Business model reinvention is clearly a viable path to growth, as this kind of change helps capitalise on shifts and opportunities in the market. But what's the actual payoff? And what’s the gain in revenue growth? A new PwC Netherlands analysis digs into these questions.

Looking at key markets across Europe, the US, Canada, and Australia, the study shows that the benefits build over time. Three years after reinvention, companies generated about 21% more revenue than comparable peers. After five years, the revenue gap had widened to around 36%. The increasing divide over time shows that the rewards from reinvention aren’t instant. They build, growing larger in later years as the transition takes hold and early work of investing, retooling, and learning starts to yield dividends.

Our analysis also classifies different types of business model reinvention to show how each generates varying rates of growth:

• Channel disintermediation is associated with the highest average revenue level seven years after reinvention. By moving closer to end customers, companies gain more control over pricing, distribution, customer data, and cross-selling opportunities. That can translate directly into stronger revenue growth over time.
• Three other types of reinvention—value-chain shifts, anything-as-a-service (XaaS), and digital products—also show strong revenue gains, but for different reasons. Value-chain shifts can boost revenue by reshaping the portfolio and moving the company into faster-growing segments. XaaS models replace one-off sales with recurring revenue streams and the potential for longer customer relationships. Digital products can create new sources of revenue, often at relatively low marginal cost once the offering is built.
• Ecosystems and platform plays remain smaller in absolute revenue levels but show the strongest percentage growth over time. One explanation may be that platform models take longer to scale because they depend on building network effects and attracting multiple participants before revenue accelerates.

For executives, these results point to several imperatives:

Adopt a market-based approach to change. The key question for many companies isn’t which initiative or technology to pursue first, but whether their business model still aligns with how value is created and earned in the market. To understand those changes, leaders should ask some tough questions. Are customer expectations changing faster than they can adapt? Are competitors emerging with fundamentally different revenue models? Does technological disruption allow for new business propositions that are difficult to implement today but potentially valuable tomorrow? The answers to any of these queries could signal a need to reinvent.

Understand the pressure to change. Successful reinvention starts with a clear understanding of the forces putting pressure on the business model, whether it’s technological disruption, changing customer expectations, or competitive dynamics. Leaders should first identify what’s changing in their market and then determine which form of reinvention best fits that reality.

Take a long-term view. Reinvention is no quick fix. The strongest revenue effects emerge several years after reinvention, which means leaders need the capabilities, resources, and commitment to sustain the transition over time.

Choose the right path, not the fashionable one. The findings confirm there is no single blueprint for reinvention. Different pressures give rise to different reinvention archetypes, and leaders should resist defaulting to the most visible or fashionable option. Instead, they should select the approach that best aligns with their strategic challenges and market realities.