Insights

(Source: BCG)

Incumbent businesses are right to be paranoid about the expanding impact of technological disruption. Of the top ten global companies by market capitalization a decade ago, only two have maintained their positions; many of the rest were replaced by digital natives. And we expect the list ten years from now to be at least as different from today’s: we know that only one-third of companies faced with industry disruption thrive, while the remaining two-thirds languish or fail. It is not surprising, then, that incumbents in many sectors are engaged in extensive digital transformation efforts in an attempt to inoculate themselves against the threat of disruption.