Embed Size (px)
Citation preview
2 20150617_IIC_Berlin_Rossbach.pptx
The digital transformation affects the key sectors of European industry through four levers
Source: Roland Berger
300 decision makers were surveyed, 30 CEOs interviewed, expert workshops held on:
D i g i t a l t r a n s -
f o r m a t i o n
Digital data
Con- nectivity
Digital customer
access
Automa- tion
The four levers of the digital transformation…
…and their impact on the industrial heart of Europe [bn GVA]1)
Survey focused on Germany as the pioneer of European industry
M e c h a n i c a l & p l a n t e n g i n e e r i n g 2 )
299
1) GVA = Gross value added, 2013, EU-15 states plus Norway, Turkey 2) Including energy systems
L o g i s t i c s
271
A u t o m o t i v e
140 C h e m i c a l s
124 A e r o s p a c e & a v i a t i o n
35
M e d i c a l t e c h n o l o g y
43
E l e c t r i c a l e n g i n e e r i n g
87
3 20150617_IIC_Berlin_Rossbach.pptx
Germany's example shows that the challenges are not yet being tackled across the board
The study's empirical basis1)
1) Results from the survey of 300 German industry decision-makers in November 2014
Source: Roland Berger
Lack of engagement Low level of
digital maturity
Primary focus on efficiency
45 percent have not examined the implications of digitization in sufficient detail. The level of engagement in large companies is much higher than in SMEs
Two thirds of firms consider their digital maturity to be low to moderate. Large companies fare much better
Cost impact is main goal when implementing digital technologies in companies. Only large companies are seeking revenue potential from new business models to a similar degree
45% Low to
moderate
43% Cost
cutting 32% New business models
67% Low to
moderate
4 20150617_IIC_Berlin_Rossbach.pptx
Three waves of digital transformation – Significant influence on gross value added as an opportunity and a threat for industry
Source: Roland Berger
1) Threat scenario in line with the already digitized media and telecommunications industries; derived from the historic increase in ICT's share in value added. Opportunity scenario calculated on the basis of capital intensity, relevance of the customer interface and the existing digital maturity of the industry
The digital transformation will emerge in 3 waves… Wide span of gains/losses calculated for the period through 20251)
Today 2025
Gains in productivity and gross value added of 20% to 30% per industry
EU-17 opportunity scenario:
+1.25 trillion euros
Losses of IT-based value added and the customer interface
EU-17 threat scenario:
-605 billion euros
Automotive
Logistics
Mechanical &
plant engineering
Electrical
engineering
Medical
technology
Energy systems
Wave 1 Wave 2 Wave 3
Chemicals
Aerospace
5 20150617_IIC_Berlin_Rossbach.pptx
Action required on three levels – Industry must lead the way, policymakers create the basis, associations as "transmission belt"
Players and their roles in the digital transformation
Source: Roland Berger
A s s o c i a t i o n s s p e a k
Clear distribution of roles
The digital transformation
of industry Industry Act on two levels as an initiator and implementer:
3.
Industry associations Act as transmitter driving actions into the industrial base and serve as ambassadors of the industry
2.
Policymakers Act as supporters, laying the required foundations for a successful digital transformation
1. 1.
2. 3. On the individual company level a. Through selective cooperation in the ecosystem, also working with rival firms b.
6 20150617_IIC_Berlin_Rossbach.pptx
Policymakers now need to lay the necessary foundations
Tasks for policymakers
Source: Roland Berger
Modernize the regulatory framework
Protect Europe's digital sovereignty
Reinforce industry's innovation capacity
Regulatory framework
Digital sovereignty
Innovation capacity
> Create a shared single market for digital products/data in Europe (a "Digital Schengen Area")
> Define uniform guidelines for data protection and data security
> Adapt legislation to the technological progress that has been made ("a legal code for the Internet")
> Refine competition & antitrust law with a focus on Europe as a relevant market
> Bring in more ex-post regulation of digital business models
> Support Europe's interests when it comes to standardization – smart cooperation with the IIC, not confrontation
> Promote the establishment of clusters for the digitization of industry
> Strengthen Europe's ICT industry > Achieve a balance of partnerships with
the US and China/Asia
> Upgrade broadband infrastructure > Reinforce digital training and
enablement at all levels > Make it easier for skilled workers to
immigrate > Examine tax breaks for digitization
investments and venture capital
Policymakers 1.
