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ASSESSING
THE IMPACT
OF MARKET
DISRUPTIVE
FORCES
Business Disruption Measure
Business Disruption Measure (BDM), a leading indicator, determines the
degree of impact of mac...
Business Impact Score (BIS), a lagging indicator, is a composite measure
derived from degree of change in key financial met...
BDM and BIS – Hi Tech and Telecom
OVERALL
BDM SCORE
Evolving
customer
expectations –
‘omni-channel’
experience
Digitalizat...
BDM and BIS – Banking and Financial Services
OVERALL
BDM SCORE
Ever-
changing and
increasing
burden of
regulatory
complian...
BDM and BIS – Travel and Hospitality
OVERALL
BDM SCORE
Ever-changing
and increasing
burden of
regulatory
compliance
Evolvi...
BDM and BIS – Professional Services
OVERALL
BDM SCORE
Ever-changing
and increasing
burden of
regulatory
compliance
Digital...
BDM and BIS – Manufacturing
OVERALL
BDM SCORE
Ever-changing
and increasing
burden of
regulatory
compliance
Competitive
shi...
08wnsdecisionpoint.com
BDM and BIS – Utilities and Oil & Gas
OVERALL
BDM SCORE
Ever-changing
and increasing
burden of
regu...
BDM and BIS – Insurance
OVERALL
BDM SCORE
Ever-changing
and increasing
burden of
regulatory
compliance
Competitive
shifts
...
BDM and BIS – Retail and CPG
OVERALL
BDM SCORE
Ever-changing
and increasing
burden of
regulatory
compliance
Evolving
custo...
BDM and BIS – Healthcare
OVERALL
BDM SCORE
Evolving
customer
expectations –
‘omni-channel’
experience
Competitive
shifts
E...
BDM SCOREREGION*
5.4
7.0
5.8APAC
NAM
Europe
BDM and BIS – Shipping and Logistics
OVERALL
BDM SCORE
Evolving
customer
expec...
@WNSDecisionPt WNS DecisionPoint WNS DecisionPoint
A credible insights hub for companies looking
to transform their strate...
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WNS DecisionPoint Business Disruption Measure | Top Business Disruptors in Focus | Assessing the Impact of Market Disruptive Forces

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Companies across industries are trying hard to make sense of the shifting forces in markets, governments and consumer societies. While the need to achieve agility and market responsiveness is clear, organizations need to move away from analyzing historical patterns and adapt to a more real-time, data-based mode of understanding current and future changes. Prioritizing and investing in the right change levers is key to survival, and this is where an objective assessment of the forces at play can help businesses achieve readiness against disruption.

The WNS Business Disruption Measure (BDM) is a leading indicator that determines the degree of impact of macroeconomic, industry-level, market stress factors on a company’s operating ecosystem in the medium to long-term horizon. BDM encompasses six market headwinds and triggers (Business Stability Disruptors or BSDs), which contribute to the recent changes in business conditions and performance. The indicator has been developed based on a custom research study conducted among 300+ senior finance executives (including over 100 CFOs) across a cross-section of industries.

Access our infographics and read our full report to identify the most important disruptors in your industry. More importantly, we will, in near future, discuss about key business readiness levers such as operating model design, digital transformation and actionable analytics. Greater focus on readiness levers will throw up business transformation opportunities for organizations to tackle the accelerating rate of external changes.

To access the full report visit:

http://www.wnsdecisionpoint.com/our-insights/reports/detail/50/top-business-disruptors-in-focus

Published in: Business
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WNS DecisionPoint Business Disruption Measure | Top Business Disruptors in Focus | Assessing the Impact of Market Disruptive Forces

