Accenture report: Reinventing companies are best performers

A small minority of large companies are taking it upon themselves to lead a digital revolution, "setting a new performance frontier" for themselves and their industries in the process. 

That's according to new research carried out by Accenture, which surveyed more than 1,500 C-suite executives across 10 countries and concluded a handful of firms could now be classed as 'Reinventors'. 

Researchers have coined the phrase 'Total Enterprise Reinvention' to describe attempts from leadership teams to adopt a deliberate and continuous strategy of change at their businesses, powered by advancements in technology such as AI and cloud computing.

Eight per cent of those surveyed were classed as Reinventors, where ongoing transformation is centred on a strong digital core and new ways of working that help optimise operations and drive growth.

Accenture said the vast majority of companies (86%) were 'Transformers', focused on transforming individual functions rather than the whole business, and treating this process as a finite exercise. 

Julie Sweet, Chairman and CEO of Accenture, said: "Post-pandemic, these leaders are systematically changing the game and their industries.

"Over time, they are transforming every part of their company to achieve improved financials, breakthrough innovation and increased resilience, and more actively create value for all stakeholders."

Financial benefits greater for 'Reinventors', finds Accenture

Accenture surveyed a total of 1,516 executives from Australia, Canada, China, France, Germany, India, Italy, Japan, the UK and the US.

Respondents covered 19 different industries including Banking, Consumer Goods, Healthcare, Insurance and Utilities. 

The professional services firm said its research presented a number of key findings in favour of adopting a Reinvention programme, as opposed to Transformation. 

Companies classed as Reinventors reported generating a 10% higher incremental revenue growth, 13% higher cost-reduction improvements and 17% higher balance-sheet improvements when compared to Transformers.

They also delivered more financial value in the first six months. 

Moreover, two-thirds of Reinventors said the delivery of their strategy was happening significantly faster than previous transformation, a statement which less than a third of Transformers agreed with.

The remaining 6% of companies surveyed were 'Optimisers', for whom technology was not deemed to be a significant enabler of their transformations.

How to become a 'Reinventor', according to Accenture

Accenture said companies which adopted Total Enterprise Reinvention had six central attitudes, as follows:

• Reinvention is a strategy and no longer an execution lever
• Using the digital core becomes a primary source of competitive advantage 
• Reinvention goes beyond benchmarks, embracing the art of the possible
• Talent strategy and people impact are central to reinvention, not an afterthought
• Reinvention is without boundaries and breaks down organisational silos
• Reinvention is continuous and no longer a time-defined, one-off exercise