ORGANIZING FOR SUCCESS - Accenture€¦ · guidance on ways to track and measure success (see Figure 3). Digital traffic is still a popular metric (63 percent), but it is not the

ORGANIZING FOR SUCCESS

2017HOW BUSINESSES ARE RE-STRUCTURING FOR MARKET SHARE

2017 ORGANIZING FOR SUCCESSAs the digital experience becomes an essential part of doing business, leadership teams around the world in nearly every industry are building and optimizing their digital organizations to help meet aggressive business goals and respond to increasingly dynamic market trends. While some businesses have made major investments in adapting their structure, operating model, and skilled resources to advance their digital agendas and are seeing the benefits, there are still several challenges to address for so many.

To dig deeper into these challenges and uncover potential solutions, we surveyed more than 200 digital executives to understand the key trends, variances, and challenges businesses are facing in the age of the cross-channel customer experience. All respondents came from companies with more than $1B in revenue across 11 countries in both digitally mature and digitally emerging markets around the globe. Emerging markets are defined as those located within India and Brazil, while mature markets consist of Australia, Canada, China, France, Germany, Korea, Japan, United Kingdom and United States. For this report, we identified "market leaders" as companies reporting more than 75 percent of total revenue coming through digital.

Additionally, we benchmarked several data findings from our 2015 Organizing for Successi report, which identified how leading edge organizations in the US are using digital to grow and achieve business goals.

The results revealed four key themes that are shaping the digital landscape.

MARKET LEADERS

>75% OF TOTAL REVENUE IS DIGITAL

2017 ORGANIZING FOR SUCCESS2

FOUR KEY THEMES

3. Recruiting in a competitive market and up-skilling current employees remain challenging. Easing the difficulty of recruiting, training and retaining skilled employees remains a steady priority, and companies around the globe find the competitive landscape a top challenge. In response many businesses are focused on growing the skills of their current teams.

4. The cross-generational workforce of millennials and Generation X is providing the right mix of innovation and pragmatic execution to continue digitally-powered growth.

Each generation adds unique value to companies’ digital units. Businesses are looking to digitally-minded millennials to bring unique, forward-thinking solutions to the problems they face, while the established workforce tends to lead when it comes to creating a well-balanced team.

This report dives deeper into how businesses across industries (and oceans) are growing and fine tuning their digital organizations to align with business goals and changing market trends.

1. Digital revenue continues to grow, with emerging markets quickly catching up to mature ones in both sales and the team structures required for support. Notably, digital leaders are laser focused on what is driving their profitable customers, while still delivering a consistent experience to all of their customers.

Emerging markets have made significant digital gains over the last several years. Mature markets are still leading the pack, but findings indicate it won’t take emerging markets as long to get up to speed as initially expected.

What’s more, our data shows there aren’t major differences in digital revenue among the large organizations selected for this study, indicating the speed and necessity of digital growth is consistent across the board. From manufacturing to retail to consumer packaged goods (CPG), industries are investing in digital portfolios, platforms and teams to remain competitive.

2. Leadership structure, operating models, and vendor partnerships tend to skew towards a more fully-integrated and centralized digital strategy.

Executive support is critical, and both emerging and established markets agree that the CEO is ultimately responsible for digital growth. But the full executive suite must work in tandem in order to become a truly digital organization.

Some notable changes year-over-year in the US include increased adoption of a fully-integrated digital operating model and the increase in outsourced digital work.


OUTCOMES

Source: Accenture 2017 Organizing for Success

Within the past several years, digital investments have become critical to the success of large enterprise organizations. And businesses are seeing notable returns on their new investments in leadership, organizational structure and talent recruitment and skill development. More than 50 percent (54 percent) of total respondents report more than half of their total sales come via digital channels. For this report, we identified 17 percent of companies as "market leaders" reporting more than 75 percent of total revenue coming through digital.

This growth of digital revenue is being largely driven by certain industries and geographies (see Figure 1), some of which have successfully adapted their businesses to accommodate the digital experience faster than others. Today, the communications, media and technology industry is seeing the most return on investment. Nearly three fourths (73 percent) of respondents in this industry report more than half of their total

sales are digital. Two other industries where respondents had close to half of their revenue coming from digital channels were: manufacturing (51 percent) and retail (47 percent).

