How to determine if companies are ripe for transformation

To determine if companies within a specific industry and geography are ripe for transformation – assuming the market is growing steadily—follow these steps:

(1) Engage with Customers: Start by speaking to customers and researching their buying habits. If, on average, customers express dissatisfaction for any reason or feel compelled to step outside their comfort zones at certain touchpoints, this is a clear indicator of potential for transformation.

(2) Analyze Competitors: Next, examine the business models and offerings of competitors. If these models look alike or are too similar, this can signal a lack of innovation and an opportunity for change.

(3) Evaluate Monetary Value Capture: Lastly, investigate the portion of monetary value being captured by vendors or substitute providers. If this capture is relatively high, it serves as a strong indicator that there may be room for transformation in the market.

These are good steps to start the investigation, but there are other factors to be considered as well.