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Disruption in CRE’s Middle Market: Circa 2017
Capital One’s “Disruption in the Middle Market” study examined disruption’s impact on the middle market and how companies can prepare for it. When it comes to adopting “disruptive” technologies, companies in CRE were among the most likely to not have taken any measures to prepare for disruption and are considered “delayers,” the report found.
That’s because today’s companies are so interconnected and driven by a flood of digital information that they are subject to sudden disruption by political, economic, and environmental forces. When innovative technology and new business models are added to the mix, the 20,000 middle-market businesses in the U.S. face a complex set of challenges.
“Delayers” (less prepared companies) share some commonality, including 18% of respondents believe their company is vulnerable to a disruption that would provide a simpler, cheaper, or more convenient alternative; and 82% either said mobile capabilities or social media (41% each) are the technologies most likely to present the greatest chance of disruption to their company.
Key overall findings from the study include:
– 43% of CRE professionals report the industry is quite or extremely vulnerable to disruption, and is six times more vulnerable to disruption than their company
– 80% of CRE executives believe that the industry will be disrupted within the next three years
– 30% of CRE executives report that a disruptive strategy is most likely to emerge from the area of marketing and communications
For comments, questions or concerns, please contact Dennis Kaiser
