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USA, Boston - 29 November 2016

Arthur D. Little: “The True Economic and Environmental Costs of Battery Electric Vehicles in the United States – a 2015 Review and 2025 Forecast”

A new study of the real impact of battery electric vehicles (BEVs) compared to internal combustion engine vehicles (ICEVs), in terms of both total cost of ownership (net of public subsidies) and environmental impact

Boston, November 29, 2016

A new study of the real impact of battery electric vehicles (BEVs) compared to internal combustion engine vehicles (ICEVs), in terms of both total cost of ownership (net of public subsidies) and environmental impact, reveals no easy choice for eco-minded consumers. Do BEVs truly offer an environmental advantage – and if so, at what cost?

The study, by Arthur D. Little (ADL), analyzes the
impact of new BEVs and ICEVs in the US, and projects the economic and environmental effects over the assumed 20-year lifetime of a US passenger vehicle.

ADL’s comprehensive research looked at BEVs and ICEVs manufactured in 2015 and 2025, considering both greenhouse gas emissions and the secondary environmental impact of vehicle production. While the total cost of ownership for BEVs is forecast to decrease significantly by 2025, the magnitude of this decline is not sufficient enough for BEVs to gain a cost advantage relative to ICEVs. 

The environmental impact is more complex, as ADL’s study found that a BEV purchased in 2015 will produce 23% less greenhouse gas emissions than a similar ICEV, but the lifecycle of a 2015 BEV will generate approximately three times as much human toxicity. Combined with the financial burden BEVs place on the consumer, the complex environmental reality of BEVs will continue to present challenges for the sustainability-minded consumer in choosing whether to drive a BEV or an ICEV.

Commenting on the findings, John Brennan, Managing Director, Arthur D. Little US, said, “While the promise of BEVs has excited consumers and regulators alike, the fact remains that the R&D, production, in-use, and end-of-life of BEVs and their Li-ion batteries have their own set of economic and environmental challenges, in terms of both overall cost of ownership and human-health impact. Our study is a must-read for any transportation policy-maker and sustainability-minded consumer looking to understand the realities of the mainstream acceptance and use of BEVs in America’s transportation fleet.”

Tim Barder, Manager, Arthur D. Little US, stated: “Our study is unique in that the analysis is conducted from OEM, consumer and market-based perspectives enabling a true ‘apples-to-apples’ comparison between BEVs and ICEVs, including alternative transportation and battery-pack replacement for BEV owners, which are often overlooked.”

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France, Paris - 01 October 2016

It starts with a single app

This article discusses transport as a service and how combining old and new ways of getting around will transform transport-and cities, too. In 2007 half the world's population lived in cities; by 2050 it is expected that two-thirds will. One of Arthur D. Little's reports is referenced in the article saying urban journeys already account for nearly two-thirds of all kilometres travelled by people. On current trends urban distance travelled each year will have trebled by 2050, and the average time urban drivers spend languishing in traffic jams is set to double to 106 hours a year. The traditional policy responses to congestion-build more roads and expand public transport-are too expensive for these cash-strapped times. Hence the appeal to urban planners of the idea of travellers combining existing mass-transit schemes with a growing variety of private services. It offers a way to attract private capital into "public" transport. By enabling a closer link between supply and demand it will make mass transport more efficient. Congestion at peak hours will fall as travellers are diverted from crowded routes to less-packed ones; varying prices by time of day could help here, too.

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Transforming the value chain with digital health

The business model of the pharmaceutical industry is being transformed by digital health. It will significantly extend current business models, or even create completely new ones for the industry. In order to implement innovative solutions ahead of new entrants, pharma companies will need to undergo major transformation programs and convert three completely different value chains: pharma, medical devices for measuring health parameters, and IT solutions to process and connect data. In this article, Ulrica Sehlstedt, Nils Bohlin, Fredrik de Maré and Richard Beetz of Arthur D. Little discuss how pharma companies can get ahead of disruptive innovations and thrive in the digital world.

