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  "documentTitle": "Make the leap, take the lead: Tech strategies for innovation and growth",
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      "text": "the same ratio is now 5x, indicating that the revenue growth premium for Leaders has increased further during the pandemic.",
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      "text": "Step 3: IT budget flip and the Leapfroggers advantage",
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      "text": "We defined Flip Size, the growth of IT budget allocation towards innovation between 2019 and 2020, as a key determinant of revenue growth during the pandemic. For sake of economic modelling only, we categorized companies into Flippers, those who maintain a high Flip Size (above 90th percentile) in 2020; or, those who show growth in Flip Size in 2020.",
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      "text": "We found that before the pandemic, the revenue growth for Flippers and Others was statistically not different. During the pandemic, flipping at and beyond the 30th percentile of Systems Strength is associated with revenue growth that is equal to or higher than the revenue growth compared to Leaders. Based on these results, we defined all flippers above the 30th percentile of Systems Strength as Leapfroggers.",
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      "text": "where i is the index for companies, the index j for Category identifies whether a company is a Leader, Laggard or a Flipper; COVID indicates the year 2020 or the time during the pandemic; Xk is the vector of controls such as industry dummies, year dummies, and company size measured by revenue.",
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      "text": "To build the scenario, we utilized responses on a question from the survey that asks executives when they expect to return to pre-pandemic revenue growth, and assumed the 5-year CAGR (2015-2019) as the pre-pandemic revenue growth levels companies are returning to. We assumed a linear interpolation of revenue growth rates for the transition period between 2020 and whenever executives expect to resume growth.",
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      "text": "Using the group definitions above, we compared financial performance, measured by average revenue growth, and calculated the difference in performance between various groups. More precisely, to look at how the premium in revenue growth has changed for Leaders compared to Laggards, we computed the 3-year CAGR in revenue growth for years 2018, 2019, and 2020. While the ratio of revenue growth between Leaders and Laggards was 2x in our first study, the same ratio is now 5x, indicating that the revenue growth premium for Leaders has increased further during the pandemic.",
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      "text": "Finally, we built scenarios for revenue growth to consider the opportunity cost for Laggards and Others of not building on their Systems Strength or not accelerating their Flip Size. To do so, we first assumed that at the beginning of 2015, a representative company from each group started with the same revenue level of $10 Billion. We used the most recent realized values of revenue growth for time periods between 2015 and 2020.",
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      "text": "Revenue Growth = Σj=1β1,jCategoryij + β2Covid + Σj=1β3,jCovid * Categoryij + Σk=1βkXik + εi",
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