Digital Transformation Initiative

Digital Transformation Initiative
In collaboration with Accenture
Unlocking $100 Trillion

for Business and Society
from Digital Transformation
EXECUTIVE SUMMARY
MAY 2018
FOREWORD
The world is being transformed by new technologies, which are redefining customer expectations, enabling businesses to meet these new expectations, and changing
the way people live and work. Digital transformation, as this is commonly called, has immense potential to change consumer lives, create value for business and unlock
broader societal benefits.
The World Economic Forum launched the Digital Transformation Initiative in 2015, in collaboration with Accenture, to serve as the focal point for new opportunities and
themes arising from the latest developments in the digitalization of business and society. It supports the Forum’s broader activity around the theme of the Fourth
Industrial Revolution. Since its inception, the Initiative has analysed the impact of digital transformation across 13 industries and five cross-industry topics, to identify the
key themes that enable the value generated by digitalization to be captured for business and wider society. Drawing on these themes, we have developed a series of
imperatives for business and policy leaders that look to maximize the benefits of digitalization. We have engaged with more than 300 executives (both from leading
global firms and newer technology disruptors), government and policy leaders, and academics.
Every industry has its nuances and contextual differences, but they all share certain inhibitors to change. These include the innovator’s dilemma (the fear of
cannibalizing existing revenue models), low technology adoption rates across organizations, conservative organizational cultures, and regulatory issues. Business and
government leaders should continue to work towards addressing these challenges.
A notable outcome of this work is the development of our distinctive economic framework, which quantifies the impact of digitalization on industry and society. It can be
applied consistently at all levels of business and government to help unlock the estimated $100 trillion of value that digitalization could create over the next decade. We
have already started to leverage this framework for region-specific discussions with some governments.
We are confident that the findings from the Initiative will contribute to improving the state of the world through digital transformation, both for business and wider society.
Cheryl Martin Jim Hageman Snabe Pierre Nanterme

Head of Industries, Chairman Chairman and Chief Executive
Member of the Managing Board World Economic Forum, USA Officer
World Economic Forum Accenture
To find out more about the DTI project, visit http://reports.weforum.org/digital-transformation 2

GRATITUDE GOES TO OUR CEO CHAMPIONS
FOR THEIR SUPPORT
Jonas Prising Jean-Yves Charlier Arne Sorenson T.V. Narendran Bob Dudley
CEO CEO CEO CEO CEO
ManpowerGroup VimpelCom Marriott International Tata Steel BP

CONTENTS1
1 Introduction to the Digital

Transformation Initiative 2 Cross-Industry
Themes 3 In-Depth Industry
Reviews: Key Insights
4 Opportunities to Improve
the State of the World 5 Acknowledgements
1Includes updates made for the analysis conducted as part of DTI 2017-18. These updates include additional slides (slides 10-13) and updates to slides 8 and 29 4
1. INTRODUCTION TO THE
DIGITAL TRANSFORMATION INITIATIVE (DTI)
In a world where game- The past 12 months have brought a series of exciting technological
breakthroughs. Self-driving Tesla cars can now be seen on the road;
changing innovation Uber is testing autonomous taxis in Pittsburgh; Google DeepMind’s
has become the norm, Alpha Go demonstrated a leap forward in artificial intelligence with a
famous victory at the board game Go; and augmented reality hit the
the DTI provides a mainstream with the success of Pokémon Go. Game-changing
unique insight into the innovation has become the norm.
impact of technology on Digital innovation is reshaping industries by disrupting existing
business and society business and operating models. But it is also having a profound impact
over the next decade. on society, presenting a series of opportunities and challenges for
businesses and policy-makers.
This executive summary introduces the approach taken to unlocking

the value of digitalization. Over the past two years, the DTI has
developed a unique value-at-stake framework to support a consistent
way of measuring technology's impact on business and wider society.
This is covered in the section on Unlocking Digital Value to Society: A
New Framework for Growth. Bruce Weinelt
Head of Digital Transformation,
The goal is for this framework to provide a base of evidence and a World Economic Forum
common language for public-private collaboration focused on ensuring
that the benefits of digital transformation are fairly and widely shared.
Mark Knickrehm
Group Chief Executive,
Accenture Strategy

THE COMBINATORIAL EFFECTS OF
TECHNOLOGY ARE ACCELERATING CHANGE
The falling cost of Cheaper and better technology is creating a more connected world: 8
billion devices are now connected to the internet; by 2030, that number IoT and
advanced technologies is forecast to grow to 1 trillion.
smart machine
is a defining As the cost of advanced technologies continues to fall, new Big Data, analytics,
visualization
characteristic of the applications will be opened for them, as well as opportunities to
combine them in innovative ways. This unleashes "combinatorial"
digital revolution. It is Web 2.0, cloud, mobile
Cumulative capability
effects, where the capability of technologies working in tandem far
playing a major role in exceed their capabilities when deployed separately.
Web 1.0 eCommerce
accelerating innovation. Take, for example, continuous liquid interface production (CLIP): it can
produce isotropic parts with mechanical properties and surface finish
Client-server
similar to injection-moulded plastics. Carbon, a Technology Pioneer of and PCs
the World Economic Forum, is using CLIP, the cloud and analytics in a
Artificial
platform-based business model to significantly advance what used to Mainframe
intelligence
be a prototype technology into high-quality, scalable and low-cost
manufacturing.
The combinatorial effects of base technologies, such as mobile, cloud, 1950 1960 1970 1980 1990 2000 2010 2020 Time
sensors, analytics and the Internet of Things (IoT), are accelerating
progress exponentially. Technology is the multiplier. Source: World Economic Forum/Accenture analysis
Examples of the falling cost of key technologies

