Top 4 Challenges for Management Consulting Firms in 2019
According to the data published by the Hindustan Times, management consulting segment contributes approximately $1.5 billion to the overall revenue of the business consulting industry. Today this sector is facing a host of business challenges that needs them to adapt to the changing scenario. The forces contributing to the issues confronted by the management consulting firms include digital transformation, the unpredictability of the market, increased competition and more. As a firm specializing in business consulting services, we, CerveauSys Strategic, understand the ups and downs of our industry and feel the need to combat the upcoming challenges by actually understanding the root causes.
Here we are going to address some of the major challenges that Management Consulting firms are facing :
- Increased competition: According to one of the research reports on management consulting firms the majority of the respondents confessed that it was the tough market competition that posed a real threat to their businesses. These challenges came from new firms as well as established and growing firms. So, the firms that are new players with no established footprint in the market and no disruptive business model at the place, are likely to struggle for attaining a competitive edge. The business management consulting firms offering strategic human resource management are also dealing with the crowdsourcing concept that is emerging owing to the changing technology and ever-competitive clients.
- Digital Transformation: off late there has been a tremendous change in the way the businesses operate which can be accredited to the automation and digital transformation. Today every field from healthcare to telecommunication is highly impacted by the continuously changing technologies. While start-up firms are introducing digital and innovative ways to woo their clients, established businesses are switching to AI, machine learning, robotics, etc to bring in agility in their work culture. The management consulting firm also needs to adapt to the disruptive trend and use technologies and training as an aid to help their workforce to offer smarter and advanced solutions to the clients.
- Volatility of the Market: There is greater unpredictability prevailing in the market today. With the advent of the internet, the market place has turned into a wide-open battlefield for competing firms. Acquisitions and mergers are taking place rampantly, affecting the entire landscape. New firms are coming up with different business models, offering the market with something unique and dynamic. All these are occurring at an unnerving frequency. The evolving scenario is expected to continue and hence, adaptability is the keyword for survival and success for any business including consulting firms.
- Downward Price Trend: Growing competitions, commoditization, globalization and automation have resulted in lower price pressure on service industries. The changing trends, however, can also be turned into opportunities. For instance, by leveraging the power of marketing automation and artificial intelligence, service businesses can improve their expert insights and offer more efficient services. But the major issue here is to get adapted to the new technologies. Most management consulting firms struggle to induce the required skill in their firm. This can be solved through training programs and hiring of new talent with the best skill set.
Transformations and innovations will continue to sway the market and pose new challenges. Survival of the fittest will rule.
CerveauSys Strategic is one of the leading business consulting firms that have been making strides in the management consulting industry. Our well-drawn programs and services of business management consultants have helped many business clients to improve their organizational strengths and productivity. We believe in finding opportunities in challenges. We strive to tide over critical issues and work towards achieving excellence!