Top Ten Technology Consultancies - BCG
Boston Consulting Group (BCG) is an American management consulting firm founded in 1963. BCG is one of the three biggest employers in management consulting, known as MBB or the Big Three. The firm was founded by Bruce Henderson in 1963 as part of The Boston Safe Deposit and Trust Company. Henderson had previously been employed at Arthur D. Little. In 1973, Bill Bain and others left BCG to form Bain & Company. In 1974, Henderson arranged an employee stock ownership plan so that the employees could make the company independent from The Boston Safe Deposit and Trust Company. The buyout of all shares was completed in 1979. As part of the federal government's auto bailout program, Boston Consulting Group was paid as much as $7 million to advise General Motors and Chrysler to help costs and overhaul operations.
When it comes to the digital transformation of business, the future is now. Companies across the economy are using digital technologies and advanced analytics to unlock new sources of economic value and achieve step-function improvements in productivity, flexibility, and speed. DigitalBCG Immersion Centers take clients beyond a traditional experience. They allow you to see firsthand how digital will impact your company and your strategy—and the changes you will confront along the way. Companies can’t create digital value in a vacuum. BCG helps companies own the digital future through the coordinated collaboration of agile, cross-functional teams. BCG is grounded in insight, empowered by technology, and armed with an impetus for action. Every company must embrace its digital future. But how it plays out will vary widely depending on the specific sector of the economy. BCG combines in-depth industry expertise with a deep understanding of the disruptive potential of the latest technologies.
BCG in the technology sector:
How can technology companies thrive in an increasingly instrumented, intelligent, and instant market? Incumbents face the challenges of agile transformation and the threat of disruption. Startups face long odds for achieving significant market share. Successful companies innovate in continuous-release software development, omnichannel customer engagement, and flexible supply chains. They also strengthen core disciplines such as capital allocation, productivity, and pricing. These trends determine who wins—and who gets left behind. New technologies are reaching market penetration in a fraction of the time it took older technologies to do the same. Disruptors are capitalizing on existing infrastructure and leaping ahead in market share. Consumers are demanding faster connectivity, greater interoperability, and ever more innovative products and solutions. To survive, companies have to rethink how they do business. Many companies in the technology sector are taking advantage of the changes in the market by enhancing their capabilities. They are becoming more sophisticated in their approach to capital markets, in developing deep consumer insight, in building software capabilities and in developing pricing strategies. BCG is helping many digital devices, software, and IT services companies via our proven concepts and frameworks.
BCG and COVID-19:
As the business impact of the COVID-19 crisis mounts, leaders in every industry are moving urgently to protect employees and build resilience. Governments are mobilizing to safeguard citizens and manage economic fallout. Immediate action is critical, but leaders must also embrace a new agenda—one aimed squarely at what comes next. Now more than ever, business and government have a crucial role to play in protecting people’s health, bolstering the economy, and developing both practical solutions and game-changing innovations. At BCG, they are working with companies and public-sector organizations around the world to manage the impact of the coronavirus, with actions ranging from rapid responses to more fundamental, strategic shifts. They are also helping leaders look much further ahead and envision how the crisis will continue to affect the competitive environment and what society will need in the coming months and years.
Find out more about BCG here.
China Takes Additional Step to Control Big Tech’s Data
China’s new Data Security Law will take effect on September 1st, allowing the government major control over the collection, use, and transmission of data. Tech companies have grown exponentially in terms of market size and overall power, and the Chinese government has no interest in alternative power hubs—especially those that belong to private enterprise.
With its Thursday legislation, companies will face extravagant fines if they export data outside of China without authorisation. The Chinese government claims that this will create a legal framework and help companies from taking advantage of citizens, but according to analyst Ryan Fedasiuk from Georgetown University’s Centre for Security and Emerging Technology, “China’s push for data privacy...is yet another move to strengthen the role of the government and the party vis-à-vis tech companies.”
How Do Other Countries Approach Data Privacy?
- Europe: The EU Charter of Fundamental Rights assures EU citizens the right to data protection. The bloc’s General Data Protection Regulation (GDPR), passed in May of 2018, put stringent restrictions on commercial data collection.
- Canada: 28 federal, provincial, and territorial laws govern consumer data privacy; DLA Piper ranks the country’s data protection legislation as heavy, in comparison to Russia (medium) and India (limited).
- The United States: As usual, the States doesn’t have a single comprehensive federal law for data privacy. Instead, its lawmakers have passed hundreds of local and state acts, many of which are seen by the Federal Trade Commission (FTC).
China, in contrast, thinks data should be a national asset and has written data collection into its five-year plan. Although its new legislation will help curtail private access to consumer data, the government may be the final beneficiary.
What Will China Do With the Data?
According to advisors, consumer data can mitigate financial crises and viral outbreaks. It can protect the interest of national security—no surprise—and help the government with criminal surveillance. Right now, Chinese regulators have summoned 13 major tech firms, including Tencent, JD.com, Meituan, and ByteDance, to meet with China’s central bank. Communist Party Chief President Xi Jinping can shut down any companies found violating the new privacy laws, as well as hit them with a fine of up to 10 million yuan—US$1.6mn.
How Will Laws Affect Foreign Firms?
Now, foreign firms must store data on Chinese soil, a practice that many companies protest will infringe on their proprietary data. So far, Tesla will comply: in late May, the electric car manufacturer promised to build more Chinese factories and keep the resulting information within Chinese borders. In fact, businesses hoping to start China-based businesses—such as Citigroup and BlackRock—will have to comply with the “data-localisation laws”.
The Chinese government has framed data as a critical source of intelligence for the party and central government. “You have the most sufficient data, then you can make the most objective and accurate analyses”, Mr Xi told Tencent’s founder, Mr Ma. “The...suggestions to the government in this regard are very valuable”.
Greater digital control is coming, that’s for sure. Mr Xi has named big data as an essential part of China’s economy, right up there with land and labour. “Whoever controls data will have the initiative”.