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The Digital Emperor Has No Clothes
1.
July 2016 The digital
emperor has no clothes Are business leaders ready for a world of radical transparency?
2.
2Copyright © 2016
Accenture All rights reserved. New technologies have raised the stakes when it comes to trust. Both data usage and individual/institutional conduct are subject to increased scrutiny, and leaders are faced with three significant transparency challenges. What does trust mean in a radically transparent digital world? CIOs are struggling to deliver timely, incremental value at a reasonable cost 83% say trust is the cornerstone of the digital economy. 83%
3.
3Copyright © 2016
Accenture All rights reserved. Digital Ethics Today’s Leadership Challenges 1. Leaders are not prepared for radical transparency 60% 60% of employees share information on their rewards, salaries, and opinions of their manager’s performance on sites like Glassdoor Leaders must “walk the talk” to build collective trust. • Inspire others • Visionary capability • Adaptability
4.
4Copyright © 2016
Accenture All rights reserved. Digital Ethics Today’s Leadership Challenges 2. Leaders should go beyond the boundaries of existing regulations 75% Nearly 75% of business executives say that regulation can help bring clarity regarding appropriate use of personal data It’s no longer enough to rely on regulators for clear ethical guidelines. “Industry [is] moving at the speed of Silicon Valley, [the] FAA can’t be moving at the speed of government.” – Michelle Schwartz, Chief of Staff, Federal Aviation Administration1 But are they putting this belief into practice? Evidence suggests they aren’t.
5.
5Copyright © 2016
Accenture All rights reserved. Digital Ethics Today’s Leadership Challenges 3. Leaders must adopt strong digital ethics to sustain innovation 82% 82% of respondents agree that a lack of security and ethical controls on data could exclude them from participating in digital platforms or ecosystems Rapid response and willingness to self-regulate help maintain organizational credibility. In response to feedback following an experiment Facebook conducted assessing the emotional impact of negative news stories on 700,000 users, the company has provided a detailed overview of their research process. This transparency is being hailed as an important step forward for corporate research ethics.2
6.
6 How can leaders
build trust in a world of radical transparency?
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7Copyright © 2016
Accenture All rights reserved. 85% of manufacturing executives expect human-machine-centric environments to be commonplace in their plants by 2020 Use digital to break down barriers Leaders must create a dynamic, adaptive culture to deal with the speed of digital disruption. 85% But only 22% have actually implemented measures designed to realize the potential of a connected industrial workforce 22%
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8Copyright © 2016
Accenture All rights reserved. Create inside-out transparency Acting is faster than planning in a digital economy. 85% Use approaches that can generate dynamic standards of conduct from the inside out: • Ethical hackathons • Micro-action crowdsourcing • 30-day challenges Piloting and iterating ethical policies can help organizations adapt quickly.
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9Copyright © 2016
Accenture All rights reserved. Build “ethical muscle” Embedding and reinforcing ethical behaviors is an ongoing process. 85% Build a diverse workforce. A mix of ages, genders, ethnicities, and educational backgrounds brings a range of perspectives to ethical decision making. Perform regular reviews. Keep current during the entire life cycle of an analysis, from data procurement to algorithm selection to training. Reinforce ethical behaviors. Use tools like online coaching, game-based simulations, and peer communities to continually encourage ethical judgment.
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10Copyright © 2016
Accenture All rights reserved. About Accenture Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With more than 373,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com About Accenture Strategy Accenture Strategy operates at the intersection of business and technology. We bring together our capabilities in business, technology, operations and function strategy to help our clients envision and execute industry-specific strategies that support enterprise wide transformation. Our focus on issues related to digital disruption, competitiveness, global operating models, talent and leadership help drive both efficiencies and growth. For more information, follow @AccentureStrat or visit www.accenture.com/strategy Join the conversation: @AccentureStrat Download the full report: www.accenture.com/ethicalleaders Sources 1. Why Does It Still Take Five Hours to Fly Cross-Country?! Future Tense, May 17, 2015, http://www.slate.com/blogs/future_tense/2016/05/17/why_does_it_still_take_five_hours_to_fly_cross_country_a_future_ tense_event.html 2. Recode, June 14 2016, http://www.recode.net/2016/6/14/11923286/facebook-emotional-contagion-controversy-data-research-review-policy-ethics
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