CEO Briefing Spain 2014
Business Executives’ Perspectives
Foreword
Vicente Moreno GarcĂa-Mansilla, President and CEO, Accenture SPAI (Spain, Portugal, Africa, Israel)
Despite the economic situation experienced in 2013, the overall perception is of a change of mood in the corporate environment in Spain. The economic indicators and the perspectives for growth perceived by the leading Spanish companies reflect a feeling of greater optimism.1 Driven by the drop in the cost of capital, the incipient recovery in demand and the continuous advance of the new digital technologies, Spanish executives are poised for the opportunity to experience a new stage of growth this year. In this new stage, digital technologies can help them to leave traditional work methods behind and transform the way in which they manage their businesses. If Spanish executives’ perspectives for growth materialize, we will experience a positive impact on the evolution of the economy and employment in Spain. The power of our organizations lies mainly in the talent we employ and develop. After years of restrictive strategies, a significant number of companies in Spain expect to increase their investment in human capital and allocate it to both hiring and training their workers.2
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In the era of digital transformation that we are living through, Spanish executives should invest in new skills and talent to capitalize on the potential of the new digital technologies, and rethink the organization and management of their new businesses. To do this, it will be essential to have a clear view of the strategy when it comes to adopting these technologies that will leverage the change more efficiently. This CEO Briefing Spain 2014 contains the business perspectives and the strategic and digital agenda of Spanish executives for this year. The information included in the report will, no doubt, help us to face the challenge of transforming our companies into competitive and highperformance organizations in an increasingly digital world.
Executive Summary
Alberto Zamora, Strategy Lead, Accenture SPAI (Spain, Portugal, Africa, Israel)
The CEO Briefing Spain 2014, based on the opinion of CEOs of the leading Spanish companies, reveals that 70 percent of Spanish executives are optimistic about the perspectives of the Spanish economy in 2014. They are more optimistic than their European and world counterparts relative to their own national economies (61 percent and 62 percent, respectively).3 In addition, Spanish executives consider that the driving force of four levers—reduction of regulation, adopting new technologies, training workers, and innovation—is critical in order to promote Spain’s competitiveness.4
Relative to the perspectives of the digital business, Spanish executives expect an impact of the digital technologies (ecommerce, the Internet of Things, data analytics, etc.) on their industries in the short term, although this perception is less than that shown in countries that are leaders in technological development, such as the United States. Spanish, European and US executives agree that they should to a greater extent allocate their digital investments to cost reduction and process efficiency rather than to growth, innovation and the development of new ways of reaching their clients.8
Spanish executives are also optimistic about the evolution of their companies and expect a year with an increase in revenues, profits and number of employees, following the efficiency and cost reduction agenda that prevailed in recent times.5 Spanish companies will also prioritize investments in the foreign market and will increase their investment in human capital, allocated to both hiring and training their workers.6
This CEO Briefing Spain 2014 makes it possible to foresee a year of greater optimism for Spanish companies that commence the transition toward an agenda of growth and innovation, and using digital technologies as a lever to achieve them.
As for the barriers to achieving this growth, Spain is particularly concerned over the speed of recovery of demand and the cost of capital, whereas European and world executives show concern about other barriers, such as the competitive environment and the difficulty of attracting talent.7
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Contents Introduction ........................................................................................................................................5 Key findings..........................................................................................................................................6 1. Perspectives of the economy................................................................................................. 10 2. Strategic perspectives .............................................................................................................13 3. Perspectives of the digital business....................................................................................17
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Introduction For the purpose of offering Spanish executives’ overview of the evolution of the economy and their planned strategies for this year, this report includes the findings of a worldwide study conducted among the CEOs of leading companies in all industries.9 The report contains three main areas of analysis:
3. Perspectives of the digital business: Finally, Spanish executives reveal their strategies for investment in digital technologies, and the main barriers to implementing digital agendas.
1. Perspectives of the economy: In the first section, the expectations of Spanish executives for growth in the economy and the key levers to improve competitiveness in Spain are analyzed. 2. Strategic perspectives: In the second section, Spanish executives state their forecasts for their companies and explain their main growth and investment strategies.
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Key findings Economic Perspectives 1. 70 percent of Spanish executives are optimistic about the Spanish economy in 2014.