Drones Cost per unit DNA Sequencing Cost per unit Solar Cost per kWh*
2000 $2.7 billion

2007 $100,000 1984 $30
2007 $10 million
2013 $700 2014 $1,000
2014 $0.16
* kilowatt hour To find out more about the DTI project, visit http://reports.weforum.org/digital-transformation 6
SEVEN TECHNOLOGIES ARE TRANSFORMING THE
INDUSTRIES COVERED BY DTI RESEARCH
DTI research to date
has identified seven key
technologies that are
expected to have the
most impact among the
industries analysed.
Note: This list is not Artificial intelligence Autonomous Big data analytics Custom manufacturing
comprehensive and does not vehicles and cloud and 3D printing
include all the emerging
technologies (e.g. blockchain)
that were identified in only one
or two use cases across DTI
industries to date.
Internet of Things (IoT) Robots and drones Social media

and connected devices and platforms

NAVIGATING THE EXECUTIVE SUMMARY
The sections that follow Over the past two years, DTI research has focused on understanding
the impact of digital transformation in 13 industries and drawing
offer a summary of the insights from the cross-industry themes that came out of that analysis.
research into the impact
In section two of this summary, six cross-industry themes are
of digitalization on introduced. Maximizing Return on Digital describes the relationship
industry and wider between investments in digital innovation and productivity. Digital
Consumption explains how the rapidly changing expectations of
society. digital customers are forcing enterprises to reinvent themselves.
Digital Enterprise looks at how companies can respond by
rethinking every aspect of their businesses. Platform Economy
focuses on the immense impact of one type of digitally enabled
business model – business-to-business (B2B) platforms. The
adoption of new digital business and operating models is having a
profound impact on society, a theme analysed in Societal
Implications. A quantitative analysis of the impact of digitalization on
business and wider society is then introduced in the final cross-
industry theme, Unlocking Digital Value to Society.
In section three, in-depth industry reviews are presented. Thirteen

industries were analysed: Aviation, Travel and Tourism; Chemistry
and Advanced Materials; Mining and Metals; Oil and Gas;
Professional Services; Retail; Telecommunications; Automotive;
Consumer; Electricity; Healthcare; Logistics; and Media.
Finally, drawing on these cross-industry themes and industry reviews,

section four proposes a set of Opportunities to Improve the State
of the World.

2.
Cross-Industry
Themes
MAXIMIZING RETURN ON DIGITAL:
DRIVERS OF DIGITAL INVESTMENTS
Companies are New efficiencies Customer Experience New business

investing in new and Outcomes models
technologies to create New efficiencies are still the Enhanced customer Investing in new business
new efficiencies, primary driver for large experiences are driven in models is the most difficult
enhance customer companies to invest in new various forms, depending on and least frequently targeted
experiences and build technologies. They use these how new technologies are driver, particularly for large
new business models technologies to improve existing utilized. Customized offerings companies. Moving to new
business processes and create ‘moments of truth’ and business models requires a
optimize assets and resources, support decision journeys, while cultural change that makes
thereby reducing their costs and integrated customer information innovation the focus of
enabling savings for their across platforms can increase business strategy. Concerns
customers. transaction speed. on cannibalization of existing
business need to be
addressed by concentrating
on overall consumer demand.
Click to Selected
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studies:
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NEW TECHNOLOGY INVESTMENT TREND
Companies are New Technology Spend – Key Findings Corporate Spending on New Technologies (2016-2020)1
% share by technology category
investing in new • IDC estimates corporate spending on new
technologies to technologies to grow by 13% CAGR to 13% CAGR
accelerate growth and $2.4 trillion between 2016 and 2020
productivity. Total 2,426
• Investments are supported by the reduced 2.500
investment spend is cost of technologies such as 3D printing 16%
Corporate spending ($ billion)

expected to increase to and Robotics 2.000 6%
$2.4 trillion by 2020, led
• While Mobile/Social remains one of the key 10%
by IoT 1,503
technologies, it is expected to lose share of 1.500
11%
overall spend from 35% to 25%, potentially 5% 25%
9%
to new technologies such as
1.000
augmented/virtual reality and cybersecurity 35%
• The growth will be led by investments in 42%
500
IoT, which is estimated to contribute 42% 41%
of the total new technology spend (~$1.0
trillion) by 2020 0
2016 2020
IoT Mobile/Social Cognitive Technologies Robotics Other
Notes
1Based on new technology spending estimates from IDC, excluding cross-industry spend ($80 billion in 2016 and $166 billion in 2020). Cognitive Technologies include AI and
Big Data Analytics)

