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Optimism high about prospects in Indian companies: Accenture report 2014

India Blooms News Service | 30 Jun 2014, 11:20 pm
New Delhi, June 30 (IBNS) Indian CEOs are optimistic about prospects for growth in 2014 at all levels, from individual companies to the global economy, according to a new report by Accenture (NYSE: ACN) and Economist Intelligence Unit (EIU), titled ‘"The Business Agenda for India: Competing in a Digital World'.

Although most CEOs plan to reach new customers in new markets, the research reveals that they have further progress to make in investing in digital technologies needed to do so.

Indian companies are already building strong momentum in international markets and now count among the most active players on the global stage. The survey acknowledges that 76 percent of Indian organizations are optimistic about growth prospects of their own organization, while 68 percent are optimistic for their industry. Approximately, 70 percent of executives in India think their organization’s profit will grow in 2014. Given the optimism, Indian executives are already charting correspondingly ambitious growth strategies.

Most businesses in India will focus on new customers in new markets as their primary driver of revenue growth in the next three years, according to respondents. While 47 percent of the respondents plan to sell new products and services in the domestic market, a majority of Indian executives (63 percent) want to shift their focus from BRICs to other rapidly growing emerging markets.

To achieve future growth most Indian organizations will prioritize investment in human capital and R&D with 82 percent of Indian executives planning to increase their investment in human capital assets like recruitment, retention and training. 

Uptake in digital technologies

The report states that companies will have to commit to implementing digital technologies and related business models to enhance their ability to reach new customers in new markets with new products and services.  Two thirds (63 percent) of respondents say their company is primarily using digital technologies to improve process efficiencies and cost reductions, against just 27 percent who are primarily using them to drive growth or to find new ways of reaching customers. Sixty nine of executives participating in the study say digital will have moderate to significant impact on their industry in the next 12 months and 17 percent expect it to completely transform it.

The report identifies the four keys to digital transformation.

 

1.    Think Digitally - Companies must transform the customer from a recipient of products into an active partner. Customers no more remain ‘users’, as they use technology to service themselves, incorporating products and services at will to meet their needs

 

2.    Emphasize complements, not substitutes - Winning with digital change does not require companies to destroy the existing core business and IT assets. But it, does require companies to create a “dynamic middle” that can simultaneously help cut costs and grow digital and core businesses

 

3.    Inculcate the ‘all in’ culture – To take advantage of a connected workforce, management and frontline employees must stop operating on separate islands and must communicate transparently with each other and within groups. Top management must also find ways to encourage connectivity and communication across levels and types of workforces with their organizations

 

4.   Build a digital business strategy - To profitably grow in new markets and do business with new consumers in markets experiencing digital disruption, executives must also develop a digital business strategy. An effective digital business strategy uses new approaches to increase strategic agility, generate early experience, and re-incorporate the lessons from that experience into the strategy process.


Digital Technologies priorities for the next decade


“This report demonstrates the optimism of senior business leaders in India and the investments they are making to inject greater energy and animal spirits into their organizations and the wider economy,” said Sanjay Dawar, Managing Director, Accenture Strategy and India lead.  “Markets are being transformed by the emergence of digital technologies, from analytics to cloud and mobile data. India’s business leaders will have to ensure that they see technology not just as a route to improved efficiencies, but as the foundation for reaching new customers with new offerings that will drive growth.”

Optimism high about prospects in Indian companies: Accenture report 2014

India Blooms News Service
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