Only 20% of South African enterprises are succeeding at digital transformation – yet those that are totally reinventing themselves to remain competitive are reporting 22% stronger revenue growth than those companies that have had limited or failed transformations, according to new research from Accenture.
Accenture SA’s “Total Enterprise Reinvention (TER)” study classifies enterprises into three categories: “Reinventors” – those that embrace what Accenture calls Total Enterprise Reinvention, a deliberate strategy that aims to set a new performance frontier for companies and, in most cases, the industries in which they operate; “Transformers” – those that transformed only partially; and “Optimisers” – those whose transformations have been limited to non-existent.
Reinventors generate 22% higher incremental revenue growth, 21% higher cost-reduction, and 20% higher balance-sheet improvements compared to Optimisers. Reinventors also perform 32% better on sustainability, 31% better on customer experience, 11% better on both innovation and talent, and 7% higher on inclusion and diversity. Reinventors more actively generate “360° value,” looking beyond financials to long-term, sustainable value for all stakeholders.
“We stand at a transformative crossroads and Total Enterprise Reinvention is much more than an operating strategy,” says Vukani Mngxati, CEO of Accenture Africa. “It is a commitment to a digital-first future. Our approach is to redefine how businesses operate in the digital world, focusing on comprehensive growth and innovation.
“Our research reveals a dynamic technological environment in South Africa,” Mngxati adds. “A significant majority (74%) of local companies now recognise the fast pace of technological change as the core driver of their transformation strategies. Yet few companies (20%) are seeing the fruit of their investments and there is a widening gap between technology spending and business growth.”
Accenture’s research highlights that companies’ failure to implement successful digital transformations causes unnecessary financial stress in an already tough business environment. The accelerating pace of technology in their industries is also putting the C-suite under pressure, with 78% saying it is compelling them to speed up their own organisations’ digital transformation. The companies that are getting it right are “Reinventors” who are putting the right strategies, people, technology, and analytics in place to become future-forward industry leaders.
Mngxati says understanding these dynamics is crucial as businesses navigate an era where digital advancements redefine market competitiveness and South African companies are not stepping back, but are now ready to accelerate their transformation efforts.
“Despite this widespread acknowledgment, few companies are reporting high success rates in their transformation endeavours,” he says. “This discrepancy highlights the need for a structured, strategic approach to business reinvention.”
Total Enterprise Reinventors embody a comprehensive strategy. These reinventors are not content with meeting industry benchmarks; they aim to create new performance standards, constantly pushing the boundaries of innovation and efficiency.
South Africa’s need to remain digitally relevant is crucial for its economic and business growth in an increasingly interconnected world. The digital revolution has transformed the global economic landscape, making it imperative for countries to adapt and integrate digital technologies to remain competitive.
“For South Africa, digital relevance means more than just adopting new technologies, it involves a holistic approach to reinvention encompassing government, businesses, and society at large,” says Mngxati. “This integration into the digital economy allows South African businesses to access broader markets, innovate more rapidly, and improve operational efficiencies.
“Moreover, it provides an avenue for attracting foreign investment, as investors often seek dynamic, tech-savvy markets. Digitally empowered businesses can contribute significantly to GDP growth, job creation, and improved international trade balances.”
Mngxati adds that reinvention is an ongoing process. “It is about constantly evolving and responding to market trends. This cycle of evolution and improvement is what sets reinventors apart.”