1、 2023 Boston Consulting Group1A select group of leading companies have cracked the code for winning in a world defined by digitalengagement,embedded artificial intelligence(AI),and low-emissions products,processes,and supplychains.They have mastered the ability to realize business value from their d

2、igital and datainvestments,avoiding the trap of lengthy IT projects with large cost overruns.Their financial andnonfinancial performance is dramatically superior to that of companies still playing by the old rules,The New Blueprint for CorporatePerformanceBuild for the FutureAPRIL 04,2023 By Amanda

3、Luther,Romain de Laubier,Saibal Chakraborty,Dylan Bolden,Sylvain Duranton,TauseefCharanya,and Patrick ForthREADING TIME:15 MIN 2023 Boston Consulting Group2which,as a result,face an existential threat.The leaders,for their part,have created$9.3 trillion inshareholder value in the past five years.BCG

4、s latest research provides a compelling and pragmatic blueprint for how CEOs can propel theircompanies to the front of the pack by accelerating and de-risking their change agendas to rank amongthe winners.The Changing Basis of AdvantageEvery CEO faces the challenge of meeting investors expectations

5、for current performance whiledealing with myriad other issues such as rising interest rates,supply chain shortages,geopoliticaltensions,cybersecurity risks,and activist investors.Current cost pressures add to the challenge.Andwhile 60%of companies worldwide are planning to increase their 2023 digita

6、l investments,comparedwith their allocations in 2022,BCG research shows that many if not most CEOs are frustrated by poorbusiness cases,increasing demands for significant capital expenditures,and unclear realized value forthe business.Almost 85%cite cumbersome coordination with vendors,and 74%believ

7、e their companyis implementing cookie-cutter solutions.Almost 70%say their company does not prioritize itsinvestments well in executing digital transformation programs.Critically,the fundamental drivers of both superior current performance and sustainable competitiveadvantage are changing because gr

8、owth opportunities and the capabilities required to win in newmarkets are shiing.Growth,which accounts for 60%to 70%of shareholder returns in the medium term,has plateaued intraditional markets.The action has shied to new markets,including those created by technologydisruption,such as e-commerce,str

9、eaming media,cloud-based interactions,mobility solutions,andsmart energy solutions.Growth opportunities are expanding in areas related to the energy transitionand low-emission technology as well as in gene therapy,the metaverse,and quantum computing.Many incumbents struggle to justify investments in

10、 these disruptive new opportunities and,instead,only make incremental investments in their current businesses(or they invest in the wrong areas).Since they lack the capabilitiesthe talent and processesthat are required to access the newmarkets and gain advantage with AI and other technologies,their

11、futures are bleak.Growth will slowand insurgents will target their profit pools.Meanwhile,a small number of companies have built winning capabilities and have broken away fromthe pack.They have found a way to invest not only in smart technology but also in their people,processes,and culture to reali

12、ze value from their investments.For example,when investing in AI,thesecompanies have adhered to the 10-20-70 rule:10%of the effort lies in building an adequate AI model;20%involves making high-quality data available;and 70%focuses on people,developing new businessprocesses,and transforming the way b

13、usiness functions operate.Equally,these companies are 2023 Boston Consulting Group3addressing the rapidly changing skills mix required to win in new growth markets.For example,consider the skills that will be needed for generative AI.A new study from Goldman Sachs suggeststhat this technology could

14、expose 300 million jobs to automation worldwide.At the same time,newtechnologies will create many other jobs.These companies understand such shis and are planningfor the future.These future winners share a common set of attributes(six,to be exact)that,regardless of their sector,underpin their succes

15、s.These attributes enable them to outperform,to be more resilient to shocks anddisruptions,and to exploit innovation faster for value-creating growth.They are widening the gap withtheir competitors and generating shareholder returns almost three times greater than those of the S&P1200,with two-third

16、s of the value created coming from revenue growth.These leading companies arebuilt for the future.A clear blueprint,or playbook,has emerged for how to become a company that is built for the future.The blueprint reconciles the challenge of what these companies need to do(identifying which initiatives