RETURN ON DIGITAL INVESTMENTS
Return on investment in Return on Investment by Technology (2015-2016)1,2,3
Impact of a $1 new technology investment on revenue per employee and labour productivity at the average company. E.g. $1 invested in
new technologies is combined new technologies has yielded $2.2 – or a 120% increase in revenue per employee.
positive overall, with 3x
productivity increase 2,5
realized when 2,2
Revenue, EBITDA ($ per employee)

technologies are 2,0 1,9
deployed in combination 1,8
1,5
1,5 1,3 1,4
To understand the 1,2 1,2
1,1 1,1
application and
1,0
integration of multiple
technologies to
0,5
maximize returns,
companies need a clear
strategic objective and 0,0
Robotics Mobile/Social IoT Cognitive Combined
long-term approach to Technologies Investments
new technology
investments Revenue per employee Labour productivity (EBITDA per employee)
Notes
1) Econometric analysis based on 16,000+ companies across 14 industries with data sourced from IDC, Ovum and Capital IQ
2) Combined Investments shows the impact of investment in all four technologies combined (i.e. total amount invested in four technologies analysed)
3) Cognitive Technologies include Artificial Intelligence (AI) and Big Data Analytics
KEY ENABLERS AND EXECUTION PRINCIPLES
Based on research and Key enablers
discussions with 2. Forward-looking skills agenda 3. Ecosystem thinking
industry leaders, there Infusing a digital mindset in the Collaborating within the value chain
workforce by making innovation the (e.g. with suppliers, distributors,
are five key enablers focus of training and hiring customers) and outside (e.g. start-
and four underlying programs ups, academia)
execution principles for
maximizing returns on 1. Agile and digital-savvy
digital leadership
Strategic vision, purpose, skills,
intent and alignment across
management levels ensure a
nimble decision-making process
4. Data access and management on innovation 5. Technology infrastructure
Strong data infrastructure and readiness
warehouse capability combined Building required technology
with the right analytics and infrastructure to ensure strong
communication tools to drive capabilities on cloud,
competitiveness cybersecurity and interoperability
Establish clear ownership Invest in use cases, Fail fast, fail Follow an outcome-
of digital investments not technologies cheap based approach
Execution principles

DIGITAL CONSUMPTION: THREE BATTLEGROUNDS
FOR THE DIGITAL CUSTOMER
Enterprises need to Products and services Hyper- Ownership

constantly reinvent their to experiences personalization to access
offerings to keep up Offering products and services Customers expect and value Enabled by digital platforms,
with the rapidly evolving is no longer enough: successful increasingly personalized customers are substituting
expectations of digital companies will be the ones interactions at all points of their ownership of goods with
customers. focused on delivering the most journey, and digital technology access-based models. The
compelling experiences. In fact, is enabling companies to deliver global market for shared
56% of business leaders believe personalization economically at goods and services across
that customer experience is their scale. The challenge five key sectors is expected to
top digital transformation priority. companies face, however, is to grow to $335 billion by 2025.
understand how much Companies should evaluate
personalization customers opportunities to cater to
want, as 90% of consumers say customer preferences for
they would limit access to access-based models, before
certain types of personal data. competitors or start-ups
sweep in.
Click to Selected
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(Magic Bands)
studies:
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DIGITAL CONSUMPTION:
PRODUCTS AND SERVICES TO EXPERIENCES
Companies are recognizing that digital customers increasingly demand high-quality experiences and guaranteed outcomes,
rather than just products and services. This development is leading to new, outcome-based business models.
A Focus on Outcomes
Why outcomes matter
The low cost and easy availability of

connected sensors, coupled with
AUTOMOTIVE BANKING CONNECTED HOMES breakthroughs in data analytics, have
enabled outcome-based services to become
The connected car is enabling outcome- Self-checking, greater security, predictive Managing energy, shopping, security, a reality. In many instances, companies are
oriented experiences, such as personalized services to enhance wealth creation, and environment, entertainment, our diaries and using digital technologies to identify and
apps to help electric-car drivers minimize payment platforms are likely to be key budgeting are all becoming possible with
their electricity bills. emerging themes in personal finance. new advances in the connected home. target the outcomes that customers care
about, giving them powerful tools to improve
customer satisfaction and enhance customer
lives.
This trend becomes highly relevant in

EDUCATION HEALTHCARE RETAIL
today’s world where customers tend to adopt
Personalized, automated learning services Digital is expected to have a profound products and services that deliver real value
Personalized services and more interactive
will help deliver a tailored, individual impact on health and wellness, enabling a to them, but also use these experiences to
in-store digital experiences could help
approach based on unique needs, with the shift from population-based diagnostics and
companies provide a more integrated define their expectations across all other
ability to monitor how much a student has prescriptions to those centred on
approach to managing customer journeys.
learnt more effectively. individuals. industries.

