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News Article | March 2, 2017
Site: globenewswire.com

BOSTON, March 02, 2017 (GLOBE NEWSWIRE) -- Amid a continuously rising tide of regulation and high costs of compliance, banks must create more efficient and effective processes, and leverage technical innovation, if they hope to survive and thrive in the run-up to 2020 and beyond, according to a new report by The Boston Consulting Group (BCG). The report, Global Risk 2017:  Staying the Course in Banking, is being released today. Drawing on an extensive benchmarking exercise to determine the overall health, risk profile, and performance of the banking industry—a study involving more than 300 retail, commercial, and investment banks that represented more than 80% of all banking assets worldwide—the report examines economic profit (EP) both globally and regionally, analyzes the ever-evolving regulatory climate, and proposes a senior-management agenda to help institutions stay the course in these turbulent times. “The seas of regulatory change have continued to surge worldwide, producing a strong impact on banks’ strategic and operational planning efforts,” said Gerold Grasshoff, the global leader of BCG’s risk management segment and a coauthor of the report.  “Coping with regulation must therefore remain a priority, and the increasing costs of doing so will place substantial pressure on all banks regardless of size or specialty.” Economic Profitability Tallied globally, banks created positive EP of €159 billion in 2015, or 18 basis points as a percentage of total assets. This was the highest value created since the crisis, as EP ranged from –24 to 17 basis points from 2009 through 2014.  Averaged globally and adjusted for risk costs, it was the fifth year in a row in which EP rose, and the third consecutive year of positive EP performance worldwide, as the industry continued its recovery from the upheaval of 2007–2008. The global increase in EP in 2015 was driven by the positive regional performance in North America, the Middle East, and Africa, where banks continued to surge ahead. In Europe, banks have stalled in their struggle for recovery. Asia-Pacific banks’ EP shrank slightly compared with performance in 2014, while South American banks’ EP fell by nearly half. The Regulatory Climate The report says that the era of constantly evolving and increasing regulatory requirements persists and that the number of individual regulatory changes that banks must track on a global scale has more than tripled since 2011, to an average of 200 revisions per day. Identifying overarching themes, BCG makes several predictions: that regulation will stay at an extensive level (despite recent developments in the US that may augur critical challenges to regulatory implementation); that actions by individual jurisdictions, rather than by globally coordinated initiatives, will remain the source of most new and changing requirements that banks must comply with; and that the influence of regulation on strategic and operational planning will continue to be significant. To assess the current status of regulation, the report also organizes the global spectrum into three clusters: An Agenda for Staying the Course According to the report, bank steering functions will need to become more involved and effective in overall cost management. Their tools for doing so are varied—from adjusting the organization and operating models to harnessing the strong potential of new technologies. Partnering with both fintech and regtech startups can provide access to innovative capabilities and solutions relevant to bank steering. At the same time, banks must not forget that their risk and steering functions are ultimately responsible for optimizing the scarce financial resources of capital, liquidity, and funding. Success will require closer collaboration of those functions and more integrated management of the banks’ P&L and balance sheets. “Managing regulatory change will remain at the top of bank risk and steering agendas for the foreseeable future,” said Grasshoff. “Defining an efficient interaction mode between banks and regulators will be a critical task. In an era of rising regulatory seas, this focus on change management is mandatory, not optional.” A copy of the report can be downloaded at www.bcgperspectives.com. To arrange an interview with one of the authors, please contact Eric Gregoire at +1 617 850 3783 or gregoire.eric@bcg.com. About The Boston Consulting Group The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 85 offices in 48 countries. For more information, please visit bcg.com. About bcgperspectives.com Bcgperspectives.com features the latest thinking from BCG experts as well as from CEOs, academics, and other leaders. It covers issues at the top of senior management’s agenda. It also provides unprecedented access to BCG’s extensive archive of thought leadership stretching back 50 years to the days of Bruce Henderson, the firm’s founder and one of the architects of modern management consulting. All of our content—including videos, podcasts, commentaries, and reports—can be accessed by PC, mobile, iPad, Facebook, Twitter, and LinkedIn.


