McKinsey Solutions, the data analytics and software unit of strategy consultancy McKinsey & Company, has recently acquired two companies: Germany-based 4tree and US-based VisualDoD.
Last month McKinsey Solutions unveiled that it had purchased 4tree, a German Big Data solution company serving retail, fast moving consumer goods and B2B industries. 4tree, founded in 2010 by Sebastian Hanhues and Daniel Hagemeier, supports clients across three key disciplines: retail analytics expertise, best practice statistical algorithms and highly efficient IT. With the acquisitions, McKinsey Solutions taps into the growing market for analytics-driven support in the retail landscape. A recent study by the firm for instance showed that brands with greater digital capabilities are able to convert sales at a rate 2.5 times greater than those with lower capabilities.
As part of the deal, 4tree has been integrated into McKinsey’s Periscope unit – a suite of solutions and services founded in 2007 that optimises the effectiveness of sales & marketing efforts – and rebranded as Periscope Customer Insights Solution. The acquired team will continue to operate out of its existing office in Muenster, Germany, working together with McKinsey Solutions globally (the European headquarters is based in Belgium) and McKinsey’s seven offices in Germany*.
“Companies are always seeking a better understanding of how customers make purchasing decisions with the range of products, prices and promotions available to them. 4tree allows us to integrate customer data at scale and generate actionable insights fast enough to enable dynamic assortment, pricing and promotions,” comments Brian Elliott, CEO of Periscope. Hanhues, who now serves as General Manager of Periscope Customer Insights Solution, adds: “We very much look forward to bringing together our leading edge IP and innovation in Big Data Management to Periscope’s growing portfolio of commercial transformation capabilities, enabling success for organisations on a global scale.”
Last week McKinsey Solutions added another team to its portfolio: VisualDoD. The Reston, Virginia (US) based firm was founded in 2012 by Michael Cadenazzi, and specialises in defence market software development and consulting. The firm’s proprietary product, the VisualDoDTM software platform, allows leaders in the defence industry to optimise their operations through the automation of analyses and visualizations, enabling real-time insights. The entire team of VisualDoD have joined McKinsey, with the product now part of McKinsey Solutions.
“I am very excited to step onto this new path,” says founder Cadenazzi, adding “this milestone extends VisualDoD’s commitment to delivering exceptional services. Our clients will benefit from the integration of our best-in-class analytics platform with McKinsey’s preeminent and unparalleled expertise in the global aerospace & defense space.” A survey by McKinsey’s Defence practice earlier this year revealed that optimism is returning in the industry, with largest growth in spending expected in Asia-Pacific and the Middle East.
The acquisitions build on two previous deals – in April this year McKinsey Solutions bought SATMAP (a North American software specialist that provides contact center technology) and late last year it agreed an alliance with Eversight, a provider of cloud-based sales and marketing services.
* McKinsey offices in Germany are based in Berlin, Cologne, Dusseldorf, Frankfurt, Hamburg, Munich and Stuttgart.