g-f(2)2626: Building a Resilient Digital Core for Future Growth

 

genioux Fact post by Fernando Machuca and ChatGPT

Introduction

In today's rapidly evolving digital landscape, building a resilient and adaptable digital core is crucial for businesses aiming to thrive amidst continuous technological advancements. The Harvard Business Review article "How to Integrate Cloud, Data, and AI Technologies — and Make Your Company More Adaptable" by Paul R. Daugherty, H. James Wilson, Karthik Narain, and Prashant Shukla, offers valuable insights on how organizations can effectively integrate cloud, data, and AI technologies to build a robust digital foundation. This post, "g-f(2)2626: Building a Resilient Digital Core for Future Growth," synthesizes these insights to guide companies in crafting a strategy that balances growth and reinvention, ensuring long-term adaptability and success in the g-f New World.

genioux GK Nugget

"To future-proof your business, build a digital core that seamlessly integrates cloud, data, and AI technologies, enabling continuous reinvention and growth." — Fernando Machuca and ChatGPT, July 16, 2024

genioux Foundational Fact

A successful digital strategy hinges on developing a flexible digital core that integrates cloud, data, and AI technologies. This core supports business efficiency and effectiveness while remaining adaptable to new technological innovations. According to Accenture's research, companies with a reinvention-ready digital core achieve a significant acceleration in revenue growth and profitability, highlighting the strategic importance of this approach.

The 10 Most Relevant genioux Facts

1. Digital Core Importance: A strong digital core is essential for supporting business efficiency and enabling quick adoption of new technologies.
2. 60:40 Effect: Companies with a reinvention-ready digital core experienced a 60% acceleration in revenue growth and a 40% increase in profitability.
3. Continuous Reinvention: The era of radical disruption requires businesses to continuously reinvent themselves, integrating the latest technological innovations like generative AI.
4. Human + Machine Synergy: Successful companies use AI to augment human capabilities, not replace them, creating a synergy that drives greater value.
5. Strategic Investments: Leading companies boost strategic investments in innovation by at least 6% year-over-year, focusing on emerging technologies to stay ahead.
6. Technical Debt Management: Balancing technical debt with future investments is crucial for maintaining a robust digital core capable of supporting new technologies.
7. Value-Led Approach: A business case for AI should consider costs, benefits, and scalability, prioritizing end-to-end capabilities across the value chain.
8. Case Study - Standard Chartered: The bank's strategy of combining legacy system maintenance with innovative digital offerings demonstrates effective digital core integration.
9. AI and Innovation: Companies with industry-leading digital cores are expected to create twice as much value from generative AI by reinventing more functions.
10. First-Mover Advantage: Rapid adoption of new technologies, enabled by a flexible digital core, allows companies to gain first-mover and fast-follower advantages.

Conclusion

The journey towards building a resilient digital core is integral for businesses aiming to thrive in the digital age. "g-f(2)2626: Building a Resilient Digital Core for Future Growth" highlights the importance of integrating cloud, data, and AI technologies to create a flexible and powerful foundation. By following the strategic insights from the HBR article, companies can ensure continuous reinvention, drive significant growth, and maintain a competitive edge in the g-f New World.

REFERENCES

The g-f GK Context

Paul R. Daugherty, H. James Wilson, Karthik Narain, and Prashant Shukla, How to Integrate Cloud, Data, and AI Technologies — and Make Your Company More Adaptable, Harvard Business Review, July 17, 2024.

ABOUT THE AUTHORS

Paul R. Daugherty is Accenture’s chief technology and innovation officer. He is coauthor, with H. James Wilson, of Human + Machine: Reimagining Work in the Age of AI (HBR Press, New and Expanded Edition, 2024).

H. James Wilson is the global managing director of technology research and thought leadership at Accenture Research. He is coauthor, with Paul R. Daugherty, of Human + Machine: Reimagining Work in the Age of AI (HBR Press, New and Expanded Edition, 2024).

Karthik Narain is group chief executive of Technology at Accenture. He oversees cloud, data & AI, enterprise & industry technologies, security and ecosystem partnerships.

Prashant Shukla is principal director at Accenture Research.

