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Next-Generation Product Cost Management

Next-Generation Product Cost Management

A holistic and networked approach to cost-efficient products beyond one-time efforts

Companies in the manufacturing industry today have to face a variety of challenges emerging from volatile market environments and increasing competitive pressure. Product cost management plays an increasing role in sustaining profitability and competitiveness. The Arthur D. Little approach comprises a comprehensive guideline on how to align the organization with framework requirements, how to define roles and responsibilities therein, and how reporting and communication should be managed within the product development process.

Released: December 2014

Download File ADL_Insight_2014_NextGenProdCostMgmt.pdf (.PDF, 187 Kb)

Digitization: Do or Die!

Digitization: Do or Die!

Arthur D. Little EU5 Media Flow of Funds 2014

The Media & Entertainment sector in Germany, France, Italy, Spain and the United Kingdom (“EU5”) is going through a massive digital transformation which creates a complex and volatile environment in particular for traditional players. With its unique Media Flow of Funds methodology Arthur D. Little provides insight into the speed and main beneficiaries of this transformation.

The objective of this report is to enable media corporations to identify opportunities for vertical or horizontal integration, as well as to guide portfolio optimizations and go to market strategy. Financial investors will be able to identify the most attractive market segments and acquisition targets. Policy makers can identify areas where excessive value capture is leading to economic imbalances during the transformation. Academia can build on a strong base of data and a framework, which can be used to deepen research into the transformation of individual segments of the media industry.

Released: December 2014

Download File ADL_MediaFlowOfFunds.pdf (.PDF, 4.1 MB)

Managed Services

Managed Services

A new Telecom operating model to extract value in B2B

The global market for Managed Services is expected to grow from USD 160 billion in 2014 to USD 286 billion in 2019. As such, while growth prospects in traditional connectivity are limited, Managed Services represent a very attractive alternative for Telecom operators. We believe that Telecom companies remain best positioned to play a major role in Managed Services as they possess all the capabilities and processes to manage their networks and assets. Thus, Managed Services could represent a natural extension to their existing capabilities. However, providing Managed Services to customers brings its own set of challenges. The required capabilities, both for go-to-market and for designing service delivery, represent a significant departure from the traditional best-effort model operators typically deploy to their customers. In order to succeed in Managed Services, Telecom operators must open their internal operating models to customers. This requires seamless collaboration between commercial, technical and operational units. For many Telecoms this means an in-depth transformation of the mental model currently at work.

Released: December 2014

Download File Managed_Services_Opportunity_for__Telcos.pdf (.PDF, 1.5 MB)

Global open innovation survey (French)

Global open innovation survey

Results & for thoughts

In April 2014, MEDEF launched an initiative dedicated to promoting Open Innovation in France in conjunction with Arthur D. Little and Bluenove. One of the first initiatives of the Committee was to develop an analysis of the French enterprise maturity level in the Open Innovation domain.  On November 26, 2014, the results of a global survey were presented during a conference organized by MEDEF on the Open Innovation and Collective Intelligence theme. Many speakers from large and medium-sized French companies participated. Following the conference, several dimensions will be developed in 2015 to propose pragmatic solutions for overcoming the roadblocks to Open Innovation that were identified in the study.

Released: November 2014

http://www.adlittle.fr/reports_fr.html?&no_cache=1&view=763

Agility for Successful Supply Chains

Agility for Successful Supply Chains

Transformation to an Agile Production System to Meet the Challenges of Tomorrow

Most manufacturing companies are facing volatile and unpredictable demand due to trends such as increased global competition, shorter business cycles and broader product ranges. To survive in this competitive and fast-changing environment, it is necessary to improve flexibility and become truly agile. The required flexibility levels have to consider volume fluctuations, product mix fluctuations and customer lead time requirements. Tools and strategies that enable the supply chain to meet these requirements, without compromising on the unit cost, must be implemented.

