Reinventing Enterprise Operations
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The document discusses the urgent need for organizations to undergo total enterprise reinvention to adapt to significant global changes driven by technology, consumer preferences, and climate concerns. It highlights the importance of optimizing operations by adopting six key capability measures and illustrates the varying levels of operational maturity across organizations. Additionally, it emphasizes that strategic partnerships and a strong digital core are critical for achieving sustainable growth and higher performance metrics.
Reinventing Enterprise Operations
- 1. From insights to action, the path to extraordinary value starts here. Reinventing EnterpriseOperations How optimizing operations can help to access a new performance frontier
- 2. We’re in a period of profound change. Technology, consumer preferences and climate change are driving massive structural shifts in how the world operates. These extraordinary times call for an unprecedented response and a reinvention of the enterprise. Reinventing Enterprise Operations Copyright © 2023 Accenture. All rights reserved. 02
- 3. Only 8% of organizations are moving to Total Enterprise Reinvention Total Enterprise Reinvention is a deliberate strategy that aims to set a new performance frontier for organizations and in most cases, the industries in which they operate (Figure 1). Optimizing operations is an essential step. Our latest research finds a handful of organizations are already rising to the challenge. Figure 1 Total Enterprise Reinvention Build digital core Industry- specific functions Copyright © 2023 Accenture. All rights reserved. 03 Reinventing Enterprise Operations
- 4. Copyright © 2023 Accenture. All rights reserved. Accelerate reinvention and enable growth By balancing six capability measures of operations maturity, organizations can accelerate the move to reinvention and enable growth for the whole enterprise. We found that some organizations are leading the way, while others have stalled in the early stages of their journey. of organizations —we call them operations reinventors—have a unique ability to reinvent enterprise operations and drive 360° value (up from 7% in 2021) 9% 18% of organizations remain in the lowest levels of maturity with limited incremental optimization 04 Reinventing Enterprise Operations
- 5. We surveyed 1,700 executives from 1,657 organizations across 15 industries and 12 countries. We plotted organizations against four stages of operational maturity, from least to most advanced—foundational, automated, insight-driven and intelligent1. We outlined how organizations could use six key capability measures of operations maturity to achieve better business outcomes. Copyright © 2023 Accenture. All rights reserved. 05 Figure 2 The operations maturity journey Data, analytics and automation A well-defined data strategy, overlayed on a centralized, secure and diverse data lake On-demand analytics, advanced modelling and data science Cross enterprise deployment of low-code/no-code automation for exponential efficiency Artificial intelligence AI deployed in nearly all processes, redefining performance benchmarks Continual reassessment of AI roadmap Ecosystem partnerships drive AI-led scenario planning for continuous strategic reinvention Leading practices Leading practices applied to all business processes All critical business operations moved to the cloud to enable agility and to optimize cost to serve Process mining to calibrate internal and external benchmarks to drive best-in-class performance Business-tech collaboration IT and business functions partner to drive strategic roadmap and execution IT enables the integration of ecosystem partners (startups, SaaS, AI platforms) to take IT-OT integration to the next level Talent strategies Machines augment human work in nearly all processes across functions Equipped with specialized talent (e.g., data scientists, AI practitioners, design thinkers, product managers) Ecosystem partnerships and external talent platforms to improve workforce capabilities and agility Stakeholder experiences Enterprise-wide stakeholder experience programs deployed at scale and enabled by advanced data analytics and user-led automation technologies AI-led continuous improvement of all experience programs across business units and geographies Intelligent (operations reinventors) Insight-driven Automated Foundational Reinventing Enterprise Operations Six capability measures Source: Accenture operations maturity survey, 2023 1. Identified in the 2021 report as stable, efficient, predictive and future-ready
- 6. Copyright © 2023 Accenture. All rights reserved. 06 Challenges Responses show: • Investing more in digital technologies, such as AI, does not guarantee higher operations maturity. • There’s a mismatch between digital investments and key business challenges. Top business challenge Digital capabilities being prioritized Increasing maturity Insight-driven organizations identified difficulty in using technology as a differentiator by modernizing legacy systems and re-platforming at scale as top business challenge Only 19% of organizations prioritized cloud-based platforms and infrastructure modernization as one of their top three digital investments vs. 42% of operations reinventors Foundational and automated organizations identified creating a well-defined operations and technology roadmap to execute the business strategy as top business challenge Only 2–3% of organizations have leveraged business-technology collaboration at scale to drive innovation, growth and strategic transformation initiatives vs. 90% of operations reinventors Source: Accenture operations maturity survey, 2023 Figure 3 Business challenges and how they are being met by digital capabilities Reinventing Enterprise Operations
