Wyższa Szkoła
Przedsiębiorczości i Zarządzania
im. Leona Koźmińskiego
w Warszawie
“Strategic management consulting
– the A.T. Kearney perspective”
Presentation
Warsaw, May 28, 2001
an EDS company
Agenda

Overview of management consulting

A.T. Kearney as a strategic management consulting firm

Consultant’s role in A.T. Kearney

The future of management consulting
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
2
Overview of management consulting
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
3
Overview of management consulting
Today, one is confronted with a variety of consultants . . . .

Tax “consultants”

Hair “consultants”

Image “consultants”

Color “consultants”

Catering “consultants”
What then, is “management consulting?
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
4
Overview of management consulting
One definition . . . .
Management consulting = assisting management
in facilitating change
to gain and sustain
competitive advantage
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
5
Overview of management consulting
Companies engage management consultants for several reasons — some good,
some not so good
Some reasons why companies hire consultants

The company does not have the necessary skills internally
- Good reason

The company has never confronted this situation before
- Good reason

Management needs fresh ideas and a new perspective
- Good reason

Management wants the consultant to confirm its ideas
- Not-so-good reason

Everyone in the company is too busy
- Not-so-good reason

Management needs a “tie breaker”
- Not-so-good reason
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
6
Overview of management consulting
Why does management consulting seem to be growing in importance?

The nature of business is changing so rapidly that companies
• Cannot provide for every eventuality in the organizational structure
• Find it difficult to maintain permanent staff functions

Companies need “tailored” solutions to remain competitive in an increasingly global marketplace

The high cost of what management consulting provides can only be justified by companies on an outsourced, as
needed basis
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
7
Overview of management consulting
Why does there continue to be a demand for management consulting?

Most companies do not know how to
• Analyze „themselves” in an objective way when business situations change significantly
• Operate in a temporary, project mode

Unfortunately, most business schools do not
• Prepare managers for “exceptions” in business situations
• Teach real project management
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
8
Overview of management consulting
The major global management consulting firms concentrate in three areas of
consulting; A.T. Kearney, together with EDS, cover the whole spectrum
Strategy
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Corporate strategy
Strategic business units
e-business strategy
Production strategy
Distribution strategy
Market entry strategy
Restructuring
Operations
Information technology
Process optimalization
Change management
Business process reengineering
Strategic sourcing
Supply chain management
Service level improvement
Benchmarking
Organization restructuring
• System strategy creation
• Information systems market
analysis
• Selecting appropriate IT
solutions
• Inplementation of selected IT
solutions
Accenture
McKinsey
Monitor, BCG, Bain
CSC Index
IBM Consulting
Booz Allen
“Big Five” firms
A.T. Kearney (EDS)
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
9
Overview of management consulting
The world consulting market is estimated at $ 117 billion and is characterized by a
double-digit annual growth.
Consulting Industry Market Size and Growth Rates
Per Annum
Growth Rate
(%)
Market Size
($ B)
$180
21,9%
$159
$160
$140
$146
17,7%
132
20,0%
$117
$120
$100
$89
$100
$80
25,0%
15,0%
16,8%
$73
12,9%
12,1%
10,0%
10,7%
$60
9,0%
$40
5,0%
$20
$0
0,0%
1997
1998
1999
2000
2001
2002
2003
IT projects to represent over 50 percent of the market
Source: The Global Consulting Marketplace: Key Data, Forecasts & Trends 2000 Edition, Kennedy Information
Research Group. Chart pertains to the market for consulting firms independent of hardware/software
organizations
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
10
Overview of management consulting
The consulting services in Poland emerged after the transformation in 1989 with
privatization; other segments of the market developed later
Development of the consulting market in Poland
Privatization consulting
Audit and legal services
IT consulting
High value added consulting
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Start of the economic
transformation
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
11
Overview of management consulting
The development stages in Poland were significantly different than in
Western Europe
1990 - 1993
1994 - 1997
1998 - 2000
External
trends
• Start of economic
transformation
• Privatization of state own
enterprises
• Fast growth of the economy
• Development of the free market
institutions (e.g. stock exchange)
• Acquisitions by foreign investors
• Consolidation of the economy
• Increased competitive preasure
• Acquisitions and post merger
integrations
• Big ticket privatizations
Consultants’
value
proposition
• Privatization
• Financial valuation
• Privatization/Due Dilligence
• IT consulting
• Restructuring
•
•
•
•
Major client
group
• State administration
• Largest Polish state-owned
enterprises
• Foreign investors
• Foreign investors
• Largest Polish, privately owned
corporations
Key players
• Small Polish companies
• Smaller foreign companies
specialized in financial /
privatization consulting
• Big five
• Specialized Polish companies
•
•
•
•
Key factors for
success
• Relationships
• Prices
• Local knowledge
• Quality standards
• Value added
• Global network
• Relationship
Source : A.T. Kearney
Efficiency improvement
Reorganization/Reengineering
Strategy
IT consulting
Big five
A.T. Kearney
McKinsey
BCG, ...
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
12
Overview of management consulting
The consulting market in Poland is still significantly different than in other
countries
Drivers
 Low sophistication of the market. Many
potential clients do not recognize the need for
consulting services
Differences

