03 probst day 2_ecc 2012

What are today’s mega-trends in industrial transformation and how to spot them

Vienna, 19 April 2012 Laurent Probst Erica Monfardini Laurent Frideres

www.pwc.com

PwC

Case study: Maritime and renewable energies (1/3) The emergence of a new technology


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1990s

In a climate of increasing awareness of the global need for research and development in renewable energy, research begins on marine turbines to generate renewable energy from tidal streams OpenHydro is formed after negotiation of world rights to the Open-Centre technology • Design and manufacture of turbines for

deployment in tidal farms throughout the world's oceans

• Sale of turbines with turnkey installation and maintenance services providing developers with an end to end solution

Testing of the Open-Centre Turbine begins at the European Marine Energy Centre (EMEC) in Orkney, Scotland

2005

2006

PwC

Case study: Maritime and renewable energies (2/3) DCNS and the Port of Cherbourg

DCNS is a naval defence company based in France and one of Europe’s leading shipbuilders, a company involved in both traditional and new activities The Port of Cherbourg, highly dependent on the naval defence industry and the construction of nuclear submarines, enters a crisis after the end of the Cold War 1700 jobs are lost at the shipyard of Cherbourg

The reconversion of the port and the shipyard presents an ongoing challenge Attempts are made to identify new opportunities for the port and to diversify the local economy


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1700s

1900s

1990s

2000s

1996

//upload.wikimedia.org/wikipedia/commons/2/2b/Le_Redoutable.JPG

PwC

Case study: Maritime and renewable energies (3/3) Development of a new industrial segment


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2011

2012

2018

DCNS acquires Sirehna, a specialist engineering company focused on the creation of key technologies for the naval, offshore and energy sectors DCNS buys an 11% stake in OpenHydro DCNS and OpenHydro win the Cleantech 2012 Award for the best investment in an innovative start-up by a major corporate group A pilot project with four turbines is underway off Paimpol-Bréhat in Brittany Planned start of operations of a new manufacturing plant for tidal turbines at Cherbourg Production of 100 turbines annually expected at the new facility in Cherbourg creating 2-300 new jobs

2012

Acquisition

Test case

New manufacturing

process

2007

2014

http://www.dcnsgroup.com/wp-content/uploads/2011/01/OpenHydro-Open-Centre-Turbine-1MW-Rated-Logo.jpg

PwC

New emerging industries Characteristics

• Usually formed on the basis of a new product, service or idea and come into being when consumer needs change, new technologies replace older ones, or when new socio-economic conditions emerge

• Most often driven by key enabling technologies (KETs), new business models such as innovative service concepts, and by societal challenges that industry must address as a matter of survival

• Tend to be research and knowledge intensive industries, as their emergence and development usually results from applied creativity and disruptive innovation

• Typically nurture entrepreneurship and an innovative spirit


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PwC

New emerging industries Value chains are being reconfigured

• New emerging industries use some or part of the value chains of traditional industries

• They consist of either entirely new activity sectors or of restructured sectors that transform, evolve or merge into new industries

• Service innovation is a key factor in these transformations

• Traditional sectors undergo a reconfiguration into new emerging industries with transformations usually occurring at the design and engineering phases

• New emerging industries have some key technologies-based services in common, which include ICT, business services and engineering


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PwC

Production

Production

New emerging industries Value chains are being reconfigured

Traditional industry


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Emerging industry

Adapted Production

R&D Engineering Market

Market

Distribution

Production Distribution Market

R&D Engineering Production Distribution Market Market

PwC

Industrial transformations New paradigms requiring new policies


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New demands

Consumerism

Social change

Environmental

change

Markets Industry

New Models

Key Emerging Industries

Key Emerging Industries Internationalisation

and globalisation

of R&D

Explosion of global

R&D capacity

Emergence of the

knowledge –based

economy

R&D

Reorganisation

Traditional

industries

PwC

2 signals to identify Emerging Industries : Equity Investment and M&A


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PwC

Identifying and classifying emerging industries Our methodology

Focus on financial deals: mergers and acquisitions and equity investments


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mergers & acquisitions

equity investments


Emerging

industry

Traditional

industry

Emerging

industry

Traditional

industry

Traditional

industry

New

industry &

technology Finance


PwC


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Key emerging

industry

Sectoral classification Candidate emerging

industries Key emerging industries

Agriculture

Manufacturing

Information &

communication

Financial

activities

Identifying and classifying emerging industries From sectors to key emerging industries

