Jeff Whalley
Herald Sun
September 11, 2012
COMPANIES run the risk of being trampled in the stampede to join the digital revolution, research warns.
Global accounting firm Deloitte says sectors accounting for a third of Australia’s $1.4 trillion annual economic output face serious risks to their bottom line.
Major industries in the firing line to lose potentially half of their revenue streams within three years include retail, media, tourism, real estate and finance, Deloitte Access Economics says.
“Digital innovations are transforming the economic landscape, far more profoundly than other big shifts in our economic history such as deregulation, oil shocks or mining booms,” Deloitte director Dr Ric Simes said.
“Incumbent market leaders face substantial pressures which they need to manage if they are to thrive, let alone survive.”
The Deloitte report, titled Digital disruption: short fuse, big bang? defines companies that can expect to see a 15-50 per cent change in their metrics – such as mix of revenue channels or cost structures – as experiencing a “big bang”.
The 30 per cent of the economy forecast to come under this category included the media, retail, tourism and real estate sectors.
Another 33 per cent, including education and health, would feel similar seismic changes over five years.
Businesses that flourish will be those that win market share not by copying latest innovations but by being lean enough to adapt swiftly.
“Some companies take a knee-jerk reaction to the digital world,” Deloitte Technology leader Robert Hillard said. “They try to ‘out-Amazon’ a company like Amazon.”
Mr Hillard says Australian businesses were catching on with a steady increase in the number of mobile phone apps on the market.
FUTURE SHOCK
Digital disruption: which industry’s most vulnerable?
48% of companies plan to offer mobile apps within five years, compared with 18 per cent now
FACING IMMEDIATE CHALLENGES
Retail trade
Arts/recreation
Media
Finance
Professional services
Real estate
FACING LONG-TERM CHALLENGES
Education
Agriculture
Health
Utilities
Recruitment
Transport
Based on factors including service delivery, customer habits and significance of social media and broadband to each sector.
Source: Deloitte/Optus Future of Business Report
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