TMT

SME 2.0

Social Media Readiness and Usage Potential

New goetzpartners study emphasises the potential of social media for SMEs. The enormous potential of social media is going largely untapped among small and medium-sized enterprises – unlike in large businesses. The average usage rate across various social media is a mere 36%, even though social media actually offer a great many usage possibili-ties along the entire value chain of an SME’s Business. more

New goetzpartners study emphasises the potential of social media for SMEs. The enormous potential of social media is going largely untapped among small and medium-sized enterprises – unlike in large businesses. The average usage rate across various social media is a mere 36%, even though social media actually offer a great many usage possibilities along the entire value chain of an SME’s business. This is a finding of the recently published goetzpartners study, “SME 2.0 – Social Media Readiness and Usage Potential”. The study concluded that SMEs could take advantage of numerous opportunities presented by social media to optimise their business: significantly reducing marketing costs, increasing their innovative potential and improving customer satisfaction being just some of the possibilities.

Study findings in brief:

According to the study, the lack of guidance concerning SME-specific social media strategies is the reason for the very cautious approach to the use of social media among many such companies at present. But there are increasing signs that small and medium-sized businesses may be joining the ranks of those willing to engage with the topic of social media and to make investments in that area.

The goetzpartners study offers recommendations for how SMEs can tap the potential of social media. A four-step social media readiness model that takes account of the specific characteristics of smaller businesses can be applied to analyse a company’s individual status quo and social media compatibility. This “Social Media Readiness Check” forms the basis for social media value chain mapping and can help companies to devise a strategy map for how they are going to tap the potential of social media in the future.

The study can be ordered free-of-charge here.

 
Financial Institutions

Crowdbanking

The revolution in the banking world between now and 2020. The consequences of social media for the financial services industry

German banks out of touch on social media. A new report by goetzpartners reveals that 28 percent of German bank customers wish their banks were more strongly represented on Facebook, Twitter and co. German banks have so far failed to make adequate use of social media. As a result they could in future lose up to 40 percent of their customers who are active social media users. more

German banks out of touch on social media. A new report by goetzpartners reveals that 28 percent of German bank customers wish their banks were more strongly represented on Facebook, Twitter and co. German banks have so far failed to make adequate use of social media. As a result they could in future lose up to 40 percent of their customers who are active social media users.

Social media are nowadays an important factor for bank customers. The results of the latest goetzpartners investigation clearly make the point: An overall 12 percent of all customers would already be interested in purchasing bank products via social media. 39 percent recommend banks and bank products via social networks such as Facebook, Twitter and co. 43 percent trust recommendations received via their network. And among the real digital natives these figures are more than twice as high.

Bank customers have quite specific ideas about what to expect from their bank: the current state of their own finances, personal dialog, and the opportunity to recommend and evaluate products, services and bank advisers. But 50 percent of bank customers surveyed are not satisfied with their opportunities to participate in product development.

The study can be ordered free-of-charge here.

 
Strategy & Growth

goetzpartners CFO Pulse Check

A Finance Organisation for the Champions League

'No news is good news', is what was frequently said about finance areas in the past. But like the football squad player number with the 6, CFOs have also changed: they're no longer just engaged in defensive activities such as "country-specific financial accounting", "securing liquidity" and "reporting". more

'No news is good news', is what was frequently said about finance areas in the past. But like the football squad player number with the 6, CFOs have also changed: they're no longer just engaged in defensive activities such as "country-specific financial accounting", "securing liquidity" and "reporting". Instead, they are also actively structuring businesses today. Modern CFOs are now business partners and play critical roles in corporate success.

National League or Champions League?

More than 100 companies from 8 sectors were compared in goetzpartners' recently-published study entitled CFO Pulse Check 2013. The result: most CFO organizations put in a solid performance on average. There are only a few that merely reach county division level. By and large, most CFO organizations are playing national league level. Only a very few, however, are already fit enough for the Champions League.