Classical Summary: "How to Integrate Cloud, Data, and AI Technologies — and Make Your Company More Adaptable"

In the Harvard Business Review article "How to Integrate Cloud, Data, and AI Technologies — and Make Your Company More Adaptable," the authors explore the critical importance of developing a strong, flexible digital core to support business growth and adaptability in an era of continuous technological disruption. Based on Accenture’s extensive research involving more than 1,500 large global companies, the article emphasizes that companies with a robust digital core experience a significant acceleration in revenue growth and profitability, a phenomenon termed the “60:40 effect.”

Key Insights:

1. Digital Core Definition:
• A digital core integrates cloud, data, and AI technologies to form an interconnected foundation that balances growth and reinvention. This core enhances operational efficiency, supports innovation, and ensures flexibility to adapt to new technological advancements.
2. 60:40 Effect:
• Companies with a reinvention-ready digital core achieve a 60% acceleration in their revenue growth rate and a 40% increase in profitability compared to their peers. This highlights the substantial benefits of a well-integrated digital infrastructure.
3. Continuous Reinvention:
• The pandemic and the rise of generative AI have underscored the need for continuous reinvention. Organizations must be prepared to integrate new technologies rapidly and effectively to stay competitive.
4. Building a Digital Core:
• Cloud Practices: Utilize cloud technologies for agility and innovation.
• Data and AI: Leverage data and AI for differentiation and to create next-generation experiences.
• Applications and Platforms: Implement applications and platforms to accelerate growth and optimize operations.
• Security: Ensure security by design at every level.
5. Strategic Tenets for a Digital Core:
• Lead with Value: Focus on business capabilities powered by AI, reimagined processes, and new ways of working. For example, Standard Chartered’s approach combines legacy system maintenance with innovative digital offerings.
• Boost Strategic Investments: Continuously increase investments in strategic innovation by at least 6% annually, redirecting savings from reduced operational costs to fund emerging technologies like generative AI.
• Balance Technical Debt: Manage technical debt by allocating a portion of the IT budget to remediation activities, ensuring a solid foundation for scaling new technologies.

Conclusion:

Building a reinvention-ready digital core is crucial for companies aiming to thrive in today’s fast-paced digital environment. By integrating cloud, data, and AI technologies, organizations can create a flexible, powerful foundation that supports both current business objectives and future growth opportunities. This strategic approach enables companies to stay ahead of technological advancements, optimize operations, and drive significant value creation.

This summary captures the essence of the article, outlining the importance of a digital core, the benefits of achieving the 60:40 effect, and the strategic steps necessary for building a resilient and adaptable digital foundation.

Paul R. Daugherty

Paul R. Daugherty is the Chief Technology and Innovation Officer (CTIO) at Accenture¹. He is a member of Accenture’s Global Management Committee¹. As a visionary in shaping the innovation of technology, Paul leads and executes Accenture’s technology strategy, leveraging the company’s leading-edge capabilities and research and development to reinvent the future of business¹.

He leads Accenture’s Innovation strategy and organization, including Accenture Labs and The Dock in Dublin, Ireland¹. He directs Accenture’s global research and development into emerging technology areas such as generative AI, quantum computing, science tech, and space technology¹. He leads a dedicated innovation group that not only designs and delivers transformational business and technology solutions, but also invests in, and partners with, pioneering companies to pilot and incubate new technologies¹.

Paul also leads Accenture’s annual Technology Vision report, hosts its annual Innovation Forum event, and leads Accenture Ventures, which he founded to focus on strategic equity investments to accelerate growth¹. Previously, Paul served as Accenture's Group Chief Executive – Technology, where he led all aspects of Accenture's Technology business¹. In this role, he led the formation of Accenture Cloud First to help clients across every industry accelerate their digital transformation and realize greater value at speed and scale by rapidly becoming “cloud first” businesses¹.

He oversaw the launch of the Accenture Metaverse Continuum business group, which focuses market-leading capabilities in customer experience, digital commerce, extended reality, blockchain, digital twins, artificial intelligence, and computer vision to help clients design, execute and accelerate their metaverse journeys¹. Most recently, he helped lay the groundwork for Accenture’s $3 billion investment in its Data & AI practice to help clients rapidly and responsibly advance and use AI, including Generative AI, to achieve greater growth, efficiency, and resilience¹.

