arthur D. Little Reports

Worldclass Purchasing

Thu, 28 Jan 2010 13:20:24 +0100

The global financial and economic crisis appears to have pulled out of its low point. An economic turnaround is expected in 2010. Now is when the decision is made as to who will capitalize on the opportunities of the coming recovery phase and who can lay the foundation for the years of future success. This can only happen with a methodical, optimally structured and staffed purchasing department functioning as the backbone of a successful company. By lowering costs, the purchasing department significantly contributes to increased value. However, this is not the case for all companies. Oftentimes, the purchasing department operates purely as an order processor and in doing so inadequately performs its strategic functions. What these types of purchasing departments can learn from the very successful purchasing organizations, including which best practices they can purposefully adopt and how they can benefit from the implementation and regular utilization of these best practices, was identified in detail by Arthur D. Little in cooperation with the University of St. Gallen and the German Federal Association of Materials Management, Purchasing and Logistics (BME) with the 2009 PPE Study.

Time for Change

Thu, 17 Dec 2009 11:56:27 +0100

Structural changes taking place in the oil supply outlook are making it very complex for international oil companies (IOCs) to pursue their key twin targets: reserves replacement at sustainable cost, and operational efficiency to sustain the levels of profitability that investors and markets expect of them. Traditional models of asset management - focused on individual asset performance and short term results - are already limiting what IOCs can accomplish today. And additional challenges are emerging for the future: e.g. asset operations will need to be capable of quicker response to the accommodate market changes, and greater awareness will be needed of the full spectrum of opportunities and threats to which assets are exposed. IOCs where asset and field managers merely perform tasks, rather than attempting to run a business as part of an overall enterprise, will not be able to deliver their full potential. They, and their colleagues in the corporate strategy rooms, need to radically rethink their vision of asset management. To address these challenges, both present and future, we propose here a holistic approach to asset management - one that supports consistent and integrated decision-making at each level of the asset portfolio. This approach provides a route to improving current practises, accelerating response to market changes, delivering better resource allocation and utilization, and ensuring optimum cross-asset use of best practice and innovation.

Open Standards for IPTV Set-Top Boxes

Tue, 08 Dec 2009 13:43:19 +0100

The global IPTV industry has experienced impressive growth, but penetration levels are still modest. Set-top boxes represent a not insignificant part of the total costs of providing such services to the end consumer. To spur further development and to avoid sub-optimization based on multiple proprietary systems, a common standard will be increasingly important. Any such standard needs to be interoperable, affordable and innovation-friendly. Since no single proprietary standard for IPTV STBs is likely to emerge, influential players should cooperate to establish a widely supported open standard. A common open standard may represent the best route forward, but does not in itself guarantee such qualities. Clear rules and procedures are needed to ensure robust competition and a win-win environment for all principal stakeholder groups. Such a development will likely aid the prospects of the entire ecosystem, contributing to the growth and overall success of IPTV.

Future of Television

Fri, 27 Nov 2009 12:50:23 +0100

The future of TV will be defined by the enrichment of linear TV with interactive, on-demand services, a mash-up of professional and user-generated content, an increasing availability of TV on multiple devices and 3-screen access. Successful business models will be based on a hybrid model, i. e. a combination of free services to attract users to the respective platform and paid services. Upselling opportunities will depend both on the reach and ease of use of the platform as well as the quality of the content. While short-form user-generated was enough to grow for first movers in the middle of the 2000s, this content won�t be enough to compete with the increasing online offer of commercial broadcasters. Relevant content - and this might be Hollywood studio productions as well as niche specialties from independent studios - will provide reach and stickiness which are the ultimate enablers for upselling and the placement of advertising. Those players which provide a carefully balanced content portfolio, ensure a high reach with an easy to use platform, add relevant additional services and focus on a hybrid business model will be at a competitive advantage and dominate the market in the future. If you are interested in the full report, please contact �or .

Procurement Performance Measurement

Thu, 26 Nov 2009 14:22:14 +0100

Procurement excellence is increasingly becoming an important factor in delivering efficient operations within successful companies. On the surface, effectively measuring procurement performance is no rocket science. However looking deeper, adequate measurement of procurement success is a big issue, as bottom-up reported savings can significantly deviate from the key financial figures a CFO looks at. Arthur D. Little�s latest study on procurement performance identifies the key challenges that companies currently face in developing a CFO-friendly procurement performance measurement. This report suggests a best practice approach to overcoming these challenges and consistently measuring purchasing success in the future.

Post-Merger Integration of R&D

Wed, 11 Nov 2009 10:03:06 +0100

An in-depth study conducted by Arthur D. Little notes that while the potential gain of merging R&D departments is substantial, integration of R&D activities exposes the business to significant risks, is more difficult and takes longer than other areas � all factors that can spoil the affair. The solution is careful tailoring of a full R&D integration approach that deals with the �enablers� early on.

Telecom Operators in a Carbon Constrained World

Wed, 04 Nov 2009 10:24:40 +0100

As the world awaits a global carbon reduction commitment, Middle Eastern and North African (MENA) telecoms operators must do more to ensure that energy and carbon management positively affect their future growth, according to a new report by Arthur D. Little and Dubai Internet City.

The Hidden Value In Your Accounts Receivable

Tue, 27 Oct 2009 12:14:41 +0100

First-class accounts receivable management increases a firm�s value. Overlooked by many companies, reducing accounts receivable by use of 3rd party services, is a value creation lever frequently addressed by private equity owned companies. 3rd parties offer a wide range of services; from debt collection, to advanced financing solutions. Arthur D. Little shares its insight into the services, their properties, business cases, financial effects and implementation.

Smart reactions in the crisis

Thu, 24 Sep 2009 13:55:50 +0200

It can be stated without hesitation that the world is currently experiencing the most severe manufacturing recession since World War II. Overall in OECD countries, manufacturing went down well over 10% compared to last year while growth even in emerging countries is sputtering. Of course, the chemical industry, providing raw materials and components for most downstream activities, has been hit faster and harder. Year-to-date in 2009, global volumes have dropped 30 - 35% in parallel with substantial price reductions.

Ensuring Survival

Wed, 23 Sep 2009 10:19:16 +0200

Much to everybody�s surprise the low-carbon bandwagon survived even a global downturn - it remains a real issue in the eyes of politicians and the public alike. We have not seen the end of risky financial decisions, but have reached the end of a period when carbon became established as an issue but action appeared optional for individual governments, businesses and societies. In this publication, we present four assertions that we believe highlight the dangers of complacency.

Optimizing Involvement in the Development of Sustainability Related Public Policy

Thu, 10 Sep 2009 09:25:55 +0200

Public Policy is increasingly influencing the corporate sustainability agenda, as is the need for companies to engage in its development. This is by no means a simple task. In this Viewpoint we identify key steps in the policy development process and highlight how companies can optimize their involvement.

Emerging markets in microinsurance

Wed, 26 Aug 2009 08:15:10 +0200

Low income households feel the impact of adversity more heavily than most in society, yet have little access to affordable insurance products that could help to protect them. However, as insurance providers become increasingly aware of this unmet need, a new microinsurance industry is emerging. To gain a foothold in this market, insurers need to confront a number of challenges: What is the most appropriate operating model for this low-margin, high-volume segment? What type of products do low income consumers want? How can insurance products be distributed in a previously unserved market? Insurers that succeed in overcoming these challenges have the opportunity to tap a potentially vast new source of profit.

Do more IT for less

Thu, 13 Aug 2009 15:39:21 +0200

Economic downturns force a cost-orientation, especially for "commodities" like Information & Communication Technology (ICT). The pressure on ICT organizations to improve efficiency and effectiveness rises - but best-in-class companies act beyond pure cost-cutting: A holistic performance optimization, maintaining and streamlining the strategic ICT portfolio and addressing all relevant CIO levers for performance results in a higher long-term ICT value and profitability contribution. The Arthur D. Little ICT performance radar contains a well proven set of levers to unveil these improvement potentials.

