If the 4th industrial revolution has a single defining characteristic, it’s that disruption is everywhere, both in terms of the speed and breadth of change. No one is immune. At least that’s the message that pervades the hype, but is this the reality on the ground?
A new report from Accenture suggests so, revealing that nearly 3/4 of executives across all industry sectors have experienced an increase in disruption over the past eight years.
The report, which is based on the Disruptability Index produced by the firm, measures both the present and future risk of disruption for 18 industries and around 10,000 listed companies.
The anatomy of disruption
The research builds upon previous work from Accenture that highlighted the various stages of disruption. The work found that it goes through four distinct phases: durability, vulnerability, volatility and viability, and the latest effort aims to challenge the misconception that disruption is a sudden and short-lived affair.
Indeed, roughly 83% of companies revealed that they had spent at least five years in the same period of disruption, which explains why practically all respondents were well aware of the threat posed by disruption and were building resilience to it.
“Responding to persistent disruption requires a radical departure from old, comfortable business strategies that no longer work,” Accenture say. “Successful companies avoid disruption by leaning into disruptive technologies, testing new ideas and learning how to remain close to the innovation frontier.”
The paper cites examples ranging from Microsoft to Schneider Electric of companies that have successfully adapted in industries undergoing considerable disruption. They identify four actions that underpin many of these successes:
- Create Your Next Cutting Edge. Embrace new technologies to develop potentially disruptive ideas, in and outside of your current industry.
- Fund Your Future Bets. Progressively bolster and allocate your innovation investments so you can test and turn new ideas into commercial realities faster.
- Find Partners to Scale With. Commit to scaling new ideas with ecosystem partners who can provide access to technologies and specialized talent.
- Disrupt from the Inside. Establish a specialized entity such as an “innovation lab” or a “digital factory” in order to bring meaningful innovation into your established business.
“The nature of disruption in your industry should inspire, rather than constrain when and how you accentuate your innovation efforts,” Accenture conclude. “Taking steps now to prepare your company and reposition itself because of disruption is paramount — whether by innovating at the next tech frontier, experimenting with truly breakthrough ideas, or scaling those ideas faster through new partnerships and world-class in-house capabilities.”
