Accenture Total Enterprise Reinvention

Total Enterprise
Reinvention
The strategy that leads to a new
performance frontier
WEF 2023
Authors
Julie Sweet Jack Azagury Bhaskar Ghosh

Chair and Chief Executive Group Chief Executive – Chief Strategy Officer
Officer of Accenture Strategy & Consulting
Trevor Gruzin Oliver Wright Mike Moore

Growth Markets Senior Managing Director – Senior Principal,
Growth & Strategy Lead Consumer Goods & Services, Accenture Research
Global Lead
Total Enterprise Reinvention | The strategy that leads to a new performance frontier 2
Table of contents
4 Executive summary 49 Total Enterprise

Reinvention outcomes
13 The new imperative 55 Charting a path to

become a Reinventor
25 Diving deeper into the six characteristics 56 About the research

of Total Enterprise Reinvention
Executive
summary
Are you a Reinventor,
The pandemic and unprecedented Their goal: to reinvent over time every
challenges of the past three years have part of their companies, centered
a Transformer or an
tested CEOs and their leadership teams. around a digital core and new ways of
Post-pandemic, most leadership teams working that establish a culture and
of large companies are rising to the capability for continuous reinvention. In
Optimizer? occasion, transforming more than ever
before, faster than ever before—which
doing so, they’ll set a new performance
frontier for their companies—improved
we call “compressed transformation”— financials, the ability to achieve perpetual
and accepting that all strategies lead breakthrough innovation, increased
Will you define the to more technology. We call these

companies the “Transformers.” This is
resilience in the face of any disruption,
and an enhanced ability to create value
top quartile for your

vital work, different than pre-pandemic, for all stakeholders. While this reinvention
and should feel good. Don’t stop. Yet strategy begins with building a strong
industry or simply be
don’t be satisfied. digital core, it is much more—technology
plus. Defining what the top quartile will
in it?
There’s a new imperative being driven be in your industry.
by a handful of companies that are
quietly and systematically changing We predict in about three years, the full
the game and their industries. These impact of the courageous companies
are the “Reinventors," building on that adopt Total Enterprise Reinvention
their experience as Transformers to will be felt. This report is about what
embrace what we call “Total Enterprise is coming, not what is already here
Reinvention.” at scale. It lays out the opportunity
to be the leader in this fast-emerging
business environment. Read on to
understand what you can do to become
a Reinventor.
The following report is based on
our research and on Accenture’s
depth of understanding working
globally with clients and partners
to deliver outsized results.
Our 738,000 people serve more than In 2022, we predicted that to thrive over the
9,000 clients globally across more than 40 next decade, companies will need to harness
industries—including 89 of the Fortune 100 five key forces of change:
and 60% of the the world's 2,000 largest
companies, as well as major governments. 1. Embracing and executing a Total
We are the leading partner of most of the Enterprise Reinvention strategy
world’s largest technology companies. Our
people are privileged to help the world’s 2. Being the winner in accessing, creating
leading companies and governments and unlocking talent
transform today, while being in a position to
anticipate what they’ll need tomorrow. 3. Leading in sustainability in how they
operate and what they sell
4. Capturing the power of the metaverse
5. Continuously leveraging the on-going

technology revolution.
These key forces of change are overlapping we call the next digital frontier. Even now, Leaders and Leapfroggers shared three
and interdependent. For example, you the merging of information and operational characteristics—moving to the cloud
cannot fully harness forces 3, 4 and 5 technology is still very early days, with new and embracing new technologies like AI,
without succeeding in the first two. And yet technologies like digital twins emerging at flipping their IT budgets to innovation over
they also are distinctive and called out as scale only in the last couple of years. maintenance and focusing on creating
such because underlying each are profound broader value; touching twice as many
shifts across the business, even the past In 2019, our landmark research on processes and focusing on areas like
three years. From technology to the enterprise technology strategies and their training.
needs of employees, consumers, business impact on performance showed Leaders in
customers and partners, businesses are tech adoption and innovation were growing Helping companies execute compressed
being called on to dramatically change the revenues at 2x the speed of Laggards.1 transformations has driven our business
ways they work, engage and transact, as Then, of course, the pandemic changed since the pandemic, with the number
well as leadership mindsets and skills from everything, jolting the world online and of companies becoming Transformers
the C-suite to the newest hires. exposing which companies were Leaders growing significantly in each of the last
or Laggards. Just 12 months after the three years. Companies that have done
The basis for these five key forces begins pandemic, updated research showed the US$100 million in bookings in a single
with technology. We have been at the gap between Leaders and Laggards had quarter, which we use as a proxy for
center of a profound decade of technology grown to 5x revenue growth from 2x, with compressed transformations, have jumped
change. In 2013, our Technology Vision Leaders doubling down on investments from 53 in fiscal year 2020 to 72 in 20213 to
report had foreseen that “every business faster than ever before.2 100 in 2022.4
is a digital business.” Pre-pandemic, many
companies remained skeptical of the true In studying this evolution, we identified
impact of technology on their strategy and an entirely new group, one we named the
competitive advantage. And in part, this “Leapfroggers,” those who compressed
was because while technology change their digital transformations to convert
had been exponential, key parts of the the pandemic’s challenges into new
business were still relatively untouched by opportunities. In doing so, they leapfrogged
technology advancements—for example, their peers and are catching up to the
manufacturing and the supply chain, which Leaders.
The new The Macro Post-Pandemic
Transformation
imperative
A macro environment with an
unprecedented level of volatility has
created both serious pressure and the Leadership teams across industries should
need to find new opportunities. Our Global feel proud. Not only did most large companies
Our experience with the world’s leading Disruption Index—a composite measure navigate the shock of the pandemic well; they
companies and governments and our latest that covers economic, social, geopolitical, also rapidly adapted, changing their approach to
research demonstrate the time to embrace Total climate, consumer and technology technology and transformation. The boldness of
Enterprise Reinvention is now. And in doing so, disruption—estimates macroeconomic Reinventors is rooted in the successful experience
we’ve shifted from measuring digital leadership volatility has increased 200% since 2017 as over the past three years of companies that
and innovation—Leaders, Leapfroggers compared to only 4% from 2011 to 2016. made significant strides in replatforming to the
and Laggards—to evaluating companies as cloud, taking on technology-enabled compressed
Reinventors, Transformers and Optimizers. transformations, and either transforming multiple
parts of their organization at once instead of
The convergence of three factors has inspired Technology sequentially, or doing large-scale transformations
a small but growing number of companies to faster than ever before—and often both.
become Reinventors. Advancements now make technology
a critical enabler of reinvention across
virtually every aspect of the enterprise, with The more companies have transformed, the
an expectation that these advancements more they’ve recognized the opportunities
will continue. In other words, all strategies to connect transformations and work across
lead to more technology, and all strategies functions to fundamentally change every part
require an understanding that technology of their business. It is a when, not an if. And
will continue to change what is possible. they’ve also seen the challenges. Research we
conducted in 2022 found that seven out of 10
enterprise transformation efforts fail to fully
meet business leaders’ expectations.5
The time is now
Our research shows only 8% of companies Six percent of companies are what we
are moving to adopt a strategy of call Optimizers, focused on functional
Total Enterprise Reinvention. Most transformations limited in scope and
companies—86%—are Transformers. ambition. Technology is not a significant
They focus on transforming parts of their enabler of their transformations.
business rather than the whole and tend
to treat transformation as a finite program
rather than a continuous process.
Many, though, are beginning to recognize