- 7. What we found Responses show: • Operations maturity is far from being a sequential or linear journey. • How each organization reaches operations maturity milestones is unique. • Operations maturity depends on integrating all six capability measures of operations maturity. Copyright © 2023 Accenture. All rights reserved. 07 Apply the six capability measures in an integrated manner and the probability of moving up maturity levels increases more than 14 times. 14.2X Source: The Value Multiplier | Accenture Failure to apply talent strategies appropriately in combination with data, analytics and technology (such as automation and AI) and the top-line productivity premium drops from 11% to just 4%. -7% Source: The CHRO as a Growth Executive | Accenture Reinventing Enterprise Operations
- 8. Copyright © 2023 Accenture. All rights reserved. Operations reinventors realize higher value Organizations lagging in operations maturity today can quickly adopt the capabilities that can enable them to access a new performance frontier. Enablers to reinvent operations: Scale capabilities using a strong digital core by making the right investments in the six capability measures to generate 360° value— looking beyond financials to long- term, sustainable value for all stakeholders across the enterprise. Choose the right strategic partners who can enable wider access to specialized talent, industry expertise and leading automation platforms to help deliver continuous reinvention, customized to an organization’s needs. 08 better at driving customer engagement while ensuring customer data privacy 30% better at providing equal opportunities to women and minorities in the workforce 25% better at driving talent management programs that ensure better employee engagement 19% higher operating (EBIT) margins 1.4x greater total shareholder return (three-year) 2.2x better at agile product and process innovation 42% better at reducing energy consumption and greenhouse gas emissions 34% Reinventing Enterprise Operations
- 9. 01 02 03 04 05 Commit to data decisiveness across the enterprise Innovate processes for enhanced performance gains Employ an agile talent strategy Seek out 360° value as a North Star Humanize automation experiences at scale Five ways to reinvent operations 09 Copyright © 2023 Accenture. All rights reserved. Reinventing Enterprise Operations
- 10. Reinventing Enterprise Operations 10 Copyright © 2023 Accenture. All rights reserved. Organizations are re-examining major sustainability issues through a new lens that combines physical sciences and digital technologies. Seek out 360° value as a North Star 01 • Look at value creation holistically using data- driven insights. • Apply the six capability measures of operations maturity differently to recalibrate their operations. What operations reinventors do… Figure 4 “We implement processes and platforms to track greenhouse gas emissions, waste disposal and resource circularity across functions and locations relative to less mature counterparts.” 60% 30% Chief Finance Officer, US investment bank “Everything in this globally integrated economy has an impact on everything else. That's why, if somebody can build an accurate tool to help us measure all those environmental, social and corporate governance (ESG) intricacies and assess the impact our operations have across stakeholders, that would be very compelling.” Source: Accenture operations maturity survey, 2023 Operations reinventors Foundational
- 11. 02 Reinventing Enterprise Operations 11 Copyright © 2023 Accenture. All rights reserved. Even with investment in leading data architectures, organizations may fail to validate, index and organize data with precision. Commit to data decisiveness across the enterprise • Maintain a strategy that governs how data is created, collected, connected and enriched. • Establish a culture that encourages debate around which data to use, where to use it and how to use it. Figure 5 “We have a well-defined data strategy that is aligned with the business strategy and have a centralized, secure data lake that powers data- driven decision making across the enterprise.” 90% 3% Chief Operating Officer, multinational telecommunications company “You can't just bring in your own data from your own sources to make your own argument, and then spend weeks arguing why one data is different to another and whose version of the truth is right.” What operations reinventors do… Source: Accenture operations maturity survey, 2023 Operations reinventors Foundational
