Reinvent possibility with industry x - JEF...Accenture has integrated several digital initiatives, such as blockchain, security, AI, etc., with Industry 4.0 offerings along with the

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INDUSTRY X.0DIGITAL CAPITAL PROJECTS

Copyright © 2019 Accenture. All rights reserved. 2

1932 RCA BuildingNew York Herald Tribune

2017 Salesforce TowerSan Francisco Chronicle

LOOKING AT CONSTRUCTION PROJECTS TODAY, I DO NOT SEE MUCH DIFFERENCE IN THE EXECUTION OF THE WORK IN COMPARISON TO 50 YEARS AGO.

John M. Beck

CEO, Aecon Group, Canada

2016 World Economic Forum

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LAGGING CONSTRUCTION PRODUCTIVITY

Copyright © 2019 Accenture. All rights reserved.

▪ 25% of projects came within 10% of their original deadlines1

▪ 31% came within 10% of the original cost baseline1

▪ 98% of mega projects become delayed or overbudget including 77% that are more than 40% behind schedule2

What Are Some of the Causes?

▪ Cyclical industry with low profit margins discourages investing to improve, including a lack of technology investment

▪ Inefficient job site design

▪ Poor logistics management

▪ Design induced rework

▪ Lack of skilled labor1: Source: KPMG Global Construction Survey 20152: Source: McKinsey Construction Productivity Imperative, 20153: Source: “Can we fix it?: The construction industry’s productivity problem”, Economist, August 17th 2017

OUR WORLD IS UNDERGOING A FUNDAMENTAL SHIFT TO THE NEW…

4Copyright © 2019 Accenture. All rights reserved.

NEW WORLDInformation abundant

Dynamic networks

Collaborate to win

OLD WORLDInformation scarce

Static hierarchies

Compete to win

Individual productivity

Focus on planning ahead

Efficiency of process

Collective value creation

Experiment, learn and respond

Effectiveness of outcomes

… AND DIGITAL IS ACCELERATING THIS SHIFT IN INDUSTRY EXPONENTIALLY


Mainframe

Client-server & PCs

Web 1.0 ecommerce

Web 2.0, cloud, mobile

IoT & smart machines

Artificial intelligence

Quantum computing

Big data, analytics, visualization

To

da

y

1950 1960 1970 1980 1990 2000 2010 2020 2030

A.I

1964: System/360

Server/Host1972: SAP

1977: PC

1991: Public Internet

1994: Amazon

1990: System/360

1999: Saleforce.com

2005: Web 2.0

2006: AWS

2008: iPhone

Public Cloud Mainstream

1950: Turing Test

Quantum

1969: ARPANET 1997: Big Data 1999: IoT, M2M

2010: Self Driving Cars

2007: IBM Deep Blue

2014, IDC: 4.4 Zettabytes of Data

2010: Sales of PC Peak

2016: Pokemon Go

TO CAPTURE TRAPPED VALUE, COMPANIES NEED TO ADOPT A DISCIPLINED AND PROGRAMMATIC APPROACH TO CHANGE


Rotation to the New is a deliberate and perpetual journey, not a single event

TRANSFORM THE CORE BUSINESSTo drive investment capacity…[What is required just to stay viable? What is required to increase profits?]

GROW THE CORE BUSINESSTo sustain the fuel for growth… [What is required to drive top-line growth in the core business?]

SCALE THE NEW BUSINESSESTo be responsive to obsolescence of old businesses… [How to build an Innovation Architecture into the business that is reflective of its own specific S-Curve?]

PIVOT WISELYTo get the timing, scale and direction of investments right… [How to manage investment processes and capital allocation over time in the core business and in the new business?]

Ente

rpri

se V

alu

e

Re

leas

e

Time

DIGITAL SUPPORTS BUSINESS TRANSFORMATION BY CREATING VALUE AT SCALE


Unleashing the power of your people and culture to enable change (they want to experience better ways to work)

Distributed innovation on the existing operating model

Leadership participation in applying industry skills to imagine the future and commitment to a smart pivot at pace

Digital is an ecosystem effect so look for and adopt good ideas and solutions from others

WE ARE ENTERING THE INDUSTRY X.0 ERA, CONVERGING INFORMATION AND OPERATIONAL TECHNOLOGY

1970 –RECENTINDUSTRY 3.0Electronics and IT for automation of production and front/middle/back office

TODAYINDUSTRY 4.0Cyber physical production systems

20TH CENTURYINDUSTRY 2.0Mass production based on the division of labor and powered by electrical energy

18TH CENTURYINDUSTRY 1.0Mechanical production powered by water and steam

TOMORROWINDUSTRY X.0


RECOGNIZED AS WORLDWIDE

LEADER BY INDUSTRY ANALYSTS

YEARS OF EXPERIENCE

IN DESIGN, MANUFACTURE AND SUPPORT

INDUSTRY X.0PROFESSIONALS

#1 25+ 10,000+


INDUSTRY X.0THE FUTURE OF MAKING THINGS BETTER


DESIGNENGINEER

MANUFACTURECONSTRUCT

MAKEOPERATEDELIVERSERVICESOURCE

OIL & GASCHEMICALS

MININGPOWER GENERATION

THINGSCITIES

TRANSPORTATIONMEDICAL TECH

SERVICES

ON DEMANDFASTER

SMALLERSAFER

BETTERCLEANERCHEAPER

SUSTAINABLESMARTER


DOLLARS OF E&C CAPEX UNDER

INFLUENCE

$8BGLOBAL CAPITAL

PROJECTS CLIENTS

PRACTITIONERS GLOBALLY

120+ 1,000+


HOW MIGHT WE LEVERAGE DIGITAL TO TRANSFORM CAPITAL PROJECTS?

