Source

The software industry is entering a “very violent technology cycle.” That is not dramatic phrasing from a tech blogger with a flair for the apocalyptic. It is the cold assessment of John Zito [1], co-president of Apollo Asset Management, a firm that oversees roughly $700 billion in assets. When someone managing that kind of money uses the word “violent,” it is worth putting down your coffee and paying attention.

We have all seen the headlines. Artificial intelligence is the new electricity. The new internet. The new fire. Companies are racing to buy it, integrate it, and assure their shareholders they are “powered by it.” But behind the press releases and the breathless keynote presentations, a quieter, far messier reality is unfolding. The companies selling this glorious future are disappearing at an alarming rate.

You might sign a contract with a promising AI partner on Tuesday and by Friday, they have been "acqui-hired" [2] by a tech giant, their product is being sunsetted, and you are left holding a digital paperweight. This is not bad luck. It is a structural feature of the current market. We are in the middle of a gold rush where the shovels break, and the shovel-sellers vanish into thin air.

The question is no longer whether AI will transform business. It will. The question is whether you can buy it without getting burned.

Let’s start with the big number. According to Ken Smythe, founder of Next Round Capital Partners, 85% of AI startups will be out of business within three years [3]. Let that sink in. If you walk into a room with ten AI vendors today, eight or nine of them will not be there to renew your contract in 2029. 

The “AI Graveyard” is already getting crowded. As of mid-2024, one tracker listed nearly 1,700 defunct AI tools, which represents close to 30% of all the tools that particular aggregator monitored. In 2024 alone, more than 600 new “bodies” were added to the list [4]. At that pace, we are not witnessing a correction. We are witnessing a mass extinction.

Much of this churn is driven by what industry insiders call the “wrapper” phenomenon. A staggering number of AI startups are nothing more than thin interfaces built on top of foundation models from OpenAI, Google, or Anthropic. They do not own the intelligence.

They rent it. Their entire value proposition is a user-friendly front end sitting atop someone else’s engine. The moment OpenAI and co. ships a new feature that replicates what the startup does, the startup becomes obsolete overnight. It is a fragile existence, and it makes these vendors dangerous partners for any enterprise buyer who needs to plan beyond the next quarter.

And it is not just the companies that are failing. It is the projects themselves. A 2024 report from the RAND Corporation found that more than 80% of AI projects fail to reach production - twice the failure rate of traditional IT initiatives [5].

So even if you pick a vendor that survives, the odds that your project actually delivers value are roughly those of a coin flip. Worse, actually.

So we know the risks. The vendor might go bust. They might be faking it. They might get hollowed out by a tech giant’s acquisition team. But here is the uncomfortable truth: you still have to buy this stuff. Standing on the sidelines is not a strategy. It is a slow-motion way of becoming irrelevant.

The problem is that traditional procurement methods are catastrophically ill-suited for AI purchasing. You cannot simply check a box for “financial stability” when the company is two years old and burning venture capital to keep the lights on. You cannot evaluate AI the way you evaluate a CRM platform or a fleet of laptops. The entire playbook needs to be rewritten, starting with four challenges that most procurement teams are not yet equipped to handle.

Challenge One: Find the Signal in the Noise

First, you need to understand where thevalue actually lives. A widely cited MIT study reveals a striking divide: 95% of organizations investing in AI pilots are getting zero return [6]. Zero. On the other side of that chasm, the remaining 5% are generating enormous value. Same technology. Wildly different outcomes.

The difference is not about picking the fanciest model or the startup with the slickest demo. The winners are not just buying tools, but they are reimagining their workflows. If you are purchasing a chatbot to help your team write slightly better emails, you are almost certainly in the 95%. That is a productivity toy, not a business transformer. But if you are deploying an agent to automate your accounts payable process, eliminating manual steps and compressing cycle times, you might be in the 5%.

The implication for procurement is profound: before you evaluate a single vendor, you need to evaluate the use case. If the business case does not involve a fundamental rethinking of how work gets done, the AI is window dressing.

Challenge Two: The Iceberg of Hidden Costs

When you buy an AI solution, the price on the box is the tip of a very large iceberg. The real costs often lurk beneath the surface, and they can sink a project faster than any technical failure.

Start with inference costs, the price of actually running these models in production. IBM found that computing costs are expected to jump 89% between 2023 and 2025, driven largely by AI workloads [7]. If your contract does not account for this trajectory, your bill will explode in ways your CFO will find decidedly unpleasant.

Then there is maintenance. AI is not “set and forget.” Models drift. They degrade in accuracy as the world changes around them, like a map that slowly becomes wrong as new roads are built and old ones close. Maintaining them costs 15 to 30 percent of the initial build cost every single year. That is not a line item most procurement teams think to budget for.

And then there is the cost often neglected: change management. For every Swiss franc you spend on the technology, plan to spend three Swiss francs training people to use it. AI that nobody adopts is just an expensive server humming in a data center somewhere. 

Challenge Three: The Data Problem Nobody Wants to Discuss

Here is an inconvenient truth: you cannot buy AI if you do not have the data to feed it. The RAND report flagged “lack of necessary data” as a top reason for project failure. You might purchase the most sophisticated tool on the market. But if your data is messy, siloed, or riddled with bias, the AI will fail. Garbage in, garbage out is not just a cliché in this context. It is a death sentence.

This transforms AI procurement into something more than a software evaluation exercise. You need to vet vendors not just on the elegance of their algorithms, but on their data handling capabilities. Can they help you clean your data? Do they offer pre-trained models that perform reliably with imperfect inputs? If a vendor tells you to “just hand over your data and we’ll figure it out,” consider that a bright red flag. Real AI implementation is a data engineering project first and a modeling project second. Any vendor who does not understand that order of operations is not ready for enterprise work.

Security is perhaps the most insidious risk, because the threat often comes from inside the building. A Sophos report [8] highlights how “Shadow AI” is creating massive, largely invisible vulnerabilities. Employees across your organization are already using free AI tools to do their jobs, thereby pasting sensitive corporate data into public models, uploading proprietary documents to consumer-grade chatbots, running customer lists through unvetted applications. They are not being malicious. They are being resourceful. But the effect is the same.

