Accenture 2Q16 Earnings Call Notes

Accenture’s (ACN) CEO Pierre Nanterme on Q2 2016 Results

Examples of Accenture’s work

“Working with Boston Scientific, we have jointly developed a cloud-based digital health solution for hospitals, built on the Accenture Insights Platform, the new installation is designed to leverage our analytics capabilities to significantly improve patient care and reduce treatment cost.

Accenture Interactive continues to gain traction in the marketplace and has recently been named the digital agency partner for Celebrity Cruises where we are helping redesign the digital customer experience and for L’Oréal in Brazil, where we are responsible for search engine optimization and digital marketing analytics.

In Accenture Mobility, we are using the Accenture connected platform to drive digital transformation for Metro de Madrid, one of the largest transportation systems in the world. We expect to increase operating efficiency, improve the passenger experience, and enable new Internet of Things based services.”

The difference between the winners and losers has been being able to rotate with product cycles

“I believe that the main difference between the winners and the losers is coming from the one who are able to rotate to the high growth areas and to rotate at speed. When you look at the ERP, as David just said, all our strategy, I think the down cycle was to start building capabilities to rotate our ERP to new ERPs and at the time we were calling as an illustration building capabilities, strong capabilities with HANA, which is going to be the next generation and as for the next generation of ERP with SAP. I am taking that as an illustration. And guess what, as we speak, given the investments we made ahead of this HANA S/4 wave, today we are already the number one in implementing S/4 and HANA in the world. We see clearly and you see improving with the results of SAP, a pick up on this new ERP development.”

The macro is still sluggish

“When I look to the market, to be honest, I do not see much changes, as we speak. And just to be more specific, I think I always said, it was in October that the overall economic environment is sluggish, to say the least, and it is still sluggish. So, we can’t expect much regarding the environment; it’s unstable, risky, extraordinary complex. That was the case last year; it’s still the case this year. When I am looking at the budget from our plans, I am not seeing any significant change.”