His famous straight-talking, down-to-earth style cut a swathe through GE’s bureaucratic inertia and planning regime, according to Jacked Up by Bill Lane. This sense, that there is a higher purpose besides growth itself, is a common thread among the T20 companies. The #1 company, Netflix, is another case in point. IBM in the mid 1980’s felt that the future would be much like the past and a result didn’t have to change much. And the company is only getting bigger. 0000067625 00000 n Transformed from a photography-centric firm to a healthcare products and medical imaging company. REPOSITIONING THE CORE: How effectively has the company adapted its traditional core to changes or disruptions in its markets, thus giving its legacy business new life. A second problem is that existing customers often serve as poor guides to the future, as they tell companies to provide them better, cheaper versions of what they are currently providing. After a tumultuous year for racial justice, companies are pledging change. Other common threads include the fact that these transformation efforts take considerable time to play out and pay off. In 2011, Ecolab had a $12 billion market cap when it acquired water technology company Nalco in an $8 billion deal. Finally, the theme of fintech, turning complex financial services into simple, disruptive technologies, proved to be a vital area of new growth, especially in China for firms such as Alibaba and Tencent Holdings, where a new generation of consumers aren’t wed to traditional banking or financial institutions. NEWS CORONAVIRUS POLITICS 2020 ELECTIONS ENTERTAINMENT LIFE PERSONAL VIDEO SHOPPING. In 2019, the company refined its mission once again, in response to the growing global backlash against technology’s dominance in our lives, boiling it down to: tech for social good. Whatever motivates a leadership team to embark on strategic transformation, it’s often easier in the short term not to undertake the challenge (or delay the decision for just one more year), which is why stories of successful corporate change efforts are so rare. AIA Group’s transformation has taken the Hong Kong-based life insurance company into a new global growth area, with its digital Vitality platform  providing wellness and prevention knowledge, tools, and motivation to AIA members, leading to a business representing 10% of total revenue and growing at an 85% rate last year. This critical mass has attracted more than 265 million registered users, enabling Ping An to stage an IPO of the platform as a separate company, raising over $1 billion from global investors. Cisco has cultivated customer relationships to find smart niches for new value-added digital subscription services. In a similar way, Alibaba has always made innovation the key to everything, enabling it to expand beyond its roots as an e-commerce and Internet services company into new growth areas ranging from digital platforms for financial services to digital media to AliHealth and AliSports. 0000002260 00000 n Twitter via @SkullyLowe. The theme of healthcare transformation also proved to be a major global opportunity area—with Philips, AIA Group, Fujifilm Holding and Ping An serving as prime cases. However, the vast majority of leadership teams never encounter these three crises. But the common denominator to all these efforts has been building new digital platforms, says Paul Cobban, Chief Data Transformation Officer. Established as a financial services and insurance company, Ping An transformed itself into a cloud tech business providing fintech and AI-based medical imaging & diagnostics. Company Overview FAQ. window.dataLayer = window.dataLayer || []; This includes our primary metric: the percent of revenue outside the core that can be attributed to new growth areas. 0000028695 00000 n The takeaway lesson from these mission-changers is clear: In an era of relentless change, a company survives and thrives based not on its size or performance at any given time but on its ability to reposition itself to create a new future. “It’s the right thing to do,” Siemens chairman Jim Hagemann Snabe told Reuters. Entering new growth markets is the “what” that propels a transformation, but leaders also need to tell the story of “why.” The companies on the list have infused a higher-purpose calling into the culture, and this helps guide big decisions and give clarity to everyday tasks. Other T20 firms have also reaped benefits of invested heavily in new digital platforms for its customers. Decal Design .. What happens if key people feel like they don’t belong anymore? “It had to be a radical transformation; we needed to build a new core business and find new areas of sustainable growth. Global fi rms in 2020: The next decade of change for organisations and workers is an Economist Intelligence Unit report, sponsored by the Society for Human Resource Management (SHRM). HBO, not Dish.”. It’s been turbulent but the new mission is what has guided us.” The result is somewhat counter-intuitive: Focusing on purpose, rather than growth, is precisely what drives growth, while also keeping employees engaged in executing a worthy mission. Disruptive change is accelerating, and companies today face more ambiguity than ever. In 2013, du Telecom signed a M… Intuit founder and executive committee chairman Scott Cook explains it this way: “We stopped doing a bunch of things on the theory of ‘do less better. Fujifilm invested heavily in medical imaging, leveraging existing chemical technology and know-how that the firm used in photographic film, launching a full product line of diagnostic equipment for hospitals and other healthcare providers. IBM turned 100 today, the rare company … 0000045551 00000 n A primary metric driving the organization is how much water is saved by its clients annually, which now stands at 188 billion gallons, against a 2030 target of 300 billion gallons. 5 min read One of the coolest things about the New Year is that everyone prepares to make changes. DBS was named among the top 20 companies globally that have pulled off a major transformation of their business, alongside Netflix, Amazon and Alibaba, in a study by strategy consulting firm Innosight. Projections for the year 2030 showed that 70% of the world’s GDP would be based in water-stressed regions, California and Southern India being prime examples. We looked at the mandate to combat climate change, and we became one of the few companies to wholeheartedly make this profound decision, to be one of the first to go from black to green energy.”, • ADAPTING THE CORE: In an interview, Poulsen emphasized both the short-term and long-term nature of the change. This has now been delayed until April 2021 because of the spread of the coronavirus (COVID-19) pandemic. As the leading expert on disruptive innovation and strategic transformation, we bring a unique set of lenses to growth strategy. Sometimes it’s a financial crisis, sometimes it’s the threat from a disruptive competitor, sometimes growth just hits a wall, sometimes it’s the opportunity to ride a global megatrend, and sometimes it’s simply the result of systematic planning for the future. 0000067743 00000 n Acuity is one of those U.S. companies regarded as best for work-life balance, according to Glassdoor data from July 1, 2019, to June 30, 2020. 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