Study: Digital Disruption Is Inevitable And 75 Per Cent Of Brands Will Fail

Study: Digital Disruption Is Inevitable And 75 Per Cent Of Brands Will Fail
SHARE
THIS



Nearly all of the chief strategy officers (CSOs) surveyed by Accenture  around the world say  digital disruption will reshape their industries but very few however are equipped to navigate the change.

That’s a key finding from a study called ‘Thriving on Disruption’,  by the Accenture Institute for High Performance.

According to Paul Nunes, managing director, Accenture Institute for High Performance, “Rapid and disruptive change is coming, regardless of the industry that you operate in.”

He said, “Current economic outlook suggests that based on the declining lifespan of companies, 75 percent of today’s leading industry players will be gone within the next decade. Our research shows that although some companies aren’t ready for this disruption, they can borrow from the playbook of those who are.”

That means making strategic investments in technology platforms that supporting more collaborative operating models, Nunes says.

Those who feel most prepared are embracing new strategic alliances, devising more collaborative ways of operating with partners, and making themselves indispensable within a broader ecosystem.

The report should three broad approaches incumbents need to pursue;

  1. Do not face disruption alone. Deepen and broaden partnerships with customers, providers, and a diverse array of companies in and beyond your core industry
  2. Make yourself indispensable. Use your company’s focus and expertise to become a critical part of the integrated solutions that customers demand
  3. Embrace operational flexibility. Consider what organizational changes you will need to be more collaborative and open—both in terms of your processes and your employee mind-sets

For the report  surveyed 561 CSOs across 10 industries in 11 countries. It found that while 93 percent agree that new technologies will rapidly change their industry in the next five years, only 20 percent are well prepared for sudden industry disruption.

 

It’s the ecosystem, stupid

Companies that are better prepared for industry disruption are much more engaged in growing and broadening their ecosystem partnerships. According to the report’s authors, almost all of the best-prepared CSOs (95 percent) say that their company growth agendas over the next five years rely on collaborative partnerships.

“They actively use this strategy to support innovation and research and development, as compared to only half of those who admit they are less prepared.”

Companies that are disruption-ready are a third more likely to partner with advertising agencies, innovation companies (26 percent more likely), design service providers (24 percent more likely) and even customers (26 percent more likely). “They are also 36 percent more likely to collaborate with companies beyond their traditional industry boundaries, and 32 percent more likely to align with companies they consider direct competitors. This collaboration gap has only increased in the past five years,” according to the study.

“As digital disruption breaks down the walls of established industries, it’s time for companies to rethink their approach to business strategy,” said Peter Lacy, managing director, Accenture Strategy. “In order to successfully navigate industry convergence and strengthen their network of alliances to build truly collaborative operating models, they must shift their mindset to compete as a ‘cluster’, not as a single company, creating shared value for their alliance partners and customers.”

A significant majority (88 percent) of CSOs who claim to be very well prepared for industry disruption have already begun investing heavily in platform-based business models and will continue to do so into the future. This compares to only 42 percent of those who admit they are less prepared.

Among the group of CSOs who are actively investing in these platforms, those that achieve the greatest benefits are far more likely than their peers to build operating models that are collaborative and open. They embed collaboration into their culture through incentives, and revise their internal processes and technologies to make external collaboration ever more seamless.

“Platform companies are successful because they capitalize on the innovation of an entire ecosystem versus only leveraging resources within a company,” Peter Lacy continued. “Business that are well prepared for disruption are building their growth strategy on platforms and, as a result, are more likely to survive the disruption and gain competitive advantage.”

Methodology
The Accenture Institute for High Performance surveyed 561 CSOs, or their direct reports, at companies with revenues greater than $1 billion spanning 10 industries, including automotive, banking, chemicals, consumer goods and services, insurance, oil and gas, pharmaceuticals, retail, telecommunications and utilities. The online and phone survey was conducted between December 2015 and February 2016 and included 11 countries – Brazil, Canada, China, France, Germany, India, Italy, Japan, Spain, the United Kingdom and the United States.

This article originally appeared on B&T’s sister business site www.which-50.com

Latest News

PwC Announces Program To Champion CMO Growth Agenda
  • Marketing

PwC Announces Program To Champion CMO Growth Agenda

PwC Australia today announced a new invitation-only development program for senior marketing leaders: the CMO Growth Agenda. The program will enable CMOs to link business transformation, customer experience and marketing as the enterprise growth driver in the boardroom. Melbourne Business School and The Marketing Academy will contribute learning modules as part of the syllabus. The […]

Reflection On Cannes – It’s About Co-Creation
  • Opinion

Reflection On Cannes – It’s About Co-Creation

In this guest post, GPJ Australia’s senior creative director James David (pictured below) was a first-timer at this year’s Cannes. Here’s his take on the annual adland love-in from a fresh set of eyes… Having spent last week in Cannes for the Cannes Lions and the Creative Leaders Programme, I was super excited about the opportunity […]

Opinion

by B&T Magazine

B&T Magazine
Seven Relinquishes, As Nine Snares Rights For Tennis 2019 For $48.5 Million
  • Marketing

