News

Accenture Research: 'The Future Is Edge'

• By David Ramel
• 09/22/2023

Edge computing can be a big revenue generator for companies, but adoption is lagging and the results vary according to which of four approaches is taken, new research from Accenture indicates.

The research firm surveyed 2,100 C-suite executives around the world to glean insights from adopters of edge computing, which it defines as the processing of data closer to where it's being generated, taking advantage of the growing number of smart devices at the network perimeter. That enables processing at greater speeds and volumes, in turn leading to greater action-led results in real time.

The research report, published last week, is titled "Leading with edge: How to reinvent with data and AI."

Accenture said edge computing is set to accelerate innovation leading to new revenue opportunities, but different approaches lead to different outcomes.

The firm identified four such approaches:

• Ad hoc: Centralized IT-led edge deployers (431 respondents were in this category)
• Tactical: Specific-need adopters of pre-packaged solutions (275 respondents)
• Integrated: Integrates with cloud and scales widely (684 respondents)
• Super integrated: Ties edge to business in transformative adoption (88 respondents)

No surprise: Companies that evolve from ad hoc to integrated approaches that leverage cloud, data and AI are likely to do better. Here's how Accenture broke down the four approaches:

Type 1 (Ad Hoc) and Type 2 (Tactical) are the least successful adopters. Their edge deployments are one-off and strictly tactical, or otherwise not integrated with the enterprise's systems. This hobbles their efforts to scale the technology or integrate it with other technologies for maximum return.

Type 3 (Integrated) scales edge and integrates it deeply with cloud and the greater IT strategy. Type 4 (Super Integrated) is the most transformational adopter, working with innovation partners to develop and edge-first business. These types demonstrate better outcomes and ability to accelerate innovation.

The four approaches are plotted on a graph with axes for percentage of outcomes achieved and digital core strategy:

"The Integrated approach scales edge and integrates it deeply with cloud, data and AI," the report said. "Those applying the Super Integrated approach are the most transformational adopters with, in some cases, their whole business at the edge, realizing the highest value. Using the digital core's range of technologies -- starting with cloud and layering in data, AI, applications and platforms -- they use edge to make quick innovation decisions. They develop an ecosystem of vendors externally and the talent internally to bolster their technology stack with human ingenuity."

Another graphic shows how "super integrated" firms get more benefits, with the ability to keep and manage data at the edge efficiently being No. 1, followed by increased efficiency, a transformed employee experience and more:

Accenture provided a three-step framework that companies can use unlock more edge value, regardless of which approach is taken:

• Strategize for edge: Approach edge as a foundational capability, not as a bolt on. Our research shows that companies having the most success with edge view it as a key component in a broader business strategy that leverages cloud, AI, and data -- the digital core.
• Scale across the enterprise: Build out edge across the enterprise, not just ad-hoc projects. Rather than investing in one-off projects that lead to siloed results, the most successful edge adopters take steps to scale implementation across businesses. They look for ways to standardize around successful use cases while leveraging partners for help.
• Strengthen capabilities: Ensure all employees and processes are prepared for edge. Edge is closer to the users and data, where physical actions are translated into digital data. So, it impacts the experience of employees across the organization and not just the IT department. For example, with edge, production workers or laboratory workers can get more and better information about the state or quality of production or be able to utilize AI directly.

No matter what approach is taken, Accenture said: "The future is edge. Most companies believe that edge computing is poised to become a transformative technology -- one that leads to new and improved business models in the next three years. Regardless of adoption type, strategizing, scaling and strengthening your edge capabilities can unlock great value and opportunity."

However, while "most companies" -- specifically, 83 percent -- believe that edge computing will be essential to remaining competitive in the future, only 65 percent are using it today.

Other data points from the report include:

• 98 percent of global executives say AI foundation models will play an important role in their organizations' strategies in the next 3 to 5 years.
• 81 percent of companies think failure to act quickly can lock them out from the full benefits of the technology.
• 65 percent of companies are using edge to some degree today. Of these, half have deeply integrated edge with their digital core.
• Global spending on edge is expected to be $208 billion in 2023, a 13.1 percent jump from 2022.

"Now is the time for every enterprise to adopt edge in order to fuel innovation for business growth," said Andy Tay, global lead of Accenture Cloud First, in a news release. "Edge presents unique hurdles due to physical limits that require a new understanding of infrastructure, security and user experience to overcome. But with the right approach -- where edge is aligned to the business strategy, integrated with the digital core and supported by partners and people -- edge will lead to differentiated experiences for customers and employees."