Cos that invested in tech, innovation saw major growth: Accenture study

Representative image

A majority of CEOs have strong confidence in the effectiveness of their current IT systems, but most are struggling to achieve levels of innovation that drive growth and revenue, according to a new study.

The global study by Accenture, released here at the World Economic Forum, showed that companies that invest in scaling technology and innovation across their organisation witnessed significant growth in revenue generation.

The survey, with data from more than 8,300 organisations across 20 countries and 885 CEOs, analysed the adoption of both mature and emerging technologies such as artificial intelligence (AI), cloud, blockchain, and extended reality.

It found that just 10 per cent of companies are making optimal technology investment and adoption decisions and realising the full value of those investments.

"It goes without doubt that the technology path chosen by companies today will determine their financial success in the future. However, majority of companies are failing to realise full value from their investments in technology.

"To lead in the post-digital economy, CEOs need to assess company's current position, reconsider sunk investments and design a new Future Systems strategy, said Anindya Basu, geographic unit and country senior managing director, Accenture in India.

The study found that 80 per cent of CEOs believe they have the right technologies in place to innovate, and 70 per cent claim to be very knowledgeable of their organisation's investments in innovation.

"Most companies are risking significant future revenue growth because of the gap between the potential and realised value of their technology investments," said Paul Daugherty, Accenture's chief technology and innovation officer.

Daugherty further added that "our report offers CEOs a new roadmap to help make strategic investments that narrow this innovation achievement gap and fuel higher growth.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel