“laggards will soon enough find themselves among the 50 percent of G2000 companies who are either bought out, or run out of business on a 20-year cycle”
The Global 2000 are under siege, whether they know it or not. A handful (and more) of emergent technologies are reforming (dare we say, revolutionizing) vast industries worldwide.
Some companies have been quick to respond, and even drive the direction of the new stuff. Others are evaluating things as the sands of time continue to flow.
The laggards will soon enough find themselves among the 50 percent of G2000 companies who are either bought out or run out of business on a 20-year cycle.
Running with the big dogs.
Over the past year, I’ve been researching these enterprises and how they’re embracing today’s technology trends. My focus is based on their raw scale and power. Taken together, these behemoths control about two-thirds of the world’s economy, employ millions, and create exponentially more jobs and economic activity throughout their intertwined ecosystems.
Their average size is US$11B annually. The top companies are in the $400B-$500B range, with revenues similar to the GDP of some of the G20 nation-states.
The Top 10 companies collectively have revenue that approaches the scale of the economies of France or the (pre-Brexit) UK. The smallest of these 2000 enterprises still account for a few billion dollars in annual revenue.
So, they’re big.
They buy a lot of technology, and they influence the global economy like big rocks thrown into small ponds; it’s not just a ripple effect, it’s a tsunami effect. The world may not be flat, in reality, but it is still small enough to get quite (and, frankly, quite easily) disrupted. (Witness the 24-hour impact of Trump’s fiddling around with global trade policy.)
The Big Seven Industry Categories
The first task at hand in my research was to simplify the original data and place these companies into a Big-Seven group of broad industries.
Here’s a list of those categories, the number of companies in the Global 2000 within them, and the key technologies that are disrupting them:
Financial Services (577) – Fintech | Insurtech
Manufacturing & Materials (453) – IIoT | Industry 4.0
Consumer Goods & Services (362) – Online | App Economy
Energy & Utilities (230) – Smart Meters & Grids | Renewables
ICT (193) – Everything-as-a-Service
Transportation (89) – Connected | Autonomous
Health Care (88) – Enterprise IoT | Personal IoT
To get at the nature of digital transformation, we have to ask how many of these companies are disruptors and how many are disruptees.
How many are on the menu? How many are lunch?
You don’t want to be employed among the latter, because you can get disrupted right out of your job, and your company can get disrupted right out of existence. The brand may survive; the maybe not even that. This can happen to you even at the highest levels of the organization, perhaps especially likely at those levels.
My next columns will focus on each of these industries in some more detail – which technologies are disrupting them, what it means, and how some companies in each of the Big Seven sectors are leading the charge.
More on Digital Disruption: Disrupt or Be Disrupted: Financial Services
I welcome having a discussion with anyone interested in speculating on who is leading this change in 2018, and who will lead the global digital transformation of business as we know it over the next decade.
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