About Spanish economy
70%
optimistic
Spanish executives show greater optimism than European and world executives relative to their countries’ economies, with 70 percent being optimistic compared to 61 percent of European and 62 percent of global executives.10
2. 42 percent of Spanish executives are optimistic about the world economy in 2014.
About global economy
42%
optimistic
Spanish executives are more optimistic than European executives while being in line with world executives. 42 percent of Spanish executives show optimism compared to 35 percent of European and 44 percent of world executives.11
3. Reducing regulation, the adoption of new digital technologies, employee training, and innovation are the four most important levers to improve Spain’s competitiveness, according to Spanish executives. This opinion concurs with those levers cited by European and world executives. However, Spain gives first place of importance to reducing regulation, compared to third place in Europe and fourth place at a global level.12
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Four levers to drive competitiveness
1
Reducing regulation
2
Adoption of new digital technologies
3
Employee training
4
Innovation
Strategic Perspectives 4. 72 percent of Spanish executives are optimistic about the improvement in their companies’ business in 2014.
About the improvement in their companies’ business
72%
optimistic
The optimism shown by Spanish executives relative to their companies is in line with that shown by European and world executives. 72 percent of Spanish executives express optimism, as do 75 percent of their European counterparts and 76 percent of world executives.13
5. 83 percent of Spanish executives expect an increase in their companies’ revenues in 2014. This forecast by Spanish executives is in line with that of European executives while exceeding that of world executives: 83 percent of Spanish executives expect an increase in revenues in 2014, compared to 82 percent of European executives and 76 percent of world executives.14
6. 63 percent of Spanish executives expect an increase in their companies’ profits in 2014. To a lesser degree than their European and world counterparts, 63 percent of Spanish executives expect an increase in profits in 2014, compared to 73 percent of European and 71 percent of world executives.15
7. 60 percent of Spanish executives expect an increase in the number of employees in their companies in 2014, whereas 15 percent expect a decrease. This forecast is lower than that of European and world executives, showing 60 percent of Spanish executives expecting an increase in the number of workers in their companies in 2014, compared to 67 percent of European and 65 percent of world executives.16
Expect an increase in their companies’ revenues
83% executives
Expect an increase in their companies’ profits
63% executives
Expect an increase in the number of employees in their companies
60% executives Expect a decrease in the number of employees in their companies
15% executives
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8. 61 percent of Spanish executives expect an increase in their companies’ total investments in 2014. This forecast is in line with those of European and world executives: 61 percent of Spanish executives expect an increase in their companies’ total investments, compared to 58 percent of European and 64 percent of world executives.17
9. 67 percent of Spanish executives expect to prioritize investment in the foreign market over the domestic market. The same percentage (67 percent) of Spanish and European executives expect to prioritize investment in foreign markets over their home markets, more so than executives at a global level (58 percent).18
10. Uncertainty about the recovery in demand and the cost of capital are the two most important challenges they face in 2014, according to Spanish executives. In contrast, European and world executives prioritize the following as the most significant barriers: competitive pressure from new market entrants and consolidation in their industry, as well as difficulty in attracting talent.19
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Expect an increase in their companies’ total investments
61% executives Will prioritize investment in the foreign market over the domestic market
67% executives
Two most important challenges
Uncertainty about the recovery in demand Cost of capital
Digital Business Perspectives 11. 36 percent of Spanish executives think digital technologies will have a significant impact on their industries in 2014.
36%
expect a significant impact of digital technologies in their industries
Spanish executives see less of an impact than that predicted by European and US executives, with 36 percent of Spanish executives expecting a significant change in their industries in 2014, compared to 45 percent of European executives and 52 percent of US executives.20
12. 70 percent of Spanish executives have defined a strategy for digital investments. This represents a smaller proportion than European and US executives, with 70 percent of Spanish executives having defined a digital strategy, compared to 86 percent of European and 93 percent of US executives.21
13. 68 percent of Spanish executives focus their investment in digital on achieving cost reductions and process efficiencies, compared to 32 percent who prioritize the agenda for growth and innovation. In line with the favored digital strategy of European and US executives, 68 percent of Spanish executives pursue cost reduction and process efficiency, compared to 69 percent of European and 73 percent of US executives.22
14. Ecommerce, the Internet of Things and data analytics are the most significant digital technologies for Spanish executives in 2014.
