In an era of continuous disruption, business growth must embrace new technologies to stay competitive. The latest innovation, Generative AI, is part of a broader trend requiring companies to build a robust “digital core” that integrates cloud, data, and AI technologies. This interconnected foundation helps balance growth and reinvention rather than focusing solely on cost.

Accenture’s recent research on over 1,500 global companies shows that those with a reinvention-ready digital core achieved a 60% acceleration in revenue growth and a 40% increase in profitability. These leaders have successfully integrated AI to augment human capabilities, a trend identified in our book Human + Machine six years ago.

Building a Digital Core for Growth

A strong digital core is essential for supporting current business drives while remaining flexible for future needs. Companies with industry-leading digital cores are set to reinvent twice as many functions with Generative AI in the next three years, creating substantial value.

To build a tailored digital core, businesses need to integrate cloud practices for agility, data and AI for differentiation, and applications and platforms for growth and optimized operations. Security should be integrated at every level. Without proper integration, the IT stack can hinder reinvention.

Our research outlines three tenets for building a strong digital core:

• Lead with Value
  • Assess your technology to understand your digital core’s state and the necessary investments.
  • Develop a business case for AI that focuses on end-to-end capabilities.
  • Example: Standard Chartered’s “fit for growth” strategy, focusing on technology transformation and AI-driven processes.

• Boost Strategic Investments in Innovation
  • Increase IT budgets for strategic innovation by at least 6% annually.
  • Focus on augmenting human capabilities with AI, such as AI assistants and spatial computing.
  • Example: AI-driven research platforms accelerating scientific breakthroughs.

• Balance Technical Debt with Future Investments
  • Allocate about 15% of the IT budget to tech debt remediation to maintain system performance.
  • Address AI-specific technical debt to ensure scalable AI capabilities.
  • Example: U.S. enterprises face a tech debt burden exceeding $1.5 trillion.

By following these steps, companies can quickly adopt new technologies and enjoy first-mover advantages. Only a small number of leading companies have achieved the 60:40 effect, positioning themselves to optimize tasks, augment human capabilities, and drive growth.

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