Insights

Find out more about recent surveys by Porsche Consulting

Digital transformation, and with it the automation of tasks and entire business processes, is one of the crucial levers to become a high performance organization. Organizations are increasingly able to reallocate resources from standard, often routine tasks to those with high human value-add and higher strategic relevance. Repetitive tasks can be successfully automated to a large degree across all supporting functions of an enterprise, from IT operations and procurement to finance, human resources and legal. The results are impressive with efficiency gains ranging from 20 up to 60 percent. From a technological point of view, the time to embark on this journey is now. The new Porsche Consulting report explores the value that can be achieved through technology-enabled automation in major corporate supporting functions, highlights top use cases and best practice examples, and suggests how companies should start their transformation journey towards a self-driving enterprise to overcome typical roadblocks.

In the midst of a constantly changing environment, the capability for transformation is the key to success to become a high performance enterprise with outstanding results: today and in the future. Disruptive technologies that challenge the status quo, emerging markets that represent further potential for growth, new entrants who stir up competition and drive continuous improvements, and economic forces such as growing regulatory pressures force companies to continuous adaption. No transformation—no success. What differentiates successful transformations from those that fail? To find answers, Porsche Consulting evaluated more than 150 companies that rank top in their class (e.g., stock value) from which twenty got selected that have successfully undergone an outstanding corporate transformation and achieved sustainable high performance.

The pharma industry is currently undergoing a major transformation. Digitalization leads to substantial changes of companies and products at an ever-faster pace. New competitors originating from the tech industry as well as intensified cost pressure characterize the market nowadays. Top managers, strategists and digitalization managers, especially within the global pharma corporations, are preparing for the transformation. Operations related functions such as production, maintenance, supply chain management and quality are becoming essential to fulfill the increasingly sophisticated customer and patient needs. This requires not only highly effective structures and processes but also innovative leadership approaches. The new Porsche Consulting strategy paper “A strategic view on pharma operations” shows the way to go.

The pressure to be innovative is continuing to increase in corporations. There is a need to optimally exploit the potential that employees offer. The working atmosphere plays a key role. The physical, social, and digital environment has a huge impact on how agile and effective the cooperation between employees is. This study by Porsche Consulting describes what a working atmosphere that promotes effective employee practices as well as innovation can look like. Furthermore, it also presents “Nudge Management” as an innovative approach to fast-track implementation. It is particularly suitable for introducing “New Work” right across a corporation within a short period of time.

The MedTech industry has experienced impressive growth over the last decade. The vast majority of Medtech companies are valued globally, as their products meet the highest individual patient demands in terms of innovativeness, functionality, quality, and reliability. And the MedTech industry has also been able to strengthen its market position despite globalization trends in general. Even forecasts find that the value of the worldwide Medtech market will reach $520 billion by 2022 (CAGR of 5.1%). This success is not set in stone for all companies of the MedTech sector. Porsche Consulting sees healthcare at a crossroads, perceiving strongly disruptive forces driven by market, technology, and regulation. Now is the time for a major transformation to shape the future of the MedTech sector.

Almost every company is now facing a transformation. Digitalization and innovations are rapidly changing businesses: Traditional industry borders are disappearing, new competitors are appearing and attacking by disruptive business models. This leaves established companies little response time. Acting fast, skillfully and creatively is necessary – especially when faced with an uncertain future. Well-positioned companies counter with a high performance organization. Porsche Consulting supports management in the introduction and implementation. “We have developed five maxims, which give top managers the necessary focus. At the same time, these guiding principles pave the way for a strategically aligned transformation, in which all employees will be able to take part”, says Dr. Roman Hipp, Partner in the management consultancy Porsche Consulting. Hipp emphasizes strict customer centricity, more decentralized decision-making competencies, and collaboration. How companies with five maxims become high performers is demonstrated by the new Porsche Consulting strategy paper.

The new study “The Future of Vertical Mobility” from the Porsche Consulting management consultancy provides a thorough and wide-ranging analysis of the feasibility of vertical mobility.

Download: study “The Future of Vertical Mobility”

Disruptive business models, tech giants such as Google entering the market, and new innovative services are fundamentally changing the competitive environment within the MedTech industry. Established players are being forced to reconsider their way of doing business. Operations need to be adjusted in a way to prepare for the imminent revolution. While gross margin—a useful indicator of operational performance—is comparatively high within the MedTech business, production operations lack, for instance, the required dynamic to quickly respond to shifting market conditions. Since 2012, the leading MedTech companies have incrementally increased their gross margin by only 0.2 percent per year. Stagnation. The Porsche Consulting 12+1-step approach is designed to give MedTech firms guidance on how they can benefit from transformation.

