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Digital Technology in Forest Products Survey 2018

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Digital technology is rapidly reshaping the landscape in the forest products industry. See what's driving this transformation and the results of Accenture's Digital Technology in Forest Products 2018 survey.

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Digital Technology in Forest Products Survey 2018

  1. 1. Key Findings DIGITAL TECHNOLOGY IN FOREST PRODUCTS SURVEY 2018
  2. 2. Accenture conducted an online survey of 200 C-level and top management executives and functional leaders in the forest products industry. The survey focus was on the use of, and investment in, digital technologies in the forest products industry. Data for this study was carried out through a global quantitative online survey that focused on companies with global annual revenues greater than $500 million and who currently leverage digital technologies and/or are pursuing digital transformation, including but not limited to cloud, analytics (including big data and edge computing), mobility (including wearables), advanced process control, artificial intelligence/machine learning, collaboration and social tools, intelligent/smart sensors, robotics and industrial cybersecurity. The survey was fielded between October and November 2017 and included executives from forest products companies headquartered in Australia, Brazil, Canada, Finland, Indonesia, Malaysia, Norway, Singapore, Sweden and the US. SURVEY & METHODOLOGY Copyright © 2018 Accenture. All rights reserved. 2 Organization Headquarters: Count % Australia 20 10% Canada 16 8% Brazil 16 8% Finland 5 3% Indonesia 3 2% Malaysia 12 6% Norway 10 5% Singapore 9 5% Sweden 11 6% US 98 49% Total 200 100%
  3. 3. SURVEY & METHODOLOGY Copyright © 2018 Accenture. All rights reserved. 3 SURVEY & METHODOLOGY Respondent Location: Count % Australia 18 9% Canada 14 7% Brazil 16 8% Finland 3 2% Indonesia 3 2% Malaysia 12 6% Norway 10 5% Singapore 10 5% Sweden 9 5% US 105 53% Total 200 100% Respondent Title: Count % C-Level 69 35% Senior Vice President 38 19% Vice President 38 19% General Manager or Director 48 24% Commercial/ Business Manager 7 4% Total 200 100% Respondent Role: Count % Asset or operations lead 87 44% Business lead 74 37% Function lead 39 20% Total 200 100% Global Annual Revenue USD: Count % $500M - $1B 59 30% $1 - $5B 91 46% $5B - $10B 38 19% $10B - $20B 10 5% Greater than $20B 2 1% Total 200 100%
  4. 4. Copyright © 2018 Accenture. All rights reserved. 4 Most companies are investing more in digital now than they did previously and expect to continue down this path in future. Compared to the previous financial year, is your company/organization investing more or less in digital technologies in your organization? Select one. To what extent do you expect your company/organization’s overall investment in digital in your organization to change in the next three years? Select one. Current 13% 69% 18% 1% 82% In three years 22% 66% 12% 1% 88% Less/Modestly decrease (by 1% to 25%) The same More/modest increase (by 1% to 25%) Significantly more/increase (by 25% or more) Digital Technology in Forest Products Survey: Q10, Q11 Base: All respondents Significantly less/decrease (by 25% or more)
  5. 5. Copyright © 2018 Accenture. All rights reserved. 5 94% of global companies have been able to determine the financial value from using digital in their organization. Has your company/organization been able to determine the financial benefit of utilizing digital technologies in your organization? Select one. 94% 6% Yes No Digital Technology in Forest Products Survey: Q9 Base: All respondents
  6. 6. Copyright © 2018 Accenture. All rights reserved. 6 Lost opportunities for market share growth and loss of competitive advantage due to cost are potential negative repercussions from insufficient investments in digital feared by most companies. What are the potential negative repercussions of not investing or insufficiently investing in digital technologies? Select all that apply. 94% 7% 38% 38% 41% 42% 48% 51%We could lose opportunities for market share growth We could lose competitive advantage due to cost We could experience significant profit declines due to unreliable operations We could expose ourselves to a cyberattack We could lose the confidence of our shareholders We could lose a significant number of customers due to poor quality/consistency No negative repercussions are anticipated Digital Technology in Forest Products Survey: Q13 Base: All respondents
  7. 7. Copyright © 2018 Accenture. All rights reserved. 7 Over half of companies are prioritizing their digital technology investment around quality management (62%) and IT (59%). Investments in production execution and supply chain are also rated among the top five investments for around one in two executives. In what areas are you making the greatest investments in digital technology? Rank your top five areas in order of greatest investments to least investments made. 13% 22% 12% 10% 9% 5% 7% 5% 5% 3% 5% 2% 5% 45% 47% 29% 30% 22% 21% 20% 17% 19% 14% 15% 13% 11% 62% 59% 49% 48% 44% 37% 36% 33% 32% 31% 27% 25% 20% 1 - Greatest investment Within Top 3 Within Top 5 IT Marketing Sales Human Resources FinanceCustomer Service ProcurementQuality Management Production Execution Planning & Scheduling Material Management/ Supply Chain MaintenanceEnvironment, Health & Safety (EH&S) Digital Technology in Forest Products Survey: Q1 Base: All respondents Within Top 5 Within Top 3 Greatest investment
