1、Total Enterprise ReinventionThe strategy that leads to a new performance frontierWEF 2023Mike MooreSenior Principal,Accenture ResearchAuthorsJulie SweetChair and Chief Executive Officer of AccentureJack Azagury Group Chief Executive Strategy&ConsultingBhaskar GhoshChief Strategy OfficerTrevor Gruzin

2、Growth MarketsGrowth&Strategy LeadOliver WrightSenior Managing Director Consumer Goods&Services,Global Lead2Total Enterprise Reinvention|The strategy that leads to a new performance frontierTable of contentsExecutive summary4The new imperative 13Diving deeper into the six characteristics of Total En

3、terprise Reinvention25Charting a path to become a Reinventor55Total Enterprise Reinvention outcomes49About the research563Total Enterprise Reinvention|The strategy that leads to a new performance frontierExecutive summary4Total Enterprise Reinvention|The strategy that leads to a new performance fron

4、tierThe pandemic and unprecedented challenges of the past three years have tested CEOs and their leadership teams.Post-pandemic,most leadership teams of large companies are rising to the occasion,transforming more than ever before,faster than ever beforewhich we call“compressed transformation”and ac

5、cepting that all strategies lead to more technology.We call these companies the“Transformers.”This is vital work,different than pre-pandemic,and should feel good.Dont stop.Yet dont be satisfied.Theres a new imperative being driven by a handful of companies that are quietly and systematically changin

6、g the game and their industries.These are the“Reinventors,building on their experience as Transformers to embrace what we call“Total Enterprise Reinvention.”Their goal:to reinvent over time every part of their companies,centered around a digital core and new ways of working that establish a culture

7、and capability for continuous reinvention.In doing so,theyll set a new performance frontier for their companiesimproved financials,the ability to achieve perpetual breakthrough innovation,increased resilience in the face of any disruption,and an enhanced ability to create value for all stakeholders.

8、While this reinvention strategy begins with building a strong digital core,it is much moretechnology plus.Defining what the top quartile will be in your industry.We predict in about three years,the full impact of the courageous companies that adopt Total Enterprise Reinvention will be felt.This repo

9、rt is about what is coming,not what is already here at scale.It lays out the opportunity to be the leader in this fast-emerging business environment.Read on to understand what you can do to become a Reinventor.Are you a Reinventor,a Transformer or an Optimizer?Will you define the top quartile for yo

10、ur industry or simply be in it?5Total Enterprise Reinvention|The strategy that leads to a new performance frontierOur 738,000 people serve more than 9,000 clients globally across more than 40 industriesincluding 89 of the Fortune 100 and 60%of the the worlds 2,000 largest companies,as well as major

11、governments.We are the leading partner of most of the worlds largest technology companies.Our people are privileged to help the worlds leading companies and governments transform today,while being in a position to anticipate what theyll need tomorrow.In 2022,we predicted that to thrive over the next

12、 decade,companies will need to harness five key forces of change:1.Embracing and executing a Total Enterprise Reinvention strategy2.Being the winner in accessing,creating and unlocking talent3.Leading in sustainability in how they operate and what they sell4.Capturing the power of the metaverse5.Con

13、tinuously leveraging the on-going technology revolution.The following report is based on our research and on Accentures depth of understanding working globally with clients and partners to deliver outsized results.6Total Enterprise Reinvention|The strategy that leads to a new performance frontierThe

14、se key forces of change are overlapping and interdependent.For example,you cannot fully harness forces 3,4 and 5 without succeeding in the first two.And yet they also are distinctive and called out as such because underlying each are profound shifts across the business,even the past three years.From

15、 technology to the needs of employees,consumers,business customers and partners,businesses are being called on to dramatically change the ways they work,engage and transact,as well as leadership mindsets and skills from the C-suite to the newest hires.The basis for these five key forces begins with

16、technology.We have been at the center of a profound decade of technology change.In 2013,our Technology Vision report had foreseen that“every business is a digital business.”Pre-pandemic,many companies remained skeptical of the true impact of technology on their strategy and competitive advantage.And

17、 in part,this was because while technology change had been exponential,key parts of the business were still relatively untouched by technology advancementsfor example,manufacturing and the supply chain,which we call the next digital frontier.Even now,the merging of information and operational techno

18、logy is still very early days,with new technologies like digital twins emerging at scale only in the last couple of years.In 2019,our landmark research on enterprise technology strategies and their impact on performance showed Leaders in tech adoption and innovation were growing revenues at 2x the s

19、peed of Laggards.1 Then,of course,the pandemic changed everything,jolting the world online and exposing which companies were Leaders or Laggards.Just 12 months after the pandemic,updated research showed the gap between Leaders and Laggards had grown to 5x revenue growth from 2x,with Leaders doubling

20、 down on investments faster than ever before.2In studying this evolution,we identified an entirely new group,one we named the“Leapfroggers,”those who compressed their digital transformations to convert the pandemics challenges into new opportunities.In doing so,they leapfrogged their peers and are c

21、atching up to the Leaders.Leaders and Leapfroggers shared three characteristicsmoving to the cloud and embracing new technologies like AI,flipping their IT budgets to innovation over maintenance and focusing on creating broader value;touching twice as many processes and focusing on areas like traini

22、ng.Helping companies execute compressed transformations has driven our business since the pandemic,with the number of companies becoming Transformers growing significantly in each of the last three years.Companies that have done US$100 million in bookings in a single quarter,which we use as a proxy

23、for compressed transformations,have jumped from 53 in fiscal year 2020 to 72 in 20213 to 100 in 2022.47Total Enterprise Reinvention|The strategy that leads to a new performance frontierThe Macro A macro environment with an unprecedented level of volatility has created both serious pressure and the n

24、eed to find new opportunities.Our Global Disruption Indexa composite measure that covers economic,social,geopolitical,climate,consumer and technology disruptionestimates macroeconomic volatility has increased 200%since 2017 as compared to only 4%from 2011 to 2016.TechnologyAdvancements now make tech

25、nology a critical enabler of reinvention across virtually every aspect of the enterprise,with an expectation that these advancements will continue.In other words,all strategies lead to more technology,and all strategies require an understanding that technology will continue to change what is possibl

26、e.Post-Pandemic TransformationLeadership teams across industries should feel proud.Not only did most large companies navigate the shock of the pandemic well;they also rapidly adapted,changing their approach to technology and transformation.The boldness of Reinventors is rooted in the successful expe

27、rience over the past three years of companies that made significant strides in replatforming to the cloud,taking on technology-enabled compressed transformations,and either transforming multiple parts of their organization at once instead of sequentially,or doing large-scale transformations faster t

28、han ever beforeand often both.Our experience with the worlds leading companies and governments and our latest research demonstrate the time to embrace Total Enterprise Reinvention is now.And in doing so,weve shifted from measuring digital leadership and innovationLeaders,Leapfroggers and Laggardsto

29、evaluating companies as Reinventors,Transformers and Optimizers.The convergence of three factors has inspired a small but growing number of companies to become Reinventors.The new imperativeThe more companies have transformed,the more theyve recognized the opportunities to connect transformations an

30、d work across functions to fundamentally change every part of their business.It is a when,not an if.And theyve also seen the challenges.Research we conducted in 2022 found that seven out of 10 enterprise transformation efforts fail to fully meet business leaders expectations.5 8Total Enterprise Rein

31、vention|The strategy that leads to a new performance frontierOur research shows only 8%of companies are moving to adopt a strategy of Total Enterprise Reinvention.Most companies86%are Transformers.They focus on transforming parts of their business rather than the whole and tend to treat transformati

32、on as a finite program rather than a continuous process.Many,though,are beginning to recognize the importance of establishing a new performance frontierjust under half of Transformers(43%).In fact,this group says they aspire to set a new level of performance in their industry through their transform

