2014 digital iq survey: ready, set, redesign
TRANSCRIPT
Ready, Set, Redesign What’s the Future of
Business
2014 US CEO Survey 2014 Digital IQ Survey
Pwc.to/17UCEOs Pwc.to/HowDigital
The world is changing.
And CEOs are adapting, but do all of the different parts of their organizations see the change coming?
How well are they poised to capitalize
on transformative global trends?
Getty Images
…With the exception of the executive division, US CEOs see startling gaps in future-readiness,
particularly in IT and R&D. Executive
Human Resources
Sales
Information Technology
Research & Development
Customer Service
63% 35%
Source: PwC, 2014 US CEO Survey, January 2014
Well Prepared
39 56
32 58
20 62
33 57
39 53
20
39
63
39
33
32
Customer Service
Executive
Human Resources
Sales
Information Technology
Not Prepared Well Prepared
56
53
57
58
35
Somewhat Prepared
Research & Development 62
2%
5
9
7
6
9
The answer?
Revamp your operation.
But how?
Getty Images
6 Keys to Revamping Your Operation
Align operations around distinct customer
segments, keeping a pulse on
their changing expectations.
All operations should be geared
toward creating customer value
and differentiating oneself in
a tough market.
1
“We’ve built real-time knowledge management systems. We’ve
automated our operations with new controls. But the real key is making
them work together.”
— CEO of an Oil Company in the United States
Getty Images
2 Challenge the arithmetic behind old decisions.
Conduct forward-looking
assessments and explore
alternatives with an eye on
customer needs and future
revenue opportunities.
“Strategy is about 10% of the whole picture. Ninety percent is execution and doing what you
said you’re going to do.”
—Health Care CEO in the United States
Getty Images
3 Re-evaluate your operating footprint. Manufacturing, logistics,
and service delivery costs are
changing dramatically. For
example, wages in emerging
markets are rising while
new technologies, such as
robotics and 3-D printing,
are presenting new
production possibilities.
4 Accelerate change by putting technology at the
heart of these new operations.
Technology investments are
on the rise, and IT must take
on a more strategic role, as
an advisor and orchestrator
of services, to meet
business needs.
86%
Where companies are investing to grow
20
41
44
39
39
25
Socially Enabled Business Processes
Business Analytics
Mobile Customer Engagement
Cybersecurity
On-demand Business And Technology Services
Sensors
Robotics
Battery And Power Technologies
3D Printing
Wearable Computing
15
15
11
6
Source: PwC, 2014 US CEO Survey, January 2014
Of US CEOs say technological advances will transform their business in the next five years
5 Build operational flexibility. In order to respond better to sudden and frequent shifts, build operational flexibility.
6 Emphasize
collaboration and innovation over
entrenched power structures
and established processes.
Is anyone making changes to capitalize on transformative global trends?
Well, yes. Channels to Market
Approach to Managing Risk
25% 54% 20%
No Need to Change
Considering Change
Source: PwC, 2014 US CEO Survey, January 2014
Change Underway
28 45 27
23 28 47
17 29 51
28 31 39
30 28 41
Supply Chain
Investment in Production Capacity
Corporate Governance
Location of Key Operations
17
28
25
30
28
23
Approach to Managing Risk
Channels to Market
Supply Chain
Investment in Production Capacity
Corporate Governance
No Need to Change Change Underway
45
41
39
28
54
Considering Change
Location of Key Operations 29
20%
27
47
31
28
51
CEOs are making changes in Supply Chains, Risk Management, and more.
Getty Images
Read more Pwc.to/17UCEOs
Pwc.to/HowDigital