Japan at heightened risk for digital disruption, top executives say
Digital disruption is having a more immediate and significant effect in Japan than in almost any other country or region, according to a survey of business leaders carried out by IMD in support of the book “The Digital Vortex: How Today’s Market Leaders Can Beat Disruptive Competitors at Their Own Game”. Originally released in 2016, “Digital Vortex” has now been updated and released in Japanese by the Global Center for Digital Business Transformation, an IMD and Cisco Initiative.
The data for Japan paints a picture of a country being drawn into the vortex of digital disruption more quickly than the world’s other regions.
More than 90% of Japanese executives believe that digital technology is having a major or transformative impact on their organizations. This figure is almost double what it was when data was first collected on digital disruption in 2015.
Japanese executives estimated that four of the top ten companies in their industries would lose their standing due to digital disruption in the next five years, which was on par with estimates from other Asian economies, but higher than the average for the rest of the world. Executives in the country are significantly more concerned for their own companies than other regions, with nearly 60% convinced that disruption is already happening, compared to only 35% in other countries.
Japanese business leaders are more worried about disruption coming from inside traditional industries and incumbent companies rather than outsiders and startups.