  1. 1. ASSESSING THE IMPACT OF MARKET DISRUPTIVE FORCES
  2. 2. Business Disruption Measure Business Disruption Measure (BDM), a leading indicator, determines the degree of impact of macroeconomic, industry-level and market stress factors on a company’s operating ecosystem in medium to long term horizon Six parameters have been considered to cause disruptions in the marketplace (referred to as “Business Stability Disruptors - BSDs”) Natural consequence is the reduced longevity of companies, who fail to comprehend the full magnitude and severity of impact of BSDs and do not demonstrate adequate preparedness to adapt to the changing reality BSD: Relative degree of importance Ever-changing and increasing burden of regulatory compliance Evolving customer expectations – ‘omni-channel’ experience Competitive shifts Digitalization – emergence of as-a-service economy Two speed growth of the global economy Growing materiality and a frequency of M&As Percentage of respondents who indicated a score of >6 (7-10) to the BSD 63% 57% 54% 54% 50% 46% Analysis has been restricted to six BSDs only - conducted a survey of senior Finance executives (including over 100 CFOs) across a cross-section of industries to understand which BSDs can potentially impact the medium term to long term business goals Impact owing to BSDs is likely to vary across industries There could be other factors which may cause stress conditions or headwinds in operating environment Fluctuation in prices of raw materials (crude oil price), socio-political events (such as Brexit) Identifying and evaluating the impact of BSDs provides the basis for investment strategies in mitigation of business volatility wnsdecisionpoint.com01
  3. 3. Business Impact Score (BIS), a lagging indicator, is a composite measure derived from degree of change in key financial metrics of companies over a 5 year period BIS has been calculated on a 10 point scale (1 – Very Low Impact; 10 – Very High Impact) based on financials of top 100 public companies by revenue in each industry for five years to 2015 Business Impact Score Retail and CPG 2.6 3.4 3.4 4.9 5.2 5.8 6.2 6.7 9.1 Professional Services Healthcare Banking and Financial Services Travel and Hospitality Manufacturing Shipping and Logistics Utilities and Oil & Gas Hi Tech and Telecom 5.7 Insurance Each of the six BSDs has been rated on a 10 point scale (1 – Very Low Impact; 10 – Very High Impact) by 300+ respondents representing a cross section of indus- tries. BDM is an average of the 6 scores Shipping and Logistics 5.8 6.0 6.3 6.4 6.4 6.7 6.8 6.8 7.7 Retail and CPG Utilities and Oil & Gas Insurance Manufacturing Banking and Financial Services Professional Services Travel and Hospitality Hi Tech and Telecom Healthcare 6.8 02wnsdecisionpoint.com
  4. 4. BDM and BIS – Hi Tech and Telecom OVERALL BDM SCORE Evolving customer expectations – ‘omni-channel’ experience Digitalization – emergence of as-a-service economy Competitive shifts Ever-changing and increasing burden of regulatory compliance Two speed growth of the global economy Growing materiality and frequency of M&As Business Stability Disruptors Percentage of respondents who indicated a score of >6 87% 80% 73% 67% 60% 53% 7.7 Worse In Line Better Revenue Growth Operating Cash Flow Margin EBIT/Operating Margin Earnings per Share (EPS) Share Price Change BIS – 3.4 Gap (2011-15) Gap (Cross-industry^) Dispersion (Cross-industry^) *APAC: Australia, India, Singapore; NAM: Canada, US; Europe: France, Germany, UK ^Metrics have been normalized for comparison purposes wnsdecisionpoint.com03 REVENUE SIZE BDM SCORE Less than $500 M 5.8 5.0 8.8 6.9 5.0 $500 M – $2 B $2 B – $5 B $5 B – $10 B Greater than $10 B BDM SCOREREGION* 7.5 8.0 5.8APAC NAM Europe
  5. 5. BDM and BIS – Banking and Financial Services OVERALL BDM SCORE Ever- changing and increasing burden of regulatory compliance Evolving customer expectations – ‘omni-channel’ experience 04wnsdecisionpoint.com Competitive shifts Growing materiality and frequency of M&As Digitalization – emergence of as-a-service economy Two speed growth of the global economy Business Stability Disruptors Percentage of respondents who indicated a score of >6 64% 57% 55% 54% 52% 52% 6.8 Revenue Growth Operating Cash Flow Margin Share Price Change Worse In Line Better BIS – 5.2 Gap (2011-15) Gap (Cross-industry^) Dispersion (Cross-industry^) EBIT/Operating Margin Earnings per Share (EPS) REVENUE SIZE BDM SCORE Less than $500 M 6.0 6.8 5.9 7.9 6.4 $500 M – $2 B $2 B – $5 B $5 B – $10 B Greater than $10 B BDM SCOREREGION* 6.3 6.7 7.7APAC NAM Europe *APAC: Australia, India, Singapore; NAM: Canada, US; Europe: France, Germany, UK ^Metrics have been normalized for comparison purposes
