Preparing for Disruption Preparing for Disruption

The prosperity that Australia enjoys today will be challenged in the next decade. Disruptive technology will create fewer but bigger winners and more losers. Business leaders will have to increase their risk appetite, discover new ideas, pursue more radical strategies, and take bigger steps. In the face of adversity, Australia must respond.

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After 25 years of uninterrupted growth, Australia and its companies are in a position of strength. But over the next decade, however, corporate leaders face a pivotal choice: adopt a defensive, risk-averse position and protect the country’s good fortune, or go on the offensive, by doubling down on innovation, aggressively entering international markets, and insisting on world-class standards in everything they do.

Today, Australia ranks in the second quartile in productivity, innovation, and globalisation among the world’s 40 largest economies. The country is in the early stages of a downturn in the commodities super-cycle, with the full force of a decelerating Chinese economy and a wave of new disruptive technologies about to hit its shores. We believe that, without a compelling strategy to improve its long-term competitiveness, Australia is at risk of decline.

Recently, we discussed our analysis with more than 20 CEOs and board chairs from the major Australian economic sectors who collectively control or influence close to 10 percent of the nation's economy. While reactions vary, all agree that the next decade will reset the nation's trajectory, with significant implications for generations of future Australians.

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Interview with Paul A. Laudicina, Erik R. Peterson, and Adam Dixon. 

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