RESOURCES INDUSTRIES

DIGITAL
TRANSFORMATION
RESEARCH
Copyright © 2017 Accenture. All rights reserved.
INTRODUCTION

The transformational value that digital technologies offer to businesses is currently underexploited.
This is a missed opportunity  and the leading businesses of the future are those that have, or
will have, fully integrated digital strategies. The technology C-suite has valuable skill sets to help
bring together the disparate components of an enterprise and provide the direction needed to
deliver successful technology transformations leading to cohesive, organization-wide digital
strategies.

To better understand the key change agents for Resources industries in this context, more than 200
senior technology leaders including Chief Information Officers (CIOs), Chief Digital Officers (CDOs)
and Chief Technology Officers (CTOs) from the chemicals (53), energy (77), metals/mining (18) and
utilities (56) industries participated in our global digital transformation survey.

The key findings for chemicals from the research are shared in this presentation and provide
valuable insights into current and future transformational technology trends and plans.
*This research primarily focused on companies with turnovers of US$5 billion or more. However, in order to ensure a minimum of 50 interviews with companies in the chemicals
sector, a small number of interviews were conducted with companies with turnover between US$2.5 billion to US$5 billion. For the purpose of this research “Resources industries”
were defined as chemicals, energy, metals, mining and utilities.

Copyright © 2017 Accenture. All rights reserved. 2

BACKGROUND ON THE RESEARCH

Respondents:
Questionnaire-led online survey with 53 senior technology executives including CIOs, CDOs and
CTOs from chemicals in 16 countries
Fieldwork: Between August and September 2016
Europe: Denmark, France, Germany,
Ireland, Norway, Spain, Sweden,
Switzerland, United Kingdom
United States

CIO (Chief Information Officer) /

Head of IT 51%
Russia

IT Director 27%

CTO (Chief Technology Officer) 19%

Middle East: UAE

CDO (Chief Digital Officer) 4%
Asia-Pacific:
Latin America: Australia, China,
Brazil, Mexico India, Japan,
Singapore
Note that the base size for metals/mining companies is low (n=18), so findings should be interpreted as indicative only.

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INVESTMENTS IN DIGITAL TECHNOLOGIES
ACROSS THE CHEMICAL INDUSTRY ARE
GROWING SLIGHTLY FASTER THAN THE
RESOURCES AVERAGE

Chemicals Energy Utilities Metals/Mining**

of executives say that the size of their

investments in digital technologies has
82% increased in the past two years 85% 83% 73% 89%
Digital services/application design and robotics/automation
have been adopted by 47%* of chemical companies

believe digital technologies will have a

80% positive impact on their company over 81% 82% 75% 89%
the next five years

* These were the highest of 9 IT capabilities and processes measured

** Note that the base size for metals/mining companies is low (n=18), so findings should be interpreted as indicative only.
Base: All respondents (204), Chemicals (53)

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CUSTOMER ANALYTICS AND APPS OFFER MOST
POTENTIAL FOR THE CHEMICAL INDUSTRY – BUT
THIS IS ALSO THE CAPABILITY MOST IN NEED OF
IMPROVEMENT

Digital technologies offering most potential for

business transformation over the next five years
Digital capabilities most in need of improvement
(% indicating fair amount/ a lot of improvement
32%
needed) 25% 25%

23%
23%
30%
26%
25% 53%
49% 49%

28% 30% 34%

21% 25%
19%
6%
Other digital customer Mobility for the Artificial intelligence Cybersecurity Operational analytics Social media tools Mobility to interact Platforms upon which Customer analytics
channels, e.g web workforce and applications and applications to with customers (web, to build shareable and applications
based interaction or interact with apps, mobile web) digital capabilities,
apps customers like cloud solutions
and app marketplaces
Base: All respondents (204), Chemicals (53)

