BE THE

NEW
DIGITAL
ENTERPRISE

COMPETING IN THE INDUSTRY X.0 ERA OF SMART,

CONNECTED, EFFICIENT BUSINESS
BE THE NEW DIGITAL ENTERPRISE

DIGITAL.
DIGITAL.
DIGITAL.
It is not a new story—but it’s a plot that continues to thicken, as companies remain unclear
about how to best use digital to deliver at scale and seize new sources of growth. Some
have built a strong external digital presence for their customers, but that is not nearly
enough to make the business responsive and competitive. Being a digital enterprise is
about being “digital inside.”

Digital is reinventing industries. In Digital advancements and new To be competitive in the future,
today’s Industry X.0 era, businesses ecosystems, along with the ubiquity organizations must become
must transform to deliver the hyper- of applications, magnitude, dynamic and collaborative, focused
personalized experiences and availability of data, and reduction on continuous improvement and
services that customers–including in the cost of computing, are positioned to capture new growth
patients, travelers and consumers– disrupting the value chains of opportunities—the moment
expect. They must adopt more today’s businesses. Companies are they appear.
flexible processes and capabilities left struggling to understand how
that allow for greater agility and to operate outside their traditional
speed. Companies must also spheres to harvest value in this
embrace a borderless landscape new Industry X.0 world.
where the lines between industries,
products and services are blurred,
and new ecosystems offer fertile
ground for growth.

Those that understand digital transformation UTTERLY DIGITAL

earn 26 percent more profit than others.1
A digital enterprise is connected
26% MORE and dynamic, flexible enough to
PROFIT
embrace continuous change. It
uses connected platforms, analytic
UNDERSTAND insights, collaboration and modular
DIGITAL
OTHERS
TRANSFORMATION operating models to increase
productivity, speed and responsiveness
while putting customers at the center of
whatever it does.

1
“ Digital Transformation Initiative”, World Economic Forum in collaboration with Accenture, 2017.
2
BE THE NEW DIGITAL ENTERPRISE

BE DIGITAL,
OR BE REPLACED
Every business must become a digital enterprise to improve costs, increase margins
and seize new growth opportunities. There is tremendous value in digitizing the way
companies work. Accenture and the World Economic Forum estimate there is $100
trillion that can be unlocked for businesses and society from digital transformation.1

Companies must become fully Companies need to transform not Companies with
digital enterprises to deliver at scale only by advancing their digital
and sustain growth. Unfortunately, experiences for customers, i.e. above-average levels
most have only made forays into being “digital outside,” but also of digital revenue
digital, adding digital capabilities transforming to digital operations,
that improve customer experience i.e. being “digital inside.” There is
have been growing on
or a specific function. Few have great financial value to be gained average 1.5 percent
integrated digital and advanced by going digital or being digital. faster than the
analytics across their mid or back Companies need to progress along
offices, and even fewer have an end- both axes seen in Figure 1, but the industry mean. Above
to-end view. changes do not need to occur at the average organizations
same pace. As companies execute
Being fully digital calls for an end
initiatives that move them along the
experience lower
to linear processes by function.
axes, they have the opportunity to costs and higher
Instead, as the walls between
make “wise pivots” that protect the
functions crumble, the enterprise
core business, and grow the new
capital productivity.2
will be organized into a network of
business. The business should have
processes oriented around customer
a foot in today and tomorrow, making
outcomes. It is a modular approach
wise pivots that accelerate the speed
where capabilities can be brought
of transformation from crawl, to walk
together in flexible combinations to
to run.
achieve a specific outcome.

2
“ Digital Transformation Initiative”, World Economic Forum in collaboration with Accenture, 2017.
3
 BE THE NEW DIGITAL ENTERPRISE

FIGURE 1. MAKING INTENTIONAL PIVOTS TO BOTH GO DIGITAL

AND BE DIGITAL
Great financial value can be achieved by going digital or being digital. However, to
grow the core and transform to a digital business, companies must advance on
both axes.

