Accenture Chemical Report Mobility

8/11/2019 Accenture Chemical Report Mobility

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Mobility in theChemical IndustryJuly 2013

Accenture Mobility


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The chemical industry is increasingly challenged

Source: Accenture ResearchCopyright 2013 Accenture All rights reserved. 3

NewPlayers

APAC growth has been mostly organic. APAC share of global chemicals M&Adeclined 15 points in 1Q13 versus 1Q12,while EU share rose 15 points; NA up12points.

Cyclicalmarkets

Profits firmed; average EBITDA rose by3.2% in 1q13 versus the previous quarterand 4.7% from the same period the yearbefore.

Government

regulationsRegulatory changes; tax increases;Legislation to ban certain chemicals; USEPA under new leadership

Capitalprojects

Companies are focusing on capacityprojects with only the best economicpotential; US $19 trillion expectedinvestment globally up to 2035; dealingwith talent shortage, materials costsvolatility, cost and timing.

Sustainable

practicesEnergy reduction, biotech processes,green products, raw materials & sociallyresponsibility; Companies link toMegatrends related to growth, such as inthe food, electronics, biotechnology &alternate energy

Talentsqueeze

Know-how resides with a narrowing &aging workforce; chemicals not the 1stpreference for graduates; Innovationdepends on talent

Acquis it ionsM&A has stalled; Chemical M&A counts(>$50mm) were 14% down YTD April2013 from the same period a year ago.

Worldevents

Middle East tensions; natural disasters;US had an average of two billion-dollardisasters/yr. in the early1980s versus 9 inthe past five years.

Energyprices

Volatile oil prices; but declining from postrecession high by 27% in May 2013 (to$103/bbl) ;Fluctuated up to 40% over pastfew years. Low gas prices in North

America, with many consideringexpansions in olefins, methanol, ammoniaand gas-to-liquids.

GlobalizationCommodity growth in emerging regions;Developed regions require value add;Long term NA revival; NA chemical EBITgrew 7% (1Q13) over year ago, while EUdeclined 33% over the same period; APACrose 21%.


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The chemicals industry is embracing a variety oftechnologies to handle the challenges

Copyright 2013 Accenture All rights reserved.

Cloud Cloud is in its early adoption stage in theindustry, mainly used for: Reducing IT spending Supply chain optimization Customized Solutions New product innovation

Enterprise MobilityHelping the industry to be more efficient andproductive, which in turn helps toimprove revenues

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Analytics With many chemical companies spendingheavily on IT in the past few years, they arenow looking at analytics to help them makebetter decisions based on data capturedthrough various ERP systems


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Chemicals executives should consider enterprise mobility tohelp address some of these challengesEnterprise Mobility is increasingly focused on business process, usercategory and devices , and spread across a continuum defining theenterprise mobility landscapeEnterprise Mobility Landscape

Avionics and UAV Applications in Mobility Augmented Reality Maps

RuggedizedDevices

I Safe Devices Remote

Controlled Smart Phones

WiFi Network Mesh networks Online/Offline

Mode Solutions

Focus on ValueChain andShared ServicesProcess areas

DeliveryChannels acrossB2B, B2E, M2Mover and aboveexisting B2Cchannels

Value for differentUser Categoriesin Industry

Address IndustrySpecificfunctionalitiesand processaligned

Gamification Apps Kinect Based Virtualization Apps

What is enterprise mobility? Capturing and delivering information

@the point of need Integrating people, process and

technology elements to deliver business

functionality at the point of activity to adiverse user Objectives: Increase productivity and efficiency Decrease costs Improve customer serviceImplementing enterprise mobilityprovides many benefits for Chemicalsindustry: Real-time decision making Real-time collaboration On-the-move access to critical

information Asset tracking and management Improved productivity Safer working environment for workforce/

field force

Improved usage of businessapplications.Copyright 2013 Accenture All rights reserved. 5


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Chemical companies are migrating from stand-alone mobilitysolutions to those integrated with industry-specific enterprise systemsBy integrating mobility solutions into enterprise systems, executivesreap many benefits. The Mobility 101 Model depicts the componentsthat help companies become a m-transformed enterprise.