When you source an AI solution, you are not just buying a tool. You are buying a way to bring that shadow usage into the light by giving people a sanctioned, secure alternative to the Wild West of free-tier AI. 

If your vendor does not offer enterprise-grade security features like single sign-on, data residency controls, comprehensive audit logs, you are effectively inviting a data breach. In a regulated industry, that breach could cost more than the AI will ever save you.

The second threat is structural, and it persists even when you pick a reputable vendor and do everything by the book. Many AI providers, particularly those offering cloud-based models, reserve the right to use your data to retrain and improve their systems. Many bury it in terms of service that nobody reads and unlike a conventional data breach, which is a discrete event you can investigate and contain, data baked into a model’s training weights is essentially irrecoverable.

Buying Software When the Seller Might Vanish

So how do you actually do this? How do you buy software from companies that might not exist next year? You cannot just cross your fingers and hope for the best. You need a strategy, and the first and most important element of that strategy is deceptively simple: do not go it alone.

The AI market is too chaotic, too fast-moving, and too full of convincing imposters for any single procurement team to navigate by itself. You need a sourcing partner who genuinely understands the landscape and not a generalist consultant who applies the same framework they use for buying office chairs and cloud storage to a fundamentally different category of technology.

Generalists check the wrong boxes. They look for “financial stability” in companies that are two years old and burning venture capital. They see a big-name investor on the cap table and read it as a safety net. A specialist sees that same investor and reads it as an exit risk.

A good partner knows how to spot the fakes. They understand that a junior developer can build a visually impressive tool on top of GPT in a single weekend. They will ask the rude questions that polite procurement teams skip.

Most critically, a specialist helps you negotiate for the right things. Most procurement teams negotiate for price. In AI, price is secondary. What you need to negotiate for is exit. You need contractual terms that protect you, not the vendor. Basically a “prenup” that ensures you keep your data, your integrations, and your operational continuity when the relationship ends. Because in this market, it very well might.

The best possible outcome for AI is that it becomes boring. Not boring in the sense that it stops being powerful, but boring in the way that electricity is boring, so deeply woven into the fabric of business that nobody thinks to mention it. We stop talking about “AI projects” and start talking about “business projects” that happen to use AI. It becomes  infrastructure, not spectacle.

But to get there, we have to survive the current chaos. We have to navigate the violent cycle, sidestep the falling startups, and build a foundation that can withstand the shakeout. The organizations that do this well will not merely survive. They will emerge with a massive competitive advantage, because they will have working, stable, value-generating AI while their competitors are still rebooting failed pilots, renegotiating with their third vendor in two years, and explaining to the board why the “transformative” investment has not transformed anything.

The AI revolution is real. The hype is also real. The trick is learning to tell the difference and buying accordingly.

The Great AI Shakeout

It is easy to fill a whiteboard with ambitious strategies. The hard part - and the part we love most - is making them happen.

Today, MMG Management Consulting is proud to release our 2025 Annual Report. This document wraps up a pivotal year where we collectively decided to move beyond theory and commit entirely to execution. 2025 was the year we turned the lens inward, applying the same rigorous transformation to MMG that we deliver for our clients every day.

Real impact requires a magnetic culture. In 2025, we overhauled our recruiting engine, successfully scaling our team to over 25 exceptional consultants.

We proved that high-performance consulting thrives in a supportive, human-centric environment. This commitment was validated when we earned the Great Place to Work certification and won the prestigious Best Workplaces™ award, a milestones we celebrated with a dancing performance on stage.

We believe the future of consulting is technology-enabled. Instead of just advising on AI, we built it. This year, we launched three proprietary AI applications, including ConAn for instant contract analysis and our AI Sourcing Engine to revolutionize spend analysis. Furthermore, we professionalized our entire business development backbone with a fully customized CRM integration, ensuring our client relationships are supported by high-tech precision.

We include exclusive insights into the stark new reality facing Swiss Banking in 2026. With the end of the high-interest "comfort zone," we outline the critical shifts defining the sector, from the absolute necessity of radical efficiency to the rise of market data as the new balance sheet.

2025 was legendary. 2026 will be even bigger. 

MMG'S 2025 Annual Report

3 Lessons Learned from the $42 Billion Market

Global spending on financial market data rose to USD 42 billion in 2023. Recent studies show that this trend is even accelerating. In 2024, global spending on market data increased by 8.1%, while major market data providers raised their prices by an average of 15% during license renewals!

At the same time, the market data budget only grew by around 2% in 2024—significantly more slowly. Swiss financial institutions are also feeling this cost pressure. But how can business-critical market data be managed efficiently and strategically? Three key lessons show how banks can benefit:

Lesson 1: Transparency creates savings potential in the millions

It is crucial for financial institutions to have a clear overview of which data is used where and how intensively. This is the first step in avoiding inefficient cost structures and unnecessarily expensive contracts. Through systematic inventorying and regular usage monitoring (e.g., via central APIs or data lakes), substantial savings can be identified quickly.

Lesson 2: Centralized license management reduces risks and costs

License agreements for market data from providers like Bloomberg or Refinitiv are complex and often contain hidden risks. Those who rely on centralized license management protect themselves against audit risks and gain negotiating leverage. Successful institutions manage contracts actively, prepare for audits internally, and define clear responsibilities.

It’s also important to recognize that the often top-down call for “tougher negotiations” with data vendors is no longer sufficient on its own. Instead, the market data competence center must be equipped both in terms of personnel and technology to continuously assess needs, consolidate requests, and manage procurement. The goal should be to act independently of vendors in the long term.

Lesson 3: Alternative data sources can create independence

In addition to traditional providers, alternative data sources (including some open-source solutions) are increasingly emerging. These can replace or at least supplement costly commercial sources with innovative and flexible usage models.

Companies that adopt such a hybrid approach early and actively monitor it may not only benefit financially, but also strengthen their long-term independence and strategic competitiveness.

Conclusion: Manage market data strategically

The three lessons learned presented here offer a solid starting point to purposefully improve your market data strategy. However, our experience shows that additional key areas of action are essential for achieving sustainable success.

