1、TCS 2021 Global Leadership StudyWhere,How and What Leaders Will Compete With in the New DecadeBuilding on beliefContentsAbout the Study Essenal Takeaways at a GlanceEssenal Takeaway 3Research Process and Parcipant DemographicsSuccess Stories:What Leaders Do DifferentlyEssenal Takeaway 1Where To Comp

2、ete:The Decade of Competing in Digital EcosystemsHow To Compete:Winning in Digital Ecosystems Requires Collaborating with CompetitorsEssenal Takeaway 2What To Compete With:How Organizations Choose Digital Innovations What To Compete With:The Most Impactful Digital Innovations Predicted to Hit by 202

3、5How To Lead:Creating Thriving Digital CulturesWhat To Compete With:Leveraging Customer DataEssenal Takeaway 4How To Compete:How Leading Companies Size Up Their Growth OpportunitiesSummary:Our Top 6 RecommendaonsMore Global Leadership Study Reports484443420About the StudyIn ear

4、ly 2021,Tata Consultancy Services launched a major research study to understand how large global companies had recalibrated their strategies through 2025 for a period that is expected to be even more digital than the previous five years.Specifically,we wanted to know how they were planning four aspe

5、cts of their businesses:2Key Findings Report TCS 2021 Global Leadership StudyNew sectors,regions,business modelsNew products and servicesNew business processes to create demand supplyNew approach to managing talent and creang a new cultureExing sectors,regions,business modelsImproving exisng product

6、s and servicesImproving exisng ways of creang demand and supplyImproving exisng talent management approaches and current cultureINNOVATIONOPTIMIZATIONDigital strategies-deciding whichbusinesses and market to be in1.WHERE TO COMPETE2.WHAT TO COMPETE WITH3.HOW TO COMPETE4.HOW TO LEADDigital ways to co

7、nducngbusinessLeadership approaches tomanaging people who areworking in increasing digital waysDigital offerings-defining theproducts and services we offerVS Their digital strategies the markets and businesses they will play in Their leadership approaches how to manage people who are doing their wor

8、k in increasinglydigital ways Their digital offerings the products and services they plan to offer,and the degree to whichthey will be digital products and services Their digital ways of conducting business how they see making their processes for creangdemand and supply more digitalKey Findings Repo

9、rt TCS 2021 Global Leadership Study3Over the first three months of 2021,the survey was fielded.More than 1,200 senior execuves completed it,from a broad range of industries and from four regions of the world:North America,UK and Europe,Asia-Pacific,and Lan America.Their average revenue was nearly$14

10、 billion,and they include 26 companies with sales of at least$100 billion.In addion to breaking this topic into those four arenas,we wanted to probe each of them through the same construct:the age-old conundrum of innovaon vs.opmizaon.To what degree are company execuves rethinking everything what ma

11、rkets and businesses they should be in,what products and services they should offer,how they should create demand and supply for their offerings,and how they should manage people.It comes down to this:Will winning and in some cases,surviving require large doses of innovaon in strategy,offerings,busi

12、ness processes,and managerial approaches?Or are they instead looking more toward opmizing the strategy,offerings,processes and leadership styles they already have in place?Are they making incremental or perhaps more improvements to their tried-and-true markets,businesses,offerings,processes and mana

13、gement approaches?Our overarching finding is this:Even with the massive digital opportunies that CEOs and other senior leaders ancipate through 2025,most are significantly underesmang the amount of innovaon they will need to compete this decade.This report walks you through the data behind this and

14、the other essenal findings.Our Big Takeaway?Even with the massive growth in digital opportunies that senior leaders ancipate through 2025,most are significantly underesmang the amount of innovaon they will need to compete this decade.Essential Takeaways We organized the report around the four bigges

15、t takeaways from our research:Senior leaders see growth over the next four years to come from new digital offerings,entry into new markets organized along cross-industry“digital ecosystems”and more collaboraon with new competors in those ecosystems.To succeed in a far more digital world,senior leade

16、rs believe they must drive their companies to be more customer-centric and innovave than by focusing on shareholder value.In an increasingly digital business environment,senior leaders believe many new areas of their organizaon to be vulnerable to cyberaacks beyond the IT funcon.Despite predicng far

17、 greater digizaon of their businesses and the marketplaces in which they will compete by 2025,most senior leaders believe that opmizing what theyre doing today will be more important than embarking on far-reaching innovaon in strategies,offerings,business processes and leadership approaches.Senior l

18、eaders recognize that connued growth and profitability will likely come from new collaborators(even competitors),new digital offerings,and new industries and ecosystemsSenior leaders predict many areas of the organization will become newly vulnerable to cyberattacksSenior leaders predict that optimi

19、zation will be more important than innovation for organizaonal growth and profitability between now and 2025 Senior leaders predict innovation and a customer&employee centricity need to drive their culture more than shareholder value1.2.3.4.Question:In a more digital decade,what is more important:in

20、novation or optimization?*4Key Findings Report TCS 2021 Global Leadership StudyEssenal takeaways at a glance1342*Essential takeaways from leading companies as defned by the studyComparing Leaders and Followers is our way of understanding how the best-performing companies of the second half of the la

21、st decade answered our quesonnaire differently than the worst-performing firms.Our thinking is that the 2010s were a highly digital decade,and that looking at firms that achieved higher than their industry average in revenue and net income growth between 2015 and 2019 would provide insights on how t

22、hey see the first half of this decade differently than below-average performers in revenue and profit growth.Comparing Leaders and Followers Learning what the best companies at dealing with a digital challenge do differently than the rest has been a feature of TCS studies for more than a decade.This

23、 report connues those comparisons.Throughout this report,we will use the terms“Leader”and“Follower”to refer to two subsets of our 1,206-survey populaon.In each secon,we also compare the results of two groups of survey respondents “Leaders”and“Followers”-based on their financial performance in the se

24、cond half of the 2010s.(See the following secon for more details on how we determined these two groups.Leaders are firms that reported higher-than-average gains in revenue and net profit in their industries between 2015 2019Leaders Followers revenueandandThese companies areof the total survey sample

25、.These companies areof the total survey profit+65%29%33%+73%revenue net profit-15%-36%Followers have higher-than-average decreases in revenue and net profit in their industry between 2015 2019.InnovaonOpmizaonVSVS5Key Findings Report TCS 2021 Global Leadership StudyDefining Leaders and FollowersIn t

26、his study,we compared the best-performing companies(Leaders)in the last half of the 2010s to the worst-performing firms(Followers).Leaders see their digital opportunities between now and 2025 much differently than do Followers.Essential Takeaway 1Leaders recognize that continued growth and profitabi

27、lity will come from new collaborators(even competitors),new digital offerings and new industries&ecosystems80%23%LeadersFollowersvsof Leaders are more willing to collaborate with competors80%of Leaders include ecosystems when building their future strategy 58%of Leaders plan to expand these kinds of

28、 collaborave relaonships55%of revenue(on avg)will come from purely digital offerings according to all Leaders56%55%35%LeadersFollowersvs58%35%LeadersFollowersvs56%42%Leaders vsFollowersrevenuerevenueWHY THIS MATTERSCompanies project a big increase in revenue from digital products and services;greate

29、r digital markeng,sales and service processes;and entry into digital ecosystems that cross industries.The ability to parcipate with competors and partners in cross-industry digital ecosystems with new,more highly digital products and services will be essenal to seize new,revenue-driving opportunies

30、in the mid-2020s.Clearly,most“Leaders”realize they must collaborate extensively with competitors to be key players in digital ecosystems.Lower performers still regard competitors as enemies to avoid.“Leaders”also anticipate that more of their revenue will come from purely digital offerings compared

31、to“Followers.”6Key Findings Report TCS 2021 Global Leadership StudyDeeper Dive Senior execuves see growth over the next four years to come from new digital offerings,entry into new markets organized along cross-industry“digital ecosystems,”and more collaboraon with competors in those ecosystems.It i

32、s not an understatement to proclaim that the era of the digital product and service has fully arrived,and that compeng in the marketplace will mean navigang in digital ecosystems that cross previously impassable industry boundaries.The more than 1,200 senior execuves across 16 sectors that we survey

33、ed esmated that,on average,39%of their companies revenue last year came from purely digital products or services.When asked what that percentage would be by 2025,they projected an average of 46%of revenue nearly half!It was even higher for“Leaders”,who predicted an average of 56%of revenue will come

34、 from purely digital offerings.Keep in mind that we didnt just survey media,banking,telecommunicaons and other companies whose fundamental offerings have largely become digital.We didnt just poll execuves at newspaper companies whose digital edions you subscribe to,or banks whose checking and saving

35、s accounts you tap via your smartphone and whose payments you make digitally,or the wireless communicaons or Internet providers that you use.In fact,we surveyed manufacturers of industrial equipment,consumer packaged goods companies,energy and resource companies,and other sectors that sell both prod

36、ucts and services.(Exhibit 1)To see how,lets start with one of the most striking digital transformaon stories of the last two decades.Back in the late 1990s and early 2000s when streaming movie leader Nelix Inc.sent its products(digital videodisks)through the mail,it would be fair to say that those

37、products were physical products.Yes,those movies were digized onto floppy disks.But the disks themselves were plasc.Since 1998,the company has sent 5 billion of those plasc disks through the mail.1(It sll does,but the number has been dwindling.)Fast forwarding to today,some 99%of Nelix$25 billion in

38、 annual revenue comes from a purely digital product:streaming.2 3Aer entering that business in 2007,the Los Gatos,Calif.-based global company has become the king of streaming.And while Nelix is an extreme example of physical products and services turning purely digital,we believe it is a harbinger o

39、f things to come in many sectors.1Nelix web page.hps:/ revenue from its 2020 annual report,p.20.hps:/ the first nine months of 2020,Nelix disk rental revenue was$185 million.Total revenue in that period was$18.35 billion.hps:/ revenue(on avg)will come from purely digital offerings according to all L

40、eaders56%56%42%Leaders vsFollowersrevenuerevenueKey Findings Report TCS 2021 Global Leadership StudyTo get a taste for what digital revenue looks like in a sector that makes products,just consider the global automove sector.Digital revenue here is no longer trivial.The market for vehicle infotainmen

41、t systems is predicted to reach$52 billion next year.4 Whats more,over-the-air updates of soware in cars was a$2.4 billion business last year that is predicted to increase nearly sixfold by 2030.5 These updates can upgrade your mapping systems,give you more horsepower and deliver other soware-driven

42、 features.4Stasta.hps:/ Market Research.hps:/ 1:Percentage of revenue today and projected by 2025 from digital products and servicesIndustryTelecommunicaons 56%57%Technology50%57%Accommodaon and food services50%57%Retail47%52%Media and entertainment47%51%Securies and investment firms45%54%Health ins