Market dominated by financial and tax advisory

Local consultancies enjoy important market
position in Poland

Different product offerings and selling strategies
for domestic and for international clients

Need to transfer knowledge and experience from
developed markets
 Brand names of global players not known
 Consulting fees relatively higher in relation to
personal costs
 Two groups of clients:
• International companies entering Poland
• Largest Polish companies of which many are
state owned
 Local shortage of consulting and industry
knowledge and experience
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
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Overview of management consulting
Consulting market in Poland is still dominated by financial and tax advisory
services
Percentage of companies using different consulting services
34%
Financial and tax advisory
Quality management
12%
Business strategy
Human resources
Public relations
Other
Do not use consulting services
Source : BOSS-Gospodarka
11%
4%
3%
22%
20%
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
14
Overview of management consulting
In parallel to world-wide brands, local consultancies enjoy important market
position in Poland
Polish subsidiaries of global consultancies
Local companies
 Dominant strategies:
• Focus on long-term relationship with client
• Focus on several key products / industries
 Dominant strategies
• Niche players
• Specialization in one product / industry
 Key success factors
• Global network
• Combination of industry and local knowledge
• Tangible results
 Key success factors
• Price
• Personal relationships
 Targeted client segment
• International companies
• Largest Polish corporations from strategic
industries
 Products
• Value added projects
 Targeted client segment
• Small and medium enterprises
• State and local governments
 Products
• Off-the-shelf reports
• Company valuations
• Issuing prospectuses
• Feasibility studies
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
15
Overview of management consulting
Clients can be split into two groups having different expectations regarding
consulting services
International clients
Local clients
 Products
• Market entry strategies
• Distribution strategies
• Post merger integration of acquired local
companies
• Efficiency improvement in acquired companies
 Products
• Strategy development
• Marketing strategies
• Restructuring
• Cost reduction
• IT systems
 Projects sold mostly outside Poland (at the HQ
level)
 Projects sold in Poland
 Co-operation characteristics
• Used to work with consultants
• Used to consulting fees
• Expect involvement of own staff
• Value added driven
 Co-operation characteristics
• Used to work with consultants
• Used to consulting fees
• Expect consultants to do “everything”
• Price driven
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
16
Overview of management consulting
Global high-value-added consulting companies will have an advantage over local
consulting companies because global companies
- Can leverage worldwide intellectual capital and experience
- Still have necessary local capabilities
Global capabilities
and support
Training and global
project experience for
local consultants
On-line access to intellectual
capital, data bases, benchmarks
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
17
A.T. Kearney as a strategic
management consulting firm
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
18
A.T. Kearney as a strategic management consulting firm
A.T. Kearney is one of the leading high-value-added strategic management
consulting firms in the world

Founded in 1926

International scope
• 65 offices in 34 countries
• Over 3000 consultants

Paris
Brussels
London Amsterdam
Warsaw
Madrid
Düsseldorf
Toronto
Oslo
Cleveland
Milan
Washington
Copenhagen
New York
Stuttgart
Boston
Stockholm
Munich
Berlin
Since 1996, A.T. Kearney is the
second largest strategic
management consulting firm in
the world
• Over 3000 projects
engagements per year
• 1,4 bln USD turnover in 2001
Hong Kong
Singapore
Tokyo
Beijing
Prague
Chicago
San Francisco


