Business Model Transformation

🌍 Some companies aren’t waiting for the sustainability playbook to be written—they’re writing it themselves, through real and often difficult business model transformation. This recent Harvard Business Review article by Ivanka Visnjic, Felipe Monteiro, and Michael Tushman spotlights four such firms—Enel Group, Holcim, OCP Group, and Suzano. What they share is not a single blueprint, but a willingness to rethink how value is created, delivered, and measured across their organisations. They’re reshaping innovation portfolios ⚙️, building ambidextrous structures 🔁, and enabling experimentation at the edge 🧪—while keeping an eye on scale and integration. These are practical responses to a complex challenge, not abstract aspirations. One thing the article captures well is the real organisational work involved. Enel set up separate business units to explore new energy services. Holcim created a global programme to empower local plants with data and digital tools. Suzano is investing in community-based initiatives and backing them with budget authority, not just words. OCP’s internal platform, Le Mouvement, is turning employees into active designers of sustainability solutions. All of this takes place while navigating three tough but familiar tensions: 📉 Delivering on short-term performance while building for the long term 🌐 Driving global goals while staying grounded in local realities 🤝 Opening up to external partners while maintaining internal alignment These tensions can’t be eliminated—but they can be managed intentionally. And the companies profiled are showing that it’s possible to do so without losing focus or diluting ambition. For me, the article reinforced a broader point: sustainability, when taken seriously, demands organisational creativity—not just technical fixes or stronger targets. It requires rethinking capabilities, incentives, and learning structures across the organisation. And it often means questioning core assumptions about what business is for, and whose interests it serves. So the questions I’m left with are these: 🔹 Are we preparing our organisations—structurally and culturally—for this kind of transformation? 🔹 And are we willing to confront the uncomfortable trade-offs it inevitably exposes? I’d highly recommend this piece to anyone working at the intersection of strategy, innovation, and sustainability. It’s rich in insight and refreshingly grounded in real organisational practice: https://lnkd.in/dtEqnezP

The teen models in Mango's latest campaign have perfect poses, perfect lighting, and one small detail: they don't exist. This Spanish fashion giant launched their Sunset Dream collection using entirely AI-generated models across 95 markets. Not a single human model was photographed. Here's how they did it: 📌 Took photos of real clothes on display stands 📌 Fed these pictures to their AI system 📌 Created model images in minutes 📌 Rolled out everywhere at once The business impact is massive. Fashion brands typically save 60-80% by leveraging AI photoshoots. Those savings can now fund innovation, better pricing, or faster expansion. But cost isn't the real story here. Speed is. While competitors wait weeks for campaign photos, MANGO creates, tests, and launches collections in days. No weather delays. No scheduling conflicts. No reshoots. This wasn't luck. Since 2018, Mango has built 15 different AI platforms across their business. They've been preparing for this moment. The result? Their 2024 turnover reached 3.3 billion euros in 2024, growing 7.6% from 2023. What makes this significant is that Mango proved AI-generated content can drive real sales. Their teen customers embraced these virtual models without hesitation. Fashion's biggest players are watching. If Mango's approach succeeds long-term, traditional photography could become a thing of the past for e-commerce. The brands that adapt now will set industry standards. Those that don't might find themselves competing against companies moving at AI speed. Which fashion tradition do you think AI will disrupt next?

India’s biggest cinema chains are losing money. But a small cluster of regional operators is quietly making it work. Chains like Chhotu Maharaj, NY Cinemas, Connplex, Miraj are opening screens in towns most people can’t place on a map. Here’s what they’re doing differently: – Building in underserved towns where no screen exists for 50 - 100 km – Keeping capex low: ₹1.5–2 Cr vs ₹10–40 Cr for metros – Offering ₹150–₹200 tickets that people can afford every week – Using space smartly—hosting events, sports screenings, local shows – Partnering via franchises to scale faster, with local skin in the game Meanwhile: – PVR Inox lost ₹280.9 Cr in FY25 – Average occupancy being just 16% (vis-à-vis 36% in 2019) – 70% of 2024’s box office revenue came from 10 films, while 1,800 films had been released in theatres – India still has <10,000 screens for 1.4B people (vs China’s 90k) For instance, when ET asked Amit Sharma about the location strategy of Miraj Cinema, he said," In India, there are at least 500 cities where there is no cinema, so there is a lot of scope to penetrate and if your micro market is good, whether it's a big city or a small city, it doesn't make any difference." Multiplexes in India were designed to be aspirational. Fancy spaces. Recliner seats. ₹400 combos. But in 2025, that model is breaking. Because the audience is moving on, and so are the economics. This isn’t just about cinema. It’s about distribution. (Source: Mint, ET, Moneycontrol, EY)

