"Uberisation" cited as primary competitive threat

A survey by IBM showed that the per centage of business leaders who expect to contend with competition from outside their industry increased by more than a quarter - rising from 43 per cent in 2013 to 54 per cent today.  

The IBM study, “Redefining Boundaries: Insights from the Global C-suite Study,” is based on findings from more than 5,200 chief executive officers (CEOs), chief management officers (CMOs), chief financial officers (CFOs), chief operating officers (CIOs) and other C-suite leaders across 21 industries in more than 70 countries. The respondents - most of whom participated in face-to-face interviews - represent a wide range of public and private enterprises.

Conducted by IBM’s Institute for Business Value, the report reveals that CxOs now expect industry convergence to be the primary force impacting their business in the next three to five years and that the highest-performing enterprises place greater priority on cognitive capabilities than market-followers.

"The biggest threat is new competitors that aren’t yet classified as competitors,” said Piotr Ruszowski, CMO, Mondial Assistance.

Forty-eight per cent of CxOs acknowledge the need for more decentralised decision-making. Fifty-four per cent are looking to bring innovation in from outside sources and 70 per cent plan to expand their partner network.

Most CxOs anticipate changing the way their organisations engage with customers. Sixty-six per cent of CxOs expect to focus on customers as individuals  - up 22 per cent from 2013 - and 81 per cent plan to drive more digital interaction, a 19 per cent increase from two years ago.

“We anticipate relying more heavily on partnerships and adjacencies, and on innovating by listening to clients and developing solutions together,” said David Mills, CEO, Ricoh Europe, United Kingdom.

CxOs believe cloud computing, mobile solutions, the Internet of Things and cognitive computing are the technologies most likely to revolutionise their business. When it comes to risks, two years ago IT security ranked low on the list of concerns. Now, 68 per cent of respondents rank IT security as the number-one enterprise risk.

“When it comes to the competition, C-suite leaders clearly have a new threat to consider - one that is often invisible until it is too late,” said Bridget van Kralingen, senior vice president, IBM Global Business Services. “At the same time, the highest performers see advances in areas like cognitive computing and systems that can sense and learn as the key to dealing with disruptive events, showing a path forward for all executives.”