The document discusses how companies can both disrupt industries while also being disrupted by new technologies and business models. It summarizes the results of a survey of CEOs and institutional investors. The key findings are:
- 50% of CEOs surveyed do not feel their companies are adequately prepared to respond to disruption.
- Readiness levels are actually lower than CEOs' self-assessments across many dimensions.
- Investors want companies to undertake disruptive innovation projects, even if risky, and explore new business models.
- Companies are categorized as "Caterpillars", "Chrysalises", or "Butterflies" based on their urgency/readiness for transformation in response to disruption.
Creating the Conditions for Sustainable Innovation The Leadership Imperative ...Meghan Daily
Organizations need innovation to survive and thrive. Thus, they need leaders who excel at driving innovation. But many leaders fall short when it comes to fostering ideas. This report doesn’t question if leaders themselves will be the source of your next great idea. Rather, when that idea arises—from a team member, a customer, or some other source—will leaders be able to foster it an bring it to fruition?
Over the past few years, DDI has worked with the LUMA Institute to teach leaders to foster innovation. We found to be effective, leaders must:
Inspire Curiosity
Challenge Current Perspectives
Create Freedom
Drive Discipline.
CFO’s Sharing: Is this possible to turn technology Capex to Opex for Growth ...Wendy Wan
Technological advances are disrupting the status quo and creating huge turbulence. Industries are converging, and new competitors emerging, at breakneck speed.
The role of the CFO is evolving. CFOs must aid in strategy development to pursue profitable growth by capitalizing technology.
How do the leading enterprise drive top-line growth and also bottom-line savings?
Chaos report 2012: here you´ll find the full version of the worldwide report ellaborated by The Standish Group about success and failure of IT projects.
Attracting and retaining the next generation of talentJennifer Falzon
It is clear that the dynamics and demographics of the Canadian workforce are changing. Currently, more than 50 per cent of the Canadian workforce is comprised of Millennials, those roughly born between 1980 and 2000. This is a staggering and important change for all industries in Canada.
The report aims to provide organizations with new approaches and opportunities to attract, engage and most importantly, retain these workplace game-changers. With high levels of student debt and a youth unemployment rate twice the national average, the next two generations of talent have new needs, expectations and are hungry for experience.
Learn how your organization can build a desirable employer brand by connecting and investing in students, foster talent despite the risk of mobility and create a nurturing environment for the next two generations of employees. There will be a direct correlation between the success and growth of your organization and its ability to attract and engage Gen Y & Z.
yconic owns and operates the largest youth market research panel in Canada. Over 550,000 youth between the ages of 13 and 30 have opted in to participate in our consumer surveys. We help our partners gain key insights into the youth demographic, leading to better marketing and product decisions for the teen and young adult market. For more information, visit we.are.yconic.com.
Creating the Conditions for Sustainable Innovation The Leadership Imperative ...Meghan Daily
Organizations need innovation to survive and thrive. Thus, they need leaders who excel at driving innovation. But many leaders fall short when it comes to fostering ideas. This report doesn’t question if leaders themselves will be the source of your next great idea. Rather, when that idea arises—from a team member, a customer, or some other source—will leaders be able to foster it an bring it to fruition?
Over the past few years, DDI has worked with the LUMA Institute to teach leaders to foster innovation. We found to be effective, leaders must:
Inspire Curiosity
Challenge Current Perspectives
Create Freedom
Drive Discipline.
CFO’s Sharing: Is this possible to turn technology Capex to Opex for Growth ...Wendy Wan
Technological advances are disrupting the status quo and creating huge turbulence. Industries are converging, and new competitors emerging, at breakneck speed.
The role of the CFO is evolving. CFOs must aid in strategy development to pursue profitable growth by capitalizing technology.
How do the leading enterprise drive top-line growth and also bottom-line savings?
Chaos report 2012: here you´ll find the full version of the worldwide report ellaborated by The Standish Group about success and failure of IT projects.
Attracting and retaining the next generation of talentJennifer Falzon
It is clear that the dynamics and demographics of the Canadian workforce are changing. Currently, more than 50 per cent of the Canadian workforce is comprised of Millennials, those roughly born between 1980 and 2000. This is a staggering and important change for all industries in Canada.
The report aims to provide organizations with new approaches and opportunities to attract, engage and most importantly, retain these workplace game-changers. With high levels of student debt and a youth unemployment rate twice the national average, the next two generations of talent have new needs, expectations and are hungry for experience.
Learn how your organization can build a desirable employer brand by connecting and investing in students, foster talent despite the risk of mobility and create a nurturing environment for the next two generations of employees. There will be a direct correlation between the success and growth of your organization and its ability to attract and engage Gen Y & Z.
yconic owns and operates the largest youth market research panel in Canada. Over 550,000 youth between the ages of 13 and 30 have opted in to participate in our consumer surveys. We help our partners gain key insights into the youth demographic, leading to better marketing and product decisions for the teen and young adult market. For more information, visit we.are.yconic.com.
My slides for a course on Strategic Doing for the Economic Development Institute. I teach the fundamentals of strategic doing in an advanced strategy lab.
This Report answers questions on the makings of a modern day Tech CFO - the career paths, their personalities and the insights they use.
CFOs are the first line of defense from potential financial adversity.
They can also be the asset that allows companies to really expand their horizons rapidly.
Today, the CFO is a connector – the bridge between business, data & goals.
Yet, so little is spoken about these enablers.
So, we decided to shift the spotlight onto them.
What this report focuses on could address questions like:
who are they?
what is their education arc?
how has their career graph been?
what insights do we have about their personality style?
what makes them tick & what ticks them off?
when faced with rapid momentum, do they fight/ take flight?
Hope you get some answers to questions you have had in a while. If you want to ask me something or explore assistance as a CFO, please feel free to hit us up at connect@prequate.in.
Presentation highlights the importance of intrapreneurship and corporate entrepreneurship for companies seeking organic growth. It reviews how a top-down and a bottom-up approach must be planned to ensure sustainable long-term success. Provides several examples of companies successful at intrapreneurship (corporate entrepreneurship) and some key success factors.
Is Leadership Development Worth the Investment?Wiley
Is leadership development worth the investment? Studies show that leadership development yields results in financial performance, talent attraction and retention, organizational agility, and employee productivity.
Get started today: http://bit.ly/WileyLeadershipChallenge
Our annual report finds significant numbers of startups continue to have no women in leadership, yet a growing percentage have programs in place to change that.
How to turn your Social Collaboration initiative into a success and into an enabler of strategic value? By having a look at the challenges, best practices and recommended strategies collected with the Social Collaboration Survey, a free quantitative study conducted by Emanuele Quintarelli and Stefano Besana on 300 organizations at the end of 2013.
