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Filing Information: August 2013, IDC #242453, Volume: 1
Business Consulting Services: Competitive Analysis
C O M P E T I T I V E A N A L Y S I S
I D C M a r k e t S c a p e : U . S . B u s i n e s s C o n s u l t i n g S e r v i c e s f o r
S m a r t C i t i e s 2 0 1 3 V e n d o r A n a l y s i s
Cushing Anderson Ruthbea Yesner ClarkeKerry Smith
I D C O P I N I O N
This IDC study represents the vendor assessment model called IDC MarketScape.
This research is a quantitative and qualitative assessment of the characteristics that
explain a vendor's success in the marketplace and help anticipate its ascendancy.
This study assesses the capability and business strategy of many of the leading
business consulting firms. This evaluation is based on a comprehensive framework
and set of parameters expected to be most conducive to success in providing
business consulting services during both the short term and the long term. Asignificant and unique component of this evaluation is the inclusion of the perception
of business consulting buyers of both the key characteristics and the capabilities of
these consulting providers. As one would expect of market leaders, overall, these
firms performed very well on this assessment. Key findings include:
Surprisingly, this evaluation discovered that generally buyers are disappointed
with the consulting provider's ability to maximize the project's value. While all
vendors state a focus on maximizing the value of their projects, buyers believe
this area is one of the weakest performance areas for consultants overall.
Firms are generally quite good at demonstrating their ability to apply proven
methodologies/tools and to provide a full spectrum of business consulting
services. As Smart Cities projects become more common, repeatable
approaches to similar issues will create higher value.
The firms assessed for Smart Cities are challenged with serving the midtier cities
and are heavily focused on large cities. While finding opportunities in midsize
cities is more labor intensive, there is a lot of opportunity that could be lost to
emerging high-tech urban consultancies. Repeatable processes catered to
smaller projects will not only create higher value in larger cities but also expand
market potential to midsize cities.
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©2013 IDC #242453 1
I N T H I S S T U D Y
This IDC study uses the vendor assessment model called IDC MarketScape. This
research is a quantitative and qualitative assessment of the characteristics that
explain a firm's success in the marketplace and help anticipate its ascendancy.
This study assesses the capability and business strategy of many of the leading
business consulting firms. This evaluation is based on a comprehensive framework
and set of parameters expected to be most conducive to success in providing
business consulting services during both the short term and the long term. A
significant and unique component of this evaluation is the inclusion of the perception
of business consulting buyers of both the key characteristics and the capabilities of
these consulting providers. As one would expect of market leaders, overall, these
firms performed very well on this assessment.
This study is composed of two key sections. The first part is a definition or description
of the characteristics that IDC analysts believe make a successful business
consulting firm. These characteristics are based on buyer and vendor surveys and
key analysts' observations of industry best practices.
The second part is a visual aggregation of multiple firms into a single bubble-chart
format. This display concisely exhibits the observed and quantified scores of the
consulting providers.
The document concludes with IDC's essential guidance to support continued growth
and improvement of these firms' offerings.
M e t h o d o l o g y
IDC MarketScape criteria selection, weightings, and vendor scores represent well-
researched IDC judgment about the market and specific firms. IDC analysts tailor the
range of standard characteristics by which firms are measured through structured
discussions, surveys, and interviews with market leaders, participants, and end
buyers. Market weightings are based on user interviews, buyer surveys, and the input
of a review board of IDC experts in each market. IDC analysts base individual firm
scores and, ultimately, firm positions on the IDC MarketScape, surveys and
interviews with the firms, publicly available information, and buyer experiences in an
effort to provide an accurate and consistent assessment of each firm's characteristics,
behavior, and capability.
S I T U A T I O N O V E R V I E W
I n t r o d u c t i o n
The concept of Smart Cities is in many ways a construct in which to frame local
government transformation. This transformation is enabled by emerging technologies,
such as the Internet of Things and machine to machine (M2M), social media, mobility,
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and Big Data and analytics, but it is also focused on specific goals. In IDC's definition,
Smart City pilots, projects, or initiatives are focused on one or more of the following:
Sustainability
Economic development and/or revitalization
Open data and transparency
Citizen and stakeholder engagement
A key ingredient in this transformation is also the ability for government leaders,
including CIOs and the IT department, to embrace and test new ideas and to promote
innovation and change. All of these factors together typically require new strategic
directions, organizational and process changes, and selecting and implementing new
systems to support a Smart City strategy.
IDC forecasts spending on business consulting services by U.S. local governments to
be $1.1 billion in 2014, with a growth rate slightly above 4% through 2017. Spending
for consulting specific to Smart City solutions will be a small but fast-growing segmentof this market as cities look to road map their technology investments and
organizational and process changes necessary for city transformation. In a 2012 U.S.
survey, 21% of local government respondents and 33% of state respondents said
they would use business consulting services to help research, implement, and/or
deploy smart technology solutions for their organization. These projects will be driven
by the following:
Meeting the Smart City goals listed previously, with economic development (i.e.,
job creation) being a top priority
Transforming business systems and processes to help cities provide improved
citizen services and meet rising citizen expectations
Strategic direction on the use of emerging technologies like Big Data and
analytics, cloud, social business, machine-to-machine automation, visualization
tools, and mobile apps
As described in IDC's Smart City Maturity Model, most cities are currently in the Ad Hoc
stage with traditional government modus operandi, with discrete, one-off Smart City
pilots or projects that are department based. While these projects serve to develop the
business case for further investment, many cities will start to require services to help
move to the Opportunistic stage in which project deployments need collaboration within
and between departments and where key stakeholders are aligned around developing a
long-term strategy. To move forward, city leaders will need to:
Begin to assess its Smart City current competency and maturity
Define short- and long-term goals and plan for improvements
Prioritize technology, partnership, staffing, and other related investment
decisions
Uncover maturity gaps among departments, business units, or between
functional and IT groups
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©2013 IDC #242453 3
There are many challenges and obstacles to Smart City adoption that also drive the
need for external consulting services. Examples of the challenges include:
Fragmented decision making. Cities traditionally operate in a highly fragmented
state with budgets, governance, decision making, IT platforms, and information
handled by individual departments. The result is that IT strategy, investment, and
the processes that support services delivery are inefficient when viewed in asystemic citywide operational context: multiple data sets and applications exist in
different departments, relevant information is not shared, and operations are not
coordinated beyond emergency protocols or when required for special events.
Rigid processes and the lack of needed skill sets. Despite city leadership that
may be pushing a Smart City agenda, and the desire by many city workers to
improve and change, it is difficult for cities to overcome risk-averse cultures and
procurement processes that make experimentation and innovation a challenge
especially if staff lack the skill sets necessary to set the strategic and technical
direction.
A time of austerity. These barriers to adoption are further complicated by thelong economic recovery in which many cities are operating in very austere
environments, and there is limited federal funding for pilot projects. Cities are
very much still in "do more with less" or even "do less with less" mode and as
such Smart City initiatives must provide ROI, cost reductions, efficiency
improvements, and improved citizen services.
Many cities are wondering how to find investment dollars for these new projects and
also how to sustain them over time. Leveraging consultants with the right experience
at bridging stakeholder requirements and aligning project objectives, consultants who
have the process, technical, and even local government experience, and consultants
with expertise in funding models, public/private partnerships, performance
contracting, and/or capital raising initiatives is essential.
IDC MarketScape Vendor Inclusion Criteria
This research includes analysis of the five largest business consulting firms and firms
with broad portfolios spanning IDC's research coverage and with global scale. This
assessment is designed to evaluate the characteristics of each firm — as opposed to
its size or the breadth of its services. It is conceivable, and in fact the case, that
specialty firms can compete with multidisciplinary firms on an equal footing. As such,
this evaluation should not be considered a "final judgment" on the firms to consider
for a particular project. An enterprise's specific objectives and requirements will play a
significant role in determining which firms should be considered as potential
candidates for an engagement.
W e i g h t i n g E v a l u a t i o n C r i t e r i a
The importance of a firm's characteristics to project success and relevance of the
particular issue combined with IDC's opinion about the impact those elements have
on the selection of firms implies a unique weighting of these elements when
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evaluating a firm's overall strategy and capability to address market opportunity and
realizing market success (see Tables 1 and 2).
In addition to the criteria for success having varying weights, IDC believes the
aggregate criteria (offering, go to market, and business) should also be weighted.
Table 3 illustrates the relative weights used in this analysis.
Consequently, based on the weightings, we believe there are several criteria that are
most influential in predicting vendor effectiveness on specific engagements:
Marketing strategy: Particularly important is the ability of the consultant to
articulate its understanding of the key business issues of the day — those
specific to the engagement under consideration, but also more generally. And
those descriptions should reflect the unique criteria and characteristics of the
issue that make it relevant in the context of the enterprise.