News Article | February 15, 2017
Site: www.marketwired.com

Illinois Ranks 34th Overall and 11th Among the 15 Most Populous States, But Its Strengths Offer Reasons for Optimism, Says The Boston Consulting Group in a New Report CHICAGO, IL--(Marketwired - Feb 10, 2017) - Illinois' performance in translating wealth into well-being for its residents has been underwhelming, according to a nationwide study by The Boston Consulting Group (BCG), one of the world's leading management consultancies. The detailed findings of the research appear in a new report, The Path Forward for Illinois: Prioritizing Well-Being in the Prairie State, released today. The report provides a quantitative evaluation of Illinois' performance in four areas -- economics, investments, sustainability, and equality -- and compares the results with those of the other 49 states, focusing particularly on the 15 most populous states. The report illuminates Illinois' key strengths and challenges, identifies opportunities for improvement, and highlights the strategic choices that business, civic, and political leaders must make for the future. "We've developed a scorecard that objectively measures a state's ability to provide well-being for its residents," said Marin Gjaja, a Chicago-based BCG senior partner and coauthor of the report. "GDP doesn't tell the whole story." Of the four areas, investments is a bright spot for Illinois. The study found that the state's accomplishments in funding early and higher education and in providing health insurance contribute substantially to its ranking of 17th in this element. However, Illinois' overall performance is weighed down by its ranking of 44 in economics, 38 in sustainability (a measure of civic engagement as well as governance and environmental factors), and 39 in equality (a measure of income, health, and education inequality). These rankings are based on BCG's Sustainable Economic Development Assessment (SEDA), a diagnostic tool that benchmarks social and economic conditions as a measure of a government's success in providing for the well-being of its people. Since 2012, BCG has been using the tool to conduct worldwide comparative analyses of country-level well-being. The framework was adapted for the US by adding equality as a fourth element and choosing dimensions appropriate for state-level analysis. Drilling Down to the Real Issues "The headlines tend to cite Illinois' administrative gridlock and dysfunctional political culture," said Justin Manly, a Chicago-based BCG partner and coauthor of the report. "It's easy, however, to lose sight of the state's notable strengths." Although Illinois ranks a disappointing 34th nationwide, the state has a strong foundation on which to build: a world-class city, a large and still-vibrant economy, an educated workforce, and a young demographic profile. Illinois also has a history of investing in its people. As an example, its education system in some parts of the state matches the best in the country. Still, investments don't always translate into results. Despite a strong record of providing health insurance and health care access, Illinois is only middling in health outcomes. In education, impressive preschool enrollment numbers and a high level of college attainment are offset by disappointing scores on national elementary education tests. "Our analysis zeroes in on specific areas that can have significant impact in improving well-being," Manly noted. Two clear trends emerged from the national analysis of state-level results. First, strong performance in economics often comes at the expense of success in sustainability. Three of the top five performers in economics (Texas at number two, Delaware at number three, and Wyoming at number five) rank in the bottom third in the area of sustainability. Second, highly populated states tend to struggle on equality, as measured by racial, gender, and socioeconomic gaps in income, health, and education outcomes. Of the 15 most populous states, 7 rank very low in equality; Illinois is 39th. But having a large population does not necessarily handicap well-being. Massachusetts and Washington, each with populations of about 7 million, finished first and eighth, respectively. Strategic Choices of the Best in Class The report examines the results of the top performing, most populous states on the basis of the priorities and choices of those states. Almost every large state faces similar challenges: deindustrialization, legacy economic burdens (including high pension obligations), and complex demographics. The difference between Illinois and its high-ranking peers is that Illinois lacks a clear, coherent strategy for the future. "Successful states have a vision, a strategy, and the will -- political, economic, and social -- to work through the tradeoffs, make well-considered choices, and lay the groundwork for long-term success," said Gjaja, who leads BCG's six offices in the Great Lakes region and Canada and directly manages the Chicago office. "Illinois' leaders need to come together to focus on our strengths and on the possibilities for shaping a better future." The publication of The Path Forward for Illinois: Prioritizing Well-Being in the Prairie State coincides with the launch of BCG's Center for Illinois' Future. Located in the firm's Chicago office at 300 N. LaSalle, the center was established to consolidate BCG's social impact (or corporate social responsibility) work in Illinois and maximize the benefit of that work for all those with a stake in Illinois' future -- residents, leaders, advocates, and institutions. For more information on the center, please visit centerforillinoisfuture.bcg.com. To arrange an interview with one of the authors, please contact Alexandra Corriveau at +1 212 446 3261 or corriveau.alexandra@bcg.com. The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 85 offices in 48 countries. For more information, please visit bcg.com. Bcgperspectives.com features the latest thinking from BCG experts as well as from CEOs, academics, and other leaders. It covers issues at the top of senior management's agenda. It also provides unprecedented access to BCG's extensive archive of thought leadership stretching back 50 years to the days of Bruce Henderson, the firm's founder and one of the architects of modern management consulting. All of our content -- including videos, podcasts, commentaries, and reports -- can be accessed by PC, mobile, iPad, Facebook, Twitter, and LinkedIn.


