The hyperconnected economy is a multi-phase research programme conducted by The Economist Intelligence Unit, sponsored by SAP. The first phase reviewed the existing literature and interviewed experts and academics on the economic consequences of hyperconnectivity. Phase two focuses on how hyperconnectivity applies at an organisational level.

1. Human society is becoming ever more
interconnected, with the number of connected
devices expected to increase thirtyfold between
2009 and 2020.
The sharp increase in interconnectedness that
results from the Internet, mobile technology
and the Internet of Things (IoT) is referred to
as “hyperconnectivity”. This is not merely a
technology trend. It is the era-defining cultural
milieu in which we live—and in which businesses
operate—in the 21st century.
The hyperconnected economy is a multi-phase
research programme conducted by The Economist
Intelligence Unit (EIU), sponsored by SAP. The
first phase reviewed the existing literature
and interviewed experts and academics on the
economic consequences of hyperconnectivity.
Phase two examines how hyperconnectivity
applies at an organisational level. For this, the
EIU surveyed 561 business leaders from across
the globe and from a range of industries, job
functions and company sizes.
The results of the survey are presented in this
executive summary. A forthcoming report will
analyse the findings in greater depth.
The key findings are:
Organisations recognise that adapting to
hyperconnectivity is crucial for their survival.
Almost six out of ten respondents (59%) agree
with the statement that “failure to adapt to
hyperconnectivity is the biggest risk that our
organisation faces”. This response is most
common among retailers (68%) but unusually
low among consumer goods companies (45%).
A clear majority of respondents nevertheless
believe that hyperconnectivity has been positive
for their organisation (86%) and for their
industry (83%) so far. However, nearly one-
third agree that it “presents more threats than
opportunities”. This view is more common among
retailers (44%) and companies from the Asia-
Pacific region (44%). Organisations generally
believe that they are meeting the challenges
effectively, with 69% of respondents agreeing
that their company “is doing a good job of
A report from The Economist Intelligence Unit
THE HYPERCONNECTED ECONOMY PHASE 2:
EXECUTIVE SUMMARY
HYPERCONNECTED
ORGANISATIONS
Human society is becoming ever more
interconnected, with the number of connected
devices expected to increase thirtyfold between
2009 and 2020.
The sharp increase in interconnectedness that
results from the Internet, mobile technology
and the Internet of Things (IoT) is referred to
as “hyperconnectivity”. This is not merely a
technology trend. It is the era-defining cultural
milieu in which we live—and in which businesses
operate—in the 21st century.
The hyperconnected economy is a multi-phase
research programme conducted by The Economist
Intelligence Unit (EIU), sponsored by SAP. The
first phase reviewed the existing literature
and interviewed experts and academics on the
economic consequences of hyperconnectivity.
Phase two examines how hyperconnectivity
applies at an organisational level. For this, the
EIU surveyed 561 business leaders from across
the globe and from a range of industries, job
functions and company sizes.
The results of the survey are presented in this
executive summary. A forthcoming report will
analyse the findings in greater depth.
The key findings are:
Organisations recognise that adapting to
hyperconnectivity is crucial for their survival.
Almost six out of ten respondents (59%) agree
with the statement that “failure to adapt to
hyperconnectivity is the biggest risk that our
organisation faces”. This response is most
common among retailers (68%) but unusually
low among consumer goods companies (45%).
A clear majority of respondents nevertheless
believe that hyperconnectivity has been positive
for their organisation (86%) and for their
industry (83%) so far. However, nearly one-
third agree that it “presents more threats than
opportunities”. This view is more common among
retailers (44%) and companies from the Asia-
Pacific region (44%). Organisations generally
believe that they are meeting the challenges
effectively, with 69% of respondents agreeing
that their company “is doing a good job of
A report from The Economist Intelligence Unit

2. 2 © The Economist Intelligence Unit Limited 2015
The hyperconnected economy: Phase 2 Hyperconnected organisations
adapting to hyperconnectivity”. The industry with the
least support for this statement is healthcare, with
65% of respondents agreeing.
Digital offerings from established competitors, not
digital start-ups, are the most significant source of
competitive pressure. Disruption at the hands of a
Silicon Valley start-up is the business bogeyman of the
current era, but so far companies have experienced
more competitive pressure from established companies
launching digital products. Over half (57%) of
respondents say they have experienced “moderate”
or “severe” competitive pressure as a result of
digital offerings from established competitors. This
proportion is highest among IT and technology firms
(81%) and companies from Asia-Pacific (74%). Start-
ups based on digital technology have been the source
of this kind of pressure for just under half (49%) of
respondents today. Looking ahead to the next three
years, again more respondents expect “moderate”
or “severe” competition from the digital offerings of
established competitors (69%) than from digital start-
ups (58%).
The acceleration of business processes is pushing
companies to automate. The most widely cited
organisational impact of hyperconnectivity is that
“business processes have accelerated”. Healthcare
providers and manufacturers are especially likely
to have experienced this (in both cases 53% of
respondents). It stands to reason that “automat[ing]
business processes” is the most commonly cited
organisational response (46%). Healthcare companies
are particularly eager adopters of business process
automation (58%). In future, respondents believe that
hyperconnectivity will make their organisation more
agile, more innovative and less centrally controlled,
the most popular prediction being that “the ability of
central management to control the organisation will
be reduced”, cited by 46% of respondents.
Working methods and skills requirements are
evolving. Nearly four out of ten respondents say their
organisation has introduced digital skills training
(39%), reflecting the changing nature of everyday
work in the hyperconnected age. This training is
especially common among manufacturers (45%). The
way in which work is organised is also changing, and
the same proportion (39%) say they have “adopted
agile development and/or project management
techniques”. This proportion is highest among IT
and technology firms (53%). The least common of
the organisational responses offered is “having
appointed a chief digital officer”. Cited by just 19%
of respondents, it is most common among financial
services (25%) and manufacturers (25%), and least
among healthcare companies (10%).
The most common response to increased
competition resulting from hyperconnectivity
is to enter new markets, as adopted by 47% of
respondents. Luckily for them, hyperconnectivity
has also made it easier to identify new markets
that are suitable for companies to enter (41%).
Organisations are looking to other geographical
locations for suppliers as well as customers, and
38% of respondents report that hyperconnectivity
has improved their ability to work with international
suppliers. This is especially true among manufacturers
(44%). Looking forward as hyperconnectivity grows,
45% of respondents believe that an increasingly
globalised supply chain will allow them to reduce costs
significantly. Interestingly, this view is widely held
among healthcare (including pharmaceutical and
biotech) companies (59%).
Hyperconnectivity is driving a move towards mass
personalisation. Half of respondents (50%) believe
that the continued growth of hyperconnectivity will
mean that “products and services will be increasingly
tailored to customers’ individual needs”. Surprisingly,
this view is less widely held by retailers (36%) than
by other industries. To date, the most common
consequence of hyperconnectivity for customer
relationships has been that “digital channels have
allowed more direct contact between customers and
employees” (39% of respondents)—a view that is
actually more widely held among retailers (50%).
In second place is “customers typically check online
reviews or social media before purchase” (38%).
Nearly half of the organisations surveyed (48%) have
responded to hyperconnectivity by “tak[ing] efforts to
improve our visibility and reputation on social media
that have improved our business”. This approach
is particularly popular among financial services
companies (54%).