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Copyright © 2018 Accenture All rights reserved.
INDUSTRY X.0
TRANSFORMING
OPERATIONS
IN ASSET-INTENSIVE INDUSTRIES
Copyright © 2018 Accenture. All rights reserved.
Copyright © 2018 Accenture All rights reserved.
POWERFUL FORCESAREAT WORK
ACROSS OIL AND GAS, CHEMICALS, METALS, MINING, FOREST PRODUCTS
AND UTILITIES,
Cost of sensors has fallen greatly and
continues to fall reducing barriers to
entry
Grater attention paid to
security due to heightened risk
New generations of workers and management have
greater expectations when it comes to technology
Aging infrastructure and demands
additional investment for long-term
operations
Revenue mix diversification via
new products and services
Historical underinvestment in technology
requires investment in foundational
technologies
Copyright © 2018 Accenture. All rights reserved. 2
Copyright © 2018 Accenture All rights reserved.
TECHNOLOGY IS TRANSFORMING THE
Its drivers are many, among
them the pervasiveness of
connected technology,
platforms and data
organization, hyper-
personalization, and as-a-
service business models.
The Industrial Internet of
Things (IIoT), will digitally
orchestrate plant floors,
physical products, workers
and more, unleashing
enormous value.
Critical to success in this new digital
industrial world will be the
deployment of the right technology,
preparation of the digital workforce,
intelligent orchestration of both,
and embedding of enterprises in the
right ecosystems of business
partners.
INDUSTRIAL LANDSCAPE
3Copyright © 2018 Accenture. All rights reserved.
COMPANIESARE BEGINNING TO EXPLOREAWIDE RANGE OF
Opportunities to
use public and
private cloud
Core operations
transformed by
advanced digital
technologies on
the road to
Industry X.0
Artificial
intelligence and
machine learning
are on the rise
Digital
transformation
programs are
becoming more
mainstream
Security is a top
board priority
Blockchain is
being explored
ADVANCED DIGITALTECHNOLOGIES
Copyright © 2018 Accenture. All rights reserved. 4
THE VALUE GAP?
Exploiting digital for greater efficiency
and new growth
Successfully combine digital
technologies
Companies in asset-
intensive industries can enjoy
an incremental gain in
market capitalization of
about 25.4%
if they systematically
combine technologies to
drive new experiences.
About 24%
reduction in cost-per-
employee if they combine
digital technologies to drive
new efficiencies.
Copyright © 2018 Accenture. All rights reserved. 5
THE KEY?
To create value with digital,
companies must completely reinvent
their operating models, production and
value chains, becoming what we call
INDUSTRY X.0
BUSINESSES.
Copyright © 2018 Accenture. All rights reserved. 6
7
IT IS ABOUT REIMAGINING BUSINESSES AS SMART, CONNECTED,
LIVING AND LEARNING ENTITIES
Every component of production is SELF- MONITORING,
DATA-GENERATING, AND AWARE of its context.
E2E AND TOP-TO-DOWN, COMMUNICATIONS AND
DATA-SHARE among people, systems, and machines in
real time.
A systemic and cultural capability to ACT WITH SPEED,
FOCUS, AND AGILITY to meet needs and seize
opportunity.
ADAPTIVE INTERACTIONS that create increasingly
relevant and valuable user experiences over time.
DIGITAL
Reinvention of Industry
Hyper-personalized experiences,
new levels of efficiency, and new
sources of growth driven by
smart,
connected digital technologies
SMART
CONNECTED
LIVING
LEARNING
Copyright © 2018 Accenture. All rights reserved.
SMART
CONNECTED
LIVING
LEARNING
8
IT’SALL IN THE
COMBINATION
INDUSTRY X.0
• Smart devices and integrated systems allow for
remote monitoring and control of operations.
• Equipment sensors enable real-time monitoring
and predictive self-healing.
• Evolving markets provide opportunities to
expand business models.
• Operations become more adaptive to changes in
market and customer demands.
• Mobile solutions and tracking allow two-way
communication for improved efficiency and
worker safety.
• Better insight into real-time data allows
leadership to make business decisions at an
accelerated pace.
• Virtual reality for technical training.
• Augmented reality for field worker
upskilling/reskilling.
• Machine learning allows systems to self-
police in order to identify and address issues
before they arise.
Copyright © 2018 Accenture. All rights reserved.
