{"id":10960,"date":"2019-12-12T12:41:00","date_gmt":"2019-12-12T18:41:00","guid":{"rendered":"https:\/\/blog.planview.com\/?p=10960"},"modified":"2019-10-30T09:31:19","modified_gmt":"2019-10-30T14:31:19","slug":"why-enterprises-are-failing-a-look-inside-trends-affecting-the-sp-500","status":"publish","type":"post","link":"https:\/\/blog.planview.com\/why-enterprises-are-failing-a-look-inside-trends-affecting-the-sp-500\/","title":{"rendered":"Why Enterprises Are Failing: A Look Inside Trends Affecting the S&P 500"},"content":{"rendered":"

\"Why-Enterprises-Are-Failing_A-Look-Inside-Trends-Affecting-the-S&P-500\"<\/p>\n

By 2027, according to research by Innosight<\/a>, the average lifespan of an S&P 500 company is expected to be just 12 years, exactly half of what it was only a few years ago (24 years in 2016). This shrinking lifespan is caused by a number of factors\u2014record private equity activity, a robust M&A market, and the growth of \u201cunicorn\u201d startups with billion-dollar valuations, to name a few. Rapidly evolving technology and economic shocks, led by geopolitical forces, are also at play, which are largely outside of the control of enterprise leaders.<\/p>\n

But frequently, it\u2019s not external factors, but a failure to recognize or respond to them internally, that contributes to the fall of the modern enterprise. The business landscape is littered with cautionary tales of once-untouchable enterprises that failed suddenly, and swiftly: Blockbuster, Kodak, and Yahoo to name a few. What went wrong? A lack of innovation, certainly. But perhaps even more importantly was an unwillingness to evolve internal processes enough to impact time-to-market and customer or market demands.<\/p>\n

Blockbuster never saw Netflix coming. By the time it began experimenting with streaming services, it was too late. In 2012, when Kodak went bankrupt, it was still focused on photo printing. Just a few months before, Facebook had bought Instagram for $1 billion\u2014a clear sign that the direction of the market for sharing photos was moving online.<\/p>\n

At the current rate, nearly half of the S&P 500 companies will be replaced over the next decade. No one is safe from the forces of disruption. Retailers have already been heavily hit, a trend which is expected to continue, but there are also strong indicators of disruption in financial services, healthcare, energy, travel, and real estate.<\/p>\n

Given the imperative for change, why are so many enterprises reluctant to do so? The reasons, which we\u2019ll explain in this post, vary but each of them speaks to an overall need for a change in how enterprises operate at their core. Dual transformation\u2014an approach for making the core business more resilient while at the same time pursuing a strategy to drive tomorrow\u2019s growth\u2014is a job for which Lean and Agile<\/a> are purpose-built. You can read more about that in our eBook, 5 Lean-Agile Culture Shifts to Achieve and Sustain Organizational Agility<\/a>. In this post, we\u2019ll discuss trends driving the shrinking lifespan of the S&P 500, to help you get ahead.<\/p>\n

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