CEOs face Innovation Achievement Gap, finds Accenture study

23rd January 2020
CEOs face Innovation Achievement Gap, finds Accenture study

New Delhi, Jan. 23 2020: While a majority of CEOs express strong confidence in the effectiveness of their current information technology (IT) systems, most are struggling to achieve levels of innovation that drive growth and revenue, according to a global study by Accenture .
The research, which analyzed the adoption of both mature and emerging technologies – such as artificial intelligence (AI), cloud, blockchain, and extended reality – found that just 10% of companies are making optimal technology investment and adoption decisions and realizing the full value of those investments. By adopting new technologies more aggressively and breaking down barriers to effectively scale innovation across their organizations, these leading companies are generating more than twice the rate of revenue growth than those on the lower end of the spectrum.
“It goes without doubt that the technology path chosen by companies today will determine their financial success in the future. However, majority of companies are failing to realize full value from their investments in technology. To lead in the post-digital economy, CEOs need to assess company’s current position, reconsider sunk investments and design a new Future Systems strategy,” said Anindya Basu, geographic unit and country senior managing director, Accenture in India.
"Today, all companies are tech companies; all CEOs are tech CEOs. The technology path you choose now will determine, more decisively than ever, your company’s financial success."
----------------------------------------------------------------------------------------------------------------------At the same time, the study found that 80% of CEOs believe they have the right technologies in place to innovate at scale, and 70% claim to be very knowledgeable of their organization’s investments in innovation. “Your Legacy or Your Legend? A CEO’s Guide to Getting the Most Out of New Technologies,” is based on Accenture’s largest enterprise IT study conducted to date, including survey data from more than 8,300 organizations across 20 countries and 885 CEOs.
As part of its study, Accenture identified five key factors— or “PATHS” — that distinguish the top 10% of companies from the rest:

  • Progress: The extent to which companies apply new technology to evolve business processes across the enterprise. One example is the use of cloud and artificial intelligence (AI) to increase the effectiveness of multiple business processes rather than working in silos.
  • Adaptation: Ensuring that IT systems can adapt and respond to changing market conditions with actions such as decoupling from legacy systems and using cloud services as a catalyst for innovation.
  • Timing: Creating an appropriate sequence and roadmaps for deploying new technology. This begins with identifying foundational technologies and prioritizing adoption based on their enterprise-wide impact.
  • Human+machine workforce: Using technologies to augment employees and make work more engaging while simultaneously realizing efficiency gains. This could entail delivering technology-augmented training that is personalized and experiential for working with technologies of the future.
  • Strategy: Actively aligning business strategy and IT strategy and weaving technology investments together to better seize opportunities.

More information on “Your Legacy or Your Legend? A CEO’s Guide to Getting the Most Out of New Technologies,” including infographics, is available here