Cisco: Ignore digital disruption at your peril

San Jose, Calif. – Digital technology stands ready to significantly disrupt retail and many other industries, yet many companies are not showing concern.

According to a new report released by the Global Center for Digital Business Transformation (DBT Center), an initiative between Cisco and the International Institute of Management Development (IMD), digital disruption will displace approximately 40% of incumbent companies in each of the 12 industries studied for the report (including retail) within the next five years.



Yet the survey indicated 45% of 941 companies in 13 countries including the U.S., U.K. and Canada, do not believe digital disruption merits board-level attention. Most executives surveyed see digitization as a positive for business and society. In fact, 75% of executives surveyed believe that digital disruption is a form of progress, 72% said it improves value to customers and 66% feel it empowers individuals.



At the same time, 43% either do not acknowledge the risk of digital disruption, or have not addressed it sufficiently. Only 25% describe their approach to digital disruption as proactive.