http://www.booz.com Operations RSS feed from Booz & Company. Wed, 23 May 2012 16:12:57 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/50500605?gko=c199c Expanding beyond its traditional role, the supply management organization in many companies has become a key contributor to overall corporate strategy, a source of competitive advantage, and a facilitator of profit growth. Supply and sourcing executives are also considering a growing array of risks, and building stronger alliances inside and outside the company. These issues, and others, were highlighted in a survey of sourcing leaders conducted by Booz & Company in connection with the firm's annual Strategic Sourcing Executive Forum. Houston, Patrick; Thelen, Bruce; Turner, Martha; Miller, Jodi Mon, 07 May 2012 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/50500605?gko=c199c http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/50399227?gko=19b19 Recent recalls of hygiene products have raised concerns about the microbiological robustness of the supply chain for these products. According to a Booz & Company study, nearly all manufacturers have practices in place for preventing bacterial contamination, but these practices vary widely. There are opportunities for improvement. Every manufacturer needs to begin by assessing the micro-robustness of its end-to-end supply chain. Ehrhardt, Marcus; Hutchens, Robert; Palaniappan, Subbu; Riedl, Patricia Tue, 10 Apr 2012 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/50399227?gko=19b19 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/50389905?gko=0135e In an environment of reimbursement reductions and declining revenue yields, stepwise cost reductions of 10 percent or more will be a top priority for hospitals and health systems. To achieve this level of savings and continue to fulfill their missions, hospitals and health systems will need a proven, yet nontraditional, approach capable of producing transformational cost reduction. Bailey, Curt; Kaul, Anil; Fusco, Brad; Krishna, Aneesh Wed, 04 Apr 2012 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/50389905?gko=0135e http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/50072644?gko=8ffab As demand for outpatient care and services grows, health systems must create virtuous circles of improvement that enable simultaneous gains in access, quality, and cost in their ambulatory care operations. The key to achieving these gains is a capability for high-performance operations in four interdependent areas: talent management, patient flow, scheduling, and demand and operations planning. Bailey, Curt; Kapur, Akshay; Prabha, K.R. Wed, 11 Jan 2012 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/50072644?gko=8ffab http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/50367574?gko=e1422 In this reader we share our perspective on key aviation industry issues and discuss strategic and operational responses including approaches and solutions that are relevant for the industry as a whole. The authors discuss the changing profile of airport investors, pricing airport access, changing airline marketing strategies, key success factors for airport express trains, the strategic and financial impact of Single European Skies (SES), the impact of airline bankruptcies and potential remedies, pursuing sustainable aviation, and a new airport security model. Various Authors Sat, 31 Dec 2011 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/50367574?gko=e1422 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/50029474?gko=c6e01 For most large telecom operators in developed markets, profitability growth has stalled, and in most cases turned negative. In order to reverse this trend, operators must pursue a balanced, holistic program for restoring profitability that is designed to make gains on both the revenue and the cost sides of the equation. Booz & Company's cash flow improvement framework, out¬lined in this Perspective, is just such a program. Reitenspiess, Martin; Rischard, Christopher; Trimmel, Dieter; Troesch, Florian Mon, 12 Dec 2011 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/50029474?gko=c6e01 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/50030376?gko=829c7 National healthcare systems face spiraling expenses as they seek to provide affordable, high-quality, and universal care services. Hospital supply chains present these systems with a prime opportunity both to mitigate increases in expenses and help improve patient care. Bitar, Jad; Schwarting, Detlef; Pfeiffer, Thomas; Arya, Yash Mon, 12 Dec 2011 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/50030376?gko=829c7 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49849516?gko=833ec Companies that excel in directing large capital projects can be richly rewarded. Yet achieving this level of success requires adroit management and execution of the sourcing function. This Perspective discusses the critical set of capabilities in eight facets of capital projects that companies need to achieve sourcing excellence. McKenna, Matthew; Schwarting, Detlef; Uffhausen, Mark; Yates, Paul Sun, 16 Oct 2011 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49849516?gko=833ec http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49827495?gko=d0d48 In today's increasingly complex business environment, the role of the chief procurement officer (CPO) has evolved and expanded. This Perspective analyzes how the role is changing, traits required for success, and steps CPOs can take to transform the job and its impact on the organization. Singh, Rohit; Thelen, Bruce; Turner, Martha Thu, 06 Oct 2011 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49827495?gko=d0d48 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49817941?gko=d62a5 This Perspective examines business process empowerment (BPE), a customer-focused, strategically driven alternative to traditional, back-office focused business process management, with particular applicability in service industries. BPE combines process architecture with a continuous improvement culture to drive sales and otherwise improve front-office operations. Acker, Olaf; Blockus, Adrian; Gröne, Florian; Wheeler, Keith Thu, 29 Sep 2011 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49817941?gko=d62a5 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49779196?gko=17761 The steady decrease in U.S. Department of Defense (DoD) investment spending will continue for the foreseeable future. To better compete in this new environment, traditional companies should look beyond simple cost-cutting measures to a more comprehensive "next-generation affordability" approach that transforms cost structures and refocuses capabilities on the new market requirements. Adams, Jim; Beckey, Steve; Martin, Joseph; Brukardt, Ryan Mon, 19 Sep 2011 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49779196?gko=17761 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49704542?gko=d6ed7 : Self-service offers operational efficiencies, enables transformative business models, and enhances customer experiences. A strategic approach to self-service adoption and implementation requires an analysis of a company's core capabilities and its "way to play" in the market, industry trends, the proper mix of self-service and human interaction, and customer value propositions, as well as the development of six self-service capabilities. Chatterjee, Arindam; Pötscher, Florian; Alewine, Ralph; Swartz, Joshua Mon, 22 Aug 2011 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49704542?gko=d6ed7 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49704544?gko=f0c45 Supply chain expenditures make up about 60 percent of capital and operating costs for typical utilities. This Perspective outlines a new approach--natural supply chains that exist across business units and are made up of business activities that have inherent similarities. Once a company's natural supply chains are identified, the supply chain organization can be tailored to meet the distinct needs of each, resulting in improved performance across a wide range of measures. Cassidy, Dennis; McKenna, Matthew; Singh, Rohit; Uffhausen, Mark Mon, 22 Aug 2011 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49704544?gko=f0c45 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49703713?gko=31c02 Developed markets are on the cusp of mass adoption of mobile commerce. Many companies now see m-commerce as a strategic priority but few will find themselves in a sustainable, value-accruing position. For most, the only way to win at scale is through collaboration in the form of as-yet-untried partnerships. Boyes, Edward; Knott, Michael; Miles, John Thu, 18 Aug 2011 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49703713?gko=31c02 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49691207?gko=7849f Energy projects tend to be big, complicated, expensive, and risky. As such, they are often pursued through joint ventures and other multi-owner entities. Partners can dramatically improve success with joint ventures by: developing a shared understanding of strategic intent; assessing the capabilities and roles of all entities; and designing and effective governance and decision-making model. Dann, Christopher Thu, 18 Aug 2011 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49691207?gko=7849f http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49655543?gko=a4b96 Traditional defense manufacturers are facing a period of change that, if poorly navigated, could severely cripple their competitiveness and even threaten their very existence. Success in today's defense market will require (1) under¬standing and investing in new capabilities; (2) attacking structural costs; and (3) advancing systemic processes. Dustman, Eric; Hughes, Thornton; Martin, Joseph; VanHorn, David Fri, 05 Aug 2011 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49655543?gko=a4b96 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49655545?gko=e5169 Rising costs are forcing the entire U.S. healthcare industry to find ways to unlock and enhance medical value by delivering