McKinsey published some important research in August last year showing which types of corporate strategy and business models - in response to digital disruption - were the most (and least) effective.
The best strategy, they said, is to take an 'offensive' approach, based around a 'platform strategy' that focuses on the demand-side, rather than the supply-side.
Unfortunately, of the 2100 global senior execs they surveyed, very few (hardly any) are doing this. As you can see from the chart below, the vast majority of companies (85%) are still in defensive mode, trying to keep up with new entrants and traditional peers and the heightened expectations of customers.
This strategy is an 'arms race' that actually leads to a decline is growth rates.
A bold, 'offensive' corporate strategy that successfully incorporates platform strategy to add value to customers in new ways delivers much, much better results. Yet, less than 2% of those surveyed are doing this.
This was one of the reasons I created the New Growth Playbook, a new online video based course for senior executives that provides (for the first time, I believe) an holistic guide on how (in practice) companies can transform their business models using platform strategy.
My own research supports McKinsey's view that the slowness of incumbents in adopting new platform-based business models - particularly in Europe - is due (in part) to the perceived difficulty of transforming legacy IT, culture and operational processes. Is it worth the hassle?
But, in conversation with many CxO's over the last few months (and increasingly Chief Digital Officers who are trying to drive business model change), it's also clear that there isn't a common language or roadmap for this new type of transformation.
Everyone has a different idea of what a 'business model' is, what a 'platform-based business model' is, and why, when and how to implement one. (Actually there are 10 types of platform strategy that a company can adopt).
The (Netflix style) course I've created addresses this problem and provides a clear 'New Growth Playbook' that:
Do take a look: www.newgrowthplaybook.com
Join our mailing list to receive the latest news and updates from our team.
Don't worry, your information will not be shared.