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RESOURCES INDUSTRIES
DIGITAL
TRANSFORMATION
RESEARCH
Copyright © 2017 Accenture. All rights reserved.
INTRODUCTION
The transformational value that digital technologies offer to businesses is currently underexploited.
This is...
BACKGROUND ON THE RESEARCH
Respondents:
Questionnaire-led online survey with 53 senior technology executives including CIO...
INVESTMENTS IN DIGITAL TECHNOLOGIES
ACROSS THE CHEMICAL INDUSTRY ARE
GROWING SLIGHTLY FASTER THAN THE
RESOURCES AVERAGE
80...
CUSTOMER ANALYTICS AND APPS OFFER MOST
POTENTIAL FOR THE CHEMICAL INDUSTRY – BUT
THIS IS ALSO THE CAPABILITY MOST IN NEED ...
MOBILITY IS THE TECHNOLOGY ADDING MOST
VALUE IN CHEMICALS TODAY – BUT OVER THE
NEXT FIVE YEARS THIS WILL BE OVERTAKEN BY
I...
AS MARKET COMPLEXITY RISES FOR CHEMICAL
COMPANIES, EXISTING SKILLS FOR DIGITAL
TRANSFORMATION APPEAR TO BE STRETCHED
Marke...
8%
9%
17%
21%
23%
38%
55%
13%
11%
23%
26%
26%
40%
62%
Chief Data Officer
Chief Marketing Officer (CMO)
Chief Security Offi...
NEW APPROACHES TO EVALUATE THE BENEFITS
OF DIGITAL INVESTMENTS WOULD MOST HELP
TRANSFORMATION EFFORTS IN CHEMICALS
Organiz...
Business areas that IoT will add most value to (next 2 years)
22%
47%
49%
51%
51%
53%
53%
36%
44%
45%
41%
50%
47%
48%
Comm...
CULTURAL BARRIERS AND ORGANIZATIONAL
SILOS ARE THE BIGGEST BARRIERS TO IOT
INTRODUCTION FOR CHEMICAL COMPANIES
Main barrie...
COST IS THE PRIMARY BARRIER TO THE
ADOPTION OF NEW TECHNOLOGIES IN
CHEMICALS, FOLLOWED BY LACK OF INTERNAL
OWNERSHIP
Main ...
LAGGING BEHIND COMPETITORS IS THE NUMBER
ONE TECHNOLOGY CONCERN FOR CHEMICAL
COMPANIES, FOLLOWED BY CYBER THREATS
Technolo...
PROCESS EFFICIENCY IS CITED AS THE PRIMARY
OBJECTIVE OF DIGITAL TECHNOLOGY
DEPLOYMENT IN CHEMICALS, FOLLOWED BY
CUSTOMER S...
WANT MORE INFORMATION ABOUT THE SURVEY?
HAVE QUESTIONS? PLEASE CONTACT US.
Senthil Ramani
Managing Director – Chemicals an...
ABOUT
ACCENTURE
Accenture is a leading global professional services company,
providing a broad range of services and solut...
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Chemicals: Smarter Investments, Outstanding Results

More than 200 senior technology leaders (including Chief Information Officers, Chief Digital Officers and Chief Technology Officers) from across the resources industries participated in our global digital transformation survey. The key research findings for the chemical industry are shared in this presentation and provide valuable insights into current and future transformational technology trends and plans.

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Chemicals: Smarter Investments, Outstanding Results

  1. 1. RESOURCES INDUSTRIES DIGITAL TRANSFORMATION RESEARCH Copyright © 2017 Accenture. All rights reserved.