higher-quality, more affordable care to empowered and engaged consumers. This Perspective outlines three models--population care, healthcare products, and focused transformation--that address the issue of reclaiming lost medical value in a comprehensive and sustainable way. Ahlquist, Gary; Saxena, Sanjay; Spencer, Brett; Gopalka, Abhishek Fri, 05 Aug 2011 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49655545?gko=e5169 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49597065?gko=21953 In the current consumer products and retail environment, getting best-cost country sourcing right is mandatory for success on a global scale. This Perspective identifies three sourcing maturity levels: novice, progressing, and best in class. It provides both a questionnaire for determining your company's level and specific critical steps for success. Dutzler, Harald; Mansson, Anna; Parthasarathy, Sriram; Phillips, Dave Tue, 05 Jul 2011 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49597065?gko=21953 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49584099?gko=ac570 An ultralow-cost mobile (ULCM) operating model can enhance both efficiency and effectiveness for mobile network operators. This Perspective explains how mobile players can migrate to an ultralow-cost model, taking into account every aspect of the mobile value chain--network operations; marketing, sales, and distribution; and outsourcing. Appling, George; Friedrich, Roman; Raad, Hadi; Sharma, Ashish Thu, 30 Jun 2011 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49584099?gko=ac570 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49691205?gko=492c7 To assist health plans as they consider and pursue ACOs, Booz & Company conducted extensive primary and secondary research, proprietary economic modeling, and in-depth interviews with academic experts, external vendors, and senior executives of payors and providers. This Perspective reports Booz & Company's findings on the emerging ACO landscape. Ahlquist, Gary; Saxena, Sanjay; Spencer, Brett Tue, 15 Mar 2011 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49691205?gko=492c7 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49165643?gko=f7e96 Booz & Company has developed a profiler that lets compa­nies test the coherence of their supply chain capabilities against their defined "way to play" to ensure sufficient align­ment for premium returns. And when alignment is lacking, the profiler provides customized recommendations for improvement. Kauffeld, Richard; Michaels, Adam; Mueller, Curt Mon, 07 Mar 2011 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49165643?gko=f7e96 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49687180?gko=193f5 Die Entwicklung des öffentlichen Beschaffungswesens bleibt in punkto Effizienz deutlich hinter der Privatwirtschaft zurück. Durch den Aufbau strategischer Einkaufsorganisationen könnten öffentliche Auftraggeber wie Bund und Länder Haushaltsmittel in Höhe von bis zu 20 Milliarden Euro jährlich einsparen. Aber wie sehen konkrete Optimierungsmöglichkeiten aus? Dieser Frage widmet sich die Studie „Zum Entwicklungsstand des öffentlichen Einkaufs"When it comes to efficiency, procurement in the public sector comes up short. With the help of strategic procurement organizations, federal institutions could reduce costs by as much as 20 billion Euros per year. This study describes which steps need to be taken towards the optimization of public sourcing. Various Authors Thu, 03 Mar 2011 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49687180?gko=193f5 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49165645?gko=07a75 Procurement departments have often been slow to recognize and respond to situations taking place on the ground in local sourcing markets that have the potential to significantly disrupt their supply chains. By answering four simple questions, procurement officers can stave off difficulties and get a jump on competitors that are still paying less attention. Dutzler, Harald; Harnett, Laura Wed, 02 Mar 2011 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49165645?gko=07a75 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49136978?gko=78045 Supply chain risk has steadily grown as companies have increased their reliance on outsourcing and sole sourcing while simultaneously failing to shockproof their supplier networks. This Perspective details four steps that companies need to take to develop a resilience framework that will help them to mitigate supply chain risk. Turner, Martha Fri, 25 Feb 2011 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49136978?gko=78045 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49136977?gko=4d174 Companies continue to turn to their procurement function as a source for additional savings. Yet for a variety of reasons the identified savings are never actually captured and reflected on the bottom line. This Perspective discusses six elements that must be in place to get the most from procurement savings initiatives. Hawkes, Harry; Houston, Patrick; Turner, Martha Fri, 25 Feb 2011 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49136977?gko=4d174 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49104137?gko=1aa96 Banks currently pay 80 percent of the bill to provide cash, and cashless payments are forcing up the cost per cash transaction. In response, there are three waves of cost reduction that banks around the world are taking to reduce their cash costs. Koss, Victor; Lavery, Greg; Lageweg, Christiaan; Struben, Marijn Tue, 22 Feb 2011 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49104137?gko=1aa96 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49087687?gko=72f5b In the current automotive and aerospace environment, getting best-cost country sourcing right is mandatory for success on a global scale. This Perspective identifies three sourcing maturity levels: Novice, Progressing, and Best in Class. It provides both a questionnaire for determining your company's level and specific critical steps for success. Schwarting, Detlef; Weissbarth, Robert; Mansson, Anna; Dum, Angela Tue, 15 Feb 2011 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49087687?gko=72f5b http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49047868?gko=4b02b With the collapse of crude oil and natural gas prices in late 2008, the energy industry faced a formidable challenge: how to cut costs sufficiently to continue to deliver the profits that Wall Street demands, while minimizing operational and business risks. Now more than two years old, this effort has been a rousing success. Booz & Company estimates that the global oil and gas industry has enjoyed annual hard-dollar savings in excess of $40 billion over the past three years. Cassidy, Dennis; McKenna, Matthew; Mehta, Seema; Uffhausen, Mark Mon, 31 Jan 2011 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/49047868?gko=4b02b http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/48982747?gko=7b60d The effective management of service operations is crucial to controlling labor costs and improving customer satisfaction. To successfully meet this dual challenge, companies must address the six drivers of high-quality, cost-effective service: product and process design; service-level labor requirements; service and distribution network structure; process management; workforce management; and measurement and compensation. Bailey, Curt; Bhalla, Vikas; Hawkes, Harry; Riedl, Patricia Mon, 10 Jan 2011 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/48982747?gko=7b60d http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/48964235?gko=3765a As products of every description become more and more intelligent, the software they contain will determine how they are differentiated from their competitors, and thus how they create value. In this new environment, every manufacturer must learn how to develop innovative, sophisticated soft­ware. Harter, Gregor; Böckmann, Jörg Tue, 21 Dec 2010 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/48964235?gko=3765a http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/48875343?gko=6c30c Supply chain costs make up about 80 percent of capital and operating expenses for upstream oil and gas companies. Consider a new approach--natural supply chains, which exist across business units and are made up of business activities that have inherent similarities. Once a company's natural supply chains are identified, the supply chain organization can be tailored to meet the distinct needs of each, resulting in improved performance across a wide range of measures. Barta, Jeffrey; Cassidy, Dennis; Singh, Rohit; Uffhausen, Mark Wed, 01 Dec 2010 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/48875343?gko=6c30c http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/48542780?gko=2d0d2 Hospitals account for more than 30 percent of all healthcare expenditures globally--a number that is likely even higher in the Middle East. To understand how effectively these expenditures are being used, Booz & Company launched a study in a select number of hospitals in the region to assess their current level of operational excellence. Bunte, Matthias; Hashemi, Ali Tue, 31 Aug 2010 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/48542780?gko=2d0d2 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/48527866?gko=cbd06 This leading research provides a perspective on "Lean" toolkits and the benefits of using "Lean" principles in financial services. Market trends are adding pressure on financial institutions to cut costs and grow simultaneously. A "Lean led" business transformation can help address these pressures by providing rapid improvement in cost structures, client service and risk. Mavros, Kelley; Plansky, John; Regelman, Roman; Solomon, Jamie Fri, 27 Aug 2010 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/48527866?gko=cbd06 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/48225820?gko=62824 Gaining control over claims can reduce an insurer's costs significantly. Among other actions, insurers should try to align their commercial practices