In 2016 McKinsey had predicted that mobility providers (Uber) and tech giants (Apple, Google) will inevitably force traditional car manufacturers to compete on multiple fronts and increase the complexity of the competitive landscape. This is already in action as we can see the auto makers already facing the heat.
In yet another industry, an internet based company that owns not even a single inventory is giving tough competition globally to the traditional hotels holding room inventory running into millions. The company in question, Airbnb, is today valued much higher than most of the hotel chains.
Similarly, retailers such as Walmart and Tesco would have never thought that Amazon would edge past them one day, nor traditional media and entertainment houses would have imagined being outpaced by the likes of Spotify and Netflix.
What all these examples have in common is that none of these businesses knew where their next competitor was going to coming from. Much less they would have expected the competition to come from outside their industry.
All these examples listed above point towards the inevitable – that for businesses the path to growth lies in disruptive business models built on digital. This, in turn, will transform the different industries and change the way as we see them today. Those that fail to transform their business models will ultimately be outpaced by competition.
Technology innovation will be the core of defining new and disruptive business models. According to a recent report by KPMG, the digital revolution is fueling disruption across all aspects of the enterprise. “The transition from an industrial economy that favored mass production and scale, to a digital economy that favors information, is challenging the very nature of what it means to be a successful company,” points out Rick Wright, Digital Transformation Leader, KPMG U.S. in the report.
So, which are those companies that global industry leaders fear the most as likely to disrupt their businesses?
According to recent survey of 750 global tech industry leaders conducted by KPMG, Alibaba tops the list of several companies they worry the most to disrupt their business. Next after Alibaba, the company that leaders feel most threatened by is Facebook, followed by Airbnb, Amazon and Google.
Not surprising then that eCommerce and social networking platforms are seen by the leaders as the business models causing the biggest disruption in their countries in the next three years. Autonomous transportation platforms and entertainment platforms are next in line as the most disruptive business models.
Interestingly, for the Indian leaders though, Alibaba and Facebook figure lower than Google and Amazon on the radar as the companies they most fear disruption from. However, with Facebook making rapid strides with AI-powered posts and facial recognition and with Alibaba riding on its innovative and diversified line of businesses: cloud computing, entertainment, payment gateway, mobile data etc., more Indian companies will have cause to fear competition from these two companies.
(Image courtesy: www.financialexpress.com)