RESEARCH REPORT

In brief

In brief

  • Disruption is a reality and it’s happening now. An estimated US$1.8 trillion of enterprise value in India is at risk of displacement.
  • Companies intensely focused on their core business find it difficult to make the bold moves required to capture new opportunities.
  • The apprehension is understandable, and caution is crucial, yet inaction is not an option.


Prepare for change or perish

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.

A cautious approach by Indian companies

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:

  • Inability to replenish investment capacity, continuously.
  • Fear of getting the pace and direction of investments wrong.

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.

Script your own growth story – It’s your move

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.

  1. Creating strong commitment for new businesses, early, and from the top of the organization.
  2. Unlocking synergies between existing and new businesses, to create confidence & fuel for growth.
  3. Scaling new businesses intelligently through external sources of funding, and ecosystem partnerships.

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.

Anindya Basu

Geographic Unit and Country Senior Managing Director – Accenture in India


Himanshu Patney

Thought Leadership Senior Principal Accenture Research

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