Key Findings from the 2017 Strategic Readiness Survey

Disruptive change is accelerating, driven by new technologies and rising competition from both traditional and nontraditional players. As a result, Innosight forecasts that half of companies in the S&P 500 will be replaced over the coming decade, due to loss of market value or acquisitions.

Download the full survey report.  

What are leaders doing about these challenges? And how do they feel about their ability to prepare for and manage them? In May 2017, we surveyed more than 300 executives at major corporations with revenues of $2 billion and higher about their current attitudes, experiences, and responses to marketplace disruption. The results tell a mixed story. Key findings include:

    • Business leaders may be overconfident in their ability to respond to disruption. 80% of respondents say they recognize they need to transform, and 82% expressed degrees of confidence that their company is prepared to change in response to disruptive trends. Yet there are multiple warning signs in the data—including perceptions of competition and disruption—that suggest they may be in a “confidence bubble.”
    • Broad understanding about what they need to do to respond to disruption. Executives see the need for a two-pronged approach to the future. They say they are likely to both transform their core business while also investing in new growth businesses. They also see the need to expand within existing markets and enter into new markets.
  • Talent and leadership are concerns. Executives say finding and retaining the right talent is considered the biggest obstacle to transformation. Moreover, 81% say that top management is not open to new ideas.
  • Digital and AI may be blind spots. Despite artificial intelligence and digital technologies rapidly transforming markets around the world, executives are downplaying the threat these forces will play to their own businesses. 

    For related insights, explore Dual Transformation  

“One could say that the worrying thing here is that executives aren’t more worried,” says Scott Anthony, managing partner at Innosight. “The pace of change continues, and digitalization is accelerating, so leaders should be investing more, expecting to reconfigure their organizations and more, and should be paying closer attention to new product ideas and new growth ventures.”


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