DAVOS, Switzerland–(BUSINESS WIRE)–While 65% of European enterprise leaders agree they’re dealing with essentially the most difficult working setting ever, a good bigger proportion (77%) are assured about their organizations’ capability to speed up development in an financial downturn, in response to a brand new report from Accenture (NYSE: ACN).

According to the “Accelerating Europe’s path to reinvention” report, rising vitality prices are the highest problem impacting margins for European firms, talked about by 19% of respondents, adopted by provide chain disruptions (14%).

Despite these challenges, 81% of European enterprise leaders consider their organizations are well-positioned to seize future development, having overcome the pandemic.

Released on the World Economic Forum’s Annual Meeting in Davos, the report appears to be like on the most urgent points European firms are dealing with, their strengths and weaknesses, and the way they’ll reinvent themselves to repeatedly adapt to a unstable world, whereas rising competitiveness, accelerating development and enhancing profitability.

“The resilience business leaders have demonstrated could explain their confidence in navigating current headwinds, including an energy crisis that is hitting Europe particularly hard,” stated Jean-Marc Ollagnier, CEO of Accenture for Europe. “However, what is at stake for European companies is their competitiveness over the long term. The increasingly volatile macroeconomic environment, combined with the pace of technological innovation and the need to accelerate the energy transition, requires companies to engage in a deliberate strategy to continuously reinvent their business. It is through a Total Enterprise Reinvention that European companies can increase competitiveness and thrive over the long term.”

European development is lagging friends, with a deficit in know-how funding

The report, which analyzes the monetary efficiency of practically 3,000 firms globally, discovered that whereas European firms report robust profitability, they’re slower to develop revenues in comparison with their friends in North America and Asia Pacific.

To higher perceive the place European firms stand, the report additionally examines how they carry out in contrast with friends in North America and Asia Pacific throughout six areas: expertise, know-how, provide chain and operations, gross sales and clients, liquidity and prices, and sustainability.

According to the evaluation, European companies are outperforming their friends on sustainability, expertise and liquidity and value administration. However, they’re considerably behind in rising gross sales and in utilizing know-how to spice up top-line development.

European firms are additionally much less more likely to innovate utilizing rising applied sciences, shift to a technology-driven enterprise mannequin and have a digital-savvy management in comparison with North American and Asia Pacific firms.

“European companies’ strong profitability and lower growth pattern suggests they are more likely to squeeze value from existing business streams than growing new ones,” stated Michael Brueckner, Chief Strategy Officer of Accenture for Europe. “While optimizing costs and maximizing current profitability are critical, it must be done to also generate liquidity to invest for the future. They should also capitalize on their strengths in sustainability and ability to deliver on employee experience, while pursuing technology-driven growth opportunities.”

Unprecedented occasions name for an unprecedented response

According to the report, whereas European companies have constructed extraordinary resilience in recent times, they have to now reinvent themselves to handle the distinctive challenges they face.

The report suggests strategic steps European firms should take to start their reinvention, specializing in their strengths in sustainability and expertise whereas addressing their deficits in know-how and buyer wants. These steps embody:

• Build their digital core rapidly to allow enterprise mannequin reinvention: Drive steady, compressed and scaled transformation, together with by establishing a digital basis utilizing cloud, information and AI to scale new processes, improvements and options throughout the enterprise. This is an ongoing effort to construct a platform for reinvention by transformation packages that fund themselves by the worth they create.
• Accelerate the vitality transition: Work throughout ecosystems to middle the European financial system round internet zero and round ideas for world competitiveness. Advocate for robust {industry} and governmental cooperation, insurance policies and incentives to stage the worldwide enjoying subject and fast-track execution. Accelerate cross-industry decarbonization partnerships and foster large-scale adoption of early-stage options. Improving vitality effectivity, not solely to navigate the vitality disaster however as a long-term resolution to cut back emissions and prices.
• Align to new buyer wants: See clients inside the context of their full lives, utilizing human and machine intelligence to know them and their motivations in a holistic and dynamic means. Solve for his or her shifting wants by changing one-size-fits-all choices with extra personalised services and products, prolonged partnerships and rethinking expertise, know-how and processes to drive worth and loyalty.
• Make expertise technique core to enterprise technique: Place individuals on the middle of enterprise reinvention and set up chief human sources officers because the catalysts for change. Ensure robust connections and collaboration throughout your entire C-suite and produce all individuals alongside on the reinvention journey, creating new methods of working. Access and create expertise in modern methods, utilizing know-how and information to acquire a deep, granular understanding of present and next-generation talent wants. Infuse a tradition of inclusion throughout the group, so individuals from all ranges can contribute to their full potential, supported by a robust sense of belonging and objective.

“Today, most companies are reinventing parts of their organization,” added Ollagnier. “But to succeed in a business environment that is currently being redefined, they will need to change everything from their operating models to new ways of working. These unprecedented times call for an unprecedented response from European companies. That will require a bold and visionary approach to transformation that abandons best practice in order to reach a new performance frontier. It is a pivotal moment for a stronger Europe.”

You can discover the report Accelerating Europe’s path to reinvention in Accenture Foresight, our new thought management app, which supplies a personalised feed of all our newest experiences, case research, blogs, interactive information charts, podcasts and extra. Download the app at http://www.accenture.com/foresight.

About the analysis

Accenture’s “Accelerating Europe’s path to reinvention” report is predicated on survey responses from 2,000 enterprise leaders throughout Europe (1,450), the United States (300) and China (250), spanning 12 industries. The survey was performed from October 24, 2022, to November 30, 2022. The report additionally contains company monetary efficiency and enterprise strengths evaluation of two,854 firms globally, together with 1,344 European firms. Business strengths and weaknesses have been analyzed throughout six areas which have demonstrated affect on worthwhile development: Liquidity and prices; Sales and Customers; Talent; Supply chain and operations; Sustainability; and Technology.

About Accenture

Accenture is a number one world skilled providers firm that helps the world’s main companies, governments and different organizations construct their digital core, optimize their operations, speed up income development and improve citizen providers—creating tangible worth at pace and scale. We are a expertise and innovation-led firm with 738,000 individuals serving shoppers in additional than 120 nations. Technology is on the core of change at the moment, and we’re one of many world’s leaders in serving to drive that change, with robust ecosystem relationships. We mix our energy in know-how with unmatched {industry} expertise, useful experience and world supply functionality. We are uniquely in a position to ship tangible outcomes due to our broad vary of providers, options and belongings throughout Strategy & Consulting, Technology, Operations, Industry X and Accenture Song. These capabilities, along with our tradition of shared success and dedication to creating 360° worth, allow us to assist our shoppers succeed and construct trusted, lasting relationships. We measure our success by the 360° worth we create for our shoppers, one another, our shareholders, companions and communities. Visit us at www.accenture.com.