WEBVTT

1
00:00:00.180 --> 00:00:02.010
<v ->An exceptional group of companies</v>

2
00:00:02.010 --> 00:00:03.843
is setting the pace for competition.

3
00:00:04.680 --> 00:00:06.510
They have the capabilities to thrive

4
00:00:06.510 --> 00:00:08.370
in a fast-changing world.

5
00:00:08.370 --> 00:00:10.617
We call them "Build for the Future."

6
00:00:12.750 --> 00:00:15.570
Joining them is extremely difficult.

7
00:00:15.570 --> 00:00:18.510
A trilemma of issues stands in the way.

8
00:00:18.510 --> 00:00:20.910
<v ->The first is shifting competition.</v>

9
00:00:20.910 --> 00:00:24.810
Traditional markets are stagnant, growing at 2 to 3% a year

10
00:00:24.810 --> 00:00:27.360
while tech-enabled markets are exploding.

11
00:00:27.360 --> 00:00:29.100
As business dynamics evolve,

12
00:00:29.100 --> 00:00:30.720
companies have to spot opportunities

13
00:00:30.720 --> 00:00:34.230
for new growth and leaders must deliver on that ambition.

14
00:00:34.230 --> 00:00:37.020
<v ->The next issue is cost.</v>

15
00:00:37.020 --> 00:00:39.690
Companies have spent significant time

16
00:00:39.690 --> 00:00:41.880
and capital expense managing digital

17
00:00:41.880 --> 00:00:45.870
and technology costs with very little to show for it.

18
00:00:45.870 --> 00:00:47.850
<v ->The last issue is execution.</v>

19
00:00:47.850 --> 00:00:52.140
Companies get tripped up over execution, focus, or cost,

20
00:00:52.140 --> 00:00:53.430
or they can't scale

21
00:00:53.430 --> 00:00:55.860
to maximize a transformation's full benefits.

22
00:00:55.860 --> 00:00:57.600
Leaders must overcome challenges

23
00:00:57.600 --> 00:01:00.663
and complexity to run transformations with certainty.

24
00:01:01.620 --> 00:01:04.380
<v ->To find out how companies can build for the future,</v>

25
00:01:04.380 --> 00:01:08.430
BCG spent three years researching digital transformations

26
00:01:08.430 --> 00:01:10.020
at over 100 clients,

27
00:01:10.020 --> 00:01:13.440
and surveyed more than 2,500 executives.

28
00:01:13.440 --> 00:01:16.800
We analyzed the capabilities that lead

29
00:01:16.800 --> 00:01:20.760
to future preparedness and the distinctive way

30
00:01:20.760 --> 00:01:23.520
some organizations harness those capabilities

31
00:01:23.520 --> 00:01:27.180
to create a sustainable competitive advantage.

32
00:01:27.180 --> 00:01:31.200
<v ->We found that just 6% of companies are truly future-built.</v>

33
00:01:31.200 --> 00:01:35.760
These companies span industries, sectors, and geographies.

34
00:01:35.760 --> 00:01:39.540
Some are digital natives, others are legacy enterprises,

35
00:01:39.540 --> 00:01:41.550
but they have one thing in common:

36
00:01:41.550 --> 00:01:46.550
They balance costs with pivoting to an agenda of growth from innovation and access to high growth markets. - They do it by deploying AI at scale,

37
00:01:51.180 --> 00:01:53.220
using flexible technology

38
00:01:53.220 --> 00:01:56.220
and following an agile operating model.

39
00:01:56.220 --> 00:01:58.380
They have an innovation-driven culture,

40
00:01:58.380 --> 00:02:00.360
a clear people advantage,

41
00:02:00.360 --> 00:02:03.420
and leaders that are truly purpose-driven.

42
00:02:03.420 --> 00:02:07.800
These companies reap substantial reward for their efforts.

43
00:02:07.800 --> 00:02:11.340
Their digital transformations create lasting benefits,

44
00:02:11.340 --> 00:02:14.550
generating on average three times the shareholder return

45
00:02:14.550 --> 00:02:16.320
of the S&amp;P 1200.

46
00:02:16.320 --> 00:02:18.510
<v ->The rules of competition have changed.</v>

47
00:02:18.510 --> 00:02:19.680
To capture rewards,

48
00:02:19.680 --> 00:02:22.500
companies must grow beyond digital foundations

49
00:02:22.500 --> 00:02:24.960
and shift to continuous innovation.

50
00:02:24.960 --> 00:02:27.480
Is your company building for the future?

51
00:02:27.480 --> 00:02:29.492
<v ->Is your company building for the future?</v>

52
00:02:29.492 --> 00:02:32.159
(lively music)