2. 12.8%
10%
THERESPONSETODISRUPTION
2 | WINNING IN THE AGE OF DISRUPTION – Accenture UK and Ireland (UK&I) Innovation Maturity Index Report 2020
Innovation Champions set the pace in the UK & Ireland (UK&I)
*The overall country score on the Accenture Innovation Maturity Index in the UK&I was 61 out of 100. But a small group of
innovation champions— 11% of the sample—averaged 71 points. A company that scores high on the innovation index can
expect to increase revenue nearly 13% more than peers and raise profits by 10% more
UK and Ireland-based companies analysed
to show where Innovation Champions are
thriving in the age of disruption.
Innovation Champions scored high on the Innovation
Maturity Index. They can expect to increase revenue
nearly 13% more than peers and raise profits by 10%*
Higher revenue growth
Innovation Champions are setting the pace in the UK
and Ireland because of their deep understanding of
what it takes to innovate successfully in the wake of
increasing disruption.
Higher profits
3. DISRUPTIONINTHEMARKETPLACE
of UK industries
are susceptible to
future disruption
UK* Disruptability Index
17 industry sectors
3 | WINNING IN THE AGE OF DISRUPTION – Accenture UK and Ireland (UK&I) Innovation Maturity Index Report 2020
70%
Key: CMT RS
PD FS
Total EV of companies
in industry sample
Comms & Media
Software & Platforms
High-Tech
Capital Markets
Banking
Insurance
Infrastructure &
Transportation Services
Retail
Automotive
CG&S
Travel
Industrial Equipment and…
Life Sciences
Natural Resources
Utilities
Energy
Chemicals
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.20 0.30 0.40 0.50 0.60 0.70 0.80
CURRENTLEVELOFDISRUPTION
SUSCEPTIBILITY TO FUTURE DISRUPTION
VIABILITY
(24% of companies)1
VOLATILITY
(29% of companies)
VULNERABILITY
(47% of companies)
DURABILITY
(0% of companies)
2018 CROSS-GEOGRAPHY2 AVERAGE:
0.47
2018CROSS-
GEOGRAPHYAVERAGE:
0.54
The below indicates size of
values (coloured circles in the
graph left) denoting the total EV
Source – Accenture Disruptability Index 2.0 (based on 2018 data)
Note only the UK was measured in this particular research study – it did not include Ireland
4. WHATSETS THECHAMPIONSAPART?
4
Innovation Champions embed innovation
| WINNING IN THE AGE OF DISRUPTION – Accenture UK and Ireland (UK&I) Innovation Maturity Index Report 2020
INNOVATION BY DESIGN
Quality of innovation processes
INNOVATIONPRACTICES
Presence of Innovation traits
Innovation Champions are measured by their:
Innovation Champions
employ an innovation
mindset. They have built
innovation skills to create new
products and services for
customers and have also
achieved deep organisational
change.
Innovation
Culture
Innovation
Architecture
Innovation
Strategy
INNOVATE
BY DESIGN
Inclusive
Hyper
Relevant
Technology
Propelled
Data
Driven
Asset Smart
Talent
Rich
Network
Powered
INNOVATION
PRACTICES
5. 9%
18%
17%
16%
11%
25%
63%
14%
19%
19%
24%
38%
43%
62%
UK&ICHAMPIONSEXPECTDISRUPTION
5
Innovation Champions are never complacent
To what extent do you expect your industry to be
disrupted by the following in the next 3 years?
Indicated “Large extent” or “Very large extent”
Source: UK&I Innovation Maturity Index 2020
| WINNING IN THE AGE OF DISRUPTION – Accenture UK and Ireland (UK&I) Innovation Maturity Index Report 2020
Innovation Champions
Rest of the market
Innovation Champions both expect and are actively managing
disruption and embed innovation to deal with it.
They look to pre-emptively build resilience against market and
industry disruptions.
