As we approach 2025, global economic challenges persist, with growth projections remaining modest and some even predicting a third consecutive year of mild recession. Across Germany, businesses in core industries are feeling the pressure of high interest rates, waning consumer demand and market volatility. In response, many firms are turning inward, prioritizing operational efficiencies over expansion. Yet, a focus solely on cost-cutting and efficiency poses deeper challenges for business leaders: how to sustain employee motivation and engagement, preserve hard-won progress and lay a solid foundation for a return to or even new versions of growth.

To guide your organization back to a growth track in 2025, here are five essential strategies: 

1. Re-Set Your Narrative With an Updated Story of Value

Challenging times can send out mixed signals – both internally and externally. Now more than ever, organizations need a unifying narrative that resonates deeply with employees and offers customers a clear, differentiated value. Especially in today’s recessionary climate, as we’re currently seeing in Germany, articulating your value in a way that is authentic and optimistic is essential.  

“When top employees and valued customers feel a compelling sense of purpose, engagement rises.”

When top employees and valued customers feel a compelling sense of purpose, engagement rises. Prophet’s new leadership tool, The Story of Value, brings tangible and intangible business assets into a distinctive and inspiring narrative. It crystallizes the unique value the business offers to shareholders, customers and employees. It simplifies a complex business into a compelling statement of value, creating a common language that inspires executives and employees internally while resonating with the market externally. 

2. Unlock the Moves that Propel Impact 

Now is the time for pragmatic innovation. In any business, there are actionable moves that can drive significant, measurable impact – whether by challenging a competitor or seizing a gap in the market. Identify actionable strategies based on customer needs and market opportunities that can be measured, optimized and scaled. Here are some examples of growth-oriented moves:  

• Vision: Formulate a clear and reachable north star that every team member can rally around. Articulate the positive impact for individuals, the organization and society.  
• Portfolio: Optimize your product portfolio for efficiencies.  
• Marketing: Tap into new segments or double-down on loyalty with your most profitable audiences. 
• Distribution: Test new routes to market, like direct-to-consumer models.  
• Operations: Streamline processes and refine operational models.  
• Talent: Foster mentorship between experienced employees and new hires in key areas like generative AI. Mentors provide guidance, while mentees bring fresh perspectives, benefiting both parties and building motivation through shared growth. 

3. Nurture Your Leadership and Team Collaboration  

Leadership teams, much like individuals, are dynamic ecosystems that require constant nurturing. Our proven method surfaces hidden challenges and fears, enabling leaders to address these openly and build a strong foundation of trust. This trust is essential for cultivating a high-performing leadership team unified by shared goals. 

Our annual Catalysts research shows that successful transformations hinge on genuine collaboration, where enterprise and individual goals are seamlessly integrated. High-functioning teams that shift from a siloed mindset to a team-oriented approach foster mutual accountability and alignment while also benefiting customers and the bottom line. 

The basis for this work is Prophet’s Human-Centered Transformation Model (HCTM), a comprehensive, people-centered approach designed to fuel growth across the organization. It’s built on the premise that organizations, like people, consist of interconnected elements: DNA, mind, body and soul. 

For leadership teams to thrive, they should follow a similar model where trust, collaboration and a shared sense of purpose are cultivated to drive meaningful outcomes.  The Human-Centered Leadership Team Effectiveness Model emphasizes that addressing all dimensions of the human system is crucial to unlocking potential and achieving impactful, sustained outcomes. 

4. Invest in Your Brand – Inside and Out 

In challenging economies, the power of a strong brand becomes ever more evident, underscoring the critical need to invest in it for continued growth. Yet, this imperative often isn’t fully recognized across the executive team. Without broad leadership commitment to brand investment as a strategic priority, efforts to secure and sustain resources can encounter resistance, limiting the brand’s potential impact on overall business outcomes. Market experience and research consistently show that established brands tend to grow market share in down economies, as customers seek reliability and stability. For instance, brands that increased their share of voice during the 2008 recession grew market share 4.5 times faster than those that did not. Investing in your brand drives business value through three key lenses: 

• Revenue and margin: A strong brand enhances customer choice, loyalty and price premium.  
• Valuation: Brand equity bolsters enterprise value and shareholder return. 
• Talent attraction: A reputable brand strengthens the talent pipeline and reduces talent acquisition costs. 

