Page 52 - The Fourth Industrial Revolution

3.2 Business

Beyond the changes in growth patterns, labour markets and the future of
work that will naturally influence all organisations, there is evidence that
the technologies that underpin the fourth industrial revolution are having a
major impact on how businesses are led, organized and resourced. One

particular symptom of this phenomenon is that the historical reduction in the
average lifespan of a corporation listed on the S&P 500 has dropped from
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around 60 to approximately 18. Another is the shift in the time it takes new
entrants to dominate markets and hit significant revenue milestones.
Facebook took six years to reach revenue of $1 billion a year, and Google
just five years. There is no doubt that emerging technologies, almost always
powered and enabled by digital capabilities, are increasing the speed and
scale of change for businesses.

This also reinforces an underlying theme in my conversations with global
CEOs and senior business executives; namely, that the deluge of information

available today, the velocity of disruption and the acceleration of innovation
are hard to comprehend or anticipate. They constitute a source of constant
surprise. In such a context, it is a leader’s ability to continually learn, adapt

and challenge his or her own conceptual and operating models of success
that will distinguish the next generation of successful business leaders.

Therefore, the first imperative of the business impact made by the fourth
industrial revolution is the urgent need to look at oneself as a business
leader and at one’s own organization. Is there evidence of the organization
and leadership capacity to learn and change? Is there a track record of

prototyping and investment decision-making at a fast pace? Does the culture
accept innovation and failure? Everything I see indicates that the ride will
only get faster, the changes will be fundamental, and the journey will
therefore require a hard and honest look at the ability of organizations to

operate with speed and agility.

Sources of disruption

Multiple sources of disruption trigger different forms of business impact. On
the supply side, many industries are seeing the introduction of new

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