2:01

85% of those surveyed in PwC's most

2:03

recent global CEO survey said their company

2:05

won't be viable in 10 years if

2:07

they stick to the current plan. What

2:10

could the world look like in 2044? With

2:13

climate change, fast-moving technology like

2:16

AI, fragmented geopolitics,

2:18

who knows? How

2:20

do the business leaders of today reinvent

2:23

all of the aim of keeping their companies

2:26

successful well into the future?

2:28

To help us work it out,

2:30

we'll be talking to economist and

2:32

author Daniel Siskind about the role

2:34

new ideas play in economic growth.

2:37

But first, to help us really

2:39

understand the business implications of an

2:41

ever-shifting marketplace, we're joined by Matthew

2:43

Duffy, PwC's global business model reinvention

2:45

leader. Hi there, Matthew. Hey,

2:48

Fermi. Great to be with you. It's good

2:50

to have you. So you talk with business leaders

2:52

all of the time. What is

2:54

on the top of their mind for

2:56

them regarding a world that is constantly

2:59

changing? What are they always worried about?

3:01

Yeah, I think they're always worried about some

3:04

of those things you just referenced, the megatrends,

3:06

climate change, societal fracturing,

3:08

technology disruption, regulatory

3:10

changes, cybersecurity threats.

3:13

But I think what's really driving them now is

3:16

that the fact that those trends are coming at them

3:18

a lot faster. And I

3:20

think it leads to that sentiment that Lizzie shared

3:23

earlier, which was the four in 10 CEOs

3:25

think that their business model's not

3:27

going to be valid in the next 10 years. So

3:30

thinking about future-proofing your business,

3:33

how can leaders start to do that when

3:35

they don't really know what tomorrow looks like,

3:38

let alone the next 10 years? It's

3:40

about making the choices, but then also having the

3:42

conviction to stick with those

3:45

choices and make those bets long enough to

3:47

see the payback. So nobody

3:49

can predict what's going to

3:51

happen in the next decade. But

3:53

I think the one thing that we can all agree on is

3:56

doing what you've done for the past 10 years is not going to

3:59

be a problem. not going to work

4:01

going forward. And so for

4:03

us, it's all about truly embracing

4:05

business model reinvention. Do we

4:07

have all the right answers? Do we know

4:09

exactly how things are going to play out in the next 10

4:11

years? No. But you've got to start doing something. Or

4:14

I think you do risk being one of

4:16

those companies that you referenced at the beginning,

4:18

Femi, being half the Fortune 500 has been

4:21

disrupted in the past 24 years. Oh,

4:23

you've given us so much to chew

4:25

over already, Matt. And we are going

4:28

to hear about how business leaders could

4:30

reinvent to create new value when we

4:32

come back to you. But before we

4:34

do that, let's focus on new ideas.

4:36

They're an integral part of change. And could

4:38

they be the key to ultimate growth for

4:41

the next 20 years? Which

4:43

is a very tough question to answer. And

4:45

that's why I spoke to Daniel Siskind. He's

4:48

a professor at King's College London

4:50

and senior research associate at Oxford

4:52

University and the author of Growth,

4:54

a Reckoning. And I began

4:56

by asking him about where the idea of

4:59

economic growth came from in the first place.

5:05

Before the 1950s, almost no policymakers, politicians, economists,

5:12

anyone really, was talking about the

5:14

idea of economic growth.

5:17

Even if the thought had occurred to people before the 1950s

5:21

that they wanted to pursue economic

5:23

growth, it would have

5:25

been almost practically impossible to do

5:27

so. So the first reliable

5:30

measure of how big the economy

5:32

actually is, is only invented in

5:34

the early 1940s, what's known

5:36

as gross national product in the 1940s, and

5:38

then becomes known as gross domestic product as late

5:40

as the 1990s. I

5:42

think it's quite important just to keep in mind,

5:44

it's a very modern, very

5:46

recent phenomena. Can you

5:48

talk about where growth has

5:51

been important to society? Where we

5:53

have, we, the very royal, we

5:55

have benefited from it. Growth is

5:57

associated with almost every measure.