Thriving in the age of disruption
February 25, 2020
February 25, 2020
Our research shows that companies that thrive in disruption invest in the future and purposefully prepare their business for change. They strike a delicate balance between maintaining course and speed, remaining focused on their core while reinventing it, and simultaneously creating investment capacity to scale new businesses. We call this approach, the Wise Pivot.
Our research indicates that despite growth in top line, Indian companies have been cautious with their investments over the past few years. This hesitation can be explained by two investment decision challenges faced by large companies today:
Pivoting wisely means that the company’s investment strategy will need to flex; there are four different “starting” scenarios to consider, each reflecting a different level of investment capacity and velocity. Accenture leveraged its diagnostic model to evaluate the investment and financial activities of more than 900 Indian companies across industries undertaking the Wise Pivot. The model assessed their pivot intensity using the investment capacity and investment velocity measures. The results were interesting, insightful and complex with different scenarios providing different strategic options to the enterprises.
There is no magic formula to master the pivot. What it takes is the willingness to disrupt, and the willpower to keep moving forward. Wise pivot requires the leaders to bring the right mindset to the decision-making table.
The success stories of tomorrow will be determined by C-level executives who know how and when to focus on innovation-led initiatives that can release value fast in the legacy and new businesses.