Paul is a passionate advocate for gender equality in the workplace and STEM-related inclusion and diversity initiatives¹. For more than six years, he has been a member of the board of directors of Girls Who Code, an organization that seeks to support and increase the number of women in computer science careers¹. Paul serves on the board of directors of Avanade, the leading provider of Microsoft technology services¹. He also serves on the boards of the Computer History Museum and the Computer Science and Engineering program at the University of Michigan¹.

In 2023, Paul received the prestigious St. Patrick’s Day Science Medal for Industry from Science Foundation Ireland as well as a nomination to Thinkers50, a ranking of the world’s most influential management thinkers¹. He also accepted the FASPE Award for Ethical Leadership in 2019 for his work in applying ethical principles to the development and use of artificial intelligence technologies¹.

Paul joined Accenture in 1986⁵. He earned his Bachelor of Science degree in computer engineering from the University of Michigan⁵.

Source: Conversation with Copilot, 7/17/2024

(1) Paul Daugherty | Accenture. https://www.accenture.com/us-en/about/leadership/paul-daugherty.

(2) Paul Daugherty | World Economic Forum. https://www.weforum.org/people/paul-daugherty/.

(3) Paul R Daugherty, Accenture PLC: Profile and Biography. https://www.bloomberg.com/profile/person/17327900.

(4) Paul Daugherty | World Economic Forum. https://bing.com/search?q=Paul+R.+Daugherty+Accenture+biography.

(5) Paul Daugherty - Chief Technology & Information Officer @ Accenture .... https://www.crunchbase.com/person/paul-daugherty.

(6) Paul R. Daugherty – Audio Books, Best Sellers, Author Bio - Audible.com. https://www.audible.com/author/Paul-R-Daugherty/B0775YGDFH.

H. James Wilson

H. James Wilson, often referred to as Jim Wilson, is the Global Managing Director of Thought Leadership & Technology Research at Accenture¹⁴. He leads research programs on the impact of technology on work, innovation, and business performance¹⁴.

Wilson is the co-author of two significant books: "Radically Human: How New Technology is Transforming Business and Shaping our Future" and "Human + Machine: Reimagining Work in the Age of AI", both published by Harvard Business Review Press¹⁴. His work focuses on the intersection of people and technology, and how this nexus is transforming competition and creating new opportunities for businesses¹.

In his book "Radically Human", Wilson, along with co-author Paul Daugherty, presents a strategic framework that challenges current thinking around five business fundamentals — Intelligence, Data, Expertise, Architecture, and Strategy (IDEAS) — and explains how they are transforming competition¹. The book provides business leaders with a new playbook for defining success and applying technology in business and society¹.

Before his current role, Wilson served as the Global Managing Director of IT and Business Research at Accenture³. He has been instrumental in demystifying cutting-edge technologies and providing a blueprint for leaders to create business value while building a more human-centered, trust-based, and sustainable enterprise².

Wilson's work has been recognized for its insights into the rapidly advancing digital technologies and their impact on enterprises. His research has helped businesses understand and navigate the complexities of the digital age, enabling them to innovate and gain a competitive advantage¹².

Source: Conversation with Copilot, 7/17/2024

(1) New Book “Radically Human” Shows Business Leaders New ... - Accenture. https://newsroom.accenture.com/news/2022/new-book-radically-human-shows-business-leaders-new-path-to-success-by-taking-a-human-centric-approach-to-technology-innovation.

(2) H. James Wilson, Author at Ivey Business Journal. https://iveybusinessjournal.com/author/hwilson/.

(3) Human + Machine | Reimagining Work in the Age of AI | Accenture. https://www.accenture.com/us-en/insights/technology/human-plus-machine.

(4) Radically Human Book | Accenture. https://www.accenture.com/us-en/insights/technology/radically-human-book.

Karthik Narain

Karthik Narain currently serves as the Group Chief Executive – Technology at Accenture¹. His role spans cloud, data & AI, enterprise & industry technologies and security, as well as technology ecosystem partnerships and its Advanced Technology Centers¹. He is a member of Accenture’s Global Management Committee¹.

