Gartner Research

Don't Blame Technology for the Decline in Corporate Longevity

Published: 30 November 2015

ID: G00294147

Analyst(s): Ken McGee

Summary

Corporate life spans are undoubtedly declining, but is technology the primary reason? The evidence leads us to conclude that CIOs must become more assertive in their role to ensure that business executives don't repeat the mistakes that commonly lead to corporate failure.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • A lack of familiarity with research on the causes of company failures may cause executives to believe that technology is the primary reason
  • Believing that recent sharp reductions in corporate life spans are primarily due to technology will cause executives to prescribe ineffective strategies that are based on incomplete or incorrect conclusions
  • Continued reductions in corporate life spans will dissuade executives from conducting long-term strategic planning efforts, which will reinforce and perpetuate this trend
  • Appendix 1
    • Corporate Longevity of Companies on Stock Exchanges and Stock Indexes
  • Appendix 2
    • Corporate Longevity on Popular Business Listings

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