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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 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 | June 28, 2017
Site: globenewswire.com

DALIAN, China, June 27, 2017 (GLOBE NEWSWIRE) -- China’s overall GDP growth is slowing, but its consumer economy is still growing by 10% a year, faster than that of any other country on the planet. By 2021, China will add $1.8 trillion in new consumption. That is roughly the size of Germany’s consumer economy today, and more than one-fourth of all consumption growth in major economies. Those are among the key findings of a new report by The Boston Consulting Group (BCG) and AliResearch, the research arm of Alibaba Group. The report, titled Five Profiles that Explain China’s Consumer Economy, is being released today. Underlying macroeconomic factors are leading to strong growth in the consumer economy.  Even as overall economic growth eases, China’s consumer economy is benefiting from an emerging upper-middle-class and affluent households, a younger population that is eager to spend, and e-commerce through digital channels. “Because of these factors, Chinese consumers in the aggregate are spending more, and they’re trading up to higher-quality products,” says Jeff Walters, a partner at BCG and coauthor of the report. “Digital technology is one of the underlying drivers that will continue to spur purchases. The Chinese population is more connected than people in other countries, and by 2021, 90% of all purchases in China will involve digital at some point in the process—browsing, comparing prices, or making the actual purchase.” “The consumer economy in China is one of the most digitized in the world. The popularity of the internet is influencing consumer behavior as consumers rely heavily on the internet for all kinds of goods and services. We also believe the rising trend of a seamless convergence between the online and offline worlds will become an important driving force for the growth of consumption going forward,” said Gao Hongbing, dean of AliResearch and vice president of Alibaba Group. Consumer companies that want to capitalize in China need to acknowledge these trends, but they also need to go deeper. As China’s economy matures, its consumers are becoming more diverse. Rather than targeting large, homogenous demographic segments, companies need to understand the emerging profiles of these consumers, along with their distinct preferences and needs. To that end, the report identifies five emerging consumer profiles in China, which illustrate the ways in which macroeconomic and demographic shifts are playing out at a micro level. Here’s a sample of the profiles described: For consumer companies, tapping into these new profiles requires more accurately segmenting consumers, understanding their needs to ensure that new products and services resonate, and seamlessly integrating the customer experience between digital channels and physical stores, among other priorities. “A lot is changing in China, but the fundamental story is one of very strong growth through 2021,” says Walters. “This market is growing by trillions of dollars, and companies that take the right steps today will set themselves up to win over the long term.” 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. The Boston Consulting Group’s Center for Customer Insight (CCI) applies a unique, integrated approach that combines quantitative and qualitative consumer research with a deep understanding of business strategy and competitive dynamics. The center works closely with BCG’s various practices to translate its insights into actionable strategies that lead to tangible economic impact for our clients. In the course of its work, the center has amassed a rich set of proprietary data on consumers from around the world, in both emerging and developed markets. The CCI is sponsored by BCG’s Marketing, Sales & Pricing practice and Global Advantage practice. For more information, please visit www.bcg.com/expertise/centers-accelerators/center-customer-insight/default.aspx. About Alibaba Research Institute (AliResearch) Founded in 2007, AliResearch is committed to becoming the think tank and intellectual platform of the new economy and new governance. Relying on the large and dynamic online business ecosystem of Alibaba Group, AliResearch creates and shares future-oriented new ideas, new insights and new rules, and collaborates with other researchers and organizations in all fields.