Since 1995, A.T. Kearney is part
of EDS, the international leader in
technology information
80% of work for repeat clients
Los Angeles
Phoenix
Dallas
Mexico
Atlanta

Average consultant work
experience: 17 years
Sao Paulo
Melbourne
Sydney
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
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A.T. Kearney as a strategic management consulting firm
A.T. Kearney is one of the few high-value-added management consulting firms
which possesses the full range of consulting services
Core competencies
Post merger integration
Business and marketing strategy
Strategy sourcing
Transforming the enterprise
Restructuring
Physical distribution & logistics
Technology management
Operations redesign – Process & structure
Change management
Multi-functional bemchmarking
Complete set
of consulting skills
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
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A.T. Kearney as a strategic management consulting firm
A.T. Kearney is committed to delivering tangible and measurable “bottom-line”
results for our clients
Sample of
Recent Clients
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Ameritech
Anglian
BT
Carrefour
Casino
Euro Disney
Galeries Lafayette
General Motors
House of Fraser
Johnson & Johnson
Keebler
Kellogg
Metro
Monoprix
Nabisco
Nomura
PepsiCo
Promodes
Prudential
Quelle
Sears
Shell
Sprint
Unilever
Wal-mart
Representative Annual
Results Achieved
Federal
Express
>$500 Million
“A.T. Kearney has helped enormously to address our key issues…
We have planned and implemented cost reduction programs that
will return over half a billion dollars”
— Fred Smith, CEO, Federal Express
Sears
>$750 Million
“…in sharpest contrast… A.T. Kearney consultants helped
engineer one of the most stunning corporate turnarounds in recent
memory”
— (Excerpt about Sears success working with A.T. Kearney,
review of Dangerous Company in Fortune, August 18, 1997)
Rolls-Royce
$750 million
“We wanted consultants who wouldn’t just give us advice and
walk away”
— John Rose, CEO, Rolls-Royce
Marks &
Spencer
$250 million
General
Motors
>$3.5 Billion
“The Kearney work has made us radically re-think our approach
to the business. We wouldn’t have done that otherwise”
— Marks & Spencer Supplier
“A.T. Kearney is really the father of our global purchasing
system.” “They are our achievement consultants”
— Jack Smith, CEO, GM
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
21
A.T. Kearney as a strategic management consulting firm
A.T. Kearney is the global leader in client satisfaction
A.T. Kearney
94%
KPMG Peat Marwick
82%
Price Waterhouse
80%
McKinsey & Company
79%
Andersen Consulting
79%
Booz-Allen & Hamilton
77%
Boston Consulting
75%
IBM
74%
CSC Index
71%
0%
Source: Louis Harris Survey, 1998
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
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A.T. Kearney as a strategic management consulting firm
A.T. Kearney is a leader in the field of Integrated Supply Chain Management
Selected Examples
Seminars, Research and Leadership
• Delivered keynote address at the 1999 NRF annual conference on and leadership practices in driving
success through consumer-focused supply chains
• Co-sponsored Asia LOGICON conference for senior logistics professionals (1999)
— Addressed supply chain strategies and overcoming logistics obstacles for the Asia-Pacific region
— Presented research findings on issues, bottlenecks and IT-related concerns of the Asian supply chain
• Featured presenter for the Council of Logistics Management: “Why Effective Partnerships Require a Clear
Supply Chain Strategy”
• Delivered keynote address at 1999 Strategic Electronic Commerce Conference, an EDS-sponsored
conference
• Featured speaker at AsiaPorts 1998 conference - “How Shifting Global Sourcing Patterns Are Impacting
Port Operations”
• Hosted CEO Forum on “Challenges in the Digital Future in the 21st Century”, with topics including
digital supply chain opportunities and digital demand management
• Sponsoring future supply chain industry seminars:
— "Global Excellence in Operations" with Fortune (2000)
— "2000 Supply Chain Management Conference” (2000)
• A.T.Kearney/European Logistics Association: "Insight to Impact. Results of the Fourth Quinquennial
European Logistics Study 1999“
• White papers and research studies
• A.T. Kearney has been cited in several articles on supply chain management
• Leadership
— Past President of Council of Logistics Management
— Past President of Canadian Association of Logistics Management
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
