{"id":64886,"date":"2024-07-24T03:12:54","date_gmt":"2024-07-23T19:12:54","guid":{"rendered":"http:\/\/www.upgrademag.com\/web\/?p=64886"},"modified":"2024-07-24T03:12:58","modified_gmt":"2024-07-23T19:12:58","slug":"investments-in-digital-core-technology-pave-way-for-businesses-to-thrive-amid-change-accenture","status":"publish","type":"post","link":"http:\/\/www.upgrademag.com\/web\/2024\/07\/24\/investments-in-digital-core-technology-pave-way-for-businesses-to-thrive-amid-change-accenture\/","title":{"rendered":"Investments in digital core technology pave way for businesses to thrive amid change \u2013 Accenture"},"content":{"rendered":"\n

New research from Accenture finds that organizations with an advanced digital core, investments in strategic innovation and a balanced approach to their technical debt achieved 60% higher revenue growth rate and 40% higher profits.<\/strong><\/p>\n\n\n\n

\u201cContinuous reinvention is now the default strategy because of the pace of change. Organizations are trying to figure out how technology impacts their business operations, especially amid new advancements like generative AI,” said Karthik Narain, group chief executive of Technology at Accenture. “Capturing value from disruptive technologies with an industry-leading digital core is more than a critical success factor, it\u2019s a survival factor. A strong digital core is essential to be ready for reinvention and rapidly seize every new opportunity.\u201d<\/p>\n\n\n\n

For the report, \u201cReinventing with a Digital Core,\u201d Accenture analyzed findings from 1,500 technology executives in 19 industries across 10 countries. Accenture\u2019s research revealed that an advanced digital core is key to helping enterprises build the technology capability needed to be ready for ongoing reinvention across the business. This requires using the right mix of cloud-first infrastructure and corresponding practices for agility and innovation, data and AI for differentiation, applications and platforms to accelerate growth, next-generation experiences and optimized operations\u2014with security at every level.<\/p>\n\n\n\n

Accenture\u2019s research also identified AI as a top contributor to technical debt\u2014the cost and effort required to keep IT systems up to date and capable of meeting business needs, accumulated through choices that prioritize speed over long-term maintainability. 41% of executives cite it as a top-three contributor, tied with applications\/platforms. Conversely, AI can also be used to manage and mitigate tech debt, along with new ways of designing systems. Traditionally, this mostly came from legacy code, outdated technologies, and a lack of documentation, but the rapid adoption of AI is adding new technical debt.<\/p>\n\n\n\n

Accenture’s study outlines three key tenets to achieve a digital core that\u2019s reinvention ready. When these three tenets are adopted concurrently, businesses can experience considerable rewards, attaining 60% higher revenue growth rates and 40% boost in profits.<\/p>\n\n\n\n

1. Build an advanced digital core, tailored to specific industry needs:<\/strong> Accenture\u2019s research shows that companies need to achieve an “industry-leading” level of digital core capability to empower continuous reinvention. While the journey may seem complex, Accenture\u2019s survey found that improving one capability\u2014like data\u2014can trigger automatic improvements in others. For this reason, companies should first assess where they are across their digital core capabilities, then prioritize \u201cno-regret\u201d moves based on areas of need. This will catalyze a virtuous cycle of continuous improvements across the digital core.<\/p>\n\n\n\n

2. Boost investments in strategic innovation, including re-engineering systems for machine (AI) operations:<\/em><\/strong> <\/em>Companies should monitor the rate at which they increase the proportion of their IT spend on innovation, as opposed to operations, as a key performance indicator. Accenture\u2019s research found that a year-over-year increase of at least 6% is necessary to be reinvention ready. Additional budget can be found when companies reduce inefficiencies with actions such as joining vendors for additional guidance, optimizing cloud costs and operationalizing automation. Companies can use the resulting discretionary funds to redesign business processes, launch new products and services and enter new markets. Pre-integrated solutions from ecosystem marketplaces provide a starting point. Ultimately, companies need a digital core designed for both humans and machines so both can interact seamlessly with each other and create value through intention\u2014not instruction\u2014driven workflows for business processes. The more immediate focus should be to re-engineer systems for machine (AI) operations.<\/p>\n\n\n\n

3. Balance technical debt with investments for the future, using programmatic and autonomous methods:<\/strong> Accenture\u2019s analysis shows that about 15% of IT budgets should be allocated to remediating technical debt, ensuring the maintenance of evergreen IT capabilities; this is the sweet spot\u2014both higher and lower allocations are not optimal\u2014that balances debt reduction with future investments. Maintaining evergreen IT requires a commitment to continuous updates, upgrades and management of software, hardware and services. Programmatic version control systems can be used to update configuration settings for infrastructure following changes to the code. This method brings more automation, flexibility and integration capabilities to reduce future technical debt.<\/p>\n\n\n\n

Explore the report in Accenture\u2019s thought leadership app, Foresight, and get a personalized feed of recent latest insights, data, case studies, blogs and more. Download the app at http:\/\/www.accenture.com\/foresight<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Accenture\u2019s research revealed that an advanced digital core is key to helping enterprises build the technology capability needed to be ready for ongoing reinvention across the business. <\/p>\n","protected":false},"author":6,"featured_media":58808,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[2838,96,2727,1656],"class_list":["post-64886","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-white-papers","tag-accenture","tag-technology","tag-technology-adaption","tag-technology-investment"],"_links":{"self":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/posts\/64886","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/comments?post=64886"}],"version-history":[{"count":0,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/posts\/64886\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/media\/58808"}],"wp:attachment":[{"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/media?parent=64886"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/categories?post=64886"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.upgrademag.com\/web\/wp-json\/wp\/v2\/tags?post=64886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}