Small Minority of Industry Leaders Achieve Both Digital and Financial High Performance
June 28 2016 - 2:47PM
Business Wire
Digital Performance analysis reveals how
Digital High Performers stand out
A small minority of leading global companies are significantly
outperforming their industry peers by combining strong commitment
to digital technologies with strong financial performance,
according to new analysis by Accenture (NYSE:ACN).
This Smart News Release features multimedia.
View the full release here:
http://www.businesswire.com/news/home/20160628006484/en/
Digital High Performers turn digital
investments into sustained financial performance
The Accenture analysis, published in Digital Performance,
Rotating to the New, examines 343 companies across eight industry
sectors. It identifies 18 percent of the sample as Digital Leaders,
who have invested significantly in digital but who have not
delivered outstanding financial outcomes. However, only six percent
are classed as Digital High Performers, who have successfully
translated their digital investments into both higher profitability
and growth.
Digital High Performers outscored Digital Leaders by 44 percent
on revenue growth and 34 percent on profitability, according to the
Accenture Digital Performance Index. Together with their greater
returns to shareholders, Digital High Performers’ financial
outcomes resulted in investors awarding them 48 percent higher
future value than other companies who had similar levels of digital
commitment (see Figure 1).
“Many companies fail to translate their significant digital
investment into lasting financial success because they focus simply
on efficiencies and short term profitability and less on longer
term growth,” said Omar Abbosh, Chief Strategy Officer, Accenture.
“Our analysis shows that Digital High Performers identify trapped
value in their organization and across their value chains that
enable them to generate sustained growth in new digitally contested
markets.”
The Accenture Digital Performance model measures major companies
in each industry sector against 42 business activities and 117
behavioral metrics that reflect their implementation of digital
technologies. These are grouped into four categories that cover
running a business. Digital High Performers successfully pursue all
four.
- Plan: They shape and implement digital
strategies that leverage the collective intelligence of disrupters,
partners and competitors to identify and capture growth in core and
adjacent industries.
- Make: They use digital technologies –
such as mobile, cloud, analytics, robotics, cyber security and the
industrial Internet – to transform innovation, design and
production, as well as to create digital products and
services.
- Sell: They create hyper-personalized
customer experiences across both digital and physical channels,
engaging with customers long after transactions are completed.
- Manage: They use digital to redesign
processes and culture, and to equip workforces with the new skills
needed to create more agile and experimental organizations.
“Digital High Performers set the example of how to rotate to the
new,” continued Omar Abbosh. “Instead of simply driving
efficiencies in their core businesses while exploring new
opportunities elsewhere, the most successful companies refuse to
distinguish between the core and the new. They don’t just maintain
their core businesses but invest in them, transforming them into
platforms for new customer experiences and revenue streams.”
The Accenture Digital Performance Index (DPI) finds a
significant difference in the levels of digital commitment and
investments between sectors. The communications, hi-tech and retail
sectors scored above average DPI scores. The energy and consumer
goods and services sectors scored below average.
Accenture will be extending the Digital Performance modelling to
a range of other industries in the coming months and is offering
clients the opportunity to assess their digital and financial
performance against peers and digital disruptors.
Learn more about Digital Performance by visiting:
https://www.accenture.com/us-en/insight-digital-performance
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 approximately
375,000 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160628006484/en/
AccentureMatthew McGuinness, + 1 917 282
7187matthew.mcguinness@accenture.com
Accenture (NYSE:ACN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Accenture (NYSE:ACN)
Historical Stock Chart
From Apr 2023 to Apr 2024