341 Posts found for Source: Boston Consulting Group (BCG)

Business strategy has traditionally considered only a narrow set of issues (such as customer needs, operating model effectiveness, and competitive advantage), a limited range of timescales (most notably the annual planning process), and a limited number of stakeholders (customers, employees, and competitors). Such simplification may have made sense when contextual change was slow, and when the only expectation of businesses was that they would aim … [ Read more ]

Content: Quotation | Authors: Kevin Whitaker, Martin Reeves | Source: Boston Consulting Group (BCG) | Subject: Strategy

Since businesses face more aggressive competition than ever before and have to assume increasing risk, they need to prioritize their deployment of resources even more carefully and govern their wide-ranging global activities more diligently. Smart planning has never been as important as it is today.

In this Focus, we delve into the changes and challenges that have altered the context in which companies must now undertake … [ Read more ]

Content: Article | Authors: Alexander Roos, Fabrice Roghé, James Tucker, Marc Rodt, Sebastian Stange | Source: Boston Consulting Group (BCG) | Subject: Management

At most large companies, the performance management system is a hodgepodge of legacy systems. KPIs are not aligned across the organization. Different information systems categorize data differently. Decision rights as to who decides what data to collect are so distributed that there is no consistent approach to reporting across the entire company.

As a result, the finance organization spends an inordinate amount of time simply putting … [ Read more ]

Content: Article | Authors: Alexander Roos, James Tucker, Jeff Kotzen, Julien Ghesquieres, Marc Rodt, Tim Nolan | Source: Boston Consulting Group (BCG) | Subjects: Finance, Management

First, companies need to take a step back and reframe the way they talk about diversity, equity, and inclusion. They must start with a new basic premise: that they will understand the needs of every individual, look for patterns of difference that cut across the whole organization and matter the most in driving positive outcomes, and devise solutions that holistically address those differences. When viewed … [ Read more ]

Content: Quotation | Authors: Gabrielle Novacek, Jean Lee, Matt Krentz | Source: Boston Consulting Group (BCG) | Subjects: Diversity, Human Resources

Business ecosystems are on the rise. In 2000, just three among the S&P top 100 global companies relied predominantly on ecosystem business models. In 2020 this number had grown to 22 companies, which together accounted for 40% of total market capitalization.

It is no wonder that many leaders of established companies are afraid of missing out on this trend and feel compelled to come up with … [ Read more ]

Content: Article | Authors: Balázs Zoletnik, Martin Reeves, Ulrich Pidun | Source: Boston Consulting Group (BCG) | Subjects: Business Model, Strategy

It is widely acknowledged that business ecosystems offer great potential. Compared to more traditionally organized businesses, such as vertically integrated companies or hierarchical supply chains, business ecosystems are praised for their ability to foster innovation, scale quickly, and adapt to changing environments.

However, many companies that try to build their own ecosystems struggle to realize this potential. Our research has shown that less than 15% of … [ Read more ]

Content: Article | Authors: Martin Reeves, Niklas Knust, Ulrich Pidun | Source: Boston Consulting Group (BCG) | Subjects: Business Model, Strategy

If designing a traditional business model is like planning and building a house, designing an ecosystem is more like developing a whole residential district: more complex, more players to coordinate, more layers of interaction and unintended emergent outcomes.

What makes ecosystem design distinctive is that it requires a true system perspective. It is not sufficient to design the value creation and delivery model; the design must … [ Read more ]

Content: Article | Authors: Martin Reeves, Ulrich Pidun | Source: Boston Consulting Group (BCG) | Subjects: Business Model, Strategy

New business insights can come from changing perspectives on the company’s boundaries, resources, and time horizons. We suggest laying out the whole of the supply chain, the cradle to grave of the product life cycle, the adjacent business ecosystem, and all relevant stakeholders. Take a systems perspective to see the full ecosystem and market dynamics at work. Within this expanded business context, understand where issues … [ Read more ]

Content: Quotation | Authors: David Young, Martin Reeves | Source: Boston Consulting Group (BCG) | Subjects: Management, Social Responsibility (ESG), Strategy

The term “business ecosystem” has firmly established itself in the dictionary of management buzzwords. Many managers, fearful of missing out on this trend, feel compelled to come up with their own business ecosystems—or at least to become part of some large emerging ecosystems. But they struggle with the broad scope of the concept, unclear definitions, and the lack of practical advice. This article should help. … [ Read more ]

Content: Article | Authors: Martin Reeves, Maximilian Schüssler, Ulrich Pidun | Source: Boston Consulting Group (BCG) | Subject: Strategy

More companies are forging strategic alliances as they seek competitive advantage. Here’s what they must do to build and manage them successfully.

