September 29, 2017
September 29, 2017
Contributor: Susan Moore
While industrial companies are leading the shift to digital, their CEOs see it differently.
Five years ago, conference presentations and articles about digital business mostly included only consumer-facing examples. Think internet connected refrigerators, banking apps and remote healthcare.
In fact, the top three industries leading Internet of Things (IoT) adoption are all asset-intensive industries: utilities, oil & gas and manufacturing.
“Digital is redefining how business is done in asset-intensive industries,” says Kristian Steenstrup, VP & Gartner Fellow. “For example, the shift to the fully autonomous mine, the digital oil field concept and integration of digital services in aviation are all well underway.”
Despite this, digital can be a hard sell for CIOs in these industries.
Gartner’s 2017 CEO survey found that in industries that rely heavily on physical assets, plant and equipment to fulfil their mission, CEOs' priorities vary from the global average in three main ways.
“This makes digital a harder sell for CIOs to CEOs seeking productivity improvements,” Steenstrup says. “In these organizations, most CEOs prefer to ‘get the basics right,’ rather than prioritize the ‘digital first’ approach for productivity improvements that is so evident in other industries.”
CIOs in asset-intensive industries need to invest in systems that support asset utilization, promote the concepts of cloud and analytics to improve CEOs' trust in off-premises systems and fully address the fundamentals of IT delivery before venturing into new areas, as CEOs of asset-intensive industries have a conservative outlook. Tailor any promotion for digital innovation with the premise that it may fall on deaf ears.
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