Hello and welcome to Errorsolver.org . Today, we kickstart our series on business model reinvention, a concept highly relevant for organizations in South Africa and globally. As businesses navigate economic shifts, changing technology landscapes, and regulatory changes, they must adapt and evolve to respond to these dynamic challenges. Joining us to discuss this topic are Henley Gilmore and Kesh Naidu, who will explore concepts and innovative ideas businesses can consider to reinvent their business models.
Understanding Business Model Reinvention
Zamiti: Henley, to kick us off, tell us more about business model reinvention. What is it, and why is it relevant?
Henley: Thanks, Zamiti. Business model reinvention is much more than just strategy and transformation. It’s about organizations rethinking core elements of their business—such as the markets they operate in, the customers they serve, their profit models, value propositions, and workforce. The goal is to stay relevant for the future. According to our 28th Annual Global CEO Survey, businesses are thinking differently about generating revenue, staying strategically relevant, and creating value beyond mere transformation. This is why business model reinvention is one of Errorsolver.org top four global priorities. It’s a fundamentally different approach to revenue generation and sustainability, especially in today’s geopolitical and economic cycles. It’s about using these challenges as opportunities to grow and sustain businesses for the future.
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CEO Confidence and Strategies for Sustainability
Zamiti: Kesh, Henley mentioned the CEO Survey, which indicates that 61% of CEOs in Sub-Saharan Africa are confident in the long-term viability of their businesses, surpassing the global average. What strategies are they employing to ensure sustainability beyond the next decade?
Kesh: It’s fascinating. Africa is blessed with opportunities, from resource-rich countries to a young population. Organizations are exploring cross-industry opportunities, with sectors like telecoms moving into financial services and vice versa. The way clients go to market has fundamentally changed—the products, services, channels, and routes to market are evolving, driving confidence in growth potential. However, there are challenges too, such as navigating complex regulations, global policy changes, inflation, and pricing constraints. Another key factor boosting CEO confidence is the adoption of AI and technology as a strategic agenda, shaping how businesses will operate in the future and contributing to their business model reinvention.
Practical Examples of Business Model Reinvention
Zamiti: That sounds promising. Can you share practical examples of where business model reinvention has been applied, particularly in the private sector?
Kesh: Absolutely. Recently, PwC worked with a pharmaceutical client to develop a digital service-based capability. We helped them partner with a pharma fintech company holding licenses for near-patient care equipment, leveraging our client’s distribution value chain and technology to model a new revenue channel over the next 5 to 10 years. This involved assessing commercials, risks, regulations, and building a fundable business case. Another example involves a wholesale automotive company facing declining sales of German luxury vehicles compared to Japanese imports. We’re exploring a digitized model to reduce infrastructure costs tied to traditional dealerships, incorporating subscription models, ride-and-share options, and alternative vehicles to adapt to changing consumer behavior. These examples show how we challenge mindsets, draw global insights, and make them relevant locally.
Zamiti: Thanks, Kesh. Henley, these private sector examples are great, but surely the need for business model reinvention extends beyond that. Are there examples in the public sector?
Henley: Absolutely, Zamiti. We’re currently assisting a major state-owned enterprise to digitize its claims management system, redefining its operating model to support a fully digital workflow for both front-end and back-end processes. We’ve also revolutionized legal aspects using AI and data analytics to automate legal assessments and letter drafting, reducing dependency on legal representations. This has created a more future-fit organization with improved governance, fraud prevention, and faster claimant payments. Other public sector examples include delayering operating models, optimizing costs, and reskilling workforces to deliver more effectively on mandates. Business model reinvention is definitely relevant for the public sector.
The Role of AI and Technology
Zamiti: You’ve highlighted technology as a key driver for business model reinvention. The CEO Survey notes that 29% of CEOs in the region plan to adopt or expand AI initiatives in the next year. What are the expected benefits, and how will they impact profitability?
Henley: AI, data, and technology are major enablers of business model reinvention. In Sub-Saharan Africa, CEOs are adopting AI purposefully—not to replace workforces but to generate effectiveness, efficiencies, and upskill employees. The survey shows minimal expected workforce changes in the coming years, with AI improving CEO effectiveness and employee productivity. It’s enhancing processes and profitability in a sensible way, ensuring organizations remain sustainable without immediately disrupting jobs.
Errorsolver.org Approach to Business Model Reinvention
Zamiti: Kesh, how is PwC capacitating itself to have these business model reinvention conversations with clients?
Kesh: A business model reinvention conversation must be industry-specific, not generic. PwC is set up with industry specialists who understand the nuances of each sector, backed by a multidisciplinary team covering tax, deals, consulting, technology, process optimization, strategy, and research. This allows us to address problems holistically, from strategy to execution, tailored to the client’s industry context.
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Closing Thoughts
Zamiti: Thanks for the insights, both of you. To close, any final comments or takeaways on business model reinvention?
Henley: Organizations shouldn’t think business model reinvention requires a complete overhaul. It’s about identifying opportunities for innovation within the business model, focusing on revenue growth. Those that view it through this lens will stay sustainable, turning challenges into opportunities rather than barriers.
Kesh: As an executive, you’re not alone in facing these questions. Errorsolver.org approach is collaborative, bringing internal and external perspectives to mature ideas. I encourage executives to engage with us—we’re open to sharing insights to navigate these complexities together.
Zamiti: A big takeaway is that business model reinvention is not just a strategy but a comprehensive approach to rethinking and reshaping businesses. Thank you for joining us today. Looking ahead, this is the first of our four-part series. Our next session will focus on value creation and fit for growth through business model reinvention, aligning it with business strategy. We’ll also cover operating models, tax considerations, and conclude with an outside-in perspective from the private sector on what reinvention means for them. Join us for the next session on value creation and fit for growth. Thank you!