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The trillion-dollar opportunity for the industrial sector: How to extract full value from technology
Article – McKinsey Quarterly
Shaking up the value chain
Article - McKinsey Quarterly
Using people analytics to drive business performance: A case study
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Transformation requires careful thought about the activities that are core to the business—and those that can be outsourced to suppliers.
Make and buy
The opportunity to apply technology spans the industrial value chain.
Find the value
Article
The trillion-dollar opportunity for the industrial sector
Dive deeper
Dive deeper
Performance at global industrial companies has been flatlining for years, but new innovations in data, connectivity, and cheap processing power and storage may soon jump-start performance.
Value explosion
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What will happen when industrial companies fully apply digital, analytics, and IoT technologies to their businesses? An upsurge in innovation—and value.
Industrial tech
In this edition:
Sparking creativity in teams:
An executive’s guide
Article – McKinsey Quarterly
Enable yourself
How can industrial companies best capture the value promised by new technologies?
Potential industrial-sector value gains from tech enablement
Dive deeper
Dive deeper
Shaking up the value chain
Article – McKinsey Quarterly
Not all industries perform equally—they follow a power curve, with a long, hanging tail and a high peak.
4–9%
3–10%
9–22%
Revenue
growth
300–900
300–700
800–2,000
Margin expansion
TRS expansion
In $ billion:
166–477
0
74–298
40–111
0
280–887
Revenue growth
Margin expansion
Revenue growth
Margin expansion
8–25
198–499
4–6
44–63
61–122
315–715
Innovating and developing products and services
Making and delivering
Selling
Servicing
Running the corporation
Total
Potential industrial-sector value, $ billion
Dive deeper
Dive deeper
The trillion-dollar opportunity for the industrial sector
Article
Insource, for now
For example
Integrated planning, integrated logistics
For example
Marketing, subsea drilling and equipment
Potentially outsource
For example
Raw-material transport, inventory management
Potentially outsource
For example
Back-office functions such as payroll
Outsource
High
Low
Criticality to the business
Low
High
Supplier’s performance advantage
Example: energy and materials companies
Innovating and developing products and services
Running the corporation
Servicing
Selling
Making and delivering
Running the corporation
For example
Modernizing the finance function
Optimizing workforce deployment
Servicing
For example
Managing customer demand
Optimizing field labor
Selling
For example
Enhancing presales and discovery through digital marketing
Transforming customer experience
Making and delivering
For example
Enhancing forecasting and demand planning
Digitizing manufacturing and assembling
Innovating and developing products and services
For example
Extracting value from connected products
Creating data-enabled business models
Dive deeper
Dive deeper
The trillion-dollar opportunity for the industrial sector
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