Chemicals: Smarter Investments, Outstanding Results

RESOURCES INDUSTRIES

DIGITAL

TRANSFORMATION

RESEARCH

Copyright © 2017 Accenture. All rights reserved.

INTRODUCTION

The transformational value that 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 help

bring together the disparate components of an enterprise 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 Chief Information Officers (CIOs), Chief Digital Officers (CDOs)

and Chief Technology Officers (CTOs) from the chemicals (53), energy (77), metals/mining (18) and

utilities (56) industries participated in our global digital transformation survey.

The key findings for chemicals from the research are shared in this presentation and provide

valuable insights into current and future transformational technology trends and plans.

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*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.


https://www.accenture.com/us-en/blogs/blogs-taking-pulse-technology-transformation-resources?c=res_chemfy16ss_10000010&n=smc_0116

BACKGROUND ON THE RESEARCH

Respondents:

Questionnaire-led online survey with 53 senior technology executives including CIOs, CDOs and CTOs from chemicals in 16 countries

Fieldwork: Between August and September 2016

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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

Note that the base size for metals/mining companies is low (n=18), so findings should be interpreted as indicative only.

4%

19%

27%

51%

CDO (Chief Digital Officer)

CTO (Chief Technology Officer)

IT Director

CIO (Chief Information Officer) /Head of IT


INVESTMENTS IN DIGITAL TECHNOLOGIES

ACROSS THE CHEMICAL INDUSTRY ARE

GROWING SLIGHTLY FASTER THAN THE

RESOURCES AVERAGE

80%

82%

of executives say that the size of their

investments in digital technologies has

increased in the past two years

Digital services/application design and robotics/automation

have been adopted by 47%* of chemical 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%

* These were 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 (204), Chemicals (53)

Copyright © 2017 Accenture. All rights reserved. 4

CUSTOMER ANALYTICS AND APPS OFFER MOST

POTENTIAL FOR THE CHEMICAL INDUSTRY – BUT

THIS IS ALSO THE CAPABILITY MOST IN NEED OF

IMPROVEMENT

6%

19% 21%25%

30%34%

49% 49%53%

Other digital customerchannels, e.g web

based interaction orapps

Mobility for theworkforce

Artificial intelligence Cybersecurity Operational analyticsand applications

Social media toolsand applications to

interact withcustomers

Mobility to interactwith customers (web,

apps, mobile web)

Platforms upon whichto build shareabledigital capabilities,like cloud solutions

and app marketplaces

Customer analyticsand applications

26%25%

30%

23%

25% 25%32%

28%

23%



Digital technologies offering most potential for

business transformation over the next five years

Digital capabilities most in need of improvement

(% indicating fair amount/ a lot of improvement

needed)

MOBILITY IS THE TECHNOLOGY ADDING MOST

VALUE IN CHEMICALS TODAY – BUT OVER THE

NEXT FIVE YEARS THIS WILL BE OVERTAKEN BY

INTERACTIVITY

Which technologies are adding / expected to add most value today / over the next five years? (Single response for each; only top two today / future shown)

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Cloud

Cybersecurity

Interactivity

Mobility

CHEMICALS

0% 5% 10% 15% 20% 25% 30% 35% 40%

Analytics

Cloud

Cybersecurity

Energy

FutureToday

1 Today

1 Future

1 Today

1 Future

0% 5% 10% 15% 20% 25% 30% 35% 40%

Cloud

Cybersecurity

Interactivity

Mobility

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


1

AS MARKET COMPLEXITY RISES FOR CHEMICAL

COMPANIES, EXISTING SKILLS FOR DIGITAL

TRANSFORMATION APPEAR TO BE STRETCHED

Market complexity has increased more in chemicals over the past two years compared with the Resources average

94%

74%

of chemical executives believe they do not

have access to all the right skills within their

organization for an effective digital

transformation

of chemical executives believe their

company is not making the investments in

recruitment and training it needs

62%

64%

72%

75%

79%

60%

61%

65%

67%

69%

Data landscape

IT delivery model as a service

IT/OT convergence andintegration

Technology landscape

Security landscape

Resources

Chemicals

Percentage reporting an increase in complexity

(past 2 years)



