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.
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
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
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. …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%
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
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. …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)