43、urance45%53%Insurance43%53%Banking and credit instuons43%49%Life sciences38%50%Health care services 38%45%Transportaon and logiscs36%44%Manufacturing 34%39%Ulies30%36%Mining26%28%Oil and gas15%15%revenue from digital products/services todayPredicted%revenue from digital products/services in 2025Cons

44、umer packaged goods37%46%8Key Findings Report TCS 2021 Global Leadership StudySubtle differences emerge in the responses from“Leaders”and“Followers”,with“Leaders”deriving more revenue from new offerings.“Leaders”project their 2025 revenue mix to be 56%from exisng offerings and 44%from new offerings,

45、while“Followers”project that 60%of their revenue will come from exisng offerings and 40%from new offerings.In addion to asking senior execuves about their mix of digital and non-digital revenue,we asked them to esmate how much revenue would come from the products and services they sell today vs.the

46、revenue from completely new offerings by 2025.Overall,they expect significantly more of their revenue(59%)to come from exisng offerings than from new offerings(41%).Revenue fromnew offeringsLEADERSFOLLOWERS44%vsRevenue fromexisng offeringsRevenue fromexisng offeringsRevenue fromnew offerings56%60%40

47、%Revenue fromexisng offeringsRevenue fromnew offerings59%41%9Key Findings Report TCS 2021 Global Leadership Study6BuzzFeed,July 11,2019,accessed April 18,2021.hps:/ 7Apple press release,April 3,2008.hps:/ magazine,Dec.9,2020.hps:/ web page,accessed April 19,2021.hps:/ Stanley esmate,as cited in Forb

48、es,Feb.5,2021.hps:/ 2020 CIO Study report“Opportunies&Threats:Ecosystem vs.Industry,”p.6.hps:/ To CompeteThe Decade of Competing in Digital Ecosystems Key Findings Report TCS 2021 Global Leadership Study10A generaon ago,industry boundaries were neatly defined.But as C-suite occupants recognize today

49、,that is no longer the case.Compeon arises from unexpected places,and so can new sources of revenue.Successful companies are protean,versale and opportunisc,matching their capabilies with marketplace needs regardless of the sectors that may tradionally serve those needs.Thats the concept that led Am

50、azon,a retailer,to become a cloud services powerhouse,and enter a score of other businesses,including digital adversing.6 Its the principle that transformed Apple from just a computer company into a leading phone maker,the largest U.S.music retailer,a payments company,a healthcare innovator and so o

51、n.78In another boundary-busng example,Walmart now has a rapidly growing business selling adversing space to other companies.The retailing giants 10,500 stores9 around the world and website reach 160 million consumers every week.10 The company wants to increase revenue in the digital ad business 10-f

52、old in the next five years,11 from an esmated$500 million in 2020.12To beer recognize their opportunies and threats,companies are increasingly thinking in terms of digital ecosystems rather than in terms of industry sectors.Digital ecosystems are complex networks of stakeholders that connect online

53、and interact digitally in ways that create value for all.Companies that plan in terms of ecosystems think within and beyond the boundaries of their industry.They look at ecosystems such as mobility(geng from point A to point B),wellness(in sickness and in health),finding a place to live and moving i

54、n(which includes sectors from real estate to mortgages to moving and furniture companies and much more)as a way to understand their customer opportunies and their compeve threats.Failing to appreciate the nature of a companys ecosystem leads to a host of difficules,including lost opportunies,unexpec

55、ted challenges from novel competors,and even bankruptcy as markets and business models vanish.Our survey found that in strategic planning exercises,when top management teams evaluate their organizaons future business opportunies,more than half(55%)sll think along tradional industry boundaries.(See E

56、xhibit 2.)Fewer(45%)plan through cross-industry ecosystems,a number that includes 31%which plan only through the lens of digital ecosystems and 14%which balance their strategic planning between ecosystems and tradional industry boundaries.While only 31%of all firms surveyed plan enrely through the l

57、ens of digital ecosystems,we must add that this number is up substanally from percentage we found(19%)in a TCS study two years ago.13Which industries are more likely to plot their strategies through a digital ecosystems lens?Our research found it is most common in the following sectors:In contrast,t

58、radional industry planning dominates in these industries:Accommodaon and food service(78%)Consumer packaged goods(69%)Ulies(63%)Oil&gas(62%)Transport and logiscs(61%)Manufacturing(59%)Life sciences(58%)Media&entertainment(52%)Securies and investment companies(48%)Retail(42%)Banking and credit instuo

59、ns(42%)Technology(37%)Insurance(35%)Telecom(35%)Exhibit 2:How companies view opportunies in strategic planning exercisesAll surveysLeadersFollowers55%31%14%42%39%19%66%25%9%Within our industrys historical boundariesIn cross-industry digital ecosystemsAbout equal emphasis on within industry boundarie

60、s and cross-industry digital ecosystemsLevels of ecosystem-based strategic planning are relavely consistent across the globe.Digital ecosystem-only planning is most common in Lan America(35%),followed by the UK and Europe(33%),APAC(31%)and North America(29%).Key Findings Report TCS 2021 Global Leade

61、rship Study11Companies like Amazon,Google,Facebook,Uber,and Nelix dont respect industry boundaries.They see them as permeable sectors they can reach if they possess the right customer data,unique insights on their needs,and ways to efficiently deliver services and products.Consider Rakuten,a Japanes

62、e e-commerce company that got its start in 1997.It has grown into a$13 billion firm14 that has moved into banking,travel and telecommunicaons as well.15 “We built an ecosystem that connects our members to daily services such as shopping,travel,banking,insurance,credit cards,and of course,digital goo

63、ds,”said company CEO Mickey Mikitani in 2015.And,of course,thinking outside the box of ones industry borders has led to the astronomical growth of a number of digitally sophiscated companies.Everyone knows about Amazon,whose latest annual revenue($386 billion)is now 70%of Walmarts($559 billion).16 W

64、almart had a 33-year and$89 billion head start on Amazon in 1995,when Jeff Bezos founded his company in Seale.17(Of course,Walmarts revenue growth,both at its stores and online,has been substanal as well.)Levels of ecosystem-based strategic planning are relavely consistent across the globe.Digital e

65、cosystem-only planning is most common in:Lan America(35%)The UK and Europe(33%)APAC(31%)North America(29%)These results,however,may be skewed somewhat by the industries represented in each region.We believe that the global presence of digital ecosystem strategic planning,where no single region domin

66、ates or lags significantly,simply underscores its importance for all companies.It demonstrates that,like industry boundaries,naonal boundaries are of declining relevance in a global market.Increasingly,opportunies and disrupons are prone to emerge from anywhere,from companies that are thinking hard

67、about how to add value across their digital ecosystem.We also found a meaningful difference between“Leaders”and“Followers”in terms of ecosystem strategizing.Overall,58%of“Leaders”use ecosystem planning,either by using only an ecosystem lens(39%)or by balancing ecosystem thinking with tradional indus

68、try analysis(20%).Only about two-in-five“Leaders”(42%)plan strictly within tradional industry borders,compared to two-thirds(65%)of“Followers”.About a quarter of Followers(25%)strategize through a pure ecosystem lens,and 9%of use a balance of ecosystem and tradional industry analyses.14Macrotrends.h

69、ps:/ was founded in 1962,and its 1995 revenue was$89 billion.Walmarts founding year:hps:/ Walmarts 1995 revenue:hps:/ Leaders include ecosystems when building their future strategy 58%58%35%LeadersFollowersvsKey Findings Report TCS 2021 Global Leadership Study12In digital marketplaces,its hard to av

70、oid the digital plaorms and other digital assets that other firms have built.Companies such as Nelix and HBO stream their digital movies through Amazons cloud business,Amazon Web Services.Amazon is a competor in the streaming business.Companies such as Apple(the iPhone app store)and Google(Android a

71、pp store)are vital distribuon systems for many companies that want customers to download their smartphone apps.We asked senior execuves whether they collaborate with competors in ways such as those previously menoned.We found that only about half(51%)do so today.In digital ecosystems,companies that

72、compete against each other oen benefit from collaborang.Consider the example of streaming pioneer Nelix.Not long aer launching on-demand video in 2007,Nelix began relying on Amazon Web Services(AWS)to host and deliver its offerings.Amazon had already introduced streaming video in 2006,so it was a fi

73、rmly established as a competor.Sll,Nelix saw value in working with AWS,and it seized that value.“For a service like Nelix,elascity and scalability are extremely important,”explained a Nelix manager.(See Exhibit 3.)18The Nelix Tech Blog,Dec.14,2010,“Four Reasons We Choose Amazons Cloud as Our Compung

74、 Plaorm”hps:/ Prime:A Timeline from 2005 to 2020”hps:/ Venkatraman,Boston University professor,in an April 16,2017 arcle on M.hps:/ video quong Eva Tse,Nelix director,big data services.hps:/ To Compete Winning in Digital Ecosystems Requires Collaborating with Competitors All surveysLeadersFollowersA

75、ll others51%49%80%20%23%77%54%46%Do Collaborate with Competors TodayDont Collaborate with Competors TodayExhibit 3:The percent of companies that currently collaborate with competorsKey Findings Report TCS 2021 Global Leadership Study13But this was not the case with the“Leaders”in our survey.Four-fih

76、s of them collaborate with their competors vs.only about one in five Followers.Leaders openness to collaboraon shows a higher degree of engagement within their digital ecosystems.That may explain at least some of their superior revenue and profit performance over the past five years:They realize the

77、y must work with competors to gain tracon in marketplaces in which those competors have crical resources to get into the game.Looking to the future,respondents expect collaboraon to rise or at least remain steady by 2025,across all industries and regions.Overall,42%of companies said they expect to w

78、ork more with competors between now and 2025,while 46%said they dont plan much change,and 12%said they will decrease collaboraon.Leaders appear poised to maintain or boost their current,elevated levels of collaboraon.Far more“Leaders”(55%)than“Followers”(35%)plan to expand such relaonships.Slightly

79、more than a third(37%)of“Leaders”will maintain current collaboraon levels,compared to 53%of“Followers”.Microso knows the value of these types of relaonships well.“Partnerships can exist,at mes uneasily,with competors in specific product or service categories,”wrote CEO Satya Nadella in his 2017 book

80、,“Hit Refresh.”“We compete vigorously with Amazon in the cloud market But why cant Microso and Amazon partner in other areas?We have to face reality.When we have a great product like Bing,Office,or Cortana but someone else has created a strong market posion with their service or device,we cant just

81、sit on the sidelines.We have to find smart ways to partner so that our products can become available on each others popular plaorms.In todays era of digital transformaon,every organizaon and every industry are potenal partners.”22As Nelix,Apple,Microso and many others have discovered,we believe ever

82、y company this decade will need to think in terms of digital ecosystems-and be open to collaborang with current and future competors.22Satya Nadella,CEO of Microso,in his book“Hit Refresh”(HarperCollins 2017),pp.126-127.80%23%LeadersFollowersvsof Leaders are more willing to collaborate with competor

