May 17, 2020

Nearly 80% of companies concerned with digital disruption threat

Digital Disruption
technology transformation
Intelligent operations
Accenture
James Henderson
4 min
Almost four in five companies are concerned by the threat of digital disruption and competitive threats
Nearly 80% of organisations are concerned with disruption and competitive threats, especially from new digital-savvy entrants, a new study by Accenture...

Nearly 80% of organisations are concerned with disruption and competitive threats, especially from new digital-savvy entrants, a new study by Accenture has found.  

Digital disruption, data explosion, and customer experience are the driving forces behind the need for companies to transform how they do business and move toward Intelligent Operations.    

Data is rapidly shifting from a "peripheral component to a fundamental driver of operations and competitive advantage", said the report

However, nearly 80% of respondents estimate that 50%-90% of their data is unstructured.

Furthermore, data comes from a wide range of sources, including owned first-party data, second-party cooperatives, and subscribed third-party data, as well as enormous amounts of data embedded in internal processes, the report said.  

“Enterprises need a mindset shift to become more data-centric and to maximise and monetise this diverse data,” it detailed.

“A robust customer experience strategy is the most significant driver of operational agility. But nearly 50% of enterprises say their back office is not keeping pace with front-office requirements as they evolve toward the OneOffice that replaces siloed front, middle and back office functions with seamless processes and digital capabilities.

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“The future belongs to organisations with Intelligent Operations: Those that use diverse data driven by applied intelligence and human ingenuity to empower next-generation, real-time decision making, exceptional customer experiences and breakthrough business outcomes.

“With Intelligent Operations at the heart of the enterprise, a company can become more flexible, agile, and responsive; generate value more quickly; and achieve sustainable competitive advantage. Intelligent Operations have five essential ingredients that come together in a dial-up or dial-down as-a-Service approach to lasting business process transformation.

“Intelligent Operations provide the agility, flexibility and responsiveness that businesses need to act swiftly to change and steer a new course with confidence.”

The report advises on five essentials for Intelligent Operations:

  • Innovative Talent - Entrepreneurial drive, creativity and partnering ability are organisations’ top three areas of talent focus. The talent of the future will need to bring creative problem solving to the enterprise in addition to strong digital, operational and domain expertise. To meet these talent demands, enterprises will need a much more agile human resources function and a more flexible approach to recruiting that heavily leverages an open talent marketplace.
  • Data-driven Backbone - Over 90% of organisations believe that data-driven decisions will help them generate breakthrough customer insights. Organisations need to capitalise on the explosion of structured and unstructured data from diverse internal and external sources to gain new insights their innovative talent can use to achieve better outcomes. To that end, over 85% of enterprises are developing a data strategy around data aggregation, data lakes, or data curation, as well as mechanisms to turn data into insights and then actions.
  • Applied Intelligence - Nearly 90% of organisations believe the Triple-A Trifecta of automation, analytics, and artificial intelligence (AI) will become the holy grail of business and process transformation. To effectively use these powerful tools, companies need innovative talent who can understand the business problem they are trying to solve and then augment this talent with the right combination of people, connectivity and technology to find the answer.
  • Leveraging the Power of the Cloud - Over 90% of enterprises researched expect plug-and-play digital services with enterprise-grade holistic security, which is possible today through the power of cloud infrastructure. Capitalising on the cloud, however, will require significant efforts to replace or modernise legacy systems. Recognising this, 25% of respondents indicated they have completed legacy replacement or modernisation and another 42% have concrete plans to do so.
  • Smart Partnership Ecosystem - Over 90% of enterprises feel they need to partner closely across the ecosystem to exploit market opportunities. For instance, organisations of the future will develop symbiotic relationships with start-ups, academia, technology providers and platform players to achieve their goals. Similarly, traditional business service providers are increasingly collaborating with enterprises in a true partnership model that maximises co-innovation.

Source: Accenture/HFS Research

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Jun 23, 2021

Japan Seeks to Revive Stalled Semiconductor Industry

TSMC
Taiwan
Japan
Semiconductor
Elise Leise
3 min
As international supply chains falter, the Japanese government intends to incentivise foreign chipmakers to build localised foundries

Post-pandemic, Japan has seen the consequences of relying solely on foreign imports for its semiconductors. Over 64.2% of its chips are usually imported from South Korea and Taiwan, leaving the country dependent on its neighbours. Industries from auto manufacturers to consumer electronics firms wait for chips, to no avail. But now, the Japanese government looks likely to put real funding behind its semiconductor industry, with top officials emphasising their support.

 

Domestic supply chains have never been more important. Rather than remain tied to international shipping routes during shortages and delays, governments are doing everything in their power to develop local lines of supply. But the question remains: can Japan pull it off? 

 

How Will Japan Pay For It? 

Herein lies our first issue. Japan’s debt has rapidly increased over the past few years, and the semiconductor industry will need roughly a trillion yen—US$9bn—in this fiscal year alone. This cost, however, pales in comparison to what Japan could lose if it fails to keep up with Europe and the US. Both nations have launched aggressive funding measures to revive their local semiconductor industries. And if Japan refuses to invest due to its debt, it could slow down progress in fields ranging from artificial intelligence to autonomous driving. 

 

According to Tetsuro Higashi, the former president of Tokyo Electron and Japan’s top government advisor in semiconductor strategy, ‘If we miss this opportunity now, there may not be another one’. Yet one advanced wafer fabrication factory can cost more than US$10bn, and any money poured into the industry will go fast. That’s why Japan, rather than invest trillions and trillions in failing domestic firms, is considering a second option. 

 

What Do They Plan To Do? 

Japan now intends to look abroad and convince overseas chip foundries to come to its shores. Its past failures mostly centred on trying to merge domestic firms that were already going through tough times. ‘This sort of made-in-Japan self-reliance approach hasn’t worked out well’, said Kazumi Nishikawa, a director at the Ministry of Economy, Trade, and Industry’s IT division. ‘This time the goal is to offer a strong incentive for an overseas logic foundry to come to Japan’. 

 

As follows, Japan will now reach out to industry partners and leaders in other countries, including the industry heavyweight Taiwan Semiconductor Manufacturing Co. (TSMC), to build Japanese bases. According to the South China Morning Post, the heart of Japan’s mission is a US$337.2mn research and development project in Tsukuba that will involve TSMC and more than 20 Japanese firms. ‘I think we need to cooperate with our overseas counterparts’, said Akira Amari, a senior member of the ruling Liberal Democratic Party. ‘[And] TSMC is the world’s top logic chipmaker’. 


Indeed, if that’s Japan’s strategy, the future looks bright. TSMC recently set up a venture near Tokyo to research energy-efficient 3D chips with several Japanese partners. And in the future, the multinational chipmaker may consider expanding its Japanese operations—that is, if government incentives pave the path forward.

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