17、drive the most value by sector)with how to do it(determining which capabilities drive success and howto build them fast).CEOs can tailor this new playbook to their company-specific change agendas.Hereare the details.Performance,Advantage,and the Six Attributes ofSuccessAgainst this backdrop,CEOs nee

18、d to strengthen their companies competitive advantages,the basis ofperformance for the future.In the past,advantage derived from structural differences,such as scale,that oen can be replicated and neutralized.The new bases of advantage are rooted in superiorcapabilities,especially those related to d

19、igital,AI,and innovation.These capabilities are more difficult to establish but much more enduring for two reasons.First,technologies themselves are evolving rapidly.So,for example,companies that have built capabilitiesaround data and analytics can ride the wave as AI algorithms become more sophisti

20、cated and bettertrained and the companies deploy further innovations around new developments(such as generativeAI).Second,companies that have these capabilities benefit from a flywheel effectthey can invent,deploy,adapt,and reinvent more quickly and with greater impact than their competitors can.The

21、yalso get better at cocreating with customers and ecosystem partners and at democratizing the use ofdata throughout their organization.BCGs latest research,capping three years of empirical study of digital transformations and thechanging nature of competitive advantage,offers the blueprint CEOs are

22、looking for.(See“About OurResearch.”)The new research reveals the attributes,or groups of capabilities,that best correlate withsuperior current performance and future advantage.Six specific attributes are endemic to companies 2023 Boston Consulting Group4that are built for the future and enable them

23、 to move into new high-growth markets that are beyondthe reach of less-capable players:BCG has been researching the successand the causes of successof digitaltransformations for the past three years.This work led to several previouspublications:In the latest phase of our study,we undertook a systema

24、tic and forensic analysis ofmore than 100 BCG-supported digital transformations and supplemented this analysiswith external research among 725 executives at companies that have undertakendigital transformations.The combined data set covers all geographic regions,industrysectors,and types of digital

25、transformation.Our latest survey asked all participants about five areas that are fundamental tosuccess,the emphasis of transformation efforts,how successful they have been,andLeadership that is aligned around a corporate purpose that integrates sustainability and socialimpact goals,building trust a

26、nd transparency among stakeholdersA clear people advantage to attract,retain,and develop world-class talentAn operating model that enables agility and resilience to combat exogenous risksAn innovation-driven cultureA decoupled data platform and flexible,scalable technology platforms and applications

27、 tofacilitate data access and to support business needs easily and flexiblyFully embedded AI that can create value for the organizationABOUT OUR RESEARCH“Flipping the Odds of Digital Transformation Success,”October 2020“Performance and Innovation Are the Rewards of Digital Transformation,”December 2

28、021“The Rise of the Digital Incumbent,”February 2022“Are Digital Natives Losing Sight of the Digital Basics?,”November 2022 2023 Boston Consulting Group5the degree to which each of more than 50 potential influencing capabilities were inplace.(See the exhibit.)We then used the resulting data set to a

29、nalyze whichcombination of capabilities,if built sufficiently well,had the biggest impact on futurereadiness and which combination differentiated future-built organizations from thosefacing greater risk of disruption.Six attributes emerged from this analysis and,in ourjudgment,serve as the best desc

30、riptors for leading companies.To determine the most effective combination of critical capabilities,we conducted amultivariate analysis of the full list of potential influencing factors.We employed amultivariate linear regression approach,run using the R programming language.Allinput capabilities wer

31、e included in the initial regression analysis,with the combinedsuccess score being the target or output variable.R2 and adjusted R2 values for thisinitial regression analysis were measured,as well as the coefficients and standarderrors for each input factor.This analysis determined that this particu

32、lar combinationand concentration of attributes explained more of the variance of the data points thanany other combination.For example,adding the sixth attribute increased thelikelihood of delivering on organizational outcomes significantly(by about 20%),whileadding a seventh attribute had a negligi

33、ble additional impact.Thus,we can sayconfidently that our combination of six attributes best reflects future-builtorganizations.2023 Boston Consulting Group6The Journey Reveals a Widening ChasmThe journey to acquire these six attributes is similar for all companies,but since sectors,companycontext,a