- 12. 03 Reinventing Enterprise Operations 12 Copyright © 2023 Accenture. All rights reserved. Business processes can become complex over time. Organizations add people and ad-hoc technology solutions, which only makes process mining more cumbersome. Innovate processes for enhanced performance gains • Use virtual representations to visualize the as-is process and discover inefficiencies. • Identify process gaps, user-specific views for daily operations management and low-code automation to give an outside-in view. Figure 6 “We adopt process mining as well as internal and external benchmarking across all business processes to drive “best-in-class” performance.” Operations reinventors 75% Foundational 5% What operations reinventors do… VP Supply Chain & Procurement, multinational integrated energy and petroleum company “Rather than innovate a process, people tend to automate the old process. The system doesn’t really add value then, because then it throws out the same data as always. Organizations need to be open enough to innovate processes and be able to implement them.” Source: Accenture operations maturity survey, 2023
- 13. 04 Reinventing Enterprise Operations 13 Copyright © 2023 Accenture. All rights reserved. Many organizations have mature automation across processes, such as invoicing, payroll, vendor management or reconciliations. But often, introducing automation in new areas can be met with resistance. Humanize automation experiences at scale • Explore new use cases to make automation user-centric and simplify the relationship with technology. • Lean on the full capabilities that generative AI and next-gen AI provides and measure experience-related outcomes. Figure 7 “We deploy AI and automation for customer, employee and partner experience management solutions at scale.” 71% 1% What operations reinventors do… Head of Marketing, India, multinational automobile manufacturer “Whenever we spend millions of dollars in getting an apparently super system in place, simplicity is lost. At every stakeholder level there is an input that must be given for the system to function properly. Training people to get this input in the desired manner is the biggest challenge that we've faced.” Source: Accenture operations maturity survey, 2023 Operations reinventors Foundational
- 14. 05 Reinventing Enterprise Operations 14 Copyright © 2023 Accenture. All rights reserved. The next wave of business transformation is a shared reality that converges the physical lives we’ve been leading with the digital ones we’ve been rapidly expanding. But different levels of capability within the talent pool can complicate the transition. Employ an agile talent strategy • Make the most of organizational diversity and enable people with a choice of technology tools. • Introduce a talent management and HR information system that can deliver hyper-personalized employee experiences. Figure 8 “We have an agile talent strategy where machines augment human work in nearly all processes, inspiring fluid collaboration and employee movement across functions.” 92% 3% What operations reinventors do… Head of Digital Marketing for Australia and New Zealand, multinational conglomerate “We have put systems in place that help us measure our thinking time, so we can do more strategic thinking rather than spending time on the nitty-gritty. We free up time to think about issues that really matter for our future—such as how can we make each of our brands more sustainable.” Operations reinventors Foundational Source: Accenture operations maturity survey, 2023
- 15. The reality remains that for organizations currently at lower operations maturity levels, the gap between them and the highest level of operations maturity is widening.Organizations seeking to transform quickly and reinvent themselves can employ strategic managed services to gain access to capabilities necessary for a modern digital core, process expertise and the deep pool of specialized talent to deliver outcomes at scale. As businesses race toward a future that is wildly different from the one they were designed to operate in, accelerating operations maturity can help to access a new performance frontier. As change accelerates, finding new value can’t wait accenture.com/reinventingoperations Reinventing Enterprise Operations Copyright © 2023 Accenture. All rights reserved. 15
- 16. Throughout April and May 2022, we surveyed 1,700 executives globally—72% C-level or equivalent —across 15 industries and 12 countries. We also conducted 27 in-depth interviews with executives across countries and industries. Appendix Research methodology Survey demographics Australia 63 India 81 Brazil 37 Italy 59 Canada 99 Japan 210 China 205 Spain 30 France 54 United Kingdom 100 Germany 170 United States 592 12 Countries Revenue (in US dollars) 118 366 436 238 254 190 98 $1–1.9B $2–2.9B $3–5.9B $6–9.9B $10–19.9B $20–49.9B $50B or more 7% 22% 26% 14% 15% 11% 6% Roles (to nearest equivalent) 28% VP level (or equivalent) 72% C-level (or equivalent) 15 Industries Banking Consumer Goods & Services Utilitie s Communications & Media Automotive Oil & Gas Retai l Industrial Equipment Chemicals Travel & Hospitality High Tech Life Sciences Software and Platforms Insurance Healthcare 122 I 7% 106 I 6% 128 I 8% 137 I 8% 56 I 3% 114 I 7% 114 I 7% 100 I 6% 110 I 6% 115 I 7% 115 I 7% 104 I 6% 104 I 6% 129 I 8% 146 I 9% 16 Copyright © 2023 Accenture. All rights reserved. Reinventing Enterprise Operations