Portfolio strategy: The consulting firms must be adding new capabilities to their
portfolio that not only reflect the large "in demand" services but also reflect the
consultants' point of view about those services that will become important in thenear- and midterm. To the extent its possible, it is also important that the
consultants position themselves with skills and offerings that reflect the long-term
direction of consulting — including increased use of risk awareness, risk
integration, and analytics.
Other offering capabilities and go-to-market capabilities: For this analysis,
significant weight was given to a review of both public and confidential-specific
illustrations of capabilities delivered. Sometimes, these were case studies; other
times, they were "qualifications" — confidential recommendations normally used
during a proposal process. The ability of consulting firms to represent their work
with specific client examples is essential to their ability to attract new clients and
gain additional qualifications. Particularly important was being able todemonstrate a wide breadth of Smart City examples.
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©2013 IDC #242453 5
T A B L E 1
K e y S t r a t e g y M e a s u r e s f o r S u c c e s s : U . S . B u s i n e s s C o n s u l t i n g S e r v i c e s
f o r S m a r t C i t i e s
Strategies Criteria Criteria for Success
Subcriteria
Weighting
Offering strategy Current development of offerings will be relevant and attractive to customers
over the next three to five years.
Functionality or offering
road map
A wide variety of approaches will be employed to ensure increased functional
and industry capability, including strategic hiring and training. To ensure
maximum impact, organizations will need to increase their ability to construct
teams that leverage those capabilities and provide precise value to clients.
1.0
Delivery model Methodologies and tools are increasingly leveraged from a single, universally
accessible source to ensure worldwide consistency. Tools will be sifting to
include more data-based research applied to solutions. Clients will demandgreater degree of knowledge transfer to assure maximum ongoing value for the
project. Also essential for effective delivery is the ability to transfer knowledge to
the client teams.
3.0
Portfolio strategy To remain relevant, consulting firms will add capabilities to both high-demand
services and those services that the consultant believes will become important.
Consultants will also begin to incubate offerings that reflect the long-term
direction of consulting — including increased use of risk awareness, risk
integration, and analytics. Also important as a portfolio strategy is the ability of
the consultant to challenge corporate culture.
4.0
Other offering strategies Prioritization of new opportunities must consider demand and adjacent
capabilities and involve a tiered (regional) prioritization process and will often
include incorporating risk awareness into engagements in a proactive manner.
2.0
Offering strategy total 10.0
Go-to-market strategy These strategies maximize the connection between offering and customers,
including choosing to target customer segments that offer the greatest
opportunity over the next three to five years.
Pricing model Not used in this evaluation. NA
Sales/distribution
strategy
Consulting models are becoming more complex. Enterprise buyers need to
consume consultative services in increasingly diverse ways. While still dominant,
traditional engagement models are being supplemented by "microsourcing" of
technically complex but narrow tasks such as analytic processing or ongoing
benchmarking and information services provided with less intensive
"consultation" to support insourced analytical or benchmark operations.
2.0
Marketing strategy Growth comes from many types of opportunities and client interactions, including
temporal opportunities. Identifying areas of high demand and providing
comprehensive and timely solutions require an integrated firmwide effort but will
best serve the client's most important and immediate needs. Additionally,
enterprises must perceive consultant competence in key issues to gain
permission to address specific client problems.
7.0
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T A B L E 1
K e y S t r a t e g y M e a s u r e s f o r S u c c e s s : U . S . B u s i n e s s C o n s u l t i n g S e r v i c e s
f o r S m a r t C i t i e s
Strategies Criteria Criteria for Success
Subcriteria
Weighting
Customer service
strategy
Consistent and innovative service delivery relies on collaborative efforts
throughout an organization. Firms must ensure a strong culture of collaboration,
consistent and relevant training, and executive oversight and support. In the
best case, firms use a combination of formal and informal peer review as a
quality catalyst, sharing better practices and establishing a culture of high-quality
engagements.
1.0
Go-to-market strategy
total
10.0
Business strategy Strategies to grow the business are aligned with market trends and future
opportunities over the next three to five years.
Growth strategy Firms poised for growth in the near term provide relevant specialized offeringsthat address specific needs, particularly for industries, geographic markets, or
the size of the client. Additionally, a consulting provider's ability to cultivate a
wide range of referenceable clients ensures the provider's capabilities will get
the widest exposure to opportunities. Growth strategy is measured by both the
diversity of the planned dimensions of growth and the measure of enthusiasm of
client recommendation across company size and functional areas.
3.0
Innovation/R&D pace
and productivity
Firms must be able to deliver innovation to their clients, in terms of both
leveraging existing experience for the unique benefit of a client and developing a
truly unique approach to solutions. Delivery of innovation is measured by client
perception of the innovation delivered on the project.
5.0
Employee strategy To maximize the ongoing capability of the consultant's employees, firms provide
required training related to specific functional or technical areas and related tomore broad-based consulting capabilities. The hours of required training
demonstrate the firm's commitment to specific, continuous improvement of its
individual consultants.
2.0
Business strategy total 10.0
Source: IDC, 2013
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©2013 IDC #242453 7
T A B L E 2
K e y C a p a b i l i t y M e a s u r e s f o r S u c c e s s : U . S . B u s i n e s s C o n s u l t i n g S e r v i c e s
f o r S m a r t C i t i e s
Capabi lities Criteria Criteria for Success
Subcriteria
Weighting
Offering capabilities The offering's capabilities align well with current market needs and demands.
Functionality/offering
delivered
Offering capability is a combination of functional (domain) knowledge, industry
insights, and technical capabilities. Higher capability reflects buyer perception of
a firm's capability.
3.0
Delivery model
appropriateness and
execution
The appropriate delivery model must include an appropriate integration with the
client team and meet client-developed project timelines. Additionally, for
consistent success, the consultant must drive and support a culture of change.
Higher capability is reflected in higher buyer perception of a firm's capability in
both the "ability to integrate with client team" and the "ability to meet project
timelines" and "drive and support change across the organization."
3.0
Cost competitiveness Cost competitiveness can best be measured by the ability to deliver financial
benefits as a result of the project and directly improve client performance.
Higher capability reflects buyer perception of a firm's capability in those two
areas.
1.0
Portfolio benefits
delivered
Evolved consulting firms will necessarily be required to provide a full range of
consulting services combined with an ability to provide specific insights related
to industry, technical, or domain issues. Evolved consulting increasingly includes
analytics or analytical components as a delivery tool and output of
engagements. Higher capability reflects buyer perception of a firm's fullness and
appropriateness of services offered and its ability to integrate analytics into an
engagement.
1.0
Other offering
capabilities
Consulting firms are continually introducing new service offerings. For high
relevance, firms introduced a mix of both temporal and "foundational" offerings
in the past years. Additionally, firms have a broad range of available case
studies to demonstrate relevance to key issue and opportunities in this domain.
2.0
Offering capabilities total 10.0
Go-to-market
capabilities
These capabilities maximize the connection between offerings and customers,
such as delivery, partnerships, pricing, distribution, marketing, sales, and
service.
Pricing model options
and alignment
Not used in this evaluation. NA
Sales/distribution
structure, capabilities
Firms must operate by balancing both local and global requirements. Global
presence indicates a firm's ability to respond and be relevant to cross-
geographic issues. Higher capability reflects buyer perception of a firm's
capability.
4.0
Marketing The ability of a fi rm to connect to its clients' issues is essential to establishing a
level of trust in the firm's ability to solve the problem. Issue performance is
evaluated and weighted based on industry, domain, and regional priorities.
6.0
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T A B L E 2
K e y C a p a b i l i t y M e a s u r e s f o r S u c c e s s : U . S . B u s i n e s s C o n s u l t i n g S e r v i c e s
f o r S m a r t C i t i e s
Capabi lities Criteria Criteria for Success
Subcriteria
Weighting
Higher capability reflects buyer perception of a firm's capability.
Customer service Not used in this evaluation. NA
Other go-to-market
capabilities
Not used in this evaluation. NA
Go-to-market capabilities
total
10.0
Business capabilities Financial, employee, partner, and R&D management, among other capabilities,
are in agreement with current market opportunities.
Growth strategy
execution
Essential to a consulting firm's growth is its ability to develop industry-specific
"referenceable clients." Clients that strongly believe the firm will represent their
best interests are most often referred. Growth strategy execution is measured by
the degree of enthusiasm of industry-related recommendations by clients.
