Skip to main content
About HEC About HEC Faculty & Research Faculty & Research Master’s programs Master’s programs MBA Programs MBA Programs PhD Program PhD Program Executive Education Executive Education Summer School Summer School HEC Online HEC Online About HEC Overview Overview Who
We Are Who
We Are
Egalité des chances Egalité des chances HEC Talents HEC Talents International International Campus
Life Campus
Life
Sustainability Sustainability Diversity
& Inclusion Diversity
& Inclusion
Stories Stories The HEC
Foundation The HEC
Foundation
Coronavirus Coronavirus
Faculty & Research Overview Overview Faculty Directory Faculty Directory Departments Departments Centers Centers Chairs Chairs Knowledge@HEC Knowledge@HEC Master’s programs Master in
Management Master in
Management
Master's
Programs Master's
Programs
Double Degree
Programs Double Degree
Programs
Summer
Programs Summer
Programs
Exchange
students Exchange
students
Student
Life Student
Life
MBA Programs MBA MBA Executive MBA Executive MBA TRIUM EMBA TRIUM EMBA PhD Program Overview Overview HEC Difference HEC Difference Program details Program details Research areas Research areas HEC Community HEC Community Placement Placement Job Market Job Market Admissions Admissions Financing Financing Executive Education Executive Masters Executive Masters Executive Certificates Executive Certificates Executive short programs Executive short programs Online Online Companies Companies Executive MBA Executive MBA Infinity Pass Infinity Pass Summer School Youth Programs Youth Programs Summer programs Summer programs HEC Online Overview Overview Degree Program Degree Program Executive certificates Executive certificates MOOCs MOOCs Summer Programs Summer Programs Youth programs Youth programs
Executive Education

40% of companies will be dead in ten years

40% of companies will be dead in ten years, according to former Cisco CEO John Chambers. Those that do survive, he said, will turn into digital techie versions of themselves. Others will fail trying.

edfez

This grim prediction was recently made by John Chambers, who stepped down from his role as CEO after 20 years, in a keynote speech he gave at Cisco's customer service conference.

"40% of businesses in this room, unfortunately, will not exist in a meaningful way in ten years," he told the 25,000 attendees. Chambers added that 70% of companies would attempt to go digital, but only 30% would succeed.

 

The impact of digital transformation

According to Chambers, companies now face the important choice of either adapting to this new digital age or resisting change and adhering to traditional business models.

Chambers believes that the increase from 1,000 to 500 billion devices connected to the Internet during the digital age will irrevocably change health, education and business and that companies that do not change with the times will disappear. He further warned leaders that businesses that aren't left behind, but are slower to transform and use technology effectively, will be "disrupted."

 

Managing the transition

Many notable companies have already successfully undergone digital transformations. In 2013, GE launched a cloud service that provides customers with access to analytic software to improve the way they use products. Netflix has expanded to streaming video content to TVs, desktops and mobile devices. Streaming now accounts for 80% of Netflix's revenue, with shipping orders rapidly decreasing.

Cisco struggled to stay afloat until it underwent its own digital transformation. The transition resulted in a reorganization of its 25,000-person engineering team and the release of 24 of its 92 leaders. During Chambers' time as CEO, Cisco changed 41% of its client-interfacing executives. If they hadn't changed, Chambers points out, they would have been left behind. Companies wanting to compete in this rapidly growing digital environment may need to consider changes that are just as drastic.