83、s80%of Leaders plan to expand these kinds of collaborave relaonships55%55%35%LeadersFollowersvsKey Findings Report TCS 2021 Global Leadership Study14For both groups,the proporon decreasing collaboraon is about 10%.(See Exhibit 4.)We then asked execuves how important it would be to collaborate with t

84、heir competors in six domains:customer service,sales,markeng,R&D,distribuon and producon.On a scale of 1-5(1=not at all important to 5=highly important),they indicated that there is some importance to collaborang with competors in all six areas(with scores from 3.47 to 3.56).Customer service ranked

85、highest,followed closely by sales and product development/R&D.(Exhibit 5)“Leaders”placed greater importance on collaborang with competors than“Followers”,although they agreed that it was important.“Leaders”rated at least 4(on a 1-5 scale)collaborang in sales,markeng,R&D,producon,distribuon and custo

86、mer service.Followers rangs were between 3.00 and 3.08 substanally lower.“Leaders”placed the highest importance on collaborang with competors in customer service;“Followers”placed greatest important on collaborang with competors in sales.Where They Will CollaborateExhibit 4:Companies plans for colla

87、borang with competors through 2025Decrease collaboraonNot much change plannedIncrease collaboraonTotal(n=1206)Follower(n=404)Leader(n=354)37%9%55%35%11%53%All Others(n=448)38%15%48%42%46%12%Key Findings Report TCS 2021 Global Leadership Study15Reducing the Risk of Collaborang with CompetorsOf course

88、,collaborang with competors carries risks.Talent,data and intellectual property,among other assets,may be vulnerable.Of five methods for managing these risks that we asked about,on average none stood out as being highly effecve(4 or 5 on a scale of 1 to 5).Whats more,only a handful out of the respon

89、dents said they use other approaches.As shown in Exhibit 6,the most effecve opon is to strike win-win contracts in which the partnering offers benefits to both pares.By a wide margin,the least effecve spulaon is to impose strict non-solicitaon of employees.“Leaders”and“Followers”manage collaboraon r

90、isks differently.“Leaders”rated“win/win contracts”as most effecve,followed by“establishing joint ventures with competors”.“Leaders”said the least effecve method was to impose strict non-solicitaon of employees.In contrast,“Followers”appear to put more faith in precauonary measures that depend less o

91、n trust and enlightened self-interest.As the top method,they point to strict legal agreements,followed by withholding certain customer data.“Leaders”also assigned a higher overall importance to all of the risk management methods.(Exhibit 7)Exhibit 5:Importance of collaboraon in six areasCustomer ser

92、viceTotal(n=1206)Ranking scale of 1-5(1=not at all important to 5=highly important);mean averages shown(n=354)(n=404)LeaderFollower3.564.193.063.544.123.083.534.093.033.494.113.013.494.123.053.474.083.00SalesProduct development/R&DMarkengDistribuonProducon/ManufacturingExhibit 6:Effecveness of five

93、strategies for reducing the risk of collaborang with competorsBy striking win/win contracts that are more beneficial forboth pares by partnering with each other3.59Creang and enforcing strict legal agreements3.54Establishing joint ventures with competors3.48Withholding certain customer data3.46Stric

94、t non-solicitaon of employees3.34Scale of 1-5,with 5 being most effecveKey Findings Report TCS 2021 Global Leadership Study16Which Sectors Worry the Most aboutDigital and New CompeonFrom another queson we asked,its apparent that established companies no longer dismiss new digital startups out of han

95、d.The disrupve innovaon lessons of the late Harvard Business School Professor Clayton Christensen apparently have sunk in everywhere.We asked execuves where they expect their companys single most formidable competor to come from by 2025.What about“Leaders”and“Followers”?Only about one in eight“Leade

96、rs”sees their most formidable rival in 2025 to come from their current industry.In contrast,most“Followers”believe their single toughest competor by 2025 to come from their industry.The answers are revealing(Exhibit 8):Less than a third believe it will come from their current industry About a quarte

97、r say it will be a digital company thats here today Nearly a fih believe it will be a new company thats not even around nowExhibit 7:Approaches to reducing risk incollaborang with competors(in ranking order)LeadersFollowersStriking win/win contracts that are more beneficial for both pares by partner

98、ing with each other2(ed)Establishing joint ventures with competors4Creang and enforcing strict legal agreements1Withholding certain customer data2(ed)Strict non-solicitaon of employees512345Exhibit 8:Most formidable compeon between now and 2025Tradional industry playersTotalLeaderFollower31%13%54%23

99、%32%15%26%31%14%18%21%14%2%2%2%Companies from other industriesDigital companies(exisng)New companies(launched over the next 5 years)Not sure/compeon is unpredictableKey Findings Report TCS 2021 Global Leadership Study17Which sectors worry the most about digital companies here now and those emerging

100、in the near future?Technology and media&entertainment companies topped the list of sectors most concerned by digital and startup compeon,cited by 52%of respondents in both industries.This is to be expected:innovaon and disrupon are inherent in technology,and the media industry has experienced extens

101、ive disrupon since the advent of the internet and social media.(Exhibit 9)Exhibit 9:Industries in which companies believe their biggest competor by 2025 will be exisng digital firms or new firms not here today*TechMedia&entertainmentConsumer packaged goods52%52%Insurance50%50%Oil&gasBanking and cred

102、it instuonsRetail50%49%Life sciences47%47%Accommodaon and food serviceUliesTransportaon and logiscs45%42%Healthcare services 37%41%Health insuranceManufacturingTelecom37%35%(including 38%of automakers)Securies and investment firms34%35%Mining30%*Percentage of companies in each sectorKey Findings Rep

103、ort TCS 2021 Global Leadership Study18Essential Takeaway 2WHY THIS MATTERSThese findings underscore the Amazon effect:customer-centricity and innovaon reign supreme in an increasingly digital economy.These two traitsalong with employee experience,diversity,quality and sustainabilityare expected to i

104、nfluence company culture more than shareholder value.AllRespondentsOverall senior leaders ranked innovation,customer centricity and employee experience higher as cultural priorities than shareholder value.Innovaon ranked#1 across all 1200+respondentsRankingInnovaonDiversity,inclusion,equal opportuni

105、tyQuality drivenCustomer centricitySustainabilityLearning,upskilling,reskillingEmployee experienceShareholder valueTransparencyPurpose drivenRisk tolerant11Senior leaders predict that innovation,customers and an employee-centric approach will be a higher priority to organizational culture

106、 than shareholder value Key Findings Report TCS 2021 Global Leadership Study1920Key Findings Report TCS Global Leadership Outlook 2021Deeper DiveTo succeed in a far more digital world,senior leaders believe they must drive their companies more by being customer-centric and innovave and less by focus

107、ing on shareholder value.What will drive companies to be more“digital”by 2025 in business model,products and services,and the way they generate demand and supply of their offerings?What do their leadership teams think are the most important cultural traits to geng their companies there?We asked our

108、survey respondents to rank 11 cultural traits in order of importance,including innovaon,diversity,customer centricity,employee centricity and shareholder value.The No.1 trait they see is innovaon.Shareholder returns finished way down the list,at No.8.(Exhibit 10.)Exhibit 10:Between now and 2025,what

109、 do you anticipate will be the top three most important aspects of your organizaons culture?Overall respondentsRANKING 12Innovaon3Quality drivenDiversity,inclusion and equal opportunity456Customer centricityEnvironmental sustainability7Employee experienceLearning,upskilling and reskilling8910Shareho

110、lder value and financial performanceTransparency11Risk tolerantPurpose driven23MacR,Feb 19,2021,Tim Cook:2020 Was Apples Top Year of Innovaon Everhps:/ Advertorial(sponsored content),Moving at the Speed of Science,hps:/ Findings Report TCS 2021 Global Leadership StudyTech companies are widely seen a

111、s be leaders in this area.Apples phenomenal success stems from a culture of pung people with diverse skills,backgrounds,and passions together,allowing them to do their lives best work,according to CEO Tim Cook.“We have a culture of creavity and a culture of collaboraon.And these two things together,

112、when they intersect,create enormous innovaon,”Cook told an interviewer this year.23Culture,however,is not a one-size-fits all proposion,as Pfizer CEO Albert Bourla said in a recent arcle.He made a cultural statement when he took the reins by ditching the formal CEO boardroom table in favor of a roun

113、d seang configuraon and replacing fancy art with photos of paentsthe companys customers.“The right culture for one company may be completely wrong for another.So,you need to find out what works best for your company,your industry,your colleagues,and build the best culture for you.”Pfizer defines its

114、 culture by four values:courage,excellence,equity and joy.24Successful firms tend to have strong ideas concerning which elements they need to culvate to aract and retain top talent.They place greater emphasis on creang a great digital cultureenhanced by digital communicaons and supportwith a flexibl

115、e and empowering work environment.Our survey respondents appear to concur with Bourlas observaon.From 11 cultural aributes we had them select from,they chose three as most important to creang a healthy corporate culture by 2025:innovaon;diversity,inclusion and equal opportunity;and a quality orienta

116、on.(Exhibit 11)How To LeadCreating Thriving Digital Cultures 22Key Findings Report TCS 2021 Global Leadership Study“Leaders”put customer centricity at the top.“Followers”,in contrast,ranked it sixth,which may help explain their inferior financial performance between 2015 and 2019.Leading companies l

117、ike Amazon aribute much of their success to their customer obsession,which is the top item in the tech giants leadership principles.The item reads,“Leaders start with the customer and work backwards.They work vigorously to earn and keep customer trust.Although leaders pay aenon to competors,they obs

118、ess over customers.”2525A,accessed 04/17/2021,Leadership Principles,hps:/www.amazon.jobs/en/principlesExhibit 11:Between now and 2025,what do you ancipate will be the three most important aspects of your organizaons culture(in ranking order)?All SurveysLeadersFollowers2345678910111InnovaonQuality dr

119、ivenDiversity,inclusion and equal opportunityCustomer centricityEnvironmental sustainabilityEmployee experienceLearning/Upskilling/ReskillingShareholder value|Financial performanceTransparencyRisk tolerantPurpose driven324125A,accessed 04/17/2021,Leadership Principles,hps:/www.

