August 09, 2018

Nearly 70 Percent of Enterprises in India Affected by Industry Disruption, Accenture Disruptability Index Finds



US$1.8 trillion of enterprise value could be displaced


New Delhi; Aug. 9, 2018 – A new study from Accenture (NYSE: ACN) reveals that industry disruption is already a reality for most enterprises in India, and US$1.8 trillion of enterprise value is at risk of displacement. However, the study also shows that disruption can be managed and harnessed for the next phase of growth.

As part of the study of more than 2,000 large companies in India, Accenture developed a ‘disruptability index’ which measures the current level of disruption, and susceptibility to future disruption. The research found that 44 percent of companies are currently experiencing disruption, and 38 percent are susceptible to future disruption. It also found that nearly one-third (31 percent) of companies are currently in a stable, yet uncertain position.

The report also states that they have the unique opportunity to capitalize on their incumbent advantages, harness disruption and improve competitiveness, to avoid obsolescence.

“Disruption is a reality. It can be swift and strong or slow and steady, but it follows a predictable pattern that can be anticipated and managed,” said Anindya Basu, geographic unit and country senior managing director, Accenture in India. “The rapid rise of Indian unicorns, and gradual erosion of profits across key industries is evidence of the disruption at play. Whether Indian businesses survive disruption or thrive in it depends on how well they understand where they are positioned in the disruption landscape, and how they respond.”


To compile the disruptability index, the researchers took into account the presence and market penetration of disruptor companies as well as incumbents’ financial performance, operational efficiency, commitment to innovation, and defenses against attack.

The index can help business leaders understand where their industry is positioned and why. It also allows them to identify risks and opportunities and then prepare the right strategic response. Accenture applied the index to position 19 industry sectors and 59 sub-segments across four periods of disruption:

According to the report, each period of disruption also requires a distinct strategic response:

Basu added, “Additional research establishes a clear link between the impact of disruption and a company’s investments in digital. The right combination of technology investments, aligned with the right strategy are a necessary response to disruption, and can help companies transform and grow their core business, and innovate and scale new businesses. Striking the right balance, and knowing when and how to make the pivot, remain key.”

Research methodology
Accenture Research studied 2,015 companies with revenues greater than US$10 million, listed on an Indian stock exchange and headquartered in India. The research analyzed 27 indicators including market penetration of disruptor companies as well as incumbents’ financial performance, operational efficiency, commitment to innovation, and defenses against attack. The US$1.8 trillion of enterprise value (market capitalization + net debt) represents 69 percent of the total enterprise value of the companies analyzed.

About Accenture
Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions – underpinned by the world’s largest delivery network – Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With 449,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.

# # #

Contact

Garima Misra Punia
Accenture
+91 9811818477
garima.misra.punia@accenture.com