The market data framework from MMG Management Consulting offers comprehensive guidance and concrete implementation steps. We’re happy to support you in managing your market data efficiently—turning a cost factor into a long-term strategic advantage.

Are you also facing steadily rising market data costs?

It is tempting to stick to the formula that got you here. The brave move - and the one we chose - is to reimagine it completely.

Today, MMG Management Consulting is proud to release our 2024 Annual Report. This document wraps up a transformative year where we redefined our identity. 2024 was the year we sharpened our focus, launching a redesigned service offering built on three clear pillars: Innovate, Source, and Deliver.

A strong team delivers strong results. In 2024, we launched "MMG Days," a bi-monthly tradition dedicated to strategy, learning, and connection to ensure we are constantly aligning on our vision. We also unveiled a fresh web presence at mmgmc.ch, concepted and developed entirely in-house, and strengthened our bonds with an unforgettable team offsite in Madrid.

We don't just recommend AI, wa want to live it. This year, we moved beyond the hype, implementing internal AI tools for data categorization and news aggregation to streamline our own operations. We also forged a strategic partnership with AI.Impact to offer bespoke AI strategies, ensuring our clients can navigate the "AI Labyrinth" with practical, tailored solutions rather than generic advice.

We provide a realistic look at the trends defining 2025. With AI becoming integral to daily operations, we outline a strategic framework—Learn, Adapt, Expand—to help organizations move from experimentation to value generation. We also dive into the critical shifts in the Retail and Healthcare sectors, from the necessity of omnichannel excellence to the digital transformation of patient care.
2024 was about reinvention. 2025 will be about impact.

MMG'S 2024 Annual Report

January 17, 2025, is approaching quickly, bringing with it the enforcement of the 

Digital Operational Resilience Act (DORA)

. This EU regulation aims to strengthen digital operational resilience within the financial sector.

For affected Swiss companies, this means finalizing the implementation of 

 in the coming weeks and critically reviewing the adjustments made.

Below, we outline the relevant DORA framework and highlight some of the key challenges companies may face during implementation.

 for managing risks related to information and communication technology (ICT) in the financial sector. It was designed to make financial institutions more 

 that applies directly to EU financial institutions, it can also impact Swiss companies.

A key factor in determining whether an ICT provider is "critical" is whether a 

 for operational continuity, customer data protection, or financial stability.

 of DORA presents significant challenges for companies, primarily due to 

organizations must align not only their third-party providers

complex interplay between Swiss and EU regulations

Key areas that require immediate attention:

DORA

Innovate

At MMG Management Consulting, we believe that the best ideas happen when diverse minds come together to tackle tough challenges. For us, collaboration isn’t just a buzzword—it’s the driving force behind our most impactful and transformative solutions. When we share knowledge and work as a team, the results speak for themselves. 

That’s why we’re beyond excited to announce our new partnership with AI Impact! This incredible organization shares our passion for pushing the boundaries of what AI can achieve. Together, we’re setting out on an exciting journey to explore new frontiers in artificial intelligence, combining our expertise to create meaningful change across industries. 

We also know that while AI is becoming increasingly important for many businesses, harnessing its full potential can be daunting. That’s why we’ve developed tailored services designed to help companies uncover AI opportunities, craft clear strategies, and accelerate project implementation. We’re here to guide you through every step of the way as you navigate the AI landscape. 

This partnership is the start of something special, and we can’t wait to see the innovations we’ll create together. 

A huge thank you to the team at AI Impact, and especially Steffen Maas, for your energy and commitment to our shared vision. We’re thrilled to be on this journey with you, and we’re ready to make a real impact! 🚀 

How do you see collaboration driving innovation in your industry? We’d love to hear your thoughts and experiences! 

#Collaboration #Innovation #AI #DigitalTransformation #KnowledgeSharing

Collaboration: The Heart of Innovation

MMG Management Consulting (Schweiz) AG has successfully integrated Expertaas AG as of September 30, 2024 and is pleased to welcome Pascal Bänninger and Thomas Baumgartner as new managing partners. This integration not only expands MMG's range of services, but also significantly strengthens its position in the insurance sector.

 has almost 20 years of experience in consulting, including at Accenture and Ginkgo (now Eraneos), and has successfully implemented dozens of large international and small regional transformation projects in various industries. As a former partner at Expertaas and a proven expert in digitalization, he brings contacts, methods and in-depth know-how to MMG.

 is a leading expert in the field of software sourcing and license consulting with over 20 years of experience as a buyer on the customer side and over 10 years in consulting, including at Swiss Life and SoftwareONE. As a former partner at Expertaas, he brings in-depth expert knowledge and experience for manufacturers such as SAP, Oracle, Salesforce and Microsoft to the MMG team.

With the two new partners on board, MMG will continue to focus on innovative and high-quality consulting services that meet the changing needs of its customers. With proven methods, creativity and a pinch of humor, MMG is setting new standards in the consulting industry.

MMG Management Consulting (Schweiz) AG hat zum 30. September 2024 erfolgreich die Expertaas AG integriert und freut sich, Pascal Bänninger und Thomas Baumgartner als neue Teilhaber begrüssen zu dürfen. Durch diese Integration wird nicht nur das Dienstleistungsangebot von MMG erweitert, sondern auch die Position im Versicherungssektor deutlich gestärkt.

 verfügt über nahezu 20 Jahre Erfahrung in der Beratung, unter anderem bei Accenture und Ginkgo (jetzt Eraneos), und hat duzende grosse internationale und kleine regionale Transformationsprojekte in verschiedenen Industrien erfolgreich realisiert. Als ehemaliger Partner bei Expertaas und ausgewiesener Experte für Digitalisierung bringt er Kontakte, Methoden und tiefgehendes Know-how in die MMG ein.

 ist ein führender Experte im Bereich Software Sourcing und Lizenzberatung mit über 20 Jahren Erfahrung einerseits als Einkäufer auf Kundenseite und seit über 10 Jahre in der Beratung, unter anderem bei Swiss Life und SoftwareONE. Als ehemaliger Partner bei Expertaas bringt er fundiertes Expertenwissen und Erfahrung unter anderem für Hersteller wie SAP, Oracle, Salesforce und Microsoft in das Team von MMG ein.