  8. 8. Copyright © 2018 Accenture. All rights reserved. 8 Cloud has been deployed the most, with 61% of respondents noting either widespread adoption or pilot programs for that technology. Please indicate your company/organization’s current status regarding the deployment of the following digital technologies? Select one for each. 3% 1% 1% 1% 1% 1% 1% 10% 9% 9% 9% 9% 7% 4% 13% 11% 37% 35% 34% 37% 34% 33% 41% 32% 35% 33% 30% 36% 30% 32% 32% 27% 31% 31% 17% 26% 22% 24% 26% 29% 28% 24% 23% Robotics Mobility/ wearables Intelligent/ smart sensors Industrial cybersecurity Collaboration and social tools Cloud Big data/ analytics/ edge computing Artificial intelligence/ machine learning Advanced process control Not applicable/relevant to our business Currently no plan to employ within next 3 years Widespread adoption within our organization Have begun pilot programs Technology strategy has been defined/being developed Digital Technology in Forest Products Survey: Q4 Base: All respondents 50% 1%
  9. 9. 15% 9% 15% 22% 19% 16% 13% 23% 16% 23% 15% 6% 13% 9% 17% 19% 19% 18% 23% 21% 21% 14% 13% 13% 12% 13% 24% 22% 21% 22% 15% 12% 28% 17% 27% 18% 26% 16% 23% 10% 22% 8% 3% 14% 14% 6% 8% 14% 7% 6% 10% 10% 7% 7% 10% 12% 5% 11% 17% 11% 17% 16% 15% 31% 10% 15% 13% 7% 8% 10% 14% 8% 8% 8% 10% 13% 8% 20% 15% 7% 12% 12% 14% 9% 4% 9% 10% 6% 14% 5% 3% 2% 3% 1% 5% 4% 3% 3% 2% 4% 2% 5% 2% 2% 4% 1% 1% 2% 2% 2% Copyright © 2018 Accenture. All rights reserved. 9 Each operation within the organization has its own specific digital technology responsible for driving its operational efficiency. However, analytics is quite prominent across the board. Which of the following digital technologies are driving the greatest impact in terms of operational efficiency and effectiveness for your organization? Select one. Big Data/Analytics/ Edge Computing Cloud Collaboration and social tools Intelligent/smart sensors Mobility/wearables Robotics Industrial cybersecurity Artificial intelligence/ machine learning Advanced Process Control IT Marketing Sales Human Resources FinanceCustomer Service ProcurementQuality Management Production Execution Planning & Scheduling Material Management/ Supply Chain MaintenanceEnvironment, Health & Safety (EH&S) 1% 0% 2% 0% 0% 0% 3% Digital Technology in Forest Products Survey: Q2 Base: All respondents
  10. 10. Copyright © 2018 Accenture. All rights reserved. 10 Each operation has a digital technology that is most important to its function. Nonetheless, analytics, artificial intelligence and advanced process control are among the most strategic across many areas. Which of the following digital technologies are most strategically important to your organization? Select all that apply. Base: All respondents Quality Management IT Production Execution Material Management /Supply Chain Environment, Health & Safety (EH&S) Customer Service Planning & Scheduling Maintenance Marketing Procurement Sales Human Resources Finance Robotics 15% 15% 21% 25% 20% 14% 17% 18% 8% 16% 9% 12% 13% Mobility/wearables 19% 24% 24% 27% 24% 19% 21% 21% 22% 18% 11% 29% 10% Intelligent/smart sensors 34% 20% 30% 33% 33% 26% 22% 23% 25% 23% 19% 27% 23% Industrial cybersecurity 18% 34% 29% 22% 18% 27% 31% 14% 17% 28% 23% 33% 38% Collaboration and social tools 23% 31% 19% 23% 39% 32% 19% 24% 41% 23% 25% 35% 33% Cloud 22% 40% 19% 29% 22% 30% 19% 14% 22% 15% 25% 33% 20% Big data/analytics/ edge computing 40% 34% 31% 41% 19% 45% 43% 26% 33% 31% 30% 37% 23% Artificial intelligence/ machine learning 29% 32% 34% 41% 32% 26% 33% 27% 25% 23% 23% 29% 23% Advanced process control 38% 19% 34% 36% 50% 20% 42% 32% 23% 23% 13% 16% 18% Digital Technology in Forest Products Survey: Q3
  11. 11. Copyright © 2018 Accenture. All rights reserved. 11 Over 40% of executives ranked analytics and artificial intelligence/machine learning among their top three technologies that hold most potential for overall ROI. 17% ranked advanced process control as the technology with the most potential. Please rank the top three digital technologies that you think hold the most potential for your overall company/organization ROI (Return on Investment) in the next 12 months. Rank from 1 to 3, where 1=Technology with the most potential. Big data/ analytics/ edge computing 43% 15%Top 1 Within Top 3 Artificial intelligence/ machine learning 14% 41% Intelligent/ smart sensors 11% 35% 12% 33% Cloud 32% Robotics 12% 21% Mobility/ wearables 6% Industrial cyber- security 9% 34% 26% 6% Collaboration and social tools Advanced process control 17% 37% Digital Technology in Forest Products Survey: Q5 Base: All respondents
