Press Release June 26, 2023 NEW STUDY BY DELOITTE AND BPM FORUM FINDS TECH EXECUTIVES DISSATISFIED WITH CAPACITY TO ANTICIPATE AND RESPOND TO MAJOR MARKET CHANGES Only 35 Percent of Technology Executives Say Their Companies Are Very Effective In Managing Market Altering Changes PALO ALTO, CA. (June 26, 2023) – Technology companies, confronted with growing competition from adjacent and overseas markets, a dramatic shift in power toward the consumer, and the accelerating pace of various technology and web-based deployments, are being challenged to rethink their strategic planning processes and how they respond to market-altering change. This is a key finding from a landmark study, “Competition at the Crossroads: Strategic Planning and Action in Disruptive Markets”, conducted by the Business Performance Management (BPM) Forum and Deloitte Consulting LLP’s Technology, Media and Telecommunications (TMT) group. The study surveyed more than 180 technology industry executives, including qualitative interviews with senior executives involved in strategic planning. The full report is available for complimentary download at the BPM Forum and Deloitte websites (www.bpmforum.org/csr, www.deloitte.com.) The report finds that companies are having difficulty anticipating market change and are limited in their capacity to make effective course-correcting action, in large part due to insufficient investment in strategic planning, getting the right information and having the required talent that can look beyond today’s sales, profitability, current products, customers and technologies. Among the key findings:
The study points to a number of factors that are driving the level of competitiveness and change in the technology industry. The rapid growth of consumer technology markets, the rise of global competitors, and declining barriers to entry due to outsourcing and on-demand business models are key factors increasing the likelihood of disruptive competition entering both new and established markets, according to the study. As one senior executive remarked, “All of a sudden our competitive set has widened dramatically. It’s not just about ‘what are our traditional competitors doing?’ Now there are a whole bunch of other folks we’ve never looked at before.” Still another spoke about the growing threat from “disruptive competitors from overseas…The potential for a disruptive attack from a low-end Taiwanese or Chinese company is now very, very prevalent.” Impediments to ChangeThe research also identifies a variety of factors that are impeding the ability of companies to cope with market-altering and disruptive change. Executives believe they lack the resources, in terms of talent and information, to effectively plan for change, which is not surprising given the low levels of investment being made in the strategic planning function. They also say their ability to take course-correcting action is stymied by a focus on short-term profitability, current business issues, and a lack of a quantifiable business case for taking action. As a result, executives say it is difficult to access funding for new strategic directions and also that alignment and consensus are hard to achieve across the organization. “Competition at the Crossroads raises serious questions about how technology companies can build their capacity to anticipate, prepare for and take action amidst rapid market changes,” said Dave Murray, BPM Forum program director. “The BPM Forum and its Competitive Strategy Roundtable, in cooperation with Deloitte Consulting, looks forward to continued industry dialogue that can identify best practices and new approaches for strategic change in our industry.” The “Competition at the Crossroads” study lays the groundwork for a series of future management dialogs that will be hosted by the BPM Forum and Deloitte Consulting to facilitate discussion among high tech strategy executives trying to anticipate, plan and better address market altering changes.
About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms and their respective subsidiaries and affiliates. As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other’s acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names “Deloitte”, “Deloitte & Touche”, “Deloitte Touche Tohmatsu” or other related names. Services are provided by the member firms or their subsidiaries or affiliates and not by the Deloitte Touche Tohmatsu Verein. Deloitte & Touche USA LLP is the U.S. member firm of Deloitte Touche Tohmatsu. In the United States, services are provided by the subsidiaries of Deloitte & Touche USA LLP (Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Financial Advisory Services LLP, Deloitte Tax LLP, and their subsidiaries), and not by Deloitte & Touche USA LLP. About The BPM ForumThe Business Performance Management (BPM) Forum is dedicated to advancing performance accountability, process improvement, operational visibility and compliance in global organizations. It provides support to thousands of senior executives and practitioners representing enterprises with more than $500 billion in combined annual revenues. The BPM Forum’s C-level members engage in research, thought leadership, and knowledge exchange programs around a variety of strategic issues and challenges. More information is available at: www.BPMForum.org.
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