Turning the Social Enterprise into a strategic initiative based on the Social Collaboration Survey 2013 results (http://www.socialcollaborationsurvey.it)
#CultureCode The little red book of answers for HR managers Naomi Simson
This pocket size book gives you a quick glance as to why employee engagement is so important - and why happy people = happy profits.
After all it is okay to have fun at work.
Misunderstood Millenials: How the Newest Workforce is Evolving BusinessAmanda Knowlton
• What Millennials value most in the workplace (hint: it’s not ping-pong tables)
• Why culture significantly affects Millennials’ decisions about where they work
• Ways you can engage this new workforce at your own organization
Informe PwC: Encuesta Mundial de Innovación 2013PwC España
Informe basado en la Encuesta Mundial de Innovación realizada por PwC en todo el mundo a 1757 ejecutivs de empresas de más de 25 países en todo el mundo.
My slides for a course on Strategic Doing for the Economic Development Institute. I teach the fundamentals of strategic doing in an advanced strategy lab.
This Report answers questions on the makings of a modern day Tech CFO - the career paths, their personalities and the insights they use.
CFOs are the first line of defense from potential financial adversity.
They can also be the asset that allows companies to really expand their horizons rapidly.
Today, the CFO is a connector – the bridge between business, data & goals.
Yet, so little is spoken about these enablers.
So, we decided to shift the spotlight onto them.
What this report focuses on could address questions like:
who are they?
what is their education arc?
how has their career graph been?
what insights do we have about their personality style?
what makes them tick & what ticks them off?
when faced with rapid momentum, do they fight/ take flight?
Hope you get some answers to questions you have had in a while. If you want to ask me something or explore assistance as a CFO, please feel free to hit us up at connect@prequate.in.
Presentation highlights the importance of intrapreneurship and corporate entrepreneurship for companies seeking organic growth. It reviews how a top-down and a bottom-up approach must be planned to ensure sustainable long-term success. Provides several examples of companies successful at intrapreneurship (corporate entrepreneurship) and some key success factors.
Is Leadership Development Worth the Investment?Wiley
Is leadership development worth the investment? Studies show that leadership development yields results in financial performance, talent attraction and retention, organizational agility, and employee productivity.
Get started today: http://bit.ly/WileyLeadershipChallenge
Our annual report finds significant numbers of startups continue to have no women in leadership, yet a growing percentage have programs in place to change that.
How to turn your Social Collaboration initiative into a success and into an enabler of strategic value? By having a look at the challenges, best practices and recommended strategies collected with the Social Collaboration Survey, a free quantitative study conducted by Emanuele Quintarelli and Stefano Besana on 300 organizations at the end of 2013.
Turning the Social Enterprise into a strategic initiative based on the Social Collaboration Survey 2013 results (http://www.socialcollaborationsurvey.it)
#CultureCode The little red book of answers for HR managers Naomi Simson
This pocket size book gives you a quick glance as to why employee engagement is so important - and why happy people = happy profits.
After all it is okay to have fun at work.
Misunderstood Millenials: How the Newest Workforce is Evolving BusinessAmanda Knowlton
• What Millennials value most in the workplace (hint: it’s not ping-pong tables)
• Why culture significantly affects Millennials’ decisions about where they work
• Ways you can engage this new workforce at your own organization
Informe PwC: Encuesta Mundial de Innovación 2013PwC España
Informe basado en la Encuesta Mundial de Innovación realizada por PwC en todo el mundo a 1757 ejecutivs de empresas de más de 25 países en todo el mundo.
pwc.to/1b4fZV1
Nous avons demandé à plus de 1700 cadres à travers le monde ce qu'ils considéraient comme la place de l'innovation au sein de leur entreprise et comment ils la voyaient évoluer au cours des cinq prochaines années.
Au cours des 3 dernières années, les innovateurs leaders ont progressé a un niveau 16 % plus élevé que les moins innovants.
Technology and behavior megatrends are reshaping business globally. To advance and grow, organizations need new ways to connect to both employees and customers, because old paradigms are costly.
Today’s treasurer faces a turbulent reality, they must drive cost containment, become a catalyst for digital transformation and adopt new talent models. In this session we will discuss the impact and opportunities those realities create for treasury departments and explore how treasury can evolve to drive value to the enterprise.
Enterprise growth during turbulent timesIliya Rybchin
Corporate Venture Capital offers the most direct path to strategic and financial rewards from new business models, emerging technologies and disruptive innovation.
The COVID-19 crisis has driven the world toward global financial turmoil — forcing CEOs and CFOs to urgently address the immediate financial challenges resulting from this pandemic.
However, forward-looking CEOs and CFOs should use this opportunity to make critical investments through corporate venture capital (CVC) to set up their companies for long-term success and secure their company’s future.
UE Startups -- 9 Factors in Raising Funding in Silicon ValleyPeter Szymanski
9 Factors Silicon Valley investors consider for European startups, how to choose an angel or venture capital investor, and market trends that support growing a startup outside the USA.
Long-term trends, driven by public policy and exponential rates of change in digital infrastructure, are fundamentally altering the global business environment. In this disruptive environment, family businesses need to challenge themselves – and this is an important responsibility for the next generation of family business leaders.
Every industry has examples of entrenched and successful incumbents who were simply blind-sided by changes in their business. There are just as many examples of entrepreneurs who were undone by a lack of awareness of their competitive position. How do leaders recognize typical blindspots and what can they do to put in place structures and mechanisms to mitigate them?
PwC's 18th Annual Global CEO Survey 2015: Exploring the importance of technol...James Woodworth
Rethinking the business you’re in
We live in an era of unprecedented digital change – the type of change that’s reshaping the relationship between customers and companies, breaking down the walls between industry sectors and, by extension, prompting forward-thinking CEOs to question the very business they’re in.
Watch this short video to hear about what CEOs had to say on the global economic outlook and their own growth prospects for the months and
One year ago business leaders’ feelings towards growth were sombre across the globe. A year later, and while Australian CEOs are feeling mildly more up-beat than their global peers, significant concerns still remain.
This year, we asked executives about their thoughts across key issues including partnerships, digital, talent and diversity, growth, capabilities, tax and regulation.
There is a dichotomy of perspectives across the board – with CEOs seeing as many threats to their business today as there are opportunities.
Maximizing ROI for Corporate Innovation Sean Ammirati
My presentation at the 2018 IO Summit in Lincoln, NE. How can companies maximize their return on corporate innovation investments? (1) Stop using the wrong valuation calculations and (2) Don't copy the wrong things from traditional startups.
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...DanBrown980551
Do you want to learn how to model and simulate an electrical network from scratch in under an hour?
Then welcome to this PowSyBl workshop, hosted by Rte, the French Transmission System Operator (TSO)!
During the webinar, you will discover the PowSyBl ecosystem as well as handle and study an electrical network through an interactive Python notebook.