News Article | May 10, 2017
Site: globenewswire.com

MIAMI, May 10, 2017 (GLOBE NEWSWIRE) -- Two years after travel restrictions between the US and Cuba started to ease, interest in the island remains strong and growing among US travelers. According to a recent article by The Boston Consulting Group (BCG), more than 2 million US citizens could visit Cuba each year by 2025, accounting for more than half the travelers to the island at that point. The article, titled “Taking the Long View on Cuba’s Tourism Opportunity,” is being published today. Just 90 miles from Miami, Cuba represents one of the last authentic travel destinations in the Caribbean. Direct flights from the US to Cuba, along with new cruise itineraries that include stops on the island, are making it far more accessible to US travelers. From 2014 through 2016, the number of US travelers to Cuba increased 77%. Moreover, BCG analysis shows that many travelers could begin opting for trips to Cuba instead of other Caribbean destinations, such as the Dominican Republic, the Virgin Islands, Mexico, or the Bahamas. As US travel to Cuba increases, however, growing pains are inevitable. Travel infrastructure on the island is severely outdated, meaning rough roads, unreliable tourism services, and inadequate customer service levels. In addition, some skeptics say that recent announcements by US travel companies indicate that the industry might have overestimated demand. Several US airlines have scaled back the number of flights to Cuba, and one cruise line has pulled out of the market. Yet the article suggests that such fears are overblown, and it underscores that the long-term outlook for US travel to Cuba is still extremely positive. “These shifts are the fairly typical of what you see in any fast-growing market,” says Marguerite Fitzgerald, a partner at BCG and the author of the article. “The reality is that US travel to Cuba is still in the nascent stages, and players in all segments are still figuring out how to make it work.” Key Takeaways for Three Segments The article offers specific prescriptions for travel companies in different segments: Despite these challenges, Cuba represents an extremely promising growth opportunity for the US travel industry. “Success will require unusual—and unorthodox—approaches,” says Fitzgerald. “The demand is strong and growing. Companies that take a long-term approach can capitalize on this once-in-a-generation opportunity.” A copy of the article can be downloaded at here. To arrange an interview with one of the authors, please contact Eric Gregoire at +1 617 850 3783 or gregoire.eric@bcg.com. About The Boston Consulting Group The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 85 offices in 48 countries. For more information, please visit bcg.com. About bcgperspectives.com Bcgperspectives.com features the latest thinking from BCG experts as well as from CEOs, academics, and other leaders. It covers issues at the top of senior management’s agenda. It also provides unprecedented access to BCG’s extensive archive of thought leadership stretching back 50 years to the days of Bruce Henderson, the firm’s founder and one of the architects of modern management consulting. All of our content—including videos, podcasts, commentaries, and reports—can be accessed by PC, mobile, iPad, Facebook, Twitter, and LinkedIn.


