Data Source PwC
1. CEOs emphasize the need to reinvent.
More than a third (34%) of CEOs say that the average competitor in their industry will be out of business within three years if it doesn’t change its business model.
2. The overall business risk landscape appears to be intensifying.
The most serious risks to executives are familiar — cyber attacks, an uncertain macroeconomic environment and the US regulatory environment – and they’re all up from August 2023. Executives cite the cost of adopting new technology as the top challenge, with 42% saying it’s a significant challenge.
In the current business environment, US companies need to transform — repeatedly and holistically — or risk falling behind.
In PwC’s latest Pulse Survey, business executives understand what’s at stake, and they believe they have what they need to reinvent.
But the data also signal some red flags. Business executives broadly agree on their company’s future vision, but they also believe there’s significant misalignment about how to get there and even how long it will take. This gap in alignment can be a critical factor in your company’s survival or failure.
Meanwhile, almost all companies must deal with a riskier business environment and roadblocks to reinvention. Still, many recognize the need to change how they create, deliver and capture value, and their leaders are looking ahead to fully reinventing their business models.
34%
of CEOs say that an average competitor will be out of business within three years if it doesn’t change its current business model
Operating model transformation and business model reinvention are both strategic initiatives aimed at driving organizational change and improving performance, but they focus on different aspects of a business and have distinct objectives.Operating model transformation involves making changes to how a company operates internally to improve efficiency, effectiveness and agility. Steps may include the redesign and optimization of your organization’s operational processes, structures, capabilities and technologies. Business model reinvention, on the other hand, focuses on reimagining and transforming the fundamental way a company creates, delivers and captures value. It involves making significant changes to the core elements of your business model, such as target customers, value propositions, revenue streams and strategic relationships.