Shor t Takes
of products and services; how do they build them
in a very different way? That value chain has to be
updated to take advantage of all the new tools that are
coming out of the Fourth Industrial Revolution. And
companies will have to rethink their supply chains;
take 3-D printing, for instance: Maybe you no longer
have spare parts built at a plant somewhere and then
shipped, but rather, maybe you have them ‘printed’
where you need them. There are lots of implications;
lots of things to think through. How do you sell a
product—how do you sell a car, for instance—
using only digital channels, not physical channels.
The companies that are thinking about how to run
their companies differently and how to sell to their
customers differently are going to be the winners.
Consulting: And the second area where the Fourth
Industrial Revolution is impacting business?
Kande: At the strategic level, companies will have
to think about who will be the next generation of
challengers they’re going to face. That’s where you
start to get into business model innovation. Business
model innovation creates the next category of
challengers. Blockbuster, for example, got taken out
by a company that it never saw coming. Netflix began
mailing videos, and they completely changed the model
and now look at where they are. The Fourth Industrial
Revolution has completely accelerated the rise of new
entrants that are leveraging the manifestations of the
Fourth Industrial Revolution to create new business
models and new ways of creating value for customers,
new services, new products and even new industries.
Consulting: What about the human side—leadership—
the executives running these companies?
Kande: Most business leaders of companies are either
trained to lead in digital world or the physical world;
very seldom do you see an executive who can do both.
So, what will the next generation of leaders need to have
from a capability standpoint? We spend a lot of time
with companies’ leadership trying to get them to think
about these issues in a new way. What is the best way to
run a company today? What will be the workforce of the
future? How will they come up with the next generation
of workers and leaders? So we have the transformation
of the business, the transformation of the industry and
the transformation of the workforce all being impacted.
A lot of executives are struggling, and we spend a lot
of time working with them to help them navigate the
Fourth Industrial Revolution.
Consulting: Should they be focused more on the
people side or the technology side?
Kande: They have to do both. If they focus only on the
technology side they’re missing a huge piece. That’s
why a lot of big technology transformations have failed.
People not only give you the execution; they also give
you the adoption. You need both. If you go with next-generation technology, you also need to make sure that
the people who are interacting with that technology
have the right skills or else it will not work.
Consulting: How would you characterize clients’
mindset right now regarding this revolution?
Kande: I would say they are optimistic about the future.
This change is good for most of them; it gives them
the opportunity to re-invent themselves and come up
with new models, but not all of them have the answer.
They are willing but many of them don’t know where to
start—that’s where PwC can help, of course.
Consulting® DECEMBER 2018 5
““MOST BUSINESS LEADERS ARE TRAINED TO LEAD EITHER IN THE PHYSICAL WORLD OR THE DIGITAL WORLD. VERY SELDOM CAN ONE DO BOTH.