Content: Article | Authors: André Kronimus, Benjamin Gansel, Gözde Yalazı Özbek, Huseyin Batu Yigit, Konrad von Szczepanski, Nikolaus Lang | Source: Boston Consulting Group (BCG) | Subject: Strategy

Among CFOs, alternative approaches to budgeting are getting a lot of attention. In particular, Beyond Budgeting, a concrete alternative to traditional budgeting, is gaining mainstream traction. The approach is producing impressive results at a growing number of global companies. Moreover, a BCG study confirmed that Beyond Budgeting has significant benefits: 59% of 174 finance executives surveyed reported increased sales, 56% saved significant costs in the … [ Read more ]

Content: Article | Authors: Bjarte Bogsnes, Hardik Sheth, Sebastian Stange | Source: Boston Consulting Group (BCG) | Subject: Finance

Instead of defaulting to the standard change management methods, leaders should adopt strategies of change that respond appropriately to the specific characteristics of their change context.

Content: Article | Authors: David Purser, Leesa Quinlan, Martin Reeves, Simon Levin, Vítor V. Vasconcelos | Source: Boston Consulting Group (BCG) | Subject: Change Management

Thanks to digital technologies and digitally savvy customers, companies across industries can create a customer experience unlike anything ever seen before. CEOs, take note: this could be the biggest growth opportunity to come along in decades.

Content: Article | Authors: Bharat Poddar, Karen Lellouche Tordjman, Rob Bell, Yogesh Mishra | Source: Boston Consulting Group (BCG) | Subject: Customer Related

This content is restricted to site members. Please log in or register

As business environments become more changeable and long-term growth rates decline, companies increasingly need to innovate—across their operations, offerings, and business models. We know the powerful effects of innovation, but what is upstream of innovation? How can we understand and shape the murky mental territory that leads to good ideas: the realm of imagination?

Content: Article | Authors: Jack Fuller, Martin Reeves | Source: Boston Consulting Group (BCG) | Subject: Innovation

As business grows ever more digital—as virtual relationships increasingly become the norm in the post-COVID reality, stakeholder trust becomes as crucial as product or service quality. Nowhere is this truer than in business ecosystems, those dynamic alliances of largely independent economic entities that create products or services that constitute a coherent solution. Ecosystems depend on well-functioning networks of buyers, sellers, and various other parties in … [ Read more ]

Content: Article | Authors: François Candelon, Marcos Aguiar, Matthew Williams, Niklas Knust, Santino Lacanna, Ulrich Pidun | Source: Boston Consulting Group (BCG) | Subject: Management

Trust, we instinctively realize, is a precious quality that binds relationships, and nowhere more so than in business ecosystems. It’s foundational, but also fragile because all the participants in an ecosystem must learn to work with, and rely on, each other, knowing that no external force compels them to do so. Mutual trust, as much as mutual interest, binds business ecosystems.

Yet few business leaders focus … [ Read more ]

Content: Article | Authors: François Candelon, Marcos Aguiar, Niklas Knust, Santino Lacanna, Ulrich Pidun | Source: Boston Consulting Group (BCG) | Subjects: Business Model, Strategy

What are the most important issues to focus on when you embark on a business transformation? Ask ten executives, and you’ll get ten different answers. In the critical first 100 days, there are many considerations to weigh, decisions to make, and actions to take—and their timing and sequence can be as instrumental to success as the moves themselves.

So how do you ensure the company is … [ Read more ]

Content: Article | Authors: David Kirchhoff, Davide Urani, Hans Gennen, Katharina Bergmann, Michael Lutz, Reinhard Messenböck | Source: Boston Consulting Group (BCG) | Subject: Change Management

This content is restricted to site members. Please log in or register

Every enterprise is finding that its space for business as usual is increasingly constrained by the planet’s environmental limits, by broader social and economic needs, and by rising stakeholder demands. Consequently, in addition to addressing all the traditional factors defining competition, company strategies now need to explicitly confront the dynamic socio-environmental externalities of the business. From their impacts on climate to the communities where they … [ Read more ]

Content: Article | Authors: David Young, Marine Gerard, Martin Reeves | Source: Boston Consulting Group (BCG) | Subject: Social Responsibility (ESG)