5. Implement an Agile Change Management Strategy  

Returning to growth demands a robust, people-centered change management strategy that addresses both the cognitive and emotional dimensions of the team. Leaders need to be equipped to guide teams through the complexities of change, dealing with underlying thoughts and feelings to build trust, resilience and alignment.   

To be effective, change management requires a holistic approach that considers multiple dimensions. Define clear actions within each area to maintain a comprehensive focus, rather than concentrating on just one or two aspects. Navigating transformation is complex and demands a balanced strategy that meets organizational needs while empowering the people driving them. Skillful coordination is essential. Bringing in an experienced partner like Prophet, who excels in orchestrating comprehensive change initiatives can be invaluable in helping your organization thrive in today’s challenging business environment. 

Businesses are increasingly investing in digital solutions to meet rising customer expectations and drive growth. According to a study by McKinsey, over 65% of executives say their companies have increased spending on digital initiatives due to customer demand. Additionally, Gartner reports that 56% of CEOs view digital improvements as a top priority for driving revenue growth, underscoring the strategic importance of digital transformation. Yet, despite these investments, many organizations struggle to achieve the digital transformation they envision. Why? The problem often lies in the approach itself. Here are the most common pitfalls holding organizations back and how they impact the company’s ability to drive sustained growth—along with strategic shifts that can make a difference.

1. No Leadership-Level Vision, Product Ownership or Roadmap 

The lack of a clear vision and leadership buy-in can result in a reactive approach. Especially in sales-driven B2B companies, digital tools are often developed to address a single customer or account’s needs. Without a dedicated product owner or roadmap, development teams become consumed by short-term requests instead of working towards a strategic vision. This reactive approach leads to over-customization, technical debt and inflated budgets, which often produce low value for both the customer and the business. 

A digital strategy without a strong leadership vision can never become a catalyst for growth. To build and maintain buy-in, leadership must see digital transformation as integral to their overall growth agenda — not just an IT initiative but a central driver of efficiency, customer experience and new revenue streams. 

How this impedes growth: Without a clear digital vision, companies fail to differentiate themselves in the market, struggle with scalability and often miss out on new revenue opportunities. The result is stagnation in key growth metrics like customer acquisition, revenue and market penetration. 

Making the strategic shift: Successful digital transformations start at the top. It’s critical that leadership articulates a digital vision that aligns with the company’s overarching business strategy. This means moving beyond one-off digital projects to embedding digital as a core driver of the company’s growth. Clear product ownership is essential, ensuring that there is accountability for steering the digital direction and maintaining focus on long-term goals. A well-defined digital roadmap with a focus on scalability, innovation and customer value provides the necessary guidance to stay on course amidst competing priorities. 

2. Have a “Build It and They Will Come” Mentality 

There’s a persistent myth that launching a new digital tool or platform will instantly bring success. The truth is technology alone isn’t a silver bullet. Merely investing in a platform without understanding its role in your business strategy leads to wasted resources. Successful digital products require a deep understanding of customer needs and the flexibility to adapt as those needs evolve. They also need a strategy for driving adoption, both internally and with customers. 

When companies fail to integrate their digital efforts with their broader growth strategy, they miss opportunities to enhance customer engagement and increase market share. A poorly adopted tool becomes a sunk cost, diverting attention and resources away from other strategic growth initiatives. 

How this impedes growth: An underutilized digital product fails to generate the expected return on investment, resulting in lost revenue opportunities. It also undermines customer confidence, impacting long-term customer loyalty and retention. 

Making the strategic shift: Businesses must move beyond the “build it and they will come” mindset to a more holistic and customer-centric approach. This involves understanding not just what customers want, but how digital capabilities fit into the broader customer journey. Design thinking can play a pivotal role, driving companies to prototype, test and iterate digital solutions in close alignment with customer needs. Moreover, digital initiatives should be tied to measurable business outcomes. Aligning digital tools with KPIs such as customer acquisition, engagement rates or sales growth can ensure that investments are not just technically sound but also commercially viable. 

3. No Planned Funding Beyond Product Launch 

Launching a digital product is just the beginning, not the end. Yet, many businesses fail to plan for ongoing funding to support post-launch iterations, updates and user engagement. This lack of continuous investment can make even the best-designed product quickly obsolete. In fact, studies show that 70% of digital transformations fail, often due to short-sighted budgeting and underestimating the need for sustained investments post-launch (Boston Consulting Group, 2020). 

A lack of post-launch funding stifles innovation and prevents companies from responding to market changes. Digital platforms must evolve to keep pace with shifting customer expectations and technological advancements. Without a commitment to continuous investment, companies can’t capitalize on growth opportunities that arise from an agile and evolving digital strategy. 

