No company’s future is guaranteed: half of all businesses that exist today won’t be around 10 or 15 years from now. History proves this to be true, and CEOs know it too. In our 2024 Annual Global CEO Survey, 45% of global CEOs (up from 40% in 2023) believe their company will not be viable in 10 years if it stays on its current path.
Today’s pace of change and the influence of converging megatrends – from technological disruption to climate change – mean that how businesses create, deliver, and capture value will need to fundamentally change too. The answer? A business model reinvention that keeps step with what customers want and need, or better still, invents the customer needs of the future.
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Using PwC’s business model reinvention framework, we collaborate closely with organisational leaders to map out a plan that drives towards value creation and growth. Our focus is to use our human-led, tech-powered capabilities to address opportunities to help your organisation reinvent your business model and radically transform how you create, deliver, and capture value. Stop dabbling and make reinvention real.
PwC UK first started working with Starling Bank when it was founded back in 2014 as a forward-thinking digital bank with a mission to change the UK banking arena. In a remarkably short space of time, Starling has thoroughly disrupted the market, taking an almost 10% share of the business banking market.
But that was just the start of the innovation. PwC UK and Starling quickly realised that the technology which was built to power Starling Bank in the UK could also be used to power other banks around the world in the form of a software-as-a-service (SaaS) solution, Engine by Starling.
Today, PwC UK and Engine are working with numerous clients to implement the Engine SaaS solution. The first joint implementation in Australia is due to go live in the first quarter of 2025. This will not only firmly establish Engine as an innovator in the core banking marketplace, it also represents a business model reinvention for Starling Bank from UK digital bank to global technology powerhouse.
A leading global technology company faced a low stock market valuation and growing customer dissatisfaction with the buyer journey and ownership experience, fueled in part by the sheer complexity of a vast array of highly technical products.
PwC US collaborated with the company’s leadership team to reinvent both the way it engaged with customers, the subscription-based offering structures and the associated operating model. Most critically, PwC US worked with the company to introduce XaaS offerings with subscription-based pricing into the market. This enabled customers to buy hardware and software products through a digital customer experience with a lower cost of entry, thereby simplifying the buying process and reducing their capex requirements.
This reinvention of the business has produced a significant improvement in measurable commercial outcomes, including significant year on year revenue growth, an increase in average deal size and a doubling of annual recurring revenue over a two-year period. As a result, there has been a significant upwards revaluation of the company by investors, along with an increase in sales velocity and digital customer engagement.
PwC Australia and PwC South East Asia Consulting were brought in to help a maritime company which had encountered challenges after introducing new technology to the business. The company was set up in 2001 as a joint venture to vet maritime vessels before they headed out to sea and help establish rigorous standards for the maritime industry to mitigate against the risk of harm to seafarers, the environment, local communities, ships, or their cargoes.
The maritime firm initially achieved this primarily through the manual vetting of vessels by in-house maritime experts. However, it later pivoted to an analytics-led approach, which replaced humans with technology. This new approach led to new challenges, including lack of transparency, lack of explainability, and high volatility in recommendations. This resulted in a lack of trust between the firm and its customers as well as the maritime industry.
PwC Australia and PwC South East Asia Consulting worked with the client to develop a five year strategy for the business. The team advised on the design, delivery and replatforming of the core products and services, leveraging human-centred design, cloud architecture data and analytics and a first-principles strategy. The business has returned to double-digit top-line growth every year since its reinvention, thereby protecting both the core business and key customers.
Innovative business models are emerging all the time, putting pressure on organisations to reinvent or risk irrelevance. These six business models are just some of the ways enterprises are reimagining themselves in response to disruption – from changing who they think of as “customers” to shifting their place in the value chain.
Our sector-led business model reinvention specialists help you evaluate and navigate these and other business models to safeguard your company’s future.
The end-to-end transformation of traditional products and assets to an on-demand subscription or consumption-based service model to change business from “one-and-done" customer interactions to recurring customer relationships.
Transitioning analog or digital products into connected physical products to enhance customer experiences and gather valuable data for personalised marketing and product development.
Software-enabled assets that users can interact and transact with without requiring a physical form, allowing organisations to expand their addressable markets, better customer experiences and gain more customer loyalty.
Engage in an ecosystem/platform play to unlock new revenue streams, increase valuation, drive increased customer loyalty and increase business agility.
The creation of new channels to effectively engage new and existing customers to increase control over distribution, reduce costs and provide direct access to customers.
Offering wide-ranging products and services for an all-encompassing customer journey, vs. a specific segment of the value chain.