  2. 2. INTRODUCTION The transformational value that digital technologies offer to businesses is currently underexploited. This is a missed opportunity  and the leading businesses of the future are those that have, or will have, fully integrated digital strategies. The technology C-suite has valuable skill sets to help bring together the disparate components of an enterprise and provide the direction needed to deliver successful technology transformations leading to cohesive, organization-wide digital strategies. To better understand the key change agents for Resources industries in this context, more than 200 senior technology leaders including Chief Information Officers (CIOs), Chief Digital Officers (CDOs) and Chief Technology Officers (CTOs) from the chemicals (53), energy (77), metals/mining (18) and utilities (56) industries participated in our global digital transformation survey. The key findings for chemicals from the research are shared in this presentation and provide valuable insights into current and future transformational technology trends and plans. 2 *This research primarily focused on companies with turnovers of US$5 billion or more. However, in order to ensure a minimum of 50 interviews with companies in the chemicals sector, a small number of interviews were conducted with companies with turnover between US$2.5 billion to US$5 billion. For the purpose of this research “Resources industries” were defined as chemicals, energy, metals, mining and utilities. Copyright © 2017 Accenture. All rights reserved.
  3. 3. BACKGROUND ON THE RESEARCH Respondents: Questionnaire-led online survey with 53 senior technology executives including CIOs, CDOs and CTOs from chemicals in 16 countries Fieldwork: Between August and September 2016 3 United States Latin America: Brazil, Mexico Russia Middle East: UAE Europe: Denmark, France, Germany, Ireland, Norway, Spain, Sweden, Switzerland, United Kingdom Asia-Pacific: Australia, China, India, Japan, Singapore Note that the base size for metals/mining companies is low (n=18), so findings should be interpreted as indicative only. 4% 19% 27% 51% CDO (Chief Digital Officer) CTO (Chief Technology Officer) IT Director CIO (Chief Information Officer) / Head of IT Copyright © 2017 Accenture. All rights reserved.
  4. 4. INVESTMENTS IN DIGITAL TECHNOLOGIES ACROSS THE CHEMICAL INDUSTRY ARE GROWING SLIGHTLY FASTER THAN THE RESOURCES AVERAGE 80% 82% of executives say that the size of their investments in digital technologies has increased in the past two years Digital services/application design and robotics/automation have been adopted by 47%* of chemical companies believe digital technologies will have a positive impact on their company over the next five years EnergyChemicals Utilities Metals/Mining** 85% 83% 73% 89% 81% 82% 75% 89% * These were the highest of 9 IT capabilities and processes measured ** Note that the base size for metals/mining companies is low (n=18), so findings should be interpreted as indicative only. Base: All respondents (204), Chemicals (53) Copyright © 2017 Accenture. All rights reserved. 4
  5. 5. CUSTOMER ANALYTICS AND APPS OFFER MOST POTENTIAL FOR THE CHEMICAL INDUSTRY – BUT THIS IS ALSO THE CAPABILITY MOST IN NEED OF IMPROVEMENT 6% 19% 21% 25% 30% 34% 49% 49% 53% Other digital customer channels, e.g web based interaction or apps Mobility for the workforce Artificial intelligence Cybersecurity Operational analytics and applications Social media tools and applications to interact with customers Mobility to interact with customers (web, apps, mobile web) Platforms upon which to build shareable digital capabilities, like cloud solutions and app marketplaces Customer analytics and applications 26% 25% 30% 23% 25% 25% 32% 28% 23% Base: All respondents (204), Chemicals (53) Copyright © 2017 Accenture. All rights reserved. 5 Digital technologies offering most potential for business transformation over the next five years Digital capabilities most in need of improvement (% indicating fair amount/ a lot of improvement needed)