They possess higher rates of awareness about disruption from
competitors and social/cultural changes.
of Innovation
Champions
expect
disruption
compared to
of other
companies
New innovations
brought by technology
New competitors
Social and cultural shifts
Maco-economic changes
Environmental/
ecological change
New regulations
Demographic shifts
N-200 respondents
6. CHAMPIONSINVESTFORVALUE
6
Innovation champions spend more on innovation
How much more will your company be investing in
innovation over the next 12 months to handle the
evolving forces of disruption?
| WINNING IN THE AGE OF DISRUPTION – Accenture UK and Ireland (UK&I) Innovation Maturity Index Report 2020
Significantly More
Substantially More
Over the next 12 months
N-200 respondents
5% 2%
29%
19%
34
Champions Rest of the market
%
21%
Innovation Champions are investing over 10% more in
innovation to help them to stay ahead of the curve.
Most of them are using innovation to unlock value in their
legacy and new businesses simultaneously, positioning
themselves for change in steady, safe and balanced way.
compared to
of other
companiesin innovation
Innovation
Champions
are investing
Source: UK&I Innovation Maturity Index 2020
7. CHAMPIONSFOCUSONKEYTECHNLOGIES
7
Innovation champions spend differently
Which of the following technologies has your company been
focusing your investments on and where do you plan to focus
them in the future? (Select all that apply)
| WINNING IN THE AGE OF DISRUPTION – Accenture UK and Ireland (UK&I) Innovation Maturity Index Report 2020
Last 3 years
Next 3 years
UK&I Champions focus more on
technologies such as Blockchain,
autonomous vehicles, machine
learning and 3D printing.
Innovation Champions Others
N-200 respondents
Internet of Things
81%
57%
Cloud services for core business processes
Autonomous robots
Augmented Reality/Virtual Reality
52%
Big Data Analytics
Artificial Intelligence
Machine learning
19%
Blockchain/distributed ledger technology
3D printing in design or production
Digital twin
Autonomous vehicles
24%
57%
14%
62%
19%
62%
43%
76%
48%
57%
14%
10%
19%
14%
14%
0%
0%
5%
24%
85%
60%
46%
54%
11%
73%
5%
67%
53%
67%
56%
29%
80%
29%
15%
50%
14%
18%
10%
1%
4%
Source: UK&I Innovation Maturity Index 2020
of Innovation
Champions are
focusing future
investment on
machine learning
technologies
8. 8%
70%
50%
43%
48%
53%
70%
28%
0%
25%
25%
38%
50%
75%
88%
88%
CHAMPIONSFAVOURGOVERNMENTSUPPORT
8
Innovation Champions favour government loans and grants
If you have rated having support from the Government
very important or critically important, in what form
would you like that support? (Select all that apply)
| WINNING IN THE AGE OF DISRUPTION – Accenture UK and Ireland (UK&I) Innovation Maturity Index Report 2020
When rating support from Government, Innovation Champions
prioritise low interest loans and technology funding as the first
step towards becoming a Champion.
N-200 respondents
of Innovation
Champions prefer
government support
in the form of loans
and grants
compared to
of other
companies
Innovation Champions
Rest of the market
More low-interest loans
More grants funding for
technology adoption
A wider scope for the
R&D tax credit
More grants funding
for R&D
Repayable grants
Support for specific
skills development
A more collaborative
approach to regulation
Enabling more collaboration
with public innovation bodies
Source: UK&I Innovation Maturity Index 2020
10. CHAMPIONSEMBEDINNOVATION
10
Innovation Champions are differentiated innovation practices
UK&I Innovation Practices – By Largest Score Differential
| WINNING IN THE AGE OF DISRUPTION – Accenture UK and Ireland (UK&I) Innovation Maturity Index Report 2020
Innovation Champions stand out in Innovation Practices.
In particular, their ability to be continuously more Asset Smart,
Inclusive and Hyper Relevant, where the difference between
them and other companies was the highest.
Innovation Champions adopt
N-200 respondents
Innovation Champions
Others
Innovation
Practices7to release trapped value and accelerate growth.
Asset
Smart
Network
Powered
Inclusive Hyper-
Relevant
Talent
Rich
Data
Driven
Tech
Propelled
20 points
14 points
1 3 points
12 points
12 points
11 points
7 points
Source: UK&I Innovation Maturity Index 2020
11. CHAMPIONSARE
DIFFERENTIATED
INALLSEVEN
INNOVATION
PRACTICES
11 | WINNING IN THE AGE OF DISRUPTION – Accenture UK and Ireland (UK&I) Innovation Maturity Index Report 2020
Asset Smart.
Innovation Champions
transform their core
business to cope with
disruption by divesting
assets to free up
capacity for the New.
