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1、11/1/2023,Andersen Consulting 2000,1,Lecture Management Consulting:An Introduction,2023/11/1,2,AGENDA,Introduction/ExpectationsExample consultant companyConsulting:Nature,Trends,CareersSelected Methods(frameworks)Research(some basics)Graphics(from data to chart),2023/11/1,3,AGENDA,Introduction/Expec
2、tationsExample consultant companyConsulting:Nature,Trends,CareersSelected Methods(frameworks)Research(some basics)Graphics(from data to chart),2023/11/1,4,Our Mission:Helping our clients create their future.,ACCENTURE:MISSION AND VISION,Our Vision:To become one of the worlds leading companies,bringi
3、ng innovations to improve the way the world works and lives.,2023/11/1,5,One Global Firm Act to enhance the collective values of the global partnership,while sustaining local culture.,Stewardship Think future oriented;act and invest to build a stronger firm for tomorrow.,Integrity Act with openness
4、and honesty.Always.,Respect for the Individual Treat each person as we would like to be treated.,Quality Client Service Understand and meet client expectations 100 percent of the time.,Best People Are highly competent and make a commitment to excellence,teamwork,and the success of our clients.,ACCEN
5、TURE:CORE VALUES,2023/11/1,6,1989 Andersen Consulting becomes a separate business unit from Arthur Andersen$1.6 billion21,400 employees1991Horizon 2000 Initiative to develop mission and strategic plan$2.3 billion25,000 personnel1993Andersen Consulting issues its first annual report$2.9 billion27,000
6、 employees,1997Andersen Consulting creates a global network of communications-focused solution centers in an effort to set the standard for speed and quality of performance$6.6.Billion 53,000 employees1998$8.3 billion65,000 employees2000Joe Forehand becomes Managing Partner and introduces the 100 Da
7、y PlanAndersen Consulting wins arbitration against Arthur AndersenAccenture,formerly known as Andersen Consulting,ACCENTURE:IMPORTANT MILESTONES,2023/11/1,7,ACCENTURE GLOBALLY,Employees:over 65,000Countries:48Revenue 99:8,9 Billion USD Clients:The vast majority of Fortune 30 most profitable global p
8、ublic companies Nearly 75%of Fortune 200 global companies100 of the most significant“Industry Standard”Internet companies,2023/11/1,8,ACCENTURE:DEVELOPMENT OF REVENUES,(U.S.Billions),2023/11/1,9,ACCENTURE:GLOBAL PERSONNEL GROWTH,1997,53,426,1996,44,801,1995,38,027,1994,32,711,1998,65,134,2023/11/1,1
9、0,Americas,EMEAI,Asia/Pacific,Hamburg,Frankfurt,Mnchen,Dsseldorf,Berlin,Wien,Zrich,ASG Austria,Switzerland,Germany,ACCENTURE IN ASG,2,750 Employees7 OfficesRevenues:1,24 Mrd.DM,2023/11/1,11,Global Competitive Overview,Strategy,Digital Equipment,McKinsey,Andersen Consulting,Organization,Processes,Inf
10、ormationTechnology,Business ProcessManagement(Outsourcing),Cap Gemini Sogeti,UNISYS,IBM,Computer Sciences,EDS,Boston Consulting,Booz Allen,2023/11/1,12,ACCENTURE:MARKET UNITS,Financial ServicesBankingHealth ServicesInsuranceProductsAutomotive,Industrial Equipment,Travel&TransportationConsumer&Pharma
11、ceutical ProductsRetailCommunications&High TechCommunicationsElectronics&High TechMedia&EntertainmentResourcesChemicals Energy&Natural ResourcesUtilitiesGovernment,2023/11/1,13,ACCENTURE:SAMPLE CLIENT LIST,2023/11/1,14,AGENDA,Introduction/ExpectationsExample consultant companyConsulting:Nature,Trend
12、s,CareersSelected Methods(frameworks)Research(some basics)Graphics(from data to chart),2023/11/1,15,NATURE,TRENDS,CAREERS,Nature and purpose of consulting,Recent trends and current challenges,Staff and career paths in consulting,2023/11/1,16,NATURE AND PURPOSE OF CONSULTING,Nature and Purpose of Con
