Digital disruption is the biggest challenge faced by organisations today, with almost half (44%) of business leaders believing their organisation will not exist in its current form by 2021, according to new research.
The findings, from Fujitsu, form part of a global study of 1180 C-suite decision makers.
Further key findings from the 156 UK executives include:
· 97% of leaders said their organisation has been impacted by digital disruption
· 61% cite digital disruption as the biggest challenge they face
· 86% of business leaders believe their sector will fundamentally change by 2021
· 86% believe that their organisation needs to move faster to stay relevant in a digital world
– 86% believe their sector will fundamentally change by 2021 due to enormity of digital’s impact on organisations, industries and overall business community
– 96% of UK’s business leaders admit their organisation must evolve before they can thrive in a digital world and 44% admit their businesses will not exist in its current form in five years
– Global study of 1180 C-Suite decision makers highlights deepseeded concerns about the ability of organisations to adapt and realise potential benefits of digital disruption
The study, commissioned by Fujitsu almost half (44%) of UK business leaders admit that, in the face of rapid digital disruption, their organisation will not exist in its current form by 2021. Although 97% said their organisation has been impacted by digital disruption and 94% expect further widespread disruption, the vast majority (92%) admit their business need to evolve in order to thrive in the face of it.
As a result, 61% of execs admit digital disruption is the biggest challenge they face as a business, almost half (46%) are concerned about the future of their organization in wake of digital disruption and over a quarter (26%) wish they weren’t experiencing digital disruption.
It is not only businesses themselves that are evolving – entire sectors are experiencing complete transformation in the wake of digital disruption. 86% of business leaders believe their sector will fundamentally change by 2021. When assessing what external influencers are driving their response to the challenge of digital disruption, most (46%) business leaders identified customers, although this was closely followed by competitors (41%).
While when asked who is leading digital disruption in their sector, over a quarter (28%) identified the leaders as “established organisations entering their sector such as Google or Amazon”. Indeed, “increased competition / new entrants to the sector was identified as the main effect of digital disruption by 45% of execs.
“Digital is not only disrupting internal processes and customer service, it is changing the face of the UK business community itself. New entrants are coming into sectors they’ve never before played a role in and businesses are having to evolve to thrive in their new business environments,” commented Lucy Dimes, Chief Executive, Fujitsu UK & Ireland. “Digital disruption can boost revenue, make organisations more competitive and support innovation. But that potential is driving the concerns of business who fear falling behind competitors. Business leaders know they need to not only keep up but digitalise faster, with confidence, strategy and ultimately, success.”
Although business leaders anticipate dramatic change over the coming years, most (80%) believe digital disruption presents exciting opportunities. Such potential benefits are driving a hunger to capitalise quickly. 86% of business leaders say their organisation needs to move faster to stay relevant in a digital world.
Exploring what would make them more confident in their organisation’s ability to thrive in a digital world, the majority (46%) of business leaders said “the right technology partner”. The other top answers were: a focus on increasing digital skills in their business (42%) and increased budget to spend on innovation (38%).
“Digital disruption is a huge challenge – no question. But businesses cannot bury their heads in the sand because digital is not only a powerful force, it’s unstoppable,” added Dimes. “The truth is that organisations need help to realise the potential of digital. The ability to pool knowledge, ideas and resources with a technology partner is a vital capability. If all digital stakeholders work together to navigate through this disruption, businesses will not be overrun by digital, or outrun by competitors, they will forge ahead, innovating and prospering to reap all the benefits the digital age offers.”
You can find the “Fit for Digital: Co-creation in the Age of Disruption” report here.
This quantitative research was carried out in September 2016 by independent research company Censuswide. 1180 C-Suite decision makers within mid to large sized businesses across public sector, financial services, retail and manufacturing.