smarter investments, outstanding results: resources industries digital transformation research
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RESOURCES INDUSTRIES DIGITAL TRANSFORMATION RESEARCH
Copyright © 2017 Accenture All rights reserved. | 2
INTRODUCTION
The transformational value digital technologies offer to businesses is currently underexploited. This is a missed opportunity – and the leading businesses of the future are those that have – or will have - fully integrated digital strategies. The technology C-Suite has valuable skill sets to bring to bear to help bring together the disparate components and provide the direction needed to deliver successful technology transformations leading to cohesive organization-wide digital strategies.
To better understand the key change agents for Resources industries in this context more than 200 senior technology leaders including CIOs, CDOs and CTOs from chemicals, energy, metals, mining and utilities industries participated in our global Digital Transformation survey*.
The key findings from the research are shared in this presentation and provide valuable insights into current and future transformational technology trends and plans.
*This research primarily focused on companies with turnovers of US$5 billion or more. However, in order to ensure a minimum of 50 interviews with companies in the Chemicals sector a small number of interviews were conducted with companies with turnover between US$2.5 billion to US$5 billion. For the purpose of this research “resources industries” were defined as Chemicals, Energy, Metals, Mining and Utilities.
Copyright © 2017 Accenture All rights reserved. | 3
BACKGROUND TO THE RESEARCHRespondents:Questionnaire-led online survey with +200 senior technology executives including CIOs, CDOs and CTOs from chemicals, energy, metals, mining and utility companies from 19 countriesFieldwork: Between August and September 2016
Chemicals26%
Energy38%
Utilities27%
Metals and/or Mining
9%United States
Latin America: Brazil, Mexico
Russia
Middle East: UAE
Europe: Denmark, France, Germany, Ireland, Norway, Spain, Sweden, Switzerland, United Kingdom
Asia-Pacific: Australia China, India, Japan, Singapore
CIO55%CTO
20%
IT Director19%
CDO5%
Other C-Suite1%
Note: the base size for Metals/mining companies is low (n=18), so findings should be interpreted as indicative only.
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INVESTMENTS IN DIGITAL TECHNOLOGIES ACROSS RESOURCES INDUSTRIES ARE GROWING
80%
82%of executives say that the size of their investments in digital technologies has increased in the past two yearsReal-time integration has been adopted by 47%* companies
believe digital technologies will have a positive impact on their company over the next five years
EnergyChemicals Utilities Metals/mining**
85% 83% 73% 89%
81% 82% 75% 89%
* This was the highest of 9 IT capabilities and processes measured ** Note that the base size for Metals/mining companies is low (n=18), so findings should be interpreted as indicative only.Base: All respondents
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THE TOP FIVE MOST PROMISING DIGITAL TECHNOLOGIES ALSO MIRROR THE TOP FIVE CAPABILITIES MOST IN NEED OF IMPROVEMENT
Digital technologies offering most potential for business transformation over the next five years (Top five)
Digital capabilities most in need of improvement (Top five; % of respondents indicating fair amount/ a lot of improvement needed)
7%
27% 31% 31% 33% 37% 39% 40% 42%
36%36%
34% 33% 34%
Base: All respondents
Copyright © 2017 Accenture All rights reserved. | 6
TECHNOLOGIES ADDING MOST VALUE IN EACH INDUSTRY DIFFER AND ALL ARE EXPECTED TO SHIFT OVER THE NEXT FIVE YEARSWhich technologies are adding / expected to add most value today / over the next five years? (Top two today / future shown only)
Cloud
Cybersecurity
Interactivity
Mobility
Chemicals
Analytics
Cloud
Cybersecurity
0% 5% 10% 15% 20% 25% 30% 35% 40%
Energy
FutureToday
1 Today
1 Future
1 Today
1 Future
Cloud
Cybersecurity
Interactivity
Mobility
0% 5% 10% 15% 20% 25% 30% 35% 40%
Metals/Mining
1 Future
1 Future
1 Today
1 Today
1 Future
Base: All respondents (204)*Note that the base size for Metals/mining companies is low (n=18), so findings should be interpreted as indicative only.
Artificial Intelligence
Analytics
Interactivity
Utilities
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AS THE MARKET COMPLEXITY RISES, EXISTING SKILLS APPEAR TO BE STRETCHED FOR DIGITAL TRANSFORMATION Market complexity has increased over the past two years across a wide range of areasSecurity is the top concern for Chemicals (79%), Energy (70%) and Utilities (57%)
Data Landscape
IT delivery model as a service
IT/OT convergence and integration
Technology Landscape
Security Landscape
60%
61%
65%
67%
69%
Percentage reporting an increase in complexity
Base: All respondents
89%
81%
of executives believe they do not have access to all the right skills within their organization for an effective digital transformation
of executives believe their company is not making the investments in recruitment and training it needs
Copyright © 2017 Accenture All rights reserved. | 8
CTOS HAVE THE GREATEST RESPONSIBILITY FOR IDENTIFYING NEW DIGITAL TRANSFORMATION OPPORTUNITIESWho within your company is responsible for identifying new digital transformation opportunities within the back office/enterprise functions? (Multi response)
Base: All respondents
Chief Marketing Officer (CMO)
Chief Data Officer
Chief Security Officer
Chief Digital Officer (CDO)
Other C-suite
Chief Information Officer (CIO)
Chief Technology Officer (CTO)
11%
13%
23%
26%
26%
40%
62%
75% of CTOs cite themselves as responsible – along with the majority of Heads of IT
100% of CIOs cite themselves as responsible
CDOs are most likely to cite themselves
Copyright © 2017 Accenture All rights reserved. | 9
A WIDE RANGE OF ORGANIZATIONAL CHANGES ARE NEEDED TO ACHIEVE DIGITAL TRANSFORMATION OBJECTIVESOrganizational changes that would help most in achieving digital transformation objectives
Base: All respondents*Note that the base size for Metals/mining companies is low (n=18), so findings should be interpreted as indicative only.
