Technology has surpassed talent and climate change as the primary disruptor of businesses in 2023, according to a report by Accenture. The Irish-American professional services company published its annual report titled Accenture’s Pulse of Change: 2024 Index, which ranks the factors causing change in businesses. The report, based on a survey of over 3,400 C-suite leaders conducted from October to November 2022, found that technology has risen to the top spot, jumping from its previous ranking of fifth in 2022. Talent now occupies the second spot, while climate change has moved up to third place from fifth place.
The report also revealed that the economic factor dropped to fourth place from its second-place position in 2022, and geopolitics fell to fifth place from its previous third spot. Consumer and social factors were ranked sixth, down from their previous fourth-place ranking.
Accenture’s analysis of their index indicator, which takes into consideration these six factors, suggests that the rate of change has increased by 33% in the past year. Over the past four years, the rate of change has experienced a significant 183% increase. Jack Azagury, the group chief executive for Accenture’s strategy and consulting division, emphasized the need for businesses to undergo structural change to keep up with the pace of change. Incremental changes are no longer sufficient, and embracing technology is key to success.
The report also highlighted that 88% of respondents anticipate an even faster rate of change in 2024. Among those surveyed, 60% see this as an opportunity, while 68% expect revenue growth to accelerate in the same year. However, more than half of the respondents, 52%, admitted that they are not fully prepared to respond to the anticipated changes.
In conclusion, the Accenture report underscores that technology has become the primary driver of change in businesses, overtaking talent and climate change. With an increasing rate of change, businesses need to embrace technology and continuously reinvent themselves to stay competitive in the next decade. While there are opportunities for growth, many companies still feel unprepared to navigate the evolving landscape. It is essential for businesses to proactively adapt to these changes to thrive in the years ahead.