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MOBILITY IS THE TECHNOLOGY ADDING MOST
VALUE IN CHEMICALS TODAY – BUT OVER THE
NEXT FIVE YEARS THIS WILL BE OVERTAKEN BY
INTERACTIVITY
Which technologies are adding / expected to add most value today / over the next five
years? (Single response for each; only top two today / future shown)
CHEMICALS Utilities
Mobility 1 Today Interactivity
1 Today
Interactivity 1 Future
Analytics 1 Future
Cybersecurity

Cloud Artificial Intelligence

Energy Metals/Mining*

Cybersecurity 1 Future Mobility 1 Future

Interactivity 1 Today
Cloud 1 Today
Cybersecurity 1 Future
Analytics
Cloud

0% 5% 10% 15% 20% 25% 30% 35% 40% 0% 5% 10% 15% 20% 25% 30% 35% 40%
Base: All respondents (204)
*Note that the base size for metals/mining companies is low (n=18), so findings should be interpreted as indicative only. Today Future

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AS MARKET COMPLEXITY RISES FOR CHEMICAL
COMPANIES, EXISTING SKILLS FOR DIGITAL
TRANSFORMATION APPEAR TO BE STRETCHED
Market complexity has increased more in chemicals over the past two years compared with
the Resources average

94%
Percentage reporting an increase in complexity
(past 2 years)

Security landscape 69% of chemical executives believe they do not

79%
have access to all the right skills within their
Technology landscape 67% organization for an effective digital
75%
transformation
IT/OT convergence and 65%
integration 72%

IT delivery model as a service 61%

64% 74%
60%
Data landscape
62%
Resources of chemical executives believe their
Chemicals company is not making the investments in
Base: All respondents (204), Chemicals (53)
recruitment and training it needs
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RESPONSIBILITY FOR IDENTIFYING NEW DIGITAL
TRANSFORMATION OPPORTUNITIES IN
CHEMICALS SITS PRIMARILY WITH CTOS AND
CIOS
Who within your company is responsible for identifying new digital transformation
opportunities within the back office/enterprise functions? (Multi response)
Chief Technology Officer (CTO) 62%
55%

Chief Information Officer (CIO) 40%

38%

Chief Digital Officer (CDO) 26%

23%

Other C-suite 26%

21%

Chief Security Officer 23%

17%

Chief Marketing Officer (CMO) 11%

9%

Chief Data Officer 13% Resources

8% Chemicals
Base: All respondents (204), Chemicals (53)

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NEW APPROACHES TO EVALUATE THE BENEFITS
OF DIGITAL INVESTMENTS WOULD MOST HELP
TRANSFORMATION EFFORTS IN CHEMICALS
Organizational changes that would help most in achieving digital transformation objectives
Metals/
Chemicals Energy Utilities Mining*

New approaches to evaluate the benefits of digital

technology investments 23% 28% 21% 21% 17%

Better governance of technology investments 21% 21% 26% 18% 11%

Better technology awareness among senior

executives 20% 17% 17% 27% 22%

Better alignment of business planning and

technology planning 19% 17% 21% 13% 33%

Ability and willingness to redesign business 17% 14% 20% 17%

processes to leverage digital technologies 17%

Base: All respondents (204), Chemicals (53)

*Note that the base size for metals/mining companies is low (n=18), so findings should be interpreted as indicative only.

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IOT* IS CONSIDERED A KEY LEVER OF DIGITAL
TRANSFORMATION THAT WILL BENEFIT A WIDE
RANGE OF BUSINESS AREAS IN CHEMICALS
Business areas that IoT will add most value to (next 2 years)

IoT based customer services 48%

53%

Sales and marketing functions 47%

53%

92%
Supply chain 50%
51%

Asset monitoring 41%

51% of chemical executives consider
Operations 45% IoT as a major lever of digital
49%
transformation
Innovation and product 44%
development/improvement 47%

Command centers 36%

22%
Resources
Base: All respondents (204), Chemicals (53)
*Internet of Things Chemicals

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CULTURAL BARRIERS AND ORGANIZATIONAL
SILOS ARE THE BIGGEST BARRIERS TO IOT
INTRODUCTION FOR CHEMICAL COMPANIES
Main barriers to introduce IoT in the organization
Chemicals Energy Utilities Metals/Mining*

