Digital transformation is causing a corporate mass extinction‚ pens Thomas Siebel in “Why Digital Transformation is Now on the CEO’s Shoulders‚” published by the McKinsey Quarterly.
Since 2000‚ 52 percent of Fortune 500 companies have been acquired‚ merged‚ or declared bankruptcy – with no end in sight. In their wake‚ a mass speciation of innovative corporate entities has emerged‚ with disruptive technologies like big data‚ the Internet of Things‚ and artificial intelligence propelling the sweeping change and altering the corporate DNA.
For CEOs‚ the evolution means survival of the most visionary. It is no longer enough to sit idly by as digital transformation’s disruptive power inverts the dynamics of industry leadership. Companies across industries – from healthcare to manufacturing – must quickly place digital transformation on corporate board agendas and at the top of CEO strategic plans. Those enterprises that don’t are “asleep at the switch‚” notes Siebel.
Siebel’s article presents digital transformation in historical context‚ provides clarity to its meaning and impact‚ and offers constructive steps for CEOs and Boards to rethink how companies execute. “The existential threat is exceeded only by the opportunity.”