PowSyBl is an open source project hosted by LF Energy, which offers a comprehensive set of features for electrical grid modelling and simulation. Among other advanced features, PowSyBl provides:
- A fully editable and extendable library for grid component modelling;
- Visualization tools to display your network;
- Grid simulation tools, such as power flows, security analyses (with or without remedial actions) and sensitivity analyses;
The framework is mostly written in Java, with a Python binding so that Python developers can access PowSyBl functionalities as well.
What you will learn during the webinar:
- For beginners: discover PowSyBl's functionalities through a quick general presentation and the notebook, without needing any expert coding skills;
- For advanced developers: master the skills to efficiently apply PowSyBl functionalities to your real-world scenarios.
Transcript: Selling digital books in 2024: Insights from industry leaders - T...BookNet Canada
The publishing industry has been selling digital audiobooks and ebooks for over a decade and has found its groove. What’s changed? What has stayed the same? Where do we go from here? Join a group of leading sales peers from across the industry for a conversation about the lessons learned since the popularization of digital books, best practices, digital book supply chain management, and more.
Link to video recording: https://bnctechforum.ca/sessions/selling-digital-books-in-2024-insights-from-industry-leaders/
Presented by BookNet Canada on May 28, 2024, with support from the Department of Canadian Heritage.
Kubernetes & AI - Beauty and the Beast !?! @KCD Istanbul 2024Tobias Schneck
As AI technology is pushing into IT I was wondering myself, as an “infrastructure container kubernetes guy”, how get this fancy AI technology get managed from an infrastructure operational view? Is it possible to apply our lovely cloud native principals as well? What benefit’s both technologies could bring to each other?
Let me take this questions and provide you a short journey through existing deployment models and use cases for AI software. On practical examples, we discuss what cloud/on-premise strategy we may need for applying it to our own infrastructure to get it to work from an enterprise perspective. I want to give an overview about infrastructure requirements and technologies, what could be beneficial or limiting your AI use cases in an enterprise environment. An interactive Demo will give you some insides, what approaches I got already working for real.
Neuro-symbolic is not enough, we need neuro-*semantic*Frank van Harmelen
Neuro-symbolic (NeSy) AI is on the rise. However, simply machine learning on just any symbolic structure is not sufficient to really harvest the gains of NeSy. These will only be gained when the symbolic structures have an actual semantics. I give an operational definition of semantics as “predictable inference”.
All of this illustrated with link prediction over knowledge graphs, but the argument is general.
UiPath Test Automation using UiPath Test Suite series, part 4DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 4. In this session, we will cover Test Manager overview along with SAP heatmap.
The UiPath Test Manager overview with SAP heatmap webinar offers a concise yet comprehensive exploration of the role of a Test Manager within SAP environments, coupled with the utilization of heatmaps for effective testing strategies.
Participants will gain insights into the responsibilities, challenges, and best practices associated with test management in SAP projects. Additionally, the webinar delves into the significance of heatmaps as a visual aid for identifying testing priorities, areas of risk, and resource allocation within SAP landscapes. Through this session, attendees can expect to enhance their understanding of test management principles while learning practical approaches to optimize testing processes in SAP environments using heatmap visualization techniques
What will you get from this session?
1. Insights into SAP testing best practices
2. Heatmap utilization for testing
3. Optimization of testing processes
4. Demo
Topics covered:
Execution from the test manager
Orchestrator execution result
Defect reporting
SAP heatmap example with demo
Speaker:
Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
Dev Dives: Train smarter, not harder – active learning and UiPath LLMs for do...UiPathCommunity
💥 Speed, accuracy, and scaling – discover the superpowers of GenAI in action with UiPath Document Understanding and Communications Mining™:
See how to accelerate model training and optimize model performance with active learning
Learn about the latest enhancements to out-of-the-box document processing – with little to no training required
Get an exclusive demo of the new family of UiPath LLMs – GenAI models specialized for processing different types of documents and messages
This is a hands-on session specifically designed for automation developers and AI enthusiasts seeking to enhance their knowledge in leveraging the latest intelligent document processing capabilities offered by UiPath.
Speakers:
👨🏫 Andras Palfi, Senior Product Manager, UiPath
👩🏫 Lenka Dulovicova, Product Program Manager, UiPath
Slack (or Teams) Automation for Bonterra Impact Management (fka Social Soluti...Jeffrey Haguewood
Sidekick Solutions uses Bonterra Impact Management (fka Social Solutions Apricot) and automation solutions to integrate data for business workflows.
We believe integration and automation are essential to user experience and the promise of efficient work through technology. Automation is the critical ingredient to realizing that full vision. We develop integration products and services for Bonterra Case Management software to support the deployment of automations for a variety of use cases.
This video focuses on the notifications, alerts, and approval requests using Slack for Bonterra Impact Management. The solutions covered in this webinar can also be deployed for Microsoft Teams.
Interested in deploying notification automations for Bonterra Impact Management? Contact us at sales@sidekicksolutionsllc.com to discuss next steps.
"Impact of front-end architecture on development cost", Viktor TurskyiFwdays
I have heard many times that architecture is not important for the front-end. Also, many times I have seen how developers implement features on the front-end just following the standard rules for a framework and think that this is enough to successfully launch the project, and then the project fails. How to prevent this and what approach to choose? I have launched dozens of complex projects and during the talk we will analyze which approaches have worked for me and which have not.
Search and Society: Reimagining Information Access for Radical FuturesBhaskar Mitra
The field of Information retrieval (IR) is currently undergoing a transformative shift, at least partly due to the emerging applications of generative AI to information access. In this talk, we will deliberate on the sociotechnical implications of generative AI for information access. We will argue that there is both a critical necessity and an exciting opportunity for the IR community to re-center our research agendas on societal needs while dismantling the artificial separation between the work on fairness, accountability, transparency, and ethics in IR and the rest of IR research. Instead of adopting a reactionary strategy of trying to mitigate potential social harms from emerging technologies, the community should aim to proactively set the research agenda for the kinds of systems we should build inspired by diverse explicitly stated sociotechnical imaginaries. The sociotechnical imaginaries that underpin the design and development of information access technologies needs to be explicitly articulated, and we need to develop theories of change in context of these diverse perspectives. Our guiding future imaginaries must be informed by other academic fields, such as democratic theory and critical theory, and should be co-developed with social science scholars, legal scholars, civil rights and social justice activists, and artists, among others.
Software Delivery At the Speed of AI: Inflectra Invests In AI-Powered QualityInflectra
In this insightful webinar, Inflectra explores how artificial intelligence (AI) is transforming software development and testing. Discover how AI-powered tools are revolutionizing every stage of the software development lifecycle (SDLC), from design and prototyping to testing, deployment, and monitoring.
Learn about:
• The Future of Testing: How AI is shifting testing towards verification, analysis, and higher-level skills, while reducing repetitive tasks.
• Test Automation: How AI-powered test case generation, optimization, and self-healing tests are making testing more efficient and effective.
• Visual Testing: Explore the emerging capabilities of AI in visual testing and how it's set to revolutionize UI verification.
