In the face of unprecedented disruptions, companies are redefining their strategies to fortify against unforeseen challenges. Accenture's latest research, titled "Resiliency in the making," delves into the evolving landscape of global business, highlighting a crucial nexus between regional production, supply chain fortification, and digital maturity.
The report, released on October 26, 2023, underscores a paradigm shift in corporate resilience. With disruptions costing companies a staggering $1.6 trillion in additional annual revenues in 2021 and 2022, the urgency to fortify engineering, supply, production, and operations has never been more palpable. Drawing insights from 1,230 senior executives across diverse industries and geographies, the study unveils a transformative approach adopted by the 25% most resilient companies, yielding a remarkable 3.6% higher annual revenue growth amid disruptions.
40% increase of product order-to-delivery lead times reported in the last 2 years.
$1.6t potential revenue growth opportunity left on the table each year.
17% of companies say they have a multiskilled workforce today.
+3.6% additional revenue growth that the more resilient companies were able to capture compared to their less resilient rivals.
A key revelation is the surge in companies amplifying their reliance on regional suppliers and production facilities. By 2026, a remarkable 65% of companies aim to source the majority of key items from regional suppliers, compared to the current 38%. Moreover, an impressive 85% plan to produce and sell most of their products within the same region, nearly doubling the current figure of 43%.
However, the report emphasizes that regional strategies alone are insufficient for sustained resiliency. Accenture's findings stress the critical need for companies to bolster their digital maturity by investing in data, artificial intelligence, and innovative solutions like digital twins. Such advancements enable the creation of reconfigurable supply chains, autonomous production processes, and dynamic product development, empowering companies to navigate the challenges of a rapidly evolving global landscape.
Sef Tuma, Global Engineering and Manufacturing Lead at Accenture Industry X, emphasized, "Resiliency has become an opportunity for growth, not just a strategy for survival." The report reveals that companies are responding by earmarking substantial investments, with an average of $1 billion allocated in 2023 for digitization, automation, and relocating supply and production facilities. This figure is projected to soar to at least $2.5 billion by 2026.
The report's recommendations offer a roadmap for companies aspiring to enhance their resiliency. Accenture advocates focusing on three core areas: increasing visibility through predictive technologies, embedding resiliency in design through tools like digital twins, and fostering new ways of working by upskilling the workforce in data and AI.
As companies stand at the crossroads of regionalization and digital transformation, Accenture's research serves as a strategic compass, guiding businesses towards a resilient future in an era of constant change and uncertainty.
However, the report emphasizes that regional strategies alone are insufficient for sustained resiliency. Accenture's findings stress the critical need for companies to bolster their digital maturity by investing in data, artificial intelligence, and innovative solutions like digital twins. Such advancements enable the creation of reconfigurable supply chains, autonomous production processes, and dynamic product development, empowering companies to navigate the challenges of a rapidly evolving global landscape.
Sef Tuma, Global Engineering and Manufacturing Lead at Accenture Industry X, emphasized, "Resiliency has become an opportunity for growth, not just a strategy for survival." The report reveals that companies are responding by earmarking substantial investments, with an average of $1 billion allocated in 2023 for digitization, automation, and relocating supply and production facilities. This figure is projected to soar to at least $2.5 billion by 2026.
The report's recommendations offer a roadmap for companies aspiring to enhance their resiliency. Accenture advocates focusing on three core areas: increasing visibility through predictive technologies, embedding resiliency in design through tools like digital twins, and fostering new ways of working by upskilling the workforce in data and AI.
As companies stand at the crossroads of regionalization and digital transformation, Accenture's research serves as a strategic compass, guiding businesses towards a resilient future in an era of constant change and uncertainty.