Take a moment to watch this video — a historic glimpse of workers drawing and quenching #coke from a coke oven, a process that’s fuelled steelmaking for over a century. The stunning lack of PPE aside, it’s a powerful reminder of the ingenuity that built our modern world — and the legacy that we now need to transform. Today, metallurgical coal and coke remain vital to steel, with demand holding steady in the near term, especially as India and Southeast Asia drive growth. Yet, on a net-zero scenario, emissions from steel will have to come down by around 90% in 2050 — clearly incompatible with today's trajectory for metallurgical coal. It’s not a quick switch — cost and scale are tough nuts to crack — but the shift is inevitable. Getting there will require three elements: a massive scale-up of new technologies like hydrogen-based direct-reduced iron (#DRI), retrofitting existing assets with carbon capture, and pushing #electrification as well as material and process efficiency to the limit. Achieving this transformation isn’t just about technical breakthroughs— industry will need stable policy frameworks, robust financing mechanisms, and major infrastructure investments (from clean power grids to hydrogen pipelines) to enable steelmakers worldwide to move from pilot projects to full-scale deployment.

It’s an incredible time to be a leader. No two days are the same with new ideas and challenges coming at you all the time.    Each year, for the last ten years, we’ve spoken to over 1,300 CEOs from across various industries, countries and continents to better understand what drives them, how they are navigating challenges and their views on the greatest risks to growth, as part of our #CEOoutlook survey.    This year’s survey reveals that while confidence in the global economy remains high, it has waned – from 93 percent in 2015 to 72 percent today. Despite this, business leaders continue to show impressive resolve in steering their companies through this era of volatility and transformation. Their strategies and priorities offer a glimpse into the decade ahead.    From the economic and social shockwaves of the pandemic to surging inflation, geopolitical tensions and the rise of AI, leaders have had to adapt to several once-in-a-generation moments happening all at the same time.    The magnitude of these challenges has redefined leadership, requiring CEOs to be more resilient, agile and innovative than ever before.    For me, CEOs navigating the next decade will face four key things: a bold embrace of AI, a renewed commitment to ESG and sustainability as a source of value creation, a deep focus on their people, and an ability to balance competing stakeholder demands.    AI stands at the heart of the current CEO agenda and it’s part of every single conversation I have with our clients. This year’s findings show that 64 percent of CEOs are prioritizing investment in the technology.    However, this optimism is tempered by a sobering view of the immediate impacts. A significant majority (76 percent) of CEOs believe #AI will not fundamentally alter job numbers yet only 38 percent feel their employees are prepared and ready with the skills they need to fully reap the benefits. So, while AI has tremendous transformative potential, its success rests on aligning the rapid technological developments with workforce readiness and ethical considerations.    Another big feature from the last decade has been the rise of #ESG considerations, shifting from a peripheral concern to a central strategic pillar. Nearly a quarter of CEOs see failing to meet ESG targets as a significant competitive disadvantage. Despite the growing politicization of the issues, 76 percent are willing to make tough decisions, such as divesting profitable but reputation-damaging parts of their business to uphold their commitments.   The next decade will, without a doubt, produce its own storms. I believe that the CEOs who set bold strategies and invest in the right technologies to make these plans a reality, will be the ones who deliver sustainable growth for the long-term. https://lnkd.in/gDTiuGUV