DIGITAL CAPITAL PROJECTS UNLOCKS THE POWER OF INNOVATION IN THE FACILITY LIFECYCLE


• untangles complexities in the engineering & construction process

• optimizes budgets, resources, and timelines

• increases the ability to innovate through the facility lifecycle

▪ Break down inherent barriers and gaining more control to influence productivity

▪ Create the digital ecosystem across partners, contractors, subcontractors and suppliers

▪ Manage information across multiple channels including IT/OT, workflow, communication

▪ Empower people to make informed decisions and supplementing the workforce’s capability and capacity

REIMAGINING THE WAY CONSTRUCTION PROJECTS ARE EXECUTED


TRANSPARENT

REAL-TIME

COLLABORATIVE

PREDICTIVE

INTELLIGENT

CONVERGENT TECHNOLOGIES ENABLE DIGITAL CAPITAL PROJECTS

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Cloud

IIOT

Mobile Applications

Data Mining and Advanced Data Analytics

Predictive Analysis

Artificial Intelligence and Machine

Learning

Advanced Process Automation

Robotics and Robotic Process Automation

(RPA)

Video Analytics and Drones



DIGITALIZATION OF CAPITAL PROJECTS HELPS ADDRESS KEY CHALLENGES

Time to Value

Design Reuse

Standards Simplification

Lean Construction

LifecycleValue

GlobalDelivery

Digital EngineeringA well synchronized platform aligning data across multiple project stakeholders and project lifecycle phases to build a digital model that ensures streamlined processes, better interoperability and improved data integrity

Digital Project Supply ChainCloud based solutions to support contracting and procurement strategy enhanced with collaboration, analytics and mobility services

Digital ConstructionThe use and application of digital tools to improve the process of delivering and operating a safer, more efficient and more collaborative built environment

Digital Project Management & ControlCloud solutions with supporting services for project controls, consolidating portfolio data with enhanced analytical and collaborative tools

CAN ADDRESS…….

…LEVERAGING DIGITAL ENABLERS

…BY DEFINING A DIGITAL CAPITAL PROJECT

Digital Thread

Digital Twin

Digital Worker

Robotics

IoT Integration

Data Driven Insights


KEY ENABLERS TRENDING IN INDUSTRY

DigitalThread

Digital connection of data and information throughout the capital project lifecycle

Robotics

Both virtual software and physical robotics enabling automated

Digital Twin

Digital replica of physical asset that lives and evolves over its lifetime

IoTIntegration

Analyze structured and unstructured data within and across projects

Digital Worker

Connecting engineers, supervisors, field workers and data

Data driven Insights

Analyze structured and unstructured data within and across projects


DIGITAL IS DISRUPTING ESTABLISHED APPROACHES AND ACCELERATING INNOVATIVE VALUE-CREATION IN CAPITAL PROJECTS

What tools people use in the work site…

How entire processes are executed…

Where applications are hosted and data is stored…

Where people work…

How technology and services are bought…

Who does the work…

Who makes the decisions…

Which players are involved in the value chain…

How teams communicate and collaborate…

DIGITAL THREAD DIGITAL TWIN

DIGITAL WORKER

ROBOTICS

IOT INTEGRATION

DATA DRIVEN INSIGHTS

Digital Disruptors

DIGITALLY ENABLED CONSTRUCTION SITE


“Smart” Machines

Real-Time Inventory Tracking

Intelligent Vehicles / Telematics

Jobsite Human Resources

Mobile Field Force

Interactive Job Trailer

Environment and Safety

Project Control and Analytics

Video Analytics

BIM/Asset Lifecycle Management

Autonomous Quality

Digital tools and techniques to accelerate innovation, reduce risk and create value in large capital projects

INDUSTRY X.0THE FUTURE OF MAKING THINGS BETTER


DESIGNENGINEER

MANUFACTURECONSTRUCT

MAKEOPERATEDELIVERSERVICESOURCE

OIL & GASCHEMICALS

MININGPOWER GENERATION

THINGSCITIES

TRANSPORTATIONMEDICAL TECH

SERVICES

ON DEMANDFASTER

ON TARGETSAFER

BETTERCLEANER

EFFICIENTLYSUSTAINABLE

SMARTER

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CONSTRUCT PLANTSEFFICIENTLYTransform field processes with digital forms, mobile and wearable devices, and digital workflow tools

• Reduce rework (due to double entry, quality errors, etc.)