  6. 6. BDM and BIS – Travel and Hospitality OVERALL BDM SCORE Ever-changing and increasing burden of regulatory compliance Evolving customer expectations – ‘omni-channel’ experience Digitalization – emergence of as-a-service economy Two speed growth of the global economy Competitive shifts Growing materiality and frequency of M&As Business Stability Disruptors Percentage of respondents who indicated a score of >6 62% 62% 62% 54% 54% 46% 6.8 wnsdecisionpoint.com05 REVENUE SIZE BDM SCORE Less than $500 M 6.0 10.0 7.1 7.7 5.0 $500 M – $2 B $2 B – $5 B $5 B – $10 B Greater than $10 B BDM SCOREREGION* 6.6 7.2 6.3APAC NAM Europe *APAC: Australia, India, Singapore; NAM: Canada, US; Europe: France, Germany, UK ^Metrics have been normalized for comparison purposes Revenue Growth EBIT/Operating Margin Earnings per Share (EPS) Operating Cash Flow Margin Share Price Change Worse In Line Better BIS – 5.8 Gap (2011-15) Gap (Cross-industry^) Dispersion (Cross-industry^)
  7. 7. BDM and BIS – Professional Services OVERALL BDM SCORE Ever-changing and increasing burden of regulatory compliance Digitalization – emergence of as-a-service economy Evolving customer expectations – ‘omni-channel’ experience Two speed growth of the global economy Competitive shifts Growing materiality and frequency of M&As Business Stability Disruptors Percentage of respondents who indicated a score of >6 73% 69% 65% 62% 54% 46% 6.8 REVENUE SIZE BDM SCORE Less than $500 M 6.7 7.3 7.6 5.3 6.1 $500 M – $2 B $2 B – $5 B $5 B – $10 B Greater than $10 B BDM SCOREREGION* 6.6 6.9 7.0APAC NAM Europe 06wnsdecisionpoint.com *APAC: Australia, India, Singapore; NAM: Canada, US; Europe: France, Germany, UK ^Metrics have been normalized for comparison purposes Revenue Growth Operating Cash Flow Margin Share Price Change Worse In Line Better BIS – 3.4 Gap (2011-15) Gap (Cross-industry^) Dispersion (Cross-industry^) EBIT/Operating Margin Earnings per Share (EPS)
  8. 8. BDM and BIS – Manufacturing OVERALL BDM SCORE Ever-changing and increasing burden of regulatory compliance Competitive shifts Two speed growth of the global economy Evolving customer expectations – ‘omni- channel’ experience Digitalization – emergence of as-a-service economy Growing materiality and frequency of M&As Business Stability Disruptors Percentage of respondents who indicated a score of >6 63% 60% 57% 53% 50% 47% 6.7 REVENUE SIZE BDM SCORE Less than $500 M 5.0 6.0 8.6 7.7 $500 M – $2 B $2 B – $5 B Greater than $10 B BDM SCOREREGION* 5.3 8.4 4.7APAC NAM Europe *APAC: Australia, India, Singapore; NAM: Canada, US; Europe: France, Germany, UK ^Metrics have been normalized for comparison purposes wnsdecisionpoint.com07 Revenue Growth EBIT/Operating Margin Earnings per Share (EPS) Operating Cash Flow Margin Share Price Change Worse In Line Better BIS – 6.2 Gap (2011-15) Gap (Cross-industry^) Dispersion (Cross-industry^)
  9. 9. 08wnsdecisionpoint.com BDM and BIS – Utilities and Oil & Gas OVERALL BDM SCORE Ever-changing and increasing burden of regulatory compliance Digitalization – emergence of as-a-service economy Two speed growth of the global economy Growing materiality and frequency of M&As Evolving customer expectations – ‘omni-channel’ experience Competitive shifts Business Stability Disruptors Percentage of respondents who indicated a score of >6 74% 61% 61% 52% 52% 48% Revenue Growth EBIT/Operating Margin Earnings per Share (EPS) Operating Cash Flow Margin Share Price Change Worse In Line Better BIS – 9.1 Gap (2011-15) Gap (Cross-industry^) Dispersion (Cross-industry^) 6.4 BDM SCOREREGION* 6.1 6.5 7.8APAC NAM Europe REVENUE SIZE BDM SCORE Less than $500 M 5.6 7.5 7.0 6.5 5.9 $500 M – $2 B $2 B – $5 B $5 B – $10 B Greater than $10 B *APAC: Australia, India, Singapore; NAM: Canada, US; Europe: France, Germany, UK ^Metrics have been normalized for comparison purposes
