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Nearly two-thirds of large companies face high levels of disruption

Staff Writer |
A new study from Accenture has found that industry disruption is already a reality for most large companies globally.

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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.

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