with those of repairers or other providers, make better use of the vast amount of information at their disposal, and gain a better understanding of the risks and costs of claims in order to prioritize them accordingly, thus freeing up claims professionals to take on a more strategic role. Butler, Sarah; Francis, Paul Mon, 19 Jul 2010 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/48225820?gko=62824 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/48196984?gko=3a33f Coming out of one of the worst downturns in history, many retailers have become skilled at cutting costs fast. But to achieve lasting advantage in an increasingly demanding industry, retailers need to step up their game and create operating models that maximize efficiency and effectiveness on a sustainable basis. Kapoor, Namit; Mani, Matt; Ripsam, Thomas; Sharma, Anu Wed, 30 Jun 2010 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/48196984?gko=3a33f http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/48192396?gko=454a9 As the global economy becomes increasingly digital, data traffic over both fixed and wireless networks is exploding. This presents telecom operators with a major challenge: They must invest more and more capital in next-generation networks that can absorb this wave of data even pressure on margins intensifies. This Perspective analyzes four strategies operators can take to manage and monetize the data on their networks. El-Darwiche, Bahjat; Friedrich, Roman; Peladeau, Pierre; Sabbagh, Karim Sat, 26 Jun 2010 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/48192396?gko=454a9 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/48139472?gko=3f0dc For utilities, increasing productive time by more effectively leveraging existing resources is imperative for coping with future finan­cial constraints. The journey toward improved productivity begins with a comprehensive up-front assessment of inefficient and unproductive practices across the entire work manage­ment life cycle and concludes with reshaping perspectives and expectations throughout the field force. Our recent experience suggests that meaningful increases in productive time can be accomplished by optimizing how work is planned, scheduled, and performed; expanding the skill sets of the existing work­force (including managers); standardizing work practices; and better leveraging underlying information technology and reporting tools. Hoffman, Mark; Jirovec, Todd Mon, 14 Jun 2010 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/48139472?gko=3f0dc http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/47812407?gko=f68d1 Unconventional gas reserves, which have become an increasingly impor­tant component of energy company portfolios, differ from conven­tional assets in that they tend to be low-margin, resource-intensive exploration efforts. Because profit opportunities are limited, getting the most out of an unconventional program requires close scrutiny of operational efficiency and cost levels. As a result, unconventional reserves are perfect candidates for sustainable cost cutting through the introduction of lean supply chain concepts. Cassidy, Dennis; Click, Christopher; Clyde, Andrew; Singh, Rohit Fri, 26 Mar 2010 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/47812407?gko=f68d1 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/47491243?gko=abf68 Organizations around the world are embracing integrated risk-management strategies that combine the right blend of physical, information, and IT security controls. Gazzini, Alessandro; Shehadi, Ramez Wed, 20 Jan 2010 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/47491243?gko=abf68 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/47375353?gko=62f67 Consumers prefer to do business with consumer electronics manufacturers and telecommunications companies that can repair their products quickly, and the potential for cross-selling is real. Yet many companies do not even get the basics right. To do so, they must identify improvement priorities, determine which improvement measures will make the biggest difference, and develop metrics to monitor performance. Engelmann, Dr. Jens ; Hölbling, Klaus Tue, 15 Dec 2009 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/47375353?gko=62f67 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/47372702?gko=2a559 Many telecommunications operators are already outsourcing some or all of their field services activities, according to a recent Booz & Company study, and more and more are taking the same approach to their network operations. The single biggest driving force behind this trend is the desire to reduce operating expenses, and as operators strive to cut costs further, they will begin to outsource more activities long thought to be at the core of their network operations. Friedrich, Roman; Weichsel, Peter; Miles, John; Rajvanshi, Ashish Tue, 15 Dec 2009 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/47372702?gko=2a559 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/47341074?gko=51884 IT outsourcing has traditionally been one of the most effective levers companies can apply to reduce costs. A highly leveraged sourcing model can potentially reduce operating costs by 20 to 25 percent. However, delivering these savings requires a careful and well thought out execution plan. Blansett, Tim; Kapoor, Namit; Newham, Denton; Paladugu, Naveen Fri, 04 Dec 2009 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/47341074?gko=51884 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/47189797?gko=1a1c2 The routes to market that consumer packaged goods (CPG) companies use to sell and service their trade accounts determine their sales volume, their ability to deliver the proper levels of customer service in a cost-effective manner, and their success at securing scarce retail shelf space for their products. Nevertheless, few CPG companies have a comprehensive conceptual platform for optimizing their routes to market. Such a platform must enable companies to design go-to-market (GTM) models that: have a strong customer focus; are aligned with strategic goals and value offerings; balance customer needs, revenue growth, and cost-to-serve; and, finally, are flexible enough to be adapted in response to changing strategic goals and competitive threats. This Perspective describes a proven platform for creating such models. Dubey, Akshat; Navarro, Carlos; Valero, Juan Wed, 11 Nov 2009 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/47189797?gko=1a1c2 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/46677352?gko=33300 For companies up and down the consumer packaged goods (CPG) value chain, now is the time to take a fresh look at sales and operations planning (S&OP) processes. Although S&OP is a well-established tool in the CPG industry, nearly a quarter of companies still do not use it, and many others could be realizing greater benefits than they do today from their S&OP efforts. Increased complexity in the value chain is putting pressure even on well-run S&OP processes, making accurate forecasting and planning more difficult. Booz & Company advises CPG industry participants to keep in mind seven key parameters when refreshing their S&OP approach. Hawkes, Harry; Malhotra, Abhishek; Mueller, Curt Wed, 16 Sep 2009 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/46677352?gko=33300 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/45999642?gko=5ba8b Growing competition and EU-triggered regulation are now increasing the pressure on energy suppliers to operate their power and gas grids as efficiently as possible. At the same time, provisioning network services is a major opportunity for growth that can help offset losses in revenue from capping regulation. Workforce management strategies provide an effective approach for modernizing energy grid service operations to help achieve these objectives. WFM targets grid services in four key areas: placing orders; work scheduling and operations; executing orders; and order management. Wintersteller, Walter; Fleischle, Frank; Hilkenbach, Markus; Bach, Olaf Wed, 01 Jul 2009 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/45999642?gko=5ba8b http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/45884274?gko=b84c9 Though vastly under-appreciated, standardized work, which provides clear benchmarks that employees are expected to meet in all of their responsibilities, is the most effective means of uniformly producing products and delivering services at the lowest cost and highest quality. In addition, standardized work is advantageous to workers themselves. Using a seven-step framework that we call the "standard work wheel," companies can implement standardization in the workplace for all types of employees and in all industries. Bohnen, Hans; Grichnik, Kaj; Turner, Michael Tue, 16 Jun 2009 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/45884274?gko=b84c9 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/45742670?gko=77476 Ironically, many companies in process-intensive industries excel at keeping their physical assets at optimum productivity levels, but they fail to manage their human capital as effectively. The potential savings can be substantial, The most successful process-intensive companies manage to operate at high productivity levels, and in the past few years, a handful of lagging companies have shown that improvement is indeed possible. Improving productivity starts with an in-depth analysis to determine where the true opportunities lie. Rogers, William; Steinhubl, Andrew; Van Leeuwen, John Wed, 13 May 2009 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/45742670?gko=77476 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/45729678?gko=7174b The global financial downturn has hit already-struggling manufacturers especially hard. But it also offers opportunities to take critical actions now that will position manufacturing leaders to come out the other side in a winning position. Those actions include: free up cash; review product profitability; reduce capacity; rationalize overhead costs; use facilities