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How to scale innovation and achieve
full value with Future Systems
FULL
VALUE.
FULLSTOP
Provocative thinking, transformative insights,
tangible outcomes
Dr. Bhaskar Ghosh is group chief executive—Accenture
Technology Services. In this role, he directs strategy and
investments for Accenture Technology Services, and leads
platforms, products, global technology delivery and
intelligent cloud and infrastructure services. His focus is to
enable enterprises to embrace digital disruption, drive
growth through innovation and reinvent their application
portfolio. Ghosh and his organization help enterprises
transform their business through the adoption of New IT,
spanning strategy, technologies, architectures, platforms,
methods, organization and operating models.
Under Ghosh’s leadership, Accenture Technology Services
has rapidly rotated to the New. More than 180,000
Accenture Technology people have been trained around the
world in New IT, including automation, Agile development
and intelligent platforms. Ghosh has been awarded patents
in multiple areas, including IT automation. He is a member of
the Accenture Global Management Committee.
Twitter:@DrBhaskarGhosh
Adam Burden is Accenture’s Chief Software Engineer. He
leads Accenture’s Intelligent Software Engineering Services
organization, which includes 35,000+ software and system
engineers. In this role, he oversees strategy and operations,
client services in the areas of technical architecture and
custom systems engineering and the incubation of next-
generation capabilities related to blockchain, augmented
reality and other disruptive technologies.
During his 27-year career at Accenture, Burden has been
part of numerous pioneering engagements, including
serving as lead architect for the world’s largest wholesale
electricity market. He is a certified Solution Architect and
Master Technical Architect with specializations in legacy
modernization, cloud native applications, DevOps,
automation engineering and enterprise architecture. He
has also held both client and technical account
leadership positions.
Twitter:@adampburden
H. James Wilson is managing director of IT and Business
Research at Accenture Research, where he leads global
research programs on the impact of technology on work.
Wilson is co-author of the best-selling book Human +
Machine: Reimagining Work in the Age of AI (Harvard
Business Review Press). He is author or contributing author
of eight books on the impact of technology on work and
society, including most recently, AI, Analytics, & The New
Machine Age (HBR Press 2019) and How to Go Digital (MIT
Press 2019).
Wilson wrote “The Jobs Artificial Intelligence Will Create,”
MIT Sloan Management Review’s #1 Most-Read article of
the year, and is a longtime contributor to The Wall Street
Journal and HBR. His latest HBR article is “The Future of AI
Will Be About Less Data, Not More.”
Twitter:@hjameswilson
Abouttheauthors
BhaskarGhosh AdamBurden JamesWilson
2Future Systems
80% of success is just showing up, right? Think again.
Today’s C-suite is making significant investments in new
technologies. Yet they are not necessarily achieving full
value. They’re deploying technologies in pockets, or
silos, of their organizations, without a strategy for scaling
the innovation from these technologies across the
enterprise. Unable to scale their innovation, they’re not
realizing the full benefits of their technology
investments.
This is creating what we call the innovation achievement
gap—the difference between potential and realized value
from technology investments. For executives who are
under relentless pressure to change and grow, it’s
frustrating to make these investments and still fall behind
competitors. Simply showing up—adopting the
technologies—does not guarantee success.
To crack the code on scaling innovation and closing the
achievement gap, we collected data from companies
across three categories: 1) the adoption of key
technologies, 2) the penetration of technologies adopted
and 3) organization and culture. We then scored them on
these factors, calling companies in the top 10%
“Leaders,” and those in the bottom 25%, “Laggards.”
Just how successful are the Leaders compared to the
Laggards? Leaders are seeing more than 2X the
revenue growth of Laggards.
Laggards often adopt
technologies as individual
point solutions without a
strategy for enabling systems
that can achieve enterprise-
wide, game-changing
innovation. While they
might have pockets of
brilliance, they can’t
maximize the value achieved.
EXECUTIVE
SUMMMARY
Strategic use of Future Systems can give
your company a clear advantage
3Future Systems
Even worse, the lost potential is snowballing:
In 2018, Laggards had 15% in foregone annual revenue.
If they don’t change, they could miss out on a
staggering 46% of their annual revenue in 2023. And
it’s not just those with legacy systems that are
struggling; not all digital native companies are realizing
the full value from technology adoption, either.
What’s so special about those in the top 10%? Their
mindset, for starters: Crucially, Leaders think in terms of
systems and not individual technologies. With a clear
vision, they are evolving to what we call Future Systems,
or boundaryless, adaptable and radically human
enterprise systems capable of scaling innovations
repeatedly and making organizations strategically agile.
Their methods are different, too: Leaders adopt earlier,
reinvest more frequently and acquire technology in a
more deliberate manner. For instance, they install data
streaming platforms, or event hubs, that can process
millions of actions in real time before they adopt AI.
Leaders have directed a greater percentage of their IT
budget toward innovation over the past five years and
expect to accelerate investment in innovation faster than
Laggards over the next five.
Leaders concentrate not only on technology adoption,
but also on its penetration across the enterprise, to
enable innovation transfer and a nimbler response to
market conditions. For example, they ensure that cloud
services permeate across the enterprise and treat
data—across organization silos—as a corporate asset.
Finally, Leaders carefully consider how new technologies
will interact with the people and processes already in
place in their organization, and they nurture talent in
creative ways.
While some leaders are born,
others are made: Everyone
can emulate the mindset and
methods of the top 10% to get
the value they expect from
their significant investments
in technology.
4Future Systems
EXECUTIVE SUMMARY
Through our in-depth analysis of the data we
collected, we’ve been able to pinpoint the many ways
in which leaders stand out in their approach to
enterprise technology and how they use it to innovate
at scale and drive long-term financial performance.
CLICKTHE
FUTURE
INTOPLACE
5Future Systems 5Future Systems
Imagine an electrician who installs a new gadget for a
customer, such as a video doorbell. If he doesn’t figure
out a way to integrate it with other devices in the house,
like the security system or the family’s cell phones, it
won’t be possible to achieve the benefits of a truly
connected home.
A similar scenario plays out on a much grander scale
across global organizations. CIOs, CDOs and CEOs
understand technology’s significance to their company’s
strategy and growth. So, in every industry, they’re
adopting technology that spawns new capabilities. But
despite these substantial investments, many still struggle
to transfer innovations across the enterprise and realize
their potential.
It’s causing an innovation achievement gap—the
difference between potential and realized value from
technology investments.
Why is it that technology is
everywhere, but value is not?
Value is difficult to capture in part because of the
enormous challenge of innovating with legacy systems.
The conventional IT “stack”—spanning software
applications, data, hardware, telecommunications,
facilities and data centers—wasn’t built for today’s
cloud-oriented world of analytics, sensors, mobile
computing, artificial intelligence, the Internet of Things
(IoT), and billions and billions of devices. Nor was it
designed to adapt to the world of tomorrow, whatever
that might be.
But it’s not the case that digital native companies are
closing their innovation achievement gaps, while legacy
companies aren’t. While they might have started in the
cloud, some digital native companies haven’t adapted their
systems at the pace of technological change. In every kind
of company, growth depends on a systematic and
sequential adoption strategy in line with Future Systems—
enterprise systems capable of scaling innovations
repeatedly and giving organizations the strategic agility
they need to stay ahead of their competitors.
6Future Systems
THE INNOVATION ACHIEVEMENT GAP
0
2
4
6
8
10
LEADERS
9%
LAGGARDS
4%
WORK
THESYSTEMS
How, then, can companies maximize their investment in technology? To crack the code, we
conducted our largest enterprise systems survey ever, encompassing C-level executives (half in IT
and half in business) at more than 8,300 companies across 20 industries and 20 countries.
We collected data on companies’ IT systems strategies—specifically, about 1) the adoption of
key technologies, 2) the penetration of technologies adopted and 3) organization and culture.
Then we scored them on these dimensions, calling companies in the top 10% Leaders, and
those in the bottom 25%, Laggards. By tracking companies’ performance indicators between
2015 and 2023 (projected), we can see the relationship between technology adoption and
achieved, or expected, value.
The difference is staggering: Leaders grow revenue at more than twice the rate of
Laggards. (See Figure 1)
In 2018, Laggards had what amounted to 15% foregone annual revenue. If they don’t
change, they could miss out on as much as 46% of their annual revenue in 2023.
(See Figure 2)
Leading companies are achieving
significantly more value with the
help of Future Systems
A staggering difference
in revenue growth
Figure 1: Leaders—those that are evolving to Future
Systems—are growing revenue at more than
double the rate of Laggards. Based on average
self-reported annual growth rates for 2015-2018.
7Future Systems
Leaders are poised to extend their advantage over the next five years
2015
$10bn
$12 bn
$14 bn
$16 bn
$18 bn
$20 bn
$22 bn
2016 2017 2018 2019 2020 2021 2022 2023
$20 Billion
$3Billion
has already been
foregone
Gap = 46%
Leaders Growth Rate
Laggards Growth Rate
Revenue(billions)
Still stands to be lost
in the next 5 years
Figure 2: An illustrative model of the difference between Leaders and Laggards’ revenue growth is projected to widen.
Companies failing to evolve to Future Systems could miss out on as much as 46% of their annual revenue by the year 2023. Leaders’ expected
growth is represented by the purple line and Laggards the blue line (self-reported). For sake of simplicity, we illustrate the opportunity cost of not
evolving to Future Systems using a company with $10 billion in revenue in 2015. Your specific opportunity cost depends on your revenue in 2015.