News Article | May 15, 2017
Site: globenewswire.com

BOSTON, May 15, 2017 (GLOBE NEWSWIRE) -- Purpose is high on the management agenda these days, but many organizations don’t give it the attention it deserves. By tackling it superficially, they not only fail to realize their explicit purpose but also miss out on the many powerful benefits purpose offers, according to a new report by The Boston Consulting Group (BCG) and BrightHouse. The report, Purpose with the Power to Transform Your Organization, is being released today. The report marks the first joint publication by BCG and BrightHouse, the Atlanta-based creative consultancy that helps organizations uncover their purpose to grow their people, profits, and social impact. BrightHouse, acquired by BCG in 2015, has advised global brands and Fortune 500 companies for more than 20 years. The report describes a common pitfall in the pursuit of purpose, a phenomenon the authors call “surface purpose.” “We find that for many organizations, defining purpose amounts to writing a catchy slogan or a generic statement that could apply to just about any company,” says Doug Shipman, the CEO of BrightHouse and a coauthor of the report. “But even among those that articulate their purpose well, we find they do almost nothing to integrate it into the day-to-day experiences of employees and customers.” Why Purpose Matters Beyond the growing desire among leaders and employees to derive more meaning from their work and have a positive impact on society, purpose matters for several lesser-known reasons. BCG analysis shows that purpose driven organizations perform better: purpose correlates strongly with ten-year total shareholder return. Another powerful, but equally overlooked, benefit: purpose supports “always-on” transformation. The demands of serial, often parallel, transformations can be draining for employees. Organizations need to appeal to head and heart to motivate and sustain their people. “Purpose acts as a fuel, providing an emotional connection that energizes people and inspires greater commitment,” says Jim Hemerling, a BCG senior partner and a coauthor of the report. “It also serves as a North Star, providing direction and alignment to everyone.” Bringing Purpose to Life The authors clarify true purpose, offering a litmus test of five properties to help organizations steer clear of surface purpose. They then describe a rigorous, four-step approach organizations can use to bring purpose to life and ingrain it in the organizations: discover, articulate, activate, and embed. The report draws on the experience of clients from a broad range of sectors, including financial services, retail, consumer goods, and industrial goods. The two final steps in the purpose journey are critical to ensuring that purpose endures. Activating purpose requires, among other things, that leaders embody purpose in their words and deeds, including through symbolic acts. Embedding purpose calls for longer-term changes in the organizational environment, such as its learning and development programs and its performance management and incentives systems. “By following these steps,” notes Hemerling, “organizations can realize the kind of purpose that will anchor and guide them through challenging circumstances and changing times.” A copy of the report can be downloaded here. To arrange an interview with one of the authors, please contact Eric Gregoire at +1 617 850 3783 or gregoire.eric@bcg.com. About The Boston Consulting Group The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 85 offices in 48 countries. For more information, please visit bcg.com. About BrightHouse BrightHouse, a division of BCG, is a global creative consultancy devoted to helping organizations uncover their purpose and bring it to life so that they can grow their people, profits, and social impact. For more than 20 years, we have been applying our unique methodology, frameworks, and capabilities in human insights, design, film, and writing to accelerate transformation and value creation for global brands and Fortune 500 companies alike. For more information, please visit thinkbrighthouse.com. About bcgperspectives.com Bcgperspectives.com features the latest thinking from BCG experts as well as from CEOs, academics, and other leaders. It covers issues at the top of senior management’s agenda. It also provides unprecedented access to BCG’s extensive archive of thought leadership stretching back 50 years to the days of Bruce Henderson, the firm’s founder and one of the architects of modern management consulting. All of our content—including videos, podcasts, commentaries, and reports—can be accessed by PC, mobile, iPad, Facebook, Twitter, and LinkedIn.


News Article | May 15, 2017
Site: globenewswire.com

BOSTON, May 15, 2017 (GLOBE NEWSWIRE) -- Purpose is high on the management agenda these days, but many organizations don’t give it the attention it deserves. By tackling it superficially, they not only fail to realize their explicit purpose but also miss out on the many powerful benefits purpose offers, according to a new report by The Boston Consulting Group (BCG) and BrightHouse. The report, Purpose with the Power to Transform Your Organization, is being released today. The report marks the first joint publication by BCG and BrightHouse, the Atlanta-based creative consultancy that helps organizations uncover their purpose to grow their people, profits, and social impact. BrightHouse, acquired by BCG in 2015, has advised global brands and Fortune 500 companies for more than 20 years. The report describes a common pitfall in the pursuit of purpose, a phenomenon the authors call “surface purpose.” “We find that for many organizations, defining purpose amounts to writing a catchy slogan or a generic statement that could apply to just about any company,” says Doug Shipman, the CEO of BrightHouse and a coauthor of the report. “But even among those that articulate their purpose well, we find they do almost nothing to integrate it into the day-to-day experiences of employees and customers.” Why Purpose Matters Beyond the growing desire among leaders and employees to derive more meaning from their work and have a positive impact on society, purpose matters for several lesser-known reasons. BCG analysis shows that purpose driven organizations perform better: purpose correlates strongly with ten-year total shareholder return. Another powerful, but equally overlooked, benefit: purpose supports “always-on” transformation. The demands of serial, often parallel, transformations can be draining for employees. Organizations need to appeal to head and heart to motivate and sustain their people. “Purpose acts as a fuel, providing an emotional connection that energizes people and inspires greater commitment,” says Jim Hemerling, a BCG senior partner and a coauthor of the report. “It also serves as a North Star, providing direction and alignment to everyone.” Bringing Purpose to Life The authors clarify true purpose, offering a litmus test of five properties to help organizations steer clear of surface purpose. They then describe a rigorous, four-step approach organizations can use to bring purpose to life and ingrain it in the organizations: discover, articulate, activate, and embed. The report draws on the experience of clients from a broad range of sectors, including financial services, retail, consumer goods, and industrial goods. The two final steps in the purpose journey are critical to ensuring that purpose endures. Activating purpose requires, among other things, that leaders embody purpose in their words and deeds, including through symbolic acts. Embedding purpose calls for longer-term changes in the organizational environment, such as its learning and development programs and its performance management and incentives systems. “By following these steps,” notes Hemerling, “organizations can realize the kind of purpose that will anchor and guide them through challenging circumstances and changing times.” A copy of the report can be downloaded here. To arrange an interview with one of the authors, please contact Eric Gregoire at +1 617 850 3783 or gregoire.eric@bcg.com. About The Boston Consulting Group The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 85 offices in 48 countries. For more information, please visit bcg.com. About BrightHouse BrightHouse, a division of BCG, is a global creative consultancy devoted to helping organizations uncover their purpose and bring it to life so that they can grow their people, profits, and social impact. For more than 20 years, we have been applying our unique methodology, frameworks, and capabilities in human insights, design, film, and writing to accelerate transformation and value creation for global brands and Fortune 500 companies alike. For more information, please visit thinkbrighthouse.com. About bcgperspectives.com Bcgperspectives.com features the latest thinking from BCG experts as well as from CEOs, academics, and other leaders. It covers issues at the top of senior management’s agenda. It also provides unprecedented access to BCG’s extensive archive of thought leadership stretching back 50 years to the days of Bruce Henderson, the firm’s founder and one of the architects of modern management consulting. All of our content—including videos, podcasts, commentaries, and reports—can be accessed by PC, mobile, iPad, Facebook, Twitter, and LinkedIn.


