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  • How to Diagnose the Causes of Digital Failure

    How to Diagnose the Causes of Digital Failure

    Banktech, 1 May 2014

    Gordon and Odunuga look into the three main reasons U.S. banks’ digital strategies often remain unfulfilled: organizational misalignment, rigid digital strategy, and a lack of customer-centered design and development.


  • Beyond Big: The Analytically Powered Organization

    Beyond Big: The Analytically Powered Organization

    How can organizations operationalize and monetize the promise of big data for their enterprises?

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    Big data promises to transform both top and bottom lines, but few organizations have been able to operationalize and monetize this promise for their enterprise. Successfully managing big data and analytics is not about having the right technology, operating model, or people, but about tying these three vital aspects together to create a culture anchored by differentiated analytics.

    In January 2014, A.T. Kearney and Carnegie Mellon University jointly hosted an executive roundtable to discuss how this is being done in a variety of industries. Held at Carnegie Mellon University, the Beyond Big roundtable explored how data’s influence is felt in spheres as diverse as politics, sports, insurance, and shopping. The forum brought together thought leaders and practitioners in data to share their experiences and perspectives on the opportunities and challenges of tapping into the promise that analytics holds for helping to bring about game-changing outcomes.

    This paper reflects the content delivered by the speakers and participants during the roundtable, along with responses to questions that arose in the course of discussion.

  • Next-Generation Economic Clusters

    Next-Generation Economic Clusters

    These emerging economic clusters have jump-started industries and accelerated economic development in mature and developing markets worldwide.

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    Globally, economic clusters (EC) are abundant in a variety of forms: special economic zone, industrial zone, free zone, economic city, and technology cluster. Examples of successful ECs can be found across industry sectors and geographic regions, including aerospace in Brazil's Embraer Cluster, biomedical applications in Singapore's Biopolis, and petrochemicals and steel products at the Jubail and Yanbu Industrial Cities; in the United States, Michigan’s Economic Development Corporation helped transform the state’s automotive industry by developing high-tech and clean-tech emerging skills and capabilities.

    Yet, ECs have frequently started without a clear strategy to meet their economic development objectives. Only by clearly defining their playing field and truly differentiating themselves can many ECs become true incubators of economic development.

    Key considerations include focusing on sectors and parts of the value chain, and aligning with the long-term local or regional economic development agenda; orchestrating the right ecosystem to enable sector and value chain growth; and creating a sustainable link to the host country economy.

    For the incubator to flourish, it needs to function as an ecosystem, bringing together and balancing various enablers to access a market. These enablers include a focused strategy, sound facilities and infrastructure, favorable regulations and ease of doing business, talent and technology development, access to capital and financing, and promotion of small and medium-sized enterprises and entrepreneurs.

  • Three Steps to Clarify the Cloud

    Three Steps to Clarify the Cloud

    Defense News, 4 April 2014

    Jeffrey Sorenson, A.T. Kearney partner, explains what “cloud computing” means, the benefits gained from leveraging cloud computing services, and an awareness of the challenges often faced when implementing these services.


  • IT Cost Transformation

    IT Cost Transformation

    Out-of-control IT costs call for a more radical approach, one that considers the big picture.

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    For many IT departments, costs are climbing steadily while demand and complexity are growing. Increasing complexity is bringing longer development times, making it difficult for IT departments to satisfy business expectations in a timely, cost-effective manner.

  • Do Organizations of the Future Really Need a Chief Digital Officer?

    Do Organizations of the Future Really Need a Chief Digital Officer?

    Banktech, 27 March 2014

    Charging a single person with executing a digital strategy for the future could be a step in the wrong direction.


  • Unlocking the Value of DHS's Investments

    Unlocking the Value of DHS's Investments

    Homeland Security Today Magazine, March 2014

    Employing six different IT transformation framework perspectives could result in the Department of Homeland Security realizing annual savings of five to 15 percent.


  • The CIO's Role in Operationalizing IT Innovation

    The CIO's Role in Operationalizing IT Innovation

    Today more than ever, technology-driven innovation is contributing to growth. The leading innovators “operationalize” their innovation programs to create lasting success.

