Chief Strategy Officers Say Digital Disruption is Inevitable, But Few Are Prepared, Finds Accenture Report
July 26 2016 - 6:57AM
Business Wire
A winning business strategy will be built on
cross-industry platforms, deeper alliances, and more collaborative
operating models
Nearly all of the Chief Strategy Officers (CSOs) surveyed by
Accenture (NYSE:ACN) around the world acknowledge that digital
disruption will reshape their industries, but very few are equipped
to navigate the change. Those who feel most prepared are embracing
new strategic alliances, devising more collaborative ways of
operating with partners, and making themselves indispensable within
a broader ecosystem.
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For the report ‘Thriving on Disruption’, the Accenture Institute
for High Performance surveyed 561 CSOs across 10 industries in 11
countries, and found that while 93 percent agree that new
technologies will rapidly change their industry in the next five
years, only 20 percent are well prepared for sudden industry
disruption.
“Rapid and disruptive change is coming, regardless of the
industry that you operate in,” said Paul Nunes, managing director,
Accenture Institute for High Performance. “Current economic outlook
suggests that based on the declining lifespan of companies, 75
percent of today’s leading industry players will be gone within the
next decade. Our research shows that although some companies aren’t
ready for this disruption, they can borrow from the playbook of
those who are by ensuring they don’t face it alone and make
strategic investments in technology platforms that support more
collaborative operating models.”
Companies that are better prepared for industry disruption are
much more engaged in growing and broadening their ecosystem
partnerships. Almost all of the best-prepared CSOs (95 percent) say
that their company growth agendas over the next five years rely on
collaborative partnerships and that they actively use this strategy
to support innovation and research and development, as compared to
only half of those who admit they are less prepared.
Therefore, it’s not surprising that the companies that are
disruption-ready are also 34 percent more likely than those less
prepared to partner with advertising agencies, innovation companies
(26 percent more likely), design service providers (24 percent more
likely) and even customers (26 percent more likely). They are also
36 percent more likely to collaborate with companies beyond their
traditional industry boundaries, and 32 percent more likely to
align with companies they consider direct competitors. This
collaboration gap has only increased in the past five years.
“As digital disruption breaks down the walls of established
industries, it’s time for companies to rethink their approach to
business strategy,” said Peter Lacy, managing director, Accenture
Strategy. “In order to successfully navigate industry convergence
and strengthen their network of alliances to build truly
collaborative operating models, they must shift their mindset to
compete as a ‘cluster,’ not as a single company, creating shared
value for their alliance partners and customers.”
A significant majority (88 percent) of CSOs who claim to be very
well prepared for industry disruption have already begun investing
heavily in platform-based business models and will continue to do
so into the future. This compares to only 42 percent of those who
admit they are less prepared.
Among the group of CSOs who are actively investing in these
platforms, those that achieve the greatest benefits are far more
likely than their peers to build operating models that are
collaborative and open. They embed collaboration into their culture
through incentives, and revise their internal processes and
technologies to make external collaboration ever more seamless.
“Platform companies are successful because they capitalize on
the innovation of an entire ecosystem versus only leveraging
resources within a company,” Peter Lacy continued. “Business that
are well prepared for disruption are building their growth strategy
on platforms and, as a result, are more likely to survive the
disruption and gain competitive advantage.”
Methodology
The Accenture Institute for High Performance surveyed 561 CSOs,
or their direct reports, at companies with revenues greater than $1
billion spanning 10 industries, including automotive, banking,
chemicals, consumer goods and services, insurance, oil and gas,
pharmaceuticals, retail, telecommunications and utilities. The
online and phone survey was conducted between December 2015 and
February 2016 and included 11 countries – Brazil, Canada, China,
France, Germany, India, Italy, Japan, Spain, the United Kingdom and
the United States.
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 more than 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.
Accenture Strategy operates at the intersection of business and
technology. We bring together our capabilities in business,
technology, operations and function strategy to help our clients
envision and execute industry-specific strategies that support
enterprise wide transformation. Our focus on issues related to
digital disruption, competitiveness, global operating models,
talent and leadership help drive both efficiencies and growth. For
more information, follow @AccentureStrat or visit
www.accenture.com/strategy.
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AccentureJustyna Gnyp,
+44-750-012-4567justyna.gnyp@accenture.com
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