The Covid-19 has impacted businesses in many ways and has disrupted many industries. But what has emerged from this period of unprecedented change is CXO’s expectations of what their business model can achieve in the context of technology, strategy, growth and the future of work. In this context, companies that have adopted new agile practices have grown rapidly. They not only achieved nearly twice the efficiency, but also three times the profitability of their peers, according to a new report.
A new study by Accenture of 1,100 senior executives sheds light on how accelerating digital adoption driven by the pandemic could unlock $ 5.4 trillion in profitable growth if applied widely.
The higher the maturity, the higher the degree of digital capabilities, such as artificial intelligence (AI), cloud, and data analytics.
Accenture’s findings indicate that even amid the current economic uncertainty, a small core of companies (around 7%) achieved nearly twice the efficiency and three times the profitability of their peers. These future-ready companies have doubled their digital transformation and revamped their operating models, from incremental improvements to wholesale reinvention.
“Uncertainty has also focused on new agile ways of doing things, reinforcing the idea that operations can be a catalyst for competitive advantage, transformational value and growth,” said Manish Sharma, Managing Director of the Accenture Operations group. “But it only works if companies think big, transforming the way work is actually done across technology, processes and people.
The report also highlights that future-ready companies are transforming the way work is done by using rich data for decision making, augmenting people with artificial intelligence (AI) and using hand models. – Agile works – with striking differences in digital adoption and operational maturity. Areas they focus on include:
- Cloud: Most forward-looking businesses use large-scale cloud infrastructure, and 78% are also exploring new areas to scale and maximize value.
- Artificial intelligence: The report claims that several companies are focused on increasing the number of people through technology. Almost 71% of future-ready organizations have fully embraced AI and data science capabilities. Future-ready organizations are expected to increase their AI practices by 2023.
- Automate on a large scale: Almost two-thirds of future-ready organizations have adopted end-to-end digital processes, while four-fifths are expected to increase their leading practices by 2023.
- Smarter data: Future-ready organizations are more likely than others to use analytics at scale to generate actionable insights and inform decision-making. More companies are expected to use analytics with diverse data by 2023.
- Agile workforce: Almost a third of future-ready organizations have adopted an agile workforce strategy that has enabled them to open up an expanded talent pool among ecosystem partners to mobilize exceptional talent as needed . It is expected to increase by 2023.
Despite the progress, around 75% of organizations still need to reorganize the processes that bring technology and people together in order to humanize the way they interact. They even commit to making data-driven decisions. Even in a data-driven world, many, or around 36% of leaders still rely heavily on their own intuition and experience. With only 1% of the data being analyzed, this is also an important area with untapped potential.
Research found that CXOs should invest in data to generate the right ideas, align investments in the right places to drive large-scale change, build multidisciplinary teams that bring in the right capabilities. As Sharma said, “Future-ready organizations know it’s about maximizing talent at a time when people are essential to success. They are harnessing change by reorganizing operating models in ways that leverage human ingenuity and artificial intelligence to transform the way people work and business performance.