more efficiently; improve labor productivity; change wage rates and reduce raw material prices to market levels; and look beyond the crisis. Each involves judgment calls and understanding of the economics of the company and its competitors. Grichnik, Kaj; Kaushal, Arvind; Winkler, Conrad Wed, 13 May 2009 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/45729678?gko=7174b http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/45712504?gko=74500 For the second year in a row, Booz & Company has published this co-branded report in partnership with the American Chamber of Commerce in Shanghai (AmCham Shanghai). The survey was expanded this year to include participation from a number of international chambers of commerce operating in China. The study illustrates how multinational manufacturers perceive China's evolution as a market and as an export platform. Because the survey coincided with the first months of the global economic downturn, we were able to probe and assess how the worldwide recession is affecting companies' operations in China as well as the recession's likely future impact. Various Authors Tue, 12 May 2009 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/45712504?gko=74500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/45539475?gko=72dd5 Shelf-centered collaboration," in which CPG manufacturers and retailers develop infrastructure that is more responsive to consumers' needs and more efficient for all, is gaining favor as a way to help reduce complexity and improve collaboration. The main barriers to increased collaboration are an absence of clear rules of engagement and lack of trust. To get beyond the impasse, supply chain partners need to be more pragmatic, align expectations, get senior manage­ment buy-in, and pursue collaboration programmatically. Dutzler, Harald; Harper, Simon; Lotti, Riccardo; Potter, John Tue, 05 May 2009 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/45539475?gko=72dd5 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/45358648?gko=af6de A series of recent interviews conducted by Booz & Company with operations leaders in process industries revealed that while companies focused on optimizing manufacturing and the asset cost base, they overlooked significant real opportunities for long term value enhancements. The main reason: Companies' manufacturing and business strategies are generally not sufficiently aligned. To support improving that alignnment, Booz & Company has developed the overall asset contribution (OAC) methodology, which gives insights on how well manufacturing assets are performing and how much real value they contribute. Bäumler, Matthias; Grichnik, Kaj; Thiedig, Caroline; Vallerien, Sven Tue, 21 Apr 2009 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/45358648?gko=af6de http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/45358380?gko=31bfb Chief procurement officers face both major challenges and valuable opportunities in today's increasingly volatile and recessionary environment. If they take five actions now, they can quickly reduce costs and secure supply in the short term, while enhancing sourcing capabilities and sustainable advantage in the long term. Houston, Patrick; Turner, Martha Mon, 20 Apr 2009 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/45358380?gko=31bfb http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/45143808?gko=46feb Major shifts in global business conditions are radically altering input costs and risk. In response, companies must realign their supply chains, including: rethinking product formulation and packaging, restructuring the supply chain network and footprint, and realigning the role of suppliers and third parties. These changes will improve efficiency, resiliency, and sustainability, while allowing for more responsive supply chains with greater flexibility to support growth. Kauffeld, Richard; Malhotra, Abhishek; Potter, John; Turner, Martha Fri, 03 Apr 2009 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/45143808?gko=46feb http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/44511550?gko=e79cf The economic crisis and the new U.S. administration will have an adverse impact on spending in the aerospace and defense sector for the foreseeable future. A&D companies must position themselves to make substantial changes if they are to avoid the "death spiral" of rising costs and decreasing demand: must develop a demonstrable "affordability" strategy not only to survive but also to find opportunity amid new defense spending priorities. Getting on a path to affordability, however, requires a fundamental rethinking of operating models and economics to successfully operate at lower production rates. All elements of cost--direct labor, material, and overhead--must be addressed in a comprehensive manner to create more affordable alternatives for customers. Dehoff, Kevin; Starr, Randy; Mayor, Thomas; Martin, Joseph Tue, 10 Mar 2009 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/44511550?gko=e79cf http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/44149404?gko=3cd60 Many utilities are scrambling to find ways to preserve cash. The dual blows of demand slowdown and the credit crunch make having cash on hand an essential component of doing business. Utility supply chain management (SCM) executives need to actively seek out ways to preserve cash in SCM-related activities. The good news is that there are a number of cash-preservation ideas that utility SCM executives can implement. By engaging the chief financial officer and the executive team for support and cross-functional resources, as well as applying active review of current and planned expenditures and programs, utility companies can find and free cash in various areas of the supply chain. McKenna, Matthew; Hendrickson, James Fri, 13 Feb 2009 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/44149404?gko=3cd60 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/44026825?gko=f42fd The financial crisis and its impact on global economies have reduced the world's hydrocarbon demand and in turn driven a significant reduction in oil and gas prices. Unfortunately for upstream producers, input costs have not fallen as quickly, especially for long-term, complex capital projects. As a result, oil and gas executives are pursuing cost reductions and reassessing capital programs. Because today's upstream companies are so dependent on third-party material and service providers, with as much as 80 percent of total operating costs driven by third-party spend, any attempt to improve cash flow or contain costs must start with effective management of a company's supply chain. McKenna, Matthew; Steinhubl, Andrew; Cassidy, Dennis; Uffhausen, Mark Mon, 02 Feb 2009 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/44026825?gko=f42fd http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43470849?gko=31f08 There are many reasons that the operating models constructed to procure and pay for goods and services prove inadequate. They may not include the processes, tools, or resources needed to fully execute the sourcing strategy. They may not be properly connected to organizational decision making or sufficiently integrated into key corporate planning processes. Or the IT systems that enable them may be fragmented, impeding efficiency and clouding the visibility necessary to ensure compliance with overall purchasing policies and objectives. In order to mitigate these problems and deliver on purchasing's cost, quality, and service commitments, companies must evaluate and design their procurement operating models along four fundamental dimensions: organization, processes, technology, and performance management. Houston, Patrick; Hutchens, Robert Mon, 12 Jan 2009 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43470849?gko=31f08 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43460761?gko=60f0b Marketing provides a tangible opportunity for cost savings, but few companies have found a way to increase the function's purchasing efficiency. To gain the maximum benefit to their bottom lines and marketing efforts, companies will have to ensure that marketing and procurement departments collaborate to an unprecedented degree. There are four steps that companies can take to begin the process of managing their marketing dollars more efficiently: Analyze marketing spending in detail; adopt a more rigorous approach to spending; deploy decision support tools to end-users; and create a clear delineation of roles and responsibilities. Dutzler, Harald; Houston, Patrick; Turner, Martha Fri, 09 Jan 2009 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43460761?gko=60f0b http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43460672?gko=15b49 For years, it has been clear to practitioners that sourcing from China and other low-cost countries (LCCs) requires a rigorous and thorough approach, particularly when companies are seeking complex products. Booz & Company has developed an new approach to working with LCC suppliers that we call knowledge-based sourcing, which significantly increases companies' insight into their supply bases. In addition to understanding their suppliers' production costs, companies that practice knowledge-based sourcing carefully assess manufacturing and transportation economics, lead-time requirements, schedule stability, the likely degree of product design changes, and the technical skills of the suppliers. Haddock, Ronald; Pfitzmann, Michael; Wilk, Reid Fri, 09 Jan 2009 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43460672?gko=15b49 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43470897?gko=6cea5 Many companies have their direct spending under control, but their indirect spending is far less disciplined and much too costly. In order to reform procure-to-pay--essentially, the second half of the procurement process, in which employees actually purchase the items or services negotiated with vendors during the first half of the process--companies need to have a holistic understanding of the IT systems that support it. Replacing