The digital economy is about people: Accenture study

  • Companies that put people first will win in the new era
  • Fundamental shift in how businesses apply key innovations
The digital economy is about people: Accenture study

 
LEADING companies that develop a people-first approach will win in today’s digital economy, according to the latest global technology trends report from Accenture.
 
As technology advancements accelerate at an unprecedented rate – dramatically disrupting the workforce – companies that equip employees, partners and consumers with new skills can fully capitalise on innovations.
 
Those that do will have unmatched capabilities to create fresh ideas, develop cutting-edge products and services, and disrupt the status quo, Accenture said in a statement.
 
“In the Accenture Technology Vision 2016, we’ve identified five technology trends that are critical to digital success,” said Accenture chief technology officer Paul Daugherty.
 
“Digital means people too, and a cornerstone of this year’s Vision is people first. Companies that embrace digital can empower their workforce to continuously learn new skills to do more with technology and generate bigger and better business results,” he added.
 
In a companion survey of more than 3,100 business and IT executives worldwide, Accenture found that 33% of the global economy is already impacted by digital.
 
Additionally, 86% of survey respondents anticipate that the pace of technology change will increase at a rapid or unprecedented rate over the next three years.
 
The Accenture report highlights how companies can often feel overwhelmed by the pace of technology change, experiencing ‘digital culture shock’ at the prospect of keeping up with the competition.
 
However, companies can adopt a people-first approach that will allow them to create new business models that drive digital disruption.
 
One example is GE, which established a new approach called FastWorks that connected employees much more closely to customers and ultimately led to the rapid development of innovative solutions that sold well because they met and exceeded customer expectations.
 
Additionally, Virgin America, the only airline based in Silicon Valley and the highest rated, has gone so far as to collaborate with its frequent flyers, returning customer loyalty with stock options before the company went public.
 
In the report, Accenture identifies five technology trends fueled by the people-first principal that are essential to business success in the digital economy. The trends include (click infographic below to enlarge):
 
1) Intelligent automation
 
Leaders are embracing automation – powered by artificial intelligence (AI), robotics and augmented reality – to fundamentally change the way their business operates and drive a new, more productive relationship between people and machines.
 
Significant investments are well underway with 70% of survey respondents acknowledging increased AI-related technology investments compared with two years ago, and 55% revealing that they plan on using machine learning and embedded AI solutions extensively.
 
2) Liquid workforce
 
By exploiting technology to enable workforce transformation, leading companies will create highly adaptable and change-ready environments that are able to meet today’s dynamic digital demands.
 
The competitive advantage offered by a liquid workforce is apparent as survey respondents indicated that ‘deep expertise for the specialised task at hand’ was only the fifth-most-important characteristic they required for employees to perform well in a digital work environment.
 
Other qualities such as ‘the ability to quickly learn’ or ‘the ability to shift gears’ were ranked higher.
 
3) Platform economy
 
Industry leaders are unleashing the power of technology by developing platform-based business models to capture new growth opportunities, driving the most profound change in the global macroeconomic environment since the Industrial Revolution.
 
This is reinforced by 81% of survey respondents who agree that platform-based business models will become part of their organisation’s core growth strategy within three years.
 
4) Predictable disruption
 
Fast-emerging digital ecosystems are creating the foundation for the next wave of disruption by straddling markets and blurring industry boundaries; forward-thinking leaders can proactively predict these ecosystem trajectories to gain a competitive advantage.
 
Companies are already significantly or moderately experiencing ecosystem disruption, with 81% of survey respondents indicating that they are seeing this in their industry.
 
5) Digital trust
 
Trust is a cornerstone of the digital economy, said 83% of survey respondents. To gain the trust of individuals, ecosystems and regulators in this new landscape, businesses must focus on digital ethics as a core strategy; better security alone won’t be enough.
 

The digital economy is about people: Accenture study

About the methodology
 
Accenture said its Technology Vision is developed annually by the Accenture Technology Labs.
 
For the 2016 report, the research process included gathering input from the Technology Vision External Advisory Board, a group comprising more than two dozen experienced individuals from the public and private sectors, academia, venture capital firms and entrepreneurial companies.
 
In addition, the Technology Vision team conducted interviews with technology luminaries and industry experts, as well as with nearly 100 Accenture business leaders, it added.
 
In parallel, Accenture Research conducted a global survey of more than 3,100 business and IT executives across 11 countries and 12 industries to capture insights into the adoption of emerging technologies.
 
The survey helped identify the key issues and priorities for technology adoption and investment. Respondents were mostly C-level executives and directors, with some functional and line-of-business leads, at companies with annual revenues of at least US$500 million, with the majority of companies having annual revenues greater than US$6 billion.
 
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Business leaders admit they’re not ready for ‘Digital Future’
 
 
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