Survey reveals executives see industry convergence as the most disruptive megatrend
Industry convergence, underpinned by digitization, is the top disruptive megatrend for one-third (33%) of Canadian middle-market executives, according to the 2018 EY Growth Barometer. That’s 10% higher than their global peers.
“Changing customer demands and new digital capabilities are transforming traditional industries,” says François Tellier, EY Canada Growth Markets Leader. “Canadian mid-market companies recognize the extensive impact convergence may have on their growth ambitions. That means reimagining the future and redefining opportunity for many executives.”
The annual survey reveals that the pressure to evolve isn’t dampening the revenue forecast of the Canadian mid-market. Two-thirds of (67%) of respondents expect annual growth of 6%-10%.
“Canadian companies are embracing technology and prioritizing skilled talent to evolve the customer experience — and accelerate growth,” says Tellier. “This customer-centric approach to innovation among Canadian executives is far outpacing that of their global peers.”
Thirty-percent of Canadian mid-market respondents see deeper customer understanding as the key to agility — 22% higher than the global average of 8%. Another 40% cite customer demand as their top innovation driver compared to profitability for the rest of the world.
The survey finds investing in technology is the strategic priority for 12% of executives — double the rating of the rest of the world (6%). Artificial intelligence (AI) is in high demand with 92% of companies planning to adopt the technology in the next five years — a significant uptick from 74% of respondents last year who said they would never adopt AI.
“Maximizing the opportunity created by digitization — and convergence — requires the right talent. Canadian companies are competitively positioned to develop an already diverse talent pool with the skills necessary for the future,” says Tellier.
The World Economic Forum rates Canada as having the fourth highest availability of scientists and engineers globally. It follows that one in five (20%) of Canadian respondents view empowering their existing workforce as a critical growth initiative, and 30% acknowledge talent with the right skills as the greatest means to achieving growth.
– 30 –
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.
For more information, please visit ey.com/ca. Follow us on Twitter @EYCanada.
EY refers to the global organization and may refer to one or more of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.