The Industrial Gas Business Leader Move 2030 is a strategic initiative aimed at achieving long-term sustained Return on Invested Capital (ROIC) of 15%. In order to reach this ambitious goal, it is essential for industrial gas companies to adopt innovative and effective strategies that can drive growth and profitability in the coming years.
One of the key strategies that can help industrial gas companies achieve long-term sustained ROIC of 15% is the Open Innovation Model. This model involves collaborating with external partners, such as suppliers, customers, and research institutions, to co-create new products and services. By leveraging the expertise and resources of external partners, industrial gas companies can accelerate innovation, reduce time-to-market, and gain a competitive edge in the market.
Another effective strategy is the Subscription Based Revenue Model. This model involves offering customers a subscription-based pricing structure for industrial gas products and services. By providing customers with a predictable and recurring revenue stream, industrial gas companies can improve cash flow, enhance customer loyalty, and drive long-term profitability.
The Sustainability Partnership Model is also a powerful strategy that can help industrial gas companies achieve long-term sustained ROIC of 15%. This model involves forming partnerships with customers, suppliers, and other stakeholders to promote sustainable practices and reduce environmental impact. By aligning business goals with sustainability objectives, industrial gas companies can enhance brand reputation, attract environmentally-conscious customers, and create long-term value for shareholders.
Best Practice Business Models from High ROIC Industries
When looking at best practice examples of high ROIC industries, companies like Apple, Johnson & Johnson, and Procter & Gamble stand out for their breakthrough business models.
Apple’s success lies in its ecosystem approach, where hardware, software, and services are seamlessly integrated to create a unique customer experience.
Johnson & Johnson’s diversified portfolio of healthcare products and services has enabled the company to weather market fluctuations and deliver consistent returns to shareholders.
Innocentive‘ the open innovation and crowd sourcing platform focus on collaborating with innovation experts in R&D on his open innovation marketplace Innocentive , generating a ROIC of more than 100%
In conclusion, achieving long-term sustained ROIC of 15% in the industrial gas sector requires a combination of innovative strategies and best practices from high ROIC industries. By embracing breakthrough business models such as Open Innovation, Subscription Based Revenue, and Sustainability Partnerships, industrial gas companies can drive growth, profitability, and value creation in the years ahead. It is essential for industry leaders to learn from successful companies like Apple, Johnson & Johnson, and Procter & Gamble in order to stay ahead of the curve and achieve their financial goals.
To get started on this journey towards long-term sustained ROIC of 15%, industrial gas companies should prioritize innovation, collaboration, sustainability, and customer-centricity in their business strategies. By taking proactive steps to implement these strategies effectively, industry leaders can position themselves for success in the rapidly evolving marketplace of 2030.