Prior to his appointment as group chief executive, Karthik served as the lead for Accenture Cloud First and the company’s Data & AI business¹. In these roles, he led teams helping clients move, shape and operate their businesses in the cloud and unlock the power of data & AI¹. Since the formation of Cloud First in 2020, cloud has become a top growth driver for the company¹.

Karthik has a track record of investing in the development of people, having tripled cloud-certified talent in the past three years¹. He has extended the company’s leadership with ecosystem partners and driven substantial investments in solutions, acquisitions and talent to keep Accenture at the forefront of the industry¹.

Most recently, Karthik helped define Accenture’s approach and establish an early lead in generative AI through investments in its Generative AI Center of Excellence; new, signature thought leadership pieces; new ecosystem partnerships; and a new data & AI strategy for the company¹.

Karthik, who joined Accenture in 2015, brings a diverse set of experiences to his role as group chief executive¹. Over his 24-year career, he has led many strategic and innovative programs for clients across a variety of industry sectors, including Financial Services, High Tech and Software and Platforms¹³.

Karthik previously led Accenture Technology in North America, helping guide Global 2000 brands in using the power of the cloud and other technologies to transform their businesses¹. He is also an active sponsor in the Technology Women’s Executive Leadership program, supporting the growth of Accenture’s most senior women leaders in Technology¹.

Karthik is also Chair of the Board of Avanade, Accenture’s joint venture with Microsoft¹⁴⁵.

Source: Conversation with Copilot, 7/17/2024

(1) Karthik Narain | Accenture. https://www.accenture.com/us-en/about/leadership/karthik-narain.

(2) Karthik Narain Profile: Contact Information & Network - PitchBook. https://pitchbook.com/profiles/person/247319-47P.

(3) Group Chief Executive – Technology, Accenture | Avanade UK. https://www.avanade.com/en-gb/about-avanade/leadership/board-of-directors/karthik-narain.

(4) Group Chief Executive – Technology, Accenture | Avanade US. https://www.avanade.com/en-us/about-avanade/leadership/board-of-directors/karthik-narain.

(5) Accenture Announces Leadership Appointments. https://newsroom.accenture.com/news/2024/accenture-announces-leadership-appointments.

Prashant P. Shukla

Prashant P. Shukla is the Principal Director of Technology Research at Accenture¹. He also serves as the Accenture Program Lead for MIT’s initiative on the Digital Economy (IDE)¹.

In his role at Accenture, Shukla leads research programs that explore the impact of technology on work, innovation, and business performance¹. His work often focuses on the intersection of people and technology, and how this nexus is transforming competition and creating new opportunities for businesses¹.

Shukla has authored several articles for the Ivey Business Journal, where he shares insights on topics such as quantum computing, technology investments, and the role of AI in business¹. His writings provide valuable insights for corporate executives, helping them understand and navigate the complexities of the digital age¹.

In addition to his work at Accenture, Shukla is actively involved in academia. He collaborates with MIT on their Digital Economy initiative, contributing to research and discussions on how digital technologies are transforming business and society¹.

Before joining Accenture, Shukla had a diverse career spanning various roles and industries. His extensive experience and deep understanding of technology trends make him a valuable asset to Accenture and the broader tech industry¹.

Please note that this information is based on available online resources and may not include the most recent updates on Prashant Shukla's career¹.

Source: Conversation with Copilot, 7/17/2024

(1) Prashant P. Shukla, Author at Ivey Business Journal. https://iveybusinessjournal.com/author/pshukla/.

(2) Reinventing with a Digital Core - Accenture. https://www.accenture.com/content/dam/accenture/final/accenture-com/document-2/Accenture-Digital-Core-Chapter-1.pdf.

(3) Prashant Shukla | IEEE Xplore Author Details. https://ieeexplore.ieee.org/author/38573967100.

(4) ‪Prashant Shukla‬ - ‪Google Scholar‬. https://scholar.google.com/citations?user=w1b-ixUAAAAJ.

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REFERENCES

“genioux facts”: The online program on "MASTERING THE BIG PICTURE OF THE DIGITAL AGE”, g-f(2)2626, Fernando Machuca and ChatGPT, July 17, 2024, Genioux.com Corporation.

The genioux facts program has established a robust foundation of over 2625 Big Picture of the Digital Age posts [g-f(2)1 - g-f(2)2625].

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