The rapid pace of change in the technology field has disrupted businesses and entire industries. CEOs and other executives who don't understand the ramifications of this digital transformation put their business at risk.
IDC predicts that 40 percent of businesses in the top 20 of every industry will be disrupted by 2018. For executives in the trenches, this is no surprise. They're experiencing firsthand the way technology changes how they operate and compete in the marketplace.
They're also experiencing the effects of a changing workforce. According to PricewaterhouseCoopers, millennials (those born between 1980 and 2000) form a quarter of the U.S. workforce today and will comprise half of the global workforce by 2020. Altimeter, the digital analyst group at Prophet, reports that only 7 percent of millennials work for Fortune 500 companies and that most prefer to work for startups.
Two defining characteristics of millennials are their comfort with the digital world and discomfort with rigid corporate structures and information silos. That reality has a huge impact on how new businesses are built — and puts pressure on older businesses to modernize.
In part because of these influences, business culture is moving toward innovation and agility, on the open sharing of ideas, augmented reality and shared infrastructure like the cloud. Businesses that don't adapt to these forces will fade away. Those that are able to reimagine how to work will be rewarded with success in the marketplace.
Is Your Company Built to Succeed?
No business can adopt every new technology — very few companies have enough resources and talent to keep up with every change. The key to doing so and remaining competitive is to set up the business to be innovative and adaptable.
To build that agility and create a digital foundation for success, businesses must be:
1. Data-driven: collecting and using trusted, real-time data to drive decision making
2. On-demand: increased agility and reduced costs for IT and operations
3. Trusted: ensuring security and privacy of internal and external data to reduce business risk and protect the brand
4. Experiential: attracting and retaining customers with connected experiences
5. Desirable: attracting and retaining innovative and talented employees
Keeping up with the changes in technology and how they impact the business environment is a continual challenge for executives. Businesses that can adapt to the changes will succeed in the new economy, no matter what technology changes are on the horizon