News Article | May 8, 2017
Site: www.prnewswire.com

In the past decade, the global fashion industry has been an engine for global development and made progress on sustainability. Awareness is growing and individually, companies are optimizing business practices to limit their negative impact. But with current trajectories of production and consumption, pressures on natural resources and social conditions will intensify by 2030 to the point of threatening industry growth itself. The Global Fashion Agenda, in collaboration with The Boston Consulting Group, has made an in-depth assessment of the industry's environmental and social performance - the first edition of the Pulse of the Fashion Industry report. Drawing on the Sustainable Apparel Coalition's Higg Index and a survey of more than 90 senior managers responsible for sustainability issues and a variety of other sources, it offers the first comprehensive common fact base on the health of the industry - with a "Pulse Score" by type of company, size, region and stage in the value chain. Improving its environmental and social performance would not just advance the industry's commercial prospects, it would also add as much as €160 billion by 2030 in annual value to the world economy. To point the way toward a better fashion industry, the Pulse of the Fashion Industry report lays out the "Landscape for Change". Yet it also shows that even if most of the industry implemented today's best practices individually, it would not be enough to capture this value and close the gap. To enhance the industry's current and future position - and forestall excessive regulatory intervention - it's time to act differently. The industry can move beyond fragmented individual actions with incremental results. Through collective efforts the industry can unite around an agenda for change, drive the needed systemic change and work jointly on disruptive innovation. By consolidating existing initiatives and fostering groundbreaking innovation, fashion can collectively galvanize change at scale. The fashion industry has a clear opportunity to act differently, pursuing profit and growth while also creating new value for society and therefore for the world economy. It comes with an urgent need to place environmental, social and ethical improvements on management's agenda. Copenhagen Fashion Summit is the flagship event of the non-profit, year-round initiative Global Fashion Agenda under Danish Fashion Institute, whose mission is to mobilise the industry to transform the way we produce and consume fashion. To help set a common global agenda for the industry and spearhead this transition, Global Fashion Agenda has partnered with Kering, H&M, Target, Sustainable Apparel Coalition and Li & Fung as founding members. For more information please visit www.copenhagenfashionsummit.com. The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. We partner with clients from the private, public and not-for-profit sectors in all regions to identify their highest-value opportunities. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 85 offices in 48 countries. For more information, please visit www.bcg.com.


