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Accenture Industrial Equipment: The Race to Reinvent

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The digital universe is expanding and for Industrial Equipment companies, creating value with digital isn’t just a simple game of mixing and matching digital technologies. Companies also need to reinvent their operating models, production and value chains, becoming what we call Industry X.0 businesses.

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Accenture Industrial Equipment: The Race to Reinvent

  1. 1. WHAT’S DRIVING CHANGEININDUSTRIAL EQUIPMENT? Copyright © 2018 Accenture. All rights reserved.
  2. 2. 2 Shifting to new business models creates opportunities to escape commoditization. TREND1 NEW BUSINESS MODELS Copyright © 2018 Accenture. All rights reserved. Connected products, services & solutions. Software & embedded intelligence. Platforms to leverage ecosystem(s). Profound shift from traditional products and business models. New opportunities to reinvent, differentiate and drive growth. TO CREATES
  3. 3. 3 TREND2 OUTSIDE-IN INNOVATION Copyright © 2018 Accenture. All rights reserved. To drive innovation in recent years, many industrial companies have increasingly been developing innovation incubators and investing in major acquisitions. But while incubators and business units are working ever more closely, there is scope to leverage incubators to strengthen impact. Incubators must be truly integrated with company culture, workforce and operations to maximize innovation impact.
  4. 4. 4 Harness the power of data to reinvent, centered around the customer. Use analytics and applied intelligence to create new insights that drive value by improving the customer experience. TREND3 DATA- DRIVEN CUSTOMER EXPERIENCE REINVENT THE CUSTOMER RELATIONSHIP e.g. lead management, sales campaigns REINVENT WAYS OF WORKING e.g. collaboration on product and service design REINVENT THE CUSTOMER JOURNEY e.g. connected services, personalization DATA- DRIVEN CUSTOMER INSIGHTS Copyright © 2018 Accenture. All rights reserved.
  5. 5. 5 Digitization could enable a typical industrial equipment manufacturer with an industry average $28B in revenue and $3.3B in EBITDA to add up to ~$1.38B EBITDA by 2020. TREND4 DIGITIZE ENTERPRISE PROCESSES +602 +282 in m$ +495 3300 Digitize Customer Experience Digitize Operations ExternalFocus Internal Focus Partial Digitization Digital Customer Digital Enterprise Digital Business New Business Models Disrupt (Sub-)Market(s) Accenture 2020 Digital Outlook Copyright © 2018 Accenture. All rights reserved.
  6. 6. 6 TREND5 NEW OPERATING MODELS Copyright © 2018 Accenture. All rights reserved. FROM TRADITIONAL VERTICALSILO MODELS • Organized end-to-end by product line / business group • Lack of cost synergies and shared resources • Limitations, e.g. skills sourcing, that constrain rapid development of new digital businesses TO FLUID, BALANCED MATRIXMODELS • Flexibility for smaller product lines • Leverage horizontal capabilities, e.g. global business services, digital manufacturing, etc. • Increase efficiencies and synergies while developing new businesses fast
  7. 7. TONAVIGATE TOTHENEW, TAKE4STEPS Copyright © 2018 Accenture. All rights reserved.
  8. 8. COMPANIESMUST CONTINUOUSLYPIVOT TOTHENEWNOW 1. TRANSFORM YOUR CORE BUSINESS 2. GROW YOUR CORE BUSINESS 3. SCALE YOUR NEW BUSINESS 4. RATHER THAN JUMP, PIVOT WISELY Copyright © 2018 Accenture. All rights reserved. 8
  9. 9. 1.TRANSFORMYOUR COREBUSINESS CRITICAL ACTIVITIES • Strategic cost reduction • Zero-based budgeting • Intelligent automation • Strategic exit of select businesses To drive investment capacity • Movement of infrastructure and platforms to hybrid cloud solutions • Organisation design innovation and restructuring • Workforce efficiency Copyright © 2018 Accenture. All rights reserved. 9
  10. 10. Copyright © 2018 Accenture. All rights reserved. 10 CRITICAL ACTIVITIES • Analytics-driven customer acquisition • Reinvention as a “living business” • Monetization of underutilized assets • Investing in digital literacy (e.g., crowd sourcing, gig economy) 2.GROWTHECOREBUSINESSTO SUSTAINTHEFUELFORGROWTH • Launching software and analytics based services • Building strategic partnerships
  11. 11. 3.SCALETHENEW &EXPANDYOURHORIZONS To be responsive to obsolescence of old businesses CRITICAL ACTIVITIES • Building an innovation architecture into the business • Testing feasibility of new commercial models (e.g., as-a-service consumption) • Selectively investing in start-ups/ emerging technologies early • Developing venturing portfolio (e.g., with technology leaders and disruptors) Copyright © 2018 Accenture. All rights reserved. 11
  12. 12. Copyright © 2018 Accenture. All rights reserved. 12 4.ROTATIONTOTHENEWISA DELIBERATEANDPERPETUALJOURNEY, NOTASINGLEEVENT PIVOT WISELY To get the timing, scale and direction of investments right 1. TRANSFORM YOUR CORE BUSINESS 2. GROW YOUR CORE BUSINESS 3. SCALE YOUR NEW BUSINESS 4. PIVOT WISELY
  13. 13. TOTHEN SUCCEED INTHENEW, FOCUSON 3KEYAREAS Copyright © 2018 Accenture. All rights reserved.
  14. 14. REINVENT PRODUCTS RESHAPE BUSINESS MODELS REDEFINE CUSTOMER EXPERIENCE 1 2 3 Copyright © 2018 Accenture. All rights reserved.
  15. 15. Create intelligent, adaptive “living” products, services and platforms REINVENT PRODUCTS 1 Copyright © 2018 Accenture. All rights reserved. 15
  16. 16. Build agile business models to fuel growth RESHAPE BUSINESS MODELS 2 Copyright © 2018 Accenture. All rights reserved.
  17. 17. Understand the “why behind the buy” to drive and sustain customer loyalty REDEFINE CUSTOMER EXPERIENCE 3 Copyright © 2018 Accenture. All rights reserved.

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