disruptive technologies: how analytics, digital and cloud are coupling technology to strategy...

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T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .

TBR’s Management Consulting Benchmark

Research Highlights and Outlook

Disruptive technologies: How analytics, digital and cloud are coupling technology to strategy consulting Technology Business Research (TBR) Quarterly Webinar Series

Feb. 12, 2014

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2 TBR Quarterly Webinar Series | 2.12.14 | www.tbri.com | ©2014 Technology Business Research Inc.

Management Consulting Benchmark Highlights and Outlook: Webinar Presenters

Stephanie Artigliere

Analyst, Professional Services Practice Email: [email protected]

Twitter: @stephaniea715

Jen Hamel

Research Analyst, Professional Services Practice Email: [email protected]

Twitter: @jenhameltbr

Patrick Heffernan

Senior Analyst and Engagement Manager, Professional Services Practice Email: [email protected]

Twitter: @TBR_PatrickH

Harry Norton


Twitter: @harrynortontbr

mailto:[email protected]




TBR


• The Professional Services Practice publishes quarterly and semiannual reports, continually covering 33 vendors.

• Of those vendors, 16 are included in our Management Consulting Benchmark.

o TBR reports are unique for their deep holistic analysis of leading vendor businesses.

o Financial modeling and TBR insights help customers gain a better understanding of vendor business models.

o TBR reports and webinars are responsive to client timelines, clear and concise, and provide insights across multiple layers of a vendor’s organization and infrastructure.

o TBR’s strategic assessment provides an impartial check on a vendor’s progress in its strategic objectives.

Clients gain advantages and a better understanding of revenue opportunities through our reports

and their personal relationships with TBR.

Management Consulting Benchmark Highlights and Outlook: Webinar Overview

TBR’s Management Consulting Benchmark delivers unique insight and value through in-depth analysis in a concise, consumable format

TBR’s Professional Services Business Quarterly Management

Consulting Benchmark

TBR


Management Consulting Benchmark Highlights and 2014 Outlook: Key Trends

Management Consulting Benchmark Vendor Trends for 2014

Acquire and Ally: Vendors bought talent and

intellectual property, or partnered to get the same.

Reorganization: Some vendors reacted to market

and competitor pressures by reorganizing, taking

a new approach to addressing customers’

consulting needs.

Leaders: The top of the pack increased market

share and improved portfolio offerings, growing

ever more dominant.

Disruptive technologies permeating all layers of management consulting forced vendors to ally, acquire or reorganize to meet client demands

SOURCE: WWW.PERSONALBRANDING.NET

SOURCE: WWW.NEWSYSTEMSTHINKING.COM

SOURCE: WWW.JUSTWEB.COM.AU

TBR


At the start of 2013, emerging technologies permeated all aspects of management consulting, prompting organizational changes

Management Consulting Highlights and 2014 Outlook: Key Trends

Strategy-centric vendors were ramping up technology consulting capabilities.

Solutions-led firms were leveraging legacy technology expertise to gain permission in the strategy space.

And the Big Four continued to grow, providing end-to-end offerings.

SOURCE: TBR’s 1H13 MANAGEMENT CONSULTING BENCHMARK

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Top revenue and growth performers maintained leads, creating greater distinction between management consulting leaders and laggards









consulting needs.



ever more dominant.

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Management Consulting Benchmark Highlights and 2014 Outlook: Performance

Deloitte, the Big Four and McKinsey dominate management consulting but are growing at different rates, increasingly leaving McKinsey behind

The Big Four’s share of the market is increasing as management consulting revenue grows, reflecting the advantages those firms have (size, scope and reach)

Dollar amounts in both graphs are in US $ millions

TBR


Management Consulting Benchmark Highlights and 2014 Outlook: Performance

Mixed results across verticals, service lines and geographies reflect a turbulent year and point toward substantial changes in 2014

Accenture’s energy position and BCG’s APAC geographic revenues reflect two companies poised to grow faster than their peers in 2014

Dollar amounts in both graphs are in US $ millions

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Firms are acquiring or partnering to better align to disruptive trends









consulting needs.



ever more dominant.

