Key Finding
Business leaders predict that by 2026, half of their revenues will come from products, services, or businesses that haven’t yet been created
Extract from McKinsey Global Report 2021 : McKinsey & Company, Compiled by ED India
Who was surveyed ?
The online survey was in the field from July 6 to July 23, 2021, and garnered responses from 1,178 C-level executives, senior managers, and business-unit, department, or division heads representing the full range of regions, industries, company sizes, and functional specialties. To adjust for differences in response rates, the data are weighted by the contribution of each respondent’s nation to global GDP.
Why new businesses ?
In contrast to an only M&A or Corporate Venturing strategy, new business building makes the most of the core of an organisations existing capabilities and assets to create separate but linked businesses offering new products, services or business model….
The more new businesses you build the better you get at building them….
ED India : In our context, the more new eB2C and eB2Bbusinesses you open up with all our products the stronger your core becomes
Customer Experience
Successful business builders track the customer experience more holistically rather than focus on customer usage metrics
Successful business builders also use more holistic customer related metrics—such as customer surveys, feedback panels, diary studies, and ethnographic field studies—relating to customers’ experiences throughout their decision journey
ED India : It doesn’t matter how many customers you can count on your database, what matters is how many customers can count on you for the promised experience
New Revenues
The urgency for building new businesses directly reflects survey respondents’ belief that today’s products and services will be insufficient for addressing disruptions and meeting a sustainable future.
More than 80 percent of respondents say new-business building will help them respond to disruption and shifts in demand, while 62 percent of respondents are prioritizing new business building to generate one or more new revenue streams
ED India : May sound like a paradox, but sustainability and disruption seem to be the two dimensions of growth we need to be prepared for in the near future