- 17. 360° value delivers the financial business case and unique value a client may be seeking. Accenture partners with our clients to achieve greater progress on inclusion and diversity, reskilling and upskilling their people, achieving their sustainability goals and creating meaningful experiences for their customers, employees and communities. Glossary Digital core is fundamental to all other strategic needs of an enterprise. Amplifying the role of technology in reinvention means shifting from a technology landscape of static, standalone parts to interoperable pieces intentionally integrated and leveraging the cloud. The digital core consists of three layers: an infrastructure and security layer; a data and AI layer; an applications and platforms layer. Building a strong digital core is not a one-time project. It must be continuous to incorporate new technologies and business capabilities. Total Enterprise Reinvention is a deliberate strategy that aims to set a new performance frontier for companies and in most cases, the industries in which they operate. Centered around a strong digital core, it helps drive growth and optimize operations. It requires a strategy for continuous, dynamic reinvention. It becomes a unifying force, across the C-suite and every function and business area, because, by definition, all are involved and accountable for its success. It demands an outside-in perspective that connects what’s happening at the organization with what’s happening in the world. And it requires new skills and an increased depth of understanding of technology, change management, communication and how to work with partners to achieve results faster. 17 Copyright © 2023 Accenture. All rights reserved. Reinventing Enterprise Operations
- 18. Yusuf Tayob Group Chief Executive, Operations Yusuf Tayob is group chief executive of Operations. His team of more than 219,000 professionals works with our clients to solve their most complex business problems and to deliver sustainable growth and competitiveness. Operations delivers a comprehensive portfolio of enterprise business process services, including Research and Development (R&D), procurement, supply chain, finance, HR, marketing and sales, customer service and support, and trust and safety, as well as industry-specific business services in banking, insurance, capital markets, telecommunications, utilities, software and platforms, and health and life sciences. He is also a member of the Accenture Global Management Committee. yusuf.a.tayob@accenture.com Vipin Gairola Growth and Strategy Lead, Operations Vipin Gairola is growth and strategy lead in Operations and a member of the Accenture Global Leadership Council. He has more than 23 years of experience in helping global brands move to intelligent operations and digitally transform across multiple industry sectors. He is also responsible for building asset-led solutions for organizations using data, technology and AI. His work includes building future-ready workforces to fuel innovation, streamline delivery and improve experiences. v.gairola@accenture.com Authors 18 Copyright © 2023 Accenture. All rights reserved. Reinventing Enterprise Operations
- 19. About Accenture Accenture is a leading global professional services company that helps the world’s leading businesses, governments and other organizations build their digital core, optimize their operations, accelerate revenue growth and enhance citizen services—creating tangible value at speed and scale. We are a talent and innovation-led company with 738,000 people serving clients in more than 120 countries. Technology is at the core of change today, and we are one of the world’s leaders in helping drive that change, with strong ecosystem relationships. We combine our strength in technology with unmatched industry experience, functional expertise and global delivery capability. We are uniquely able to deliver tangible outcomes because of our broad range of services, solutions and assets across Strategy & Consulting, Technology, Operations, Industry X and Accenture Song. These capabilities, together with our culture of shared success and commitment to creating 360° value, enable us to help our clients succeed and build trusted, lasting relationships. We measure our success by the 360° value we create for our clients, each other, our shareholders, partners and communities. Visit us at www.accenture.com About Accenture Research Accenture Research shapes trends and creates data-driven insights about the most pressing issues global organizations face. Combining the power of innovative research techniques with a deep understanding of our clients’ industries, our team of 300 researchers and analysts spans 20 countries and publishes hundreds of reports, articles and points of view every year. Our thought-provoking trends research—supported by proprietary data and partnerships with leading organizations such as MIT and Harvard Business School—guides our innovations and allows us to transform theories and fresh ideas into real-world solutions for our clients. www.accenture.com/research This document refers to marks owned by third parties. All such third-party marks are the property of their respective owners. No sponsorship, endorsement or approval of this content by the owners of such marks is intended, expressed or implied. This content is provided for general information purposes and is not intended to be used in place of consultation with our professional advisors. Copyright © 2023 Accenture. All rights reserved. Accenture and its logo are registered trademarks of Accenture.