Rotating to the new: Achieve both digital and financial high performance

As the growth engine in China sputters, many industry sectors are struggling to maintain the momentum while finding new growth drivers. This is especially true for the manufacturing sector, which is suffering from weak demand and overcapacity. Revenue growth has slowed, profitability has stagnated and in some cases declined.

But digitally enabled business models could be a game-changer. Grasping the opportunity and taking full advantage of digital levers, however, is easier said than done.

According to Accenture research, only 4 per cent of Chinese manufacturing companies are significantly outperforming their industry peers by translating their digital investments into stronger financial performance and becoming digital high performers. A majority (58 per cent) have achieved neither improved financial performance nor higher digital performance.

The ideal is to be a digital high performer and generate more sustained and profitable growth. These companies also enjoy higher investor confidence, as indicated by their higher future values.

But this requires a commitment to digital transformation across the full breadth of their business activities. Embracing digital strategies in parts of the company, or merely in customer-facing channels, does not amount to true digital transformation.