Strategy development 4.0 and the needed transformation of the consulting industry

Digitization is a megatrend and at the same time one of the biggest challenges of our time. In the age of interconnected technologies, customers can easily receive digital advice. Online forums and crowdsourcing platforms provide access to knowledge and experts. Customers have become more independent and self-confident.

Big data analysis delivers fast results and development potential. Tasks performed by consultants are partly taken over by intelligent software solutions, and human interaction is replaced by digital systems and algorithms. Customers demand tailored consulting services and sustainable solutions within their complex environment. With increasing complexity, interconnected and cross-industry strategies are crucial. Here, apart from subject-specific knowledge, a deep understanding of the customer, individual adaptability and holistic thinking capacity are required.

This leads to a close link between strategy and implementation, following the logic of agile development methodology. It is, above all, the strategy development that drives the demand for consultants in a digital world. The parallelization of strategy development leads to an increasing pace of change. Strategies are reviewed continuously and in some cases fundamentally adapted. This is where a large market for consultants is created. The culture of learning from mistakes is getting increasing acceptance in strategy consulting.

At the same time, digitization provides consultants with tools that enable them to define complex relationships and to quickly develop and implement functional, organizational and cross-sectoral approaches. IT solutions and Robo-Advisors thus have a more supportive role and holistic approaches remain in demand. Only humans are able to think outside the box and to develop specific contextual solutions. Only they can build a sustainable relationship with customers and understand their needs in full breadth and depth. Entrepreneurship and creativity are of central importance. In today's highly competitive market, the entrepreneurial and innovative spirit of advisors is more in demand than ever.

Another challenge for business consulting is the democratization of knowledge, which becomes commonplace in the digital era. Customers have access to a variety of databases and analytics. They have become "smarter" and take advantage of freely available know-how. Armed with more knowledge, more and more customers tend to buy consulting services specifically and rely less on total solution providers. Democratization of knowledge and improved access to data are part of the reasons why traditional consulting firms might lose value and differentiation.

The new type of consultants is able to think strategically, analytically and creatively, and he can use digital tools that allow him to develop and deploy customized and complex solutions across industries. The new consultant is becoming a business model transformer and technology expert. He is an excellent networker and understands how ecosystems work. This is the foundation on which he can build bridges between different industries and sectors.

(first published in June 2017 as a contribution to the ASCO market study)