By Laurie McCabe, Sage Intacct
“Digital transformation” may sound like a buzzword, but the drivers behind it are very real. In an era where technology is reshaping businesses and industries, companies that harness technology can reap big advantages over those that don’t. Businesses must first determine how to adapt their businesses for the digital age and then put technology to work to bring these changes to life.
Technology Speeds Up the Creative Destruction Cycle for Businesses
As the rate of technological innovation increases, the pace at which businesses rise and fall—known as the “creative destruction cycle”—speeds up too. In 1965, the average tenure of companies on the S&P 500 was 33 years. By 1990, it was 20 years. And it's forecast to shrink to 14 years by 2026. If this forecasted churn rate holds, 50% of today’s S&P 500 will replaced over the next 10 years.