Over the past few decades, tech giants — such as Amazon, Apple, Google, and Microsoft — have mastered the latest technologies and are hotbeds of experimentation, innovation, and growth. Now, thanks to the widespread availability of relatively cheap and powerful technology, mainstream companies—your local power company, your neighborhood tire manufacturer, your regional bank—can be as tech-savvy as Google.
A survey by Accenture Research found that some mainstream companies have made the leap to become tech-savvy. Additionally, these companies reported seeing positive results. The survey’s authors said embracing digital transformation means mainstream companies can gain access to and leverage the same game-changing capabilities that big tech companies have enjoyed for years. “With a digital core, every company can aspire to create breakthrough innovations in their industry and adjacent markets—areas that were previously the domain of digital native companies.”
A survey of 1,516 executives by Accenture Research identified leading companies that are aggressively pursuing a “comprehensive reinvention” strategy. Only 8% of companies currently fall into this category. These companies are most likely to adopt a “strong digital core” that underpins all other strategic needs of the business. Expanding the role of technology in reinvention means moving from static, separate parts of the technology landscape to interoperable parts that intentionally integrate and leverage the cloud .” And that includes not just cloud adoption, but AI and even metaverse activity to some degree.
Of course, reinvention isn’t just about technology. Forward-thinking leadership is another essential quality for success in the digital world. When asked about potential hurdles, the top hurdles were funding and technical requirements. Lack of cultural readiness and capacity for change. Talent shortages are also hampering efforts.
The survey found that these leaders were eight times more likely to be successful or expected to be successful in delivering the business case compared to companies in the early stages of corporate reinvention. They also reported that they generated 22% incremental revenue growth, 21% cost reduction improvements, and 20% balance sheet improvements compared to less developed firms.
Additionally, leading companies reported achieving a 1.6x financial value in the first six months – reflecting how quickly these companies are executing and delivering value increases compared to less developed companies. In fact, 66 percent of leaders say their reinvention strategies are implemented much faster than past transformations. In contrast, only 10 percent of less developed firms felt the same.
Leading companies are also making strides in non-financial outcomes. Accenture researchers report that they are “looking beyond short-term financials to understand what creates long-term, sustainable value in a world where people have more power than ever to choose the companies they work with.” 76% of leaders say setting non-financial goals is very important, compared to just 10% of Laggard companies. Leaders “achieve superior results by thinking more deeply about how their reinvention will enable them to engage with customers and employees, deliver more sustainable results, and strengthen their approach to innovation.”