For instance, if your revenue was $5 billion in 2015, you stand to forgo as much as $10 billion between now and 2023. 8Future Systems
WORK THE SYSTEMS
THINKLIKE
THETOP10%
01 	 Leaders invest more in innovation.
02 	 Leaders don’t just adopt technology, they create systems.
03 	 Leaders scale technology innovation across the enterprise.
04 	Leaders understand that Future Systems must be
boundaryless, adaptable, radically human.
Discoverwhatleadersdodifferently
9Future Systems
HowhastheproportionofyourITbudgetdedicatedtoinnovation(andnot
operatingcosts)changed?Howdoyouexpectittochangeinthefuture?
0
20
40
60
80
100
0
20
40
60
80
100
LAGGARDS LEADERS LAGGARDS LEADERS
2015-2019 2019-2023
Increased Stayedthesame Decreased
15%
21%
64%
2%
5%
93%
9%
17%
74%
1%
2%
97%
HowhastheproportionofyourITbudgetdedicatedtoinnovation(andnot
operatingcosts)changed?Howdoyouexpectittochangeinthefuture?
0
20
40
60
80
100
0
20
40
60
80
100
LAGGARDS LEADERS LAGGARDS LEADERS
2015-2019 2019-2023
Increased Stayedthesame Decreased
15%
21%
64%
2%
5%
93%
9%
17%
74%
1%
2%
97%
Figure 3: Proportion of budget spent on innovation, now and expected.
Leaders spend a much higher proportion of their IT budgets on
innovation. And, expect to further increase their spend in the future.
0
20
40
60
80
LAGGARDS
Increased Stay
21%
64%
0
20
40
60
80
100
LAGGARDS LEADERS
Increased Stayedthesame
15%
21%
64%
2%
5%
93%
0
20
40
60
80
100
0
20
40
60
80
100
LAGGARDS LEADERS LAGGAR
2015-2019 2
Increased Stayedthesame Decreased
15%
21%
64%
2%
5%
93%
9%
17%
74%
Leadersinvestmoreininnovation
10Future Systems
THINK LIKE THE TOP 10%
Leaders have a deliberate stance toward technology adoption and a
clear vision for what their companies’ future systems should look like.
Leaders have directed a greater percentage of their IT budget toward
innovation over the past five years and expect to accelerate investment
in innovation faster than Laggards over the next five. (See Figure 3)
While technology adoption is pervasive among all the companies
surveyed, Leaders show a consistently higher rate than others. (See
Figure 7) They tend to adopt new technologies earlier, develop higher
levels of expertise, and prioritize and sequence implementations in
optimal ways. In doing so, they create systems rather than point
technology solutions.
For example, Leaders adopt AI, a fundamental general-purpose
technology, at a rate of 98%. And even more revealing, before
implementing AI, Leaders set up complementary technologies such as
data lakes (a system or repository of data stored in its raw format) and
cloud services (any service made available to users on demand via a
cloud computing provider’s servers).
Laggards, on the other hand, have faith in a “fast follower” approach,
taking on technology somewhat haphazardly leading to a patchwork
across the organization. Only 42% of Laggards have implemented AI, for
instance. Often following fads, they put in place technologies as
individual point solutions without a vision for how technologies will
complement each other, and without a plan for cultivating enterprise
systems. As a result, when a potentially game-changing innovation
comes along, they cannot effectively scale it.
11Future Systems
THINK LIKE THE TOP 10%
For example, a major apparel manufacturer developed a
wearable device to help users track their exercise but failed to
generate meaningful insights from the data collected. That
would have required building a machine learning-based
analytics platform that could harness the data to provide
real-time predictive analytics that customers could use.
Because the company opted not to, sales were limited. It was
forced to cease production, and eventually stop offering
support services on apps for existing customers.
While Laggards don’t move beyond innovating in pockets,
Leaders set their sights on innovating at scale. Because of that
perspective, they show the highest levels of penetration across
the 13 critical business processes our survey covered.1
In fact,
Leaders target 3 times more business processes with
technologies they adopt than Laggards. As a result, their
systems allow for a seamless flow of product and service
innovations from one process to another
Leaders believe that humans and
machines can bring out the best in each
other and that innovations within the
organizations as well as in their
ecosystem of partners can be scaled.
It’s one reason they’re motivated to
build Future Systems that are:
01 	 Boundaryless
02	Adaptable
03	 Radically human
12Future Systems
THINK LIKE THE TOP 10%
01 Boundaryless:
Boundaryless systems take advantage of
blurring boundaries to create new spaces
where ideas and partnerships can flourish.
Historically, the components of the IT-stack—database, applications,
and infrastructure—have been treated as independent entities. These
days, rigid divisions are fading. More than 75% of our respondents say
that systems are breaking down the boundaries between data,
infrastructure and applications, between humans and machines, and
even between competing organizations. (See Figure 4)
Systems which are boundaryless utilize the cloud, have a uniform
approach to data, security and governance, and have established paths
for exploring unconventional partnerships—giving businesses almost
infinite opportunities to improve how they operate.
say systems are breaking
down the boundaries between
data, infrastructure and
applications, between humans
and machines, and even between
competing organizations.
90% 75%
44%
Figure 4
13Future Systems
THINK LIKE THE TOP 10%
02 Adaptable:
Adaptable systems learn, improve, and scale
by themselves, eliminating the friction that
hinders business growth and helping humans
make better decisions, much faster.
Powered by advances in cloud, data, and intelligent technologies,
those with adaptable systems aren’t fazed by change. The companies
we surveyed understand how self-learning systems enable strategic
agility: Eighty-three percent want systems that allow them to pivot to
new directions.
Key markers of adaptable organizations include enterprise-wide use of
automation and AI, a continuous data supply chain in the cloud to
power AI in the enterprise, and a stable but modular, flexible,
decoupled and constantly evolving architecture. (See Figure 5)
0
20
40
60
80
100
0
20
40
60
80
100
LEADERS
80%
LEADERS
84%
LEADERS
95%
80
100
LAGGARDS
40%
LAGGARDS
44%
0
20
40
60
80
100
LAGGARDS
30%
80
100
Leaders believe decoupling
enables adaptable systems
Figure 5: More than 80% of Leaders agree that decoupling the
entire IT stack is a key step toward adaptable systems,
compared to less than 40% of the Laggards.
14Future Systems
THINK LIKE THE TOP 10%
Radically human systems talk,
listen, see and understand just
like we do, bringing elegant
simplicity to every human-
machine interaction.
A full 80% of our survey respondents believe
systems will interact seamlessly with humans,
and 78% think these systems will embrace the
way humans work.
Radically human companies empower people to
break down organizational barriers. Ninety-one
percent of Leaders are extremely effective at
working with cross-department teams that
combine IT and business to create customer-
centric solutions, compared with only 41% of
Laggards. (See Figure 6)
Thanks to technologies such as natural-
language processing, computer vision, voice
recognition, and machine learning, these
systems are becoming less artificial and more
intelligent, making them easier to interact with
and more efficient.
Leading radically human companies have a
structured, fail-fast approach to evaluate the
potential of emerging technologies, they apply
responsible AI frameworks to build human-
machine trust and they use human-centric
design as a standard practice.
Companies that can think in terms of systems,
as opposed to point-solutions, stand to outpace
others in terms of both revenue and margin
growth. It starts with envisioning their own
version of boundaryless, adaptable and
radically human future systems.
03 Radically human:
0
20
40
60
80
100
RS
%
LEADERS
84%
94%
90%
91%
75%
S
%
LAGGARDS
40%
LAGGARDS
44%
of Leaders are
extremely effective
at workingwithcross-
departmentteamsthat
combineITandbusiness
to create customer-
centric solutions.
Figure 6
15Future Systems
THINK LIKE THE TOP 10%
92%
100%
99%
97%
99%
97%
97%
98%
98%
98%
98%
98%
98%
68%
59%
59%
54%
52%
51%
50%
46%
41%
42%
48%
41%
35%
Big data analytics
Streaming/real-time data
Cloud SaaS/Software as a service
Internet of Things (IOT)
Cloud IaaS/Infrastructure as a service
Cloud PaaS/Platform as a service
Data Lakes (data repository)
Open Source
Cloud Native Applications (custom)
Top-Down AI (E.g. expert systems, logic and
inference engines)
Hybrid Cloud
Bottom-Up AI (E.g. deep learning, machine learning)
NoSQL databases (key-value, document, graph)
96%
98%
94%
93%
95%
97%
92%
95%
94%
97%
97%
95%
96%
90%
30%
29%
34%
41%
32%
27%
36%
32%
31%
27%
25%
25%
25%
37%
Distributed logs/event hubs
DevOps automation/CI/CD
Blockchain
Robotics
Edge/Fog Computing
Microservice Architectures
RPA (Robotic Process Automation)
Extended Reality (AR/VR/MR)
Serverless Computing
React/Event-driven architectures
DevSecOps
FaaS/Functions as a Service
Containers, Docker,  Kubernetes
3D Printing
Laggards
Leaders
Figure 7: Technology Adoption Rates, Leaders and Laggards. Figures here
show rates of adoption of specific technologies in aggregate. Leaders
also, by and large, adopt these technologies earlier than Laggards.