• Inflectra's AI Solutions: See demonstrations of Inflectra's cutting-edge AI tools like the ChatGPT plugin and Azure Open AI platform, designed to streamline your testing process.
Whether you're a developer, tester, or QA professional, this webinar will give you valuable insights into how AI is shaping the future of software delivery.
PHP Frameworks: I want to break free (IPC Berlin 2024)Ralf Eggert
In this presentation, we examine the challenges and limitations of relying too heavily on PHP frameworks in web development. We discuss the history of PHP and its frameworks to understand how this dependence has evolved. The focus will be on providing concrete tips and strategies to reduce reliance on these frameworks, based on real-world examples and practical considerations. The goal is to equip developers with the skills and knowledge to create more flexible and future-proof web applications. We'll explore the importance of maintaining autonomy in a rapidly changing tech landscape and how to make informed decisions in PHP development.
This talk is aimed at encouraging a more independent approach to using PHP frameworks, moving towards a more flexible and future-proof approach to PHP development.
PHP Frameworks: I want to break free (IPC Berlin 2024)
Snef CEO-Keynote Presentation
1. Page 1 How can you be both the disruptor and the disrupted?
2. The better the question. The better the answer.
The better the world works.
How can you be both
the disruptor and
the disrupted?
The CEO imperative: in this Digital Age,
seize the upside of disruption or be
disrupted
3. Page 4 How can you be both the disruptor and the disrupted?
Digital disruption represents a threat to all industries…
2 billion
Jobs will be
displaced by 2030
as a result of
technology advances
20
Years to catch up
with the cyber-
security skills
shortage
29%
Unilever’s CMO estimated rate
of click fraud, prompting a claim
that the industry was wasting
$8–10bn per year on fake clicks
4%
Of Global Group Turnover.
Maximum fine for a data
privacy breach in the
European Union
75%
At the current run rate
75% of companies in
the S&P 500 will be
new entrants by 2027
4. Page 5 How can you be both the disruptor and the disrupted?
Those that seize the upside will see opportunities…
25–50%
the typical cost
savings from RPA
enabling automation
24x7x365
4 years
for Airbnb to reach
the same inventory
level as Hilton Hotels
built in 93 years
35%
of new P&G products
come from outside the
company via it’s open
Innovation approach
5 days
for a drone to capture
and analyse more
data than a traditional
“rope lift” team can do
in 8 weeks
$19 trillion
in profits and cost
savings coming from
the Internet of Things
over the next decade.
$6.5 billion
Predictive analytics software for
machine-learning applications is
expected to reach $6.5 billion
worldwide in 2019
5. Page 6 How can you be both the disruptor and the disrupted?
The dynamics of disruption readiness and transformation
In a recent multi-part research study, we explored the dynamics
of disruptive challenge and transformation, engaging both
leading CEOs and institutional investors globally, we asked two
fundamental questions:
Survey background
► Approximately 67 hours
interviewing the CEOs of 101
of the world’s 5,000 largest
companies ranked by
revenue.
► Online survey of 100 senior
institutional investors
worldwide, representing firms
with at least US$1b of assets
under management.
How ready are the world’s largest
corporations to seize the upside of
disruption?
How do institutional investors value
disruption readiness?
1
2
6. Page 7 How can you be both the disruptor and the disrupted?
Our survey reveals major challenges in digital transformation
Disruption readiness
1
Three levels of
disruption activation2
A dual path forward
3
► 50% of CEO surveyed suggest that
their companies have not
implemented an adequate
response to disruption — putting
market leadership and
capitalization at risk
► Real readiness levels are
much lower than this overall
self-assessment, as measured by
specific initiatives undertaken and
scores across different
organizational dimensions
► Least disruption-ready companies
assign themselves the highest
overall scores
► Tension between the need to drive
the current business and investing
in future disruption.
► Every successful business now
needs to consider how to become
skilled at both initiating and
responding to disruption.
► Shift the organizational mindset
from doing to being.
► “Re-strategy” — frequently revisit
the plan, re-design the future, and
re-pilot concepts.
Caterpillars
The majority of companies, staying
the course and exploiting existing
success
Chrysalises
A smaller group, undertaking
transformation to exploit digital and
foster a culture of innovation
Butterflies
The smallest group, transformed
and embracing the ethos of being
disruptive rather than just doing
innovation.
7. Page 8 How can you be both the disruptor and the disrupted?
A significant digital gulf exists between CEOs & Investors
CEO perception vs. investor reality
73%
of institutional investors say that corporate disruption
readiness will become a more important investment
decision-making factor over the next five years.
67%
of investors want companies to undertake potentially
disruptive innovation projects even if they are risky and may
not deliver short-term returns.
55% of institutional investors say they think companies should
invest in exploring potentially disruptive business models.
8. Page 9 How can you be both the disruptor and the disrupted?
Ready? Not ready
9. Page 10 How can you be both the disruptor and the disrupted?
Overall readiness
Half are not well prepared to seize the upside of disruption
People think they have two to three years to prepare for this but disruption is here and now
— CEO survey respondent“
Overall organizational readiness to take advantage of
opportunities from disruptive change
(0 — Very poorly prepared, 10 — Very well prepared)
10. Page 11 How can you be both the disruptor and the disrupted?
Empowering leadership
Leaders have trouble walking the talk
Everyone is watching to see if we are serious about this, so they will watch our actions and our words to see what we do
when things go wrong, where we invest and what our attitude is.
— CEO survey respondent
“
[0 Very poor 10 Very good]
N.B. Totals may not equal 100% due
to rounding; categories less than 2% not labelled
11. Page 12 How can you be both the disruptor and the disrupted?
Corporate culture
Gap between cultural values and real risk-taking
I don’t see how you have a sustainable platform for growth if you don’t have a culture that is open and receptive to the
challenge in front of you.
— CEO survey respondent
“
[0 Very poor 10 Very good]
N.B. Totals may not equal 100% due
to rounding; categories less than 2% not labelled
12. Page 13 How can you be both the disruptor and the disrupted?
Innovation practices and capabilities
Innovation activation falters as the need for organizational change increases
We have consciously targeted people from organizations that have already changed with disruption. Advantages and
results: there is no history that people will take into account when developing new ideas.
— CEO survey respondent
“
[0 Very poor 10 Very good]
N.B. Totals may not equal 100% due
to rounding; categories less than 2% not labelled
13. Page 14 How can you be both the disruptor and the disrupted?
External awareness and collaboration
Assessing weak signals and investing in startups most challenging
Big businesses are fairly good at solving problems they are aware of. They're not very good at solving problems they are
not naturally aware of.