GO DIGITAL

DIGITAL CUSTOMER EXPERIENCE

“Outside”
INCREASE MARGIN / REVENUE

DIGITAL BUSINESS:
GROW Growing new businesses
THE NEW

KEY
$240M

1 Customer personalization to
WISE 1 drive margin enhancement
PIVOT

Digitally enabled operating

TRANSFORM DIGITAL OPERATIONS 2 model to lower the cost base
THE CORE “Inside”
2
BE DIGITAL
$460M
IMPROVE COSTS

For a $5-10B retail client, Accenture helped achieve these financial outcomes

4
BE THE NEW DIGITAL ENTERPRISE

AS BUSINESSES TRANSFORM TO BECOME DIGITALLY

DOMINANT, THEY WILL HAVE SEVERAL CORE BUILDING
BLOCKS IN PLACE:

DIGITAL
OPERATING MODEL
The operating model connects business functions, processes and structures and
influences how well a company can navigate its rapidly evolving ecosystem.

INNOVATION IS THE enterprise, but not in discrete DIGITAL MAKES THE

functional silos. Capabilities will
NEW VISION become modular. These capability DIFFERENCE
“blocks” can be stacked together
Innovation must happen faster Digitalization will give the new
to deliver a desired customer
than ever in the digital era. Leaders enterprise an end-to-end view of
outcome and solve the challenges
pursue more experimentation: processes, which also allows for
of the moment. Similarly, they can
testing innovations, failing fast and automation, analytic modeling and
be dismantled and reconfigured
moving on to the next idea. Data and insight-driven approaches to solve
to achieve a different customer
analytics can provide insights to help specific business challenges.
outcome or deliver a diffferent
shape innovation around initiatives
skillset. When processes are The digital enterprise takes
with higher likelihoods of success.
organized around a talent skillset, advantage of robotics, algorithms,
We believe some companies should
such as planning or customer cognitive computing, drones
consider an acquisition-based
service, the skill set is aggregated and augmented reality to both
strategy to drive innovation. When
and deployed across the company appeal to customers’ personalized
the enterprise can innovate at
to deliver value enterprise-wide, expectations and increase
speed, it can accelerate product and
rather than in just one functional productivity and speed to market.
consumer lifecycles.
silo. Processes will be re-imagined
Deciding what to digitize calls for re-
to be faster and more collaborative,
evaluating the company’s core and
REBUILDING THE responsive and productive, see
non-core capabilities. The company
Figure 2. Digital companies will
FOUNDATION can be a digital enterprise even if
leverage both in-house and
robotics, for example, isn’t a core
In the digital enterprise, linear external capabilities. Models
capability. Its core is still its business/
processes will be “dead” and the to balance internal and external
market differentiator.
walls will come down between capabilities will vary, depending on
silos so the business can work the specific need.
collaboratively, and in new ways.
Companies will need to be more
flexible and fluid so that they
can organize around customer
outcomes. Traditional capabilities
will still have a home in the digital

5
 BE THE NEW DIGITAL ENTERPRISE

FIGURE 2. END-TO-END PROCESSES ORIENTED AROUND

CUSTOMER OUTCOMES
Companies now have the ability to organize
processes with greater agility and fluidity