8%

9%

17%

21%

23%

38%

55%

13%

11%

23%

26%

26%

40%

62%

Chief Data Officer

Chief Marketing Officer (CMO)

Chief Security Officer

Other C-suite

Chief Digital Officer (CDO)

Chief Information Officer (CIO)

Chief Technology Officer (CTO)

Resources

Chemicals

RESPONSIBILITY FOR IDENTIFYING NEW DIGITAL

TRANSFORMATION OPPORTUNITIES IN

CHEMICALS SITS PRIMARILY WITH CTOS AND

CIOS

Who within your company is responsible for identifying new digital transformation opportunities within the back office/enterprise functions? (Multi response)



NEW APPROACHES TO EVALUATE THE BENEFITS

OF DIGITAL INVESTMENTS WOULD MOST HELP

TRANSFORMATION EFFORTS IN CHEMICALS

Organizational changes that would help most in achieving digital transformation objectives

9



Chemicals Energy Utilities

Metals/

Mining*

28% 21% 21% 17%

21% 26% 18% 11%

17% 17% 27% 22%

17% 21% 13% 33%

17% 14% 20% 17%17%

19%

20%

21%

23%

Ability and willingness to redesign businessprocesses to leverage digital technologies

Better alignment of business planning andtechnology planning

Better technology awareness among seniorexecutives

Better governance of technology investments

New approaches to evaluate the benefits of digitaltechnology investments


Business areas that IoT will add most value to (next 2 years)

22%

47%

49%

51%

51%

53%

53%

36%

44%

45%

41%

50%

47%

48%

Command centers

Innovation and productdevelopment/improvement

Operations

Asset monitoring

Supply chain

Sales and marketing functions

IoT based customer services

Resources

Chemicals

IOT* IS CONSIDERED A KEY LEVER OF DIGITAL

TRANSFORMATION THAT WILL BENEFIT A WIDE

RANGE OF BUSINESS AREAS IN CHEMICALS

92%

of chemical executives consider

IoT as a major lever of digital

transformation


*Internet of Things


CULTURAL BARRIERS AND ORGANIZATIONAL

SILOS ARE THE BIGGEST BARRIERS TO IOT

INTRODUCTION FOR CHEMICAL COMPANIES

Main barriers to introduce IoT in the organization

11

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%35%

36%

36%

36%

39%

39%

39%

41%

42%

Process barriers (time to adopt newprocesses)

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




COST IS THE PRIMARY BARRIER TO THE

ADOPTION OF NEW TECHNOLOGIES IN

CHEMICALS, FOLLOWED BY LACK OF INTERNAL

OWNERSHIP

Main barriers to adoption of new digital technologies

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Base: All respondents



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%32%

32%

33%

33%

33%

35%

36%

36%

41%

43%

Process barriers (time to adopt newprocesses)

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


LAGGING BEHIND COMPETITORS IS THE NUMBER

ONE TECHNOLOGY CONCERN FOR CHEMICAL

COMPANIES, FOLLOWED BY CYBER THREATS

Technology risk current areas of concern

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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%10%

11%

11%

15%

15%

18%

20%

Reputational risks

Physical security threats

Health and safety risk

Environmental risk

Lagging behind competitors indigital/technology capabilities

Regulatory risk



PROCESS EFFICIENCY IS CITED AS THE PRIMARY

OBJECTIVE OF DIGITAL TECHNOLOGY

DEPLOYMENT IN CHEMICALS, FOLLOWED BY

CUSTOMER SATISFACTION

Primary objectives for digital technologies

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28% 25% 20% 33%

21% 26% 14% 50%

25% 21% 14% 11%

21% 16% 23% 6%

4% 12% 29% -13%

18%

19%

24%

25%

Regulation compliance e.g.,health, safety and environment

New product/servicedevelopment

Customer satisfaction

Cost control

Process efficiency


WANT MORE INFORMATION ABOUT THE SURVEY?

HAVE QUESTIONS? PLEASE CONTACT US.

Senthil RamaniManaging Director – Chemicals and Natural Resources,

Global Technology Lead

Accenture


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Chemicals: Smarter Investments, Outstanding Results

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Transcript of Chemicals: Smarter Investments, Outstanding Results