Leaders master technology adoption
16Future Systems
THINK LIKE THE TOP 10%
ACTLIKE
THETOP10%There’s method in the mindset
Companies have to put their mindset into
practice with the right methods, honing
the technology and capabilities that will
help them rise above the rest. These
behaviors come as second nature to some
companies, but others can learn to
implement them. Here are five key actions
Leaders consistently take to close their
innovation achievement gaps:
01 	Adopt technologies that make the organization fast and flexible.
02 	Get grounded in cloud computing.
03 	Recognize data as being both an asset and a liability.
04 	Manage technology investments well—across the enterprise.
05 	Find creative ways to nurture talent.
17Future Systems
Leaders are moving to decoupled data, infrastructure
and applications that enable greater flexibility and a
faster-moving IT culture. Eighty-three percent of them
agree that it’s important to decouple data from legacy
infrastructure, compared with only 37% of Laggards.
Laggards are also far behind in the adoption of DevOps,
automation and continuous integration/continuous
deployment, with a 29% adoption rate compared with 98%
of Leaders. All of these technologies and approaches are
designed to help companies eliminate dependencies in their
systems and processes, which in turn makes them more
agile. Across the world, companies cite architecture flexibility
as one of the biggest barriers to innovating at scale. (See
Figure 13)
Leaders’adoptionofcriticaltechnologiesthatallow
decouplingoutpacesthatofLaggardsbyamassive
margin:97%to30%. These technologies include
microservice architectures (enabled by a suite of tools that
break applications into simple, discrete services), containers
(a way to package an application so it can be run in isolation
from other processes) and Kubernetes (an open-source
container-orchestration system for automating application
deployment, scaling and management). (See Figure 8)
Even digital native companies are faced with the need
to update monolithic enterprise architectures. When
one travel industry disruptor first launched their
business just over a decade ago, speed to market was
paramount, so getting the right long-term, scalable
architecture in place wasn’t a priority.
Then the company faced the challenge of scaling its
platform to meet the demands of a growing customer
base and geographic expansion. As part of a
decoupling initiative, it migrated its platform to
microservices, which allows the company to rapidly
respond to change and add new features as it
experiences explosive growth.
Leaders opt for flexible, uniform and scalable
architectures capable of responding to market
demands, like seamless customer payments. Laggards,
on the other hand, find it difficult to move away from
rigid IT architectures, which leaves them unable to
maximize investments in innovation.
Leaderscreatearchitectures
andprocessesbuiltforchange
0
20
40
60
80
100
LEADERS
97%
0
30%
LAGGARDS
30%
01Adopttechnologiesthatmaketheorganizationfastandflexible
Figure 8: Leaders’adoptionofcriticaltechnologies
thatallowdecouplingoutpacesthatof
Laggardsbyamassivemargin.
18Future Systems
ACT LIKE THE TOP 10%
Cloud computing is essential to Future Systems because it enables
companies to successfully utilize other technologies, including AI
and analytics. As such, Leaders treat the cloud as a catalyst for
innovation. Ninety-five percent of them have adopted
sophisticated cloud services like serverless computing,
compared to 30% of Laggards, who tend to see the cloud as a
cost-effective “data center.” (See Figure 9)
Alibaba Group’s financial arm, Ant Financial, for example, is using cloud
and AI to offer a range of services in mobile payments, banking,
insurance and wealth management.2
Cloud services and AI are
embedded across multiple processes and product lines—adapting to
each as needed. As a result, the company can instantly assess the
credit risks of underserved people who may not have bank accounts,
and even target them with loan offers. It can also enable customers to
snap photos after an automobile accident to file claims with their
insurers in just a few seconds.3
Ant has transferred innovations and lessons at scale across the
organization. And it’s gone even further, offering its AI capabilities to
external ecosystem partners. Caifu Hao, an AI-powered corporate
account on the Ant platform, for instance, has brought tangible
benefits to 27 fund management companies.4
The funds have reported
a reduction in overall costs by 50%, a ten-fold increase in daily visitors
and a three-fold increase in investments by returning customers.4
02 Get grounded in cloud computing Leaders adopt sophisticated
cloud services
0
20
40
60
80
100
LEADER
80%
LEADERS
95%
100
L
4
0
20
40
60
80
100
LAGGARDS
30%
100
Figure 9: 95% percent of Leaders have adopted sophisticated
cloud services compared to 30% of Laggards.
19Future Systems
ACT LIKE THE TOP 10%
Out of the 28 technologies we surveyed companies about,
respondents ranked “technologies associated with real-time
data capture and analysis” as the most important to
transforming/improving their business processes. Again,
Leaders are ahead of their peers.
Leaders ensure data quality, creating security measures that
anticipate threats and building ethically responsible
frameworks for managing data and AI. This establishes a
virtuous cycle of data creation and consumption, because
quality is always improving.
They don’t rely on unverified or biased data to make decisions
and instead take steps such as using AI itself to detect biased
algorithms. Only40%ofLaggardsensuredataquality,but90%
ofLeadersdo.Andwhilejust54%ofLaggardscontinueto
enrichtheirdata,90%ofLeadersaredoingso.(SeeFigure10)
As a result, 94% of Leaders trust that the data at their disposal
is reliable enough to drive business change, compared with
64% of Laggards. Misuse of employee or customer data can
result in a very costly loss of trust, and incorrect decisions
borne of bad data and analytics.
AI must gain the trust and confidence of the people who use it
to avoid the risk of adverse effects on business performance,
brand reputation and regulatory compliance. Ninety-four
percent of Leaders have a systematic way of managing AI in a
responsible/ethical manner, compared to 49% of Laggards.
Bonnier AB, a large media group with more than 180
companies, wanted to achieve full compliance with the
European Union’s General Data Protection Regulation
(GDPR)—a tall order, given that each of these companies
managed its own IT systems.5
Against a tight timeline, Bonnier AB implemented an
automated solution for GDPR compliance that included
advanced pattern-matching and machine learning techniques
to automatically discover personal data across its systems.
It also brought together the company’s disparate data
sources and deployed a machine-led compliance solution
to help two of its key business units achieve compliance
at speed and scale.
Now Bonnier can scan personal data throughout the data
lifecycle. It is also able to use powerful visualization of
Personally Identifiable Information (PII) through Knowledge
Graphs to unlock deep insights from its data landscape. These
insights enable the company to develop new offerings, reduce
inefficiencies and find new growth opportunities—turning a
compliance-led data program into a competitive advantage.
03 Recognize data as being both an asset and a liability
0
20
40
0
20
40 94%
90%
RS
%
LEADERS
94%
LAGGARDS
40%
LAGGARDS
44%AGGARDS
30%
0
20
40
60
80
100
AGGARDS
30%
LAGGARDS
47%
of Leaders
continue to
enrich their data.
Figure 10
20Future Systems
ACT LIKE THE TOP 10%
Leaders have clear visibility into company-wide technology investments.
For example, 94% of them systematically track return on investments in
automations across the organization, compared to only 47% of Laggards.
(See Figure 11)
Leaders work toward business alignment – a key stepping stone for
innovation transfer—by breaking down barriers between IT and other
departments. They also establish innovation centers, creating pipelines for
innovation transfer. For example, they might consider how improvements
in machine-learning-driven sales and customer relationship technology
could be used to predict and preempt employee turnover.
A health insurance company, for instance, is using live dashboards
to track bots and automated activities running across their portfolio
of businesses. The visibility allows them to calculate the benefits of
these investments in real-time—for example, by knowing that one
bot saves 15 minutes of someone’s time every time it runs, which is
200 times per week.
The company can also identify new opportunities to expand their
automation program. And perhaps the most intangible yet crucial benefit
of the dashboards is their power as a visualization tool to persuade non-
believers, softening the resistance people have to any kind of culture
change and paving the way for greater automation adoption.
04 Manage technology investments well
— across the enterprise
Figure 11: 94% of Leaders systematically track return on
investments in automation across the
organization, compared to only 47% of Laggards.
Leaders track returns on automation
0 0
0
20
40
60
80
100
LEADERS
97%
LEADERS
94%
40%
0
30%
0
20
40
60
80
100
LAGGARDS
30%
LAGGARDS
47%
21Future Systems
ACT LIKE THE TOP 10%
05 Find creative ways to nurture talent
Leaders understand that investing in talent is the best
way to advance Future Systems. As these systems
evolve, so must the IT workforce. In fact, a workforce
immersed in yesterday’s technologies is one of the
biggest obstacles to creating the expansive, flexible,
human-centric systems necessary for success.
Our survey respondents believe that without some
retraining, 52% of their IT workforce’s skills and almost
half (47%) of their non-IT workforce’s skills will be
obsolete in three years.
Leaders are far outpacing Laggards in skills training:
They use experiential learning at three times the rate of
Laggards (73% versus 24%) and they launch
apprenticeship programs at more than double the rate of
Laggards (79% to 36%). Eighty-seven percent of Leaders
are using AI and advanced analytics to personalize
learning, predict skills needs and match workers’ skill
requirements with appropriate training modules. Only
35% of Laggards use these techniques.
(See Figure 12)
A large utilities company is currently exploring how
3D, Extended Reality and AI technologies can help
nuclear fleet operators to train their powerplant
personnel in any scenario, at any time.
