Rewriting the BCG Matrix for the Age of AI and Asset-Light Models

The BCG Matrix was revolutionary in its day: simple, visual, strategic. But it's struggling to explain modern businesses.

Today, a business can be low-growth and wildly profitable (think SaaS maintenance contracts), or high-growth and asset-light (think marketplaces, AI tools). Market share often matters less than ecosystem access. And "cash cows" can live in niche verticals rather than mass markets.

So how should executives segment their portfolios now? Start with newer variables: data ownership, recurring revenue, platform dependence, API surface area. Measure your business units not just by revenue and market share, but by control of the value chain, defensibility, and optionality.

3 Executive Takeaways:

• Rethink what constitutes a "star" in your portfolio.

• Prioritise data-rich, sticky, adaptable businesses.

• Use updated metrics: LTV, retention, virality, API integrations.