Technology and Software
In this video, David Mark, BCG senior partner and managing director, and global leader of BCG’s Technology Sector, explores current trends in the technology industry.Watch the video
For large technology companies, size itself is a challenge. It is difficult to grow organically at 10 percent or more when you’re a $10 billion-plus company. Big companies can no longer rely on a single flagship product or market to generate sufficient growth. Nor can they turn to diversification as a market share cure-all. They must stay focused, and they must innovate.
Despite the challenges, the pressure to create more value never stops. Activist investor activity is up 25 percent, and the recent spate of actual and proposed corporate splits is proof that companies are eager to improve their market position by redefining their portfolios. But breakups aren’t the only way to respond to the pressure. M&A activity is also on the rise.
Companies need to deal with new market pressures proactively. Whether it means breaking up, acquiring, merging, creating new products or services, or finding other opportunities to invest or optimize, they need a systematic approach to creating value.
. The key is doing it proactively, before the market grows impatient and forces choices and trade-offs that may constrain your options.
Not long ago, uttering “growth” and “technology” in the same sentence was redundant. Today, it’s a different ball game.Read the article
Three out of four executives cite innovation as a top priority, but only 17% believe their innovation capabilities measure up. Why?Read the article