procurement's existing IT infrastructure with an end-to-end solution is not the answer. The best approach avoids the inefficiencies and integration problems of large systems by blending together individual modular applications, each meant to address a specific area of the procurement process. Weinberg, Jim; Rieder, Bernhard; Barta, Jeffrey Fri, 09 Jan 2009 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43470897?gko=6cea5 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43460676?gko=96ce0 In today's risky global business environment, supplier networks are the ultimate lifeline for many companies--delivering the far-flung materials, goods, and services that drive worldwide commerce. The sourcing function has thus become an indispensable contributor to the strategic goals and overall competitiveness of companies in every industry. In no other period has sourcing had so much power to make a significant impact in support of a company's strategic direction and overall competitiveness. And those organizations that are striving to achieve sourcing excellence will enjoy the competitive advantages it yields. This Perspective offers four rules for approaching sourcing excellence: Redesign procurement procedures in simple, concrete ways that can produce measurable and significant value; create total transparency in purchasing costs and trade-offs; collaborate fully with internal and external stakeholders; and become an influential corporate leader. Houston, Patrick; Schwarting, Detlef; Turner, Martha Fri, 09 Jan 2009 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43460676?gko=96ce0 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43460662?gko=42c82 Retailers have historically maintained an adversarial relationship with consumer packaged goods (CPG) companies, their primary suppliers. Negotiations over price, promotional support, and marketing budgets, among other persistent areas of disagreement, often result in damaged relationships and minor gains--only to have the fights resume the following year. But companies that want to build holistic relationships with selected suppliers across the value chain, which can result in higher revenue and lower costs than the old haggling habits, must pursue collaboration and cross-functional participation. Harper, Simon; Kapoor, Amit; Kesteloo, Marco; Heinonen, Pertti Fri, 09 Jan 2009 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43460662?gko=42c82 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43470911?gko=fc4e6 The growth in outsourcing, the drive for efficiency, and the dramatic cost savings that can be delivered by well-managed supply chains and pricing analytics have transformed purchasing into a strategic function in many companies. In a recent Booz & Company survey of 100 CPOs and supply chain management leaders, 66 percent of respondents said the CPO will play a larger role in setting business strategy in the next five to 10 years, and 44 percent of respondents said activities in the purchasing department will be a top priority. But hiring the merely good is not enough for organizations that want to build world-class purchasing departments. Instead, they must make stellar appointments--filling the senior procurement jobs with people who can become tomorrow's top corporate leaders. This Perspective offers five steps for recruiting top talent to the function. Harper, Simon; Houston, Patrick Fri, 09 Jan 2009 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43470911?gko=fc4e6 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43410539?gko=22435 Financial-services organizations have traditionally viewed call centers as a means to cut costs or improve customer satisfaction. However, this channel has failed to deliver on both of these missions. In an environment of falling revenues and profits, banks are now looking to redefine the mission for call centers. Some are looking to reduce this channel's costs by moving more transactions to self-service options; others are aiming to make it a profit center that drives sales growth; a number of banks are doing both. Either approach requires a deep understanding of customer needs and a strategy that is focused on meeting them. Gupta, Amit; Jain, Ashish; Kanagasabai, Kumaresan; McMahon, Seamus Mon, 22 Dec 2008 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43410539?gko=22435 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43410483?gko=51cb8 U.S. credit card companies were already facing some fundamental challenges before the worldwide liquidity crisis began. Now, with the U.S. economy in a recession, these companies are being forced to consider changes to their operating models. Reactions that were common in past downturns--such as cutting overhead or eliminating some suppliers--will not suffice. Instead, these companies and the banks that own them must reduce excess capacity across functions, create shared capabilities with other card issuers, and provide third-party services. Gupta, Amit; McMahon, Seamus; Urdaneta, Enairo Fri, 19 Dec 2008 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43410483?gko=51cb8 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/42506236?gko=f4f31 The supply chain agenda at leading utilities has changed substantially in recent years. The original focus on cost savings and organizational efficiency has evolved, with increases in activity across all utility sectors, to include the challenges of cost containment, supply assurance, and risk management. At many utilities, however, the strategic role of supply chain management has not kept pace with these new challenges. For these utilities, the situation requires an overhaul of the supply chain's role and a redesign of the operating model that supports it. Fitzsimmons, Shane; McKenna, Matthew Mon, 29 Sep 2008 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/42506236?gko=f4f31 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/42179871?gko=1b120 In an era of uncertain defense budgets and a shrinking procurement base, the traditional approach of squeezing savings through incremental cost reduction no longer supports the targets required by Department of Defense programs. In response, a few innovative programs have initiated a step-change in performance, delivering more effective systems at a dramatically lower cost. Dehoff, Kevin; Kronenberg, Eric Thu, 21 Aug 2008 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/42179871?gko=1b120 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41992012?gko=7baeb Procurement chiefs are being asked to undertake a host of new respon­sibilities, from decreasing supply chain complexity to stimulating supplier innova­tion. A Booz & Company survey of more than 100 business leaders reveals how cutting-edge procurement departments are meeting these challenges. Dutzler, Harald; Liberoth, Peter-John; Schwarting, Detlef; Spieker, Robert Wed, 06 Aug 2008 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41992012?gko=7baeb http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41986247?gko=2f4c0 A cost transformation in the back-office operations of health plans could result in cost savings of as much as 20 percent. Abiad, Victor; Bailey, Curt; Bales, Thom; Nallicheri, Narayan Tue, 05 Aug 2008 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41986247?gko=2f4c0 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/42019334?gko=b733c In recent years, observers have seen the steel industry rapidly consolidate. In the past five years, more than 800 steel producers have changed hands. Consolidation activities in the mid-1990s focused on alliances between domestic steel producers. This type of consolidation wave can also be expected in the Chinese market. Bohnen, Hans; Naujok, Nils; Rotering, Joachim; von Hochberg, Peter Sun, 01 Jun 2008 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/42019334?gko=b733c http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901842?gko=760bf The digital oil field, an umbrella term for technology-centric solutions that allow companies to leverage limited resources, can help the oil and gas industry address its talent shortage. Steinhubl, Andrew; Click, Christopher; Klimchuk, Glenn; Morawski, Paula Fri, 23 May 2008 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901842?gko=760bf http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901866?gko=af320 Booz & Company outlines seven steps that health plans can take to ensure that a genuine administrative cost transformation takes root. Bailey, Curt; Knott, David; Nallicheri, Narayan Thu, 17 Apr 2008 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901866?gko=af320 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901864?gko=f5d77 Survey focuses on management strategies for financial services, including an emerging model of efficiency enhancement and cost reduction known as process utilities. Cade, Scott; Hoying, Tim; Jain, Ashish Tue, 25 Mar 2008 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901864?gko=f5d77 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901762?gko=abc47 For too long, many companies have exhibited tunnel vision in their approach to doing business in emerging markets, such as China, India, Brazil, and Russia. Some have seen them purely as venues for low-cost sourcing; others have considered them rapidly expanding pools of customers who are attracted to imported goods. But a new breed of company that we call global supply chain integrators (GSCIs) has recognized that these markets are more than just low-cost source markets or the mega-growth markets of our age: At a minimum, they are both. Bliss, Christoph; Haddock, Ronald Tue, 04 Mar 2008 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901762?gko=abc47 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901738?gko=b2f3b For many years, production led a hardworking but underappreciated "Cinderella existence" within the pharmaceutical industry. Senior executives tended to overlook production and the entire supply chain. As long as production manufactured enough high-quality, compliant products to satisfy market demand, few executives