accenture-business-model

Accenture Business Model In A Nutshell

The Accenture business model moves around five main lines of business: communications, media, and technology; financial services; health and public services; products; and resources. The company generated over $60 billion in revenue in 2022 from these lines of business.
Element Description
Value Proposition Accenture offers a range of value propositions for its customers: – Business Transformation: Accenture assists clients in transforming their businesses through digital innovation, technology, and strategy. – Industry Expertise: The company provides specialized industry knowledge to help clients navigate challenges and seize opportunities. – Global Reach: Accenture’s global presence allows it to serve clients in various regions, offering local expertise and resources. – Innovation and Technology: Accenture leverages cutting-edge technology and innovation to drive client success and stay ahead of industry trends. – Sustainability and Responsibility: The company focuses on sustainable and responsible business practices, aligning with client and societal values. – Talent and Expertise: Accenture’s diverse workforce of skilled professionals delivers valuable insights and solutions.
Core Products/Services Accenture’s core products and services include: – Consulting Services: Accenture offers strategic consulting services to help clients address business challenges, optimize operations, and drive growth. – Technology Services: The company provides technology solutions, including IT consulting, system integration, and digital transformation. – Managed Services: Accenture offers managed services for outsourcing specific business functions or IT operations. – Industry Solutions: Accenture develops industry-specific solutions tailored to the unique needs of clients in various sectors. – Innovation and Digital Services: The company assists clients in embracing digital innovation, including artificial intelligence, cloud computing, and data analytics. – Sustainability Services: Accenture supports clients in adopting sustainable practices and achieving environmental and social goals.
Customer Segments Accenture’s customer segments include: – Enterprises: Large corporations and organizations seeking consulting and technology solutions to improve their business operations and stay competitive. – Government Agencies: Government entities at various levels engage Accenture for technology and consulting services to enhance public services and efficiency. – Small and Medium-Sized Businesses (SMBs): Smaller enterprises looking for tailored solutions to drive growth, improve efficiency, and navigate industry challenges. – Nonprofit Organizations: Nonprofits partner with Accenture to leverage technology and expertise to advance their missions. – Industry-Specific Clients: Organizations in various industries, such as healthcare, finance, energy, and retail, seek industry-specific solutions from Accenture. – Global Clients: Multinational corporations that require global solutions and services to address complex business challenges.
Revenue Streams Accenture generates revenue through several revenue streams: – Consulting Fees: The company charges fees for strategic consulting services, including business strategy, operations optimization, and industry-specific expertise. – Technology Services Fees: Revenue comes from technology solutions, system integration, digital transformation, and IT consulting services. – Managed Services Contracts: Accenture earns revenue from ongoing managed services contracts, including IT outsourcing and business process outsourcing (BPO). – Software and Licensing: Revenue may be generated through the sale of software and technology licenses. – Industry Solutions: Income is earned from the development and implementation of industry-specific solutions. – Sustainability Services: Accenture may generate revenue from sustainability consulting and services to help clients meet environmental and social goals.
Distribution Strategy Accenture’s distribution strategy focuses on global reach and specialized expertise: – Global Presence: The company has a worldwide network of offices and resources, ensuring it can serve clients in different regions and markets. – Industry Focus: Accenture tailors its services to specific industries, providing clients with industry-specific solutions and insights. – Client Engagement: Accenture engages clients through a consultative approach, understanding their unique challenges and opportunities. – Technology Partnerships: The company partners with technology providers and platforms to deliver innovative solutions to clients. – Talent Development: Accenture invests in talent development, training, and upskilling to maintain a highly skilled workforce. – Sustainability Initiatives: The company promotes sustainable business practices and may collaborate with clients on sustainability goals and initiatives.
accenture-revenue-breakdown
In 2022, most of Accenture’s revenue came from Products, followed by communication media and technology, financial services, health and public service, and resources.