34、nd starting points differ,it requires tailoring.BCG surveyed 725 C-suite members tounderstand how their companies are building(or have built)more than 50 different capabilities in fiveareas that previous research has shown are fundamental to success:senior managementcommitment,strategy and approach,

35、governance,people,and technology.We then analyzed which ofthese capabilities contribute most to an organizations future readiness,which we can link to financialand nonfinancial metrics that investors value,such as shareholder returns,growth in earnings beforeinterest and taxes,customer satisfaction,

36、and talent attraction.We scored each surveyed company onits position along the journey toward becoming future built and identified four groups of companies onthe basis of their progress:stagnating,emerging,scaling,and future built.(See Exhibit 1.)Stagnating companies(a sobering 30%of our sample)rema

37、in at the starting gatethey are stilldeciding how to move forward.Some havent yet aligned executives around the need for fundamental,as opposed to incremental,change.Many are wary about writing big checks(though some have)tosystems integrators and platform providers for multiyear technology upgrades

38、 that are well known to 2023 Boston Consulting Group7have high rates of failure.Still others have digital initiatives that have gone nowherethey have littleto show for the time and money they have invested.Emerging companies(45%of the sample)have created value from a digital transformation,but theyc

39、ontinue to face challenges in effectively scaling solutions,and they havent evolved much beyond fixingthe basics in their core value chain.They risk becoming stuck with pockets of digital capabilities but failto create systemic,organization-wide changes to their culture and operating model.Scalers(1

40、9%)have delivered a successful wave or waves of digital and AI transformations and createdsustainable change in the organization.They are focusing on embedding these solutions across theenterprise and pivoting toward growth from innovation.These companies are delivering(in somecases,eye-popping)resu

41、lts.(See Exhibit 2.)Future-built companies(6%)exhibit all six attributes at scale.They are on the leading edge ofdisruption in their sectors,demonstrate resilience in the face of uncertainty,and are best placed tobenefit from technology disruption.The more advanced companies(scalers and future-built

42、 firms)are opening big chasms with thestagnating and emerging companies in critical capabilities that cement advantage.For example:2023 Boston Consulting Group8The value implications are staggering.Measured against the S&P 1200 index,scalers and future-builtcompanies(the top 25%)are responsible for$

43、9.3 trillion,or nearly half,of the indexs value creation inthe past five years.Relative to the leaders,stagnating companies(the bottom 30%)have missed anopportunity to create an additional$5 trillion.The Playbook for Moving Up the CurveSo how do CEOs focus their management teams on embedding the six

44、 attributes across theirorganization?BCG has created a pragmatic playbook that companies can tailor to their sector,currentattribute maturity,and stakeholder requirements to drive both performance in the short term andsustainable advantage.It shows how to achieve value from new initiatives,especiall

45、y from AI usecases,growth from innovation,and ESG initiatives.(See“How Digital and AI Capabilities DeliverESG.”)While environmental,social,and governance(ESG)issues are not yet showing upempirically as major drivers of financial and nonfinancial success,there is acorrelation between companies with h

46、igher future-success attribute scores and agreater focus on ESG.We expect that this connection will become more important inthe coming years.Our research reveals some important insights that can help CEOsFive times as many advanced companies are scaling AI solutions as opposed to running pilots at a

47、subscale level(72%versus 14%).Advanced companies invest twice as much in AI solutions and realize 3.5 times greater ROI.Three times as many advanced companies have stronger capabilities in the operational valuechain,for example,intelligent asset management,smart factories,automated maintenance,andIn

48、dustry 4.0.More than twice as many have stronger capabilities in sales and marketing,and twice as manyhave stronger capabilities in customer experience and journeys,for example,personalization,consumer-centric services,and customer support and services.Twice as many have stronger capabilities in dig

49、ital ecosystems,such as leveraging platforms andpartnerships to drive sustainable revenue growth beyond their core.Advanced companies show a greater proclivity for earlier-stage innovation,launching 1.6 timesmore ventures or new companies compared to less-advanced firms.HOW DIGITAL AND AI CAPABILITI

