C-suite see Uberisation as the leading competitive threat

Recent global study released by IBM reveals CEOs, CMOs, CFOs, CIOs and other C-suite leaders see industry disruption as major concern

Industry disruption caused by an unlikely competitor and the uberisation of business have become dominant concerns of the c-suite, a global IBM report revealed.

Based on findings from more than 5200 CEOs, CMOs, CFOs, CIOs and other C-suite leaders across 21 industries and more than 70 countries, Redefining Boundaries: Insights from the Global C-suite Study, showed c-suite executives now expect industry convergence to be the primary force impacting their business in the next 3-5 years.

The report also found the highest performing enterprises place greater priority on cognitive capabilities than market-followers.

While the biggest risk to businesses traditionally used to be a new rival with a better or cheaper offering, today, entrenched players are being threatened by new entrants with completely different business models, as well as smaller, more agile players unencumbered by legacy infrastructure.

“The biggest threat is new competitors that aren’t yet classified as competitors,” said Mondial Assistance CMO, Piotr Ruszowski.

“What makes the world’s top executives cringe? The ‘Uber syndrome’ – where a competitor with a completely different business model enters your industry and flattens you,” added CIO of US trucking company Schneider, Judy Lemke.

The report showed successful disruptors such as Alibaba, eBay, Spotify and WhatsApp have each become the linchpin in a virtual network other companies use to reach their customers. To do this, they’ve built online forums where buyers and sellers can trade, share information and swap insights, stimulating the development of a healthy ecosystem, a highly profitable strategy, the report found. It also prevents them being cut out of the picture by somebody else.

“When it comes to the competition, c-suite leaders clearly have a new threat to consider - one that is often invisible until it is too late,” IBM Global Business Services senior vice-president, Bridget van Kralingen, commented. “At the same time, the highest performers see advances in areas like cognitive computing and systems that can sense and learn as the key to dealing with disruptive events, showing a path forward for all executives.”

The study also revealed c-suite leaders from the highest performing companies are 24 per cent more likely to be focused on cognitive learning. Consequently, the study recommended enterprises use predictive and cognitive analytics to help forecast what might happen with a greater level of confidence and get ahead of unseen competitors.

In addition, almost half of the c-suite acknowledged the need for more decentralised decision-making. Meanwhile, 54 per cent are looking to bring innovation in from outside sources and 70 per cent plan to expand their partner network.

Interestingly, most c-suite executives anticipate changing the way their organisations engage with customers, with 66 per cent expecting to focus on customers as individuals, up 22 per cent from the last survey in 2013.

“We anticipate relying more heavily on partnerships and adjacencies, and on innovating by listening to clients and developing solutions together,” Ricoh Europe CEO, David Mills, said.

And for the first time, all c-suite executives, regardless of role, identify technology as the most important external force impacting their enterprise.

Cloud computing, mobile solutions and the Internet of Things have been cited as technologies most likely to revolutionise their business. But against these advances and the age of the connected customer, the majority of the c-suite, irrespective of role, think IT security is the top risk.

“The more things are connected, the more vulnerable we all are,” the CMO of an Australian financial services provider, stated.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

3 marketing mistakes to overcome when courting prospective customers

Marketing that urges respondents to ‘buy now’ is a little like asking someone to marry you on your first date. At any time, only 3 per cent of the market is looking for what you’re selling, so the chances of your date randomly being ‘The One’ is pretty slim.

Sabri Suby

Founder, King Kong

Why are we dubious about deep learning?

The prospect of deep learning gives those of us in the industry something to get really excited about, and something to be nervous about, at the same time.

Katja Forbes

Founder and chief, sfyte

Why you can’t afford to fail at CX in 2019

In 1976 Apple launched. The business would go on to change the game, setting the bar for customer experience (CX). Seamless customer experience and intuitive designs gave customers exactly what they wanted, making other service experiences pale in comparison.

Damian Kernahan

Founder and CEO, Proto Partners

Where does the claim that 2 million Australians have tested come from ? Anecdotal information suggests that this is way off the mark.

David Andersen

DNA-based marketing: The next big thing?

Read more

Thank you for the info , being part of a digital marketing agency in kerala , this proved handy and get to know with upcoming trends. htt...

Dotz Web Technologies

Predictions: 9 digital marketing trends for 2019

Read more

So who then is correct? The Research or The skilled Digital people.

Anene

Report reveals Australia faces digital skills shortage

Read more

The blogs are really appreciable and one can trust the knowledge and information provided in the writing.The article you do produce on a ...

Prince Arora

5 brand strategy lessons from Gelato Messina

Read more

Thanks for sharing! Meet the Softcrylic team at Adobe Summit 2019. This team works with a broad range of clients helping solve complex bu...

Anderw Hagel

What Richard Branson has to say about experience delivery, leadership and disruption

Read more

Latest Podcast

More podcasts

Sign in