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A.T. Kearney as a strategic management consulting firm
A.T. Kearney facilitates new thinking on the future of the Retail/Consumer
Products industry through several forums
Selected Examples
Thought Leadership
• Lead the EDS/GMA Future Forces Roundtable, held annually
— Bring together the CEO’s and Presidents of the leading grocery manufacturers and retailers
— Facilitate discussions on future of technology and science
— Help to bring together new ‘breakthrough’ thinking e.g. UCCNet was formed based on the actions set
out in the 1998 Future Forces meeting.
World Economic
Forum
• A.T. Kearney is active with the World Economic Forum on several levels
— A.T. Kearney leads the Food and Beverage Governor's Meetings in Davos Switzerland as part of the
World Economic Forums annual meeting
— Publishes annual white papers on advanced topics of interest to food and beverage executives as part
of the World Economic Forum proceedings
• A.T. Kearney participates with Grocery Manufacturers of America on several fronts
— Facilitate Top-to-Top meetings at the annual Greenbrier CEO Conference (1999, 2001)
— Master of Ceremonies at the annual Information Systems, Logistics and Distribution conference
(1997, 2001)
— Facilitate key issues forums with executive members (Presidents meeting (2000), Board of Directors
(1999,2000)
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
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A.T. Kearney as a strategic management consulting firm
In addition to a market leading reputation in supply chain, A.T. Kearney has also delivered
significant IT enabled transformation initiatives
• Assessed Delphi Automotive in implementing a “value capture” program for all modules of SAP/R3, for 50 sites throughout
Europe, identifying over $28MM in incremental savings
• Aligned business and IT strategies with core processes, and leveraged existing ERP investments to derive additional business
value; Leveraged IT assets by establishing IT shared services capabilities
• Developed a comprehensive E-Business “landscape” and competitive strategy, then assessed and realigned ERP priorities to
support global purchase order management and supply-chain strategies
• Assisted HP in conducting an SAP post-implementation audit, recapturing over $19MM in net savings
• Identified over $250MM in unrealized business benefits in operations optimization, fleet productivity, staff reduction and
sourcing as a result of their SAP implementation
• Pre-merger assessment including the ERP integration of two global multi-billion dollar organizations and creation of financial
and HR shared services organizations; identified $52MM in IT run-rate reductions
• Restructured and consolidated IT organization to improve efficiency and effectiveness
• Assisted with functional and operational requirements analysis, ERP program management, global ERP consolidation, and ERP
global template design and integration
• Assisted with global restructuring and consolidation of IT organizations and systems, to improve operational efficiency and
effectiveness
• Reinvented IT organization, processes, and infrastructure as part of post-merger integration with Bank of America
• Aligned and streamlined business and IT processes and systems; developed an IT architecture “blueprint” for all enterprise
applications
• Restructured business and IT processes for better alignment, and assisted in outsourcing certain IT functions to modernize the
IT infrastructure; developed the IT blueprint to leverage ERP systems
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
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A.T. Kearney as a strategic management consulting firm
A.T. Kearney is the recognized European leader in several industries
Major clients per practice
Financial inst.
• Deutsche Bank
• BNL
• Barclays
• Societe Generale
• AXA
Automotive
• FIAT Group
• VW
• GM Europe
• Daimler Chrysler
• Renault
Chemicals/O&G
• Rohm&Haas
• Arjo Wiggins
• BASF
• Pechiney
• BP/Amoco
Comm/hi-tech
Aerospace
• France Telecom
• Siemens
• Deutsche Telekom
• Lucent
• Philips
• Rolls Royce plc.
Consumer/retail
• Carrefour
• Marks &Spencer
• Galerie Lafayette
• Unilever
• Auchan
Utilities
• VEBA/VIAG
• Drewag
• Mainova
• ENEL
• ENBW/Neckar
Transportation
• SAir Group
• Air France
• Lufthansa
• KLM
• Deutsche Bahn
Pharma/health
• Gambro
• Quintiles
• Merck
• Henkel
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
26
A.T. Kearney as a strategic management consulting firm
A.T. Kearney has wide experience in many industry sectors in Poland

