In the future all companies will be digital companies, and those that rise to the top will be those that embrace the seven secrets of successful, constant business reinvention, according to a leading global professional services company Accenture.
Nitesh Singh, MD and communications, media and technology lead for Accenture in Africa, shared these seven lessons for business success with Africa telecoms leaders at the recent Connected Africa Summit.
All businesses need a strong digital core
Singh advises that business reinvention and reinvigoration are necessitated by changing market conditions, aging technology, climate change and regulation, high energy prices, inflationary pressures, geopolitical tensions, supply-chain disruptions, talent shortages, economic downturn and more. A solid digital core in place provides a stable, future-forward base from which they can operate and thrive.
A strong digital core, made up of elements such as platforms, cloud infrastructure, data, artificial intelligence (AI) and security, is the essential foundation for any business in the digital era.
Make reinvention part of your company DNA and purpose
Knee-jerk, overhasty and poorly planned reinventions in response to all the crises in the business environment today can have dire consequences, including reputational damage, customer and staff churn, as well as cybersecurity breakdowns, says Singh. This in turn can affect competitiveness, share price, leadership continuity, shareholder activism and more.
“Reinvention is a holistic process that involves people, culture and purpose. The truth is that the world is in a state of ‘permacrisis’ and we must get into the habit and mindset of constant reinvention and evolution, as a part of a strong company culture and DNA. It must be something you do actively every day, driven by an ultimate company purpose everyone on the team can buy into and pursue together.”
Start with the customer’s needs
Accenture’s global research has found that companies that do well in the digital era always put their customer needs and experiences first. This means shaping the business strategies, products and services on what customers need and want, and working backwards from there to determine processes, resources and skills needed in the business to deliver on the customers’ evolving needs.
“You need to work on how to give customers what they need, through smooth, helpful and convenient digital and physical customer experiences. It’s about solving the customer piece from end to end,” says Singh.
Remain authentic, but don’t get stuck on business-as-usual
The most successful business reinventions in recent history came down to the companies getting clear on their top strengths and opportunities, and adapting their strategies and processes to achieve a refined focus. “Companies should not cling to business-as-usual when it no longer serves them, their customers or their stakeholders. Instead, they need to home in on where they can stand out,” Singh advises.
One pharmaceutical giant turned its business around by redefining their leadership, financial controls and by creating end-to-end jobs all along their value chain. Technology giant Apple in turn invested in ahead of the curve innovation, and a strong brand identity.
Constantly invest in talent and better workflows
“Companies with a strong digital core should constantly evolve and improve the ways their people work. Digital efficiencies can free your teams up to focus on what really matters now, which is critical and creative thinking and problem-solving,” says Singh.
In order to be a company of creative problem-solvers, businesses need to invest in the best talent they can afford. “Continually investing in talent is part of constantly reinventing and strengthening your business.”
To create holistic, 360-degree value in your business
Creating 360-degree value in a business is about taking a holistic approach, rather than focusing on a few key activities. Reinvention should happen constantly across a number of business categories, including finance, sustainability, talent, diversity and inclusion, customer and staff experiences and more. Companies must consider their people, the environment, the industry they operate in, operational efficiencies and innovation, and market fit, profitability and sustainability.
Interestingly, companies that have become reinventors are 30% more likely to score highly in their industries on non-financial measures such as diversity and inclusion, talent and innovation, according to Accenture/PMI’s 2022 survey of 1 500 chief transformation officers at major companies worldwide, including several global telcos.
Open yourself up to the right partnerships
When one multinational technology corporation refocused its business a few years ago, it decided to focus on “rediscovering their soul and reason for being”. To achieve real success again, they adopted a startup- and partnership-focused mindset.
“In the new digital economy of tomorrow, the companies that remain relevant and strong will embrace ‘coopetition’ by embracing partnerships with specialist competitors to create maximum value within their digital ecosystem,” says Singh.
Conclusion
“In a time when so many large and small businesses are struggling or failing, embracing the principles of holistic, constant reinvention are of huge business importance in the digital era,” says Singh.
Manageable, systematic and holistic reinvention approaches require proactivity, a common purpose, customer experience prioritisation, significant investment in talent and diligent upkeep of core technologies. “You can’t keep doing the same thing and expecting a different result. If change becomes part of your company DNA, however, you can expect to achieve new success.”