With VR, they can design training scenarios and
simulations that would otherwise be too inaccessible,
expensive or dangerous if carried out in the real world. This
kind of simulation is also useful in emergency response
planning in large, complex sites like shopping malls and
theme parks. The human-like interaction with technology
can make a notable impact, not just by training workers but
by making facilities safer for everyone.
Leaders also make sure their talent is not afraid to
experiment and present non-traditional ideas—
important components of learning and growing. Eighty-
four percent of Leaders have fostered a fail-fast culture,
for example, versus only 44% of Laggards.
of Leaders use
AI and advanced
analytics to
personalize
learning.
0
20
40
0
20
40 94%
90%
9
7
LEADERS
94%
LAGGARDS
40%
LAGGARDS
44%RDS
%
0
20
40
60
80
100
RDS
%
LAGGARDS
47%
87%
Figure 12
22Future Systems
ACT LIKE THE TOP 10%
Figure 13: Across the world, companies cite architecture flexibility as the biggest of four barriers to innovating
at scale. Respondents were asked about their effectiveness in addressing each.
Architecture is the biggest barrier to innovating at scale
0%
50%
60%
70%
80%
90%
100%
France
Japan
Sw
itzerland
Singapore
C
anada
G
erm
anyN
etherlands
A
ustralia
U
nited
K
ingdomSouth
A
fricaU
nited
States
Spain
Italy
Brazil
C
hina
M
alaysia
Indonesia
Thailand
India
Philippines
Technology Adoption Architecture FlexibilitySystem Trust Organizational Transaction Costs
Effectiveness
23Future Systems
ACT LIKE THE TOP 10%
OURPLAN,
YOURMOVE
Spending money on the latest
technologies and working hard to solve
problems as they arise is simply not
enough to get to the top in today’s fiercely
competitive business environment.
24Future Systems
Though they might both possess knowledge,
talent and ambition to spare, the distance
between the Leaders and Laggards is huge:
Leaders have twice the revenue growth of
Laggards, who could miss out on up to 46%
of their annual revenues by 2023 if they
don’t change.
To scale innovations repeatedly and grow twice as fast as others, companies have to
depart from adopting technologies as point-solutions. Instead of a patchwork of
technologies, they must evolve future systems by cultivating the mindset and methods
of the top 10%, right now. Those that wait will find it increasingly difficult to catch up, as
new technologies proliferate and the pace of innovation accelerates.
Leaders already enjoying a considerable head start will not be standing still. The
systems they have in place are specifically designed to not only accommodate
innovations in technology, but also scale them across the enterprise. The race is not to
arrive to some fixed endpoint in the future, but to build boundaryless, adaptable and
radically human systems for the future.
25Future Systems
OUR PLAN YOUR MOVE
NOWISTHETIMETOMAKEYOURMOVE
TOFUTURESYSTEMS.HERE’SHOW:
		Boundaryless
1.	Break through the cloud ceiling
Cloud isn’t the finish line—it’s the
starting point.
2.	Design for disruption
Insulate against change by leveraging
flexible architectures and designing
interoperable systems.
3.	Decouple the entire IT stack
Remove unnecessary dependencies
across all layers of the solution stack.
4.	Explore new, unconventional
business models
When boundaries disappear,
new partnerships open up to
solve significant problems.
	Adaptable
1.	Stage an architectural intervention
Let go of old ways of working
to create architectures that can
constantly flex and adapt.
2.	Identify the biggest friction
points in your business
Technologies like AI, blockchain, and
microservices can help solve your biggest
business challenges.
3.	Understand the need for responsible AI
Adaptive systems must gain the trust and
confidence of the people they work with
and for.
4.	Let data be your captain
Start with quality data and apply a data-
centric approach to your most important
business decisions.
	 Radically Human
1.	Master human-centric development
Put humans at the center of
your design processes, recognizing
that data and technology alone can’t
solve every problem.
2.	Break down organizational
and cultural barriers
Scrutinize how organizational
or cultural boundaries may hinder
speed and accountability. Embed an
end-to-end ownership culture from
initial idea to user experience.
3.	Don’t wait to experiment
with emerging technologies
Experimenting early is the best way
to start socializing and imagining
the commercial possibilities of
emerging technologies.
26Future Systems
ABOUTTHERESEARCH
We employed a multi-method research approach
for Future Systems. Specifically, the research
program included surveys, interviews and case
study research, and economic and machine
learning modelling for diagnostics.
Our research, and that of our partners in our
ecosystem, employs ethical and responsible
research methods. Respondents reveal their
identities voluntarily, we anonymize all data from
companies in our data set, and report results in
aggregate. We commit to not using the data
collected to personally identify the respondents
and/or contact the respondents.
1. Survey
The Accenture Future Systems Survey, 2019, is the
largest survey of C-Suite executives on enterprise
systems. The survey collected data on:
a.	 Technology adoption
b.	Application of technologies at scale across
organizational processes
c.	Organizational and cultural readiness to adopt
and create symbiotic systems of technologies
d.	Multiple measures of financial and operational
performance
The graphic opposite summarizes
the survey demographics.
$2 to $4.9
billion
$500 million to
$1.9 billion
$5 to $9.9
billion
Over $25 billion
$20 to $24.9 billion
$15 to $19.9 billion
$10 to $14.9
billion
8356
companies,
global
50% IT,
50% non-IT,
C-level only
Our dataset contains a range of
companies from very high-growth (16%+)
to those witnessing declining revenue
and margins, and many in between.
Average Revenue growth: 6.4%
Average gross margin growth: 5.7%
Average employee growth: 4.6%
Company Size
Financial Services
Banking (524)
Capital Markets (515)
Insurance (515)
Communications
Media  Technology
Media  Comms. (515)
Telecommunications (351)
High Tech (350)
Software  Platforms
(350)
Resources
Utilities (515)
Energy (Inc. Oil  Gas)
(350)
Metals  Mining (350)
Chemicals (350)
Health  Public Service
Health (356)
Public Services (515)
US Federal (353)
Products
Retail (351)
Consumer Goods
 Services (521)
Travel (350)
Industrial
Equipment (358)
Life Sciences (515)
Automotive (352)
Australia (538)
Brazil (388)
Canada (313)
China (1012)
France (395)
Germany (543)
Italy (366)
India (246)
Japan (631)
Netherlands
(155)
South Africa
(155)
Singapore (40)
Thailand (61)
Malaysia (12)
Philippines (20)
Indonesia (43)
Spain (396)
Switzerland
(209)
UK  (579)
USA (2254)
20 Industries 20 Countries (HQ)
27Future Systems
ABOUTTHERESEARCH
Inference Approach
First, we define and group companies into Future System
Leaders and Laggards. That is, we identify companies that
are ahead in terms of their evolution to Future Systems
and those that aren’t, or, are evolving slowly. We then
investigate if Future Systems leadership is correlated to
financial performance.
Definition of Leaders and Laggards:
We create a Future Systems Score, composed
of three components: 1. Technology adoption. 2.
Extent of technology adoption across organizational
processes, and 3. Organizational and cultural
readiness for technology adoption.
The top 10% of the companies on this score we called
Future Systems Leaders, or simply Leaders and the bottom
25% (Future System) Laggards. The rest of the 65%
of companies in our sample sit somewhere between
Leaders and Laggards.
Calculation of the Performance difference
Using the definitions above of Leaders and Laggards,
we compare their financial performance—measured by
average revenue growth—and calculate the difference in
performance between Leaders and Laggards. To ensure
that the results were robust, we calculate the difference in
performance—the performance gap—in every industry.
The results are robust throughout.
2.	Interviews and Multiple Case Studies
We triangulate our findings from the large-scale primary
data from the survey with multiple case studies. Overall, we
collected through secondary research and interviews about
30 case studies focusing on issues organizations are facing
because of their current IT stack and the evolution of
companies toward Future Systems.
3.Economic Modelling and
Machine Learning
We use economic and machine learning (decision tree)
models for arriving at prescriptive insights. We used an
ordered logit model to study if the adoption of specific
technologies and their application to specific processes
can increase the probability of higher revenue and growth
rates. In addition, to understand the cultural factors of
importance, we ran a machine learning based decision tree
classifier and explored correlations between Leaders’
Future Systems score with aggregate indices for the
company’s technology adoption and process
transformation indices.
The regression below summarizes our (simplified)
modelling approach:
Revenue= α + β1*technologies adopted + β2*processes
transformed + β3*technology*process + β4*control
variables +μ
Where, β1- β3 are the key coefficients of interest and μ
is the error term of the regression
28Future Systems
REFERENCES ACKNOWLEDGEMENTS
The authors would like to thank Prashant Shukla, PhD, the
Research Lead for Future Systems, as well as Surya
Mukherjee and David Lavieri from Accenture Research
for their contributions to this report.
1.	 https://www.apqc.org/pcf
(13 critical business processes as defined by APQC)
2.	 https://www.technologyreview.com/s/608103/
ant-financial-chinas-giant-of-mobile-payments-
is-rethinking-finance-with-ai/
3.	 https://rctom.hbs.org/submission/ant-
financial-pioneering-china-fintech-with-
machine-learning/
4.	 https://www.businesswire.com/news/
home/20180619006514/en/Ant-Financial-
Share-Full-Suite-AI-Capabilities
5.	 https://www.accenture.com/in-en/case-
studies/technology/success-bonnier-gdpr-
compliance-automation
29Future Systems
About Accenture
Accenture is a leading global professional services
company, providing a broad range of services and
solutions in strategy, consulting, digital, technology and
operations. Combining unmatched experience and
specialized skills across more than 40 industries and all
business functions—underpinned by the world’s largest
delivery network—Accenture works at the intersection of
business and technology to help clients improve their
performance and create sustainable value for their
stakeholders. With 492,000 people serving clients in
more than 120 countries, Accenture drives innovation to
improve the way the world works and lives.