the importance of establishing a new
performance frontier—just under half of
Transformers (43%). In fact, this group
says they aspire to set a new level of
performance in their industry through
their transformation programs. These
“Aspirational Transformers” are best primed
to become Reinventors.
Defining Total 1. 4.
Enterprise Reinvention is the strategy.
It is no longer an execution lever.
Talent strategy and people impact
are central to reinvention, not an
Reinvention afterthought. These companies consider

change management a core competency.
Total Enterprise Reinvention is a deliberate

strategy that aims to set a new performance
frontier for companies and in most cases, the
industries in which they operate. Centered
around a strong digital core, it helps drive
2. 5.
The digital core becomes a primary Reinvention is boundaryless and
growth and optimize operations.
source of competitive advantage. It breaks down organizational silos. It
leverages the power of cloud, data and AI tackles capabilities end-to-end.
Total Enterprise Reinvention isn’t a to do; through an interoperable set of systems
it’s a to be. It requires continuous, dynamic across the enterprise that allows for rapid
reinvention. It becomes a unifying force, across development of new capabilities.
the C-suite and every function and business
area, because, by definition, all are involved
and accountable for its success. It demands
an outside-in perspective that connects
what’s happening at the company with what’s
happening in the world. And it requires new
skills and an increased depth of understanding
3. 6.
Reinvention goes beyond benchmarks, Reinvention is continuous. It is no longer
of technology, change management,
embracing the art of the possible. a time-defined one-off, but a capability
communication and how to leverage partners Technology and new ways of working continuously tapped by the organization.
to achieve results faster. create a new performance frontier.
Setting a new
Financial impact: Reinventors report 360° value: Reinventors more actively
generating 10% higher incremental generate what we call “360° value,” looking
performance
revenue growth, 13% higher cost- beyond financials to long-term, sustainable
reduction improvements and 17% higher value for all stakeholders. Seventy-
frontier
balance-sheet improvements compared six percent of companies that pursue
with Transformers. Those numbers are Total Enterprise Reinvention say setting
significantly higher when compared non-financial targets is very important,
with Optimizers at 22%, 21% and 20% compared with 32% for Transformers
By embracing Total Enterprise respectively. and 10% for Optimizers. Compared with
Reinvention, companies will industry peers, Reinventors perform 32%
establish a new performance Technology speed to results: better on sustainability and 31% better on
frontier, outperforming peers in Reinventors report delivering 1.3x more experience—for customers, suppliers and
financial, technology and 360º value financial value in the first six months employees. They also score 11% higher on
dimensions. than Transformers (1.6x more than innovation, 11% higher on “net better off”
Optimizers)—a reflection of the speed outcomes for talent, and 7% higher on
Our research shows Total Enterprise at which such companies execute inclusion and diversity.
Reinvention drives clear and significant and deliver increased value. Indeed,
outcomes for Reinventors. 66% of Reinventors say the delivery of
their reinvention strategy is happening
significantly faster relative to past
transformations. By comparison,
only 27% of Transformers and 10% of
Optimizers say the same.
Charting a path Ambition and strategy Digital Core
to become a • Where are you today: are you a Reinventor,

Transformer or Optimizer?
• How would you assess your digital core? What is
its level of maturity and what are its known gaps?
Reinventor • Have you defined the performance frontier for

your company, and how does it measure against
• Is the ability to use technology investments
to achieve sustainability and other 360° value
the best in your industry and the best in other objectives and any negative impacts formally
relevant industries? Are you matching the leaders included in technology investment decisions?
We believe all companies or setting the new benchmark?
will need to adopt Total • Is your entire C-suite held accountable, as a
primary metric, for the success of your current
Enterprise Reinvention transformation programs, or is the business or
as a strategy in the function lead primarily accountable?
coming years. Here
are four categories of
questions to help shape
a path forward. Talent Transformation initiatives currently
• Do leaders have sufficient technology acumen underway
to understand the art of the possible and what it • Are the leaders of your current transformational
can do to drive reinvention? initiatives able to articulate the changes that will
• Do you have existing change management occur across the enterprise, and are they using
capabilities to support your continuous metrics that take a cross-functional view?
transformation journey, or are you standing • Can your leaders articulate the partnership strategy
these up for each transformation project? for each transformation program, how that strategy
• Do you use data to measure your transformation, is enabling them to deliver outcomes faster and
and is the same form of measurement used for increase certainty of outcomes as well as how the
all programs? partner fits into your talent strategy?
The new
imperative
The Macro—
Disruption, disruption,
disruption
Today’s executives are navigating a complex and dynamic
business environment few have ever seen.
Our Global Disruption Index—a composite measure that

covers economic, social, geopolitical, climate, consumer
and technology disruption—shows that levels of disruption
increased by 200% from 2017 to 2022 (see Figure 1 and
“About the research” for further details). In comparison, the
Index rose by only 4% from 2011 to 2016.
As such, companies now face a permanent state of change

at a pace never seen before. Technology, consumer
preferences and climate change in particular are driving
massive structural shifts in how the world operates.
Figure 1: A convergence of forces is increasing disruption
Accenture Global Disruption Index Overall measure of disruption based on average of six sub-components,
each of which is based on indexed scores of a set of indicators.
Overall level of disruption Economic Social Geopolitical Climate Consumer Technological
+200%
89
100
30
2017 2022 2017 2022 2017 2022 2017 2022 2017 2022 2017 2022 2017 2022
See "About the research" for a more detailed description of the method.
Consumer mindsets have evolved Companies agree on the need to
Faced with the pressure of all these external transform more than ever
forces at once, consumers are becoming These extraordinary times call for an
increasingly unpredictable in their choices. unprecedented response and a reinvention
Trying to balance their needs with these of the enterprise. That’s the view of the
pressures, they are demanding more, 1,516 executives we surveyed, who say that
better and faster from the companies they a range of external forces—but particularly
interact with. In a separate survey of 1,700 the pace of technology innovation, shifting
global C-suite executives (conducted consumer preferences and climate
in two waves) we found more than 95% change—has accelerated their reinvention
of both B2B and B2C executives believe strategies. In fact, even in the face of
their customers are changing faster than a recession in 2023, 75% of executives
their businesses. That’s up from 88% of say that the pace of their organizations'
executives just a few months prior.6 reinvention would accelerate (see Figure 2).
Addressing climate change will unlock

new opportunities
Soon to be published research shows more
than US$3 trillion could be unlocked by
2030 by transitioning to decarbonized and
sustainable products and services in eight
markets alone: mobility, home energy, food,
fashion, air travel, shipping, construction
and communication. In fact, this value
is already being unlocked. Sustainable
products and practices are rapidly gaining
market share and opening new industry-
convergent ecosystems, necessary for
meeting human needs in a world where
the trust cost of carbon is increasingly
accounted for.
Figure 2:
Companies are accelerating their reinvention in response to external forces
"To what extent have the following external forces % of respondents saying the force "If there is a recession in your main markets
accelerated your organization’s has accelerated their reinvention in 2023, will your organization accelerate its
reinvention strategy?” strategy (n=1,516) reinvention strategy?”
% of respondents saying they will accelerate their