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

CHICAGO, Aug. 10, 2017 (GLOBE NEWSWIRE) -- For all its many strengths—a robust economy, sound transportation system, cultural vitality, and livability—Chicago is disappointing when it comes to well-being, according to a new report by The Boston Consulting Group (BCG). The report, Four Imperatives for Boosting Well-Being in Chicago, is being released today. In a benchmarking of 15 of the nation’s highly populous metro areas, the Second City ranked 12th overall in the level of well-being it achieves for its residents. San Francisco and Seattle came in first and second, respectively; Philadelphia, Miami, and Detroit turned in performances that were worse than Chicago’s. In addition to analyzing and comparing Chicago’s outcomes against those of peer metro areas, the report examines the city’s challenges and strengths and explores strategies that other cities have followed to address similar issues. “With all of the negative press Chicago gets, it’s easy to overlook the city’s powerful assets—assets that could be put to so much greater advantage,” says Marin Gjaja, a BCG senior partner and a coauthor of the report. “We hope this report helps policymakers, leaders, and the public gain a better understanding of Chicago’s performance; identify areas ripe for quick wins; and uncover opportunities to support and advance long-term change.” The report’s 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. The SEDA metro index is based on performance in five key elements: economics, investments, sustainability, equality (of access and outcomes in income, health, and education), and attractiveness (a measure of innovation, talent, culture, and livability). Performance in these elements is, in turn, measured through widely used metrics of 16 underlying dimensions. The city’s overall ranking of 12th belies its notable strengths: economic potential, low cost of living (only 6% above the US average), an accessible and extensive transportation infrastructure, and attractiveness—the city’s strongest element in the SEDA ranking. Chicago’s educated talent pool is another asset: the city ranks fourth in the number of graduates with advanced degrees. The city’s diverse economic base matches that of the broader US economy more closely than any other city. And despite its relatively low ranking, Chicago produces its level of well-being with a slightly lower GDP per capita than expected. Still, Chicago could get more well-being for its buck. A deeper look reveals that the city isn’t sufficiently leveraging its strengths. Although Chicago ranks third in GDP overall, it is 12th both in GDP growth and in GDP per capita when compared with its highly populous metro area peers. The disparity between GDP and GDP per capita for Chicago is wider than that of any other metro area; the greatest contributing factors to this gap, according to the authors, are industry mix and worker productivity. Although diversified, Chicago’s industry base is made up largely of legacy 20th-century industries. Moreover, the proportion of the city’s workers in any given sector who are in higher-productivity positions is smaller than in comparable cities. Chicago’s struggling neighborhoods are far more segregated than those of its two larger peer cities, New York and Los Angeles. The concentration of poverty and poor socioeconomic outcomes in relatively few neighborhoods has proven intractable. Perhaps the worst effect of poverty in these districts is the extreme concentration of violent crime: some 65% of the city’s shootings occur in only 15 neighborhoods. The gaps in outcomes (such as unemployment, education attainment, life expectancy, and household burden) between Chicago’s struggling neighborhoods and the rest of the city are far greater than in comparable cities. “For Chicago, the pursuit of greater well-being must start here, in these neighborhoods. It’s a matter of moral and economic urgency,” says Justin Manly, a Chicago-based BCG partner and a coauthor of the report. The report identifies four imperatives that Chicago must execute in order to recapture its standing as a vibrant, modern city that makes assets and opportunities available to all its residents. “Now is a crucial moment for Chicago,” says Manly. “We must continue to address Chicago’s struggling neighborhoods, and that should be the first priority. At the same time, we must find greater ways to build on Chicago’s economics strengths, invest in homegrown talent and startups, and better brand Chicago to the world.” Since 2012, BCG has been using its SEDA well-being tool to conduct worldwide comparative analyses of country-level well-being. The framework was adapted for state level analysis and, more recently, metropolitan area analysis, by adding the elements of equality and attractiveness. Four Imperatives for Boosting Well-Being in Chicago follows The Path Forward for Illinois: Prioritizing Well-Being in the Prairie State, the inaugural report of BCG’s Center for Illinois’ Future. Located within the firm’s Chicago office at 300 N. LaSalle Drive, the center was established to consolidate BCG’s social impact  work in Illinois and to 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 http://centerforillinoisfuture.bcg.com. A copy of the report can be downloaded at http://on.bcg.com/2waEn5t. To arrange an interview with one of the authors, please contact Alexandra Corriveau at +1 212 446 3261 or corriveau.alexandra@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 more than 90 offices in 50 countries. For more information, please visit bcg.com.


