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RESEARCH REPORT

Building a reinvention-ready digital core

Chapter 2: How to mobilize technology for continuous reinvention

5-MINUTE READ

November 6, 2024

In brief

  • A digital core is the critical technology capability to driving continuous reinvention, enabling major performance boosts.
  • Using generative AI and new engineering principles can simplify and supercharge how companies build or evolve to this reinvention-ready digital core.
  • The 3 engineering principles for building a modern, adaptable digital core are: Architect with Intent, Connect the Dots, and Thrive with Ecosystems.

The power of reinvention-readiness is undeniable, driven by a strong digital core.

In Chapter One of our report, we unveiled the three tenets that companies are following to achieve this coveted state of reinvention readiness: Build an industry-leading digital core; Boost investments in innovation; Balance technical debt. Companies who did all three saw massive performance boosts: 

60%

higher revenue growth rate

40%

increase in profitability

Now, in Chapter Two, we dive into how to build or evolve to a digital core that is flexible, resilient, and intelligent—all while being cost- and resource-efficient.

The digital core has seven key layers layers—so, how do you build it in a way that differentiating for your business? In this video, Accenture leaders discuss how to map a digital core journey to your business needs, and why it’s important to balance capabilities across the stack.

A digital core comprises a digital foundation (including cloud-first infrastructure, security, composable integration, security); a data & AI backbone, and digital platforms.
Let’s recap: What is a digital core?

We define the digital core as the critical technology capability that can create and empower an organization’s unique reinvention ambitions. It enables organizations to accelerate ahead of the competition and achieve their ambitions—using the right mix of cloud infrastructure and practices for agility and innovation; data and AI for differentiation; applications and platforms to accelerate growth, next-gen experiences and optimized operations—with security at every level.

What’s changed in how we build/evolve to new systems?

Gone are the days of rigid systems. To stay ahead in today’s fast-moving and ever-evolving business landscape, a digital core must be always on, always learning, and always adapting. 

The rise of AI and generative AI is reshaping everything, including how we build and activate a digital core.

Coding revolutionized

Generative AI is boosting developer productivity by 30%, making coding more accessible than ever.

AI agents in action

From post-trade settlements to end-to-end customer engagement, AI agents are taking on complex tasks and transforming processes.

Plug-and-play innovation

Organizations now have the power to access, fine-tune, and integrate AI innovations from trusted ecosystems, delivering true differentiation.

Your digital core needs to be in sync with the speed of change, constantly evolving and smart enough to meet your unique objectives—without the headache of overly customized, unwieldy systems. 

It’s like a Formula 1 race car—requiring split-second adjustments and high-tech engineering. In this world, only the most adaptable and intelligent systems thrive. Winning requires advanced engineering to reimagine business processes with technology.

ACT now to evolve your digital core

Our analysis has uncovered three key engineering principles that streamline and supercharge the evolution of a digital core. We call them the ACT principles, and leading companies adopt them 2x more than others.

01

Architect for Intent: Evolve architectures to allow dynamic adaptation with AI

Evolve business and technology architectures to a modern cognitive architecture that is always on, always learning and dynamically adapts to change—using AI as the central orchestrator of processes.

Leading companies apply cognitive elements like event data, telemetry and predictive analytics to make automation smarter twice as often as their peers.