Automotive

Fast-moving consumer goods

Energy

Retirement funds

Chemical

Food

Banking

Mining

Insurance

Shipbuilding

Telecommunications

Capital markets

Logistics and distribution

Media

Publishing

Real estate

Steel

Government institutions
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
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A.T. Kearney as a strategic management consulting firm
Examples of projects realized by A.T. Kearney in Poland
Industry
Client
Telecom
Alternative fixed line
telephony provider
Telecom
Mobile telephony
provider
Project






Publishing
Number one Polish
publisher


Business planning for regional markets
Project management
Operations improvement
Business market diagnostics
Loyalty program
Strategy
MIS
Organisational structure

Governmental assistance programme
development
Major Scandinavian bank

Market entry strategy
Leading automotive
components manufacturer

SAP implementation
Transportation
Leading shipping company
Financial
Institutions
Automotive
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
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Consultant’s role in A.T. Kearney
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
29
Consultant’s role in A.T. Kearney
Becoming a good management consultant requires time, experience and certain
key skills
Business
education
Creative
thinking
Analytical
skills
Written and
oral skills
Business
experience
Management
Consulting
Capability
Consulting
experience
Management
background
Technical
background
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
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Consultant’s role in A.T. Kearney
Six key rules* must be followed by every good management consultant


Know what you’re doing!
Don’t act beyond your capabilities

Continually add value commensurate with your skill and client expectations

Keep to the agreed-upon project scope

Hold client information strictly confidential

Be ethical at all times
*Source: Andrew Thomas Kearney, founder of A.T. Kearney
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
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Consultant’s role in A.T. Kearney
In addition to “time”, experience and basic skills, the good consultant requires
three disciplined core consulting capabilities

