Chinese companies need to reinvent to drive sustainable growth, report says
More than half of surveyed Chinese enterprises plan to double down on digitalization in 2023, while 46 percent of these enterprises said they would invest in artificial intelligence and automation in the next one to two years, according to a new report from global consultancy Accenture.
The report indicated that 22 percent of the interviewed Chinese enterprises are transforming all parts of their organizations, and 28 percent recognize that digital transformation is an ongoing process.
However, about two percent of the interviewed Chinese companies are undertaking holistic and continuous digital transformation steps to drive long-term and sustainable growth, it said.
"A convergence of external forces such as technology innovation and shifting consumer preferences is increasing disruption, and creating new challenges as well as opportunities for Chinese companies," said Samantha Zhu, chairperson of Accenture Greater China.
Enterprises need to embrace a strategy focused on reinventing every part of their business and adopt a new approach to digital transformation as part of their continuous reinvention, Zhu added.
This is the sixth consecutive year that Accenture has conducted China Digital Transformation Index research in collaboration with China Industrial Control Systems Cyber Emergency Response Team.
The latest research analyzed five new capabilities of enterprises, namely strategy, operations and innovation, digital core, sustainability and talent, that are key to drive business reinvention.
It surveyed 553 Chinese companies in eight industries, namely high-tech, automotive and industrial equipment, life sciences, consumer goods, retail, chemicals and construction materials, utilities, and natural resources.
The report said reinventors should lead a strategy across the entire business, prioritize innovation, and inspire entire industries to reach new heights.
Moreover, companies need to build a cloud-first infrastructure, create the data foundations for large language models and AI, work seamlessly across technology platforms and address security threats.