TBR


Vendors buy and ally to fill gaps in technology expertise and IP and to broaden global

brand presence

Acquisitions in 2013 positioned vendors to delivery emerging technology-infused offerings in 2014

Management Consulting Benchmark Highlights and 2014 Outlook: Acquisitions and Alliances

SOURCE: TBR’S 1H13 MANAGEMENT CONSULTING BENCHMARK

Select Management Consulting Acquisitions

Vendor Acquired Target LOB

Accenture Change Track Research Technology

Deloitte Bersin and Associates Organization

Booz & Company Management Engineers Strategy

EY Greenwich Consulting Strategy

EY Semphonic Technology

EY J&M Management Consulting Operations

KPMG Hackett Group (Oracle Practice) Technology

KPMG Plato Consulting Technology

Oliver Wyman Corven Strategy

Mercer Hall Consulting Operations

Aon Hewitt Dempsey Partners Operations

• In 1H13 nearly every benchmark vendor invested in additional technical training and knowledge-sharing platforms, with most seeking external assistance in recruiting technology-experienced talent, developing training programs for sales and delivery teams, and enhancing marketing messages around emerging technologies.

• As disruptive technologies continue to permeate all levels of clients’ organizations, vendors leverage acquisitions and alliances to strengthen consulting and implementation capabilities across service lines, either to fend off competitors or to enter new markets.

TBR


PwC’s acquisition of Booz surprised the market and made complete sense — right fit, right size, right culture, right capabilities

By purchasing Booz & Company, PwC advances four major revenue growth drivers:

Management Consulting Benchmark Highlights and 2014 Outlook: Acquisitions and Alliances

• Talent acquisition o Global prestige as a top-tier

consulting firm

• Geographic expansion o Market-leading presence in

the Middle East

• Vertical specialization o Deep understanding of retail

sector

• Emerging technology expertise o Booz Digital

... while keeping pace with Big Four peers and Solutions-led firms

Dollar amounts in US $ millions

TBR


McKinsey allies with Lufthansa to target the growing Euro aviation market

Latest McKinsey alliance shows it can take multiple paths to portfolio expansion

SOURCE: TBR’S 1H13 MANAGEMENT CONSULTING BENCHMARK

Management Consulting Benchmark Highlights and 2014Outlook: Acquisitions and Alliances

McKinsey Solutions Lumics

McKinsey Solutions continues to leverage previous acquisitions and alliances to improve and/or create new solutions: • Acquisition Henry Rak was integrated into

the Periscope solution. • Acquisition Finalta became its own, stand-

alone offering for retail banking. • Partner ClickFox was leveraged as its own

stand-alone solution.

• Joint venture with Lufthansa Technik (Lumics); McKinsey will target opportunities in the aviation market, specifically in Nordic countries such as with the Nordic Aviation Capital and, most recently, the Nordic Initiative for Sustainable Aviation (NISA).

• The joint venture with Lumics is similar to McKinsey’s joint venture with Nielsen Company (NM Incite), as the alliance was fueled by clients’ demand to harness the power of the social media market through Nielsen’s BuzzMetrics monitoring service.

• In the public sector, we are seeing multiple engagements which involve the modernization of aircraft in the Australian, U.K., U.S., and Middle Eastern markets (specifically the U.A.E.).

1967 2013

<$1 Million

James O.

McKinsey

founds

McKinsey.

1959: McKinsey

opens its first

European office in

London.

1926

$20 Million

Lumics

2006

2012: Rajat Gupta

convicted for insider

trading.

1935: Marshall

Field & Co. is

McKinsey’s first

major client.

2010: Anil Kumar

pleads guilty to

insider trading.

~2009:

McKinsey

Solutions

established.

2011:

McKinsey

acquires

Henry Rak 2010: NM Incite

established.

$4.4 Billion $7.7 Billion Projected

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While acquisitions and alliances helped some firms adapt, others such as Accenture reorganized to meet evolving customer demands









consulting needs.



ever more dominant.

TBR


SOURCE: TBR AND ACCENTURE

Management consultants and technology consultants are paired to address client needs

Accenture Strategy will target increased demand for strategy services at the intersection of business, technology and operations

Management Consulting Benchmark Highlights and 2014 Outlook: Reorganization

Business

Technology

Operations

Technology Consultant

Management Consultant

Accenture

Strategy

TBR


SOURCE: TBR RESEARCH

While PwC’s and Accenture’s investments in digital over the past 12 to 24 months have mirrored one another, their paths have varied

The Accenture Digital Platform will help the firm brand its mobility, analytics and cloud technology capabilities to meet clients’ digital needs

Management Consulting Benchmark Highlights and 2014 Outlook: Reorganization

Recent PwC Investments in Digital

Acquisitions

• Booz & Company (2H13/1H14)

• BGT (2H13) • Ant’s Eye View

(2H12) • Logan Tod & Co.