13、sultingDefinition of Consulting“Brief look into historyDifferent types of consultingConsulting market overviewConsultant:Profession descriptionConsulting strategiesShort overview over the consulting processReasons for clients to hire external consultantsGuidelines for the client-consultant relations
14、hip,2023/11/1,17,DEFINITION OF CONSULTING,Definition of ConsultingTo give expert advice or provide expert counsel.“(IKS)Consulting provides value by diagnosing,strategizing,designing,constructing,integrating,operating,or implementing solutions.Consulting utilizes relevant knowledge,based on integrit
15、y and objectivity,in both expert and advisory roles.“(Consulting Services Team)Consulting is whatever a consultant does.(Cambridge Computer Services),2023/11/1,18,CONSULTING HISTORY(1/2),Brief look into history1532Macchiavellis Il Principe“1886Foundation of the analytical testlab“by Arthur D.Little1
16、895A piece rate system“by F.Taylor1909Foundation of Arthur D.Little,Inc.1911The principles of scientific management“by F.Taylor1911Motion Study“by F.Gilbreth1912Consulting Firms“by F.Gilbreth1914E.Booz sets up Business Research Services1925J.O.McKinsey starts his Consulting firm1934Urwick,Orr&Partne
17、rs:Management ist lehr-und lernbar1939Peter Drucker The end of economic man“1947Foundation of the Travistock Institute,2023/11/1,19,CONSULTING HISTORY(2/2),Brief look into history1949Robert Wiener Cybernetics“1950Marvin Bower becomes CEO of Mc Kinsey and starts with the expansion1951First Deming-Ava
18、rd for Quality in Japan1954Foundation of the BDU1954Peter Drucker:The practise of management“1957Argyris:Personality and Organization“1959Herzberg,Mausner,Snyderman:The motivation to work“1960Mc Gregor:The human side of enterprise“,Maslow:Motivation and Personality“1963Foundation of Boston Consultin
19、g Group1965Foundation of the first two Business Universities in Great Britain,2023/11/1,20,EVOLUTION OF CONSULTING FOCUS,198019851990199520002005,Quality ManagementLean ManagementRe-engineeringERP projectsWeb TechnologyE-CommerceCRMM-Commerce Strategy,2023/11/1,21,TYPES OF CONSULTING,Different types
20、 of management consultingStrategyAdvice and counsel about corporate-level or business-unit strategiesOperations Management Figuring out how to improve the efficiency or productivity of how a business worksHuman Resources Compensation and benefits advice,attracting,motivating,and retaining high quali
21、ty employeesInformation TechnologyDesign,implement,test and roll-out new IT or install and operate massive packaged software solutions“.,2023/11/1,22,Worldwide Professional Services Market,$billions,Source:Dataquest,$250,$475,$45,$85,$25,$5,$0,$100,$200,$300,$400,$500,$600,1990,1999,2003,STRATEGY VS
22、.IT-CONSULTING,18%annual growth,Pure Strategy,IT-related Service,2023/11/1,23,GERMAN CONSULTING MARKET OVERVIEW,German Consulting market overview1998:62.500 Management-,Personnel-and IT-Consultants(BDU e.V.)13.200 Consulting CompaniesTotal revenues:18,8 bn.DM(BDU e.V.)1999:64.500 Management-,Personn
23、el-and IT-Consultants(BDU e.V.)14.300 Consulting CompaniesTotal revenues:21,3 bn.DM(BDU e.V.),2023/11/1,24,TOP 20 CONSULTING COMPANIES WORLDWIDE,2023/11/1,25,TOP 30 CONSULTING COMPANIES IN GERMANY,Source:Lnendonk Consultancy+Research GbR,Hamburg,2023/11/1,26,WHERE DO YOU WANT TO GO TODAY?,A scene fr
24、om Lewis Carrolls Alices Adventures In Wonderland,when Alice asks the Cheshire cat for directions,speaks volumes about planning where an organization wants to be in the future.Would you tell me,please,which way I ought to go from here?asks Alice.That depends a good deal on where you want to get to,s
25、aid the Cat.I dont much care where.said Alice.Then,it doesnt matter which way you go.said the Cat.,2023/11/1,27,REASONS TO HIRE EXTERNAL CONSULTANTS(1/2),Reasons for clients to hire external consultants(1):Existing companies are not ready for the pace globalization and vanishing market barriers they