HYPER-PERSONALIZATION
The hyper-personalization spectrum
Customers increasingly
Digitalization has enabled two main forms of hyper-personalization:
expected relevant,
GIVING CUSTOMERS CONTROL TO PROVIDING MORE RELEVANT
1 2
personalized
CUSTOMIZE THEIR PRODUCT / INTERACTIONS BY ANALYZING
interactions through EXPERIENCE CUSTOMER DATA
every engagement
channel. Advances in AI Create your own suit Personalized in-store
and other technologies shopping recommendations
are opening up new
Customized shoes Mobile app using machine
possibilities for hyper- learning to monitor mental-
EXAMPLES
personalization. health patients
100+ drink choices and
customization options Music tailored in real time to
mood and location
• Lower requirement for access to customer • Requires (repeat) access to customer data
data • Usage data can be captured without direct
• Requires more direct engagement from the customer intervention
IMPLICATIONS
customer (opt-in) at point of sale • Analytical capabilities to tailor personalized
• Robust and agile supply chains to provide offers and services
convenience and choice

OWNERSHIP TO ACCESS
The concept of ownership to access has emerged Which sectors are most likely to be disrupted by
across a wide set of markets access-based models (grouped by net asset value)?
Factors determining the extent of access-based business models include:
A preference for access rather than ownership is now mainstream, with
more than 110 million people in North America already participating in
Underutilized Shareability Regulatory
the collaborative economy. This shift towards access-based Net asset value
capacity quotient environment
consumption patterns holds important implications for businesses,
especially for traditional revenue models.
Accommodation
Ownership to access can also generate value for society. It does so by Automotive
creating an economic system of marketplaces and platforms that unlock
High
the value of underused assets and improve resource efficiency. Construction
Luxury Apparel
Medical Equipment
Cohealo, a US-based technology company,
Medium
allows hospitals to share equipment, reducing Energy
the need to buy assets and boosting utilization Sports Equipment
rates. Cohealo says that its service has saved
hospitals $1 million to $2 million each.
Personal Care Products
Low
Food and Beverage

Aireen Omar
Chief Executive Officer,
AirAsia, Malaysia
“Do not reinvent the

wheel. Partner with
experts who have
a competitive edge –
a team effort across
industry is necessary.”
18
DIGITAL ENTERPRISE: HOW TO SURVIVE
DISRUPTION AND THRIVE IN THE DIGITAL AGE
Disruption may not be bankrupting incumbents, but to succeed in the digital era, they will need to become
digital enterprises, rethinking every aspect of their business.
Digital business Digital operating Digital talent Digital metrics

models models and skills for success
Companies need to Digital leaders follow a lean To attract, retain and develop Traditional key performance
fundamentally change the way approach to both core and talent, enterprises will need to indicators are no longer
they identify, develop and launch support functions. With this in embrace cultural change, focus effective at measuring the
new business ventures. A recent mind, 90% of companies have on recruiting millennials and performance of a business in
study forecast that 30% of significantly adjusted operations adapt to new ways of working. the digital age. Leading
industry revenues will come from in the past two years. Companies need to prepare for enterprises track the metrics
new business models by 2020. greater automation, with 81% of that matter, and react to them in
managers believing that real time. Companies that
machines will make workers understand digital
more effective. transformation earn 26% more
profit than others.
Selected
case
studies:

DIGITAL ENTERPRISE:
DIGITAL BUSINESS MODELS
Traditional approaches Additional approaches
Companies can choose
from several options Build
Invest
Might be the best route:
when implementing a
• When the opportunity is related to the • Allows an established company to connect with
digital business model. company’s core business the right skills and capabilities
The following factors • If there is still time until the market's inflection • Avoids hindering entrepreneurial forces with a
point set-up focused on internal governance and
are likely to determine • If the company can hire the necessary talent reporting, which would undermine the start-
the path selected. up’s agility
Buy
Incubate/Accelerate
Usually most appropriate:
• When it is strategically imperative to “own” a • Allows for a close relationship to the funding
market company, enabling internal capabilities,
• If the market inflection point is close, and hiring infrastructure and resources to be deployed to
the right talent is not possible help the start-up
• If the new opportunity bears little relation to the • Benefits companies via increased deal flow in
company’s current business model business models and technologies
Partner
When there is no strategic need to own:
Click to • Learn more from a “digital native” about the
download market and the partner’s model
• Useful when deeper partnerships or future
White Paper acquisitions are required Source: World Economic Forum/Accenture Analysis

DIGITAL ENTERPRISE:
DIGITAL OPERATING MODELS
Digital disruption is encouraging companies to re-examine their operating models. DTI research has identified five operating
models for the digital age.
ORGANIIZATION PROCESS PEOPLE CULTURE KPI
CUSTOMER-CENTRIC
Front-line Net present
Makes customer lives easier and Decentralized Front Office Client first
emphasizes front-office processes. empowerment value
EXTRA FRUGAL Supply and

Process
Thrives on a ’less is more’ culture and a Standardized manufacturing; Less is more Cost
standardized organizational structure. optimization
support functions
DATA-POWERED Centre of Supported by

Agile test and Return on
Builds intelligence around prowess in excellence / deep analytics Serendipity
analytics and software intelligence. learn investment
hub and spoke capabilities
SKYNET
Full-time
Uses machines intensively to increase Standardized Manufacturing Automation ‘Engineer’
productivity and flexibility in production. employee ratio
OPEN AND LIQUID Constant

