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Industry X.0: Unlocking the Power of Digital in Plant Operations

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The Accenture 2017 Digital Technology in Chemical Plant Operations Survey 2017 shows digital technology is beginning to play a pivotal role in plant operations. Digital adoption is increasing and more firms recognize the financial and operational value. The study provides a perspective on where the industry is today and where it plans to go in the future and offers insights into how chemical companies can focus efforts on their digital journey.

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Industry X.0: Unlocking the Power of Digital in Plant Operations

  1. 1. INDUSTRYX.0 UNLOCKINGTHEPOWEROF DIGITALINPLANT OPERATIONS KEY FINDINGS Copyright © 2018 Accenture. All rights reserved.
  2. 2. Count % C-Level 106 29% Senior Vice President 63 18% Vice President 77 21% General Manager or Director 90 25% Commercial/Business Manager 24 7% Total 360 100% Count % Asset or operations lead 125 35% Business lead 139 39% Function lead 96 27% Total 360 100% Count % Canada 30 8% France 30 8% Germany 30 8% Japan 30 8% Netherlands 30 8% Saudi Arabia 30 8% Singapore 30 8% Switzerland 30 8% Turkey 30 8% United Arab Emirates 30 8% United Kingdom 30 8% United States 30 8% Total 360 100% Count % Canada 27 8% France 34 9% Germany 29 8% Japan 28 8% Netherlands 27 8% Saudi Arabia 27 8% Singapore 28 8% Switzerland 28 8% Turkey 28 8% United Arab Emirates 29 8% United Kingdom 30 8% United States 45 13% Total 360 100% SAMPLE COMPOSITION & METHODOLOGY [PART I OF II] Accenture conducted an online survey of 360 C-level C-level and top management executives and functional leaders in the chemicals industry. The survey focus was on chemical companies that are currently leveraging digital technology in their core operations. The survey was fielded in mid-March through mid-April 2017 and included respondents from Canada, France, Germany, Japan, Netherlands, Saudi Arabia, Singapore, Switzerland, Turkey, the UAE, UK and US. The companies represented have total annual revenue ranging from US$500 million to more than US$20 billion. ORGANIZATION HEADQUARTERS: RESPONDENT LOCATION: RESPONDENT TITLE: RESPONDENT ROLE: 2Copyright © 2018 Accenture. All rights reserved.
  3. 3. Count % Basic & intermediate chemicals 132 37% Fertilizers, pesticides and/or seeds 117 33% Industrial gases 113 31% Petrochemicals 145 40% Plastics & fibers 117 33% Paints & coatings 105 29% Other basic inorganic chemical manufacturing 20 6% Total 360 100% Count % Capital Projects 29 8% Information Technology (IT) 84 23% Engineering/Research & Development 48 13% Environment, Health & Safety (EH&S) 18 5% Maintenance 14 4% Material Management/Supply Chain 41 11% Planning & Scheduling 35 10% Production Execution 43 12% Quality Management 18 5% Supply Chain 30 8% Total 360 100% Count % $500M - $1B 35 10% $1 - $5B 201 56% $5B - $10B 90 25% $10B - $20B 23 6% Greater than $20B 11 3% Total 360 100% SAMPLE COMPOSITION & METHODOLOGY [PART II OF II] COMMODITIES PRIMARILY OPERATED IN: AREA WITHIN ORGANIZATION: Operations GLOBAL REVENUE: 3Copyright © 2018 Accenture. All rights reserved.
  4. 4. 13% 13% 10% 12% 19% 33% 20% 13% 11% 14% 24% 18%15% 17% 17% 24% 14% 14% 14% 22% 18% 18% 14% 13%15% 16% 26% 17% 15% 13% 23% 19% 18% 15% 14% 9% 4 23% OF CHEMICAL COMPANIES ARE PRIORITIZING PLANNING &SCHEDULING OPERATIONS AS THEIR #1 INVESTMENT; OVER 50% ARE PRIORITIZING INVESTMENTS IN PRODUCTION EXECUTION AND SUPPLY CHAIN. In what area of chemical production/operations are you making investments in digital technology? Rank in order of greatest investments to least investments. SIXTH INVESTMENT FIFTH INVESTMENT FOURTH INVESTMENT THIRD INVESTMENT SECOND INVESTMENT TOP INVESTMENT 50% Planning & Scheduling Production Execution Material Management/ Supply Chain Quality Management Environment, Health & Safety (EH&S) Maintenance Digital Chemical Plant Survey: Q1 Base: All respondents Copyright © 2018 Accenture. All rights reserved.