  10. 10. BDM and BIS – Insurance OVERALL BDM SCORE Ever-changing and increasing burden of regulatory compliance Competitive shifts Digitalization – emergence of as-a-service economy Evolving customer expectations – ‘omni-channel’ experience Two speed growth of the global economy Growing materiality and frequency of M&As Business Stability Disruptors Percentage of respondents who indicated a score of >6 67% 58% 53% 47% 36% 33% 6.4 BDM SCOREREGION* 6.8 6.2 7.5APAC NAM Europe REVENUE SIZE BDM SCORE Less than $500 M 6.0 6.6 7.1 6.7 6.7 $500 M – $2 B $2 B – $5 B $5 B – $10 B Greater than $10 B *APAC: Australia, India, Singapore; NAM: Canada, US; Europe: France, Germany, UK ^Metrics have been normalized for comparison purposes wnsdecisionpoint.com09 Revenue Growth Operating Cash Flow Margin Share Price Change Worse In Line Better BIS – 5.7 Gap (2011-15) Gap (Cross-industry^) Dispersion (Cross-industry^) EBIT/Operating Margin Earnings per Share (EPS)
  11. 11. BDM and BIS – Retail and CPG OVERALL BDM SCORE Ever-changing and increasing burden of regulatory compliance Evolving customer expectations – ‘omni-channel’ experience Two speed growth of the global economy Growing materiality and frequency of M&As Digitalization – emergence of as-a-service economy Competiti ve shifts Business Stability Disruptors Percentage of respondents who indicated a score of >6 57% 52% 52% 43% 43% 43% 6.3 BDM SCOREREGION* 5.6 7.2 6.0APAC NAM Europe REVENUE SIZE BDM SCORE Less than $500 M 5.4 6.7 7.6 6.8 6.2 $500 M – $2 B $2 B – $5 B $5 B – $10 B Greater than $10 B *APAC: Australia, India, Singapore; NAM: Canada, US; Europe: France, Germany, UK ^Metrics have been normalized for comparison purposes 10wnsdecisionpoint.com Revenue Growth Operating Cash Flow Margin Share Price Change Worse In Line Better BIS – 2.6 Gap (2011-15) Gap (Cross-industry^) Dispersion (Cross-industry^) EBIT/Operating Margin Earnings per Share (EPS)
  12. 12. BDM and BIS – Healthcare OVERALL BDM SCORE Evolving customer expectations – ‘omni-channel’ experience Competitive shifts Ever-changing and increasing burden of regulatory compliance Digitalization – emergence of as-a-service economy Growing materiality and frequency of M&As Two speed growth of the global economy Business Stability Disruptors Percentage of respondents who indicated a score of >6 62% 48% 43% 43% 33% 33% 6.0 BDM SCOREREGION* 6.8 5.8 5.9APAC NAM Europe REVENUE SIZE BDM SCORE Less than $500 M 6.3 5.0 5.9 7.1 6.9 $500 M – $2 B $2 B – $5 B $5 B – $10 B Greater than $10 B *APAC: Australia, India, Singapore; NAM: Canada, US; Europe: France, Germany, UK ^Metrics have been normalized for comparison purposes wnsdecisionpoint.com11 Revenue Growth EBIT/Operating Margin Earnings per Share (EPS) Operating Cash Flow Margin Share Price Change Worse In Line Better BIS – 4.9 Gap (2011-15) Gap (Cross-industry^) Dispersion (Cross-industry^)
  13. 13. BDM SCOREREGION* 5.4 7.0 5.8APAC NAM Europe BDM and BIS – Shipping and Logistics OVERALL BDM SCORE Evolving customer expectations – ‘omni-channel’ experience Ever-changing and increasing burden of regulatory compliance Competitive shifts Digitalization – emergence of as-a-service economy Growing materiality and frequency of M&As Two speed growth of the global economy Business Stability Disruptors Percentage of respondents who indicated a score of >6 60% 40% 30% 30% 20% 20% 5.8 REVENUE SIZE BDM SCORE Less than $500 M 5.5 6.7 6.0 4.4 5.7 $500 M – $2 B $2 B – $5 B $5 B – $10 B Greater than $10 B *APAC: Australia, India, Singapore; NAM: Canada, US; Europe: France, Germany, UK ^Metrics have been normalized for comparison purposes wnsdecisionpoint.com 12 Revenue Growth Operating Cash Flow Margin Share Price Change Worse In Line Better BIS – 6.7 Gap (2011-15) Gap (Cross-industry^) Dispersion (Cross-industry^) EBIT/Operating Margin Earnings per Share (EPS)
  14. 14. @WNSDecisionPt WNS DecisionPoint WNS DecisionPoint A credible insights hub for companies looking to transform their strategies and operations by aligning with today’s realities and tomorrow’s disruptions. Email: perspectives@wnsdecisionpoint.com Website: wnsdecisionpoint.com

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