Traditional management consultancies continue evolving toward the digital transformation future

This week TBR will publish recent insights on two of the management consultancies we cover: The Boston Consulting Group (BCG) and McKinsey & Co.

Regarding BCG, Analyst Kelly Lesiczkanotes, “Earning consistent rankings as a top employer and avoiding negative publicity enable BCG to attract and retain employees and to support innovation efforts and delivery of emerging technologies. As BCG works to increase brand recognition for its subsidiaries, such as the opening of a BCG Platinion center in Poland, it improves its value proposition to bridge new capabilities and offerings within clients’ legacy environments. Enhancing its core operations consulting services will continue to bolster BCG’s ability to develop and deliver solutions, particularly in mature vertical markets, such as financial services.

On McKinsey, Principal Analyst Patrick Heffernan puts a recent surprising physical storefront development into context of the firm’s larger strategy and vision, stating, “Clients’ expectations for transformation, including analytics, cloud, AI and other emerging technologies, match the capabilities and offerings McKinsey has developed in recent years, though the firm may need to begin offering implementation services along with its strategy consulting to withstand peers’ efforts in the space. In the wake of recent controversies, however, McKinsey is touting more internal transparency while exploring new ventures in verticals such as retail, specifically with its opening of a retail space in the Mall of America.”

Additional assessments publishing this week from our analyst teams

“AI will likely be the most controversial yet opportunistic emerging technology to impact the digital transformation continuum. There will be jobs that will decline as a result of automation, but more in toil as opposed to decision making or customer engagement. Overcoming the skepticism around the public perception that automation eliminate jobs is an ongoing task demanding enterprises and vendors increasingly educate the market on the broader ROI from the use of AI, including increased productivity, improved accuracy and compliance.” Senior Analyst Boz Hristov, Digital Transformation Insights Report: Emerging Technology

“While TBR estimates T-Systems revenue growth will be flat through 2021, the company’s profitability will follow a positive trajectory. As T-Systems undergoes transformation efforts, including the establishment of one unit that will join Deutsche Telekom’s Business Customer segment and T-Systems’ Telecommunication services and Classified ICT businesses as well as the establishment of independent Security and IoT businesses, the company aligns its portfolio with client demand tied to higher-value services. Partnering with technology vendors provides T-Systems with digital and cloud platforms that scale its growth area offerings as well as lead to new opportunities. Building its offshore talent will help T-Systems sustain its portfolio improvements in the long term, benefitting from lower-cost delivery. While T-Systems historically is slow to execute and transform business operations, the company could potentially lose opportunities to competitors as transitioning businesses hinders its ability to generate consistent growth.” — Lesiczka

“Despite weak performance in 3Q19, Sprint is taking steps to become more valuable to T-Mobile ahead of the proposed merger’s closing. Sprint is optimizing costs through deeper digitization of retail and customer service channels as well as implementing more efficient network technologies. Inheriting Sprint’s evolving IoT portfolio would enable T-Mobile to become more competitive in the IoT market, while Sprint’s growing 5G footprint would augment T-Mobile’s coverage in major markets.”  — Analyst Steve Vachon

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