  5. 5. 5 ARTIFICIAL INTELLIGENCE AND BIG DATA ARE AMONG THE MOST STRATEGIC ACROSS MANY OPERATIONS. Which of the following digital technologies are most strategically important to your chemicals production/manufacturing operations? Select all that apply. Advanced Process Control Artificial intelligence/ Machine learning Big Data/ Analytics/ Edge Computing Cloud Collaboration and social tools Industrial cybersecurity Intelligent/ Smart sensors Mobility/ Wearables Robotics Environment, Health & Safety (EH&S) 23% 24% 24% 26% 30% 24% 24% 28% 19% Maintenance 26% 30% 26% 24% 29% 27% 26% 22% 26% Material Management/ Supply Chain 24% 30% 27% 28% 23% 26% 28% 29% 20% Planning & Scheduling 29% 22% 30% 28% 26% 25% 26% 21% 21% Production Execution 26% 31% 29% 23% 24% 23% 26% 18% 31% Quality Management 30% 28% 33% 29% 22% 26% 29% 23% 23% Not Applicable 1% 1% 1% 2% 2% 1% 2% 3% 8% Digital Chemical Plant Survey: Q3 Base: All respondents Copyright © 2018 Accenture. All rights reserved.
  6. 6. 1% 4% 1% 2% 2% 2% 1% 1% 1% 11% 15% 10% 11% 8% 10% 5% 11% 11% 30% 20% 29% 27% 29% 28% 27% 26% 32% 29% 33% 33% 34% 34% 35% 43% 39% 35% 29% 28% 27% 27% 26% 25% 24% 23% 22% 6 BIG DATA HAS BEEN BROADLY DEPLOYED BY ONE IN FOUR ORGANIZATIONS AND CURRENTLY IN PILOT PHASE FOR 43%. Please indicate your organization’s current status regarding the deployment of the following digital technologies in your production/manufacturing operations? Select one. Widespread adoption within our production/ manufacturing operations Have begun pilot programs in part of our production/ manufacturing operations Technology strategy has been defined/being developed Currently no plan to employ within next 3 years Not applicable/relevant to our business 50% Cloud Robotics Artificial Intelligence/ Machine learning Mobility/ Wearables Industrial cybersecurity Collaboration and social tools Big Data/ Analytics/ Edge Computing Intelligent/ Smart sensors Advanced Process Control Digital Chemical Plant Survey: Q4 Base: All respondents Copyright © 2018 Accenture. All rights reserved.
  7. 7. 7 Please rank the top three digital technologies that you think hold the most potential for your overall company ROI (Return on Investment) in the next 12 months. 6% 10% 9% 11% 9% 9% 13% 17% 18% 21% 23% 27% 29% 34% 34% 38% 42% 51% Robotics Mobility/Wearables Collaboration and social tools Industrial cybersecurity Advanced Process Control Intelligent/Smart sensors Cloud Artificial intelligence/Machine learning Big Data/Analytics/Edge Computing Top technologyWithin Top 3 HALFOF CHEMICALS EXECUTIVES RANKED BIG DATA/ANALYTICS/EDGE COMPUTING AMONG THEIR TOP THREE TECHNOLOGIES THAT HOLD MOST POTENTIAL FOR OVERALL ROI. JUST OVER Digital Chemical Plant Survey: Q5 Base: All respondents Copyright © 2018 Accenture. All rights reserved.
  8. 8. 8 OF THE 51% OF EXECUTIVES WHO INDICATED BIG DATA/ANALYTICS/EDGE COMPUTING AS THE TECHNOLOGY WITH HIGHER ROI GENERATING POTENTIAL, ONE IN THREE (36%) WILL ALLOCATE BETWEEN 21% AND 40% OF THEIR DIGITAL BUDGET TO THIS TECHNOLOGY WITHIN THE NEXT YEAR. What proportion of your digital budget will you allocate to these technologies in the next 12 months? Big Data/ Analytics/Edge Computing Robotics Artificial Intelligence/ Machine learning Mobility/ Wearables Industrial cybersecurity Collaboration and social tools Intelligent/ Smart sensors Advanced Process Controls Cloud 0 1-20 21-40 41-60 61+ 79% 5% 15% 1% 77% 4% 16% 2% 73% 7% 18% 2% 71% 6% 20% 4% 66% 4% 26% 3% 66% 6% 25% 3% 62% 5% 26% 6% 1% 58% 7% 31% 4% 49% 9% 36% 6% Digital Chemical Plant Survey: Q6 Base: All respondentsCopyright © 2018 Accenture. All rights reserved.
