Over 40 percent of CEOs globally are at least somewhat concerned about their current business model, a fact made more disconcerting given 74 percent are also concerned about new competitors disrupting their business model. The reality is the world has changed. The pace and magnitude of disruptive forces might vary by industry, but almost all companies need to reconsider what they do and exactly how they do it.
In a world full of market disruptions, sticking to the status quo might be the most risky decision of all. Tactical and incremental change is likely not enough for a company to defend its existing market position or take advantage of strategic opportunities. Instead, companies need to completely rethink what business they are in and what it will take to be successful. “Tactical change or incremental strategy is often insufficient to position the company to defend its market positions or take advantage of many new opportunities,” says Nick Griffin, Global Head of Strategy. The challenge is that many CEOs (71 percent) believe their company will be largely the same in three years, while only 29 percent believe they are likely to be transformed into a significantly different entity.
“Maintaining the status quo, while it’s incredibly comfortable, is the most risky thing you can do in today’s world. I think, going forward, transformation ultimately becomes really the synonym for management,” says Mark Goodburn, Global Head of Advisory.
Additionally, when it comes to innovation – a key component of transformation – only 44 percent of global CEOs believe they have a fully developed process for innovation across all their business units. This suggests there is significant room for companies to grow and evolve, regardless of where they are today.
To be successful, transformation and innovation need to revolve around what’s important: customer value. But how do you know whether you’re providing the value your customer wants and needs? This is where data and analytics can play a key role. By harnessing new technologies and capabilities, CEOs can use data and analytics to find out more about their customers, develop tailored growth plans, manage risks and reduce costs.
Almost 50 percent of CEOs believe they need to improve their use of data throughout their organization. Fortunately, businesses undergoing transformation have a great opportunity to embed an enterprise-wide data and analytics strategy across their organization so they can use information in addition to new ways of doing business to leap ahead of their competition.