Auch mit den beiden neuen Teilhabern an Bord setzt MMG weiterhin auf innovative und qualitativ hochwertige Beratungsdienstleistungen, die den sich wandelnden Bedürfnissen ihrer Kunden gerecht werden. Mit bewährten Methoden, Kreativität und einer Prise Humor setzt MMG neue Massstäbe in der Beratungsbranche.

Expertaas AG integration has successfully been completed

Digital Transformation

In our previous article about ESG (Environmental, Social, and Governance), we explored the rise of ESG regulations and their increasing significance in the corporate world. Today, our focus shifts to the compelling intersection of the two trending topics, ESG and AI (Artificial Intelligence). The interdependent connection between ESG and AI is evident in two prominent perspectives currently shaping the discourse: "AI for ESG", which addresses how ESG challenges can be solved with the help of AI, and "ESG for AI", which examines how AI needs to be used and developed to be aligned with ESG. This article provides a concise journey to overview these two perspectives, shedding light on the intriguing fusion of sustainability and cutting-edge technology.

The fusion of AI and ESG offers a remarkable opportunity to address pressing global challenges. AI can be utilized to promote and drive ESG initiatives, thereby facilitating sustainable development and fostering a more equitable and just society. This involves monitoring and optimizing processes to minimize environmental impact, enhance social responsibility, and improve governance practices. Examples of related Problem Solving are:

The relationship between ESG and AI is not one-sided. "ESG for AI" emphasizes the importance of developing and using AI in ways that align with ethical and environmental principles. Some ESG-related issues occur when using AI.

 have emerged to create awareness of this.

The interplay between ESG and AI offers vast potential for positive change. AI's ability to enhance ESG practices and address pressing global challenges is evident. However, without due consideration of ethical and environmental implications, there is also the potential for negative consequences. It is crucial that as these two trends evolve, we strive to maximize their positive impacts while mitigating any adverse effects.

This synergy between ESG and AI is a pivotal force in shaping a sustainable and equitable future. To harness the full potential of this partnership, stakeholders across industries must collaborate, share insights, and develop frameworks that ensure AI and ESG work hand-in-hand for the betterment of business, society and the planet. Only through such joint efforts can we exceed the positive over the negative effects. Let us know your thoughts!

ESG and AI's Interconnected Journey

It is one thing to start a business. It is entirely another to thrive for a decade in a changing world.

⁠Today, MMG Management Consulting is proud to release our 2023 Annual Report. This document celebrates a major milestone: our 10th anniversary. But rather than just looking back, 2023 was the year we solidified our foundation to ensure the next decade is even more impactful than the first.

Resilience requires evolution. In 2023, we took a significant leap forward by fully integrating the expertaas team into the MMG family. This merger wasn't just about size, it bolstered our capabilities with unique sourcing expertise in software licensing and expanded our business engineering team, allowing us to offer a more robust capacity to our clients. We celebrated this "decade of excellence" high above Zurich at the CLOUDS, marking the moment with the team and partners who made it possible.

We believe in solving problems with new tools, not just buzzwords. This year, we introduced the "Sourcing Platform Advisory," a systematic approach backed by an in-house pre-selection tool to help companies navigate the complex procurement platform landscape. Simultaneously, we pivoted darwn.io to become a leading educational hub, demystifying the crypto landscape for experts and newcomers alike.

LOOKING AHEAD: THE ERA OF ESG & DIGITAL ASSETS

We include critical insights into the forces reshaping our industries. From the imperative of ESG regulations transforming the financial sector to the rise of digital assets, we outline how companies must adapt to meet both market and regulatory expectations.
2023 was a celebration of resilience. 2024 will be about acceleration.

MMG'S 2023 Annual Report

Strategy

In recent years, the landscape of corporate responsibility has undergone a remarkable transformation. Environmental, Social, and Governance (ESG) factors have transcended their niche status and become a fundamental consideration for governments and businesses across the globe. This shift is driven by evolving societal values, a growing awareness of ESG issues, and the tightening grip of regulatory measures. In this article, we will explore the increasing significance of ESG and how its relevance is manifesting in the financial sector, with a special focus on the rising number of regulations that are reshaping corporate behavior.

ESG considerations have swiftly climbed the ladder of importance in society. The perception of corporate responsibility has evolved, and businesses are no longer solely judged by their financial performance. Today, companies are expected to address a broader spectrum of
concerns, ranging from environmental sustainability to ethical governance.

This shift is not limited to corporate boardrooms; it is deeply embedded in the collective consciousness of consumers, investors, and governments. People are becoming more aware of ESG-related issues, pushing companies to take actions. From carbon emissions and diversity and inclusion to responsible supply chain management, ESG has permeated every facet of business operations.

Consequently, ESG is no longer a passing trend or a checkbox exercise. Every company, regardless of size or industry, must grapple with ESG challenges and, crucially, align themselves with an ever-expanding web of regulations.

The Rise of ESG Regulations and Europe’s leading role

The rise of ESG regulations is a natural progression from the era of self-regulation, which saw many companies engaging in greenwashing, a practice where they portrayed themselves as more environmentally and socially responsible than they actually were. Self-regulation proved inadequate in ensuring meaningful change, leading governments and regulatory bodies to step in.

When it comes to ESG regulations, Europe is a trailblazer on the global stage. The European Union (EU) has taken the lead in pushing for stringent ESG standards, often followed by others. Switzerland, closely intertwined with the EU market, is significantly impacted by these regulations, as Swiss companies often need to align their practices with EU standards to maintain market access. Also, the Swiss regulations are often orientated at the ones from EU.

Greenshot 2023-10-09 13.00.29.png

While ESG considerations have swept across all industries, the financial sector holds a unique position in the ESG landscape. The term "ESG" itself originated in the financial sector, showing the significance for this industry. Financial institutions, from banks to asset managers, have a dual responsibility: managing their own ESG performance and incorporating ESG considerations into their financial products and services.

