Yes, A Mainstream Company Could Be Just As Tech-Savvy As A Google

Digital delivers dividends, study shows.

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For the past few decades, the technology giants — the likes of Amazon, Apple, Google, and Microsoft — had command of the latest technologies, and were hotbeds of experiments, innovation and growth. Now, thanks to the wide availability of relatively cheap and powerful technology, mainstream companies — your local electric utility, the tire manufacturer around the corner, a regional bank — can be just as tech-savvy as a Google.

A survey out of Accenture Research finds some mainstream companies have already made the leap to tech-savvy players. Plus, these companies report seeing positive results. Embracing digital transformation means mainstream companies can secure and leverage the same game-changing capabilities that the large tech companies have been enjoying for years, the survey’s authors state. “With a digital core in place, every company can aspire to create breakthrough innovations in their industry and adjacent markets—a territory that was formerly the domain of digital-native companies.”

Accenture Research’s survey of 1,516 executives identified leading companies who are actively and aggressively pursuing strategies of “total enterprise reinvention.” Only eight percent of companies fall into this category at this time. Such companies are the most likely to adopt “a strong digital core is fundamental to all other strategic needs of an enterprise. Amplifying the role of technology in reinvention means shifting from a technology landscape of static, standalone parts to interoperable pieces intentionally integrated and leveraging the cloud.” This not only includes cloud adoption, but artificial intelligence and even metaverse activities to some extent.

Reinvention is more than technology, of course. Forward-thinking leadership is another essential quality that delivers success in a digital world. When asked about potential obstacles, the leading obstacle, ahead of funding and technical requirements. is lack of cultural readiness and capacity to change. Talent shortages also encumber efforts.

These leaders are eight times as likely to have been—or expect to be—highly successful in delivering on their business case than companies that are in the earlier stages of reinventing their enterprises, the survey finds. They also report generating 22% higher incremental revenue growth, 21% higher cost-reduction improvements and 20% higher balance-sheet improvements compared to less-developed companies.

In addition, leading companies report delivering 1.6x more financial value in the first six months—a reflection of the speed at which such companies execute and deliver increased value compared with less-developed companies. Indeed, 66% of the leaders say that the delivery of their reinvention strategy is happening significantly faster relative to past transformations. By comparison, only 10% of less-developed companies say the same.

Leading companies also are moving well-ahead in non-financial outcomes as well. They are “looking beyond short-term financials to understand what creates long-term, sustainable value in a world where people are more empowered than ever to choose the companies with whom they engage,” the Accenture researchers report. Seventy-six percent of leaders say setting non-financial targets is very important, compared with only 10% of lagging companies. The leaders “deliver superior outcomes by thinking more deeply about how their reinvention will enable them to engage with customers and employees, deliver more sustainable outcomes and enhance their approach to innovation.”