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If you look at the history of how companies
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have grown over the last century,
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the primary driver has been to create sustained shareholder
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returns in a world with predictable rules to the game.
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That world no longer exists.
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Today, social tension, economic nationalism,
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and technological revolutions are reshaping business,
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and the bar that once defined top performance
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has not only risen, but it has transformed.
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It's becoming clear that being great
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is no longer good enough.
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To lead in this new reality,
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you'll need a new playbook of strategies
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that delivers value, not only for your shareholders,
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but to all stakeholders.
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To thrive, you'll need to go beyond great.
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(lively music concludes)
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In an increasingly fragmented
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but digitally-connected world, leading-edge companies
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are redefining what great growth looks like.
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These companies are integrating doing good
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into the business and operating model.
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They're unlocking profitable growth by smartly focusing
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on countries and growing deeply local,
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rather than depending on their scale to win globally.
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And they are pioneering new propositions
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for connected customers by layering digital solutions
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onto their physical products.
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Take the example of agriculture.
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Humanity's oldest, and perhaps
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one of its most complex industry.
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Fortunately, data and smart algorithms can help.
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John Deere recognized this.
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In 2012, the world's number one tractor manufacturer
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launched a digital platform, combining data
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from IOT-connected farm equipment with globally collected
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data on variables like weather,
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crop prices, and soil conditions.
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The platform gave farmers the ability to make
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data-driven decisions down to the individual acre,
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helping them boost crop yield and reduce costs.
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John Deere's strategy of delivering digital solutions
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through their physical products has been
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an overwhelming success.
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It's unlocked new growth opportunities
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and reinforced the company's position
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as the world's number one farm equipment manufacturer.
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What happens when a global pandemic shuts down
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your global supply chain?
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It's a question that left many leaders scrambling
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when COVID-19 hit.
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To succeed in an era defined by shocks,
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companies are fundamentally rethinking their operations.
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They're moving past low-cost delivery models
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to embrace flexible delivery networks.
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They see data not as an exhaust,
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but a fuel to drive new value propositions,
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and they're complimenting their intra-industry supply chains
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with digital ecosystems of cross-industry partners.
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For example, when Volkswagen
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set out to create its digital mobility platform,
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it understood it needed a diverse set
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of digital capabilities to bring the offering to life.
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Going beyond the conventional strategies
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of trying to build the platform itself,
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Volkswagen orchestrated a complex ecosystem of 58 partners
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across six different industries.
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By breaking down the borders of traditional closed systems,
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Volkswagen was able to deliver a new, cutting-edge
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digital experience to its customers.
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Great companies once perfected the art and science
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of efficient supply chains.
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Companies that go beyond will master
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the art and science of ecosystems.
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Those that do will unlock growth in ways
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they could never achieve on their own.
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In a time of revolutionary change,
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it's not enough for companies to transform themselves
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once every few years.
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To thrive, companies must reinvent
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their organizations constantly.
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They'll need to liquefy themselves into focused,
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fast, flat organizations.
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They'll have to reimagine how they find and inspire
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top talent, and they'll need to change
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the very cadence of change.
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A company that stands out to me as a remarkable example
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of this is Microsoft.
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(mellow music)
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In 2014, Microsoft's
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historically great performance had stalled.
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The company needed to change,
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and no one understood this better
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than the new CEO, Satya Nadella.
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Over the next six years,
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Nadella led the company through a fundamental transformation
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that included a new organization,
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culture, and approach to leadership and talent.
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The results were remarkable.
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Since 2014, Microsoft's market cap has grown
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to over $1.5 trillion, but even more importantly,
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they have fully embraced their purpose.
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But as remarkable as it was, Microsoft's transformation
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wasn't a single break from the past.
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It was the culmination of a number of change efforts
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taken over time.
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Like Microsoft, you must move beyond
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one-and-done change efforts to embrace an always-on
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approach to transformation.
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Companies that make change a constant preoccupation
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will dramatically hasten their ability to compete,
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grow, and thrive in the years ahead.
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In "Beyond Great," you'll discover the rules of success
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in the 21st century
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that any firm, local or global,
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can deploy to not just survive,
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but to thrive, not just to please,
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but inspire, and not just to profit,
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but to heal and grow.