Seven Relinquishes, As Nine Snares Rights For Tennis 2019 For $48.5 Million

Nine has announced that it has reached agreement with Tennis Australia and the Seven Network to bring forward its rights deal to broadcast tennis by one year. The new deal means Nine will be the home of Australia’s highest rating summer sport for six years, commencing in January 2019. Under the terms of the landmark agreement, […]

Former Publicis CEO Andrew Baxter Joins KPMG
  • Marketing
  • Media

Former Publicis CEO Andrew Baxter Joins KPMG

KPMG Australia has appointed former Publicis Communications chairman and Publicis Australia CEO, Andrew Baxter, as senior adviser to the firm’s entrepreneurial Customer, Brand and Marketing Advisory (CBMA) business. Baxter is as a strong strategic thinker who drives growth in his own and his clients’ businesses, and has been successfully leading major professional services firms for the […]

Media Veteran Vida Scott Appointed Ten’s Head Of Comms
  • Marketing

Media Veteran Vida Scott Appointed Ten’s Head Of Comms

Network Ten today announced the appointment of Vida Scott as head of communications, effective the 2nd July.  In her new role, Scott will be responsible for the company’s external corporate communications, internal communications, and trade marketing. She will report to Network Ten chief operating officer, Annabelle Herd. Herd said: “I am delighted to welcome Vida […]

Tourism Australia’s ‘Dundee’ Wins Titanium Lion
  • Advertising

Tourism Australia’s ‘Dundee’ Wins Titanium Lion

Tourism Australia’s star-studded Dundee: The Son of a Legend Returns Home campaign has secured a coveted Titanium Lion award at the 2018 Cannes Lions International Festival of Creativity. The Titanium award rounded out a successful week in Cannes for Australian tourism with Dundee picking up a total of 10 Lions. Tourism Australia’s youth-focused Aussie News Today […]

by B&T Magazine

B&T Magazine
Nine’s Michael Slater Moves To Seven’s Cricket Commentary Box
  • Media

Nine’s Michael Slater Moves To Seven’s Cricket Commentary Box

Former Australian opener and Nine commentator, Michael Slater, has announced his move to Channel Seven after it snared the rights to the cricket in a JV deal with Foxtel in April. Slater will join former Aussie cricketers Ricky Ponting and Damien Fleming in Seven’s commentary box for the first game starting in December. Slater was Australia’s aggressive […]

oOh!media Acquires Here, There & Everywhere-Owned Adshel For $570M
  • Media

oOh!media Acquires Here, There & Everywhere-Owned Adshel For $570M

oOh!media has acquired Here, There & Everywhere-owned Adshel for $570 million. The move follows a bidding war between oOh!media and APN Outdoor for the outdoor street furniture business. In April, Here, There & Everywhere (HT&E) received a revised offer of $470 million from oOh!media for Adshel, however, HT&E claimed it wasn’t the “most attractive” one […]

Daylight Agency Appoints Shelley Hammond As Director Of Agency Operations
  • Media

Daylight Agency Appoints Shelley Hammond As Director Of Agency Operations

The Daylight Agency’s significant growth has continued with the appointment of Shelley Hammond as Director of Agency Operations. Shelley is a leader in the global communications industry and brings vast experience following senior roles in major corporates as well as the agency environment. Shelley will be responsible for the commercial running of Daylight including client retention and […]

Host/Havas Takes Out Cannes Grand Prix With Palau Pledge
  • Advertising

Host/Havas Takes Out Cannes Grand Prix With Palau Pledge

Host/Havas has secured Australia’s first grand prix award at Cannes overnight, taking out the top gong for the direct lions with its work Palau Pledge. The work, which sees all visitors to the tiny island nation have their passport stamped with a pledge to be a good environmental citizen, which they must sign before entering […]

by B&T Magazine

B&T Magazine
Instagram Launches Long-Form Video
  • Technology

Instagram Launches Long-Form Video

Instagram unveils new eye-catching feature. Slicing onions while reading this will also make it eye-watering.

Ridley Scott Unveils New Directors Showcase At Cannes
  • Media

Ridley Scott Unveils New Directors Showcase At Cannes

Curated this year by Ridley Scott, famed director of Alien, The Martian and other classics, The New Directors Showcase at Cannes is now in its 28th year. Acting as a platform for talented new directors to have their work premiered to a global audience, Scott took to the stage in front of a full house […]

by B&T Magazine

B&T Magazine
ANZ, PHD & JCDecaux Harness The Power Of Data
  • Advertising
  • Campaigns

ANZ, PHD & JCDecaux Harness The Power Of Data

ANZ and media agency PHD have partnered with JCDecaux to launch a unique campaign that harnesses the power of data across three cities incorporating actual tram, train and bus timetable information to align with the new ANZ App.

Report: Consumers Are Hitting Play On Mobile Video
  • Technology

Report: Consumers Are Hitting Play On Mobile Video

Ooyala survey finds media companies created and processed nearly three times as much video content in Q1 as Media Companies Created & Processed Nearly Three Times As Much Video Content in Q1 2018 vs. Q1 2017.