reinvention strategy
87%
79% 75% 73%
67% 64%
46% 42% 39% 39%
38% 36% 34%
Pace of Shifting Climate High Inflationary Geopolitical Supply Talent Economic Global Europe North Asia Pacific
technology consumer change / energy pressures tension chain shortages slowdown (n=1,516) (n=402) America (n=317)
innovation preferences regulation prices disruption (n=797)
Source: Accenture Total Enterprise Reinvention CxO Survey fielded in November 2022. Asia Pacific includes respondents from Australia, China, India and Japan.
“You cannot overtake 15 cars in sunny
weather… but you can when it’s raining.”
—Ayrton Senna
It may seem counterintuitive to focus on on new partnerships and embraced digital

the long-term promise of reinvention amid technology. The company remained
adverse economic conditions today, yet profitable through the crisis, grew its
increased competitive volatility during revenues and enhanced its capital position,
downturns creates greater opportunities all while investing in key capabilities. The
for companies effective at reinvention.7 firm’s stock price rose more than 700% in
Perhaps that’s why Doug Leone, a former the decade that followed.9
managing partner of Sequoia Capital,
quoted the Formula 1 racing legend Ayrton This level of disruption demands all
Senna at a May 2022 meeting with start-up businesses transform. In the next decade,
founders about markets turning, saying: every business will get to Total Enterprise
“You cannot overtake 15 cars in sunny Reinvention to succeed, or they won’t
weather… but you can when it’s raining.”8 succeed.
Take American Express. The payments

company faced the threats of rising
default rates and falling consumer demand
during the 2008 financial crisis. After
cutting costs and divesting non-core
businesses, American Express refocused
Technology—The digital core, the potential of
reinvention and breakthrough innovation
A strong digital core is fundamental to all other strategic needs of an enterprise. Amplifying the role of
technology in reinvention means shifting from a technology landscape of static, standalone parts to interoperable
pieces intentionally integrated and leveraging the cloud. The digital core consists of three layers:
1. 3.
An infrastructure and security layer: An applications and platforms layer: Building a digital core is not a one-time
A modern, cloud-based IT foundation that is Where new experiences and ways of project. It must be continuous to incorporate
automated, agile and secure by design. operating come alive—through modernized new technologies and business capabilities.
and new, custom applications and Reinventors invest in their digital core ahead
platforms or replatforming on SaaS. of their peers, increasing their capabilities
in foundational technologies, as well as
2. integrating emerging technologies.
A data and AI layer: An important feature of a modern digital
Where enterprise data becomes accessible core is "Interoperability” across all of For example, while 61% of Reinventors plan to
at scale, with domain-specific, AI-enabled these layers, connecting technologies, increase their investments in cloud services
applications and platforms generating data, and applications across silos and over the next year, 49% of Transformers
insights for decision-making. This connects enabling Reinvention. Companies with high and 45% of Optimizers plan to do so. And
and elevates trapped data, helping interoperability grew revenue 6x faster than while 65% of Reinventors are watching
enterprises to ask new questions and find their peers with low interoperability and and screening next-gen computation
new answers that drive decision-making unlocked an additional five percentage points technologies, 52% of Transformers and 48%
and the development of new products. in annual revenue growth.10 of Optimizers are doing so (see Figure 3).
Figure 3: Reinventors continuously invest in their digital core
“Do you plan to increase your investment % of “Which of the following emerging % of
in the following technologies over the respondents technologies are you currently respondents
next year?” monitoring and screening?”
59% 65%
AI and
automation
51% Next-gen
computation
52%
48% 48%
61% 64%
Cloud Next-gen
services 49% intelligence 51%
45% 47%
42% 48%
Network/ Metaverse
connectivity 37% and Web 3.0 36%
31% 31%
Total Enterprise Reinventors Transformers Optimizers Total Enterprise Reinventors Transformers Optimizers
Source: Accenture Total Enterprise Reinvention CxO Survey fielded in November 2022. Sample size: Total, 1,516; Total Enterprise Reinventors, 119; Transformers, 1,303; Optimizers, 94.
The potential for reinvention is immense potential, as reflected by the 71% increase in
We estimate, on average, that 76% of a mentions of cloud, AI and other emerging
US worker’s tasks could be reinvented technologies in earnings calls over the past
by combining new technologies and five years.12
new ways of working, by automating
repetitive activities while augmenting high- The new performance frontier can
value activities (see Figure 4 and “About include breakthrough innovation
the research” for further details). These With a digital core in place, every company
actions will, in turn, enhance productivity can aspire to create breakthrough
and allow people to focus more on their innovations in their industry and adjacent
unique capabilities. Indeed, such progress markets—a territory that was formerly the
could hypothetically allow the average US domain of digital-native companies.
worker to shift to a four-day work week and
produce more than they do in a five-day What is breakthrough innovation?
work week. Breakthrough innovation sits at the
intersection of understanding the potential
Combining the power of technology and of next generation technologies and
human ingenuity will enable enterprises applying them in novel ways to shape and
to reinvent how they go to market, how capture white space opportunities and
they operate, how they partner and how address acute needs in their business or
they create value, thereby unlocking a new industry.
performance frontier. For example, our
research shows that companies that plan
to adopt next-generation AI and advanced
computational methods—while tapping
ecosystem partners and networks—are
2.6x more likely to increase revenue by
10% or more than companies not pushing
toward the leading edge in these areas.11
Organizations are acutely aware of this
Figure 4:
Most of the tasks of an average US worker could be reinvented
Share of US worker’s tasks that could be reinvented by technology Share of worked hours,
Augment
augmentation or automation, by industry 2021
Automate
US average 33% 43% 24%
No impact
Banking 43% 36% 20% Source: Accenture Research analysis based on BLS and
Software & Platforms 43% 33% 24% O*Net. O*Net tasks were classified into the four categories.
This classification was performed based on a list of 2,000
Capital Markets 41% 36% 23% detailed examples for 300+ tasks. US average corresponds
to the weighted average based on occupation shares
Insurance 40% 37% 23% across industries.
Health 38% 32% 30% Increasing Due to rounding, not all figures add up to 100%.
potential for
Communications & Media 37% 39% 24% augmentation
based on the
Public Service 34% 38% 28% combination
of new
Aerospace & Defense 34% 45% 21% technologies
and new ways
Utilities 33% 48% 19% of working
Industrial 31% 50% 19%

Life Sciences 30% 51% 18%
High Tech 29% 50% 20%
Chemicals 29% 54% 18%
Energy 29% 52% 20%
Travel 28% 47% 25%
Natural Resources 28% 56% 16%
Retail 28% 49% 24%
Consumer Goods 27% 55% 18%
Automotive 26% 53% 21%
Post-Pandemic Transformation—
The successes and the
challenges
Many executives are already working to While many companies are transforming
reinvent processes in their enterprise with multiple parts of their enterprise, in our
new technologies and new ways of working. experience, they are failing to realize the
Of the 11 functional areas we assessed, true business value of these efforts because
executives said their organizations had of siloed approaches. Other common
already reinvented, on average, processes challenges are cost, lack of efficiency
in six functions. The most common function across programs, failure to understand
for reinvention was customer service (63% and address interdependencies, insufficient
of respondents) and the least common were technology acumen and failed
Research & Development (R&D) and Human change management. A Total Enterprise
Resources (HR) (48% of respondents). Reinvention strategy addresses these
Within two years, executives expect to have challenges by taking an integrated, holistic
reinvented processes in nine functions approach based on technology with talent
within their enterprise (see Figure 5). at the center.
Figure 5: Most processes in functional areas are being reinvented
“In which of the following functions are you % of respondents, Cumulative number of areas being
fundamentally reinventing processes by applying new n=1,516 reinvented by an organization, on
technologies and new ways of working?” average, out of a possible 11
Past 2 years Next 2 years
Percentage point
difference 9
Customer Service +27
+3
Finance +30
+30
6
Strategy and M&A
Information Technology +32

