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Industry convergence concern for ME executives

DUBAI, March 16, 2016

C-suite executives both globally and in the Middle East and Pakistan now expect industry convergence to be the primary force impacting their business in the next three to five years, a report said.

CxOs in the Middle East also see the “anywhere” workplace and rising cyber risk being nearly as impactful as industry convergence, added the new study entitled “Redefining Boundaries: Insights from the Global C-suite Study” conducted by IBM’s Institute for Business Value.

The trend of “uberization” or industry disruption caused by an unlikely competitor has become a dominant concern of the C-suite, according to the study. In just two years, the percentage of global C-suite leaders who expect to contend with competition from outside their industry increased from 43 per cent in 2013 to 54 per cent today.

“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 Mohammed Riaz, IBM global business services leader for Gulf and Levant.

“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.”

The study also reveals that C-suite leaders from the highest-performing companies are 24 per cent more likely to be focused on cognitive computing than market followers. The study recommends enterprises use predictive and cognitive analytics to help forecast what might happen with a greater level of confidence and get ahead of unseen competitors.

Beware unwelcome intruders

The biggest risk to businesses used to be a new rival with a better or cheaper offering, making it relatively simple to alter strategies. Today, entrenched players are being threatened by new entrants with completely different business models, as well as smaller, more agile players unencumbered by legacy infrastructure.

In turn, fifty-four per cent of global CxOs are looking to bring innovation in from outside sources and 70 per cent plan to expand their partner network—with that number even higher in the Middle East at 79 per cent.

Implement customer feedback, don’t just ask for it

Many CxOs interviewed freely admitted that they find it hard to see what’s coming next. Yet, when it comes to identifying and exploring new trends and technologies, only half of respondents are utilizing customer feedback. This despite the fact that in IBM’s 2013 Global C-suite Study, 60 per cent of CEOs said they planned to directly engage their customers and proactively apply what they learned to set their business agendas. Two years later, it’s still a gap waiting to be closed.

Most CxOs anticipate changing the way their organizations 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. CxOs from the Middle East are even more convinced about customer interactions moving online, with 91 per cent planning to drive more digital interaction.

Role and risks of technology

CEOs put technology at the top of the list, as they have for the past four years. But now, for the first time ever, the other members of the C-suite also see technology as the main game-changer.

Regionally, in the Middle East, CxOs are in strong agreement about the impact of cloud computing, mobile solutions, the Internet of Things and cognitive computing as the technologies most likely to revolutionize their business. When it comes to risks, two years ago IT security ranked low on the list of concerns globally. Now, 68 per cent of respondents also rank IT security as their number-one enterprise risk. – TradeArabia News Service




Tags: IBM | cyber | Executives |

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