Despite CEOs’ Strong Confidence in Their Technologies, Most Companies Are Facing Limited Growth Due to an ‘Innovation Ach...
21 January 2020 - 4:01PM
Business Wire
Accenture study shows companies that invest in
scaling technology innovation across their organizations generate
more than twice the rate of revenue growth
While a majority of CEOs express strong confidence in the
effectiveness of their current information technology (IT) systems,
most are struggling to achieve levels of innovation that drive
growth and revenue, according to a global study by Accenture (NYSE:
ACN).
“Your Legacy or Your Legend? A CEO’s Guide to Getting the
Most Out of New Technologies,” is based on Accenture’s largest
enterprise IT study conducted to date, including survey data from
more than 8,300 organizations across 20 countries and 885 CEOs.
The research, which analyzed the adoption of both mature and
emerging technologies – such as artificial intelligence (AI),
cloud, blockchain, and extended reality – found that just 10% of
companies are making optimal technology investment and adoption
decisions and realizing the full value of those investments. By
adopting new technologies more aggressively and breaking down
barriers to effectively scale innovation across their
organizations, these leading companies are generating more than
twice the rate of revenue growth than those on the lower end of the
spectrum.
At the same time, the study found that 80% of CEOs believe they
have the right technologies in place to innovate at scale, and 70%
claim to be very knowledgeable of their organization’s investments
in innovation.
“Most companies are risking significant future revenue growth
because of the gap between the potential and realized value of
their technology investments,” said Paul Daugherty, Accenture’s
chief technology and innovation officer. “Our report offers CEOs a
new roadmap to help make strategic investments that narrow this
innovation achievement gap and fuel higher growth.”
As part of its study, Accenture identified five key factors — or
“PATHS” — that distinguish the top 10% of companies from the
rest:
- Progress: The extent to which companies apply new
technology to evolve business processes across the enterprise. One
example is the use of cloud and artificial intelligence (AI) to
increase the effectiveness of multiple business processes rather
than working in silos.
- Adaptation: Ensuring that IT systems can adapt and
respond to changing market conditions with actions such as
decoupling from legacy systems and using cloud services as a
catalyst for innovation.
- Timing: Creating an appropriate sequence and roadmaps
for deploying new technology. This begins with identifying
foundational technologies and prioritizing adoption based on their
enterprise-wide impact.
- Human+machine workforce: Using technologies to augment
employees and make work more engaging while simultaneously
realizing efficiency gains. This could entail delivering
technology-augmented training that is personalized and experiential
for working with technologies of the future.
- Strategy: Actively aligning business strategy and IT
strategy and weaving technology investments together to better
seize opportunities.
“Companies that are not actively building enterprise-wide
systems that are fully optimized for all of the rapidly-maturing
technologies will find it difficult to catch up, and will see that
reflected negatively in their financial performance,” said James
Wilson, managing director of Information Technology and Business
Research at Accenture.
More information on “Your Legacy or Your Legend? A CEO’s Guide
to Getting the Most Out of New Technologies,” including
infographics, is available here. For additional information on
Accenture’s Davos research program, click here. Follow the
conversation at Davos on Twitter with #AccentureAtDavos and
#WEF20.
About the Research
“Your Legacy or Your Legend? A CEO’s Guide to Getting the Most
Out of New Technologies” is based on a survey of more than 8,300
organizations across 20 industries and 20 countries and was
designed to help companies understand and close the innovation
achievement gap, which is defined as the difference between
potential and realized value from technology investments. The study
scored companies on three important dimensions: technology
adoption, depth of technology adoption, and organizational and
cultural readiness. The report builds on Accenture’s study, “Full
Value. Full Stop. How to scale innovation and achieve full value
with Future Systems,” released in October 2019, which is also based
on the same research.
About Accenture
Accenture is a leading global professional services company,
providing a broad range of services and solutions in strategy,
consulting, digital, technology and operations. Combining unmatched
experience and specialized skills across more than 40 industries
and all business functions — underpinned by the world’s largest
delivery network — Accenture works at the intersection of business
and technology to help clients improve their performance and create
sustainable value for their stakeholders. With 505,000 people
serving clients in more than 120 countries, Accenture drives
innovation to improve the way the world works and lives. Visit us
at www.accenture.com.
Copyright © 2020 Accenture. All rights reserved. Accenture and
its logo are trademarks of Accenture.
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Julie Bennink Accenture +1 (312) 693-7301
julie.l.bennink@accenture.com
Christian Harper Accenture +1 (917) 452-4417
christian.harper@accenture.com
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