[June 28, 2016] |
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Small Minority of Industry Leaders Achieve Both Digital and Financial High Performance
A small minority of leading global companies are significantly
outperforming their industry peers by combining strong commitment to
digital technologies with strong financial performance, according to new
analysis by Accenture (News - Alert) (NYSE:ACN).
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Digital High Performers turn digital investments into sustained financial performance
The Accenture analysis, published in Digital
Performance, Rotating to the New, examines 343 companies across
eight industry sectors. It identifies 18 percent of the sample as
Digital Leaders, who have invested significantly in digital but who have
not delivered outstanding financial outcomes. However, only six percent
are classed as Digital High Performers, who have successfully translated
their digital investments into both higher profitability and growth.
Digital High Performers outscored Digital Leaders by 44 percent on
revenue growth and 34 percent on profitability, according to the
Accenture Digital Performance Index. Together with their greater returns
to shareholders, Digital High Performers' financial outcomes resulted in
investors awarding them 48 percent higher future value than other
companies who had similar levels of digital commitment (see Figure 1).
"Many companies fail to translate their significant digital investment
into lasting financial success because they focus simply on efficiencies
and short term profitability andless on longer term growth," said Omar
Abbosh, Chief Strategy Officer, Accenture. "Our analysis shows that
Digital High Performers identify trapped value in their organization and
across their value chains that enable them to generate sustained growth
in new digitally contested markets."
The Accenture Digital Performance model measures major companies in each
industry sector against 42 business activities and 117 behavioral
metrics that reflect their implementation of digital technologies. These
are grouped into four categories that cover running a business. Digital
High Performers successfully pursue all four.
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Plan: They shape and implement digital strategies that leverage the
collective intelligence of disrupters, partners and competitors to
identify and capture growth in core and adjacent industries.
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Make: They use digital technologies - such as mobile, cloud,
analytics, robotics, cyber security and the industrial Internet - to
transform innovation, design and production, as well as to create
digital products and services.
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Sell: They create hyper-personalized customer experiences across both
digital and physical channels, engaging with customers long after
transactions are completed.
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Manage: They use digital to redesign processes and culture, and to
equip workforces with the new skills needed to create more agile and
experimental organizations.
"Digital High Performers set the example of how to rotate to the new,"
continued Omar Abbosh. "Instead of simply driving efficiencies in their
core businesses while exploring new opportunities elsewhere, the most
successful companies refuse to distinguish between the core and the new.
They don't just maintain their core businesses but invest in them,
transforming them into platforms for new customer experiences and
revenue streams."
The Accenture Digital Performance Index (DPI) finds a significant
difference in the levels of digital commitment and investments between
sectors. The communications, hi-tech and retail sectors scored above
average DPI scores. The energy and consumer goods and services sectors
scored below average.
Accenture will be extending the Digital Performance modelling to a range
of other industries in the coming months and is offering clients the
opportunity to assess their digital and financial performance against
peers and digital disruptors.
Learn more about Digital Performance by visiting: https://www.accenture.com/us-en/insight-digital-performance
About Accenture
Accenture is a leading global professional services company, providing a
broad range of services and solutions in strategy, consulting, digital,
technology and operations. Combining unmatched experience and
specialized skills across more than 40 industries and all business
functions - underpinned by the world's largest delivery network -
Accenture works at the intersection of business and technology to help
clients improve their performance and create sustainable value for their
stakeholders. With approximately 375,000 people serving clients in more
than 120 countries, Accenture drives innovation to improve the way the
world works and lives. Visit us at www.accenture.com.
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