How Industry 4.0 has changed way of providing consultancy services

The major world’s industrialized countries started moving towards the Fourth Industrial Revolution a long time ago, according to common provisions, and, since 2013 to date, Industry 4.0 has become a priority for all main governments, aiming to make economy even more efficient. Therefore, the modernization and, particularly, the digital progress have determined – and will keep determining – significant changes, also in business consulting.

At the end of 2019, according to the first permanent census of enterprises carried out by ISTAT (Italian National Statistics Institution) about ¾ of Italian businesses with more than ten employees were already committed in digital investment.

Only 3.8% of them, however, are already in a phase of digital maturity, while most of them are still testing new technological and organizational solutions and this is the most evident sign of the growth possibilities available for Italy in this area. This evolution phenomenon has gone through a further boost due to the pandemic. In fact, it is clear that the impossibility to physically meet colleagues, clients and prospects has imposed the use of new digital tools and, at the same time, changed the relationship between client and consultant.

The easy and fast retrievability of technical and commercial information renders the activity of consultants more complex, as they are less required to provide a “static” and “factual” opinion (which can be easily obtained), but are rather asked for something more. The crucial requirement to deal with this new approach is “understand what the client needs”.

To do this, consultants must be able to work in team, to identify with their colleagues the most appropriate solutions to meet the client’s needs and interests and to intercept further issues and opportunities that could be of interest. Such a dynamic approach also implies the need to be able to share with the client any information necessary to encourage the client signing the agreement, also supported by available digital tools and platforms, to reach a balanced mix of informality – implicit in the use of such instruments – and precision and professionality required by professional consultancy.

Consultants must act as a reference point for their teams, relying on the support of their colleagues (often more specialized) in both “anamnesis” and “diagnosis” phases, and up to the “cure” (i.e. consultancy). This must be done giving up all traditional individualistic approaches. In fact, in such a context, internal communication between team members – favoured by the use of the digital tools mentioned above («facilitators») – is increasingly more strategic, representing one of the main drivers to success.

Communication does not concern only the indication of activities being carried out, but rather the whole process, which consultants are involved in, i.e.: from the identification of opportunities, to the definition of the strategy to implement, to the management of deliveries and up to the collection of feedback at the end of the service and, if needed, to its improvement, if it did not meet the client’s expectations properly.

Consultants are required to understand the problem and find the right solution to it, trying not to adjust those solutions that they deem (a priori) as the most valid ones, if these do not appear as sufficiently appropriate in respect to the client’s needs. This new approach also requires consultants to have a proactive mindset, as they should not only meet the client’s requests, but also try to identify, thanks also to teamwork, further needs, which the client itself is not yet fully aware of.

Today’s consultants are therefore deeply different from yesterday’s consultants. Without analysing in detail all reasons that determined (and continue to determine) the metamorphosis of their skills and role, it is clear that there is no choice: resist the change, risking to be less and less involved in processes, or decide to adapt to changes and exploit their strength and trajectory like a skilful surfer. In the latter case, their role is most likely to further evolve from consultant to trustee advisor.