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From Solution Shop to Boutique Consulting? Capturing Recent Developments on the German Consulting Market

Jörg Jasper Dã–tsch ()
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Jörg Jasper Dã–tsch: Andrássy University

Management Dynamics in the Knowledge Economy Journal, 2016, vol. 4, issue 2, 291-306

Abstract: Digitalization, globalization, new technologies and shorter product life cycles are only a few keywords underlining the fact that companies are under increasing pressure for faster adaptation, innovation and hence applying a higher knowledge intensity. We assume that these conditions require an increasingly important role of consulting companies, because they seem to be the intermediaries needed to bridge the faster growing gaps between existing business models, organizational structures and accelerating market change. Market pressure is growing on the market for consultant companies as well. New technologies and digitalization should influence both the structure of the consultancy market and the business models of consultancies. Christensen suggested a trend from "solution shop" to "boutique consulting." To track current developments, we concentrate on the German consulting market as one of the most important consultant markets worldwide and explore changes of the last two years based on various studies. Processes of change seem to be both substantially driven by digitalization and to reflect change on the non-consultancy markets. A high willingness to switch among providers documents a high pressure on performance. The impact of digitalisation seem to be observable in structural and qualitative change. With regard to the German consulting market and the latest available data we cannot validate a tendency from a dominance of "solution shop" consultancies to "boutique" consultancy services.

Keywords: knowledge economy; knowledge intensity; consulting. (search for similar items in EconPapers)
Date: 2016
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Handle: RePEc:nup:jrmdke:v:4:y:2016:i:2:p:291-306