Five recommendations for the CFO

The goetzpartners Pulse Check shows how finance areas can reach this champion level. Five recommendations are derived from the analysis. Data processing and IT, for example, hold major optimization potential: central data management is conspicuous by absence at 40 percent of the CFO organizations surveyed, while only 4 percent of large-scale organizations (> EUR 3 billion sales) utilize automated reports to report continuously and transparently to top management. Champions, by contrast, have implemented strong and clear sovereignty over data and processes.

The goetzpartners CFO study provides the complete results, a comparison of various sectors, as well as detailed recommendations.

The study can be ordered free-of-charge here.

 
Sales & Operations

Cut-price innovation?

goetzpartners GEAR study (General Enhancements for Automotive Supplier Relationships)

Cars “made in Germany” are a byword for German engineering skills and cutting edge automotive design. However, Germany’s manufacturers are putting their reputation at risk as they increasingly concentrate on short-term margins at the expense of revolutionary technology and genuine innovation. more

Cars “made in Germany” are a byword for German engineering skills and cutting edge automotive design. However, Germany’s manufacturers are putting their reputation at risk as they increasingly concentrate on short-term margins at the expense of revolutionary technology and genuine innovation. One cause lies in the frequent failure to call on the wealth of experience gained by suppliers as they contend with changing requirements and processes.

The GEAR study (General Enhancements in Automotive Supplier Relationships) undertaken by corporate consultants goetzpartners provides the first hard evidence of a trend already noted by many market participants. Chief among the suppliers’ criticisms are for example:

Suppliers’ experience is frequently ignored in new developments

A total of 43 percent of those surveyed believe that their experience could be more strongly integrated into new and next-stage developments, while 4 percent even commented that their experience typically plays no part at all.

Suppliers are integrated into projects too late in the projects

By the time suppliers are integrated into manufacturers projects, it is often too late. Almost one third (29 percent) of the suppliers who were surveyed consider themselves to be rarely, if ever integrated into manufacturers’ projects in good time. And yet, this is the only way in which their experience can be brought to bear early enough to accelerate the discovery process.

The study can be ordered free-of-charge here.

 
Financial Institutions

Black Box "Financial Supply Chain Management"

Which software solutions optimise financial management in companies’ CFO departments now and in the future – an international market appraisal

Across various countries and industries, goetzpartners interviewed 300 users of software solutions in all areas of financial supply chain management. In all key functional areas of financial supply chain management self-developed solutions dominate the solution landscape – except for automatic cash allocation management. more

Across various countries and industries, goetzpartners interviewed 300 users of software solutions in all areas of financial supply chain management. In all key functional areas of financial supply chain management self-developed solutions dominate the solution landscape – except for automatic cash allocation management.

Present solution landscape:

  • The key functional areas of software solutions in companies’ CFO departments are automatic cash allocation management, cash & liquidity management, treasury management, invoice management as well as payment management
  • Standard ERP software solutions are dominant only for automatic cash allocation management, while in all other areas mainly self-developed and rarely customised solutions are commonly used
  • Users of SAP systems work notably more frequently with standard software then non-SAP users (e.g. Oracle, Microsoft)
  • Across all functional areas, there is only partial satisfaction with how the present solution landscapes conform with business requirements – an assessment of the ability to consolidate decision-relevant information in the management information system (MIS) also revealed room for improvement

The study can be ordered free-of-charge here. 

 
TMT

Connected Home

On the way to the mass market?

German households are increasingly networked. Technologies from the Connected Home area make life easier for users with smart networking. Today the interest of the population in these topics is already very high at 57 per cent, but must still be transformed more strongly into willingness to purchase. more

German households are increasingly networked. Technologies from the Connected Home area make life easier for users with smart networking. Today the interest of the population in these topics is already very high at 57 per cent, but must still be transformed more strongly into willingness to purchase.

"Is the Connected Home on the way to conquer the mass market?" our current study asks. And the result is: the chances look good and are promising for those in the market, while there are still many challenges to be overcome on the way there. Today, over 90 percent of end consumers still do not use any Connected Home products or networks. The single exception is the networking of a TV with a PC or laptop, which 28% of the respondents have already established.

In the study we examine both the development of the market and usage, as well as how individual market participants (suppliers of brown and white goods, domestic automation, energy management systems, wholesalers and retailers, etc.) stand today, and which market-specific success factors must be fulfilled in order to make the most of the market opportunities.