Marketing +31
Core Operations +33
Sales +28
Manufacturing +30
Research & Development +36
Supply Chain +29
Human Resources +35
40 45 50 55 60 65 70 75 80 85 90 95 100 Past two years Next two years
Source: Accenture Total Enterprise Reinvention CxO Survey fielded in November 2022.
Diving deeper
into the six
characteristics
of Total Enterprise
Reinvention
We briefly listed the key qualities companies
must embrace to succeed at reinvention.
In this section, we’ll dive deeper.
1.
Reinvention is
the strategy
Think of all the functions of your company Total Enterprise Reinvention is a Figure 6: Total Enterprise Reinvention
on a connected wheel (see Figure 6). deliberate strategy that aims to set a new
Accept the premise that today, in every performance frontier for companies and
function, technology plus new ways of in most cases, the industries in which they
working, could create new value, and that operate. Centered around a strong digital
the advancements in technology are likely core, it helps drive growth and optimize
Service
ce
to make that value constantly evolving. operations. It starts with the premise that
Finan
every part of every business needs to be
ce n
so ma
Ma
s
Think about the way you decide which reinvented and that benchmarks today do not
Re Hu
rke
ur
tin
technology to invest in, and which part of reflect what is possible if, as a company, you
g
Sa
gal
le Le
the company to transform. Are the business have a tech-enabled mindset. It recognizes s
cases co-created across the C-suite in that technology advancements will mean that Culture and P
, ur
recognition that no function exists alone? this is a continuous and dynamic need. The p le p
O pt i
n
Sec matio
o
lerate Growth
os
Are the technology investments tested focus shifts from, one and done programs, or Bus
AI Infor ology
Pe
ines ur
e
s Un n
its Tech
cross-functionally or primarily best-in- “is this too much change” to a company that
mize Operations
ity
class for the functional leader who is is proudly “all about change.” One that has
Build
leading the analysis? What is the depth of honed the business and technology acumen Digital Core Sourcing
New Business Procurem &
ou d
D ata
understanding of the leaders as to what to set the right priorities, built the culture and Model ent
Cl
is possible today, and what is coming? Is resilience for change, and the laser focus on
Acce
your C-suite able to articulate for every the future and external developments. P l a t fo r m s Su
pply
rs & s Ch
technology investment, what will change in e rge ition
M uis ain
q
how you work, or engage, or go to market? This cultural point is critical—Accenture has Ac
En nu
M
gi fac
When someone talks about the need for lived it. Accenture’s capabilities and culture
a
ne tu
gy te
er ri
te ra
cultural change or new skills—how precise have dramatically changed over the last
Industry-specific
in ng
ra o
Sus
St orp
g
ent
&
&
is it, and do you understand the plan to decade—at one point, we were “fast followers”
ta
Dev earch
pm
inab
Functions
achieve? And when you set your ambition, and now we are “innovation led.” The part of
elo
ility
Res
how are benchmarks used—are they the our culture that has existed for decades is that
ambition to achieve, or the standard to “we are all about change” which has allowed
beat? In other words, is your ambition to us to set bold ambitions and to reinvent
set a new performance frontier for your ourselves—a process that is ongoing. Source: Accenture.
company and/or your industry?
Because we know that many companies their ability to digitally connect directly with
are already changing a lot—Total Enterprise end consumers—only to find that the failure
Reinvention is not about the scope and to have a modern, cloud-based ERP and
speed per se. It is about establishing infrastructure prevented them from rapidly
that a core strategy of the company being able to make changes in payments,
is the ability to continuously reinvent connect supply chains and fulfill purchases
and systematically move across the in areas like social commerce. As a result,
enterprise to set a new performance we have seen many consumer goods
frontier. It is not a reaction to the macro, companies take on accelerated moves of
but a recognition of the opportunity their ERP to the cloud, crossing multiple
that has become clear in the last three functions.
years of the true power of tech-enabled
transformation. Adopting Total Enterprise Reinvention
as a core strategy is a natural next
Compressed transformations were step for companies which today are
triggered at the beginning of the pandemic, Transformers, and is the blueprint for the
as companies experienced rapid changes companies which are Optimizers and now
in their operating environment which want to leapfrog to Reinventor.
exposed the gaps in their digital core.
For example, because of the move online
at the onslaught of the pandemic, many
consumer goods companies accelerated
In following the six key characteristics companies have moved to centralized, Every industry has specific challenges. Indeed, it requires new muscles from
of Reinventors, companies will also clear and measurable change management Let’s take healthcare, in which significant their leadership, and often, the industry
address many of the lessons learned in capabilities—often using multiple investment by many leaders has gone into benchmarks still become the de facto
these past three years of compressed techniques depending on their partner. creating an intelligent front door to care goals and measurement of performance.
transformations. A Total Enterprise Reinvention strategy flips that creates a personalized, consumer- Reinvention, by definition, cannot be done
change management to a core capability like experience for patients. At the same only with internal thought leadership.
The ambition and decision to accelerate that is connected and has consistent time, depending on where they are in Setting a new performance frontier also
transformation is what most CEOs talked approaches, like measurement tools, the healthcare value chain, those same requires, at a minimum, looking at the rest
about early in the pandemic as being most regardless of function and partner. companies are looking to digitize to find of the industry. We spend a lot of time
proud of. The capabilities to efficiently efficiencies in an industry that has lagged looking across industries to inform the
transform at scale—from how you make Another example is that many companies other industries in digital transformation solutions that we bring to our clients. We
technology decisions, to the way to continue to struggle with thinking about and is now facing significant shortages of believe that if companies execute on the
approach change management, to the technology platforms across the company, clinical talent that impact access to care. six characteristics of Reinvention, the use
depth of technology understanding leaders providing more cost efficiency, more Often, we see initiatives to personalize of industry and cross-industry learnings
need, to the persistent silos that are often resilience and faster innovation as more experience and create efficiencies and will finally become part of how leaders do
reinforced by metrics and compensation parts of the company can access the capacity scoped too narrowly, missing the business.
regardless of a strategy of “one”—have capabilities. And so, you will see companies opportunity to connect to drive more value.
emerged as gaps that have challenged that have rapidly moved to the cloud
the full realization of the potential of struggling with cost, the ability to use Total Enterprise Reinvention also will
techenabled transformation, and limited the cloud services and truly changing how unlock the power of external learnings—
ability of companies to be more ambitious they operate because the move to the from other industry players and, equally
about the outcomes. cloud was done business unit by business important, from other industries. While
unit, or function by function— rapidly, and many CEOs talk about their own industry
For example, change management, producing early results, but not realizing not being the benchmark, putting this view
skills and cultural change are often cited the full potential of the technology. into concrete action has been difficult.
as barriers or weaknesses, and yet few
2.
The digital core
becomes a primary
source of competitive
advantage
Technology used to be the disrupter. Now Figure 7: Technology is foundational
it’s the enabler, a certainty in turbulent
times. Once you accept that every
business is a digital business, technology “Do you agree that technology “Has the role of tech increased in transformation
is a primary source of competitive in general plays a critical role in programs overall in the past two years?”
advantage that enables companies to all current and future reinvention
build exceptional experiences and achieve strategies, as well as in transformation
Score from 1-5, where:
breakthrough innovations. It can open new programs, for your organization?”
possibilities for accelerating growth and Increased to top priority 5 4 3 2 1 No increase
optimizing operations.
To thrive in this world, companies need

a strong digital core that will serve as the
foundation for reinvention.
Strongly 44% 40% 39%
51% agree
Ninety-seven percent of executives we

surveyed agree technology in general now
plays, and will continue to play, a critical
role in both their reinvention strategy
and in transformation programs for their
organization. In fact, on average 40% of
Agree 55% 58% 57%
executives across the three groups, also
agree the role of technology has increased 46% Neither
agree nor
to become the top priority in transformation
programs overall during the past two years
1% disagree
(see Figure 7).