Visit us at www.accenture.com
About Accenture Research
Accenture Research shapes trends and creates data
driven insights about the most pressing issues global
organizations face. Combining the power of innovative
research techniques with a deep understanding of our
clients’ industries, our team of 300 researchers and
analysts spans 20 countries and publishes hundreds of
reports, articles and points of view every year. Our
thought-provoking research—supported by proprietary
data and partnerships with leading organizations, such
as MIT and Harvard—guides our innovations and allows
us to transform theories and fresh ideas into real-world
solutions for our clients. For more information, visit
www.accenture.com/research
Copyright © 2019 Accenture.
All rights reserved. Accenture and its logo are registered
trademarks of Accenture.

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Scale Innovation and Achieve Value with Future Systems

  • 1. How to scale innovation and achieve full value with Future Systems FULL VALUE. FULLSTOP Provocative thinking, transformative insights, tangible outcomes
  • 2. Dr. Bhaskar Ghosh is group chief executive—Accenture Technology Services. In this role, he directs strategy and investments for Accenture Technology Services, and leads platforms, products, global technology delivery and intelligent cloud and infrastructure services. His focus is to enable enterprises to embrace digital disruption, drive growth through innovation and reinvent their application portfolio. Ghosh and his organization help enterprises transform their business through the adoption of New IT, spanning strategy, technologies, architectures, platforms, methods, organization and operating models. Under Ghosh’s leadership, Accenture Technology Services has rapidly rotated to the New. More than 180,000 Accenture Technology people have been trained around the world in New IT, including automation, Agile development and intelligent platforms. Ghosh has been awarded patents in multiple areas, including IT automation. He is a member of the Accenture Global Management Committee. Twitter:@DrBhaskarGhosh Adam Burden is Accenture’s Chief Software Engineer. He leads Accenture’s Intelligent Software Engineering Services organization, which includes 35,000+ software and system engineers. In this role, he oversees strategy and operations, client services in the areas of technical architecture and custom systems engineering and the incubation of next- generation capabilities related to blockchain, augmented reality and other disruptive technologies. During his 27-year career at Accenture, Burden has been part of numerous pioneering engagements, including serving as lead architect for the world’s largest wholesale electricity market. He is a certified Solution Architect and Master Technical Architect with specializations in legacy modernization, cloud native applications, DevOps, automation engineering and enterprise architecture. He has also held both client and technical account leadership positions. Twitter:@adampburden H. James Wilson is managing director of IT and Business Research at Accenture Research, where he leads global research programs on the impact of technology on work. Wilson is co-author of the best-selling book Human + Machine: Reimagining Work in the Age of AI (Harvard Business Review Press). He is author or contributing author of eight books on the impact of technology on work and society, including most recently, AI, Analytics, & The New Machine Age (HBR Press 2019) and How to Go Digital (MIT Press 2019). Wilson wrote “The Jobs Artificial Intelligence Will Create,” MIT Sloan Management Review’s #1 Most-Read article of the year, and is a longtime contributor to The Wall Street Journal and HBR. His latest HBR article is “The Future of AI Will Be About Less Data, Not More.” Twitter:@hjameswilson Abouttheauthors BhaskarGhosh AdamBurden JamesWilson 2Future Systems
  • 3. 80% of success is just showing up, right? Think again. Today’s C-suite is making significant investments in new technologies. Yet they are not necessarily achieving full value. They’re deploying technologies in pockets, or silos, of their organizations, without a strategy for scaling the innovation from these technologies across the enterprise. Unable to scale their innovation, they’re not realizing the full benefits of their technology investments. This is creating what we call the innovation achievement gap—the difference between potential and realized value from technology investments. For executives who are under relentless pressure to change and grow, it’s frustrating to make these investments and still fall behind competitors. Simply showing up—adopting the technologies—does not guarantee success. To crack the code on scaling innovation and closing the achievement gap, we collected data from companies across three categories: 1) the adoption of key technologies, 2) the penetration of technologies adopted and 3) organization and culture. We then scored them on these factors, calling companies in the top 10% “Leaders,” and those in the bottom 25%, “Laggards.” Just how successful are the Leaders compared to the Laggards? Leaders are seeing more than 2X the revenue growth of Laggards. Laggards often adopt technologies as individual point solutions without a strategy for enabling systems that can achieve enterprise- wide, game-changing innovation. While they might have pockets of brilliance, they can’t maximize the value achieved. EXECUTIVE SUMMMARY Strategic use of Future Systems can give your company a clear advantage 3Future Systems
  • 4. Even worse, the lost potential is snowballing: In 2018, Laggards had 15% in foregone annual revenue. If they don’t change, they could miss out on a staggering 46% of their annual revenue in 2023. And it’s not just those with legacy systems that are struggling; not all digital native companies are realizing the full value from technology adoption, either. What’s so special about those in the top 10%? Their mindset, for starters: Crucially, Leaders think in terms of systems and not individual technologies. With a clear vision, they are evolving to what we call Future Systems, or boundaryless, adaptable and radically human enterprise systems capable of scaling innovations repeatedly and making organizations strategically agile. Their methods are different, too: Leaders adopt earlier, reinvest more frequently and acquire technology in a more deliberate manner. For instance, they install data streaming platforms, or event hubs, that can process millions of actions in real time before they adopt AI. Leaders have directed a greater percentage of their IT budget toward innovation over the past five years and expect to accelerate investment in innovation faster than Laggards over the next five. Leaders concentrate not only on technology adoption, but also on its penetration across the enterprise, to enable innovation transfer and a nimbler response to market conditions. For example, they ensure that cloud services permeate across the enterprise and treat data—across organization silos—as a corporate asset. Finally, Leaders carefully consider how new technologies will interact with the people and processes already in place in their organization, and they nurture talent in creative ways. While some leaders are born, others are made: Everyone can emulate the mindset and methods of the top 10% to get the value they expect from their significant investments in technology. 4Future Systems EXECUTIVE SUMMARY
  • 5. Through our in-depth analysis of the data we collected, we’ve been able to pinpoint the many ways in which leaders stand out in their approach to enterprise technology and how they use it to innovate at scale and drive long-term financial performance. CLICKTHE FUTURE INTOPLACE 5Future Systems 5Future Systems
  • 6. Imagine an electrician who installs a new gadget for a customer, such as a video doorbell. If he doesn’t figure out a way to integrate it with other devices in the house, like the security system or the family’s cell phones, it won’t be possible to achieve the benefits of a truly connected home. A similar scenario plays out on a much grander scale across global organizations. CIOs, CDOs and CEOs understand technology’s significance to their company’s strategy and growth. So, in every industry, they’re adopting technology that spawns new capabilities. But despite these substantial investments, many still struggle to transfer innovations across the enterprise and realize their potential. It’s causing an innovation achievement gap—the difference between potential and realized value from technology investments. Why is it that technology is everywhere, but value is not? Value is difficult to capture in part because of the enormous challenge of innovating with legacy systems. The conventional IT “stack”—spanning software applications, data, hardware, telecommunications, facilities and data centers—wasn’t built for today’s cloud-oriented world of analytics, sensors, mobile computing, artificial intelligence, the Internet of Things (IoT), and billions and billions of devices. Nor was it designed to adapt to the world of tomorrow, whatever that might be. But it’s not the case that digital native companies are closing their innovation achievement gaps, while legacy companies aren’t. While they might have started in the cloud, some digital native companies haven’t adapted their systems at the pace of technological change. In every kind of company, growth depends on a systematic and sequential adoption strategy in line with Future Systems— enterprise systems capable of scaling innovations repeatedly and giving organizations the strategic agility they need to stay ahead of their competitors. 6Future Systems THE INNOVATION ACHIEVEMENT GAP
  • 7. 0 2 4 6 8 10 LEADERS 9% LAGGARDS 4% WORK THESYSTEMS How, then, can companies maximize their investment in technology? To crack the code, we conducted our largest enterprise systems survey ever, encompassing C-level executives (half in IT and half in business) at more than 8,300 companies across 20 industries and 20 countries. We collected data on companies’ IT systems strategies—specifically, about 1) the adoption of key technologies, 2) the penetration of technologies adopted and 3) organization and culture. Then we scored them on these dimensions, calling companies in the top 10% Leaders, and those in the bottom 25%, Laggards. By tracking companies’ performance indicators between 2015 and 2023 (projected), we can see the relationship between technology adoption and achieved, or expected, value. The difference is staggering: Leaders grow revenue at more than twice the rate of Laggards. (See Figure 1) In 2018, Laggards had what amounted to 15% foregone annual revenue. If they don’t change, they could miss out on as much as 46% of their annual revenue in 2023. (See Figure 2) Leading companies are achieving significantly more value with the help of Future Systems A staggering difference in revenue growth Figure 1: Leaders—those that are evolving to Future Systems—are growing revenue at more than double the rate of Laggards. Based on average self-reported annual growth rates for 2015-2018. 7Future Systems
