Chinese companies should continue to accelerate digital transformation and drive innovation relentlessly to improve their overall business performance, according to a new report released by global marketing consultancy Accenture.
The new report said many surveyed companies will steer digital transformation in more pragmatic ways, with 85 percent saying they would like to acquire some tangible results within 12 months of their digital investment.
It found only 11 percent of interviewed companies can be designated as "Digital Transformation Champions", which have generated more than half of their revenues from new areas of business in the past three years, and successfully digitized their businesses.
The research found the champions are recovering from the crisis faster and are achieving a better financial performance. By embedding digital solutions across their operations, these companies achieved a higher degree of integration and collaboration, which helped improve the level of insight, rapid response and decision-making, thus allowing them to better outmaneuver uncertainties.
In addition, 63 percent of the champions returned to their pre-crisis levels of productivity within three months, compared with 47 percent of other companies, and 74 percent of champions are expected to achieve positive revenue growth this year, compared with less than half of other companies.
"In times of crisis, the champions have demonstrated strong resilience and capabilities to keep innovating their businesses. However, most Chinese companies are threatened not only by the pandemic and market uncertainties, but also by their digital immaturity," said Zhu Wei, chairman of Accenture in China.
"The digital economy is growing fast in China. Companies with top-notch digital maturity can better manage risks and navigate market changes. When applying new technologies, Chinese companies should build up digital proficiency across their core business and processes," Zhu added.
He noted these companies also need to prioritize agile innovation to meet customer expectations, unlock the potential of technology and adapt to challenging business environments.
It also suggested business leaders better seize opportunities during recovery and drive future growth, including developing data transparency of all businesses, building resilient digital supply chains and growing agile innovation capabilities.
This is the third consecutive year Accenture has conducted China Digital Transformation Index research in collaboration with China Industrial Control Systems Cyber Emergency Response Team. Researchers studied nearly 400 Chinese companies across nine industries.