This podcast explores the concept of the wise pivot and the importance of staying relevant in the digital age. It discusses the challenges companies face in balancing old, current, and new businesses, and the role of visionary leadership. The podcast also highlights the importance of leveraging technology to extend the life of old businesses and explores the challenges faced by senior managers in adapting to the rapidly changing digital environment.
The wise pivot strategy requires a visionary leadership team to create a compelling vision for the future and ensure alignment across the organization.
Companies can release trapped value by focusing on personalized, convenient, and cost-effective solutions, emphasizing continuous innovation and reinvestment in consumer-friendly products and services.
Deep dives
The Wise Pivot: Embracing Disruption to Thrive
The podcast episode explores the concept of the wise pivot, a strategy for harnessing disruption to survive and grow. It emphasizes the need for perpetual reinvention in the face of rapid technological advancements. The episode draws on Accenture's own experience and research on successful business transformations, highlighting the importance of bridging the gap between technological possibilities and their application. The wise pivot requires a visionary leadership team that can create a compelling vision for the future and ensure alignment across the organization.
Balancing Old, Now, and New Elements in Business Strategy
The episode discusses the importance of balancing strategic initiatives across three distinct phases: the mature products and services in the old element, the current and most profitable offerings in the now element, and the leading-edge ventures targeting the future in the new element. It highlights Accenture's own reinvention as an example and emphasizes the need for a clear vision of the future and effective resource allocation to navigate rapidly changing technology landscapes.
The Trapped Value Gap: Turning Disruption into Opportunity
The podcast examines the concept of the trapped value gap, which refers to the untapped potential for value creation in the face of disruption. It uses the example of the retail apocalypse and the rise of digital-first retailers to illustrate how companies can release trapped value by focusing on personalized, convenient, and cost-effective solutions. The episode emphasizes the importance of continuous innovation and reinvestment in making products and services more consumer-friendly.
Innovation vs. Invention: Navigating the New
The episode explores the distinction between innovation and invention in the context of digital transformation. It highlights the need for companies to focus on making profits in the new rather than simply striving to adopt new technologies. The examples of Toyota and Tesla, as well as Google and search engines, illustrate the importance of balancing innovation efforts with customer value and profitability. The episode emphasizes the value of understanding when to accelerate innovation versus when to invest in inventing new technologies.
Pivot to the Future is for leaders who seek to turn the existential threats of today and tomorrow into sustainable growth, with the courage to understand that a wise pivot strategy is not a one-time event but a commitment to a future of perpetual reinvention, where one pivot is followed by the next and the next.
Based on Accenture's own experience of reinventing itself in the face of disruption, the company's real-world client work, and a rigorous two-year study of thousands of businesses across 30 industries, Pivot to the Future reveals methodical and bold moves for finding and releasing new sources of trapped value-unlocked by bridging the gap between what is technologically possible and how technologies are being used. The freed value enables companies to reinvent their legacy and current and new businesses simultaneously.
00:00:00.256 Harnessing Disruption: A Strategy for Future Relevance 00:03:08.439 Extending the Horizons: Balancing Old, Now, and New Businesses 00:11:22.493 The importance of a visionary CEO and leadership team 00:15:16.543 Majority of profits go to reinforcing existing businesses 00:19:15.760 Old trees provide shade and protection for the next generation 00:21:06.756 Conventional Wisdom vs. New Wisdom: Exiting vs. Exploiting Old Businesses 00:28:00.496 The Fallacy of Cash Cows in Rapidly Changing Markets 00:31:49.016 The Challenges of Electric Cars and Hybrid Technology 00:43:01.017 The Trapped Value Gap: Turning Disruption into Opportunity 00:47:41.371 Societal Value: How Society Benefits from Digital Transformation 00:49:00.914 The Evolution of Customer Segments and Channels
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