Mobility 101 Model

High PerformanceMobility

Mobility as productivity enhancer

Focus: value chain activities that directly impactproductivity, reduce costs through m-enablementand achieve faster response time

Mobility as revenue enhancer

Focus: value chain and strategy-led processeswhich help realize improved revenues, achievebusiness growth, improved stakeholderengagement

Mobility as new business model enabler Focus: transforming the business throughstrategic process enablement of new businessmodels, business model disruption, new productcreation

Copyright 2013 Accenture All rights reserved. 6


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How a typical mobility ecosystem works fora chemical company


Managers approve travel and vacation requests,time sheets, and expense reports

Purchasing Execution through Mobile Devicesenables the purchaseind department to carry outpuchasing functions on-the-go

Production Management Monitor the productionschedule and order management through mobiledevices

Warehouse staff check for inventory status andcreate purchase order through mobile device.

Project Management Track the schedules andresource allocation through mobile devices

Work Order Management : Mobility enablementwill enhance Plant & Equipment maintenanceeffectiveness.

Store Management enables the Store managersto mange GR, Invoices etc through mobile

Logistics: Track and trace RFID tagged assets-equipment, tools, raw material, work in progressand finished goods.

Pricing Management from mobile devices for salesrepresentatives and managers

Customer Management through mobileCRM applications

Order Management through mobile enables totrack and view sales orders for various customers

Employees can apply for travel expenses andsubmit timesheets through mobile

Monitor the plant staff for Health & Safety usingmobile devices

Supplier Management can be handled theroughmobile devices

Sourcing & Procurement

Marketing & Sales

Fulfillment


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Spending on mobility services and devices is increasing in thechemical industry


Note: Manufacturing & Natural Resources includes Chemicals, Metals, Mining, Energy

Source: Source: Gartner, Inc., Forecast: Enterprise IT Spending for the Manufacturing and Natural Resources Market,

Worldwide, 1Q13 Update, Kenneth F. Brant, et al, April 19, 2013.

IT Spending on Mobile Network Services

(2013-2017)(millions, USD)

0 5000 10000 15000 20000

2013 YR

2014 YR

2015 YR

2016 YR

2017 YR

Total IT Spending on Mobile Devices

and Tablets (2013-2017)(millions, USD)

0 500 1000 1500 2000 2500 3000

2013 YR

2014 YR

2015 YR

2016 YR

2017 YR

Natural Resources & Materials Heavy Industry Energy Resources & Processing Automotive


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Challenges quantifying the

business case. Quantifying actualdollar benefits of mobility remainsa challenge across organizationallines due to the complexity of theindustry.

Integration challenges.Integrating new and existing ITsystems can be complex.Convergence of OT & IT drivingOEM* play which is becomingimportant for integrated end-to-end solutions

Diverse mobility provider

landscape. Diverse set of mobilitylandscapes available creatingchallenges in terms of identifyingthe best approach for adoptingmobility

Business model for managedservices not well-established.Whether to own the mobilitysolutions or to opt for a managedservices model is a perennialcost factor related question forchemical companies.

IT department lockdown.

Possible challenges that mayoccur due to increasing supportcosts, compatibility issues andsecurity threats of employee-owned mobility devices by forcingemployees to use company-supplied systems andapplications, pose a mentalroadblock in mobility adoption

Yet, some chemical companies are hesitant to embracemobility

* OT: Operations technology

** OEM: Original equipment manufacturersCopyright 2013 Accenture All rights reserved. 9


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Those who adopt enterprise mobility early should gain strategicadvantageEnterprise mobility is still in its early stages across all industries, andthose who adopt enterprise mobility early should gain a strategicadvantage. Consider: Seeking opportunities for follow-

on value-adding projects tomobility initiatives. Mobilityprojects create much data thatcan be harnessed for betterdecision making.

Mobility solutions can act asdelivery accelerators to enhancethe benefits derived out ofexisting Industry productsaddressing different Lines ofBusinesses (LoBs)

Investing in capabilities tosupport an innovative mobilitypractice. Develop skills in avariety of platforms and devices.Form partnerships with mobiledevice manufacturers, platformproviders and applicationvendors, among others.

Setting up mobility labs. Theselabs should be both educationaland experiential.