considered it a crucial aspect of the business, and even fewer considered it a possible source of competitive advantage.Today, competitive pressures are beginning to shine a bright light on Cinderella's quiet corner. Erb-Herrmann, Isabella; Grichnik, Kaj; Schwarting, Detlef; Vallerien, Sven Sat, 01 Mar 2008 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901738?gko=b2f3b http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901744?gko=ef278 The "China Manufacturing Competitiveness 2007-2008" study, conducted for the first time in 2007 and planned annually thereafter, surveyed 66 manufacturers among the members of AmCham Shanghai's Manufacturing Business Council. It found that, due to low labor costs and high expectations regarding a market of 1.3 billion people, multinationals have tended to build export-oriented factories with operating strategies based on abundant, cheap labor and distribution channels aimed at rapid increases in annual sales. Multinationals, as a whole, have not imported the very best practices from their operations elsewhere in the world. Bliss, Christoph; Grichnik, Kaj; Haddock, Ronald; Winkler, Conrad Sat, 01 Mar 2008 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901744?gko=ef278 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901806?gko=43cd1 An unexpected source of political, social, and economic stability is emerging in the Middle East: diversified, open economies, no longer dependent exclusively on oil revenues. Sabbagh, Karim; Saddi, Joe; Shediac, Richard Tue, 26 Feb 2008 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901806?gko=43cd1 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901828?gko=fb1bc As concern mounts over rising fuel prices, the long-term availability of energy, and climate change, companies are turning their attention to one area where opportunities to conserve energy and reduce carbon emissions abound: the industrial supply chain. Martha, Joseph; Turner, Martha Tue, 12 Feb 2008 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901828?gko=fb1bc http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901814?gko=d6ba7 One key finding of a Booz & Company study of retail banking best practices shows that top-performing banks around the world are tailoring their services across all channels to adapt to the preferences of the small, but increasingly influential, mass affluent segment. Gemes, Alan; Moss, Caroline; Konik, Fabienne Tue, 15 Jan 2008 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901814?gko=d6ba7 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43460684?gko=df215 In the past few years, the price of many commodities has risen sharply--jumping precipitously in early 2008 to record or near-record levels. The degree to which companies depend on any particular commodity varies across industries, and among individual companies and products: Yet few sectors have been immune from the recent run-up in prices. Whether because of the price of steel for cars, resin for household product packaging, aluminum for soda cans, grain for breakfast cereals, or jet fuel for airlines, the distress has scarred many balance sheets. To profit in such an environment, a company must create a fine-tuned approach to handling commodity price shocks that integrates deep insight into underlying cost drivers with improved pricing transparency and strategic foresight. Houston, Patrick; Mueller, Matthias; Ryan, James; Turner, Martha Wed, 09 Jan 2008 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43460684?gko=df215 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43469605?gko=34cef Procurement chiefs are being asked to undertake a host of new responsibilities: decrease supply chain complexity, speed products to market, stimulate supplier innovation, enhance operational security, and even consider the social and environmental impact of the supplier in sourcing decisions. In leading companies, sourcing is evolving from a stand-alone function that ensures that materials move through the supply chain at the lowest possible cost to a nerve center that monitors, anticipates, and responds to a variety of needs throughout the company--and even those of its suppliers. To learn how some leading companies plan to meet this transformational sourcing challenge, Booz & Company interviewed chief procurement officers at more than 100 global companies with a reputation for procurement excellence. Through these conversations, we discovered that companies will need to make four key organizational adjustments to stay in front of the next wave of change in sourcing:more cross-functional integration, better supply networks, more collaborative supplier relationships, and greater supply chain resilience and risk management. Dutzler, Harald; Liberoth, Peter-John; Schwarting, Detlef; Turner, Martha Wed, 09 Jan 2008 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43469605?gko=34cef http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41902096?gko=3191a The upstream oil and gas industry has never been bigger or more profitable. Macro movements in the industry are introducing promising opportunities for the near future, while strategic challenges are leaving industry participants more anxious of what lies ahead. Maestro, Adrian del; McCreery, John; Melville, Jake Leslie; Uriza, Luis Tue, 01 Jan 2008 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41902096?gko=3191a http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901800?gko=bbf6f This year, the study of world's 1,000 largest corporate R&D spenders finds two primary success factors: aligning the innovation model to corporate strategy and listening to customers every step of the way. Jaruzelski, Barry; Dehoff, Kevin Tue, 27 Nov 2007 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901800?gko=bbf6f http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901940?gko=b0bc4 This white paper focuses on the creation of regulatory and economic incentives that encourage the sharing of infrastructure among telecom companies. Abou Chanab, Louay; El-Darwiche, Bahjat; Hasbani, Ghassan; Mourad, Mohamad Mon, 19 Nov 2007 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901940?gko=b0bc4 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901922?gko=49e38 CMOs need to pay more attention to marketing sourcing while increasing transparency into the marketing ROI. Bahadur, Nikhil; Houston, Patrick; Mueller, Curt; Turner, Martha Mon, 05 Nov 2007 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901922?gko=49e38 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901954?gko=fb551 If retailers and manufacturers had an objective and easily duplicated metric for shelf-space profitability, they could craft better decisions about which products to stock and how to best make use of all that space. Harper, Simon; Kapoor, Amit; Potter, John; Thompson, Laura Thu, 01 Nov 2007 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901954?gko=fb551 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901958?gko=874fd New capabilities are redefining how manufacturers and retailers work together to grab their share of customers' wallets. Kauffeld, Richard; Leinwand, Paul; Sauer, Johan; Utzig, Carter Thu, 01 Nov 2007 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901958?gko=874fd http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901822?gko=9e4ed This article provides a rare in-depth look into Lego's transformation as it rationalized and streamlined its product development, sourcing, manufacturing, and distribution. Samakh, Edouard; Oliver, Keith; Heckmann, Peter Fri, 28 Sep 2007 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901822?gko=9e4ed http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901820?gko=614d4 Shelf-centered collaboration (SCC) is a design-based solution to the consumer value chain conundrum: a way to link manufacturers and retailers together with point of sale data and analytics. Kauffeld, Richard; Sauer, Johan Tue, 28 Aug 2007 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901820?gko=614d4 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41902072?gko=bd9bb This article explores how the TPS (Toyoya Production System) concept can be adapted for the airport business using "L-TOPS" (Lean Terminal Operation and Production System) An airport is also a production operation,but one that exhibits an especially high degree of complexity: Interaction among a large number of partners acting more or less independently (airport, airline, air trafficcontrol, ground services, technology) Hauser, Richard; Koch, Volkmar Sun, 01 Jul 2007 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41902072?gko=bd9bb http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901972?gko=05e70 Techniques like near-time level loading, parallel processing, pull inventory models, and utilization enabling workflow technologies can help oil and gas companies facing upstream cost inflation pressures and resource scarcity. Klimchuk, Glenn; Steinhubl, Andrew; Wilczynski, Herve Thu, 28 Jun 2007 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901972?gko=05e70 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/42231823?gko=89a83 Many CPOs have implemented more and more sophisticated ways of improving the procurement function itself, while neglecting coordination with the wider organization. E-procurement, e-auctions, spend analysis, and procurement outsourcing are all examples of how procurement has focused inwardly over the past five years. By pursuing ever-increasing functional depth, however, procurement is in danger of following Alice's steps in Wonderland and falling down its own rabbit hole. Harper, Simon; Saporito, Fabrice Fri, 15 Jun 2007 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/42231823?gko=89a83 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901916?gko=09acf Leaders in financial services are taking a more holistic look at their overall cost structures to make significant, sustainable improvements to their profitability. Cade, Scott; Hagens, Robert-Jan; Moss, Caroline; Sanderson, Muir Wed, 23 May 2007 