Accenture: Join the journey to digital reinvention
Artificial Intelligence (AI) is the power behind a digital reinvention in industry which will pave the way for a profitable future, according to a survey by Accenture. From self-driving cars to virtual assistants, Industry X.O is using AI to turn ordinary products into extraordinary game-changers.
“Most industrial companies recognise AI’s potential,” reports Accenture. “When we surveyed 500 manufacturers across six industrial sectors in six countries, we found no shortage of AI enthusiasm.”
“The re-invention of industrial products with AI is still in its early stages, and getting it right is anything but easy,” said author Eric Schaeffer, Senior Managing Director, Industrial. “However, the successes of the AI leaders in our sample show that it can be done and that the business case for AI in industrial is very strong.”
When combined with other powerful digital technologies, AI creates Industry X.0 products that evolve with their users and enhance the customer experience.
X.O products are a convergence of breakthrough technologies from analytics, AI mixed reality and more which enables mass customisation with smart, connected products, in real-time.
If industry can establish digitally reinvented products in the market at scale, they will boost top-line growth, and thus their market capitalisation, claims the report. Winning companies start out with the conviction that AI can shape the future of their products and businesses.
Research found that only a small group is leveraging AI in a way that Accenture refers to as Applied Intelligence. This equates to intelligent technology and human ingenuity, combined with analytics and industry expertise, applied at the core of business.
It was found that 98% have begun integrating AI into their products in one way or another. “They understand that by combining AI with other digital technologies they can drive higher operational efficiencies and a differentiated customer experience,” says Accenture.
But many struggle to realise their AI dreams. Only 24% recognise that digital reinvention drives top, as well as bottom-line growth. More than 75% take a scattergun approach to the challenge.
A four-stage journey to success
The survey by Accenture confirmed all successful companies stay on this four-stage journey towards digital reinvention:
Companies need to have conviction and believe in the power of AI to shape their future and to bring key stakeholders with them. The good news is seven in 10 display such conviction.
“Articulate your belief in the digital reinvention of the product and communicate it with simple and authentic passion,” reports Accenture.
When it comes to transforming conviction into a commercially viable vision, however, only 16% of survey respondents qualified. Industrial visionaries see the big picture: 82% rank enhanced customer loyalty and insights from product and service usage as key value drivers.
“Define the product you want to digitally reinvent, identify the value to be built and owned and determine the impact on both top and bottom lines,” says Accenture.
Armed with a vision and data-driven strategy, the next step is to commit management and finances to two areas: gaining the skills needed to ensure integration of new IT and shifting elements of the business model to embed AI.
Ensure that senior management is committed to securing the strategic and tactical partnerships that create value and mitigate risks.
Only 2% of survey respondents achieved the scale they needed to drive market value from their digitally reinvented products.
The report states: “Leverage your ecosystem to innovate, adopt a ‘fail fast’ approach to the journey, and empower your workforce to develop and service digitally reinvented products across their lifecycle.”
By moving forward with conviction, leading players are developing new business opportunities and accelerating the implementation of new models that can enhance customer value and thus their own.
“The time to join the journey to digital reinvention is now,” concludes the report from Accenture.