33、ation programs.These“Aspirational Transformers”are best primed to become Reinventors.Six percent of companies are what we call Optimizers,focused on functional transformations limited in scope and ambition.Technology is not a significant enabler of their transformations.The time is now9Total Enterpr

34、ise Reinvention|The strategy that leads to a new performance frontierDefining Total Enterprise ReinventionTotal Enterprise Reinvention is a deliberate strategy that aims to set a new performance frontier for companies and in most cases,the industries in which they operate.Centered around a strong di

35、gital core,it helps drive growth and optimize operations.Total Enterprise Reinvention isnt a to do;its a to be.It requires continuous,dynamic reinvention.It becomes a unifying force,across the C-suite and every function and business area,because,by definition,all are involved and accountable for its

36、 success.It demands an outside-in perspective that connects whats happening at the company with whats happening in the world.And it requires new skills and an increased depth of understanding of technology,change management,communication and how to leverage partners to achieve results faster.1.Reinv

37、ention is the strategy.It is no longer an execution lever.2.The digital core becomes a primary source of competitive advantage.It leverages the power of cloud,data and AI through an interoperable set of systems across the enterprise that allows for rapid development of new capabilities.3.Reinvention

38、 goes beyond benchmarks,embracing the art of the possible.Technology and new ways of working create a new performance frontier.4.Talent strategy and people impact are central to reinvention,not an afterthought.These companies consider change management a core competency.5.Reinvention is boundaryless

39、 and breaks down organizational silos.It tackles capabilities end-to-end.6.Reinvention is continuous.It is no longer a time-defined one-off,but a capability continuously tapped by the organization.10Total Enterprise Reinvention|The strategy that leads to a new performance frontierFinancial impact:Re

40、inventors report generating 10%higher incremental revenue growth,13%higher cost-reduction improvements and 17%higher balance-sheet improvements compared with Transformers.Those numbers are significantly higher when compared with Optimizers at 22%,21%and 20%respectively.Technology speed to results:Re

41、inventors report delivering 1.3x more financial value in the first six months than Transformers(1.6x more than Optimizers)a reflection of the speed at which such companies execute and deliver increased value.Indeed,66%of Reinventors say the delivery of their reinvention strategy is happening signifi

42、cantly faster relative to past transformations.By comparison,only 27%of Transformers and 10%of Optimizers say the same.Setting a new performance frontier 360 value:Reinventors more actively generate what we call“360 value,”looking beyond financials to long-term,sustainable value for all stakeholders

43、.Seventy-six percent of companies that pursue Total Enterprise Reinvention say setting non-financial targets is very important,compared with 32%for Transformers and 10%for Optimizers.Compared with industry peers,Reinventors perform 32%better on sustainability and 31%better on experiencefor customers

44、,suppliers and employees.They also score 11%higher on innovation,11%higher on“net better off”outcomes for talent,and 7%higher on inclusion and diversity.By embracing Total Enterprise Reinvention,companies will establish a new performance frontier,outperforming peers in financial,technology and 360 v

45、alue dimensions.Our research shows Total Enterprise Reinvention drives clear and significant outcomes for Reinventors.11Total Enterprise Reinvention|The strategy that leads to a new performance frontierCharting a path to become a ReinventorWe believe all companies will need to adopt Total Enterprise

46、 Reinvention as a strategy in the coming years.Here are four categories of questions to help shape a path forward.Transformation initiatives currently underway Are the leaders of your current transformational initiatives able to articulate the changes that will occur across the enterprise,and are th

47、ey using metrics that take a cross-functional view?Can your leaders articulate the partnership strategy for each transformation program,how that strategy is enabling them to deliver outcomes faster and increase certainty of outcomes as well as how the partner fits into your talent strategy?Ambition

48、and strategy Where are you today:are you a Reinventor,Transformer or Optimizer?Have you defined the performance frontier for your company,and how does it measure against the best in your industry and the best in other relevant industries?Are you matching the leaders or setting the new benchmark?Is y

49、our entire C-suite held accountable,as a primary metric,for the success of your current transformation programs,or is the business or function lead primarily accountable?Talent Do leaders have sufficient technology acumen to understand the art of the possible and what it can do to drive reinvention?

50、Do you have existing change management capabilities to support your continuous transformation journey,or are you standing these up for each transformation project?Do you use data to measure your transformation,and is the same form of measurement used for all programs?Digital Core How would you asses

51、s your digital core?What is its level of maturity and what are its known gaps?Is the ability to use technology investments to achieve sustainability and other 360 value objectives and any negative impacts formally included in technology investment decisions?12Total Enterprise Reinvention|The strateg

52、y that leads to a new performance frontierThe new imperative 13Total Enterprise Reinvention|The strategy that leads to a new performance frontierThe MacroDisruption,disruption,disruptionTodays executives are navigating a complex and dynamic business environment few have ever seen.Our Global Disrupti

53、on Indexa composite measure that covers economic,social,geopolitical,climate,consumer and technology disruptionshows that levels of disruption increased by 200%from 2017 to 2022(see Figure 1 and“About the research”for further details).In comparison,the Index rose by only 4%from 2011 to 2016.As such,

54、companies now face a permanent state of change at a pace never seen before.Technology,consumer preferences and climate change in particular are driving massive structural shifts in how the world operates.14Total Enterprise Reinvention|The strategy that leads to a new performance frontierA convergenc

55、e of forces is increasing disruptionFigure 1:Accenture Global Disruption IndexSee About the research for a more detailed description of the method.2017 2022Overall level of disruptionGeopoliticalEconomicClimateSocialConsumerTechnological+200%1002017 20222017 20222017 20222017 20222017 20222017 20223

56、089Overall measure of disruption based on average of six sub-components,each of which is based on indexed scores of a set of indicators.15Total Enterprise Reinvention|The strategy that leads to a new performance frontierConsumer mindsets have evolvedFaced with the pressure of all these external forc

57、es at once,consumers are becoming increasingly unpredictable in their choices.Trying to balance their needs with these pressures,they are demanding more,better and faster from the companies they interact with.In a separate survey of 1,700 global C-suite executives(conducted in two waves)we found mor

58、e than 95%of both B2B and B2C executives believe their customers are changing faster than their businesses.Thats up from 88%of executives just a few months prior.6Addressing climate change will unlock new opportunitiesSoon to be published research shows more than US$3 trillion could be unlocked by 2

59、030 by transitioning to decarbonized and sustainable products and services in eight markets alone:mobility,home energy,food,fashion,air travel,shipping,construction and communication.In fact,this value is already being unlocked.Sustainable products and practices are rapidly gaining market share and

60、opening new industry-convergent ecosystems,necessary for meeting human needs in a world where the trust cost of carbon is increasingly accounted for.Companies agree on the need to transform more than ever These extraordinary times call for an unprecedented response and a reinvention of the enterpris

61、e.Thats the view of the 1,516 executives we surveyed,who say that a range of external forcesbut particularly the pace of technology innovation,shifting consumer preferences and climate changehas accelerated their reinvention strategies.In fact,even in the face of a recession in 2023,75%of executives

62、 say that the pace of their organizations reinvention would accelerate(see Figure 2).16Total Enterprise Reinvention|The strategy that leads to a new performance frontierCompanies are accelerating their reinvention in response to external forces%of respondents saying the force has accelerated their r

63、einvention strategy(n=1,516)Pace of technology innovationClimate change/regulationInflationary pressuresSupply chain disruptionEurope(n=402)Shifting consumer preferencesHigh energy pricesGeopolitical tensionGlobal(n=1,516)Talent shortagesNorth America(n=797)Economic slowdownAsia Pacific(n=317)79%75%

64、87%73%64%67%46%42%39%39%38%36%34%Source:Accenture Total Enterprise Reinvention CxO Survey fielded in November 2022.Asia Pacific includes respondents from Australia,China,India and Japan.To what extent have the following external forces accelerated your organizations reinvention strategy?”If there is

