When it comes to technology value creation, PE firms are facing a gap between expectations and execution. PE leaders tend to think their technological capabilities are mature, when in fact, they have a way to go.
In our survey, 58% of PE leaders rated their technology capabilities as advanced. The reality begs to differ: Only one in three projects meets its initial goals and is delivered on time and within budget.
Tech perception in PE collides with reality
Source: Accenture Strategy survey of PE leaders, 2021.
There are many reasons for this gap, including:
Existing playbooks don’t address technology strategy and related issues.
Due diligence is handled in a siloed manner, often as an addendum to an unrelated mandate.
External advisors who help with pre-deal tech due diligence are rarely held accountable for transformation post deal.
In the full report, you will find a more detailed look at specific factors that hold PE firms back.
Five ways to use technology effectively pre- and post-deal
PE leaders who successfully guide their teams to greater value assess the applicable technology value levers in the pre-deal phase. Continuing that focus throughout the deal phase drives business efficiencies and top-line growth, from a reduction in complexity to scalability.
A focus on technology levers throughout the deal cycle drives efficiencies and growth
Proven guidelines for technology programs in M&A include:
Value first: Perform a synergy and value case driven transformation.
Accelerated execution: Prioritize, using an Agile approach, with fast releases and quick adjustments.
Cloud based: Use standard cloud-based platforms to accelerate implementation.
Fit-to-standard: Introduce global processes to avoid complexity.
Required capacity: Ensure that people with key capabilities can focus on the program.
Cloud platforms and 360-degree partners make things easier
Thanks to the tools available today, obtaining the full value from technology is easier than ever. First, digital now comes “in a box.” Cloud-based core technology platforms like Salesforce and Workday offer advanced digital capabilities with little upfront investment and quick adoption. And second, end-to-end partners like Accenture can support deals from due diligence to implementation and realizing value.
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