120、amazon.jobs/en/principlesLeaders rank customer-centricity#1 as their most important cultural traitInnovaonDiversity,inclusion andequalopportunityQualitydrivenCustomer centricityEnvironmentalsustainabilityLearning,upskillingand reskillingEmployeeexperienceShareholdervalue andfinancialperformanceTrans

121、parencyPurposedrivenRisktolerantLEADERSFOLLOWERS#1#6LeadersOverall,Leaders ranked customer-centricity#1 as a cultural priority,above shareholder value,while Followers ranked it#6.This finding suggests that higher-performing companies embed a“customer first”mindset across the organization.Essential T

122、akeaway 2(contd)Innovation,customers and an employee-centric approach will be a higher priority to organizational culture than shareholder value Key Findings Report TCS 2021 Global Leadership Study2324Key Findings Report TCS 2021 Global Leadership StudyTo be customer centric,companies must collect h

123、uge volumes of data on customers.Gaining insights from their customers about their experiences,their preferences,their openness to new offerings,their posion in relaon to a companys markeng messages is essenal for companies strengthening exisng revenue streams and determining how to build new ones.C

124、ustomer data is the essenal fuel of modern businesses;the best ones collect more data,analyze it beer,and are quicker and beer at acng on it.When asked where they need to more effectively use data,senior leaders ranked 4 customer-related processes the highest of 8 areas.Overall,they believe they mus

125、t get much better at using data about customers to create demand,provide better support,improve the customer experience and products and services.#1in the areas where senior leaders say their companiesneed to more effecvely use dataRanking:Digitalmarkengcampaigns1Salesiniaves2Customerservice3Product

126、sused bycustomers4All RespondentsDistribuonoperaons5Manufacturing operaons8Employeeperformance 7Suppliers6What To Compete With Leveraging Customer Data25Key Findings ReportTCS 2021 Global Leadership Study25A,accessed 04/17/2021,Leadership Principles,hps:/www.amazon.jobs/en/principlesDeeper DiveCompa

127、nies see using customer data to improve service as their most important priority:55%believe this is the greatest area in which they need to use customer data by 2025.Harvesng customer views on a companys exisng and future products and services is also vital.More than half say improving current produ

128、cts and services and creang new offerings were the second-highest priority for improving their use of customer data(see Exhibit 12).Much lower on the list of priories were efforts to leverage customer data to upsell or cross-sell products and services to current customers and selling insights on cus

129、tomer data to other companies.This view into companies priories shis when using the lens of Leader and Follower firms.“Leaders”place more emphasis on improving all their potenal uses of customer data compared to“Followers”.This is parcularly the case in improving the use of customer data to create n

130、ew products and services.Sixty-three percent of“Leader”companies say they must improve their use of customer data in this fashion,signaling that Leaders idenfy innovaon as a key goal in the next several years.Digital Innovaon SourcesThe previous decade saw a dramac acceleraon in the pace of digital

131、innovaon.But where were companies geng their most successful ideas from?Respondents said they came from a variety of sources,but the greatest credit overall goes to company“leaders and the execuve team.”Exhibit 12:Top areas where companies need the most improvements in using customer data by 2025Pro

132、viding beer customer service55%62%49%LeadersFollowersMaking improvements to exisng products and servicesImproving markeng and salesCreang new products and servicesSelling addional products and services to current customersSelling insights from our customer data to other companies53%57%44%53%63%43%50

133、%57%41%34%42%30%31%33%28%Overall26Key Findings Report TCS 2021 Global Leadership Study26Wall Street Journal,By Aaron Tilley,Feb.2,2021,Who Is Andy Jassy?Jeff Bezos Acolyte Moves From Cloud to Amazon CEO,hps:/ the enre sample,the execuve team and customers were roughly equivalent in importance for in

134、novaon,cited by 37%of respondents.In contrast,“Leaders”gave comparable rangs to front-line employees and channel partners.“Followers”,however,more frequently menoned market research,and less frequently front-line employees,or channel partners.(Exhibit 13)44%of Leaders will look to their leadership t

135、eams todrive innovaon compared to FollowersLeadersvsFollowersLeaders44%28%Leaders will more heavily rely on their executive teams to help drive innovation,up from 39%over the last decade.This finding suggests that company executives must more fully embrace an innovation mindset.If they are truly ear

136、ning their premium compensaon,company leaders and execuves should possess the vision,insights and implementaon skills needed to imagine the future and bring it to life before the market defines a need.The idea for Amazon Web Services,for instance,was inially developed in 2003,during a brainstorming

137、session in CEO Jeff Bezoss living room.The small group of leaders decided to capitalize on Amazons already-massive data center infrastructure to offer“any individual in his or her own garage or dorm room access to the same cost structure and scalability and infrastructure as the largest companies in

138、 the world.”AWS now accounts for more than half of Amazons operang income.2627Key Findings Report TCS 2021 Global Leadership Study26Wall Street Journal,By Aaron Tilley,Feb.2,2021,Who Is Andy Jassy?Jeff Bezos Acolyte Moves From Cloud to Amazon CEO,hps:/ addion to asking respondents which three source

139、s were most responsible for digital innovaon over the past 10 years,we asked where they thought the best three sources would be for innovaon to emerge from between now and 2025.There were significant differences between expected sources for“Leaders”and“Followers”.(Exhibit 14)Top Future Sources of Di

140、gital Innovaon More Leaders value innovation and look for it in more diverse places than“Followers”,such as customers,front-line employees,middle managers and market research.The findings also suggest that Followers need to look at new sources of innovation to be more competitive in the mid-2020s.Ex

141、hibit 13:Best sources of digital innovaons over the last decade(n=1206)(n=354)(n=404)Our companys leaders/execuve teamOur companys middle managersOur front-line employeesOur customers directly(including customer data and analycs)Our suppliersAcademiaMarket researchChannel partners that bring ouroffe

142、rings to customersTotalLeaderFollower37%39%36%27%29%24%34%38%28%37%38%30%24%32%16%30%38%23%33%34%30%14%19%11%Exhibit 14:Differences between Leaders and Followers for expected future sources of innovaonFollowersBest Sources of Digital Innovaon Through 2025*Menoned by at least 33%of respondents1278345

143、633%of Leaders will mine innovaon from more sources than FollowersLeadersLeaders/execuve team*Market research*Front-lineemployees*Customers directly(including customer data and analycs)*Middlemanagers*Channel partners that bring the companys offerings to customersSuppliersAcademiaMarket research*Cus

144、tomers directly(including customer data and analycs)Front-lineemployeesLeaders/execuve teamMiddlemanagersChannel partners that bring the companys offerings to customersSuppliersAcademia28Key Findings Report TCS 2021 Global Leadership Study27MarketWatch,Jan.25,2021.hps:/ 15,2020,by Hail Kos,7 Leaders

145、hip Lessons From Nelix CEO Reed Hasngs New Book hps:/ least a third of“Leaders”menoned five of the eight sources to be in their top three:company execuves,market research,frontline employees,customers,and middle managers.The only source menoned by at least a third of the“Followers”was market researc

146、h.Like“Leaders”,“Followers”ancipate relying far more on market research for new digital ideas this decade.However,“Leaders”arent pung as many eggs in that basket.In short,“Leaders”look for digital innovaons in many more places than do“Followers”.One for“Leaders”is middle management.This has helped d

147、igital pioneers such as Amazon and Nelix move quickly on digital businesses.Consider Nelix.At the$25 billion27(revenue)pioneer of streaming movie entertainment,its considered bad form for anyone to hold back earnest,strongly felt cricism,even when that requires a subordinate to disagree publicly wit

148、h her boss.A key example where this yielded an important innovaon arose when a middle manager felt strongly that the video service should enable customers to download videos,in addion to being able to stream them.Co-CEO Reed Hasngs and Chief Product Officer Neil Hunt believed downloading was a distr

149、acon unworthy of company resources.Two subordinates who disagreed conducted research in India and Germany and found that a large number of people in those countries used YouTubes download funcon.They argued that for Nelix to succeed overseas,the funconality was key.Their research made its way up the

150、 chain of command,and Hasngs changed his view.“Its fine to disagree with your manager and implement an idea she dislikes,”Hasngs said.“We dont want people pung aside a great idea because the manager doesnt see how great it is.”28 To paraphrase the two-me Nobel Prize winning chemist and peace acvist

151、Linus Pauling,the best way to have good ideas is to have lots of them and throw away the bad ones.Eliminang unworthy ideas is essenal to digital innovaon,given the large numbers of ideas that smart employees dream up and the limited resources available for pursuing them.But what are the best ways to

152、 choose which digital innovaons should move into the developmental stage?Our survey found that the preferred method is to conduct customer research,assess needs and wants and gauge sasfacon with current market offerings.That was followed by standard risk management pracces that use rigorous cost-ben

153、efit analysis.“Leaders”and“Followers”concurred with the overall survey on these first two methods but reversed the order of the third and fourth.Specifically,“Leaders”and“Followers”prefer to develop a venture-capital style porolio of innovaons that get incremental funding based on progress,rather th

154、an using proof of concept and iterave use-case modeling to create minimum viable products that are tested with customers.As with other responses,“Followers”dont value any of the approaches nearly as much as“Leaders”do,on the scale of 1-5.(Exhibit 15)29Key Findings Report TCS 2021 Global Leadership S

155、tudyWhat To Compete With How Organizations Choose Digital InnovationsCustomer opinion research to assess needs/wants and sasfacon with current market offeringsTotalLeaderFollower3.404.002.823.383.952.843.333.892.673.313.922.71Standard risk management pracces that userigorous cost benefit analysisPro

156、of of concept and iterave use-case modelling tocreate minimum viable products that aretested with customersA venture capital-style porolio of innovaonsthat get incremental funding based on progressExhibit 15:How digital innovaons move to development stageThe last decade saw phenomenal leaps in compu

157、ng technology,and thus what companies could do with it.For example,cloud services providers ramped up their capabilies,which had made a host of compute-intensive tasks available to companies,large and small.Arficial intelligence and machine learning(combined with the enormous processing power of clo

158、ud vendors)has opened the door wide for big companies to automate tasks seen in the past as requiring manual labor,both blue collar and white collar.Virtual reality systems have become so advanced that they can help consumers“try on”clothes from their home computers or see how furniture displayed on

159、line might look in their living rooms.Many senior execuves are quite aware of these technology advances.In our experience,many are already envisioning how others could be used in their organizaons.For this reason,we asked a queson to gauge what execuves thought would be among the greatest new tech-e

160、nabled capabilies by 2025.These capabilies covered a range of areas:markeng,sales,product development,finance,service,distribuon,producon and human resource management.We asked them to choose their top three out of 10 such capabilies,and then rank order those three as the ones they saw as having the

161、 most organizaonal impact.The results were eye-opening.Personalized sales and markeng campaigns,and automated and customized customer experiences,topped the list.Why were we surprised?Keep in mind that the execuves who took the survey were not in markeng,sales or customer experience areas.They were

162、largely in strategy and operaonal roles.And yet they said technologys fast-evolving impact would have the biggest impact on the way the company marketed,sold and served customers.What was also surprising was that using fast-evolving technology to improve employee and team producvity and happiness wa

163、s also high on the predicon list.It ranked third across all surveys,and second among the“Leaders”.30Key Findings Report TCS 2021 Global Leadership Study3How to CompeteThe Most Impactful Digital Innovations Predicted to Hit by 2025Essential Takeaway 2(contd)31Key Findings Report TCS 2021 Global Leade

164、rship Study3Leaders ranked digital capabilies that improve employee sas-facon,producvity and the ability to collaborate#2Leaders believe that digitally empowering employees will be more impactful to the organi-zation,including over automation of real-time analysis of the companys financial condition