The study can be ordered free-of-charge here.

 

Through integrating their supply chains into product development processes, manufac-turers can benefit from significant improvements in quality, cost-efficiency, product launch times, and relationships with their suppliers - as numerous analyses and studies have shown. Most manufacturers fail to differentiate between different sectors, however, leading to imprecise – and frequently even erroneous – conclusions. more

Through integrating their supply chains into product development processes, manufacturers can benefit from significant improvements in quality, cost-efficiency, product launch times, and relationships with their suppliers - as numerous analyses and studies have shown. Most manufacturers fail to differentiate between different sectors, however, leading to imprecise – and frequently even erroneous – conclusions. The appropriate model for a food manufacturing company, which rarely changes its product range, can fail to deliver the same benefits for an entertainment electronics producer with short innovation cycles, since these two sectors' processes differ fundamentally.

In a recent study of sector leaders in Germany, Austria, the United Kingdom, Russia and Australia, goetzpartners shows that a clear differentiation between industrial sectors makes it possible to define when the supply chain should be integrated into the product development process, and what tasks it should assume. Only in this way can development costs and development times be reduced.

 
Sales & Operations

Indirect Procurement Benchmarking Study

goetzpartners' view on world-class indirect procurement

For indirect procurement, an integrated approach is required that takes into account unit cost savings, transaction cost savings and demand management as contributions to company success. Seven large European corporations with cumulative annual indirect procurement volume of €17 bn participated in the benchmarking study. more

For indirect procurement, an integrated approach is required that takes into account unit cost savings, transaction cost savings and demand management as contributions to company success.

  • Seven large European corporations with cumulative annual indirect procurement volume of €17 bn participated in the benchmarking study
  • Mature organizations handle unit costs, transaction costs and demand in order to generate bottom-line savings
  • Most indirect procurement initiatives are related to transaction costs, while generation of unit cost savings has become a routine task, and importance of demand management is increasing
  • Key success factor for reduction of unit costs is the implementation of a consistent strategy on category level
  • Indirect procurement departments focus on process automation (IT), outsourcing activities (internal and external) and process standardization to optimize transaction costs
  • Management of indirect procurement demand is not the focus of indirect procurement functions today

The study can be ordered free-of-charge here.

 
Strategy & Growth

Successful post merger integration

The roles and impact of external consultants

With a constantly growing M&A-market in Germany business integration becomes a major topic on the management agenda again. In the course of this development goetzpartners has asked European managers with PMI experience about the relevant factors and the role of consultants in a successful integration process. more

With a constantly growing M&A-market in Germany business integration becomes a major topic on the management agenda again. In the course of this development goetzpartners has asked European managers with PMI experience about the relevant factors and the role of consultants in a successful integration process.

The result: Depending on the phase the transaction process is going through, the role of a consultant changes continuously. In addition, each company has to analyze for which part of the process and when it needs the support of external consultants.

From the survey participants’ point of view, the selection of the ideal competence team is closely connected with the consideration of so called hard “tool-based” factors and soft factors like communication and employee integration.

If the latter are being taken into consideration and entrepreneurs choose their consulting team specifically, there is nothing in the way of a sustainable and successful integration process.

 
Energy

PV Survival Guide

How German PV players can survive the global industry consolidation

With about 65% market growth, 2011 was another record year for the PV industry. However, records have also been reached in terms of overcapacities, price decline and inventory levels along the value chain. The industry reported rapidly decreasing margins and first companies have fallen victims to the increased competition. more

With about 65% market growth, 2011 was another record year for the PV industry. However, records have also been reached in terms of overcapacities, price decline and inventory levels along the value chain. The industry reported rapidly decreasing margins and first companies have fallen victims to the increased competition. Thus, temporary work as well as the number of production stops and even insolvencies have increased.

Sobering news like the filing for insolvency of Solon AG, Solarhybrid AG and Q-Cells AG and the takeover of Sunways AG by LDK are only forerunners of a global PV shakeout. This has long been foreseen (cf. goetzpartners Renewables II study, 2009) but especially German companies have benefitted from unexpected market growth in Germany and nearby countries like Italy. Together, both markets accounted for about 50% of global demand in 2011.