65、 a recession in your main markets in 2023,will your organization accelerate its reinvention strategy?”%of respondents saying they will accelerate their reinvention strategyFigure 2:17Total Enterprise Reinvention|The strategy that leads to a new performance frontierIt may seem counterintuitive to foc

66、us on the long-term promise of reinvention amid adverse economic conditions today,yet increased competitive volatility during downturns creates greater opportunities for companies effective at reinvention.7 Perhaps thats why Doug Leone,a former managing partner of Sequoia Capital,quoted the Formula

67、1 racing legend Ayrton Senna at a May 2022 meeting with start-up founders about markets turning,saying:“You cannot overtake 15 cars in sunny weather but you can when its raining.”8Take American Express.The payments company faced the threats of rising default rates and falling consumer demand during

68、the 2008 financial crisis.After cutting costs and divesting non-core businesses,American Express refocused on new partnerships and embraced digital technology.The company remained profitable through the crisis,grew its revenues and enhanced its capital position,all while investing in key capabilitie

69、s.The firms stock price rose more than 700%in the decade that followed.9This level of disruption demands all businesses transform.In the next decade,every business will get to Total Enterprise Reinvention to succeed,or they wont succeed.“You cannot overtake 15 cars in sunny weather but you can when

70、its raining.”Ayrton Senna18Total Enterprise Reinvention|The strategy that leads to a new performance frontierBuilding a digital core is not a one-time project.It must be continuous to incorporate new technologies and business capabilities.Reinventors invest in their digital core ahead of their peers

71、,increasing their capabilities in foundational technologies,as well as integrating emerging technologies.For example,while 61%of Reinventors plan to increase their investments in cloud services over the next year,49%of Transformers and 45%of Optimizers plan to do so.And while 65%of Reinventors are w

72、atching and screening next-gen computation technologies,52%of Transformers and 48%of Optimizers are doing so(see Figure 3).1.An infrastructure and security layer:A modern,cloud-based IT foundation that is automated,agile and secure by design.3.An applications and platforms layer:Where new experience

73、s and ways of operating come alivethrough modernized and new,custom applications and platforms or replatforming on SaaS.2.A data and AI layer:Where enterprise data becomes accessible at scale,with domain-specific,AI-enabled applications and platforms generating insights for decision-making.This conn

74、ects and elevates trapped data,helping enterprises to ask new questions and find new answers that drive decision-making and the development of new products.TechnologyThe digital core,the potential of reinvention and breakthrough innovationA strong digital core is fundamental to all other strategic n

75、eeds 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.The digital core consists of three layers:An important feature of a modern digital co

76、re is Interoperability”across all of these layers,connecting technologies,data,and applications across silos and enabling Reinvention.Companies with high interoperability grew revenue 6x faster than their peers with low interoperability and unlocked an additional five percentage points in annual rev

77、enue growth.1019Total Enterprise Reinvention|The strategy that leads to a new performance frontierReinventors continuously invest in their digital core“Do you plan to increase your investment in the following technologies over the next year?”“Which of the following emerging technologies are you curr

78、ently monitoring and screening?”AI and automationNext-gen computationCloud servicesNext-gen intelligenceNetwork/connectivityMetaverse and Web 3.059%65%48%51%48%52%45%49%47%51%42%48%31%37%31%36%61%64%Figure 3:%of respondents%of respondentsTotal Enterprise ReinventorsTransformersOptimizersTotal Enterp

79、rise ReinventorsTransformersOptimizersSource:Accenture Total Enterprise Reinvention CxO Survey fielded in November 2022.Sample size:Total,1,516;Total Enterprise Reinventors,119;Transformers,1,303;Optimizers,94.20Total Enterprise Reinvention|The strategy that leads to a new performance frontierpotent

80、ial,as reflected by the 71%increase in mentions of cloud,AI and other emerging technologies in earnings calls over the past five years.12The new performance frontier can include breakthrough innovationWith a digital core in place,every company can aspire to create breakthrough innovations in their i

81、ndustry and adjacent marketsa territory that was formerly the domain of digital-native companies.What is breakthrough innovation?Breakthrough innovation sits at the intersection of understanding the potential of next generation technologies and applying them in novel ways to shape and capture white

82、space opportunities and address acute needs in their business or industry.The potential for reinvention is immenseWe estimate,on average,that 76%of a US workers tasks could be reinvented by combining new technologies and new ways of working,by automating repetitive activities while augmenting high-v

83、alue activities(see Figure 4 and“About the research”for further details).These actions will,in turn,enhance productivity and allow people to focus more on their unique capabilities.Indeed,such progress could hypothetically allow the average US worker to shift to a four-day work week and produce more

84、 than they do in a five-day work week.Combining the power of technology and human ingenuity will enable enterprises to reinvent how they go to market,how they operate,how they partner and how they create value,thereby unlocking a new performance frontier.For example,our research shows that companies

85、 that plan to adopt next-generation AI and advanced computational methodswhile tapping ecosystem partners and networksare 2.6x more likely to increase revenue by 10%or more than companies not pushing toward the leading edge in these areas.11 Organizations are acutely aware of this 21Total Enterprise

86、 Reinvention|The strategy that leads to a new performance frontierShare of US workers tasks that could be reinvented by technology augmentation or automation,by industryAugmentAutomateNo impactSource:Accenture Research analysis based on BLS and O*Net.O*Net tasks were classified into the four categor

87、ies.This classification was performed based on a list of 2,000 detailed examples for 300+tasks.US average corresponds to the weighted average based on occupation shares across industries.Due to rounding,not all figures add up to 100%.Share of worked hours,2021Increasing potential for augmentation ba

88、sed on the combination of new technologies and new ways of workingUS averageBankingSoftware&PlatformsCapital MarketsInsuranceHealthCommunications&MediaPublic ServiceAerospace&DefenseUtilitiesIndustrialLife SciencesHigh TechChemicalsEnergyTravelNatural ResourcesRetailConsumer GoodsAutomotive33%37%29%

89、41%33%28%43%34%29%40%30%31%28%43%34%28%38%29%27%26%43%39%54%36%48%56%36%38%52%37%51%50%49%33%45%47%32%50%55%53%24%24%18%23%19%16%20%28%20%23%18%19%24%24%21%25%30%20%18%21%Most of the tasks of an average US worker could be reinventedFigure 4:22Total Enterprise Reinvention|The strategy that leads to a

90、 new performance frontierPost-Pandemic TransformationThe successes and the challengesMany executives are already working to reinvent processes in their enterprise with new technologies and new ways of working.Of the 11 functional areas we assessed,executives said their organizations had already rein

91、vented,on average,processes in six functions.The most common function for reinvention was customer service(63%of respondents)and the least common were Research&Development(R&D)and Human Resources(HR)(48%of respondents).Within two years,executives expect to have reinvented processes in nine functions

92、 within their enterprise(see Figure 5).While many companies are transforming multiple parts of their enterprise,in our experience,they are failing to realize the true business value of these efforts because of siloed approaches.Other common challenges are cost,lack of efficiency across programs,fail

93、ure to understand and address interdependencies,insufficient technology acumen and failed change management.A Total Enterprise Reinvention strategy addresses these challenges by taking an integrated,holistic approach based on technology with talent at the center.23Total Enterprise Reinvention|The st

94、rategy that leads to a new performance frontierMost processes in functional areas are being reinventedFigure 5:Cumulative number of areas being reinvented by an organization,on average,out of a possible 11Past two yearsNext two years69+3“In which of the following functions are you fundamentally rein

95、venting processes by applying new technologies and new ways of working?”Customer ServiceFinanceStrategy and M&AInformation TechnologyMarketingCore OperationsSalesManufacturingResearch&DevelopmentSupply ChainHuman Resources+27+30+30+32+31+33+28+30+36+29+3540 45 50 55 60 65 70 75 80 85 90 95 100%of re