Shifting Centers of Gravity

Thu, 30 Jul 2009 14:04:04 +0200

The global automotive industry is set to become a fascinating battleground over the next ten years as established OEMs from the triad markets wrestle with challenger OEMs from emerging markets for dominance. As this battle takes place, the industry itself will be transformed by powerful trends, including the emergence of major new economies, a shift in the size and concentration of the world's population, escalating climate concern and extraordinary technological innovation. This report by Arthur D. Little, based on our industry expertise and expert interviews, identifies some of the strategies that emerging challenger OEMs will adopt as they seek to realize their significant ambitions in the global marketplace. It also highlights the key battles that established triad OEM champions will face as they prepare to take on the newcomers in the fight of their lives.

Tourism industry in turbulent times

Mon, 20 Jul 2009 00:00:00 +0200

The economic crisis� impact on the tourism industry has become apparent with a delay, but is currently putting existing business models under pressure. The set phrase that travel is the last thing consumers compromise on is no longer valid. Generally declining demand for travel in the leisure and business sectors and changing customer preferences challenge the players in the industry. In this Viewpoint, Arthur D. Little analyses the main impacts of the downturn on the core business segments of brokers, tour operators, accommodations and destinations. Based on a survey among industry experts and by analysing the business models of selected successful companies in all segments, ways out of the crisis are revealed.

Pricing in a downturn

Mon, 29 Jun 2009 00:00:00 +0200

In today�s economic environment, most companies are focused on projects that provide immediate payback. Proactive executives are currently engaging in typical downturn-management activities such as cost cutting and working capital management.

Powertrain at the Crossroads

Tue, 23 Jun 2009 00:00:00 +0200

The late impact of the global financial crisis on the truck and bus industry has been profound. However, other forces - equally powerful but currently attracting less attention - are also driving significant changes in the powertrain industry. These forces will fundamentally change the rules of the game for players in the truck and bus industry, affecting OEMs, dealers and suppliers alike. As the transformation taking place in the passenger car industry shows, the changes now happening are so great that they may reshape the industrial structure of countries that are heavily dependent on the commercial vehicle industry.

Excellence through the Downturn

Tue, 16 Jun 2009 00:00:00 +0200

It goes without saying that the global economic downturn is severely impacting businesses in ways not seen since the period immediately post World War II. Fortunately this downturn follows a rather long period of great business prosperity so many businesses have reasonable cash reserves with which to weather the storm. With this reserve in place the conventional reaction of many business leaders to this situation is to �hunker down� and try to protect their position by cutting costs and stopping investments until they see an upturn in the economy. More progressive companies however are seeing this environment as a period of tremendous opportunity to create value by strengthening their positions and emerging from the downturn in a new and competitively advantaged position. They are applying innovative thinking and approaches to reduce extraneous costs and re-investing a portion of the savings in a selected number of promising initiatives with a high-likelihood of future returns.

Capital efficient chemical companies

Tue, 12 May 2009 00:00:00 +0200

Cash is king in business, and during a downturn it becomes the main concern of every company. With the credit crunch in full force, a superficial analysis would suggest that capital intensive industries would be hardest hit, and that their executives cannot avoid having to prepare for very lean times ahead.

Dealer Risk Assessment and Contingency Plan Development

Thu, 07 May 2009 00:00:00 +0200

For a longer period of time car dealers have been struggling with diminishing profitability figures due to increasing operational cost and strong competition. But now the financial crisis and the credit crunch take their toll on automotive retailers even more all over the world. For example, the level of dealer bankruptcies skyrocked from a 200 dealerships plateau up to 900 business failures per year in the USA in 2008. Dealer insolvencies directly translate into increasing risks in terms of sales volume to the car manufacturers. Therefore, systematically assessing this risk is key and the first move towards taking appropriate countermeasures that help the dealers to keep their business operations. For this purpose Arthur D. Little has developed the so-called Dealer Risk Assessment.

Marketing & Sales Excellence in the Crisis

Wed, 06 May 2009 00:00:00 +0200

Chief Executives are having to prepare their companies for worst case scenarios and at the same time are gearing up to emerge in a strong position once the crisis has passed. Painful measures are already being taken in order to sustain business. Perhaps contrary to intuition and short-term pressures, this climate provides an excellent opportunity for forward-looking marketing and sales leaders to optimize their cost base, while at the same time increasing sales performance, thus paving the way for future market competitiveness. "Rigorous cost management across all functions" is an immediate need, especially for strong export orientated engineering and manufacturing companies whose order intakes are facing a steep decline with no likelihood of a short-term recovery. For marketing and sales executives, in particular, it is of paramount importance to successfully navigate the key challenge of how to reduce costs without jeopardizing sales generation capabilities in order to sustain and secure top-line results.

Driving After Sales excellence

Wed, 29 Apr 2009 00:00:00 +0200

In the current automotive market environment, the After Sales sector represents one of the few remaining opportunities to generate substantial operating profits. However, as pointed out in Arthur D. Little�s recent two After Sales Viewpoints, this remaining stronghold of profitability is already under increased competitive threat. Given the structural complexity of After Sales and today�s fast changing business situation - how should an After Sales company know where to focus on?

Future of Mobility 2020

Wed, 29 Apr 2009 00:00:00 +0200

The automotive industry is caught in the middle of a crisis of a magnitude the industry has never seen before - an entire industry is paralyzed, in disagreement about whether the bottom of the crisis has already been reached or the market will continue to slip downhill. Over the short and medium term, the restructuring actions initiated now will help optimize cost structures, but will the long-term ability to compete be safeguarded? Will the automotive market return to its pre-crisis state or will new business models change the future of mobility?

Global M-Payment Report Update � 2009

Fri, 24 Apr 2009 00:00:00 +0200

In the last five years, markets with mobile payment offers have matured with a variety of players entering the industry value chain and new services being launched. Initially, there was a race to enter the market and a strong rivalry between different technological propositions that would facilitate mobile transaction channels. Today, we observe that, in many national markets, only one or two dominant mobile payment platforms have prevailed, and key issues now being addressed include cross border interoperability and standardization. Despite the financial crisis, Arthur D. Little expects m-payments to grow globally at 68% p.a. and to reach a transaction volume of almost USD 250 billion by 2012, while there will be distinct opportunites in developed and emerging markets. Arthur D. Little�s new global m-payment report provides insights into the current stages of the m-payment market development in different countries and regions, and draws conclusions for relevant value chain players. If you are interested in the full report, please contact or

Online Gambling: All In?

Thu, 23 Apr 2009 00:00:00 +0200

The online gambling market is progressively opening throughout Europe, with annual revenue forecast to reach �8 billion within three years. Many telecom operators and media companies looking for new revenue opportunities have a card to play, thanks to their privileged access to customers. However, these players need to carefully elaborate an entry strategy leveraging their core capabilities and protecting their brand image.

Islamic finance comes of age

Tue, 21 Apr 2009 00:00:00 +0200

With the recent announcement by the Saudi capital market of four IPOs in April 2009, Islamic finance is riding high. The traditional values of Islamic finance are growing in appeal for Western investors seeking a safe haven from the current financial storms. With capital market regulators in the Middle East working hard to improve the region�s regulatory system and to offer a wider range of Shariah-compliant investment vehicles, new opportunities are opening up. Arthur D. Little identifies the
markets and countries that Western financial institutions should focus on in 2009 if they do not want to miss out.

Banking on the go

Tue, 07 Apr 2009 00:00:00 +0200

The mobile phone is now one of the most important items consumers in Western markets � and increasingly in developing regions � carry with them. As some banks begin to exploit the mobile phone to offer customers services characterized by a previously unimaginable level of accessibility, convenience and personalization, a profound transition in the relationship between people and their finances is underway. This paper looks at how banks can convert this opportunity into value for their customers and shareholders.

Managing Capital Investment Programs

Mon, 06 Apr 2009 00:00:00 +0200

Effective project selection and management is not a new message � some would say that the following observations are �obvious�. However, the litany of recent over-budget and over-schedule oil and gas projects demonstrates that even the most sophisticated upstream companies are not able to �get it right� every time. Arthur D. Little believes that our lifecycle approach to capital investment helps to identify the causes for failure of projects and provides insight into increasing the effectiveness and efficiency of infrastructure capital.

