Smarter Investments, Outstanding Results: Resources Industries Digital Transformation Research

RESOURCES INDUSTRIES DIGITAL TRANSFORMATION RESEARCH

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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.


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.


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


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


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


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


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


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)


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


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%


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


YET, MANY BARRIERS TO INTRODUCE IOT IN THE ORGANIZATION EXIST AND VARY BY INDUSTRY

Main barriers to introduce IoT in the organization


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%


COST AND BUSINESS CASE IDENTIFIED AS THE PRIMARY BARRIERS TO NEW TECHNOLOGIES ADOPTION FOR MOST INDUSTRIESMain barriers to new digital technologies adoption



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


Lack of a clear strategy/business case

Cost

32%

32%

33%

33%

33%

35%

36%

36%

41%

43%


CYBERSECURITY THREATS AND REGULATORY-RELATED RISK ARE AREAS OF CONCERN

Technology risk current areas of concern



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


10%

11%

11%

15%

15%

18%

20%


PROCESS EFFICIENCY AND COST CONTROL ARE THE PRIMARY OBJECTIVES OF DIGITAL TECHNOLOGIES DEPLOYMENTPrimary objectives for digital technologies



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%


WHO DO WE CONTACT FOR MORE INFORMATION ABOUT THE SURVEY?

Phillip Hazen Group Technology Officer, Resources IndustriesManaging [email protected]

For more information visit: accenture.com

Follow us: @AccentureChems Chemicals LinkedIn Showcase @AccentureEnergy Energy LinkedIn Showcase@Accenture_Util Utilities LinkedIn Showcase @AccentureMining @AccentureDigi

mailto:[email protected]

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Smarter Investments, Outstanding Results: Resources Industries Digital Transformation Research

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Transcript of Smarter Investments, Outstanding Results: Resources Industries Digital Transformation Research