70%
have defined a strategy for digital investments
68%
focus their investment in digital on achieving cost reductions and process efficiencies
32%
focus their investment in digital on growth and innovation Most significant digital technologies
Ecommerce Internet of Things Analytics
The importance placed on digital technologies by Spanish executives is in line with that given by European executives, but less than that shown by US executives. Between 40 percent and 50 percent of Spanish and European executives consider these technologies as important for their companies in 2014, whereas the percentage lies between 60 percent and 70 percent for US executives who state this.23
15. Insufficient funding, a shortage in specialized skills, and change management are the three main barriers to digital implementation, according to Spanish executives.
Three main barriers to digital implementation
Lack of funding Shortage in specialized skills Change management
These barriers coincide with those pointed out by US and world executives, but in Spain, first place of importance is given to the lack of funding, compared to second place in Europe and third place in the United States.24 9
1. Perspectives of the economy In the opinion of Spanish executives, a year of optimism is ahead when they regard forecasts for the economy. Thus, nearly three out of four Spanish executives consider that the perspectives of the Spanish economy are positive (70 percent), a percentage that is higher than the average of both European (61 percent) and world executives (62 percent).25 When the perspectives of Spanish executives about the next year for their industry are considered, this optimism remains at the same level (with 72 percent expecting an improvement in their area of activity).
When asked about the levers that will drive this growth, Spanish executives consider a reduction of regulation (38 percent), adopting new digital technologies (30 percent), employee training (25 percent) and innovation (25 percent) as the pillars on which Spain’s increased competitiveness must be based. At this level the Spanish are in line with European and world executives, although the weight given in Spain to the reduction of regulation (38 percent) is greater (compared to 30 percent in Europe and 26 percent at a global level). On the other hand, Spanish executives place less expensive labor costs in last
place as an enhancer of national competitiveness, whereas European and world executives point to the reduction in the cost of raw materials as the least significant lever.26
In the next 12 months, to what extent are you optimistic or pessimistic about the prospects for... ... Your country’s economy
... Your industry 13%
70% 61%
27% 29%
62% 0%
Neither optimistic nor pessimistic
6%
12%
67%
26%
7%
9%
69%
26%
5%
100%
Optimistic
23%
72%
17%
0%
100%
Pessimistic
Source: CEO Briefing 2014—The Global Agenda: Competing in a Digital World, Accenture and The Economist Intelligence Unit, www.accenture.com/ceobriefing.
Which driver do you think would improve the competitiveness of your country? Spain
40%
Europe
35%
Global
30% 25% 20% 15% 10% Reduce regulation
New technologies to drive productivity
Better education and training of workforce
Innovation Enhanced creating new digital P/S infrastructure
Enhanced physical infrastructure
More flexible labor market
Cheaper energy resources
Greater openness to trade
Cheaper raw materials
Less expensive labor costs
Source: CEO Briefing 2014—The Global Agenda: Competing in a Digital World, Accenture and The Economist Intelligence Unit, www.accenture.com/ceobriefing. 10 www.accenture.com
However, this optimistic view diminishes when Spanish executives are asked about their forecasts for the global economy, with 42 percent of those surveyed showing good expectations, a percentage that is in any case higher than the average from their European counterparts (35 percent) and remains in line with world executives (44 percent).27 In their opinion, this world growth will be driven mostly by three industries: energy, consumer goods and health/ pharmaceutical. In contrast, Spanish executives are of the opinion that the professional services, agriculture, and aerospace and defense industries show the worst perspectives for growth in 2014.28
In the next 12 months, to what extent are you optimistic or pessimistic about the prospects for the global economy? 47%
42% 35%
11%
50%
44%
15%
41%
15%
0%
100%
Optimistic
Neither optimistic nor pessimistic
Pessimistic
Source: CEO Briefing 2014—The Global Agenda: Competing in a Digital World, Accenture and The Economist Intelligence Unit, www.accenture.com/ceobriefing.
Globally, which industries do you believe enjoy the best growth prospects in the next 12 months? 40% 35%
30%
30%
28%
28%
26%
25% 23%
25%
21%
21%
20% 15%
19% 17%
1
2
17%
15%
15%
8%
3
10% Energy, oil and gas
Consumer goods
Healthcare Construction Manufacturing and real estate
Utilities
Software and IT
Automotive
Telco
Financial services
Mining and Professional extractive services industries
Agriculture Aerospace and defense
Source: CEO Briefing 2014—The Global Agenda: Competing in a Digital World, Accenture and The Economist Intelligence Unit, www.accenture.com/ceobriefing.
