TCS 2021 Global Leadership Study - Where, How and What Leaders Will Compete With in the New Decade
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TCS 2021 Global Leadership Study Where, How and What Leaders Will Compete With in the New Decade Summer 2021 Key Findings report: APAC TCS Thought Leadership Institute
TCS 2021 Global Leadership Study: Key Findings report for Asia-Pacific
Overview
Australia/New Zealand
Contents
China
India
Japan
Singapore
More study-related content
2 TCS 2021 Global Leadership StudyTCS 2021 Global Leadership Study: Key Findings Overview
This 2021 study from Tata Consultancy Services (TCS) examines how leaders of large global enterprises in 13 countries around the world
have recalibrated their organizational strategies for the next few years, through 2025. Specifically, the study explores how senior
leaders are striking a balance between innovation and optimization in four arenas.
INNOVATION vs OPTIMIZATION
WHERE TO COMPETE
New sectors, regions, Digital strategies – deciding which Existing sectors, regions, business
business models businesses and markets to be in models
New products WHAT TO COMPETE WITH Improving existing
and services Digital offerings – defining the products products and services
and services to offer
New business Improving existing ways
processes to create HOW TO COMPETE of creating demand and
demand and supply Digital ways of conducting business supply
New approaches to Improving existing talent
HOW TO LEAD
managing talent and management approaches
Leadership approaches to managing people who
creating a new culture and the current culture
are working in increasingly digital ways
3 TCS 2021 Global Leadership StudyTCS 2021 Global Leadership Study: Key Findings Overview for APAC
We analyzed the study findings based on individual country respondents in four major regions. This
document includes country-specific key findings for Australia/New Zealand, China, India, Japan and Singapore.
Surveys by company headquarters country
(1,206 total)
US 352
UK 151
Germany 150
Japan 61
India 61
Canada 51
Brazil 60
China 30
Australia 53
Netherlands 50
France 50
Singapore 30
New Zealand 17
Colombia 30
Mexico 60
4 TCS 2021 Global Leadership StudyTCS 2021 Global Leadership Study Where, How and What Leaders Will Compete With in the New Decade Summer 2021 Key Findings report: Australia + NZ (ANZ) TCS Thought Leadership Institute
TCS 2021 Global Leadership Study: Overview
This 2021 study from Tata Consultancy Services (TCS) examines how leaders of large global enterprises in four regions of the world have
recalibrated their organizational strategies for the next few years, through 2025. Specifically, the study explores how senior leaders are
striking a balance between innovation and optimization in four arenas.
INNOVATION vs OPTIMIZATION
WHERE TO COMPETE
New sectors, regions, Digital strategies – deciding which Existing sectors, regions, business
business models businesses and markets to be in models
New products WHAT TO COMPETE WITH Improving existing
and services Digital offerings – defining the products products and services
and services to offer
New business Improving existing ways
processes to create HOW TO COMPETE of creating demand and
demand and supply Digital ways of conducting business supply
New approaches to Improving existing talent
HOW TO LEAD
managing talent and management approaches
Leadership approaches to managing people who
creating a new culture and the current culture
are working in increasingly digital ways
6 TCS 2021 Global Leadership StudyTCS 2021 Global Leadership Study: ANZ Essential Takeaways at a Glance
1. WHERE TO COMPETE
Although ANZ firms tend to assess threats only from within their industry, 69% believe their biggest competitor will come
from elsewhere, including other industries (31%), digital companies (21%) and startups (9%).
2. WHAT TO COMPETE WITH
ANZ respondents expect 62% of future revenues to come from industries or ecosystems in which they currently operate,
compared to 55% among all surveys. This could suggest either confidence in their offerings or excessive optimism.
ANZ lags slightly behind the overall survey average (33% vs. 39%) on purely digital products and services, accessible
online.
3. HOW TO COMPETE
Only 18% of ANZ revenues come from subscriptions, compared to 25% for all surveys. By 2025, that gap is poised to
persist, with ANZ subscription revenues growing to 25% compared to 31% globally. Currently, 40% of ANZ companies
derive no revenues from subscriptions, compared to 17% overall.
4. HOW TO LEAD
ANZ respondents agree that innovation and diversity, inclusion and equal opportunity are vital cultural
attributes. Leaders prioritize learning and being quality drive as much as diversity, and environmental sustainability
(1st vs. 8th for Followers), shareholder value (tied for 5th vs. 9th) and being purpose driven (5th vs. 10th).
For employees, Leaders prioritize health and safety, remote worker productivity, and non-monetary
recognition.
7 TCS 2021 Global Leadership StudyANZ companies surveyed (70 in all)
Roles Industries Annual Revenue ($USD)
Chief Executive Officer Hospitals & other… 26%
0% USD $1 billion to
(CEO) Mining 14% 51%
less than $5 billion
Chief Operations Officer Utilities (electricity,… 11% USD $5 billion to
0% 31%
(COO) Consumer Packaged… 10% less than $10 billion
Chief Strategy Officer Transportation and… 10% USD $10 billion to
1% 9%
(CSO) Banking and Credit… 7% less than $20 billion
Retail 6% USD $20 billion to
VP/SVP/Head Strategy 23% 9%
Oil & Gas… 4% less than $50 billion
Telecom 4% USD $50 billion to
Director of Strategy 17% 0%
Securities &… 3% less than $75 billion
Divisional/business unit Media & Entertainment 1% USD $75 billion to
20% 0%
head Life Sciences 1% less than $100…
VP/SVP/Head Manufacturing… 1% USD $100 billion to
16% 0%
Operations Insurance 0% less than $200…
Accommodation and… 0% USD $200 billion or
Director of Operations 23% 0%
Technology 0% greater
8 TCS 2021 Global Leadership StudyWe compare “Leaders” and "Followers"
Leaders are firms with higher-than- Followers are firms with lower-than-
average increases in revenue and average increases in revenue and
net profit in their industry between net profit in their industry between
2015 – 2019. 2015 – 2019.
VS
+65% and +73% -15% and
-36%
revenue net profit revenue net profit
Leaders Followers
These companies are These companies are
29% of the total survey sample. 33% of the total survey sample.
In this 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."
Innovation
9 TCS 2021
TCS 2021 CEO
Global Leadership Study
StudyWhere to Compete: Outdated strategic planning still dominates
• Despite widespread disruption that has blurring industry boundaries, most ANZ companies (61%) still use a traditional industry
framework when assessing their opportunities.
• Among lower-performing Followers, only 16% apply a cross-industry digital ecosystem lens.