Collaboration / Net present
Creates an ecosystem built around the Local dialogue with Sharing
‘sharing customer’. crowdsourcing value
outside world

DIGITAL ENTERPRISE:
DIGITAL TALENT AND SKILLS
To stay relevant, companies should consider how their talent requirements need to evolve, to meet the skills and workforce
challenges created by rapid digitalization.
Attract, retain and Bring leadership Adapt to different
develop talent into the digital age ways of working
• Be a great place to work for • Leaders should hire • Create environments where The skills crunch
millennials. Formulate a multi- people with digital humans and robots can work
year engagement strategy. mindsets and a willingness together successfully.
Empower and incentivize the to change the status quo. Evaluate the value of
workforce through Accept failure, and move automation, establish the
development opportunities. away from the risk-averse
mindset. Finally, embrace
extent to which automation
will form the core of your 81%
say they are looking for a
• Create a workforce with digital flatter structures and move business, and invest in wider mix of skills when
skills. Whether it’s developing away from hierarchies. developing internal hiring
73%
training programs to obtain automation capabilities.
necessary skills or hiring • Foster a digital culture
digital natives, companies from the top through • Prepare for the rise of the of CEOs cite skills
need to be aware of where communication, journey on-demand workforce but shortages as a threat
to their businesses
talent is headed and how they management, visible ensure that there is enough
can help. changes, and continuous of a balance to maintain
change monitoring. corporate culture.
Source: PwC, People Strategy for the
Digital Age

DIGITAL ENTERPRISE:
DIGITAL METRICS FOR SUCCESS
Many companies have discovered that traditional financial key performance indicators (KPIs) are no longer effective at
measuring the success of a business. Digital traction metrics provide invaluable insights that complement financial reporting.
Why is digital traction important?

DIGITAL TRACTION
Being able to measure digital traction – and
= find ways to boost it – is important for both
digital disruptors and established
businesses for two key reasons.
x x
1. In some scenarios, strong digital
SCALE ACTIVE USAGE ENGAGEMENT traction (e.g. a high NPS) means that
the cost of marketing falls to zero and,
• Unique visitors • Number of active users • Time on site
• Number of visitors • Monthly active users (MAU) • Net Promoter Score (NPS) in the case of a peer-to-peer business
• Number of registered users • Ratio of new users to repeat • Customer satisfaction index model, service costs could also
• MOM (month-on-month) growth users / customers • Downloads approach zero.
in registrations • Conversion rate • Cohort retention on metrics that
• Organic user acquisition • Abandon rates matter for that business 2. Strong digital traction can boost
• Bounce rate company valuations as digital
• Sources of traffic
• Customer concentration risk
enterprises have more scalable, highly
• Churn / exit rate engaged customers than traditional
• Posts contributed companies. In a down market, these
• Photos / videos uploaded and scale effects become more
shared, and views completed
• Number of likes and shares
pronounced in investor valuations.

PLATFORM ECONOMY: DIGITAL B2B PLATFORMS
ENABLE THE FOURTH INDUSTRIAL REVOLUTION
Driving transformed Helping ecosystems Creating a win-win

In a platform-driven business models expand for industry and
world, enterprises and society
policy-makers need to Interactions drive scale Digital B2B platforms are blurring Platform-driven interactions
collaborate on new through network effects in industry lines and reshaping are expected to enable
digital B2B platform business industries into complex, approximately two-thirds of
initiatives to unlock the
models. Emergent innovation interconnected systems. In a the $100 trillion value at
potential of B2B and outcome-based strategies survey of 2,000 business and stake from digitalization by
platforms to deliver across platform participants information technology 2025. In contrast to other
value for society. support these models. executives, 81% believe industry technologies, society is
boundaries will become expected to gain as much
dramatically less distinct. as industry through digital
B2B platforms.
Incumbents and disruptors are creating new platform business models across industries and geographies:
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NEW STRATEGIES AND OPERATIONAL CAPABILITIES
FOR SUCCESS IN THE PLATFORM ECONOMY
Platform strategies shape operational capabilities to deliver desired

outcomes within a platform ecosystem.
• The traditional pricing New digital • To unlock value, existing
approach will metrics Platform-
Effective organizational structures
collaboration driven
progress to outcome- Ecosystem innovation must adjust by adopting
based rewards governance
Platform a "platform mindset"
sharing across Reward sharing
talent
ecosystem Sponsorship
ACCELERATING • Enterprises will need to
participants New business ECOSYSTEM Organization
OPEN foster a "collaboration-
models ACTIVATION alignment
INNOVATION
STRATEGIES first" culture to
• Performance FOR A TALENT AND
cooperate both
BEYOND Data
monitoring will need Ecosystem
PLATFORM 3 4 capabilities internally (across
WORLD
to transition to role
Foundational different business units)
relevant new digital 2 5 platform
technologies
and externally (with
metrics (e.g. Value VISION DATA AND
other enterprises and
proposition AND TECHNICAL
interactions) from 1 6 Emerging
AMBITION ELEMENTS
technologies policy-makers)
traditional ones (e.g.
customer
conversions) Strategic ENTERPRISE CAPABILITIES Operational

