The pressure on organisations to renew their business models continues to increase due to megatrends such as climate change and technological disruptions. These trends constantly challenge companies to reassess their operational strategies. Our 28th CEO Survey reveals that approximately four in ten CEOs doubts the sustainability of their current business model. As a result, many have taken actions in recent years that impact their revenue model. The survey further indicates that CEOs are seeking opportunities in other sectors, with nearly forty percent having entered new markets in the past five years.
However, merely refining or optimising existing business models will often no longer suffice. The focus must shift from transformation to reinvention. PwC research demonstrates that organisations are rewarded for this approach. If a company changes the way it generates revenue, serves customers, or delivers new products or services, it is more likely to achieve productivity growth.
38%
of CEOs have entered new sectors in the past five years.
42%
of CEOs doubt the long-term sustainability of their businessmodel.
38%
of CEOs have significantly renewed their products and services in the past five years.
Business model reinvention helps you to radically transform the ways your business creates, delivers, and captures value. To address near-term imperatives while gearing up for long-term megatrends.
We collaborate closely with organizational leaders to map out plans that drive towards value creation and growth. Our focus is to use our human-led, tech-powered capabilities help you reinvent your business model, radically transform how you create, deliver, and capture value.
With our broad and deep expertise, we offer solid processes for business model reinvention, specifically tailored to different industries. Our focus lies on the following five areas:
The end-to-end transformation of traditional products and assets to an on-demand subscription or consumption-based service model to change business from “one-and-done" customer interactions to recurring customer relationships
Software-enabled assets that users can interact and transact with without requiring a physical form, allowing organizations to expand their addressable markets, better customer experiences and gain more customer loyalty
Transitioning analog or digital products into connected physical products to enhancing customer experiences and gathering valuable data for personalized marketing and product development
Engage in an ecosystem/platform play to unlock new revenue streams, increase valuation, drive increased customer loyalty and increase business agility
The creation of new channels to effectively engage new and existing customers to increase control over distribution, reduce costs and provide direct access to customers
Research by PwC shows that in various sectors the pressure to reinvent business models has increased in recent years.
If a company changes its business model, the chance that it will also realise productivity growth increases. This is evident from research by PwC.
A practical guide for reimagining how your company creates, delivers, and captures value.
Business model change can have a positive effect on profit margin. The key to amplifying that effect may be developing new products and services.