Consulting strategy on Cross-cultural environmentPresented by : Dr. Kyeong Seok Han Presented by : Dr. Kyeong Seok HanProfessor of Soongsil University Professor of Soongsil UniversityKorea Management and ec!nologyKorea Management and ec!nology Consultant"ssociation Consultant"ssociation e-mail: ks!an#ssu.ac.kr e-mail: ks!an#ssu.ac.kr!e $CMC$ %iennial Congress &''( in %ei)ing2ContentsSession * : +utlineSession & : ,lobal Consultancy in Cross-cultural environmentSession - : Current Korean Status Session . : !e C!allenges in Cross-cultural environmentSession . : Conclusion Conclusion Session 1 : Outline4Management Consulting is to provide the professional service for clients/enterprises to analyze and solve business problems and for clients to apply successful cases of other companies to their own companies.Management Consulting is to provide the professional service for clients/enterprises to analyze and solve business problems and for clients to apply successful cases of other companies to their own companies.Definition of Management Definition of Management ConsultingConsulting5DefinitionofManagement ConsultingDefinitionofManagement ConsultingThe provision of independent advice and assistance about the process of Management to clients with management responsibilities, The individual can be a generalist or a specialist and may approach an assignment with, for example, a purely financial point of view, as required by the client.Definition of management Consulting Definition of management Consulting6DefinitionofManagement ConsultingDefinitionofManagement ConsultingIndependencepecial Training and !ualification"dvisory erviceIdentifying and "naly#ing $roblemsolving problems and Implementation%ey%ey words words Session & : ,lobal Consultancy in Cross-cultural environment8&lobal Consulting Mar'et &lobal Consulting Mar'et (e expect continuous growth until )**+.Source : Kennedy Information9Source : Kennedy Information&lobal Consulting Mar'et &lobal Consulting Mar'et 10Source : Kennedy Information&lobal Consulting Mar'et,by Industry &lobal Consulting Mar'et,by Industry 11Source : Kennedy Information&lobal Consulting Mar'et,by Industry -atio &lobal Consulting Mar'et,by Industry -atio 12This is the data of .ear )**/.0 is 1*2 of the whole mar'et. Source : Kennedy Information&lobal Consulting Mar'et,by -egion &lobal Consulting Mar'et,by -egion 13!e Consulting $ndustry is gro/ing ra0idly in Peo0le1s 2e0ublic of C!ina.Currently t!e si3e of C!inese consulting market is estimated as US 4*(' Million. !ey e50ect t!at t!e management consulting market maintains more t!an &'6 of gro/t! rate until year &'*'. "fter &' years t!e si3e of C!inese consulting market /ill be US 4&'' %illion /!ic! /ill one of to0 five markets in t!e /orld. &lobal Consulting Mar'et , China&lobal Consulting Mar'et , China14!e reason of t!e gro/t!!e main reason is t!e market-oriented economic systems and ra0id c!anges on enter0rises /!ic! needs advices from consulting firms.&lobal Consulting Mar'et , China&lobal Consulting Mar'et , China15Ma)or consulting firms in C!ina!e ma)or consulting firms in C!ina are multinational consulting firms including McKinsey7 "ccenture7 Deloitte7 and so on." s0ecialist in K+2" 8Korea rade-$nvestment Promotion "gency9 encourage to )oin C!inese consulting market for more t!an *'7''' Korean firms in C!ina. &lobal Consulting Mar'et , China&lobal Consulting Mar'et , China16Source : Kennedy Information&lobal Consulting Mar'et of $ublic ector&lobal Consulting Mar'et of $ublic ector17Source : Kennedy Information"reas of &lobal Consulting"reas of &lobal Consulting18Source : Kennedy Information"reas of &lobal Consulting"reas of &lobal Consulting Session 3 : Current Korean Consultancy20Current tatus of %orean Consulting IndustryCurrent tatus of %orean Consulting Industry*. Korean consulting industry falls be!ind for about *' years com0aring to t!e industry of advanced countries.*. Korean consulting industry falls be!ind for about *' years com0aring to t!e industry of advanced countries.&. More t!an ('6 of Korean consulting market is dominated by foreign /ell-kno/n consulting firms.&. More t!an ('6 of Korean consulting market is dominated by foreign /ell-kno/n consulting firms.-. $n order to satisfy global standards after "sian :inancial Crisis7 Korean firms needs consulting from foreign consulting firms.-. $n order to satisfy global standards after "sian :inancial Crisis7 Korean firms needs consulting from foreign consulting firms.21Korea Management ; ec!nology Consultants1 "ssociation 8KMC"91s 0er yearMore t!an &''Consulting firms ; "P>C C%CsCounseling /it!Consulting"bout &7'''Small businesses:unding su00ort from Korean ,overnment22Current Trends of %orean Consulting IndustryCurrent Trends of %orean Consulting Industry*. !e ra0id gro/t! of Korean Consulting $ndustry: !e Si3e of Korean Consulting Market is estimated as about US4 *.?