  12. 12. Copyright © 2018 Accenture. All rights reserved. 12 Within the next three years organizations expect to allocate most of their digital investment into analytics, AI and advanced process control. Where will your digital investment for your organization be allocated in the next three years? Rank your top 3, where 1=Greatest investment. Big data/ analytics/ edge computing Artificial intelligence/ machine learning Advanced process control Intelligent/ smart sensors Industrial cyber-security 46% 41% 33% 29%32% Cloud 22%27% Robotics Mobility/ wearables 33%38% Collaboration and social tools 15% 11%14%17% 11%8% 8% 11% 8%Top 1 Within Top 3 Base: All respondentsDigital Technology in Forest Products Survey: Q12
  13. 13. Copyright © 2018 Accenture. All rights reserved. 13 Improved product quality/right first time and greater service differentiation are the top two benefits from the application of digital. What do you perceive to be the top benefits to your business from the application of digital technologies in your organization? Rank your top 3, where 1=Most important. Improved product quality/ right first time Greater flexibility /agility to meet customer needs (service differentiation) More effective plant management/ operations Greater collaboration with other business units/assets/ contractor/ partners (ecosystem) Reduced Energy management costs 44% 39% More effective Environment, Health & Safety (EH&S) 20% Faster processing times/ reduced lead time to market Reduced labor cost Real-time and individual process unit optimization 37% 34% 32% 27% 26% 22% Reduced risk 22% Within Top 3 14% 10%10%18% 11%8% 7% 7% 9% 9%Top 1 Base: All respondentsDigital Technology in Forest Products Survey: Q7
  14. 14. 4% 4% 4% 6% 5% 6% 7% 6% 9% 9% 11% 11% 10% 12% 12% 16% 17% 18% 19% 21% 21% 22% 23% 24% 26% 27% 28% 30% Within Top 3 Greatest barrier 14 The biggest barriers to achieving greater business value from digital are data security concerns, lack of maturity of digital technologies and internal data management capability. What are the greatest barriers your company/organization currently faces to achieving greater business value from digital in your organization? Rank your top 3, where 1=Greatest barrier. Data security concerns Lack of maturity of digital technologies Internal data management capability Lack of understanding of digital technology Lack of a clear strategy/business case Volatile commodity prices Process barriers (e.g. time to adopt new processes) Competing capital expenditure need Lack of internal skills or capacity Company/organization culture Immature foundational technology (i.e. process control) Lack of funding Lack of organizational initiative Lack of internal ownership Greatest Barrier Within Top 3 Base: All respondentsDigital Technology in Forest Products Survey: Q8 Copyright © 2018 Accenture. All rights reserved.
  15. 15. 15 More than half of organizations are NOT able to execute cybersecurity activities within their company. Which of the following cybersecurity activities can your company/organization execute? Select all that apply. 40% 40% 42% 45% 45% 46% 46%Manage financial risk due to a cybersecurity event Monitor for breaches Minimize disruption from a cybersecurity event Manage reputational risk due to a cybersecurity event Measure the impact of a breach Identify the cause of a breach Know the frequency of breaches Base: All respondentsDigital Technology in Forest Products Survey: Q20 Copyright © 2018 Accenture. All rights reserved.
  16. 16. 17% 22% 83% 78% 16 Most organizations (83%) are tracking cybersecurity breaches. While more than half (54%) have identified more than thirty attempted breaches this past year. Are you currently tracking cybersecurity breaches of your organization? Select one. In the past 12 months, approximately how many attempted cybersecurity breaches have you identified? Select one. Yes No 1% 1% 7% 13% 38% 47% 30% 14% 16% 11% 4% 7% 2% 3%2% 4% Base: All respondents Don’t know 0 1 to 30 31 to 60 61 to 90 91 to 150 151 to 270 More than 270 Base: Respondents who track cybersecurity breaches Digital Technology in Forest Products Survey: Q21, Q22 Copyright © 2018 Accenture. All rights reserved.
  17. 17. 16% 15% 33% 24% 18% 24% 11% 16% 7% 12% 1% 3% 13% 9% Minutes Hours Days Weeks Months Within a year More than a year Don’t know 17 Despite over one in three companies (39%) successfully detecting a cybersecurity breaches within hours of it taking place, more than half (55%) notes it took days, weeks, months or event years, to detect a breach. Thinking about the past year, how long, on average, did it take for a successful cybersecurity breach to be detected? Select one. 50% More than a yearWithin a yearMonthsWeeksDaysHoursMinutes Don’t know Base: All respondentsDigital Technology in Forest Products Survey: Q23 Copyright © 2018 Accenture. All rights reserved.
  18. 18. Follow us on social media Accenture Natural Resources Accenture Chemicals & Natural Resources CONNECT WITH US Copyright © 2018 Accenture. All rights reserved. 18 Visit us on Accenture.com accenture.com/naturalresources accenture.com/naturalresourcesblog

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