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Digitisation of products, services and solutions is leading to disruption, collapse and transformation of several industries and business ecosystems. The breakneck speed of technology change, in particular, is knocking down traditional product-based business models and compelling a more agile, service-based approach.
How are organisations responding to this ongoing churn? And which approaches will lead them to long-term, sustainable growth?
“As global economic ecosystems experience intense transformation driven by digitisation and resulting change of focus from products to services, new opportunities for growth and innovation are emerging. However, leveraging these opportunities requires visionary leadership that can realise growth strategies and vision congruence,” says Frost & Sullivan chairman David Frigstad.
More than 300 CEOs and business leaders across the Americas, Asia Pacific, Europe and Africa participated in Frost & Sullivan’s Annual Survey CEOs’ Perspectives on Growth, Innovation and Leadership.
Companies that do not embrace disruption or fail to focus on innovation and growth, integrate new business models, and align with customer needs will find themselves increasingly marginalised. Companies are encountering challenges from both external and internal factors, as these findings demonstrate:
* 53% of CEOs cite an intensifying competitive environment as the biggest external threat to growth. However, most organisations are unable to adequately involve competitive intelligence/corporate strategy teams for mitigating this challenge.
* Digital transformation is acknowledged as a dominant growth, innovation, and leadership catalyst over the next five years. However, nearly 34% of CEOs indicate that the speed of technology change represents a real and immediate challenge.
* Technology strategies, along with strategic partnerships, are perceived as central to growth over the next three years. However, over 50% of CEOs indicate their inability to successfully execute either technology and IP strategies or strategic partnerships.
* The transition from product to services, personalisation and customisation, and value for many (as opposed to value for money) rank among the top three disruptive business models. However, over 50% of CEOs state that they have been unable to integrate these new business models into their organisations.
“Digital transformation, including intelligent data analytics, convergence, connectivity and digital consumers, is compelling CEOs to develop innovative tools and strategies in order to deliver on dynamic stakeholder expectations,” says Sandeep Kar, Frost & Sullivan global head for content transformation. “One key takeaway from this survey is that implementation has to start early and consistently.”
In the survey, Apple, Google, Amazon, Tesla and GE were cited as the most disruptive companies. “Their unique stories testify to the unprecedented gains to be had from converting disruption into growth, focusing on innovation, and displaying visionary leadership,” concludes Kar.