European Small business Leaders Assured Despite Present Headwinds But Possibility Underinvesting in Technologies for Prolonged-Phrase Progress, Accenture Report Finds

European Business Leaders Confident Despite Existing Headwinds But Chance Underinvesting in Technological know-how for Extensive-Time period Advancement, Accenture Report Finds

DAVOS, Switzerland Jan. 16, 2023 – Even though 65% of European organization leaders agree they are dealing with the most hard running ecosystem at any time, an even greater proportion (77%) are self-confident about their organizations’ ability to accelerate progress in an economic downturn, in accordance to a new report from Accenture (NYSE: ACN).
According to the “Accelerating Europe’s route to reinvention” report, climbing energy expenses are the top rated problem impacting margins for European corporations, described by 19% of respondents, followed by supply chain disruptions (14%).
Despite these problems, 81% of European enterprise leaders think their businesses are perfectly-positioned to capture foreseeable future growth, having overcome the pandemic.
Unveiled at the Planet Economic Forum’s Once-a-year Meeting in Davos, the report appears at the most pressing concerns European firms are experiencing, their strengths and weaknesses, and how they can reinvent them selves to continually adapt to a volatile planet, although expanding competitiveness, accelerating progress and increasing profitability.
“The resilience small business leaders have shown could reveal their self-assurance in navigating latest headwinds, including an strength disaster that is hitting Europe specifically really hard,” said Jean-Marc Ollagnier, CEO of Accenture for Europe. “However, what is at stake for European providers is their competitiveness about the very long time period. The significantly unstable macroeconomic ecosystem, merged with the tempo of technological innovation and the require to accelerate the electrical power changeover, needs businesses to interact in a deliberate system to continually reinvent their business enterprise. It is by way of a Complete Organization Reinvention that European businesses can enhance competitiveness and thrive over the very long phrase.”
European growth is lagging friends, with a deficit in know-how financial investment
The report, which analyzes the fiscal overall performance of just about 3,000 organizations globally, observed that though European corporations report powerful profitability, they are slower to expand revenues as opposed to their friends in North The us and Asia Pacific.
To better have an understanding of the place European companies stand, the report also examines how they accomplish as opposed with friends in North The us and Asia Pacific throughout 6 spots: expertise, engineering, supply chain and operations, sales and consumers, liquidity and expenses, and sustainability.
According to the analysis, European corporations are outperforming their friends on sustainability, talent and liquidity and charge administration. Nevertheless, they are substantially at the rear of in growing revenue and in utilizing technologies to increase best-line growth. 
European organizations are also much less most likely to innovate making use of rising systems, change to a technology-driven business product and have a electronic-savvy management in contrast to North American and Asia Pacific companies.
“European companies’ strong profitability and decreased progress pattern suggests they are additional very likely to squeeze benefit from current organization streams than increasing new kinds,” explained Michael Brueckner, Main Approach Officer of Accenture for Europe. “While optimizing expenditures and maximizing present-day profitability are vital, it will have to be performed to also produce liquidity to invest for the future. They should really also capitalize on their strengths in sustainability and skill to provide on staff knowledge, whilst pursuing engineering-driven advancement chances.”
Unprecedented periods get in touch with for an unparalleled reaction
In accordance to the report, when European enterprises have constructed incredible resilience in latest many years, they must now reinvent them selves to address the exclusive worries they deal with.
The report implies strategic measures European companies ought to take to start out their reinvention, focusing on their strengths in sustainability and expertise when addressing their deficits in technologies and customer requirements. These techniques incorporate:


  • Make their electronic main swiftly to allow business model reinvention: Travel constant, compressed and scaled transformation, including by establishing a electronic foundation working with cloud, information and AI to scale new procedures, improvements and solutions throughout the business. This is an ongoing exertion to construct a system for reinvention by way of transformation programs that fund by themselves by means of the price they create.
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  • Accelerate the power transition: Do the job across ecosystems to center the European economy all around internet zero and circular rules for world competitiveness. Advocate for sturdy business and governmental cooperation, guidelines and incentives to stage the world-wide taking part in industry and speedy-monitor execution. Accelerate cross-field decarbonization partnerships and foster big-scale adoption of early-stage alternatives. Bettering vitality effectiveness, not only to navigate the energy disaster but as a very long-phrase answer to lower emissions and expenditures.
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  • Align to new consumer needs: See prospects inside the context of their whole lives, applying human and machine intelligence to recognize them and their motivations in a holistic and dynamic way. Clear up for their shifting needs by changing one particular-measurement-suits-all offerings with additional individualized items and solutions, prolonged partnerships and rethinking talent, engineering and processes to push worth and loyalty.
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  • Make expertise tactic core to company tactic: Area men and women at the middle of enterprise reinvention and create chief human means officers as the catalysts for transform. Ensure robust connections and collaboration across the whole C-suite and bring all people today alongside on the reinvention journey, generating new methods of performing. Accessibility and make talent in ground breaking strategies, employing know-how and information to acquire a deep, granular knowing of current and subsequent-generation ability requires. Infuse a society of inclusion throughout the group, so folks from all ranges can add to their entire likely, supported by a sturdy perception of belonging and function. 
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“Today, most companies are reinventing pieces of their group,” included Ollagnier. “But to thrive in a organization natural environment that is currently getting redefined, they will require to alter almost everything from their working models to new methods of doing the job. These unparalleled instances simply call for an unparalleled reaction from European businesses. That will call for a daring and visionary technique to transformation that abandons greatest follow in buy to attain a new overall performance frontier. It is a pivotal moment for a much better Europe.”
You can examine the report Accelerating Europe’s path to reinvention in Accenture Foresight, our new assumed management app, which supplies a individualized feed of all our most up-to-date reviews, case research, blogs, interactive facts charts, podcasts and far more. Download the app at
About the study
Accenture’s “Accelerating Europe’s route to reinvention” report is dependent on survey 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 contains company financial functionality and small business strengths analysis of 2,854 companies globally, such as 1,344 European companies. Company strengths and weaknesses were analyzed throughout 6 areas that have demonstrated effect on rewarding expansion: Liquidity and prices Income and Clients Talent Provide chain and functions Sustainability and Engineering.
About Accenture
Accenture is a leading world-wide specialist providers company that will help the world’s leading corporations, governments and other companies create their digital core, enhance their operations, speed up income expansion and enrich citizen services—creating tangible price at velocity and scale. We are a talent and innovation-led enterprise with 738,000 people today serving clientele in more than 120 nations. Technology is at the main of transform currently, and we are a person of the world’s leaders in encouraging drive that change, with potent ecosystem associations. We combine our toughness in engineering with unmatched marketplace knowledge, purposeful skills and world-wide shipping and delivery ability. We are uniquely capable to provide tangible results since of our broad assortment of expert services, answers and property across System & Consulting, Technology, Functions, Sector X and Accenture Track. These capabilities, together with our tradition of shared accomplishment and motivation to creating 360° benefit, help us to support our purchasers be successful and create trustworthy, lasting interactions. We measure our good results by the 360° value we develop for our consumers, every single other, our shareholders, companions and communities. Pay a visit to us at

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