Released: November 2014

Download File ADL_2014_Agility_for_Successful_Manufacturing_Supply_Chains.pdf (.PDF, 745 Kb)

Big Data in Procurement

Big Data in Procurement

Unlocking Big Value in better sourcing, process efficiency, and agility of procurement

The terms "Big Data" and "Advanced Analytics" have become buzzwords in many business fields. For procurement organizations, Big Data can deliver significant business value by uncovering previously unknown interrelations among supplier and economic data. This paper discusses potential benefits from applying Advanced Analytics methods to procurement and offers a practical prototyping and implementation approach.

Released: November 2014

Download File ADL_2014_Big_Data_in_Procurement.pdf (.PDF, 90 Kb)

New report from Arthur D. Little Future of Urban Mobility Lab

New report from Arthur D. Little Future of Urban Mobility Lab

Strategic Directions and Ecosystems to Address China’s Urban Mobility Challenges

As a global management consultancy llinking strategy, innovation and transformation, Arthur D. Little aims to help its clients succeed in this “new world of innovation.” The Future of Urban Mobility (FUM) Lab is our contribution to tackling the urban mobility challenge. With its FUM studies, Arthur D. Little aims to support cities and nations in shaping the extended mobility ecosystems of tomorrow and facilitate an open dialogue between urban mobility stakeholders.

January 2014 saw Arthur D. Little release the second version of the “Future of Urban Mobility” study, including an updated version of the Urban Mobility Index. In this study, Arthur D. Little highlighted what was holding cities back, and, together with its partner, the UITP – the International Association of Public Transport – identified strategic directions and imperatives for cities to consider when defining sustainable urban mobility policies and strategies.

This new report, “Strategic Directions and Ecosystems to Address China’s Urban Mobility Challenges”, was released for the 2014 edition of the Michelin Challenge Bibendum (November 10th–14th 2014, Chengdu) of which Arthur D. Little is knowledge partner. It summarizes some of the key insights from the “Future of Urban Mobility 2.0” study, and puts them in perspective by looking into specific challenges and opportunities within Greater China.

Released: November 2014

Download File Report_The_Future_of_Urban_Mobility_2.0_Challenges_China.pdf (.PDF, 4.5 MB)

AIM for Risk Management

AIM for Risk Management

Using Asset Information Data to Dramatically Transform Risk Management

In the future the changing risk profile of a business will be used as a tool in day to day management. The steady increase in data available on companies’ assets (both tangible and intangible) presents an opportunity for delivering this through the integration of big data with risk and opportunity management systems.  This paper discusses the benefits and the need for businesses to change both asset information and risk management systems so as to grasp them.

Released: November 2014

Download File ADL_2014_AIM_for_Risk_Management.pdf (.PDF, 1.1 MB)

Creating the Optimal R&D Organization

Creating the Optimal R&D Organization

Designing R&D organizational structures, processes and governance to enhance business value

Driven by the need to respond to global hyper-competition and the increasing clock speed of technological change, companies are relying heavily on their R&D functions to accelerate innovation whilst maintaining tight budgets. However organizational structures for R&D in large international companies are often sub-optimal, and act as a major barrier to performance improvement. From our extensive work with the R&D functions of global companies we have identified 8 imperatives to ensure a successful transformation across the three dimensions Structure, Governance and Process.

Released: October 2014

Download File ADL_2014_Creating_the_optimal_RoD_organization_01.pdf (.PDF, 1.1 MB)

TowerCo MNOs: a win-win opportunity?

TowerCo MNOs: a win-win opportunity?

A practical business case framework for tower price negotiation

Media and TLC Operators look at tower deals as a source of cash in response to increasing competition, decreasing prices, high debt positions and increasing Capex requirements. From its experience with TowerCo deals, Arthur D. Little describes four fundamental variables that shape a deal, presents a use case with sensitivity analysis and offers further considerations.

Released: October 2014

Download File ADL_2014_TowerCo-MNOs_a-Win-Win-Opportunity.pdf (.PDF, 112 Kb)