How this impedes growth: A stagnant digital product reduces competitiveness and limits revenue expansion. Companies that don’t invest in product evolution will likely face declining engagement and lower profitability over time. 

Making the strategic shift: To truly leverage digital as a growth driver, companies must adopt a mindset of continuous evolution. Digital products should be viewed as living assets that require ongoing investment, iteration and optimization. Budgeting should reflect a commitment to long-term value creation, not just initial product launches. Agile methodologies, which emphasize iterative development and rapid response to change, can help companies adapt to evolving market demands. Measuring ROI should also be dynamic—regularly assess the impact of digital tools on customer behavior, market trends and competitive positioning to make informed decisions about future investments. 

4. Over-Customization of Tools vs. Keeping a Clean Core 

Customization can be a double-edged sword. Over-customizing platforms can create technical debt and complexity, making future updates costly and time-consuming. Instead, organizations should focus on maintaining a “Clean Core” — using standardized solutions for non-differentiating functions and investing in tailored solutions only for areas that offer a competitive edge. 

Customization may seem appealing in the short-term, especially to meet specific customer demands, but it often becomes a barrier to scalability. Over-customized solutions can bog down innovation and limit the agility needed to support a broader growth strategy. Companies need to prioritize their unique differentiators, focusing customization efforts on what will drive revenue and competitive advantage. 

How this impedes growth: Over-customization drains resources and makes scaling digital solutions difficult, hindering the ability to drive rapid growth. It leads to inefficiency, making it harder to adapt to market demands and ultimately reduces the speed at which a company can capitalize on new opportunities. 

Making the strategic shift: Businesses need to adopt a strategic approach to customization—focusing only on what truly sets them apart. A “Clean Core” philosophy means standardizing non-differentiating elements to minimize complexity while concentrating custom efforts where they matter most for strategic growth. This approach not only accelerates time-to-market but also allows for greater flexibility in adopting new technologies. Companies that embrace a modular architecture can scale faster, reduce technical debt and be more agile in responding to new opportunities, ultimately driving sustainable growth. 

5. Lack of Data Governance/Data Architecture That Fuels Strategy 

Data is the backbone of any digital initiative but without a solid data governance framework, it’s hard to turn data into actionable insights. Effective data architecture not only ensures data accuracy but also enables faster, more informed decisions. Lack of governance leads to data silos, poor data quality and an inability to fully leverage analytics and AI-driven insights. According to a Gartner report, 87% of organizations have low business intelligence and analytics maturity, largely due to weak data governance frameworks. 

Data-driven insights are crucial for identifying growth opportunities, optimizing operations and personalizing customer experiences. Without a clear strategy for managing and utilizing data, companies miss critical opportunities to refine their value propositions, improve customer targeting and drive revenue. 

How this impedes growth: Poor data governance leads to inaccurate analytics, inhibiting a company’s ability to make strategic decisions that drive growth. This can result in misaligned sales efforts, missed customer opportunities and suboptimal product development. 

Making the strategic shift: To truly harness the power of data for growth, companies need to invest in robust data governance and architecture. This means establishing a single source of truth for data, implementing governance policies that ensure data quality and creating frameworks that facilitate the integration of analytics across the business. Embracing AI and advanced analytics should be a priority, but it requires a solid data foundation. Organizations that can turn data into actionable insights will gain a competitive advantage, driving better customer experiences, operational efficiencies and new revenue streams. 

A Case in Best Practices 

A Prophet client in the parts manufacturing and distribution industry spent 15 weeks defining its digital strategy, roadmap and business case before launching a minimum viable product (MVP) to a subset of customers, with the CEO as the executive sponsor. The strategy focused on the desirability, viability and feasibility of the solution and included a three-year roadmap with stage-gate check-ins to ensure progress. 

Customer service representatives were trained to support new tools and traffic-driving tactics were embedded in the investment plan. As the platform expanded to different business areas, customizations were only adopted if they aligned with the broader strategy. A focus on streamlining data and reducing complexity minimized integration challenges. 

This thorough approach is paying off, with increasing adoption driving cost savings and new revenue growth in emerging market segments. 

Digital platforms such as Amazon, Uber and Netflix have reshaped industries, seamlessly connecting businesses and consumers, while leveraging data and technology to deliver personalized experiences that redefine modern commerce and entertainment. The success of platforms highlights the transformative power of digital ecosystems in fostering innovation while driving sustainable growth. 