Accenture in numbers

accenture-revenue-growth
Accenture’s fastest segment in 2022 was the product segment, followed by communication, media and technologies.
Accenture is one of the world’s leading professional services companies with approximately 721,000 people serving clients in a broad range of industries and in three geographic regions:
accenture-employees
Accenture had 721,000 employees in 2022, compared to 624,000 employees in 2021.
  • North America,
  • Europe
  • and Growth Markets (Asia Pacific, Latin America, Africa, the Middle East, Russia, and Turkey)
accenture-revenue-by-geography
Accenture generated most of its revenue from North America ($29.1B), compared to Europe ($20B) in 2022.
five operating groups, organized by industry
  • strategy
  • consulting,
  • digital,
  • technology including application services,
  • and operations to deliver end-to-end services and solutions to clients
Accenture five operating groups are Accenture’s reporting segments and primary market channel, organized around 13 industry groups that serve clients globally in more than 40 industries.
  • Communications, Media & Technology operating group serves communications, media, high tech, software and platform companies
  • Financial Services operating group serves the banking, capital markets and insurance industries
  • Health & Public Service operating group serves healthcare payers and providers, as well as government departments and agencies, public service organizations, educational institutions and non-profit organizations around the world
  • Products operating group serves a set of increasingly interconnected consumer-relevant industries
  • Resources operating group serves the chemicals, energy, forest products, metals and mining, utilities and related industries
The five operating groups bring together expertise from:
  • Accenture Strategy,
  • Accenture Consulting,
  • Accenture Digital,
  • Accenture Technology
  • and Accenture Operations

Communications, Media & Technology net revenues 

accenture-media-communication-technology
Accenture Communications, Media & Technology Business segment is comprised of three main lines of business: communications & Media, Software & Platforms, and High Tech. Among this business line, the most significant contributor is the communications & Media segment, comprising wireline, wireless, broadcast, entertainment, gaming, print, publishing, infrastructure providers, and cable and satellite communications service providers.

Financial Services 

accenture-financial-services
Accenture financial services business comprises two main segments: banking & capital markets and insurance. The largest contributor is banking and capital markets comprising retail and commercial banks, mortgage lenders, payment providers, corporate and investment banks, private equity firms, market infrastructure providers, wealth and asset management firms, broker/dealers, depositories, exchanges, clearing and settlement organizations, and other diversified financial enterprises.

Health & Public Service 

accenture-health-and-public-service
Accenture Health & Public Service Business comprises two main segments: health and public service. The largest contributor is the product segment comprising defense departments and military forces; public safety authorities; justice departments; human and social services agencies; educational institutions; non-profit organizations; cities; and postal, customs, revenue and tax agencies.

Products 

accenture-products
The Accenture Products Business comprises three segments: Consumer Goods, Retail & Travel Services, and Industrial and Life Sciences. The largest revenue contribution comes from the consumer goods segment comprising food and beverage, household goods, personal care, tobacco, fashion/apparel, agribusiness, and consumer health companies; supermarkets, hardline retailers, mass-merchandise discounters, department stores and specialty retailers; aviation; and hospitality and travel services companies.

Resources

accenture-resources
Accenture Resources Business comprises three segments: Chemicals & Natural Resources, Energy and Utilities. The largest contributor is the utilities business comprising power generators and developers, electric and gas transmission and distribution operators, energy and energy service retailers; water, waste and recycling service providers.

Key Highlights

  • Accenture’s Business Model:
    • Accenture operates across five main lines of business: Communications, Media, and Technology; Financial Services; Health and Public Services; Products; and Resources.
    • In 2022, the company generated over $60 billion in revenue from these lines of business.
    • The five operating groups are organized around 13 industry groups to serve clients globally in more than 40 industries.
  • Revenue Distribution in 2022:
    • Most of Accenture’s revenue in 2022 came from the Products segment, followed by Communications, Media, and Technology; Financial Services; Health and Public Service; and Resources.
  • Employee and Geographic Distribution:
    • Accenture had approximately 721,000 employees in 2022, compared to 624,000 in 2021.
    • The company serves clients in three geographic regions: North America, Europe, and Growth Markets (Asia Pacific, Latin America, Africa, the Middle East, Russia, and Turkey).
    • Accenture generated the majority of its revenue from North America ($29.1B) and Europe ($20B) in 2022.
  • Operating Groups and Industry Segments:
    • Accenture’s five operating groups are Strategy, Consulting, Digital, Technology including Application Services, and Operations.
    • These groups collaborate to deliver end-to-end services and solutions to clients.
    • The operating groups are organized around specific industry segments:
      • Communications, Media & Technology: Serves communication, media, high tech, software, and platform companies.
      • Financial Services: Serves banking, capital markets, and insurance industries.
      • Health & Public Service: Serves healthcare payers and providers, government departments and agencies, educational institutions, and non-profit organizations.
      • Products: Serves consumer-relevant industries including consumer goods, retail, travel services, and industrial and life sciences.
      • Resources: Serves chemicals, energy, forest products, metals and mining, and utilities industries.
  • Business Segment Details:
    • Communications, Media & Technology: Includes communications & media, software & platforms, and high tech segments.
    • Financial Services: Comprises banking & capital markets and insurance segments.
    • Health & Public Service: Includes health and public service segments.
    • Products: Comprises consumer goods, retail & travel services, and industrial and life sciences segments.
    • Resources: Includes chemicals & natural resources, energy, and utilities segments.
  • Net Revenues:
    • Communications, Media & Technology: Largest contributor is the communications & media segment, serving wireline, wireless, broadcast, entertainment, gaming, print, publishing, and more.
    • Financial Services: Largest contributor is the banking and capital markets segment, including retail and commercial banks, investment banks, payment providers, and more.
    • Health & Public Service: Largest contributor is the product segment, serving defense departments, human and social services agencies, educational institutions, non-profit organizations, and more.
    • Products: Largest contributor is the consumer goods segment, serving various consumer-relevant industries including fashion, food, beverage, and retail.
    • Resources: Largest contributor is the utilities segment, serving power generation, energy transmission, and distribution operators, water, waste, and recycling service providers.