(1H12)

Alliances ThoughtWorks (2H12)

Recent Accenture Investments in Digital

Acquisitions

• Acquity Group Ltd. (2H13)

• Fjord (1H13) • avVenta

Worldwide (2H12)

Alliances

• Hybris (2H13) • Demandware

(2H13)

Booz

Digital

Accenture

Digital

Platform

Accenture

Interactive

Accenture

Mobility

Accenture

Analytics

TBR


PSP Research 2H13 Topics 2H13 Report Key Themes

• Syndicated Vendor Reports: o McKinsey & Co. o Deloitte Consulting o Bain & Co. o Booz & Company o Boston Consulting

Group o Accenture o IBM GS o Capgemini

• Management Consulting Benchmark

Investments in strategies to help clients adopt disruptive technologies

How are vendors shaping go-to-market strategies to fuel growth as disruptive technologies become increasingly tied to business goals and strategies?

Use of acquisitions to gain expertise in niche areas and expand local market presence

Are vendors choosing to invest in acquisitions to build out global management consulting delivery capabilities and deepen local market presence?

Addressing EMEA as two separate regions (Europe and MEA)

Which vendors have organizationally changed to multiple regions to accommodate the vast differences between Europe and Middle East & Africa?

Vertical Specialization of Management Consulting: Energy and Retail

• How are vendors leveraging alliances, acquisitions and/or thought leadership development to penetrate growth verticals?

• Which vertical markets are vendors prioritizing for go-to-market and resource investments?

Consultancies are expanding strategy capabilities around cloud, analytics, mobility and digital as clients modernize business models

SOURCE: TBR RESEARCH AND ESTIMATES; COMPANY DATA AND ESTIMATES

Management Consulting Benchmark Webinar: 2014 Research Outlook

TBR


Questions?

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Management Consulting Benchmark: Webinar Contact Information

Stephanie Artigliere

Analyst, Professional Services Practice Email: [email protected]

Twitter: @stephaniea715

Jen Hamel


Twitter: @jenhameltbr

Patrick Heffernan

Senior Analyst and Engagement Manager, Professional Services Practice Email: [email protected]

Twitter: @TBR_PatrickH

Harry Norton


Twitter: @harrynortontbr

James McIlroy Vice President of Sales Email: [email protected] Telephone: 603.929.1166

Twitter: @TBRinc SlideShare: www.slideshare.net/TBR_Market_Insight YouTube: www.youtube.com/user/TBRIChannel





https://twitter.com/TBRinc

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PSP Syndicated Research Coverage IT Services Vendors Public Sector Vendors Benchmarks

(Benchmark XLS data also available)

• Accenture • Atos • Capgemini • CGI* • Cisco Services • Cognizant • CSC • Dell Services • Fujitsu • Genpact* • HCL Technologies • HP Services • IBM Global Services • Infosys • KPN Corporate Market* • Tata Consultancy Services • T-Systems • Unisys • Wipro IT Services • Xerox Services

• Booz Allen Hamilton* • CACI International* • General Dynamics IS&T* • L3 Communications* • Lockheed Martin IS&GS* • ManTech* • Northrop Grumman IS&TS* • Raytheon Intelligence, Information &

Services*

• Global Delivery Market Landscape • Healthcare IT Services Vendor

Benchmark • IT Services Vendor Benchmark • Management Consulting

Benchmark • Public Sector IT Services Vendor

Benchmark • Software Alliance Benchmark

Healthcare IT Services Vendors

• Accenture HITS* • CSC HITS* • Dell HITS* • HP HITS* • IBM HITS*

Management Consulting Vendors

• Bain & Company* • Booz & Company* • Boston Consulting Group* • Deloitte Consulting* • McKinsey & Co.*

TBR Professional Services Practice Syndicated Coverage

*Semiannual publication

TBR

T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .

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