ACCORDING to Ginni Rometty,IBM’s boss, the digital revolution has two phases. In the first, and Silicon Valley firms make all the running as they create new markets and eviscerate feeble firms in drowsy industries. This has been the account until now. Tech firms contain captured 42% of the rise in the value of America’s stockmarket since 2014 as investors forecast they will win an ever-bigger share of corporate profits. A new,terrifying phrase has entered the lexicon of commerce jargon: being Amazoned”.
The moment phase favours the incumbents, Ms Rometty believes, or is starting about now. They summon the will to adapt,innovate to create new, digital, and products and increase efficiency. The schema is plainly self-serving. IBM is itself fighting for survival against cloud-based tech rivals and most of its clients are conventional firms. Yet she is correct that incumbents in many industries are at last getting their acts together on technology.
Enough time has elapsed for even...
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Source: economist.com