— CEO survey respondent
“
[0 Very poor 10 Very good]
N.B. Totals may not equal 100% due
to rounding; categories less than 2% not labelled
14. Page 15 How can you be both the disruptor and the disrupted?
Theater of innovation
Disruption readiness activation initiatives undertaken
84%
80%
78%
68%
62%
58%
53%
49%
46%
30%
24%
64%
Variety of functions/levels input on innovation
Academic/incubator relationships
Innovation is a part of every employee’s job
Invest in new ways to gather customer data
Employee incentives for disruptive ideas
Partnered with a outside your industry
Separate governance to facilitate innovation
Employees given time away to innovate
Committing to moonshots
Specific unit to monitor disruptive trends
Seconded employees outside your business
Corporate venturing program
15. Page 16 How can you be both the disruptor and the disrupted?
Dichotomy between
butterflies and
caterpillars
16. Page 17 How can you be both the disruptor and the disrupted?
Caterpillars, chrysalises and butterflies
Urgency/transformation:
Caterpillars, Chrysalises, Butterflies
Caterpillars Least ready, most confident
► Exploiting success of the current business model
► Little urgency related to disruption
► Trail in 20 of 29 individual readiness measures
► Assigned themselves highest scores for overall disruption readiness (a median of 7)
Chrysalises Undertaking a transformation
► Disruption-aware
► Creating a culture of innovation, diversifying talent base and embracing the digital
enterprise
► Lead or tie in 12 of 29 readiness measures; median overall readiness score of 6.
Butterflies Ethos of being disruptive
► Internalized the urgency of disruption
► Overcame the inertia of success to transform
► Ethos of being disruptive rather than doing innovation
► Lead or tie in 20 of 29 readiness measures; median overall readiness score of 6
17. Page 18 How can you be both the disruptor and the disrupted?
The dynamics of disruption readiness and transformation
Chrysalises ButterfliesCaterpillars
20%
Generating new revenue
sources
17%
60%
70%
47%
Balanced
Optimizing current
business model revenues
Very/fairly frequent board
discussion of disruption
issues
CEO is disruption
readiness owner
Corporatepriorities
26%
Generating new revenue
sources
22%
52%
83%
52%
Balanced
Optimizing current
business model revenues
Very/fairly frequent board
discussion
CEO owns disruption
agenda
50%
Generating new revenue
sources
28%
22%
94%
78%
Balanced
Optimizing current
business model revenues
Very/fairly frequent board
discussion
CEO owns disruption
agenda
18. Page 19 How can you be both the disruptor and the disrupted?
Embrace the
concept of duality
19. Page 20 How can you be both the disruptor and the disrupted?
Dilemma and duality
► CEOs struggle balance the need to
pursue sustaining innovations (doing
everything right in the near term in
existing markets) that drive current
revenues rather than investments in
disruptive innovations.
► Addressing the tension of the Innovator’s
Dilemma requires embracing duality.
Innovator’s dilemma
The challenge is that the company has been very
successful with the current portfolio. So there is going to
be a fair amount of inertia … why should we change
when we have this great history of success?
— CEO survey respondent
“
20. Page 21 How can you be both the disruptor and the disrupted?
Dilemma and duality (continued)
► The co-existence of imperatives that are
in contrast or conflict with each other but
together make up two essential parts of
the total system or outcome.
► In the accelerated digital economy
imperatives must be addressed not
only simultaneously, but strategy must
encompass both short-term and
long-term, and the interactions in
between.
► Strategy must encompass both
short-term and long-term, and the
interactions in between.
Duality
We have instituted a process of formal scenario
planning looking out into the future ... It has been
hugely informative to the development of our purpose-
driven strategy, which is what we are looking to use to
combat or prepare for the (disruptive) changes.
— CEO survey respondent
“
21. Page 22 How can you be both the disruptor and the disrupted?
How our participating CEO explained duality
We look at this as a ‘here and now’ and a
‘tomorrow into the future.’ And the trade-offs
for the short-term and the long-term have to
live together. It’s not an ‘either or.’ It is
necessary to be able to do both at the
same time.”
— CEO survey respondent
“ We have a middle as well as long-term plan
which is connected to a strategy process, so
that we can keep an eye on the complexity
of the whole,” another respondent
explained.”
— CEO survey respondent
“
22. Page 23 How can you be both the disruptor and the disrupted?
Who should own the disruption agenda?
CEOs should own the drive for disruption activation and transformation
CEO as owner of the corporate disruption agenda
78%
52%
47%
54%
Butterflies
Chrysalises
Caterpillars
All
23. Page 24 How can you be both the disruptor and the disrupted?
CEOs versus investors, perception versus reality
46% Boards are responding effectively to disruption
Institutionalinvestors
CEOs
78% Disruption frequently discussed at board meetings
67%
Companies should undertake potentially disruptive
innovation projects even if they are risky and may not deliver
short-term returns
55% Companies should invest in exploring potentially disruptive
business models 52% Focused on optimizing revenues from the current
business model
New business models
2nd ranked disruptive factor
Customer 4th ranked
disruptive factor
Customer 2nd ranked
disruptive factor
New business models
4th ranked disruptive factor
Mean
5.8/10
readiness score for investing in such disruptive innovation projects
Mean
5.6/10
readiness score for internal risk capital availability
Mean
4.7/10
readiness score for investing in start-ups to understand new
technologies and business models
Mean
5.5/10
readiness score for identifying weak signals of disruption
55%
Disruptive business models expected from
outside the sector 69% inside the sector
24. Page 25 How can you be both the disruptor and the disrupted?
Ten actions to activate disruption readiness
Instill urgency about disruption to
overcome inertia in the organization
and set a leadership example of
experimentation and risk taking —
i.e., “walk the talk.”
Own the disruption agenda as
the CEO.
Engage with key investors
to discuss disruption and
assess appetite and attitude
towards investing in
innovation.
Align the C-Suite and board of
directors to a shared ambition for
disruption
“Re-strategy” — frequently revisit
the plan, re-design the future, and
re-pilot concepts.
Ask, what part of my business is
already dead?
Harness digital by embedding it
across the entire value chain.
1 2 3
4 5
Avoid
“innovation
theater.”
7
8 9 10
6
Develop ecosystems, networks
and innovative formats for
collaboration to enable duality
within & without.
Find your innovators
& change champions,
bring them together,
empower them &
fund them.
25. Page 28 How can you be both the disruptor and the disrupted?
Generated by
the EY think tank, EYQ
EYQ is EY’s think tank exploring, “What’s after what’s next?”
The companies that survive and thrive during seismic disruption are
those that quickly sense and best respond to change.
The question “What’s after what’s next?” is key in mastering the
tomorrow’s demands while strategizing for challenges beyond the
horizon.
EYQ is dedicated to …
► Convening business leaders, public sector experts, researchers and academics.
► Creating innovative content and unique experiences to challenge
preconceptions, shift perceptions and catalyze innovation.
► Connecting people and ideas in ways that are thought provoking, barrier
breaking and future shaping.