Respondents in the US now see half of sales (49 percent) come through digital channels. That number has grown since 2015, when only one in four US respondents reported half of sales coming from digital channels. That said, digital revenue still does not make up the lion’s share of total revenue for many markets and industries. Europe lags behind the average by nearly 15 percent, with only 40 percent of respondents reporting more than 50 percent of their revenue flows through digital channels. Note that this survey focused on larger enterprises where it’s not inconceivable that they would be experiencing more channel shift than other enterprises – shifting the top of the sales pyramid can result in significant swings in digital percent of sales.

Figure 1: More than half of total sales are digital by region

40%EUROPE

62%APAC54%

AMERICAS


A MIX OF ONLINE REVENUE CHANNELSTo help achieve this success, organizations conduct digital sales via multiple markets, consisting of business-to business (B2B), direct business-to-consumer (B2C), and third-party marketplaces. Overall, digital sales are evenly distributed across these markets (see Figure 2), with a quarter of total respondents reporting 40 to 60 percent of digital sales are B2B, B2C, and through third-party marketplaces. Consumers desire to transact online in both their personal and professional lives, and businesses that can provide for both are seeing notable gains in revenue.

B2B in particular is expected to experience significant growth in digital advancement over the next several years. Today, direct digital sales to a business or organization drive at least 40 percent of sales for 42 percent of respondents. By 2020, B2B digital commerce is expected to reach $1.13 trillion.ii This speaks volumes about the maturation of digital adoption within the B2B industry, which has traditionally lagged behind its B2C counterpart.

When broken down by region, North America drives the most digital sales from B2B transactions, with 51 percent indicating that B2B sales drive at least 40 percent of their revenue, followed by 45 percent of European respondents. The Asia-Pacific (APAC) regions lag behind, with only 28 percent reporting B2B sales driving at least 40 percent of their digital sales.

As B2B industries such as manufacturing move their businesses online, there is a unique opportunity to sell downmarket to help increase profit gains and use digital to optimize existing sales and fulfillment support to scale without increasing cost. We expect this business model will become more pervasive in the years to come.

Figure 2: What percentage of your digital sales fall into the following categories?

30%

40%

20%

10%

18.1

39.2

25.3

10.1

7.2

B2B

22.4

32

26.2

14.4

5.1

B2C Third-party marketplace

30 32.5

24.1

8.9

4.6

0-20% 20-40% 40-60% 60-80% 80-100%

0%



HOW ORGANIZATIONS MEASURE SUCCESSNew and emerging markets should look to market leaders for guidance on ways to track and measure success (see Figure 3). Digital traffic is still a popular metric (63 percent), but it is not the primary metric used by market leaders. They focus on top-line metrics such as digital revenue (75 percent) and digital share of market (70 percent).

Overall, these KPIs are consistent with the general respondent findings. Slight variations exist for emerging markets, which tend to track digital share of market more than in established markets, which is likely to ensure as early entrants they command the

market. They are not tracking the ratio of digital costs to digital revenue like their established market peers, which demonstrates the known investment needed to gain market share.

Market leaders (55 percent) measure who their highest-value customers are and focus on growing those customer segments nearly 20 percent more than the survey average. Smaller and emerging markets struggle to effectively measure their business results this way due to limited volume and scale, but will become increasingly more important as these companies growth their digital business.


Legend

Market leaders

All respondents

Figure 3: Which of the following are key performance indicators (KPIs) measured for your digital organization?

Digital revenue75

74

Digital share of market70

60

Digital traffic63

60

Ratio of digital costs to total revenue

55

55

49

Offline sales from digital customers

47.539

Cart abandonment37.5

22

No digital-specific KPIs in place

12.59

Customer groups ranked from high to low digital revenue 34

0% 10% 20% 30% 40% 50% 60% 70% 80%


ORGANIZATIONDIGITAL GROWTH ACCOUNTABILITY

Executive support is critical to making digital a priority and meeting business KPIs. More than a quarter (28 percent) of respondents said the CEO is responsible for digital revenue growth and almost three quarters of respondents (72 percent) said responsibility lies with either the CEO, CIO or CDO (see Figure 4). When it comes to market leaders, 40 percent of respondents cite the CEO, and 73 percent cite the CEO, CIO or CDO as responsible for digital revenue growth.