165、Highly personalized sales and markeng campaignsImproving employee sasfacon,producvity and team collaboraonPersonalized,automated and higher value customer experiencesMass customizaon of products and servicesR&D simulaons that prove the feasibility of product concepts and engineering desig

166、nsSophiscated,automated post-sales support and troubleshoongReal-me automated analysis of the companys financial condionHighly trackable and traceable distribuonProducon/manufacturing operaons that can switch rapidly from global to local supplyManufacturing that can be shied to customers premises(li

167、ke 3D prinng)LeadersSll emerging in terms of its importance:manufacturing shied to customers premises through 3D prinng.Respondents ranked this capability least likely to make the greatest impact by 2025(see Exhibit 16).Innovation,customers and an employee-centric approach will be a higher priority

168、to organizational culture than shareholder value32Key Findings Report TCS 2021 Global Leadership Study3Exhibit 16:Digital capabilies predicted to have the most impact on the organizaon by 2025(in ranking order)All SurveysHighly personalized sales and markeng campaignsHighly personalized sales and ma

169、rkeng campaignsPersonalized,automated and higher-value customer experiencesPersonalized,automated and higher-value customer experiencesImproving employee sasfacon,producvity and team collaboraonLeadersFollowersReal-me automated analysis of the companys financial condionImproving employee sasfacon,pr

170、oducvity and team collaboraonPersonalized,automated and higher-value customer experiencesHighly personalized sales and markeng campaignsSophiscated,automated post-sales support and troubleshoongReal-me automated analysis of the companys financial condionSophiscated,automated post-sales support and t

171、roubleshoongR&D simulaons that prove the feasibility of product concepts and engineering designsR&D simulaons that prove the feasibility of product concepts and engineering designsImproving employee sasfacon,producvity and team collaboraonMass customizaon of products and servicesMass customizaon of

172、products and servicesR&D simulaons that prove the feasibility of product concepts and engineering designsReal-me automated analysis of the companys financial condionSophiscated,automated post-sales support and troubleshoongMass customizaon of products and servicesHighly trackable and traceable distr

173、ibuonHighly trackable and traceable distribuonManufacturing that can be shied to customers premises(i.e.,3D prinng)Manufacturing that can be shied to customers premises(i.e.,3D prinng)Manufacturing that can be shied to customers premises(i.e.,3D prinng)Highly trackable and traceable distribuonProduc

174、on/manufacturing operaons that can switch rapidly from global to local supplyProducon/manufacturing operaons that can switch rapidly from global to local supplyProducon/manufacturing operaons that can switch rapidly from global to local supply1.2.3.4.5.6.7.8.9.10.The ability to use technology capabi

175、lies and business processes to build customer relaonships is an emphasis at CVS Health,the pharmacy and retail chain that has become a health care provider with in-store medical clinics and vaccinaon services,among other services.The company connued to build on its HealthHUB concept,in which store l

176、ocaons provide clinical services,telehealth and access to health care services and informaon both in-store and at home.“By combining the data,services,and capabilies of our providers,health plans,community partners,health technology,and pharmacists,we unlock new avenues for proacve,prevenve,and pers

177、onalized care.In our model,new and meaningful channels for health care offer individualized,daily support,”the company noted in late 2020.29 29“Building paent engagement by connecng local communies to a cohesive health care network,”CVS Health,September 9,2020,accessed April 15,2021 at hps:/ Finding

178、s Report TCS 2021 Global Leadership Study3Essential Takeaway 3 WHY THIS MATTERSPursuing digital business opportunies comes with risk.As companies products,services and processes for creang demand and supply become increasingly digital,their exposure to cyberaacks widens significantly.The findings su

179、ggest that organizaons need to ensure their systems are secure across all business units and disciplines,especially their customer,finance and intellectual property data.Finance was ranked#1 by senior leaders as the area predicted tohave the greatest number of cyberaacks between now and 2025All Resp

180、ondentsSenior leaders rated ranked finance,followed by customer databases and R&D,as the top areas predicted to have the highest number of cyberattacks between now and 2025.FinanceCustomer databasesResearch&developmentLegalSales/e-commerceMarkengDistribuon/supply chainHuman resourcesEcosystem partne

181、rsManufacturing/produconAll respondentsSenior leaders predict in an increasingly digital business environment,many areas of the organization will be newly vulnerable to cyberattacks34Key Findings Report TCS 2021 Global Leadership Study3Deeper DiveIn an increasingly digital business enviro

182、nment,senior leaders now see many areas of their organizaons to be vulnerable to cyberaacks beyond the IT funcon.Of course,pursuing digital business opportunies comes with risk.The companies we surveyed are clear-eyed that cyberaacks are a factor in a digital ecosystem world.We asked about greatest

183、number of aacks expected to be between now and 2025-outside the IT funcon,which in our previous years surveys always has been the top target.Asked where they expect to see the greatest number of cyberaacks in the business world in general between now and 2025,they said the finance department,followe

184、d by customer databases.Aempts to steal corporate secrets via cyberaacks on R&D organizaons were third,followed by legal,sales funcons and markeng(see Exhibit 17).As products and processes become increasingly digital,many areas of the organizaon are viewed as vulnerable to cyberaacks.Our findings su

185、ggest that companies need to beer secure their systems across business funcons,and not just in the IT organizaon.The cyber risk is,of course,even greater for companies that play major roles in the worlds financial systems;they handle much more money than the average non-financial Fortune 500 company

186、.JPMorgan Chase CEO Jamie Dimon menoned cyber risk in the banks most recent annual report.“We have pointed out to our shareholders before that having disciplined cyber hygiene is almost as important as the money you spend,”he wrote in his leer to shareholders.JPMorgan spends more than$600 million a

187、year on cybersecurity,he said.30 Exhibit 17:Senior leaders rated ranked finance as the#1 target,followed by customer databases and R&D as the top three areas most vulnerable to cyberaacks23456789101FinanceR&DCustomer databasesLegalSales/ecommerceDistribuon/supply chainMarkengHuman resourcesEcosystem

188、 partnersManufacturing plants/producon/procurement30JPMorgan Chase&Co.2020 annual report,CEO Jamie Dimon leer to shareholders.Accessed April 18,2021.hps:/ Findings Report TCS 2021 Global Leadership Study3Essential Takeaway 4 Despite predicng far greater digizaon of their businesses and the marketpla

189、ces in which they will compete by 2025,most believe that opmizing what theyre doing today will be more important than embarking on far-reaching innovaon in strategies,offerings,business processes and leadership approaches.A linchpin decision for senior leaders is whether to focus digital resources o

190、n innovang in new areas or opmizing that which already exists.In the four categories we asked aboutstrategy,products and services,demand and supply processes and leadership approachesmost respondents said it will be WHY THIS MATTERSSenior leaders believe they will be focused on opmizing their curren

191、t business,but overall study findings indicate that innovaon will be a major factor in determining their organizaons success in the mid-2020s.This suggests that despite predicng far greater digizaon of their businesses and the marketplaces in which they will compete by 2025,most companies are signif

192、icantly underesmang how much innovaon they will need by then.Deeper DiveAll Respondents42%58%vsInnovaonOpmizaonof senior leaders on average predict that opmizaon of their current business model and offerings will be more important for organizaonal success than innovaon58%When asked which will be mor

193、e important between now and 2025 in their strategy,products and services,demand-and supply-generation processes,and culture and talent management approaches,most senior leaders chose“optimization”across each arena.Optimization ranks as more important than innovation for organizational growth and pro

194、fitability between now and 202536Key Findings Report TCS 2021 Global Leadership Studymore important between now and 2025 to opmize what they already have,rather than seek more path-breaking innovations.The biggest difference between“Leaders”and“Followers”is in strategy:45%of“Leaders”priorize innovao

195、n in strategy(defined as,“launching or acquiring new businesses to enter new markets”)compared to only 38%of“Followers”.On average,a greater percentage of“Leaders”appear to be willing to look more boldly at launching or buying new businesses to enter new markets.(Exhibit 18)In contrast,“Leaders”are

196、less aggressive about instung new approaches to running their companies(39%vs 43%for“Followers”),and more intent on improving their culture and opmizing how they currently lead and manage their people(61%vs 57%).We interpret this as a sign that“Leaders”already have an edge in their management pracce

197、s,and“Followers”are trying to catch up and instute new leadership pracces.To opmize leadership,“You have to have a very compelling goal for the company,”said Elon Musk,CEO of electric car pioneer Tesla and SpaceX.“If you put yourself in the shoes of someone whos talented at a world level,they have t

198、o believe that theres potenal for a great outcome and believe in the leader of the company,that youre the right guy to work with.”Musk achieves this through inspiraon.“The thing that makes Elon Elon is his ability to make people believe in his vision,”Dolly Singh,former HR head at SpaceX has said.“T

199、he guy is pure ambion.Hes three or four steps ahead.Most of us cant conceive these things working;he cant conceive it failing.Period,”Jim Cantrell,SpaceXs first engineer,has said of Musk.31 31One37PM.com,By Stephanie Maida,September 25,2020,Elon Musks Leadership Style:10 Strategies That He Uses Dail

200、y hps:/ innovaon in strategy(defined as,“launching or acquiring new businesses to enter new markets”)compared to only 38%of“Followers”.DimensionAreas for Innovaon or OpmizaonLeadersFollowersProducts/services Determining which offerings to have for chosen businesses and marketsStrategy Businesses and

201、 markets to be inLaunching or acquiring new businesses to enter new markets(innovation)45%55%42%38%62%42%58%47%53%58%44%56%39%61%43%57%Improving our exisng businesses in their current markets(optimization)Launching new products and services(innovation)Improving the products and services we currently

202、 have(optimization)Creang new ways to generate demand for our offerings and provide supply(innovation)Improving how we currently generate demand for our offerings and provide supply(optimization)Instung new approaches to leading and managing our people,and making major changes to our organizaons cul

203、ture(innovation)Improving the ways we currently lead and manage our people,and making improvements to our culture(optimization)Demand and supply processes How to generate demand and supply for product/service offerings Leadership approaches How to manage culture and talent Exhibit 18:How Leaders and

204、 Followers view areas for innovaon and opmizaon37Key Findings Report TCS 2021 Global Leadership Study3Since the biggest difference between“Leaders”and“Followers”on the innovaon vs.opmizaon scale was in strategy(a higher percentage of“Leaders”look for new opportunies in new businesses or new markets)

205、,we wanted to know how they assess such opportunies.What can be learned from the most financially successful companies of the last five years in how they look for new opportunies?How do their execuve teams think differently than the companies with the worst financial performance?We asked several que

206、sons to determine how“Leaders”differ from the“Followers”on this front.We did so by having them rank“internal”factors and“external”factors in deciding where they will play.By internal factors,we mean elements over which a company has control in a market or business.They include:By external factors,we