By exploring “What’s after what’s next?” EYQ helps its audiences
anticipate the forces shaping our future — empowering them to seize
the upside of disruption and build a better working world.
Learn more at ey.com/EYQ.
Editor's Notes
Play video after introduction as Will walks to the stage.
What a great video, hey ? Scary stats, futuristic visuals, pumping music … every consulting and tech firm has to have one of these videos, right ?
How many leaders here are tired of videos like this, telling us that the world as we know it is about to change ?
Who’s is tired of this “digital disruption scaremongering” ?
I’ve been showing these types of videos for maybe 15 or 20 years … if CEOs had believed every prophecy they’d have reimagined their entire business around Artificial Intelligence in the late 80s (and here we are again), they’d have restructured their entire supply chain and retail experience around RFID in the early 2000s.
So why is today different ? Why should CEOs listen to consultants who talk about digital disruption ?
The truth is that today IS different … this is not the first wave of digital disruption but rather a third distinct wave ….
The first wave involved “digital orchestrators of digitised assets” … media companies, news, music labels, film companies were all disintermediated by platforms companies who could package & distribute their content in more compelling & convenient ways to the consumer. Just last week Best Buy in the US announced they would finally stop selling physical CDs. Kodak saw a digital
Future but famously failed to execute. iTunes took music, Netflix, Hulu & Co took TV & film.
The second wave has involved “Digital Orchestrators of Physical/Analog Assets” … digital platform companies providing new experiences and new business models to orchestrate & share assets. Uber and AirBnB being obvious examples.
We are now in the third wave of disruption … digital orchestrators become industry convergers and agile aggregators. Their organizational abilities across innovation, leadership, culture, ecosystem and engagement become their core value proposition, not their legacy products and services.
- Amazon become the largest cloud infrastructure provider through their ability to run a global online bookstore 24x7 and are now taking on the global supermarket chains through the supply chain efficiencies they built.
- As we will hear soon, we live in a world where a social network can become a major bank in Korea in just weeks,
- We live in a world where Australia’s $50bn ongoing investment in fixed broadband rollout could be overtaken by Singtel Optus last week announcing fixed 5G services by 2019.
This is both CEO dilemma and a CEO imperative … it is essential that CEOs recognize this third wave of disruption and prepare to seize the upside of disruption or be disrupted.
Hidden – not for presentation. Only include for printing and distribution.
It is clear that digital disruption is a threat to many incumbent organisations … we’ve seen organisations disappear as they have failed to predict previous waves and respond accordingly, Kodak and Nokia being clichéd examples. Famously Kodak saw the future of digital photography but lacked the commitment, culture or leadership to disrupt themselves. But this is not just Kodak … all organisations face a threat to their growth and existence – just as the S&P 500 has churned over the last twenty years, the next 9 years along will see 75% of the 500 be replaced at current course and speed.
In a world where organisations face a fine of 4% of their turnover for a privacy breach … and that’s if they survive unlike others before them from dating sites to credit scoring agencies …. but we also face a twenty year gap in cyber skills, how do CEOs handle the threat of disruption ?
However the upside of disruption will be significant for some … and not just for entrants such as Netflix and Uber.
P&G source 35% of their new products from outside their organization
Those engaging in RPA at scale stand to realise 25% to 50% cost savings
It’s easy to forget that Netflix themselves have been disrupted … remember that they started twenty years ago as an online distributor of physical media (DVDs) to distrupt the Blockbuster brick-and-mortar video store ? Well Netflix disrupted themselves to become a digital distributor through streaming and disrupted again to be a producer of content, not just the distributor. What next ?
I mentioned the Korean social network earlier … has anyone heard of Kakao ? They are Korea’s dominant messaging platform with a staggering 95% market share and had a hunch that banking meant more to many as a convenient experience and they saw little differentiation between products. Launching a mobile-only bank in 2017 without even a web platform, they took market not just amongst millennials but also with the middle aged & affluent markets. Within a few months they had taken a staggering six million customers with $2bn in deposits and $2bn in loans.
The pace and scale of disruption are creating opportunity with unprecedented speed.
New agile, digitally-enabled companies quickly scale and compete effectively with industry incumbents. They enjoy radical growth and competitive advantage in a global digital world. This upside is available not only to start-ups. Incumbents, too, can disrupt their markets.
In a recent multi-part research study, we explored the dynamics of disruptive challenge and transformation, engaging both leading CEOs and institutional investors globally. We asked two fundamental questions:
1. How ready are the world’s largest corporations to seize the upside of disruption?
Approximately 67 hours interviewing the CEOs of 101 of the world’s 5,000 largest companies ranked by revenue. We probed how well their companies are activating the four organizational dimensions of disruption readiness:
Empowering leadership
Corporate culture
Innovation practices and capabilities
External awareness and collaboration capabilities
2. How do institutional investors value disruption readiness?
Our online survey of 100 senior institutional investors worldwide, representing firms with at least US$1b of assets under management, tested the conventional wisdom that investors do not support long-term, potentially risky innovation initiatives that may not pay off in the short term.
Disruption readiness
50% of our CEO respondents indicate that their companies are not well prepared to take advantage of the opportunities that may emerge from disruptive change.
Real readiness levels are much lower than this overall self-assessment, as measured by specific initiatives undertaken and scores for organizational dimensions in leadership, culture, innovation and external awareness.
The least disruption-ready companies give themselves the highest overall scores, indicating a lack of awareness of the disruptive challenge.
Three levels of disruption activation
Through the verbatim responses and self-assessment scores of the CEO participants, EY distinguishes three levels of disruption activation:
Butterfly companies have undergone an enterprise transformation in response to urgent external factors, emerging with new capabilities to drive growth and competitiveness in a digital world.
Chrysalis companies feel the urgency of disruption and have initiated significant transformation steps toward disruption readiness.
Caterpillar companies, in contrast, do not feel the urgency of disruption, trail in readiness metrics and focus on optimizing the success of the current business model.
Dual path
Participating CEOs express the tension between the need to drive the current business and investing in future disruption. This duality — the co-existence of essential but conflicting
imperatives — underscores the need for a new approach. In the connected and accelerated digital economy companies must address imperatives not only simultaneously, but together.
CEOs have a perception that institutional investors are averse to any investments that could detract from immediate returns. Yet, our global investor survey shows that institutional investors support disruption activation.
73% of investors say that disruption readiness will impact their investment decision making over the next five years
67% are looking for long-term innovation investment aligned to purpose
There are gaps between CEOs and Investors … CEOS think technology innovation, Investors think business model innovation. CEOS think customer-centricity, Investors think future-back innovation.
Disruptors create business models for unknown futures 7 establish entirely new kinds of products, services and markets.