SMART
LIVING
CONNECTED
LEARNING
9
THE VALUEAT STAKE?
SIGNIFICANT POTENTIAL FOR
TOP-LINE VALUE
Copyright © 2018 Accenture. All rights reserved.
Note: Chart comprises only top 5
technologies and their weights
AUGMENTED REALITY/ VIRTUAL REALITY
AUTONOMOUS ROBOTS
DIGITAL TWIN
Computerized companions of physical assets that can be used for
various purposes. Digital twins use data from sensors installed on
physical objects to represent their near real-time status, working
condition or position.
Augmented reality overlays additional information situations in real-
time to allow contextualized or improved decision making, i.e. over-
the-shoulder coaching for field workers during maintenance
operations. Virtual reality simulates real-world situations, which can be
used for training.
A robot that performs behaviors or tasks with a high degree of
autonomy, which is particularly desirable in fields such as spaceflight,
household maintenance (such as cleaning), waste water treatment
and delivering goods and services.
AUGMENTED REALITY/
VIRTUAL REALITY
BIG DATA
ARTIFICIAL
INTELLIGENCE
AUTONOMOUS
ROBOTS
DIGITAL TWIN
Companies in asset-
intensive industries can enjoy
an incremental gain in
market capitalization of
ABOUT 25.4%
if they systematically
combine technologies to
drive new experiences.
8%
12%
27%
28%
8%
SIX IMPERATIVES TO BECOME SMART, CONNECTED,
AND LEARNING ….
INDUSTRY X.0 BUSINESSES
Build core engineering and production
systems around digital to drive new levels of
efficiency. Synchronize physical machines and
software systems to unlock cost efficiencies
and investment capacity.
TRANSFORM
THE CORE
Increase performance by investing in new
ideas, testing with appropriate KPIs to
measure success and then scale based on
results.
FOCUS ON EXPERIENCES
AND OUTCOMES
Ideate and create new business models to
drive differentiated value and new revenue
streams.
INNOVATE NEW BUSINESS
MODELS
Source, train and retain talent with
digital-ready skills and encourage
active collaboration between people
and machines.
BUILD A DIGITAL-READY
WORKFORCE
Continually balance investment and
resource allocation between
core business and new business to
synchronize innovation and growth.
PIVOT
WISELY
Create a robust ecosystem of
suppliers, distributors, start-ups, and
customers that allows them to rapidly
scale new business models across the
digital value chain.
RE-ARCHITECT NEW
ECOSYSTEMS
Copyright © 2018 Accenture. All rights reserved. 10
1
2
3
4
5
6
11
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 401,000 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.
VISIT US
DIG DEEP INTO OUR INDUSTRY EXPERTISE
Energy: https://www.accenture.com/us-en/energy-index
Chemicals: https://www.accenture.com/us-en/chemicals-index
Natural Resources: https://www.accenture.com/us-en/natural-resources-index
Utilities: https://www.accenture.com/us-en/utilities-index
LEARN MORE ABOUT INDUSTRY X.0
https://www.accenture.com/us-en/service-industry-x0
Copyright © 2018 Accenture. All rights reserved.

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Industry X.0: Transforming operations in asset-intensive industries

  • 1. Copyright © 2018 Accenture All rights reserved. INDUSTRY X.0 TRANSFORMING OPERATIONS IN ASSET-INTENSIVE INDUSTRIES Copyright © 2018 Accenture. All rights reserved.
  • 2. Copyright © 2018 Accenture All rights reserved. POWERFUL FORCESAREAT WORK ACROSS OIL AND GAS, CHEMICALS, METALS, MINING, FOREST PRODUCTS AND UTILITIES, Cost of sensors has fallen greatly and continues to fall reducing barriers to entry Grater attention paid to security due to heightened risk New generations of workers and management have greater expectations when it comes to technology Aging infrastructure and demands additional investment for long-term operations Revenue mix diversification via new products and services Historical underinvestment in technology requires investment in foundational technologies Copyright © 2018 Accenture. All rights reserved. 2
  • 3. Copyright © 2018 Accenture All rights reserved. TECHNOLOGY IS TRANSFORMING THE Its drivers are many, among them the pervasiveness of connected technology, platforms and data organization, hyper- personalization, and as-a- service business models. The Industrial Internet of Things (IIoT), will digitally orchestrate plant floors, physical products, workers and more, unleashing enormous value. Critical to success in this new digital industrial world will be the deployment of the right technology, preparation of the digital workforce, intelligent orchestration of both, and embedding of enterprises in the right ecosystems of business partners. INDUSTRIAL LANDSCAPE 3Copyright © 2018 Accenture. All rights reserved.
