The Rise of Digital and Connectivity

Bill HendricksonManaging DirectorApril 22, 2015

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40 Industries More than 4,000 clients 323,000 employees $30.0 billion revenue

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Accenture & Meridium Relationship

Market leader in Digital & Operational Excellence Consulting

Global Systems Integration & Digital practice implementing Digital Technologies and Business Process solutions at scale

Significant experience implementing sustainable organizational transformations enterprise - wide

Market leader in Asset Performance Management Software

Deep knowledge of connectivity, asset strategy, failure elimination, mechanical integrity & asset safety

Simply Connected

Utilize industry leading software tools to reduce your enterprise operating risk and improve asset reliability

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Digital disruption is changing how the world measures, communicates and acts on information

In 60 seconds, 2.4 billion people are connected to the internet & interact

~277K snapchats received

~4M searcheson Google

~38K photos shared

~3.1M likes on Facebook

~3.5K pins

~$275K (USD) transactions

~ 347K tweets

~100 hours of video uploaded

Source: Company websites – December 20145Copyright © 2015 Accenture All Rights Reserved

Looking Forward

Sensors Devices Networks APIs Apps Data

75% Fortune 1000 could offer public APIs by

end of 2014.

4.4BTotal number of

app users by 2017.

16EBMobile data traffic

per month by 2018.

Motion

Location Touch interfaces

212Bsensors expected

by 2020

25Bdevices expected

by 2020

4.9Bpeople accessing 4G-LTE networks

by 2020

GestureTracking

AugmentedReality

User data

Transactiondata

Field data

Inventorydata

Performance data

VoiceRecognition

Chemical

Light

Heat

Sound

Mapping

Billing

Social

Search

Marketing

6Copyright © 2015 Accenture All Rights ReservedSource: Accenture Research

~$14.4 Trillion of value can be captured between now & 2022 by leveraging “Digital Technologies”

Source: © Copyright Cisco white paper “Embracing the Internet of Everything To Capture Your Share of $14.4 Trillion” February 12. 2013

$3.7

$2.5

$2.5

$2.7

$3.0

Customer Experience

Asset Utilization

Productivity

Supply Chain and Logistics

Innovation

$14.4 Trillion

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Digital Plant Solutions can generate over $100 million value for a $2 billion companyAccenture's experience & industry case studies quantify the potential of digital plant solutions

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Digital business transformations should be focused on both revenue and margin enhancement

Internal Focus

External Focus

Digitize Processes

Revenue

Profit Margin

Digitize Channels

Digitize Commercial

Digital Transformation

Digital Business

Digitalize Operations

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Digital disruption has companies rethinking business and operational strategies

Source: Accenture Experience

Digital is disrupting the established industrial operating models and accelerating innovative solutions

Mobile

Cloud

Data Velocity& Analytics

ConnectedDevices

Social MediaCollaboration

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Digital

011010101010101110011101010101011010

IT / OT

C onnected C ollaborative

C ontextual C apable

10

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Polling Question #1

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Polling Question #2

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Polling Question #3

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Polling Question #4

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Polling Question #5

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Polling Question #6

Continued integration of new technologies is changing the way companies run manufacturing plants

Connected Collaborative Contextual

Operations Costs

Production

Maintenance Costs

Workforce Productivity

Percent of companies that identified manufacturing technology as the

highest priority for capital investment back in 2012

59%

17Copyright © 2015 Accenture All Rights ReservedEconomist - The digitization of manufacturing will transform the way goods are made – April 21, 2012

Connected Digital Worker

Connected NetworksConnected Plants and Assets

The manufacturing world has changed

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The digital plant has the following characteristics

Connected Wireless Intelligent devices M2M communication

Integrated Supply Chain Vertical Integration SOA based architecture Standardized data acquisition

Reliable Analytics for Predictive Maintenance Mobile Workforce enablement Augmented Reality

Transparent Standardized KPI’s Real Time Plant Visibility Enterprise Manufacturing Intelligence

Optimized Advanced Process Control Real Time Optimization Batch Optimization

Secure Data Protection Management Application Security Testing Security Monitoring & Analytics

Organization Centralized process Centralized applications Global standardization

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Increased adoption of “Wearables” is becoming a game changer for the field worker

GPS/RTLS receiver

Camera on headset

Voice headset on helmet

Personal gas-monitor

LifeMonitor Belt

Touchpad

Battery-pack

Utility Belt:- Temperature- Vibration- RFID- Camera

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Leveraging industrial pervasive wireless & wearables to protect employees

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Digital asset management solutions are being embedded into plant operations

Centralized Operations

The maintenance planning team is working on next month’s plan

Meanwhile, the maintenance planners create a daily plan that

prioritizes work priorities and costs

Maintenance Work Execution

Maintenance Technician uses a wireless life safety

and tracking solution assuring safe working

conditions and track time

Central Operations has real-time insight into asset performance, status of the

daily maintenance plan and results of the work

performed

Maintenance Technician use mobile solution, job

instructions, asset characteristics and data

are easily accessible

Illustrative

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Leveraging industrial pervasive wireless & wearables to improve turnaround performance

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Digital plant turnaround solution

Near Real Time Visual Analytics

Back end Transactional

AnalyticsCommand

CenterVisual

AnalyticsLocation Visibility

Wireless Infrastructure

Mobile Worker

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Accenture digital plant & worker connectivity

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Journey to becoming a true digital business

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Customer Expectations

Technology Enablement

STRATEGY• Digital Strategy & Roadmap• IT Transformation Themes • Legal construct

EXECUTE• Digital Plays• Infrastructure and App Services• & Collaboration• Security

OPERATE• Enterprise as a service • Service Management in

the Cloud • Integrated Business

Services • Integration and Service

Desk

Bus

ines

s B

enef

its

Time

Business case

Roadmap Align organization

Address digital skill gaps

Execution of

Roadmap

40 1 2 3

Internal Focus

External Focus

Digitize Processes

Revenue

Profit Margin

Digitize Channels

DigitizeCommercial

Digital Transformation

Digital Business

Digitalize Operations

Connected Digital Worker

Connected Plants and Assets Connected Networks

Change Management

Business Transformation

26

Q & A

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Final Remarks

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