Technological innovation: Covid-19 forces companies to act

In an increasingly digitalized world, companies must place a new focus on the balance between "value" and "values" in order to remain competitive and successful in the future. Aligning business values with the values and expectations of their customers and employees - that is a central challenge of our time. This was the conclusion of the "Technology Vision" study by the consulting firm Accenture. The 20th edition of the annual study highlights the key trends that will redefine businesses over the next three years. COVID-19 has made technological innovation more relevant and urgent than before, and developments have been accelerated.

Technological innovation comes to the fore

According to the study, despite people's growing willingness to integrate technology into their lives, companies' efforts to meet needs and expectations may fall short. While today's situation is sometimes referred to as a "technology backlash" or "technology backlash," this term fails to recognize the extent to which our society uses and benefits from technology. Seventy-nine percent of the 66 Swiss IT and business decision-makers surveyed (the study had more than 6,000 participants worldwide) said that technology has become an inseparable part of our society. As part of this year's study, Accenture also surveyed 2,000 consumers (500 each in China, India, the U.K. and the U.S.), 70 percent of whom believe that technological innovation will become more or significantly more prominent in their lives over the next three years.

Business and technology models collide

Rather, it is a "tech clash" - a clash of business and technology models that do not match people's needs and expectations and require new ways of thinking as well as new approaches. For example, people's concerns about privacy have skyrocketed. Startups like Inrupt are already working to bridge the sharply criticized gap between people's expectations and today's standards. Inrupt has developed an architecture called Solid that links data together while giving people more control over their personal data.

The pressure on companies to be innovative is increasing

The COVID 19 pandemic has shown the world how much technology can help humanity overcome major challenges. Robots disinfect cities, cook hospital food and deliver packages. Smart devices monitor patients' health and collect valuable health data. Collaboration between humans and artificial intelligence (AI) is moving out of the proof-of-concept phase faster than we thought. While much of the world is at a standstill or on hold, innovation is accelerating.

Five key trends

However, the acute, immediate need for technological innovation is only one side of the equation. For companies, it is important to maintain the pace born during the crisis and the increased willingness to change. According to this study, sticking to existing models not only risks upsetting customers or demotivating employees, but could permanently limit potential innovation and growth in the future. The study identifies five key trends that companies must address over the next three years to not only mitigate the tech clash, but also to realize new business value driven by, among other things, stronger, more trusting relationships with stakeholders:

• The I in Experience: Companies will need to create personalized experiences that expand individuals' agency and choice. Through collaboration, a passive audience will become active participants. 88 percent of those surveyed in Switzerland think that companies will only remain competitive in this new decade if they develop their relationships with their customers as a partnership. 77 percent of Swiss executives agree that organizations must dramatically transform the experiences that bring technology and people together, in a more human way.
• AI and Me: Artificial intelligence (AI) should support humans in their work, not act as a safety net for automation. The capabilities of technology are constantly evolving. Therefore, it is imperative that companies also rethink the way they work. They should make AI a generative part of their processes - with trust and transparency at the core. 71 percent of Swiss companies said they already use inclusive or human-centric approaches to support human-machine collaboration.
• The Dilemma of Smart Things: In a world that is entering a kind of permanent beta phase, ownership of individual products is being questioned. As companies strive to introduce a new generation of products driven by digital experiences, addressing this new reality becomes critical to success. 80 percent of Swiss executives said their company's connected products and services will receive more or significantly more updates in the next three years.
• Robots in the Wild: Robotics is no longer confined to warehouses or factory floors. 5G is accelerating this rapidly growing trend, so every company should rethink its future with robotics in mind. However, executives are divided on how their employees will embrace the technology, with 62 percent saying that dealing with robotics will be challenging for their employees. In contrast, 38 percent believe their employees will have an easy time with the new technology.
• Innovation DNA: Companies have access to an unprecedented amount of disruptive technology, such as distributed ledger, AI, extended reality, and quantum computing. For companies to handle these appropriately while evolving at the required speed of markets, they need their own unique innovation DNA. Nearly three-quarters (70 percent) of executives are certain that the stakes for innovation have never been higher. Getting it "right" requires breaking new ground - with ecosystem partners and third parties.

Need to adapt business and technology models

The long-term challenge for companies is to adapt their business and technology models - for successful recovery once the worst of the pandemic is over. The full extent of COVID-19's impact on human life, the global economy and businesses is not yet known. What is certain is that companies can meet these challenges by driving innovation by adapting their business and technology models. The question for companies is: How quickly can these adjustments succeed?

Source: Accenture