3.0
Employee management In addition to "required training," the culture of continuous improvement in an
organization can be reflected by how much training consultants consume
annually. A higher score indicates more annual training consumed by
consultants.
2.0
Other business
capabilities
Also essential to a consulting firm's growth is the firm's ability to develop size-
and domain-specific "referenceable clients." Clients that strongly believe the firm
will represent their best interests are most often referred. Business capabilities
are measured by the degree of enthusiasm of recommendations by clients to
enterprises of similar size and by executives of similar responsibility.
5.0
Business capabilities
total
10.0
Source: IDC, 2013
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©2013 IDC #242453 9
T A B L E 3
A gg r e g a t e C r i t e r i a W e i g h t i n g f o r U . S . B u s i n e s s C o n s u l t i n g S e r v i c e s
f o r S m a r t C i t i e s
Weighting
Strategy Criteria Capabilities Criteria
Offering 5.0 5.0
Go to market 3.0 3.0
Business 2.0 2.0
Total 10.0 10.0
Source: IDC, 2013
F U T U R E O U T L O O K
I D C M a r k e t S c a p e U . S . B u s i n e s s C o n s u l t i n g
S e r v i c e s f o r S m a r t C i t i e s M a r k e t
V e n d o r A s s e s s m e n t
The IDC vendor assessment for the business consulting services for Smart Cities
market represents IDC's opinion on which providers are well positioned today throughcurrent capabilities and which providers are best positioned to gain market share over
the next few years. Positioning in the upper right of the grid indicates that providers
are well positioned to gain market share. For the purposes of analysis, IDC divided
potential key strategy measures for success into two primary categories: capabilities
and strategies.
Positioning on the y-axis reflects the provider's current capabilities and menu of
services and how well aligned it is to customer needs. The capabilities category
focuses on the capabilities of the company and services today, here and now. Under
this category, IDC looks at how well a provider is building/delivering capabilities that
enable it to execute its chosen strategy in the market.
Positioning on the x-axis, or strategies axis, indicates how well the provider's future
strategy aligns with what customers will require in three to five years. The strategies
category focuses on high-level strategic decisions and underlying assumptions about
offerings, customer segments, business, and go-to-market plans for the future, in this
case defined as the next three to five years. Under this category, analysts look at
whether or not a provider's strategies in various areas are aligned with customer
requirements (and spending) over a defined future time period.
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Figure 1 shows each provider's position in the vendor assessment chart. A provider's
market share is indicated by the size of the bubble.
F I G U R E 1
I D C M a r k e t S c a p e U . S . B u s i n e s s C o n s u l t i n g S e r v i c e s f o r
S m a r t C i t i e s V e n d o r A s s e s s m e n t
Source: IDC, 2013
P r o v i d e r P r o f i l e s
Accenture
According to IDC analysis and buyer perception, Accenture is an IDC MarketScape
Leader for business consulting for U.S. Smart Cities projects.
Accenture offers a broad array of management consulting services to both the public andthe private sectors in the context of cities and local government. Its approach is to explore
the opportunities for clients — and increasingly for public/private partnerships — and to
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define an outcome in economic and stakeholder terms that helps drive their businessforward and deliver results. Accenture sees itself as a strategic and operational
management consultant willing to pursue a number of innovative value-based approacheswith its clients tied to realizing results. As of June 2013, Accenture had more than 266,000people, with growth that appears to be well distributed by geography.
Accenture's management consulting growth platform is responsible for the developmentand delivery of the company's strategic, operational, functional, industry, process, and
change consulting capabilities, working closely with the professionals in its technology andoutsourcing growth platforms.
Accenture Management Consulting's Strategy and Sustainability practice works closelywith the company's Health & Public Service operating group to serve local government
and cities. As required by local government and city-oriented clients, Accenture draws onthe supporting functional expertise of its five function-based service areas: sales and
customer services, finance and enterprise performance, operations, risk management,and talent and organization. Accenture Management Consulting also includes Accenture
Analytics, which is increasingly involved in these sectors. Many Accenture ManagementConsulting professionals also help clients assess and implement strategic business
solutions in areas such as cloud and mobility.
These groups are backed up by Accenture's centers of excellence (COE) and innovation
centers, including the recently opened Analytics Innovation Center in Singapore,
established in collaboration with Singapore's Economic Development Board. Accenturehas a number of analytics centers around the world supporting cities in education, health,smart grid, transportation, and procurement. Delivery of city and local government service
offerings is also supported by the specialist skills in its Capability Network. Thisincorporates a client-facing Global Capability Network, which provides capabilities in high-
demand areas, such as sourcing, procurement, and analytics. From a growing number of regional centers around the world, this satisfies client demand for consulting to beprovided at speed and at scale.
Accenture launched in 2012–2013 a number of new business services — some functionaland some industry specific — helping to focus its offerings of end-to-end solutions for
state and local smart government. These include customer-facing digital governmentservices, intelligent processing (e.g., for human service and revenue agencies), integrated
social services, enterprise (ERP) platforms and a range of productivity solutions (sharedservices and strategic sourcing), pension transformation, and police services.
Accenture also offers a range of strategy consulting services to support business model
and financing model innovation, including structures for public/private partnerships. It also
provides integrated digital and physical urban master planning solutions that extendbeyond real estate–driven development to full economic ecosystem development.
Accenture smart grid services and smart building services are additional discrete offerings
to public bodies and utility companies.
Accenture has worked extensively with many of the largest cities in the United States and
around the world to modernize technologies and systems for delivering citizen services. For instance, the firm worked with New York City in the launch and development of its 311 call
center and online services. Integrating and consolidating technology, databases, andprocess streamlining for social service agencies is another area of Accenture expertise. The
firm has developed technology assets, the Accenture Public Service Platform and software
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applications, that align with its public sector consulting to help address growing state andlocal government needs for integration and citizen access across government agency silos.
Accenture has overhauled its public service marketing and, in 2012, launched a multiyear,multi-thematic umbrella marketing and thought leadership campaign, Delivering Public
Service for the Future. This weaves together research on long-range challenges
confronting governments and best practices to boost public sector productivity.
Accenture has also undertaken extensive research with NGOs and third-party
organizations — for example, its work with the World Economic Forum on smart grids and
its collaboration with the Carbon Disclosure Project on a joint report on European cities'emissions and carbon disclosure. It recently published a report with Arup, The ClimateGroup, and Horizon (the University of Nottingham) — Information Marketplaces: The New
Economics of Cities — that addressed how technology can be used in cities to meet thegrowing challenges of expanding urbanization.
Accenture sees dynamic convergence of technologies, industries, and social trends,
creating new operating environments and opportunities for fundamental change andirrevocably altering relationships between governments and citizens and businesses and
customers. The company is focused on helping organizations leverage technologiessupporting overall digital strategy to transform relationships with customers and citizens.
In FY12, Accenture's total net revenue grew by 11% (in local currency), from $25.5 billionto $27.9 billion. Overall consulting services (according to Accenture's definition that
includes management and technology consulting as well as systems integration services)grew by 6% to $15.6 billion. Emerging geographic markets such as Brazil, China, andIndia continued to contribute to Accenture's recent performance.
For business consulting overall, Accenture is considered to be among the most
capable firms at helping clients expand into new markets or geographies, reduce
costs, and drive innovation through their organizations.
Strengths/Opportunit ies
In the U.S. Smart Cities sector, Accenture is seen as most capable of all firms at
integrating risk awareness and solutions within other consulting engagements,
maximizing the value of a project, and transferring knowledge to the client. Additionally,
Accenture is seen as among the most capable at helping drive innovation through an
organization and integrating appropriate analytics into an engagement. Accenture is
seen as better than many of its peers at directly improving clients' overall mission
performance, helping enterprises create a more effective business, leveraging local and
global staff appropriately, providing industry insights and competence, and offering the
necessary spectrum of business consulting services.
Boston Consulting Group
According to IDC analysis and buyer perception, Boston Consulting Group (BCG) is
an IDC MarketScape Major Player for business consulting for U.S. Smart Cities
projects.
BCG is among the most globally recognized strategy consulting firms, employing
4,400 consultants. BCG organizes its capabilities into corporate development,
corporate finance, operations, strategy, marketing and sales, information technology,
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and organization, with other areas of focus including innovation, turnaround,
transformation, postmerger integration, globalization, sustainability, managing in a
slow-growth economy, and growth. The industries served by BCG include automotive,
biopharmaceuticals, consumer products, energy and environment, engineered
products and project business, financial institutions, insurance, media and
entertainment, medical devices and technology, healthcare payers and providers,
metals and mining, private equity, process industries, public sector, retail, technology
and software, telecommunications, transportation, travel and tourism, and social
impact. BCG is credited with pioneering a number of strategy frameworks for the
management consulting industry as BCG's focus on conceptual, strategic thinking has
yielded ideas that have become classics of strategy, including the experience curve,
time-based competition, sustainable growth, and total shareholder value — concepts
that many organizations have leveraged to improve their competitive positions.
