How to sustain digital transformation efforts in an economic downturn

Out-Collaborate
The Crisis
How to sustain digital
transformation efforts in an
economic downturn.
Insights on cross-function collaboration from the
Accenture Industry X.0 2020 research.

Copyright © 2020 Accenture. All rights reserved. 2
Try focusing on
better cross-
function
collaboration!
It’s far more effective
than you might think.
Striving to
sustain digital
transformation in
the current
climate?

Let’s be honest:
We all know that even in “normal” times,
a lack of cross-function collaboration
increases costs, reduces returns on
investment and hinders growth.
And In the times of COVID-19?
Inter-functional competition—especially
on matters concerning digital
transformation—can be disastrous.
So, the question is…

Why aren’t we managing it better?
Because the age-old siloes-issue is rearing its head again – this time, hindering
digitalization efforts:
75%
of executives admit:
“Our business functions are
competing rather than collaborating
on digital projects.”

The cost of internal competition –
cross-function competition increases cost and eats up expected revenues gains1):
5.8%actual overall
increase
in costs because
of redundant
Investments.
6.5%actual annual
revenue
growth versus
expected growth
of 11%.
64%of companies not
seeing a return on
their digital
investments.
1) n=1,550; percentages are for the three-year period from 2017-2019.

Let’s meet the companies
which are mastering cross-
function collaboration.
How can we fix this?

Average % gains in
revenue as a result of
digital transformation
investments made across
functions (2017-2019)
… their peers in revenue gains, EBIT
growth, and stock performance:
Collaboration
champions
outperform…

growth, and stock performance:
Collaboration
champions
outperform…
Average year-on-year
growth in EBIT (2017-
2019)

Collaboration
champions
outperform…
growth, and stock performance – even
during the height of the COVID-19 crisis:
Average daily share price
index (base date Jan. 1st,
2020)

How do the Champions do it?
Simply put: They’re more likely to emphasize:
1
Clarity and a common goal. They
clarify “what” digital transformation
means for their organization and why
everyone should collaborate.
2
Executive accountability. They hold
executives accountable for tight
collaboration between business
functions.
3
Choosing the right bets. Champions
prioritize projects that require or
stimulate close collaboration between
functions.
4
Platform interoperability. They
invest in and scale collaborative
platforms while avoiding the build-up
of “siloed” solutions.
5
IT-OT convergence. They establish
rules for their Information and
Operating Technology, and how the
two work together.

Which specific steps do they take?
Turns out, there’s five:
1. Plan the work and work the plan (establish clarity and a common goal).
2. Find your key people and empower them (ensure executive accountability).
3. Pick projects that bring people together (choose the right bets).
4. Make sure solutions speak the same language (prioritize platform interoperability).
5. Create rules for the road (drive IT-OT convergence).

Be specific, prescriptive, and clear
about the vision and mission for
your digital transformation.
Plan the work and
work the plan:
1
Clarity and a common goal

Assign ownership and
responsibility around cross-
function collaboration.
Find your key
people and
empower them:
2
Executive accountability

Prioritize digital initiatives that
stimulate cross-function
collaboration.
Pick projects that
bring people
together:
3
Choosing the right bets

Don’t compromise on inter-
operability.
Make sure
solutions speak the
same language:
4
Platform interoperability

Build smart IT-OT governance
policies from the get-go.
Create rules
for the road:
5
IT-OT convergence

Conclusion:
If you want to go fast, go alone. If you
want to go farther, go together.

Get the full report …
… for more data, a deeper dive
into Champion best practices,
and select case study examples
– completely free, no
registration required.
accenture.com/outcollaborate

Nigel Stacey
Industry X.0 Global Lead
nigel.stacey@accenture.com
Linkedin.com/in/nigel-stacey-80360236/
Raghav Narsalay
Industry X.0 Global Research Lead
Raghav.Narsalay@Accenture.com
Twitter.com/RaghavNarsalay
Aarohi Sen
Principal, Thought Leadership for Industry X.0
Raghav.Narsalay@Accenture.com
Twitter.com/RaghavNarsalay
AboutAccenture
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How to sustain digital transformation efforts in an economic downturn

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