50、ES DELIVER ESG 2023 Boston Consulting Group9deliver their ESG priorities.At advanced companies,the ESG agenda is tightly linked to digital and AI maturityand the attributes for future success generally.The data shows that 60%of ESGinnovators(companies scoring highest on ESG capabilities and outcomes

51、)are scalingor future-built companies(which make up 30%of companies overall),and theremaining 40%of ESG innovators are spread across the 70%of stagnating andemerging companies.This makes intuitive sense:for example,it is hard to baselineemissions without a robust data architecture and AI capabilitie

52、s.Stagnating and emerging companies tend to focus on social and governance issuesversus environmental ones.They prioritize foundational capabilities,such as digitalaudit trails for compliance,digital health and safety reporting,and data collection tofulfill regulatory requirements.Scaling and future

53、-built companies do two additional things.They extend these socialand governance capabilities to more advanced use cases,such as creating digitalreskilling and upskilling programs;improving diversity,equity,and inclusionoutcomes;and adopting predictive risk analytics.And they focus more on theenviro

54、nmental agenda with initiatives such as AI-driven emissions monitoring andpredictive asset maintenance and integrating sustainability into all functions andoperations(such as product development,sourcing,and manufacturing).The language used to describe ESG aspirations differs between less advanced a

55、ndmore advanced companies.The former group tends to talk about compliance and riskmanagement,while the latter discusses integration into the overall operating modelwith expectations for growth,value contribution,and improved competitivedifferentiation.Furthermore,advanced companies are moving faster

56、 and using ESG toprioritize digital initiatives and vice versa.In 2021,45%of stagnating and emergingcompanies,versus 60%of scaling and future-built companies,reported that ESG is aprimary focus or key criterion in prioritizing digital initiatives.One year later,thesenumbers rose to 71%of stagnating

57、and emerging companies and to a whopping 87%of scaling and future-built companies.2023 Boston Consulting Group10Stagnating and Emerging.In 2020,we described the six success factors that are critical to thesuccess of a digital transformation.Embedding the success factors enables a programmatic stepch

58、ange in digital capabilities that typically fixes the basics by digitizing the core value chain,improvingthe customer experience,and supporting end-to-end customer journeys.In the two years since,thecompanies in all sectors that have deployed this approach have delivered individual solutions in such

59、diverse areas as implementing agile operating models,replacing aging technology stacks,andachieving digital excellence in targeted corporate functions.These companies have been focused onbusiness value through prioritized use cases and have avoided spending years and large amounts ofcapital on gener

60、ic foundational capabilities.For example,they have not built all the large-scaleinfrastructure for data and analytics upfront;instead,they have worked back from the use cases andbuilt what is necessary for impact,recognizing that scaling the infrastructure will go hand in hand withscaling the benefi

61、ts.The 2022 data shows only a modest improvement in scores for stagnating and emerging companies,far from what is required for these firms to remain competitive.Too many firms are approachingdigital transformation with a cautious,evolutionary mindset,which is holding them back and wideningthe gap wi

62、th the companies that are progressing at a faster pace.For example,one tenet of the CEO playbook is that companies need a certain level of digital maturityin order to create value from AI initiatives.AI maturity tends to lag digital maturity,since successful at-scale AI deployment requires some foun

63、dational capabilities,including clean,accessible data and anopenness in the business to experiment with and commit to using AI.Our latest research shows that46%of companies have not built strong digital foundations,and none of these has a strong AIcapability.Another 42%are relatively advanced digita

64、lly but dont feel that they are AI mature.Only12%of the companies have achieved strong digital and AI maturityand,thus,are positioned tocapitalize on the next wave of advances.Scaling and Future Built.Our latest research yields critical insights into how more-advancedcompanies,irrespective of sector

65、,pivot their priorities.Once a step change has been achieved througha successful digital transformation,the next question is how best to keep building the attributes thatwill underpin future success.Typically,companies tire of large-scale change programs,so managementlooks for solutions that are imp

66、lemented by business units under the mantra of continuousimprovement.This approach has risks:it can lead to line managers prioritizing short-term results overmore systemic change,and it risks a loss of momentum in the transition and a failure to capitalize onearly gains.Successful change requires a