BCG has remained a large strategy firm that still mainly focuses on strategy, rather
than also building a large operations practice around which it can bundle strategy
services. The firm does have some operational capabilities, particularly around the
supply chain management element of postmerger integration work.
Research published by BCG is based on survey findings and typically delves deeply
into either a specific industry's business concern or regionally specific business
issues, recently with a significant focus on emerging economies. Publications in 2010
that illustrate the depth and far-reaching impact BCG addresses include What's Next
for Alternative Energy?; Big Prizes in Small Places: China's Rapidly Multiplying
Pockets of Growth; and Winning in Emerging-Market Cities: A Guide to the World's
Largest Growth Opportunity. BCG is recognized for expanding its deep regional
insights in emerging economies supported by investments and proprietary resources,
including BCG's China Center for Consumer Insight.
As a company culture, BCG grows organically. Geographic areas of expansion for
BCG in 2011 included Morocco, Africa; Istanbul, Turkey; and Canberra, Australia
(sites of three new offices for BCG). Another area of growth for BCG is focusing on
public issues and financial services clients. In Mexico and Latin America, BCG has
been aggressive in preparing services around IFRS compliance by training staff and
reducing services costs.
BCG advocates for a systemic approach to some of the major concerns facing
government organizations today: the growing pressure to get more results out of
decreased funding; the difficulties in balancing economic and environmental
necessities when addressing climate change; the need for effective and efficient
social services in light of changing populations and demographics; and the mandate
for transformation within large and complex government organizations. With that in
mind, BCG works with clients to leverage its capabilities in three primary areas. First,
its "Lean Productive Government" approach brings private sector best practices to
areas of the public sector, including justice, health, welfare, defense, transportation,
and education. Second, BCG's public sector sustainability and energy practice
merges energy industry knowledge with public sector capabilities and social
impact/sustainability experience. Third, the company's IT capability enables
governments to get more out of its tech investments — delivering programs on time
and on budget and optimizing sourcing strategies, for example.
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For business consulting overall, BCG is seen as better than many of its peers at
helping clients expand into new markets or geographies.
Strengths/Opportunit ies
To advance as a leader in the U.S. Smart Cities sector, BCG must significantly improve
client perception of its ability to help enterprises create a more effective business as wellas its ability to provide industry insights and competence. Additionally, BCG should
improve client perception of its ability to deliver value-creating innovation, directly
improve clients' overall mission performance, help drive innovation through an
organization, and integrate appropriate analytics into the engagement.
CSC
According to IDC analysis and buyer perception, CSC is an IDC MarketScape Major
Player for business consulting for U.S. Smart Cities projects.
CSC provides technology-led consulting to support the business and mission needs of
clients, with approximately 96,000 employees as of September 2012. CSC has
locations in 70 countries and offers consulting, systems integration, and outsourcing
services organized in two main business units — Global Business Services (GBS),
which includes consulting and systems integration, and Global Infrastructure Services
(GIS) — and three incubator offers: cyber, cloud, and Big Data. CSC serves Global
1000 companies and national and local governments through five industry verticals:
financial services, health services, manufacturing/A&D, public sector, and diversified.
CSC is one of the last remaining independent IT services companies with global reach.
CSC reports that in 2012, its GIS service line accounted for 40% of its revenue, while
consulting contributed 20%. Applications, industry software, and others contribute the
remaining 40%.
With a new CEO, CSC has announced a multiyear transformation plan to fix the
foundation in terms of costs, expand market coverage and drive demand, move up
the value chain, scale next-generation infrastructure, and rationalize and standardize
offerings. While the consulting workforce is globally balanced, different regions have
developed particular strengths such as banking, insurance, retail, transportation, and
manufacturing in continental Europe; public sector and healthcare in the United
States and the United Kingdom; utilities in Latin America; and natural resources and
public sector in Australia. The group has globalized these horizontal and vertical
practices to radiate solutions to all regions.
Growth at CSC comes from both acquisitions and targeted moves to increase market
share organically. In 2011, CSC made the following acquisitions: finalization of the
acquisition of iSOFT Group Ltd., one of the world's largest providers of advanced
healthcare IT solutions; VIXIA Consultoria e Tecnologia Ltda., a São Paulo, Brazil-
based IT services firm focused on providing core operational software, business
consulting, and systems integration services to leading insurance, reinsurance, and
financial institutions in Brazil; Maricom Systems Inc., which provides business
intelligence and data management solutions that support mission-critical health
information technology systems within the U.S. Department of Health and Human
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Services (HHS); and AppLabs Technologies Pvt. Ltd., the world's largest pure-play
software testing and quality management service provider.
Through its Leading Edge Forum (LEF) and the Barometer program, CSC continues
to publish research that supports its growth strategy. In 2011, the LEF published a
series of reports to glean new insights from data: Big Data and Data rEvolution.
Survey results include Global CIO and SRM, as well as Customer Intimacy in Europe.The Barometer program also includes surveys for other CXO functions including
human resources (HR), finance, and payments.
CSC believes that governments operate more effectively with the right technology
and partners with clients to develop systems that will help them address some of their
biggest challenges. Much of CSC's tech-driven approach is focused on government
clients in the United States and leverages IT solutions such as cloud, cybersecurity,
communications, virtualization, datacenter, and infrastructure. This practice offers
specialized business and technology capabilities, from mission and strategy
development to business and policy impact analysis. In addition, BCG offers deep
strategic expertise in functional areas as well as the service-oriented architecture,
enterprise transformation, and technology solutions that support them.
For example, CSC has worked with state health departments in Massachusetts
(designing and launching a first-of-its-kind Web site to connect the uninsured with
universal coverage); New York (implementing the country's largest, most technically
sophisticated Medicaid Management Information System [MMIS]); and North Carolina
(replacing the state's MMIS with a new healthcare administration system to manage
other state agency health services in addition to Medicaid). CSC also worked with the
state of California to migrate its multiple email applications to a cloud-based solution
and the Maryland Department of Transportation to implement the Coordinated
Highways Action Response Team, the first U.S. statewide intelligent transportation
system, to improve highway safety and operating efficiency. The system monitors
data traffic cameras, road sensors, and speed detectors and then shares it with more
than 30 state agencies and the public. On the municipal level, CSC partnered with the
city of Knoxville, Tennessee, to manage rising costs from work-related injuries by
implementing software for risk management and claims processing, which ultimately
lowered workers' compensation claims by $3 million.
CSC's deep industry and business process expertise provides a lens through which
CSC's broad spectrum of capabilities focus on client needs. The ability to expand
across all regions and across all lines of service is the foundation for CSC's future
growth.
For business consulting overall, CSC is seen as among the most capable at helping
drive innovation through a client organization.
Strengths/Opportunit ies
In the U.S. Smart Cities sector, CSC is seen as most capable of all firms at helping
drive innovation through an organization and at integrating appropriate analytics into
an engagement. In addition, CSC is viewed as being among the most capable firms
at maximizing the value of a project and is considered to be better than many of its
peers at delivering value-creating innovation, directly improving clients' overall
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mission performance, helping enterprises create a more effective business, and
transferring knowledge to the client. However, CSC must significantly improve client
perception of its ability to integrate risk awareness and solutions within other
consulting engagements, to leverage local and global staff appropriately, and to
provide the necessary spectrum of business consulting services.
Deloitte
According to IDC analysis and buyer perception, Deloitte is an IDC MarketScape
Leader for business consulting for U.S. Smart Cities projects.
Deloitte is a global professional services organization, with more than 200,000
practitioners in 150+ countries. As a multiservice consultancy, Deloitte's depth andbreadth of capability is key to its business-led approach. Services include:
Enterprise risk
Finance services (including audit and tax advisory services)
Human capital
Strategy and operations
Technology services (full life-cycle technology including advise, implement, and
manage)
As a provider of both assurance and advisory services, Deloitte does not provide
consulting services to its audit clients but does benefit from the strong clientrelationships it has established with audit customers.
Deloitte advocates its proposed value of "executable strategy" with a broad services
footprint to help clients from strategy development to execution. Deloitte believes this
differentiates it from both the newly rejuvenated consulting offerings of the Big Four firms and the traditional or pure-play firms as well as outsourcing-led competitors.
