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Not your Father’s Business Model – Competitiveness in the Age of Digital

Please visit: www.accenture.com/CompetitivenessInDigital. This is not your father’s business model. Back then, products and services enjoyed long, illustrious reign in the marketplace. Now, they appear and disappear overnight. That’s because digital is reshaping business models and driving industry convergence while market cycles are shrinking from years to months to weeks.
How can companies survive these new waters and create long-term competitive advantage?

Not your Father’s Business Model – Competitiveness in the Age of Digital

  1. 1. Not your Father’s Business Model – Competitiveness in the Age of Digital Creating a “Triple A” Advantage to Compete to Win
  2. 2. Competing to Win in today’s business context is becoming increasing challenging Commodity Cycles New Demanding Customers Globalization & Regionalization Supplier Risk/Traceability Global Economic Risk Government & Politics Volatility Uncertainty Complexity Ambiguity Copyright © 2015 Accenture All rights reserved. 2
  3. 3. Digital is creating extraordinary new challenges and opportunities New Contestable Markets creating and disrupting industries, markets, products, services and value chains Disruptive Speed product and service development lifecycles are changing from years or months to weeks The New Value Equation companies must simultaneously deliver value for customers AND society AND shareholders Digital Copyright © 2015 Accenture All rights reserved.
  4. 4. The disruptive speed of innovation is changing traditional industry models from years to weeks Innovators (2.5%) Early Adopters (13.5%) Early Majority (34%) Late Majority (34%) Laggards (14%) The Shark Fin Market Segments Across Time Trial Users Everybody Else Disruptive innovation is causing sudden success, a short but brilliant period of dominance, dramatic decline, and a potentially long period of low-level stability 4 The Shark Fin Copyright © 2015 Accenture All rights reserved. Source: Big Bang Disruption – Strategy in the Age of Devastating Innovation, Larry Downes / Paul Nunes, 2014
  5. 5. 5 Health Care Biometric sensors demystify the shamanistic myth of medicine Finance Money becomes just another form of information Retail The disruptive force of the sharing economy Manufacturing The “Internet of Things” drives the supply chain from the bottom Utilities Portable electricity networks mirror wireless communications Pharmaceuticals Bespoke drugs based on your DNA Government Market pricing for public services Consumer Products Market-led marketing takes over Energy Practical fuel cells… launched on Kickstarter Communications Digital convergence of content and context Insurance Sophisticated monitoring shifts responsibilities from user to manufacturer Retail Banking The end of cash Industries are facing new waves of contestable markets for incumbents and new entrants Copyright © 2015 Accenture All rights reserved.
  6. 6. The new value equation is requiring companies across multiple value drivers simultaneously 6 Digital creates transparency, requiring businesses to solve for all Stakeholders Copyright © 2015 Accenture All rights reserved.
  7. 7. To create superior value compared to competitors companies must be: 7 Competing to Win in this complex business environment requires a “Triple A” Advantage Agile capabilities, cost base and operating model Adaptive growth and innovation engines, exploiting the ecosytsem Aligned with stakeholder demands Triple A Advantage Copyright © 2015 Accenture All rights reserved.
  8. 8. Learn more about how to create a “Triple A” Advantage in our new report Not your Father’s Business Model – Competitiveness in the Age of Digital Copyright © 2015 Accenture All rights reserved. 8 www.accenture.com/CompetitivenessInDigital

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