Total Leader Follower
1. WHERE TO COMPETE
Digital strategies – deciding which 5%
11%
businesses and markets to be in 20%
38%
2. WHAT TO COMPETE WITH 50%
Digital offerings – defining the products 19% 61%
and services to offer 13% 84%
3. HOW TO COMPETE
Digital ways of conducting business
4. HOW TO LEAD Within our industry’s historical boundaries
Leadership approaches to managing people who
In cross-industry “digital ecosystems"
are working in increasingly digital ways
Approximately equal emphasis on “within a single industry” and “in cross-industry
digital ecosystems”
10 TCS 2021 Global Leadership StudyWhere to Compete: Companies using outdated planning risk missing major threats
• Although ANZ firms tend to assess threats only from within their industry, 69% believe their biggest competitor will come from
elsewhere, including other industries (31%), digital companies (21%) and startups (9%).
• Followers are less attuned to cross-industry threats: 58% are primarily concerned about traditional competitors.
Total Leader Follower
Traditional industry
1. WHERE TO COMPETE 31% 17% 58%
players
Digital strategies – deciding which
businesses and markets to be in Companies from
31% 50% 16%
other industries
2. WHAT TO COMPETE WITH
Digital offerings – defining the products
and services to offer Digital companies
21% 25% 5%
(existing)
3. HOW TO COMPETE New companies
Digital ways of conducting business (launched over the 9% 4% 11%
next 5 years)
4. HOW TO LEAD
Not sure/competition 4%
Leadership approaches to managing people who is unpredictable
7% 11%
are working in increasingly digital ways
11 TCS 2021 Global Leadership StudyWhat to Compete With: ANZ companies depend current businesses for future
revenues
• ANZ respondents expect 62% of future revenues to come from industries or ecosystems in which they currently operate, compared to
55% among all surveys. This could suggest either confidence in their offerings or excessive optimism.
% of revenues from businesses in which the
1. WHERE TO COMPETE organizations operate today
Digital strategies – deciding which
businesses and markets to be in
0%-25% 4%
2. WHAT TO COMPETE WITH
Digital offerings – defining the products
and services to offer 26%-50% 27%
3. HOW TO COMPETE
Digital ways of conducting business
51%-75% 47%
4. HOW TO LEAD
Leadership approaches to managing people who
are working in increasingly digital ways 76%-100% 21%
Mean: 61.71 %
12 TCS 2021 Global Leadership StudyWhat to Compete With: Progress on converting products to digital is slow
• ANZ lags slightly behind the overall survey average (33% vs. 39%) on purely digital products and services, accessible online.
• ANZ respondents expect to be further behind by 2025 (37% vs. 46%); this is largely due to slow progress by Leaders whose purely
digital offerings only increase by two percentage points.
% Revenues from purely digital products/services
1. WHERE TO COMPETE
Digital strategies – deciding which
businesses and markets to be in
33%
2. WHAT TO COMPETE WITH
2021
Digital offerings – defining the products
39%
and services to offer
ANZ
3. HOW TO COMPETE
Digital ways of conducting business
All Surveys
4. HOW TO LEAD 37%
Leadership approaches to managing people who
2025
are working in increasingly digital ways
46%
13 TCS 2021 Global Leadership StudyHow to Compete: ANZ firms could benefit more from subscription models
• Only 18% of ANZ revenues come from subscriptions, compared to 25% for all surveys.
• By 2025, that gap is poised to persist, with ANZ subscription revenues growing to 25% compared to 31% globally.
• Currently, 40% of ANZ companies derive no revenues from subscriptions, compared to 17% overall.
% Revenues from Subscriptions 2021 vs. 2025
1. WHERE TO COMPETE
Digital strategies – deciding which
businesses and markets to be in
18%
2. WHAT TO COMPETE WITH
2021
Digital offerings – defining the products
and services to offer 25%
ANZ
3. HOW TO COMPETE
Digital ways of conducting business All Surveys
4. HOW TO LEAD 25%
Leadership approaches to managing people who
2025
are working in increasingly digital ways
31%
14 TCS 2021 Global Leadership StudyHow to Compete: ANZ’s automated customer interactions gain momentum
• ANZ trails the overall survey in implementing automated customer interactions, by 6 to 8 percentage points. Respondents expect to
narrow the gap to 2 to 3 percentage points by 2025.
% Automated Customer Interactions,
2021 and 2025
1. WHERE TO COMPETE
Digital strategies – deciding which 46%
Marketing 2025
businesses and markets to be in 49%
34%
2. WHAT TO COMPETE WITH Marketing 2021
42%
Digital offerings – defining the products
and services to offer
47% ANZ
Sales 2025
49%
3. HOW TO COMPETE All Surveys
33%
Sales 2021
Digital ways of conducting business 39%
4. HOW TO LEAD 42%
Post-Sales 2025
Leadership approaches to managing people who 45%
are working in increasingly digital ways
30%
Post-Sales 2021
36%
15 TCS 2021 Global Leadership StudyHow to Lead: ANZ Leaders and Followers differ on employee experience
• ANZ respondents said work flexibility, career development and compensation/benefits are key areas for improvement by 2025.
• Leaders prioritize health and safety, remote worker productivity, and non-monetary recognition.
• Followers ranked onboarding and performance management higher than Leaders.
Leader Rank Follower Rank
1. WHERE TO COMPETE Providing flexibility in work schedule/location 1 2
Digital strategies – deciding which
businesses and markets to be in Health and safety initiatives (mind and body) 2 11
Training and career development 3 1
2. WHAT TO COMPETE WITH
Digital offerings – defining the products Compensation and benefits 4 3
and services to offer Making remote workers highly productive 5 9
Recognition and rewards (non-monetary) 6 10
3. HOW TO COMPETE
Promotion 7 4
Digital ways of conducting business
Recruiting 8 7
4. HOW TO LEAD Creating a sense of belonging 9 8
Leadership approaches to managing people who Onboarding 10 5
are working in increasingly digital ways
Performance management and improvement 11 6
16 TCS 2021 Global Leadership StudyHow to Lead: Leaders and Followers also view culture differently
• ANZ respondents agree that innovation and diversity, inclusion and equal opportunity are vital cultural attributes.
• Leaders prioritize learning and being quality driven as much as diversity, and environmental sustainability (1st vs. 8th for Followers),
shareholder value (tied for 5th vs. 9th) and being purpose driven (also 5th vs. 10th).