Waking up in a new world

Tue, 31 Mar 2009 00:00:00 +0200

If only it was just a nightmare. Unfortunately the harsh reality is that virtually all economies and all sectors worldwide are simultaneously going through a brutal downturn. The speed and depth of the fall over the precipice have caught us all by surprise. But six months into the financial and economic crisis, let�s no longer dwell on the pain it is inflicting. Let�s rather focus on what the crisis means to business and how business can prepare for the time beyond the downturn.

Exane Report 2009 - Reviving the fixed line

Mon, 30 Mar 2009 00:00:00 +0200

This eighth edition of the annual Exane BNP Paribas-Arthur D. Little joint report on telecom operators focuses on the move by operators into content. In preparing the report, we have conducted 95 interviews with 83 companies in the telecoms-media-technology (TMT) arena operating in 17 countries.

The Burning Question

Thu, 26 Mar 2009 00:00:00 +0100

Peter Hughes, Director at Arthur D. Little�s Energy & Utilities Practice delivers a keynote speech to Stanford University�s Program on Energy and Sustainable Development. The speech discusses the reasons behind Europe�s growing reliance on imported natural gas and what is happening now as the world faces a critical moment in the development of global energy policy and regulation.

Evolution of the species

Tue, 24 Mar 2009 00:00:00 +0100

Few IT departments are in good enough shape to meet the challenges arising from the current financial crisis. Their typically complex and inflexible systems generate high costs and hinder business innovation. Optimizing the IT sourcing model can provide a solution. Arthur D. Little proposes a service integrator approach: by outsourcing IT to a service integrator, companies can focus internal resources on core competencies, escape the complexity trap and position IT for a successful future.

Cost Down, Environment Up

Thu, 19 Mar 2009 00:00:00 +0100

Organizations may be tightening their belts in current economic times, but green IT�s global momentum shows no sign of slowing down, according to the Arthur D. Little market survey in January 2009. The CIO must combine Green IT initiatives with cost improvement programs to convince executive management. Savings potentials of Sustainability IT programs are in the range of 6 to 11% of total IT costs.

The Moment of Truth

Thu, 19 Mar 2009 00:00:00 +0100

Due to consistent investment in network and new technologies, cable operators are not only increasing their market share, but have also developed a cost-effective evolution path to meet future demand. In the foreseeable future, customer experience over cable will be comparable to that of fiber access networks, despite the attractive technological features of fiber. Investors should consider investment opportunities in cable infrastructure and balance their portfolios and policymakers should take into account cable as a part of NGA platforms.

Tapping potential in Europe's card market

Mon, 16 Mar 2009 00:00:00 +0100

Cards are the fastest growing form of non-cash payment around the world, with both the number and volume of transactions growing by over 13% annually. Despite the current global economic crisis and particularly difficult conditions in the financial services industry, the European card market retains huge potential for growth - currently 80% of transactions in Europe are still made in cash. European card issuers can draw on trends in mature markets to identify the strategies they need to realize this potential. These include building more sophisticated reward programs, introducing enhanced services and developing targeted offerings for different segments.

Mobile TV - Tuning in or Switching off?

Mon, 09 Mar 2009 00:00:00 +0100

Broadcast Mobile TV is a new and complex business at the crossroads of the media/TV and broadcast/ telecommunication industries. Therefore it is not surprising that broadcast mobile TV has, in spite of about 40 million active broadcast mobile TV users worldwide, disappointed expectations on subscriber uptake and on revenue generation. However, key players continue to improve the underlying business model: They work on reducing the costs to deliver the service and on improving the user experience of mobile TV. At the same time, mobile operators increasingly realize the value of mobile TV as a contributor to support customer acquisition/ retention and to sell high value service bundles. And the next generation of broadcast mobile TV networks is already pending: At least three major consortia are working on launching mobile TV based on hybrid satellite/terrestrial networks which would cover entire world regions. In consequence, the number of broadcast mobile TV users should increase to about 140-200 million by 2011, which will generate substantial direct and indirect benefits for the media/TV and broadcast/telecommunication industry players. We therefore recommend to executives to stay tuned rather than to switch off on the mobile TV evolution.

Setting priorities in the crisis

Sat, 21 Feb 2009 00:00:00 +0100

Since 1997 Arthur D. Little has been investigating the common factors that underpin the exceptional performance of six global companies. Revisiting these companies during the current crisis, we have established that the findings we made during the recession of the early 2000s still hold true. In general, our selected companies still outperform their peers. The eight common factors identified by ADL over ten years ago still form the basis of each company's strong performance as well as supporting the overall hypothesis that, especially in turbulent times, focusing on the "basics" can make the difference between mediocre and exceptional performance.

Reshaping the Corporate Center

Fri, 20 Feb 2009 00:00:00 +0100

Despite their success in improving operational efficiency, many corporates struggle when it comes to optimizing support and back-office functions. Simply cutting cost and setting crude targets for these functions results in little more than frustration for everyone involved. Arthur D. Little uses a different approach; one that looks not just at the cost of each function but also at the value of the services it delivers. Our approach offers a far more precise assessment of what needs to be kept, what needs to be done differently and what needs to be discontinued. The result? Corporate headquarters many companies have never dared to imagine: business-focused, flexible, lean where possible, strong where necessary - a true support for the business.

Flying on tracks

Fri, 20 Feb 2009 00:00:00 +0100

Air France-KLM and Veolia, a major European airline and one of the leading private operators of rail based passenger transportation, have announced the start of a new joint business concept: the offering of TGV-style high speed rail (HSR) services under Air France brand and livery from 2010 onwards. Introducing an airline operated railway service might represent an effort of Air France to recover the significant share of travellers European airlines have lost to competing high speed rail services. This Arthur D. Little Transportation Viewpoint looks at the key implications of airlines moving into high speed rail: What is the business logic behind airlines offering their own high speed rail services? What are possible characteristics of the competition between airline rail services and incumbent rail operators? What do airlines need to do in order to set up a feasible business model for HSR operations and how can rail operates answer this challenge?

The Beginning of the End for Oil?

Wed, 18 Feb 2009 00:00:00 +0100

The consensus is that oil will resume its long-term growth trend when the world emerges from the current recession. However, there is a distinct possibility of a radical shift in the energy path the world is following and an uncertain future for oil demand.

Survival of the Fittest

Thu, 12 Feb 2009 00:00:00 +0100

After years of record growth, the European leasing market will see a projected negative growth of about minus ten per cent in 2009 and the number of leasing providers is set to decrease by up to 30 per cent over the next five years. A turbulent market environment, combined with slowing investment, reduced liquidity and cost of funds issues, all combine to create that background against which only the best companies will prosper. Which players will survive and what business model do they need to adopt in order to succeed?

Delivering the brand

Tue, 03 Feb 2009 00:00:00 +0100

Following dramatic improvements in vehicle quality and reliability over the past decade, OEMs are increasingly focusing on brand rather than product differentiation in order to compete effectively. The customer experience delivered by dealers is an important component of the total brand experience and has a direct impact on overall customer satisfaction. By adopting a structured approach to developing customer satisfaction at key touch points in the dealership, OEMs can reap substantial benefits in terms of customer retention, cross-selling and new customer acquisition.

Winning the Merger Decathlon

Tue, 13 Jan 2009 00:00:00 +0100

Just as winning the Olympic decathlon requires a combination of strength, endurance and technical skill, so mergers require organizations and individuals to excel in a broad range of disciplines. By mastering the challenges of the "merger decathlon", organizations can improve their chance of turning their next deal into a success story.

Defying Downturn through Innovation

Sat, 03 Jan 2009 00:00:00 +0100

Amid the restructuring of innovation activities that takes place in response to the recession, businesses must take care to position themselves to take advantage of the upturn when it comes. Successful innovators redirect part of the financial and personnel resources released through restructuring into growth and innovation programs. Only by simultaneously adopting a prudent approach to streamlining operations and focusing clearly on developing their technology, innovation and product portfolio will businesses be ready to grow when the economic climate improves. In fact, there has not been a better opportunity for a long time to acquire new technologies.

The BRIC Battle

Thu, 11 Dec 2008 00:00:00 +0100

With global economists predicting the emerging BRIC markets will remain the key source for growth in the crisis, a new study explains that mature market multinationals must re-evaluate their outmoded globalization philosophies or risk losing out to a new generation of ambitious, fast growing emerging market companies.