News Article | May 8, 2017
Site: www.prnewswire.co.uk

In the past decade, the global fashion industry has been an engine for global development and made progress on sustainability. Awareness is growing and individually, companies are optimizing business practices to limit their negative impact. But with current trajectories of production and consumption, pressures on natural resources and social conditions will intensify by 2030 to the point of threatening industry growth itself. The Global Fashion Agenda, in collaboration with The Boston Consulting Group, has made an in-depth assessment of the industry's environmental and social performance - the first edition of the Pulse of the Fashion Industry report. Drawing on the Sustainable Apparel Coalition's Higg Index and a survey of more than 90 senior managers responsible for sustainability issues and a variety of other sources, it offers the first comprehensive common fact base on the health of the industry - with a "Pulse Score" by type of company, size, region and stage in the value chain. Improving its environmental and social performance would not just advance the industry's commercial prospects, it would also add as much as €160 billion by 2030 in annual value to the world economy. To point the way toward a better fashion industry, the Pulse of the Fashion Industry report lays out the "Landscape for Change". Yet it also shows that even if most of the industry implemented today's best practices individually, it would not be enough to capture this value and close the gap. To enhance the industry's current and future position - and forestall excessive regulatory intervention - it's time to act differently. The industry can move beyond fragmented individual actions with incremental results. Through collective efforts the industry can unite around an agenda for change, drive the needed systemic change and work jointly on disruptive innovation. By consolidating existing initiatives and fostering groundbreaking innovation, fashion can collectively galvanize change at scale. The fashion industry has a clear opportunity to act differently, pursuing profit and growth while also creating new value for society and therefore for the world economy. It comes with an urgent need to place environmental, social and ethical improvements on management's agenda. Copenhagen Fashion Summit is the flagship event of the non-profit, year-round initiative Global Fashion Agenda under Danish Fashion Institute, whose mission is to mobilise the industry to transform the way we produce and consume fashion. To help set a common global agenda for the industry and spearhead this transition, Global Fashion Agenda has partnered with Kering, H&M, Target, Sustainable Apparel Coalition and Li & Fung as founding members. For more information please visit www.copenhagenfashionsummit.com. The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. We partner with clients from the private, public and not-for-profit sectors in all regions to identify their highest-value opportunities. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 85 offices in 48 countries. For more information, please visit www.bcg.com.


News Article | May 8, 2017
Site: globenewswire.com

New BCG Research Projects Revenue Shift of $800 Billion over Five Years to Personalization Leaders in Three Consumer Sectors Alone BOSTON, May 08, 2017 (GLOBE NEWSWIRE) -- Brands that create personalized experiences by integrating advanced digital technologies and proprietary data are seeing revenues increase by 6% to 10%, according to new research by The Boston Consulting Group (BCG)—two to three times faster than those that do not. Personalization leaders stand to capture a disproportionate share of category profits while slow movers will lose customers, share, and profits. BCG expects that over the next five years in three sectors alone—retail, health care, and financial services—personalization will push a revenue shift of some $800 billion to the 15% of companies that get it right. “In many consumer categories, high-value customers drive 70% or more of the value for companies,” said Mark Abraham, a BCG partner. “Brand individualization unlocks the ability to enhance loyalty with these and other customers by tailoring the brand experience to each contextual user journey.” The BCG survey of personalization programs at more than 50 companies in ten industries underscores the potential value to be achieved but also highlights the execution challenges. Two-thirds of respondents said that they expect at least a 6% incremental annual revenue lift from personalization, with companies in several sectors—apparel, financial services, grocery and wholesale clubs, and technology—anticipating increases of 10% or more.  About a quarter of companies in those sectors have already achieved revenue increases of 6% or more. Many companies are making significant investments in personalization: half of the survey respondents have more than 25 employees dedicated to personalization programs and are spending more than $5 million a year on personalization campaigns.  At half of the top performers, the CEO and the board oversee personalization programs; that is the case at only about 20% of total companies. “For incumbents to defend—and expand—share, they need to reimagine their business with an individualized value proposition at the core, merging physical and digital experiences to deepen their customer connections,” said Steve Mitchelmore, a BCG partner. “They need to put brand individualization at the forefront of their strategy agenda to influence everything that they do, including marketing, operations, merchandising, and product development.” At this stage, only about 15% of companies can be considered true personalization leaders, and most of them are tech companies and digital natives. Another 25% are experimenting with one-to-one campaigns, but only 13% say they deploy truly customer-specific individual messages and only 7% manage fully integrated tailored communications across all channels. The remaining 65% are still using segmented marketing or even mass-market approaches. “Digital natives have a head start because their business models are built around collecting data and responding to customer needs,” said Sean Collins, chief investment officer of BCG Digital Ventures. “These companies build strong customer loyalty using both traditional vehicles, such as loyalty programs, and new models, like ‘free’ and short-notice delivery, automatic replenishment, and other forms of convenience. The deeper direct connection enables digital natives to more fully understand what customers need and create new ways to serve them, both on their own and by working with their suppliers.” Companies face significant hurdles to realizing the full potential of personalization.  These include the technical barriers that one might expect, such as poor data centralization (companies collect ample data, but struggle to aggregate it and form one universal view of each customer), legacy technology that doesn’t support one-to-one communication at scale, and insufficient measurement capabilities. Almost 60% of companies struggle to effectively measure and attribute the impact of campaigns, limiting their ability to learn from customer feedback and adapt accordingly, which is at the core of individualizing the brand experience. The lack of dedicated personnel is the most-oft-cited barrier (74%), but the majority of companies also face hurdles that are organizational and cultural in nature. These include insufficient cross-functional coordination (61%), inadequate creative processes (57%), lack of talent and knowledge (54%), and cultures that are not conducive to innovation (52%). More than 60% feel that they lack a clear roadmap, and half cite the absence of a clear business case and objectives. At 60% of companies, no one team is responsible for personalized cross-channel communication to consumers, and 54% of companies say they have no or low cross-functional coordination for personalization efforts. In addition, in a field where speed is essential, 57% of companies take three to six weeks to create a campaign (another 22% take several months) and up to four weeks to measure the results. More than half take one to four weeks or more to make changes based on the lessons learned. The results of the BCG research are discussed in a new article, “Profiting from Personalization,” which can be downloaded here. To arrange an interview with one of the authors, please contact Eric Gregoire at +1 617 850 3783 or gregoire.eric@bcg.com. About The Boston Consulting Group The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 85 offices in 48 countries. For more information, please visit bcg.com. About bcgperspectives.com Bcgperspectives.com features the latest thinking from BCG experts as well as from CEOs, academics, and other leaders. It covers issues at the top of senior management’s agenda. It also provides unprecedented access to BCG’s extensive archive of thought leadership stretching back 50 years to the days of Bruce Henderson, the firm’s founder and one of the architects of modern management consulting. All of our content—including videos, podcasts, commentaries, and reports—can be accessed by PC, mobile, iPad, Facebook, Twitter, and LinkedIn.


