Companies who fail to innovate will not survive digital disruption
We are in the midst of a major technology revolution. Digital now dominates every sector of the economy – it is reshaping industries, disrupting businesses and introducing new operating models. It is also opening up new opportunities to create jobs and boost economic growth. Businesses that are not ready for this revolution will struggle in the next seven years and beyond.
In January 2012, Eastman Kodak Co. filed for Chapter 11 bankruptcy. It marked the end of an era for one of the world’s greatest innovators, a company that played an important part in the lives of millions of people for more than 130 years through the famous “Kodak moment”. The change came swiftly. In a span of just seven years from 2005 to 2012 the company lost half its revenue as new digital technology wiped out its lucrative film business.
Kodak’s experience is not all that uncommon. Many businesses today are reluctant to take bold steps in the face of innovation, new trends or challenges. Soon, these businesses will be vulnerable to more forward-thinking and innovative competitors.
Digital is the new imperative and organisations who haven’t already made the shift have no time to lose. They must take hold of the opportunity to innovate today to ensure that they survive tomorrow. Those who “Seize the Now” and embrace innovation are most likely to ride the wave of digital disruption. They may even have the opportunity to lead in their industries.
Tomorrow’s winners are those businesses that constantly look for new ways to fuel growth, that welcome the agility that cloud technologies bring, that embrace intelligent-enterprise capabilities, and strive to understand and deliver on customer expectations.
Fuel for growth
Digital is driving convergence across a number of industries, enabling new competitors to enter, and forcing companies to redefine how they compete. At the same time, there is added pressure from active investors in various industries who have a higher expectation for profitability. Speed is the new normal and companies are determined to survive this perpetual state of uncertainty by becoming lean and agile enough to focus on aggressive, sustainable growth. The task may be great and the stakes high, but the path forward is clear: to grow, companies must proactively identify activities that drive value, take out costs that are not contributing to business goals and reinvest those savings into growth.
Journey to cloud
Cloud is not the future. It’s already here, and more businesses are finding that the sooner they adopt cloud technology, the better positioned they will be to compete in an increasingly brisk, aggressive marketplace. Companies that want to achieve the type of agility they need to succeed in today’s business climate, migrate to cloud while embracing a robust ecosystem of cloud solutions. And they’re teaming with Accenture to make the journey a safe, affordable and profitable one.
The next level of operational excellence will emerge from the latest gains in software intelligence. Business and technology leaders must now view software intelligence not as a pilot or a once-off project, but as an across-the-board functionality – one that will drive new levels of evolution and discovery, propelling innovation throughout the enterprise. Artificial Intelligence (AI) is one of the many great examples.
Intelligent customer management lifecycle. New research commissioned by Accenture Interactive in partnership with Forrester Consulting finds that most brands are falling short and customer expectations are outpacing experiences. Only seven percent of brands are exceeding customer expectations and, even worse, 25 percent don’t meet customer expectations at all. Customers’ expectations are forged by their experiences of leading brands across industries. They are brand and quality conscious‚ they seek out the latest trends but watch their budget‚ and look out for personalised as well as unique shopping experience. However, many companies are still failing to deliver on these expectations.
Businesses who are not ready for innovation – driven by digital disruption – will lose customers who are prepared for this modernisation, and companies that meet their needs first will gain a competitive advantage difficult for rivals to overcome.
A business that recognises the power of now, does not hesitate to innovate, take new technology on board and stay ahead of the competition. It is always primed and ready to leap ahead, leaving opponents in its wake.
By Ntombi Mhangwani, Africa Director for Integrated Marketing & Communications at Accenture