SA business leaders believe e-commerce growth is happening faster than they can handle

Additionally, the cost of doing business is increasing as companies grapple with ad hoc systems, legacy technology, skills gaps, and poor infrastructure.

Meanwhile, competition among global e-commerce companies with extensive know-how is rapidly intensifying. The influx of best-in-class global companies into the South African market is reshaping industry dynamics and posing challenges for local businesses across the board, the report said.

“The days of simplicity in e-commerce are long gone, if they ever existed,” says Mushambi Mutuma, head of sales and commerce at Accenture (Africa). “Today's reality is that e-commerce is complex, dynamic, disruptive and competitive. In this environment, businesses are forced to make potentially existential choices.”

Accenture surveyed 1,300 global executives and decision makers across 12 industries and 16 countries to understand their perspectives on e-commerce and how they execute their strategies. Seventy-five of these companies were based in South Africa.

“Nearly 100% of South African executives surveyed believe they have made appropriate investments in e-commerce. We were surprised by the strong confidence of these executives. , may reflect that they are evaluating their e-commerce business channel by channel rather than as a holistic capability.''Continuous reinvention is required.'' High levels of trust may also stem from recent short-term gains at the expense of long-term strategy,” says Mutuma.

Accenture's report also highlights companies around the world that are doing things differently. According to the report, these champions are redefining e-commerce strategies and taking the lead in revenue, profitability and non-financial outcomes, delivering value to businesses and their stakeholders. They know how to conduct e-commerce without compromise.

“Our analysis of global survey data reveals three distinct groups of companies: Champions, Coasters and Compromisers,” said Sheetal Patel, Head of Retail at Accenture Africa.

“This analysis compared companies' performance across seven non-financial e-commerce outcomes: e-commerce experience, business partner and vendor experience, conversion rate, customer satisfaction, and Net Promoter Score.^®competitiveness with digital disruptors, and competitiveness with industry peers,” Patel said.

According to the report, champions are at the top of the list for only 20% of respondents. Champion did the right thing and took an innovative, life-centered approach to his e-commerce strategy, achieving 85% higher revenue growth and 31% higher profitability compared to his peers.

Coasters (approximately 55%) are operating as usual. While some have had limited success in getting to know their customers as people, change is slow due to leadership, cultural, and organizational resistance.

Compromisers (25%) pour money into e-commerce, chasing the latest shiny object without achieving results. They operate reactively, independent of customers' lives, and are hampered by their own organizational structures.

Champion takes an innovative, life-centered approach to e-commerce strategy, achieving 85% higher revenue growth and 31% higher profitability than its peers. They are bold and are making big moves in terms of advancing technology, developing talent, and transforming organizational structures. Most importantly, they view consumers as humans first and aim to meet their needs holistically and effectively, the report said.

“Being a champion means thinking beyond the silos and recognizing that staying ahead requires an overhaul of traditional models and existing structures. The Landscape of Digital E-Commerce As the industry continues to rapidly evolve, champions stay one step ahead and overcome the risk of stagnation through continuous efforts to 'assess, evaluate, and continually reinvent,' says Patel.

Becoming a Champion is underpinned by one fundamental principle: simplifying e-commerce processes to improve profitability and consumer experience. This report details his three paths observed across different organizational models and corporate structures.

The first is to prioritize investments that drive better experiences over investments in operations and talent. This is a path often taken by consensus companies where multiple leaders influence decision-making. These organizations need to take a more holistic approach or risk being stuck with technologies that are fragmented and unoptimized.

Organizations with command-and-control management structures tend to prioritize operational and talent changes over investments in technology and experience, at the expense of building a strong digital foundation. The report says many organizations in South Africa are stuck in these outdated models and are in urgent need of change to succeed in the evolving e-commerce environment.

The third and most desirable path involves creating a balanced effort where companies simultaneously build experience, technology, operations, and talent capabilities without spending a fortune. This approach requires strong leadership with patience, vision and clear alignment across the C-suite to move forward, the report says.

“At a time when e-commerce is evolving at incredible speed, our 'Commerce Without Compromise' research reveals a path for South African businesses to tap into the vast potential of the digital marketplace. “We challenge leaders and decision-makers to adopt the right way of living and act decisively,” says Mutuma.

Mutuma concludes, “By bridging technology, operations, and people, you can transcend traditional boundaries and elevate your business to champion status, achieving unparalleled profitability and growth.” Masu.

For more information, please visit www.accenture.com.

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