Expatriate Games

Wed, 10 Dec 2008 00:00:00 +0100

Where is the Long Term Value? In the 1970�s the Middle East saw the beginning of a dramatic rise in oil and gas exploration and production activity, with an equally dramatic growth in the expatriate community.

Sleeker by Design

Wed, 03 Dec 2008 00:00:00 +0100

A survey conducted by Arthur D. Little ranks 50 major European insurance companies on cost-efficiency and takes a closer look at the strategies adopted by these top performers to achieve their high ranking positions.

Mastering IT separation

Tue, 02 Dec 2008 00:00:00 +0100

Corporate restructuring is one aspect important for private equity carve-out strategies to increase the value of a business. De-merger projects that split up a company to increase market visibility or operational flexibility need to consider corporate restructuring, too. Since IT has evolved into a �business enabler� it comes into focus of carve-out and de-merger projects. IT redesign has proven to support corporate restructuring activities. But how to master the complex separation of IT processes and systems needed? This paper shows how IT Separation works.

Advanced Metering Management

Tue, 02 Dec 2008 00:00:00 +0100

Recent environmental and economic pressures have seen many utilities reconsidering the use of smart metering technology to end the high operational costs associated with traditional energy usage monitoring and enabling a broader range of service offerings to consumers. In its latest report, Arthur D. Little outlines how utilities providers can deploy this new monitoring technology without facing a business loss.

Six Habits of Highly Efficient Insurers

Mon, 01 Dec 2008 00:00:00 +0100

Efficiency in Europe's insurance industry has improved significantly in recent years. At first glance, these improvements might seem to be the result of high-profile programs to reduce costs and increase operating profits. However, closer inspection shows that the most efficient companies are, in fact, likely to adopt a far broader range of strategies to achieve their efficiency targets. A study by Arthur D. Little has identified six key areas that the most efficient companies focus on in order to drive down the cost of generating income from premiums.

The Future for Telecoms Suppliers - Technology Bets and Survival of the Fittest

Sun, 30 Nov 2008 00:00:00 +0100

Traditional telecom infrastructure suppliers are coming under severe pressure both from evolving operator demands and from new heavyweight competitors in the form of IT players and emerging Asian suppliers. This double pressure means that selling fixed and mobile network equipment in both developed and emerging markets with sustainable margins is becoming ever more challenging for incumbent manufacturers.

Driving Banks� Value Through M&A

Wed, 26 Nov 2008 00:00:00 +0100

The crisis in the financial markets is providing additional momentum for already increased M&A activity, with a number of sizeable institutions suddenly up for sale. How can banks manage post-merger integration successfully to realize true growth in value?

The Water Margin

Fri, 21 Nov 2008 00:00:00 +0100

With two-thirds of the world to experience water shortages by 2025, this report warns companies that it is imperative to assess their water footprint and develop a proactive response to water management or risk damaging their business performance. According to the new report, this is broken down by product/service, by value chain position and by geographic region. A proactive approach to water management assesses value drivers such as water security, regulation and expectations of stakeholders.

The Accidental Distressed Investor

Wed, 12 Nov 2008 00:00:00 +0100

As the credit and economic crisis deepens, many investors are suddenly in possession of distressed portfolios where few remedies exist to effect even partial recoveries. ADL takes a unique holistic approach of analyzing financials, cash flows, market outlook and immediate operational improvements needed to facilitate a restructuring or exit strategy that optimizes investment recovery.

Operational Performance Excellence

Thu, 06 Nov 2008 00:00:00 +0100

The financial crisis has consequences for all industry sectors. Companies need to react rapidly to offset the negative impacts of reduced market consumption and limited credit availability (credit crunch). One major approach that offers a high and sustainable improvement potential involves optimizing the value chain.

Microfinance on the Rise

Sat, 01 Nov 2008 00:00:00 +0100

Microfinance has already reached millions of households worldwide. This practice of extending small loans to very poor people for self-employment projects does not limit itself to third world countries, but can also be found increasingly in European countries. Too often lending to the financially challenged is being confused with the bad mortgage dilemma in the US. This is highly unjustified, since most microfinance institutions (MFIs) actually surpass the repayment rate achieved by traditional lending institutions and exhibit promising risk/return ratios. As a result of the unmet demand for microfinance which is estimated to stand at around $250 billion, microfinance looks set to emerge as a significant new asset class.

OEM After Sales Strategy

Wed, 29 Oct 2008 00:00:00 +0100

With sales of new cars slowing and profit margins decreasing, after sales is becoming an increasing important source of revenue for many OEMs. But they face stiff competition in this arena from new players intent on seizing a share of the after sales market.

Carbon Futures

Tue, 21 Oct 2008 00:00:00 +0200

Carbon trading can have a significant influence on the bottom line and is here to stay. Its future, however, is uncertain and is driven by emerging legislation for the period after 2012. In the face of this uncertainty, what should executives responsible for investment outcomes post-2012 be doing now to ensure they maximize competitiveness and minimize risk?

Sunken Treasure

Tue, 21 Oct 2008 00:00:00 +0200

Over the past four years revenues in the subsea oil and gas sector have been growing at an impressive rate. The next five years are expected to bring a period of consolidation and a number of challenges that could present opportunities for companies in the sector.

All at Sea

Tue, 07 Oct 2008 00:00:00 +0200

Offshore wind is clean and renewable, and can be deployed well away from public view. It is well supported by the public and governments as a way of meeting their renewables targets. However, the future of offshore wind is by no means assured. Supply constraints, logistical difficulties and technical concerns present significant obstacles to the expansion of the sector. We examine the challenges and highlight what needs to be done.

Rethinking the corporate center

Wed, 01 Oct 2008 00:00:00 +0200

Despite their success in improving operational efficiency, many financial services companies struggle when it comes to optimizing support and back-office functions. Simply cutting cost and setting crude targets for these functions results in little more than frustration for everyone involved. Arthur D. Little proposes a different approach. The result? Corporate headquarters many companies have never dared to imagine: business-focused, flexible, lean where possible, strong where necessary - a true support for the business.

Real Options for the Future Energy Mix

Tue, 23 Sep 2008 00:00:00 +0200

In the coming years, both the demand for climate-friendly energy generation and the replacement of aging conventional generation facilities will lead to large capital investments and planning efforts in the utility sector. With these massive investments ahead, the competitiveness of nearly all electricity utilities depends on meaningful ways of valuing these multi-billion euro investments.

Strategies to Turn an Economic Slump to Portfolio Companies' Advantage

Thu, 18 Sep 2008 00:00:00 +0200

In difficult economic times, large capital investments or extensive improvement projects may not be the right answer to an immediate need. Arthur D. Little has developed proven methodologies to help companies determine revenue and cost opportunities quickly and focus efforts on immediate value creation.

What Future for Biofuels?

Tue, 16 Sep 2008 00:00:00 +0200

Biofuels have gone from being the great hope for clean transport fuels of the future to being in the dock accused of causing deforestation and increases in food prices for the world�s poorest people. Against this context, the UK Gallagher Review of the indirect effects of biofuels production has delivered a sober and timely assessment of the industry and its future.

Lean

Fri, 12 Sep 2008 00:00:00 +0200

Players in virtually every industry recognize the lean approach as a powerful way to boost performance by improving cost, quality and customer service simultaneously. Central to the lean approach is its ability to mobilize people to eliminate waste, variability and inflexibility.

Stepping off the roller coaster - Net Emotions Score

Mon, 01 Sep 2008 00:00:00 +0200

Pressure to cut costs and to achieve operational excellence often pushes financial services companies to adopt a stop-start approach to actions designed to support and develop client satisfaction. The Arthur D. Little "Net Emotions Score" concept helps companies to measure and increase the strength of their business relationship with clients by aligning internal and external perceptions and comparing delivered quality with perceived quality.

Hybrid TV

Thu, 21 Aug 2008 00:00:00 +0200

Until recently, telecom operators have put their faith in IPTV to protect margins and to allow them to occupy all channels to the customer�s home. As a result, DSL operators across Europe have been rolling out CAPEX-intensive networks to provide customers with IPTV and to strengthen their position in the face of growing competition from cable companies. But new approaches are now emerging ...

Mergers & Acquisitions: Bust or Boom in CEE Telecoms?

