February 26, 2018

Nearly Two-Thirds of Large Companies Globally Face High Levels of Industry Disruption, Accenture Study Finds



New “disruptability index” busts widespread myth that industry disruption is a random occurrence


NEW YORK and BARCELONA; Feb. 26, 2018 – A new study from Accenture (NYSE: ACN) has found that industry disruption is already a reality for most large companies globally. The study shows that, rather than being a random event beyond business leaders’ control, disruption has a pattern that can be identified, understood and prepared for.

The study analyzed more than 3,600 companies with annual revenues of at least US$100 million in 82 countries along two dimensions: current level of disruption, and susceptibility to future disruption. Among the key findings: Almost two-thirds (63 percent) of companies currently face high levels of disruption, and two-fifths (44 percent) show severe signs of susceptibility to future disruption.

As part of the research, Accenture developed a “disruptability index” by dissecting disruption into its key components. 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.

Business leaders can use the index to understand where their industry is positioned and why. It allows them to identify risks and opportunities – and then prepare the right strategic response. Accenture applied the index to position companies in 20 industry sectors and 98 sub-segments across four periods of disruption:

“Disruption is continual and inevitable – but it’s also predictable,” said Omar Abbosh, Accenture’s chief strategy officer. “Business leaders need to determine where their company is positioned in this disruption landscape and the likely speed of change. The more clearly they see what’s changing around them, the better they can predict and identify opportunities to create value from innovation for their business and rotate to the ‘new’.”

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

“To not only survive disruption but thrive when it strikes requires companies to transform and grow their core business while simultaneously innovating to create and scale new businesses,” said Mike Sutcliff, group chief executive of Accenture Digital. “Embracing digital is crucial part of it. We found that the lower an industry’s digital performance, the more susceptible it is to future disruption. Digital technologies can help make a company more resilient in times of disruption in a number of ways, whether by driving better outcomes from existing products, developing entirely new digital services, lowering costs, or increasing barriers to entry.”

Accenture is presenting the Disruptability Index at Mobile World Congress 2018 in Barcelona (Fira Gran Via, Hall 2, Stand H20). To participate in a 30-minute presentation or to arrange onsite media interviews with Mike Sutcliff, contact jens.derksen@accenture.com, +49 175 57 61393.

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 more than 435,000 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.

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Contacts:

Peter Y. Soh
Accenture
+1 703 947 2571
peter.y.soh@accenture.com

Jens R. Derksen
Accenture
+49 175 57 61393
jens.derksen@accenture.com

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