Deloitte is the only firm among the Big Four firms not to have divested itsmanagement consulting and technology business nearly a decade ago. Deloittecredits its strong growth to its breadth and depth of services, global reach with localperspectives, industry insights, and client-centric approach.
Deloitte has industry specialties in all major sectors, including consumer business and
transportation, energy and resources, financial services, life sciences and healthcare,manufacturing, public sector, real estate, technology, and media and
telecommunications. Deloitte continues to evolve its industry model, serving 30 micro-industry sectors across capabilities and geographies.
Deloitte is focused on advancing its innovation culture and is investing in this area.
John Levis was appointed global chief innovation officer to lead both innovation and
Deloitte's integrated market offerings (IMOs). Deloitte has released an innovationframework called Four Cornerstones Innovation Framework and has recentlyexpanded its Global Innovation Ecosystem.
A key output of its innovation process is a portfolio of global integrated market
offerings in which the firm integrates skills from a variety of practices and geographies
across its service lines. The firm has a mature set of global IMOs through which
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Deloitte has enjoyed good momentum in the past several years and is continuouslyincubating new areas of investment. Its current IMO portfolio includes such areas asanalytics, finance transformation, IFRS, M&A, risk, and sustainability.
Deloitte also announced the launch of Deloitte Digital. Deloitte Digital combines thestrengths of a creative agency, an IT consultancy, and an industry-centric business
strategy provider into a single consultancy. Deloitte expects to help clients unleashthe business value of these emerging technologies and domains. Deloitte Digital
includes Deloitte's online- and subscription-based services to support the company'sclient demand for data and advanced analytics and for alternative delivery models.
Deloitte is recognized as an employer of choice, as evidenced by its recognition in manyindependent rankings in North America, Europe, the Middle East, and Asia. Deloitte is
known for promoting flexibility and customization for each individual employee's career path via its mass career customization (MCC) program and its development and
adoption of corporate lattice career model where employees no longer move up and outin the antiquated "corporate ladder" structure but move more fluidly and flexibly
throughout the organization as desire and demand requires. Deloitte has also madesignificant investments in training and education for its employees with Deloitte
University, a state-of-the-art leadership development center near Dallas, Texas, whichformally opened in October 2011. Deloitte University served more than 40,000professionals from 70 countries over the past year. Deloitte is currently assessingwhether to stand up similar campuses in Europe and Asia/Pacific.
Deloitte's growth is both organic and through acquisition in key areas. Deloitteannounced its plans this year to invest in certain priority markets, announcing a
combined $750 million investment over the next three years in 11 priority markets.The investment program aims to expand client service and industry capabilities,
bolster the hiring and deployment of top talent, and cultivate innovative new servicesand multidisciplinary offerings. In its last reported fiscal year 2012, Deloitte
successfully completed 30 strategic acquisitions in its developed markets as well asDeloitte's priority markets and capability areas. Focused on acquiring assets of
strategic importance such as strategy, digital, analytics, software as a service (SaaS),financial advisory, legal services, and consulting, several of the more recent high-profile transactions were:
Aggressor, merging with existing capabilities to position Deloitte as a leading
Workday integrator
Bersin & Associates, a provider of research-based membership programs and
advisory services in the human resources, talent, and learning market
CRG, in the financial advisory area, to grow its financial restructuring, turnaround
management, and bankruptcy reorganization capabilities
Monitor Group, a leading global pure-play strategy firm, to enhance Deloitte's
broad-reaching strategy and execution presence
Übermind and Daemon Quest to build upon its Digital and Customer capabilities
Deloitte's U.S. State Sector practice has been serving state and local governments as
well as higher education institutions for over 46 years. Applying a broad range of
services including consulting, enterprise risk, tax and financial advisory services,
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Deloitte has worked with its clients to address their complex challenges and take on
many of their most pressing issues. Over the past 5 years, Deloitte has served 47 of the
50 states, 8 of the 10 largest cities, and more than 200 institutions of higher education.
Deloitte's U.S. State Sector practice focuses on the delivery of government
transformation projects with a particular emphasis in health and human services,
finance and administration, higher education, transportation, and labor andemployment. Deloitte creates integrated and sustainable solutions focused on helping
clients address a full spectrum of concerns — including fiscal, process, policy,
security, and technology. The company's research and insights analyze the major
strategic, organizational, and technical issues facing state and local government
organizations today and help clients understand how to apply leading best practices
in disruptive innovation, emerging technologies, and new business models.
The development of new cutting-edge services and recent acquisitions further
strengthen Deloitte's footprint in the state sector industry. The acquisition and
integration of Monitor has extended Deloitte's strategy and innovation capabilities,
enabling the firm to capitalize on its deep industry experience and collaborate with
clients to create executable strategies — seeing them through to implementation.Deloitte's "Deloitte Digital" service line provides a range of cutting-edge technical
services including strategy, mobile, social, Web, and digital content development,
further positioning Deloitte to help states make significant strides in advancing their
technical solutions and interactions with citizens. Finally, Deloitte's Innovation
Centers, particularly, the Center for Health Solutions, the Center for Cyber Innovation,
and the Center for Federal Innovation have delivered research and solutions to help
state government clients creatively address top-of-mind issues including health
reform, security and privacy, and complex data analytics. The combination of deep
sector experience, research, and resources has positioned Deloitte to be a firm that
states regularly turn to work through their most complex issues.
For business consulting overall, Deloitte is considered to be the strongest of all firms
across a number of key metrics. Deloitte is viewed as the most capable at integrating its
project team with a client, maximizing the value of a project, meeting project timelines,
and providing the necessary spectrum of business consulting services. Deloitte is also
considered the best in the field when it comes to helping enterprises comply with new or
existing regulations and leveraging local and global staff appropriately.
Strengths/Opportunit ies
In the U.S. Smart Cities sector, Deloitte is seen as among the most capable of all firms
at helping enterprises create a more effective business. Deloitte is also considered to be
better than many of its peers at helping drive innovation through an organization,
maximizing the value of a project, providing industry insights and competence, andproviding the necessary spectrum of business consulting services. Conversely, Deloitte
must significantly improve client perception of its ability to integrate risk awareness and
solutions within other consulting engagements and its ability to transfer knowledge to
the client. In addition, Deloitte should improve the perception of its ability to directly
improve clients' overall mission performance, integrate appropriate analytics into an
engagement, and leverage local and global staff appropriately.
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EY
According to IDC analysis and buyer perception, EY is an IDC MarketScape Major
Player for business consulting for U.S. Smart Cities projects.
EY is a partnership with 167,000 professionals as of June 2012 across 140 countries
globally. With the appointment of Mark Weinberger as the global chairman and CEO,
the professional services organization announced the adoption of EY as its global brand
name, unveiled a new logo, and adopted "Building a better working world" as its
purpose. EY's core business consulting services sit within EY's advisory organization
and include service lines of risk advisory and IT risk advisory, as well as performance
improvement (PI). EY also offers business consulting services beyond its advisory
organization, including post-transaction integration services (transactions), tax-effective
process advisory (e.g., supply chain and human capital) (tax), fraud investigation and
disputes management (assurance), climate change and sustainability, and financial
accounting advisory services (assurance). EY is well recognized for these capabilities in
assurance, tax, and transactions, which sit outside of its advisory organization.
EY is focused on growth in its business performance improvement and risk practices. Analytics is an important growth area to EY in both risk and PI, as evidenced by EY's
recent continued acquisitions in this space. In 2011, these acquisitions included ISA
Consulting (April — Americas) and Partake Consulting (May — Europe, the Middle
East, India, and Africa [EMEIA]). EY has a globally integrated practice that serves large
global companies as well as medium-sized global, regional, and national organizations
and strategic growth companies. EY relies on its extensive business network to
leverage long-term relationships with CFOs and other senior CXO executives. While EY
is not targeting specifically the strategy consulting or enterprisewide systems integration
markets, it considers its strategy and technology expertise as key enablers for its PI and
risk services. This approach is aimed at maintaining EY's objectivity in the advice the
company gives to clients. EY maintains strong relationships with and expertise in
leading technology vendors and their products to ensure the company's professionalshave the highest levels of technical expertise.
EY's global reorganization has helped the firm deliver on engagements with clients
globally. From 2009 to 2011, EY integrated its organization to form single
management units in its Americas, EMEIA, and Asia/Pacific regions. EY has been
investing in emerging markets and has built dominant practices in a number of
geographies. Within its advisory service line, in 2012, EY experienced tremendous
growth in Brazil, CIS, Korea, Sub-Saharan Africa, India, Mexico, Japan, Canada,
Latin America, Belgium, the Netherlands, Germany, and Nordics.