When it comes to relying on digital-specific executives to drive sales through digital channels nearly one in four (22 percent) indicated the CDO is responsible for digital revenue growth. Looking closer at where CDOs are employed (see Figure 5), APAC leads with 85 percent, followed by Europe at 52 percent and North American at 49 percent. The breakdown of CXO and CCO remains consistent across regions.

Both emerging and established markets agree that the CEO is ultimately responsible for digital growth, but mature markets

place more responsibility on the CIO (24 percent) than those from emerging markets (12 percent). This gap is likely due to mature markets forming digital units when digital was still owned by the CIO. Emerging markets essentially missed this phase as most of these companies were formed within the last three to four years.

Our research indicates that organizations are taking the right steps to implement the leadership necessary to help drive more digital sales. However, to become a truly digital organization, these roles must work in tandem. Fifty-six percent of respondents said their CDO, CXO and CCO work as a collaborative unit with the CIO and CMO, making crucial decisions as a team. Still, about one in three (33 percent) said they still make digital decisions independently and are often at odds with each other. Unfortunately, waters are often muddy when it comes to budget allocation and investment priorities across new and established leadership roles. Businesses must work in the years ahead to ensure that management becomes more collaborative across departments.


80%

70%

Figure 5: Does your company currently have a CDO?

90%

50%

60%

40%

30%

20%

APAC Europe NorthAmerica

10%

0%

85

52

49

Figure 4: Who is responsible for digital revenue growth?

Chief Executive Officer (CEO)

Chief Marketing Officer (CMO)

Chief Digital Officer (CDO)

Chief Experience Officer (CXO)

Chief Customer Officer (CCO)

Chief Information Officer (CIO)

Direct report to other C-Suite

27.8

3.8

1.6

1.2

3.3

22.3

2.1

2.9

SVP

VP

Director

12.2

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THE SIZE OF DIGITAL ORGANIZATIONSThe size of the digital teams that leaders are tasked with managing is directly correlated to the percentage of digital revenue they generate. In short, the larger the digital team, the more digital revenue they see. One third of total respondents have more than 200 employees on their company’s digital team (see Figure 6) compared to more than half (55 percent) for market leaders.

Digital teams are also getting larger, with more than half (56 percent) of respondents employing teams larger than 100 people and a third employing teams larger than 200 people.

That said, the majority of mature market respondents tend to have teams smaller than 100 employees, and the US leads with 61 percent having teams smaller than 100 employees. This is because mature markets are more likely to have access to sophisticated vendors and partners rather than execute in house. This smaller size is also attributable to organizing as a Digital Center of Excellence (DCoE). In countries that favored decentralization (Japan and France), the digital teams were in excess of 200 people.

Due to the large percentage of digital revenue communications and media technology businesses generate, it’s unsurprising that this industry has the highest percentage of digital organizations that employ more than 200 people. Forty-two percent of respondents in this industry work on a team of 200 or more employees. On the other hand, the retail industry, which is traditionally challenged with tight margins, reports just 18 percent of teams employ a staff of 200 or more. The majority (63 percent) of retailers have less than 100 employees on their digital team.

TEAM STRUCTUREAside from beginning to employ the right leaders to drive digital sales, organizations are also intentionally structuring their operating models to increase potential. The most common operating model today is the DCoE, which provides expertise and standards and supports strategy development for focus areas within the organization. Thirty-seven percent of respondents operate in a DCoE model. Almost half (48 percent) of emerging market respondents identified their organizational structure as a DCoE, compared to just 33 percent of mature market respondents. Over half of the of market leaders are either following the use of a DCoE model (35 percent) or are already fully integrated (17.5 percent).

A fully-integrated model in which all functions are digitally-enabled and the experience is managed holistically across touch points is a more mature model. In the US, the percentage of organizations who have completely adopted a fully-integrated model doubled since 2015 (16 percent in 2016 vs. 8 percent in 2015), indicating the increasing focus on digital as companies restructure their organization.

GEOGRAPHIC LOCATIONThe most popular additional location for a digital team outside one’s home country base was the UK (53 percent). The US was second with 37 percent. Rounding out the top five were Canada (30 percent), Australia (24 percent) and Germany (22 percent).


Figure 6: How many employees are in your digital team?

