Nearly two-thirds of large companies face high levels of disruption
The study shows that, rather than being a random event beyond business leaders’ control, disruption has a pattern that can be identified, understood and prepared for.
The study analyzed more than 3,600 companies with annual revenues of at least $100 million in 82 countries along two dimensions: current level of disruption, and susceptibility to future disruption.
Among the key findings: Almost two-thirds (63 percent) of companies currently face high levels of disruption, and two-fifths (44 percent) show severe signs of susceptibility to future disruption.
Disruption is evident but not life-threatening; incumbents still enjoy structural advantages and deliver consistent performance. One-fifth (19 percent) of companies – including those in the automotive retail and supply, alcoholic beverage and diversified chemicals industries – fall into this period.
The current level of disruption is moderate, but incumbents are susceptible to future disruption, due to structural productivity challenges such as high labor costs.
One-fifth (19 percent) of companies – including those in the insurance and healthcare industries and the convenience retail sector – fall into this period.
Prominence of violent, sudden disruption; traditional strengths have become weaknesses. Companies in this period (25 percent of companies studied) include those in the consumer technology, diversified banking, advertising and transportation services industries.
Disruption is a constant; sources of competitive advantage are often short-lived, as new disruptors consistently emerge.
More than one-third (37 percent) of companies – including software and platform providers; telecommunications, media and high-tech companies; and automotive manufacturers – fall into this period. ■