MercerBell Calls In Two New Data Hires
  • Marketing
  • Technology

MercerBell Calls In Two New Data Hires

Proving many photos shot on an iPhone so often come out washed-out and grainy comes this article's accompanying pic.

Intrepid Travel Go Back 30 Years, Posting Classified Adverts In Newspapers
  • Campaigns

Intrepid Travel Go Back 30 Years, Posting Classified Adverts In Newspapers

Intrepid Travel has gone back in time and is placing classified adverts for a new ‘mystery expedition’ to places that yet mapped by Google.  The adverts to be placed in Courier Mail, Herald Sun and Sunday Telegraph are calling for intrepid people to join a journey with “long travel days, intermittent electricity, no Wi-Fi, cold […]

Watching tv and using remote control
  • Advertising
  • Media

GroupM Investment Forecast For Australia: TV On The Rise As Digital Slips

GroupM has updated its 2018 ad investment forecasts and released its initial 2019 outlook. GroupM predicts $24B in net new advertising investment this year, the best annual increment since the bounce back from the global recession in 2010 when $26B was added to investment. GroupM estimates total advertising investment will grow by 4.5 per cent this year […]

Indigenous Campaign Deemed Too Controversial By APN Media To Run
  • Advertising
  • Campaigns

Indigenous Campaign Deemed Too Controversial By APN Media To Run

Aboriginal Victoria’s campaign in support of Australia’s first-ever treaty legislation, Deadly Questions, has been deemed too controversial to run by one of Australia’s leading outdoor media providers, APN Media. Online platform Deadly Questions provides a safe space for people to ask questions and have them answered by Aboriginal Victorians, to learn more about their cultures, […]

Introducing: YouTube Music Australia
  • Technology

Introducing: YouTube Music Australia

The wait is over! Starting today, YouTube Music is available to everyone in Australia, New Zealand, the U.S, Mexico and South Korea in addition to 12 new countries including Austria, Canada, Finland, France, Germany, Ireland, Italy, Norway, Russia, Spain, Sweden, and the United Kingdom. Now fans around the world can find more of the music […]

Will PR Finally Earn Its Stripes At Cannes This Year?
  • Opinion

Will PR Finally Earn Its Stripes At Cannes This Year?

In this guest post, Haystac’s national general manager, Jason Carnew (pictured below), says with all this talk of Cannes at this time of year, it’s a kindly reminder that the PR business needs to get its act together in terms of awards, work and judging… All eyes on are Cannes as some of the best […]

Opinion

by B&T Magazine

B&T Magazine
Ex-DDBer Unveils Designer Headscarves For Cancer Survivors
  • Campaigns

Ex-DDBer Unveils Designer Headscarves For Cancer Survivors

Two-times cancer survivor, Frankie Good Stuff Award Winner, ex-DDBer and founder of Bravery Co. Emily Somers has collaborated with a range of top-notch illustrators to produce Australia’s first range of designer headscarves for young cancer warriors. She is now crowdfunding $40,000 to produce the scarves and donate one to all the young women in their 20’s […]

New Advertising Platform Launches Down Under
  • Advertising

New Advertising Platform Launches Down Under

Following its massive success in Europe, Asia and the UAE, the Polishoe concept, which brings a high-demand shoe polish service and HD digital advertising platform together, has landed in Australia.

Women In Media Profile: Aimee Buchanan
  • Media

Women In Media Profile: Aimee Buchanan

No Women in Media series would be complete without the irrepressible Aimee Buchanan. Read all her pressibles here.

by B&T Magazine

B&T Magazine
Set for blue sky, different clouds icons, cloud shapes, labels, symbols, icons. Flat graphic vector elements
  • Technology

PubMatic Unveils Cloud for Publishers And Tech Companies

PubMatic has launched PubMatic Cloud for publishers and tech companies looking to implement and control their own programmatic technology. By accessing PubMatic’s technology, global infrastructure and demand connections on a platform-as-a-service (PaaS) basis, clients are able to achieve full transparency and achieve greater control over their programmatic monetization. As programmatic trading becomes mainstream, innovations such as […]

Women In Media Profile: Claudine Hall
  • Media

Women In Media Profile: Claudine Hall

The Women in Media Awards are back for 2018! To celebrate this wonderful fact, and to recognise some of the killer women in our industry, we’ve created a women in media series – and have profiled some pretty inspiring women so far. This week, we chat with Bauer Media head of trade marketing Claudine Hall. […]

by B&T Magazine

B&T Magazine
Cancer Council and Target Tradies Tackle On-The-Job Skin Cancer Risks
  • Campaigns

Cancer Council and Target Tradies Tackle On-The-Job Skin Cancer Risks

Workers on construction sites receive five to 10 times more UV exposure every year compared to indoor workers. Target Tradies and Cancer Council have announced the launch of a partnership to help educate Australian construction workers about the importance of being SunSmart at work. With evidence showing that outdoor workers receive five to 10 times […]