The average lifespan of a large, successful business is shorter today than it has ever been.
Over half of the companies listed on the S&P 500 in March 2016 are forecast to be replaced on the S&P index by 2026. Further, the average tenure of a company on the S&P has fallen from 33 years in 1965 and is expected to shrink to 14 years by 2026 if the current churn rates continue. Clearly, the playing field has changed, with many factors contributing to these developments.
Chief among them is disruption from new technologies. Disruption can also create opportunities. In fact, embracing the change that disruption provides often produces a stronger, more agile business, with a sharper competitive edge and greater profitability.
The challenge for any business is to keep one step ahead and to evolve into the most relevant version of itself.
To read more about what we can learn from the ever-changing music industry, download the full Perspective authored by David Moodie below.