thriving on disruption
TRANSCRIPT
Thriving on disruption How to become fearless in the face of devastating innovation
Managing the threat of disruptive innovationEstablished companies are vulnerable
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of companies in the Fortune 500 have gone bankrupt, been acquired, or ceased to exist since 2000.**
of CSOs said new technologies will rapidly change their company’s industry.*
*Chief Strategy Officer Industry Disruption Survey, Accenture Institute for High Performance, 2016**Source: Constellation Research, Innosight
of Standard & Poor’s 500 companies from 2012 will disappear by 2027.**
Nearly all CSOs agree new technologies have changed and will change their industry.
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95% 75% 52%
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3Source: Chief Strategy Officer Industry Disruption Survey, Accenture Institute for High Performance, 2016
20% of companies are fearless in the face of disruption; they:
Collaborate to grow
Invest in platforms
Operate with openness
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Thriving on disruption“Disrupt or be disrupted” is rarely realistic
Highly prepared for disruption
Prepared for disruption to some extentNot sufficiently prepared for disruption
20%39%
41%
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Collaborate to growPartner more frequently—and with unusual pairings
Companies that are disruption-ready:• Partner around
various business inputs
• Deepen their collaborations
• Team beyond their primary industry
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Disruption-ready
The rest
Distributors
Customers
Companies beyond our traditional industry boundaries
Suppliers
Logistics providers
Advertising agencies
Companies recognized as investors or innovators
Companies we consider direct competitors
Design service providers
Retailers
0% 25% 50% 75% 100%
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Invest in platformsConnect customers and business partners, at scale and on demand
Platforms defined:Infrastructure that facilitates external direct interactions/exchanges between a company’s clients/consumers, and/or desired business partners.
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Companies that are disruption-ready:• Rethink business models to connect
with other offerings• Build off previous platform
investments• Plan to invest in platforms in • the future
Companies less prepared for disruption
Platform investments:
Companies highly prepared for disruption
88%
42%
Invested in the past, will invest in the future
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Operate with opennessTake concrete operational steps to be collaborative
Companies that thrive on disruption:
• Rethink existing business processes
• Incentivize external collaboration
• Make organizational changes to accelerate decision making
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Making organizational changes to accelerate decision-making
Providing incentives to our executives to think about the company’s success beyond
immediate sales and earnings cycles
Changing internal processes to ensure that we can quickly shift resources to address
critical needs
Implementing new operating procedures in collaboration with our partners
Providing incentives for employees to engage in alliances with other cost
Allowing more flexible choices when it comes to partner collaborations
Rapidly revising and adapting our internal processes
Highest value achievers Other significant platform investorsNot significant platform investors
0% 25% 50% 75% 100%
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Time is of the essenceThree imperatives to thrive on disruption
Partnerships and platforms are limited—and some companies are already playing by the new rules:
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Do not face disruption alone Deepen and broaden alliances beyond your core industry.
Make yourself indispensableBecome part of the integrated solutions that customers demand.
Embrace operational flexibility Be more collaborative and open—with processes and mind-sets.
About the researchAccenture Institute for High Performance
• 561 Chief Strategy Officers• Conducted between November 2015 and February 2016• Company revenues greater than US$1 billion• 10 industries and 11 countries
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Retail
Telecom
Utilities Automotive
Banking
Chemicals
Consumer Goods & ServicesInsuranceOil & Gas
Pharmaceuticals10%
10%
12%
10%7%
11%
11%
10%
7%
12%
7%
15%
9%
9%
11%7%
7%
8%
11%
10%
6%
Industry Country (HQ)
Spain
United Kingdom
United States Brazil
Canada
China
France
GermanyIndia
Italy
Japan
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Contact us
Thriving on disruptionHow to become fearless in the face of devastating innovation
Joshua Bellin Research Fellow Accenture Institute for High [email protected]
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Ivy Lee Research Associate Accenture Institute for High [email protected]
Paul F. Nunes Global Managing Director Accenture Institute for High [email protected]
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Copyright © 2016 Accenture All rights reserved.
About AccentureAccenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 373,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.
About Accenture Institute for High PerformanceThe Accenture Institute for High Performance develops and communicates breakthrough ideas and practical insights on management issues, economic trends and the impact of new and improving technologies. Its worldwide team of researchers collaborates with Accenture’s strategy, digital, technology and operations leadership to demonstrate, through original, rigorous research and analysis, how organizations become and remain high performers. For more information, follow @AccentureINST or visit www.accenture.com/institute.
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