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150On average, people look at theirmobiles 150 times day - onceevery six and a half minutes

650 millionThere were 650 million mobilesocial network users worldwide inDecember 2011, predicted todouble by 2016

1 in 5 Almost 300 million or 1 in 5smartphones worldwide will beNFC-enabled by 2014

2016 Application to person SMS texts(e.g. automated bank alerts) areexpected to overtake person toperson SMS texts in 2016

50 foldGlobal Long Term Evolution(LTE) connections will grow from10 million in 2011 to 500 millionin 2016

71%71 percent of enterprises createtheir own mobile apps

Mobility is here to stay take the lead

8 billionThe global mobile subscriberbase is expected to grow 8.8%annually from 20102015,reaching over 8 billionsubscribers

183 billionThe total number of mobile appsdownloaded forecast to growfrom 38 billion in 2011 to 183billion in 2015

81% Apps account for over 81 percentof online mobile traffic amongU.S. smartphone users



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Overview

Accenture mobility services for chemicals

Case studies

Contacts



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Accenture is focused on enabling its clients to achieve breakthroughgrowth throughout the rapidly changing mobile ecosystem

Re-Imagination of Supplier Management...

Automatically Work Dispatch Data Capture automatically Location Based Service

Manually GR/GI Manually Data Entry

Information exchange viaphones/paper based

Manual Contract Management

Manual sales ordermanagement

Intermediate statusupdates

Mobile Sales Force Automation enabling B2B

business

Re-Imagination of Inventory Management... Timely Construction Field

Logistic and Efficient InnerWarehouse Operations

Mobile SupplierRelationship Management

Mobile ContractManagement

Re-Imagination of Asset Field Force Manually Dispatch Manually Data Entry

Re-Imagination of Sales Force...

Then Now

Then

Then

ThenNow

Now

Now

Mobility is causing significant enhancements to existing long-standingindustry practices and is driving the business transformation



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Accentures Business Process Management (BPM) framework is thefoundation of the Mobility value proposition in chemicalsWhat is it?

A comprehensive industry knowledge database arranged in six layers.

The framework for chemicals covers our industry insights ranging from trends,business process models and application architecture models to differentpre-packaged chemical industry solutions.

Layers 3, 4 and 5 are our portfolio of industry-specific process assets andofferings.

How does it help?

The BPM framework helps our clients to accelerate process-ledtransformations.

BPM framework helps chemical executives focus on the core processelements of their business and can provide a clear roadmap for increasingmobility scope in chemical operation areas.

Chemical mobile asset development principles encompass some key areas:

We use our BPM framework to identify and define m-enabledprocesses

Process BPM ledmobility approach

Commonarchitecture layerthat can be crossleveraged

Commoninformation layerthat can be crossleveraged

Mobilegovernanceframework tomanageapplicationdevelopment

Commonengineeringapproach tobuilding scenarios

Industry-wide perspective

Strategy and Economics of HighPerformers

Operating Model

Industry Specific IT Frameworks& TechnologiesIndustry Specific Offerings(Solutions & Services)

Industry Specific Processes



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Logical Operating Model for chemicals and areas withm-enablement potential


Highlighted Capabilities have m-Enablement

potential to drive value.

