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Accenture Industrial Equipment: The Race to Reinvent

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.

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Accenture Industrial Equipment: The Race to Reinvent

  1. 1. DRIVENBYDIGITAL. CREATEDBYCUSTOMERS. INDUSTRIAL EQUIPMENT THERACE TOREINVENT
  2. 2. WHAT’S DRIVING CHANGEIN INDUSTRIAL EQUIPMENT? Copyright © 2018 Accenture. All rights reserved.
  3. 3. 3 Shifting to new business models creates opportunities to escape commoditization. TREND1 NEWBUSINESS MODELS Copyright © 2018 Accenture. 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. 4 TREND2 OUTSIDE-IN INNOVATION Copyright © 2018 Accenture. 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. 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 Copyright © 2018 Accenture. All rights reserved.
  6. 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 Copyright © 2018 Accenture. All rights reserved.
  7. 7. 7 TREND5 NEWOPERATING MODELS Copyright © 2018 Accenture. All rights reserved. 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. 8. THREEWAYSTO SUCCEEDINTHE NEW Copyright © 2018 Accenture. All rights reserved.
  9. 9. REINVENT PRODUCTS RESHAPE BUSINESS MODELS REDEFINE CUSTOMER EXPERIENCE 1 2 3 Copyright © 2018 Accenture. All rights reserved.
  10. 10. Create intelligent, adaptive “living” products, services and platforms REINVENT PRODUCTS 1 Copyright © 2018 Accenture. All rights reserved. 10
  11. 11. Build agile business models to fuel growth RESHAPE BUSINESS MODELS 2 Copyright © 2018 Accenture. All rights reserved.
  12. 12. Understand the “why behind the buy” to drive and sustain customer loyalty REDEFINE CUSTOMER EXPERIENCE 3 Copyright © 2018 Accenture. All rights reserved.
  13. 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

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