207、 mean elements that are largely or totally out of a companys control.They ones we asked about were:For all the surveys combined,of the four highest-rated factors,three are ones that companies have control over:“alignment to company purpose,”“exisng presence in the market,”and“exisng sales and marken

208、g capabilies.”A markets growth rate,an external factor,was ranked secondand with good reason as it rarely pays to invest in a shrinking or stagnant market.Nonetheless,across all surveys the 10 factors were rated on a scale of 1-5 fairly closely,from 3.30 at the lowest rang to 3.43 at the highest.(Ex

209、hibit 19)1.Having an exisng presence in a market2.Having sales and markeng capabilies to compete in that market3.Whether a business or market is aligned to the organizaons core purpose4.A companys ability to have a beneficial environmental impact in a market5.A market/businesss cultural fit with a c

210、ompany1.Degree of compeon in a market2.Polical,fiscal and regulatory environment3.A markets growth rate4.A markets size5.A companys brand recognion in a market(such recognion is outside of a companys control in markets it hasnt been in before)How to CompeteHow Leading Companies Size Up Their Growth

211、Opportunities38Key Findings Report TCS 2021 Global Leadership Study“Leaders”,however,answered this queson much differently than“Followers”,in two significant ways.First,“Leaders”exhibit far greater convicon than“Followers”concerning the value of all 10 factors.On average,they ranked the factors from

212、 3.96 to 4.09.“Followers”scores ranged between 2.64 and 2.87 more than a whole point lower on our 1-5 scale in each instance.In our view,“Leaders”appear to be more comprehensive than“Followers”in analyzing the factors that determine whether they should enter markets and businesses they arent already

213、 in.(Exhibit 20)Exhibit 19:Importance of 10 factors in deciding in which businesses and markets to compete through 2025(scale of 1-5,with being of highest importance)Alignment to organizaons purposeGrowth rate of the marketExisng presence in those marketsExising sales and markeng capabiliesBrand rec

214、ognion in those marketsSustainability(i.e.,environmental impact)Degree of compeonSize of the marketPolical,fiscal and regulatory environmentCultural fit with our company3.433.413.403.393.363.363.353.343.343.3039Key Findings Report TCS 2021 Global Leadership StudySecond,“Leaders”ranked the factors di

215、fferently.Most significantly,“Leaders”ranked“size of market”second,and“Followers”put it last.In contrast,for“Leaders”“brand recognion”was the lowest priority,while“Followers”placed it third.There was also a large discrepancy over the“degree of compeon,”which was the third highest factor for“Leaders”

216、,and seventh for“Followers”.Taken together,these rankings suggest that leaders are more inclined to move boldly based on market size,even if they lack a recognized brand-as long as the compeon is not excessive.(Exhibit 21)Microsos recent announcement that it would spend about$20 billion32(its second

217、-largest acquision ever)to purchase a company that develops speech recognion and arficial intelligence soware(Nuance Communicaons)illustrates this noon of looking for large and fast-growing markets.In its public discussions,Microso explained Nuances aracveness as an acquision because of its presence

218、 in the booming healthcare market.Buying Nuance would nearly double,to about$500 billion,the total addressable health care technology market in which Microso competes.3332Microso press release,April 12,2021.hps:/ York Times,April 12,2021,accessed April 18,2021.hps:/ 20:How Leaders and Followers dete

219、rmine which businesses and markets to compete in between now and 2025(scale of 1-5,with 5 being of highest importance)Growth rate of the marketSize of the marketExisng presence in those marketsDegree of compeonAlignment to organizaons purposeExising sales and markeng capabiliesPolical,fiscal and reg

220、ulatory environmentSustainability(i.e.,environmental impact)Cultural fit with our companyBrand recognion in those markets4.092.854.092.644.082.794.082.754.062.874.052.754.032.744.022.764.002.753.962.80LeadersFollowers40Key Findings Report TCS 2021 Global Leadership StudyOf course,when Microso,as a s

221、oware and cloud services company,buys another soware company,it is not entering a whole new sector or ecosystem.However,the digizaon of other sectors is increasing the appete for firms to seek profits in other pockets of its ecosystem.A great example is the$300 billion U.S.auto insurance market.It i

222、s now aracng auto manufacturers,34 which can install digital sensors in their cars to track customer driving habits.Carmakers that have entered the insurance business can be lauded for seizing an opportunity that is within their digital ecosystem,but outside their tradional industry boundary.35 But

223、beyond the ability to install sensors,however,one queson is whether such companies possess the internal competencies needed to succeed in this business.Do they have the sophiscated digital capabilies that auto insurers have amassed over the years?Automakers may be able to collect precise data.But ca

224、n they make robust use of it?Or are they beer off partnering with exisng insurers in their digital ecosystem?Of course,these factors are important,too,but at mes they can ence companies that lack key capabilies to compete successfully.This is especially true when a markets size and/or growth rate ov

225、ershadows internal factors that determine compevenesslike an outmatched boxer lured by the payday in a prize fight.Given the importance of rigorously evaluang internal factors when determining where to compete,we were surprised that“Leaders”assigned the highest ranking to three external factors.Mayb

226、e an exploding market can cover up many newcomers missteps.Yet we note that even“Leaders”lowest-ranked factor(brand recognion)received a far higher average score than“Followers”highest-ranked factor.This suggests that“Leaders”assign greater weight to these factors overall,so their aenon to internal

227、factors is sll strong.34 IBISWorld data,June 16,2020.hps:/ Street Journal,Nov.18,2020.hps:/ 21:How Leaders and Followers rank 10 factors that determine in which businesses and markets they playGrowth rate of the marketSize of the marketExisng presence in those marketsDegree of compeonAlignment to or

228、ganizaons purposeExisng sales and markeng capabiliesPolical,fiscal and regulatory environmentSustainability(i.e.,environmental impact)Cultural fit with our companyBrand recognion in those markets21046179583FactorLeaderRankFollowerRankThe study findings suggest that while senior execuves a

229、nd their leadership teams connue to be focused on overall business performance,they are evolving from tunnel vision around delivering shareholder value to a more customer-and employee-centric organizaon,and with good reason.Customers and employees drive the business.In fact,our Leader companies foun

230、d their top sources of digital innovaon came from employees and customers.Most significant perhaps from the study findings was that all of the senior execuves in our survey idenfied an accelerated digital economy on the horizon,yet few are preparing to innovate accordingly and may end up lacking the

231、 capabilies to successfully compete.The survey uncovers nine recommendaons for organizaons to consider that can enable them to successfully navigate their business the next few years including:Parcipaon in cross-industry digital ecosystems will be increasingly important Senior execuves and their lea

232、dership teams,especially in companies with highly digital products and services,need to quickly step out of their comfort zones and devise strategies with cross-industry digital ecosystems in mind.Thats where they can expect to find lucrave opportunies and serious new compeve threats.1.Winning in a

233、world of ecosystems requires embracing the compeon Operang successfully in digital ecosystem will require working with companies that are competors today,or will be in the future,and which will own key pieces of the digital ecosystem infrastructure.No company can be a self-sufficient island anymore

234、in a digitally interconnected world.2.Make customer centricity the most important company cultural value The way to find robust digital ecosystem opportunies is to start from the outside and work backwards by looking at your customers today and major digital improvements you could make in their busi

235、nesses.That requires a new level of customer centricity.3.Summary:Our Recommendations41Key Findings Report TCS 2021 Global Leadership StudyLeverage company data more effecvely Overall,companies believe they must get much beer at using data to create demand for their offerings.Digital markeng campaig

236、ns was the top area where senior leaders believe they must use data more effecvely,followed by sales and customer service.To be customer centric,you must connually capture enormous amounts of digital data on your interacons with them and especially the new goldmine of data from their usage of your d

237、igitally enabled products and services.4.42Key Findings Report TCS 2021 Global Leadership StudyEmbed innovaon at every level of the business To invent winning digital offerings for customers,companies must seek ideas broadly from(of course)customers themselves but also from employees at every level,

238、suppliers,channel partners and others not just from the leadership team.5.A digital economy needs digitally empowered employeesTo keep customers front and center,employees must have license to be innovave and the skills and technologies to collaborate effecvely across me zones.In a compeve world for

239、 talent,customer loyalty is only sustainable in companies that have built tremendous employee loyalty and localized empowerment.In other words,the employee experience is as important as the customer experience to enable a high-performing enterprise.6.More TCS 2021 Global Leadership Study findings fo

240、r key industries and countries will be released soon.More TCS 2021 Global Leadership Study reports43Key Findings Report TCS 2021 Global Leadership StudyPredicons(wrap-up)reportInfographics/SlideShareKey Findings reportInfographics/SlideShareIndustry+country reports(28)Infographics/SlideSharePredicon

241、s(wrap-up)reportebookLeader/Follower reportsInfographics/SlideShareResearch Process and Participant Demographics How We Conducted the StudyStudy Quality and Rigor44Key Findings Report TCS 2021 Global Leadership StudyThe TCS Thought Leadership Instute scoped the research topic and issues to explore l

242、ast summer with a number of leaders at Tata Consultancy Services.The survey consisted of 24 quesons and was taken online.The survey instrument is coded such that the respondents are flagged or rejected altogether based on criteria such as:Time Spent Not enough me on the quesons(less than 15 mins),an

243、d the respondent was disqualified.Survey AenonRecords with“lazy”responses with a series of flat-line or straight-line responses on three or more quesons were marked for further review.ValidaonSurvey responses on quesons around organizaons revenue and profitability CAGR were cross-checked from public

244、 sources and any records where survey responses didnt meet secondary verified data points were flagged for further review.Geo Locaon ValidityTo ensure the respondent was located at and parcipated from the target countries per the research scope,the geo IP was captured.Digital Finger PrinngDigital fi

245、ngerprint checks were built into the survey,blocking respondents from re-entering the survey once it was completed or terminated.Demographics of Our Research ParcipantsAbout a third of the 1,206 execuves surveyed were from North America,and another third were from the UK and Europe.Some 21%were from

246、 Asia-Pacific countries,and 12%were from Lan America-based firms.45Key Findings Report TCS 2021 Global Leadership StudyTable 1:Surveys by regionNorth AmericaUK&EuropeAsia-PacificLan AmericaNorthAmerica33.4%12.4%33.3%20.9%LanAmericaEuropeAsia-PacificTable 2:Surveys by company headquarters country(1,2

247、06 total)0500300350400USUKGermanyJapanIndiaCanadaBrazilChinaAustraliaNetherlandsFranceSingaporeNew ZealandColombiaMexico35230173060By Industry Sector46Key Findings Report TCS 2021 Global Leadership StudyResearch parcipants came from a wide variety of industries,both

248、product and service.No one industry represented more than 10%of the total populaon.Company SizeAll parcipants work in companies or divisions/businesses with at least$1 billion in annual revenue.The average revenue was$13.9 billion;the median was$4.7 billion.Some 26 surveys came from companies with a

