A new roadmap for accelerated business performance transcript
Accelerating performance: What top companies get right
Julien Courbe, Deputy Global Advisory Leader, PwC United States
Do you know what the world's top performing companies do better than the rest? And not just a little bit better. A whole lot better.
The top 20% of companies today do 13 times better than their industry peers based on the combination of profit margin and revenue growth. We've actually figured out how. It’s not a magic bullet—or a secret sauce. But a distinctive approach to three layers of their business. The business model, the operating model and the technology model that underpins both.
Within their business model, winning companies prioritise participation in ecosystems— looking outside of their walls to seek larger value pools, bigger problems to solve, and greater opportunities for innovation. To deliver that business model, they are transforming their operating model through managed services. And that's not just outsourcing the back-office for cost savings, but partnering to close capability gaps and gain strategic advantage. In turn, that's all powered by transforming the technology model. We’re not talking about the digitising of existing processes. This is using tech to completely reimagine how their business operates—from better use of data in decision-making, to platform integration that reduce friction with service and ecosystem partners.
Optimising any of these three layers is likely to drive incrementally improved performance.But when companies combine an always on transformation of their business operating and tech models. The result is radically improved performance.
Leaders can start by making mutually reinforcing investments across the three layers. For example, at the tech layer, the top performers are going cloud native, underpinning their whole tech stock with cloud based programmes. Not just migrating a selection of operating functions and processes, all to transform business and operating models. They are using advanced data analytics to inform senior executive decision making, and they're connecting and integrating services through APIs, which reduce friction and make it easier and cheaper to do business with outside parties like their managed service partners and ecosystem allies.
Having lowered those transaction costs, the top performers reinforce their transformation with even newer technologies like AI. Now they are better able to capitalise on data and insights to deliver better outcomes for their customers, their people and society. The positive feedback loop from all this looks something like this, and that's how you join the top 20%.
