Accenture and the World Economic Forum (WEF) developed a pioneering value-at-stake framework as part of WEF’s multi-year Digital Transformation Initiative (DTI). The framework measures the impact of digital technology on government services, business and society, and peers 10 years into the future to quantify the value these technologies can create.
We already know that Digital Transformation is redefining industries, making new business models possible and providing businesses with unparalleled opportunities for value creation. But how do we quantify this?
The latest research from Accenture, based on the DTI’s value-at-stake framework, entitled Unlocking Digital Value for Business and Society in South Africa provides the necessary answers.
The framework which was initially piloted in the UK, Denmark and India has now been applied to South Africa, with the analysis delivering extraordinary insight into the value that digital technologies can deliver per industry sector.
The report reveals that South Africa could unlock over R5 trillion in value over the next decade - with a value of R1.4 trillion created in 2026 alone.
Of the R5 trillion, the value at stake from digital transformation across five government services is just over R2 trillion (Figure 1), with Digital Transformation of nine industry sectors delivering a further R3.6 trillion (Figure 2).
Across these industries, transformation within financial services presented the highest potential for gains, representing 35% (over R1.2 trillion) of the value at stake of all 9 industry sectors combined.
For financial services, some of the key initiatives for unlocking value are platform businesses, new technologies replacing legacy systems, shifting channels and ways of interacting with customers as well as intermediaries, and lastly the move to driving real outcomes for clients rather than products alone.
CEO for Accenture Africa, Vukani Mngxati, said “The research highlights major areas in which South Africa can unlock value – both financially and in terms of creating meaningful outcomes for citizens in their daily lives. A specific set of digital tools underlies that value creation,”
Although the research covered a total of 96 digital initiatives in its analysis, it revealed that three core digital technologies and/or enablers – the three being IoT (Internet of Things) and connected devices, AI (Artificial Intelligence) and platforms – possessed the greatest potential for value creation, accounting for 68% of the total value at stake by 2026.
Each of these technologies brings new capabilities and adds enormous value but it is the combined capabilities of these and other technologies that drive true transformation.
Can Digital help Transform Societies?
While business leaders are aware of the rapid change that is bearing down upon them, few are ready. A recent Accenture survey indicates that 93 percent of CEOs expect technology to rapidly change their industry but only 20 percent feel well prepared.
Globally, there are numerous barriers standing in the way of digitalisation. These include outdated and complex regulatory frameworks, gaps in digital infrastructure and a lack of skills in “the new”. These barriers, and more, are prevalent in South Africa.
Digital transformation can help address several macro-economic, societal and technological challenges in South Africa. These include low economic growth, growing unemployment and dwindling competitiveness.
Conclusion:
Globally, business and government in developed and emerging economies are applying digital technologies to address some of their biggest challenges, from leakages to resource constraints and compliance. Their efforts are having a significant impact, extending beyond efficiencies and cost savings to create real value for consumers and society. However, their efforts are not just driven by the need to improve outputs and service levels— the next decade of digitalisation will look markedly different and businesses across industry sectors will need to be well prepared to take advantage of the sweeping transformation taking place in consumers’ lives, and the broader economy.
Over the next few months, Accenture will release detailed insights on challenges faced by organisations within nine industry sectors and across the five government services, as well as identify the digital initiatives to address such challenges and unlock value.
View the full report - Unlocking Digital Value for Business and Society in South Africa
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