The digital universe is expanding and for Industrial Equipment companies, creating value with digital isn’t just a simple game of mixing and matching digital technologies. Companies also need to reinvent their operating models, production and value chains, becoming what we call Industry X.0 businesses.

1. DRIVENBYDIGITAL.
CREATEDBYCUSTOMERS.
INDUSTRIAL EQUIPMENT
THERACE
TOREINVENT

2. WHAT’S
DRIVING
CHANGEIN INDUSTRIAL
EQUIPMENT?
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3. 3
Shifting to new business models creates
opportunities to escape commoditization.
TREND1
NEWBUSINESS
MODELS
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All rights reserved.
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

4. 4
TREND2
OUTSIDE-IN
INNOVATION
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All rights reserved.
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.

5. 5
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.
TREND3DATA-
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.

6. 6
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
InternalFocus
Partial
Digitization
Digital
Customer
Digital
Enterprise
Digital
Business
New Business
Models
Disrupt
(Sub-)Market(s)
Accenture 2020 Digital Outlook
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All rights reserved.

7. 7
TREND5
NEWOPERATING
MODELS
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FROM TRADITIONAL VERTICAL
SILO MODELS
• Organized end-to-end by product line /
business group
• Lack of cost synergies and shared
resources
• Limitations,e.g. skills sourcing, that
constrainrapid developmentof new
digitalbusinesses
TO FLUID, BALANCED
MATRIX MODELS
• Flexibilityfor smaller product lines
• Leverage horizontalcapabilities,e.g.
global business services, digital
manufacturing, etc.
• Increase efficiencies and synergies while
developing
new businesses fast

8. THREEWAYSTO
SUCCEEDINTHE
NEW
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9. REINVENT
PRODUCTS
RESHAPE
BUSINESS
MODELS
REDEFINE
CUSTOMER
EXPERIENCE
1 2 3
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10. Create intelligent, adaptive
“living” products, services and
platforms
REINVENT
PRODUCTS
1
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11. Build agile business models to
fuel growth
RESHAPE
BUSINESS
MODELS
2
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12. Understand the “why behind the
buy” to drive and sustain
customer loyalty
REDEFINE
CUSTOMER
EXPERIENCE
3
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13. TOMORROW’S CHAMPIONS
13Copyright © 2018 Accenture. All rights reserved.
Business
Outcomes
Time
Transformthe Core
DigitalizeEngineering,
Manufacturing
& Service
NewBusiness Models
& Revenue Streams
Digital unlocking of
trapped valuein the
enterprise
New Flexibility &
Efficiency
Innovation driven
growth
CORE
TO NEW
TRANSFORM
PRODUCTS
Legacy Product
Installed base Pivot 1
Smart, connectedproducts
Pivot 2
• Smart services
• Newservicesand new experiences
Ecosystem, platforms,
experience
Outcome based economy
Wise pivot