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Winning in the Age of Disruption

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Accenture's report explains how wise pivot could save South African companies that are finding it hard to convert opportunities into actual value. Read more.​

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Winning in the Age of Disruption

  1. 1. WINNINGIN THEAGEOF DISRUPTION ACCENTURERESEARCH UNCOVERINGINSIGHTS. SHAPINGTRENDS. ACCENTURE INNOVATION MATURITY INDEX SOUTH AFRICA
  2. 2. Disruptionisan inescapableand growingchallengefor allindustries... 85%ofSouthAfrican companiesare vulnerabletofuture disruption Sources: Accenture Research Disruptability Index 1Total sample = 100 based on publicly listed company data Industry Exposure to Disruption Total EV of companies in industry sample
  3. 3. ** 3 ** expect their industry to be disrupted by new innovations in the next three years – especially from NEW competitors and NEW technologies 75% 3 Executivesareaware ofthethreat andnotprepared… concede that their companies are not prepared for disruption 1/2 Source: Survey data based on interviews with 100 C-suite executives are very satisfied that their company’s innovation efforts will position them well to overcome future disruption 16%
  4. 4. ** 4 ** 4 Whencompaniesare inthemiddleofit, theytypicallymake cautiousmoves. …But,playingitsafe amidfiercedisruptors isveryrisky Financial investments in innovation over the past 5 years? And next 5 years More than 50%25% - 50% 82% 48% 7% 0% 18% Less than 25% 45% Past 5 years Next 5 years * Enhancing features of an existing product or service **Focus on advances that create entirely new markets, with the potential to disrupt entire industries of companies continue to compete in their legacy businesses, using mostly traditional approaches or just started transforming their legacy business into new business 68% Source: Survey data based on interviews with 100 C-suite South African executives
  5. 5. Nearlyall disruptions arecausedby innovations… 5 …making innovation thesource ofdisruption : Entertainment – Streaming video : Retail – Online shopping : Mobile – Smartphone disrupted : Hospitality/Transport – Platforms
  6. 6. Companiesthatthrive intheageofdisruption builddeliberate innovationstructures High-growth companies innovate by setting up structures for innovation success STRATEGY Successful innovators share a similar approach to innovation strategy. They aim for disruptive advances, rather than incremental improvements. They build concentrated innovation functions, rather than dispersed teams. They balance innovation between old and new and make sure innovation is quantifiable. ARCHITECTURE A well-designed innovation architecture specifies clear processes for moving innovation from ideation through R&D to mass-market commercialisation, employing a combination of internal and external innovation capabilities. CULTURE Companies that succeed in innovation have a culture of innovation in which creativity is encouraged and rewarded. Ideation is applauded by managers. They foster a culture that drives creativity and new thinking within their organisations. Sources: Accenture Research Analysis 6 % of High Growth co’s agreed structures will describe their organisation to a “significant extent” 18% 82%
  7. 7. …andadopt 7 innovationpractices thatleadsto organizationalchange Sources: Accenture Research Analysis 7 DATA DRIVEN Generating, sharing and deploying data to deliver new product and service innovations safely, securely and efficiently TALENT RICH Creating new, modern forms of workforces (flexible, augmented and adaptive) to gain a competitive advantage in fast-changing markets TECHNOLOGY PROPELLED Mastering leading- edge technologies that enable business innovation NETWORK POWERED Harnessing the power of a carefully managed ecosystem of partners, to bring the best innovations to your customers INCLUSIVE Adopting an inclusive approach to innovation and governance that incorporates a broader stakeholders ASSET SMART Adopting intelligent asset and operations management to run businesses as efficiently as possible, and to free up the capacity for other innovative efforts HYPER RELEVANT Knowing how to be–and stay–relevant by sensing and addressing customers’ changing needs High-growth companies apply innovation practices to change their way of doing business more, to become: % of High Growth co’s agreed practices will describe their organisation to a “significant extent” 10% 90%
