According to a new report released by Accenture called “Make the Leap. Take the Lead” , leading companies that have amplified their technology investments during the COVID-19 pandemic, have significantly extended their growth advantage over competitors.
The report surveyed 4,300 respondents and assigned a score based on Systems Strength and Flip Size. The study determined which companies were ‘Leaders’ (top 10% of entire sample), Leapfroggers (18% of sample) and ‘Laggards’ (bottom 25%) and looked at the financial performance of each group.
“Our research scored companies on their ‘Systems Strength’ — a measure of technology adoption, application of technologies at scale, and organizational and cultural readiness for tech-enabled innovation. Strong Systems Strength, combined with a “Flip Size” that substantially pivots IT budgets towards innovation, enables Leaders to greatly extend their growth over Laggards,” said Ramnath Venkataraman, Global Lead, Integrated Global Services, Accenture Technology.
The research reveals that technology has undeniably become indispensable to business success and directly enables companies to not only survive, but even thrive during one of the most disruptive times in history.
Leapfroggers growing faster than Laggards
A new category of companies, called ‘Leapfrogger’ by the report, that have scaled technology innovation during COVID-19, are growing revenue four times faster than the lagging adopters, called ‘Laggards’ .
The new report also shows that by stepping up investments in cloud, artificial intelligence (AI) and other technologies, leading companies called ‘Leaders’ in the research, are now growing revenue at five times the rate of ‘Laggards.
In sharp contrast, many Laggard companies just recently invested in newer technologies for the first time, largely to maintain business and technology operations during the pandemic. This put Laggards even further behind and in the position of playing catch-up.
With the rise in AI and new optimized management tools, it will be interesting to see how the companies learn new ways to adapt to the industrial demand of technology innovations.