The document discusses trends driving change in the industrial equipment industry. It identifies five key trends: 1) New business models focused on connected products, services, and platforms. 2) Outside-in innovation by leveraging incubators and acquisitions. 3) Data-driven customer experiences to create insights and improve customer journeys. 4) Digitization of enterprise processes and customer experiences to increase efficiency and revenue. 5) Adoption of fluid matrix organizational models to increase synergies across capabilities and develop new digital businesses. To navigate these changes, companies must continuously pivot and take four steps - transform the core business, grow the core business, scale new businesses, and pivot wisely over time rather than all at once. The focus should be

1. WHAT’S
DRIVING
CHANGEININDUSTRIAL
EQUIPMENT?
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2. 2
Shifting to new business models creates
opportunities to escape commoditization.
TREND1
NEW
BUSINESS
MODELS
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Connected
products, services
& solutions.
Software &
embedded
intelligence.
Platforms to
leverage
ecosystem(s).
Profound
shift from
traditional
products
and
business
models.
New
opportunities
to reinvent,
differentiate
and drive
growth.
TO CREATES

3. 3
TREND2
OUTSIDE-IN
INNOVATION
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To drive innovation in recent years, many industrial
companies have increasingly been developing
innovation incubators and investing in major
acquisitions.
But while incubators and business units are working
ever more closely, there is scope to leverage
incubators to strengthen impact.
Incubators must be truly integrated with company
culture, workforce and operations to maximize
innovation impact.

4. 4
Harness the power of
data to reinvent,
centered around the
customer.
Use analytics and
applied intelligence
to create new insights
that drive value by
improving the
customer
experience.
TREND3
DATA-
DRIVEN
CUSTOMER
EXPERIENCE
REINVENT
THE CUSTOMER
RELATIONSHIP
e.g. lead management,
sales campaigns
REINVENT
WAYS OF
WORKING
e.g. collaboration
on product and
service design
REINVENT
THE CUSTOMER
JOURNEY
e.g. connected services,
personalization
DATA-
DRIVEN
CUSTOMER
INSIGHTS
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All rights reserved.

5. 5
Digitization could
enable a typical
industrial
equipment
manufacturer with
an industry
average $28B in
revenue and
$3.3B in EBITDA
to add up to
~$1.38B EBITDA
by 2020.
TREND4
DIGITIZE
ENTERPRISE
PROCESSES
+602
+282
in m$
+495
3300
Digitize
Customer
Experience
Digitize
Operations
ExternalFocus
Internal Focus
Partial
Digitization
Digital
Customer
Digital
Enterprise
Digital
Business
New Business
Models
Disrupt
(Sub-)Market(s)
Accenture 2020 Digital Outlook
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6. 6
TREND5
NEW
OPERATING
MODELS
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FROM TRADITIONAL
VERTICALSILO MODELS
• Organized end-to-end by
product line / business group
• Lack of cost synergies and
shared resources
• Limitations, e.g. skills sourcing,
that constrain rapid
development of new digital
businesses
TO FLUID, BALANCED
MATRIXMODELS
• Flexibility for smaller product
lines
• Leverage horizontal capabilities,
e.g. global business services,
digital manufacturing, etc.
• Increase efficiencies and
synergies while developing
new businesses fast

7. TONAVIGATE
TOTHENEW,
TAKE4STEPS
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8. COMPANIESMUST
CONTINUOUSLYPIVOT
TOTHENEWNOW
1. TRANSFORM
YOUR CORE
BUSINESS
2. GROW
YOUR CORE
BUSINESS
3. SCALE
YOUR NEW
BUSINESS
4. RATHER
THAN JUMP,
PIVOT WISELY
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9. 1.TRANSFORMYOUR
COREBUSINESS
CRITICAL ACTIVITIES
• Strategic cost reduction
• Zero-based budgeting
• Intelligent automation
• Strategic exit of select businesses
To drive investment capacity
• Movement of infrastructure and
platforms to hybrid cloud solutions
• Organisation design innovation
and restructuring
• Workforce efficiency
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10. Copyright © 2018 Accenture. All rights reserved. 10
CRITICAL ACTIVITIES
• Analytics-driven customer acquisition
• Reinvention as a “living business”
• Monetization of underutilized assets
• Investing in digital literacy
(e.g., crowd sourcing, gig economy)
2.GROWTHECOREBUSINESSTO
SUSTAINTHEFUELFORGROWTH
• Launching software and analytics
based services
• Building strategic partnerships

11. 3.SCALETHENEW
&EXPANDYOURHORIZONS
To be responsive to obsolescence of old businesses
CRITICAL ACTIVITIES
• Building an innovation architecture
into the business
• Testing feasibility of
new commercial models
(e.g., as-a-service consumption)
• Selectively investing in start-ups/
emerging technologies early
• Developing venturing portfolio
(e.g., with technology leaders
and disruptors)
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12. Copyright © 2018 Accenture. All rights reserved. 12
4.ROTATIONTOTHENEWISA
DELIBERATEANDPERPETUALJOURNEY,
NOTASINGLEEVENT
PIVOT WISELY
To get the timing, scale and
direction of investments right
1. TRANSFORM YOUR CORE BUSINESS
2. GROW YOUR CORE BUSINESS
3. SCALE YOUR NEW BUSINESS
4. PIVOT WISELY

13. TOTHEN
SUCCEED
INTHENEW,
FOCUSON
3KEYAREAS
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14. REINVENT
PRODUCTS
RESHAPE
BUSINESS
MODELS
REDEFINE
CUSTOMER
EXPERIENCE
1 2 3
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15. Create intelligent, adaptive
“living” products, services
and platforms
REINVENT
PRODUCTS
1
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16. Build agile business
models to fuel growth
RESHAPE
BUSINESS
MODELS
2
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17. Understand the “why behind
the buy” to drive and sustain
customer loyalty
REDEFINE
CUSTOMER
EXPERIENCE
3
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