Regulations are becoming increasingly stringent in the financial sector, where risk assessment now encompasses ESG factors. Financial institutions are under pressure to integrate ESG metrics into their investment strategies and products. The regulations represent a fundamental shift in how the financial sector operates and invests.

Conclusion: As regulations continue to evolve and grow in importance, companies in the financial sector must be prepared to navigate this complex landscape. ESG is no longer a choice but an imperative, and those who fail to adapt may find themselves struggling to meet
both market and regulatory expectations in the future.

Navigating the ESG Revolution: Impact on the Financial Sector and Regulatory Trends

Sourcing

In the ever-evolving business and procurement landscape, organizations face the challenge of remaining dynamic and innovative to stay competitive. This pursuit of faster time-to-market and solution-oriented approaches has given rise to the concept of “Dynamic Sourcing”. Through its agile principles, Dynamic Sourcing offers a compelling alternative to traditional procurement methods (such as RFI, RFP, e-Auctions etc.) by fostering stronger collaborations and tailored solutions. 

Dynamic Sourcing: is not just another buzzword; it represents a paradigm shift in procurement strategies. Instead of the conventional Request for Proposal (RFP) process, Dynamic Sourcing employs a Request for Solution (RFS) approach. This change introduces an effective alternative, allowing for a more fluid, iterative, and feedback-driven process. It allows organizations and suppliers to tailor solutions to your organization’s needs, versus answer an RFP, which mostly dictates the outcomes and reduces the opportunity to innovate or improve processes.  

Let's take a closer look at some of its key advantages

Embracing Supplier Expertise: Unlike traditional procurement methods, which often pre-define every detail of the future state and follow a rigid process, Dynamic Sourcing adopts a more flexible approach. Suppliers are invited to showcase their expertise and creativity, encouraged to propose the solution that best meets the organization’s needs. By providing suppliers only with basic requirements and objectives based on SMART (Specific, Measurable, Agreed, Realistic, and Time-Bound) goals, the final solution is co-created in collaboration with the suppliers.  

Empowering Solution-Driven Workshops: Dynamic Sourcing harnesses the power of iterative workshops, creating a conductive environment for innovation and out-of-the-box thinking. The process is not limited to conventional approaches but rather embraces disruptive ideas and best-in-class proposals. During solution-driven workshops, suppliers need to think beyond the obvious and come up with innovative solutions. The iterative nature of these sessions allows for continuous improvement and refinement of ideas, enabling the development of tailor-made solutions that perfectly align with the organization's needs. These workshops also play a critical role in uncovering hidden opportunities and potential risks. 

Building Stronger Stakeholder Relationships: In the past, suppliers have often been seen as external entities that are providing goods or services when asked for. However, Dynamic Sourcing transforms this relationship by fostering collaboration from the start. By involving suppliers in the co-design process, businesses can build stronger stakeholder and end-user relationships. This not only improves alignment on solutions but also creates a sense of ownership and commitment from all parties involved. 

Reducing S2C Lead Times: In the pursuit of quicker procurement outcomes, Dynamic Sourcing establishes agile processes that significantly reduce source-to-contract (S2C) lead times. These processes ensure an effective and strongly moderated sourcing journey, reducing unnecessary delays and bottlenecks. As organizations introduce Dynamic Sourcing strategies, the S2C lead time can be reduced by 20% to 50%. However, these figures are general estimates, and actual results will depend on how well an organization implements and adopts Dynamic Sourcing practices, along with other industry-specific variables such as the sourcing category. 

What are some of the limitations that organizations need to be aware of? 

Additional Resource Requirements: Adopting Dynamic Sourcing might require additional resource requirements and expertise to ensure successful implementation. Organizations may need support from professionals with experience in agile methodologies, which can facilitate the process. Often times these resources are not available internally and need to be staffed with external parties. 

Reluctance to Share Sensitive Information: In an open and innovative co-design workshop environment, some vendors may be hesitant to share sensitive or confidential information. They may fear potential intellectual property leaks or losing competitive advantage, which could hinder the collaborative aspect. To address this concern, organizations can sign NDAs, explore the possibility of anonymization or emphasize the cooperative nature of Dynamic Sourcing to suppliers. The best approach might be to communicate that the goal is to collectively create the best solutions rather than fostering direct competition among suppliers 

Mindset: To fully embrace agile procurement, organizations need to ensure that they have a receptive mindset. Teams must be willing to adapt to iterative processes, continuous feedback loops, and dynamic decision-making environment. This is crucial as it enables organizations to adapt to changing market conditions, incorporate real-time feedback, and make informed decisions promptly, ultimately leading to more agile and effective procurement outcomes. To cultivate such a mindset, organizations can implement regular training sessions, workshops, and knowledge-sharing platforms to instill a culture of continuous learning and empowerment. 

In conclusion, Dynamic Sourcing represents a significant step forward in procurement practices, but it requires a strategic and balanced approach to realize its full potential. By understanding both the advantages and limitations, organizations can make informed decisions, allowing them to reap the benefits of agility and innovation in their procurement journey. 

Revolutionizing Procurement: Dynamic Sourcing

There are many factors why choosing the right procurement platform causes such a headache for many sourcing professionals out there. First of all, the sheer number of potential software solutions is quite overwhelming. From “Full S2P Suites” to “Best of Breed Solutions” specifically for the selection process, there are so many tools available that span a multitude of categories in terms of functionalities. Comparing these providers, even with available help out there, is difficult to say the least. In addition, there is no “one size fits all” approach as tools need to be fully integrated and aligned with the organization’s processes. 

But let’s take one step backwards and ask ourselves the question: In which cases does a sourcing platform need to be evaluated and selected in the first place? 

Regardless of the rationale behind the search for a procurement platform, the evaluation process should follow a structured RFP approach, which ideally includes Proof of Concepts (PoC) or even trial periods, and must involve all key stakeholders in the process. Only then can you make informed decisions about the procurement platform that best suits your organization's needs and objectives. 