  • 4. COMPANIESARE BEGINNING TO EXPLOREAWIDE RANGE OF Opportunities to use public and private cloud Core operations transformed by advanced digital technologies on the road to Industry X.0 Artificial intelligence and machine learning are on the rise Digital transformation programs are becoming more mainstream Security is a top board priority Blockchain is being explored ADVANCED DIGITALTECHNOLOGIES Copyright © 2018 Accenture. All rights reserved. 4
  • 5. THE VALUE GAP? Exploiting digital for greater efficiency and new growth Successfully combine digital technologies Companies in asset- intensive industries can enjoy an incremental gain in market capitalization of about 25.4% if they systematically combine technologies to drive new experiences. About 24% reduction in cost-per- employee if they combine digital technologies to drive new efficiencies. Copyright © 2018 Accenture. All rights reserved. 5 THE KEY?
  • 6. To create value with digital, companies must completely reinvent their operating models, production and value chains, becoming what we call INDUSTRY X.0 BUSINESSES. Copyright © 2018 Accenture. All rights reserved. 6
  • 7. 7 IT IS ABOUT REIMAGINING BUSINESSES AS SMART, CONNECTED, LIVING AND LEARNING ENTITIES Every component of production is SELF- MONITORING, DATA-GENERATING, AND AWARE of its context. E2E AND TOP-TO-DOWN, COMMUNICATIONS AND DATA-SHARE among people, systems, and machines in real time. A systemic and cultural capability to ACT WITH SPEED, FOCUS, AND AGILITY to meet needs and seize opportunity. ADAPTIVE INTERACTIONS that create increasingly relevant and valuable user experiences over time. DIGITAL Reinvention of Industry Hyper-personalized experiences, new levels of efficiency, and new sources of growth driven by smart, connected digital technologies SMART CONNECTED LIVING LEARNING Copyright © 2018 Accenture. All rights reserved. SMART CONNECTED LIVING LEARNING
  • 8. 8 IT’SALL IN THE COMBINATION INDUSTRY X.0 • Smart devices and integrated systems allow for remote monitoring and control of operations. • Equipment sensors enable real-time monitoring and predictive self-healing. • Evolving markets provide opportunities to expand business models. • Operations become more adaptive to changes in market and customer demands. • Mobile solutions and tracking allow two-way communication for improved efficiency and worker safety. • Better insight into real-time data allows leadership to make business decisions at an accelerated pace. • Virtual reality for technical training. • Augmented reality for field worker upskilling/reskilling. • Machine learning allows systems to self- police in order to identify and address issues before they arise. Copyright © 2018 Accenture. All rights reserved. SMART LIVING CONNECTED LEARNING
  • 9. 9 THE VALUEAT STAKE? SIGNIFICANT POTENTIAL FOR TOP-LINE VALUE Copyright © 2018 Accenture. All rights reserved. Note: Chart comprises only top 5 technologies and their weights AUGMENTED REALITY/ VIRTUAL REALITY AUTONOMOUS ROBOTS DIGITAL TWIN Computerized companions of physical assets that can be used for various purposes. Digital twins use data from sensors installed on physical objects to represent their near real-time status, working condition or position. Augmented reality overlays additional information situations in real- time to allow contextualized or improved decision making, i.e. over- the-shoulder coaching for field workers during maintenance operations. Virtual reality simulates real-world situations, which can be used for training. A robot that performs behaviors or tasks with a high degree of autonomy, which is particularly desirable in fields such as spaceflight, household maintenance (such as cleaning), waste water treatment and delivering goods and services. AUGMENTED REALITY/ VIRTUAL REALITY BIG DATA ARTIFICIAL INTELLIGENCE AUTONOMOUS ROBOTS DIGITAL TWIN Companies in asset- intensive industries can enjoy an incremental gain in market capitalization of ABOUT 25.4% if they systematically combine technologies to drive new experiences. 8% 12% 27% 28% 8%