  6. 6. MOBILITY IS THE TECHNOLOGY ADDING MOST VALUE IN CHEMICALS TODAY – BUT OVER THE NEXT FIVE YEARS THIS WILL BE OVERTAKEN BY INTERACTIVITY Which technologies are adding / expected to add most value today / over the next five years? (Single response for each; only top two today / future shown) 6 Cloud Cybersecurity Interactivity Mobility CHEMICALS 0% 5% 10% 15% 20% 25% 30% 35% 40% Analytics Cloud Cybersecurity Energy FutureToday 1 Today 1 Future 1 Today 1 Future 0% 5% 10% 15% 20% 25% 30% 35% 40% Cloud Cybersecurity Interactivity Mobility Metals/Mining* 1 Future 1 Future 1 Today 1 Today 1 Future Base: All respondents (204) *Note that the base size for metals/mining companies is low (n=18), so findings should be interpreted as indicative only. Artificial Intelligence Analytics Interactivity Utilities Copyright © 2017 Accenture. All rights reserved. 1
  7. 7. AS MARKET COMPLEXITY RISES FOR CHEMICAL COMPANIES, EXISTING SKILLS FOR DIGITAL TRANSFORMATION APPEAR TO BE STRETCHED Market complexity has increased more in chemicals over the past two years compared with the Resources average 94% 74% of chemical executives believe they do not have access to all the right skills within their organization for an effective digital transformation of chemical executives believe their company is not making the investments in recruitment and training it needs 62% 64% 72% 75% 79% 60% 61% 65% 67% 69% Data landscape IT delivery model as a service IT/OT convergence and integration Technology landscape Security landscape Resources Chemicals Percentage reporting an increase in complexity (past 2 years) Base: All respondents (204), Chemicals (53) Copyright © 2017 Accenture. All rights reserved. 7
  8. 8. 8% 9% 17% 21% 23% 38% 55% 13% 11% 23% 26% 26% 40% 62% Chief Data Officer Chief Marketing Officer (CMO) Chief Security Officer Other C-suite Chief Digital Officer (CDO) Chief Information Officer (CIO) Chief Technology Officer (CTO) Resources Chemicals RESPONSIBILITY FOR IDENTIFYING NEW DIGITAL TRANSFORMATION OPPORTUNITIES IN CHEMICALS SITS PRIMARILY WITH CTOS AND CIOS Who within your company is responsible for identifying new digital transformation opportunities within the back office/enterprise functions? (Multi response) Base: All respondents (204), Chemicals (53) Copyright © 2017 Accenture. All rights reserved. 8
  9. 9. NEW APPROACHES TO EVALUATE THE BENEFITS OF DIGITAL INVESTMENTS WOULD MOST HELP TRANSFORMATION EFFORTS IN CHEMICALS Organizational changes that would help most in achieving digital transformation objectives 9 Base: All respondents (204), Chemicals (53) *Note that the base size for metals/mining companies is low (n=18), so findings should be interpreted as indicative only. Chemicals Energy Utilities Metals/ Mining* 28% 21% 21% 17% 21% 26% 18% 11% 17% 17% 27% 22% 17% 21% 13% 33% 17% 14% 20% 17%17% 19% 20% 21% 23% Ability and willingness to redesign business processes to leverage digital technologies Better alignment of business planning and technology planning Better technology awareness among senior executives Better governance of technology investments New approaches to evaluate the benefits of digital technology investments Copyright © 2017 Accenture. All rights reserved.
  10. 10. Business areas that IoT will add most value to (next 2 years) 22% 47% 49% 51% 51% 53% 53% 36% 44% 45% 41% 50% 47% 48% Command centers Innovation and product development/improvement Operations Asset monitoring Supply chain Sales and marketing functions IoT based customer services Resources Chemicals IOT* IS CONSIDERED A KEY LEVER OF DIGITAL TRANSFORMATION THAT WILL BENEFIT A WIDE RANGE OF BUSINESS AREAS IN CHEMICALS 92% of chemical executives consider IoT as a major lever of digital transformation Base: All respondents (204), Chemicals (53) *Internet of Things Copyright © 2017 Accenture. All rights reserved. 10
  11. 11. CULTURAL BARRIERS AND ORGANIZATIONAL SILOS ARE THE BIGGEST BARRIERS TO IOT INTRODUCTION FOR CHEMICAL COMPANIES Main barriers to introduce IoT in the organization 11 Chemicals Energy Utilities Metals/Mining* 42% 41% 45% 39% 44% 36% 40% 56% 34% 42% 42% 39% 46% 35% 40% 33% 34% 41% 40% 44% 26% 43% 36% 39% 34% 41% 34% 33% 38% 36% 40% 22% 40% 31% 38% 28%35% 36% 36% 36% 39% 39% 39% 41% 42% Process barriers (time to adopt new processes) Technology availability and maturity Industry standards Cybersecurity threats Lack of skills Cultural barriers and organizational silos Lack of a clear strategy/business case Lack of internal ownership Cost Base: All respondents (204), Chemicals (53) *Note that the base size for metals/mining companies is low (n=18), so findings should be interpreted as indicative only. Copyright © 2017 Accenture. All rights reserved.