Luckily, MMG has the experience, structured approach and tools for evaluating and selecting the right procurement platform. The tried and tested evaluation approach starts with the gathering of requirements, followed by a provider pre-selection process to narrow down the short-listed suppliers. The tender process includes a PoC to fully evaluate the provider’s capabilities before actually selecting a supplier that can deliver what was promised in the evaluation process. 

But what’s that tool that you have mentioned you might ask? Well, sit tight and stay tuned for more updates in the coming weeks! 

Selection of Procurement Platforms

Now, before you start envisioning an army of robots bashing away at the keyboard, allow me to illustrate the essence of prompt engineering. In layman's terms, it's like giving your AI a nudge in the right direction, much like the way a seasoned director might guide an Oscar-winning performance 🎥

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Imagine, if you will, being at a party. You're all dressed up — your hair gelled to the nines, shoes polished to a scintillating gleam, and attitude cranked up to Mount Everest-sized charisma 🎩. You come across an introverted programmer named Alex 🤓. Now, to strike up an engaging conversation with the reluctant talker, you don't jump right in with "Yo, code-meister, how's life in the Matrix?" No, you tailor your prompt — a.k.a. your question — in a way that will evoke a substantial response. Like, "Alex, I heard you've been working on an immersive VR game. How did you overcome the spatial challenges?"

Fast-forward to working with AI — it's the same tune, different dance 💃

This is the part where I reveal my secret sauce – I set the stage by providing the AI with directives such as the tone of the article, the narrative and the word limit (because nobody wants War and Peace on LinkedIn, right?). My prompt went something like: 

Alexandra (that's my AI, a bit less introverted than Alex), write an interesting when also somewhat circular article with the title "Writing an article with AI doesn't need to be easy". The article should explain, how you wrote this very article using AI, providing the right prompts (e.g. providing the style first) to illustrate, how important and powerful prompt engineering is. The article should be entertaining to read, fun but still professional enough to put on LinkedIn, contain about 500 words and should further use the similar writing style as in ARTICLES and POSTS and should be easily understandable.

Let me just say, the result wasn't a smoothly-glazed donut at first bite. Oh no. It was more like a tangled mess of spaghetti. But, remember, AI isn't supposed to be easy! It required a lot of back-and-forth, throwing creative phrases and analogies to the AI and patiently teaching her the art of being professional, while still keeping it fun.

By now, Alexandra and I have developed our dance. She knows that when I tell her to be entertaining, I don't want her to crack AI-inspired knock-knock jokes 🤡. No, she understands that I want engaging and relatable metaphors, thoughtful witticisms, and a pinch of playful sass! And when I request for professionalism, she refrains from helter-skelter slang and sticks to a language that would make Shakespeare nod in approval 🧐.

Now, is this AI magic easy to pull off? 🤔 Not at all! Each prompt requires some forethought – considering the tone, the flow, the subject – much like spinning plates on sticks. And guess what? It makes the writing process a lot more engaging and rewarding.

So, folks, there you have it, the backstage tour of this AI-powered grand theatre. This article you just read? Yeah, it's the handiwork of a trained AI and a dash of human artistry 🎨. And while it may not always be a walk in the park, this blend of man and machine, tech and touch, is quite a thrill to behold. After all, writing an article with AI doesn't need to be easy... it needs to be interesting!

To quote an unknown philosopher (or maybe it was just Alexandra): "If the dance with AI is hard, don’t stop dancing. Just change the steps...preferably something fun with a dash of cha cha cha!"

So whether you're a seasoned AI whisperer or just plugging into the matrix, remember this – it's not about bottling the tornado, but learning to waltz with it.

Writing an article with AI doesn't need to be easy

Solution Design

Art collection has been a longstanding element of human culture, with its origins traced back to ancient civilisations like Egypt, Babylonia, China, and India. These collections were used to express spiritual and ethical values and to showcase the wealth of religions and rulers, displayed in temples, tombs, and sanctuaries. In 

 first developed among the Greeks during the Hellenistic period, which saw an increase in avid collectors commissioning works of art

 a rising trend in its use for home and garden decoration.  

However, it was only with the rise of the Roman Empire that art collecting came into its own with the creation of the art market. Modern-day collecting in the form of museums took place during the Italian Renaissance, where there was a theorisation of art collecting. Commissioning artworks and possessing vast collections were symbols of social status, erudition, and taste, and artists gained higher status and respect. In the 19th century, museums and institutions began acquiring artworks and the 20th century saw the rise of modern art movements and new art forms. Nowadays, the art market has become more accessible with new forms of art collecting, such as fractional ownership and art investment funds. 

 The blending of art and finance has opened up new and innovative ways for investors to engage with the art world. These new methods of art collecting have enabled a wider range of people to invest in and own artwork, as well as created new opportunities for artists and collectors alike. The expansion of the art market has prompted banks, wealth managers, insurance companies, and new market players to incorporate art investment into their service offerings. 

According to Deloitte Art and Finance's latest report, ultra-high net worth individuals' wealth allocated to art and collectables in 2020 was estimated at around $1481 billion, and by 2025, the projection is estimated at $1882 billion. The European market is estimated to be 24% of the market share, meaning $437bn by 2025. The growth of this market goes hand in hand with a rising demand for personalised banking services as clients require holistic and tailored solutions that adapt to their specific needs, for which art investment can play a major role. 

Art investment provides several advantages, making it an enticing asset class. Firstly, art has a history of appreciation and can offer attractive returns in the long run. Additionally, art can serve as a diversification tool, offering a hedge against traditional investments such as stocks and bonds. It also provides an opportunity to build a legacy and pass down valuable assets to future generations. Art collections can also enhance the corporate identity of companies, demonstrating their commitment to culture and the arts. Moreover, the rise in accessibility through fractionalised ownership and investment funds has made art investment more attainable for a wider audience. Lastly, investing in sustainable art can align with environmental, social, and governance (ESG) principles, allowing investors to make a positive impact while generating returns. 

