Digital disruption has the potential to overturn incumbents and reshape markets faster than any force in history. The Global Center for Digital Business Transformation (DBT Center) recently conducted a study titled the ''Digital Vortex'', to assess industries' vulnerability to digital disruption. To do so, we interviewed 941 business leaders across 12 countries and 13 industries, ran an analysis of market data looking at investment, timing, means, and impact, and then produced a ranking of industries according to their proximity to the center of the Digital Vortex.
Key insights from the Digital Vortex report:
- Survey respondents believe an average of roughly four of today's top ten incumbents (in terms of market share) in each industry will be displaced by digital disruption in the next five years.
- Digital disruption is not seen as worthy of board-level attention in about 45 percent of companies. 43 percent of companies either do not acknowledge the risk of digital disruption, or have not addressed it sufficiently. Nearly a third are taking a ''wait and see'' approach.
- The Digital Vortex is the inevitable movement of industries toward a ''digital center'' in which business models, offerings, and value chains are digitized to the maximum extent possible. As industries move toward the center of the Digital Vortex, physical components that inhibit competitive advantage (such as manual, paper-based processes) are shed. Whatever can be digitized is digitized.
Learn more: www.imd.org/dbtcenter-vortex