30%

40%

20%

10%

Less than 10

11-25 26-50 51-75 76-100 101-150 151-200 More than200

0%

6.3 9.3 13

.1

7.6

7.6 10.5 11.8

33.8


HOW BREXIT COULD IMPACT DIGITAL SATELLITE OFFICESAfter the UK left the European Union (EU) with the recent Brexit vote, there are questions if the UK will remain a popular international location. Potential new trade tariffs, privacy concerns with transmitting data from the UK to the EU, and new work visa restrictions may add complexities to the task of staffing a digital team that can support Northern, Southern, and Central Europe. While implications will take at least three yearsiii to materialize, the uncertainty may prompt organizations to consider alternate EU-member country locations, such as the Netherlands, France or Germany.

VENDORS AND PARTNERSAs more companies are realizing the challenges of outsourcing to a large number of vendors, the number of digital vendors companies are utilizing is decreasing (see Figure 7). Nearly three in four respondents (74 percent) said their organization works with 20 or fewer digital partners, while 21 percent surveyed said they work with less than five. A majority of US respondents tend to work with fewer than 10 partners (59 percent).

That said, the amount of work being outsourced is not declining. One third of respondents outsource more than half of their digital work. US respondents are outsourcing even more of their digital workload than they did last year (22 percent in 2016 vs. 16 percent in 2015). These organizations are looking to sophisticated vendors that provide a comprehensive set of digital offerings.

Emerging market organizations are more likely to use multiple vendors to complete digital workloads because there may not be strong vendors who offer the breadth of experience to take on all of their digital needs. Sixty-five percent of emerging market respondents reported using more than 10 partners, compared to 46 percent of those from mature markets.

Additionally, 50 percent of emerging market respondents use external partners for more than half of their work, compared to only 29 percent of mature markets. These differences demonstrate emerging market organizations are looking to grow and keep pace with mature markets while not previously having a digital organization. However, our experience shows that fragmenting the work across multiple partners often leads to confusion and inefficiencies, and leads to broken experience for customers.


Figure 7: What percentage of your overall workload (in the digital organization) do partners perform?

30%

40%

20%

10%

Less than10%

10%-25% 26%-50% 51%-75% 76-90% More than 90%

0%

5.1

22.8

38.4

23.6

7.2 3


RECRUITING AND RETENTION FACTORSRecruiting and retaining top talent poses another challenge for businesses (see Figure 8). The competitive landscape poses a unique problem for organizations trying to gain market share, with more than half (51 percent) reporting it as their top challenge when it comes to recruiting and retention (51 percent), followed by the talent pool (45 percent) and lack of experience (41 percent).

One way businesses are dealing with the competitive job market and scarce talent pool is by growing the skill sets of their current teams. When asked about talent, training current employees ranked as a top priority at 65 percent. Less than half (47 percent) say they are primarily focused on hiring new talent.

Emerging markets are taking a different approach by prioritizing hiring new talent (62 percent) over training current employees. These organizations may still be focused on growing their existing teams with fresh skills and knowledge in order to increase their market share.

Finally, while most respondents said they are primarily focusing on training new talent, 37 percent would rather hire new employees with a certain skill set than train current employees.The communications, media and technology respondents stood out at 51 percent.

THE MILLENNIAL FACTORDigitally-minded millennials are a critical resource for organizations that are looking to bring in new talent (particularly those within emerging markets). And those that have hired millennials are seeing positive results. Forty-two percent of respondents agree that millennials are raising the bar for their digital teams, and two in five believe the most innovative digital ideas within their organization are coming from millennials.

Although millennials are bringing innovative, fresh ideas to the table, 37 percent of respondents reported the established workforce provides the practical, realistic and business-resulted oriented ideas. The contrast between creative ideation and pragmatic execution has the potential for positive collaboration and business gains, but it also can be a source of tension within the organization. At 43 percent US respondents seem to value the practical, realistic, and business results-oriented ideas from the established workforce more than the average global respondent.

What’s more, 56 percent of respondents reported major differences in opinion on decisions in the digital department between the new workforce and more established workforce. A healthy contrast in opinion can be productive for businesses, but team leaders must be careful to mitigate any pointless tension.


30%

50%

Figure 8: What are the biggest challenges currently facing you and your organization for recruiting and retention?

