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Companies intend to invest 5% of income from digital sales annually
Companies intend to invest about 5% annually of the income obtained from digital sales at world level - 907 billion dollars- a PwC study shows.
Leaders of industrial companies digitalize essential activities in their own vertical chain of value and in relations with partners at horizontal level in the supply chain. Moreover they improve their product portfolio introducing digital functions and innovating data services. At world level, companies intend to invest about 5% of the income obtained from digital sales annually in the digitalization process. Based on opinion polls made in industrial sectors, 5% of incomes obtained from digital sales corresponds to an overall investment of 907 billion dollars, according to the PwC Industry study: Building the digital enterprise, in which over 2,000 companies in 9 industrial sectors of 26 countries were questioned.
According to the source, these investments will focus on the development of digital technologies such as sensors or connection devices, software and applications like processing systems.
managers of analysed companies estimate annual cost drops of 3.6% on the average and additional incomes of 2.9%.
According to PwC, over 80% of companies expect that data analysis methods will have a significant influence on decision making processes in the next 5 years.
The study also shows that problems identified by companies analysed in implementing Industry 4.0 are rather those that lack culture, outlook or domestic formation in digital field, as well as the lack of specialists rather than those concerning purchasing the necessary technology.
About 40% of companies participating in the opinion poll are counting on the expertise of data analysis employees but do not have departments devoted to such tasks.
The study is based on research made over November 2015 - January 2016, involving over 2,000 CEOs from industrial product companies from 26 countries. Most participants were digitalization managers and other executive managers with high responsibilities in their companies in strategies and activities within the project Industry 4.0. Results were average compared to GDP per country to ensure balanced perspectives on global results.
Industry 4.0 is based on full digitalization of all physical activities and processes as well as integration in digital ecosystems together with partners in the value chain.