BILLING

MARKETING
SALES

GO TO
MARKET

CHANNELS
End-to-End Processes Oriented
Around Customer Outcomes FINANCE

N
TIO
RA
BO
LA

INCREASED
EFFICIENCY &
OL

CR
PRODUCTIVITY
-FUNCTION C

OSS
-FUNCTION C

CUSTOMER SOURCING
AGILITY & FASTER SPEED
CUSTOMIZATION OUTCOME TO MARKET
THROUGH THROUGH
DIGITAL NEW IT
OSS
CR

OL
LA

SCALABLE THROUGH
BO

ORCHESTRATED RA
PROCESSES TIO
N

R&D

PRODUCT
MANAGEMENT

DELIVERY

SUPPLY
CHAIN
6

HR
BE THE NEW DIGITAL ENTERPRISE

DIGITALLY CAPABLE
WORKFORCE
The workforce of the future HUMANS + MACHINES in the workforce. Companies may
see 30 to 40 percent loaded labor
that powers the digital Digital will drive real business value cost savings from automation.
enterprise will have a next- by way of labor productivity, talent
As companies cultivate this
generation talent pool acquisition and retention, as well as
workforce of the future, they will
innovation and creativity. Companies
that includes a balance of “in the new” use automation for
have to piece together many new
roles based on specific initiatives
humans and machines. transactional activities, freeing up
versus having talent sitting in
workers to focus on thinking and
traditional company functional
The humans will consist of a core creating—factors that accelerate
“silos.” The company’s relationship
workforce and liquid workforce speed to market and inspire
with the liquid workforce will also
that allow the business to be more differentiation. As companies
change, as companies assemble
responsive and align the right become more digital, they will need
(then disassemble) talent that can
talent. Employees, especially newer skilled resources who understand
simultaneously opt in (and out).
generations, expect more flexible ways the building blocks of end-to-end
of working, so this new model improves capabilities, people who can look
the employee experience while also across functions and assemble those APPEALING TO A
driving up the company’s level of building blocks to achieve certain
competitiveness. business outcomes.
WORKFORCE OF ONE
In the digital economy, humans Technology is playing a larger
role in what employees want, and
GREATER FLUIDITY and machines are now working on
the same team—and each brings a what they expect. They expect a
Technology enables the workforce critical skillset. It can allow people culture where digital flourishes and
itself to be more liquid and flexible. to be more productive and focus on opportunities are abounding to
Employees are gaining adaptable skills what they do best. MIT estimates an share ideas, brainstorm and solve
that are relevant and transferable from 85 percent reduction in workers’ idle business problems using the latest
one business unit to the next, or one time when they collaborate technologies. They also expect
ecosystem company to the next. This with robots. 3 hyper-personalization, not a one-
on-demand workforce of “free agents” size-fits-all approach in their HR
allows businesses to leverage the best interactions.
of the best for key initiatives. NEW HR
Companies that focus on the
Organization models that are built on Leaders are transitioning their HR workforce experience are winning
workforce capability pools allow the organizations from a transactional, in the market. The new digital
business to be more adaptive and administrative role to a digital-savvy enterprise improves experiences
productive. Core skills will become group of people that understands and fosters employee growth at
transferable across the organization, employees and contingent workers an individual level. Analytics can
and the company can focus on as well as the areas in which help determine what employees
building and growing new important they work. Understanding the want so that HR can respond with
skills, such as problem solving and talents, skills and aspirations of choices about what work to do.
innovation, which are different than the workforce will also allow HR to The Accenture Worker Values Index
before robotics, AI and external talent personalize talent management reveals that emotional factors like
pools were adopted. and training for the first time. engagement, quality of life and
Furthermore, robotics and AI deliver status are equally, if not more
cost savings that can be reinvested important, to workers than income
and benefits.

2
Accenture; Being Digital: 7 No-Regret Capabilities
3
“ Digital Transformation of Industries”, World Economic Forum and Accenture, January 2016.
7
BE THE NEW DIGITAL ENTERPRISE

FOLLOWING A LEAN APPROACH TO CORE AND SUPPORT FUNCTIONS,

90% OF COMPANIES
HAVE SIGNIFICANTLY ADJUSTED OPERATIONS IN THE PAST TWO YEARS4.

ECOSYSTEM
OPPORTUNITIES
In the new world, where industry boundaries are permeable, every business must
reconsider its partnership strategy and fundamental role in the broader ecosystem.
Companies that don’t proactively claim their role will be replaced. Market leaders
recognize the need to participate in the ecosystem—78 percent of research respondents
said they would be increasing their partnerships and alliances as they attempt to boost
digital growth in the next three years.5