7 20150617_IIC_Berlin_Rossbach.pptx
Associations pool the interests of industry, coordinate initiatives and support member companies in the digital transformation process
What industry associations need to do
Source: Roland Berger
Transmitter Ambassador Supporter
Coordinate initiatives between policymakers and industry
Support companies in the digital transformation
Associations 2.
Represent and pool the interests of the industrial base
> Main interface for political deciders based on memberships across industrial sectors
> Translation of corporate requirements into requirements for political support and framework conditions on a national an EU level
> Cooperate among industry asso-ciations across EU memberstates, e.g. DI, BDI, MEDEF,…
> Positiong and amplifying EU industrial positions in international IoT platforms and ecosystems in US / Asia, based on subsidiarity principle with individual corporate engagements
> Connecting industry, professional and academic associations, also with non industrial sectors, e.g. Banking, Insurances, Services, ICT, where needed
> International marketing com-munication on "Digital Europe" capabilities
> Initiates and manages public debate on further development of data usage, avoiding "machine privacy"
> Potentially supporting initiatives on digital education for member associations / companies
8 20150617_IIC_Berlin_Rossbach.pptx
Each company must individually review its own business model in the digital world
a. Within companies – Develop a digital strategy
Key questions to be answered… …from four perspectives
Source: Roland Berger
In your own opinion
In dialog with customers &
suppliers
In dialog with competing firms
By simulating the market entry of
digital intermediaries
Spot how the digital economy is evolving and what influence that is going to have ? Identify possible disruptive changes in your own business model, e.g. product-as-a-service
?
Assess and decide on the necessary options for developing new business models
? Examine how efficiency potential can be realized through digital technologies ? Review the organization's digital competency, e.g. cyber-security, collaboration tools
?
Industry 3.
9 20150617_IIC_Berlin_Rossbach.pptx
Management responsibility – Implement a digital strategy and institute change
Source: Roland Berger
Organizational embeddedness > Definition of roles and
responsibilities
> Creation of dedicated organizational entities
Available skills > Checking what skills are required
> Training within the company
> Recruiting specialists
Financial perspective > Rigorous revenue management
– reinvesting in innovation
> Extensive communications with the capital market
Digital change > Reinforcing experimentation
and a tolerance of mistakes
> Increasing the use of digital tools
Cyber-security > (Regular) Updates of cyber-security
measures
> Establishing cyber-security as part of the corporate DNA
Setting standards > Coordinated approach within the
industry sector for efficient standard setting
D i g i t a l s t r a t e g y i m p l e m e n t a t i o n
Industry 3.
a. Within companies – Implement a digital strategy and institute change
10 20150617_IIC_Berlin_Rossbach.pptx
Industrial companies should examine selective cooperations – Global digital competition calls for a joint approach
Industrial companies cooperate to pilot new approaches and/or operate digital platforms/ processes
Project companies/joint ventures financed by shareholders; requires a antitrust-proof platform OR testbeds within IoT platforms
Focus on an industry segment or functional domain
Fast piloting, tolerance of mistakes, shareholders share the intellectual property
Objectives Cooperation in digital testing grounds
Logic Content
Format Philosophy
Specific, joint projects
Speed
Results focus
Practical innovation
> Establish/defend competitive edge in global digital competition
> Set standards based on market success not by policymakers/committees
> Spread the investments to spread the risk
> Protect investment in the installed base
Industry 3.
b. Across companies – Cooperate with partners and competitors
Source: Roland Berger
11 20150617_IIC_Berlin_Rossbach.pptx
Our shared ambition – To be the market leaders in the digitized industry
Call to action
Source: Roland Berger
I. Lead the way, don't react > Review the digital strategy in each company
> Act fast in pragmatic structures
> Further the public debate
II. Act together > Policymakers provide support and flanking measures, industry acts
> For European companies, smart cooperation with the IIC rather than confrontation
> Set standards based on market success rather than by decree
III. Build an ecosystem > Create digital testing grounds shared between companies
> Achieve a balance of partnerships with the US/Asia
> Combination of Digital and industrial expertise
> "Can Do" spirit
Roland Berger commit-ment & contribution
> Building a digital ecosystem for Europe: "Terra Numerata"
> Cooperations with VISA, e.ventures, …
Our own approach
Let's think: act!
