European Small business Leaders Self-confident In spite of Present Headwinds But Threat Underinvesting in Technological know-how for Extensive-Term Progress, Accenture Report Finds
European Business Leaders Confident Regardless of Recent Headwinds But Possibility Underinvesting in Technologies for Prolonged-Expression Growth, Accenture Report Finds
DAVOS, Switzerland Jan. 16, 2023 – Although 65% of European organization leaders concur they are dealing with the most tough running ecosystem at any time, an even bigger proportion (77%) are self-assured about their organizations’ capability to speed up expansion in an economic downturn, according to a new report from Accenture (NYSE: ACN).
In accordance to the “Accelerating Europe’s path to reinvention” report, soaring vitality expenses are the top obstacle impacting margins for European providers, pointed out by 19% of respondents, followed by offer chain disruptions (14%).
Despite these challenges, 81% of European small business leaders consider their organizations are effectively-positioned to seize long term advancement, having triumph over the pandemic.
Produced at the Globe Financial Forum’s Annual Meeting in Davos, the report appears at the most urgent problems European providers are struggling with, their strengths and weaknesses, and how they can reinvent them selves to continually adapt to a volatile environment, when growing competitiveness, accelerating advancement and strengthening profitability.
“The resilience business enterprise leaders have demonstrated could reveal their self confidence in navigating existing headwinds, such as an energy crisis that is hitting Europe especially difficult,” claimed Jean-Marc Ollagnier, CEO of Accenture for Europe. “However, what is at stake for European businesses is their competitiveness above the extensive time period. The more and more unstable macroeconomic environment, merged with the tempo of technological innovation and the have to have to speed up the electrical power changeover, necessitates organizations to have interaction in a deliberate strategy to continuously reinvent their enterprise. It is via a Total Organization Reinvention that European corporations can boost competitiveness and prosper more than the extensive expression.”
European expansion is lagging friends, with a deficit in technological innovation financial investment
The report, which analyzes the fiscal efficiency of virtually 3,000 companies globally, located that although European providers report potent profitability, they are slower to grow revenues as opposed to their friends in North America and Asia Pacific.
To better comprehend in which European organizations stand, the report also examines how they execute as opposed with friends in North America and Asia Pacific across six locations: expertise, know-how, provide chain and functions, income and shoppers, liquidity and fees, and sustainability.
According to the evaluation, European businesses are outperforming their peers on sustainability, talent and liquidity and charge administration. On the other hand, they are significantly at the rear of in escalating gross sales and in applying technologies to strengthen best-line advancement.
European providers are also much less most likely to innovate making use of emerging systems, shift to a technology-pushed organization model and have a digital-savvy leadership when compared to North American and Asia Pacific corporations.
“European companies’ strong profitability and reduced growth sample indicates they are far more probable to squeeze worth from current small business streams than developing new kinds,” explained Michael Brueckner, Main Strategy Officer of Accenture for Europe. “While optimizing charges and maximizing latest profitability are critical, it must be performed to also crank out liquidity to commit for the upcoming. They must also capitalize on their strengths in sustainability and means to produce on personnel encounter, whilst pursuing know-how-driven advancement prospects.”
Unprecedented periods call for an unprecedented response
According to the report, while European firms have created incredible resilience in recent yrs, they must now reinvent by themselves to address the exclusive difficulties they deal with.
The report indicates strategic measures European providers should just take to start their reinvention, concentrating on their strengths in sustainability and expertise although addressing their deficits in technological innovation and client demands. These measures incorporate:
- 
- Build their digital main rapidly to empower business design reinvention: Drive ongoing, compressed and scaled transformation, which include by establishing a electronic basis making use of cloud, data and AI to scale new processes, innovations and remedies across the organization. This is an ongoing effort and hard work to construct a system for reinvention by transformation packages that fund them selves via the price they develop.
- Speed up the electricity changeover: Work across ecosystems to middle the European economic system close to net zero and round rules for international competitiveness. Advocate for strong business and governmental cooperation, procedures and incentives to degree the international enjoying discipline and rapid-track execution. Speed up cross-market decarbonization partnerships and foster massive-scale adoption of early-stage methods. Improving energy effectiveness, not only to navigate the electrical power disaster but as a long-time period resolution to minimize emissions and prices.
- Align to new shopper wants: See buyers in just the context of their total life, using human and equipment intelligence to recognize them and their motivations in a holistic and dynamic way. Solve for their shifting needs by changing a single-size-fits-all offerings with additional personalised products and solutions, extended partnerships and rethinking expertise, engineering and processes to travel value and loyalty.
- Make expertise strategy core to enterprise system: Put persons at the centre of organization reinvention and establish chief human resources officers as the catalysts for change. Assure strong connections and collaboration throughout the complete C-suite and deliver all men and women along on the reinvention journey, making new approaches of performing. Obtain and build expertise in modern techniques, applying technological know-how and information to attain a deep, granular being familiar with of present-day and future-era skill wants. Infuse a culture of inclusion throughout the firm, so individuals from all ranges can lead to their comprehensive likely, supported by a robust sense of belonging and reason.




“Today, most providers are reinventing pieces of their corporation,” extra Ollagnier. “But to realize success in a small business setting that is now being redefined, they will require to adjust almost everything from their operating versions to new ways of working. These unparalleled moments contact for an unparalleled response from European companies. That will need a bold and visionary strategy to transformation that abandons very best apply in order to arrive at a new effectiveness frontier. It is a pivotal moment for a stronger Europe.”
You can examine the report Accelerating Europe’s path to reinvention in Accenture Foresight, our new assumed management app, which gives a personalized feed of all our newest reports, circumstance research, weblogs, interactive facts charts, podcasts and more. Obtain the app at http://www.accenture.com/foresight
About the research
Accenture’s “Accelerating Europe’s path to reinvention” report is primarily based on study responses from 2,000 organization leaders across Europe (1,450), the United States (300) and China (250), spanning 12 industries. The survey was carried out from October 24, 2022, to November 30, 2022. The report also features corporate fiscal efficiency and enterprise strengths examination of 2,854 firms globally, such as 1,344 European organizations. Business strengths and weaknesses were being analyzed throughout six spots that have demonstrated affect on worthwhile development: Liquidity and prices Gross sales and Customers Talent Supply chain and functions Sustainability and Technological innovation.
About Accenture

Accenture is a primary worldwide professional expert services corporation that can help the world’s leading companies, governments and other organizations establish their digital core, optimize their functions, accelerate revenue growth and enhance citizen services—creating tangible value at speed and scale. We are a expertise and innovation-led business with 738,000 men and women serving customers in far more than 120 international locations. Technologies is at the main of transform right now, and we are one of the world’s leaders in encouraging generate that improve, with robust ecosystem relationships. We combine our strength in know-how with unmatched field experience, useful abilities and international supply capacity. We are uniquely capable to deliver tangible outcomes since of our wide array of providers, solutions and property throughout Tactic & Consulting, Technologies, Functions, Field X and Accenture Tune. These capabilities, jointly with our tradition of shared success and dedication to building 360° benefit, allow us to assistance our clientele thrive and make reliable, long lasting interactions. We evaluate our success by the 360° price we develop for our clientele, every single other, our shareholders, partners and communities. Take a look at us at www.accenture.com.
# # #
Contacts:
Francois Luu
Accenture
+33 1 53 23 68 55
[email protected]
Andy Rowlands
Accenture
+44 7952 594784
[email protected]