There are so many different ways of building an innovative, robust, responsible company, but I'm not sure any of them happen quickly. This is the case at VEJA, whose mission, purpose and values have guided every micro decision the company makes for the last 18 years: * Complete transparency in supply chain, right back to the cotton field and the rubber tree * Fair wages, fair trade. Even if that means paying double the market price. * If you don't like whats on the market, make it yourself (the business plans to open a recycling plant in a Brazilian favela next year) * Don't wait for the customer to ask - do what you think is right and see if the customer comes, (they have 14 cobbler studios repairing shoes worldwide and are planning more. This is not a revenue play but what they identified as the first step in circularity for the business). VEJA have been pursuing this path since 2005 by diverting marketing and advertising money into materials and labour. I sat down with co founder SEBASTIEN KOPP to hear how they did it - and how the Brazilian government gave them access to a satellite system which is the only way to track deforestation. Rather than acting like 'neocolonialists' the rubber farmers use the information to run their own co-operative. It's a really impressive company with lots more to come. Who else stacks up so well in this space? https://lnkd.in/e_bhdWmt

It's out! Today, Textile Exchange has published its report, authored by yours truly, exploring how we can reimagine growth in the fashion, apparel and textile industry. This landscape analysis is intended to provide a state of play on this highly complex and contentious topic - outlining why we need to shift from exponential increases in production and consumption volumes based on unchecked resource extraction. Instead it provides a vision for alignment with regenerative economy and post-growth principles, centering a complete reimagining of value creation. Very simply, continued improvements on the product and process level are not going to be enough for the level of change required. What this report shows is the need for reduction as an active strategy, addressing head on the tension that presents. Importantly, it emphasises doing so as necessary to ensure resilience; mitigating future risk due to supply chain instability, resource depletion, overreliance on finite resources and incoming legislation. The report proposes a suite of pathways for change, including eliminating virgin fossil-based synthetics, designing products for longevity and reflecting externalities in their pricing, scaling circular business models, and addressing marketing practices. It further explores new success metrics, mobilising finance and alternative ownership and governance models, as well as the need to ensure a just transition—protecting the rights, livelihoods and well-being of people across the value chain. These pathways will require systemic support to achieve anything close to a post-growth future, with the need for ambitious government policy and collective corporate commitment to get there. The report calls on business leaders, policymakers and financial stakeholders to take immediate, meaningful steps. This isn't simple and it won't be easy. As I say in the press release: “Reimagining growth represents a fundamental paradigm shift, requiring not just incremental adjustments but a complete transformation of how the industry operates. As a challenge of systems change, inherently rooted in complexity, it will demand contributions from all stakeholder groups to achieve a more sustainable and equitable future.” Thank you to all of the incredible people who contributed to this report in consultations, workshops, expert interviews, review processes and ear bending by me. And mostly thank you to Beth Jensen and Claire Bergkamp for their incredible support and leadership on this work over the past three years, and for having the courage of conviction, alongside the Textile Exchange board and wider team, to table this topic and publish something so bold and so crucial for the future of our industry, our planet and the people on it. Read the full report here: https://lnkd.in/eScK9uyy #postgrowth #sustainablefashion #overconsumption #fashion #textiles 📷  Madeleine Brunnmeier 

Private Equity’s entry into the Legal sector is no longer speculative – it is strategic, calculated, and rapidly accelerating. The unprecedented regulatory shift in Arizona, which approved a KPMG-affiliated Law firm owned entirely by non-lawyers, marks a watershed moment. For Private Equity, it’s a signal: the final structural barrier to large-scale investment in Legal services is starting to fall. What followed in Accounting is now unfolding in Law – the next frontier in the transformation of Professional Services. The rationale is compelling. The Legal industry remains fragmented, operationally inefficient, and culturally resistant to change – precisely the type of sector where Private Equity thrives. With capital to deploy, proven playbooks for consolidation, and the ability to scale AI to drive cost efficiencies, Private Equity firms aren’t simply offering funding – they are redefining the business model. Law firm leaders – many of whom were once staunchly skeptical – are beginning to reassess. Top talent expects modern platforms. Clients demand more for less. And AI, when deployed with focus, offers a clear route to reducing cost-to-serve while expanding service lines. For firms with ambitions to scale, digitize, or pursue M&A, Private Equity provides the velocity and expertise to make it happen. Still, the tension is real. The promise of growth, liquidity and innovation comes with the risk of cultural erosion, misaligned incentives, and loss of partner control. But in a hyper-competitive, margin-conscious environment, the greater threat may lie in standing still. The Legal sector has not yet been ‘PE’d’ – but that moment is approaching fast. The question for firm leaders is no longer if – but how they intend to respond.