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As for their perspectives on the emerging markets, 64 percent of Spanish executives see their companies allocating investment to the new emerging markets rather than to the BRICS economies (36 percent). This is corroborated by the 59 percent that anticipate a slowdown for BRICS economies, a perception that is more pessimistic than that from their European and world counterparts, with only 43 percent sharing this expectation. The perception of Spanish executives seems to mirror the EIU’s prediction of a decrease in 2014 in the growth of GDP in China, from 7.7 percent to 7.2 percent, and in Brazil from 2.3 percent to 1.8 percent. However, a slowdown in all the BRICS markets cannot be generalized, considering that countries such as India and Russia are showing forecasts for acceleration in growth of GDP in 2014.29
BRICS markets will experience... 59%
41% 57%
43%
57%
43%
0%
100% A slowdown
Strong or stable growth
Source: CEO Briefing 2014—The Global Agenda: Competing in a Digital World, Accenture and The Economist Intelligence Unit, www.accenture.com/ceobriefing.
Emerging markets annual GPD growth rate for 2013 and forecast for 2014 GPD growth rate (%) 10
2013 2014
8 6 4 2 0 Brazil
Russia
India BRICS
China South Africa
Chile
Source: The Economist Intelligence Unit, 2013 data and 2014 forecast.
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Mexico
Saudi Arabia
Turkey
2. Strategic perspectives The optimism of Spanish executives regarding the economy is also reflected in their perspectives for their companies, with 72 percent of them optimistic about the improvement in their business in 2014. This forecast aligns with that of 75 percent of European and 76 percent of world executives.30 Similarly, optimism in forecasts is revealed in the Spanish companies’ strategies as they progressively abandon the approach of recent years geared to efficiency and cost control to shift their focus onto strategies to increase revenues, profits and the number of employees. Thus, 83 percent of Spanish executives anticipate an increase in their revenues and 63 percent in their profits. Along these same lines, 60 percent expect an increase in the volume of hiring in their companies in 2014, although 15 percent anticipate a moderate drop.31
In the next 12 months, the prospects for your company are... 26%
72% 75%
21%
76%
4%
19%
0% Optimistic
2%
5% 100%
Neither optimistic nor pessimistic
Pessimistic
Source: CEO Briefing 2014—The Global Agenda: Competing in a Digital World, Accenture and The Economist Intelligence Unit, www.accenture.com/ceobriefing.
Thinking about your organization in the next 12 months, do you expect the following to increase, decrease or stay the same on... Income Cost reduction
30% 15%
Profit
42%
23%
Number of workers
34%
40%
30%
9%
53%
30%
19% 25%
0%
17% 15% 100%
Significant increase
Moderate increase
Moderate decrease
Significant decrease
No change
Source: CEO Briefing 2014—The Global Agenda: Competing in a Digital World, Accenture and The Economist Intelligence Unit, www.accenture.com/ceobriefing.
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An increase is also expected in total investments in capital made by Spanish organizations, where the forecasted growth (61 percent) appears in line with European (58 percent) and global perspectives (64 percent).32 Moreover, Spanish executives plan to prioritize investment in human capital, with 62 percent expecting to increase the investment in hiring, retention, training activities, etc. This increase in the investment in human capital could mean a positive impact on lowering unemployment in Spain, which, according to Spain’s National Institute of Statistics (Instituto Nacional de Estadística), will remain stable in the short term (from 26.03 percent in Q4 2013 to 25.93 percent in Q1 2014).33 Moreover, 51 percent of Spanish executives expect to show an increase in their investment in fixed assets (real estate, machinery, equipment, installations, etc.). At this level, Spain anticipates an increase in gross fixed investment, which will rise from -5.8 percent in 2013 to 0.9 percent in 2014 (according to The Economist Intelligence Unit).34 If we take into account where the investments will be assigned, we see that 67 percent of Spanish companies plan to aim for the foreign market, whereas 33 percent indicate the domestic market as the priority for them, amounting to data that highlights the desire of Spanish companies to export, driven by the economic context of the country in recent years. This strategy is shared by 64 percent of European companies that, just as the Spanish, are inclined more toward exporting than are organizations at a global level, where 58 percent will prioritize investment outside their domestic market.35 However, according to EIU estimates, the pace of exports in Spain in 2014 will slow down, with Spanish exports of products and services expected to increase at a lower level than that registered in 2013 (3.6 percent compared to 5.6 percent).