German players now stand with the back to the wall as SolarWorld’s anti-dumping claim in the US shows – they won the case but the imposed duties won’t change anything fundamentally. The cost race will continue.

 
TMT

Context is King

Television in the multiscreen era

IPTV has finally arrived in the living room as the television of the future and offers users genuine added value through its interactive supplementary services. There is great consumer demand for traditional features, such as time-shift TV and VoD, but also surfing the internet and access to pre-selected apps. Users are also willing to pay for content as long as it is not freely available elsewhere and is provided to an appropriate quality standard. more

IPTV has finally arrived in the living room as the television of the future and offers users genuine added value through its interactive supplementary services. There is great consumer demand for traditional features, such as time-shift TV and VoD, but also surfing the internet and access to pre-selected apps. Users are also willing to pay for content as long as it is not freely available elsewhere and is provided to an appropriate quality standard.

IPTV will continue to enjoy success on account of the increasing market penetration of mobile and hybrid devices. goetzpartners looked at which type of content consumers want to use, on which devices and in which usage contexts. Besides the trends and developments on the IPTV market, the question of which content and technical features are worthwhile and how mobile devices influence TV usage were also analysed. We derived key findings and recommendations for action from these representative results for content and infrastructure providers as well as platform operators and device manufacturers.

 
Financial Institutions

The Myth of Bankability

Definition and Management in the Context of Photovoltaic Project Financing in Germany

Managing bankability is closely related to the concept of managing quality – and today quality is managed actively with high attention given by companies’ top management, as it serves as a key differentiation factor in global competition across many industries. The PV industry is well-advised to apply such concepts to the crucial issue of achieving bankability for projects. The report outlines promising approaches for doing so. more

Managing bankability is closely related to the concept of managing quality – and today quality is managed actively with high attention given by companies’ top management, as it serves as a key differentiation factor in global competition across many industries. The PV industry is well-advised to apply such concepts to the crucial issue of achieving bankability for projects. The report outlines promising approaches for doing so.

Bankability receives increased attention

Nonetheless, the financial crisis has also left its mark. In 2008 and 2009 credit markets were mainly dried up, due to the collapse of some major financial institutions. Liquidity in the financial markets, at that time, had become a major issue for large-scale PV projects. As a consequence of the credit crunch, banks needed to recondition their lending criteria and the assessment process for project finance became stricter. Banks began to “cherry-pick” projects of outstanding quality and as a result the bankability of projects, project components and stakeholders received increasing attention.

 

The global Photovoltaic market is expected to show continuous strong growth of 29% CAGR till 2015 but with strong shift in regional demand. The crystalline cell production market is much more fragmented and competitive than thin-film cell production. Historically, European feed-in tariff markets enabled global demand to exceed supply. more

The global Photovoltaic market is expected to show continuous strong growth of 29% CAGR till 2015 but with strong shift in regional demand. The crystalline cell production market is much more fragmented and competitive than thin-film cell production. Historically, European feed-in tariff markets enabled global demand to exceed supply. This attracted new market entrants and together with the financial crisis of 2008 and 2009 the imbalance turned into excess supply.

Oversupply is going to increase in the years to come and it is expected that global module producers will consolidate by almost 40% till 2015. After a strong decline in 2009, M&A activity in the solar market is increasing in 2010. Even though most European solar related M&A transactions involve European bidders, there is increasingly strong interest from overseas strategic players.
General drive for efficiency will benefit the growth of the equipment and peripherals market which already shows attractive margins. Most equipment and peripherals solar suppliers in Europe are located in the D-A-CH region and are potentially attractive targets for small and mid-cap investors and strategic buyers.

 
Energy

Crystalline photovoltaic market

How dangerous is the Chinese Dragon really?