67、purposeful approach to both the what(the specific initiatives to prioritizefor highest impact)and the how(the mechanisms and governance processes to deploy to makecontinuous change an integral part of the new operating model).Advanced companies reduce theemphasis on process-digitization fixes(since

68、their core processes,channels,and customer engagementare much improved)and shi the focus to growth from innovation.(See Exhibit 3.)They typically 2023 Boston Consulting Group11prioritize scaling AI solutions(for example,in order to drive revenue growth from personalization)andorchestrate and contrib

69、ute to business ecosystems.2023 Boston Consulting Group12There is a remarkable similarity among advanced players in all sectors in their focus on the sixattributes.(See Exhibit 4.)At a more granular level,however,the details of the capabilities thatcompanies prioritize vary by sector and company con

70、text.The value-driven portfolio of initiatives forscaling and future-built companies also varies significantly by sector.(See Exhibit 5.)As an example,retailers tend to get the highest value from new-business opportunities,such as ride-sharingpartnerships,and e-commerce initiatives,such as personali

71、zation.Advanced automotive and mobilityplayers tend to see the most value from integrated customer experiences(using customer-facing apps,for example)and workforce management solutions(such as an automated warehouse).Companiesneed to decide on the business outcomes they seek and the specific use cas

72、es they need to build.Theyalso need to determine the minimum viable foundations of technology and data that will enable themto scale solutions.Advanced companies are doing this and incorporating a continuous improvementagenda with new initiatives that leverage the progress already made.2023 Boston C

73、onsulting Group13Companies such as Anheuser-Busch InBev,Apple,BMW Group,Microso,and Woolworths provideuseful insights into how to execute this playbook.Here are some examples:Leadership and Purpose.Top leadership teams in advanced companies communicate a clearvision and purpose;create an environment

74、 of inclusion,access,and equality;and empowerpeople throughout the organization to make decisions.They go beyond just alignment to ensurethat middle management is driving delivery of the ambition and the adoption of individualinitiatives.As Microsos CEO Satya Nadella wrote in his book,Hit Refresh,“T

75、he CEO is thecurator of an organizations culture.Anything is possible for a company when its culture is aboutlistening,learning,and harnessing individual passions and talents to the companys mission.Creating that kind of culture is my chief job as CEO.”People Advantage.There are many aspects to deli

76、vering superior people performance,includingbetter recruitment,retention,development,and engagement of the right talent.The bestcompanies innovate around their employee value propositions.For example,Anheuser-BuschInBev has differentiated its employee value proposition for digital talent in many mar

77、kets bycreating separate pay structures,equity arrangements,and work patterns for people focused ondriving innovation.Michel Doukeris,CEO of Anheuser-Busch InBev said,“Aligned with ourstrategy as a tech-first fast-moving consumer goods company,we have developed a differentiatedemployee value proposi

78、tion to attract and grow leading digital talent.Our team has a uniqueopportunity to drive growth for our ecosystem by working on innovative tech products,such as 2023 Boston Consulting Group14Our empirically derived insights offer a practical playbook that guides companies to both improvenear-term p

79、erformance and build the necessary capabilities for sustained advantage.For stagnatingand emerging companies,this playbook flips the odds of digital transformation success from 30%to80%.For scaling companies,it shows how to make the transition to continuous improvement andcapability building.The pla

80、ybook also brings together the sector-specific initiatives that drive the mostvalue at each stage of the journey and shows how to build the specific capabilities that will strengthenthe six attributes.Bees,TaDa Delivery,and Z Delivery,which reach millions of monthly active users,and solveconsumer an

81、d customer problems at scale.”Agile Operating Model.This brings advantages such as faster decision making,better adoptionof innovations,and more resilience.For example,a large Asian insurance company transformedfrom a hierarchical organization model to a platform,data,and technology model that cover

82、s thefull insurance value chain and makes data and analytics available throughout the organization(the much-sought aer democratization of data).The platform model puts decision making at thefrontline with a continuous feedback loop to the center.Innovation-Driven Culture.Apple is famous for innovati

