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LEADING IN THE NEW


Digital fragmentation

Adapt to succeed in a fragmented world

DOING BUSINESS IN A
FRAGMENTED WORLD

The future course of global business is digital. But increasing obstructions to the flows of data, IT products, IT services and IT talent are jeopardizing the journey toward global digital business models. We call this process digital fragmentation.

The next phase of digital progress involves complexity that cannot be navigated alone. Find out the steps needed to rotate to the new.

COMPLEX TIMES

Barriers to globalization have been building for some time

200 new protectionist measures in 31 countries (2014 to 2016)

200 new protectionist measures in 31 countries (2014 to 2016)

1,000 protectionist measures introduced since 2008

1,000 protectionist measures introduced since 2008

34 to 109 growth in the number of countries with data privacy laws (1995 to 2015)

34 to 109 growth in the number of countries with data
privacy laws (1995 to 2015)

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Global media opinion has shifted dramatically for
terms related to...

DISRUPTIVE REALITY

There will be winners and losers in a fragmented world that is subject to:

CIOs and CTOs expect the sourcing of inputs like IT talent to be the most important driver of cost increases due to digital fragmentation. It will also be costly to meet requirements to duplicate or multiply IT infrastructure, like data centers, and to comply with multiple national IT standards. 91% SAY RISING BARRIERS TO GLOBALIZATION WILL INCREASE IT COSTS IN THE NEXT THREE YEARS.

CIOs and CTOs need to remain informed about new and upcoming legislation that will affect their global IT strategy. 51% ARE ALREADY REORGANIZING GLOBAL IT ARCHITECTURES DUE TO INCREASING BARRIERS TO GLOBALIZATION.

CIOs and CTOs see restrictions affecting several capabilities that are central to digital growth and innovation. Sales, marketing, and research and development all scored high as business functions vulnerable to obstructed global flows. 86% SAY IT STRATEGIES AND SYSTEMS ARE VULNERABLE TO INCREASING BARRIERS TO GLOBALIZATION.

FOUR STEPS TO JOINED UP THINKING

CIOs AND CTOs
ARE WORRIED…

86% increasing barriers to globalization will be a problem for the IT function in the next three years

increasing barriers to globalization will be a problem for the IT function in the next three years

74% likely to exit a market, delay or abandon market-entry plans in the next 3 years due to increasing barriers to globalization

likely to exit a market, delay or abandon market-entry plans in the next 3 years due to increasing barriers to globalization

THEY ARE TAKING
ACTION BY…

67% increasing investment in automation to offset labor restrictions

increasing investment in automation to offset labor restrictions

80% discussing obstruction to global flows during strategic planning at board meetings

discussing obstruction to global flows during strategic planning at board meetings

FOUR STEPS TO THRIVE AMID DIGITAL FRAGMENTATION

STRATEGIC PLANNING

STRATEGIC
PLANNING

Boards must dedicate time to discuss implications of fragmentation across the business.

DE-RISK DATA

DE-RISK
DATA

Protect and reassess key information flows to optimize decision making and prevent disruption.

BUILD LOCAL ADVANTAGE

BUILD LOCAL
ADVANTAGE

Adopt IT strategies, processes and infrastructure that enable the organization to “be genuinely local” in all markets.

EMBRACE TECHNOLOGY

EMBRACE
TECHNOLOGY

Fully explore and exploit new technologies to navigate complex and evolving regulatory rules and legislation in relevant markets.

MEET THE EXPERTS

OMAR ABBOSH
Chief Strategy Officer,
Accenture

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ARMEN OVANESSOFF
Principal Director,
Accenture Research

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MARK PURDY
Managing Director,
Accenture Research

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PAUL NUNES
Global Managing Director,
Global Thought Leadership,
Accenture Research

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ABOUT ACCENTURE RESEARCH

Accenture Research shapes trends and creates data-driven insights about the most pressing issues global organizations face. Combining the power of innovative research techniques with a deep understanding of our clients’ industries, our team of 250 researchers and analysts spans 23 countries and publishes hundreds of reports, articles and points of view every year. Our thought-provoking research—supported by proprietary data and partnerships with leading organizations such as MIT and Singularity—guides our innovations and allows us to transform theories and fresh ideas into real-world solutions for our clients.

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