Management Consultants or Problem Solving is to boost organizations to solve issues, create values, maximize growths, all to improve business performance. Till now all these were done through traditional methods. The consultant’s role was to identify options, suggest recommendations for change, advising additional resources to implement change. But now all these methods are going to change permanently with the invasion of technology.
The digital outburst
Over the past decade, management consulting has grown significantly to become the most dynamic service industry worldwide. This impact was disruptive with digitization. Also, this growth can be attributed to ongoing economic change, a strong longer trend with the development of IT, and increasing globalization.
The future is with digital as it is taking every sector by storm.
Consulting is also no different from other sectors. With emerging technologies like AI, Machine Learning, and Big Data, it has become crucial for management consultants to naturally adopt these technologies for delivering quick solutions to sporadic issues faced by their clients. There are also advantages, as these technologies are opportunities for consultants and consulting firms to bring out the best innovative solutions.
Adopting these tech changes will not only save time but also help consultants deliver apt solutions instantly.
These technologies emerged management consulting business models to include various methods. The online network’s method gives flexible access to top talent as opposed to the traditional approach of hiring a team of consultants. Here, the clients benefit from value, flexibility, and control by selecting the consultants with whom they want to work.
Another method is that the value-adding process model, which may be a transition from traditional consulting that gives client-friendly technology and large data solutions. There was a disruption to traditional consulting when software and technology-based tools for data analytics were created and so data-driven decision-making became structured, repeatable, and standardized to be independent for the individual consultants.
Asset-based consulting was another technology able to add value and competitive advantage to consumers by shortening project lead times and providing more functionality with lower costs. The traditional organizational change method (OCM) was replaced with self-service software and initial training tool e-change. This self-service digital tool will enable companies to bring out OCM in providing education, diagnostics, planning templates, reporting tools, and social learning functionality.
To understand competitive advantage, consulting firms have adopted gain-sharing contracts where the consultants share under 10% of all contract gains.
Grasping the potential of digitization is that has to happen as there is no other go, while already being heavily occupied with many other serious agendas. Also, consultants are being challenged to help clients organize in a way that makes them blended and successful in reconciling the objectives of today’s strategic projects and with tangible steps in their digital agenda.
The startup invasion
The rapidly emerging trends have given birth to many startups in the consulting industry. Also, these new startups know where to tap and how to deliver the best. They are considered being players who can adapt at creating solutions through software and proper use of data analytics, cloud services, cognitive computing that bring transition in their sectors.
The advantage of the newbies is they come with a deep understanding of many new technologies and know-how to adapt them faster to deliver better results to their competitive clients.
However, startups need guidance and implementation help from skilled and experienced professionals in business aspects across the board. It ranges from growth strategy and competitive analysis to operations management, human resources, and financial planning.
Everybody knows that there is no single winner on this earth that came out easily.
From traditional consulting giants to large corporates offering customized services, the race to tap this growing trend and reach startups first is well deserved.
The gig economy
Today’s professionals are very comfortable in the freelancing ecosystem. Management consultants are facing fresh forms of competition because of freelancing. Freelance management consulting expertise and freelance interim executive roles are in demand because they work on a contract basis or project basis.
Although this kind of job doesn’t provide specific benefits like pension schemes or paid leave as compared to a permanent salaried job, yet freshers still prefer such roles for freedom and other benefits like work from home.
For consulting firms, this gig economy has emerged as one of the best platforms to bring in the right talent.
There is a rise in process-related projects as companies seek to transform management and operations to struggle with radical shifts in the business landscape. Also, an increase in high-end independent talent for advanced analytical skills is difficult to source the full-time market. The project management’s continued search for the most relevant skill set is needed across industries.
The new technology offerings will remove a lot of distractions in how we work towards goals.
The value delivery by management consultants will change. Also, in the following years, the entire business world will have to learn to change quickly by nature. We can say the change will not be a challenge anymore.
So, consulting firms will transfer themselves into new formats and new positioning to deliver their insight and transformation value through technology solutions.
Digital Economy in the coming years will not only bring the Promise, but it will also give room for the Peril to value creation.