What’s keeping software and platform leaders up at night?

At this critical juncture, forward-thinking S&P leaders are seizing the opportunity to completely overhaul their operating models and develop essential capabilities, such as Generative AI, to maintain their leadership positions. In fact, 74% of C-suite execs believe they need to completely rethink their operating models to be more resilient. And with an anticipated compound annual growth rate of 11% from 2023 to 2026, a rate that is slower than the two previous three-year periods, which were 15% (2020-23) and 21% (2017-20), this emphasis on enhancing operational efficiency is crucial. Especially as these companies tackle both technological and organizational challenges, while also investing in capabilities that facilitate long-term growth, tackle both technological and organizational challenges, while also investing in capabilities that facilitate long-term growth.

The growing critical challenges and transformative shifts occurring in  monetizing attention- is creating an urgent need for advertisers to adapt to a rapidly changing environment marked by the phasing out of third-party cookies, increased competition for consumer attention, and significant privacy changes. But 60% of US and UK advertisers are underprepared for the loss of third-party identifiers and 1 in 4 don't see the shortcomings in their current strategies. Businesses are tasked with building a more resilient and future-ready advertising model by leveraging first-party data, exploring new audience targeting solutions, and enhancing measurement capabilities. It has never been more imperative to evolve to maintain competitiveness and engage with audiences in a privacy-focused, digital-first world.

At this critical juncture, forward-thinking S&P leaders are seizing the opportunity to completely overhaul their operating models and develop essential capabilities, such as Generative AI, to maintain their leadership positions. In fact, 74% of C-suite execs believe they need to completely rethink their operating models to be more resilient. And with an anticipated compound annual growth rate of 11% from 2023 to 2026, a rate that is slower than the two previous three-year periods, which were 15% (2020-23) and 21% (2017-20), this emphasis on enhancing operational efficiency is crucial. Especially as these companies tackle both technological and organizational challenges, while also investing in capabilities that facilitate long-term growth, tackle both technological and organizational challenges, while also investing in capabilities that facilitate long-term growth.

The small to medium-sized business (SMB) sector, a powerhouse responsible for up to 70% of the global GDP is ripe with growth opportunities. Yet, there's a wrinkle: nearly half of SMBs view their enterprise partners with a skeptical eye. Bridging this trust gap could boost SMB spending on products and services by 5-15%, underscoring the need for robust relationships and customized solutions to unlock the enormous potential of the SMB market.

As consumer preferences dramatically shift towards digital and streaming services, legacy media companies find themselves at a crossroads. With big tech expected to grow their operating cash flow more than two times faster than legacy media companies (10.6% vs. 4.8%) during 2023-25, it has become necessary for these companies to venture beyond their comfort zones and explore new revenue streams and roles within the entertainment value chain. Embracing bold, innovative strategies is not just an option but a requisite for thriving in the rapidly evolving media landscape. This piece serves as a crucial wake-up call for media executives to rethink their business models and adapt to the new realities of the industry.

Prioritizing risk management is crucial for software and platform executives aiming to drive profitability and sustainable growth. The importance of addressing risk proactively to navigate the complex web of threats has intensified with disruptive technologies and regulatory scrutiny. Our 2024 Global Risk Study heightened this point where 49% of Software & Platform respondents say the impact of disruptive technology risks rose most since 2021. By implementing robust risk management strategies from the outset of product development, businesses can mitigate vulnerabilities, ensuring compliance and safeguarding against costly security breaches. Prioritizing risk management is not merely a defensive measure but a strategic imperative that fosters innovation, operational efficiency, and profitability in the software and platform sectors.