“Future-Ready” Organizations Leveraging Digital to Operate Faster & Smarter Could Help Unlock $5 Trillion in Economic Gro...
January 27 2021 - 5:14AM
Business Wire
The pandemic-driven acceleration of digital adoption and the
resulting new agile ways of operating could unlock $5.4 trillion in
profitable growth if applied broadly, according to a new report by
Accenture (NYSE: ACN).
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Operating faster and smarter offers a big
global payoff.
Accenture’s findings indicate that even amid the current
economic uncertainty, a small core of companies — about 7% — have
achieved nearly twice the efficiency and three times the
profitability of peers. These future-ready companies have
doubled-down on digital transformation and retooled operating
models, pivoting from incremental improvements to wholesale
reinvention.
Based on a global survey of 1,100 senior-level executives and
externally validated financial data, the report, “Fast Track to
Future-Ready Performance,” assessed the impact of achieving
progressive levels of business operations maturity with the highest
level being “future-ready.” The higher the maturity, the greater
the degree of digital capabilities, such as artificial intelligence
(AI), cloud, and data analytics.
“Uncertainty has also put a premium on new, agile ways of doing
things, reinforcing the idea that operations can be a catalyst for
competitive advantage, transformational value and growth,” said
Manish Sharma, group chief executive of Accenture Operations. “But
this only works if companies think big — transforming how the work
actually gets done across technology, processes and people.”
Achieving Future Readiness Future-ready enterprises
transform how work gets done by using rich data for
decision-making, augmenting people with artificial intelligence
(AI) and employing agile workforce models — with striking
differences in digital adoption and operational maturity. The areas
they focus on include:
- Cloud: Nine in 10 future-ready organizations (90%) —
versus 76% of other organizations — use cloud infrastructure at
scale, and 78% are also exploring new areas to scale and maximize
value.
- Machine Intelligence: With a focus on augmenting people
with technology, 71% of future-ready organizations have fully
adopted AI and data science capabilities — an 18-fold increase from
just 4% three years ago — and 38% now scale AI practices, compared
with just 3% of other organizations. That number is growing, with
63% of future-ready organizations expected to scale AI practices by
2023.
- Automate at Scale: Two-thirds (67%) of future-ready
organizations have adopted end-to-end digital processes and 58%
continue to scale leading practices, compared with 32% and 6%,
respectively, of other organizations. Four-fifths (82%) are
expected to scale leading practices by 2023.
- Smarter Data: Future-ready organizations are more than
10 times as likely as other organizations (52% vs. 5%) to use
analytics at scale — paired with better, more diverse data sets
(45% vs. 6%) — to generate actionable insights and inform
decision-making. Three-fourths (75%) are expected to use analytics
with diverse data by 2023.
- Agile Workforce: One-third (34%) of future-ready
organizations have adopted an agile workforce strategy at scale,
compared with just 4% of other organizations, enabling them to tap
into an expanded talent pool among ecosystem partners to mobilize
special talent as needed. Accenture estimates 71% will adopt an
agile workforce strategy by 2023.
“Future-ready organizations know that it’s about maximizing
talent in an era when people are critical to success,” Sharma said.
“They’re harnessing change by retooling operating models in ways
that capitalize on human ingenuity and machine intelligence to
transform the way people work and the business performs.”
Organizations are currently on different levels of operations
maturity in all industries. The findings indicate the percentage of
future-ready organizations in insurance (10%) and high tech (9%)
are generally higher than other industries. However, as the
pandemic forced unprecedented digital acceleration, Accenture
forecasts some industries will leap ahead by 2023 — with automotive
(48%), insurance (42%) and banking (37%) expected to emerge as
front-runners in future readiness.
By assessing what Accenture calls “transformational value” — a
concept that factors in financial performance and the
differentiated experience delivered — the research found
future-ready organizations achieve average efficiency gains of
13.1% and lift profitability by 6.4%.
Additionally, organizations that advanced to the ‘future-ready’
level in the past three years reported improvements in the speed of
product and services innovation (cited by 83%), employee engagement
and retention (80%), customer experience (75%), business value
generated from data (73%) and employee talent mix and reskilling
efforts (68%).
While the majority are making progress, Accenture’s findings
report 93% can do more and advancing business operations maturity
even by one level pays off. On average, companies with one higher
maturity level in 2020 were 7.6% more efficient in terms of lower
operating expenses per dollar of revenue, and 2.3 percentage points
more profitable in terms of EBITDA as a percentage of revenues.
The report, “Fast-Track to Future-Ready Performance,” is the
first in a research series that looks at the drivers and trends
shaping how enterprises and business functions operate
globally.
Methodology Accenture surveyed 1,100 senior-level
executives worldwide, 44% of whom were C-suite executives, across
11 countries and 13 industries. The research, conducted in 2020,
assessed four levels of business operations maturity — stable,
efficient, predictive and future-ready — with each level
underpinned by progressing digital capabilities, such as AI, cloud,
and data. The business impact was assessed by combining survey
responses with externally validated financial data from 810 of the
1,100 organizations surveyed.
About Accenture Accenture is a global professional
services company with leading capabilities in digital, cloud and
security. Combining unmatched experience and specialized skills
across more than 40 industries, we offer Strategy and Consulting,
Interactive, Technology and Operations services—all powered by the
world’s largest network of Advanced Technology and Intelligent
Operations centers. Our 514,000 people deliver on the promise of
technology and human ingenuity every day, serving clients in more
than 120 countries. We embrace the power of change to create value
and shared success for our clients, people, shareholders, partners
and communities. Visit www.accenture.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20210127005139/en/
Jenn Francis Accenture +1 312 693 4411
jennifer.francis@accenture.com
Accenture (NYSE:ACN)
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