Is the competition in the crystalline solar market already decided? Stock markets draw a picture of Chinese dominance with Chinese players significantly outperforming international players. goetzpartners has analyzed the capabilities of Chinese and international players that will determine the course of the ongoing battle in the global crystalline solar market. more

Is the competition in the crystalline solar market already decided? Stock markets draw a picture of Chinese dominance with Chinese players significantly outperforming international players.

goetzpartners has analyzed the capabilities of Chinese and international players along the four success levers that will determine the course
of the ongoing battle in the global crystalline solar market:

  • Production cost – Chinese players have a clear cost advantage of roughly 30% over the international players
  • Internationalisation – Chinese players are favored by shifting market demand from Europe to newgrowthmarkets in the United States
    and Asia
  • Organisation – High organizational maturity of international players allows redefinition of their business models while Chinese players
    have to focus on organisational structures
  • Sales & Marketing – Required expertise, such as branding and customer retention, is more established at international players
 
Energy

Solar Pulse Check 2010

Production costs and sales strategies - an inside out analysis of the solar industry

Target group of the Solar Pulse Check are cell & module manufacturers in the solar industry. After successfully conducting the Solar Pulse Check 2009 with 28 participants, in 2010 goetzpartners conducted the market survey for a second time with 46 participating companies. The Solar Pulse Check claims to provide an understanding of current trends and market dynamics to executives within the solar industry as a basis for strategic company decisions. more

Target group of the Solar Pulse Check are cell & module manufacturers in the solar industry. After successfully conducting the Solar Pulse Check 2009 with 28 participants, in 2010 goetzpartners conducted the market survey for a second time with 46 participating companies. The Solar Pulse Check claims to provide an understanding of current trends and market dynamics to executives within the solar industry as a basis for strategic company decisions.

This year‘s focus of the Solar Pulse Check is set on 3 distinct topics:

  • Reduction of production costs
  • Sales and sales supportive activities
  • Consolidation within the solar industry
 
TMT

Convergence in the media market

A renaissance for broadband cable

When the cable networks made their way into Western Europe, they certainly represented an enormous improvement with regard to quality and variety of TV stations compared to the terrestrial analogue reception which had prevailed until then. However, for a long time, cable networks were "merely" an infrastructure for distributing analogue television which surely brought in good margins, but was relatively unspectacular in itself. more

When the cable networks made their way into Western Europe, they certainly represented an enormous improvement with regard to quality and variety of TV stations compared to the terrestrial analogue reception which had prevailed until then. However, for a long time, cable networks were "merely" an infrastructure for distributing analogue television which surely brought in good margins, but was relatively unspectacular in itself.

Since the second half of the 1990s, technical development has made possible the additional transmission of digital television as well as broadband internet and voice telephony by cable. Driven by the prospect of additional sales through this already existing infrastructure, cable has experienced a renaissance in recent years: The network upgrade with regard to digitalisation and back-channel capability is being expedited with great urgency and considerable investment. At the same time, the additional possibilities are being applied in new products and product logics (Keyword: Triple Play). A wave of consolidation between the cable network providers in Europe has begun.

Today, the cable network providers in Europe are among the central players in supplying multimedia applications to the population. And the development is not at all complete. In addition to an expansion of the customer base, the emphasis is above all on increasing the sales per customer by means of new products, services and contents that result from the convergence of television and
internet.

The study deals with cost-efficient growth strategies for cable network
operators on their continuing route into the converging media market.

 
Energy

Renewable Energies II

Consolidation in the worldwide solar cell and module market

It is expected that by 2015, the solar market will be characterized by drastic consolidation effects: The number of solar cell and module producers will reduce by 40%. At the same time, the market share of the top 10 will increase from 44% today to 57% in 2015. This is the result of an analysis of 100 international solar cell and module manufacturers carried out by goetzpartners. more

It is expected that by 2015, the solar market will be characterized by drastic consolidation effects: The number of solar cell and module producers will reduce by 40%. At the same time, the market share of the top 10 will increase from 44% today to 57% in 2015. This is the result of an analysis of 100 international solar cell and module manufacturers carried out by goetzpartners. 

Only these companies will be among the longterm winners who consequently use their already strong strategic and/or financial position to further expand their competitive advantages and actively take part in the consolidation process.

The consultancy has analyzed their financial ratios as well as market data and extrapolated them in planning scenarios up to 2015.

