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Being digital: Fast-forward to the right digital strategy

Competing in a world shaped by digital technologies requires a fundamentally different approach to how strategies are developed and executed.

Finding the right competitive response is complex. The scale of change creates a sense of urgency. Investors recognize the potential, assigning multi-billion-dollar valuations to digital pure plays that are little more than a strategy and a few customers and capabilities. As digital technologies create new threats and opportunities, three strategies can help organizations achieve success. Read how organizations focused on being digital leaders can build digital strategy confidence and competency.

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Being digital: Fast-forward to the right digital strategy

  1. 1. Being digital Fast-forward to the right digital strategy
  2. 2. Digital technologies create new threats and opportunities Strategies for speed 2 Competing in a world shaped by digital technologies requires a fundamentally different approach to how strategies are developed and executed. • Digital changes everything—from customer expectations to distribution channels and production methods • Digital players or start-ups are seen as the greatest competitive threat to profitable growth Copyright © 2015 Accenture All rights reserved. *Source: Accenture Strategy Executive Research 2015 of business leaders say large digital players and start-ups are the greatest business threat in the next three years* 56%
  3. 3. Business leaders aspire to be digital leaders Strategies for success 3 Finding the right competitive response is complex. The scale of change creates a sense of urgency. Investors recognize the potential, assigning multi-billion-dollar valuations to digital pure plays that are little more than a strategy and a few customers and capabilities. Copyright © 2015 Accenture All rights reserved. *Source: Accenture Strategy Executive Research 2015 of executives want their organizations to be digital leaders in their industries* Plan to become a digital business in three years* 39% 59% of business leaders say they currently have an enterprise- level digital strategy* 45%
  4. 4. Strategy is the discipline of setting a direction, lining up resources and executing commitments Strategies for success 4 Digital disrupts business strategy. Possibilities opened up by new technologies reduce the reliability of proven practices and approaches. Business leaders must consider a new strategic approach. Copyright © 2015 Accenture All rights reserved. 1. One direction, multiple speeds and layers 2. Several horizons, sequencing multiple bets 3. Direct actions, experimenting intelligently
  5. 5. It is not a matter of when organizations will be digital, but how 1. One direction, multiple speeds and layers 5 Business leaders must meet the dual challenges of operating today while transforming for the future by executing strategies at multiple speeds and across multiple layers. They need: • Digital customer strategies • Digital enterprise strategies • Digital operations strategies Copyright © 2015 Accenture All rights reserved. *Source: Accenture Strategy Executive Research 2015 of business leaders have a digital strategy to address the customer experience* 65% of business leaders have a digital strategy to address the Internet of Things* 40%
  6. 6. There is no one path to becoming a digital leader 2. Several horizons, sequencing multiple bets 6 Success ebbs and flows with changing customer expectations and technology capabilities. Strategies must be based on sequencing multiple bets on the future. Digital leaders: • Manage multiple growth bets, and their associated risks, alongside today’s demands • Transform the core business Copyright © 2015 Accenture All rights reserved. Digital leaders have strategies that sequence multiple bets on the future.
  7. 7. Undertake a marathon in sprints 3. Direct actions, experimenting intelligently 7 Executing an effective digital strategy is characterized by short cycles between direction setting and direct actions. Intelligent experimentation enables organizations to embrace and move on from failure through rapidly testing hypotheses, advancing what works and learning from what does not. The front-line workforce must also experiment and adapt to new ways of working in real time, blending human and digital resources. Copyright © 2015 Accenture All rights reserved. Experimentation is central to quickly verifying and refining ideas in the face of changing demands.
  8. 8. Our research shows digital leaders demonstrate three core differences What makes digital leaders different? 8Copyright © 2015 Accenture All rights reserved. Growth focus Digital leaders set digital strategies for revenue growth and new business models— while followers focus on fixing the short-term cost and efficiency issues. External empathy Digital leaders are proactively and provocatively engaging customers and start-ups—while followers tend to react to incumbents’ digital efforts. Agility Digital leaders organize for speed and adaptability. They appoint senior leaders, create new governance structures and leverage external partners—while followers treat digital investments as functional issues and prefer to “go it alone.” $
  9. 9. Build digital strategy confidence and competency Where next? 9 Keep the following factors in mind: • Think in actions, not just ambitions • Win through a series of sprints • Embrace change at the edge • Place a premium on results and experience Copyright © 2015 Accenture All rights reserved.
  10. 10. 10Copyright © 2015 Accenture All rights reserved. About the research Accenture Strategy interviewed 700 business leaders in the United States, China, Japan and the European Union to understand how they can take advantage of digital technologies to accelerate growth and competitiveness. We also sought the views of more than 2,500 European employees in five countries on the impact of digital technologies on the future of work. Read other reports in the “Being digital” series: • Seven essential “no-regret” capabilities • Embrace the future of work and your people will embrace it with you Stay Connected Follow Us–Twitter www.twitter.com/AccentureStrat Connect With Us–LinkedIn www.linkedin.com/company/accenture-strategy
  11. 11. 11Copyright © 2015 Accenture All rights reserved. Learn more at www.accenture.com/digitaltransformation About Accenture Accenture is a global management consulting, technology services and outsourcing company, with approximately 323,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$30.0 billion for the fiscal year ended August 31, 2014. Its home page is www.accenture.com. About Accenture Strategy Accenture Strategy operates at the intersection of business and technology. We bring together our capabilities in business, technology, operations and function strategy to help our clients envision and execute industry-specific strategies that support enterprise wide transformation. Our focus on issues related to digital disruption, competitiveness, global operating models, talent and leadership help drive both efficiencies and growth. For more information, follow @AccentureStrat or visit www.accenture.com/strategy

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