• Followers favor diversity (2nd vs. tied for 7th for Leaders), customer centricity (3rd vs. also 7th) and transparency (5th vs. 9th).
Leader Rank Follower Rank
1. WHERE TO COMPETE Environmental sustainability 1 8
Digital strategies – deciding which Innovation 2 1
businesses and markets to be in
Quality driven 3 4
2. WHAT TO COMPETE WITH
Learning/Upskilling/Reskilling 3 5
Digital offerings – defining the products
and services to offer Shareholder value | Financial performance 5 9
Purpose driven 5 10
3. HOW TO COMPETE
Diversity, inclusion and equal opportunity 7 2
Digital ways of conducting business
Customer centricity 7 3
4. HOW TO LEAD
Transparency 9 5
Leadership approaches to managing people who
Employee experience 10 7
are working in increasingly digital ways
Risk tolerant 11 11
17 TCS 2021 Global Leadership StudyThe Big Takeaway
Even with massive growth in digital opportunities, most ANZ companies
are underestimating the amount of innovation in strategy, products and services,
business processes, and leadership approaches they will need to compete.
Are senior leaders prepared to lead their organizations to higher
performance in the mid 2020s?
18 TCS 2021 Global Leadership StudyAppendix
Study Demographics (country + region)
Number of respondents by country
400
352 TOTAL: 1206
350
300
250
200
151 150
150
100
51 50 50 61 53 61 60 60
50 30 30 17 30
0
US Canada UK Germany France Netherlands India Singapore China Australia New Zealand Japan Colombia Brazil Mexico
Number of respondents by region Percent of respondents by region
500
403 401
21%
400
APAC
300 252 North America
33%
200 150
12% LATAM
100
0
UK & Europe
33%
North UK & APAC LATAM
America Europe
20 TCS 2021 Global Leadership StudyStudy Demographics (industry)
# of Respondents
160 150 TOTAL: 1206
140
120 122
120 115
102 102 100 98
100 90
75 80
80
60 52
40
20
0
BFS Insurance Retail TTH CPG CMI Tech BU + Manufacturing Life Healthcare Utilities Energy &
Hi Tech Sciences Resources
Banking & Financial Life insurance (36) Transportation & Media & (includes (discrete, hospitals + (electricity, (oil & gas (50)
Services (Banking & + Logistics (80) + Entertainment comms equip, process) healthcare svc gas, water) + mining (30)
Credit 100) + Property/Casualty Hospitality (62) + Telecom semiconductor providers (60) +
(Securities & (16) [This category (Accommodation (40) makers + health insurance
Investment Svcs 50) excludes health & Food Services) technology) (38)
insurance] (40)
Sectors included in the study
*More detailed breakdown available
21 TCS 2021 Global Leadership StudyTCS 2021 Global Leadership Study Where, How and What Leaders Will Compete With in the New Decade Summer 2021 China: Key Findings report TCS Thought Leadership Institute
TCS 2021 Global Leadership Study: Overview
This 2021 study from Tata Consultancy Services (TCS) examines how leaders of large global enterprises in four regions of the world have
recalibrated their organizational strategies for the next few years, through 2025. Specifically, the study explores how senior leaders are
striking a balance between innovation and optimization in four arenas.
INNOVATION vs OPTIMIZATION
WHERE TO COMPETE
New sectors, regions, Digital strategies – deciding which Existing sectors, regions, business
business models businesses and markets to be in models
New products WHAT TO COMPETE WITH Improving existing
and services Digital offerings – defining the products products and services
and services to offer
New business Improving existing ways
processes to create HOW TO COMPETE of creating demand and
demand and supply Digital ways of conducting business supply
New approaches to Improving existing talent
HOW TO LEAD
managing talent and management approaches
Leadership approaches to managing people who
creating a new culture and the current culture
are working in increasingly digital ways
23 TCS 2021 Global Leadership StudyTCS 2021 Global Leadership Study: China Essential Takeaways at a Glance
1. WHERE TO COMPETE
60% of Chinese respondents said their company considers cross-industry “digital ecosystems” when evaluating future business
opportunities, compared to only 45% in the survey globally. Two in 5 firms plan using the outdated framework of their
historical industry boundaries.
Existing sales and marketing capabilities as the top factor for Chinese firms, but they are less concerned with market growth
and brand recognition compared to other countries.
2. WHAT TO COMPETE WITH
More Chinese respondents said their company cooperates with competitors (73%) than overall survey respondents (51%),
yet 17% said they plan to decrease cooperation, compared to 12% overall.
3. HOW TO COMPETE
In improving customer data use, top Chinese priorities are creating new products and services (67%) and improving
marketing and sales (63%).
4. HOW TO LEAD
By a substantial margin, Chinese respondents said innovation will be the most important aspect of their company culture
between now and 2025, followed by customer centricity.
24 TCS 2021 Global Leadership StudyChinese companies surveyed (30 in all)
Roles Industries Annual Revenue ($USD)
Chief Executive Officer Life Sciences 33% USD $1 billion to less than
(CEO) 0% Oil & Gas (exploration and refining) 17% $5 billion
60%
Chief Operations Officer Technology 13% USD $5 billion to less than
(COO) 0% Utilities (electricity, gas, water) 13% $10 billion
7%
Chief Strategy Officer Transportation and Logistics 10% USD $10 billion to less than
(CSO) 3% Media & Entertainment 7% $20 billion
20%
Banking and Credit Institutions 3% USD $20 billion to less than
VP/SVP/Head Strategy 23% Hospitals & other healthcare… 3% $50 billion
7%
Insurance 0% USD $50 billion to less than
Director of Strategy 27% Securities & Investment Services 0% $75 billion
0%
Divisional/business unit Retail 0% USD $75 billion to less than
head 17% Consumer Packaged Goods 0% $100 billion
0%
VP/SVP/Head Accommodation and Food Services… 0% USD $100 billion to less than
Operations 13% Manufacturing (discrete… 0% $200 billion
3%
Mining 0%
Director of Operations 17% Telecom 0%
USD $200 billion or greater 3%
25 TCS 2021 Global Leadership StudyWe compare “Leaders” and "Followers"
Leaders are firms with higher-than- Followers are firms with lower-than-
average increases in revenue and average increases in revenue and
net profit in their industry between net profit in their industry between
2015 – 2019. 2015 – 2019.
VS
+65% and +73% -15% and
-36%
revenue net profit revenue net profit
Leaders Followers
These companies are These companies are
29% of the total survey sample. 33% of the total survey sample.
In this 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."