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901916?gko=09acf http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41902100?gko=3647e With China increasingly becoming an integrated part of the worldwide manufacturing processes, express delivery services will grow in importance to cover the demand for time-sensitive shipments in global supply chains. Tse, Edward; Zubrod, Justin Wed, 07 Mar 2007 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41902100?gko=3647e http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41902040?gko=2aed5 The pharmaceutical distribution industry in Europe is becoming increasingly consolidated, with three players controlling more than 60 percent of the market. Pan-European wholesalers' significant expansion jeopardizes patient safety, affects quality of public service in local markets, and erodes pharmaceutical companies' revenues. The time has come for the pharmaceutical industry to change its distribution model, as many other high-value industries have successfully done. Bunte, Matthias Thu, 01 Mar 2007 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41902040?gko=2aed5 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41902036?gko=41793 The pharmaceutical distribution industry in Europe is becoming increasingly consolidated, with three players controlling more than 60 percent of the market. Pan-European wholesalers' significant expansion jeopardizes patient safety, affects quality of public service in local markets, and erodes pharmaceutical companies' revenues. The time has come for the pharmaceutical industry to change its distribution model, as many other high-value industries have successfully done. Full control of and visibility into the pharmaceutical supply chain by manufacturers is the only way to accurately determine product movement and gain strategic access to retail outlets. This study outlines a three-step approach for companies to introduce a new distribution model. Mitchell, Deanna Thu, 01 Mar 2007 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41902036?gko=41793 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901902?gko=ff6ec In focusing their attention on saving a few cents per unit, apparel retailers may be missing an opportunity to significantly increase profits through better design of their merchandise value chain. Hardman, Doug; Harper, Simon; Notaney, Ashok Wed, 07 Feb 2007 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901902?gko=ff6ec http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901766?gko=027e6 This article introduces the concept of a "manufacturing footprint": a network of facilities that are set up to provide market-back, flexible manufacturing capabilities across a region or around the world. Hardman, Doug; Mueller, Curt; Pfitzmann, Michael Thu, 01 Feb 2007 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901766?gko=027e6 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901986?gko=457c3 Chinese vehicle manufacturers must embrace the changing structure of the industry and, more specifically, become much more competitive in those areas of the automotive value chain where future profitability is likely to be best, particularly distribution. Haddock, Ronald; Tse, Edward Wed, 17 Jan 2007 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901986?gko=457c3 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901942?gko=05f1a Five steps for aligning the sales force with customer needs in a manner that ensures it will be flexible and responsive to future changes. Landry, Edward; Ripsam, Thomas; Sayer, Bart Tue, 09 Jan 2007 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901942?gko=05f1a http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901802?gko=c21c3 Once again, Booz Allen's annual study of the world's 1,000 largest corporate R&D budgets shows that high investment can't buy success. Jaruzelski, Barry; Dehoff, Kevin Fri, 01 Dec 2006 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901802?gko=c21c3 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901948?gko=6aa82 This whitepaper debunks myths within the automotive industry about the benefits and risks of outsourcing business processes and engineering services, helping automotive companies get the best possible value out of their offshoring practices. Couto, Vinay; Dehoff, Kevin; Sehgal, Vikas; Weinberg, Jim Mon, 20 Nov 2006 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901948?gko=6aa82 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901788?gko=99077 This paper summarizes the results of a study conducted jointly with Duke University's Fuqua School of Business, which revealed that offshoring has evolved from a tactical cost-saving exercise to a strategic imperative in competing for talent. Couto, Vinay; Mani, Mahadeva Tue, 31 Oct 2006 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901788?gko=99077 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901994?gko=9db2f Retailers are increasingly demanding customized products and services from consumer goods manufacturers, but half of all customized programs fail to meet the goals of either party. Egol, Matthew; Kauffeld, Richard Wed, 04 Oct 2006 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901994?gko=9db2f http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901998?gko=dc361 Consumer products companies today face a set of challenges that are different from any they have experienced before. On one hand, market saturation, retailer consolidation, and increasingly specialized consumer preferences have slowed growth and made it more important than ever before to be first to market with customer-relevant products. On the other hand, increasing retailer power, customer price sensitivity, and mounting supply-chain complexity are exacerbating cost pressures and distracting management from its core mission. Couto, Vinay; Divakaran, Ashok; Tucker, Jeffrey Thu, 27 Jul 2006 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901998?gko=dc361 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901742?gko=b7a48 This paper sums up eight principles that make process redesign more effective in any industry, citing examples from electric power, telecom, oil and gas, and automotive companies. Hage, Brian; McKenna, Matthew; Wilczynski, Herve Tue, 18 Jul 2006 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901742?gko=b7a48 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41902050?gko=54eb5 Based on a team effort between Service Operations and Financial Services, this Viewpoint suggests that Sales and Operations Planning (S&OP), developed by manufacturers in response to margin pressures, could prove just as useful for banks, brokerages, and insurance firms. The fundamental insight remains the same: Maximizing profitability depends on striking the right balance between competing claims for resources. Promotion includes a targeted campaign in the UK and China first, with others to follow. Korwin-Szymanowska, Christine; Sanderson, Muir Thu, 01 Jun 2006 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41902050?gko=54eb5 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901770?gko=f49de The Middle East's growth aspirations demand a high-performing aviation system, but international benchmarks illustrate that the existing system does not meet current demand. Majdalani, Fadi; Ringbeck, Jürgen Thu, 01 Jun 2006 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901770?gko=f49de http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901890?gko=b3c9b This Viewpoint outlines a process of Total Cost Transformation for the telecom industry, based upon three pillars: the ISSR framework, change management, and program execution. Correctly implemented, this approach will help telecommunications operating companies cope with an environment in which revenue growth is slowing and operators must contain costs to keep margins healthy. Friedrich, Roman; Peterson, Michael Tue, 16 May 2006 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901890?gko=b3c9b http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41979382?gko=75791 Procurement and supply chain strategies and practices are set to move to the front of oil companies' critical issues in 2006. A combination of external pressures is rapidly reshaping the landscape to one that will have many perils, some surprises, and a few opportunities. McKenna, Matthew; Spiegel, Eric; Steinhubl, Andrew Mon, 01 May 2006 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41979382?gko=75791 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901988?gko=b5fda Multinational companies' operations in China must address the labor productivity gap, poor asset productivity, and the increased importance of quality. Haddock, Ronald Mon, 17 Apr 2006 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901988?gko=b5fda http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901854?gko=59e3f Look forward to 100 million motor vehicles in China by 2015; new Chinese automakers challenging every other producer on price; restructuring of both the supplier chain and the service/dealer relationship; and new competition for fuel efficiency. Haddock, Ronald Wed, 01 Mar 2006 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901854?gko=59e3f http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41945148?gko=2d029 For many manufacturers, China has become the 800-pound gorilla. It dominates every conversation and strategic plan; even when it isn't a real threat, the fear exists that it is about to become one. As usual, an educated analysis, diligently conducted, can make the difference between acting out of irrational fear and performing a logical assessment of risk and potential reward. Grichnik, Kaj; Haddock, Ronald; Samakh, Edouard Sun, 01 Jan 2006 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41945148?gko=2d029 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/42102165?gko=179ff Despite the passion, hype and multi-billion-dollar spending, the dirty secret of consumer packaged goods is that companies cannot win with branding. Egol, Matthew; Leinwand, Paul; Moeller, Leslie Tue, 06 Dec 2005 