Accenture-Doubling-Down-Drive-Digital-Transformation-Stay-Ahead

10 Digital Double-Down: How Far Will Leaders Leap Ahead?Digital as a linchpin of strategyAccenture argues that executives must embeddigital in their organization’s strategy.Indeed, there may soon come apoint where the terms “digital” and“strategy” are all but synonymous,as digital becomes the way in whichcompetition is redefined and go-tomarketmodels are reshaped.The digital transformers are already movingrapidly in this direction. Their broader focuson growth investments, digital technologyand executive leadership reflects theirexpectations for change.Together, the actions of these forwardfacingorganizations and the acceleratedpace of digital market competition makedigital transformation a core assumption ofany future business strategy.Just as the first factory owners toadopt electrical power saw it simply asan improvement on their steam enginesand water wheels, so many contemporarybusiness leaders have viewed digital asjust another iteration of IT.And just as those Victorian-era manufacturerswould soon come to see how many morepossibilities would come with transmissionof electricity—allowing them to rethink wherethey could locate demand for power—so today’s executives will one day see the fullscope of what digital technology can bring.Only the far-sighted few are in that numbertoday. The truly visionary among them have afirm grasp on the “force multiplier” effect ofdigital, and they are working hard to ensurethat their organizations are squarely on theroad to digital transformation. Many others—the fast followers—have a strong sense ofthe possibilities, and are working diligentlyto experiment, and in the process, touncover what they know they don’t know. 10This report is directed to all businessleaders—particularly to those in companieswhose sheer numbers may create a falsesense of security by mitigating the pressurefor digital transformation. (See Appendix,Figure 6.) Our research clearly signals thatmany companies in many industries arethinking that they have time to respond whileothers are winding up the pace of change.Companies caught in the middle, betweentransformation and improvement, seemunclear what to do or how to do it.Some may be paralyzed by indecision,or drowning in data. Although they areno strangers to the abundant stories aboutonce-mighty companies that have fallenfrom grace—felled by disintermediation orby nimbler upstarts that ran far and fastwith new technology—too many businessleaders are still locked into legacy thinkingabout digital and its consequences.To help jump-start the thinking of thoseexecutives, we offer a short set of urgentdiscussion questions. (Next page: Questionsto test your digital savvy.) Whether thequestions are asked in a formal, facilitatedforum or not, they must be addressedseriously. The answers must become theseedbed for digital projects and overarchingdigital initiatives. Ultimately, every company’sstrategy will need to incorporate someform of digital transformation, even iftransformation is not its explicit strategic goal.Digital change is coming fast, and it will notbe stopped. It will come from the outsidein—in the form of customer choices, newproducts, services and experiences. It willbe entirely agnostic in its impact, affectingevery company and every industry. 10How quickly will your leadershipteam be ready to run with it?Digital transformers in their own wordsWe are early in our ambitious plan to transform Argos into a digital retailleader. We are seeking to reposition our stores to support a digital future, inwhich digital channels are the primary interface for customers, but storescontinue to be critically important as a national network for product collectionand a local presence for local colleagues to provide customer service.”John Walden, Chief Executive Officer, Home Retail Group PLC 1110 M. McDonald and R. McManus, “Growth Strategies for a Digital World.” March 2014. http://www.accenture.com/us-en/Pages/insight-growth-strategies-digital-world.aspx11 Home Retail Group, News and media Argos, Argos Press Release, “Argos opens doors on first digital concept store”, November 26, 2013.https://www.homeretailgroup.com/news-and-media/news.aspx?smlbus=1519&article=5225