Industry 4.0 building the digital survey results

Transcription

1 Industry 4.0 building the digital survey results Jesper Vedsø Mobile: Denmark 1

2 Agenda About the study Defining Industry 4.0 and Results Conclusion what companies need to do now 2

3 2,000+ companies from 26 countries in 9 industry sectors s 2016 Global Industry 4.0 Survey of industrial products companies is the biggest survey of its kind in studies of Industry 4.0 to date. Industry split Participating countries Methodology: Based on research conducted between November 2015 and January 2016 with over 2,000 senior executives from industrial products companies in 26 countries. The majority of participants were Chief Digital Officers or other senior executives with top-level responsibility in their company for Industry 4.0 strategy and activity. Results were weighted by country GDP to provide a balanced view in global. 3

4 Key Findings of the Industry 4.0 study 4

5 From talk to action Respondents expect to more than double their level of digitisation by 2020 Percentage of companies surveyed reporting high degrees of digitization and integration today/in five years in the different parts of their company High level of digitization today/in five years 5

6 From talk to action First movers are almost three times more successful in combining high revenue increases with significant gains in cost reduction Cumulative benefits from digitisation expected in the next five years in terms of lower costs and increased revenues 6

7 Digitisation drives quantum leaps in performance Companies expect to reduce operational costs by 3.6% p.a., while increasing their annual revenue by 2.9% p.a. Additional revenue in % p.a. until 2020 Additional revenue in USD bn p.a. until 2020 Cost reduction in % p.a. until 2020 Cost reduction in USD bn p.a. until

8 Digitisation drives quantum leaps in performance Revenues from digitizing the product and service portfolio will grow significantly in the future Companies achieve 10% or more additional revenue in the following areas over the next 5 years 8

9 Deepen digital relationships with more empowered customers Industry 4.0 is helping industrial companies optimize customer relationships Percentage of companies using data analytics in five years to improve customer relationships and customer intelligence along the product lifecycle. How industrial companies are getting close to customers 9

10 Focus on people and culture to drive transformation Companies see the biggest implementation challenge not in the right technology, but in a lack of digital culture and skills What are the biggest implementation challenges for building digital operations capabilities 10

11 Data analytics and digital trust are the foundation for industry 4.0 Over 80% of companies expect data analytics will have a significant influence on their decision-making processes in five years time USA China Germany Japan UK Brazil France India Significance of gathering, analysis and utilisation of data for decision making today/ in five years country specific and in general 11

12 Data analytics and digital trust are the foundation for industry 4.0 Companies need to expand their use of big data analytics Companies use predictive analytics mainly for planning and controlling and not yet for customer developments and to develop new products. Which areas are companies using big data analytics today/ in five years 12

13 Robust, enterprise-wide data analytics capabilities require significant change Company-wide data analytics capabilities require change 38% of companies currently rely on selective, ad-hoc capabilities of single employees; still the majority rates their capabilities as medium or advanced. How advanced is your company in data analytics How are data analytics capabilities organized in your company 13

14 Industry 4.0 is accelerating globalisation with regional differences Germany, Japan and the US are making the strongest push for digitisation Regional expectations high degrees of digitization and integration today/in five years 14

15 Industry 4.0 is accelerating globalisation with regional differences Big gains are anticipated by industrial products companies in all regions 15

16 Big investments with big impact: it s time to commit Companies in every industry are planning substantial investments 16

17 Big investments with big impact: it s time to commit Industrial production companies globally will invest 5% of their digital revenue or US$907 billion p.a. until 2020, with 55% expecting a ROI within two years. Industry 4.0 investment (in % p.a. of digital revenue until 2020) Expected return on investment period for digital investments 17

18 Conclusion - what companies need to do now 18

19 Blueprint for implementation success Six steps companies need to take in order to build a Digital Enterprise 19

20 Map out your industry 4.0 strategy Clearly define your vision as your I4.0 strategy will shape every further step you take 1. Evaluate your own digital maturity now and set clear targets for the next five years 2. Make sure you engage champions throughout your business 20

21 Create initial pilot projects 21

22 Define the capabilities you need Map out your enterprise architecture and what capabilities you need 1. Fine tuning your organisation 2. Focusing on people 3. Improving processes 4. Implementing new technologies 22

23 Become a data virtuoso Identifying and gathering the right data, deploying it for the right purposes and effectively analysing it will be critical to make the right Industry4.0 decisions 1 5 Connectivity to employees Automated feedback to the organisation Predictive analytics and forecasting Effective data analytics strategy Prescriptive analytics 2 4 Business-driven decision making 3 23

24 Transform into a digital enterprise Digital transformation will only happen if top management places Industry 4.0 at the centre of the C-suite agenda 1. Companies will need to develop a digital skillset 2. Functional silos will strangle the organisation 3. A committed leadership is a critical success factor 24

25 Actively plan an ecosystem approach Go beyond the horizontal and vertical integration understand the consumer and use digital technologies to create and deliver value in an integrated and innovative solution 25

26 Conclusions Denmark 26

27 Conclusion 1. Companies are getting down to business with Industry they expect Industry 4.0 cost savings of US$ 421 billion per year and additional revenue of US$ 493 billion per year. 2. Companies will invest 5% of their revenue or US$ 907 billion p.a. by 2020, with the majority expecting a return on invest within two years. 3. Industry 4.0 is accelerating globalisation, with distinct regional specification. 4. Data management & analytics are the foundation of Industry 4.0 companies need to use the full potential of predictive analytics to succeed. 5. The biggest implementation challenge isn t the right technology, it s a lack of digital culture and skills in their organisation. Companies need to drive digital transformation from the top-management all the way to the shop floor. 27

28 Your questions?