Perpetual reinvention ‘Two decades after the Internet became a platform for transformation, we're still wondering how it all might turn out. The signals aren’t always clear. Today, winner-take-all organizations are on the rise, but collaborative ecosystems are flourishing as well. Even in industries where competitive concentration is increasing, innovation hasn't ~ as would be expected - flatlined. Which way to the future? The organizations that are prospering aren't lying in wait to time the next inflection point - the moment when a new technology, business model or means of production really takes off, Remaking the enterprise, they recognize, isn’t a matter of timing but of continuity. What's required, now more than ever, is the fortitude for perpetual reinvention. It's a matter of seeking and championing change even when the status quo happens to be working quite well.Introduction Economists and strategists are debating both the causes and consequences of markets that are growing less competitive, ‘Some attribute the consolidation of power ino the hands of afew to digital technologies; others point to structural factors. C-suite ‘executives may be just as uncertain about the changes happening, around them. Certainly, their expectations about how the business landscape will change inthe next few years are mixed. ‘The C-suite is evenly divided on whether the focus inthe future Willshitt from established markets tonew ones. Alter years of predicting a move to open innovation ~ sourced externally ~a growing number of C-suite executives are now predicting a retreat to proprietary innovation. And yet, a significant number also cite new capabilities ~ and intentions ~ for collaborative innovation. In two areas, however, C-suite executives stand in close agreement: how they will change their value propositions and scale their value chains. Two-thirds, 68 percent, of C-suite ‘executives expect organizations to emphasize customer experience over products. And 63 percent boliove that most organizations will continue to expand their networks of business partners.In the 14 years 18M has surveyed C-suite executives, we've asked To better understand the forces at play, we applied cluster analysis them which external forces will impact them mostn the next two toidentity distinct segments of organizations amang the more ‘to throe years. This year, market factors, which includes things tke ‘than 12,500 participants inthis study. Three archetypes emerged, increased competition and changing customer preferences, returned _which we've named the Reinventors, the Practitioners and the tothe top positon, while technology slipped to second place. People _—_Aspirationals. The organizations clustered in these archetypes are skills rose sharply to third place, recognition perhaps of the rise in at diferent stages of Digital Reinvention™ and are eyeing the value of intangible assets like talent and ideas (see Figure 2), ‘opportunities ahead from that vantage point Figure 1 Back tothe future 2994 2008-2008. aa10 20122013, amis aa Market factors and people Market factors 0% skis are onthe rise Technological factors 63% People sls 1% Regulatory concerns Macro-economie factors ‘Socio-economic factors Environmental lssues Globalization Geopolitical factors