consulting on disruption
CONSULTING ON THE CUSP OF DISRUPTION
1
by: VIPUL TANDON(WMP6126)|RAHUL BHANSALI(WMP08076)| RAHUL UPADHYAY(WMP08078)
“The industry that has long helped others sidestep strategic threats is itself being upended”
* The article discusses about the potential disruption in consulting domain.
* Disruption is a theory which shows, “what causes what to happen, when and why”. * The Challenge: The forces that disrupted Steel, Publishing, etc. industries
have started reshaping consulting industry with profound implications for its future. * The Analysis: Two factors which helped the Established firms to maintain the industry leadership i.e. Opacity and Agility have started disappearing in the increasingly transparent and sophisticated business environment.
* The Future: the very same “Established Firms” have now started to rethink their own service models and even started to experiment with new models that could prove disruptive to the core business.
2
SOLUTION
SHOP
CONSULTING:
THREE BUSINESS
MODELS
VALUEADDED
PROCESS
BUSINESS
FACILITATED
NETWORK
3
• Structured to diagnose and solve problems whose scope is undefined
• Delivers value primarily through consultants’ judgment rather than through repeatable processes
• Customers pay high prices in the form of fee-for-service.
• E.g. McKinsey, Bain, BCG, IDEO
• Structured to address problems of defined scope with standard processes • Processes are usually repeatable and controllable • Customers pay for output only
• E.g. Motista, Salesforce.com,
McKinsey Solutions, Accenture,
Deloitte (both moving toward solution shop)
• Structured to enable the exchange of products and services
• Customers pay fees to the network, which in turn pays the service provider • E.g. OpenIDEO, CEB, Gerson,
Lehrman Group, Eden, McCallum,
BTG
Why consulting was immune for so long?
Opacity
Agility
The combination of the “absence of criteria” for judging a
1
by: VIPUL TANDON(WMP6126)|RAHUL BHANSALI(WMP08076)| RAHUL UPADHYAY(WMP08078)
“The industry that has long helped others sidestep strategic threats is itself being upended”
* The article discusses about the potential disruption in consulting domain.
* Disruption is a theory which shows, “what causes what to happen, when and why”. * The Challenge: The forces that disrupted Steel, Publishing, etc. industries
have started reshaping consulting industry with profound implications for its future. * The Analysis: Two factors which helped the Established firms to maintain the industry leadership i.e. Opacity and Agility have started disappearing in the increasingly transparent and sophisticated business environment.
* The Future: the very same “Established Firms” have now started to rethink their own service models and even started to experiment with new models that could prove disruptive to the core business.
2
SOLUTION
SHOP
CONSULTING:
THREE BUSINESS
MODELS
VALUEADDED
PROCESS
BUSINESS
FACILITATED
NETWORK
3
• Structured to diagnose and solve problems whose scope is undefined
• Delivers value primarily through consultants’ judgment rather than through repeatable processes
• Customers pay high prices in the form of fee-for-service.
• E.g. McKinsey, Bain, BCG, IDEO
• Structured to address problems of defined scope with standard processes • Processes are usually repeatable and controllable • Customers pay for output only
• E.g. Motista, Salesforce.com,
McKinsey Solutions, Accenture,
Deloitte (both moving toward solution shop)
• Structured to enable the exchange of products and services
• Customers pay fees to the network, which in turn pays the service provider • E.g. OpenIDEO, CEB, Gerson,
Lehrman Group, Eden, McCallum,
BTG
Why consulting was immune for so long?
Opacity
Agility
The combination of the “absence of criteria” for judging a