Perspective: Digital Transformation in the Asset-Driven Industries — 2016 Supply Chain Insights

Perspective: Digital Transformation in the Asset-Driven Industries — 2016 Supply Chain Insights

This IDC Manufacturing Insights Perspective looks at the recent IDC's 2016 Supply Chain Survey results as they pertain to the asset-driven industries (AOVC = asset-oriented value chain: chemicals, pulp and paper, and metals) and is a companion piece to both the overall supply chain survey insights report and the additional subsegment reports within manufacturing that we define as asset-, brand-, technology-, and engineering-oriented value chains. The focus of this year's Supply Chain Survey was to begin to get a practical understanding of where companies are headed in terms of the adoption of digital technologies and the areas where we would expect to see potential disruptions.The notion of digital disruption is a provocative one that IDC Manufacturing Insights has been championing for the past few years following the introduction of our 3rd Platform concept in 2013, and the prediction that by 2018, fully "one-third of all industry leaders will be disrupted by digitally enabled competitors." When one considers that 52% of the Fortune 500 companies listed in 2000 are no longer in business, this prediction strikes a rather ominous note. Defined as "the approach by which enterprises drive changes in their business models and ecosystems by leveraging digital competencies," IDC Manufacturing Insights views digital disruption through the lens of a number of distinct transformational areas, as illustrated in Figure 1.

In This Perspective
Implications from the Survey for Asset-Oriented Industries
Quality and Cost, Drivers of Change, and Priorities
Digital Disruption
Guidance/Actions to Consider
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