SOCIETAL IMPLICATIONS: THREE MAJOR
IMPACTS OF DIGITAL TRANSFORMATION
Digital transformation is Employment Sustainability Trust

generating a fierce debate
among policy-makers, Current estimates of global job It has not yet been possible to Social media, user-generated
economists and industry losses due to digitalization decouple economic growth from websites and other innovations
range widely, from 2 million to an increase in emissions and have been instrumental in
leaders about its societal
as high as 2 billion by 2030. use of resources. Current increasing transparency and
impact. This analysis suggests that business practices will overcoming information
digitalization can be a net job contribute to a global gap of 8 asymmetries. However, trust in
creator in some industries. But, billion metric tons between the all technology-based sectors
with both winners and losers supply of and demand for declined in 2015. Beyond
resulting from digital natural resources by 2030, privacy and security concerns,
transformation, a huge premium translating to $4.5 trillion of lost broader ethical questions about
rests on the near-term ability of economic growth. The analysis the way organizations use
businesses to upskill suggests that digitalization digital technology threaten to
employees and shape the next could make a positive erode trust in those institutions.
generation of talent. contribution to this challenge.
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INTRODUCING VALUE AT STAKE AND DIGITAL
VALUE TO SOCIETY (DVS)
Value at stake The components of value at stake and DVS
The DTI value-at-stake
The value-at-stake analysis assesses the impact of digital initiatives
framework and DVS on industries, customers, society and the environment over the next
metric developed here decade (2016 to 2025). Over the past two years, more than 130 Example metrics
digital initiatives covering innovations as diverse as driverless cars,
offer a distinctive predictive analytics, remote healthcare and drones have been • Lives saved DVS
Society and • Carbon emissions
approach to analysed.
Environment
understanding – and • Life expectancy
Notes on methodology: Value at stake integrates all segments of
unlocking – the value an industry's value chain, capturing about 80% of revenues and Consumer • Time savings
profits. It considers the total addressable market and Benefits • Cost saving on consumption
of digitalization for adoption/penetration rates over the next 10 years, and is based on
business and society. research, industry reports, existing use cases and interviews with • Net job creation
experts. Value-driver trees are used to assess key drivers against • Median income growth
areas of impact for industry and society.
Labour
• Income disparity
Digital value to society (DVS) • Value addition (from new
A new framework, digital value to society (DVS), was created by products / services)
aggregating the key performance indicators that relate to the impact Industry • Value migration (from
of digitalization on health and safety, employment, the environment
shifting profit pools)
and customers. The graphic on the right illustrates how DVS maps to
value at stake.
VALUE AT STAKE
Value at stake and DVS are intended to provide an evidence-based
framework to encourage collaboration between enterprises and
policy-makers, and to unlock the societal benefits of digitalization.

UNLOCKING DIGITAL VALUE TO SOCIETY: A NEW
FRAMEWORK FOR PUBLIC-PRIVATE COLLABORATION
ILLUSTRATIVE
This distinctive economic (tailored to each industry)
framework helps INDUSTRY
Value Drivers
business leaders, IMPACT
Revenues
regulators and policy- Value Migration and
Free Cash Flows/Operating Margins
makers to unlock the Value Addition Costs
estimated $100 trillion of Allocated Capital

value that digitalization VALUE IMPACT SOCIETAL
Value Drivers
OF DIGITAL IMPACT
could generate over the TRANSFORMATION
next decade. Society and Environment
CO 2 Emissions
Lives Saved/Security
Cost Savings
Consumer Benefits
Time Savings
Net Job Creation
Labour
Injuries/Accidents Avoided
• The economic framework developed aims to quantify the impact • It provides a consistent base of evidence and set of definitions for
of digital transformation on industry and broader society. digital concepts, supporting a global, multistakeholder dialogue
• The framework is new and will be iterated further over the next about digitalization and its implications.
Click to
year, but it can already be applied at all levels of government and • Proof of concept of the framework for 11 industries was achieved
download business, helping stakeholders to make the right decisions to and its application successfully piloted on a national/state level (in the
White Paper deliver the full potential of digital transformation. United Kingdom, Denmark, India, and the Indian state of Telangana).

FOCUS ON DIGITAL DENMARK: UNLOCKING MORE
THAN $10 BILLION OF VALUE IN 2025
Engagement with the Value at stake from digital transformation initiatives in Denmark
Danish government is a ($bn in 2025)
successful example of
how a value-at-stake Digital Opportunity Areas Impact to Society (select “The World Economic Forum’s Value-at-
indicators) Stake model has provided a new
approach was used to framework to assess the value of digital
identify and prioritize transformation, for people, business and
2,7 2,0
digital opportunities and E-commerce Creation of 4,600 jobs in 2025 society. The analysis shows great benefits
perform deep-dives and from digitization and that the value added
$2.8 bn saved by consumers to business will be substantial but that it
value-at-stake analyses. Connected due to savings on fuel,
2,8 0,5 will be even greater for individuals and
Mobility Services parking, vehicle purchase,
crash cost and maintenance society as a whole. The new framework
The Danish government was carried out for The Danish Digital
released their national 0,3 2,9
$0.3 bn manufacturing cost
Growth Panel which in May 2017
Manufacturing reduction passed to
digital strategy in May consumers delivered 33 recommendations to the
2017 which included the Danish government on how to become at
opportunities identified 1,2 0,1 7,700 life years saved led by digital frontrunner.“
Healthcare
virtual healthcare
as part of this Martin Madsen
engagement Head of Division,
$0.7 bn savings from
Electricity: 0,7 decreased energy
Ministry of Business, Industry and
Smart Grid consumption and prices Financial Affairs
Value to Society Value to Business

