Margaux Fodéré // Photo credit: Tobias SCHWARZ / AFP
According to a PwC study, 56% of business leaders who have rethought their model in the past five years have done so to comply with regulations. If leaders take action themselves, these transformations are often imposed by external constraints, and therefore perceived as forced.
This is the annual meeting of the global economy. The Davos forum
began on Monday in Switzerland
against a backdrop of crises: geopolitical tensions, technological revolution, and energy transition. The challenges are numerous and the leaders know it. 60% of them believe that their company is doomed to fail if they do not transform it, according to a study by the consulting firm PwC.
But for many, these transformations are more forced than anything else. Proof of this: the companies that have started to reinvent themselves do so primarily to comply with standards, especially environmental ones.
Complying with standards
For example, some European companies will have to disclose information about their impact on climate or biodiversity, thanks to the famous CSRD directive. This transparency requirement forces companies to make efforts to be more environmentally friendly.
“Today, competition is mainly based on the quality of your products and the price. Tomorrow, competition will also focus on how you have produced your goods and services. And that’s why we have undertaken real work to reduce CO2 emissions, particularly by reducing the travel of our employees,” believes Guillaume Richard, the founder and president of Oui Care, a specialist in home services.
The pressure of technological revolutions
And when it’s not regulation, it’s climate or technological change that forces companies to rethink their model. According to Jérémy Gallemard, co-founder of Smart Tribune, a software publisher, it’s “a matter of life or death.”
“When we worked with our clients to build all the knowledge of the company, it was a long process, usually taking between two and six months. Now, with artificial intelligence, we can reduce this work to a few days, even a few hours,” continues Jérémy Gallemard.
A “paradox” in company transformation
It is still necessary for business leaders to successfully carry out their transformations and overcome certain obstacles, especially regulations. “There is a sort of paradox. In the face of the urgency to transform, we sometimes have to comply with regulations. At the same time, French leaders point out the risk of over-regulation,” analyzes Patrice Morot, president of PwC France and Maghreb.
So to reinvent themselves, each company must find its own way. Some, like Smart Tribune, adopt new technologies, others develop new products for their clients, and some forge new partnerships. All decisions made to survive.
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