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

Latest Videos

More Videos

More Brand Posts

What are Chris Riddell's qualifications to talk about technology? What are the awards that Chris Riddell has won? I cannot seem to find ...

Tareq

Digital disruption isn’t disruption anymore: Why it’s time to refocus your business

Read more

Enterprisetalk

Mark

CMO's top 10 martech stories for the week - 9 June

Read more

Great e-commerce article!

Vadim Frost

CMO’s State of CX Leadership 2022 report finds the CX striving to align to business outcomes

Read more

Are you searching something related to Lottery and Lottery App then Agnito Technologies can be a help for you Agnito comes out as a true ...

jackson13

The Lottery Office CEO details journey into next-gen cross-channel campaign orchestration

Read more

Thorough testing and quality assurance are required for a bug-free Lottery Platform. I'm looking forward to dependability.

Ella Hall

The Lottery Office CEO details journey into next-gen cross-channel campaign orchestration

Read more

Blog Posts

Marketing prowess versus the enigma of the metaverse

Flash back to the classic film, Willy Wonka and the Chocolate Factory. Television-obsessed Mike insists on becoming the first person to be ‘sent by Wonkavision’, dematerialising on one end, pixel by pixel, and materialising in another space. His cinematic dreams are realised thanks to rash decisions as he is shrunken down to fit the digital universe, followed by a trip to the taffy puller to return to normal size.

Liz Miller

VP, Constellation Research

Why Excellent Leadership Begins with Vertical Growth

Why is it there is no shortage of leadership development materials, yet outstanding leadership is so rare? Despite having access to so many leadership principles, tools, systems and processes, why is it so hard to develop and improve as a leader?

Michael Bunting

Author, leadership expert

More than money talks in sports sponsorship

As a nation united by sport, brands are beginning to learn money alone won’t talk without aligned values and action. If recent events with major leagues and their players have shown us anything, it’s the next generation of athletes are standing by what they believe in – and they won’t let their values be superseded by money.

Simone Waugh

Managing Director, Publicis Queensland

Sign in