Thriving on disruption How to become fearless in the face of devastating innovation

Transcription

1 Thriving on disruption How to become fearless in the face of devastating innovation

2 Managing the threat of disruptive innovation Established companies are vulnerable Nearly all CSOs agree new technologies have changed and will change their industry. 95% 75% 52% of CSOs said new technologies will rapidly change their company s industry.* of Standard & Poor s 500 companies from 2012 will disappear by 2027.** of companies in the Fortune 500 have gone bankrupt, been acquired, or ceased to exist since 2000.** *Chief Strategy Officer Industry Disruption Survey, Accenture Institute for High Performance, 2016 **Source: Constellation Research, Innosight 2

3 Thriving on disruption Disrupt or be disrupted is rarely realistic 20% of companies are fearless in the face of disruption; they: Collaborate to grow 39% 20% Invest in platforms Operate with openness 41% Highly prepared for disruption Prepared for disruption to some extent Not sufficiently prepared for disruption Source: Chief Strategy Officer Industry Disruption Survey, Accenture Institute for High Performance,

4 Collaborate to grow Partner more frequently and with unusual pairings Distributors Companies that are disruption-ready: Partner around various business inputs Deepen their collaborations Team beyond their primary industry 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 % Disruption-ready The rest 4

5 Invest in platforms Connect customers and business partners, at scale and on demand 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 Platform investments: 88% Companies highly prepared for disruption Platforms defined: Infrastructure that facilitates external direct interactions/exchanges between a company s clients/consumers, and/or desired business partners. 42% Companies less prepared for disruption Invested in the past, will invest in the future 5

6 Operate with openness Take 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 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 0 % 25 % 50 % 75 % 100 % Highest value achievers Other significant platform investors Not significant platform investors 6

7 Time is of the essence Three imperatives to thrive on disruption Partnerships and platforms are limited and some companies are already playing by the new rules: Do not face disruption alone Deepen and broaden alliances beyond your core industry. Make yourself indispensable Become part of the integrated solutions that customers demand. Embrace operational flexibility Be more collaborative and open with processes and mind-sets. 7

8 About the research Accenture 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 Telecom Retail 11 % Utilities 11 % 10 % Pharmaceuticals 7 % Oil & Gas 7 % Insurance Automotive 10 % Industry 12 % 12 % 10 % 10 % Banking Chemicals Consumer Goods & Services United Kingdom Spain Japan 8 11 % 8 % Italy United States 10 % 6 % 7 % 7 % 7 % Country (HQ) India Brazil 11 % Germany 15 % 9 % 9 % Canada France China

9 Contact us Paul F. Nunes Global Managing Director Accenture Institute for High Performance Joshua Bellin Research Fellow Accenture Institute for High Performance Thriving on disruption How to become fearless in the face of devastating innovation Ivy Lee Research Associate Accenture Institute for High Performance 9

10 About Accenture Institute for High Performance The 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, or visit = About Accenture Accenture 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 10