3.
In-Depth Industry
Reviews: Key Insights
AVIATION, TRAVEL AND TOURISM:
DIGITAL THEMES AND INITIATIVES
The industry has been at the forefront of digital disruption in recent years, changing the way people travel. However, the
sector should brace itself for another wave of digital transformation.
Living Travel Enabling Travel Digital Enterprise Safety and Security

Experience Ecosystem
Travellers will experience Digital platforms enabling Innovations such as 3D As identity management
seamless journeys tailored ecosystem alliances will printing, artificial intelligence, transitions to digital, a
to their habits and continue to emerge, as IoT, virtual reality and digital collaborative effort to boost
preferences, and travel will asset- and information- platforms will transform cybersecurity and protect
blend seamlessly with other sharing become operations and the traveller data privacy will be
everyday activities. increasingly important from workforce. Key initiatives crucial to maintain customer
Important initiatives are a B2B perspective. Key include Smart Manufacturing, trust and public safety.
Travel Centricity, Seamless initiatives are Ecosystem Intelligent Assets and Next Major initiatives are Data
Customer Journey and End- Convergence, Battle for Generation Workforce. Dilemma, Modern Security
to-End Propositions Customer Mindshare and Environment and
Diffusion of Ownership. Ubiquitous Tourist Safety.
Case studies:

AVIATION, TRAVEL AND TOURISM:
UNLOCKING VALUE
The digitalization of AVIATION, TRAVEL AND TOURISM:
aviation, travel and Value at stake for industry and wider society, by digital theme (cumulative 2016-2025)
tourism could unlock
Potential Potential Total Value Emissions Net Impact
$1 trillion of value for Business Impact Societal Impact at Stake Reduction on Jobs
the industry and society ($ billion) ($ billion) ($ billion) (million tonnes CO2) (000s)
over the next decade. Living Travel
100 165 265 -- 270
Societal benefits include Experiences
cost and time savings Enabling Travel
105 380 485 107 (940)
for consumers and Ecosystem
reduced environmental
Digital Enterprise 190 20 210 143 (100)
footprints.
Safety and Security 10 140 150 -- (10)
Total 405 705 1,110 250 (780)
Unlocking Societal Value: End-to-End Propositions

End-to-end propositions are starting to overhaul traditional methods of booking elements of a journey separately. Fully integrated and
Click to personalized travel experiences can be booked more quickly and easily. It could even be possible to create a push model for booking
download travel, where travellers are sent a proposition, based on events in their calendar and past travel preferences, before even starting to
White Paper search for airfares or accommodation. All operational tasks would be handled in a smart machine-learning environment, with feedback
loops continuously improving the service.

CHEMISTRY AND ADVANCED MATERIALS:
Digitalize the Go Beyond the Collaborate in

The industry’s contributions Enterprise Molecule Ecosystems
allow other sectors to turn
innovations into sophisticated Advanced digital technologies, Digitalization presents the Accelerated innovation cycles
products that enable such as the Industrial Internet of industry with opportunities to will drive the industry to build
Things, automation, analytics and launch new digitally enabled flexible and interconnected
digitalization. Three themes
artificial intelligence, will take core offerings, create outcome- innovation ecosystems. Intense
are central to the sector’s own operational functions to the next oriented business models and collaboration and data sharing
efforts to capture the value level (e.g. research and improve customer interaction. along the value chain will help
of digital transformation. development [R&D], Major initiatives are Digitally to better address customer
manufacturing and supply chain), Enabled Offerings and requirements and manage
and will augment workforce Business Models, Advanced volatility. Key initiatives include
capabilities. Key initiatives are Customer Interaction, and Innovation Ecosystem and
Digital R&D, Digital Supply Accelerated Circular Economy. Value Chain Collaboration.
Chain, Digital Plant and
Augmented Workforce.
Case studies:

CHEMISTRY AND ADVANCED MATERIALS:
UNLOCKING VALUE
Digitalization CHEMISTRY AND ADVANCED MATERIALS:
could unlock about Value at stake for industry and wider society, by digital initiative (cumulative 2016-2025)
$550 billion of value for Societal
the industry and wider Industry $ billion
society over the next
Digital R&D 28-31 Unlocking Societal Value:
decade. Positive
societal impacts include Digital Plant
Digital Plant 2-4 35-60
reduced emissions and Further digitalizing assets and equipment
with, for example, smarter sensors, allows
lower injury rates in the companies to monitor asset condition and
industry workforce. Digital Supply Chain 40-70 continuously process quality, throughput
However, these were and emissions. Assets can send signals on
their status and performance which, in
the smallest societal Augmented Workforce 85-120 combination with real-time analytics and
gains from the in-memory computing, enable immediate
intervention to prevent equipment failures
industries analysed. Digitally Enabled Offerings and 110-250 and breakdowns. Combining real-time asset
Business Models condition information with predictive
analytics allows companies to predict
Advanced Customer Interaction 10-20 the likelihood of asset failures and plan
maintenance accordingly. This initiative
Click to can generate significant societal benefits,
download 2-4 308-551 including reducing CO2 emissions by
Total up to 100 million tonnes.
White Paper