SMS was created as a simple network diagnostic tool by Irish telco workers … quickly it became a major revenue stream for every telco for messaging, ring tones and more. This was disrupted by IP messaging apps such and the telcos’ momentary revenue stream was gone … when WhatsApp was bought by Facebook for $19bn it represented a third of the market cap of Australia’s largest telco, Telstra, despite owning no network, no infrastructure, no billing platforms, no stores, just a platform. Of course these platforms continue to disrupt themselves as we see WeChat and others dominate in messaging, commerce and payments in their markets.
Our study’s substantive CEO interviews, approximately 67 hours in total, gathered both quantitative assessments of organizational attributes in the form of ratings, as well as qualitative verbatim inputs.
The interviews explored overall readiness to take advantage of opportunities arising from disruptive change as well as detailed dimensions of leadership, culture, innovation practices and external awareness.
What we learned is that in terms of overall readiness, half of the CEO respondents thought that their companies were prepared or very prepared to take advantage of the opportunities that may emerge from disruptive change. However, that leaves half who are not prepared … and half who may not know it.
This overall 50/50 split in disruption readiness begins to unravel as we probe specific aspects of readiness in four organizational dimensions:
Enabling leadership
Corporate culture
Innovation practices and capabilities
External awareness and collaboration.
Overall, CEOs score leadership attributes most highly.
In areas related to communication, openness, and listening — close to 70% of respondents assign their companies’ a good or very good rating.
CEOs assign the lowest scores for setting an internal example of encouraging experimentation and risk taking.
This “walking the talk” is most difficult because leaders live the tension between balancing revenues with innovation that will drive real change and achieve the right business outcomes.
Old operating models no longer apply and one could argue neither does the old management model. Today’s management teams need to be open to “new thinkers” who understand where their organizations fit within the ecosystem that is driven by customer expectation for frictionless service and experiences.
Are you truly investing in innovation ?
Are employees empowered to drive their ideas with time and with funding ?
Is risk taking celebrated ?
In assessing specific dimensions of their corporate culture, CEOs assign mostly high scores (see above Figure). CEOs surveyed indicate that culture is top of mind and that they are devoting considerable effort to shift culture.
The notable exceptions are the scores for investing in exploratory, long-term ROI projects that may not deliver a short-term return — only 43% give themselves a good or better rating in this disruption readiness attribute.
This suggests that despite the work underway on culture change, there is still a gap in translating innovation cultural values into real risk taking and change from business as usual.
A key part of cultural transformation is developing a culture of yes that enables agile decision-making — can a great idea be moved forward as the result of a 30-minute meeting? So is being customer obsessed and understanding what is working for their customers and what’s not. Companies need to know each segment (millennial, baby boomers, etc.), both for B2C and B2B. Inherent in this customer obsession is focusing on end to end experiences, driving new capabilities and technology decisions based on creating better experiences for customers.
Do you have a “yes” culture ?
Do you have a “why not?” rather than “why?” culture ?
How long does it take to get from the first idea to the first dollar spent ?
Who owns “innovation” ? Is this integrated ?
Is customer centricity appropriate for your business ?
Leap In! example of customer centricity … listening to the customer and shaping your strategy. Being bold.
Activating disruptive innovation attributes requires acquiring the right talent, establishing an enabling governance structure and making real organizational change.
Innovation leverages technology to create new operating models, products and services, while taking into account the associated process changes, the financial and tax implications as well as the people and culture implications.
Making internal risk capital available and developing autonomous innovation units represent the weakest areas in terms of activating innovation readiness, with only 39% and 31% of CEOs, respectively, assigning a good or better rating.
This is perhaps to be expected, since risk capital allocations need to be cleared with the board and explained to investors. Creating autonomous innovation units requires adjusting the landscape of the many functions and business units that own some dimension of innovation.
Do you have the talent you need ?
Do you have talent across tech/data/design ? Every company is now a tech/data/design company.
How do you bring in people who’ve been there before ?
Does the CEO need to appoint a CIO/CTO/CDO to drive this ? Will that just isolate innovation or can the CEO still champion innovation ?
The external awareness and collaboration attributes — bringing the outside in — receive some of the lowest CEO ratings.
This dimension of disruption readiness demands that CEOs reach beyond the boundaries of the organization and their comfort zone.
It also requires a significant investment in time and resources to look ahead toward an uncertain future when most organizations are focused on activities with certain and immediate returns.
Only 36% of CEOs give themselves a good or better rating for identifying and assessing weak signals that could serve as signs of new trends.
And only 33% gave their companies a good or better rating for investing in start-ups to gain a view of new technologies and business models.
Research and observation is strong.
Collaboration is weak
Are you able to react to weak signals and new trends ?
Are you investing meaningfully in startups or is it more for show or marketing ?
The pressure to demonstrate a response to disruptive factors, and to pursue related goals such as attracting and retaining talent, sometimes gives rise to the “theater of innovation” — creating high visibility initiatives without making them part of a comprehensive enterprise-wide innovation strategy.
We found this tension at play when we queried CEOs on 12 indicators of disruption readiness activation.
Uptake is highest for the activities that require the least flex from business as usual (e.g., having a variety of functions and seniority levels give input on innovation initiatives).
Participation falls off quickly as the need for real investment and real change increases (e.g., establishing a corporate venturing unit).
None of our respondents has pursued all 12 of these disruption activation activities.
If you’re a retailer who has created a Retail Virtual Reality Store pilot … chances are your engaging in the Theatre of Innovation. If you have an Innovation Centre with a drone demo but no drones deployed in your business …. That’s the Theatre of Innovation.
We learned through our CEO interviews that there were important distinctions in terms of disruption awareness, sense of urgency and transformation. Our analysis suggests that the companies fall into one of three categories that we’ve defined as: caterpillars, chrysalises and butterflies. This is resulting in a trifurcation of the market which may be difficult to bridge competitively in the near future … whilst caterpillars are “doing Digital”, chrysalis’ are “transforming digitally” whilst butterflies are “Being Digital” … butterflies can fly.
Caterpillars
Sixty companies comprise the caterpillar category. They are focused mainly on continuing to exploit the success of their current business model. They express little urgency related to disruption and sometimes explicitly discount it.
Many of these companies feel a sense of security because of factors such as lack of prior change, a dominant market position, the regulatory environment and the capital intensity of an industry (e.g., mining, construction, etc.). Improvement initiatives tend to focus on operational agility, bringing enterprise technology to the current benchmark, incremental innovation and enhancing customer responsiveness.
In their CEO’s assessment of specific disruption readiness dimensions, Caterpillars trail in 20 of 29 measures. However, they assign their companies the highest scores for overall disruption readiness — a median value of seven. Caterpillar companies are the least ready but the most confident.