Tue, 19 Aug 2008 00:00:00 +0200

Telecommunications transactions in CEE reached a volume of 3.9 billion Euro in 2007. But will CEE M&A activity remain at high levels in spite of the credit-crunch situation? This insight assesses three drivers for continued high transaction activity: Privatization, license tenders and a consolidation wave.

Value in Focus

Thu, 14 Aug 2008 00:00:00 +0200

This study of 51 major European banks, conducted by Arthur D. Little�s Global Financial Services Practice, aims to identify the most efficient commercial banks in Europe. Cost-efficiency gives a bank freedom to manoeuvre. Strong, free cash flow gives a bank the means to invest in new markets, products or technologies, to reward its shareholders or to channel value back to its customers. Conversely, low relative cost-efficiency limits a bank�s options in the marketplace, and makes it vulnerable in times of financial crisis.

Automotive After Sales 2015

Sat, 02 Aug 2008 00:00:00 +0200

Rapidly declining profit margins in the new car sales business together with the continuous extension of car life are making the after sales business increasingly important. At the same time, growing consolidation in the after sales market is putting OEMs� market share at risk. In a comprehensive study on the future after sales markets, Arthur D. Little has identified relevant trends and developed strategic options to help the OEMs adjusting their after sales business to meet tomorrow�s global after sales market requirements.

Five Habits of Highly Efficient Banks

Fri, 01 Aug 2008 00:00:00 +0200

If, as shareholders recognize, cost-efficiency is an indicator of a well-run bank, how can it be achieved? An Arthur D. Little survey found that Europe�s most efficient banks have important characteristics in common: very cost-conscious cultures with a focus on embracing revenue-creating costs and pragmatic key performance indicators and straight-through processes and heavy investment in IT. Flat hierarchies with short communication channels and a high degree of decentralization dominate.

Demystifying the Credit Crunch

Wed, 23 Jul 2008 00:00:00 +0200

The term �credit crunch� has entered the popular lexicon. Barely a day passes when the media is not opining on the topic. Rarely does an economic event have such a profound ripple effect on institutions and individuals throughout the world.

2013: creating a better journey

Thu, 10 Jul 2008 00:00:00 +0200

Transport is fundamental to the economy as a means of connecting people and moving goods. Years of economic growth have stretched our transport systems beyond levels where they can operate as reliably and efficiently as we demand. A joint Arthur D. Little report examines these trends and potential solutions ...

Private Equity Value Creation

Thu, 10 Jul 2008 00:00:00 +0200

The private equity industry has survived cyclical downturns, recessions and even double digit interest rates over the last three decades. As we enter a period of market uncertainty, Arthur D. Little's latest thought piece outlines the techniques used by successful private equity firms to ensure they survive a downturn by continuing to create value for investors and their portfolio companies.

Opportunity Construction China

Sat, 05 Jul 2008 00:00:00 +0200

The construction market in China, alongside the Middle East and Eastern Europe, represents one of the major growth opportunities for global construction suppliers and service providers. This growth is fuelled by the ever growing �middle segment� and forces multinationals into developing ever more innovative strategies to succeed in this competitive and aggressive marketplace.

Money's not all banks buy

Tue, 01 Jul 2008 00:00:00 +0200

Purchasing, as a rule, is not part of a bank or insurance company�s core business. As a result, financial services organizations often underestimate both the risks associated with purchasing and the advantages of managing suppliers and product groups in a systematic way. However, strategic management of suppliers can deliver considerable benefits, including a significant reduction in purchasing costs for the organization, support for the development of sustainable procurement, as well as an enhanced role for the purchasing department.

Pressure on Energy Prices

Thu, 26 Jun 2008 00:00:00 +0200

Energy utility companies across Europe are feeling huge customer and political resistance to recent and forthcoming price increases. The increases have highly visible causes. Oil, gas and coal prices have all hit record highs in recent months. Meanwhile, massive investments are needed to meet both customer and regulatory requirements

Outlook and Opportunities in the Building and Construction Industry

Tue, 24 Jun 2008 00:00:00 +0200

It has been a challenging year for companies operating in the building and construction industry, but there are plenty of bright spots amid the gloom. That was the message some 250 industry players took away from the half day conference co-hosted by Arthur D. Little and Lincoln International in New York.

Green Purchasing Power

Tue, 24 Jun 2008 00:00:00 +0200

As stakeholders become increasingly insistent that 'promises made' by the CEO become 'promises delivered', business leaders will need to extract and manage increasing innovation from suppliers as well as employees to deliver on commitment to sustainable performance.

The Challenge of Creating Lean Media

Tue, 10 Jun 2008 00:00:00 +0200

The digital revolution has made cost restructuring a strategic necessity for media companies. Many have already taken action to optimise their cost structure, but there is one area that tends to escape such measures: the editorial department. Applying cost-optimisation initiatives to this department is often seen as the equivalent of performing surgery on the DNA of the company.

Journey 2.0

Tue, 10 Jun 2008 00:00:00 +0200

Rising costs and a lack of integrated solutions encompassing operations, processes and technology are threatening revenue in the transport sector. Arthur D. Little's latest white paper, "Journey 2.0", examines how businesses can enhance revenue streams through collaborative strategies.

Design to Customer Value

Sat, 07 Jun 2008 00:00:00 +0200

"Design to Customer Value" is a cross-functional approach that simultaneously optimizes the product in terms of customer benefits and product life-cycle costs. Key elements include an analysis of customer requirements and product functions and a technical competitor benchmarking. Delivering average product cost reductions of 15-20%, the approach also improves performance, functionality and quality.

Sustainable Performance

Thu, 05 Jun 2008 00:00:00 +0200

Scratch the surface of many companies' claims on sustainable performance and what lies beneath leaves much to be desired. Research by Arthur D. Little, for example, shows that even among Nordic companies, widely regarded as among the most environmentally responsible of corporate citizens, the response to the challenge of sustainability lacks rigour.

Innovation Culture

Tue, 03 Jun 2008 00:00:00 +0200

With speculation of an economic slowdown enough to bring some organizations' R&D investment to a grinding halt, a new report released by Arthur D. Little today warns businesses that, even when times are tough, innovation capacity cannot be first place to wield the cost-cutting axe.

Winning the Retail Game

Fri, 30 May 2008 00:00:00 +0200

With cut-throat competition characterizing stagnant automotive retail markets,� high-performing dealer networks are becoming essential to OEMs' market success. Although automotive manufacturers invest heavily in developing and training their retail partners, many programs do not generate the expected results.

Sustainable Performance Delivered

Thu, 29 May 2008 00:00:00 +0200

Having established the connection between Integrity + Innovation = Sustainable Performance CEO's now need to establish how to deliver the concept. In this second paper of the series Arthur D. Little�s demonstrates I plus I in the real world going on to show how companies such as GE, Dow and Novo Nordisk are unlocking value through sustainable business.

Bridging the Talent Gap

Thu, 22 May 2008 00:00:00 +0200

Despite booming oil prices the industry is being constrained by� resource shortages in oil supply, refining capacity and talents across the sector despite a 20% increase in investments by IOC's and NOC's.

A Mobile Playground

Tue, 20 May 2008 00:00:00 +0200

Arthur D. Little predicts that in the coming years mobile advertising is poised to be the next major digital platform for brands to reach customers, and that the key telecom players need to get to this market early.

Value added Logistics

Fri, 09 May 2008 00:00:00 +0200

While innovation has always been judged as the growth engine of society, in the field of logistics its importance is still underestimated. However, a recent study by the European Logistics Association (ELA) and Arthur D. Little shows that innovation excellence in logistics does lead to significant improvement in performance.

Exzellenz in Working Capital Management

Thu, 08 May 2008 00:00:00 +0200

Arthur D. Little's interdisciplinary approach to working capital management optimizes working capital from both a financial and production/ logistics perspective. It also incorporates a top-down/ bottom-up working mode, which integrates the whole organization when identifying und implementing potential for improvement.

Middle Market Private Equity Challenge in an Economic Downturn

Wed, 26 Mar 2008 00:00:00 +0100

The credit crunch of the summer is not abating, and recent economic data indicates that the U.S. economy is very likely heading into a recession in 2008. The Middle Market Buyouts Symposium 2008 in New York on January 8 addressed the question �How can middle market private equity funds survive the economic downturn?� The consensus was that funds with care and patience in managing their investment portfolio and good management teams leading their portfolio companies should continue to do well, despite the difficult environment.