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France, Paris - 11 March 2016

Should Airline Alliances Redefine Their Models

In this article, Arthur D. Little's new report on Aviation Alliance Strategy is discussed. The report says that the alliance model has perhaps reached its high-water mark, paving the way for the continued emergence of a more multifaceted form of cooperative strategy in the future. Alliances were created in an era of "hypercompetition," the report says. Dozens of individual airlines competed individually before the advent of the Big Three in the late 1990s and creation of the transatlantic joint ventures that further cemented alliance structures. Those developments, along with mergers and more cooperative regulatory authorities, have dramatically changed the picture. In the future, the challenge is no longer hypercompetition but "hyperconsolidation." Intense consolidation will drive a far more dynamic form of alliance strategy. The focus will shift from the current airline-centric model to a broader concept of aviation alliance strategy that embraces multiple players across the value chain.

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France, Paris - 29 February 2016

Consumer health in the future: opportunities in and around the sector

This article in Digital Health Age explains how the digital revolution is changing the healthcare industry. Patients and consumers are better informed, have wider choice and demand increased personalization. The consumer health space is naturally more oriented towards screening and prevention, and capturing consumers before they become patients. The successful business models of the future will be associated with giving a large population access to awareness and "prevention" solutions. New entrants to the healthcare space and organizations in adjacent industries, as well as existing healthcare players, can take advantage of these opportunities.

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Infrastructure & Third Parties

Weighing the Risk

This feature article in Commodities Now warns of the dangers of failing to conduct assessments of third-parties to detect and prevent risk. Companies in infrastructure operation interact with a large number of third parties, including their customers, contractors, suppliers and commercial agents. Risk can include financial issues during the relationship, leading to delays in work and overall contract delivery; argumentative behavior, leading to delivery delays, additional costs and having to dedicate more company time and resources to manage the relationship; and corruption, leading to legal liability and reputational impact. However, companies can take steps to mitigate, manage and even create value from this situation.

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France, Paris - 28 February 2016

View Point Aerospace supplier squeeze

ways out?

This guest blog post at Aerospace Diary, an online forum for aerospace professionals, is based on Arthur D. Little's Viewpoint that takes the same title. The aerospace and defense (A&D) industry today struggles with a duality: defense-driven segments are taking hits due to significant governmental budget cuts, while commercial aircraft manufacturing enjoys double-digit growth. A supplier of the future will not only need to be able to handle greater volumes efficiently, but also provide a more complex offering. The industry outlook may be bright and the challenges painfully real, but suppliers in this industry have no choice but transformation.

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Spain, Barcelona - 25 February 2016

Arthur D. Little and SAMENA Council Equip Telecom Operators with New Insight into the MENA Opportunity Landscape

A new joint report by Arthur D. Little and SAMENA Council urges telecommunications operators in the Middle East and North Africa to ride the OTT wave, but look for new revenue streams nevertheless

As the smartphone becomes the de facto standard for accessing the Web and over-the-top (OTT) services, it disrupts traditional telecom revenues. A new report from global management consultancy Arthur D. Little (ADL) and SAMENA Telecommunications Council (SAMENA Council) urges Middle East and North Africa operators to ride the OTT wave, and, in parallel, look for new revenue streams to grow sustainably.In The OTT conundrum for MENA telecoms: Achieving sustainable growth in a digital world, ADL and SAMENA Council report that new digital disruptions will increasingly dictate new norms within the business. 

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Germany, Frankfurt - 17 November 2015

Germany´s Internet industry 2015 – 2019

Study by eco and Arthur D. Little offers deep insight into the rapidly growing sector

The Internet industry will continue to be one of the fastest growing industry sectors in Germany in the coming years - and will overtake front-runners like mechanical engineering and the automotive industry. Reason enough for eco - Association of the Internet Industry e. V. and Arthur D. Little to examine the promising industry now for the third time. The new study "The German Internet Industry 2015-2019" is based on a comprehensive analysis and a range of expert estimations, and forecasts ongoing growth of on average twelve present annually in all market segments for the given time frame. Accompanied by a positive employment level, the Internet industry thus offers a major contribution to the digitalization of society.

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France, Paris - 03 November 2015

Mobile Payments World - Success in the mobile payment space – November 2015

Success in the mobile payment space

Despite significant developments, especially in developed markets, no clear model or winner has been established yet for mobile payment. Hence, all players are still in a position to participate, as the market will structure around global as well as local initiatives. There is an urgent call for all players to position and go to market with convincing strategies for success in the mobile payment space. In this article, Julien Duvaud-Schelnast at Arthur D. Little discusses why he believes a turning point for mobile payment in developed markets is more likely than ever before.

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