«3 CONSULTING Value-Based Collaboration: New Business Strategies By Rojesh Narula Management Frofesional and Software Developer The role of Consulting Services has traditionally been transaction oriented and Iimited to specific task flltment, in an environment where businesses have ‘boon cencernedonky with the prof motives. With the changes i the environment increasing competition, fragmentation, consumer activism and stronger _goverance,proft motives ae no longer the suficient criteria, and businesses drove to provide value to afl stakeholders from the supply chain to stategic: partners, consumers, and socetyat age. Consequently, busineses' expectations “tom Consulting have evolved to encompass martial value based collaboration. ‘Moreover, Consulng Services are now expected not only to deliver value for: the business enterprise, but aso enable itto deliver value to al the stakeholders in the business, and society at large. Tho paper deals with the three ways to deliver this - Value Addon, Value Discovery, anc! Value Creation. he modern business environment has redefined the way busines is done. Disappearing bars, Plat boundaries fling ke a pack of cars, conssrly evolving consumer, convergence of tpologes ana ceaseless anteebae poieratin of organizations, are afew constants in the changing busines work Inevitably, Corsultng services have been impacted by the changes inthe environment an! the neds of the Lumines world Some of ese cal changos in the busines environment re: Diffused Organizational Bounderies From a concrete and welled! onazaion that peformed ll functions inhouse, te concept of a Trounson hes now expanded oc lees working toward the common abective of sing Fea sumner: The tedem Extend! Organization inches the supply chain technology panes, escing sce preders channel ants et. The objective isto sreamlineeiciencles all levels Sesto srvice te Maret Luter and Fore productively. Moreover, the advent ofthe internet hs ensured that ts no longer necessary for an exganization to be (Batted i tine and space fr ito function efficiently. The virtual organization with networked telatonships fonctions as song as brick and mora {nernatonel Congress & Exposition on Trade in Services, 2006 || Sit1 {Sp mterationat Conarets& Epolton on Tra in Srvc, 20 Constant Scrutiny and Visibility Gone are the dys when an exganization was closed tothe external world an would communica with itthngh few key spokespton and decors: Development information and media technologies, flat organizational hierarchies, and alen media and investors, ensie that al etvies ofthe mele ‘organization reach te cutie world on practically areal ime bass and from mile surces ihn the extended organization Vigilante Activism The moder customers wellaware of hisrghs and very wing to exercise them at slightest provocation. Asif that was not enough, vested interests of othe stakeholders, compar, and the soc at lage ‘ensure that organizational lay, inficiocy oF manipulation do not go unpunished, From stances of race o sex discrimination to environmental polation, child labour or rique advertising ct, awareness ‘of cayporate responsibly ard model code of oganizairal haviour is spreading apy to consumer ‘and social groups, wo oly take their discontent the markt or the jay. The curent imbroglon Surcunding the Colas ace ia poi Limited Impact of Organizational Communication “The media, NGOs and polite groups contribute to the fermation ofthe value systems ofthe consumes, and the impact of erganizatonal communication in diving the opinion ofthe consumer is severely ‘alld. The increasing number and frequency of fas, tends and consumer preferences have, In thelr ‘oot, the multiple fragmented still thatthe hndvdual consumer is subjected to, fom these diverse Demanding Customer Competition, changing lifeayles, the free flow of information, and the proliferation of information ‘technology have contributed the development ofa mature and well-informed customer Mulpiity of buying options ensures that he consumer ves 3 hard bargain in his questo get the es vale at the lowest cost in the fastest serie time, andthe place f his own choosing Locus of Control with People ‘The indus economy dat top-down hierarchies with foc on prediction andthe low ofknowedge fromtop to down, Withthe ral othe knowledge economy, the orushas no shied fram technological roceses to people ~ both employees and customers. Gone are the days when an organization could dominate the market and its amployees onthe strength of its product or technological leadeshp. tn he knowlege economy, both exsumers and employes ae wiling to make thelr contribution t the st. bidder that mets thee nea Dynamic Markots and Multiple Variations of Relationships Globally ‘The modo global organizatonoparates in adverse range of matkts and businesses that ae at diferent stages