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    Chief information officers (CIOs) understand the importance of IT innovation. Ninety percent of CIOs in our latest study on IT innovation say that technology-driven business innovation is crucial for achieving competitive advantage. They understand that the rewards of IT innovation can be impressive—from the retailer that uses big data to reduce its inventory by $1 billion to the bank startup that employs advanced analytics to succeed in the low-income mortgage market.

    Yet on average, just 12 percent of IT budgets are earmarked for innovation (see figure 1). Additionally, only 23 percent of organizations in our study report very positive results from their IT innovation efforts. Why the disconnect? Why do CIOs understand the importance of IT innovation but fail to capitalize on it?

    Good CIOs have added strategic value and insight to their roles for some time, and they long ago shifted away from being traditional back-office operations officers. They have unique access and visibility into the front office and unparalleled views about how to drive success across the organization. These insights can clear a path for innovative ideas that bring transformative change and capitalize on the promise of the digital disruption underway.

  • Cracking the Growth Code in IT-BPO Mergers

    Cracking the Growth Code in IT-BPO Mergers

    What will it take for IT-BPO companies in India to see their M&A strategies pay off?

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    India has been the world's dominant destination for information technology (IT) and business process outsourcing (BPO) services. However, as the market matures the industry has experienced a slowdown in growth, pushing IT-BPO providers toward focused M&A strategies to build and sustain growth momentum. Growth through M&A is now a core strategy influenced by the need to:

    • Fill gaps in service portfolios or geographic presence, to meet client demands and compete with the global majors; examples include Infosys' acquisition of Lodestone to tap its European customer base, Wipro's acquisition of Opus CMC to tap into its capabilities in high-end mortgage BPO, and Genpact's acquisition of Triumph Engineering to bolster engineering capabilities
    • Manage cash reserves more eff ectively to meet shareholders' expectations
    • Capture opportunities from client divestitures of services assets; examples include Cognizant's acquisition of ING's and CoreLogic's captives, TCS' and Wipro's acquisition of Citigroup's captives, and Tech Mahindra's acquisition of Hutch BPO

    Done well, M&A strategies can help Indian players tap into $2 billion to $4 billion in revenues each year. Yet, about 70 percent of mergers fail to create value, as the consolidated companies receive a one-time revenue uplift but miss powerful opportunities to create revenue synergies. This paper takes a closer look at the Indian IT-BPO industry's M&A track record and explores how to harness the power of consolidation to create more value.

  • Mobile Health: Mirage or Growth Opportunity?

    Mobile Health: Mirage or Growth Opportunity?

    View study abstract and view the full report.
    Mobile health presents risks and opportunities for pharma and medtech companies.

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    With chronic disease on the rise in an aging population and advances in medical technology straining the system, Germany’s healthcare system is facing rising costs. Mobile health (m-health) is a technology that will not only help ease this situation for companies in the health industry, but also revolutionize patient care and bring long-term growth. A branch of the e-health market that includes the use of mobile technologies for health services, m-health is applied primarily in the remote monitoring of patients with chronic diseases.

    As the Internet becomes ubiquitous through smartphone and tablet use, the hopes for m-health are high. This paper examines the true potential of m-health for various players in the German healthcare system—particularly those in the pharmaceutical and medical technology industries. Among the key questions answered are:

    • What is the mobile health promise?
    • Why is mobile health still waiting for its big breakthrough?
    • How attractive will the mobile health market be for the German health industry in the future?
    • How can the pharmaceutical industry profit from the mobile health market and what opportunities does m-health present for the medical technology industry?
  • Fixing Software Complexity

    Fixing Software Complexity

    Military Information Technology, 29 November 2013

    An in-depth look at A.T. Kearney's step approach to building an IT application blueprint, designed to reduce the military’s software costs and increase long-term efficiency.


  • The Digital School

    The Digital School

    With a plan in place, schools can make sure that their investments in digital technology don’t go to waste.