Innovation
26 TCS
TCS2021
2021Global Leadership Study
CEO StudyWhere to Compete: Most Chinese firms strategize with an eye to the digital economy
• 60% of Chinese respondents said their company considers cross-industry “digital ecosystems” when evaluating future business
opportunities, compared to only 45% in the survey globally.
• Two in 5 firms plan using the outdated framework of their historical industry boundaries.
How Top Management Identifies Strategic Opportunities and
1. WHERE TO COMPETE Threats
Digital strategies – deciding which
businesses and markets to be in
Within our industry’s historical
2. WHAT TO COMPETE WITH boundaries
Digital offerings – defining the products
and services to offer 20%
40% In cross-industry “digital
3. HOW TO COMPETE ecosystems"
Digital ways of conducting business
40%
4. HOW TO LEAD Approximately equal emphasis on
Leadership approaches to managing people who “within a single industry” and “in
are working in increasingly digital ways cross-industry digital ecosystems”
27 TCS 2021 Global Leadership StudyWhere to Compete: Existing capabilities outweigh market growth in determining
where to compete
• In evaluating where to compete, Chinese firms value different factors from the overall survey.
• They ranked having existing sales and marketing capabilities as the top factor, which came in fourth overall.
• Government matters and cultural fit also ranked higher in China.
• In contrast, Chinese firms are less concerned with market growth and brand recognition.
China Rank All Surveys Rank
1. WHERE TO COMPETE Existing sales and marketing
Digital strategies – deciding which capabilities 1 4
businesses and markets to be in
Alignment to organization’s purpose 2 1
2. WHAT TO COMPETE WITH Existing presence in those markets 3 3
Digital offerings – defining the products
and services to offer Sustainability (i.e., environmental
impact) 4 6
Degree of competition 5 7
3. HOW TO COMPETE
Digital ways of conducting business Political, fiscal and regulatory
environment 6 9
4. HOW TO LEAD Cultural fit with our company 7 10
Leadership approaches to managing people who 8 2
Growth rate of the market
are working in increasingly digital ways
Size of the market 9 8
Brand recognition in those markets 10 5
28 TCS 2021 Global Leadership StudyWhat to Compete With: Chinese firms cooperate widely with competitors, for now
• Working with competitors when it makes sense to do so—just as Amazon hosts Netflix’s streaming service—is a key digital economy
practice.
• More Chinese respondents said their company cooperates with competitors (73%) than overall survey respondents (51%), yet 17% said
they plan to decrease cooperation, compared to 12% overall.
Does your company cooperate Will it increase, decrease or not change
1. WHERE TO COMPETE with competitors? collaboration by 2025?
Digital strategies – deciding which
businesses and markets to be in
2. WHAT TO COMPETE WITH
Digital offerings – defining the products 17%
and services to offer
27%
40%
3. HOW TO COMPETE
Digital ways of conducting business
73% 43%
4. HOW TO LEAD
Leadership approaches to managing people who
are working in increasingly digital ways
Yes No Decrease collaboration
Not much change planned
Increase collaboration
29 TCS 2021 Global Leadership StudyWhat to Compete With: Companies anticipate high levels of investment and disruption
• Chinese respondents say by 2025, slightly more than half (53%) of revenue will come from businesses in industries or digital
ecosystems in which they currently operate.
• This suggests an emphasis on new business development—including investing, innovating, and seizing opportunities across the digital
ecosystem.
1. WHERE TO COMPETE % of revenue from businesses in which the organizations
Digital strategies – deciding which operate today
businesses and markets to be in
2. WHAT TO COMPETE WITH 0%-25% 10%
Digital offerings – defining the products
and services to offer
26%-50% 37%
3. HOW TO COMPETE
Digital ways of conducting business
4. HOW TO LEAD 51%-75% 50%
Leadership approaches to managing people who
are working in increasingly digital ways
76%-100% 3%
30 TCS 2021 Global Leadership StudyHow to Compete: In improving customer data use, firms emphasize new products
and customers
• In improving customer data use, top Chinese priorities are creating new products and services (67%) and improving marketing and sales
(63%).
• Providing better customer service—the top ranked category in the overall survey (55%)—ranked second to last, just above customer
data insights.
Priorities for Improving Customer Data use by 2025
1. WHERE TO COMPETE
Digital strategies – deciding which 67%
Creating new products and services
businesses and markets to be in 53%
2. WHAT TO COMPETE WITH Improving marketing and sales
63%
50%
Digital offerings – defining the products
and services to offer
Making improvements to existing products 53%
and services 53% China
3. HOW TO COMPETE
Selling additional products and services to 47% All Survey
Digital ways of conducting business current customers 34%
4. HOW TO LEAD Providing better customer service
47%
Leadership approaches to managing people who 55%
are working in increasingly digital ways
Selling insights from our customer data to 40%
other companies 31%
31 TCS 2021 Global Leadership StudyHow to Compete: Chinese customer interactions are less automated
• Chinese respondents reported a lower level of automated customer interactions (25% to 37%) compared to the overall survey (36% to
42%).
• Although Chinese firms intend to further automate interactions, respondents elsewhere are doing so more quickly, widening the digital
gap over the coming years.
% of Automated Customer Interactions,
1. WHERE TO COMPETE 2021 and 2025
Digital strategies – deciding which 41%
businesses and markets to be in Marketing 2025
49%
2. WHAT TO COMPETE WITH 37%
Marketing 2021
Digital offerings – defining the products 42%
and services to offer
32%
Sales 2025 China
49%
3. HOW TO COMPETE All Survey
27%
Digital ways of conducting business Sales 2021
39%
4. HOW TO LEAD 29%
Post-Sales 2025
Leadership approaches to managing people who 45%
are working in increasingly digital ways
25%
Post-Sales2021
36%
32 TCS 2021 Global Leadership StudyHow to Lead: Corporate culture stresses innovation, de-emphasizes shareholder value
• By a substantial margin, Chinese respondents said innovation will be the most important aspect of their company culture between now
and 2025, followed by customer centricity.
• Environmental sustainability and shareholder value will be least important.
Most important aspect of organization’s culture
1. WHERE TO COMPETE Innovation 1.00
Digital strategies – deciding which Customer centricity 0.80
businesses and markets to be in
Diversity, inclusion and equal
0.67
opportunity
2. WHAT TO COMPETE WITH
Employee experience 0.67
Digital offerings – defining the products
and services to offer Quality driven 0.57
Transparency 0.47
3. HOW TO COMPETE
Learning/Upskilling/Reskilling 0.43
Digital ways of conducting business
Purpose driven 0.43
4. HOW TO LEAD
Risk tolerant 0.37
Leadership approaches to managing people who
are working in increasingly digital ways Environmental sustainability 0.30
Shareholder value | Financial
0.27
performance
33 TCS 2021 Global Leadership StudyHow to Lead: Chinese companies lean harder on leaders and customers for innovation
• Analyzing customer data is the top source of innovation for respondents both in China (53%) and elsewhere (51%).
