Accenture has been on a shopping spree in Q1 2017. The global tech consulting firm has made 10 acquisitions, with many in line with its recently published "Technology Vision".
Its annual forecast report, entitled "Technology for People", includes five emerging technology trends, centred on people, that Accenture thinks are essential to business success in today's digital economy.
These five trends are:
* AI is the new UI
Artificial intelligence is coming of age, tackling problems big and small by making interactions simple and smart. Accenture believes AI is becoming the new user interface (UI), underpinning the way we transact and interact with systems.
* Design for humans
Technology design decisions are being made by humans, for humans. Eighty percent of executives surveyed by Accenture agree organisations need to understand not only where people are today, but also where they want to be ? and shape technology to act as their guide to realise desired outcomes.
* Ecosystems as macrocosms
Platform companies that provide a single point of access to multiple services have completely broken the rules for how companies operate and compete. Firms don't only need a platform strategy, but a rich and robust ecosystem approach to lead in this new era of intelligence, says Accenture.
* Workforce marketplace
The number of on-demand labour platforms and online work-management solutions is surging. As a result, leading companies are dissolving traditional hierarchies and replacing them with talent marketplaces, which in turn is driving the most profound economic transformation since the Industrial Revolution.
* The uncharted. To succeed in today's ecosystem-driven digital economy, businesses must delve into uncharted territory. Instead of focusing solely on introducing new products and services, they should think much bigger, seizing opportunities to establish rules and standards for entirely new industries.
The 10 acquisitions so far this year are:
* Altitude, a US-based product design and innovation firm that will enable the creation of a new integrated set of connected-product services, and better position Accenture to help companies rapidly develop IOT business models and capture new revenue streams in the high-growth, connected products and services market.
* Seabury Group, a US professional services firm focusing on the aviation industry. The move will enable Accenture to help the world's top airlines accelerate the pace of digital transformation.
* solid-serVision, a German consulting and systems integration company that is one of the largest independent ServiceNow pure play companies in Europe. The deal will strengthen Accenture's position as a leader in the ServiceNow partner ecosystem.
* InvestTech Systems Consulting, a market leader in investment technology systems-integration and consulting services, and Accenture's second industry-focused asset management acquisition in the last 15 months.
* The US federal government services business of Endgame, an endpoint detection and response cyber security software company, which will enhance Accenture's federal services that specialises in proactive cyber defence, hunt-as-a-service capabilities, red teaming and cyber operations.
* The iDefense Security Intelligence Services business of VeriSign. iDefense, one of the world's first and most prolific cyber threat intelligence businesses, has proven capabilities in cyber intelligence related to vulnerabilities, malicious code and global threats to organisations.
* SinnerSchrader AG, a leading German digital agency, in a move that will enhance its digital marketing capabilities in Germany and become part of Accenture's digital marketing services arm.
* Davies Consulting, a US-based consultancy firm providing utility asset management, risk management, grid and pipeline network modernisation and emergency management services that will become part of Accenture's utilities industry practice.
* Focus Group Europe, a UK-based ServiceNow consulting services provider and software reseller that is one of the largest remaining pure-play ServiceNow consulting partners in the UK. It follows similar acquisitions in Germany earlier this year, in Canada in November 2016 and the US in 2015.
* First Annapolis, a payments consulting and advisory firm.
In light of the above, here are some observations:
* Accenture has become one of the largest ServiceNow partners globally.
* Accenture's non-US business is likely to grow more quickly than its US business and is already at almost 53% of its total revenue, with Europe contributing 34% of this (figures as at 28 February, the end of its Q2). Additionally, expect the highest growth to come from the emerging markets sector.
* This level of acquisition is likely to impact Accenture's bottom line in the short-term as integration of these deals takes place, but will boost both revenue and profit later in the year and into 2018.
* Some additional acquisitions are still expected this year but at a more manageable rate, with a focus specifically on ones that are within the AI field.
* Some form of restructuring may be needed to better handle the trends mentioned above and some possible disinvestment of non-strategic assets.
Watch this space and don't be surprised at what happens in the near future as Accenture is leaving many of its competitors in its dust.
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