  • 10. SIX IMPERATIVES TO BECOME SMART, CONNECTED, AND LEARNING …. INDUSTRY X.0 BUSINESSES Build core engineering and production systems around digital to drive new levels of efficiency. Synchronize physical machines and software systems to unlock cost efficiencies and investment capacity. TRANSFORM THE CORE Increase performance by investing in new ideas, testing with appropriate KPIs to measure success and then scale based on results. FOCUS ON EXPERIENCES AND OUTCOMES Ideate and create new business models to drive differentiated value and new revenue streams. INNOVATE NEW BUSINESS MODELS Source, train and retain talent with digital-ready skills and encourage active collaboration between people and machines. BUILD A DIGITAL-READY WORKFORCE Continually balance investment and resource allocation between core business and new business to synchronize innovation and growth. PIVOT WISELY Create a robust ecosystem of suppliers, distributors, start-ups, and customers that allows them to rapidly scale new business models across the digital value chain. RE-ARCHITECT NEW ECOSYSTEMS Copyright © 2018 Accenture. All rights reserved. 10 1 2 3 4 5 6
  • 11. 11 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 401,000 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. VISIT US DIG DEEP INTO OUR INDUSTRY EXPERTISE Energy: https://www.accenture.com/us-en/energy-index Chemicals: https://www.accenture.com/us-en/chemicals-index Natural Resources: https://www.accenture.com/us-en/natural-resources-index Utilities: https://www.accenture.com/us-en/utilities-index LEARN MORE ABOUT INDUSTRY X.0 https://www.accenture.com/us-en/service-industry-x0 Copyright © 2018 Accenture. All rights reserved.

Editor's Notes

  1. How we tell our story to the Market and Accenture Use one example to bring to life
  2. Transform The Core: Digitize and integrate engineering, production, and support for new efficiencies. STRATEGIC DIGITAL ALIGNMENT: Ensuring consistent understanding and deployment of digital strategy across the company and ecosystem with enhanced focus on digital trust and security INTEGRATED HARDWARE & SOFTWARE: Integrating hardware and software synchronously across the value chain and product lifecycle AUTOMATION AT SCALE: Automating at scale to optimize production runs and improve overall equipment effectiveness (OEE) Innovate New Business Models: Invent new revenue streams for new sources of value. REINVENTION OF THE PRODUCT: Building intelligent and connected products from scratch, that are capable of adaptive interactions M2M SYNERGIES: Jointly leveraging IoT and IIoT to extract sharper insights and find new sources of synergistic value, at the level of the workforce and/or customers AS-A-SERVICE BUSINESS MODEL: Transforming into a as-a-service business, by leveraging software-based-services and pay-per-use revenue models Focus On Experiences And Outcomes: Create personalized value to lead in the market. PERSONALIZATION: Designing and deploying products/services/platforms that constantly adapt to meet changing customer needs BIG DATA ANALYTICS: Using big data as the foundation for real-time insight generation and decision support SMART TOUCHPOINTS: Enhancing customer experience through the use of digital interfaces that allow for smart touchpoints throughout the product lifecycle. Build The Workforce: Source, enable, and protect the next generation of talent. DIGITAL ROLES: Developing digital components to multiple roles being performed by the workforce MAN-MACHINE COLLABORATION: Designing tasks that encourage active collaboration between humans and autonomous robots/machines, to accomplish day-to-day tasks RE-SKILLING FOR DIGITAL: Equipping the workforce to leverage digital tools and machine capabilities to improve productivity and enhance culture of experimentation Re-architect The New Ecosystem: Assemble and refresh the right partners to drive new innovation and new capabilities. ECOSYSTEM ORCHESTRATION: Orchestrate the ecosystem by combining the efforts of different business partners (suppliers, peers, distribution) to create a digital value chain OPEN AND CO-INNOVATION: Obtaining and developing ideas for new products or services from a wide variety of sources, both internal and external to the firm TECH INCUBATION CENTRES AND COEs: Nurturing innovation clusters that design and prototype early-stage technology use cases Manage The Wise Pivot: Continually balance investment and resource allocation between the core and the new. DIGITAL PERFORMANCE MANAGEMENT: Pivoting shared performance metrics not only to traditional performance outcomes but also to levers that can disrupt such outcomes MAINSTREAMING DIGITAL: Moving advanced digital technologies such as artificial intelligence, machine learning, quantum computing, digital twins, from pilot/trail experiments into mainstream operations/enterprise WISE GROWTH STRATEGY: Embedding digital technology cadence principles into the overall growth strategy