83、on.Its organization is rooted infunctional expertise,one factor that drives scalable innovation.Other advanced companiesimplement continuous customer feedback loops that power rapid iteration and constantly explorenew technologies to push the boundaries of innovation.They emphasize building relation

84、shipecosystems to develop value propositions that they cannot construct on their own and anentrepreneurial culture that promotes a fail-fast-learn mindset.Data Platform and Modernized Technology.A robust approach to making data available anddefining a value-optimizing pathway to modular,scalable tec

85、hnology is critical.Brad Banducci,CEO of Woolworths,says,“We purposefully built data and technology architectures andcapabilities to ensure we could rapidly scale business solutions to drive incremental revenue andbottom-line benefits across the group.For example,our group shopper media business,Car

86、tology,creates an incremental revenue stream,and wiq,our advanced analytics business,delivers performance improvements from multiple use cases across the group.”Embedding AI.Most leading companies focus aggressively on leveraging advanced analytics andAI.For example,Stefan Meinzer,general manager of

87、 corporate performance management andadvanced analytics at BMW Group,said at the launch of BMW X,“Because of changingenvironmental conditions,changing customer demands,changing circumstances in the supplychain,we have to react extremely fastand the best way is to leverage AI and utilize massiveamoun

88、ts of data.We have launched a worldwide cloud platform to make data available fromdifferent parts of the supply chain to make the customer experience significantly betterand tomake the best cars in the best configuration possible.”2023 Boston Consulting Group15We all know the adage that past success

89、 is no guarantee of future success.This has never been truer.The rules for current performance and future advantage are changing,and CEOs urgently need apragmatic change playbook.Success depends on a de-risked and accelerated change agenda thatdrives current performance and builds the capabilities r

90、equired for sustainable advantage.Thecorporate world is bifurcating between high value-creating,resilient,adaptive,and future-proofedwinnerscompanies that are built for the futureand companies that risk underperformance andeven extinction by failing to respond fast enough to the tectonic changes tak

91、ing place.The authors are grateful to Priyanka Birla,Sbastien Cagnon,Alec Kennison,Michael Mckissack,GeorgePunnen,Shreyansh Sharma,Divakar Singh,Anshu Singhal,Karen Wang,Travis Washington,Katie Wells,Matthew Williams,and Yingying Zhu for their assistance with the research and their contributions to

92、thisarticle.Special thanks to BCGs Center for Growth and Innovation Analytics team.ABOUT BOSTON CONSULTING GROUPBoston Consulting Group partners with leaders in business and society to tackle their most importantchallenges and capture their greatest opportunities.BCG was the pioneer in business stra

93、tegy when it wasfounded in 1963.Today,we work closely with clients to embrace a transformational approach aimed atbenefiting all stakeholdersempowering organizations to grow,build sustainable competitive advantage,and drive positive societal impact.Our diverse,global teams bring deep industry and fu

94、nctional expertise and a range of perspectives thatquestion the status quo and spark change.BCG delivers solutions through leading-edge managementconsulting,technology and design,and corporate and digital ventures.We work in a uniquely collaborativemodel across the firm and throughout all levels of

95、the client organization,fueled by the goal of helping ourclients thrive and enabling them to make the world a better place.Boston Consulting Group 2023.All rights reserved.For information or permission to reprint,please contact BCG at .To find the latestBCG content and register to receive e-alerts o

96、n this topic or others,please visit .Follow BostonConsulting Group on Facebook and Twitter.2023 Boston Consulting Group16AuthorsAmanda LutherMANAGING DIRECTOR&PARTNERAustinRomain de LaubierMANAGING DIRECTOR&PARTNER;ASIA-PACIFICCHAIR,BCG XTokyoSaibal ChakrabortyMANAGING DIRECTOR&PARTNERNew DelhiDylan BoldenMANAGING DIRECTOR&SENIOR PARTNER;CHAIR,FUNCTIONAL PRACTICESDallasSylvain DurantonMANAGING DIRECTOR&SENIOR PARTNER;GLOBALLEADER,BCG XParisTauseef CharanyaPA PRODUCT DIRECTOR-DSRNew JerseyPatrick ForthSENIOR ADVISORSydney