52% Leaders Feel Their Business Won’t Survive In 5 Years: Fujitsu
Digital disruption is the new normal. According to the study by Fujitsu, 52% of the business leaders felt that by 2021, that is, five years from the current year, their businesses would cease to exist in the current form, and the reason is digital disruption. In the same report, the respondents mentioned that nearly all of them (98%) that their businesses have already been affected with the acceptance of new technology, 92% recognized that their businesses need to evolve in the wake of new technology, and 75% believe that the business sectors would change fundamentally over the next 5 years.
Different aspects of the Fujitsu study, pointed at various different aspects of the conditioning of enterprises in the face of digital disruption:
– When assessing what drives their response to the challenge of digital disruption,almost half (45%) pointed to the C-Suite or leadership team. Looking externally, most business leaders identified customers (45%) ahead of competitors (31%) as the most influential group driving their organization’s response to digital disruption. When asked who is leading digital disruption in their sectors, only 12% of execs pointed to themselves, compared to the 45% who pointed to start-ups and organizations from outside their sectors.
– Despite business leaders anticipating dramatic change over the coming years, most (72%) believe digitalization presents exciting opportunities for them and four in five (80%) state it is a positive force. Such potential benefits are driving a hunger to capitalize quickly. 71% of executives state that organizations need to innovate faster in order to stay relevant, with Finland (97%) the strongest believers in this and executives in Spain (36%) the least certain that innovating faster is what’s needed to stay relevant in a digitalized world.
Duncan Tait, Senior Executive Vice-President and Head of EMEIA and Americas at Fujitsu, said: “Digital disruption transforms business models and revenue streams, operations and processes, customer relationships and service and more. It is exactly this potential that is causing concern.The fact that despite the potential benefits, a third (33%) of executives wish they weren’t experiencing digital disruption is stark reading.”
“Compared to two years ago,and indeed just last year when we analyzed IT decision makers’ approach to and opinions of digital transformation, business leaders are now more confident and know they need to not only keep up but strive to better their competitors and digitalize faster, with confidence,strategy and ultimately, great success. The pressure to flourish in the face of digitalization is clear in this study’s findings,” he said.