  12. 12. COST IS THE PRIMARY BARRIER TO THE ADOPTION OF NEW TECHNOLOGIES IN CHEMICALS, FOLLOWED BY LACK OF INTERNAL OWNERSHIP Main barriers to adoption of new digital technologies 12 Base: All respondents *Note that the base size for metals/mining companies is low (n=18), so findings should be interpreted as indicative only. Chemicals Energy Utilities Metals/Mining* 47% 42% 36% 56% 43% 42% 39% 33% 32% 39% 36% 39% 38% 30% 45% 28% 45% 29% 32% 39% 26% 36% 39% 22% 38% 26% 43% 17% 43% 29% 27% 39% 32% 35% 30% 28%32% 32% 33% 33% 33% 35% 36% 36% 41% 43% Process barriers (time to adopt new processes) Technology availability and maturity Deployment complexity Awareness of technology relevance Lack of skills Lack of internal ownership Cultural barriers and organizational silos Cybersecurity threats Lack of a clear strategy/business case Cost Copyright © 2017 Accenture. All rights reserved.
  13. 13. LAGGING BEHIND COMPETITORS IS THE NUMBER ONE TECHNOLOGY CONCERN FOR CHEMICAL COMPANIES, FOLLOWED BY CYBER THREATS Technology risk current areas of concern 13 Base: All respondents (204), Chemicals (53) *Note that the base size for metals/mining companies is low (n=18), so findings should be interpreted as indicative only. Chemicals Energy Utilities Metals/Mining* 19% 25% 14% 22% 11% 22% 18% 17% 23% 10% 16% 11% 19% 14% 18% - 8% 12% 9% 22% 11% 8% 14% 11% 9% 9% 9% 17%10% 11% 11% 15% 15% 18% 20% Reputational risks Physical security threats Health and safety risk Environmental risk Lagging behind competitors in digital/technology capabilities Regulatory risk Cybersecurity threats Copyright © 2017 Accenture. All rights reserved.
  14. 14. PROCESS EFFICIENCY IS CITED AS THE PRIMARY OBJECTIVE OF DIGITAL TECHNOLOGY DEPLOYMENT IN CHEMICALS, FOLLOWED BY CUSTOMER SATISFACTION Primary objectives for digital technologies 14 Base: All respondents (204), Chemicals (53) *Note that the base size for metals/mining companies is low (n=18), so findings should be interpreted as indicative only. Chemicals Energy Utilities Metals/Mining* 28% 25% 20% 33% 21% 26% 14% 50% 25% 21% 14% 11% 21% 16% 23% 6% 4% 12% 29% -13% 18% 19% 24% 25% Regulation compliance e.g., health, safety and environment New product/service development Customer satisfaction Cost control Process efficiency Copyright © 2017 Accenture. All rights reserved.
  15. 15. WANT MORE INFORMATION ABOUT THE SURVEY? HAVE QUESTIONS? PLEASE CONTACT US. Senthil Ramani Managing Director – Chemicals and Natural Resources, Global Technology Lead Accenture Copyright © 2017 Accenture. All rights reserved. 15 Visit Read Follow www.accenture.com/chemicals www.accenture.com/chemicalsblog @AccentureChems Accenture Chemicals
  16. 16. 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 394,000 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. Copyright © 2017 Accenture. All rights reserved.

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