Only 6 percent of survey respondents in a new study think business model reinvention is necessary in the face of digital disruption – which could be good news for companies deploying IoT technologies.
A survey conducted by Nimbus Ninety, a UK research community for disruptive business and technology leaders, has revealed that senior executives are not seeking radical business model reinvention strategies in response to the threat of digital disruption.
Evolution not revolution with IoT
According to the survey, only 6 percent of C-suite members and directors agree that there is a need for business model reinvention, with 33 percent choosing the word ‘evolve’ to describe how they needed to modify their business model in response to digital developments, which includes the ever growing importance of the Internet of Things (IoT).
Nimbus Ninety director of research, Caroline Boyd, said in a statement: “To reinvent or evolve is the major dilemma facing senior executives as they consider how to meet the challenges of the digitally disruptive age. It’s a highly charged and topical debate that challenges established industry incumbents to consider how radical their approach to business model change will need to be to enable them to survive in the digital economy.”
Also read: What’s stopping you from deploying the Internet of Things?
The challenges of data integration
The survey, the first in the firm’s Digital Leader’s Insight series, also identified the obstacles preventing members from achieving growth and competitive advantage.
The top response was legacy systems at 44 percent, closely followed by risk-averse culture and organisational structure, both at 40 percent. It was not altogether clear that legacy systems were rated top, as organisations often struggle to cope with the sheer volumes of data that are produced in the digital age, and because of data integration challenges, organisations may find it more difficult to uncover business value from their data.
Digital dinosaurs will be wiped out
Speaking exclusively with Internet of Business, Sarat Pediredla, CEO of tech consultancy Hedgehog Lab, highlighted the importance of businesses adapting to IoT and an increasingly digital landscape. He said, “Gone are the days when digital was relegated to the marketing department or IS departments to execute. Digital transformation has meant that any organisation that does not have digital at its core risks competitive threats.
“This is exactly the reasons smaller, digital-first start-ups are disrupting industries from travel (Uber), hospitality (AirBnB) and financial services (Transferwise). The defining thing about these disrupters is that they were built on a digital DNA on concepts that started with a digital-first approach.”
Pediredla argues that simple investment isn’t enough, and that businesses “need to embrace digital as the first priority and re-build processes and platforms around it. Otherwise, we will face a Jurassic age of business where the digital dinosaurs will all but get wiped out.”
Also read: Half of UK firms will employ a Chief Internet of Things Officer this year