Idea 01 Facts — Desktop

Key facts

We estimate that about $30 trillion in corporate revenues will arise from products that have not yet reached the market.¹ Some 70 percent of digital-transformation leaders are already building their own software in areas that drive competitive advantage, and we expect that percentage to increase as costs to build continue to fall. Meanwhile, CFOs see building new businesses as their organizations’ most likely strategic action in the next 12 months.

About

$30 trillion

in corporate revenues will arise from products that have not yet reached the market.

Implications

Focus on the two most important elements of being a builder: one, build something that matters: a new product, solution, or business that creates a competitive advantage; and two, architect a team with the right incentives, tools, and governance to build products or services. Lack of ideas is rarely the cause of failure in building something new. Rather, companies struggle to execute them.

¹

Roberto Argolini, Federico Bonalumi, Johannes Deichmann, and Stefania Pellegrinelli, “Digital twins: The key to smart product development,” McKinsey, July 31, 2023.

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Key facts

We estimate that about $30 trillion in corporate revenues will arise from products that have not yet reached the market.¹ Some 70 percent of digital-transformation leaders are already building their own software in areas that drive competitive advantage, and we expect that percentage to increase as costs to build continue to fall. Meanwhile, CFOs see building new businesses as their organizations’ most likely strategic action in the next 12 months.

About

$30 trillion

in corporate revenues will arise from products that have not yet reached the market.

Implications

Focus on the two most important elements of being a builder: one, build something that matters: a new product, solution, or business that creates a competitive advantage; and two, architect a team with the right incentives, tools, and governance to build products or services. Lack of ideas is rarely the cause of failure in building something new. Rather, companies struggle to execute them.

¹

Roberto Argolini, Federico Bonalumi, Johannes Deichmann, and Stefania Pellegrinelli, “Digital twins: The key to smart product development,” McKinsey, July 31, 2023.

¹

Roberto Argolini, Federico Bonalumi, Johannes Deichmann, and Stefania Pellegrinelli, “Digital twins: The key to smart product development,” McKinsey, July 31, 2023.

Focus on the two most important elements of being a builder: one, build something that matters: a new product, solution, or business that creates a competitive advantage; and two, architect a team with the right incentives, tools, and governance to build products or services. Lack of ideas is rarely the cause of failure in building something new. Rather, companies struggle to execute them.

Implications

About

$30 trillion

in corporate revenues will arise from products that have not yet reached the market.

We estimate that about $30 trillion in corporate revenues will arise from products that have not yet reached the market.¹ Some 70 percent of digital-transformation leaders are already building their own software in areas that drive competitive advantage, and we expect that percentage to increase as costs to build continue to fall. Meanwhile, CFOs see building new businesses as their organizations’ most likely strategic action in the next 12 months.

Key facts