Innovation isn’t limited to releasing new products. To win in today’s tech industry, companies must continuously reinvent how they compete—and embrace their outsized role in society.
No industry creates more value in today’s economy than the tech industry. Its innovations fuel the digital world. But tech is also one of the most volatile industries, experiencing constant disruption that challenges even the strongest organizations. Incumbency is often a liability. And with its outsized impact, the tech industry is subject to increased scrutiny—which means leaders are in a state of always-on transformation, and must constantly examine how they contribute to society.
At BCG, we help tech leaders go further and faster, and we also help companies rediscover and activate their purpose. Companies that link performance and purpose turn vision into value—for the world and themselves.
Our approach to client work recognizes that the tech industry is actually many sectors, with unique challenges and opportunities in each:
Our technology industry consulting experts help companies go further, faster, by transforming operating models, ways of working, and such core functions as pricing, sales, and product innovation and engineering. We draw upon a global network of thought leaders, as well as digital businesses such as BCG GAMMA and BCG Platinion. Here are some examples of our impact:
Pricing. Our client, an SaaS-native company, grew their revenue more than 14% after we created dynamic pricing guidelines that better served their customers while leveraging BCG’s Pricing Catalyst software.
Next-Generation Sales. A major North American SaaS business increased digital lead volume by 50%, reduced sales-time-to-action from seven days to less than 15 minutes, and boosted its conversion rate by a factor of ten after our technology industry consultants built a new inside sales organization.
Customer Service and Support Excellence. We applied AI and analytics to help a North American service provider reduce monthly churn by approximately 5%. The project delivered more than $25 million in revenue run-rate impact by the end of the first year.
Product Innovation and Engineering. A BCG team rebalanced 25% of a technology company’s R&D spending and established a $40 million fund to turbocharge innovation, spark better product-customer fit, and improve return on R&D investments.
Companies that unleash the power of purpose—the “why” driving what they do—can achieve tremendous social impact. They can transform productivity and profitability, too. Our technology experts, along with BCG’s global creative consultancy, BrightHouse, help companies activate their purpose and embed it throughout their organizations.
Many tech companies are reaching middle age and need to reinvent and transform themselves to stay relevant. They also need to broaden their core purpose to address their role and influence in society and their effect on the environment.
Amid rising discontent, Purpose 2.0 can help tech companies rediscover their footing, regain public confidence, and reinvigorate their performance.
BCG’s recent survey of nearly 700 IT buyers across industries found that the dynamics of demand are evolving. Vendors must ensure that their sales tactics are suited to the new environment.
By shining a light into the black box of R&D spending, companies can spur innovation.
