The results of PwC's 28th CEO Survey show that more and more CEOs have implemented innovations within their organisations over the past year with a long-term perspective in mind. These measures mainly involve developing new products and services. According to the CEOs surveyed, the vast majority of revenue still comes from their core business, however, with just seven percent from new and different activities.
'It is understandable that CEOs remain somewhat hesitant about making drastic changes,' says Veronique Roos-Emonds, member of the board of PwC Netherlands. 'Already facing many short-term challenges, such as inflation, regulatory pressures and geopolitical conflicts. It is difficult to make choices and significantly invest in transforming their companies.'
Companies that choose to change are rewarded for it
That said, Roos-Emonds sees companies gradually starting to take action and reaping the rewards. 'They are indeed innovating in small steps and exploring new markets. The trend of seeking new opportunities in other sectors is becoming increasingly evident. Nearly forty percent of the CEOs surveyed indicate that they have ventured into new sectors. I find that a high percentage. Companies that take such actions see an increase in profitability. This outcome is also consistent with previous PwC research on the relationship between changing business models and productivity growth.'
CEOs still searching for the right paths for innovation
Based on the findings of the 28th CEO Survey, Roos-Emonds speaks of 'a positive development when it comes to innovation. CEOs all recognise the need to keep innovating in order to remain relevant. Strategic discussions about changing relevance and impact on the business model are regularly taking place in boardrooms, demonstrating that companies are thinking about their future. They are still currently looking for the right paths and our advice is to at least make a start. Innovate in small steps, develop ideas and test them before scaling up.'
PwC's 28th CEO Survey
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