Thinking of entering defence? Good. But read this first, or get crushed. You’re not building a startup. You’re entering a war zone with Excel sheets instead of bullets. And here’s the first landmine: Defence doesn’t care about you. Not until you matter. And by the time you matter, it might be too late. So here’s your brutal, field-tested playbook 👇 🔻 1. Run a Dual-Use Strategy or Die Trying Don’t “pivot into defence.” Don’t “add military as a target customer.” Build something with teeth in both markets — or you’ll starve while waiting 24 months for a MoD reply. Dual-use = survival. Omni-use = dominance. 🔻 2. Your Actual Competitor? Paper. You're not fighting primes. You're fighting outdated workflows, 94-page requirement PDFs, and evaluation committees who’ve never used the tech. You’re not selling innovation. You’re selling the idea that innovation should exist. 🔻 3. Never Ask for Feedback — Ask for Budget Lines Everyone will “love” what you’re doing. They’ll invite you to panels, workshops, incubators. None of that pays your team. Ask: “Which budget pays for this in Q4?” If they can’t answer, walk. 🔻 4. Find a Uniformed Insider, or You’re Screwed No matter how good your pitch is, you need a believer inside the system. Someone who speaks procurement and can say, “This solves my mission.” Without that: enjoy limbo. 🔻 5. If You’re Not Testable, You’re Not Real Defence doesn’t buy PowerPoints. You need a testable MVP fast. No test = no traction. No traction = no procurement route. No route = you're just theatre. 🔻 6. The First Deal Will Break You It’s slow. It’s painful. It’ll take months, maybe years. But once you break the wall once, you become “pre-approved.” Then the real business begins. 🔻 7. Ignore All of This If You're Building Slideware This advice is only for builders. For founders ready to live in uncertainty, raise from niche VCs, and get 50 no’s before one test flight. If you're not all-in: stay in SaaS. This is the most misunderstood opportunity of our time. Europe is waking up. The U.S. is doubling down. And the next industrial revolution will wear camouflage. Startups who learn the terrain will dominate. Speed. Testability. Dual-use. Insider access. That’s your survival kit. Use it. #DefenceStartups #DualUse #InnovationInDefence #OmniUse #MilitaryTech #InsiderIntel #BoldMovesOnly #WakeUpEurope

Most large-scale energy initiatives follow the same pattern: start with big commitments, roll out connections, figure out the policy later. Nigeria did the opposite. And that’s why it’s working. Instead of treating private investment as an afterthought, Nigeria built the policy framework first. And that made all the difference. What Nigeria Got Right - 1. A Structured Energy Compact – Nigeria created a clear, integrated policy that combines grid expansion, mini-grids, and decentralized solutions into a single plan. Other countries still treat off-grid power as an afterthought. 2. Private Sector Was Built Into the Model – Most African energy plans rely almost entirely on government spending. Nigeria understood that public money alone won’t be enough, so they de-risked the investment landscape for private players. 3. Policy Stability That Investors Can Trust – The biggest deterrent to energy investment is regulatory unpredictability. Nigeria structured clear rules around licensing, tariffs, and long-term market participation, giving businesses and investors the ability to plan long-term—not just react to political cycles. The Results Speak for Themselves - - Nigeria is now the leading mini-grid market in Africa. - Private capital is flowing into the energy sector at scale. - The policy model is structured for real expansion—not just short-term funding cycles. Now compare this to many other Mission 300 countries - - There’s no clear strategy to integrate decentralized and centralized power. - Investment risk is still too high for private capital to flow at scale. - The policy landscape remains too unstable for long-term planning. Nigeria isn’t perfect. But it’s one of the few places where energy policy is being built for growth, not just for the next round of funding. If Mission 300 countries want to make real progress, this is the playbook - - Stable, investment-friendly regulation - A clear plan that integrates all forms of power - Long-term market structures that attract capital at scale Energy access is an industry, not a one-time intervention. And Nigeria is proving that when the policy is right, the investment follows. #NigeriaEnergy #Mission300 #SmartInvestment #EnergyForGrowth