of development, and fer diflring challenges. With demanding and fk customers, fragmented ‘mares, ante stakeholders, “oe-sie sal loba approach managsnent so longer sess Market of One ‘tempts to create product and brand diferetation over the yeas have revue in highly fagmented rmarketstothe extent of serving the individual customer Prods and services tom banking, automobiles,ee compters, and even consume yur sch a> guments ae now sing tei forte indivi Volatile and Globally Connected Markets From the early days of privately held enterprises andl localized institutional funding the modem ‘igaton ts evolved to sepescn a wie vr of sharin, fen in fering ftemationa aera the nancial matkets re nc globally connec and the ftrets ofthe verse sharcholders {impact upon the business decisions of the organization. ‘The Outsourced Organization “The emphasis on leveraging knowledge has encourage a shift nates owas ausourcing. The lsh of casoureing of ron tei” reashasnow given way oan phason ficient operations a rapeencle,promysing enganizations to ulsource any o all reas of ther business, What an co cea Core stage area of sion citical areas ae ls being readily outsourced We aeacton tp advising and even sales and matting, no faetion is sacrosanct wo the ‘ciganization Catalytic Technology Infomation leeclgy today lays citcalroen connecting conser, stakeholders, an employers, ti can oe ake oe break he ganization, Unforeseen Eventualities and dangers Fromhacking, corporate espionage, y the tines, but also to enable i 10 respond tothe exigencies vie a bythe dovtonment the busines today & quired to think beyond the pref motive and sete ve oral dakehokes and soci thn consi must exces deliverables wie this 48 {ntornational Congress & Exposition on Tradein Services, 2006 = —‘Stes, Consing it ato ere he busine rove valor comers al Sake ond ‘Seiya age This can mane athe fxm © Valve Aion © ale Discovery © Value Craton VALUE ADDITION ‘Ate simplest lve, consutig provides a value alton that would nok atherwise be accesible to the bpsinesses fem intemal resotes. This vale alton ean take the fn af Cost Savings: cheaper and nore cost effective way of making the meusevap i always in demand, Given the nceasng costs of marketing to smaller and agmestdmarels, ane the consequent sucess ‘on margins, savings in costs major iver fr hiring consultants. tthe primary level, this hasadrect | ‘coelation wit all process related areas such as Recutent and Taining, ack Office Processes, TT ‘c. However, cos saving is a standad value aon expected in every area of consulting. Time to market Tumaround time to complete an activity is often critical to an onganizaion’s ‘competitiveness and even suv, nthe modem bsinssenironmatInsuch uations, an erganization ‘often finds more beneficial whe the services of 2 constant wo can deliver the goo, rather san amping up resources an sk in house. The nee fr quik ime to market ite gered by sudden ‘peaks in business processes, such as new product launches, new technology implementations, ne” projec or ifastructue enhancements, where tumaround ine is riteal otkng advantage ol he ‘pportiniy. However, quick esponsiveness snot just limite to peak actu, but sal relevant all ‘ter areas of business. Given the cost and scarey of resources, quick tumaround time i ako required for routine operations apd busines a usual, and is» standard vale ation expected fom consi Skiliknowledge Inputs: Giver the dynamic nature of business, the need for specialized skills and ‘experi ofon feltamong onanizations. Civen the high cous of fling and etaning expt alert or ‘sch actives, its often more sensble to coat the services ofa consiting organization at provides themising sil or experts, Francial Consultancy, Due Dilgence Suis, Bran Valsations are examples ‘of consulting opportunities tha fll this nee, Operational Efcincy: A boter and more efficent way of completing a process, an activity or & ‘service is often a iver for hiring the serves of consling organization, ands again a valve addition thats taken fr granted by businesses hiring the services of Consulting organizations ‘Maximization of Intemal Resources, Given the increasing coss of fling and retaining talented "manpower, hing the sevies of a consulting omanzation fen fees precious intra resources for ‘more proctve activites eventhe business asthe necesay sil, processes and operational eficency torexecute the task el coe 2 Consuingonarzatins ako provide value ation by enabling an enterprise to Gem ont cre Cnpacrtes wee cre rea ae bee de yep sesosng thse subjects. | Value ations fiom Consing this enable businesses to provide valse to their own stakeholders by ‘means of increased customer station, inereaed pottabity and prodctvay, enhanced eficencle, ‘market value and rand image ete. | [Sqyp nteenationat Conoress& Exposition on Trade in Services, 2000.