• Chinese firms less frequently use other methods for nurturing innovation, such as rewarding employees (37% vs. 48%) and seeking
ideas from them (33% vs. 48%).
• They more commonly seek ideas from customers (53% vs. 41%) and ecosystem partners (47% vs. 38%).
Factors Nurturing Innovation, 2021
1. WHERE TO COMPETE
Analyze customer data to look for 53%
Digital strategies – deciding which
unsatisfied needs and wants 51%
businesses and markets to be in
Reward inventive employees with 37%
2. WHAT TO COMPETE WITH compensation and career path options 48%
Digital offerings – defining the products
and services to offer Programmatically seek ideas from all
33%
employees (e.g., through an idea
submission process)
48% China
3. HOW TO COMPETE All Survey
Provide internal recognition of 50%
Digital ways of conducting business employees who bring ideas forward 46%
4. HOW TO LEAD Actively seek ideas from customers
53%
41%
Leadership approaches to managing people who
are working in increasingly digital ways Solicit ideas from suppliers and other 47%
ecosystem partners 38%
34 TCS 2021 Global Leadership StudyThe Big Takeaway
Even with massive growth in digital opportunities, most Chinese companies
are underestimating the amount of innovation in strategy, products and services,
business processes, and leadership approaches they will need to compete.
Are senior leaders prepared to lead their organizations to higher
performance in the mid 2020s?
35 TCS 2021 Global Leadership StudyAppendix
Study Demographics (country + region)
Number of respondents by country
400
352 TOTAL: 1206
350
300
250
200
151 150
150
100
51 50 50 61 53 61 60 60
50 30 30 17 30
0
US Canada UK Germany France Netherlands India Singapore China Australia New Zealand Japan Colombia Brazil Mexico
Number of respondents by region Percent of respondents by region
500
403 401
21%
400
APAC
300 252 North America
33%
200 150
12% LATAM
100
0
UK & Europe
33%
North UK & APAC LATAM
America Europe
37 TCS 2021 Global Leadership StudyStudy Demographics (industry)
# of Respondents
160 150 TOTAL: 1206
140
120 122
120 115
102 102 100 98
100 90
75 80
80
60 52
40
20
0
BFS Insurance Retail TTH CPG CMI Tech BU + Manufacturing Life Healthcare Utilities Energy &
Hi Tech Sciences Resources
Banking & Financial Life insurance (36) Transportation & Media & (includes (discrete, hospitals + (electricity, (oil & gas (50)
Services (Banking & + Logistics (80) + Entertainment comms equip, process) healthcare svc gas, water) + mining (30)
Credit 100) + Property/Casualty Hospitality (62) + Telecom semiconductor providers (60) +
(Securities & (16) [This category (Accommodation (40) makers + health insurance
Investment Svcs 50) excludes health & Food Services) technology) (38)
insurance] (40)
Sectors included in the study
*More detailed breakdown available
38 TCS 2021 Global Leadership StudyTCS 2021 Global Leadership Study Where, How and What Leaders Will Compete With in the New Decade Summer 2021 India: Key Findings report TCS Thought Leadership Institute
TCS 2021 Global Leadership Study: Overview
This 2021 study from Tata Consultancy Services (TCS) examines how leaders of large global enterprises in four regions of the world have
recalibrated their organizational strategies for the next few years, through 2025. Specifically, the study explores how senior leaders are
striking a balance between innovation and optimization in four arenas.
INNOVATION vs OPTIMIZATION
WHERE TO COMPETE
New sectors, regions, Digital strategies – deciding which Existing sectors, regions, business
business models businesses and markets to be in models
New products WHAT TO COMPETE WITH Improving existing
and services Digital offerings – defining the products products and services
and services to offer
New business Improving existing ways
processes to create HOW TO COMPETE of creating demand and
demand and supply Digital ways of conducting business supply
New approaches to Improving existing talent
HOW TO LEAD
managing talent and management approaches
Leadership approaches to managing people who
creating a new culture and the current culture
are working in increasingly digital ways
40 TCS 2021 Global Leadership StudyTCS 2021 Global Leadership Study: India Essential Takeaways at a Glance
1. WHERE TO COMPETE
52% of Indian companies only consider their industry’s historical boundaries when conducting strategic analysis. Unlike the
overall survey—in which Leaders were far more likely (58%) than Followers (34%) to plan using digital ecosystems—in India
the rate was roughly equal (55% vs. 52%).
2. WHAT TO COMPETE WITH
Despite intense digital disruption, Indian companies appear confident that their offerings are future-proof. On average,
they said 61% of revenue by 2025 will come from businesses in industries or ecosystems in which they currently operate
compared to 55% in the overall survey. 65% of Indian companies believe that most of their 2025 revenue will come from
existing operations.
3. HOW TO COMPETE
Indian companies surveyed currently derive 22% of revenue from subscription-based models, compared to 25% for
companies from all countries, and the gap is widening. By 2025, subscriptions are expected to account for 25% of
revenue in India and 31% globally. Indian companies should consider how they can better leverage subscription models.
4. HOW TO LEAD
Consistent with the demands of a rapidly evolving digital economy, Indian companies believe learning/upskilling/reskilling
will be the most important characteristic of corporate culture by 2025.
41 TCS 2021 Global Leadership StudyIndian companies surveyed (61 in all)
Roles Industries Annual Revenue ($USD)
Chief Executive Officer Banking and Credit… 31% Less than USD $500
2% 0%
(CEO) Utilities (electricity, gas,… 15% million
USD $500 million to
Chief Operations Officer Oil & Gas (exploration and… 13% 0%
3% less than $1 billion
(COO) Life Sciences 8% USD $1 billion to
69%
Consumer Packaged Goods 7% less than $5 billion
Chief Strategy Officer (CSO) 0% USD $5 billion to
Transportation and Logistics 5% 15%
less than $10 billion
Manufacturing (discrete… 5%
VP/SVP/Head Strategy 10% USD $10 billion to
Mining 5% 10%
less than $20 billion
Retail 3% USD $20 billion to
Director of Strategy 26% 3%
Telecom 3% less than $50 billion
USD $50 billion to
Insurance 2% 3%
Divisional/business unit head 23% less than $75 billion
Media & Entertainment 2% USD $75 billion to
0%
Hospitals & other… 2% less than $100 billion
VP/SVP/Head Operations 15%
Securities & Investment… 0% USD $100 billion to
0%
less than $200 billion
Accommodation and Food… 0%
Director of Operations 21% USD $200 billion or
Technology 0% 0%
greater
42 TCS 2021 Global Leadership StudyWe compare “Leaders” and "Followers"
Leaders are firms with higher-than- Followers are firms with lower-than-
average increases in revenue and average increases in revenue and
net profit in their industry between net profit in their industry between
2015 – 2019. 2015 – 2019.