1% Disagree
Strongly
1% disagree 1% 2% 3%
All respondents Total Enterprise Transformers Optimizers
Reinventors
Consider Siam Commercial Bank (SCB). Restructured into a new entity, SCBx, the
The SCB Transformation Program focused firm intends to leverage its customer base
on developing the company’s technology across platforms to expand its reach to 200
infrastructure and capabilities to create million people.15 The company is investing
the foundation for SCB to become a digital in new technologies, including blockchain,
bank. The company replaced legacy metaverse and Web 3.0.16
applications and migrated to a new cloud-
based data lake.13 A digital factory was set Reinventors capitalize on their
up to develop the bank’s app and new investments in the digital core
digital stack. This enabled the bank to grow While many executives acknowledge
its digital app user base to more than 13 that technology plays a critical role in
million users in 2022, up from 2.5 million reinvention, the ability to use technology
prior to the transformation program.14 as an execution enabler is a differentiating
characteristic of Reinventors. Our survey
The next stage in SCB’s journey to found 39% of Reinventors say technology
reinvention is to become a “fintech is a significant enabler in executing their
business group”—a technology company reinvention, compared with just 21% of
that provides customer-centric services, Transformers and 3% of Optimizers (see
including banking. Figure 8).
Figure 8: Reinventors capitalize on their investments in the digital core
“Did/does your organization’s current technology hinder or Case in point: bp. The firm’s strategy
help in the execution of your transformation program?” to reinvent itself from an international
oil company focused on producing
resources to an international energy
company focused on delivering solutions.17
Hinder Somewhat Enable Significantly
enable enable
The company aims to deliver earnings
of US$9-10 billion from five “transition
growth engines”—bioenergy, convenience,
electric vehicle charging, hydrogen and
Total
renewables—by 2030.18
Enterprise
Reinventors 10% 8% 42% 39%
Digital innovation is one of three
sources of differentiation that underpin
bp’s reinvention strategy.19 bp’s digital
capabilities now sit alongside its science
Transformers 11% 20% 49% 21% and engineering capabilities in an
integrated, “innovation and engineering”
team. bp takes a customer-centric
approach to developing digital products
and benchmarks its digital capabilities
Optimizers
6% 32% 59% 3% against leaders in the technology sector
(instead of against direct competitors).20
13x
3.
Reinvention
goes beyond
benchmarks,
embracing the art
of the possible
In the past, many companies determined Mentions of the phrase “best practice” in
the full potential of their transformation by earnings calls among the world’s 2,000
benchmarking their performance against largest publicly traded companies by
that of peers, as well as targeting current revenue have declined by 24% since Q1
industry best practices. If you’re behind, 2020. Nevertheless, more than half (55%)
these metrics can help create a case for of the executives we surveyed are still
change. However, they also can limit the focused on matching existing best practice
ambition of leaders because they don’t in their industry and see that goal as the
reflect the art of the possible as it relates full potential they can hope to achieve (see
to technology and new ways of working. In Figure 9).
other words, benchmarks become a barrier
to achieving the possible.
Given the rate at which technology

and customer habits are evolving, what
is best-in-class today will be lagging
before tomorrow arrives. Indeed, strong
performance increasingly does not endure.
Our analysis finds that between 2011 and
2022, the gap between top- and median-
performing companies on total shareholder
returns declined by 15 percentage points,
on average, across industries.21
Figure 9: Best practice is falling out of favor—but not for all
Mentions of “best practice” per 1,000 earnings calls for the world’s 2,000 “Which of the following statements best describes % of respondents,
largest publicly traded companies by revenue the level of performance you are aiming to reach n=1,516
through your reinvention strategy?”
150
-24% A major step change that sets

45% a new level of performance in
our industry
100
A major step change

that matches the current
48% performance level of the #1
50 competitor in our industry
7% Top quartile or incremental

0
2020 2022
Q1 Q3
Source: Natural language processing of the quarterly earnings calls of the world's 2,000 largest companies by revenue from Q1 2020 to Q3 2022. Accenture Total Enterprise Reinvention CxO Survey fielded in November 2022.
4.
Talent strategy
and people impact
are central to
Reinvention
Many human factors can compromise reinvention strategies
and transformation programs that look good on paper.
Barriers can include a lack of cultural readiness to change,
leadership capabilities and alignment, and functional silos
(see Figure 10).
The more that people are engaged in reinvention, however,

the more likely such hurdles can be overcome.
Figure 10: Human factors pose some of the biggest barriers to delivering reinvention strategies
“What barriers have you faced in delivering your reinvention strategy?” Selected as a top 3 barrier
% of respondents, n=1,516
Selected as the #1 barrier
30%
29% 28% 28% 27%

25% 25% 25%
20%
15% 16% 15%

14% 13% 14%
10% 12%
0%
Culture Capital Technology Leadership Alignment Silos Partners

Lack of cultural Insufficient Lack of technical Lack of skills/ Misalignment Functional/ Weak partner
readiness/ availability infrastructure capabilities in the across the departmental ecosystem
capacity to change of capital executive team executive team silos
Executives must be the voice of change Figure 11:
Communication of change, empowering people and skilling
Any successful reinvention begins with the
executive team creating conviction in an
at all levels are important to delivery
organization’s people to drive change. The
CEO must champion the Total Enterprise
Reinvention strategy, with the whole C-suite “Which of the following practices were most important to the % of respondents
in lockstep. After adopting such a strategy, successful delivery of your reinvention strategy?”
the CEO and executive team must be
actively engaged, communicating and
owning a clear message and rationale for
the reinvention to bring other employees
+32% +70% +24% +11% +21% +23%
along.
Many organizations underestimate the