Porsche Consulting surveyed 50 machinery companies from Germany, Italy and Switzerland as part of a new study on the digital transformation. The findings: two years ago, the focus of digital transformation in machinery was still being directed at efficiency gains. This has since been supplanted by a focus on the growth opportunities being created by new digital products and digital services, as well as the changes to customer relationships in multi-channel markets and customer service. Although two-thirds of the companies surveyed said they would undertake digital activities geared toward growth, efficiency and the customer experience, 88 per cent have become, and will remain, stuck by the time they reach the pilot phase. Company-wide implementation is a rarity.

In the study entitled “Digital Machinery Decoded”, management consultants at Porsche Consulting analyzed how companies can capitalize on the potential of the Industrial Internet of Things more holistically and more sustainably. They also examined how machinery engineers can improve their customer relationships by means of e-commerce and new methods of interaction, while simultaneously stimulating their after-sales business. The Porsche consultants highlight how companies can shape their digital transformation, and achieve digital success more quickly.

Germans would not be averse to being operated on by a robot. They would find it especially easy to opt for a machine if it lowered the procedure’s risk of error. They would also accept an automated caregiver, especially if it could compensate for shortages in caregiving personnel or enable them to stay at home as they age instead of moving to a care facility. These are the results of a recent survey from Porsche Consulting of 1,000 people in Germany.

Leading physicians at German hospitals see significant possibilities for improving patient management. Especially by intelligently coordinating different processes. Treatment quality itself is at a high level. These are the results of a recent survey by Porsche Consulting of 154 leading orthopedists and emergency room physicians at hospitals throughout Germany.

Domestic flights in Germany are comparatively low-priced. But only a small minority of domestic air travelers are resolute bargain hunters. Just 13 of 100 passengers would set their maximum price for a short flight (round trip) at 80 euros. That is one result of a recent representative survey from the Porsche Consulting management consultancy. Eighty euros represent roughly the lowest price that airlines offer in special deals. Most of these flights must be booked far in advance and do not include customer-friendly cancellation policies. Twenty-five percent of travelers would accept a ticket price of 100 euros. Nearly half (45%) are prepared to spend considerably more than 100 euros per ticket. Twenty-six percent set their upper limit at 150 euros. Twelve percent would go up to 200 euros. And seven percent would even spend more than 200 euros.

Will my future co-workers be robots? Will computerized machines be handling complex tasks that could previously only be done by humans? Some employees are still doubtful and uneasy about the future, often due to insufficient information. One in four employees in Germany would prefer that their jobs not be affected by digitization.

Home buyers lament problems and delays

Persistently low interest rates are prompting ever more people in Germany to build homes or buy real estate. The high level of demand has its drawbacks, however. Half of Germans who have built or purchased a new home over the past five years complain about problems and delays at the construction site: a representative survey by Porsche Consulting has shown that one in five projects is not completed on time.

When buying clothes, Germans prefer in-store to online

Only about ten percent of Germans buy their clothing primarily online. That is the result of a recent representative consumer analysis commissioned by Porsche Consulting. Customers are evidently much more satisfied at retail shops than on websites: only nine percent of in-store customers “sometimes” regret their clothing purchases. By contrast, 40 percent of online customers regret their orders or send the items back right after unpacking them. Online merchants are confronted with a flood of exchanges and returns: costly return rates not infrequently exceed 20 percent.

The aviation industry can save up to 1.6 billion US dollars a year

Passenger levels are increasing by five percent annually worldwide, and global demand is doubling every 15 years. To meet this demand, thirty thousand new airplanes will have to be built by the year 2030. But it has become a major challenge to fill aircraft orders on time. For new model ranges, delays can even extend for years, in part because components are not always available on schedule. To analyze the causes of these delays, Porsche Consulting launched a survey of top managers at aircraft manufacturers, suppliers, and logistics providers. The result: all the partners in the supply chain need to change their approach and become more efficient by means of overall systematic planning and closer supplier integration.

The pharmaceutical industry seeks to increase efficiency by 20 percent via operational excellence

Ever more pharmaceutical companies are using a highly effective means to combat rising cost pressure: operational excellence. This is the result of a study by the management consultancy company Porsche Consulting, based on a survey of the top 20 pharmaceutical research and production companies in Europe and the USA. Whereas 56 percent of the companies surveyed are initially applying operational excellence only at selected sites, one third is already pursuing it at all their plants. Eleven percent of the producers are still in the pilot stage. Three quarters of those surveyed hope to raise their productivity via operational excellence by as much as ten percent, and one quarter seeks to become up to 20 percent more productive.