Smart services challenge automotive and industrial equipment organizations to completely re-think their product development processes, which now hinge on successfully digesting a mass of new data sources.
2. What’s needed is a more comprehensive view of
value creation: one that leverages the power of
smart services as the backbone of the end-to-
end digital value chain described by Industry
X.0. Industry X.0 encompasses a universe of
“living” products and services: software-
intelligent and closely aligned with their users
and ecosystems. At its heart are the smart,
interconnected devices and appliances that
constitute Industry 4.0.
3. 80%
Copyright 2017 Accenture. All rights reserved. 3
80%84%recognize that technology is
changing exponentially
recognize that innovation
must accelerate
recognize that delivering
differentiated customer
experiences fuels new revenue
streams and strengthens
competitive advantage
Source: Accenture Technology Vision 2017 Source: Accenture Strategy 2015 B2B Customer Experience
Survey-Industrial Companies
Source: Accenture Technology Vision 2017
4. 31%
42%
23%
40%
31%
24%
14%
38% 32%
22%
Smart Services Create New Value in New
Places
Copyright 2017 Accenture. All rights reserved. 4
Global Automotive Profit Pool Development
[Bn Euro]
20252015 2030 2030
100%
3%
2015
546331
2025
474
Shift In Global Automotive Profit Pool Shares
[% Of Total Profit Pool]
43% 15%
Source: Source: Accenture, Digital Value Creation Analysis 2016
Notes: OEM=automotive manufacturer, OES=automotive supplier, MSP=mobility service provider, ISP=infrastructure service provider
MSP
OES
ISP
OEM
331
474
546
+3%
0%
5. Hence Industrial Companies Need to Transform
to Service Driven Business Models based on
Smart Products & Services
Copyright 2017 Accenture. All rights reserved. 5
95%believe that business
models must support a
products-as-a-service
strategy (smart products
& smart services)
IMMEDIATE TO NEAR TERM
Operational Efficiency
Smart Products &
Smart Services
Outcome-based
Economy
Autonomous Pull
Economy
LONGER TERM
From Product Service Outcome Pull
Source – Innovation Driven Growth survey, Accenture 2016
6. Ecosystem Partnering and Technologies are
Key Foundations for New Operating Models
Copyright 2017 Accenture. All rights reserved.
6
In 5 years, 91% of Automotive and 67% of
Industrial Equipment executives expect to act
as a unified ecosystem
TheTop3benefits:
Unified Ecosystems AI Technology enabled
Operating Models
of leaders build platform-based
business models on
foundational ecosystems of
digital partners
believe AI will transform
them in the next 3 years
50%80%+
productivity
improvements
data analysis
& insights
cost
savings
Source – Innovation Driven Growth survey, Accenture 2016
7. Copyright 2017 Accenture. All rights reserved. 7
END-TO-END SERVICE LIFECYCLE
Ideation Incubation
Provide end-to-end support throughout new
services. Use design thinking approach
Data - Analytics – Cybersecurity
Implement Analytics academy, catalogue of algorithms available to the BUs, data repository, end-to-end cyber security
Change Management & Digital Transformation
Develop IoT culture across the organization and develop service catalogue to accelerate BUs/organizations IoT innovation, run & talent as-a-service
Value Creation Office/Program Driven
Monitor value creation and foster IoT adoption/innovations
OT/IT Platforms Vertical Solutions
Manage end-to-end technical integration components to accelerate industrialized offerings and synergies
Run & Operate
Industrialization
(Business and Technology)
CUSTOMERS
BUSINESSOUTCOMES
GO-TO-MARKET/OPERATING MODEL
Define the right model per new service and global operating to develop customer satisfaction
BUSINESS OFFERINGS STRATEGY
Set business offerings aligned with extensive customer interaction, customer journey mapping and
business model definition
SMART SERVICE FACTORY CONCEPT
The industrial value chains of the future will be E2E ecosystems, from product design through to ongoing use by the
end consumer. Achieving them will be challenging - but a digital services “factory” concept, customized to the
specific needs of each organization would allow organizations to address customer needs predictively and enable
the personalized, contextual services that drive recurring revenues.
8. Copyright 2017 Accenture. All rights reserved.
EarlyInnovators
alreadyhave…
successfully integrated
digital, including smart
services, into the
customer experience
8
75%Early Innovators Followers
25%
5-7%higher revenues
1.5 – 2.4%
Higher operating margin
AND
VS.