IT Rightsizing

Tue, 25 Mar 2008 00:00:00 +0100

The credit crisis, increasing energy prices and overheated stock markets are all indicators of a possible economic downturn. After several years of growth, most industries are set to face tougher conditions and will have to apply downward pressure to costs as a result. Like all budgets, IT budgets will be cut, with every IT cost item coming under intense scrutiny as businesses look for possible savings. IT 'rightsizing' is a balanced approach to cost reduction which generates sustainable savings while maintaining the strategic and operational value of IT. From our experience 20% reduction is a realistic target.

Meeting the automotive CO2 challenge

Thu, 20 Mar 2008 00:00:00 +0100

The CO2 debate is changing the automotive landscape. While technology solutions will take years to implement, changes in buying criteria and their impact on automotive sales could become a real challenge for automotive OEMs in the short term. While discussion tends to focus on national regulatory developments, we believe that the large global cities will be the real pacemakers of regulation in the short term.

In the eye of the telecom-media storm

Thu, 21 Feb 2008 00:00:00 +0100

The principal structuring trend in the European Technology, Media and Telecom (TMT) sector during the next few years will be the advent of mobile broadband. This will be the key driver of revenue growth throughout the value chain: in access, offsetting the decline in traditional telecom revenues.

Making the network count again

Wed, 13 Feb 2008 00:00:00 +0100

With competition in the mobile industry growing, mobile operators are now considering flat-rate pricing as the best way to meet customer expectations and to stimulate the take-up of mobile broadband services. Although mobile customers will appreciate the freedom to talk or be online as much as they like, operators will eventually face a very serious issue: How to meet growing capacity requirements in the network, while ARPUs are constantly decreasing? We think, it�s time to put the network access back into the pricing equation by establishing and offering distinct network based service classes for different customer groups.

Innovation for Value

Fri, 01 Feb 2008 00:00:00 +0100

Ensuring innovation investment is maximized in competitive and fast-moving businesses takes far more than just a CEO reiterating a commitment to research and development in the annual report - but is there a formula for securing increased performance per R&D dollar spent? Arthur D. Little's latest report "Innovation for Value" examines and articulates how businesses can strategically review their innovation culture and processes to create business value and long-term competitive advantage.

The role of green branding in the race to innovate world energy markets

Mon, 28 Jan 2008 00:00:00 +0100

At "Solutions for Sustainability", the 12th Annual Conference of the German-British Forum held in London on 11th and 12th October 2007, David Lyon, Senior Manager, Sustainability and Risk, Arthur D. Little UK, emphasized the role of green branding. He comments: "We are seeing consumer-driven market innovation. With green electricity tariffs, some consumers are willing to pay an ecological premium. Green branding plays an increasingly important role - especially when public policy is increasingly supportive of new decentralized generation technologies." For more information on the 2007 conference visit: For articles on sustainability by David Lyon and other ADL consultants visit our website.

The Carbon Margin

Thu, 13 Dec 2007 00:00:00 +0100

The Carbon Margin urges all business sectors to view emerging carbon constraints as an opportunity to develop new profit streams and gain competitive advantage. The report provides a guide to the specific risks and opportunities carbon exposure presents for each major industry sector, and explains how a profitable carbon strategy is conceived: through a careful balancing of technological innovations with customer-based solutions.

The World is becoming flat ...

Thu, 06 Dec 2007 00:00:00 +0100

Flat fee offerings are emerging for voice, data and for multimedia services in many countries around the world. As flat fee offers become increasingly aggressive, it can be already observed that they cause severe quality problems for all customers consuming voice, data or multimedia services. Therefore, any pricing move is not merely a pricing move but must be accompanied by means which go beyond a cost reduction strategy. In this article we will highlight the main infrastructure issues for a mobile operator and how they could be overcome.

Low Carbon London

Tue, 04 Dec 2007 01:00:00 +0100

Now is the time for action - and London leads the way! A Victorian terraced home with a twist, No.1 Lower Carbon Drive, opened on the 4th of December to provide Londoners with examples of ways in which they can alter their homes and domestic lifestyles to reduce the city�s CO2 emissions. Management consultancy Arthur D. Little worked with the London Development Agency (LDA) to develop the model home as part of the mayor�s Climate Change Action Plan. The Plan aims to encourage all Londoners and businesses to help in reducing the capital�s carbon dioxide emissions to 60 per cent below 1990 levels by 2025.

Innovation Excellence in Logistics

Thu, 22 Nov 2007 00:00:00 +0100

Innovation has always been perceived as a catalyst for growth - in the field of logistics, the importance of innovation is still underestimated and under exploited.� However, the current fluid market place offers many opportunities to provide innovative logistics services, coupled with advances in technology, to boost efficiency and create real value.� This study was conducted by the European Logistics Association (ELA) together with the international management consultancy Arthur D. Little and covers more than 100 logistics service providers and shippers across 15 European countries.

Broadband market development in Germany

Thu, 01 Nov 2007 00:00:00 +0100

In the past Germany was repeatedly criticized because of what appeared to be its underdeveloped Internet market when the number of broadband connections per household was compared with other industrialized countries. On this basis, the EU commission in particular exerted pressure on those responsible in government to strengthen the sector-specific regulation in this market and to intervene in market behaviour. The report shows that on basis of a one-dimensional view alone such conclusions are not justified and a broader spectrum of indicators shows that Germany holds a good position in the market for broadband Internet access when compared to other European countries.

Strong growth in power generation

Mon, 01 Oct 2007 00:00:00 +0200

This market research note presents Arthur D. Little�s recent forecasts for global expenditure in four key energy & process industries for capital expenditure, maintenance and spending on consumable products.

New Report: integrity + innovation = performance

Wed, 01 Aug 2007 17:12:21 +0200

The Sustainability Value Formula examines how leading companies are building long-term sustainable performance through an intense focus on integrity and innovation. This paper brings clarity to the issues of where and how corporate responsibility delivers value to the firm � issues that until now have been clouded by much confusion and ambiguity. We preview research which indicates that the key ingredients to long-term sustainable performance are the fundamental value drivers: integrity and innovation.

Telecom Operators

Thu, 10 May 2007 00:00:00 +0200

More than ever, European telecom operators must juggle between shrinking revenues in their traditional businesses on the one hand, and opportunities to capture growth in attractive new markets on the other, driven by the development of fixed and mobile broadband.

HSPA and mobile WiMax for Mobile Broadband Wireless Access

Thu, 03 May 2007 00:00:00 +0200

The advent of mobile broadband access is accompanied by significant uncertainties over the likely future successes of the new technology choices that are becoming available. In particular, the relative commercial and technical advantages and disadvantages of operating HSPA vs. mobile WiMax remain unresolved. Operators, regulators and vendors are developing their plans for the future in a cloud of hype, biased comparisons, and easily misinterpreted statistics.

Improving satisfaction throughout the customer life-cycle

Thu, 01 Mar 2007 00:00:00 +0100

It is becoming ever more crucial for companies not only to keep customers happy but to keep the right customers happy. But how can they measure the value of customers through the whole customer life-cycle? In this article the authors explain the methodology developed by Arthur D. Little that helps companies to measure satisfaction levels and translate the results into actions with sustainable results.

Fitting China into your global footprint

Thu, 01 Mar 2007 00:00:00 +0100

China is no longer just a low-cost country suited to cheap mass production. It has now also developed the capabilities to serve as an R&D base. Companies must therefore design a new strategy fitting China into their global manufacturing and R&D footprint. This article outlines the key principles and benefits of a "China fit" logic and explains how to apply them in a step-by-step approach.

The fit between business strategy and R&D organisation

Thu, 01 Mar 2007 00:00:00 +0100

Corporations constantly struggle to get the right fit in their R&D organisation. It should neither be too global nor too focused, and at the same time it must fit into the company�s overall strategy. It�s a combination that can be hard for managers to come to grips with. This article shares the insights from a study undertaken by Arthur D. Little of the link between business strategy and R&D organisation and shows through a concrete example how these insights can be applied.

