RESEARCH REPORT
Reinvent productivity to lead in change
Accenture China Digital Transformation Index 2024
3-MINUTE READ
August 20, 2024
In 2023, the Global Disruption Index increased by 33% year-on-year. Most notably, technological disruption index rose 88%, mainly driven by the rise of Gen AI.
Companies in China are feeling the pressure. Nearly 40% of Chinese executives report experiencing unprecedented changes in their operating environment—far higher than the global average of 12%. This highlights their sensitivity to market dynamics and the considerable impact of the shifting external business environment.
However, Chinese executives feel less prepared to navigate this challenging and evolving business environment. Only 30% of Chinese companies feel ready for geopolitical risks and 34% are prepared for economic downturns—15 and 13 percentage points lower than the global average.
2024 marks the second year of the upgrade to Accenture's Digital Transformation Index Framework. 4% of the surveyed 450 companies have become "Reinventors" by reinventing various businesses and functions, aiming to pioneer new competitive frontiers, an increase of 2 percentage points from 2023.
In this rapidly evolving landscape, companies in China are refocusing on innovation and growth to achieve breakthroughs. This year’s Digital Transformation Index reflects this shift, with the overall score increasing from 44 to 46, driven by strong improvements in establishing new competitive frontiers and accelerating growth. However, challenges persist, particularly in the areas of digital core development and talent capabilities, which continue to score the lowest.
As companies strive to stay ahead and adapt to fast-changing markets, they are increasingly turning to AI to fuel their innovation efforts. In particular, Gen AI has captured the public’s imagination, opening up unprecedented possibilities for creativity and efficiency.
59%
Chinese companies intend to boost investment in digital transformation projects.
90%
Chinese companies view Gen AI as a significant opportunity to improve both their top and bottom lines.
When restricted to individual use cases in the absence of a holistic plan, the impact of AI will be greatly limited.
AI will dramatically change the way work is done. If enterprises are unable to predict these changes and adjust accordingly, they will face risks such as losing talent and resource misallocation.
AI has raised the requirements on enterprise architecture and IT operating models, with unstructured and synthetic data becoming more important. Immature tech capabilities will not be able to absorb AI, let alone maximize value from it.
Enterprises must move beyond traditional efficiency-focused applications and adopt a holistic approach that aligns AI initiatives with business objectives. Strategic AI investments should be prioritized over conservative, short-term gains.
Enterprises must assess their current digital maturity and ensure technology investments are coupled with business strategy. They should focus on eliminating data silos, enhancing data accuracy and enabling seamless data flow across the organization.
Enterprises must place people at the center of their transformation strategies. This requires updating talent strategies to align with new technologies and business models.
Enterprises should establish clear principles for responsible AI use and foster a corporate culture that prioritizes ethical AI use and includes ongoing training for employees on responsible practices.