EY has continued to invest heavily in building its capabilities through bringing in
groups of partners and other senior professionals from other consulting firms. Thishas been particularly significant in EY's performance improvement business, where it
has increased staff numbers by over 40% without any large acquisitions. The
following organizations have been brought into EY in the past 12 months, bringing
key skills to specific geographies: Axia Value Chain — cross-performance
improvement (Brazil, December 2012), Resolve Group — HR and change
management (South Africa, October 2012), Q-Core Consulting — financial services
and analytics (South Africa, June 2012), Arrows Consulting — performance
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improvement and BI (Japan, January 2012), Life Time Partners — healthcare
(January 2012), Galgana — performance improvement (Spain, December 2012).
Through its Global Enablement Center, EY supports and leads global research and
innovation initiatives. EY also develops and delivers enhancements and extensions to
its core methodology and accelerator as well as enhancements in its process and risk
models. Four recent enablement center offering developments are enterpriseintelligence, risk transformation, cost of controls, and finance transformation.
EY has also established centers of excellence in its regions around specific services.
For example, in EMEIA, there are supply chain, customer, finance transformation, risk
transformation, IT transformation, information security, and outsourcing advisory
centers of excellence. EY has also developed strong collaborative relationships with
leading research/academic institutions, including the Risk Innovation Board, Tapestry
Networks, and Innovation Value Institute.
EY's service lines are integrated in front of the client through the role of the client
service partner (CSP), a dedicated relationship management role. CSP's relationship
role helps bring together services from across the whole of EY. EY does bringtogether such integrated services that pull from across all of its services. An example
is tax-effective supply chain management that helps transform global supply chains
through a holistic approach, which spans operations, tax, and risk.
EY delivers through sectors and is deeply investing into sector-specific process and
risk models (which include benchmarks from external sources like APQC and EY's
own metrics) to deliver sector-specific value propositions. Consulting services most in
demand in the past six months have included comprehensive enterprisewide cost
reduction, analytics and enterprise intelligence, and information security and services
to support organizations looking to grow their emerging market presence.
EY has recently launched eight regional risk centers of excellence in growth andemerging markets that will act as hubs for services addressing strategic, operational,
financial, IT, and compliance risks across each region and offer insight into local laws
as well as local business and industry practices against a robust backdrop of global
risk methodologies and international standards.
EY acknowledges that policy makers are faced with rapidly evolving dynamics,
involving such long-range and systemic trends as changing demographics,
urbanization, and climate change. Add to this the ongoing fallout from the economic
crisis — tight budgets, slow growth and high unemployment — and policy leaders
must now make do with less, tasked with delivering services in line with rising
expectations, while somehow boosting productivity and efficiency. EY works with
clients in the government and public services sectors, with the aim of creating anentrepreneurial spirit, shaping policy and strategy, delivering performance
improvement and organizational change, and harnessing funding and procurements
through alliances with the private sector, as well as the full range of assurance, tax,
advisory, and transaction services.
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For business consulting overall, EY is seen as among the most capable of all firms at
challenging corporate culture and at supporting business changes across a client
organization.
Strengths/Opportunit ies
In the U.S. Smart Cities sector, EY is seen as most capable of all firms at helpingenterprises create a more effective business and at leveraging local and global staff
appropriately. Additionally, EY is viewed as among the most capable at directly
improving a client's overall mission performance, providing industry insights and
competence, and offering the necessary spectrum of business consulting services.
EY is seen as better than many of its peers at helping drive innovation through an
organization, integrating appropriate analytics into an engagement, maximizing the
value of a project, and transferring knowledge to the client. Conversely, EY is seen to
need significant improvement in how clients perceive its ability to integrate risk
awareness and solutions within other consulting engagements.
IBM
According to IDC analysis and buyer perception, IBM is an IDC MarketScape Leader
for business consulting for U.S. Smart Cities projects.
IBM is one of the largest multidisciplinary consulting firms, with more than 200,000
employees globally in its combined services business and serves clients in more than
450 locations across 170 countries. IBM provides consulting services across a wide
range of topics, functions, and industries. IBM has over 4,500 dedicated public sector
professionals and provides consulting services to state and local agencies and
organizations. IBM provides planning and management services for smarter public
safety, urban planning, and building management, along with agency administration
using social collaboration and cloud computing. IBM's infrastructure services help
improve local governments' transportation, water, and energy systems. IBM's humanservices help improve agency social programs, healthcare, and education.
In November 2012, IBM debuted a perspective that the world has been fundamentally
transformed by rampant availability of data. This shift has created profound changes in
how enterprises engage with customers, citizens, employees, and partners. IBM calls
this new agenda "Front Office Transformation" and states it has two fundamental parts:
The Digital Front Office: Rethinking of everything related to how people
connect, transact, and engage with institutions, governments, and companies —
and how they create and capture value
The Globally Integrated Enterprise: Transforming operations and infrastructure
to optimize resources, enabling and funding these new ways of engaging, and
becoming integrated, flexible, streamlined, and agile
IBM proposes that market-leading enterprises of the future will focus in both areas —
improving service through a digital transformation of customer interactions and
improved productivity through global integration. IBM believes that clients started on
this journey from one of three points — some started, for example, with a predictive
analytics or digital marketing project to address a specific business concern, others
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started with a modernization project to find efficiencies to fund front-office innovation,
and some have boldly taken on both approaches at the same time.
IBM's ability to help clients achieve this new agenda is supported by a comprehensive
IT consulting services and industry-specific IT and business solutions, like business
analytics and Big Data, social business, smarter commerce, IBM's Intelligent
Operations Center for Smarter Cities platform, and IBM's interactive, enterpriseapplication, and application management services. At the forefront of IBM's
capabilities for Front Office Transformation is its Strategy and Transformation
practice, which has dedicated consulting teams for both the "front-office digitization"
and the "globally integrated enterprise." Additionally, Strategy and Transformation has
five functional areas: customer value strategy, finance and risk, operations and supply
chain, technology strategy, and organization and people.
IBM Strategy and Transformation consultants bring IP-based assets and accelerators
to client engagements to deliver tangible benefits and provide an integrated,
collaborative, and systematic approach to accelerate transformations. Unifying market
offerings with both a technology and a business perspective does benefit clients,
particularly when clients are faced with technology-rooted operational changes.
For example, IBM's offerings for the Globally Integrated Enterprise are based on a
four-phased methodology — integrate, standardize, optimize, and elevate through
analytics — each with specific assets created and harvested from client
engagements.
Additionally, IBM will deploy its own internal functional experts from within IBM's
finance, supply chain, and other departments to work directly with clients to share
best practices from IBM's own transformation journey. These capabilities are often
delivered to clients through Business Value Accelerator solutions, three- to six-week
engagements that align the client's business and technology priorities.
Through its Front Office Transformation strategy, IBM has expanded capabilities in
areas that align with IBM's Smarter Cities growth priorities. The focus on Front Office
Transformation is rooted in the explosion of data and opportunity resulting from the
widespread adoption of technologies, like social business and analytics, by
individuals and the instrumentation of business that is reshaping the possibilities for
business innovation. In 2012, IBM trained 1,000+ management consulting partners on
these growth initiatives, and that program is expected to grow in 2013.
IBM has also made significant investments in collaboration, knowledge management,
and assets by deliberately creating a culture of knowledge sharing and collaboration
that rewards consultants that contribute and reuse knowledge.
IBM has been at the forefront of the rise of new mission customers as influential IT
decision makers. In 2012, IBM launched a systematic effort to accelerate
development of the marketing function as a core buyer of technology-enabled
solutions. IBM hosted a series of CFO, CMO, and CIO Leadership Exchanges, which
brought together hundreds of senior client leaders in the United States, Europe, and
Asia/Pacific to better understand the challenges and opportunities presented by the
digitization of front-office functions. IBM has also developed a series of priorities for
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leadership in the new connected era, underscored by IBM's own leadership who's
taken a personal role in publicly shaping their profession.
IBM GBS continues to engage senior business leaders through its C-suite thought
leadership developed by the IBM Institute for Business Value. In 2012, GBS
published the largest ever study of CEOs/government leaders, finding that the issue
they believe impacts their enterprises the most is no longer macroeconomic trends or talent or regulations — but technology trends and the enterprise's ability to adapt
quickly enough to capture a competitive advantage.
For business consulting overall, IBM is seen as the most capable of all firms across
several categories. Clients consider IBM the most capable of all firms at challenging
corporate culture, delivering value-creating innovation, and providing functional or
technical insights and competence. IBM is also seen as the most capable in its ability
to help clients expand into new markets or geographies, drive innovation through their
organizations, and improve their operational efficiency.