60%

20%

10%

50.6

44.7

22.4

19.4

42.6

4.2

0%Competitive

marketTalent pool

Lack ofexperience

Poor perception of industry

Poor perception of organization

Competitive salary

None of the above

Limited career path within

organization

40.5

21.5



OPPORTUNITIESSELF-PERCEPTION OF MARKET POSITION

As companies assess their digital maturity based on the factors listed above, such as digital revenue, organizational structure, and team leadership, an interesting dynamic is revealed about companies’ self-perception of their positioning in the market (see Figure 9). Companies are feeling the pressure to make the most of their digital investments because 84 percent feel their region is already digitally mature or very mature.

When it comes to digital offerings, organizations generally feel they are able to keep up with the competition. About a third of all respondents (30 percent) feel they are the benchmark or sector leader (see Figure 10). Specifically in the US, only 18 percent of respondents believe their organization is the benchmark or sector leader, but 60 percent said they are on par with sector leaders.

These numbers show a change from 2015, in which 27 percent of US respondents listed themselves as sector leaders, but only 42 percent said they are on par with sector leaders. Most US businesses feel they are at parity with their peers but few seem to think they are actually paving the way. This is noteworthy given the size the scope of the digital market in the US today.

70%

Figure 9: Which of the following would you identify as your competitive level of digital maturity?

50%

60%

40%

30%

20%

10%

0%

30

54

6

70%

Figure 10: How do your digital capabilities rank relative to your major competitors?

50%

60%

40%

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20%

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0%

58

Very mature

Mature Immature Very immature

On Par Trail

2

Benchmark

10 12

28

Sector Leader



PRIORITIES FOR IMPROVEMENTOne in five respondents (20 percent) reported digital revenue is a top priority for improvement. More market leaders are prioritizing higher digital revenue than the general population (28 percent vs. 20 percent) showing that they know being a leader is a perilous position if they do not keep pushing for more growth.

Customers are the path to growth for respondents. Across the board, respondents are focused on acquisition (60 percent) and retention (52 percent). To help achieve these goals, world class customer experience is the most common priority for improvement for digital organizations (22 percent).

Interestingly, Asia Pacific is more worried about speed to market than other countries, with 51 percent saying it more important compared to 31 percent of respondents overall.

Respondents within emerging markets face greater struggles gaining executive buy-in for digital initiatives than those from mature markets. 57 percent of emerging market respondents said the priority of the digital organization to management was a challenge, compared to 36 percent of mature markets. As a similar challenge, 53 percent of emerging market respondents said priority of digital delivery to other technology initiatives was a problem, compared to only 27 percent of mature markets.

Understanding the areas of lowest prioritization can be just as insightful as understanding the highest prioritization. Twenty-nine percent of respondents report cost containment is the least important area for improvement. The lack of focus on cost containment shows that companies realize that digital still needs investment to realize the full business opportunity.


INVESTMENTSDigital organizations are making major investments to address their top improvement priorities (see Figure 11). At the top of the investment list are strategic digital initiatives, with half of respondents planning to invest in e-commerce or e-business strategy in the next six to 12 months. Mobile commerce is also a big budget priority in the next year, with half of respondents planning to invest there.

Companies are also putting their money towards more forward-thinking social commerce initiatives, with 44 percent of respondents planning on investing in social commerce in the next six to 12 months. APAC is the most advanced region in the world when it comes to social commerce, particularly China, which as a mobile-first market has successfully integrated commerce capabilities into some of its most popular messaging applications, such as WeChat. While this has been slower to take off in other regions around the world, findings indicate organizations recognize the potential and are planning to invest in the near future. Over a third of US respondents (39 percent) are planning to invest in social commerce in the next six to 12 months.

The study reveals evidence of social commerce adoption in the US already, as several major brands are integrating important components of the commerce experience into social media platforms. Everlane has begun using Facebook messenger for customer serviceiv and also to help

returning customers place new orders. Domino's has taken convenience to the next levelv through order enablement by simply tweeting a pizza emoji from a registered Twitter account. What’s more, new startups are emerging that make it easier for retailers to take orders via social. Companies like Reply Yes make it easy to make purchases via SMSvi with a planned expansion into other message applications soon.

Of the market leaders over half (55 percent) plan to invest in digital innovation in the next 6-12 months.

Additionally, there is a notable plan for investment in e-commerce replatforming for companies where more than 60 percent of sales are B2B. Forty-six percent plan to invest in the next six to 12 months, as opposed to only 32 percent for B2C, suggesting e-commerce platforms are less advanced in the B2B revenue channel. Although B2B has been slower to move online, the industry is in the midst of a digital revolution and is expected to see an annual compound growth rate of nearly 8 percentvii through the year 2020.