249、t least$100 billion in revenue.About 14%work in companies with at least$20 billion in revenue.About a third work in companies with revenue of between$5 billion and$20 billion.A slight majority were companies between$1 billion and$5 billion in revenue.Table 3:Surveys by global industry sectors8%7%4%8

250、%7%5%7%3%8%5%6%10%2%4%10%3%Banking and Credit InstuonsInsuranceSecuries&Investment ServicesRetailConsumer Packaged GoodsMedia&EntertainmentTransportaon and LogiscsAccommodaon and Food Services(hotels,hospitality,restaurants)Life SciencesHospitals&other healthcare service providersTechnologyManufactu

251、ring(discrete manufacturing,process manufacturing)Oil&Gas(exploraon and refining)MiningUlies(electricity,gas,water)Telecom47Key Findings Report TCS 2021 Global Leadership StudyBy Parcipant Job CategoryNearly half(45%)the research parcipants are in strategy development roles.About a quarter were divi

252、sional heads,CEOs,and COOs.About 30%were operaonal leaders and directors.Table 4:Surveys by company size0%10%20%30%40%50%60%USD$200 billion or greaterUSD$100 billion to less than$200 billionUSD$75 billion to less than$100 billionUSD$50 billion to less than$75 billionUSD$20 billion to less than$50 bi

253、llionUSD$10 billion to less than$20 billionUSD$50 billion to less than$10 billionUSD$1 billion to less than$5 billion0%2%1%2%9%14%18%54%Table 5:Surveys by job category0%5%10%15%20%25%30%Director of OperaonsVP/SVP/Head OperaonsDivisional/Business unit headDirector of StrategyVP/SVP/Head StrategyChief

254、 Strategy Officer(CSO)Chief Operaons Officer(COO)Chief Execuve Officer(CEO)16%14%24%26%17%2%1%1%Contemporary global brands are demanding more digital services than ever from their markeng agencies.As always,they are looking for creave content that resonates with consumers and business audiences.But

255、increasingly they expect these agencies to address complex challenges in markets where performance depends on compeng against Amazonian behemoths and culling the favor of TikTok influencers.“The creave agency is becoming a full-scale tech-shop,”said the global chief operang officer of a mulbillion-d

256、ollar markeng firm.“Digital has had a profound impact.The range of problems we solve and services we offer has mulplied.”Consider the dilemma of retailers,whose margins are being constrained by the large online plaorms through which their products are increasingly sold.36 “Marketplaces like Amazon a

257、nd Walmart are telling them,Listen,I own the last mile,the distribuon and the customer.I ence them to shop your products.So Im not happy with the margin Im geng.I want more.The two sides are becoming frenemies,”the markeng agency execuve says.E-commerce players also have a ringside seat on the popul

258、arity of their vendors products:the ability tomonitor their success every day and everywhere.That can tempt e-commerce companies to sell theirprivate label versions,the execuve says.“These plaorms can easily understand the supply chain andmanufacturing,enabling them to launch compeve products,”he sa

259、ys.Meanwhile,privacy concernsare leading to the eliminaon of third-party website cookies,which drive targeted ads.This is impairingan important channel that companies use to market directly to customers,making them even moredependent on the online marketplaces.37In a fast-developing online markeng l

260、andscape,that has called for the markeng agency to bring new offerings to the table not just creave adversing and media buying.For example,for one of its clients(a coffee retailer),the agency helped embed a cellular network chip in its smart coffee machines.The chip lets consumers order new coffee s

261、upplies,either by voice requests through the machine,or by subscribing to a service that maintains the consumers coffee inventory.“The program knows what type and how many cups you are brewing.It can suggest new flavors based on your preferences,and unlike a subscripon program with Amazon which send

262、s fixed quanes at fixed intervals,it knows your actual inventory and restocks as needed.”The chip was necessary because,although modern appliances tend to be WiFi-enabled,only a small percentage of the populaon actually connect their appliances to their network.Using the chip,the machine can communi

263、cate over the 2G or 3G spectrum,which is virtually free to use,and the consumer doesnt need to bother connecng the machine or paying for monthly access to the network.36 The New York Times,Dec.19,2019,“Prime Power:How Amazon Squeezes the Businesses Behind Its Store.”Accessed May 25,2021.hps:/ H,2021

264、,“The Death of the Third-Party Cookie:What Marketers Need to Know About Googles Looming Privacy Pivots”Accessed May 25,2021 hps:/ Stories:What Leaders Do Differently48Key Findings Report TCS 2021 Global Leadership StudyLeadership Success Story 1:Invenng the Future of Digital Markeng49Key Findings Re

265、port TCS 2021 Global Leadership Study“Were starng to see more innovave technologies in the space of augmented reality,virtual reality,voice,and IoT,becoming quite prominent,”the execuve says.As another example of how markeng agencies are using technology to solve crical business problems,a major aut

266、omaker was frustrated that its big-city dealerships could only display a limited number of vehicles.So the markeng agency helped the car company develop augmented reality technology by which customers can visualize on their digital devices what its like to drive the car a vehicle for which the custo

267、mer has chosen the color and features she wants.“You can assemble the enre car in augmented reality and get inside the car,see what it looks like while youre driving it,”he explains.“The manufacturer can even do this by sending a pair of cheap cardboard glasses that you slip your phone into;you then

268、 configure the car by focusing your eyes on opons on part of the screen.”Large markeng agencies are tailoring content to specific social media channels.To reach consumers directly,social media has become a preferred opon for many companies,parcularly with third-party website cookies going away.Unlik

269、e online marketplaces,social channels are not involved in distribung products and services,so they are lower cost and less of a threat.“In the past,we were creang short-form or long-form videos,doing photo shoots and then delivering content through tradional channels,such as TV and print media.Now,y

270、ou have to assemble the content differently,reformat it and recode it based on the channel.”Given the breadth of requirements and the speed of change,this needs to happen dynamically,in real me.Rather than staging products for a live shoot,the agencies employees conceptualize it,and the tech staff a

271、ssembles scenes using applicaons like CGI,VFX,Maya and Unityall without a physical studio.Imagine,for instance,a promoon for an outdoor sofa:It may be shown on a pao or in front of a pool,but only the sofa image is real.This requires specific technical skills,and the demands are becoming even more c

272、omplex.Unl recently,it was extremely expensive to put humans in computer-generated content,because of the enormous processing power required to render human aributes.That has changed.The processing space is now available for lease from public cloud vendors.Leading markeng agencies will need to adapt

273、 and augment people in their computer-generated content as well.The markeng agency president concludes that the industry is contending with a new digital reality.“We have reached the point where technology and infrastructure arent our biggest hurdles anymore.That was the struggle over the past 10 ye

274、ars.Now,the biggest hurdle is people:How do I train my creave director to be more of a technician,to capitalize on everything the technology offers and the market demands?These people are demigods who build mulbillion-dollar brands.Its their job to imagine the future.How do I get them to do it throu

275、gh a new lens?”To make this transformaon,the firm is building a culture where everyone must innovate.“We cant have the creave people performing creave tasks while the technology people are merely taking orders,”the execuve says.Instead of having creave staff and developers,“we call everyone an arst,

276、”he says.The firm is developing new career paths,providing training to meld technology and creavity,and developing collaborave projects with leading universies to culvate“blended people.”It is also hiring employees with a different profile.“We dont just want to hire from MIT,”he says.“We want people

277、 with a humanies background,because its easier to teach technology than to teach human principles.We want people who can use both sides of their brain equally.”With the greater bandwidth that 5G is bringing,and with computaonal capacity geng faster and cheaper,the evoluon may be even quicker than in

278、 the past.“We are beyond the demand hype.We are beyond the infrastructure and data availability hype.We are beyond the consumer expectaon hype.We are beyond even the devices needed to experience hype,because now you have a phone which is more powerful than any other PC that you had in the past,”he s

279、ays.“This is a new age.Its not happening 10 years from now,it is happening tomorrow,and in certain cases,today.”50Key Findings Report TCS 2021 Global Leadership StudyLeadership Success Story 2:Updang the Legacy Media Culture to Confront Digital DisruponIn the hyper-compeve media market,retooling the

280、 culture of legacy companies is an urgent imperave.“The old culture was fine for the old market,”says a European execuve of a major media conglomerate.“But the stakes have changed.Technology,disrupon and consumer behavior have all shied.Were encountering a kind of compeve musical chairs.Going forwar

281、d,geng the culture right is a queson of,I dare say,survival.”Since the advent of the internet,perhaps no other sector has experienced as much disrupon as media and entertainment.Few companies have been as forceful in fomenng creave destrucon as Nelix,parcularly in the past five years.During that me

282、the streaming-video pioneers revenues nearly tripled,to$25 billion.But the magnitude of the companys threat is beer measured by other metrics.By offering popular content,on-demand convenience,and freedom from commercial interruponsall at a fee that significantly undercuts other oponsNelix has been a

283、ble to amass a global audience of 207 million subscribers,and its plaorm and strategy have proven to be globally scalable.38 Nelixs huge subscriber base,along with advanced data collecng and analycs,give the company an unprecedented understanding of viewer behavior and preferencesinformaon that was

284、previously closely guarded by cable companies.This,in turn,allows Nelix to create successful content far more consistently;its renewal rate for original series is more than 90%,compared to about a third for linear television.39 That forces media and entertainment companies to develop viable streamin

285、g series as well,and to mine the consumer data that such services provide.“Going forward,having access to that kind of inmate customer data is crical,”says the execuve.Nelixs success“has forced legacy-incumbent businesses,both on the plaorm and content-creaon sides,to rethink the future,”he acknowle

286、dges.But Nelix is not the only threat.Media firms now compete for viewer aenon and ad dollars in a digital ecosystem that includes a vast range of apps and channels,ranging from Twier to podcasts to YouTubewhose revenues now rival Nelixs.40(YouTubes revenue in 2021 could reach$30 billion.)38 Stasta,

287、“Number of Nelix paid subscribers worldwide from 1st quarter 2013 to 1st quarter 2021”Accessed May 18,2021 hps:/ Variety,July 17,2017,“Nelix Execs Defend Cancellaons,Saying 93%of Series Have Been Renewed”Accessed May 10,2021 hps:/ CNBC,April 27,2021,“YouTube is a media juggernaut that could soon equ

288、al Nelix in revenue”Accessed 05/10/2021 hps:/ digital media and entertainment ecosystem also includes companies from outside the sector,such as Amazon and Walmart,that are seeking to exploit their website traffic to poach tradional media revenue streams.41“No one knows what the ecosystem will be in

289、five and 10 years,”says the media execuve.Surprisingly,despite the uncertainty and the relentless disrupon,a recent TCS survey found that about half of media companies surveyed sll limit their strategic planning to tradional industry boundaries,rather than using a digital ecosystem lens.Adding compl

290、exity to the compeve landscape,legacy companies tend to play by different financial rules that make it harder to innovate and adapt,the media execuve points out.Investors expect consistent quarterly results,constraining long-term investment.To build its global audience,Nelix plans to spend more than