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Total investments in capital 8%
53%
10%
34%
48%
19%
37% 45%
32%
0%
100%
Spanish investment in... 3% 21%
30%
42% 30% 32%
Human capital
Physical capital
Significant increase
Moderate increase
Moderate decrease
Significant decrease
Intangible capital
No change
Source: CEO Briefing 2014—The Global Agenda: Competing in a Digital World, Accenture and The Economist Intelligence Unit, www.accenture.com/ceobriefing.
Which statement most closely reflects the perspective of your company’s strategy over the next 12 months?
33%
36%
42%
67% 64%
We intend to prioritize investment outside of our home market
58%
We intend to prioritize investment in our home market
Source: CEO Briefing 2014—The Global Agenda: Competing in a Digital World, Accenture and The Economist Intelligence Unit, www.accenture.com/ceobriefing.
Diversification is the growth strategy chosen by Spanish companies, which emphasizes innovation and product development that will enable them to compete in both the domestic market and at the international level in search of new clients. Thus, the diversification strategy is particularly predominant when they aim abroad, both to the developed (45 percent) and emerging (51 percent) markets, whereas in the domestic market the
diversification strategy stands at 36 percent. In addition, their product strategy is prominent, especially when it comes to applying it in developed markets (34 percent).36
Which of the following strategies will be most important to accelerate income growth for your company in the next three years? Domestic market
Products New
Diversification Strategy
New
23%
Domestic market
Existing
22%
New
8%
34%
Clients
28%
Existing
36%
9%
Diversification Strategy 18%
13%
45%
51%
New
13%
Clients
Existing
Products Existing
Foreign market
Foreign market (developed markets)
Foreign market (emerging markets)
Source: CEO Briefing 2014—The Global Agenda: Competing in a Digital World, Accenture and The Economist Intelligence Unit, www.accenture.com/ceobriefing.
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However, to make these perspectives a reality, Spanish companies must meet some challenges, prominent among them being a special concern about uncertainty regarding demand recovery. As a result, 38 percent cite this concern in Spain, compared to 34 percent in Europe and 30 percent of world executives, along with the cost of capital (30 percent, 22 percent
and 25 percent, respectively). Nevertheless, European and world executives continue to prioritize competition from new market entrants and industry consolidation as the two most significant barriers, as well as the difficulty in attracting talent.37
What are the greatest risks your company will face over the next 12 months? 40%
Spain
Specially more threatening for Spanish companies
35%
Europe Global
30% 25% 20% 15%
Specially less threatening for Spanish companies
10% 5%
1 Recession/ Falling consumer demand
2 High cost of capital
Restrictive regulation
Rising cost of raw materials
Competition from new market entrants
Consolidation in your industry
Difficulty Bankruptcy and Asset price attracting and credit risk collapse retaining talent
Rising Civil unrest protectionism
Source: CEO Briefing 2014—The Global Agenda: Competing in a Digital World, Accenture and The Economist Intelligence Unit, www.accenture.com/ceobriefing.
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3. Perspectives of the digital business A recent global analysis conducted by Accenture stresses the direct correlation between the increase in a country’s investment in its digital development and the growth of GDP, increased international trade and a decrease in the unemployment rate.38 36 percent of Spanish executives see digital technologies representing a significant change in the configuration of their industry in the coming months, compared to 52 percent of US and 45 percent of European executives who see either a significant change or a complete transformation.39 When it comes to decision making, the CEO is in charge of defining the digital strategy in 68 percent of Spanish companies. The presence of a chief digital officer (CDO) to bear the responsibility of digital innovation has scarcely arisen in Spain, with merely 2 percent of Spanish companies stating that they have a position of this kind. In contrast, the CDO is indicated as the digital manager in 8 percent of European and in 9 percent of US companies.40
Impact of investing in digital development on a country’s economy 10%
1%
1%
0.5%
GDP
2% -0.9%
International trade
Unemployment rate
Increase of digital investment
Impact on a country´s macroeconomic indicators
Source: Achieving Digital Excellence in Public Service, Accenture, 2013.