96、spondents,n=1,516Percentage pointdifferencePast 2 years Next 2 yearsSource:Accenture Total Enterprise Reinvention CxO Survey fielded in November 2022.24Total Enterprise Reinvention|The strategy that leads to a new performance frontierDiving deeper into the six characteristics of Total Enterprise Rei

97、nventionWe briefly listed the key qualities companies must embrace to succeed at reinvention.In this section,well dive deeper.25Total Enterprise Reinvention|The strategy that leads to a new performance frontier1.Reinvention is the strategy26Total Enterprise Reinvention|The strategy that leads to a n

98、ew performance frontierPeople,Culture and PurposeAccelerate GrowthOptimize OperationsThink of all the functions of your company on a connected wheel(see Figure 6).Accept the premise that today,in every function,technology plus new ways of working,could create new value,and that the advancements in t

99、echnology are likely to make that value constantly evolving.Think about the way you decide which technology to invest in,and which part of the company to transform.Are the business cases co-created across the C-suite in recognition that no function exists alone?Are the technology investments tested

100、cross-functionally or primarily best-in-class for the functional leader who is leading the analysis?What is the depth of understanding of the leaders as to what is possible today,and what is coming?Is your C-suite able to articulate for every technology investment,what will change in how you work,or

101、 engage,or go to market?When someone talks about the need for cultural change or new skillshow precise is it,and do you understand the plan to achieve?And when you set your ambition,how are benchmarks usedare they the ambition to achieve,or the standard to beat?In other words,is your ambition to set

102、 a new performance frontier for your company and/or your industry?Source:Accenture.FinanceHuman ResourcesLegalInformation TechnologySourcing&ProcurementSupply ChainEngineering&ManufacturingSustainability Industry-specific FunctionsResearch&DevelopmentCorporate StrategyMergers&AcquisitionsNew Busines

103、s ModelBusiness UnitsSalesMarketingServiceBuild Digital CoreAI SecurityData Platforms CloudTotal Enterprise Reinvention is a deliberate strategy that aims to set a new performance frontier for companies and in most cases,the industries in which they operate.Centered around a strong digital core,it h

104、elps drive growth and optimize operations.It starts with the premise that every part of every business needs to be reinvented and that benchmarks today do not reflect what is possible if,as a company,you have a tech-enabled mindset.It recognizes that technology advancements will mean that this is a

105、continuous and dynamic need.The focus shifts from,one and done programs,or“is this too much change”to a company that is proudly“all about change.”One that has honed the business and technology acumen to set the right priorities,built the culture and resilience for change,and the laser focus on the f

106、uture and external developments.This cultural point is criticalAccenture has lived it.Accentures capabilities and culture have dramatically changed over the last decadeat one point,we were“fast followers”and now we are“innovation led.”The part of our culture that has existed for decades is that“we a

107、re all about change”which has allowed us to set bold ambitions and to reinvent ourselvesa process that is ongoing.Total Enterprise ReinventionFigure 6:27Total Enterprise Reinvention|The strategy that leads to a new performance frontierBecause we know that many companies are already changing a lotTot

108、al Enterprise Reinvention is not about the scope and speed per se.It is about establishing that a core strategy of the company is the ability to continuously reinvent and systematically move across the enterprise to set a new performance frontier.It is not a reaction to the macro,but a recognition o

109、f the opportunity that has become clear in the last three years of the true power of tech-enabled transformation.Compressed transformations were triggered at the beginning of the pandemic,as companies experienced rapid changes in their operating environment which exposed the gaps in their digital co

110、re.For example,because of the move online at the onslaught of the pandemic,many consumer goods companies accelerated their ability to digitally connect directly with end consumersonly to find that the failure to have a modern,cloud-based ERP and infrastructure prevented them from rapidly being able

111、to make changes in payments,connect supply chains and fulfill purchases in areas like social commerce.As a result,we have seen many consumer goods companies take on accelerated moves of their ERP to the cloud,crossing multiple functions.Adopting Total Enterprise Reinvention as a core strategy is a n

112、atural next step for companies which today are Transformers,and is the blueprint for the companies which are Optimizers and now want to leapfrog to Reinventor.28Total Enterprise Reinvention|The strategy that leads to a new performance frontierIn following the six key characteristics of Reinventors,c

113、ompanies will also address many of the lessons learned in these past three years of compressed transformations.The ambition and decision to accelerate transformation is what most CEOs talked about early in the pandemic as being most proud of.The capabilities to efficiently transform at scalefrom how

114、 you make technology decisions,to the way to approach change management,to the depth of technology understanding leaders need,to the persistent silos that are often reinforced by metrics and compensation regardless of a strategy of“one”have emerged as gaps that have challenged the full realization o

115、f the potential of techenabled transformation,and limited the ability of companies to be more ambitious about the outcomes.For example,change management,skills and cultural change are often cited as barriers or weaknesses,and yet few companies have moved to centralized,clear and measurable change ma

116、nagement capabilitiesoften using multiple techniques depending on their partner.A Total Enterprise Reinvention strategy flips change management to a core capability that is connected and has consistent approaches,like measurement tools,regardless of function and partner.Another example is that many

117、companies continue to struggle with thinking about technology platforms across the company,providing more cost efficiency,more resilience and faster innovation as more parts of the company can access the capabilities.And so,you will see companies that have rapidly moved to the cloud struggling with

118、cost,the ability to use cloud services and truly changing how they operate because the move to the cloud was done business unit by business unit,or function by function rapidly,and producing early results,but not realizing the full potential of the technology.Every industry has specific challenges.L

119、ets take healthcare,in which significant investment by many leaders has gone into creating an intelligent front door to care that creates a personalized,consumer-like experience for patients.At the same time,depending on where they are in the healthcare value chain,those same companies are looking t

120、o digitize to find efficiencies in an industry that has lagged other industries in digital transformation and is now facing significant shortages of clinical talent that impact access to care.Often,we see initiatives to personalize experience and create efficiencies and capacity scoped too narrowly,

121、missing the opportunity to connect to drive more value.Total Enterprise Reinvention also will unlock the power of external learningsfrom other industry players and,equally important,from other industries.While many CEOs talk about their own industry not being the benchmark,putting this view into con

122、crete action has been difficult.Indeed,it requires new muscles from their leadership,and often,the industry benchmarks still become the de facto goals and measurement of performance.Reinvention,by definition,cannot be done only with internal thought leadership.Setting a new performance frontier also

123、 requires,at a minimum,looking at the rest of the industry.We spend a lot of time looking across industries to inform the solutions that we bring to our clients.We believe that if companies execute on the six characteristics of Reinvention,the use of industry and cross-industry learnings will finall

124、y become part of how leaders do business.29Total Enterprise Reinvention|The strategy that leads to a new performance frontier2.The digital core becomes a primary source of competitive advantage30Total Enterprise Reinvention|The strategy that leads to a new performance frontierTechnology used to be t

125、he disrupter.Now its the enabler,a certainty in turbulent times.Once you accept that every business is a digital business,technology is a primary source of competitive advantage that enables companies to build exceptional experiences and achieve breakthrough innovations.It can open new possibilities

126、 for accelerating growth and optimizing operations.To thrive in this world,companies need a strong digital core that will serve as the foundation for reinvention.Ninety-seven percent of executives we surveyed agree technology in general now plays,and will continue to play,a critical role in both the

127、ir reinvention strategy and in transformation programs for their organization.In fact,on average 40%of executives across the three groups,also agree the role of technology has increased to become the top priority in transformation programs overall during the past two years(see Figure 7).Technology i

128、s foundational“Do you agree that technology in general plays a critical role in all current and future reinvention strategies,as well as in transformation programs,for your organization?”Figure 7:“Has the role of tech increased in transformation programs overall in the past two years?”Score from 1-5

129、,where:51%All respondentsStrongly agreeAgree Neither agree nor disagreeDisagreeStrongly disagree46%1%1%1%44%40%39%55%58%57%2%3%1%Total Enterprise ReinventorsTransformersOptimizersIncreased to top priorityNo increase5 4 3 2 1Source:Accenture Total Enterprise Reinvention CxO Survey fielded in November