VS
+65% and +73% -15% and
-36%
revenue net profit revenue net profit
Leaders Followers
These companies are These companies are
29% of the total survey sample. 33% of the total survey sample.
In this 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."
Innovation
43 TCS 2021 CEO Study
Global Leadership StudyWhere to Compete: Most Indian companies still plan using historical industry
boundaries as their guide
• 52% of Indian companies only consider their industry’s historical boundaries when conducting strategic analysis.
• Unlike the overall survey—in which Leaders were far more likely (58%) than Followers (34%) to plan using digital ecosystems—in India
the rate was roughly equal (55% vs. 52%).
Total Leader Follower
1. WHERE TO COMPETE
Digital strategies – deciding which
16% 16%
businesses and markets to be in 27%
45% 48%
2. WHAT TO COMPETE WITH 52%
Digital offerings – defining the products 31% 36%
27%
and services to offer
3. HOW TO COMPETE
Digital ways of conducting business
Within our industry’s historical boundaries
4. HOW TO LEAD In cross-industry “digital ecosystems"
Leadership approaches to managing people who
are working in increasingly digital ways Approximately equal emphasis on “within a single industry”
and “in cross-industry digital ecosystems”
44 TCS 2021 Global Leadership StudyWhere to Compete: Digital companies and startups pose biggest threat
• Indian respondents are most concerned about competition from existing digital companies (25%) and startups launched in the coming
5 years (31%).
• Although most companies still plan through a traditional lens, only a third say that their biggest competition will come from within the
industry. This highlights the urgent need to update strategic planning processes.
Most Formidable Competition
1. WHERE TO COMPETE
Digital strategies – deciding which
Traditional industry players 33%
businesses and markets to be in
2. WHAT TO COMPETE WITH
Companies from other
Digital offerings – defining the products 11%
industries
and services to offer
3. HOW TO COMPETE Digital companies (existing) 25%
Digital ways of conducting business
New companies (launched over
4. HOW TO LEAD 31%
the next 5 years)
Leadership approaches to managing people who
are working in increasingly digital ways
Not sure/competition is
0%
unpredictable
45 TCS 2021 Global Leadership StudyWhat to Compete With: Companies expect less revenue-source change than in
other countries
• Despite intense digital disruption, Indian companies appear confident that their offerings are future-proof.
• On average, they said 61% of revenue by 2025 will come from businesses in industries or ecosystems in which they currently operate,
compared to 55% in the overall survey.
• 65% of Indian companies believe that most of their 2025 revenue will come from existing operations.
1. WHERE TO COMPETE % of revenue in 2025 from businesses in which the
organizations operate today
Digital strategies – deciding which
businesses and markets to be in
0%-25% 7%
2. WHAT TO COMPETE WITH
Digital offerings – defining the products
and services to offer
26%-50% 28%
3. HOW TO COMPETE
Digital ways of conducting business
51%-75% 44%
4. HOW TO LEAD
Leadership approaches to managing people who
are working in increasingly digital ways
76%-100% 21%
Mean: 60.52%
46 TCS 2021 Global Leadership StudyWhat to Compete With: Indian Companies Warm Up to Collaborating with
Competitors
• While fewer than half of respondents from Indian companies said they collaborate with competitors, that figure appears poised to
grow.
• A third (34%) said they plan to increase collaboration by 2025, while only 10% said they will decrease it.
Competitors Collaboration Competitors Collaboration in
1. WHERE TO COMPETE Status Future
Digital strategies – deciding which
businesses and markets to be in
10%
2. WHAT TO COMPETE WITH
Digital offerings – defining the products 34%
and services to offer 52% 48%
56%
3. HOW TO COMPETE
Digital ways of conducting business
4. HOW TO LEAD Decrease collaboration
Leadership approaches to managing people who Yes No Not much change planned
are working in increasingly digital ways
Increase collaboration
47 TCS 2021 Global Leadership StudyHow to Compete: Indian companies could explore subscription models more
aggressively
• Indian companies surveyed currently derive 22% of revenue from subscription-based models, compared to 25% for companies from all
countries, and the gap is widening.
• By 2025, subscriptions are expected to account for 25% of revenue in India and 31% globally.
% Revenues from Subscriptions 2021 vs. 2025
1. WHERE TO COMPETE
Digital strategies – deciding which
businesses and markets to be in
22%
2. WHAT TO COMPETE WITH
India
Digital offerings – defining the products
and services to offer 25%
3. HOW TO COMPETE 2021 2025
Digital ways of conducting business
4. HOW TO LEAD 25%
Leadership approaches to managing people who
All Surveys
are working in increasingly digital ways
31%
48 TCS 2021 Global Leadership StudyHow to Compete: Indian companies are determined to improve customer data use
About three-fifths said they need to improve data use to provide better customer service (62%, compared to 55% in all surveys), make
improvements to existing products (62% vs. 53%) and create new products (59% vs. 53%).
Areas of improvement in how organizations use customer data
1. WHERE TO COMPETE
Digital strategies – deciding which
businesses and markets to be in 62%
Providing better customer service
55%
2. WHAT TO COMPETE WITH
Making improvements to existing products 62%
Digital offerings – defining the products and services 53%
and services to offer
59%
Creating new products and services India
53%
3. HOW TO COMPETE
All Surveys
Digital ways of conducting business 49%
Improving marketing and sales
50%
4. HOW TO LEAD
Leadership approaches to managing people who Selling additional products and services to 39%
current customers 34%
are working in increasingly digital ways
Selling insights from our customer data to 34%
other companies 31%
49 TCS 2021 Global Leadership StudyHow to Lead: Learning tops the list of key cultural factors
• Consistent with the demands of a rapidly evolving digital economy, Indian companies believe learning/upskilling/reskilling will be the
most important characteristic of corporate culture by 2025.