Inclusive.
Innovation champions
take an inclusive
approach to innovation
and governance,
involving a broad range
of stakeholders.
Hyper Relevant.
Innovation champions
strive to always be
relevant by sensing and
addressing customers’
changing needs.
Talent Rich.
Innovation champions
create a new type of
workforce to gain a
competitive advantage in
fast-changing markets.
Network Powered.
Champions strive to
harness the power of a
carefully managed
ecosystem of partners.
Technology
Propelled.
Innovation champions
master leading-edge
technologies that enable
business innovation.
Data Driven.
Innovation champions
generate, share, and deploy
data to support innovation.
Source: UK&I Innovation Maturity Index 2020
12. UK&ICHAMPIONS
COULDBE
DIFFERENTIATED
FURTHERIN
INNOVATEBYDESIGN
12
Innovate by Design
| WINNING IN THE AGE OF DISRUPTION – Accenture UK and Ireland (UK&I) Innovation Maturity Index Report 2020
Innovating by design is a framework for
building the mechanisms for
reliable innovation.
It involves defining an innovation strategy,
instilling a culture of innovation, and
creating an innovation architecture.
UK&I Champions are already most
differentiated in Innovation Culture but
differences in strategy and architecture
were less marked
Sample: All UK&I respondents (n=200)
Innovation
Culture
Innovation
Strategy
Innovation
Architecture
UK&I Innovation Champions not only recognise the importance of the social
and cultural aspects of innovation but are also creating a culture of
innovation in their own companies where:
is encouraged
and rewarded.
is applauded
by leadership
is fostered within
the organization
Innovation Champions
Others
Source: UK&I Innovation Maturity Index 2020
1 point 4 points
0 points
13. 13
Their innovation mindset means that
they both expect and are actively
managing disruption. They are
concerned not only with technology
disruption but also possess higher rates
of apprehension about competitors and
social/cultural change.
They focus on financials associated with
innovation and prioritize areas such as
corporate venture capital funding.
Their innovation mindset means that
have an all-encompassing approach
to innovation and see the potential of
several UK cities for innovation and
are actively focused on building
wider innovation ecosystems.
| WINNING IN THE AGE OF DISRUPTION – Accenture UK and Ireland (UK&I) Innovation Maturity Index Report 2020
Champions are
never complacent
Champions say,
“show me the money”
Champions are
better networked
SUMMARY
To be classed as an Innovation
Champion, companies must be driving
higher revenues and profit
from innovation.
UK&I Champions are doing this through
an innovation mindset which focuses on
driving value from innovation and the
innovation practices they follow.
They are therefore better equipped to
handle the evolving forces of disruption.
They are differentiated in their technology
spend, focusing on technologies such as
blockchain, autonomous vehicles,
machine learning and 3D printing.
Champions spend more and
differently on innovation
Mind
theTrap
Trapped value is leaving
organisations vulnerable
to disruption.
‘
14. ABOUTTHERESEARCH
14
Demographics
| WINNING IN THE AGE OF DISRUPTION – Accenture UK and Ireland (UK&I) Innovation Maturity Index Report 2020
CONFIDENCE LEVEL
INDUSTRIES
06
ACROSS
CMT
FINANCIAL SERVICES
PRODUCTS
RESOURCES
HEALTHCARE
PUBLIC SERVICE
20%
20%
20%
20%
20%
15%
CHIEF EXECUTIVE OFFICER
CHIEF FINANCIAL OFFICER
CHIEF INNOVATION OFFICER
CHIEF OPERATING OFFICER
7%
11%
13%
11%
CHIEF STRATEGY OFFICER
EVP (or direct report)
SP (or direct report)
VP (or direct report)
9%
15%
17%
19%
UK&I RESPONDENTS
LEVELS
CROSSC-SUITE
ANNUAL
RESEARCHSTUDY ON
INNOVATION FOR THE UK&I
COMPANY
SIZE
UNDER $100M (0.1)
$100M - $499M (0.2995)
$500M - $999M (0.7475)
$1BNOR MORE (1)
4%
4%
48%
48%
Research Conducted by
ACCENTURE RESEARCH
Supported by
ACCENTURE UK CLIENT
INNOVATION TEAM
Source: UK&I Innovation Maturity Index 2020