According to a report released by Deloitte, one third of the Australian economy faces immanent and major "digital disruption" - a "short fuse, big bang" situation.
The report stresses the importance of each organisation looking at the issues raised, in fine detail, before developing specific, pragmatic and proportionate responses. The report also indicates that digital opens up unprecedented possibilities, "These innovations are changing economies and markets and reinventing relationships between organisations, suppliers and customers. They are changing society".
The report identified those sectors such as "finance, retail, media; and information and communications technology have a short fuse and can expect a big bang". At the other end of the spectrum, miners, construction groups and many manufacturers have longer fuses and face less incremental disruption to their businesses.
"Sectors like education and health, while set to experience profound changes, have a longer fuse and potentially a greater opportunity to plan their response".
The report identifies that the "short fuse - big bang" will affect 32% of the Australian economy with the effects forecast to be felt over the next three years, as follows:
- 1 year and under - retail trades, arts and recreation
- 1 to 2 years - information and communications technology and media
- 2 to 3 years - finance, professional services, real estate and businesses
The effects of internet trading are well understood by retail operators with some retailers bearing a greater exposure than others. Similar affects are likely to be felt by other industries identified as likely to bear the effects of the digital disruption in the next three years.
For businesses operating in the specified industries, now is the time to be undertaking a detailed review of your business operations to determine what revised strategies might be necessary to compensate for the forecast change in conditions which are likely to affect your business.
If you'd like to have discussions with us relative to these issues, please contact Collins Hume on 02 6686 3000.
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