“Winning Through Platforms: How to Succeed When Every Competitor Has One,” a best-selling book by Ted Moser, a senior partner at Prophet, highlights the essential role of digital platforms in achieving business success in the modern age across industries. The book serves as a playbook by diving into the different types of platforms as business models while decoding growth moves from a decade of platform competition. 

This framework guides companies to leverage platforms for brand relevance, customer value growth and efficient customer acquisition. 

Rapid Digitalization of Economies and Shift in Consumer Behavior 

Asia, especially Southeast Asia, is experiencing rapid digitalization and reliance on online platforms fuelled by a multitude of factors – the COVID-19 pandemic, internet penetration, a burgeoning middle class and supportive government policies. This shift prompted digital transformations across businesses, leading to a boom of digital marketplaces and services such as Shopify, Grab and Lazada.

Meanwhile, companies are heavily investing in strategies to create and meet demand across the entire customer journey. Companies focus on Demand Plays and Transformation Plays to meet evolving consumer needs and transition traditional businesses into digital domains. 

Temu: Aggressive User Acquisition Through Demand Plays 

Temu, a brand of China’s Pinduoduo, entered the global markets in 2022. It has quickly disrupted the status quo of the global e-commerce landscape, becoming the No. 1 shopping app on Apple’s App Store, surpassing Amazon, Target, Walmart and SHEIN. Temu’s success is made possible by its unparalleled demand-gen capabilities. Through the campaign “Shopping like a billionaire,” Temu offers a clear yet differentiating value proposition of providing cheap and accessible products for everyone. Beyond a clear brand message, Temu employs a comprehensive demand–gen strategy, from agile supply chain, data-driven user analytics, to aggressive marketing campaigns and pricing schemes, as well as savvy digital marketing and user acquisition tactics. 

Huawei: Leading at the Frontier Through Transformation Plays 

Huawei stands out as a prime example of strategic innovation in action. Initially recognized as a B2B telecom leader, the company seized the opportunity to diversify into B2C markets by introducing smartphones renowned for their cutting-edge camera technology. This transformation underscores Huawei’s unwavering commitment to innovation, as evidenced by the staggering investment of over 11 billion RMB in R&D over the past decade. Amid U.S. sanctions, Huawei demonstrated agility by strengthening its own HarmonyOS operating system. Recently, Huawei entered the electric vehicle (EV) sector by launching startup EV brands AITO and LUXEED in collaboration with automotive players Seres and Chery, respectively. These EV models integrate HarmonyOS for Automotive, seamlessly synchronizing with Huawei’s mobile operating system to deliver a cohesive user experience. This integration reflects Huawei’s vision of creating an ecosystem centred around HarmonyOS, extending its influence beyond telecom. By leveraging its technological prowess and strategic partnerships, Huawei has embarked on a transformation journey to shape the future of multiple industries, cementing its position as a global leader in the ever-evolving landscape of technology and innovation. 

Need for Innovative Solutions in Competitive Markets 

E-commerce, fintech, AI, and IoT have become some of the most disruptive technologies for traditional business models, where a holistic platform strategy plays a major role. In Asia, a fast-growing consumer market that’s largely digital – and mobile first – this is especially the case. Leveraging these technologies to develop their own platform through digital transformation while taking a customer-centric approach now becomes a key challenge for traditional companies. To adapt and futureproof, the most resilient companies are often agile in prioritizing innovation efforts. Prophet’s recent research on how innovation builds resilience revealed that 35% of the respondents in China and Singapore have formal innovation incubation programs, compared to only 15% of the respondents in the U.S. and the UK. 

Consequently, companies are channelling resources into the development of innovative platform features and services, leveraging Innovation Plays to continuously provide new and distinctive platform benefits for a competitive edge. Moreover, businesses strategically explore Portfolio Plays to diversify roles within the platform ecosystem, emphasizing continuous innovation across product development, market approach, and customer engagement strategies. 

Grab: Achieving Impactful Growth Through Innovation Plays 

Grab serves as a standout example of a platform business that maintains sustainable growth by bringing ongoing innovations to market. Originating as a ride-hailing service, Grab expanded into a super-app business, the “Everyday Everything App,” offering new products and benefits including food delivery, digital payments, and financial services. This strategic shift capitalized on Grab’s extensive user base and diversified revenue streams. Additionally, Grab deployed collaborative go-to-market strategies, by partnering with local governments and financial institutions, to extend its reach and tailor offerings to specific regional markets. To deepen its connection with a wide array of customers, partners and stakeholders, Grab has also further defined its company mission – to drive Southeast Asia forward by creating economic empowerment for everyone – while continuously implementing various ESG initiatives. 

