PwC research finds the top 20% of companies today outperform their peers by 13 times, based on a measure of profit margin and revenue growth. See how your company stacks up by selecting the responses that best fit your organization.
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We’ve split your results into three areas of focus:
Top companies go where the money is by investing in the business model reinventions needed to participate in ecosystems.
Top companies go API-first and use advanced technology to make decisions, harnessing managed services to close capability gaps.
Top companies take an always-on approach, responding to new opportunities and threats with transformative investments.
Congratulations! Your company is almost certainly performing highly in the crucial areas of management practice and company investment that our research measures. Chances are you’re faster to market, more agile, and more innovative than your peers—with the elevated financial performance to match. But beware the “topple effect,” which can cause leading companies to lose their position in a volatile and quickly changing world. You can maintain your company’s winning status by keeping a careful eye on emerging (and often climate- or tech-driven) threats and opportunities. You should respond to them with transformative investments in your business and operating models—and in the technology that’s crucial for both.
Companies like yours tend to be solidly focused on external opportunities, such as participating in business ecosystems, and on the business model innovations that support them. But you may be underinvesting in your operating model. In a world where no company can go it alone, you are going it alone—and you might be falling into one of two traps: (1) being spread so thin you’re not able to focus on what your company does better than others; (2) having the right degree of strategic focus (and support from managed services partners to handle everything else) but not investing sufficiently in the tech that would help you achieve cloud nativity, become API-first, or make data-driven decisions.
Your company may intend to address growth opportunities in business ecosystems, and even have a sophisticated understanding of how third parties (such as managed services partners) can help you do so. Where you may be falling short is in the transformative efforts needed to carry out your plans, including in cloud and the other technologies that are required to level up your operations. Your task? Invest in top-to-bottom, back-to-front transformation to boost your performance.
Companies like yours know how to execute. And it’s likely you’ve made the tech transformations necessary to level up your operating model. But your business model may be losing relevance if you lose sight of where the value is being created and where it’s headed in the future. Perhaps your executive leadership team fails to recognize or act on opportunities and threats emerging from business ecosystems. By getting a better handle on how value pools are shifting—and the business model changes you need to address those shifts—you can seize considerable revenue opportunities.
Your company may have recognized how value pools are shifting and emerging, due to changing technology and the rise of business ecosystems. But you might still be overlooking the ways you need to rapidly level up your business and operating models. More difficult still, companies like yours are investing in transformation—they just don’t have much to show for it yet. By connecting your transformative investments with a strategic view of threats and opportunities, you can pinpoint areas in your business and operating models where transformation will offer the highest return.
Time to get cracking! Companies in this category have yet to make progress against any of the performance drivers that our research identifies. Perhaps your top executives or board are complacent; they may be thinking, for instance, that barriers to entry in your industry are so high that your company can carry on as is. Or maybe your company’s income is so deeply in the red—and your balance sheet so deteriorated—that you can’t sustain investments in tech or in other forms of transformation. First, you’ll need to staunch the bleeding, followed by a careful turnaround that allocates the available resources to greatest effect—and does so on the double.
Global Advisory Thought Leadership, Managing Director, PwC US
Tel: +1 458-262-7803
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