Most large businesses are committing to the digital technologies that are transforming their industries. But Accenture analysis reveals that the vast majority are not yet translating these digital investments into better financial performance and, importantly, new growth.
To help C-suite leaders better understand the interplay between digital and financial performance, Accenture has created the Digital Performance Index, based on our study of 343 leading global companies across eight industries.
We invite you to explore the digital performance of your company and to benchmark it against its peers.
Digital High Performers turn digital investments into sustained financial performance
Eighteen percent of companies are Digital Leaders. They demonstrate strong digital capabilities, but have yet to generate sustained and impressive financial returns.
The 6 percent who are Digital High Performers go further by optimizing their digital investments through more strategic capabilities. This gives them 44 percent higher revenue growth scores over Digital Leaders and helps explain their more consistent performance.
As a result, investors reward Digital High Performers, giving them a Future Value score 48 percent higher than Digital Leaders.
Digital High Performers master rotating to the new
Few Digital High Performers are digital natives. Yet they manage to use digital technology as both an enabler and a driver of change in their legacy organizations. In short, they master rotating to the new.
Rotating to the new breaks with convention. In the past, many companies exploited new digital opportunities by separating new businesses from existing core business which were treated as cash cows. Instead, companies should no longer distinguish between the core and the new, but focus on developing new digital opportunities within existing core businesses.
To be successful with this approach requires four key elements:
Transformation of the Core, to drive investment capacity
Growth from the Core, to sustain growth
Growth from New Businesses, through experimentation and failing fast
Wise Pivot, to balance investments between the near term and the long term, between the core and the new
Digital Higher Performers apply digital in all four areas of business activity
Digital High Performers leverage the collective intelligence of disruptors, third-party partners and even competitors to capture growth opportunities. And they do so at speed.
Digital Production and Delivery
They use smart systems and rich data to create new revenue generating services that add customer value to existing product lines.
Digital Customer Experience
They tailor services and customer engagement at scale, using data analytics, social media and customer service transformation.
Digital Culture and Operations
They actively renew their organization by optimizing digital infrastructure, upskilling employees or formalizing "fast fail" methods. They experiment and reinvent their business rather than pursue incremental change.