Forces shaping the business environment
Executives around the world see innovation and the free flow of information as the primary drivers of an accelerating pace of change in the global business environment. At the same time, executives continue to confront familiar and powerful forces that bear the unmistakable signature of an emerging global market—plentiful, cheap, and mobile capital; expanded access to talent and labor pools; and a reduction in trade barriers.
The survey findings paint a picture of an increasingly competitive business world, characterized by great opportunity and risk. But while executives appear to have opportunities at the front of their minds, they may be underrating some of the equally great risks involved.1
The respondents cited a broad range of factors that they see as contributing most to the accelerating pace of change. Of these, innovation in products, services, and business models as well as the greater ease of obtaining information and developing knowledge figure most prominently, with 41 percent of the responses (Exhibit 1).
Against the backdrop of accelerating change, 85 percent of respondents describe the business environment in which their companies operate as "more competitive" (45 percent) or "much more competitive" (40 percent) than...