130、 2022.Sample size:Total,1,516;Total Enterprise Reinventors,119;Transformers,1,303;Optimizers,94.31Total Enterprise Reinvention|The strategy that leads to a new performance frontierRestructured into a new entity,SCBx,the firm intends to leverage its customer base across platforms to expand its reach

131、to 200 million people.15 The company is investing in new technologies,including blockchain,metaverse and Web 3.0.16Reinventors capitalize on their investments in the digital core While many executives acknowledge that technology plays a critical role in reinvention,the ability to use technology as a

132、n execution enabler is a differentiating characteristic of Reinventors.Our survey found 39%of Reinventors say technology is a significant enabler in executing their reinvention,compared with just 21%of Transformers and 3%of Optimizers(see Figure 8).Consider Siam Commercial Bank(SCB).The SCB Transfor

133、mation Program focused on developing the companys technology infrastructure and capabilities to create the foundation for SCB to become a digital bank.The company replaced legacy applications and migrated to a new cloud-based data lake.13 A digital factory was set up to develop the banks app and new

134、 digital stack.This enabled the bank to grow its digital app user base to more than 13 million users in 2022,up from 2.5 million prior to the transformation program.14 The next stage in SCBs journey to reinvention is to become a“fintech business group”a technology company that provides customer-cent

135、ric services,including banking.32Total Enterprise Reinvention|The strategy that leads to a new performance frontier“Did/does your organizations current technology hinder or help in the execution of your transformation program?”HinderSomewhat enableEnableSignificantly enable42%59%49%8%20%32%10%11%6%3

136、9%21%3%Total Enterprise ReinventorsTransformersOptimizers13xReinventors capitalize on their investments in the digital coreFigure 8:Source:Accenture Total Enterprise Reinvention CxO Survey fielded in November 2022.Sample size:Total,1,516;Total Enterprise Reinventors,119;Transformers,1,303;Optimizers

137、,94.Case in point:bp.The firms strategy to reinvent itself from an international oil company focused on producing resources to an international energy company focused on delivering solutions.17 The company aims to deliver earnings of US$9-10 billion from five“transition growth engines”bioenergy,conv

138、enience,electric vehicle charging,hydrogen and renewablesby 2030.18Digital innovation is one of three sources of differentiation that underpin bps reinvention strategy.19 bps digital capabilities now sit alongside its science and engineering capabilities in an integrated,“innovation and engineering”

139、team.bp takes a customer-centric approach to developing digital products and benchmarks its digital capabilities against leaders in the technology sector(instead of against direct competitors).2033Total Enterprise Reinvention|The strategy that leads to a new performance frontier3.Reinvention goes be

140、yond benchmarks,embracing the art of the possible34Total Enterprise Reinvention|The strategy that leads to a new performance frontierIn the past,many companies determined the full potential of their transformation by benchmarking their performance against that of peers,as well as targeting current i

141、ndustry best practices.If youre behind,these metrics can help create a case for change.However,they also can limit the ambition of leaders because they dont reflect the art of the possible as it relates to technology and new ways of working.In other words,benchmarks become a barrier to achieving the

142、 possible.Given the rate at which technology and customer habits are evolving,what is best-in-class today will be lagging before tomorrow arrives.Indeed,strong performance increasingly does not endure.Our analysis finds that between 2011 and 2022,the gap between top-and median-performing companies o

143、n total shareholder returns declined by 15 percentage points,on average,across industries.21Mentions of the phrase“best practice”in earnings calls among the worlds 2,000 largest publicly traded companies by revenue have declined by 24%since Q1 2020.Nevertheless,more than half(55%)of the executives w

144、e surveyed are still focused on matching existing best practice in their industry and see that goal as the full potential they can hope to achieve(see Figure 9).35Total Enterprise Reinvention|The strategy that leads to a new performance frontierBest practice is falling out of favorbut not for allMen

145、tions of“best practice”per 1,000 earnings calls for the worlds 2,000 largest publicly traded companies by revenue“Which of the following statements best describes the level of performance you are aiming to reach through your reinvention strategy?”%of respondents,n=1,516Source:Natural language proces

146、sing of the quarterly earnings calls of the worlds 2,000 largest companies by revenue from Q1 2020 to Q3 2022.Accenture Total Enterprise Reinvention CxO Survey fielded in November 2022.A major step change that sets a new level of performance in our industryA major step change that matches the curren

147、t performance level of the#1 competitor in our industryTop quartile or incremental45%48%7%Figure 9:2020 Q022Q3-24%36Total Enterprise Reinvention|The strategy that leads to a new performance frontier4.Talent strategy and people impact are central to ReinventionMany human factors can compro

148、mise reinvention strategies and transformation programs that look good on paper.Barriers can include a lack of cultural readiness to change,leadership capabilities and alignment,and functional silos(see Figure 10).The more that people are engaged in reinvention,however,the more likely such hurdles c

149、an be overcome.37Total Enterprise Reinvention|The strategy that leads to a new performance frontierFigure 10:Human factors pose some of the biggest barriers to delivering reinvention strategies“What barriers have you faced in delivering your reinvention strategy?”%of respondents,n=1,516Source:Accent

150、ure Total Enterprise Reinvention CxO Survey fielded in November 2022.Selected as the#1 barrier Selected as a top 3 barrierCultureLack of cultural readiness/capacity to changeTechnologyLack of technical infrastructureAlignmentMisalignment across the executive teamCapitalInsufficient availability of c

151、apitalLeadershipLack of skills/capabilities in the executive teamSilosFunctional/departmental silosPartnersWeak partner ecosystem30%20%10%0%29%25%28%28%27%25%25%15%14%16%14%15%13%12%38Total Enterprise Reinvention|The strategy that leads to a new performance frontierCommunication of change,empowering

152、 people and skilling at all levels are important to delivery“Which of the following practices were most important to the successful delivery of your reinvention strategy?”Source:Accenture Total Enterprise Reinvention CxO Survey fielded in November 2022.Sample size:Total,1,516;Total Enterprise Reinve

153、ntors,119;Transformers,1,303;Optimizers,94.Dedicating the right amount of time and effort to change management&commsSenior leaders communication of a compelling change storyAssigning the highest performers to the highest value initiativesEmpowering,recognizing,and rewarding new ways of workingUpskil

154、ling and reskilling employees with the tools and capabilities needed to speed up executionHaving the relevant skills/capabilities in the executive team to deliver the program5054458443848384154294144+32%+24%+21%+70%+11%+23%Total Enterprise ReinventorsTransformersOptimizersFigure 11:%of re

155、spondentsExecutives must be the voice of change Any successful reinvention begins with the executive team creating conviction in an organizations people to drive change.The CEO must champion the Total Enterprise Reinvention strategy,with the whole C-suite in lockstep.After adopting such a strategy,t

156、he CEO and executive team must be actively engaged,communicating and owning a clear message and rationale for the reinvention to bring other employees along.Many organizations underestimate the importance of communicating the“why”of a reinvention.Engagement with people needs to have a vision and a c

157、all to action that resonates with each person,helping connect individual purpose with the overall goal of the change.Reinventors distinguish themselves in this area.As Figure 11 shows,Reinventors are more likely to dedicate ample time and effort to change management and communicationsincluding senio

158、r leaders communication of a compelling change story.39Total Enterprise Reinvention|The strategy that leads to a new performance frontierBuilding companywide Technology Quotient(TQ)From the C-suite to the front line,employees at all levels will need to develop a TQ to drive successful reinvention.Th

159、e TQ is how we build and demonstrate our understanding of transformative technologies and how they deliver on the promise of technology and human ingenuity.At Accenture,we invest in continuous training across the enterprise,with each employeeincluding the C-suitereceiving an individual TQ score.Acce