$
Outcomes
9. Copyright 2017 Accenture. All rights reserved. 9
Innovation Driven
Growth Survey,
2016
Accenture
Technology
Vision, 2017
Industry X.0: Realizing
Digital Value in
Industrial Sectors, 2017
Notas do Editor
We began by analyzing the digital disruption that is driving the development of Smart Services:
Industrial consumerism (fueled, of course, by the exponential pace of technology change) is turning B2B into B2C players
As product cycle times decrease, innovation must accelerate
What’s more, the definition of innovation is changing: delivering E2E, personalized and differentiated customer experiences is the key to new revenue streams and thus competitive advantage in a digitally disrupted world
Smart Services move value to new places/parties:
From incumbents (OEM and OES) to more agile new entrants (MSPs and ISPs)
What’s more, industry value and societal value are not always aligned. Consider Auto telematics, which will deliver $240 billion in cost savings to drivers and $15 billion to insurers (thanks to fewer accidents), but only $1.2 billion to OEMs
Mobility Service Provider (MSP):
MSPs control the direct relationship with the customer: financing, leasing, flat rates for public transportation, etc.
They use network effects from a vast customer base, added by intelligence, algorithms, and customized platform
Infrastructure Service Provider (ISP):
ISPs are operators for physical and virtual infrastructures like charging stations, toll systems, parking garages
Infrastructure players are relevant business partners for MSPs
All of which means that incumbents’ business models must evolve to support products-as-a-service:
A partner-based relationship that builds customer intimacy, and thus loyalty and revenue growth, by providing individual customers with the tailored, consumer-like solutions and outcomes that more of them now seek.
Example
Industrial equipment providers started by supplying mining companies with trucks and other equipment
This evolved into providing value added smart products and services such as (1) equipment and job-site monitory and (2) safety features that recognize when a driver is drowsy
The ultimate evolution of this may become an outcome based model similar to power-by-the-hour, where mining operators pay for productivity driven by autonomous equipment rather than the equipment or upkeep itself.
Since few organizations can capture the new value created by such models alone, open, transparent and multi-dimensional ecosystems of digital partners are essential.
Despite ongoing concerns about cyber security, industrial organizations recognize that unified ecosystems will increase the pace and agility of innovation
These ecosystems should include software vendors, connected device makers, Cloud and other infrastructure providers, as well as Big Data and machine-learning players
The organizational impact of Smart Services will be huge, especially on product development processes, and new technologies are key enablers of the new operating model:
Software platforms, APIs, connectivity and user experience roadmaps all need to be integrated with traditional product roadmaps
While future product development choices hinge on successfully digesting a mass of new data sources
Hence the critical importance of such new technologies as AI, which at least half of industrial organizations recognize as the key to productivity improvements, data insights and cost savings
Cyber security is the No. 1 concern for 64% of Automotive and 33% of Industrial Equipment executives
Accenture research shows that leading innovators are already focused on the Smart Services transformation—and delivering significant higher growth and margin as a result. Those that hope to emulate them should remember that:
Value is being created in new places and they must pivot to the new or risk displacement by new entrants
Smart services go beyond operational efficiency to create new customer experiences and build the new business models that generate new revenue streams
The new operating model depends on ecosystem partnerships, analytics, software and new technologies that enable new product development capabilities
Accenture leveraged 3 pieces of research to develop our Smart Services point of view:
Beyond the Product: Re-writing the Innovation Playbook analyzed the innovation practices and value performance of 351 businesses from the Global 2000 across eight industries and nine geographies by interviewing Chief Technology Officers, Division Presidents and Division Vice Presidents of engineering and innovation, or their equivalent.
-> https://www.accenture.com/t20160425T050852__w__/us-en/_acnmedia/PDF-10/Accenture-Innovation-Driven-Growth-Product-Lifecycle-Management-April-2016.pdf#zoom=50
Accenture Technology Vision 2017, an annual investigation into the emerging IT developments likely to have the greatest impact over the next 3 years, leveraged the expertise of more than 2 dozen experienced individuals from the public and private sectors, academia, venture capital, and entrepreneurial companies, as well as technology luminaries and industry experts, nearly 100 of our own business leaders, and dozens of our professionals: nearly 3,000 people in all.
Industry X.0: Realizing Digital Value in Industrial Sectors, authored by Accenture Senior MD Eric Schaeffer, leveraged both our in-house expertise and the input of more than 40 industrial executives [OK??]