  • 8. Leaders are poised to extend their advantage over the next five years 2015 $10bn $12 bn $14 bn $16 bn $18 bn $20 bn $22 bn 2016 2017 2018 2019 2020 2021 2022 2023 $20 Billion $3Billion has already been foregone Gap = 46% Leaders Growth Rate Laggards Growth Rate Revenue(billions) Still stands to be lost in the next 5 years Figure 2: An illustrative model of the difference between Leaders and Laggards’ revenue growth is projected to widen. Companies failing to evolve to Future Systems could miss out on as much as 46% of their annual revenue by the year 2023. Leaders’ expected growth is represented by the purple line and Laggards the blue line (self-reported). For sake of simplicity, we illustrate the opportunity cost of not evolving to Future Systems using a company with $10 billion in revenue in 2015. Your specific opportunity cost depends on your revenue in 2015. For instance, if your revenue was $5 billion in 2015, you stand to forgo as much as $10 billion between now and 2023. 8Future Systems WORK THE SYSTEMS
  • 9. THINKLIKE THETOP10% 01 Leaders invest more in innovation. 02 Leaders don’t just adopt technology, they create systems. 03 Leaders scale technology innovation across the enterprise. 04 Leaders understand that Future Systems must be boundaryless, adaptable, radically human. Discoverwhatleadersdodifferently 9Future Systems
  • 10. HowhastheproportionofyourITbudgetdedicatedtoinnovation(andnot operatingcosts)changed?Howdoyouexpectittochangeinthefuture? 0 20 40 60 80 100 0 20 40 60 80 100 LAGGARDS LEADERS LAGGARDS LEADERS 2015-2019 2019-2023 Increased Stayedthesame Decreased 15% 21% 64% 2% 5% 93% 9% 17% 74% 1% 2% 97% HowhastheproportionofyourITbudgetdedicatedtoinnovation(andnot operatingcosts)changed?Howdoyouexpectittochangeinthefuture? 0 20 40 60 80 100 0 20 40 60 80 100 LAGGARDS LEADERS LAGGARDS LEADERS 2015-2019 2019-2023 Increased Stayedthesame Decreased 15% 21% 64% 2% 5% 93% 9% 17% 74% 1% 2% 97% Figure 3: Proportion of budget spent on innovation, now and expected. Leaders spend a much higher proportion of their IT budgets on innovation. And, expect to further increase their spend in the future. 0 20 40 60 80 LAGGARDS Increased Stay 21% 64% 0 20 40 60 80 100 LAGGARDS LEADERS Increased Stayedthesame 15% 21% 64% 2% 5% 93% 0 20 40 60 80 100 0 20 40 60 80 100 LAGGARDS LEADERS LAGGAR 2015-2019 2 Increased Stayedthesame Decreased 15% 21% 64% 2% 5% 93% 9% 17% 74% Leadersinvestmoreininnovation 10Future Systems THINK LIKE THE TOP 10%
  • 11. Leaders have a deliberate stance toward technology adoption and a clear vision for what their companies’ future systems should look like. Leaders have directed a greater percentage of their IT budget toward innovation over the past five years and expect to accelerate investment in innovation faster than Laggards over the next five. (See Figure 3) While technology adoption is pervasive among all the companies surveyed, Leaders show a consistently higher rate than others. (See Figure 7) They tend to adopt new technologies earlier, develop higher levels of expertise, and prioritize and sequence implementations in optimal ways. In doing so, they create systems rather than point technology solutions. For example, Leaders adopt AI, a fundamental general-purpose technology, at a rate of 98%. And even more revealing, before implementing AI, Leaders set up complementary technologies such as data lakes (a system or repository of data stored in its raw format) and cloud services (any service made available to users on demand via a cloud computing provider’s servers). Laggards, on the other hand, have faith in a “fast follower” approach, taking on technology somewhat haphazardly leading to a patchwork across the organization. Only 42% of Laggards have implemented AI, for instance. Often following fads, they put in place technologies as individual point solutions without a vision for how technologies will complement each other, and without a plan for cultivating enterprise systems. As a result, when a potentially game-changing innovation comes along, they cannot effectively scale it. 11Future Systems THINK LIKE THE TOP 10%
  • 12. For example, a major apparel manufacturer developed a wearable device to help users track their exercise but failed to generate meaningful insights from the data collected. That would have required building a machine learning-based analytics platform that could harness the data to provide real-time predictive analytics that customers could use. Because the company opted not to, sales were limited. It was forced to cease production, and eventually stop offering support services on apps for existing customers. While Laggards don’t move beyond innovating in pockets, Leaders set their sights on innovating at scale. Because of that perspective, they show the highest levels of penetration across the 13 critical business processes our survey covered.1 In fact, Leaders target 3 times more business processes with technologies they adopt than Laggards. As a result, their systems allow for a seamless flow of product and service innovations from one process to another Leaders believe that humans and machines can bring out the best in each other and that innovations within the organizations as well as in their ecosystem of partners can be scaled. It’s one reason they’re motivated to build Future Systems that are: 01 Boundaryless 02 Adaptable 03 Radically human 12Future Systems THINK LIKE THE TOP 10%
  • 13. 01 Boundaryless: Boundaryless systems take advantage of blurring boundaries to create new spaces where ideas and partnerships can flourish. Historically, the components of the IT-stack—database, applications, and infrastructure—have been treated as independent entities. These days, rigid divisions are fading. More than 75% of our respondents say that systems are breaking down the boundaries between data, infrastructure and applications, between humans and machines, and even between competing organizations. (See Figure 4) Systems which are boundaryless utilize the cloud, have a uniform approach to data, security and governance, and have established paths for exploring unconventional partnerships—giving businesses almost infinite opportunities to improve how they operate. say systems are breaking down the boundaries between data, infrastructure and applications, between humans and machines, and even between competing organizations. 90% 75% 44% Figure 4 13Future Systems THINK LIKE THE TOP 10%
  • 14. 02 Adaptable: Adaptable systems learn, improve, and scale by themselves, eliminating the friction that hinders business growth and helping humans make better decisions, much faster. Powered by advances in cloud, data, and intelligent technologies, those with adaptable systems aren’t fazed by change. The companies we surveyed understand how self-learning systems enable strategic agility: Eighty-three percent want systems that allow them to pivot to new directions. Key markers of adaptable organizations include enterprise-wide use of automation and AI, a continuous data supply chain in the cloud to power AI in the enterprise, and a stable but modular, flexible, decoupled and constantly evolving architecture. (See Figure 5) 0 20 40 60 80 100 0 20 40 60 80 100 LEADERS 80% LEADERS 84% LEADERS 95% 80 100 LAGGARDS 40% LAGGARDS 44% 0 20 40 60 80 100 LAGGARDS 30% 80 100 Leaders believe decoupling enables adaptable systems Figure 5: More than 80% of Leaders agree that decoupling the entire IT stack is a key step toward adaptable systems, compared to less than 40% of the Laggards. 14Future Systems THINK LIKE THE TOP 10%
  • 15. Radically human systems talk, listen, see and understand just like we do, bringing elegant simplicity to every human- machine interaction. A full 80% of our survey respondents believe systems will interact seamlessly with humans, and 78% think these systems will embrace the way humans work. Radically human companies empower people to break down organizational barriers. Ninety-one percent of Leaders are extremely effective at working with cross-department teams that combine IT and business to create customer- centric solutions, compared with only 41% of Laggards. (See Figure 6) Thanks to technologies such as natural- language processing, computer vision, voice recognition, and machine learning, these systems are becoming less artificial and more intelligent, making them easier to interact with and more efficient. Leading radically human companies have a structured, fail-fast approach to evaluate the potential of emerging technologies, they apply responsible AI frameworks to build human- machine trust and they use human-centric design as a standard practice. Companies that can think in terms of systems, as opposed to point-solutions, stand to outpace others in terms of both revenue and margin growth. It starts with envisioning their own version of boundaryless, adaptable and radically human future systems. 03 Radically human: 0 20 40 60 80 100 RS % LEADERS 84% 94% 90% 91% 75% S % LAGGARDS 40% LAGGARDS 44% of Leaders are extremely effective at workingwithcross- departmentteamsthat combineITandbusiness to create customer- centric solutions. Figure 6 15Future Systems THINK LIKE THE TOP 10%
  • 16. 92% 100% 99% 97% 99% 97% 97% 98% 98% 98% 98% 98% 98% 68% 59% 59% 54% 52% 51% 50% 46% 41% 42% 48% 41% 35% Big data analytics Streaming/real-time data Cloud SaaS/Software as a service Internet of Things (IOT) Cloud IaaS/Infrastructure as a service Cloud PaaS/Platform as a service Data Lakes (data repository) Open Source Cloud Native Applications (custom) Top-Down AI (E.g. expert systems, logic and inference engines) Hybrid Cloud Bottom-Up AI (E.g. deep learning, machine learning) NoSQL databases (key-value, document, graph) 96% 98% 94% 93% 95% 97% 92% 95% 94% 97% 97% 95% 96% 90% 30% 29% 34% 41% 32% 27% 36% 32% 31% 27% 25% 25% 25% 37% Distributed logs/event hubs DevOps automation/CI/CD Blockchain Robotics Edge/Fog Computing Microservice Architectures RPA (Robotic Process Automation) Extended Reality (AR/VR/MR) Serverless Computing React/Event-driven architectures DevSecOps FaaS/Functions as a Service Containers, Docker, Kubernetes 3D Printing Laggards Leaders Figure 7: Technology Adoption Rates, Leaders and Laggards. Figures here show rates of adoption of specific technologies in aggregate. Leaders also, by and large, adopt these technologies earlier than Laggards. Leaders master technology adoption 16Future Systems THINK LIKE THE TOP 10%
