New Study Highlights the Power of Digital Disruption
SAN JOSE, CA: A new study reveals that only 25 percent of the companies proactively take measures to address digital disruption. The study initiated by Global Center for Digital Business Transformation (DBT Center), a Cisco International Institute of Management Development (IMD) brings together innovation and learning to create disruptive business models for the digital era.
"The Global Center for Digital Business Transformation, which brings together digital disruption and education, will serve as a platform for executives to be educated on the why, what and how required for their digitization journey and the ultimate sustainability of their organizations," says Martin McPhee, Senior Vice President, Cisco Consulting Services.
According to the new report, digital disruption in business has the potential to overturn incumbents and reshape markets faster than anything in the history. The conclusions were made after surveying the state of digital disruption and the outlook for industries with 941 business leaders in 12 industries across 13 countries.
The study concludes that around 40 percent of incumbent companies that is four out of ten incumbents will be displaced by the industries due to digital disruption within next five years. Even with such high risks, about 45 percent of the companies still refuse to believe in digital disruption merits board-level attention.
75 percent of the executives surveyed believe that digital disruption is a form of progress, 72 percent said it improves value to customers and 66 percent feel it empowers individuals. Among all these findings, the contrast is that still an alarming 43 percent refuse to acknowledge the risk of digital disruption, or have failed to address it sufficiently.
The report also pin points that among the 12 highlighted industries, Technology Products & Services carries the highest potential for disruption over the next five years, one among the highlighted industries. But when compared, the data-driven industries were the one to top when assed generally. Well-funded start-ups, digitally proactive competitors and the merging of industries as digitization are the ones who drive disruption freeing businesses to expand their value to new markets.