News Article | August 3, 2017
Site: globenewswire.com

BOSTON, Aug. 03, 2017 (GLOBE NEWSWIRE) -- Among companies in Europe and the United States, the gap between digital top performers and laggards is wide, according to “Beyond the Hype: The Real Champions of Building the Digital Future,” an article by The Boston Consulting Group (BCG), for which some 1,300 companies estimated their level of digital maturity. While the top performers achieve a high level of digital performance, around one in four companies is at risk of missing the boat. “Digitization is creating a deep divide in the corporate landscape worldwide. Companies that fail to keep up could lose a lot of their significance in the future,” says Massimo Russo, a BCG senior partner and a technology expert. “While the digital champions can be found particularly among telecommunications and technology companies, other industries are finding the transition to software solutions and services more difficult. They often develop and market digital products and services that don’t appeal to target customers, who often differ from their traditional clients.” The study’s foundation is BCG’s Digital Acceleration Index (DAI), which is based on companies’ self-assessment of their level of digital maturity in 27 digital dimensions. Companies with a DAI score of 67–100 DAI points are ranked as top performers, while those with a DAI score of 43 or less are considered laggards. (Please see the corresponding BCG infographic, “What Digital Champions Do Differently.”) The United States Has More Top Performers Than Europe According to the survey, the US has 20% more digital top performers than Europe, putting the US market on a faster track toward digital transformation. Overall, 28% of US companies were digital champions and 23% were laggards. In Europe, 23% were champions and 25% were laggards. The US top performers excel at reinventing or disrupting their own business models (90 DAI points compared with 84 DAI points in Europe), using analytics (for example, collecting machine data in the agriculture industry in order to optimize harvests), and reinventing the customer experience. US companies are also further along than their European counterparts in creating digital acceleration centers to coherently drive innovation (85 DAI points compared with 80), and in extracting financial gains from digital (78 DAI points compared with 72). “Ambitious goals, combined with a clear implementation timeline, are crucial for digitization. The more confident companies are in their abilities when it comes to digitization, the greater their progress toward competitiveness and future readiness,” says Bharat Khandelwal, a BCG partner and an expert on technology and digital transformation. As a result of the analysis, the authors concluded that a company’s digital development is more industry specific than country specific, driven by similar starting points and a similar affinity for digitization. Not surprisingly, the telco and technology industries are the most advanced. Among US telcos, 41% are digital champions with their own digital offerings (such as Internet of Things applications) and digital customer journeys, whereas only 30% of European telcos are digital champions. For years, companies in these industries have been using experienced software developers to develop digital products and services and interacting with customers through digital channels. Other industries have yet to learn many of the digital tactics that tech companies and telcos have been deploying and that have become integral to their value creation. By their own estimates, companies that manufacture mechanical and electrical equipment in the US and Europe have the largest shares of laggards (US 31%, Europe 33%). “Many mechanical manufacturing firms are currently facing the decision of whether to primarily sell machines or to additionally offer their customers services in the fields of data analysis, artificial intelligence, and robotics. To do so, they will initially have to invest more, especially in their software and IT capabilities and in the digitization of their processes,” says Russo. (For more on the challenges of switching to digital, please see BCG’s article “How Hardware Makers Can Win in the Software World.”) The study identified three factors that companies in the group of digital top performers have in common. Digital top performers benefit from the fact that the management board drives the digital agenda: “Digitization is a management issue. The digital transformation can succeed only if the management board sets ambitious targets and manages them through a transformation office. It is also critical to have a unit responsible for new digital products and to work more intensively with agile methods throughout the organization. Top performers also avoid piloting pure technical gimmicks and use process digitization to improve their performance,” explains Russo. The top performers state that they want to primarily expand their digitized production and set up their IT more efficiently by 2020. As Khandelwal notes, “With the onset of digitization, many companies built up a veritable IT jungle. Those that are now in a position of strength should use it to free themselves of the legacy issues in their IT architecture.” Many laggards indicate that they want to focus on digitizing their processes and optimizing their IT landscape in the coming years. At the same time, they want to expand their digital customer communication and use of customer data. “Expanding the digital customer interface and using it to collect data is an important step for digital laggards. Only then will they be able to sustainably generate revenue in the future and increase their scope for investment,” says Khandelwal. About the Study For our 2017 study, we asked 1,300 companies in Europe and the United States to estimate their digital maturity on a scale of 1 to 4 in 27 categories. We then aggregated those raw scores, assigned values to their responses on a scale of 0 to 100, and weighted them to determine each company’s overall performance on our Digital Acceleration Index (DAI). Companies with a DAI score of 67 to 100 qualify as top performers, while those with a DAI score of 43 or less are laggards. 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 more than 90 offices in 50 countries. For more information, please visit bcg.com.


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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