Incumbents Strike Back
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1 Incumbents Strike Back Insights from the Global C-suite Study 19 th Edition
2 IBM s Global C-suite Study series draw on more than a decade of research with over 40,000 interviews
3 12,854 Global C-suite Study respondents in ,148 Chief Executive Officers 2,102 Chief Financial Officers 2,139 Chief Human Resources Officers 2,258 Chief Information Officers 3,144 North America 3,457 Europe 1,709 China 1,171 Japan 2,091 Chief Marketing Officers 2,116 Chief Operations Officers 1,032 South America Middle East 1,014 Middle East Africa and Africa 1,327 Asia-Pacific 2,047 Face-to-face meetings 10,807 Live phone interviews 3
4 Cluster analysis identified three distinct segments of organizations among the study participants 22% Reinventors 43% 27% Practitioners 37% Aspirationals 36% Tightly-aligned business and IT strategy Culture of experimentation, co-creation and design thinking Highly ambitious, but capabilities don t yet match their ambitions Inclined to take on more risk Focused more on defensive strategies At a relatively early stage of the digital journey Sampling: Global All participants 4
5 Incumbents strike back Dancing with disruption Incumbents hit their stride Orchestrating the future The pull of platform business models Trust in the journey The path to personalization Innovation in motion Agility for the enterprise 5
6 DANCING WITH DISRUPTION Types of enterprises leading the disruption within their industry Innovative incumbents are the leading source of disruption from within their own industry 72% Innovative industry incumbents 34% Digital giants (i.e. Apple, Google, Alibaba) 23% Companies from other industries 22% Smaller companies or startups In the wake of digital disruption, our enterprise has shifted its strategy to investing in digital startups as this will drive information sharing and innovation. Takao Wada President and Representative Director Persol Tempstaff, Japan 6
7 TRUST IN THE JOURNEY We orchestrate customer journeys that embrace the shift to digital, but recognize the importance of interaction with humans in critical moments of truth. Reinventors are more effective at using data and insights to discover new customer opportunities and unmet needs Effective 43% 49% Highly effective 39% 13% Chief Marketing Officer Banking and Financial Markets New Zealand 25% 10% Reinventors Practitioners Aspirationals 7
8 ORCHESTRATING THE FUTURE Platform operators invest in technologies that help them consume, share and make sense of data Very likely to invest in the following technologies to enable strategic goals Platform operators Cloud Mobile Internet of Things AI/Cognitive Blockchain 73% 73% 71% 45% 23% Platform builders Cloud Mobile Internet of Things AI/Cognitive Blockchain 63% 74% 69% 41% 18% Considering Cloud Mobile Internet of Things AI/Cognitive Blockchain 49% 75% 55% 22% 9% By investing in digital assets to extract new value from our physical assets, we can leverage data and analytics to identify and create entirely new customer services and experiences not yet imagined. Fernando A. Gonzalez Chief Executive Officer CEMEX, Mexico 8
9 INNOVATION IN MOTION Innovation in Developing talent and skills by structuring work in new ways is now top of mind for CxOs Most important external forces that will impact my enterprise in 2 3 years 69% 63% 61% Market factors Technological factors People skills Regulatory concerns Macro-economic factors Socio-economic factors Environmental issues Globalization Geopolitical factors
10 INNOVATION IN MOTION Reinventors organize teams that learn as they execute Culture We actively solicit input from employees to develop new ideas 38% 54% 75% Our teams are empowered to decide on the best course of action As a leader, it is important to promote empowerment and co-creation among our employees, customers and partners. 33% 48% 71% We promote and support collaboration and knowledge sharing Chief Executive Officer Electronics China Reinventors Practitioners Aspirationals 30% 51% 71% 10
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