26、 face-need Consultants with broad market/industry knowledgeIncreasing M&A activities-High complexity of transactions and tasks related to Post Merger IntegrationChallenges of the high tech environment:employees are wholly occupied with daily work and dont have the time to think about innovationsChan
27、ging working environment necessitate creative and up-to-date HR ManagementDeregulation enabled new companies to enter the market.In order to position and compete against former monopolists they need industry related consulting experience(+other way round,ex-monopolists try to defend themselves again
28、st new market entries using the knowledge of external companies),2023/11/1,28,REASONS TO HIRE EXTERNAL CONSULTANTS(2/2),Reasons for clients to hire external consultants(2):Consultants have access to information on a truly global basis(Knowledge Exchange)Widespread acceptance of using consultants to
29、gain outside expertise.Rapid technological change.Movement to enterprise wide solutions.Lack of in-house expertise in Processes,technologies,industry best practices,and project management.,2023/11/1,29,BENEFITS OF USING CONSULTANTS,Subject matter expert:A consultant will save time and money by arriv
30、ing to a solution to the clients needs at a faster pace because of past extensive knowledge and experience in dealing with other business owners.Objective point of view:A consultant will bring a refreshing outside point of view to the clients company,which will pin-point existing problems or reach f
31、aster solutions.Educate,inform:A good consultant will educate and inform the client as the task is completed.Share information about industry and competition:This is essential to reaching company goals.Assist with strategic planning which will help reach company goals faster and easier.Offer innovat
32、ive ideas,2023/11/1,30,WORK AND LIFESTYLE CHARACTERISTICS,Work at client siteWork in team environmentWork with a variety of clients across industriesAssess client business and technical challengesDevelop solutions to move client forwardExtensive traveling Enriching learning experienceCyclical overti
33、meTravelVariety of responsibilitiesWork with technology,2023/11/1,31,TOP 10 WAYS TO KNOW YOU ARE DATING AN CONSULTANT,1.Refers to lovemaking as a win-win.,2.Valentines Day card has bullet points.,3.Cant be trusted with the car-too accustomed to beating up rentals.,4.Celebrates anniversary by conduct
34、ing a performance review.,5.Ends any argument by saying,lets talk about this off-line.,6.Tries to call room-service from the bedroom.,7.Congratulates your parents for successful value creation.,8.Referred to the yield of the tomato plants in your home garden as deliverables,9.Talks to the waiter abo
35、ut process flow when dinner arrives late.,10.Referred to the first month of your relationship as a diagnostic period.,2023/11/1,32,NATURE,TRENDS,CAREERS,Nature and purpose of consulting,Recent trends and current challenges,Staff and career paths in consulting,2023/11/1,33,RECENT TRENDS AND CURRENT C
36、HALLENGES,Changing customer expectationsIncreasing market power of the TOP consulting companiesEffective usage of information technologySplit Tax/Auditing-ConsultingStrategic Alliances and Start-up PartnershipsNew suppliers enter the consulting marketExpansion of the well known consulting companiesI
37、T consulting by traditional consulting companiesGet&retain the right peopleHow to face the current challenges,2023/11/1,34,CTOs and other e-business strategists do not want to hear me tell them I can help Web-enable their business.That is not enough.They want to know how I can help them transform th
