Reinventing business models to meet unprecedented customer demands

Hit particularly hard by the pandemic, along with pressures from radically changing customer behavior and new competition continue, consumer and business services organizations have to re-think how they do business. At the same time, they recognize the need to achieve operational excellence to reduce costs and drive business agility.

Despite more executives having a digital strategy in place, achieving results from those strategies has stalled. Addressing constraints such as budgets, cultures and legacy systems are needed.

The majority of consumer and business services executives say sustainability is core to their ability to create value for customers. This reflects growing awareness, particularly among the C-suite, that net-zero is no longer an option or a nice-to-have. Understanding the environmental impact of operations and responding to increasing market pressures from regulators, investors, consumers and other stakeholders must be made an urgent priority.

Key findings from our conversations with 81 consumer and business services executives in 2021 follow, or you may download the PDF.

Top trends and industry priorities

Top trends
  1. Becoming digital organizations
  2. Optimize today’s operations
  3. Big data and predictive analytics
  4. Protecting through cybersecurity
  5. Collaborating with the ecosystem
Top business priorities
  1. Improve the customer experience
  2. Invest in new products and services
  3. Continue to develop apps, services and third-party relationships
  4. Optimize today’s operations
  5. Rethink business model/value creation
Top IT priorities
  1. Drive IT modernization
  2. Improve the customer experience
  3. Protect through cybersecurity
  4. Deliver the benefits of big data and business insight
  5. Embrace new IT delivery models

 

84%
say their organization’s business model is evolving as a result of digitization
52%
of C-level executives feel strongly that environmental sustainability is core to creating future value
15%
say they are producing results from their digital strategies

Consumer and business services executives indicate a lack of progress with producing results from digitization strategies, with 15% achieving such results in 2021, the same as in 2020. Of these digital leaders, some common attributes emerge. The table compares responses to questions from the digital leaders to those whose organizations are still building or launching digital strategies. Learn more about the attributes of digital leaders.

Common attributes of digital leaders

Executives
producing
results from
digital strategies

Executives
building or
launching
digital strategies

Feel strongly that environmental sustainability is core to creating value for customers 70% 41%
Focus more on developing apps, services and third-party partnerships as a business priority 90% 64%
Focus more on leveraging predictive analytics as a digital initiative 100% 72%
Are more advanced with data analytics as an IT priority 55% 12%
Are more advanced with customer experience as an IT priority 70% 30%
Are more advanced with IT modernization as an IT priority 85% 23%
Are better at aligning IT and business priorities 50% 32%

 

voc service report


Download our 2021 consumer and business services report