In a world rife with disruptions, how can businesses not just survive but thrive? Dive into Accenture’s “Resiliency in the Making” report to discover actionable insights and strategies for building a resilient business model.
The “Resiliency in the Making” report by Accenture delves into the critical issue of business resilience in the face of various disruptions. From global pandemics to geopolitical unrest, businesses have faced numerous challenges that have revealed dangerously low levels of resiliency within engineering, supply, production, and operations. According to the report, this vulnerability has caused businesses to miss out on a staggering $1.6 trillion in revenue growth opportunity on average each year.
The Cost of Low Resiliency
The report highlights that many businesses have resorted to short-term fixes, such as inventory buildup, which has reached a value of $1.9 trillion. These reactive strategies have led to a 40% increase in product order-to-delivery lead times over the last two years.
Timeline of Recent Disruptions
The report provides a timeline of disruptions that have impacted businesses:
- 2020: Global pandemic, rise in demand for digital products, and truck driver shortages
- 2021: Cyber-attacks on production lines, semiconductor shortages
- 2022: War in Ukraine, raw material and critical mineral shortages
- 2023: Inflation, global talent shortages, extreme weather events
Three Actions to Build Resiliency
The report suggests three key actions for building business resiliency:
- Invest in Visibility and Predictability: Companies that invest in technology focused on visibility, predictability, and continuity can revolutionize their operations.
- Adapt and Advance: Businesses should adapt to challenges and make their production processes more resilient.
- Harness the Power of Disruption: More resilient companies have been able to capture an additional 1.2 percentage points in EBIT margin compared to their less resilient peers.
- Resilient companies are alerted to disruptions faster and recover sooner.
- Investing in the right mix of resiliency-focused capabilities can lead to better business results.
The “Resiliency in the Making” report by Accenture serves as a comprehensive guide for businesses looking to build a resilient model that can withstand various disruptions. The time to invest in resiliency is now, and the report provides actionable insights to achieve that.
Engage with Us
We’d love to hear your thoughts on building business resilience. Have you implemented any of these strategies? What challenges have you faced? Feel free to share your experiences and questions in the comments below.
Note: All quotes and data are sourced from the “Resiliency in the Making” report by Accenture.