Delocalization of R&D

Thu, 01 Mar 2007 00:00:00 +0100

Discussion of the development footprint is omnipresent in western media. In our survey which we have conducted across 54 global companies in the Aerospace & Defense, Automotive, Manufacturing and Electronics industry we found out that most of the R&D headcount growth in the next five years (~15%) will occur off-shore. We investigated the off-shore destinations, the rationales behind, and the critical success factors.

Web 2.0

Tue, 05 Dec 2006 00:00:00 +0100

Arthur D. Little has led a number of Web 2.0 projects. One of the lessons learned out of these projects is that Web 2.0 is not only gaining speed in the US but also in Europe. Recent deals, such as the acquistion of MySpace by the News corporation, the acquisition of myvideo.de by ProSiebenSat1, the partnership between Soonr and Swisscom or the success of Jajah.at, are just a few examples of the rising importance of new Web applications all over the world. In our white paper, we show the most important trends driving Web applications, detail our view of Web 2.0, analyse the underlying business models and show the implications of the "New Web" on the TIME industries.

Coping with pressure in European air traffic control

Mon, 16 Oct 2006 00:00:00 +0200

Over the last decade, air traffic in Europe has grown by more than 50%. Europe now has close to 8.5 million flights per year and up to 28,000 flights on busy days. More planes carrying more people and more goods to more destinations are exerting ever-increasing pressure on Europe�s Air Navigation Service Providers (ANSPs) to handle the traffic safely and without delays. This report highlights the findings from a study of developments in the European Air Navigation Services landscape to see where the industry stands today and how the ANSPs are reacting to the pressures.

Broadband Vision 2011

Wed, 27 Sep 2006 00:00:00 +0200

In our third report on the Broadband industry, we have assessed three basic industry scenarios, namely operator dominance, shift of value towards internet companies and sponsored environments to provide a broad understanding of the Broadband Vision 2011. The report also highlights evolution of services like high-end video services, implied bandwidth requirements and provides a comparison between different broadband access technologies.

Making new product launch decisions in an uncertain environment

Fri, 01 Sep 2006 00:00:00 +0200

Making new product launch decisions, such as where and in which sequence, is becoming ever trickier, as the environment into which the product will be launched changes constantly. In this article, using a new medicine as a case example, the authors examine the problem and offer a pragmatic and effective solution.

The Social and Economic Impact of Publicly Funded Research in 35 Participating Universities

Fri, 01 Sep 2006 00:00:00 +0200

Arthur D. Little was commissioned by 35 universities to conduct a study of the impact of research in their institutions - primarily from the 'post-92' group. The study showed that such institutions play a key part in sustaining what England's Higher Education Funding Council calls "A dynamic and internationally competitive research sector".

How to Make Belgium a Hotspot for Innovation

Tue, 01 Aug 2006 00:00:00 +0200

The Federation of Enterprises in Belgium and Arthur D. Little jointly undertook a study to measure the satisfaction of managers of companies in Belgium with the boundary conditions that influence the innovation capacity of their company. The study focused on the boundary conditions set by the public authorities, such as taxes, financial incentives, the labor market, education, environmental regulations, permits, and technology transfer from university research.

Optimal results

Fri, 02 Jun 2006 00:00:00 +0200

Effective portfolio management has become more important than ever for energy companies. It can reduce costs and improve earnings significantly and the current volatile price environment and requirements for risk management makes it even more compelling. Stringent regulation, coupled with increasingly complex markets, also means portfolio management is no longer a nice-to-have option, but an essential working practice.

"Knowledge is the only resource that increases through use"

Thu, 01 Jun 2006 00:00:00 +0200

As Arthur D. Little celebrates its 120th anniversary we reprint snapshots from a selection of Prism articles from the Nineties to see how the concepts and thoughts presented back then fare in today�s light.

Challenges & success factors for multinational automotive suppliers in China

Mon, 22 May 2006 00:00:00 +0200

China is the most important emerging market for the Automotive industry - but also a market, where many suppliers currently make no money. This Arthur D. Little study illustrates the current situation of foreign, "multinational", suppliers in the Chinese automotive market. It shows areas of improvement and levers to improve operations of foreign companies in the Chinese market within a mid-term timescale and concludes with a set of specific recommendations.

Profitable Growth through Service

Fri, 12 May 2006 00:00:00 +0200

Innovative service strategies offer a large potential for increasing growth and profitability in the investment goods industries as in these mature markets competitive pressure is rising continuously and differentiation through physical products becomes more and more difficult. In this situation service strategies offer an opportunity for good revenue and profit growth - but: Which services should be offered? What are the strategies of and methods applied by successful companies? How do these companies develop new services? In this paper we give a summary of the major results of our 'Service Innovation Study' and additionally develop five major levers to achieve growth in the service business.

Site Selection in China

Mon, 08 May 2006 00:00:00 +0200

Driven by the need of global presence on the one hand and cost efficiency on the other hand the decision for setting up a manufacturing site in China needs to be prepared and carried out by respecting all the necessary parameters. With this paper we give upfront answers to the following questions: Why the decision is important? What is a regular selection process? What are the major criteria to be considered and how to prioritize them? What are the clues in dealing with Chinese officials?

The Real Issues in a New Nuclear Programme

Tue, 11 Apr 2006 00:00:00 +0200

The public may have the impression that any �new nuclear power� decision in the Energy Review is a simple yes / no. But any decision by the Government in favour must say how. A simple �yes� from the Government will not persuade the private sector to finance and build a nuclear power programme.

Telecom Operators: Facing off on Convergence

Mon, 27 Mar 2006 00:00:00 +0200

The white paper is an update of last year's study "More effort required" and is based on a survey conducted by Arthur D. Little and Exane BNP Paribas of selected industry experts, such as telecommunications operators, suppliers, regulators and content aggregators in Europe. The report highlights fixed-mobile convergence and related strategic options for telecom operators.

Mobilizing Enterprise

Wed, 01 Mar 2006 00:00:00 +0100

Mobile Enterprise Solutions have reached a development stage in which they can bring considerable benefits to companies. Arthur D. Little and the communications solutions provider, Ericsson, recently conducted a joint survey of current trends in Mobile Enterprise Solutions. The study found that Mobile Enterprise enables a company to realize significant cost savings, improve customer and employee satisfaction, and increase employee flexibility, and thus flexibility of the entire company.

Deregulation of the Telecom Sector and its Impact on the Overall Economy

Wed, 25 Jan 2006 00:00:00 +0100

Deregulation is being discussed in many countries as a means to provide incentives for investments into new infrastructure. This includes the EU, where deregulation is likely to be brought forward as one aspect of the forthcoming review of the EU regulatory framework for electronic communications and services. In its analysis, Arthur D. Little assesses deregulation and its impact on telecommunications market performance and the overall economic development. The impact of deregulation is critical, especially in terms of the current debate in many countries about whether or not investments into new infrastructure, such as fibre to the home or to the curb, should be subject to regulation.

Commercial Vehicle Trend Study Towards 2015

Sun, 15 Jan 2006 00:00:00 +0100

While numerous studies have analysed developments in the passenger car industry, the heavy-duty commercial vehicle industry has largely remained a blind spot. That is why Arthur D. Little decided to conduct a technology trend study on the future of trucks. After intensive desk research and interviews with fleet managers across Europe, we elaborated hypotheses on several issues which we then tested in about 30 interviews with key decisionmakers at all European truck OEMs and selected first-tier suppliers.

Government and transport sector urged to change attitudes of travelling public

Sun, 01 Jan 2006 00:00:00 +0100

Arthur D. Little and Cambridge Consultants hosted the Intelligent Journey workshop at Castle Ashby in Northampton. Decision makers, opinion formers and experts from the whole spectrum of the transport industry came together to explore how the intelligent journey jigsaw is best pieced together. The summary of the findings from this session have been published in 'The Intelligent Journey - Putting the Jigsaw Together'. The report looks at what the travelling public really want; the value chain and the role of central Government; seven concepts that the group thought necessary if the Intelligent Journey is to be sucessfully implimented; and what part new technologies will play.

