Let’s Get Digitally Physical

For many companies, peak condition is sustained through digital fitness—an ability to invest in and innovate using digital technologies. However, Accenture research has found that many companies are not actively building their digital muscles, even when they are in a strong financial position. When we examined the financial and digital performance of over 300 global companies, we found one category of business that was surprisingly strong on financial performance, especially profitability, but comparatively weak on digital performance. We call this group Business Leaders. Business Leaders have maintained financial strength thanks to their legacy business but, if not renewed over time, the strong legacy of today can become a challenge tomorrow. Accenture research shows that Business Leaders underperform on four broad company activities: a) digital strategy planning and execution, b) digital production and delivery, c) digital customer experience management, and d) digital corporate culture and operations. As a result, Business Leaders need to: 1) get motivated to excel at serial investments, 2) renew their business model, but not alone, and 3) make cultural disruption a routine. Business Leaders may underestimate the impact that nimbler, more tech-savvy competitors can have on their current financial lead position. To get fit to lead in the future, these companies must focus on investment, business model renewal, and a persistent culture of innovation.