Cost 42% 42% 41% 45% 39%

Lack of internal ownership 41% 44% 36% 40% 56%

Lack of a clear strategy/business case 39% 34% 42% 42% 39%

Cultural barriers and organizational silos 39% 46% 35% 40% 33%

Lack of skills 39% 34% 41% 40% 44%

Cybersecurity threats 36% 26% 43% 36% 39%

Industry standards 36% 34% 41% 34% 33%

Technology availability and maturity 36% 38% 36% 40% 22%

Process barriers (time to adopt new

processes) 35% 40% 31% 38% 28%

Base: All respondents (204), Chemicals (53)

*Note that the base size for metals/mining companies is low (n=18), so findings should be interpreted as indicative only.

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COST IS THE PRIMARY BARRIER TO THE
ADOPTION OF NEW TECHNOLOGIES IN
CHEMICALS, FOLLOWED BY LACK OF INTERNAL
OWNERSHIP
Main barriers to adoption of new digital technologies
Chemicals Energy Utilities Metals/Mining*

Cost 43% 47% 42% 36% 56%

Lack of a clear strategy/business case 41% 43% 42% 39% 33%

Cybersecurity threats 36% 32% 39% 36% 39%

Cultural barriers and organizational silos 36%
38% 30% 45% 28%
Lack of internal ownership 35%
45% 29% 32% 39%
Lack of skills 33%
26% 36% 39% 22%
Awareness of technology relevance 33%
38% 26% 43% 17%
Deployment complexity 33%
43% 29% 27% 39%
Technology availability and maturity 32%
Process barriers (time to adopt new 32% 35% 30% 28%
processes) 32%
Base: All respondents
*Note that the base size for metals/mining companies is low (n=18), so findings should be interpreted as indicative only.

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LAGGING BEHIND COMPETITORS IS THE NUMBER
ONE TECHNOLOGY CONCERN FOR CHEMICAL
COMPANIES, FOLLOWED BY CYBER THREATS
Technology risk current areas of concern
Chemicals Energy Utilities Metals/Mining*

Cybersecurity threats 20% 19% 25% 14% 22%

Regulatory risk 18% 11% 22% 18% 17%

23%
Lagging behind competitors in
digital/technology capabilities 15% 10% 16% 11%

Environmental risk 15% 19% 14% 18% -

Health and safety risk 11% 8% 12% 9% 22%

Physical security threats 11% 11% 8% 14% 11%

Reputational risks 10% 9% 9% 9% 17%

Base: All respondents (204), Chemicals (53)

*Note that the base size for metals/mining companies is low (n=18), so findings should be interpreted as indicative only.

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PROCESS EFFICIENCY IS CITED AS THE PRIMARY
OBJECTIVE OF DIGITAL TECHNOLOGY
DEPLOYMENT IN CHEMICALS, FOLLOWED BY
CUSTOMER SATISFACTION
Primary objectives for digital technologies
Chemicals Energy Utilities Metals/Mining*

Process efficiency 25% 28% 25% 20% 33%

Cost control 24% 21% 26% 14% 50%

Customer satisfaction 19% 25% 21% 14% 11%

New product/service
development 18% 21% 16% 23% 6%

Regulation compliance e.g.,

health, safety and environment 13% 4% 12% 29% -

Base: All respondents (204), Chemicals (53)

*Note that the base size for metals/mining companies is low (n=18), so findings should be interpreted as indicative only.

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WANT MORE INFORMATION ABOUT THE SURVEY?
HAVE QUESTIONS? PLEASE CONTACT US.

Senthil Ramani
Managing Director – Chemicals and Natural Resources,
Global Technology Lead
Accenture

Visit Read Follow

@AccentureChems
www.accenture.com/chemicals www.accenture.com/chemicalsblog
Accenture Chemicals

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ABOUT
ACCENTURE
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