In boardrooms around the world, senior executives are discussing a common dilemma: how to create transformative experiences and business models that improve their customers’ lives, drive growth, and boost profitability and efficiency.
Regardless of industry or location, businesses are facing a new world. By 2026, the average Standard & Poor's 500 business will last just fourteen years. The average business model is sustained for roughly half that: just six years. What was once a landscape of five-year strategies, long-lived information technology (IT) investments, and product line extensions is evolving into a rapid series of digital business transformation initiatives, platform thinking, and customer experience. The continued evolution of digital capabilities is pushing businesses to rethink their fundamental views on customers, competitors, products, and partners.
For most companies, the strategic imperative should not just be doing things right, more efficiently, or optimally. Leaders must also determine the right things to do. Now is the time to reflect and consider the fundamentals of value creation in the business – to go beyond the immediate, incremental change. How are you serving your customers? Where do you want to fit into their lives? Are your traditional ways of generating value sufficient?