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Accenture Business Model In A Nutshell

Accenture is one of the world’s leading professional services companies with approximately 425,000 people serving clients in a broad range of industries and in three geographic regions: North America, Europe and Growth Markets (Asia Pacific, Latin America, Africa, the Middle East, Russia, and Turkey) Accenture runs five operating groups, organized by industry. Those are: strategy, consulting, digital, technology including application services, and operations to deliver end-to-end services and solutions to clients. In 2017 over 27% of revenues came from products, while over 21% from financial services and over 19% of communications, media and technology. North America is the largest market for Accenture. Accenture in numbers Accenture is one of the world’s leading professional services companies with approximately 425,000 people serving clients in a broad range of industries and in three geographic regions: North America, Europe and Growth Markets (Asia Pacific, Latin America, Africa, the Middle East, Russia, and Turkey) five operating groups, organized by industry strategy consulting, digital, technology including application services, and operations to deliver end-to-end services and solutions to clients Accenture five operating groups are Accenture’s reporting segments and primary market channel, organized around 13 industry groups that serve clients globally in more than 40 industries. Communications, Media & Technology operating group serves communications, media, high tech, software and platform companies Financial Services operating group serves the banking, capital markets and insurance industries Health & Public Service operating group serves healthcare payers and providers, as well as government departments and agencies, public service organizations, educational institutions and non-profit organizations around the world Products operating group serves a set of increasingly interconnected consumer-relevant industries Resources operating group serves the chemicals, energy, forest products, metals and mining, utilities and related industries The five operating groups bring together expertise from: Accenture Strategy, Accenture Consulting, Accenture Digital, Accenture Technology and Accenture Operations Communications, Media & Technology net revenues increased 4% in local currency, led by Software & Platforms in North America, as well as growth across all industry groups in Growth Markets. This growth was partially offset by a decline in Communications & Media in Europe, as disruptions in the market continue to impact demand Financial Services net revenues increased 7% in local currency, led by Banking & Capital Markets in Europe and Growth Markets Health & Public Service net revenues increased 3% in local currency, driven by Public Service in Growth Markets and Europe Products net revenues increased 14% in local currency, driven by very strong growth across all industry groups and geographic regions, led by Consumer Goods, Retail & Travel Services, as well as Life Sciences in North America and Industrial in Europe Resources net revenues increased 1% in local currency, led by Utilities in Europe, partially offset by declines in Energy across all geographic regions Handpicked related articles:  What Is a Business Model? 30 Successful Types of Business Models You Need to Know What Is a Business Model Canvas? Business Model Canvas Explained How Does Twitter Make Money? Twitter Business Model In A Nutshell How Does DuckDuckGo Make Money? DuckDuckGo Business Model Explained How Amazon Makes Money: Amazon Business Model in a Nutshell How Does Netflix Make Money? Netflix Business Model Explained How Does PayPal Make Money? The PayPal Mafia Business Model Explained How Does WhatsApp Make Money? WhatsApp Business Model Explained How Does Google Make Money? It’s Not Just Advertising!  How Does Facebook Make Money? Facebook Hidden Revenue Business Model Explained Marketing vs. Sales: How to Use Sales Processes to Grow Your Business The Google of China: Baidu Business Model In A Nutshell

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