Mastering six core competencies of the so-called fourth industrial revolution, starting immediately, is the key to leveraging the Industrial Internet of Things (IIoT), analytics and other next-gen technologies, according to ‘Industry X.0 – Realizing Digital Value in Industrial Sectors’, a new book from Accenture.
What’s at stake? The Accenture Research and the World Economic Forum found that industrial manufacturers could help unlock about $100 trillion in value over the next seven years if they digitised to leverage the IIoT. The result would be a vast improvement in income, profits, employment, health and safety, industrial value creation and resource efficiency for their organisations.
“The industrial sectors, comprising two-thirds of the world’s gross domestic product, will be changed beyond recognition by digital technology, disrupting decades-old business habits, conventions and operating models,” said Eric Schaeffer, senior managing director, Accenture and author of the new book.
“Businesses need to embrace this change, and to harness its potential. For this, they need a clear strategy for managing the necessary organisational pivots, and the right digital capabilities for this new era of digitised manufacturing,” he said.
Schaeffer identified the six key competencies organisations require to excel in the outcome economy:
- Synchronising lifecycle clocks to account for the fact that hardware, products and production assets will age more slowly than the software that directs them.
- Embedding software intelligence and connectivity in sheet metal products will enable interaction with the production environment.
- Using analytics to gain insights and decision support from data gathered by connected products and other data sources will be the norm. Manufacturers not embracing the practice will find themselves at a major disadvantage.
- Making manufacturing agile by adopting industrial automation wherever possible to increase shop floor speed and flexibility will become mandatory.
- Transitioning to as-a-service business models will enable organisations to shift to the outcome economy, where combinations of products and services will no longer be acquired as property, but rather used flexibly on an as-needed basis.
- Creating and running ecosystems of suppliers, customers, partners, start-ups, academia and competitors will be the new paradigm as no single company will own the entire digital value chain.
The book makes a strong case for organisations to switch their strategy from products to services, value and outcomes to not just survive digitisation but to thrive with increased growth, profits and competitive advantage.