News Article | February 28, 2017
Site: www.businesswire.com

BOSTON--(BUSINESS WIRE)--Agile Alliance, The Boston Consulting Group (BCG), and Project Management Institute (PMI), today announced the formation of a coalition dedicated to becoming the leading authority on strategic initiative management with the aim of helping enterprises reduce the failure rate of large-scale strategic initiatives and avoiding the resulting loss of competitive advantage and destruction of value. As founding members of the Brightline™ Initiative, these three organizations are developing a platform that will offer CXOs insights and solutions to bridge today’s recurring and expensive gaps between strategy development and strategy implementation. A report by the Economist Intelligence Unit of more than 500 senior executives worldwide found that 61% admit their organizations struggle to deliver the expected results of strategy planning, and only 56% of strategic initiatives were implemented successfully. The amount of money wasted as a result of poor implementation is a staggering 30 cents on every dollar of investment in organizations that are the worst performers, PMI research shows. According to BCG, only 24% of organizations deliver consistent total shareholder returns. Being able to adapt to regulatory changes, competitive pressures, and stakeholder needs requires the ability to develop and successfully implement strategy. The work of the Initiative will be shaped through a diverse coalition of highly influential thought leaders from the business, government, academic, and social sectors. Along with Agile Alliance, BCG, and PMI, new members of the Coalition from other sectors will join in to develop and champion best practices for strategic initiative management. Coalition members will also help shape the Initiative’s principles and global standards and framework for strategy implementation. Ricardo Vargas, Executive Director of BrightlineTM, describes the Initiative this way, “ The Brightline Initiative, bringing together the thought leadership of the Coalition will integrate the best of the existing knowledge surrounding strategy implementation and link it to initiative management. It will deliver insights and solutions, empowering leaders to successfully transform their organization’s vision into reality through strategic initiative management.” The Initiative will take a holistic approach, providing thought and practice leadership that will include frameworks and cutting-edge research, networking through events and membership, and capability building through a resource library, education programs, and publications. For more information, or for media inquiries, please visit Brightline.org or contact Ricardo Viana Vargas at ricardo.vargas@brightline.org. The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 85 offices in 48 countries. For more information, please visit bcg.com. Agile Alliance is a nonprofit organization dedicated to promoting the concepts of Agile software development as outlined in the Agile Manifesto. With nearly 35,000 members and subscribers around the globe, Agile Alliance is driven by the principles of Agile methodologies and the value delivered to developers, organizations and end users. Agile Alliance organizes and supports events to bring the Agile community together on a global scale. Project Management Institute (PMI) is the world's leading association for those who consider project, program or portfolio management their profession. Founded in 1969, PMI delivers value for more than three million professionals working in nearly every country in the world through global advocacy, collaboration, education and research. We advance careers, improve organizational success and further mature the project management profession through globally-recognized standards, certifications, communities, resources, tools, academic research, publications, professional development courses and networking opportunities. Visit us at PMI.org, www.facebook.com/PMInstitute and on Twitter @PMInstitute.