Chrysalises
The 23 chrysalis companies are attempting a metamorphosis. Disruption-aware, they are undertaking a transformation, concentrating on creating a culture of innovation, diversifying their talent base and embracing the digital enterprise. Common themes include:
Shifting from siloed and hierarchical to matrixed organizational structures to enable agile decision making
Overhauling hiring practices to look beyond traditional diversity and toward a diversity in backgrounds as well as an “innovation mindset”
Setting up innovation councils to spark employee creativity
Developing external awareness capabilities to monitor trends in their respective industries and bring the outside in
Exploring emerging disruptive digital technologies
Experimenting with and exploring what one CEO described as a “process of accelerated evolution”
Butterflies
Eighteen companies fit into the butterfly category. They have internalized the urgency of disruption and overcome the inertia of current success to transform their businesses with the goal of seizing the upsides. Their underlying difference is an ethos of being disruptive rather than just doing innovation. They do this by:
Shifting their product and service portfolios and/or overhauling incumbent business models
Creating a culture of being first-mover and seeking to disrupt
Looking beyond their sector to fostering cross-industry and cross-sector partnerships
Transforming the talent model, hiring across industries for cognitive diversity and entrepreneurialism
Creating dedicated innovation units with enabling governance and senior sponsorship
Butterflies are most weighted toward generating new revenue sources, have the most frequent board discussions on disruption issues, and most often the CEO owns the disruption agenda.
In the Innovator’s Dilemma, Harvard professor Clayton Christensen looks at the ways successful companies can seemingly do everything “right” and still somehow lose market leadership — or disappear altogether — in a landscape of fierce competition from new and unexpected market players.
We’re back to Kodak here … they may have had the best films, best papers, best trained network of developers and the best developing tech & chemicals but they were the best at a game that was already over. The failed act on the weak signals they clearly saw.
Our CEO interviews suggest that the horns of this dilemma remain razor sharp. CEOs struggle to balance the need to pursue sustaining innovations (doing everything right in the near term in existing markets) that drive current revenues rather than investments in disruptive innovations that could lay the foundation for long-term survival and a new phase of growth.
Addressing the tension of the Innovator’s Dilemma requires embracing duality.
Many organisations fail to mobilise if the need for change is not palpable … by the time it is, it is often too late. Short CXO tenure in Asia Pacific (typically half that of the US leaders) and the need for quarterly results are a major constraint …. A CEO needs to work with the board to reshape the organization’s purpose for a digital age and lay that out for investors.
We see how tech firms such as IBM are struggling to reinvent themselves, struggling to redefine their purpose in a digital age and align that to the need for quarterly results. The investment market struggles to understand how IBM are building a new business model for sustainable advantage.
Duality is the co-existence of imperatives that are in contrast or conflict with each other but together make up two essential parts of the total system or outcome. In the connected and accelerated digital economy we must address imperatives not only simultaneously, but together.
As a result strategy can be neither long-term nor short-term; an organization’s strategy must encompass both, and the interactions in between.
Thinking and operating in duality can lead to transformative collisions that allow business leaders both respond to disruption and initiate it.
CEOs need to foster “now forward” and “future back” thinking … or “left-to-right” and “right-to-left”. Organisations will need to build leadership and cultures to align this duality either as an integrated firm or often as separate entities.
CEOs need to both make a business better and make a better business.
CEOs need to be bold in balancing this duality of thought & execution, particularly as the potential futures are unknown.
A large automotive client of mine obviously faces technology threats to their existing business … electric vehicles, ride sharing and driverless vehicles are technical and social disruptors. In mapping our their ten year vision we used “future back” thinking to envisage potential future scenarios and business models, plotting the implications for their manufacturing, their marketing, their dealership network, their customer engagement, their revenue streams and potential future annuity models, implications for insurance, fleets, property development and more.
Similarly due to this rise of electric vehicles, petrol retailers face an existential threat to their own business model … most raise 50% to 60% of their revenues through petrol and 15% to 25% through cigarettes. How do they pivot their business model to recognize the end of these revenue streams but capitalize on their physical footprint, potentially becoming the last-mile partner for online retailers ?
Overall, only 54% of CEOs report being the owner the company’s disruption agenda.
For caterpillar companies and chrysalis companies, CEO ownership of the disruption agenda falls to 47% and 52%, respectively.
Butterflies, however, demonstrate much higher levels of CEO ownership — 77%.
CEOs who wish to drive a disruption readiness transformation should own the drive for real organizational change.
If operational pressures become too time-consuming for CEOs, they should look to an existing member of the C-suite — such as the Chief Innovation Officer, Chief Technology Officer or Chief Digital officer — to lead day-to-day disruption readiness with the CEO remaining the ultimate disruption agenda owner.
Do you have a CIO/CTO/CDO ? Do they report to the CEO ?
How do the board play into the disruption agenda ? Do you have the right board ?
CEOs keenly feel the tension between focusing on the disruptive future and running the current business (e.g., managing stakeholders, operations, sales, etc.). It’s a tension exacerbated by the perception that institutional investors are averse to the long-term and potentially risky investments that could detract from immediate returns.
This may explain why 52% of CEOs said that their corporate priorities were weighted toward optimizing revenues from current business models, with only 27% indicating that their corporate priorities skewed toward generating new sources of revenue. At the same time, 64% of CEOs reported spending 25% or less of their time on issues related to disruption.
Yet, based on our survey with institutional investors, this perception does not match reality. In fact, investors appear to embrace a corporate disruption readiness agenda that sees more upsides than risks in disruption:
Investors expect disruptive business models to come from both outside their sector of focus (55%) and from inside the sector (69%).
55% of investors say they think companies should invest in exploring potentially disruptive business models.
67% of investors want companies to undertake potentially disruptive innovation projects even if they are risky and may not deliver short-term returns.
73% of investors say that disruption readiness will become more important to their investment decision-making over the next five years.
Only 46% of investors say that company boards are responding effectively to the opportunities and challenges arising from disruption.
Instill urgency about disruption to overcome inertia in the organization and set a leadership example of experimentation and risk taking — i.e., “walk the talk.”
Own the disruption agenda as the CEO and develop a leadership model that allows you to devote enough attention to disruptive change and opportunities.
Align the C-Suite and board of directors to a shared ambition for disruption to guide the needed investment, governance, link to purpose and message to shareholders.
Engage with key investors to discuss disruption and assess appetite and attitude towards investing in innovation.
Find the change champions in your company, bring them together and then set them free to drive transformation, whether as dedicated teams or embedded in key functions.
Develop ecosystems, networks and innovative formats for collaboration to enable duality not only within the organization but also from the outside in. Venture beyond established hotbeds and listen in edge geographies and adjacent industries to determine what is really threatening or disruptive.
Avoid “innovation theater.” Approach disruption readiness not as project but as an organizational transformation that touches fundamental aspects of culture, purpose, operations and the current business model.
Harness digital by embedding it across the entire value chain, from strategy and design through to execution and the management of risks.
“Re-strategy” — frequently revisit the plan, re-design the future, and re-pilot concepts.
Ask, what part of my business is already dead? Then act on the answer to free up resources for fresh innovation.
Hide for presentation – use to print and distribute.
Hide for presentation – use to print and distribute.