38、eir business.-Chuck Burns,global senior vice president,services,KPMG CTOs have more choices than ever before when it comes to selecting a consultant.We go into bids now where we may compete against one of the giant,Big Five firms.and even,in some cases,an advertising or marketing agency.-Scott Lochr
39、idge,principal,strategy solutions group,DiaLogos The days of black magic are over,Consultants can no longer get away with just writing a white paper for the client and saying,OK,now you do what I say.”-Jose Campos,president of Rapidinnovation,CHANGING CUSTOMER EXPECTATIONS SOME STATEMENTS,2023/11/1,
40、35,CHANGING CUSTOMER EXPECTATIONS,Customer expect real added valueStandard Implementations are decreasing while individual end-to-end solution become much more important Unsuccessful ERP implementations in the 90s made the customer more aware of risks and challenges-Customer are much more sensitive
41、to what they get for their money Results in new payment schemes like:Fixed price(especially done by smaller/start-up companies)Risk and reward sharing Equity payment Payment in terms of%-age of actual value added On time delivery clauses in contract,2023/11/1,36,INCREASING MARKET POWER OF THE TOP 20
42、 CONSULTING COMPANIES,Facts40 TOP Consulting Companies increased their market share in Germany from 42 to 45%Average growth rate of the TOP Player:19,5%/p.a.Smaller Consulting companies:4,0%/p.a.Acquisitions of smaller and mid-sized consulting firms by the larger companies in order to diversify thei
43、r market offerPlanned partly IPO of KPMG,Arthur D.Little,Andersen Consulting also investigating Increasing market power and influence through ventures,e.g.-AC Venture-McKinseys“New Venture”-Roland Berger&bmp,2023/11/1,37,SPLIT TAX/AUDITING REASONS AND CONSEQUENCES,ReasonsU.S.Security and Exchange Co
44、mmission:Critical if Consulting Companies advice clients that are audited by the same company Higher margins and growth rates in consultingInability for consulting part to raise money by going public as long as they are part of auditing companiesConsequencesConsulting companies can and will go publi
45、c(e.g.KPMG)No more legal restrictions for consulting companies to advice other companiesDifferentiation process will accelerate(increasing marketing activities)Repositioning needs,2023/11/1,38,SPLIT TAX/AUDITING-CONSULTING,ExamplesAndersen Consulting vs.Arthur Andersen:Arbitration Decision in order
46、to allow Andersen Consulting to split from Arthur AndersenKPMG:IPO of KPMG Consulting BusinessCisco took 20%stakeAnother 20%for the accounting partHewlett Packard interested to buy PriceWaterhouseCoopers Management and IT Consulting partCap Gemini to buy consulting piece of Ernst&YoungA.T.Kearney an
47、d EDS,2023/11/1,39,STRATEGIC ALLIANCES OF ACCENTURE,2023/11/1,40,ALLIANCES AND PARTNERSHIPS:SOME EXAMPLES,Cap Gemini:-Siebel Systems-IBM-Sun Microsystems-Microsoft KPMG:-Compaq-Cisco-Microsoft-JD Edwards CSC:-Peoplesoft-Broadvision-IBM-Lucent-Nokia EDS:-Sun Microsystems-SAP-Oracle-Cisco,2023/11/1,41
48、,NEW COMPETITORS ENTER THE CONSULTANT MARKET,New Suppliers enter the consulting marketHardware manufacturers-HP already increased their number of in-house consultants to 6.000+potential PriceWaterhouseCoopers partInternet service providers,e.g.Pixelpark buying the Swedish Consulting firm“Cell Networ
49、k/Mandator”Building Inhouse-Consulting capabilities“-Siemens(Siemens Business Services providing ERP,CRM implementations)-SAP System-Deutsche Telekom buying majority stake in Debis SystemhausFinancial Institutions and Telecommunication companies,2023/11/1,42,EXPANSION OF WELL KNOWN CONSULTING COMPAN
50、IES,Expansion of the TOP consulting companies through M&A,alliances,ventures and strategic partnerships.Chance to expand business and opening new marketsAfter M&A,differentiation becomes critical,therefore high advertising budgetsIPO Strategies:Raise money for eCommerce strategy Venture Capital fund
