Industry incumbents proud of their past performances, need not be so sanguine about the future-proofing efforts of their work. This is because digitalization at work has led to established firms getting vulnerable to the rising tide. Such companies with declining vitality need to regenerate themselves in order to grow sustainably. That is why the Fortune magazine has created the Fortune Future Index to assess the long-term growth of US-listed companies. This table is based around two principles which are- potential and the capacity to deliver potential. Potential factors in the Present Value of Growth Options (POGO), while fourteen independent factors make up the capacity to deliver this potential. Extensive use of non-financial business analytics has been made in order to gauge this index. This index is further split into two categories which are the Leaders and their Challengers. Majority of the leaders have been observed in healthcare and technology. The US west coast has the maximum of such companies. These companies have performed extremely well in recent times, being listed on both the Fortune as well as S&P lists.

Source:https://www.bcg.com/publications/2017/strategy-strategic-planning-measuring-managing-corporate-vitality.aspx?linkId=46182712

Uploaded Date:27 February 2018