Firms see limited growth due to lack of innovation: Accenture

A majority of CEOs believe in the effectiveness of IT (information technology) systems, but companies are still struggling to achieve innovation that drives growth and revenue, according to a global study by Dublin-headquartered information technology services and consulting major Accenture.  

The study, titled Your Legacy or Your Legend? A CEO’s Guide to Getting the Most Out of New Technologies, surveyed 885 CEOs across 8,300 organisations in 20 countries. 

The research analysed the adoption of both mature and emerging technologies, and found that just 10% of companies are making optimal technology investment and adoption decisions, and realising the full value of those investments. 

“It is without doubt that the technology path chosen by companies today will determine their financial success in the future. However, a majority of companies are failing to realise (the) full value from their investments in technology. To lead in the post-digital economy, CEOs need to assess the company's current position, reconsider sunk investments and design a new future systems strategy,” Anindya Basu, geographic unit and country senior managing director, Accenture in India, said.

At the same time, the study also showed that  80% of CEOs believe they have the right technologies in place to innovate at scale, and 70% claim to be familiar with their organisation’s investments in innovation.

“Most companies are risking significant future revenue growth because of the gap between the potential and realised the value of their technology investments. Our report offers CEOs a new roadmap to help make strategic investments that narrow this innovation achievement gap and fuel higher growth,” Paul Daugherty, chief technology and innovation officer, Accenture, said.

Founded in 1989 by Clarence DeLany, Accenture is a global professional services company. It offers a wide range of services and solutions in strategy, consulting, digital, technology and operations. 

Earlier this month, Accenture had acquired Symantec’s cybersecurity services business from semiconductor company Broadcom. In a separate study earlier this month, Accenture showed that nearly 80% of C-level executives in India believe that companies will be out of business by 2025 if they fail to deploy AI (artificial intelligence) across their organisations.