Strengths/Opportunit ies
In the U.S. Smart Cities sector, IBM is seen as better than many of its peers at
directly improving clients' overall mission performance, helping drive innovation
through an organization, helping enterprises create a more effective business,
integrating appropriate analytics into an engagement, and leveraging local and global
staff appropriately. IBM is also considered to be better than many of its peers at
integrating risk awareness and solutions within other consulting engagements,
maximizing the value of a project, providing industry insights and competence, and
offering the necessary spectrum of business consulting services. Conversely, IBM
should improve the perception of its ability to transfer knowledge to the client.
KPMG
According to IDC analysis and buyer perception, KPMG is an IDC MarketScape Major
Player for business consulting for U.S. Smart Cities projects.
KPMG is a global network of professional firms providing audit, tax, and advisory
services. The company operates in 156 countries and has more than 152,000 people
working in member firms around the world. The independent member firms of the
KPMG network are affiliated with KPMG International Cooperative ("KPMG
International"), a Swiss entity. KPMG's Advisory service areas include management
consulting, risk consulting, and transactions and restructuring.
KPMG firms focus on the needs of clients, assessing what they require to achieve
their objectives and then working across the globe to deploy the right skills and
experience to deliver consistent, measurable value. KPMG's network of firms brings
industry-specific solutions to address key client issues such as adapting to a
changing world, efficiency and cost management, customer growth, embedding
regulatory change, talent and human capital management, data, and insight and
technology. KPMG professionals can provide value to clients with a keen ability to
combine functional, operational, and technology consulting skills with deep
experience in audit, risk, regulatory, tax, and M&A issues.
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KPMG's State and Local practice's 1,400 professionals (across audit, tax, and
advisory) serve over 50% of the states, 60% of the largest cities, and 50% of the
counties in the United States, with particular expertise in the areas of finance and
accounting, transportation, health and human services, justice and security,
education, and public retirement systems.
KPMG assesses the needs of its state and local government clients by examiningthree main categories, namely:
Business and service strategies
Information technology enablers
Organizational enablers
Within each of these categories, KPMG has identified 20 electronic government
elements that can be rated in terms of five stages in a life cycle of maturity. This
framework demonstrates where state and local governments are in need of extending
their capabilities. The gaps in the "as-is" and "to-be" maturity assessment are thenused to assist clients in driving execution and transformation.
KPMG's Cities Global Center of Excellence is composed of a dedicated team that
brings together subject matter experts and industry professionals from around the
world to share leading practices, knowledge, and experience. The Cities Global COE
mission is to advise and support the sustainable development of cities and the
effective provision of city services. One of the key services offered to KPMG clients
through the Center is Information and Communication Technology (ICT) Innovation,
including support for Smart City initiatives.
KPMG's Cities Global COE uses an innovative Municipal Reference Model (MRM)
that was developed collaboratively by KPMG and numerous municipalities. MRMassists and guides the implementation of new municipal transformation solutions.
KPMG has demonstrated the use or application of the reference model on
approximately 60 engagements, ranging from initiatives looking to reorganize city
departments, to establishing a stronger governance framework, to developing Smart
City solutions. At the core of the MRM is the concept of a city service, such as
drinking water supply or garbage collection. One of the more progressive uses of the
MRM is its ability to assist in bundling services. A typical city, for example, can bundle
its services by several categories, including life-cycle stage (youth, adults, seniors),
target group (unemployed, property owners, homeless), life event (about to move, just
married, retiring), and needs (income, food, shelter). Service bundling for Cities
enables them to become more "client centric" by offering electronic services in a
manner that is more intuitive than traditional techniques.
For business consulting overall, KPMG is viewed as the most capable of all firms at
helping clients comply with regulations and at integrating risk awareness and
solutions within other consulting engagements.
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Strengths/Opportunit ies
In the U.S. Smart Cities sector, KPMG is seen as among the most capable firms at
directly improving a client's overall mission performance, helping enterprises create a
more effective business, and providing the necessary spectrum of business
consulting services. KPMG is perceived as better than many of its peers at helping
drive innovation through an organization, integrating appropriate analytics into anengagement, leveraging local and global staff appropriately, and maximizing the
value of a project. KPMG is also viewed as better than many of its peers at providing
industry insights and competence and at transferring knowledge to the client.
Conversely, KPMG should improve client perception of its ability to integrate risk
awareness and solutions within other consulting engagements.
McKinsey
According to IDC analysis and buyer perception, McKinsey & Co. is an IDC
MarketScape Major Player for business consulting for U.S. Smart Cities projects.
McKinsey is a globally recognized strategy consulting firm that was founded in 1926.
McKinsey provides a combination of strategic and operations management services
and has approximately 9,000 consultants in 90 offices across 51 countries. McKinsey
defines its seven core functional practices as business technology office, corporate
finance, marketing and sales, operations, organization, strategy, and risk. The firm
organizes by industry specializations across 19 industry areas. Recently, McKinsey
launched a special initiative dedicated to sustainability. Additional offerings include
solutions that cover a range of current issues that are also organized by function and
industry: global banking pools, climate desk, granular growth, and 16 others.
McKinsey is often recognized as a leader among strategy firms. However, it is the firm's
operations management consulting work that is growing as a result of client interest in
the implementation of "actionable strategy." McKinsey responded to this demand with
its recently launched McKinsey Solutions. This group of services is based on the firm's
most distinctive and "packageable" proprietary knowledge (i.e., services based on
proprietary databases, models, tools, and insights). These packaged services typically
include an online service delivery platform (software as a service), enabling clients to
make informed business decisions on a variety of topics in different functions (e.g.,
pricing), sectors (e.g., banking), and regions (e.g., China). This globally operating group
within the firm has a central hub in Europe (Brussels/Louvain-la-Neuve, Belgium) and a
rapidly increasing presence in North America and India.
McKinsey serves numerous clients in the banking and financial services sectors. The
financial services practice provides deep functional and regional expertise and
capabilities that address strategic needs for all types of financial service institutions,from small banks to large investment institutions. McKinsey's Branch Insights solution
area provides retail banks with an online platform to track and manage branch
performance, providing actionable change based on utilization metrics. Within its
functional areas of expertise, McKinsey remains relevant with thought leadership and
studies focused on cost cutting in the finance organization. For instance, McKinsey
draws comparisons between cost-reduction strategies and building appropriate
functional competencies in its May 2010 research titled Five Ways CFOs Can Make
Cost Cuts Stick.
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Through the McKinsey Center for Government (MCG), McKinsey brings external
experts together with its own practitioners to create a network for research,
collaboration, and innovation in government. Fusing both new and proven knowledge
and tools, MCG works with governments and agencies dealing with limited resources
to overcome challenges, build capabilities, continuously improve performance, and
deliver more to constituents, all in an environment of limited resources. McKinsey
believes that the execution issues in IT and infrastructure can be only partly solved by
employee training; what's perhaps even more essential is enabling a shift in mindsets
and behaviors. Additionally, overreliance on contractors can hamper the skills
agencies need to build in their organizations; therefore, McKinsey believes agencies
must learn how to work effectively with contractors, not be wholly dependent on them.
Governments need to excel in four areas, according to McKinsey: project
management, purchasing, process and customer service, and strategic planning. By
building strengths in those functions, governments can avoid the most common
stumbling blocks in IT, operations, and strategy.
One of McKinsey's areas of focus is regulation in the field of public protection, including
both regulatory and law enforcement agencies. As these organizations come under
increased scrutiny with regard to their ability to anticipate threats, balanced with
concerns about costs to tax payers and potential invasion of privacy, McKinsey believes
they must rethink core management functions — such as strategic planning, risk
management, performance management, and recruiting and hiring — to make better
decisions and improve cost effectiveness. In concert with these practice areas, KPMG is
studying in depth two areas critical to preserving public safety. The first area is
cybersecurity; securing cyberspace is of paramount importance to governments, yet
they have an insufficient understanding of the scale of the challenge. McKinsey believes
that attacks on government data and systems, critical national infrastructure, and private
enterprises' intellectual property carry the most risk, and the company has identified the
elements of a next-generation cyberdefense and is conducting ongoing research on the
primary threats that governments face as well as the various levers (such as taxstrategy or civil litigation) they can use to counter these threats. Second, the company is
researching connectivity with food and drug regulation in a global benchmarking and
knowledge-development effort that covers topics important to food and medical-
products regulators, such as inspection programs, the root causes of product recalls,
and approaches to managing drug shortages. In medical-products regulation, MCG
focuses on a number of specific issues, including enhancing human-subject protection
in clinical trials and improving the security of the supply chain.