1.Plan and ManageEnterprise

DevelopStrategic Plans

Provide Information TechnologyStrategy and Governance

Plan and ManageFinancial Performance

Provide Governanceand Manage Risks

Manage Portfolio

2 . O

p e r a t e

B u s

i n e s s

3.SupportServices

Process FinancialTransactions

Deliver InformationTechnology Services

Manage Facilities &Process Engineering

Develop HumanResources

Manage Contentand Data

Manage EnvironmentalHealth and Safety

Perform Sales &Operations Planning

Plan Supply andInventory

Balance Demand andSupply

Develop IntegratedProduction Plan andSchedule

Maintain PlanningProcessesDevelop Demand Plan

Conduct Research andDevelopment

Define R&DStrategy

Develop andLaunch NewProducts

ManageProcessDevelopment

Manage Product& ManageTechnicalSupport

ManageLicensing & IP

Provide OperatingServices

Provide Quality Assuranceand Testing Services

Operate Utilities

Market and Sell Products

Manage SalesChannels

Process andService SalesOrders

Manage CustomerRelationships

Develop Marketing &Customer Strategy

Manage Pricing andEstablish CustomerContracts

ManageOperations

Build or ExpandProduction Capability

ExecuteManufacturing

Optimize ProductionPerformance

Source RawMaterials

Develop RawMaterials Plan

Conduct RawMaterial Sourcing

Maintain ProductionCapability

PerformReliability

DevelopMaintenance Plans

Plan and ManageShutdowns

Schedule and ExecuteMaintenance

MonitorMaintenance

Source and SupplyGoods and Services

Perform StrategicSourcing

Execute TransactionalSourcing

Manage SupplierRelationships

Manage MRO stores andInventory

Manage Stakeholder Relations

High Potential Medium Potential Low Potential

Develop MarketInsight

Perform R&DandCollaboration

Plan and ManageSupply Chain Networkand Inventory

Develop Supply ChainNetwork Strategy

Plan and Manage Warehousesand Finished Inventory

Plan and ManageLogistics

RevenueEnhancer

ProductivityEnhancer


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How mobility can benefit chemical companies(by process category)

Process Category Mobility as Productivity Enhancer Mobility as Revenue Enhancer Mobility as New BusinessModel Enabler

Manage Operations Execute Manufacturing

Optimize Production Performance

Maintain ProductionCapability

Plan & Manage Shutdowns

Schedule & Execute MaintenanceWork

Monitor Maintenance

Plan and Manage

Supply Chain Network& Inventory

Warehouse Management

Inventory Management

Logistics Management

Source & Supply Goods& Services

Manage Supplier Relationships

Manage MRO Stores & Inventory

Market and SellProducts

Process & Service Sales Orders Manage Pricing and EstablishCustomer Contracts

Manage Sales Channels

Manage Customer Relationships

Sales Gamification

Shared Services Manage Environment, Health &Safety

Process Financial Transactions

Deliver IT Services

Develop HR

Virtualization Apps (Kinectbased Apps)



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Mobility solutions for the industryPetrochemicalsor chemicals

Mobility as Productivity Enhancer Mobility as Revenue Enhancer Mobility as New BusinessModel Enabler

Petrochemicals Plant / Asset Operations

Asset Management

Manage EHS

Workforce Management

Field Force Enablement

Shared Services (Human Resource,Finance, IT )

Mobile Supply Chain Collaboration Mobile Track & Trace

Mobile Analytics

Bring Your Own Device(BYOD) Program

Agrochemicals Plant / Asset Operations

Asset Management

Manage EHS

Workforce Management

Field Force Enablement

Warehouse Management


Sales Force Enablement

Mobile Supply Chain Collaboration

Mobile Track & Trace

Mobile CRM

Mobile Analytics

Bring Your Own Device(BYOD) Program

Specialty chemicals Plant / Asset Operations Asset Management Manage EHS

Workforce Management Field Force Enablement

Warehouse Management Inventory Management


Sales Force Enablement Mobile CRM Mobile Analytics Bring Your Own Device

(BYOD) Program



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Mobility use cases for chemical companies (1 of 2)Business Opportunity Mobility Application Enabling Component

Ad hoc analysis, reports, access to allinformation for effective decision making. Executive Dashboards SAP Business Explorer Mobile Analytics Environment

Mobile KPI Reporting and business analyticsproviding instant information for meetings withcustomers, suppliers and partners. Earlywarning app for Executives.

KPI Reporting Customized Applications

Enable sales representatives with up-to-dateinformation on customers, products,complaints, product availability etc.

Mobile/Technical Sales SUP based SAP CRM Mobile Sales

Additional industry-specific functionality

Mobile applications to help speed up salescycles by providing information at point ofactivity, through fast and effective order andsample management, and through the ability toprovide documentation to customers.

Mobile/Technical Sales SUP based SAP CRM Mobile Sales

Additional industry-specific functionality



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Mobility use cases for chemical companies (2 of 2)Business Opportunity Mobility Application Enabling Component

Enable Visibility of in-transit shipments andquick response to unexpected events; Mobileapps to determine substance conditions duringtransit, such as temperature, humidity, andothers.

Mobile Asset Management: Mobile logistics Tracking and Tracing Syclo based Asset Management Solutions

Mobile communication through smart phonesand scanners provide real-time visibility andupdates on shipment status and conditions.

Mobile Asset Management: Mobile logistics Tracking and Tracing

Syclo based Asset Management Solutions

Effective maintenance processes, enable assetor spare part information to be available atpoint of work. Mobile asset managementallowing data access and data entry anywhere,avoiding errors and speeding up the process.