291、$17 billion on content creaon in 2021.42 Thats far more than a company such as Comcast intends to spend in aggregate($2 billion)on its ad-supported Peacock streaming service in 2020-2021.43 41 CNBC,Jan.28,2021,“Walmart enlists The Trade Desk as it plots big growth for its ads business”Accessed May 1

292、2,2021 hps:/ Variety,April 20,2021“Nelix Reveals$17 Billion in Content Spending in Fiscal 2021”Accessed May 19,2021 hps:/ Variety,Dec.9 2019,“Comcast to Spend$2 Billion on NBCUs Peacock Streaming Service in First Two Years”Accessed May 17,2021 hps:/ Findings Report TCS 2021 Global Leadership StudyPr

293、eviously,tradional media and entertainment companies feared that plans to pour billions into content creaon would result in“a thumbs down from Wall Street,”the execuve says.But over the past year,that reluctance has begun to subside,in part due to marketplace changes prompted by the pandemic.Legacy

294、studios have been announcing large investments and have been lauded for doing so.Disneys stock price rose more than 10%aer announcing a$14-16 billion content budget for 2024,including$8-9 billion for its wildly successful Disney+streaming service.44“Now,if you dont announce a big-enough number,you m

295、ay be marked down,”says the execuve.“The bolder you are,the more youre rewarded for having the right strategy.But of course,as the stakes go up,so does the need to start showing results at some point.”Indeed,its one thing to spend billions,and another to produce engaging content,build an audience an

296、d reap real returns.In addion to harnessing data,thats where craing an effecve digital culture comes in.Legacy companies need to nurture enrely new corporate norms and ways of collaborang,he believes.“The old way is hierarchical.It lacks transparency.Everyone sits in their office with closed doors,a

297、nd informaon isnt widely shared,”says the execuve.“If thats how you operate,you damage the chance of success.You need more transparency,involvement and openness.”He says companies like his need to encourage risk taking,and employees need to learn from experience.Tradionally,“there has been a fear of

298、 making wrong decisions,whereas at Google,Amazon or Nelix you are almost encouraged to make mistakes.That leads to beer results in the long term.”Implemenng such far-reaching change is challenging,however.“How many organizaons have gone through profound culture change?”asks the execuve.“You oen see

299、people who are not open to change.”He stresses that the organizaon needs to be open to it.Everyone needs to recognize the need for change.A crical catalyst for change is having vision and clarity from the top.“If theres no clarity on where youre headed as an organizaon,if your talent doesnt understa

300、nd the what and the why of your vision,they wont buy into it.Then you run the risk of not achieving what youve set out to do.”44 Deadline,Dec.10,2020,“Disney Will Spend$14B-$16B A Year On Streaming Content By 2024;Says Disney+Could Hit 260M Subs That Year”Accessed May 18,2021,hps:/ Findings Report T

301、CS 2021 Global Leadership StudyLeadership Success Story 3:How a Major Hotel Group is Using Digital Products to Outcompete AirbnbHow will hotel chains compete over the next five years?How can they recover from the deep revenue hit they have suffered during the pandemic,and defend against the threat f

302、rom online plaorms like AirBnB and VRBO that use consumers homes as places for travelers to stay?In large part,the soluon lies in digital products and services,according to a C-suite execuve of a large global hotel chain.To stay relevant with the target market and compete with the online plaorms,he

303、says,“Weve got to be able to cater to travelers desires and engage with them in a way thats digital,because thats how they conduct commerce.”When it comes to updang its technology,the hospitality industry has work to do.Like banks and airlines,much of the industry sll runs on old computer systems(ev

304、en MS-DOS).“Everyone is afraid to pull the plug on the reservaon system,because what if the replacement doesnt work?”the execuve says.“But with the old-school system,the hotel is unable to be agile.”The industry is changing,however.His company“embarked on a massive journey to undergo a complete digi

305、tal transformaon and cloud migraon of all our tools,”he says.This is enabling the hotel company to accommodate guests expectaons for services like mobile check-ins and robot concierges.“Digital technology has updated how hotels and guests interact,and how the corporaon interacts with the hotels.Weve

306、 seen a large jump in the importance of apps that enable people to dream,book,check-in,consume in the hotel,check out and then reviewall through the app.You can even use it to run the entertainment system,so you dont ever have to touch a remote.”The next step is to improve the digital funconality of

307、 the loyalty program,a crical component of hotel markeng,parcularly to retain high-value customers.New features would,for instance,adjust rewards based on dynamic pricing,and let guests buy less costly items,like a bole of wine or a coke,using their points.Already,the digital transformaon has produc

308、ed a wealth of data that the hotel company can use to boost efficiency and improve the guest experience.New tokenized systems work with hotel WiFi to anonymously track guest movements throughout the hotel.This lets management make micro-adjustments,such as modifying food and beverage offerings or al

309、tering housekeepers hours based on how people interact with a given property.The ability to adjust staffing has helped contain costs during the pandemic.Longer term,leaner operaons enabled by digizaon mean that the company can manage properes in markets where,previously,profit margins were thin.Acro

310、ss the hospitality industry,there is a meaningful trend toward offering a purely digital experience.In a global survey conducted by TCS in Q1 of 2021,hospitality industry respondents said,on average,that 50%of their revenue currently comes from purely digital services,and they expect that level to r

311、each 57%in the coming five years.How will the hotel company connue to digize its offerings?Theres much more that is sll under development,the execuve says.On the operaons side,the goal is to achieve a high degree of data integraon using technologies like roboc process automaon(RPA).Currently,hotel m

312、anagers have to interact with data manually and interpret it themselves.Based on a shiing guest sasfacon score and various comments,they may hypothesize that there is a problem with the property,or with a certain staff member.The hotel is now working toward a future when,once everything is in the cl

313、oud,the system will process data automacally.53Key Findings Report TCS 2021 Global Leadership StudyThe hotel company envisions a future where“general managers can wake up in the morning to a dashboard with lile flashing red dots indicang.These are the three things you need to priorize today,based on

314、 these data points.”The hotel group is also integrang business processes and data across its the digital ecosystem to make traveling far more convenient.Imagine a CEO taking a flight and renng a car:the apps would talk to one another to provide a purely digital experience run from the guests smartph

315、one.The moment the flight lands,the app would tell the CEO where her car is;a flight delay would be no problem because the rental agency would already know about it.The CEO would unlock the car using the app,and the navigaon system would be automacally set up to guide her not just to the hotel,but t

316、o a parking spot near her room.She can then enter the hotel and open her room using her phone.If she needs extra towels or room service,she would simply tap those opons on the app.Offering this type of deep digital experience is how major legacy hotel groups can compete against the threat from digit

317、al plaorms,says the execuve.“Airbnb is somebodys house,and everybodys house is different.But a hotel offers you safety,consistency and convenience.”He relates how,in discussions about Airbnb,he asks,“How many people in the room have stayed in an Airbnb?”Maybe half of the hands go up.And of the women

318、,“How many have stayed in an Airbnb by yourselves?”Hands drop.Says the execuve:“Its not because theyre fundamentally unsafe,its just you dont know.It just doesnt provide the same level of trust and confidence that a hotel does.Aer all,what is a brand,but a promise,right?”His company is banking on th

319、at brand certainty,along with a personalized loyalty program and a seamless and convenient digital experience.54Key Findings Report TCS 2021 Global Leadership StudyLeadership Success Story 4:How Digital Innovaon is Driving the Next Generaon of Banking ProductsThe financial services industry is in a

320、state of intense flux.Demographics are shiing,with younger generaons and even segments of older ones preferring to use smart phones,video conferences and other digital communicaons to get their finances in order.Technology is evolving,presenng new opportunies and pressures.Fintechs are expanding the

321、ir market share.To compete,innovaon is crical,says a senior banking execuve of a global bank based in Europe.Over the past five years,the execuves bank has worked with leading technology companies to implement advanced digital capabilies such as AI,machine learning and roboc process automaon(RPA).Th

322、e goal:streamlining key business processes and delivering more sophiscated financial products to its clients.On the product side,the banks wealth management division has successfully used arficial intelligence and machine learning to expand its markets and serve clients more effecvely.Previously,the

323、 division focused exclusively on ultra-high net worth individuals,an expensive and labor-intensive segment.To serve the next er of wealthy clients,the bank needed to cut costs while sll delivering quality service.It met this need using robo-advisor technology.“It took us a while to develop,but in th

324、e end the robo-advisor is providing a really good service,”the execuve says.“Our clients are able to receive more mely investment proposals that are beer suited to their profile and preferences.”The execuve foresees digizaon accelerang over the coming five years.“We started with the first generaon o

325、f millionaires in our primary region.They wanted a high-touch type of service,but now their children and grandchildren want something completely different.They dont want to talk to us.They want to do everything online.”More broadly,COVID-19 has forced the retail bank and its clients to adapt.“The nu

326、mber of customers that are now interacng with us on a fully digital basis has more than tripled during the pandemic,”says the execuve.Even elderly clients who were previously reluctant are now using the app,website and video conferencing.This digital transion is being driven not only by the clients

327、but also by the bank,which is closing branches and expanding technology-based interacons with customers.Increasingly,the banks ATMs are not just for simple transacons like deposits and withdrawals;they have the funconality of a workstaon.For the company,the transformaon has demanded significant oper

328、aonal and cultural changes.In order to become paperless facing the client,the bank needed to make its internal processes paperless.“It was really a challenge to re-educate ourselves,”the execuve says.“All of the documents had to go.We had to have fewer in-person meengs and more using the tools we ha

329、ve.We had to implement single sign-on so users would be more comfortable.”The biggest obstacle to digizaon has not been the expense or the development me or customer rejecon of new technologies,he says,but rather“geng employees to believe in it.”While young employees were arriving with fresh skills

330、and ideas,many others had been working with the same processes for years.They were reluctant to change,and feared that the technology would render them obsolete.Overcoming internal roadblocks required educaon.“We had to sell it to our people the same way we sell products to clients.We talked about t

331、rends in the industry and the need to empower ourselves.We had to convince them,You have a lot of talent,knowledge and experience that take me to accumulate and arent easy to replace.The technology doesnt change the fundamentals.”Aer certain employees grew comfortable with the concept,“We made them

332、feel like champions for selling it to their colleagues.”55Key Findings Report TCS 2021 Global Leadership StudyOvercoming this obstacle,has been well worth the effort.Digital technology has generated numerous benefits at the wealth management unit.For one,relaonship managers travel frequently,presenn

333、g security issues over sensive informaon stored on laptop hard drives.To address this,the bank has moved the informaon to the cloud and provided the relaonship managers with tablet computers to access it.Addionally,digizing has cleared the path for roboc process automaon.RPA is automang repeve tasks and workflows that were previously manual,saving person-hours and reducing mistakes.Most immediatel