To what extent do you expect the continued evolution of digital technologies to change your industry over the next 12 months? 47%
36% 4%
41%
5%
17%
38%
47%
15%
35%
10%
0%
100%
Complete transformation
Significant change
Small change
No change/don’t know
Moderate change
Source: CEO Briefing 2014—The Global Agenda: Competing in a Digital World, Accenture and The Economist Intelligence Unit, www.accenture.com/ceobriefing.
Who in your organization is responsible for digital innovation?
33% 68%
36% 49%
2%
42%
44%
8%
9%
Chief Executive Officer
Business Line Director
Chief Information Officer
Chief Technology Officer
Chief Digital Officer
Chief Operations Officer
Chief Marketing Officer Source: CEO Briefing 2014—The Global Agenda: Competing in a Digital World, Accenture and The Economist Intelligence Unit, www.accenture.com/ceobriefing. 17
On the other hand, 70 percent of Spanish companies have defined a digital investment strategy, with more than two-thirds (68 percent) considering the main objective of this investment to be to improve efficiency and reduce process costs, whereas 32 percent classify it in its growth and innovation agenda to reach more clients. In contrast, the proportion of executives at European and US levels who have a clearly defined digital investment strategy is higher than the Spanish level (86 percent and 93 percent respectively, compared to Spain’s 70 percent). Their digital strategies coincide with those of the Spanish and to a greater extent pursue process efficiency and cost reduction (Europe, 69 percent; United States, 73 percent) rather than opportunities for growth and new ways of reaching their clients (Europe, 31 percent; United States, 27 percent).41 In this way, the specific reasons that lead to investing in digital technologies are linked mainly to areas of efficiency in operations, such as better management control as well as improvement of the client experience.42
Your company’s digital investment strategy is Focused on...
Defined
Not defined
Process efficiencies and cost reduction
68%
30%
70%
32%
Growth opportunities and new ways of reaching customers
Source: CEO Briefing 2014—The Global Agenda: Competing in a Digital World, Accenture and The Economist Intelligence Unit, www.accenture.com/ceobriefing.
How important are investments in digital technologies to the following areas of your business? Efficiency Improve the efficiency of our operations Improve management control, oversight and governance Improve the customer experience Growth Create new products and services Open new sales channels Grow sales
30%
32%
15%
36%
0%
100%
11%
49%
0%
100%
19% 12% 19%
23% 26% 15%
0%
100%
Extremely important
Moderately important
Slightly important
Not at all important
Somewhat important
Source: CEO Briefing 2014—The Global Agenda: Competing in a Digital World, Accenture and The Economist Intelligence Unit, www.accenture.com/ceobriefing.
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When considering specific digital technologies, ecommerce, the Internet of Things and data analytics are the most significant for Spanish executives in 2014. The importance that they give to these technologies aligns with that shown by European executives: Between 40 percent to 50 percent of Spanish and European executives consider these technologies to be important for their companies this year, but both lag behind their counterparts in the United States, where between 60 percent to 70 percent reflect their importance.43
How important will the following digital technologies be for your company in the next 12 months? Ecommerce
31%
Analytics
17%
Internet of Things
15%
Social media Cloud computing
21% 30%
19%
30%
36% 30%
6%
34%
32%
13% 9%
40%
26% 34%
0%
23% 11%
15% 13%
23%
4% 100%
Extremely important
Moderately important
Slightly important
Not at all important
Somewhat important
Source: CEO Briefing 2014—The Global Agenda: Competing in a Digital World, Accenture and The Economist Intelligence Unit, www.accenture.com/ceobriefing.
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As for the challenges they face when it comes to turning digital technology into a lever for transformation and growth, the Spanish executives cite insufficient funding and the lack of specialized skills, together with change management, as the three main barriers to digital implementation. At this level, they agree with the challenges mentioned by
European and US executives, although Spanish executives lend greater importance to the lack of funding, placing it in first place as the main challenge, compared to second place in Europe and third place in the United States.44
What are the most significant challenges you face when implementing investments into digital?
