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Winning with the Industrial Internet of Things: How to accelerate the journey to productivity and growth

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The Industrial Internet of Things (IIoT) will bring new economic growth, reinventing sectors that account for almost two-thirds of world output. The raw technical conditions for the widespread adoption of the IIoT are highly favorable. Today, the IIoT is helping to improve productivity, reduce operating costs and enhance worker safety. As the world struggles to emerge from a phase of weak productivity growth, fragile employment and pockets of inadequate demand, the IIoT offers a chance to redefine many sectors and accelerate economic and employment growth.

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Winning with the Industrial Internet of Things: How to accelerate the journey to productivity and growth

  1. 1. Winning with the Industrial Internet of Things How to accelerate the journey to productivity and growth
  2. 2. Seizing the opportunity The Industrial Internet of Things (IIoT) will bring new economic growth, reinventing sectors that account for almost two-thirds of world output. The potential economic benefits of the IIoT may be massive, but they are by no means guaranteed. •Are companies prepared to take full advantage of this opportunity? •Are governments putting the right conditions in place to facilitate progress and capture benefits? Economic gains for US economy by 2030 Economic gains for US economy with increase in investment and enabling conditions
  3. 3. Securing economic growth The raw technical conditions for the widespread adoption of the IIoT are highly favorable. The numbers of sensors and devices on which the IIoT depends have already reached tens of billions. If the IIoT is to generate economic growth, company and country leaders need to think unconventionally as the rules of competition, production and service delivery change. IIoT could add to the global economy
  4. 4. Creating the outcome economy Today, the IIoT is helping to improve productivity, reduce operating costs and enhance worker safety. In the longer term, companies need to establish entirely new product and service hybrids that disrupt their own markets and generate fresh revenue streams. Welcome to the “outcome economy,” where organizations shift from selling products to delivering measurable outcomes.
  5. 5. The path to the outcome economy
  6. 6. How ready are companies? If companies are to move from recognizing the potential of the IIoT to taking action, they need to improve their understanding through early experimentation with hybrid products and services. There is a gap between perceived IIoT readiness and reality Only 7% have a comprehensive strategy for IIoT Business leaders say yet to make concrete progress with IIoT Business leaders say ready to create new service-based income streams from the IIoT
  7. 7. Are countries laying the right foundations? Once the technologies behind the IIoT combine with a number of broader social, economic and political enabling factors, countries can make the most of their productive and innovative potential. Accenture terms these enabling factors that explain the extent to which countries have woven the IIoT into their economic fabric as a country’s “national absorptive capacity” (NAC). Our ranking of major economies on this metric can help spur policymakers into action.
  8. 8. Ranking of countries’ enabling factors The national absorptive capacity (NAC) Index A country with a NAC score of 100 would be the top performer on each of the 55 indicators compared to the other study countries. Overall, the results show that no one country has achieved this level of NAC. In other words, every country has work to do.
  9. 9. Good news for the workforce of the future Contrary to accounts of the growing threat from intelligent machines, the IIoT will make people’s work more engaging and productive. Intelligent machines will automate mundane tasks, freeing up workers to perform more creative and collaborative work. Entirely new categories of jobs will be created and demand more flexible workplaces that will appeal to sought-after Millennials. The impact will be felt on the workforce at every level. CEOs expect long-term growth in jobs from IIoT
  10. 10. Reimagine industry models: Redesign business and operating models to accommodate and support the new product-service hybrids enabled by the IIoT. Realize the value of data: Generate new insights from physical objects and share them between players within supply chains and cross-industry consortia to create new opportunities. Prepare for the future of work: Invest in new skills and processes that enable human and digital labor to work effectively together. Implement organizational changes that support the more collaborative and autonomous working environment the IIoT will make possible. Three actions using the IIoT Three actions to take toward productivity and growth:
  11. 11. Where next? Visit the website Download the IIoT Overview
  12. 12. Contact us To learn more, contact: Paul Daugherty Chief Technology Officer, Accenture Technology Innovation & Ecosystem Groups Lead E-mail: paul.r.daugherty@accenture.com Follow him on Twitter @pauldaugh About Accenture Accenture is a global management consulting, technology services and outsourcing company, with approximately 319,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$30.0 billion for the fiscal year ended Aug. 31, 2014. Its home page is www.accenture.com. Bruno Berthon Managing Director-Accenture Strategy Digital Strategy Lead E-mail: bruno.berthon@accenture.com Follow him on Twitter @BFB61

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