Nike: Connecting with Evolving Customers Through Portfolio Plays 

Nike exemplifies effective portfolio diversification, transforming from product innovator to a digital marketplace leader. Nike integrates digital platforms with physical retail, offers market-specific mobile apps, and engages users through customized experiences and robust digital ecosystems. Through digital platforms like Nike Training Club and Nike Run Club as well as offline community activities, Nike engages with users beyond transactions. This platform-driven strategy not only solidifies Nike’s leadership in leveraging digital platforms for growth, but also resonates exceptionally well in the diverse and unique markets across Asia, where tailored experiences and integrated digital solutions are increasingly sought after.  

Regulatory and Cultural Diversity of the Region 

Asia’s diverse regulatory and cultural landscape poses unique challenges for platform businesses. With varying regulatory frameworks, cultures, languages and economies, consumer behaviors and preferences can differ vastly across different Asian countries. This complexity significantly impacts how companies approach market entry and expansion, where adapting their business models and marketing strategies to different regulatory and cultural contexts becomes pivotal. 

To effectively navigate these intricacies, companies employ Design Plays to develop differentiated value propositions that align with local preferences and cultural sensitivities. Meanwhile, companies should also tailor O+O customer experiences to different Asian customers through Interaction Plays, to enhance engagement and foster brand loyalty. 

IKEA: Mastering Localization Through Design Plays 

IKEA’s entry and expansion in China is a textbook example of a strategic design play, reflecting a deep understanding of local preferences and behaviors. Going beyond furniture sales, IKEA adapted its business model to overcome unique market challenges and fit the Chinese lifestyle. Product designs were adjusted for smaller living spaces, which was a shift from its offerings in European markets. As part of its location strategy and with the support from an extensive logistics network tailored to China’s infrastructure challenges, IKEA placed its stores nearer to city centers with easy public transport access, catering to most Chinese consumers who are less likely to own cars. Furthermore, by quickly embracing digital transformation, IKEA offered online shopping, home delivery services and popular payment options like Alipay and WeChat Pay, exceeding Chinese consumer expectations for retail convenience. 

Lululemon: Building a Loyal Community Through Interaction Plays 

Lululemon’s approach in Asia exemplifies a successful full-journey engagement, seamlessly integrating online and offline experiences, offering personalized assistance, and fostering community experiences. Through dynamic segmentation, Lululemon tailors offerings to diverse Asian audiences, driving conversions with personalized recommendations and localized content. Lululemon also adopts an agile content strategy, featuring regional influencers and traditional Asian wellness practices. It leverages user-generated content, including customer testimonials and photos, to foster authenticity and engagement. This customer-centric approach has strengthened brand loyalty and deepened the connection with customers in Asia. 

Reimagine Your Business Strategy with the Platform Mindset 

From Huawei’s transformative journey to Grab’s and Lululemon’s innovative strategies, these best practices exemplify how companies are leveraging platform plays to navigate Asia’s diverse market dynamics and evolving consumer needs. 

Whether your organization is already a platform business or not, adopting a strategic platform mindset is essential for companies to stay competitive today. From developing a comprehensive platform strategy to evolving existing capabilities, the six Platform Plays illustrated in “Winning Through Platforms” provide essential insights that inform actionable next steps for a futureproof growth strategy: 

1. Assess your current capabilities and needs to determine the most suitable platform strategy.  Understand which role your platform can play within your business portfolio and select the one that aligns with your strategic goals.  
2. Consider developing a comprehensive platform strategy that goes across all aspects of the organization. This involves clarifying how the optimal platform role aligns with the company’s strategic objectives to maximize differentiation and growth. Leaders must also identify the strategic implications of what must change in the business.
3. Build an internal case for change and digital transformation while designing a transformation vision and roadmap. This includes the internal moves that need to be made from an organizational perspective, including structure, culture, processes, and capabilities.  
4. For mature companies who have already found success in platforms, find opportunities to evolve your current platform strategy. Revisit customer experience strategies to deepen engagement and conversion; adopt more complex platform roles to drive deeper integration into the business; or harness the power of data and AI capabilities to refine and extend your ecosystems to new, differentiated offerings.