Further evidence of the strong positive correlation that exists between digital maturity and companies' financial performance has been provided in a recent study by Accenture.
Through the more efficient use of new technology, the 900 large companies surveyed could increase their market capitalisation by an average US$6 billion.
A lack of digital skills, however, is holding back their ability to realise these benefits.
With only 13 percent of executives claiming tangible business benefits being derived from their investments in digital technologies, major scope for improvement exists in leveraging the full potential of emerging technologies such as 3D printing, artificial intelligence (AI), augmented and virtual reality (AR/VR), autonomous robots, autonomous vehicles, big data analytics, blockchain, digital twin, machine learning and mobile computing.
Companies in the industrial-equipment sector, for instance, could realise additional cost savings of more than $43,000 per employee if they combined robotics, AI, blockchain, big data and 3D-printing technologies. Energy companies could gain more than $16 billion in market capitalisation if they combined technologies such as virtual reality, big data and AI.
To realise these benefits, digital transformation is no longer enough. Companies must completely reinvent their operating models, production and value chains to create more value with digital.
Accenture uses the term Industry X.0 to describe the type of reinvention required, with businesses using advanced digital technologies to transform core operations, worker and customer experiences and underlying business models.
Emerging technologies are used to achieve new levels of efficiency in core R&D, engineering, production, manufacturing and support activities through integrated systems, processes, sensors and data driven intelligence.
Worker and customer experiences are reimagined and redesigned through advances such as immersive, augmented and virtual reality.
New business models and revenue streams are unlocked by smart, connected products, services and plants enabled by new ecosystems.
Please see here for previous Future Digital Leaders blog posts on the link between digital transformation and business performance.
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