With governments facing significant fiscal concerns, public finance is under intense
pressure to increase transparency and improve performance. McKinsey's work in
public finance addresses a broad array of issues, from examining macroeconomic
trends and performing expenditure analysis to assessing and quantifying risk,redesigning IT infrastructure, and exploring new methods of revenue generation.
Recent projects include developing a compliance and collections improvement
strategy for a national tax authority and helping a government lender streamline the
loan-approval process, yielding a 70% decrease in backlogs as well as an increase in
employee morale and customer satisfaction.
For business consulting overall, McKinsey is seen as among the most capable of all
firms at helping clients expand into new markets or geographies.
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Strengths/Opportunit ies
In the U.S. Smart Cities sector, McKinsey is seen as better than many of its peers at
integrating risk awareness and solutions within consulting engagements. In terms of
opportunities for advancement, McKinsey must significantly improve client perception
of its ability to deliver value-creating innovation, directly improve a client's overall
mission performance, help drive innovation through an organization, and helpenterprises create a more effective business. With regard to the assets its teams
bring to an engagement, McKinsey must significantly improve client perception of its
ability to integrate appropriate analytics, leverage local and global staff appropriately,
maximize the value of a project, and transfer knowledge to the client.
PricewaterhouseCoopers
According to IDC analysis and buyer perception, PricewaterhouseCoopers (PwC) is
an IDC MarketScape Leader for business consulting for U.S. Smart Cities projects.
PwC is a Big Four global professional services organization, established as a global
network of member firms, with more than 30,000 people in 77 locations across the
United States. PwC serves client organizations across all industry sectors andfunctional areas. PwC provides services through three divisions or "lines of service":assurance, tax, and advisory. From strategy through execution, PwC Advisory helps
clients build their next competitive advantage. Its Assurance practice collaborateswith clients so that the financial information they report to the investing public and
other stakeholders is clear and reliable. Through its Tax practice, PwC assistsbusinesses, individuals, and organizations with tax strategy, planning, andcompliance, while also delivering a wide range of business advisory services.
PwC's Center for State and Local Government is organized within the Public Sector
Practice. Nearly 10,000 PwC partners and staff around the world are servinggovernment and public services clients.
PwC's vision for its State and Local Government Practice is to "help state and localgovernments connect citizens to government, plan and drive investments, and increaseefficiency to promote long-term economic, environmental, social, and culturalprosperity." Within the execution of this strategy, PwC focuses its service offerings onthe trends that impact all levels of state and local government around the nation:
Economic development focuses on driving action to promote economic growth
and sustainable development, generate employment opportunities, and realizesustained economic development.
Sustainability focuses on promoting sustainability, integrating sustainable
development concepts into broader operations, and realizing cost efficiency andshort-term and long-term benefits from sustainability initiatives.
Health focuses on understanding changing demographics, innovation in care
and management, cost pressures, and legislative change and managing care for millions of citizens, including paying, providing, measuring, and regulatinghealthcare through regulatory and policy analysis, business processreengineering, health IT systems design, and strategic program management.
Utilities focuses on strategy, planning, and implementation advice to utilities that
receive public funds, including large power, water, and energy companies.
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Transportation focuses on working collaboratively to rethink service delivery
models, plan for future investments, and deliver on the promise of technology
and innovation through strategy, analytical, and program management services,as well as specific support in key areas such as transportation payments, asset
management, customer engagement, capital improvements, technologymanagement, and operational efficiency.
Fiscal management focuses on wide-reaching financial implications of state and
local government decision making, including expenditure analysis, revenueanalysis, investment optimization, sourcing strategies, and public/privatepartnership structuring.
Program management focuses on a strategic approach to managing projects
across agencies and organizations, program management, project management,quality assurance, vendor management, procurement management, andprogram management competency design.
Technology focuses on how to get the most of technology assets, ensureorganizational and technology goals are aligned, plan for future technology
investments, address enterprise architecture planning needs, develop focusedtechnology strategies, conduct transparent technology selections, execute
technology organizational improvements, deliver technology projectssuccessfully, evaluate information security, and ensure business continuitymanagement.
Operations and organization focuses on efficient operations, aligningoperations with organizational goals and executing on operational improvements
through supply chain optimization, customer contact operations, maintenance,asset management, payment processing, and administrative functions.
Additionally, it focuses on understanding staff ing needs to design more effectiveorganizations and to manage organizational change, as well as specializedshared services, talent management, and compensation planning services.
Strategy focuses on organizational mission, vision, and high-level goals and
translates these into tangible strategic plans and specific actions throughexecutive working sessions, extensive benchmarking, organizational analysis,
and performance management to build strategies, plan for execution, andevaluate progress.
Through a continually evolving project created for cities, their leaders, businesses,
and citizens seeking to improve their economies and quality of life, PwC developed
the comprehensive study, Cities of Opportunity, which provides a framework for
thought and action among the world's and the United States' most significant cities.
The latest fifth edition includes analysis of 27 cities that exemplify a key capital
market center, represent a broad geographic sampling, and comprise both mature
and emerging economies.
For business consulting overall, PricewaterhouseCoopers is seen as most capable of
all firms at helping clients reduce costs and at leveraging local and global staff
appropriately.
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Strengths/Opportunit ies
In the U.S. Smart Cities sector, PwC is seen as most capable of all firms at
integrating risk awareness and solutions within other consulting engagements and at
providing the necessary spectrum of business consulting services. Additionally, PwC
is considered to be among the most capable at helping drive innovation through an
organization, leveraging local and global staff appropriately, maximizing the value of aproject, and providing industry insights and competence. PwC is perceived to be
better than many of its peers at directly improving clients' overall mission
performance, helping enterprises create a more effective business, integrating
appropriate analytics into an engagement, and transferring knowledge to the client.
E S S E N T I A L G U I D A N C E
G u i d a n c e f o r B u y e r s o f C o n s u l t i n g S e r v i c e s
f o r U . S . S m a r t C i t i e s P r o j e c t s
Business requirements demand solutions that work holistically within an enterprise.These solutions are often complex and require a multiple domains of expertise and
stakeholders from a variety of areas to ensure success. As a result, consulting projects
are often complex. To maximize value and minimize disruption enterprise leaders must:
Assure project is strategically valuable to assure full organizational commitment
to change.
Create visible links between project strategy and "mission execution."
Integrate all impacted departments/LOBs throughout the project to ensure
stakeholder needs are fully satisfied.
Anticipate and address the common obstacles to successful consulting projects.
Avoid scope creep.
Plan for sufficient organizational change.
Commit sufficient internal resources to the project.
As Smart City projects often have a transformational component, it is also important
that city buyers begin to explicitly state the need for innovative solutions or ideas in
RFPs and throughout the procurement process. Cities often complain that consulting
firms do not bring innovation into the process as they would in private sector
accounts; this may be true, but part of the onus for this is on city buyers themselves.With procurement processes that are highly specific and often with rigid paperwork
requirements, cities must ensure that innovation and transformation are integrated in
to Smart City project requirements.
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L E A R N M O R E
R e l a t e d R e s e a r c h
IDC MarketScape: EMEA Business Consulting Services 2013 Vendor Analysis
(IDC #239504, February 2013)
IDC MarketScape: Worldwide Business Consulting Services 2013 Vendor
Analysis (IDC #239484, February 2013)
IDC MarketScape: Americas Business Consulting Services 2013 Vendor
Analysis (IDC #239482, February 2013)
IDC MarketScape: Asia/Pacific Business Consulting Services 2013 Vendor
Analysis (IDC #239483, February 2013)
IDC MarketScape: Worldwide Financial Services Consulting 2012 Vendor
Analysis (IDC #236018, July 2012)
IDC MarketScape: Worldwide Strategy Consulting Services 2012 Vendor
Analysis (IDC #236019, July 2012)
IDC MarketScape: Worldwide Operations Consulting Services 2012 Vendor
Analysis (IDC #236022, July 2012)
IDC MarketScape: Worldwide Finance and Accounting Consulting Services 2012
Vendor Analysis (IDC #236122, July 2012)
S y n o p s i s
This IDC study uses the IDC MarketScape model to provide an assessment of anumber of providers participating in the U.S. business consulting services for Smart
Cities market. The IDC MarketScape is an evaluation based on a comprehensive
framework and a set of parameters that assesses providers relative to one another
and to those factors expected to be most conducive to success in a given market
during both the short term and the long term.
"While consulting providers are generally perceived as capable, buyers of consulting
services believe consulting vendors sometimes fail to meet their projected return on
investment. This vendor analysis shows that some vendors are better able to produce
meaningful results than others." — Cushing Anderson, vice president, Business
Consulting Services research
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C o p y r i g h t N o t i c e
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