The evolution of art collecting has opened new ways for people to invest in and own art. The art market has become increasingly accessible in recent years, making it possible for people to invest in artworks at various price points. Indices like Art Price make it more transparent, while art funds such as Anthea Art Investment or Artemnudi Investment Funds provide interesting proposals. There has also been a growing trend of art and technology, incorporating blockchain into art services such as 4Art Technologies. In addition, new regulated proposals are also evolving, as in the case of Artex.io, an MTF (multilateral trading facility) for art investment regulated by the FMA in Liechtenstein and compliant with MiFID II. This proposal enables investors to invest in art shares and trade as buying and selling stocks. 

However, as with any growingly-attractive market, art investment also comes with challenges, such as lack of liquidity, high cost of entry, and difficulty in valuation, storage, and maintenance requirements. For financial institutions to offer new services in this segment, it is vital to understand the market pain points and know how to mitigate risks. As such, the role of specialised management consultants is key in this new service offering, as they can support through the whole value chain, ensuring the smooth integration of art service into the banks' offering. At MMG Management Consulting, we have field experts that will smoothly help navigate this exciting field for your company, from ideation to implementation. 

The Intersection of Art and Finance: Developing Trends and Markets 

In celebration of International Women’s Day, I decided to take a closer look at the ongoing issues and challenges women face in the workplace. While we must acknowledge that much progress has been made, the message is clear: there is more work to be done.

According to the Global Gender Gap Report 2022 released by the World Economic Forum, no country has reached gender parity and it will take 132 years to close the global gender gap. The gender index and basis for the report measures equality between men and women in four key areas: economic participation and opportunity, educational attainment, health and survival, and political empowerment.

It is well documented that globally, women are underrepresented in senior positions, in certain industries and that women earn less than their male counterparts (especially true for women of colour). Perhaps lesser known is that as women move into more senior positions, the wage gap actually widens between women and men. The 2020 Swiss Earnings Structure Survey conducted by Federal Statistical Office compared salaries between male and female professionals at various levels within an organization. The study found that for lower level employees without management responsibilities, the gap between women and men was 6.87%. As the professional level advanced into more senior positions, the gap increased reaching a 16.8% gap for top, upper and middle management levels.

The same study also looked at the average overall pay gap (18%) in Switzerland (19.5% private sector, 15.1% public sector). Rather than accept this figure at face value, the study dug deeper to see if the gap could be attributed to other factors. The study found that 52.2% of the pay gap could be attributed to explainable factors such as the “endowment effect”, structural differences between the professional careers of men and women, qualifications, representation in senior positions and work in low-paying sectors. The remaining 47.8% was unexplainable and could not be attributed to any factor other than potentially discrimination. 

Lower female representation at senior levels and in certain industries (e.g., technology, engineering, finance, etc.), creates structural challenges for women. Fewer women mean fewer networking, mentorship and coaching opportunities which makes advancement more difficult. For a variety of reasons, same-sex mentorship is far more common and for many, more comfortable. For example, a male senior leader may prefer to grab after work drinks with a junior male team member instead of a female team member (and vice versa) for reasons of appearance, seemingly inappropriateness, to avoid “awkwardness” or any potential HR misconduct, etc. Affinity bias – the tendency to favour people who are similar to us - also plays into this. Senior leaders may identify with a particular junior team member because “they remind them of them when they were younger” and be more likely to provide coaching and mentorship. As a result, women are often excluded from informal networks and mentorship programs, which can provide valuable guidance and support. This can make it harder for women to navigate the workplace and develop the skills and connections needed for success, further perpetuating the issues.

Company policies and support could help address this networking and mentorship deficiency for women. Group, team or department organized social events offer the opportunity for all team members to interact in a group setting where it is expected that team members of all levels and genders mingle. This could help avoid seemingly awkward 1:1 networking and provide the opportunity for junior and senior team members to interact. Internally assigned mentor-mentee relationships based on seniority and career pathing could offer both men and women opportunities to learn and develop with the support of a more senior colleague. There are also increasing numbers of external networking organizations geared toward helping aspirational women build a network with other likeminded women. There is often a membership fee and perhaps some events which take place during working hours. In recognition that women are more challenged to build a supportive professional network (particularly with senior leaders, and particularly in certain industries), companies could support (financially, allowed worktime) female employees to participate in such groups.

Along the same lines, company policies and pay structure could bring salary alignment between women and men. Wage matrices could be designed to include salary bands for various positions with defined parameters (e.g., tenue, experience, education, performance, etc) for wage construction. This could then be supplemented by annual salary reviews by management and/or HR where the salaries of like employees are compared (and adjusted as needed) to ensure fair pay. Alternatively, companies could be transparent with salaries of all employees so that each person knows the salaries of their colleagues (and speak up if an unexplainable delta).

Another aspect of underrepresentation and disproportionate ratios of men in certain industries and in hiring/senior roles, is that it can make it more difficult for women to access and obtain the job in the first place. Male dominated industries may see higher rates of male referrals by male employees – a self-perpetuating issue. In the absence of suitable referrals, a slew of biases can also impact hiring decisions. For example, hiring managers may seek out or opt for candidates who are similar to them (affinity bias) or believe that men are better suited for the industry or role (performance bias).

Another significant bias which can impact hiring and promotion decisions is the maternity/maternal bias. Maternity bias includes the tendency to be wary of (or avoid) hiring, promoting, or offering opportunities to women due to fear that they will take maternity leave as well as the tendency to assume that women with children are less committed to their jobs and careers. Biologically disadvantaged in this respect, maternal bias can lead to discrimination against women by having preference for male candidates where this bias is non-existent. Additionally, when women take time off to have children, they may be discriminated against and find it harder to be offered new opportunities or be promoted because of this. 

A potential solution could be that equal-time parental leave is mandatory for both parents. This would eliminate the one-sided bias related to women since it can be expected that any/all parents would require leave as they start or grow their family. This however, does not address the fear that women with children would be less career-focuses and oriented. Though, perhaps if both parents take leave together, they grow as equal co-parents instead of the stayed-home parent becoming the primary caregiver and alpha parent. Studies have shown that at all levels, women are more likely than men to be responsible for most or all of their family’s housework and caregiving. Perhaps if male partners assumed more responsibility at home, they would be less inclined to assume a women would be more family-focused and less career-focused after kids. Though, the inclination to believe women after children are less career-focused is a core challenge of maternal bias and cannot be stated as fact. 

