Growth, which accounts for 60% to 70% of shareholder returns in the medium term, has plateaued in traditional markets. Almost 70% say their company does not prioritize its investments well in executing digital transformation programs.Ĭritically, the fundamental drivers of both superior current performance and sustainable competitive advantage are changing because growth opportunities and the capabilities required to win in new markets are shifting. Almost 85% cite cumbersome coordination with vendors, and 74% believe their company is implementing cookie-cutter solutions. And while 60% of companies worldwide are planning to increase their 2023 digital investments, compared with their allocations in 2022, BCG research shows that many if not most CEOs are frustrated by poor business cases, increasing demands for significant capital expenditures, and unclear realized value for the business. Current cost pressures add to the challenge. The leaders, for their part, have created $9.3 trillion in shareholder value in the past five years.īCG’s latest research provides a compelling and pragmatic blueprint for how CEOs can propel their companies to the front of the pack by accelerating and de-risking their change agendas to rank among the winners.Įvery CEO faces the challenge of meeting investors’ expectations for current performance while dealing with myriad other issues such as rising interest rates, supply chain shortages, geopolitical tensions, cybersecurity risks, and activist investors. Their financial and nonfinancial performance is dramatically superior to that of companies still playing by the old rules, which, as a result, face an existential threat. They have mastered the ability to realize business value from their digital and data investments, avoiding the trap of lengthy IT projects with large cost overruns. We detail what they are doing to pull ahead and offer a playbook for catching up.īy Amanda Luther, Romain de Laubier, Saibal Chakraborty, Dylan Bolden, Sylvain Duranton, Tauseef Charanya, and Patrick ForthĪ select group of leading companies have cracked the code for winning in a world defined by digital engagement, embedded artificial intelligence (AI), and low-emissions products, processes, and supply chains. These leading companies are built for the future. Two-thirds of the value created comes from revenue growth. The winners are widening the gap with their competitors and generating shareholder returns almost three times greater than those of the S&P 1200.These future winners share a common set of six attributes that enable them to outperform, to be more resilient to shocks and disruptions, and to exploit innovation faster for value-creating growth. A small number of companies have built winning capabilities and broken away from the pack.The action has shifted to new markets, including those created by technology disruption, such as e-commerce, streaming media, cloud-based interactions, mobility solutions, and smart energy solutions. Growth, which accounts for 60% to 70% of shareholder returns in the medium term, has plateaued in traditional markets.The fundamental drivers of superior current performance and sustainable competitive advantage are changing because growth opportunities and the capabilities required to win in new markets are shifting.
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