FINDING A PLACE PARTNERS IN VALUE

Some might choose to pursue joint ventures and Companies are increasingly integrating their core business
partnerships where companies can work together to with third parties and their platforms, shaping a digital
enrich the customer value proposition. Others may ecosystem that unlocks new waves of growth. The first
spin off aspects of their business and create different step to collaboration is breaking down the walls between
businesses that unearth new revenue streams. the business and its ecosystem partners. Ecosystem
players have stronger potential for profitability, as when
Companies can build, buy, partner, invest and incubate
companies work together toward the same goal, there are
to stay ahead of disruption. These choices depend on
potential growth multiplier effects.
the level of talent/skills mix a business has, and their
vision for where they fit into the ecosystem. In any case, For instance, ecosystem partners have exponential data
it is critical to figure out a strategy and clearly define to draw on and analyze to enable customer outcomes. By
your role. Businesses that don’t find a place will be left pooling resources, there is a better chance of scaling to
behind—or left out. reach new audiences. Exchange of customer information
across platforms also allows for more tailored interactions
with customers. And together, businesses can innovate
systematically and often, and focus on experiences and
solutions to problems. Forming these new partnerships,
especially unorthodox ones, requires an open mindset—
but the possibilities for value are endless.

4
“ Digital Transformation Initiative”, World Economic Forum in
collaboration with Accenture, 2017.
5
“Being Digital: Seven no regret capabilities”, Accenture, 2015.

8
BE THE NEW DIGITAL ENTERPRISE

TECHNOLOGY
PLATFORMS
AND EMBEDDED
ANALYTICS
Technology is no longer viewed as just a cost of
doing business; it’s a key driver of future value–an
enabler of revenue generation in the new enterprise.

DIGITAL PLATFORMS ADVANTAGES OF AUTOMATION

Companies are investing in smart, connected technology Leading companies embrace automation as a means
platforms that have embedded prescriptive analytics to free up workers to focus on thinking and creating—
that provide the underpinning for understanding the factors that accelerate speed to market and inspire
resources needed to deliver an outcome, and the differentiation. And while technology empowers humans,
business impact of each decision. They are using humans can also empower technology to work smarter
technology to better understand what customers want, and faster. In the digital economy, the two entities are
and act on those learnings. For example, by learning from now working on the same team—and each brings a
each customer interaction, businesses can deliver more critical skill set. Technology simply allows everyone’s
hyper-personalized, relevant, valuable and seamless strong suit to flourish.
experiences across sales channels. Cognitive platforms
Through the transformation to a digital enterprise, we
hold tremendous potential to almost instantaneously
recommend businesses are careful to ensure proper
understand the relationships between thousands of
controls and governance. All technologies must have
business variables and suggest actions to achieve
robust security that protects consumer/patient data
specific business outcomes.
as well as intellectual property.
Others are transforming, retiring and leap-frogging away
from legacy systems into the new world of value systems.
By investing in this new technology, large businesses can
move with the pace and agility of much smaller players.
They can affordably preserve and exploit the value of
their legacy systems—by creating a versatile environment
that uses open API architectures, multi-speed IT and
cloud. Emerging technologies, like blockchain, can
connect a business to the ecosystem so that value is
more easily exchanged and processes can more readily
be digitized.

9
BE THE NEW DIGITAL ENTERPRISE

DIGITAL LEADERSHIP
As walls between functions crumble and processes take on new form, someone must
be there to manage all of it. The chief operating officer (COO) and entire C-suite have a
powerful role to play in digital transformation—but roles are changing.

FROM VERTICAL MANAGING FOR

TO VALUE OUTCOMES
Current C-suite functional roles, e.g., The role of the COO will shift most
CFO and CHRO roles will expand in dramatically. In addition to leading
new ways. Rather than managing a supply chain and operations
large function and reporting/being responsibilities and teams, COOs
backwards-looking, the CFO will need will be tasked with reorienting the
to drive value for the company, invest in business around outcomes. They
innovation and drive ROI on digital and will have a stronger commercial and
other investments. So it will likely be a customer orientation as they now
smaller function to manage but have will be responsible for architecting a
greater responsibility. For the CHRO, flexible operating model and running
rather than focusing on HR processes, modular end-to-end processes within
this executive will need to manage the organization, and also across an
liquid talent pools and determine where ecosystem of partners.
technology can free people to do
The COO will work with all business
higher level tasks.
leads to align priorities and objectives
Leaders in the C-suite must take on and ensure the business has the
broader roles. Rather than being right capabilities and relationships
managers of vertical functions, they to deliver outcomes through end-
must now manage broader value to-end processes. This includes
streams. For instance, the chief understanding the proper sequence
financial officer will look beyond the and relationships between capabilities,
finite finance organization. They will and where to insert new IT to increase
move from analysis of historical data agility, responsiveness and improve
to helping the company invest in decision making. Given the critical role
innovation and focus on driving value. technology will play in enabling the
The chief human resources officer will digital enterprise, COOs can benefit
manage a team that extends beyond from understanding technology to
the organization’s four walls. They will help them run future operations.
pull in resources from outside of the
enterprise, and they will also manage
machines, as automation and robotics
are increasingly key to augmenting the
workforce. The “team” will also include
resources from ecosystem partners
that enable the business to expand and
contract based on need. HR leaders
will need to manage this workforce
cohesively, and also ensure it is driving
value for the organization.