In attempt to address underrepresentation and the vast issues stemming from this one issue alone, many governments and companies have resorted to diversity quotas (target participation levels for underrepresented groups). While the need for and effectiveness of diversity quotas is a topic of debate, it cannot be ignored that diversity quotas have resulted in more women in leadership roles.

Proponents of diversity quotas argue that they can help to address the systemic barriers and biases that have historically limited women's access to leadership positions and other opportunities. By setting targets for the representation of women and other underrepresented groups, organizations can signal their commitment to diversity and inclusion and prioritize efforts to address gender imbalances. This can help to increase the pool of qualified female candidates and create a more level playing field for women in the workplace.

Opponents of diversity quotas argue that they can be viewed as tokenistic and may actually perpetuate stereotypes and biases. Quotas may lead to the perception that women are being hired or promoted simply to meet a target, rather than on the basis of merit. This can create resentment among employees and may lead to a backlash against diversity efforts. Additionally, some argue that quotas can undermine the principle of meritocracy and may actually harm the career prospects of women by perpetuating the perception that they are not as qualified as men.

In direct contrast to this argument that women are being promoted for diversity rather than merit, a 2017 study by McKinsey found “a strong correlation between the presence of women in company top management and better financial results”. The study analyzed 300 companies around the world and found a difference in return on equity of 47% between the companies with the most women on their executive committees versus those with none, and a 55% difference in operating results. Certainly such outcomes can only be attributed to qualified individuals bringing in new perspectives and ideas and not quota-filling placeholders.

Quotas seem to support women moving into more senior roles, but the biases and stereotypes still cause friction. In addition to the already discussed challenges and biases, women are also faced with gender biases and stereotypes, approval biases and performance biases. Women are often subject of subtle forms of microaggression or sexism, such as being talked over in meeting, having their ideas dismissed or having their success attributed to diversity. Stereotyping and performance biases lead to the assumption or belief that women are less capable or less interested in certain topics, fields or positions and that the abilities of men are superior. Complicating matters further, when “male characteristics”, such as being assertive, competitive, or self-confident, are exhibited by women, those women may be met with disapproval from colleagues and team members. 

Presumably, the ideal scenario is that diversity quotas do not exist because they are not required – all groups are fairly represented without quotas. However, this has historically not been the case: a quick glance at past and present shows a very different picture for women in the workforce (in terms of representation) pre and post quotas. While fair representation is still underway, it is clear that something needed to change, and quotas seemed to be the best option. 

In terms of sexism and stereotyping, the solution here is simple but implementation requires significant reframing. We need to move past the antiquated notions of gender roles. Good ideas, career ambitions and skill are not gender specific. It is important that all colleagues are treated fairly and managers should ensure all team members have the opportunity to have their voice and ideas heard. 

Finally, an easily overlooked challenge is the “no bias bias” (or meta-bias). This refers to the idea that people may believe that they are unbiased and treat everyone equally, but their actions and decisions may be influenced by unconscious biases. This bias can be particularly hazardous as it can take the form of any or all of the biases, but the individual is unaware. Likely, this is also an incredibly common state.

While not an exhaustive list, it should be clear that there are many ongoing issues and challenges for women in the workforce. The issues are global, complex and multifaceted with no simple, perfect solution. Understanding and recognizing that these issues persist, acting as an agent for positive change and intervening discriminatory thoughts or actions is critical in closing the gender gap. By working together, we can create a more equitable and inclusive world for all.

The Global Gender Gap: Challenges for women in the workforce

Implementation

ZURICH, FRANKFURT, February 22, 2022 - MMG Management Consulting, the specialized management consulting boutique for Financial Services, Digitalization and Strategic Sourcing and METIS Management Consulting, which serves its Capital Market clients in the areas of IT & Business Alignment, IT Strategy and Program Management announce their affiliation to become the leading Capital Markets Consulting boutique in the DACH region.

The emergence of new technologies and new asset classes has led to the rise of Fintech and other start-ups offering various products and services across the capital markets value chain. In addition, the increasing acceptance of digital assets, in general, and crypto currencies has led to a wave of collaborations to facilitate trade and post-trade services for the new digital asset classes.

This has impacted capital markets with many functions being challenged - if not disrupted - by these technical advancements, often led by rather non-traditional start-ups and Fintech. In addition, regulators have put digital assets and respective services at the top of their agenda, proposing legislation for a more transparent and regulated digital asset market, signaling a more permanent place in the financial sector.

To address the evolving industry needs and establish a comprehensive view of the future market, MMG Management Consulting and METIS Management Consulting have entered a strategic and associated partnership to provide end-to-end consulting services across the entire value chain. This cooperation combines complementary competencies in the areas of Capital Markets (Pre-Trading, Trading, Clearing, Settlement & Custody, Regulation), Information Technology IT-Strategy, IT-Management, IT-Sourcing, IT-Regulation) Program Management (Execution, Distressed Project Recovery, Auditing).

“We are very excited to have established this partnership with METIS Management Consulting” said Ali Mahmoodian, Head of Banking and Capital Markets at MMG. “The extended pool of industry & functional experts allows us to jointly address the vast market opportunities in the DACH region. In addition, with METIS, we get access to the vibrant and innovative German market, not only with our consulting services but also with our newly announced and highly regarded digital asset platform darwn.” said Mahmoodian.

“We are very delighted to be associated with MMG Management Consulting and are looking forward to a mutually fruitful cooperation for the best of our clients. It is our joint goal to leverage and expand our intellectual capital and with our combined forces to enhance service offerings and delivery capabilities.” said Andreas Bornemann, Co-Founder and Managing Partner at METIS Management Consulting.

MMG Management Consulting is a technology-driven management consulting boutique specialized in sourcing, digitalization, and banking services, dedicated to addressing performance and efficiency by implementing emerging technologies in matured industries as well as mature technologies into traditionally conservative industries.

Within the financial services and banking industry, MMG combines a strategic approach with deep industry expertise driving performance improvement and innovation by fostering digitalization, distributed ledger technologies and artificial intelligence.