CISCO Chairman and CEO John Chambers said at the Cisco Live conference which began on Monday that four out of ten companies will disappear in 10 years if they don’t digitally transform themselves.
"40 percent of businesses in this room, unfortunately, will not exist in a meaningful way in 10 years," Chambers told a crowd of 25,000 attendees.
He also said that 70 percent of companies will “attempt” this transformation but only 30 percent will succeed.
According to Chambers 90 percent of CEOs today believe that going digital is a must.
“It will become a digital world that will change our life, our health, our education, and our business models at the pace of a technology company change,” he said.
Chambers talked about how his company went through a transformation in which 24 of its 92 leaders were let go and its 62 business units were cleaned.
He said that Cisco has spent $400 million during the process and gained an extra $5.4 billion in revenues.
“We have completely turned our organisation on its head. The technology was the easy part," he said. "It was about changing our leadership.”
Chambers will step down next month as CEO but will remain as executive chairman.