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How EY can help
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EY-Parthenon professionals recognize that CEOs and business leaders are tasked with achieving maximum value for their organizations’ stakeholders in this transformative age. We challenge assumptions to design and deliver strategies that help improve profitability and long-term value.
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There are also differences by sector. CEOs in the energy and natural resources sector cite the higher cost of capital as the main barrier; those in health sciences are most concerned about slowing growth and ability to pass on costs; while those in the automotive and manufacturing sectors are most worried about the increased cost of doing business.
Companies need to be able to understand how the dynamics for their business have evolved and to anticipate future shifts, including their competitive position within their target markets. They should adeptly adjust, integrating economic considerations, customer demand projections, and dynamic pricing strategies to alleviate these challenges. In a slower-growth environment with greater costs of doing business and a higher external cost of capital for investment, funding ongoing and future transformation will likely hinge on internal operational rationalization and cost takeout initiatives. This is one area where AI may be best positioned in the short-term to help CEOs make better use of their own data, supplemented with external sources, to have a clearer view of their addressable markets.
CEOs need to scrutinize every area of their operations, from both a product and a geographic angle, and decide which underperforming areas to jettison. Maximizing growth and profitability to fund this transformation will be the key to unlocking long-term value creation.