Mobile Asset Management Syclo based Asset Management Solutions

Mobile apps allowing access to productinformation or storage locations and providevisibility across warehouse operations.

Mobile warehouse management providingaccess to information at the point of work,allowing companies to quickly deploy the right

resources to the right location.

Mobile Warehouse Management SAP Extended Warehouse Managementapplication

Customized Apps



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Implementation of mobility solutions in the

following areas can generate many benefits: Logistics: Track and trace RFID-tagged assets wouldincrease transparency in supply chain management andenhance visibility across the supply chain.

Analytics: Would enable precise monitoring of keybusiness parameters and dashboards would providereal-time insights, helping enable quick and effectivedecision making.

Asset management: Broadly covering work ordermanagement, inventory management, assets andstockyard management, m-enablement would enhancemaintenance effectiveness.

Workforce management: Could provide schedulingtechnology for efficient job planning, assignment dispatchand dynamic field connectivity, helping to enable efficientfield worker utilization and heighten responsiveness toad-hoc or emergency work situations. It would also allowflexible management of field worker availability,integrated directly to asset management.

Field force enablement: M-enabled field technicians canperform monitoring and maintenance work, helping toensure business continuity and reduce response time.

Regulatory compliance: Could simplify and help to moreaccurately report on regulatory compliance issues.

More detail: Mobility solutions for chemicals CRM: Could enhance customer experience and connect

it back to the business. Plant/asset operations: Wireless-enabled radio frequency

data-capture devices such as wands, scanners andimagers could provide easy access to mails,notifications, calls and approvalshelping to increaseefficiency.

Stockyard management: Barcode and RFID capabilitiesfor mobile inventory tracking and management enablingeffective inventory and stock management, accurate

delivery schedules and enhanced compliances. GPS/GIS vehicle tracking: Effectively track various

machineries used at the facility, helping to maximizeasset utilization and reduce downtime. Could beextended to include fleet management solutions fortracking of raw materials.

Shared Services: Help enable the various sharedservices in the organization.



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Enabling technologies for mobility in chemicalsMobile Enterprise Application Platform

The Mobile Enterprise Application Platform(MEAP) acts like the backbone, supportingcross-platform application development for smartphones, ruggedized devices, notebooks, andtablet PCs for enterprise users

The MEAP enables business process andenterprise applications to work together

Mobile Application & Device Management

Mobile Application and Device Management(MADM) solutions manage devices andapplications in a centralized and secure way

MADM enables employees across functions todownload and use applications for businessoperations

MADM protects a vast amount of data in theenterprise network from various risks of mobility

Governance

Mobility governance is the ability to make, sponsor, and enforce the right decisions regarding therealization of mobility initiatives

It is involved from start to finish, that is from aligning mobility initiatives with business strategy andgoals, to ensuring they also align with common architecture standards for consistency, quality, andperformance

A governance framework includes policy and procedures, technical architecture, applicationdevelopment, provisioning, deployment, application maintenance, tiered support, and performancemeasurement



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Major enabling technologies for mobility in chemicals


App licat ion Area Technology Vendors

Asset Management, Plant Maintenance SAP, Syclo

Workforce Scheduling & Optimization ClickSoftware

Asset Management, Field Service Ventyx

Enterprise Applications SAP

Ruggedized/Class I/II Devices XCIEL Application/Device Management SAP, MobileIron, Air Watch, Good


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Apps are only one layer in the Mobile

Enterprise Killer Apps (singularfunctionality apps with no inter-linkage)without the infrastructure have limitedvalue

Industry typically have varyingcomponents of the platform, but arelooking for direction on how to completethe picture

Integration and testing excellence arecritical to achieving the business value

With a platform in place, rapid deploymentmethods for Apps & devices is achievable

Ongoing managed services are criticaldue to the evolving nature of the mobiledevices, mobile operating systems andend-user preferences

Simplified mobility platform

Legacy Infrastructure

EnterpriseSystems

Servers &Databases

PhysicalNetworks

Mobile Infrastructure

CellularNetworks

Wi-Fi MeshNetworks

Mobile DeviceMgmt

Physical Mobile Devices

On DeviceSecurity

RuggedizedDevices

Integrated

DeviceFeatures

Mobile Apps

Productivity Applications

Compliance Applications

Communication Applications



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Overview


Case studiesContacts



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Overview


Case studiesContacts



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Accenture Chemical Report Mobility

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