Overall businesses investments vary based on the global differences, digital organization maturity, and consumer commerce needs and expectations. These investment plans are a major indication of the opportunities for surveyed organizations and the global digital ecosystem as a whole.



Figure 11: What digital projects are you investing in over the next 6-12 months?

Mobile commerce 50.2

49.8

48.5

44.3

42.2

40.1

37.6

37.6

36.7

Digital (eBusiness or eCommerce) strategy

Digital innovation

Social commerce

Personalized experience and offers

Omni-channel expansion

Loyalty and/or frequent buyer programs

36.3Content-based marketing

34.6eCommerce re-platforming

34.6Programmatic marketing

33.3New digital customer self-service capabilities

30.8Content curation and enrichment

Digital data warehousing

Digital organization expansion

0% 10% 20% 30% 40% 50% 60%


FUNDINGThe most popular funding mechanisms for the digital investments outlined above are corporate investment (53 percent) and fixed chargebacks (30 percent) (see Figure 12). Only 4 percent of respondents overall are expected to self-fund their investments. North America is the exception, where 16 percent of respondents are expected to self-fund.

Seventy percent of emerging market respondents rely on corporate investment, compared to 49 percent in mature markets. Fixed chargeback is the most popular strategy in North America (39 percent) and Europe (32 percent), but only used by 20 percent of emerging markets.

Europe (23 percent) is the only region where a notable number of organizations follow a pay-to-participate model, where there are variable chargebacks based on digital use. Overall, European organizations were outliers in terms of investment priorities, which may be a result of their funding strategies, as well as customer expectations for digital.


30%

50%

Figure 12: How do these roles control and/or create their digital budgets?

60%

20%

10%

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0%Corporate

investment

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Fixedchargeback

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Pay toparticipate

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Self-fundingbased on revenue

received



There are notable differences in digital maturity by industry and region, but all organizations have a similar end goal in mind: to increase digital revenue and provide their customers with a world class customer experience.

After analyzing the year-over-year changes in digital organizations within the US, it’s clear that organizations are experiencing consistent revenue growth from this channel and are continuing to place more value on investing in the right talent to lead their organizations towards a profitable digital operating model.

The increasing investment organizations are planning to put towards social commerce technology indicates this trend will soon emerge as a popular commerce channel beyond Asia for B2C and perhaps even B2B. Organizations are beginning to bridge the consumer comfortability gap when it comes to

making purchases via social channels, and are taking stock of how China and other Asian countries have created a culture of commerce on social media. We predict the number of digital organizations investing in this strategy will continue to increase year or over.

Finally, we predict a potential plateau of team size as company leadership expects their teams to become more efficient to drive ROI. A large number of organizations we surveyed have digital teams of 200 or more employees, which could be the saturation point for teams within larger organizations. In order to keep digital revenue high, digital teams need to be more effective with their spend, so organizations will likely aim to hold their labor costs neutral. This means the focus will probably shift to developing the skillset of current teams and outsourcing more digital work rather than hiring additional team members.

NEXT GENERATION DIGITAL With the rapid growth of the digital ecosystem, organizations across industries and around the world are evaluating the effect their leadership structure, operating model and previous investments have had on their position in the competitive market and are using that information to help drive their investment strategies moving forward.


METHODOLOGYTo dive deeper into the structure of digital organizations around the world, in June 2016 Accenture Interactive surveyed more than 200 digital executives in digitally mature markets at a mix of B2B and B2C companies with more than $1B in revenue. Regions surveyed include North America (US, Canada); Europe (UK, Germany, France); Latin America (Brazil); APAC (China, Japan, Australia, India, Korea).

Specific titles included digital executives at manager level and above who have overarching expertise about the company and its structure. These include: CMO, CDO, CXO, senior digital executive or direct reports to the senior digital executive: SVP, VP, and Director in varying departments, including e-commerce, Digital, eBusiness: product management, channel management, creative, sales, web operations, digital marketing, analytics, merchandising, distribution, content management, etc.

Respondents work in the following industries: CPG, Manufacturing; Retail; Financial Services (Insurance, Banking); Communications, Media and Technology (High Technology, SaaS, Services, Social Media, and Emerging Technologies); Healthcare; Resources; Hospitality and Travel.

