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UK | Outsource Magazine | 11. Mai 2015

Breakthrough innovation: enhancing efforts and creating competitive advantage

Recently Arthur D. Little conducted a survey of over 80 large organizations to explore best practices for how to deliver a consistent pipeline of breakthrough (or radical) innovations – meaning radically new products, performance features, business models or market space. The results were both expected and unexpected, and yielded a lot of valuable insight. In this article, Ben Thuriaux- Alemán and Richard Eagar of Arthur D. Little, explain why it is increasingly important for companies to be able to deliver constant breakthrough innovation in order to respond to emerging competition, disruptions to core business, and increasing customer power.

Germany | VDI Nachrichten | 08. Mai 2015

Technologically out of the game

The European nuclear power industry is suffering hardship. Industry leaders such as French company Areva faced serious financial losses in 2014. The German withdrawal from the nuclear energy program is one aspect of the current crisis. Michael Kruse, leader of the Arthur D. Little Energy Practice, points out that demolition and disposal are the main future topics of the nuclear industry in Germany. Those fields are still lucrative, as they represent a market volume of more than €120 billion. Experts highlight that German companies are not going to be part of the global nuclear mainstream, and therefore will not benefit much from the challenges ahead. Kruse believes that the German nuclear industry faces two main problems: Over-aging of experts and lack of young nucleonics experts. With those issues it will hardly be possible for local enterprises to play major roles in the global nuclear security business of the future. The leading technological position may soon be lost.

Austria | Die Presse | 04. Mai 2015

And tomorrow humans won’t be necessary anymore

Experts predict that the next industrial revolution is at the gates. Adaptive and highly efficient computers will change the economy. Ansgar Schlautmann, Associate Director of Arthur D. Little, explains that industry 4.0 (smart production) means that not only will particular machines be connected, but also all parts of the supply chain. Currently new technologies are only widespread among global players such as VW and Apple, which have the capital to implement new solutions. The situation in Austria is more complicated because the country is dominated by medium-sized businesses. A survey by Festo 200 shows that 55% of Austrian entrepreneurs are not even familiar with the ideas of industry 4.0. Schlautmann points out that the new connected and smart technologies will change job descriptions significantly in the future. Therefore, it is important to adapt to the new economic trends.

Austria | Niederösterreichische Nachrichten | 30. April 2015

Ninety-four percent of entrepreneurs demand broadband deployment

The University of Applied Sciences in Wieselburg has published a survey that examines entrepreneurs’ satisfaction with their Internet offerings. The scientists found that more than three-quarters of 1,000 enterprises dealt with Internet speeds of less than 17 Mbit/second. More than 50% of these entrepreneurs already required speeds of 50 Mbit/second. Ninety-five percent demanded deployment of new broadband technology, and 90% asked for faster connection within the next three years. The study shows that Austrian companies face a big gap between requirements and reality. An Arthur D. Little study pointed out that an increase in broadband technology can lead to economic growth of around 1%. That is why Austrian economic organizations claim that further extensions of networks are an urgent necessity to keep Lower Austria an attractive location.

UK | European Communications | 24. April 2015

How to extract maximum value from big data initiatives

Big Data is an invaluable strategic lever for telecom operators to reverse the revenue decline trend affecting markets worldwide. The emergence of Big Data technologies enables telcos to capture, analyze and monetize enormous volumes of customer information and interaction data across multiple touchpoints in real time. This provides them with a unique strategic advantage to improve the performance of their core business by offering more targeted products and services and differentiated customer experience. The most valuable customer insight can be monetized, and an array of enabling data and business intelligence services can be offered to companies in a range of industries. In this article, a guest feature written by Lokesh Dadhich and Vikram Gupta at Arthur D. Little, the authors highlight how to extract maximum value from big data initiatives.

Austria | Wirtschaftsblatt | 17. April 2015

Zalando adapts to the Austrian market

German e-commerce company Zalando performed well in the first months of 2015. A Zalando spokesman commented that the company was going to adapt to the different local markets to improve its internationalization efforts. Customers across Europe have different preferences, and therefore require varied marketing, payment and sales strategies. Lars Riegel, Arthur D. Little retail expert, points out that Zalando is the number-one e-commerce company in the fashion segment in Austria. Austria is a more difficult e-commerce market than Germany because Austrians put less trust in online offerings and payment methods. Nevertheless, the adapted campaigns have been successful. Riegel explains that the free return of goods is a particularly competitive advantage compared to other companies in the market. He emphasizes that Zalando’s success is related to the broad product range and cheap prices. The company’s success in Austria was the kick-off for a widespread internationalization strategy. Zalando is already operating in 13 European markets.

UK | Gas International | 15. April 2015

Beating the Dealer

The factor of uncertainty is usually included by adding lump-sum contingencies or calculating multiple scenarios using different assumptions. But even with risk-adjusted metrics, the possibility of neglecting huge upside and downside potential is still there. This might crucially affect the final decision, especially in changing and complex environments such as the energy sector. In this article, a guest feature written by Evgeni Kochman, Fabian Sempf and Michael Kruse at Arthur D. Little, the authors discuss a strong but pragmatic approach to the assessment of risks associated with business decisions. The approach is illustrated using a real case example in which a business case for a large-scale power plant was developed.

UK | | 13. April 2015

Arthur D. Little encourages development of “breakthrough innovation”

Finding the right approach for effective serial breakthrough (radical) Innovation has become the “holy grail” for today’s companies. However, a survey conducted by Arthur D. Little of over 80 large organizations shows that there is still a long way to go before companies’ efforts match their aspirations. In this article, a guest feature written by Fredrik Härenstam, Ben Thuriaux-Alemán and Richard Eagar at Arthur D. Little, the authors discuss some important key factors for success.

Germany | | 09. April 2015

The cloud – an American business?

Arthur D. Little recently published an analysis of the global cloud market, and the findings are disillusioning for European competitors. Twenty-five American companies control 60% of the global cloud market, whereas around 100 competitors in Europe share approximately one-quarter of the global cloud traffic. Nevertheless, the growing market is still attracting new players. Arthur D. Little experts consider the huge competition a problem for these players because it makes it almost impossible for them to develop the clout necessary to survive in the global market – this is the case for many European carriers. They will have to find new paths, such as alliances with other players. Arthur D. Little experts recommend that instead of copying the big players, these smaller carriers offer more specialized services to avoid economic competition with the giants of the Internet.

Germany | Handelsblatt | 08. April 2015

Germany – dragging digitalization

Digital health has been a well-promoted vision for several years now. But current studies show that the ambitious plans seem to be stuck. Only 3.1% of German start-ups are in the e-health sector. Less than one-quarter of German doctors actually use electronic sharing tools – the average in the EU is 36%. Globally, Germany’s health system ranks number five among the most expensive systems. The new methods and technologies may offer a chance to decrease the spending. Experts demand that the government put more effort into extending digitalization in Germany. Therefore, nationwide laws and rules are required. However, there is still little doubt that e-health and medtech are important future markets. Arthur D. Little experts expect a market size of $233bn in 2020. For companies managing to develop innovative and popular new solutions, there is an abundance of chances.