The consulting industry is on the brink of disruption. Traditional consulting models, largely unchanged for over a century, are facing challenges from increasing client sophistication and advanced technologies. Clients, now well-versed in business strategy, are demanding more than just advice; they want tangible results.
Technological advancements, such as big data analytics and artificial intelligence, are also reshaping the industry. These tools allow for more precise, evidence-based solutions, reducing the reliance on the consultant’s intuition.
New market entrants are exploiting these changes, offering innovative, results-based approaches that contrast with the traditional time and materials model. These newcomers are more agile, leveraging technology to deliver faster, more cost-effective solutions.
Despite this, many established consultancies remain complacent, underestimating the threat posed by these disruptors. This complacency, combined with a failure to adapt, could see them lose significant market share.
The future of consulting will likely see a shift towards more specialised firms, offering deep expertise in specific sectors or business functions. This specialisation, coupled with technological advancements, will enable these firms to deliver high-value, evidence-based solutions.
Ultimately, the consulting industry is facing a period of unprecedented change. To survive, firms must adapt, embracing technology and shifting away from traditional consulting models.
Go to source article: http://hbr.org/2013/10/consulting-on-the-cusp-of-disruption/ar/pr