News Article | March 1, 2017
Site: globenewswire.com

GENEVA, March 01, 2017 (GLOBE NEWSWIRE) -- New technologies are transforming the engineering and construction (E&C) sector at an accelerated pace, according to a new report compiled by the World Economic Forum in collaboration with The Boston Consulting Group (BCG). The report being released today, Shaping the Future of Construction: Inspiring Innovators Redefine the Industry, analyzes ten innovation leaders, identifies key success factors, and makes policy recommendations for accelerating innovation in construction. Relative to other industries, productivity in E&C has stalled over the past 50 years. Technology was not making any fundamental advances, and companies remained averse to changing their traditional methods. Recently, however, transformative technological developments have emerged, and some pioneering firms have adopted them for current projects. These developments—3D printing, building information modeling, wireless sensing, and autonomous equipment, to name just a few—are already starting to turn traditional business models upside down. The ten lighthouse innovation cases in the report illustrate the value of embracing innovations. Prominent flagship projects, such as Dubai’s Burj Khalifa, the world’s tallest building, and The Edge in Amsterdam, the world’s most sustainable office building, showcase state-of-the-art innovation. So too do the various pilot projects or startups that the report analyzes, such as the 3D printing of houses by the Chinese company Winsun or the predictive analytics of construction data by the Chicago-based firm Uptake, Forbes’s hottest startup of 2015. Jointly, their inspirational stories give a glimpse of the industry’s future. “To paraphrase William Gibson: the future of construction is here now—it is just not evenly distributed. Innovative companies and projects, as described in the report, demonstrate the art of the possible and how to address the challenges involved,” says Philipp Gerbert, a BCG senior partner and coauthor of the report. “The impact of these innovations on the traditional construction ecosystem will be interesting to follow. We see a widening gap between the innovation laggards and leaders, in particular with regards to their digital transformation.” On the basis of BCG’s analysis of these successful innovators, the report suggests ways for companies to stimulate innovative ideas, turn those ideas into reality, and ultimately succeed in the market. Pioneering firms, for instance, create an innovation-friendly culture that rewards risk taking; they take a longer-term product perspective, rather than thinking in terms of individual projects; and they proactively shape the regulatory environment. Companies have nothing to gain from delaying. Once they implement innovations, the benefits—lower costs, shorter delivery times, and reduced environmental impact—can begin to accumulate. Governments are crucial participants in the transformation of the construction industry. They need to create an environment conducive to the adoption of innovative technology as a regulator, strategic incubator, or project owner. The report recommends that governments should update building codes, move to performance-based and forward-looking standards, and introduce more flexible procurement models in infrastructure projects to overcome typical hurdles for innovation. In fact, infrastructure is again high on the agenda in almost all regions of the world. In the words of John Beck, president and CEO of Aecon Construction Group, one of Canada’s leading construction companies: “There has always been a mismatch between the need for infrastructure assets and the capital to fund them. We now have a new opportunity to narrow that gap—by leveraging all the remarkable innovations that have emerged in recent years.” For infrastructure and other built assets alike, innovation will boost the value over their entire life cycle. As construction companies reap the benefits of innovation, so too will their clients and the community at large. “Incremental change is not an option; by redefining the ultimate frontier, leapfrogging innovations in construction will finally help to address major societal challenges, from mass urbanization to climate change,” says Michael Buehler, head of infrastructure and urban development at the World Economic Forum. “The widespread adoption of these innovations is going to make a serious difference, both economically and environmentally.” The report can be downloaded at www.bcgperspectives.com. To arrange an interview with one of the authors, please contact Eric Gregoire at +1 617 850 3783 or gregoire.eric@bcg.com. About The Boston Consulting Group The Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 85 offices in 48 countries. For more information, please visit bcg.com. About bcgperspectives.com Bcgperspectives.com features the latest thinking from BCG experts as well as from CEOs, academics, and other leaders. It covers issues at the top of senior management’s agenda. It also provides unprecedented access to BCG’s extensive archive of thought leadership stretching back 50 years to the days of Bruce Henderson, the firm’s founder and one of the architects of modern management consulting. All of our content—including videos, podcasts, commentaries, and reports—can be accessed by PC, mobile, iPad, Facebook, Twitter, and LinkedIn.

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