Digital Technology in Forest Products Survey 2018

Key Findings
DIGITAL TECHNOLOGY
IN FOREST PRODUCTS
SURVEY 2018

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%

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%

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)

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

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

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)
Within Top 5
Within Top 3
Greatest investment

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
50%
1%

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%
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%

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?
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

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%

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

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

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
Copyright © 2018 Accenture. All rights reserved.

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?
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

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

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

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Digital Technology in Forest Products Survey 2018

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