Proposal writing = selling the assignment

Project management = conducting the assignment

Report writing = the product
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
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Consultant’s role in A.T. Kearney
A.T. Kearney adheres to four key points to hire and retain the best consulting
talent
“Constantly grow, learn and develop”
•Interesting mix of work
•Good project experiences
•Constructive feedback
•Understanding the measurement
process
•Opportunities to develop
•Upward feedback initiatives
Growth
“Work hard; be rewarded well”
•Provide appropriate compensations
Wealth
acknowledges the demands of the
business
•Being recognized for outstanding
performance
•Provide input into compensation initiatives
•Salary increases for mid-year promotions
•Service incentive programs
•Principal LTI options
“Feel that I belong and am part of something good”
•Reliable network of people
•Appreciation of unique talents
•Communicate ATK’s direction and strategy to all
employees
•Explaining how to get
problems resolved
•Respect employees by
Pride
providing timely and
intelligent information
“Be able to balance work and life”
•Provide a more balanced
Teaming
quality of life
•Tailor work requirements to
individual needs
•Services to help balance work
and personal life
- 434U
- Vacation buy-back program
- Part-time program
- Concierge services
Source: GPTW
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
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A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
34
The future of management consulting
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
35
The future of management consulting
North America and Western Europe are projected to be the leading growth
markets
1998
2003
CAGR
The Global Consulting Market by Major Region
Market Size
($ B)
CAGR
(%)
$100,0
15,1%
$91,8
$80,0
12,4%
$60,0
$50,0
$40,0
14,0%
$0,0
14,0%
11,6%
12,0%
10,0%
$50,9
9,7%
8,0%
$30,0
$20,0
6,0%
$5,0
North America
Western Europe
16,0%
4,0%
$11,1
Asia-Pacific
$2,0 $2,7
Latin America
$2,0 $2,5
Rest of World
2,0%
0,0%
Region
Source: The Global Consulting Marketplace: Key Data, Forecasts & Trends 2000 Edition,
Kennedy Information Research Group. Chart pertains to the market for consulting
firms independent of hardware/software organizations
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
36
The future of management consulting
Traditional industries will continue to grow . . . .
Global Consulting Market Size and Growth Rates by Vertical Industry
($ Billions)
20
Utilities
$7.3
High
Technology
$8.0 Wholesale/
Retail
$11.9
15
1998 – 2003
CAGR
Med./Ent./Pub.
$2.9
10
5
Business
Services
$3.6
Transportation
$2.5
Communications
$19.8
Financial
Services
$33.8
Energy/Oil
and Gas
$9.9
Healthcare
$7.9
Manufacturing
$33.2
Government
$15.3
Miscellaneous
$2.4
$5
$10
$15
$20
1998 Industry Size
2003 Industry
Consulting Market Size
Early E-Business Adopters
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
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The future of management consulting
. . . . but, e-Business will be the main driver of future growth
Breakdown of Global Consulting Market
Segments (U.S.$ Billions)
Type of Service
Pure E-Business
• Start-up e-business
• Web strategy, design and
implementation
• E-strategy, marketing,
operations
Brick and Mortar
Dot.com
$0.5
$5.0
$1.0
1998
2003
1998
E-Business Related
• Traditional consulting services
with e-focus
Total Global Consulting
Market (U.S.$ Billions)
Share of
Consulting
Market:
All Clients
$11.0
2003
$1.5
1998
$16.0
2003
10%
$75.0
$56.0
47%
$19.5
1998
Traditional Consulting
• Strategy
• Operations
• IT
• Change management
$63.0
2003
1998
$19.0
2003
1998
$63.0
2003
$68.0
$48.0
43%
$20.0
1998
Sources:
$4.5
$24.0
2003
E-commerce Consulting Kennedy; A.T. Kearney analysis
$0
1998
2003
1998
2003
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
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The future of management consulting
The B2B market appears most attractive
B2B Is Eclipsing B2C:
Expected Growth in E-Business
Revenue
($ Billions)
$3.000
$2.400
$1.800
$1.200
$600
$0
1999
B2C (Business to
Consumer)
B2B (Business to
Business)
Expected Growth in E-Business B2B Services
1999 – 2002 Annual Growth Rate (%)
60%
51%
25%
2000
2001 2002
2003
Internet
Software and
Services
Internet
Strategy/
Advice
Internet
Outsourcing(1)
23%
Digital Value
Chain (2)
• Higher barriers to entry than B2C
• More sustainable business models
Notes:
Sources:
(1) Internet outsourcing includes Internet project management and web-hosting services
(2) Digital value chain includes supply chain, ERP, integration, CRM, business
services
Forrester Research, IDC, A.T. Kearney analysis
intelligence and ASP
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
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The future of management consulting
Therefore, the new Economy requires a new positioning and new innovative
client-service relationships
Client-Market Positioning Matrix
New Client
Base
Services
Pure EBusiness
Venture
Capitalist /
Incubators
„New Economy
Consultants“
E-Business
Related
Management
Consultants
Traditional
Traditional
Client Base
Dot.com’s
Brick & Mortar
(incl. Dot Corp’s)
Clients
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
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The future of management consulting
End-to-end e-services will have a competitive advantage over functional specialists
Paradigm shift in IT -services provision
Traditional IT-services
delivery chain
Vision
Plan
Build
e-business
delivery chain
Implement
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
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The future of management consulting
So, A.T.Kearney and e-solutions are implementing the e-business solutions for
start-ups and established clients to provide truly end-to-end capabilities
End-to-End Solution Process
Stategy
Marketing
A.T. Kearney
•e-Space (incubator)
• E-Business Practice
Operations
Implementation
Web-Design
E-Business
Solution
EDS e.solutions/
Kearney Interactive

A.T. Kearney together with e.solutions is enabling the enterprise to offer end-to-end
e-business solutions - from strategy to implementation

EDS e.solutions/Kearney Interactive need to have a broad range of design and
implementation services - including branding/marketing, web design and e-solution
implementation
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
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The future of management consulting
A.T.Kearney offers comprehensive support to start-ups and new ventures.
A.T. Kearney New Ventures
 Comprehensive
strategic and
operational
support
Support through all business phases
Business
Plan
Growth
…
IPO/
Sale
A.T. Kearney Start-up Service
Practice
 Dedicated team
 Long-term
commitment and
flexible
compensation
Launch
$
Shares
+
A.T. Kearney
Start-up
Network
Others
Source: A.T. Kearney Start-up
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
43
Questions
& Answers
an EDS company
A.T. Kearney / Szkoła Biznesu im. Kozminskiego / May 28, 2001 / shj
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