Chinese Companies Remain Committed to Digital Transformation, but at a Slower Pace, According to Accenture Report
Accenture’s digital enterprise evolution roadmap helps firms anchor future digital transformations
SHANGHAI; Oct. 27, 2022 – New analysis from Accenture (NYSE: ACN) exhibits that Chinese firms have been making regular progress in digital transformation over the previous 5 years, with 17% of them, “Champions,” making decisive investments in adopting and scaling digital applied sciences to drive steady business transformation, in contrast to simply 7% in 2018. However, the general tempo of enterprise digital transformation in China in 2022 has eased amid a extra advanced business panorama.
“Over the past five years, Chinese companies have been successfully using digital technologies to raise competitiveness and create value in new ways,” mentioned Samantha Zhu, chairperson of Accenture Greater China. “In the current environment, as companies manage internal and external challenges including market volatility and supply chain disruptions, maintaining productivity while also upskilling their workforce is key, and it’s critical that they continue to invest in digital technologies to strengthen their core and drive continuous innovation.”
The China Digital Transformation Index analysis, now in its fifth 12 months, is a cross-industry framework that assesses firms throughout 9 industries on their digital adoption and maturity. In 2022, 574 firms had been surveyed. The analysis exhibits that there was a slight enhance of 1% level within the variety of firms qualifying as Champions since final 12 months, nevertheless the typical rating measuring digital proficiency declined for the primary time in 5 years from 54 to 52 between 2021 to 2022, out of a whole achievable rating of 100. Champions are additionally producing greater than 50% of their present revenues from business actions that had been carried out within the final three years.
All firms had been measured on a vary of metrics that look at how they’re utilizing digital applied sciences to drive innovation, improve operations and create new alternatives for progress. The analysis discovered that throughout the board, firms are prioritizing data-driven operations, but are much less centered on analysis & improvement (R&D), as indicated by a 28% drop in offering personalized services. Champions, specifically, are growing good services or products 8X greater than others score-wise and are driving R&D by means of collaborative digital platforms greater than 2X greater.
The analysis additionally discovered that whereas most business leaders surveyed mentioned they might enhance their digital investments within the following one to two years, they might achieve this extra pragmatically and prudently by paying consideration to the instant monetary returns of digital tasks.
To assist firms efficiently translate digital investments into monetary efficiency, Accenture launched a digital evolution roadmap that allows particular person firms to handle their transformation course of. As the primary such roadmap primarily based on the index, it defines levels from the attitude of goal, experiences, operations and know-how.
“Sustainable, purpose-led, high quality growth companies and the continued modernization of industries is the key to China’s future economic development. During our 35 years in China, we have worked closely with our clients to enable the various stages of their transformation and believe that this new roadmap will help them better track and manage the progress of their digital transformation efforts, unlock the value of digital, and achieve total enterprise reinvention,” added Ms. Zhu.
The report listed six key areas of motion that may assist Chinese firms strengthen their digital transformation:
- Leverage open innovation for long-term progress: By growing a full suite of innovation capabilities throughout their ecosystem of consumers, companions and suppliers, firms can reshape their aggressive benefit – from enhancing know-how, services to supporting industrial upgrades and sustainable improvement.
- Lead with human centricity: Shift the main focus from optimizing contact factors to providing worth by growing services that meet clients’ important wants and offering human-centric experiences with the assistance of digital applied sciences.
- Build platforms for a diversified workforce: Lead with the mixture of know-how adoption and expertise to enhance workforce resiliency and allow a well timed response to evolving business wants. Upskilling individuals within the digital surroundings will tremendously enhance operational effectivity and assist drive innovation.
- Enhance data-driven clever operations: Accelerate information aggregation to guarantee the standard and availability of the information on the cloud and pave the best way for seamless information circulate to help extra frequent and sophisticated decision-making processes.
- Develop resilience by means of transparency: Gain full visibility throughout manufacturing traces, clients and suppliers by deploying analytics and synthetic intelligence. Secure a resilient provide chain to predict potential dangers and act on them in real-time.
- Realize the total potential of tech: As new digital applied sciences proceed to emerge, firms want to leverage them together to additional speed up reinvention and obtain synergy in services innovation, administration and ecosystem improvement.
About the Accenture China Digital Transformation Index
The Accenture China Digital Transformation Index is a cross-industry framework that assesses a firm’s rotation progress primarily based on 52 key metrics of four-level indicators. The examine surveyed 574 Chinese firms in 9 industries, together with digital elements and supplies, high-tech digital manufacturing, automotive and engineering equipment, medical and pharmaceutical, fast-moving client items, logistics and aviation, conventional retail, chemical compounds/constructing materials and metallurgy.
About Accenture
Accenture is a world skilled companies firm with main capabilities in digital, cloud and safety. Combining unmatched expertise and specialised abilities throughout greater than 40 industries, we provide Strategy and Consulting, Technology and Operations companies and Accenture Song — all powered by the world’s largest community of Advanced Technology and Intelligent Operations facilities. Our 721,000 individuals ship on the promise of know-how and human ingenuity on daily basis, serving shoppers in additional than 120 nations. We embrace the ability of change to create worth and shared success for our shoppers, individuals, shareholders, companions and communities. Visit us at www.accenture.com.
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Contact:
Minjie Zha
Accenture
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