160、ntures TQ learning series is a simple and effective way to ensure every member of the team learns about technology,how its applied,why it matters and how it works with other technologies.Every employee at Accenture takes the TQ courses,no matter what their area of expertise.Roche is reinventing itse

161、lf to become more agile and digital.Part of the foundation for this effort has been a global leadership initiative designed to help senior executives develop the mindsets they need in both personal and organizational reinvention.The leadership model has moved from one designed for command and contro

162、l to one built on empowerment to encourage collaboration and creativity.2240Total Enterprise Reinvention|The strategy that leads to a new performance frontierAchieving the comprehensive scale of Total Enterprise Reinvention requires companies to connect people,processes and data across the enterpris

163、e and beyond,creating a boundaryless organization.Organizations are becoming more interconnected.Ninety-nine percent of executives expect this focus on interconnectedness across their organization will increase over the next two years.Creating capabilities at the performance frontier requires an ent

164、erprise-wide approach that cuts across business units and functions,rather than a single function-or business-driven approach.Take the value-chain business planning and intelligent manufacturing and fulfillment capabilities critical to retailers and consumer goods companies.Building these capabiliti

165、es requires an end-to-end approach that impacts virtually the entire organization in some way(see Figure 12).5.Reinvention is boundaryless and breaks down organizational silos4141Total Enterprise Reinvention|The strategy that leads to a new performance frontierBuilding full value chain business plan

166、ning and intelligent manufacturing and fulfillment capabilities at the performance frontier requires an end-to-end approach Interventions across the value chainFigure 12:Degree of business impactIdentify Consumer DemandPrescribe Customer OrderManufacture to DemandPackage with ResponsibilityFulfill b

167、y Real-time Optimal Flow PathsEngage for Circular(re)FulfillmentAccelerate GrowthOptimize OperationsDegree of ImpactHighMediumLowN/ABuild Digital CoreAI SecurityData Platforms CloudSource:Accenture analysis.FinanceHuman ResourcesLegalInformation TechnologySourcing&ProcurementSupply ChainEngineering&

168、ManufacturingSustainability Industry-specific FunctionsResearch&DevelopmentCorporate StrategyMergers&AcquisitionsNew Business ModelBusiness UnitsSalesMarketingService42Total Enterprise Reinvention|The strategy that leads to a new performance frontierChanges to the operating model are also accompanie

169、d by significant changes in how people work.Adopting agile principles across the business(not just in IT)empowers employees and enables cross-functional ways of working.The move to empowered,multidisciplinary teams allows people to take on more complex roles that combine tasks once performed by two

170、or more individuals in traditional roles.Evidence is seen in recruitment trends,with our analysis showing the average number of skills required for jobs posted during 2020-22 increased by 18%.23The integrated operating model and new ways of working are underpinned by an integrated,enterprise-wide te

171、chnology and data platform that democratizes data across the enterprise.The flow of data provides connections between teams across the networked organization,enabling the sharing of ideas and insights.The European automotive ecosystem,for example,is working to create a secure,standardized data excha

172、nge,the“Catena-X Automotive Network”the first open-data ecosystem in the sector.24 By sharing data and other resources,Catena-X aims to improve transparency and efficiency,as well as reduce carbon emissions throughout the supply chain.25 Boundaryless doesnt mean a lack of controls.Those adopting rei

173、nvention recognize the need for a dedicated Transformation Office.The office coordinates,setting the schedule and tracking progress,developing a fully integrated plan with financial projections,clear operational performance indicators and targets for each workstream that acts as a single source of t

174、ruth for the entire organization(see Figure 13).Reinventors strengthen connections across their organizations43Total Enterprise Reinvention|The strategy that leads to a new performance frontierFigure 13:Effective program governance is seen as the most important factor for successful delivery“Which o

175、f the following factors were most important to the delivery of your reinvention strategy?”“Which of the following practices were most important to the successful delivery of your reinvention strategy?”Source:Accenture Total Enterprise Reinvention CxO Survey fielded in November 2022.Sample size:Total

176、,1,516;Total Enterprise Reinventors,119;Transformers,1,303;Optimizers,94.%of Total Enterprise Reinventors,n=119%of respondentsEffective program governancePeople and cultureThe right partnersLeadership engagement and alignmentA compelling business case56%54%52%50%48%Creating a detailed plan of initia

177、tives for all workstreamsEstablishing a dedicated transformation office to oversee the programTotal Enterprise ReinventorsTransformersOptimizers+40%+16%60575754434944Total Enterprise Reinvention|The strategy that leads to a new performance frontier6.Reinvention is continuous45Total Enterprise Reinve

178、ntion|The strategy that leads to a new performance frontierContinuous reinvention is supported by core planning processes“Which of the following practices have you adopted in support of your philosophy of continuous reinvention?”%of Total Enterprise Reinventors,n=119Figure 14:Source:Accenture Total

179、Enterprise Reinvention CxO Survey fielded in November 2022.Reprioritize existing initiatives and add new initiatives to the reinvention strategy,as part of core planning processesWork with business partners to continuously drive innovationLeverage an innovation methodology to generate new ideasEngag

180、e with others that have reinvented themselves to learn from their experienceLeverage employee crowdsourcing to generate new ideas58%50%39%38%40%Transformation typically has been sequential and time-bound.Reinvention,however,is as dynamic as the changing technological and market landscape.It requires

181、 both speed of execution and an approach toward continuous change that seeks progress over perfection.The earlier value is released,the quicker it can be invested in new initiatives that further extend the performance frontier.Its therefore critical for companies to focus on initiatives that drive t

182、he most impact.As such,companies must be ready to reprioritize initiatives on an ongoing basis,stopping non-value-adding initiatives at the right time,while regularly restocking their pipeline with new initiatives.Fifty-eight percent of Reinventors say that both reprioritizing existing initiatives a

183、nd adding new initiatives to the reinvention strategy during core planning processes supports a philosophy of continuous reinvention(see Figure 14).UBS,for example,introduced“dynamic investment reprioritization”to optimize results through quarterly budget reviews,helping ensure that the banks digita

184、l deliverables are aligned with customers needs.2646Total Enterprise Reinvention|The strategy that leads to a new performance frontierPartners bring resourcesassets,ideas,skillsthat can accelerate progress at scale,in support of compressed transformation.Partners can also support the investment requ

185、ired to deliver reinvention through gain-sharing agreements.And partners can help build a capability to deliver continuous reinvention:69%of companies that are moving to adopt a strategy of Total Enterprise Reinvention say that having a business partner that helps select and build solutions and plat

186、forms is important to the successful delivery of their strategy(see Figure 15).Verizon,for example,has systematically built an ecosystem to support the development of the 5G economy,by forming strong partnerships across its value chain.Device manufacturers help ensure that Verizons network can suppo

187、rt all devices.Reinventors draw on the power of their ecosystem partnersCloud providers and system integrators have partnered to develop Verizons mobile edge compute(MEC)ecosystem.Customers test new use cases.Partners are helping Verizon,too.Verizon and Meta are working together to leverage compleme

188、ntary capabilities to build the foundations of the metaverse,with a focus on the MEC infrastructure for extended reality experiences.27 47Total Enterprise Reinvention|The strategy that leads to a new performance frontierBusiness partners are at the center of delivering reinvention strategies“Which o

189、f the following practices were most important to the successful delivery of your reinvention strategy?”%of respondentsSelecting a business partner at the center of the strategy and working with them to select and build solutions and platformsHaving a cloud services partner at the center of the strat

190、egy and building teams and other external providers around this single partnerFigure 15:5853+30%69Total Enterprise ReinventorsTransformersOptimizers6360+7%64Total Enterprise ReinventorsTransformersOptimizersSource:Accenture Total Enterprise Reinvention CxO Survey fielded in November 2022.Sample size

191、:Total,1,516;Total Enterprise Reinventors,119;Transformers,1,303;Optimizers,94.48Total Enterprise Reinvention|The strategy that leads to a new performance frontierTotal Enterprise Reinvention outcomes49Total Enterprise Reinvention|The strategy that leads to a new performance frontierEmbracing Total