• Enhanced collaboration and improved decision making


…to the Connected Worker

From Manual, Paper Driven Processes…

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ENGINEER PLANTSFASTERRapidly extract engineering information from legacy content

• Computer vision and text analytics to extract information

• Use to jump start brownfield projects, reliability improvements, data handover, cleanup, etc.

• Self learning AI to continuously improve


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CONSTRUCT PLANTSSAFERCreate safer work environment during heavy lifts

• Highly precise position tracking of workers and load

• Integration with crane telemetry

• Increases awareness of the cone of exposure


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CONSTRUCT PLANTSEFFICIENTLYIncrease efficiency and transparency site operations

• Insights, alerts surfaced from previously unseen data to site supervisors in real-time

• Individual and aggregate data to drive continuous improvement and efficiency


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MANAGE PROJECTS BETTERIncrease productivity with timely identification of issues

• Daily scanning to capture reality in field

• Images captured via robot/drone or field worker cameras

• Estimate progress and inspect for quality issues



GETTING STARTED


WHAT DRIVES INNOVATION SUCCESS

TTALENT

x RRESOURCES

PER COLLISION

CCOLLISIONS

PER TALENT

IMPACT

PER RESOURCE

Ix x

Skillsetthe right, technical skills

Mindsetinterest in innovation

Diversityexposed to different world views

Densitycritical mass of talent

Culturein the right environment

Partnersconnected to outside world

Capitalaccess to funding

Sponsorshipnon-financial support

Infrastructuretools needed to test ides

Skillsetproject delivery

Mindsetfinal solution roll-out

Communicationmarketing innovation success


IDENTIFY OPPORTUNITIES

DESIGN & DEPLOY TO PROVE VALUE

SCALE TO UNLOCK ENTERPRISE VALUE

1 2 3

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PROCESS• Assessing impact on processes

(complete / partial elimination or redesign)

VISION• Vision and roadmap• Flexible roadmap• Quick wins that capture

benefits built into strategy

KEY SUCCESS FACTORS FOR DIGITAL CAPITAL PROJECTS


FINANCING• Managing around market conditions • Well defined business case

TECHNICAL• Understanding existing gaps that

need to be filled in current capabilities (e.g. data quality / gaps)

• Recognize master data management importance

ORGANIZATION• Integrated governance• Clear ownership • Senior champion• Understanding organizational impacts • Manage competing initiatives• Site alignment / pull


THANK YOU

ANDY WEBSTERMANAGING DIRECTOR – INDUSTRY [email protected]

mailto:[email protected]

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Industry 4.0 is the platform on which 12 digital technologies meet the manufacturing shop floor to operate the plant more efficiently and more securely:

Accenture has been nominated Top Company for excellence in Industry 4.0 Innovation and Execution

Accenture has integrated several digital initiatives, such as blockchain, security, AI, etc., with Industry 4.0 offerings along with the capabilities of a number of acquired organizations specializing in these areas. Accenture

Industry 4.0 integrates the expertise of more than 10,000 professionals.

Accenture

IBM

HCL

Infosys

Wipro

TCS

L&T TS

Altran

Atos

Cognizant

Tech MahindraGenpact

WINNER CIRCLEHIGH PERFORMER

S

HIGH POTENTIALS

EXECUTION POWERHOUSE

Excellent in Innovation and ExecutionInvesting in Innovation

ACCENTURE TOP COMPANY FOR EXCELLENCE IN INDUSTRY 4.0 INNOVATION AND EXECUTION


DIGITAL ENGINEERING & CONSTRUCTION

DIGITAL ASSET

DIGITAL WORKER

DIGITAL PRODUCTION

DIGITAL VALUE CHAIN

OPTIMIZATION

Manufacturing Internet of Things

Data Analytics

Video Analytics

Automation

Digital Clone

Virtual Reality

3D Printing

Artificial Intelligence Augmented Reality

Robots Cybersecurity

Cloud

Building all Capabilities Execution is ahead of Innovation

WE PUT INNOVATION AT THE CENTER OF OUR CLIENT RELATIONSHIPS


Our Innovation-led architecture is able to address innovation needs across all layers of client’s organizations

RESEARCH VENTURES LABS STUDIOS INNOVATION CENTERS

DELIVERY CENTERS

Trends Investment & Open Innovation

Research & Development

Solution Innovation

Use Case & Assets

Industrialization

Ideate through thought

leadership

Shape Emerging

technologies

Prototype through applied

R&D projects

Build with speed and agility

Re-usewith clients

Industrialize sale & delivery

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ACCENTURE INDUSTRY X.0 –BUILDING ON OUR SUCCESS IN INDUSTRY

LEADING MARKET

POSITIONING

UNMATCHED INDUSTRYEXPERTISE

ECOSYSTEM OF STRATEGIC

ALLIANCES

CULTURE OF PRODUCT

INNOVATION & DESIGN


Documents

Reinvent possibility with industry x - JEF...Accenture has integrated several digital initiatives, such as blockchain, security, AI, etc., with Industry 4.0 offerings along with the