  • 17. ACTLIKE THETOP10%There’s method in the mindset Companies have to put their mindset into practice with the right methods, honing the technology and capabilities that will help them rise above the rest. These behaviors come as second nature to some companies, but others can learn to implement them. Here are five key actions Leaders consistently take to close their innovation achievement gaps: 01 Adopt technologies that make the organization fast and flexible. 02 Get grounded in cloud computing. 03 Recognize data as being both an asset and a liability. 04 Manage technology investments well—across the enterprise. 05 Find creative ways to nurture talent. 17Future Systems
  • 18. Leaders are moving to decoupled data, infrastructure and applications that enable greater flexibility and a faster-moving IT culture. Eighty-three percent of them agree that it’s important to decouple data from legacy infrastructure, compared with only 37% of Laggards. Laggards are also far behind in the adoption of DevOps, automation and continuous integration/continuous deployment, with a 29% adoption rate compared with 98% of Leaders. All of these technologies and approaches are designed to help companies eliminate dependencies in their systems and processes, which in turn makes them more agile. Across the world, companies cite architecture flexibility as one of the biggest barriers to innovating at scale. (See Figure 13) Leaders’adoptionofcriticaltechnologiesthatallow decouplingoutpacesthatofLaggardsbyamassive margin:97%to30%. These technologies include microservice architectures (enabled by a suite of tools that break applications into simple, discrete services), containers (a way to package an application so it can be run in isolation from other processes) and Kubernetes (an open-source container-orchestration system for automating application deployment, scaling and management). (See Figure 8) Even digital native companies are faced with the need to update monolithic enterprise architectures. When one travel industry disruptor first launched their business just over a decade ago, speed to market was paramount, so getting the right long-term, scalable architecture in place wasn’t a priority. Then the company faced the challenge of scaling its platform to meet the demands of a growing customer base and geographic expansion. As part of a decoupling initiative, it migrated its platform to microservices, which allows the company to rapidly respond to change and add new features as it experiences explosive growth. Leaders opt for flexible, uniform and scalable architectures capable of responding to market demands, like seamless customer payments. Laggards, on the other hand, find it difficult to move away from rigid IT architectures, which leaves them unable to maximize investments in innovation. Leaderscreatearchitectures andprocessesbuiltforchange 0 20 40 60 80 100 LEADERS 97% 0 30% LAGGARDS 30% 01Adopttechnologiesthatmaketheorganizationfastandflexible Figure 8: Leaders’adoptionofcriticaltechnologies thatallowdecouplingoutpacesthatof Laggardsbyamassivemargin. 18Future Systems ACT LIKE THE TOP 10%
  • 19. Cloud computing is essential to Future Systems because it enables companies to successfully utilize other technologies, including AI and analytics. As such, Leaders treat the cloud as a catalyst for innovation. Ninety-five percent of them have adopted sophisticated cloud services like serverless computing, compared to 30% of Laggards, who tend to see the cloud as a cost-effective “data center.” (See Figure 9) Alibaba Group’s financial arm, Ant Financial, for example, is using cloud and AI to offer a range of services in mobile payments, banking, insurance and wealth management.2 Cloud services and AI are embedded across multiple processes and product lines—adapting to each as needed. As a result, the company can instantly assess the credit risks of underserved people who may not have bank accounts, and even target them with loan offers. It can also enable customers to snap photos after an automobile accident to file claims with their insurers in just a few seconds.3 Ant has transferred innovations and lessons at scale across the organization. And it’s gone even further, offering its AI capabilities to external ecosystem partners. Caifu Hao, an AI-powered corporate account on the Ant platform, for instance, has brought tangible benefits to 27 fund management companies.4 The funds have reported a reduction in overall costs by 50%, a ten-fold increase in daily visitors and a three-fold increase in investments by returning customers.4 02 Get grounded in cloud computing Leaders adopt sophisticated cloud services 0 20 40 60 80 100 LEADER 80% LEADERS 95% 100 L 4 0 20 40 60 80 100 LAGGARDS 30% 100 Figure 9: 95% percent of Leaders have adopted sophisticated cloud services compared to 30% of Laggards. 19Future Systems ACT LIKE THE TOP 10%
  • 20. Out of the 28 technologies we surveyed companies about, respondents ranked “technologies associated with real-time data capture and analysis” as the most important to transforming/improving their business processes. Again, Leaders are ahead of their peers. Leaders ensure data quality, creating security measures that anticipate threats and building ethically responsible frameworks for managing data and AI. This establishes a virtuous cycle of data creation and consumption, because quality is always improving. They don’t rely on unverified or biased data to make decisions and instead take steps such as using AI itself to detect biased algorithms. Only40%ofLaggardsensuredataquality,but90% ofLeadersdo.Andwhilejust54%ofLaggardscontinueto enrichtheirdata,90%ofLeadersaredoingso.(SeeFigure10) As a result, 94% of Leaders trust that the data at their disposal is reliable enough to drive business change, compared with 64% of Laggards. Misuse of employee or customer data can result in a very costly loss of trust, and incorrect decisions borne of bad data and analytics. AI must gain the trust and confidence of the people who use it to avoid the risk of adverse effects on business performance, brand reputation and regulatory compliance. Ninety-four percent of Leaders have a systematic way of managing AI in a responsible/ethical manner, compared to 49% of Laggards. Bonnier AB, a large media group with more than 180 companies, wanted to achieve full compliance with the European Union’s General Data Protection Regulation (GDPR)—a tall order, given that each of these companies managed its own IT systems.5 Against a tight timeline, Bonnier AB implemented an automated solution for GDPR compliance that included advanced pattern-matching and machine learning techniques to automatically discover personal data across its systems. It also brought together the company’s disparate data sources and deployed a machine-led compliance solution to help two of its key business units achieve compliance at speed and scale. Now Bonnier can scan personal data throughout the data lifecycle. It is also able to use powerful visualization of Personally Identifiable Information (PII) through Knowledge Graphs to unlock deep insights from its data landscape. These insights enable the company to develop new offerings, reduce inefficiencies and find new growth opportunities—turning a compliance-led data program into a competitive advantage. 03 Recognize data as being both an asset and a liability 0 20 40 0 20 40 94% 90% RS % LEADERS 94% LAGGARDS 40% LAGGARDS 44%AGGARDS 30% 0 20 40 60 80 100 AGGARDS 30% LAGGARDS 47% of Leaders continue to enrich their data. Figure 10 20Future Systems ACT LIKE THE TOP 10%
  • 21. Leaders have clear visibility into company-wide technology investments. For example, 94% of them systematically track return on investments in automations across the organization, compared to only 47% of Laggards. (See Figure 11) Leaders work toward business alignment – a key stepping stone for innovation transfer—by breaking down barriers between IT and other departments. They also establish innovation centers, creating pipelines for innovation transfer. For example, they might consider how improvements in machine-learning-driven sales and customer relationship technology could be used to predict and preempt employee turnover. A health insurance company, for instance, is using live dashboards to track bots and automated activities running across their portfolio of businesses. The visibility allows them to calculate the benefits of these investments in real-time—for example, by knowing that one bot saves 15 minutes of someone’s time every time it runs, which is 200 times per week. The company can also identify new opportunities to expand their automation program. And perhaps the most intangible yet crucial benefit of the dashboards is their power as a visualization tool to persuade non- believers, softening the resistance people have to any kind of culture change and paving the way for greater automation adoption. 04 Manage technology investments well — across the enterprise Figure 11: 94% of Leaders systematically track return on investments in automation across the organization, compared to only 47% of Laggards. Leaders track returns on automation 0 0 0 20 40 60 80 100 LEADERS 97% LEADERS 94% 40% 0 30% 0 20 40 60 80 100 LAGGARDS 30% LAGGARDS 47% 21Future Systems ACT LIKE THE TOP 10%
  • 22. 05 Find creative ways to nurture talent Leaders understand that investing in talent is the best way to advance Future Systems. As these systems evolve, so must the IT workforce. In fact, a workforce immersed in yesterday’s technologies is one of the biggest obstacles to creating the expansive, flexible, human-centric systems necessary for success. Our survey respondents believe that without some retraining, 52% of their IT workforce’s skills and almost half (47%) of their non-IT workforce’s skills will be obsolete in three years. Leaders are far outpacing Laggards in skills training: They use experiential learning at three times the rate of Laggards (73% versus 24%) and they launch apprenticeship programs at more than double the rate of Laggards (79% to 36%). Eighty-seven percent of Leaders are using AI and advanced analytics to personalize learning, predict skills needs and match workers’ skill requirements with appropriate training modules. Only 35% of Laggards use these techniques. (See Figure 12) A large utilities company is currently exploring how 3D, Extended Reality and AI technologies can help nuclear fleet operators to train their powerplant personnel in any scenario, at any time. With VR, they can design training scenarios and simulations that would otherwise be too inaccessible, expensive or dangerous if carried out in the real world. This kind of simulation is also useful in emergency response planning in large, complex sites like shopping malls and theme parks. The human-like interaction with technology can make a notable impact, not just by training workers but by making facilities safer for everyone. Leaders also make sure their talent is not afraid to experiment and present non-traditional ideas— important components of learning and growing. Eighty- four percent of Leaders have fostered a fail-fast culture, for example, versus only 44% of Laggards. of Leaders use AI and advanced analytics to personalize learning. 0 20 40 0 20 40 94% 90% 9 7 LEADERS 94% LAGGARDS 40% LAGGARDS 44%RDS % 0 20 40 60 80 100 RDS % LAGGARDS 47% 87% Figure 12 22Future Systems ACT LIKE THE TOP 10%