importance of communicating the “why”
of a reinvention. Engagement with people
needs to have a vision and a call to action
that resonates with each person, helping
connect individual purpose with the overall
goal of the change. Reinventors distinguish 50 43 38 49 44 29 51 44 41 46 38 41 66 58 54 54 48 44
themselves in this area.
Dedicating the right amount Senior leaders’ Assigning the highest Empowering, recognizing, Upskilling and reskilling Having the relevant
As Figure 11 shows, Reinventors are of time and effort to change communication of a performers to the highest and rewarding new employees with the tools skills/capabilities in
more likely to dedicate ample time and management & comms compelling change story value initiatives ways of working and capabilities needed the executive team to
to speed up execution deliver the program
effort to change management and
communications—including senior leaders’
communication of a compelling change Total Enterprise Reinventors Transformers Optimizers
story.
Roche is reinventing itself to become more Building companywide Technology
agile and digital. Part of the foundation for Quotient (TQ)
this effort has been a global leadership
initiative designed to help senior executives From the C-suite to the front line,
develop the mindsets they need in both employees at all levels will need to develop
personal and organizational reinvention. a TQ to drive successful reinvention. The
The leadership model has moved from TQ is how we build and demonstrate
one designed for command and control to our understanding of transformative
one built on empowerment to encourage technologies and how they deliver on
collaboration and creativity.22 the promise of technology and human
ingenuity. At Accenture, we invest in
continuous training across the enterprise,
with each employee—including the
C-suite—receiving an individual TQ score.
Accenture’s TQ learning series is a simple
and effective way to ensure every member
of the team learns about technology, how
it’s applied, why it matters and how it works
with other technologies. Every employee at
Accenture takes the TQ courses, no matter
what their area of expertise.
5.
Reinvention is
boundaryless and breaks
down organizational silos
Achieving the comprehensive scale of Creating capabilities at the performance
Total Enterprise Reinvention requires frontier requires an enterprise-wide
companies to connect people, processes approach that cuts across business units
and data across the enterprise and and functions, rather than a single function-
beyond, creating a boundaryless or business-driven approach.
organization.
Take the value-chain business planning
Organizations are becoming more and intelligent manufacturing and
interconnected. Ninety-nine percent fulfillment capabilities critical to retailers
of executives expect this focus on and consumer goods companies. Building
interconnectedness across their these capabilities requires an end-to-end
organization will increase over the next approach that impacts virtually the entire
two years. organization in some way (see Figure 12).
Figure 12:
Building full value chain business planning and intelligent manufacturing and
fulfillment capabilities at the performance frontier requires an end-to-end approach
Interventions across the value chain Degree of business impact
Service
ce
Finan
ce n
Ma
so ma
s
rke
Re Hu
ur
tin
Identify Consumer Demand
g
Sa al
le g
s Le
Prescribe Customer Order
O pt i
Sec n
te Growth
Bus
AI matio
ines ur Infor ology
Manufacture to Demand s Un
its Tech
n
ity
mize Operations
Build
Package with Responsibility Digital Core Sourcing
New Business
lera
Procurem &
ou d
D ata
Model ent
Fulfill by Real-time Optimal Flow Paths
Cl
Acce
P l a t fo r m s Su
& pply
ers ions
Engage for Circular (re)Fulfillment rg
Me quis i t
Ch
ain
Ac
En nu
M
gi fac
a
ne tu
gy e
te at
er ri
ra or
Industry-specific
in ng
Sus
St orp
g
ent
&
Dev arch &
tain
C
pm
Functions
ab
elo
e
ility
Res
Source: Accenture analysis. Degree of Impact High Medium Low N/A
Reinventors Changes to the operating model are also
accompanied by significant changes in
The European automotive ecosystem, for
example, is working to create a secure,
strengthen how people work. Adopting agile principles standardized data exchange, the “Catena-X
across the business (not just in IT) Automotive Network”—the first open-data
connections empowers employees and enables cross- ecosystem in the sector.24 By sharing data
functional ways of working. The move to and other resources, Catena-X aims to
across their empowered, multidisciplinary teams allows improve transparency and efficiency, as well
people to take on more complex roles as reduce carbon emissions throughout the
organizations that combine tasks once performed by supply chain.25

two or more individuals in traditional roles.
Evidence is seen in recruitment trends, with Boundaryless doesn’t mean a lack of
our analysis showing the average number controls. Those adopting reinvention
of skills required for jobs posted during recognize the need for a dedicated
2020-22 increased by 18%.23 Transformation Office. The office
coordinates, setting the schedule and
The integrated operating model and new tracking progress, developing a fully
ways of working are underpinned by an integrated plan with financial projections,
integrated, enterprise-wide technology clear operational performance indicators
and data platform that democratizes and targets for each workstream that acts
data across the enterprise. The flow of as a single source of truth for the entire
data provides connections between organization (see Figure 13).
teams across the networked organization,
enabling the sharing of ideas and insights.
Figure 13: Effective program governance is seen as the most important factor for successful delivery
“Which of the following factors were % of Total Enterprise “Which of the following practices % of respondents
most important to the delivery of Reinventors, n=119 were most important to the successful
your reinvention strategy?” delivery of your reinvention strategy?”
Effective program Creating a detailed 60

governance 56% plan of initiatives for
all workstreams
57 +40%
People and culture 54% 43
The right partners 52%

Establishing a dedicated 57
Leadership engagement
50%
transformation office to
oversee the program
54 +16%
and alignment
49
A compelling business case 48%
Total Enterprise Reinventors Transformers Optimizers
6.
Reinvention is
continuous
Transformation typically has been sequential and Figure 14: Continuous reinvention is supported by core
time-bound. Reinvention, however, is as dynamic
as the changing technological and market
planning processes
landscape. It requires both speed of execution
and an approach toward continuous change that “Which of the following practices have you adopted in support % of Total Enterprise
seeks progress over perfection. The earlier value of your philosophy of continuous reinvention?” Reinventors, n=119
is released, the quicker it can be invested in new
initiatives that further extend the performance
frontier.
It’s therefore critical for companies to focus on

initiatives that drive the most impact.
As such, companies must be ready to reprioritize

initiatives on an ongoing basis, stopping non-value-
adding initiatives at the right time, while regularly
restocking their pipeline with new initiatives.
Fifty-eight percent of Reinventors say that both

reprioritizing existing initiatives and adding new
initiatives to the reinvention strategy during core
planning processes supports a philosophy of
continuous reinvention (see Figure 14). 58% 50% 40% 39% 38%
UBS, for example, introduced “dynamic investment
reprioritization” to optimize results through
Reprioritize existing Work with business Leverage an Engage with others Leverage employee
quarterly budget reviews, helping ensure that initiatives and add partners to innovation that have reinvented crowdsourcing to
the bank’s digital deliverables are aligned with new initiatives to the continuously drive methodology to themselves to learn generate new ideas
customers’ needs.26 reinvention strategy, innovation generate new ideas from their experience
as part of core
planning processes
Reinventors draw on the power of
their ecosystem partners
Partners bring resources—assets, ideas, Cloud providers and system integrators
skills—that can accelerate progress at scale, have partnered to develop Verizon’s
in support of compressed transformation. mobile edge compute (MEC) ecosystem.
Partners can also support the investment Customers test new use cases.
required to deliver reinvention through
gain-sharing agreements. And partners Partners are helping Verizon, too. Verizon
can help build a capability to deliver and Meta are working together to leverage
continuous reinvention: 69% of companies complementary capabilities to build the
that are moving to adopt a strategy of Total foundations of the metaverse, with a focus
Enterprise Reinvention say that having a on the MEC infrastructure for extended
business partner that helps select and build reality experiences.27
solutions and platforms is important to the
successful delivery of their strategy (see
Figure 15).
Verizon, for example, has systematically

built an ecosystem to support the
development of the 5G economy, by
forming strong partnerships across its value
chain. Device manufacturers help ensure
that Verizon’s network can support all
devices.
Figure 15: Business partners are at the center of delivering reinvention strategies
“Which of the following practices were most important to the successful delivery of your reinvention strategy?” % of respondents
Selecting a business partner at the center of the Having a cloud services partner at the center of
strategy and working with them to select and build the strategy and building teams and other external
solutions and platforms providers around this single partner
+30% +7%
69 58 53 64 63 60
Total Enterprise Transformers Optimizers Total Enterprise Transformers Optimizers
Reinventors Reinventors
Total Enterprise
Reinvention
outcomes
Embracing Figure 16a: Figure 16b:
Total Enterprise “How successful have you been/do “What financial value do you expect to
Reinvention
you expect to be in delivering on your realize from your reinvention strategy
transformation program?” against the following measures?”
releases value at a % of respondents Outcomes for Reinventors relative to

