ACCENTURE’S INNOVATION MATURITY INDEX, SOUTH AFRICA, 2020
Disruption has taken hold in every industry and geography, and it’s constant. South Africa’s industries are more vulnerable than most—our 2020 research shows that 85 percent of South African companies are vulnerable to future disruption versus 70 percent globally. That’s because the majority of local companies are making a conservative play, competing in their traditional businesses using traditional approaches. It’s a risky strategy.
Our 2020 research shows that companies that are beating disruption, just 7 percent of South African companies compared to 14 percent of companies globally, are innovating, using digital technologies to grow and reshape their core businesses into new businesses. Companies that aim to drive growth and thrive in the digital era have much to learn from these companies.
Though executives in the region are aware of the threat posed by disruption, they are poorly prepared to face it. Playing it safe could cost companies in South Africa everything. The gap between high growth companies and organisations that have failed to move at the same speed as the technology developing around them, will widen as the pace of change accelerates.
How can South African companies fight disruption?
Companies that thrive in the age of disruption actively innovate. Our 2020 Innovation Maturity Index research bears this out.
As digital-age giants like Netflix and Amazon illustrate, innovation lies at the root of almost all disruption. To hold their own, South African companies must ramp up their innovation capability.
- A data-driven, talent rich, technology propelled, inclusive, asset smart and network powered.
- Deliberately build innovation into their businesses, embedding innovation into their strategy, culture and architecture
This enables them to unlock trapped value and manage disruption—pivoting with clear vision and purpose.
Companies slow to transform in South Africa
In South Africa, only 10 percent of the companies we surveyed have transformed their core business, making a wise pivot a matter of urgency. But it takes both skill and courage to radically shake up legacy businesses and ramp up new investments at the right pace and scale.
Accenture’s INNOVATION MATURITY INDEX is designed to measure the readiness of companies’ innovation ability to support their journey to the NEW. How does your company rate?