10
BE THE NEW DIGITAL ENTERPRISE

HOW TO BECOME
A DIGITAL ENTERPRISE
The journey to transformation in Grow the core THE NEW IS NOW
the Industry X.0 world may seem
daunting. However, we believe it is During this phase, your business can Digital businesses have the tools
achievable when your enterprise strengthen the building blocks of the to sense disruption and compete
follows a disciplined and pragmatic organization. Adopt new business in a fluid market. They organize
journey. That journey begins by models that allow your business to structures, teams and processes in a
establishing a north star that defines be competitive and responsive, and way that drives revenue growth and
why your business exists, along with play a strong role in the ecosystem. productivity. They use technology to
a vision for what it can become. enable more customer-centric ways
What will be your role in the new of working. They harness advanced
ecosystem? What is the value story GET TALENT RIGHT analytic capabilities to spot which
that substantiates the need for trends matter, and determine
The workforce of the future will
transformation? Working toward the what impact they will have on the
have a strong base of core talent
north star allows you to identify the business. They leverage digital as a
with the right skills, training and
pieces of your business that need to multiplier of value that unlocks new
opportunities. It will support a liquid
transform in order to get there. opportunities to be an integral part
workforce that can flex as enterprise
of a new ecosystem.
Use wise pivots to determine where needs change. Automation will be
to start cutting new ground. used to offload transactional tasks Becoming a digital enterprise is
These pivots leverage and digitize onto artificial intelligence, allowing necessary to grow your bottom line.
the core business, allowing it to workers to unleash their human The question is no longer “When
break into new business areas. potential. And, if the enterprise does to transform,” it’s “How fast can you
Pivots on the journey to a digital not have all of the necessary skills in- shift to become a digital enterprise
enterprise include: house, an ecosystem partner can fill ready for a more profitable future?”
in capability and talent gaps.

Transform the core As the organization hones its talent

strategy and people adopt more
Get brilliant with the basics of your cross-functional roles, it will lead
organization. Digitizing functions to changes in where profit and
across the enterprise that support loss is managed and, therefore,
the core business will release funds how executives are rewarded. HR
that can be reinvested in growth. should establish new objectives and
During this phase, identify where success measures to support new
you can start breaking new ground collaboration models and the failing
to enhance productivity and drive fast approach to innovation.
profitable growth.

11
Join the conversation Contact the authors About Accenture
Don Schulman Accenture is a leading global
@AccentureConslt professional services company,
Senior Managing Director
providing a broad range of services
Accenture Products
Accenture Consulting and solutions in strategy, consulting,
Function Practices
digital, technology and operations.
Global Lead
Combining unmatched experience
donniel.schulman@accenture.com
and specialized skills across more
than 40 industries and all business
Shiv Iyer
functions–underpinned by the
Managing Director world’s largest delivery network–
Accenture Consumer Products Accenture works at the intersection
Midwest Lead of business and technology to help
shiv.iyer@accenture.com clients improve their performance
and create sustainable value for their
Gerarda E. Van Kirk stakeholders. With approximately
401,000 people serving clients in
Managing Director
more than 120 countries, Accenture
Accenture Products
drives innovation to improve the way
Function Practice Lead
the world works and lives.
Talent & Organization
Visit us at www.accenture.com.
gerarda.e.van.kirk@accenture.com

Mohammed Hajibashi
Managing Director
Accenture Products
Function Practice Lead
Supply Chain & Operations
mohammed.hajibashi@accenture.com

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