The Impact of Tech Disruption on Management Consulting (Event Recap)

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Times are changing. As new technologies are being discovered and implemented, businesses need to alter their strategies to their ever-changing industry. Presenters Allan Wilson and Richard Sachs recently joined interested GTA Chapter members at the June Customer Strategy SIG to facilitate a discussion on how one can help their clients adapt to new technology. The big takeaway? There are no blanket solutions but there are some general things one can do. Wilson and Sachs stressed that, in order to ensure your client does not become outdated, make sure you know the industry, are aware of the activity of your client’s competitors, and encourage your fellow CMCs to constantly evaluate new tools as they become available.


Below are some key insights from the session:

Modern technology provides huge profit potentials through advanced analytics.

Data analytics is everywhere and on the rise. One example is a US company that provides pay-for-use washing machines for apartment complexes. New technology has enabled wash-pricing based on real-time usage/weather data gathered from across the country. During periods of higher demand, a load costs more. This model that has led to large revenue increases for the company.

Larger companies have the advantage when it comes to adopting new technology. 

Although the adoption of many novel technologies may seem attractive/profitable, the cost of implementation could block smaller firms from upgrading. Large firms have larger budgets which means they are more able to adopt new technology.  However, large-scale use of new technology may be accompanied by more risk.

Online purchasing has led to big changes within the retail industry.

Problems created in the supply chain by online sales were discussed. For instance, a retailer will have to consider whether it’s worth having separate warehouses for online stock; this could come down to looking at online sales percentages. If a retailer possesses only one warehouse for both its in-store and online stock, then they must carefully forecast their sales to avoid constantly running out of stock.

Another topic that was brought up was the threat of being phased out by technological advances. Novel technology can introduce new alternatives to consumers that may almost eliminate an industry. When under threat, companies must adapt their services, business models, and target markets in turn. The video rental industry is a prime example. The advent of online streaming companies like Netflix, Hulu and Amazon Video led to the decline of conventional physical media rental stores. Major players in the industry (Blockbuster and Hollywood Video), unable to maintain their profits with their business models, filed for bankruptcy.  At this point, only independent stores remain. These smaller independents have eked out a niche through the maintenance of a large selection of video and the employment of knowledgeable staff. Since the independent stores provide human consultation and offer the more obscure, they do not directly compete with online video streaming.

Other industries that may come under threat due to the advance of technology: small parts manufactures (3D printing), travel agencies (online equivalents), cable TV providers (internet streaming), motor insurers (self-driving cars).

This productive exchange gave rise to new perspectives on how professionals in various industries were benefitting from  -- or dealing with -- the discovery of new technologies. 

Guest post by Kevin Krar

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