  9. 9. More effective plant management Improved product quality/right first time Real-time chemical complex and individual process unit optimization (i.e., material yield increase) Faster processing times/reduced lead time to market Reduction in unscheduled downtime/production loss Reduced operational risk More efficient maintenance planning and execution Greater flexibility/agility in operations to meet customer needs (service differentiation) More effective Environment, Health & Safety (EH&S) More efficient turnarounds/shutdowns Reduced energy management costs Greater collaboration with other business units/assets/ contractor/partners (ecosystem) Reduced labor cost Reduced work in progress (WIP) inventory Fewer turnarounds/shut downs (less capital expended) 4% 6% 5% 6% 6% 4% 7% 8% 8% 6% 6% 10% 7% 7% 11% 14% 16% 17% 17% 18% 18% 20% 20% 21% 21% 21% 22% 23% 26% 27% 9 MORE EFFECTIVE PLANT MANAGEMENT AND IMPROVED PRODUCT QUALITY/ RIGHT FIRST TIME ARE AMONG THE MOST SIGNIFICANT BENEFITS OF DIGITAL FOR ONE IN FOUR CHEMICAL COMPANIES. What do you perceive to be the top benefits to your business from the application of digital technologies in your chemicals production/ manufacturing operations? Select three, with “1” signifying the most important. Most importantWithin Top 3 Digital Chemical Plant Survey: Q7 Base: All respondents Copyright © 2018 Accenture. All rights reserved.
  10. 10. ALMOST ALL (95%) OF COMPANIES HAVE BEEN ABLE TO DETERMINE THEIR FINANCIAL VALUE FROM USING DIGITAL IN THEIR OPERATIONS. OF THESE, 55% HAVE GAINED BETWEEN 5% AND 20% INCREASES IN OPERATING PROFIT IMPROVEMENTS. Has your company been able to determine the financial value of utilizing digital technologies in your manufacturing/production operations? Select one. What level of operating profit improvement have you determined to be associated with using digital technologies in your production/manufacturing operations? Select one. 4%BETWEEN 40% AND 50% INCREASE 31%BETWEEN 10% AND 20% INCREASE 14%BETWEEN 20% AND 30% INCREASE 6%BETWEEN 30% AND 40% INCREASE 2%BETWEEN 50% AND 60% INCREASE YES 95% NO 5% 24%BETWEEN 5% AND 10% INCREASE 16%BETWEEN 2% AND 5% INCREASE 5%BETWEEN 0.5% AND 2% INCREASE 13Digital Chemical Plant Survey: Q10,Q11 Base: All respondents Copyright © 2018 Accenture. All rights reserved.
  11. 11. 11 MOST COMPANIES (92%) ARE SATISFIED WITH THE OUTCOMES OF THEIR DIGITAL INVESTMENT. ONE IN THREE ARE EXTREMELY SATISFIED, HAVING REALIZED MOST OR ALL OF THEIR EXPECTED BENEFITS. How satisfied is your organization with the outcome of your digital investment in your production/ manufacturing operations over the past year? Select the response that most closely matches your situation. 92% 37%My organization is EXTREMELY SATISFIED with the benefits attained from investment in digital; MOST OR ALL of our expected benefits were derived 55%My organization is RELATIVELY SATISFIED with the benefits attained from investment in digital; SOME of our expected benefits were derived 8%My organization is NOT SATISFIED with the benefits attained from investment in digital; HARDLY ANY of our expected benefits were derived Digital Chemical Plant Survey: Q13 Base: All respondents Copyright © 2018 Accenture. All rights reserved.