 
Organisation & Change

India

From Emerging Country to High Growth IT Engine

India is firmly established as one of the globe’s most attractive economies. The world’s second-most populous country has undergone a dramatic transformation over the past decade, moving from its role as a supplier of cheap labour for foreign companies to a robust player with its own vibrant economy. more

India is firmly established as one of the globe’s most attractive economies. The world’s second-most populous country has undergone a dramatic transformation over the past decade, moving from its role as a supplier of cheap labour for foreign companies to a robust player with its own vibrant economy.

With annual average GDP growth over the last years of around 7 percent and a highlyskilled workforce, India has emerged as a hub for high growth businesses such as IT services, business processing, pharmaceuticals and the automotive industries. It will continue to provide compelling offshoring opportunities for European enterprises that know how to correctly identify them. In particular, the areas of IT-related services, pharmaceuticals, healthcare, media, automotive, real estate and technology transfer will show growth. As a result, India is a very interesting market for Europe. With predictions that it could be the world’s richest economy by 2020, and more than 544 million Indians expected to join the consuming middle class (annual household income exceeding 3,000 US$), we believe the business opportunities for Europe to increase.

Beyond that, large Indian players, newly confident and flush with cash, are now looking to Europe to further their own growth ambitions. Large IT services players, for example, are in a good position to achieve market leadership via large acquisitions, while buying up small-and-medium sized players will help them penetrate niche markets. But these efforts require a deeper understanding on the part of Indian companies on how to approach Europe’s fragmented landscape, with its wide range of languages and cultures.

 

With a population of 10.1 million and a GDP of EUR 88.9 billion, Hungary is one of the larger Eastern European markets. At 4%, GDP growth was relatively high in 2006, but is expected to decline in following years since the government will have to reduce its significant state deficit (9.7% of the GDP in 2006). more

With a population of 10.1 million and a GDP of EUR 88.9 billion, Hungary is one of the larger Eastern European markets. At 4%, GDP growth was relatively high in 2006, but is expected to decline in following years since the government will have to reduce its significant state deficit (9.7% of the GDP in 2006). In preparing to join the European Union on May 1, 2004, Hungary adapted its economical framework to European Union standards and liberalized its telecommunication market accordingly. Since the telecommunications infrastructure was poor, this process has attracted primarily international investors like Deutsche Telekom, Telenor, Vodafone, Tele Danmark and UPC, which made significant investments in the country's infrastructure. Today, penetration and service levels have reached Western European standards with Hungarian households spending a significant share of their income on telecommunication services.

Competition is basically limited to three to four major players in the various market segments with Magyar Telekom as the largest provider having defended market shares of 79% (fixded line), 44% (mobile), 19% (cable) and 43% (Internet). Competition will intensify in the future since mobile penetration is moving towards saturation and growth potential for broadband Internet services is limited due to limited PC penetration. In this context, goetzpartners and Consolidus believe that various trends will drive further competition. 

 
TMT

The Russian Adventure

The Russian Telecommunication Services Market from a foreign investor’s perspective

Investing in emerging markets is a challenge and the Russian telecommunication services market is no exemption: An unfamiliar, unsettled regulatory and competitive environment in combination with significant influence by commercial and political parties represents a continual challenge for foreign investors in this market. more

Investing in emerging markets is a challenge and the Russian telecommunication services market is no exemption: An unfamiliar, unsettled regulatory and competitive environment in combination with significant influence by commercial and political parties represents a continual challenge for foreign investors in this market.

Despite this environment, many players entered the market in the early years of liberalization, typically partnering with local groups to exploit the potential of the largest of the Eastern European markets. In these years, foreign investors were appreciated for their financing capacities and their expertise and the success of alternative telecommunication service providers, in particular in the booming mobile market, promised an adequate reward for the risks associated with entering the market.

In recent years though, the situation has changed as local groups feel that they no longer depend on their international partners and hence pursue aggressive tactics to push them out of their joint ventures, forcefully taking advantage of grey areas in the regulatory and competitive system. As of today, many renowned investors have pulled out the market with Deutsche Telekom,Cable & Wireless and George Soros being among the most prominent of them. Others like Telenor and TeliaSonera have taken up the fight for their stake in the Russian market.