Candidate

emerging industry

Analysis

of cross-

sectoral

linkages

based on

M&A and

equity

data

Selection

of the most

active,

significant

and

relevant

emerging

industries

Database on M&A and equity investments

including over 10,000 deals

PwC

New emerging industries List of industries identified and numbers of deals


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Number of M&A deals Number of equity deals

Business and Management Services 1,526 3,633

Construction 2,472 5,694

Creative Industries 2,308 5,283

Eco Industries 1,452 4,517

Experience Industries 1,710 3,351

Finance 1,613 4,363

Food 1,165 2,030

ICT & Mobile Services 2,542 6,722

Maritime 1,196 2,821

Mobility 2,249 4,744

New Materials 768 2,727

Personalised Medicine 2,221 6,587

PwC

New industry configurations Identified based on financial transactions between firms


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Eco

industries

Publishing

Media

Maritime

Creative

industries

R&D in

Biotechnology

Transport

Recovery &

Recycling

Energy

New

Materials

Business

Services

ICT & Mobile

Services

Construction

Manufacturing

Civil

Engineering

PwC

Key emerging industries (KEI) Employment, turnover and value added


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Construction

Creative industries

Eco industries

Experience Industries*

Finance*

Food

Personalised Medicine*

ICT & Mobile Services

Management & Business services

Maritime

Mobility

New Materials

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

5.000

5 10 15 20 25 30 35

Tu

rno

ve

r (E

UR

mil

lio

n)

Employment (millions)

Value added (EUR million)

500 1,000 1,500

Source: Eurostat (2009)

* The figures significantly underestimate the

sizes of these industries due to partial data availability

PwC

Spatial distribution of activities Maritime

Employment (2010)

Figures aggregated at the NUTS 2 level from firm-level employment data

Data source: Amadeus - A database of comparable financial information for public and private companies across Europe containing comprehensive information on 19 million companies


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Number of employees (2010) in the maritime key emerging industry

< 2,500

2,500...5,000

5,000...7,500

7,500...10,000

10,000...15,000

15,000...20,000

20,000...30,000

30,000...40,000

40,000...50,000

> 50,000

PwC

Spatial distribution of activities Maritime

Change in employment

2006-2010

Figures aggregated at the NUTS 2 level from firm-level employment data



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Change in employment (2006-10) in the maritime key emerging industry

< - 5,000

-5,000...-2,500

-2,500...-1,000

-1,000...0

0...1,000

1,000...2,500

2,500...5,000

5,000...10,000

10,000...15,000

> 15,000

PwC

Spatial distribution of activities New materials

Turnover (2010)

Figures aggregated at the NUTS 2 level from firm-level turnover data



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Turnover in million EUR (2010) in the new materials key emerging industry

< 250

250...500

500...750

750...1,000

1,000...2,500

2,500...5,000

5,000...7,500

7,500...10,000

10,000...20,000

> 20,000

PwC

Spatial distribution of activities New materials

Change in turnover

2006-2010

Figures aggregated at the NUTS 2 level from firm-level turnover data



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Change in turnover (2006-10) in million EUR in the new materials key emerging industry

< - 2,000

-2,000...-1,000

-1,000...-500

-500...-250

-250...0

0...250

250...500

500...1,000

1,000...2,000

> 2,000

PwC

Final remarks Relevance and significance

• Service innovation is key for the growth of these emerging industries

• Acquisitions from and between existing industries provide early signals of a new emerging industry

• Emerging industries represent a sizeable part of the economy and impact significantly on regional competitiveness and long-term industrial development

• Policy and regulatory frameworks need to be frequently reviewed and adapted to encourage and accelerate the growth of emerging industries


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Key Emerging Industries

Thank you for your attention!

This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon

the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as

to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers S.à r.l., its

members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting,

or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

© 2012 PricewaterhouseCoopers S.à r.l.. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers S.à r.l. Luxembourg which is a

member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.

Contact details

© 2012 PricewaterhouseCoopers S.à r.l.. All rights reserved.

In this document, “PwC” refers to PricewaterhouseCoopers S.à r.l. Luxembourg which is a member firm of PricewaterhouseCoopers International

Limited, each member firm of which is a separate legal entity.

Laurent Probst [email protected]

Partner PwC

Erica Monfardini [email protected]

Director PwC

Laurent Frideres [email protected]

mailto:[email protected]



03 probst day 2_ecc 2012

Technology

Transcript of 03 probst day 2_ecc 2012