{"id":18405,"date":"2016-11-18T17:12:32","date_gmt":"2016-11-18T22:12:32","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/are-we-approaching-the-end-of-management-consulting\/"},"modified":"2016-11-18T17:12:32","modified_gmt":"2016-11-18T22:12:32","slug":"are-we-approaching-the-end-of-management-consulting","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/are-we-approaching-the-end-of-management-consulting\/","title":{"rendered":"Are we approaching the end of management consulting?"},"content":{"rendered":"

When considering career options, most MBAs will try their hand at management consulting.\u00a0 Consulting is an industry that has been around for over a century, [1] but is it truly immune to the disruption of technology?<\/p>\n

Business Model<\/u><\/p>\n

Consulting companies thrive on providing high value-add solutions to clients by using talented employees and intellectual property. The consulting firms give the client access to experts that the client would not traditionally have access to and institutional knowledge that the firm has built up from multiple years of operation. Access to experts and highly talented individuals often allows the clients to transform their business.<\/p>\n

Operating Model<\/u><\/p>\n

The current operating model involves a client contacting a consulting firm for an engagement and presenting a major business problem to the consultants. The consultant adds value to client by aggregating knowledge from various stakeholders and providing more dedicated resources for the problem [2]. After research, a consultant will use internal firm experts, trusted external firm experts, and internal knowledge database to develop the best solution. As a result, the consultant will develop a solution that incorporates information from various sources.<\/p>\n

\"consulting_operating_model\"<\/a><\/p>\n

Chart 1: Management Consulting Operating Model
\n<\/em><\/p>\n

The current business and operating models provide great value to the clients, but what about the clients that have already identified the problem and are searching for technical experts to develop solutions?<\/p>\n

This segment of the market that usually do not require the same level of guidance for problem research and have a lower willingness to pay for consulting services, and thereby are priced out of the market. Moreover, research has shown that, \u201cat traditional strategy-consulting firms, the share of work that is classic strategy is now about 20% – down from 60% to 70% some 30 years ago\u201d [3]. Hence, clients are requiring more analytical solutions from consultant firms and requiring that consulting firms lower their prices. In recent years, the improvement in technology has allowed new startups to fulfill the business need for the companies with lower willingness to pay but with a need for industry level expertise. The innovation in technology has allowed for the development of companies such as HourlyNerd. HourlyNerd\u2019s business model is to provide valuable insights to price conscious clients.<\/p>\n

So how is HourlyNerd able to provide clients with a cheaper alternative to management consulting firms?<\/p>\n

\"hourlynerd_operating_model\"<\/a><\/p>\n

Chart 2: HourlyNerd\u2019s Operating Model<\/em><\/p>\n

 <\/p>\n

HourlyNerd\u2019s technology enabled marketplace has created a new market that allows clients to connect directly with experts. The following factors are how HourlyNerd is able to use technology to create a two-sided market [4]:<\/p>\n

Client<\/u><\/p>\n