* %illion. !e gro/t! rate /as more t!an *.6 in last ( years. 8Source: Korean Consulting "ssociation in &''&9*. !e ra0id gro/t! of Korean Consulting $ndustry: !e Si3e of Korean Consulting Market is estimated as about US4 *.?* %illion. !e gro/t! rate /as more t!an *.6 in last ( years. 8Source: Korean Consulting "ssociation in &''&9&. !e vague boundary of Consulting @ob: Korean System $ntegration com0anies and ot!er 0rofessional com0anies intrude into consulting markets. &. !e vague boundary of Consulting @ob: Korean System $ntegration com0anies and ot!er 0rofessional com0anies intrude into consulting markets. 23Current Trends of %orean Consulting IndustryCurrent Trends of %orean Consulting Industry-. !e c!anged areas of Consulting Services: Clients need t!e total consulting service including strategy establis!ment7 0rocess innovation7 and $ a00lications. -. !e c!anged areas of Consulting Services: Clients need t!e total consulting service including strategy establis!ment7 0rocess innovation7 and $ a00lications. .. !e c!anges in t!e com0etitive structure: Soft/are com0anies7 System $ntegration com0anies7 accounting com0anies 8CP" firms97 and la/ firms becomes com0etitors... !e c!anges in t!e com0etitive structure: Soft/are com0anies7 System $ntegration com0anies7 accounting com0anies 8CP" firms97 and la/ firms becomes com0etitors.24Current Trends of %orean Consulting IndustryCurrent Trends of %orean Consulting Industry(. !e 0reference of /ell-kno/n foreign consulting firms: Korean clients 0refer /ell-kno/n foreign consulting firms to Korean consulting firms.(. !e 0reference of /ell-kno/n foreign consulting firms: Korean clients 0refer /ell-kno/n foreign consulting firms to Korean consulting firms.A. !e gro/ing nic!e markets develo0ed by small Korean consulting firms: Korean small consulting firms develo0ed t!e nic!e markets based on client-oriented consulting strategies.A. !e gro/ing nic!e markets develo0ed by small Korean consulting firms: Korean small consulting firms develo0ed t!e nic!e markets based on client-oriented consulting strategies.25trategytrategyITIT3peration3peration4-4-Mc%insey, 5oo# "llen 4amilton, 5ain 6 Company, The 5oston Consulting &roup, Monitor 6 Co., etc."ccenture, Deloitte, 5earing$oint, I5M 5C, etc.5earing$oint, "T %earney, CC Index, etc.(illiam Mercer, Towers $errin, (atson (yatt, 4ewitt "ssociate, etc."reas peciali#ed Consulting firmsCurrent pecialty of Consulting 7irms in %orea Current pecialty of Consulting 7irms in %orea 26

StrategyFocusedServiceFocusedNarrowService BroadBroad Information TechnologyNarrowMcKinseyBrain & CompanyBCS!S" CNS#ccenture IBM BCSBearing$oint!eloitte ConsultingSource:Deloitte & Touche7uture7uture 5attle5attle 7ield 7ield7uture7uture 5attle5attle 7ield 7ield8emo7uture Trends of %orean Consulting Industry7uture Trends of %orean Consulting Industry Session . : !e Strategy in Cross-cultural environment28Consulting is recognized as an advertisement tool rather than a productivity improvement tool and as a more cost generating actor rather than a proit generating actor in !orea"!orean consulting irms #ill $e a$le to apply the e%perience o consulting to the cases o Chinese companies #hich are $eing developed in more similar manners than #ell&'no#n $ig consulting irms"$m0roved recognition of consulting as an industry:uture :uture Strategy of Korean Consulting $ndustryof Korean Consulting $ndustry29 (he educational systems or consultants need to $e developed to improve the a$ility o consultants in !orea" )niversities are *oining to the system"Develo0ing >ducational Systems to $m0rove >5cellence of Korean consultants:uture :uture Strategy of Korean Consulting $ndustryof Korean Consulting $ndustry30 +t is very diicult or !orean small consulting irms to compete #ith #ell&'no#n $ig glo$al consulting irms" (hey have to ind out niche mar'ets using dierentiated consulting tools and contents $ased on client&oriented strategies"Develo0ing Differentiated Consulting ools:uture :uture Strategy of Korean Consulting $ndustryof Korean Consulting $ndustry31$m0lementing $nfrastructures for Small Consulting :irms to S!are t!eir Kno/ledge$ncreasing ,lobal Coo0eration /it! $nternational $nstitutes of Management Consultants suc! as $CMC$ and "P>C C%C 8Certified %usiness Counselors9 for %enc!marking and S!aring $nformation and :oreign Consulting :irms :uture :uture Strategy of Korean Consulting $ndustryof Korean Consulting $ndustry32Korean consultants /ould like to increase t!e level of coo0eration /it! Peo0le1s 2e0ublic of C!ina consultants to !el0 im0rove t!e 0roductivity of firms.Korean consultants /ill kee0 maintaining global coo0eration /it! international institutes of management consultants suc! as $CMC$ and "P>C C%C.ConclusionConclusion33!ank youB C;"