M-Payments Making Inroads

Mon, 19 Dec 2005 00:00:00 +0100

Arthur D. Little's Global M-Payment Update 2005� M-Payments Making Inroads is an update to last year's Global M-Payment Report 2004. The purpose is to provide an update on the events in the m-commerce/ m-payment sector over the last year, and to highlight developments in particular countries. For companies already active in m-payments, it provides an overview of current trends and a review of the activities of companies in other markets. For companies currently considering the introduction of m-payment services, it will provide ideas and guidelines on where to begin and lessons learned from other markets.

Collaborative Engineering in the Automotive Industry

Fri, 02 Dec 2005 00:00:00 +0100

Collaborative Engineering covers all activities between company organizations and partners in the course of joint development projects based on a defined reference process model and including IT support. With this study Arthur D. Little and our study partner ProSTEP AG discuss the issue between OEMs and suppliers in the automobile industry. The content of this empiric benchmarking study covers the following issues: organization, processes, partners, projects and systems in Collaborative Engineering.

Increasing the Efficiency of your Automotive Software Development

Sat, 12 Nov 2005 00:00:00 +0100

This Arthur D. Little study covers the growing importance of software in the performance and differentiation of electronics systems. Our OEM and Tier 1 clients have increasingly asked us to focus on helping them improve the efficiency of their embedded software development processes and this study to follow our 2002 automotive electronics study and focussed on the following objectives: to understand the key challenges in embedded software development faced by both automotive manufacturers and suppliers and secondly to identify the most important efficiency improvement levers at their disposal and the ways to operate them: "Automation", "Re-Use and standardization" and "Delocalization of Development".

Automotive Power Electronics 2015

Wed, 12 Oct 2005 00:00:00 +0200

This Arthur D. Little study deals especially with the future use of power electronics in the automotive technology. Beginning with an overview of the power electronics market and then developing the five mega-trends in the automobile electronics which will drastically influence the motor industry, we have detailed the role of power electronics in the automotive components: engine and auxiliary units, alternative propulsion systems (hybrids, fuel cell), transmission systems, driving dynamics, power management, comfort systems and the electronic architecture in general.

Strategic Planning for Telecom Companies 2005

Sat, 08 Oct 2005 00:00:00 +0200

Strategic Planning is a key factor for a company's growth and success, but its importance is often neglected and only half-heartedly executed. However, in today's competitive and unpredictable environment with fast-changing customer needs, it is more important than ever to proactively and professionally plan where the company is heading, to ensure long-term success and maximise shareholder value creation. Arthur D. Little has conducted a global study to analyse the various approaches to planning strategies in the telecoms industry. 24 high profile interviews were conducted in 20 countries such as the USA, Germany, UK, South Korea and Japan� with 18 incumbent operators participating in this comprehensive study which provides a global and in-depth overview of current planning techniques, best practices and lessons learned.

The Innovation High Ground

Thu, 21 Jul 2005 00:00:00 +0200

This report examines how leading companies are using sustainability-driven innovation to win customers for the future. Arthur D. Little collaborated with Hedstrom Associates to survey 40 technology companies in Europe, the US and Japan to see how they are creating new market space, products, services or processes driven by social, environmental or sustainability issues.

Arthur D. Little Global Broadband Report Update 2005 "Growth Fuels Disruption"

Sun, 10 Jul 2005 00:00:00 +0200

Based on interviews carried out in 22 countries and proprietary research, the Broadband Report offers perspectives on the evolution towards profitable Broadband and potential courses of action for all industry players. In the Arthur D. Little Broadband Update 2005, we focus on three main segments of the Broadband industry: content and applications, network and access, and devices. We also analyse key trends shaping the future of the Broadband access industry itself and having a significant impact on other related industries, such as entertainment (TV), telecommunications (VoIP) and electronics (home gateways).

A Director's Guide to Corporate Responsibility Reporting

Fri, 01 Jul 2005 00:00:00 +0200

This guide was compiled by a team comprising Arthur D Little, Business in the Community, Camelot and HBOS. The guide is designed to help directors and senior managers consider how best to develop an effective reporting strategy for corporate responsibility (CR). It helps directors and senior managers understand their current CR reporting strategy and the key issues they need to consider in order to deliver greater value to their business and those they are reporting to.

Beyond Voice: A Survey of Voice-Enhanced Services

Tue, 28 Jun 2005 00:00:00 +0200

Arthur D. Little and VMA, the International Association for Enhanced Voice Services, have conducted a pan-European survey on voice enhanced services offered by operators. The objectives of the survey were to assess the availability of features and services in the various European markets, measure adoption differences in the various countries, and assess the impact on both ARPU and subscribers' loyalty.

A User�s Guide to Successful M&As

Wed, 01 Jun 2005 00:00:00 +0200

The global number of mergers and acquisitions has rebounded strongly since 2004. Many top executives are wondering whether it�s worth getting back into M&A as a tool for growth - and if so what best-practice maximises the chances of success. As Vantrappen and Kilefors explore in their article, not all mergers and acquisitions make sense. They provide a summary of what academia has to say, the steps to success and what executives need to do to make the best from the complicated world of M&A.

The Staying Power of Europe's Chemical Industry

Mon, 02 May 2005 00:00:00 +0200

Multinationals are moving hundreds of manufacturing plants to developing countries. They are abandoning the European and American continents, considered the most expensive places to manufacture goods, and transferring thousands of manufacturing jobs to 'low-cost' locations. Foreign Direct Investment (FDI) figures from UNCTAD confirm this trend. Asia, for example, accounted for 15 percent of worldwide FDI inflows in 2002, up from 10 percent in 2000. China, in particular, has seen a spectacular rise: its share of worldwide FDI inflows shot up from 1 percent in 1990 to 3 percent in 2000 and 8 percent in 2002.

Innovation Excellence Study 2005

Sun, 01 May 2005 00:00:00 +0200

How leading companies are using innovation matters, and firms realize it... As a number one priority, companies worldwide are targeting the huge untapped potential to improve profit growth through innovation management. This is concluded in a global study, which focuses on how companies worldwide improve profitability and growth through effective innovation management. According to the study, innovation excellence can boost profit (EBIT) margins by 4 percentage points from 15 to 19%. However companies struggle to get innovation management right. The 25% best innovators are still getting 10 times more output (new products, services etc) than the 25% worst innovators! This study gives a clear insight in what the top 25% actually do, to achieve their superior performance.

Business Case for Corporate Responsibility

Mon, 01 Dec 2003 00:00:00 +0100

In 2003, Arthur D. Little collaborated with Business in the Community to produce a concise report on current thinking on the business case for corporate responsibility, arguing that specific corporate responsibility initiatives and programmes require specific business cases. This report provides some generic arguments to engage decision-makers in the value of corporate responsibility and has proved to be extremely useful for companies just starting to develop effective corporate responsibility strategy.

Speaking the same language

Tue, 03 Jun 2003 00:00:00 +0200

Investors and companies are still not having a meaningful dialogue about the business value of corporate responsibility. But there is a strong desire to change this and to find agreement on the best way forward. This report was produced in 2003 in partnership with the UK Social Investment Forum and Business in the Community. It explores the relationships between the investment community and companies and provides a map of the SRI (Sustainable and Responsible Investment) community.

Profits from poverty

Wed, 01 Jan 2003 00:00:00 +0100

Some 4 billion people - approximately two-thirds of the world's population - live on less than $1000 a year. They outnumber the rich, or at least those earning $10,000 or more, by a factor of eight to one. Though they are individually cash poor, as a group they constitute a significant target for business. Making profits from poverty may make good financial sense, but is it ethically acceptable? This document summarises discussions from one of Arthur D. Little's 'Naked Lunches' designed to strip sustainability issues down to their bare essentials. It illustrates that there is a need for businesses to sell to the poor and identifies how a number of companies target these communities using a variety of strategies for their own commercial benefit, but also to improve the quality of life of the poor.

Corporate Responsibility in the Food Industry

Thu, 01 Aug 2002 00:00:00 +0200

Food is a global industry, led by multinational corporations. Brand-labelled, processed foods dominate the market and the majority of profits are made from value-added industrial-scale production and distribution, rather than primary crop-growing and animal husbandry. Within this context, Arthur D. Little held a 'Naked Lunch' to examine the role of the food company, and in particular where their corporate responsibilities should begin and end.