“Delivering Digital Dividends” report identifies value-gaps that
organizations should address when adopting and implementing technologies
SINGAPORE–(BUSINESS WIRE)–New research from Accenture (NYSE: ACN) gives clients a tool to help
them derive maximum value from the adoption of digital technologies and
power profitable growth.
The research – titled “Delivering
Digital Dividends: How to Start Making Your Technology Investments
Really Pay Off” – identifies the key external factors that
organizations need to address to maximize gains from digital
technologies they adopt.
The research builds on Accenture’s “Combine
and Conquer” report from last year, which identified the best
combinations of digital technologies to drive maximum business impact.
“Combine and Conquer” calculated that companies that implemented those
technologies effectively could boost their market capitalization by 28
percent, on average.
The goal of the new research, “Delivering Digital Dividends,” is to help
clients realize such gains by becoming what Accenture refers to as
“Industry X.0” businesses – organizations that combine digital
technologies to drive exceptional efficiency gains; create new,
hyper-personalized experiences; and enable new business models to drive
both top- and bottom-line growth.
While “Delivering Digital Dividends” focuses initially on five
technologies found to be widely relevant and applicable across
industries – artificial intelligence (AI), augmented/virtual reality,
big data, blockchain and robotics – it can be applied to a variety of
other digital technologies, including mobile computing, 3D printing and
digital twin, among others.
The research identifies five broad areas related to technology
implementation, referred to as “value-triggers,” along with a series of
sub-elements for each trigger. The five value-triggers are:
- Value Potential. Focuses on the potential
costs savings and gains in market cap value that the technology can
- Talent Readiness. Looks at both the
existing workforce – in terms of the availability of talent and skills
required for development, integration and maintenance of the
technology – as well as the current demand and supply for talent with
the specific technology skillset.
- Capital Adequacy. Considers the growth in
venture capital investment, as well as the number of mergers and
acquisitions related to the technology over the past three to five
- Ecosystem Maturity. Analyzes the
availability of widely accepted standards and protocols for the
technology; efforts made to address interoperability challenges; the
number of consortiums (academic and industry-specific) formed to
advance the technology; and the number of start-ups focused on
advancing the technology.
- Adoption Intensity. Considers a variety
of sub-elements: the number of use case applications built using the
technology; the number of use cases that have made it to commercial
deployment; the estimated growth in technology spend; the number of
companies investing in and/or developing the technology or related
offerings; and C-suite perception of the technology’s ability to
improve efficiencies and deliver new experiences.
The value-triggers form the core of the Accenture Digital Dividends
Diagnostic, a tool that measures the advancement of the technology
against each of the value-trigger sub-elements on a scale of one to
five; the smaller the number, the lower the advancement of that
technology in the context of the particular sub-element of the value
trigger. The value-trigger scores can be assessed for specific
industries, enabling an enterprise to take necessary measures toward
bridging value-gaps in the context of technologies adopted. For
instance, a company adopting a technology with a low ‘Talent Readiness’
score can start investing to either build the necessary talent pool
within its organization or tap ecosystems to acquire the talent.
“When investing in a new technology, businesses often focus inward
within their enterprise and ignore external factors – such as the
available talent pool or industry investment in the technology – that
could help them decide if the implementation of the technology is viable
or feasible within their organization,” said Raghav Narsalay, a managing
director at Accenture Research, who led the Delivering Digital Dividends
research. “The Digital Dividends Diagnostic we developed as part of our
research takes the guesswork out of where the roadblocks to technology
adoption might be and provides a clear understanding of what you will
need to do to manage the implementation of the technology.”
The report notes that disregarding even a single value-trigger can be
costly. For instance, the research found that companies that managed the
ecosystem value-trigger particularly well – known as “ecosystem
engagers” – achieved cost reductions per employee that were
2.4 percentage points greater, on average, than those of other
companies. For the three years between 2013 and 2016, this translates to
cost savings of US$844 million for the ecosystem engagers, on average.
“Given that nearly half of executives surveyed as part of last year’s
‘Combine and Conquer’ research cited an inability to combine rapidly
evolving digital technologies as a key obstacle to successfully
transforming their business, our new research should help ease their
implementation concerns,” Narsalay said.
Aidan Quilligan, a managing director at Accenture and global lead of its
Industry X.0 practice, said, “Executives don’t have to understand all
the ins and outs of a technology to get the most value from it, but they
must understand the broader business landscape around the technology.
While there are many excellent frameworks for assessing the internal
digitization readiness of a company, until now you were on your own if
you wanted to run an assessment of the external factors that might
influence your digital transformation. Our Digital Dividends Diagnostic
now makes this possible, providing a framework to help you get maximum
value from digital technologies.”
Accenture is a leading global professional services company, providing a
broad range of services and solutions in strategy, consulting, digital,
technology and operations. Combining unmatched experience and
specialized skills across more than 40 industries and all business
functions – underpinned by the world’s largest delivery network –
Accenture works at the intersection of business and technology to help
clients improve their performance and create sustainable value for their
stakeholders. With 459,000 people serving clients in more than 120
countries, Accenture drives innovation to improve the way the world
works and lives. Visit us at www.accenture.com.
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