Specially more threatening for Spanish companies
50%
Spain Europe
45%
United States
40% 35% 30% 25% 20%
1 Insufficient funding
2 Shortage in specialized skills
3 Difficulties in managing change
Insufficient demand for digital services by consumers
Lack of executive support
Source: CEO Briefing 2014—The Global Agenda: Competing in a Digital World, Accenture and The Economist Intelligence Unit, www.accenture.com/ceobriefing.
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Conclusion Spanish executives feel they have a sound basis for their optimism about the future of their country’s economy in 2014 when they see forecasts of a drop in the cost of capital and increased demand for their services and products. A recent survey shows 72 percent of them optimistic about improvements in their companies’ businesses, 83 percent heartened by prospects for an increase in their companies’ revenues and 63 percent expecting a rise in profits. They believe that digital technologies will serve as a tool to facilitate this new growth phase, and their willingness to further invest in human capital and in foreign markets also marks the attitudes of Spanish executives toward the future rewards of enhanced competitiveness and increases in revenues and profits this year and beyond.
To fulfill their agenda of growth and innovation, 36 percent of Spanish executives plan to adopt digital technologies as a key strategic lever, with 68 percent placing the CEO in charge of decision making when it comes to defining the digital strategy. They believe that investing in such technologies as ecommerce, the Internet of Things, and data analytics will lead to greater cost reduction and process efficiency. So, while seeing regulations as the main barrier that must be reduced if they are to move forward, Spanish executives are still finding many ways under their control that can bring about the realization of the potential for economic growth that they see on the horizon for Spain.
The survey numbers point to how Spanish executives plan to implement several key strategies for growth and investment. As they abandon past trends toward efficiency and cost control, 70 percent of them have already defined a digital investment strategy, 60 percent of the executives plan to prioritize the hiring of more people and 62 percent are willing to increase their investment in retention and training activities. By using a diversification strategy, 67 percent of Spanish companies are looking to aim their investments toward foreign markets as targets for exports, both to developed and emerging markets.
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References 1. CEO Briefing 2014—The Global Agenda: Competing in a Digital World, Accenture and The Economist Intelligence Unit, www.accenture.com/ceobriefing, page 27, question 1. 2. Ibid., page 31, question 5. 3. Ibid., page 27, question 1. 4. Ibid., page 29, question 3. 5. Ibid., page 30, question 4. 6. Ibid., page 31, question 5. 7. Ibid., page 34, question 8. 8. Ibid., page 40, question 16. 9. Ibid. 10. Ibid., page 27, question 1. 11. Ibid., page 27, question 1. 12. Ibid., page 29, question 3. 13. Ibid., page 27, question 1. 14. Ibid., page 30, question 4. 15. Ibid., page 30, question 4. 16. Ibid., page 30, question 4. 17. Ibid., page 31, question 5. 18. Ibid., page 32, question 7. 19. Ibid., page 34, question 8. 20. Ibid., page 41, question 17. 21. Ibid., page 40, question 16. 22. Ibid., page 40, question 16. 23. Ibid., page 38, question 14. 24. Ibid., page 43, question 19. 25. Ibid., page 27, question 1. 26. Ibid., page 29, question 3. 27. Ibid., page 27, question 1. 28. Ibid., page 28, question 2. 29. Ibid. 30. Ibid., page 27, question 1. 31. Ibid., page 30, question 4. 32. Ibid., page 31, question 5. 33. Instituto Nacional de Estadística: http://www.ine.es/inebaseDYN/epa30308/epa_inicio.htm. 34. CEO Briefing 2014—The Global Agenda: Competing in a Digital World, Accenture and The Economist Intelligence Unit, www.accenture.com/ceobriefing. 35. Ibid., page 32, question 7. 36. Ibid., page 34, question 9. 37. Ibid., page 34, question 8. 38. Achieving Digital Excellence in Public Service, Accenture, 2013. 39. CEO Briefing 2014—The Global Agenda: Competing in a Digital World, Accenture and The Economist Intelligence Unit, www.accenture.com/ceobriefing, page 39, question 15. 40. Ibid., page 43, question 20. 41. Ibid., page 40, question 16. 42. Ibid., page 40, question 17. 43. Ibid., page 38, question 14. 44. Ibid., page 43, question 19.
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About Accenture Accenture is a global management consulting, technology services and outsourcing company, with approximately 289,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become highperformance businesses and governments. The company generated net revenues of US$28.6 billion for the fiscal year ended Aug. 31, 2013. Its home page is www.accenture.com.
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