40% of companies may leave the market due to the digital revolution
Many companies can leave the market, and the markets themselves can undergo conversion, according to experts of the Global Center for Digital Business Transformation (DBT Center). The center itself is a joint project of Cisco and the International Institute for Management Development (International Institute of Management Development, IMD), writes Adindex. A few days ago the organization published a report called Digital Whirl, or How the Digital Revolution is Reforming Industry (Digital Vortex: How Digital Disruption is Redefining Industries). The report was the first publication of the DBT Center. When working on the document, representatives of the organization interviewed 941 company managers from 12 industries in 13 countries (Australia, Brazil, Great Britain, Germany, India, Italy, Canada, China, Mexico, Russia, USA, France, Japan).
As it turned out, as a result of the digital revolution, each of the 12 industries in the next five years may lose 40% of the companies currently operating. At the same time, not all companies consider the current situation on the market a worthy discussion at the board of directors level.
“To survive and succeed in a new, digital economy, every country, every city and every business must become digital. The global center of digital business transformations, which inextricably links the digital revolution with education, will serve as a base where executives learn what, how and why they need to do for digitalization and the elementary survival of their organizations, ”says Martin McPhee, senior vice president of Cisco on consulting services.
Most respondents point out the positive impact of digital technologies on both the market and society. 75% of executives surveyed believe that the digital revolution is one form of progress. Another 72% indicated that digitalization is beneficial for the market, and 66% point out the empowerment of the individual in the digital age. However, 43% of respondents either do not see the risks that the digital revolution entails, or do not consider such risks as dangerous. Only a quarter of respondents indicated that they are pre-emptive to the digital revolution.
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The center has the highest potential for digital transformations in the next five years, according to specialists of the high-tech products and services industry. The top positions of such a rating are occupied by some other industries that are related to data processing. These are media, entertainment, telecommunications, financial markets and some other areas.
The main influence on the digital revolution is made by startups, which are rapidly changing under the influence of new technologies of the company, as well as the processes of integration of industries. In the next 5 years, according to respondents, significant changes will come under the influence of the digital revolution, including changes in market shares.
“It’s not only business models that are changing - the whole value chains and products offered are changing. Digitalization is not just changing the industry, it is increasingly blur the boundaries between them. As industries move closer to the center of the digital whirl, physical components are discarded, making it difficult to achieve competitive advantages. The most successful converters use, as we call it, “combinatorial transformations”, creating a fusion of various sources of value, such as cost, experience, platforms, to form new, revolutionary business models on this basis and to achieve exponential advantages, ”said Wade. (Michael Wade), director of the DBT Center and professor of innovation and strategies at IMD.
As it turned out, as a result of the digital revolution, each of the 12 industries in the next five years may lose 40% of the companies currently operating. At the same time, not all companies consider the current situation on the market a worthy discussion at the board of directors level.
“To survive and succeed in a new, digital economy, every country, every city and every business must become digital. The global center of digital business transformations, which inextricably links the digital revolution with education, will serve as a base where executives learn what, how and why they need to do for digitalization and the elementary survival of their organizations, ”says Martin McPhee, senior vice president of Cisco on consulting services.
Most respondents point out the positive impact of digital technologies on both the market and society. 75% of executives surveyed believe that the digital revolution is one form of progress. Another 72% indicated that digitalization is beneficial for the market, and 66% point out the empowerment of the individual in the digital age. However, 43% of respondents either do not see the risks that the digital revolution entails, or do not consider such risks as dangerous. Only a quarter of respondents indicated that they are pre-emptive to the digital revolution.
')
The center has the highest potential for digital transformations in the next five years, according to specialists of the high-tech products and services industry. The top positions of such a rating are occupied by some other industries that are related to data processing. These are media, entertainment, telecommunications, financial markets and some other areas.
The main influence on the digital revolution is made by startups, which are rapidly changing under the influence of new technologies of the company, as well as the processes of integration of industries. In the next 5 years, according to respondents, significant changes will come under the influence of the digital revolution, including changes in market shares.
“It’s not only business models that are changing - the whole value chains and products offered are changing. Digitalization is not just changing the industry, it is increasingly blur the boundaries between them. As industries move closer to the center of the digital whirl, physical components are discarded, making it difficult to achieve competitive advantages. The most successful converters use, as we call it, “combinatorial transformations”, creating a fusion of various sources of value, such as cost, experience, platforms, to form new, revolutionary business models on this basis and to achieve exponential advantages, ”said Wade. (Michael Wade), director of the DBT Center and professor of innovation and strategies at IMD.
Source: https://habr.com/ru/post/292062/
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