Chemicals Energy UtilitiesMetals/ mining*
28% 21% 21% 17%
21% 26% 18% 11%
17% 17% 27% 22%
17% 21% 13% 33%
17% 14% 20% 17%Ability and willingness to redesign business processes to leverage digital technologies
Better alignment of business planning and technology planning
Better technology awareness among senior executives
Better governance of technology investments
New approaches to evaluate the benefits of digital technology investments
17%
19%
20%
21%
23%
Copyright © 2017 Accenture All rights reserved. | 10
IOT* IS CONSIDERED A KEY LEVER OF DIGITAL TRANSFORMATION THAT WILL BENEFIT A WIDE RANGE OF BUSINESS AREAS Business areas that IoT will add most value to in the next 2 years
91% of executives consider IoT as a major lever of digital transformation
Command centers
Asset monitoring
Innovation and product development/improvement
Operations
Sales and marketing functions
IoT based customer services
Supply chain
36%
41%
44%
45%
47%
48%
50%
Base: All respondents *Internet of Things
Copyright © 2017 Accenture All rights reserved. | 11
YET, MANY BARRIERS TO INTRODUCE IOT IN THE ORGANIZATION EXIST AND VARY BY INDUSTRY
Main barriers to introduce IoT in the organization
Base: All respondents*Note that the base size for Metals/mining companies is low (n=18), so findings should be interpreted as indicative only.
Chemicals Energy Utilities Metals/mining*
42% 41% 45% 39%
44% 36% 40% 56%
34% 42% 42% 39%
46% 35% 40% 33%
34% 41% 40% 44%
26% 43% 36% 39%
34% 41% 34% 33%
38% 36% 40% 22%
40% 31% 38% 28%Process barriers (time to adopt new processes)
Technology availability and maturity
Industry standards
Cybersecurity threats
Lack of skills
Cultural barriers and organizational silos
Lack of a clear strategy/business case
Lack of internal ownership
Cost
35%
36%
36%
36%
39%
39%
39%
41%
42%
Copyright © 2017 Accenture All rights reserved. | 12
COST AND BUSINESS CASE IDENTIFIED AS THE PRIMARY BARRIERS TO NEW TECHNOLOGIES ADOPTION FOR MOST INDUSTRIESMain barriers to new digital technologies adoption
Base: All respondents*Note that the base size for Metals/mining companies is low (n=18), so findings should be interpreted as indicative only.
Chemicals Energy Utilities Metals/mining*
47% 42% 36% 56%
43% 42% 39% 33%
32% 39% 36% 39%
38% 30% 45% 28%
45% 29% 32% 39%
26% 36% 39% 22%
38% 26% 43% 17%
43% 29% 27% 39%
32% 35% 30% 28%Process barriers (time to adopt new processes)
Technology availability and maturity
Deployment complexity
Awareness of technology relevance
Lack of skills
Lack of internal ownership
Cultural barriers and organizational silos
Cybersecurity threats
Lack of a clear strategy/business case
Cost
32%
32%
33%
33%
33%
35%
36%
36%
41%
43%
Copyright © 2017 Accenture All rights reserved. | 13
CYBERSECURITY THREATS AND REGULATORY-RELATED RISK ARE AREAS OF CONCERN
Technology risk current areas of concern
Base: All respondents*Note that the base size for Metals/mining companies is low (n=18), so findings should be interpreted as indicative only.
Chemicals Energy Utilities Metals/mining*
19% 25% 14% 22%
11% 22% 18% 17%
23% 10% 16% 11%
19% 14% 18% -
8% 12% 9% 22%
11% 8% 14% 11%
9% 9% 9% 17%Reputational risks
Physical security threats
Health and safety risk
Environmental risk
Lagging behind competitors in digital/technology capabilities
Regulatory risk
Cybersecurity threats
10%
11%
11%
15%
15%
18%
20%
Copyright © 2017 Accenture All rights reserved. | 14
PROCESS EFFICIENCY AND COST CONTROL ARE THE PRIMARY OBJECTIVES OF DIGITAL TECHNOLOGIES DEPLOYMENTPrimary objectives for digital technologies
Base: All respondents*Note that the base size for Metals/mining companies is low (n=18), so findings should be interpreted as indicative only.
Chemicals Energy Utilities Metals/mining*
28% 25% 20% 33%
21% 26% 14% 50%
25% 21% 14% 11%
21% 16% 23% 6%
4% 12% 29% -Regulation compliance e.g., health, safety and environment
New product/service development
Customer satisfaction
Cost control
Process efficiency
13%
18%
19%
24%
25%
Copyright © 2017 Accenture All rights reserved. | 15
WHO DO WE CONTACT FOR MORE INFORMATION ABOUT THE SURVEY?
Phillip Hazen Group Technology Officer, Resources IndustriesManaging Directorphillip.hazen@accenture.com
For more information visit: accenture.com
Follow us: @AccentureChems Chemicals LinkedIn Showcase @AccentureEnergy Energy LinkedIn Showcase@Accenture_Util Utilities LinkedIn Showcase @AccentureMining @AccentureDigi
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