  • 23. Figure 13: Across the world, companies cite architecture flexibility as the biggest of four barriers to innovating at scale. Respondents were asked about their effectiveness in addressing each. Architecture is the biggest barrier to innovating at scale 0% 50% 60% 70% 80% 90% 100% France Japan Sw itzerland Singapore C anada G erm anyN etherlands A ustralia U nited K ingdomSouth A fricaU nited States Spain Italy Brazil C hina M alaysia Indonesia Thailand India Philippines Technology Adoption Architecture FlexibilitySystem Trust Organizational Transaction Costs Effectiveness 23Future Systems ACT LIKE THE TOP 10%
  • 24. OURPLAN, YOURMOVE Spending money on the latest technologies and working hard to solve problems as they arise is simply not enough to get to the top in today’s fiercely competitive business environment. 24Future Systems
  • 25. Though they might both possess knowledge, talent and ambition to spare, the distance between the Leaders and Laggards is huge: Leaders have twice the revenue growth of Laggards, who could miss out on up to 46% of their annual revenues by 2023 if they don’t change. To scale innovations repeatedly and grow twice as fast as others, companies have to depart from adopting technologies as point-solutions. Instead of a patchwork of technologies, they must evolve future systems by cultivating the mindset and methods of the top 10%, right now. Those that wait will find it increasingly difficult to catch up, as new technologies proliferate and the pace of innovation accelerates. Leaders already enjoying a considerable head start will not be standing still. The systems they have in place are specifically designed to not only accommodate innovations in technology, but also scale them across the enterprise. The race is not to arrive to some fixed endpoint in the future, but to build boundaryless, adaptable and radically human systems for the future. 25Future Systems OUR PLAN YOUR MOVE
  • 26. NOWISTHETIMETOMAKEYOURMOVE TOFUTURESYSTEMS.HERE’SHOW: Boundaryless 1. Break through the cloud ceiling Cloud isn’t the finish line—it’s the starting point. 2. Design for disruption Insulate against change by leveraging flexible architectures and designing interoperable systems. 3. Decouple the entire IT stack Remove unnecessary dependencies across all layers of the solution stack. 4. Explore new, unconventional business models When boundaries disappear, new partnerships open up to solve significant problems. Adaptable 1. Stage an architectural intervention Let go of old ways of working to create architectures that can constantly flex and adapt. 2. Identify the biggest friction points in your business Technologies like AI, blockchain, and microservices can help solve your biggest business challenges. 3. Understand the need for responsible AI Adaptive systems must gain the trust and confidence of the people they work with and for. 4. Let data be your captain Start with quality data and apply a data- centric approach to your most important business decisions. Radically Human 1. Master human-centric development Put humans at the center of your design processes, recognizing that data and technology alone can’t solve every problem. 2. Break down organizational and cultural barriers Scrutinize how organizational or cultural boundaries may hinder speed and accountability. Embed an end-to-end ownership culture from initial idea to user experience. 3. Don’t wait to experiment with emerging technologies Experimenting early is the best way to start socializing and imagining the commercial possibilities of emerging technologies. 26Future Systems
  • 27. ABOUTTHERESEARCH We employed a multi-method research approach for Future Systems. Specifically, the research program included surveys, interviews and case study research, and economic and machine learning modelling for diagnostics. Our research, and that of our partners in our ecosystem, employs ethical and responsible research methods. Respondents reveal their identities voluntarily, we anonymize all data from companies in our data set, and report results in aggregate. We commit to not using the data collected to personally identify the respondents and/or contact the respondents. 1. Survey The Accenture Future Systems Survey, 2019, is the largest survey of C-Suite executives on enterprise systems. The survey collected data on: a. Technology adoption b. Application of technologies at scale across organizational processes c. Organizational and cultural readiness to adopt and create symbiotic systems of technologies d. Multiple measures of financial and operational performance The graphic opposite summarizes the survey demographics. $2 to $4.9 billion $500 million to $1.9 billion $5 to $9.9 billion Over $25 billion $20 to $24.9 billion $15 to $19.9 billion $10 to $14.9 billion 8356 companies, global 50% IT, 50% non-IT, C-level only Our dataset contains a range of companies from very high-growth (16%+) to those witnessing declining revenue and margins, and many in between. Average Revenue growth: 6.4% Average gross margin growth: 5.7% Average employee growth: 4.6% Company Size Financial Services Banking (524) Capital Markets (515) Insurance (515) Communications Media Technology Media Comms. (515) Telecommunications (351) High Tech (350) Software Platforms (350) Resources Utilities (515) Energy (Inc. Oil Gas) (350) Metals Mining (350) Chemicals (350) Health Public Service Health (356) Public Services (515) US Federal (353) Products Retail (351) Consumer Goods Services (521) Travel (350) Industrial Equipment (358) Life Sciences (515) Automotive (352) Australia (538) Brazil (388) Canada (313) China (1012) France (395) Germany (543) Italy (366) India (246) Japan (631) Netherlands (155) South Africa (155) Singapore (40) Thailand (61) Malaysia (12) Philippines (20) Indonesia (43) Spain (396) Switzerland (209) UK  (579) USA (2254) 20 Industries 20 Countries (HQ) 27Future Systems
  • 28. ABOUTTHERESEARCH Inference Approach First, we define and group companies into Future System Leaders and Laggards. That is, we identify companies that are ahead in terms of their evolution to Future Systems and those that aren’t, or, are evolving slowly. We then investigate if Future Systems leadership is correlated to financial performance. Definition of Leaders and Laggards: We create a Future Systems Score, composed of three components: 1. Technology adoption. 2. Extent of technology adoption across organizational processes, and 3. Organizational and cultural readiness for technology adoption. The top 10% of the companies on this score we called Future Systems Leaders, or simply Leaders and the bottom 25% (Future System) Laggards. The rest of the 65% of companies in our sample sit somewhere between Leaders and Laggards. Calculation of the Performance difference Using the definitions above of Leaders and Laggards, we compare their financial performance—measured by average revenue growth—and calculate the difference in performance between Leaders and Laggards. To ensure that the results were robust, we calculate the difference in performance—the performance gap—in every industry. The results are robust throughout. 2. Interviews and Multiple Case Studies We triangulate our findings from the large-scale primary data from the survey with multiple case studies. Overall, we collected through secondary research and interviews about 30 case studies focusing on issues organizations are facing because of their current IT stack and the evolution of companies toward Future Systems. 3.Economic Modelling and Machine Learning We use economic and machine learning (decision tree) models for arriving at prescriptive insights. We used an ordered logit model to study if the adoption of specific technologies and their application to specific processes can increase the probability of higher revenue and growth rates. In addition, to understand the cultural factors of importance, we ran a machine learning based decision tree classifier and explored correlations between Leaders’ Future Systems score with aggregate indices for the company’s technology adoption and process transformation indices. The regression below summarizes our (simplified) modelling approach: Revenue= α + β1*technologies adopted + β2*processes transformed + β3*technology*process + β4*control variables +μ Where, β1- β3 are the key coefficients of interest and μ is the error term of the regression 28Future Systems
  • 29. REFERENCES ACKNOWLEDGEMENTS The authors would like to thank Prashant Shukla, PhD, the Research Lead for Future Systems, as well as Surya Mukherjee and David Lavieri from Accenture Research for their contributions to this report. 1. https://www.apqc.org/pcf (13 critical business processes as defined by APQC) 2. https://www.technologyreview.com/s/608103/ ant-financial-chinas-giant-of-mobile-payments- is-rethinking-finance-with-ai/ 3. https://rctom.hbs.org/submission/ant- financial-pioneering-china-fintech-with- machine-learning/ 4. https://www.businesswire.com/news/ home/20180619006514/en/Ant-Financial- Share-Full-Suite-AI-Capabilities 5. https://www.accenture.com/in-en/case- studies/technology/success-bonnier-gdpr- compliance-automation 29Future Systems
  • 30. About Accenture Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With 492,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com About Accenture Research Accenture Research shapes trends and creates data driven insights about the most pressing issues global organizations face. Combining the power of innovative research techniques with a deep understanding of our clients’ industries, our team of 300 researchers and analysts spans 20 countries and publishes hundreds of reports, articles and points of view every year. Our thought-provoking research—supported by proprietary data and partnerships with leading organizations, such as MIT and Harvard—guides our innovations and allows us to transform theories and fresh ideas into real-world solutions for our clients. For more information, visit www.accenture.com/research Copyright © 2019 Accenture. All rights reserved. Accenture and its logo are registered trademarks of Accenture.