'Zombie firms' complacent about disruption: Suncorp New Zealand Business Success Index
19 June 2018
Results of the second Suncorp New Zealand Business Success Index reveal that despite an overall increase in business confidence, companies are not prepared for the impact of disruption.
The survey found that while 78% of businesses reported being confident about handling future disruption, 57% said they have no plans to change their products and services to address market disruption in the next five years.
Suncorp New Zealand CEO Paul Smeaton said the findings show that despite a growing understanding that taking calculated risks is essential to business success, there is a corresponding reluctance to actually take those risks which means many businesses may not be resilient to disruption.
Suncorp New Zealand CEO Paul Smeaton
Speaking about the Suncorp New Zealand research, economist Cameron Bagrie said the attitudes to disruption showed some businesses were at risk of becoming “zombie firms”.
“Even when prompted, only 59% see disruption coming to their businesses from digital platforms, 57% from new technology and machinery and 51% from customer behaviour,” said Mr Bagrie.
“And astonishingly, only around 2.5% think advances in technology present a risk to their own firm.
“Businesses need to embrace the threats and opportunities of digitisation, artificial intelligence, robotics, and changing consumer habits to address the impact on their business models.”
The 2018 Suncorp New Zealand Business Success Index
CEO Paul Smeaton said he hoped the insights from the Suncorp New Zealand Business Success Index helped provoke a much needed conversation about whether businesses are focusing on the right things and doing enough to stay competitive.
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