Companies Are Shaking In Their Boots Over Digital Startups

The majority of traditional businesses are worried about digital startups posing a threat to their organization, according to new research from Dell Technologies.

According to Dell Technologies, 78 percent of businesses are threatened by digital startups, which is propelling innovative companies ahead and accelerating the demise of others. Close to half of companies surveyed by Dell, or 45 percent, fear they could become obsolete in the next three to five years because of competition from digital startups.

“So far, the fourth industrial revolution has proved as ruthless as its predecessors. If companies can’t keep up, they will fall behind … or worse. The ‘delay until another day’ approach simply won’t work,” said Jeremy Burton, chief marketing officer for Dell Technologies, in a press release. The survey of 4,000 global business leaders, including mid-sized enterprise and large companies, in 16 countries and 12 industries found some companies are feeling “badly bruised by the pace of change.” Dell found more than half, or 52 percent, of business leaders said they have experienced significant disruptions in their industries during the last three years because of digital technologies and the Internet of Everything. What’s more, 48 percent don’t know what their industry will look like in three years from now.

According to Dell, progress among companies polled for the survey is spotty. On the one hand, there are some companies that haven’t really started their digital transformation, with many taking a “piecemeal approach.” On the other side, there is a minority, albeit a small minority, that have almost completed their digital transformation. Dell also found around six in 10 companies can’t meet their customers’ top requests, such as increasing security and providing faster 24/7 access to services and information. “These are imperatives for success in a digital age. Failing to deliver in such a highly contested marketplace could trigger the beginning of a digital crisis,” added Burton.