Transformers and Optimizers
compressed rate Reinventors Reinventors

vs. Transformers vs. Optimizers
5% Highly successful
100%+ of the
Companies that pursue Total Enterprise
44% 24% business case
Reinvention are nearly 2x more likely 8x Successful Incremental
to have been—or expect to be—highly 90-100% of the

business case
revenue
growth +10% +22%
successful in delivering on their business 45%
case than Transformers, and 8x more likely Reasonably
successful
than Optimizers (see Figure 16a). 70-89% of the Cost
56% business case reduction P&L

improvements
+13% +21%
In our survey, Reinventors report generating
Mostly unsuccessful
10% higher incremental revenue growth, 30-69% of the
13% higher cost-reduction improvements 51% 49% business case
Balance sheet
and 17% higher balance-sheet
20% Unsuccessful improvements +17% +20%
improvements compared to Transformers. 5% 1% 29% or less of the
business case
Those numbers are significantly higher
when compared with Optimizers at 22%, Total Transformers Optimizers
Enterprise
21% and 20% respectively (see Figure 16b). Reinventors
Our analysis finds Reinventors double their
probability of outperforming on these
measures, relative to the industry average.28
A “dynamic” approach makes the most Moreover, Reinventors report delivering
difference. Adopting a philosophy 1.3x more financial value in the first six
of continuous reinvention, in which months—a reflection of the speed at
companies keep redefining what is which such companies execute and
possible, is 4.5x more important than any deliver increased value compared
of the other features of Total Enterprise with Transformers, 1.6x compared with
Reinvention in boosting the probability of Optimizers (see Figure 16c). Indeed,
financial outperformance (see “About the 66% of Reinventors say that the delivery
research” for further details). of their reinvention strategy is happening
significantly faster relative to past
transformations. By comparison, only
27% of Transformers and 10% of Optimizers
say the same (see Figure 16d). Companies
reinvent at speed through compressed
transformation, in which agile ways of
working, standardized solutions, and the
capabilities of ecosystem partners are used
to accelerate progress.
Figure 16c: Figure 16d:
“What proportion of the financial value was/do “Has the delivery of your reinvention strategy
you expect to be delivered within the following occurred/do you expect it to occur faster or
time periods?” slower relative to past transformations?”
% of financial value % of respondents
Within 6 months 7-12 months Significantly faster

10%
Total
Enterprise 11% 17% 66% 27%
Reinventors
6.6x
Transformers 9% 16% Faster
29% 64% 85% At the same speed

Optimizers
7% 13% 3% 7% 4%
1% 2% 1% Slower
1.6x
Total Transformers Optimizers
Enterprise
Reinventors
The value Reinventors generate is far more Beyond the survey, our analysis
than financial, however. Reinventors more found Reinventors—relative to their
actively manage for—and deliver on— industry peers—perform 32% better
non-financial outcomes, generating what on sustainability and 31% better on
we call “360° value." Generating 360° value experience—for customers (as indicated
means looking beyond short-term financials by customer relationship-management
to understand what creates long-term, scores), suppliers (as indicated by churn
sustainable value in a world where people rates) and employees (as indicated by
are more empowered than ever to choose recommendations to others). Reinventors
the companies with whom they engage. also score 11% higher on innovation,
11% higher on “net better off” outcomes
Seventy-six percent of companies that for talent, and 7% higher on inclusion and
pursue Total Enterprise Reinvention diversity (see Figure 17 and “About the
say setting non-financial targets is very research” for further details on how we
important, compared with 32% for quantify these areas of performance).
Transformers and only 10% of Optimizers.
Reinventors deliver superior outcomes
by thinking more deeply about how their
reinvention will enable them to engage with
customers and employees, deliver more
sustainable outcomes and enhance their
approach to innovation.
Figure 17:
Total Enterprise Reinvention improves performance on multiple measures of non-financial value
“When setting targets for a % of Indexed scores on non-financial 0-100
transformation, how important are respondents measures of performance
non-financial targets?”
70
+32%
10% Very important
Sustainability
53
64
76% 32% Experience +31% Source: Accenture Total
49 Enterprise Reinvention CxO
Survey fielded in November
31 2022. Non-financial analysis is
Innovation +11% based on companies that are

identified as Total Enterprise
28
63% 90% Important Reinventors by industry
experts. “Sustainability” is
71 based on ESG data from
Talent
64
+11% Capital IQ. “Experience”
is based on measures of
Neither important nor customer-relationship
24% 4% unimportant management and supplier
Not important Inclusion & 64 churn from S&P Global and
1% 1% Not at all important Diversity +7% FactSet Supply Chain. “Talent”
60 is based on Net Better Off

indicators from Glassdoor,
Total Transformers Optimizers Arabesque and S&P Global.
Enterprise And innovation is based on
Reinventors the efficiency of tangible and
Total Enterprise Reinventors Industry peers
intangible expenditure.
Charting a path Ambition and strategy Digital Core
to become a • Where are you today: are you a Reinventor,

Transformer or Optimizer?
• How would you assess your digital core? What is
its level of maturity and what are its known gaps?
Reinventor • Have you defined the performance frontier for

your company, and how does it measure against
• Is the ability to use technology investments
to achieve sustainability and other 360° value
the best in your industry and the best in other objectives and any negative impacts formally
relevant industries? Are you matching the leaders included in technology investment decisions?
We believe all companies or setting the new benchmark?
will need to adopt Total • Is your entire C-suite held accountable, as a
primary metric, for the success of your current
Enterprise Reinvention transformation programs, or is the business or
as a strategy in the function lead primarily accountable?
coming years. Here
are four categories of
questions to help shape
a path forward. Talent Transformation initiatives currently
• Do leaders have sufficient technology acumen underway
to understand the art of the possible and what it • Are the leaders of your current transformational
can do to drive reinvention? initiatives able to articulate the changes that will
• Do you have existing change management occur across the enterprise, and are they using
capabilities to support your continuous metrics that take a cross-functional view?
transformation journey, or are you standing • Can your leaders articulate the partnership strategy
these up for each transformation project? for each transformation program, how that strategy
• Do you use data to measure your transformation, is enabling them to deliver outcomes faster and
and is the same form of measurement used for increase certainty of outcomes as well as how the
all programs? partner fits into your talent strategy?
About the
research
We took a multi-method approach
360° value performance analysis of