192、Enterprise Reinvention releases value at a compressed rateCompanies that pursue Total Enterprise Reinvention are nearly 2x more likely to have beenor expect to behighly successful in delivering on their business case than Transformers,and 8x more likely than Optimizers(see Figure 16a).In our survey,

193、Reinventors report generating 10%higher incremental revenue growth,13%higher cost-reduction improvements and 17%higher balance-sheet improvements compared to Transformers.Those numbers are significantly higher when compared with Optimizers at 22%,21%and 20%respectively(see Figure 16b).Our analysis f

194、inds Reinventors double their probability of outperforming on these measures,relative to the industry average.28“How successful have you been/do you expect to be in delivering on your transformation program?”“What financial value do you expect to realize from your reinvention strategy against the fo

195、llowing measures?”Figure 16a:%of respondentsOutcomes for Reinventors relative to Transformers and OptimizersFigure 16b:8x44%24%51%1%5%56%20%49%45%Total Enterprise ReinventorsTransformersOptimizers5%Highly successful100%+of the business caseSuccessful90-100%of the business caseReasonably successful70

196、-89%of the business caseMostly unsuccessful30-69%of the business caseUnsuccessful29%or less of the business caseIncremental revenue growthCost reduction P&L improvementsBalance sheet improvementsReinventorsvs.OptimizersReinventorsvs.Transformers+22%+10%+21%+13%+20%+17%Source:Accenture Total Enterpri

197、se Reinvention CxO Survey fielded in November 2022.Sample size:Total,1,516;Total Enterprise Reinventors,119;Transformers,1,303;Optimizers,94.50Total Enterprise Reinvention|The strategy that leads to a new performance frontierMoreover,Reinventors report delivering 1.3x more financial value in the fir

198、st six monthsa reflection of the speed at which such companies execute and deliver increased value compared with Transformers,1.6x compared with Optimizers(see Figure 16c).Indeed,66%of Reinventors say that the delivery of their reinvention strategy is happening significantly faster relative to past

199、transformations.By comparison,only 27%of Transformers and 10%of Optimizers say the same(see Figure 16d).Companies reinvent at speed through compressed transformation,in which agile ways of working,standardized solutions,and the capabilities of ecosystem partners are used to accelerate progress.A“dyn

200、amic”approach makes the most difference.Adopting a philosophy of continuous reinvention,in which companies keep redefining what is possible,is 4.5x more important than any of the other features of Total Enterprise Reinvention in boosting the probability of financial outperformance(see“About the rese

201、arch”for further details).51Total Enterprise Reinvention|The strategy that leads to a new performance frontierFigure 16c:“What proportion of the financial value was/do you expect to be delivered within the following time periods?”%of financial value“Has the delivery of your reinvention strategy occu

202、rred/do you expect it to occur faster or slower relative to past transformations?”%of respondentsFigure 16d:Total Enterprise ReinventorsTransformersOptimizersWithin 6 months7-12 months1.6x11%9%7%17%16%13%6.6x66%29%27%64%7%10%3%4%1%1%2%85%Total Enterprise ReinventorsTransformersOptimizersSignificantl

203、y fasterFasterAt the same speed SlowerSource:Accenture Total Enterprise Reinvention CxO Survey fielded in November 2022.Sample size:Total,1,516;Total Enterprise Reinventors,119;Transformers,1,303;Optimizers,94.52Total Enterprise Reinvention|The strategy that leads to a new performance frontierThe va

204、lue Reinventors generate is far more than financial,however.Reinventors more actively manage forand deliver on non-financial outcomes,generating what we call“360 value.Generating 360 value means looking beyond short-term financials to understand what creates long-term,sustainable value in a world wh

205、ere people are more empowered than ever to choose the companies with whom they engage.Seventy-six percent of companies that pursue Total Enterprise Reinvention say setting non-financial targets is very important,compared with 32%for Transformers and only 10%of Optimizers.Reinventors deliver superior

206、 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.Beyond the survey,our analysis found Reinventorsrelative to their industry peersperform 32%better on sustai

207、nability and 31%better on experiencefor customers(as indicated by customer relationship-management scores),suppliers(as indicated by churn rates)and employees(as indicated by recommendations to others).Reinventors also score 11%higher on innovation,11%higher on“net better off”outcomes for talent,and

208、 7%higher on inclusion and diversity(see Figure 17 and“About the research”for further details on how we quantify these areas of performance).53Total Enterprise Reinvention|The strategy that leads to a new performance frontierTotal Enterprise Reinvention improves performance on multiple measures of n

209、on-financial value“When setting targets for a transformation,how important are non-financial targets?”Figure 17:Indexed scores on non-financial measures of performance Source:Accenture Total Enterprise Reinvention CxO Survey fielded in November 2022.Non-financial analysis is based on companies that

210、are identified as Total Enterprise Reinventors by industry experts.“Sustainability”is based on ESG data from Capital IQ.“Experience”is based on measures of customer-relationship management and supplier churn from S&P Global and FactSet Supply Chain.“Talent”is based on Net Better Off indicators from

211、Glassdoor,Arabesque and S&P Global.And innovation is based on the efficiency of tangible and intangible expenditure.%of respondents0-10076%32%10%24%63%90%1%4%1%Total Enterprise ReinventorsTransformersOptimizersVery importantImportantNeither important nor unimportantNot importantNot at all importantT

212、otal Enterprise ReinventorsIndustry peersSustainabilityExperienceInnovationTalentInclusion&Diversity+32%+11%+31%+11%+7%70643646054Total Enterprise Reinvention|The strategy that leads to a new performance frontierCharting a path to become a ReinventorWe believe all companies will need to a

213、dopt Total Enterprise Reinvention as a strategy in the coming years.Here are four categories of questions to help shape a path forward.Transformation initiatives currently underway Are the leaders of your current transformational initiatives able to articulate the changes that will occur across the

214、enterprise,and are they using metrics that take a cross-functional view?Can your leaders articulate the partnership strategy for each transformation program,how that strategy is enabling them to deliver outcomes faster and increase certainty of outcomes as well as how the partner fits into your tale

215、nt strategy?Ambition and strategy Where are you today:are you a Reinventor,Transformer or Optimizer?Have you defined the performance frontier for your company,and how does it measure against the best in your industry and the best in other relevant industries?Are you matching the leaders or setting t

216、he new benchmark?Is your entire C-suite held accountable,as a primary metric,for the success of your current transformation programs,or is the business or function lead primarily accountable?Talent Do leaders have sufficient technology acumen to understand the art of the possible and what it can do

217、to drive reinvention?Do you have existing change management capabilities to support your continuous transformation journey,or are you standing these up for each transformation project?Do you use data to measure your transformation,and is the same form of measurement used for all programs?Digital Cor

218、e How would you assess your digital core?What is its level of maturity and what are its known gaps?Is the ability to use technology investments to achieve sustainability and other 360 value objectives and any negative impacts formally included in technology investment decisions?55Total Enterprise Re

219、invention|The strategy that leads to a new performance frontierAbout the research56Total Enterprise Reinvention|The strategy that leads to a new performance frontierTotal Enterprise Reinvention CxO survey Accenture Research conducted a survey of 1,516 C-suite executives in November 2022.Respondents

220、were asked about their organizations approach to business transformation and reinvention strategy,as well as about their specific programs and success factors.We conducted the survey in 10 countries:Australia,Canada,China,France,Germany,India,Italy,Japan,United Kingdom and the United States.Responde

221、nts represented 19 industries:Aerospace and Defense;Airline,Travel and Transport;Automotive;Banking(Retail);Capital Markets;Chemicals;Communications,Media and Entertainment;Consumer Goods and Services;Energy;Healthcare;High Technology;Industrial Goods and Equipment;Insurance;Natural Resources;Pharma