  8. 8. Managingdisruption successfullyis whyinnovation matters Sources: Accenture Research Analysis Accenture’s INNOVATION MATURITY INDEX diagnostic asset is designed on the back of these insights to measure the readiness of companies innovation ability to unlock trapped value support their journey to the NEW 8
  9. 9. INNOVATIONMATURITY SOUTHAFRICARESULTS
  10. 10. 10 Innovation Maturity Index Scores (out of 100) 54 68 76 Rest of the Market SA Innovation Champions Global Innovation Champions +8 Innovate By Design Innovation Practices 63 68 72 +4 46 67 77 +10 Source: Accenture Research analysis 7 percent of the sample Headlines: …asharpdivideexists betweenthoseonthe winningsideof innovationandthose beingdisruptedbyit …asmallgroupofSA InnovationChampions (7%)averaged68points …GloballyInnovation Championsscore76 pointsonaverage
  11. 11. THE INNOVATION CHAMPION APPROACH
  12. 12. Championsuse innovation strategicallytounlock trappedvalueinnew businesseswhile revitalizingtheircore business.Astrategy wecallthewisepivot Sources: Accenture Research Analysis 12 of champions (vs 41% of others) use innovation strategically to unlock value in their new businesses 71% Champions are more confident of their levels of investments dedicated to pivoting their business 1.5x 2.2x 4x Bubble size: Level of investment confidence by change activity: Champions over rest of the market
  13. 13. Innovation Leaders IndesignChampions seethevaluein buildingastrong Innovation Architectureto supporttheirpivot execution Sources: Accenture Research Analysis 13 Innovate By Design Index Scores (out of 100 points) 63 68 72 Rest of the Market SA Innovation Champions Global Champions 72 77 80 8 69 75 71 2 48 54 67 19 Innovate By Design
  14. 14. Champions differentiate themselvesinallofthe innovationpractices… AndtheyseeDataas thealphatrend… 14 Innovation Practices Index Scores (out of 100 points) 50 52 45 47 44 42 41 71 71 69 68 67 62 59 82 82 80 77 77 75 71 Network Powered Hyper Relevant Data Driven Talent Rich Inclusive Technology Propelled Asset Smart 32 30 35 30 33 33 +30 46 67 77 Rest of the Market SA Innovation Champions Global Champions
  15. 15. PUTTIGINNOVATION TOWORK.. Actionstotakenow 15 TARGET ENTERPRISE TRAPPED VALUE RELEASE ENTERPRISE TRAPPED VALUE BE CHANGE-ORIENTED… Identify which target characteristics (e.g., becoming talent rich) are central to your growth strategy, and how intensely you are prepared to drive innovation-led change. BE OUTCOME-LED… Prioritise investments in those capabilities that you can bring back into your ‘core’ to help modernise the existing ways of working (e.g., acquisition of artificial intelligence or cyber security capabilities). BE DISRUPTION-MINDED… Aggressively direct your investment capacity to innovations that help expand your footprint into new markets, with foresight (e.g., using blockchain to improve women inclusion in insurance). Test and embrace multiple innovation practices to redefine the most established ways of doing business (e.g., rotation of talent from business-as- usual roles to ‘innovation gigs’). Tie your innovation investments to the desired long-term performance (i.e., growth revenue, profit, customer value growth etc.), not only to short-term efficiency benefits. Organise differently for disruptive innovation initiatives (e.g., go beyond experiments, and turn those initiatives with the highest disruption potential – or your ‘moon shots’ – into new businesses at a faster pace).
  16. 16. …VISITTHEAFRICAOBSERVATORYWHEREWEUNPACK(ANDCONTINUETORELEASEMORE)TOPICS RELATEDTOWINNINGINTHEAGEOFDISRUPTIONTHORUGHINNOVATION Innovate By Design - Strategy - Culture - Architecture INNOVATION PRACTICES Data Driven Hyper relevant Tech Propelled Network Powered Inclusive Asset Smart Talent Rich INNOVATION MATURITY JOURNEY • CAN SOUTH AFRICA TAKE THE LEAD IN DATA-DRIVEN MINING? • CLOSING THE DATA VALUE GAP • WELCOME TO THE HYPER-RELEVANCE ERA • RETHINKING THE ECOMMERCE OPPORTUNITY • TECH VISION 2020 • SCALING INNOVATION AND ACHIEVING FULL VALUE WITH FUTURE SYSTEMS • INDUSTRY X.0: COMBINE AND CONQUER • BUILDING PERVASIVE CYBER RESILLIENCE • PIVOTING WITH AI • WINNING WITH DIGITAL PLATFORMS • GETTING TO THE EQUAL: WHEN SHE RISES WE ALL RISE • CREATING SOUTH AFRICAS FUTURE WORKFORCE • COMING SOON • GOEVRNING INNOVATION (coming soon)
  17. 17. THANK YOU!

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