• Other top choices include being quality driven and environmentally sustainable.
Most Important aspects of organization’s culture
1. WHERE TO COMPETE
Learning/Upskilling/Reskilling 0.74
Digital strategies – deciding which
businesses and markets to be in Environmental sustainability 0.69
2. WHAT TO COMPETE WITH Quality driven 0.69
Digital offerings – defining the products Innovation 0.61
and services to offer
Employee experience 0.56
3. HOW TO COMPETE Shareholder value | Financial performance 0.54
Digital ways of conducting business Transparency 0.52
4. HOW TO LEAD Customer centricity 0.48
Leadership approaches to managing people who Diversity, inclusion and equal opportunity 0.46
are working in increasingly digital ways Purpose driven 0.34
Risk tolerant 0.33
50 TCS 2021 Global Leadership StudyHow to Lead: Training and career development is a priority for improvement
• Consistent with valuing learning as a cultural factor, by a substantial margin Indian respondents said training and career development is
their highest priority for improvement by 2025.
• Other top areas include performance management, health and safety initiatives and providing flexibility in work schedule and location.
Where is the most improvement in employee experience required
1. WHERE TO COMPETE
Digital strategies – deciding which Training and career development 0.82
businesses and markets to be in Performance management and improvement 0.67
2. WHAT TO COMPETE WITH Health and safety initiatives (mind and body) 0.67
Digital offerings – defining the products
Providing flexibility in work schedule/location 0.67
and services to offer
Making remote workers highly productive 0.61
3. HOW TO COMPETE
Recognition and rewards (non-monetary) 0.52
Digital ways of conducting business Compensation and benefits 0.52
4. HOW TO LEAD Creating a sense of belonging 0.51
Leadership approaches to managing people who Promotion 0.34
are working in increasingly digital ways
Recruiting 0.31
Onboarding 0.21
51 TCS 2021 Global Leadership StudyThe Big Takeaway
Even with massive growth in digital opportunities, most Indian companies are
underestimating the amount of innovation in strategy, products and services, business
processes, and leadership approaches they will need to compete.
Are senior leaders prepared to lead their organizations to higher
performance in the mid 2020s?
52 TCS 2021 Global Leadership StudyAppendix
Study Demographics (country + region)
Number of respondents by country
400
352 TOTAL: 1206
350
300
250
200
151 150
150
100
51 50 50 61 53 61 60 60
50 30 30 17 30
0
US Canada UK Germany France Netherlands India Singapore China Australia New Zealand Japan Colombia Brazil Mexico
Number of respondents by region Percent of respondents by region
500
403 401
21%
400
APAC
300 252 North America
33%
200 150
12% LATAM
100
0
UK & Europe
33%
North UK & APAC LATAM
America Europe
54 TCS 2021 Global Leadership StudyStudy Demographics (industry)
# of Respondents
160 150 TOTAL: 1206
140
120 122
120 115
102 102 100 98
100 90
75 80
80
60 52
40
20
0
BFS Insurance Retail TTH CPG CMI Tech BU + Manufacturing Life Healthcare Utilities Energy &
Hi Tech Sciences Resources
Banking & Financial Life insurance (36) Transportation & Media & (includes (discrete, hospitals + (electricity, (oil & gas (50)
Services (Banking & + Logistics (80) + Entertainment comms equip, process) healthcare svc gas, water) + mining (30)
Credit 100) + Property/Casualty Hospitality (62) + Telecom semiconductor providers (60) +
(Securities & (16) [This category (Accommodation (40) makers + health insurance
Investment Svcs 50) excludes health & Food Services) technology) (38)
insurance] (40)
Sectors included in the study
*More detailed breakdown available
55 TCS 2021 Global Leadership StudyTCS 2021 Global Leadership Study Where, How and What Leaders Will Compete With in the New Decade Summer 2021 Japan: Key Findings report TCS Thought Leadership Institute
TCS 2021 Global Leadership Study: Overview
This 2021 study from Tata Consultancy Services (TCS) examines how leaders of large global enterprises in four regions of the world have
recalibrated their organizational strategies for the next few years, through 2025. Specifically, the study explores how senior leaders are
striking a balance between innovation and optimization in four arenas.
INNOVATION vs OPTIMIZATION
WHERE TO COMPETE
New sectors, regions, Digital strategies – deciding which Existing sectors, regions, business
business models businesses and markets to be in models
New products WHAT TO COMPETE WITH Improving existing
and services Digital offerings – defining the products products and services
and services to offer
New business Improving existing ways
processes to create HOW TO COMPETE of creating demand and
demand and supply Digital ways of conducting business supply
New approaches to Improving existing talent
HOW TO LEAD
managing talent and management approaches
Leadership approaches to managing people who
creating a new culture and the current culture
are working in increasingly digital ways
57 TCS 2021 Global Leadership StudyTCS 2021 Global Leadership Study: Japan Essential Takeaways at a Glance
1. WHERE TO COMPETE
Although about half of Japanese companies still strategize using a pre-digital framework, most (62%) believe their biggest
competitor through 2025 will come from outside traditional industry boundaries.
2. WHAT TO COMPETE WITH
Japanese Leaders predict that 52% of their 2025 revenue will come from businesses in industries or digital ecosystems
in which they do not currently operate. Followers are targeting 39% of revenue from such sources.
88% of Leaders collaborate with competitors; only 12% of Followers do. Half of Leaders and plan to increase
collaboration, compared to 42% of Followers.
3. HOW TO COMPETE
Overall, Japanese respondents expect IT, customer service, marketing and sales to be under the greatest pressure
through 2025. Leaders, however, were more likely to rank R&D highly, while Followers placed it near the bottom.
Although overall, Japanese companies rank innovation as the most important cultural trait between now and 2025,
Leaders ranked innovation near the bottom in spite of their focus on R&D. Instead, customer centricity topped the list.
4. HOW TO LEAD
Across the board, a high proportion of Japanese companies see customer data analysis as the most important factor in
innovation, followed by seeking ideas from employees, and by rewarding them for inventiveness with compensation
and career options.
