As companies in the Asia-Pacific (APAC) region race to shape their digital futures, they will increasingly rely on fast-evolving digital technologies such as artificial intelligence (AI), big data, blockchain and robotics, and more. However, merely doing so will not be enough: To win, companies must go beyond implementing tech in a piecemeal fashion –
and combine what works best for them, in comprehensive efforts to change themselves into truly digital businesses. They must completely reinvent their value chains, production, and operating models. So, how do they do it?
Enter Industry X.0, an action plan for making the most of technological change and profiting from it. Industry X.0 is an open, dynamic and inclusive approach to drive the digital reinvention. Its core idea is to enable companies to embrace constant technological change. Following such an approach will enable Asian companies to transform their
core businesses while growing into new ones—what we call “Leading in the New.”
The Industry X.0 opportunity in APAC
APAC’s companies have every chance to win the race for leadership in the digitized, Internet of Things-enabled business: The overall “digital readiness” within the region is relatively high, with digitally savvy workforces and national agendas ranging from Singapore’s Smart Nation to China’s Made in China 2025, not to mention the Japanese edge on new technologies.
Companies across all of APAC recognize that digital technologies are imperative to drive down costs or forge new revenue streams. Their executives understand the value of technology integration, and they see how digitizing companies the Industry X.0 way enables them to seize the many opportunities available in the region, and the world. Many, however, are not getting the value they expect from their digital investments. Of the 300 executives from companies we spoke to within Asia Pacific, 82% believe their businesses should digitize in a manner that reaches beyond the ideas of Industry 4.0 and enables both higher efficiency and new growth from new experiences and offerings.
But only 13% said they were getting these results. That’s both a low number – and an indicator of the extraordinary potential in the APAC region.
Putting together the right technology mix
The technology mix for lowering costs differs from the combination best suited to drive top-line growth. Our research reveals that combining five digital technologies in particular—autonomous vehicles, augmented reality (AR) and virtual reality (VR), big data, machine learning, and mobile computing—could help APAC companies reduce costs by 27% per employee.
A slightly different mix of autonomous robots, mobile computing, autonomous vehicles, 3D printing, and machine learning—could help companies in the APAC region gain additional market capitalization of over 28% on average. How technologies should be combined will vary across industries and will most certainly change over time. But regardless of industry, the impact on cost savings in APAC companies will prove significant.
APAC Industry X.0 adopters
Industry X.0 businesses are best positioned to “Lead in the New” because they are masters at combining digital technologies: the key to new levels of efficiency, sources of growth and customer experiences. Becoming an Industry X.0 business is a journey, and many APAC companies have already begun this transformation.
It requires them to take steps to become smart, connected, living and learning. And it culminates in the digital reinvention of industry. APAC companies that embark on this journey today will emerge as the digital winners of tomorrow.