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    Digitization has rocked the classroom experience and the education system as a whole with a flood of new technologies that promise to change the way teachers teach and students learn. From tablets and e-readers to interactive whiteboards and online learning programs, classroom technology has become a big business. According to the Center for Digital Education, U.S. elementary, middle, and high schools will spend almost $10 billon on technology in 2013, an increase of $4 billion since 2003.

    Yet cutting-edge technology is so enticing that it’s easy to get caught up in the moment—acquiring new devices before truly understanding how they apply to the classroom and enhance the learning experience. The truth is, despite many successes, there remains uncertainty about the efficacy of technology in the classroom, and how school systems acquire and implement technology remains a challenge. Without a plan in place, even the best technologies can go to waste.

    That’s why today’s schools need a flexible, evergreen process in place that gives students and teachers access to technology while accounting for ever-changing, ever-improving technological advances. This paper examines how those involved in the classroom experience, from administrators to teachers to educational technology firms, can create a structured process for developing a technology strategy and a road map for 21st century learning.

  • Digital Healthcare or Bust in America

    Digital Healthcare or Bust in America

    Digitization could be a major opportunity for healthcare industry players—if they take the right steps.

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    Forecasting the future of any industry is difficult, none more so right now than healthcare in the United States. There are countless reasons why healthcare will look different in the near future, not least of which being the country’s movement toward national coverage. However, digital transformation—the cumulative change that comes when digital technologies are introduced wholesale into an established industry—is poised to have an even bigger impact. For the U.S. healthcare industry, digital technology will be transformational, cutting healthcare delivery costs, eliminating errors through improved electronic medical records, and establishing routinized, evidence-based approaches to treatment.

    Digital forces are pulling at the industry and significantly altering services, products, innovation, delivery, and remuneration (see figure). There are digitally integrated healthcare providers, digital medical devices and technologies, and digital delivery and monitoring of home healthcare. In addition, new ideas are emanating from developing markets, agile competitors are embracing technology, and a digital-friendly federal administration is pushing innovation. And don’t forget the digital consumer who is used to digital banking, digital retailing, and digital education, and expects digital healthcare.

    Digital represents a tremendous opportunity—and a significant threat—for the various participants in the U.S. healthcare industry. No one in this industry can afford to fall behind. This paper examines how the healthcare industry can capitalize on digitization.

  • Information Security: Preparing for the Next Hack Attack

    Information Security: Preparing for the Next Hack Attack

    Today, no company can be sure it is protected from hackers, hacktivists, or cyber warfare.

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    There is no such thing as absolute security these days. All companies are vulnerable and, it is prudent to assume, already the target of an ongoing, successful attack every second of every day. This is the new paradigm for the world of information security. The upshot is that information security cannot be seen purely as a technological issue but as one that also has an organizational and a strategic dimension.

    Information security thus demands the attention of corporate management, with overall responsibility for information security established outside of the IT department. Whether the issue is taken seriously enough is often revealed by the positioning of the chief information security officer (CISO) within a company’s organization. While not usually a member of the board, the CISO or chief security officer should report directly to the board or at most through just one intermediate level. Bottom line: A comprehensively screened system and the right training can make infiltration a lot more difficult, and its detection easier.

  • IT 2020: Preparing for the Future

    IT 2020: Preparing for the Future

    Digitization has transformed the business world. One engine is driving it: information technology.

    Abstract | More | PDF | iPad | Kindle

    Today's companies not only rely on information technology, they can't compete without it. IT is integrated into products, it pulls priceless information from customer data, and it is the force behind online shopping. As digital becomes even more prevalent, the demand for IT will continue to rise, which in turn will place a heavier burden on IT organizations. A new A.T. Kearney study, which surveyed more than 150 chief information officers (CIOs) of large global enterprises and leading midsized companies, reveals that by 2020, two-thirds of companies expect to invest more in IT in all areas along the value chain, but especially in sales and customer interactions. As IT gets a bigger slice of the corporate budget, expectations will rise, and even the smallest miscalculation about IT priorities will put the whole company at risk. This paper discusses tomorrow's IT challenges and offers three strategic goals encompassing 10 golden rules to help CIOs find the balance between increasing IT's value while simultaneously lowering costs.


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Read insights from A.T. Kearney consultants quoted in the media.

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