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/42102165?gko=179ff http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901848?gko=dd2f8 This white paper identifies twelve trends that define the growth opportunities in telecommunications over the next few years. Friedrich, Roman; Harter, Gregor; Jaruzelski, Barry; Tse, Edward Tue, 01 Nov 2005 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901848?gko=dd2f8 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41972546?gko=6f0ce The gap between vehicle manufacturers and their dealer-franchisees is the last mile separating automakers both from their real customers and from sustainably profitable businesses. Automakers now have tools they can use to partner with dealerships and end consumers to drive the last mile in a transaction. They now can facilitate purchase intent with the kind of technology-enabled support that already leads to confident, informed buying in industries as different as books and computer hardware. Wheeler, Steven Mon, 01 Aug 2005 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41972546?gko=6f0ce http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41902074?gko=81d25 It's not often that capital projects management and supply chain management are used in the same breath--but they should be. A Booz & Company analysis of energy company performance from 2001 to 2003 found that while the amount most businesses spent on capital projects was proportional to their size, companies that executed projects best by closely monitoring and controlling costs and schedules were able to significantly increase their net earnings relative to their peers. McKenna, Matthew; Wilczynski, Herve Mon, 18 Jul 2005 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41902074?gko=81d25 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41979320?gko=68c26 Process complexity is one of the silent killers of profitability. Any time a new product is added or changed or a service level is increased without addressing complexity the result is a process that is a little more cumbersome and a little more costly. Over the long haul, many good strategies go wrong simply because of the drag created by all those incrementally increasing costs. CIOs have an important role to plan in managing that complexity. Egol, Matthew; Hirsh, Evan; Irwin, Gil; Martin, Karla; Rao, Giridhar Fri, 01 Jul 2005 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41979320?gko=68c26 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/42030077?gko=c4231 The pressure on card issuers is continuing to increase: Regulators and consumer groups are challenging pricing and therefore profitability, innovation is noticeably absent, growth rates are slowing, and specialist processors and associations are expanding across the value chain. In this environment, a detailed understanding of where value exists (and may be captured) will be a key determinant of success for all players -- for card issuers to protect their profit pools and for others to capture share. Gemes, Alan; Koss, Victor Fri, 01 Jul 2005 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/42030077?gko=c4231 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901996?gko=abadc As competitive pressures in the automotive industry continue to increase and cost pressures accelerate with material price increases and OEM price pressures, improving engineering productivity is critical to driving growth, increasing product development throughput, and reducing engineering costs. The latest restructuring wave is to move engineering and other services, in part or in whole, to countries with lower labor costs while maintaining or in some cases improving technical capability. Couto, Vinay; Dehoff, Kevin; Jackson, Bill; Sehgal, Vikas Wed, 26 Jan 2005 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901996?gko=abadc http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901936?gko=42660 Companies in virtually every industry are trying to determine the best way to use their manufacturing footprints, realizing that if they want to stay competitive they can't wait until their manufacturing costs are out of line to take action. Hardman, Doug; Mueller, Curt Wed, 05 Jan 2005 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41901936?gko=42660 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/42102610?gko=10757 Taking a strategic approach to purchasing will drive sustainable results across the organization. A successful procurement agenda needs to address four key dimensions: processes, organization, technology, and performance management McKenna, Matthew Wed, 15 Dec 2004 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/42102610?gko=10757 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41903682?gko=eaa25 As many companies have learned, procurement in China, when it is not well planned and carefully analyzed, can carry with it some tough lessons. Yet despite these experiences, we believe that sourcing in China, if approached with a rigorous assessment of product characteristics, can be the right answer for optimal management of the supply chain. Abiad, Victor; Hardman, Doug; Sehgal, Vikas; Tse, Edward Mon, 01 Nov 2004 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41903682?gko=eaa25 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43000323?gko=9f146 Service organizations face unprecedented challenges in today's business environment. Customers demand better service and more customized offerings. Sales managers push for incremental evenue, improved retention, and higher service levels. And senior management expects the virtually impossible--meaningful cost cutting at the same time as new product launches, acquisition integrations, and new market entry. Bailey, Curt; Nallicheri, Narayan Tue, 15 Jun 2004 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43000323?gko=9f146 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41945518?gko=0bc63 Roughly 25 years have passed since TQM first galvanized the executive suite. Since then, we have seen cycles as predictable as the seasons, in which new methodologies become the latest fad and then settle down into accepted management tools such as ISO 9000, BPR, JIT, Value Engineering, and others. These methodologies essentially promised to transform the enterprise into a sleek, disciplined, process-focused organization, and to measure the improvement they had delivered. Despite the abundance of methodologies and endeavors, however, results have proven illusive or unsustainable. Alvarez, Eduardo; Gupta, Amit; Kaul, Anil; Neilson, Gary Sat, 01 May 2004 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41945518?gko=0bc63 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/42157407?gko=301c0 Too many companies have embraced customization in the name of growth without adapting their operating model to balance the necessary cost tensions that result. In essence, companies have outgrown their operating model, thereby risking their business resilience. The solution lies in adapting the "DNA" of the organization to identify, isolate, and optimize complexity. Alvarez, Eduardo; Buchanan, Ian; Bush, Carl; Chang, Jong; Gupta, Amit; Lakenan, William; Oliver, Keith; Pigorini, Paolo; Saddi, Joe; Tipping, Andrew; Uchida, Akira Wed, 22 Oct 2003 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/42157407?gko=301c0 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41902106?gko=db5ef To date companies have have attacked internal service costs from the supply side. Our client experience suggests that there are benefits from managing the demand for such services. Couto, Vinay; Kaul, Anil; Neilson, Gary; Saddi, Joe Mon, 12 May 2003 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41902106?gko=db5ef http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41902054?gko=b3a4d While SCM officially reached "adulthood" this year--21 years after our Keith Oliver first coined the term--it continues to fall short of its substantial promise. A survey we recently conducted points to the reasons the discipline has underdelivered, suggesting that top management needs to take a far broader view of Supply Chain Management, deepen its own involvement in the design and ongoing guidance of the function, and take a more realistic view of what technology can--and cannot--do. Hölbling, Klaus; Heckmann, Peter Thu, 01 May 2003 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41902054?gko=b3a4d http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41903685?gko=9f570 A strategic simulation of a terror attack designed to assess the vulnerability of America's cargo transportation system and supply chains found that such an attack could cripple global trade and have a devastating impact on the nation's economy. The participants, including leaders from business and government, focused on ways to improve detection before a weapon gets to a U.S. port, as well as strategies to help businesses build resiliency into their operations. Weinberg, Jim Wed, 01 Jan 2003 00:00:00 -0600 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41903685?gko=9f570 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43000317?gko=d552f Buyers of high technology infrastructure are increasingly demanding end-to-end solutions from their vendors. This makes it critical for vendors to have robust Solution Interoperability Testing Programs in place. This article addresses some of the key issues surrounding the non-technical aspects of designing an interoperability testing program for solutions Jaruzelski, Barry; Ribeiro, Frank; Ripsam, Thomas Sat, 15 Jun 2002 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/43000317?gko=d552f http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41902108?gko=a878b The objective of this Viewpoint is to evaluate the nature and causes of the airline industry crisis and to propose a potential solution, drawing on experiences from other industries that have undertaken fundamental business model transformations. Ringbeck, Jürgen Fri, 14 Jun 2002 00:00:00 -0500 http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/41902108?gko=a878b