Most organizations surveyed have more than 1,000 full-time employees (83 percent) and one in three have more than 10,000 full-time employees. In terms of geographic scope, the majority of organizations are global (65 percent), 18 percent are regional, 16 percent operate solely in their own country, and only 1 percent are a customer, brand, and/or category within a country.

In future surveys, we plan to consider and probe into which countries and industries are seeing increased revenue growth from digital and how those respondents adapted their organizations and made investments to support that growth. We also hope to continue to monitor differences between emerging and established markets including investigating how the mobile-first nature of emerging markets is contributing to their high digital revenue. We also want to explore how emerging market respondents staff their digital teams and leverage 3rd party vendors to fuel their continued growth. Overall, we look to challenge our own hypothesis from this year’s study that leadership structure, operating models, and vendor partnerships are skewing towards a more fully-integrated and centralized digital strategy.

REFERENCESi Organizing for Success, “How the most effective

organizations are using digital to grow and achieve business goals,” February 2016, https://www.accenture.com/us-en/insight-organizing-success

ii Internet Retailer, “B2B e-commerce sales will top $1.13 trillion by 2020,” April 2015, https://www.internetretailer.com/2015/04/02/new-report-predicts-1-trillion-market-us-b2b-e-commerce

iii TechRepublic, “Brexit: 5 ways the UK leaving the EU will affect tech firms,” June 2016, http://www.techrepublic.com/article/brexit-5-ways-the-uk-leaving-the-eu-will-affect-tech-firmsect-tech-firms

iv Tech Insider, “I just used Facebook Messenger to buy some shirts and it was pretty awesome,” November 2015, http://www.businessinsider.com/everlane-shopping-on-facebook-messenger-2015-11/#i-was-pretty-pleased-with-the-selection-the-rep-had-made-for-me-4

v Eater, “How to Order Domino’s Pizza With a Pizza Emoji,” May 2015, http://www.eater.com/2015/5/13/8597819/how-to-order-dominos-pizza-emoji

vi GeekWire, “Chat commerce platform ReplyYes raises $2.5M, has already sold $1M in vinyl records via text,” April 2016, http://www.geekwire.com/2016/chatbot-commerce-startup-replyyes-raises-2-5m-already-sold-1m-vinyl-records-via-text

vii Internet Retailer, “B2B e-commerce sales will top $1.13 trillion by 2020,” April 2015, https://www.internetretailer.com/2015/04/02/new-report-predicts-1-trillion-market-us-b2b-e-commerce


https://www.accenture.com/us-en/insight-organizing-success

https://www.accenture.com/us-en/insight-organizing-success

https://www.internetretailer.com/2015/04/02/new-report-predicts-1-trillion-market-us-b2b-e-commerce



http://www.techrepublic.com/article/brexit-5-ways-the-uk-leaving-the-eu-will-affect-tech-firmsect-tech-firms



http://www.businessinsider.com/everlane-shopping-on-facebook-messenger-2015-11/#i-was-pretty-pleased-with-the-selection-the-rep-had-made-for-me-4



http://www.eater.com/2015/5/13/8597819/how-to-order-dominos-pizza-emoji

http://www.eater.com/2015/5/13/8597819/how-to-order-dominos-pizza-emoji

http://www.geekwire.com/2016/chatbot-commerce-startup-replyyes-raises-2-5m-already-sold-1m-vinyl-records-via-text



CONTACTTo learn more about how to use digital to grow and achieve your organization's business goals, please contact:

Saty ChawlaDigital Strategy and Business Architecture Lead Accenture Interactive

[email protected] @satyc

Bob E. BarrDigital Transformation and Commerce Lead Accenture Interactive

[email protected] @rbrebarr

ABOUT ACCENTURE INTERACTIVEAccenture Interactive, part of Accenture Digital, helps the world’s leading brands drive superior marketing performance across the full multichannel customer experience. Accenture Interactive offers integrated, industrialized and industry- driven digital transformation and marketing solutions. To learn more follow us @AccentureSocial and visit www.accenture.com/interactive.

ABOUT ACCENTUREAccenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions – underpinned by the world’s largest delivery network – Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 401,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.

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ORGANIZING FOR SUCCESS - Accenture€¦ · guidance on ways to track and measure success (see Figure 3). Digital traffic is still a popular metric (63 percent), but it is not the