Total Enterprise Reinvention CxO survey Total Enterprise Reinventors
Accenture Research conducted a survey of 1,516 C-suite We compared the success of transformation programs, We compared the non-financial performance of
executives in November 2022. Respondents were both in terms of 360° value impact and enabling factors, companies we identified as Total Enterprise Reinventors,
asked about their organization’s approach to business across these three groups. based on expert input, relative to their industry-segment
transformation and reinvention strategy, as well as about peers. We used non-financial performance elements
their specific programs and success factors. We conducted We also ran a logistic regression to understand how of Accenture’s 360° value framework for the analysis:
the survey in 10 countries: Australia, Canada, China, each principle of Total Enterprise Reinvention is related sustainability, experience, innovation, talent, and inclusion
France, Germany, India, Italy, Japan, United Kingdom and to a company’s probability of outperforming its industry and diversity (I&D).
the United States. Respondents represented 19 industries: segment peers, in terms of the financial value that
Aerospace and Defense; Airline, Travel and Transport; the transformation delivers. The financial value of the Each sub-component is based on a set of indexed scores.
Automotive; Banking (Retail); Capital Markets; Chemicals; transformation is based on incremental revenue growth, Sustainability covers environmental, social and governance
Communications, Media and Entertainment; Consumer cost reductions and balance sheet improvements. The scores. Experience consists of scores that reflect customer
Goods and Services; Energy; Healthcare; High Technology; regression controls for company specific factors such as experience, ecosystem partners experience (supplier
Industrial Goods and Equipment; Insurance; Natural company size and headquarters location. churn, vendor churn, etc.) and employee experience (e.g.,
Resources; Pharmaceuticals, Bio Tech and Life Sciences; recommendation to friends). Innovation is based on the
Public Services; Retail; Software and Platforms; and Utilities. efficiency of tangible and intangible expenditures. Talent
is based on the ‘Net Better Off’ outcomes, consisting of
Based on survey responses, we identified three groups of a company’s performance in the areas of compensation
companies: and benefits, work/life balance, employment quality,
occupational health and safety, culture and values, and
• Total Enterprise Reinventors (8% of the sample) human capital development. I&D is based on employee
• Transformers (86% of the sample) diversity and product accessibility.
• Optimizers (6% of the sample)
Global Potential of technology
Disruption Index to reinvent work
We created an overall measure of disruption to assess We assessed the potential of technology to enhance how Step 3:
the level of volatility and change in the external business we sense, comprehend, act on and learn from information The results from step 2 were combined with the latest US
environment. The index is based on the average of six and data. This involved the following steps: employment data by occupation, to get an estimate of the
sub-components, that cover the economic, social, share of hours worked in 2021 that could potentially be
geopolitical, environmental, consumer and technological Step 1: reinvented by technology. Results were also aggregated by
spheres. Each of the sub-components is based on a set We classified 2,100 examples of tasks from the O*Net and job cluster and industry.
of indexed scores for a range of indicators. US Bureau of Labor Statistics. These examples consisted
of 330 separate tasks that make up 851 occupations. The
The economic component is based on economic risk classification involved taking the “action” verbs from the
ratings, Volatility Index (VIX), Gross Domestic Product (GDP) task descriptions and assigning those verbs into four
volatility and inflation volatility. Geopolitics is based on the subcomponents: sense, comprehend, act and learn.
risk of geopolitical instability. The social component reflects
social unrest and non-participation in the labor market. Doing this created a training set. We then used this manual
The environmental component reflects the frequency classification to train a machine learning model, which
of climate-related disasters and climate-driven risk. improved the accuracy of classification. The machine
The consumer component reflects pessimism at a global learning model gave a score from 0 to 1, which indicates
level, based on the inverse of the OECD’s Consumer the probability that a given task falls into one of those
Confidence Index. Finally, the technological component is four groups.
based on an index comprised of 24 indicators, which use
the presence of disruptors and performance of incumbents Step 2:
as proxies for the level of disruptive innovation in industries. We analyzed the current distribution of work activities within
individual occupations, to understand the time allocated
to different tasks. Based on expert input, we estimated the
potential of technological innovation to reinvent a specific
task, either by automating it or by augmenting it. Using
those two elements, we calculated the share of time that
would be reinvented by technology, across all occupations.
Data-science analysis of investor Skills demand, based on
communications job postings
We used a Transformer-based natural language processing We analyzed which skills are in higher demand among
(NLP) method to analyze the investor communications of Reinventors than among other companies in their industry
the world’s largest 2,000 companies between 2018 and Q3 segment. This analysis was based on the Lightcast US job
2022. We did this to identify patterns in mentions of key postings database. The list of Reinventor companies is a
words related to business transformation and reinvention. combination of companies identified by industry experts
and those companies that fulfill all of the total enterprise
We also performed topic modelling on extracts from
reinvention criteria in the survey. The job postings were
investor communications related to strategy, in order to
extracted from 2021 onwards.
identify the co-existence of “strategy” topics with other
technology-related topics.
We then calculated the share of each skill requested,
compared to the total number of skills requested in all job
postings. Next, we calculated the difference of skill shares
between each Reinventor and its industry-segment peers.
This enabled us to understand which types of skills are more
important for Reinventors (because they are more likely to
request them in job postings than are other firms).
References
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Total Enterprise

Julie Sweet Jack Azagury Bhaskar Ghosh

Trevor Gruzin Oliver Wright Mike Moore

4 Executive summary 49 Total Enterprise

13 The new imperative 55 Charting a path to

25 Diving deeper into the six characteristics 56 About the research

Will you define the to more technology. We call these

top quartile for your

4. Capturing the power of the metaverse

5. Continuously leveraging the on-going

Many, though, are beginning to recognize

Reinvention afterthought. These companies consider

Total Enterprise Reinvention is a deliberate

to become a • Where are you today: are you a Reinventor,

Reinventor • Have you defined the performance frontier for

Our Global Disruption Index—a composite measure that

As such, companies now face a permanent state of change

Overall level of disruption Economic Social Geopolitical Climate Consumer Technological

Addressing climate change will unlock

% of respondents saying they will accelerate their

It may seem counterintuitive to focus on on new partnerships and embraced digital

Take American Express. The payments

Industrial 31% 50% 19%

Information Technology +32

40 45 50 55 60 65 70 75 80 85 90 95 100 Past two years Next two years

To thrive in this world, companies need

Ninety-seven percent of executives we

(see Figure 7).

Given the rate at which technology

-24% A major step change that sets

A major step change

7% Top quartile or incremental

The more that people are engaged in reinvention, however,

29% 28% 28% 27%

15% 16% 15%

Culture Capital Technology Leadership Alignment Silos Partners

Many organizations underestimate the

Interventions across the value chain Degree of business impact

Prescribe Customer Order

organizations that combine tasks once performed by supply chain.25

Effective program Creating a detailed 60

The right partners 52%

It’s therefore critical for companies to focus on

As such, companies must be ready to reprioritize

Fifty-eight percent of Reinventors say that both

Verizon, for example, has systematically

releases value at a % of respondents Outcomes for Reinventors relative to

compressed rate Reinventors Reinventors

Reinvention are nearly 2x more likely 8x Successful Incremental

to have been—or expect to be—highly 90-100% of the

56% business case reduction P&L

% of financial value % of respondents

Within 6 months 7-12 months Significantly faster

29% 64% 85% At the same speed

31 2022. Non-financial analysis is

Innovation +11% based on companies that are

1% 1% Not at all important Diversity +7% FactSet Supply Chain. “Talent”

60 is based on Net Better Off

to become a • Where are you today: are you a Reinventor,