58 TCS 2021 Global Leadership StudyJapanese companies surveyed (61 in all)
Roles Industries Annual Revenue ($USD)
Chief Executive Officer Manufacturing (discrete… 49% Less than USD $500
(CEO) 2% 0%
Retail 13% million
Transportation and Logistics 13% USD $500 million to
Chief Operations Officer 0%
(COO) 2% less than $1 billion
Utilities (electricity, gas, water) 10% USD $1 billion to
Consumer Packaged Goods 3% 75%
less than $5 billion
Chief Strategy Officer (CSO) 2%
Accommodation and Food… 3% USD $5 billion to
11%
less than $10 billion
Technology 3%
VP/SVP/Head Strategy 10% USD $10 billion to
Securities & Investment… 2% 8%
less than $20 billion
Oil & Gas (exploration and… 2% USD $20 billion to
Director of Strategy 34% less than $50 billion
3%
Mining 2%
USD $50 billion to
Divisional/business unit Banking and Credit Institutions 0% 2%
head 20% less than $75 billion
Insurance 0% USD $75 billion to
0%
Media & Entertainment 0% less than $100 billion
VP/SVP/Head Operations 18% USD $100 billion to
Life Sciences 0% 0%
less than $200 billion
Hospitals & other healthcare… 0%
Director of Operations 13% USD $200 billion or
Telecom 0% 0%
greater
59 TCS 2021 Global Leadership StudyWe compare “Leaders” and "Followers"
Leaders are firms with higher-than- Followers are firms with lower-than-
average increases in revenue and average increases in revenue and
net profit in their industry between net profit in their industry between
2015 – 2019. 2015 – 2019.
VS
+65% and +73% -15% and
-36%
revenue net profit revenue net profit
Leaders Followers
These companies are These companies are
29% of the total survey sample. 33% of the total survey sample.
In this 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."
Innovation
60 CEO Study
TCS 2021 Global Leadership StudyWhere to Compete: Leaders eye tough competition from startups
• Although about half of Japanese companies still strategize using a pre-digital framework, most (62%) believe their biggest competitor
through 2025 will come from outside traditional industry boundaries.
• Leaders are far more concerned about novel threats from startups, digital firms and companies from other industries.
Total Leader Follower
1. WHERE TO COMPETE Traditional industry
38% 6%
players 54%
Digital strategies – deciding which
businesses and markets to be in
Companies from other
20% 25% 19%
2. WHAT TO COMPETE WITH industries
Digital offerings – defining the products
and services to offer
Digital companies
16% 25% 8%
(existing)
3. HOW TO COMPETE
Digital ways of conducting business New companies (launched
25% 44% 15%
over the next 5 years)
4. HOW TO LEAD
Leadership approaches to managing people who Not sure/competition is
are working in increasingly digital ways 2% 0% 4%
unpredictable
61 TCS 2021 Global Leadership StudyWhere to Compete: Leaders and Followers differ widely in assessing competitive
opportunities
• In determining where to compete, Leaders’ top three criteria are regulatory, existing market presence, and market size.
• Followers ranked these at the bottom. Instead, they consider brand recognition, existing sales and marketing capabilities, and degree of
competition.
Leader Rank Follower Rank
1. WHERE TO COMPETE
Political, fiscal and regulatory environment 1 10
Digital strategies – deciding which
businesses and markets to be in Existing presence in those markets 2 8
Size of the market 3 9
2. WHAT TO COMPETE WITH
Digital offerings – defining the products Alignment to organization’s purpose 4 4
and services to offer Growth rate of the market 5 6
Degree of competition 6 3
3. HOW TO COMPETE
Digital ways of conducting business Cultural fit with our company 7 5
Brand recognition in those markets 8 1
4. HOW TO LEAD
Leadership approaches to managing people who Sustainability (i.e., environmental impact) 9 7
are working in increasingly digital ways
Existing sales and marketing capabilities 10 2
62 TCS 2021 Global Leadership StudyWhat to Compete With: Leaders’ plan to capitalize on new business opportunities
• Japanese Leaders predict that 52% of their 2025 revenue will come from businesses in industries or digital ecosystems in which they do
not currently operate.
• Followers are targeting 39% of revenue from such sources.
% of revenue from businesses in which the organizations will operate in future
1. WHERE TO COMPETE Total Leader Follower
Digital strategies – deciding which
businesses and markets to be in 0%-25% 20% 6% 42%
2. WHAT TO COMPETE WITH
Digital offerings – defining the products 26%-50% 48% 50% 27%
and services to offer
3. HOW TO COMPETE
51%-75% 23% 31% 19%
Digital ways of conducting business
4. HOW TO LEAD
13%
Leadership approaches to managing people who 76%-100% 10% 12%
are working in increasingly digital ways
Mean: Mean: Mean:
45.64 52.19 39.08
63 TCS 2021 Global Leadership StudyWhat to Compete With: Nearly all companies, other than Followers,
collaborate with competitors
• 88% of Leaders and 79% of “All Others”* collaborate with competitors; only 12% of Followers do.
• Half of Leaders and about two-thirds of All Others plan to increase collaboration, compared to 42% of Followers.
Competitors Collaboration Status
Total Leader Follower All Other
12%
1. WHERE TO COMPETE 13% 21%
Digital strategies – deciding which 48% 52%
businesses and markets to be in
88% 88% 79%
2. WHAT TO COMPETE WITH
Digital offerings – defining the products Yes No
and services to offer
Competition Collaboration in future
3. HOW TO COMPETE Total Follower All Other
Leader
Digital ways of conducting business
7% 8% 5%
6%
4. HOW TO LEAD
Leadership approaches to managing people who 51%
42% 32%
43% 50%
are working in increasingly digital ways 44%
50% 63%
Decrease collaboration Not much change planned Increase collaboration
64How to Compete: In improving customer-data use, Leaders prioritize upselling and
outreach
• Leaders’ highest customer-data priorities are among Followers’ lowest.
• By 2025, 81% of Leaders (38% of Followers) intend to improve how they use customer data to sell products and services to current
customers; 69% target improving marketing and sales, compared to 42% of Followers.
Areas of improvement in how organizations use customer data
Leader Follower
Total
1. WHERE TO COMPETE Providing better customer 42%
52% 56%
Digital strategies – deciding which service
businesses and markets to be in Making improvements to
54% 50% 54%
existing products and services
2. WHAT TO COMPETE WITH
Digital offerings – defining the products Creating new products and 50%
54% 50%
and services to offer services
Improving marketing and
52% 69% 42%
sales
3. HOW TO COMPETE
Selling insights from our
Digital ways of conducting business 34% 44% 38%
customer data to other…
4. HOW TO LEAD Selling additional products
44% 81% 38%
Leadership approaches to managing people who and services to current…
are working in increasingly digital ways
None of the above 2% 6%
0%
65 TCS 2021 Global Leadership StudyYou can also read