  12. 12. 12 6% 10% 8% 8% 13% 12% 10% 16% 17% 24% 26% 28% 29% 33% 36% 37% 40% 46% Mobility/Wearables Robotics Collaboration and social tools Industrial cybersecurity Intelligent/Smart sensors Cloud Advanced Process Control Artificial intelligence/machine learning Big Data/Analytics/Edge Computing Where will your digital investment for your production/manufacturing operations be allocated in the next three years? Select three, with “1” signifying the most investment. Top technologyWithin Top 3 HALF(46%) of chemical companies plan to allocate most of their digital investment in big data/ analytics/edge computing within the next three years. Just under Digital Chemical Plant Survey: Q15 Base: All respondents Copyright © 2018 Accenture. All rights reserved.
  13. 13. 9% 12% 15% 10% 13% 12% 16% 14% 33% 34% 35% 36% 37% 39% 42% 44% 13 Which of these would you consider the greatest cybersecurity risks to your production/ manufacturing operations? Rank your top 3, where 1 = Greatest Risk. Operational reliability Commercial consequences (production loss, breach of contracts i.e. customer supply, etc.) Loss of intellectual property Customer information Reputational damage Environment, Health & Safety (EH&S) Loss of dataRegulatory infractions Top riskWithin Top 3 Digital Chemical Plant Survey: Q25 Base: All respondents Copyright © 2018 Accenture. All rights reserved.
  14. 14. 8% 10% 11% 12% 13% 16% 17% 13% 34% 34% 35% 35% 38% 39% 41% 44%Asset management/Identification Incident management i.e. tracking and response Strategy and governance (IT/OT alignment) Risk assessments Workforce development/Training Managed services/Outsourced security support Asset hardening and remediation Anomaly detection/Analytics 14 Which of these investments in industrial cybersecurity would you consider most valuable in securing your production/manufacturing operations? Rank three, where 1 = Most Valuable. Asset management/ identification and incident management are considered by over 40%of executives to be among the most valuable cybersecurity investments for securing production/ manufacturing operations. Top choiceWithin Top 3 Digital Chemical Plant Survey: Q26 Base: All respondents Copyright © 2018 Accenture. All rights reserved.
  15. 15. 33% 36% 36% 39% 40% 15 Which of the following cybersecurity activities can your organization execute? Select all that apply. 42% MANAGE FINANCIAL RISK DUE TO A CYBERSECURITY EVENT 42% MINIMIZE DISRUPTION FROM A CYBERSECURITY EVENT Manage reputational risk due to a cybersecurity event Identify the cause of a breach Measure the impact of the a breach Know the frequency of breaches Monitor for breaches OVER 40% of chemical companies are able to manage their financial risk and minimize disruptions resulting from cyber security incidents. Fewer (33%) are able to monitor breaches. Digital Chemical Plant Survey: Q27 Base: All respondents Copyright © 2018 Accenture. All rights reserved.
  16. 16. 1% 25% 46% 19% 6% 2% 46% 38% 13% 3% 6% 44% 31% 11% 8% 70% YES 30% NO 16 In the past 12 months, approximately how many attempted industrial cybersecurity breaches have you identified? Select one. Of the attempted industrial cybersecurity breaches you identified in the past 12 months, how many were successful? Select one. Thinking about the past year, how long, on average, did it take for a successful industrial cybersecurity breach to be detected? Select one. Base: Organizations who are tracking cybersecurity breaches, excluding “Don’t know/Unsure” responses (n=248). ARE YOU CURRENTLY TRACKING CYBERSECURITY BREACHES OF YOUR PRODUCTION / MANUFACTURING OPERATIONS (I.E. INDUSTRIAL CYBERSECURITY BREACHES)? SELECT ONE. Don’t know/ unsure Base: Organizations who are tracking cybersecurity breaches (n=251). 31 to 60 0 to 30 61 to 90 91 to 150 151 to 270 0 to 30 61 to 90 31 to 60 91 to 270 Minutes DaysHours Weeks Months 50% Digital Chemical Plant Survey: Q28, Q29, Q30, Q31 Base: All respondents 54%73% Copyright © 2018 Accenture. All rights reserved.
  17. 17. CONNECT WITH US Visit us on Accenture.com accenture.com/chemicals | accenture.com/chemicalsblog Follow us on social media @AccentureChems Accenture Chemicals Accenture Chemicals & Natural Resources Copyright © 2018 Accenture. All rights reserved. 17

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