222、ceuticals,Bio Tech and Life Sciences;Public Services;Retail;Software and Platforms;and Utilities.Based on survey responses,we identified three groups of companies:Total Enterprise Reinventors(8%of the sample)Transformers(86%of the sample)Optimizers(6%of the sample)We compared the success of transfor

223、mation programs,both in terms of 360 value impact and enabling factors,across these three groups.We also ran a logistic regression to understand how each principle of Total Enterprise Reinvention is related to a companys probability of outperforming its industry segment peers,in terms of the financi

224、al value that the transformation delivers.The financial value of the transformation is based on incremental revenue growth,cost reductions and balance sheet improvements.The regression controls for company specific factors such as company size and headquarters location.We took a multi-method approac

225、h 360 value performance analysis of Total Enterprise ReinventorsWe compared the non-financial performance of companies we identified as Total Enterprise Reinventors,based on expert input,relative to their industry-segment peers.We used non-financial performance elements of Accentures 360 value frame

226、work for the analysis:sustainability,experience,innovation,talent,and inclusion and diversity(I&D).Each sub-component is based on a set of indexed scores.Sustainability covers environmental,social and governance scores.Experience consists of scores that reflect customer experience,ecosystem partners

227、 experience(supplier churn,vendor churn,etc.)and employee experience(e.g.,recommendation to friends).Innovation is based on the efficiency of tangible and intangible expenditures.Talent is based on the Net Better Off outcomes,consisting of a companys performance in the areas of compensation and bene

228、fits,work/life balance,employment quality,occupational health and safety,culture and values,and human capital development.I&D is based on employee diversity and product accessibility.57Total Enterprise Reinvention|The strategy that leads to a new performance frontierGlobal Disruption IndexWe created

229、 an overall measure of disruption to assess the level of volatility and change in the external business environment.The index is based on the average of six sub-components,that cover the economic,social,geopolitical,environmental,consumer and technological spheres.Each of the sub-components is based

230、 on a set of indexed scores for a range of indicators.The economic component is based on economic risk ratings,Volatility Index(VIX),Gross Domestic Product(GDP)volatility and inflation volatility.Geopolitics is based on the risk of geopolitical instability.The social component reflects social unrest

231、 and non-participation in the labor market.The environmental component reflects the frequency of climate-related disasters and climate-driven risk.The consumer component reflects pessimism at a global level,based on the inverse of the OECDs Consumer Confidence Index.Finally,the technological compone

232、nt is based on an index comprised of 24 indicators,which use the presence of disruptors and performance of incumbents as proxies for the level of disruptive innovation in industries.Potential of technology to reinvent workWe assessed the potential of technology to enhance how we sense,comprehend,act

233、 on and learn from information and data.This involved the following steps:Step 1:We classified 2,100 examples of tasks from the O*Net and US Bureau of Labor Statistics.These examples consisted of 330 separate tasks that make up 851 occupations.The classification involved taking the“action”verbs from

234、 the task descriptions and assigning those verbs into four subcomponents:sense,comprehend,act and learn.Doing this created a training set.We then used this manual classification to train a machine learning model,which improved the accuracy of classification.The machine learning model gave a score fr

235、om 0 to 1,which indicates the probability that a given task falls into one of those four groups.Step 2:We analyzed the current distribution of work activities within individual occupations,to understand the time allocated to different tasks.Based on expert input,we estimated the potential of technol

236、ogical innovation to reinvent a specific task,either by automating it or by augmenting it.Using those two elements,we calculated the share of time that would be reinvented by technology,across all occupations.Step 3:The results from step 2 were combined with the latest US employment data by occupati

237、on,to get an estimate of the share of hours worked in 2021 that could potentially be reinvented by technology.Results were also aggregated by job cluster and industry.58Total Enterprise Reinvention|The strategy that leads to a new performance frontierData-science analysis of investor communications

238、We used a Transformer-based natural language processing(NLP)method to analyze the investor communications of the worlds largest 2,000 companies between 2018 and Q3 2022.We did this to identify patterns in mentions of key words related to business transformation and reinvention.We also performed topi

239、c modelling on extracts from investor communications related to strategy,in order to identify the co-existence of“strategy”topics with other technology-related topics.Skills demand,based on job postingsWe analyzed which skills are in higher demand among Reinventors than among other companies in thei

240、r industry segment.This analysis was based on the Lightcast US job postings database.The list of Reinventor companies is a combination of companies identified by industry experts and those companies that fulfill all of the total enterprise reinvention criteria in the survey.The job postings were ext

241、racted from 2021 onwards.We then calculated the share of each skill requested,compared to the total number of skills requested in all job postings.Next,we calculated the difference of skill shares between each Reinventor and its industry-segment peers.This enabled us to understand which types of ski

242、lls are more important for Reinventors(because they are more likely to request them in job postings than are other firms).59Total Enterprise Reinvention|The strategy that leads to a new performance frontierReferences60Total Enterprise Reinvention|The strategy that leads to a new performance frontier

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244、2022 Financial Results,Conference call transcript,September 22,2022,https:/ Project Management Institute(PMI)and Accenture,“The Chief Transformation Officer:Why transformation leaders matter,what they(should)do,and what they need to succeed”,September 15,2022,https:/www.brightline.org/resources/the-

245、chief-transformation-officer/6.Accenture,“The life centricity playbook,proven strategies for growth through resilience”,2022,https:/ Research analysis of changes in the Fortune 100 list between 2000 and 2022.8.Sequoia Capital,Founder All Hands,“Adapting to Endure”,May 2022,https:/ Express,Annual rep

246、ort 2008;Geoff Colvin,Crisis chief:AmExs Chenault,Fortune,October 15,2009,https:/ price is based on February 2009 to February 2019 price.10.Accenture,“Value untangled.Accelerating radical growth through interoperability”,2022,https:/ Enterprise Reinvention CxO survey,2022 12.Accenture Research analy

247、sis of S&P Earnings Calls transcripts for 2,000 largest companies for which data is available.Mentions are calculated based on technology-related keywords selected by subject matter experts.13.Accenture,Banking on data:How Siam Commercial Bank reimagined data to drive value,https:/ Commercial Bank,A

248、nalyst Meeting Presentation for Q1 2022,April 2022.https:/www.scb.co.th/content/dam/scb/investor-relations/documents/presentation/en/1q22-analyst-presentation.pdf15.SCB,Annual Report 2021,accessed via https:/www.scb.co.th/en/investor-relations.html 16.SCB10 x,https:/ sets ambition for net zero by 20

249、50,fundamentally changing organization to deliver”,February 12,2020,https:/ 18.bp,“Full year 2021 results update on strategic progress”,February 8,2022,https:/ 19.bp,“Our strategy”,https:/ 20.bp,“The energy trilemma:digital upgrade”,https:/ Research analysis based on Capital IQ data.We analyzed thre

250、e-year TSR for global,publicly listed companies with annual revenues above$1 billion in 2019.Only companies with data for the last 11 years were analyzed(3,763 in total).Top performers are companies that are at the 75th percentile of three-year TSR;median performers are companies that are at the 50t

251、h percentile of three-year TSR.22.Roche,Annual Report 2021;Stuart Knight,“The key to diversity is authenticity,”Roche,October 11,2020,https:/ 23.Accenture Research analysis based on Lightcasts job postings database.Postings were for positions in the US and were posted between Q3 2020 and Q2 2022.We

252、use natural language processing to identify project-based roles and then calculate the share of project-based role postings as a proportion of total job postings.24.CatenaX,https:/catena- World Today,Hannover Messe 2022:bringing data sharing to the automotive industry,June 2 2022,https:/ results Q1

253、and Q3 2021 Results Presentation,https:/ Day 2022,Edited Transcript,https:/ on logistic regression analysis of the characteristics of Total Enterprise Reinvention.61Total Enterprise Reinvention|The strategy that leads to a new performance frontierAbout AccentureAccenture is a leading global professi

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