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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
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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
Revenue
growth
Value explosion
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:
Enable yourself
How can industrial companies best capture the value promised by new technologies?
A quick briefing in five—or a fifty-minute deeper dive
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Potential industrial-sector value gains from tech enablement
Potential industrial-sector value, $ billion
Example: energy and materials companies
Dive deeper
Shaking up the
value chain
Article – McKinsey Quarterly
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.
Margin expansion
TRS expansion
300–900
300–700
800–2,000
In $ billion:
4–9%
3–10%
9–22%
Revenue growth
Margin expansion
Revenue growth
Margin expansion
Innovating and developing products and services
Making and delivering
Selling
Servicing
Running the corporation
Total
166–477
74–298
0
40–111
0
280–887
8–25
198–499
4–6
44–63
315–715
61–122
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The trillion-dollar opportunity for the industrial sector
Article
Criticality to the business
High
Low
Low
High
Supplier’s performance advantage
Insource, for now
Potentially outsource
Potentially outsource
Outsource
For example
Integrated planning, integrated logistics
For example
Marketing, subsea drilling and equipment
For example
Raw-material transport, inventory management
For example
Back-office functions such as payroll
Innovating and developing products and services
Running the corporation
Making and delivering
Servicing
Selling
Dive deeper
The trillion-dollar opportunity for the industrial sector
Article
Innovating and developing products and services
For example
Extracting value from connected products
Creating data-enabled business models
Making and delivering
For example
Enhancing forecasting and demand planning
Digitizing manufacturing and assembling
Selling
For example
Enhancing presales and discovery through digital marketing
Transforming customer experience
Servicing
For example
Managing customer demand
Optimizing field labor
Running the corporation
For example
Modernizing the finance function
Optimizing workforce deployment
