With the offshoot of the fourth industrial revolution, businesses have been forced to embrace growing trends in technology and invest in innovative solutions in a bid to stay competitive. This decision, according to Accenture, a professional services firm, has however been mostly unprofitable as businesses return on innovation investment has been found to have declined by 27 percent over the past five years.
The reason for this development, according to Accenture, is as a result of businesses not yet mastering new technologies that can deliver personalized realities and experiences for customers, employees and business partners.
Niyi Tayo Accenture’s technology managing director said, Accenture Technology Vision 2019: “The Post-Digital Era is Upon Us – Are You Ready for What’s Next?” highlights the ways in which organizations must use powerful new technologies to innovate in their business models and personalize experiences for their customers.
At the same time, leaders must recognize that human values, such as trust and responsibility, are not just buzzwords but critical enablers of their success.”
The firm’s new research showed that more than half (57 percent) of businesses making significant investments in innovation have underperformed against industry peers when it comes to growth or market value.
At the same time, the professional services firm disclosed that almost one-third (29 percent) of businesses surveyed expect to increase their investments in innovation by more than 50 percent over the next five years.
“The fact that return on investment overall is dropping is a worrying trend. Business are spending more than ever, but their inability to see proper returns is shocking,” said Toluleke Adenmosun, MD financial services at Accenture.
“One of the reasons for this could be that many organisations still see innovation as a peripheral activity separate to the core business; an “ad-hoc creative process” rather than a set of practices that will fundamentally change their way of doing business. It’s like going jogging once a month and then expecting to be able to run a marathon.
“Over the last five years, roughly $3.2tn was spent on innovation worldwide. Yet, the study shows it is not how much you spend that matters, it is how you spend it. The companies bucking the trend and seeing the biggest returns are investing in bold, watershed moves rather than incremental shifts.”
“The companies reaping the biggest rewards show a “go big or go home” mentality by investing in truly disruptive innovation projects,” added Toluleke “They don’t just tinker around the edges.”
Toluleke also argued that some companies just chase the latest tech trends without thinking about how to connect what they’re spending to the biggest problems or opportunities in their business.
The research revealed that there are seven key characteristics that are adopted by companies deliberately driving innovation.
It said “high growth companies apply innovation practices to change their way of doing business more fundamentally so that they can become; hyper relevant, network powered, technology propelled, talent rich, data driven , inclusive and asset smart.
Market Illiquidity: Experts advocate diversifying investment options through global best practices
CBN unfolds procedures for disbursement of N75bn Youth Initiative Fund
Analysts see no sharp pullback in Nigeria stocks amid bullish run
Covid-19 pandemic to fuel $4trn global GDP loss in 2020
MTN Nigeria grows 9-months revenue 13.92% to N975.8bn
Oil worries increase as prices relapse, U.S crude stocks surpass expectations
Investors take N105.8bn profit in equities trading as bulls’ momentum continues on Nigeria bourse
Bayelsa suffers setback as Supreme Court strikes out case on multi-billion-dollar Soku oilfields
Nigerian miners seek engagement with FG over reviving Ajaokuta Steel Mill
CBN’s PMI fall continues despite 2.5bps rise to 49.4 points in October
- 84% of businesses to accelerate digitization of work processes in…
- 2,500 business owners apply for N2.5bn Lagos Recovery Fund for looted businesses
- Looting, Vandalism: LSETF partners with private sector to get…
- WhatsApp to ramp up investment to develop shopping payments, customer services
- Market Illiquidity: Experts advocate diversifying investment options…
Frontpage February 7, 2018