Convergence of Digital Technologies Opens Doors for Enterprise Growth, Finds Accenture Study
Businesses with strong mobility results hold secrets for successful digital implementations
BARCELONA--(BUSINESS WIRE)--Mobility is the most important digital technology priority for large enterprises, a new global study by Accenture (NYSE:ACN) has found. Reflecting its role as an enabler of other technologies in today’s digital businesses, 43 percent of respondents ranked mobility as a top one or two priority, with 77 percent placing it in the top five. Big data analytics came next with 72 percent putting it in the top five, followed by connected products* at 65 percent.
“Mobility was the forerunner to many of the digital technologies that are now being adopted, and businesses can learn from the mobility leaders’ successes what they need to do to make their adoptions of analytics, social or connected products successful.”
To shed light on how companies currently view and use digital technologies—especially mobility, one of the key enablers of the digital business – Accenture surveyed nearly 1,500 C-level executives at companies in 14 countries around world in the Accenture Mobility Insights Report 2014.
Over one third of enterprises (35 percent) expect the convergence of social**, mobile, analytics, cloud and connected products – grouped together as digital technologies – to increase their sales in existing markets, according to this research. Three quarters view the adoption of digital technologies as a strategic investment rather than something to be evaluated on a case by case basis, as 29 percent expect their adoption to generate additional revenue; 28 percent plan to build entirely new digital businesses or services as a result of convergence, and 27 percent expect to penetrate new markets altogether, showing significant promise around the world from mobility and digital technologies, and demonstrating that they are viewed as drivers for better engagement with customers, and the creation of new revenue streams.
However, new revenue streams are not the only financial consideration. One in ten respondents reported over 100 percent return on investment (ROI) for mobility implementations in the last two years, and while a further 26 percent saw returns of between 50 and 100 percent, those with the greatest ROI, the leaders, shared common traits in their approach to new technologies, which are viewed as enabling operational efficiency and long-term growth.
“Any successful technology implementation requires certain ingredients, but this research demonstrates that in the case of newer, digital technologies it’s not just about actions, but about attitude too,” said Jin Lee, global managing director of Accenture Mobility. “Mobility was the forerunner to many of the digital technologies that are now being adopted, and businesses can learn from the mobility leaders’ successes what they need to do to make their adoptions of analytics, social or connected products successful.”
Organisations with over 100 percent ROI, of whom over two thirds claimed to have effectively adopted and deployed mobile technologies compared to 45 percent of others, shared a number of common traits:
A formal, enterprise-wide mobility strategy and measurement: Eleven percent more likely than other respondents to have a formal, enterprise-wide mobility strategy, leaders are ahead of the curve. This year, 43 percent of enterprises on average were found to have developed a formal mobile strategy, a vast improvement on the 23 percent that claimed one in a similar survey carried out by Accenture last year. Processes and metrics also offered insight, as 29 percent of leaders have a formal process for identifying, evaluating and prioritizing ways in which mobility can benefit business, versus only 18 percent of others. For leaders and others, measurement is shown as a low priority, as only 22 percent of the former and 13 percent of the latter have formal metrics in place to measure the effectiveness of mobility initiatives.
An aggressive, ambitious attitude: Over half the leaders (54 percent) reported having aggressively pursued and invested in mobile technologies across their business, considering mobility as a key tenet of business strategy. Compared to just 40 percent of other respondents, this was also reflected by leaders being more likely to report they have effectively adopted and deployed mobile technologies (69 percent versus 42 percent). Leaders were also more likely to believe that all the major digital technologies are a top-five priority, an average eight percent ahead of those companies performing less well in mobility projects.
Securing senior leadership buy-in: Leaders showed a higher likelihood to report that the CEO and the leadership team or board of directors ultimately own their mobile strategy, and that their companies’ senior leadership are highly engaged with the organization’s mobility initiatives. Amongst all respondents, 35 percent had CEOs involved in formulating mobile strategy, with 30 percent of CMOs or equivalent also having a say.
“The influence of digital technologies has clearly changed the way organizations operate, with the CEO and leadership teams increasingly having responsibility for technology decisions, as they become ever-more entwined with business growth,” continued Jin Lee. “There are still many challenges that businesses must face: the need for enterprise-wide technology strategies is key, but companies also need to harness today’s technology with an eye on tomorrow. Businesses must be agile enough to quickly adapt, with a strong enough technology support system to enable that, but also to fully exploit the capabilities of digital technologies already in place. Mobility came before the digital technologies it’s now converging with, and as such enterprises can learn real lessons from mobility implementations. If they are to take full advantage and see the market growth they expect from digital convergence, it’s more than a suggestion to learn from peers; it’s an imperative.”
The study found that only 30 percent of respondents believed they had the right talent and skills to properly plan and execute their mobility initiatives, which goes part way to explaining why only 27 percent feel they keep pace with new mobile devices, systems and services, adopting them as necessary to improve their businesses. See www.accenture.com/mobilityinsights for more, or join the conversation on twitter using #MobilityInsights.
* Connected Products – defined as: Smart interconnected devices with contextual interfaces that provide customized services and embedded software that enables them to collect, send and receive relevant data.
** Social – defined as: Adoption of social networking and collaborative tools by enterprises and consumers, allowing for better communication and information sharing.
Accenture is a global management consulting, technology services and outsourcing company, with approximately 281,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$28.6 billion for the fiscal year ended August 31, 2013. Its home page is www.accenture.com.
Accenture Mobility, part of Accenture Digital, plans, implements and manages mobility solutions for businesses and public organizations, including developing and implementing enterprise mobility strategies; incorporating applications and managed services; creating and delivering mCommerce solutions; and supplying credible, business ready Connected Product offerings. Accenture Mobility services are based on deep industry insights and technical expertise that helps clients across all industries achieve growth, efficiency and manage a successful transformation as they adopt the tools of a digital business. Find out more by following @mobilitywise and visiting www.accenture.com/mobility.
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