Companies That Harness Digital Technologies to Boost Efficiency & Grow Their Bus. Could Raise Their Market Capitalization by ...
September 29 2017 - 2:59AM
Business Wire
Lack of skills threatens companies’ ability to
create the ‘Industry X.0’ action plan required to realize these
benefits
Companies that leverage the right combination of new technology
could increase their market capitalization by an average of more
than US$6 billion, according to Accenture’s evaluation of 10
digital technologies across eight industries.
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Additional gains in market cap from
combining the right digital technologies (Graphic: Business
Wire)
Accenture (NYSE:ACN) carried out the economic modelling after
its initial research revealed that only 13 percent of executives at
more than 900 large companies said their businesses are getting
both greater efficiency and business growth through new revenue
streams from their investments in digital technologies. Accenture
believes this is due largely to piecemeal deployment and
implementation of investments in digital technologies.
For the economic modelling, Accenture examined a range of
technological combinations that could best help companies with
sales revenues of $1 billion or more in the automotive, chemicals,
consumer goods and services, electronic and high-tech, energy, life
sciences and utilities industries significantly reduce their cost
per employee and grow their market capitalization.
While they vary across industries, the combinations of the
technologies—including 3D printing, artificial intelligence (AI),
augmented and virtual reality (AR/VR), autonomous robots,
autonomous vehicles, big data analytics, blockchain, digital twin,
machine learning and mobile computing -- can have a significant
impact. For instance, companies in the industrial-equipment sector
could realize additional cost savings of more than $43,000 per
employee if they combined robotics, AI, blockchain, big data and
3D-printing technologies. Energy companies could gain more than $16
billion in market capitalization if they combined technologies such
as virtual reality, big data and AI.
“More than just transforming into digital businesses, companies
must completely reinvent their operating models, production and
value chains to create more value with digital,” said Aidan
Quilligan, managing director and lead for Accenture’s Industry X.0
practice. “But our research yields a concrete solution: what we
call Industry X.0. It’s an action plan for becoming more adept at
embracing technological change and profiting from it.”
Industry X.0 is how Accenture defines the digital reinvention of
industry, when businesses use advanced digital technologies to
transform their core operations, their worker and customer
experiences and ultimately their business models. New levels of
efficiency are achieved in the core of R&D, engineering,
production, manufacturing and business support through integrated
systems, processes, sensors and new intelligence. Worker and
customer experiences are reimagined and redesigned through
personalization and advances such as immersive, augmented and
virtual reality. New business models and revenue streams are
unlocked by smart, connected products, services and plants that are
enabled by new ecosystems.
The level of demand for Industry X.0 is revealed in Accenture’s
survey of 931 executives from 21 countries. Among the respondents,
80 percent want new efficiencies, new growth and new experiences to
be delivered all at the same time and that 64 percent agree that
failure to leverage the components of digital value will cause them
to struggle for survival in the future.
The executive research also revealed a key challenge that will
hinder the ability of businesses to innovate with connected and
intelligent products. There is a shortage of digital skills among
their workforces that is preventing them from innovating with
connected and intelligent products (29 percent).
“Most of the business leaders we work with understand the power
of digital. They see the potential for digital technologies to
bring about transformation and growth and are making big
investments in a variety of leading technologies,” said Dave Abood,
senior managing director, Resources, Growth & Strategy.
“Unfortunately, many aren’t getting the most out of their digital
investments. The challenge is that to do so requires a careful
balance of transforming core businesses while scaling new ones,
which demands new talent, new skills and new competencies in
managing the pivot.”
There is positive news for the current workforce, as it is
expected that key digital technologies will create new jobs as
companies reinvent themselves to reflect Industry X.0. The research
indicates that deployment of connected and intelligent products,
systems and plant will lead not only to the addition of new
responsibilities to existing roles, but also to the creation of
entirely new roles. More than half (55 percent) of executives
surveyed said they believe that more new roles (in terms of
responsibility) will be created than might be eliminated, and
approximately the same number of executives (56 percent) said they
believe that existing roles will be expanded or evolve.
Methodology
Accenture surveyed 931 senior executives from large companies
across 12 industries and 21 industrial countries to understand how
companies deploy digital technologies and the benefits they derive
from them. We then identified a set of 10 critical technologies; 3D
printing, AI, AR/VR, autonomous robots, autonomous vehicles, big
data analytics, blockchain, digital twin, machine learning and
mobile computing. We used both survey data and company financial
data to perform an Economic Value Modelling exercise designed to
identify the technology combinations with the biggest impact on
top-line and bottom-line value release, as measured by market
capitalization and cost-per-employee. We identified the optimum mix
of technologies by combining results from machine learning and
principal component analysis.
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 approximately
425,000 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.
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AccentureAnthony Hatter, +44 7810 756
138anthony.hatter@accenture.com
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