All about digital disruption

July 2016

Connectivity

Sectors expecting digital disruption over the next 12 months

Industrial 39%
Asset wealth management 43%
Health care 47%
Education 50%
Business and professional services 51%
Nonprofit 52%
Consumer products 52%
Insurance 53%
Technology 57%
Retail 57%
Consumer financial services 61%
Telecom 64%
Media 72%

Productivity

Since 2000, 52% of companies in the Fortune 500have either gone bankrupt, been acquired, or cease to exist.

Corporate approaches to digital disruption provide some insight on why companies are being disrupted. Few are proactive: 

32% will "wait and see" where threats emerge

25% are actively responding to disruptive threats

43% do not feel there is a threat of digital disruption

Investment

Innovate or suffer! The pace of churn in the S&P 500 index is increasing.

Today a typical S&P 500 company survives on the index for an average of 18 years, down from 61 years in 1958.

By 2027, an estimated 75% of the S&P 500 is likely to have been replaced.

Non-digital companies have increased their rate of acquisition rapidly since 2011 in order to defund against digital disruption.

6,000 were acquired from non-digital companies between 2011 to 2015 witht he rate increased by 48% over the 5 year period.

Talent

The challenge: companies underestimate the impact of digital disruption.

Only 1 in 10 companies believes their C-suite executives adequately understand technology.

Digital disruption can also be an internal threat. Employees are embracing digital disruption even if their companies don't:

82% of employees expect digital technologies to change the way they work in the next 3 years.

71% of employees proactively learn new digital tools and technical skills.

63% think their work experience will improve using new digital technologies.

Companies can benefit from digital disruption, especially to find and hire the right talent.

It is projected that online talent platforms will boost global GDP by $2700 Billion through new, faster, and better talent matching results.

This could result in an additional 72 Million FTE positions by 2025 globally.

Canadian Digital Media Network
Government of Canada

For more on key trends impacting Canada's digital media economy, visit cdmn.ca/trends.