MINING AND METALS:
The industry is embracing the opportunities of digital transformation and facing up to its challenges. Four themes will help
players to capture value for the industry and wider society.
Automation, Robotics Digitally Enabled Integrated Enterprise, Next-Generation

and Operational Workforce Platforms and Analytics and
Hardware Ecosystems Decision Support
Digitally enabled hardware Connected mobility, as well This theme concerns Algorithms and artificial
tools are going to perform as virtual and augmented linking operations, IT intelligence can process
or improve activities reality, can empower field, layers, and devices or data from sources within
traditionally carried out remote and centralized systems that are currently and beyond the traditional
manually or with human- workers in real time. Key separate. Important value chain to provide real-
controlled machinery. initiatives are Connected initiatives are IT/OT time decision support and
Major initiatives include Worker and Remote Convergence, Asset future projections. Key
Autonomous Operations Operations Centre. Cybersecurity and initiatives are Advanced
and Robotics, 3D Printing Integrated Sourcing, Data Analytics and Simulation
and Smart Sensors. Exchange, Commerce. Modelling and Artificial
Intelligence.
Case studies:

MINING AND METALS:
UNLOCKING VALUE
Digitalization could MINING AND METALS:
unlock more than $400 Value at stake for industry and wider society, by digital initiative (cumulative 2016-2025)
billion of value in Potential Potential Total Value Emissions Net Impact
industry and societal Business Impact Societal Impact at Stake Reduction on Jobs
($ billion) ($ billion) ($ billion) (million tonnes CO2) (000s)
benefits, which include
Smart Sensors 34 8 42 161 (40)
lives saved, fewer
Autonomous Operations & Robotics 56 19 75 396 (60)
injuries and lower
emissions. 3D Printing -- 3 3 35 --
Connected Worker 85 -- 85 -- (201)
Remote Operations Centre 77 7 84 16 (12)
Asset Cybersecurity 21 -- 21 -- --
Integrated Platforms 37 69 106 -- (5)
Advanced Analytics 11 -- 11 -- (13)
Total 321 106 427 608 (330)
Unlocking Societal Value: Connected Worker

Connected worker technologies have numerous applications in the industry. For instance, equipping workers with connected, intelligent
Click to wearables and mobile devices allows mine and plant management to capture critical information in real time. This also enables
download seamless communication; immediate, remote expert assistance, diagnosis and real-time guidance; and "follow-complete-document"
workflows that can be carried out directly in the field. Through better tracking of individuals, especially in dangerous events, it is
White Paper estimated that up to 500 lives could be saved and more than 20,000 injuries prevented over the next decade.

Duncan Wanblad
Chief Executive Officer,
Base Metals and
Minerals, Anglo
American, South Africa
“Our ageing workers

know the mines and our
young guys know
digital. When we have
been able to have
a cohesive cross-
generational team,
it has been stellar.”
37
OIL AND GAS:
The industry has a chance to move from incremental, digitally driven operational improvements to a broader embrace
of digital technologies. Four themes will play a leading role in this transformation.
Digital Asset Life Circular Collaborative Beyond the Barrel Energizing New
Cycle Management Ecosystem Energies
Connecting end-to-end Digitalization will help with Digital technologies open Digitalization promotes new
operations across the value advanced and innovative new avenues for customer energy sources and carriers,
stream can ensure that all collaboration models between engagement and provide and innovative models for the
systems, equipment, sensors and producers, suppliers and society, additional services that help optimization and marketing of
data are communicating and as well as making operations create new and innovative energy. The Oil and Gas
learning from actions. This will transparent and driving out business models. Important industry must understand the
lead to increasing efficiency, inefficient practices. Major initiatives are Digital full impact of this, and stay
productivity and compliance with initiatives are 3D Printing and Customer Services and connected with millennials.
health, safety and environmental Blockchain / Smart Contracts. Omnichannel Retail and Key initiatives include
standards. Key initiatives are New Experience-based Services. Consumer Energy Choices.
Era of Automation, Advanced
Analytics and Modelling and
Connected Worker.
Case studies:

OIL AND GAS:
UNLOCKING VALUE
Digitalization could OIL AND GAS:
unlock up to $2.5 trillion Value at stake for industry and wider society, by digital theme (cumulative 2016-2025)
of industry and societal
Potential Potential Total Value Emissions Net Impact
value. Societal benefits Business Impact Societal Impact at Stake Reduction on Jobs
include reduced ($ billion) ($ billion) ($ billion) (million tonnes of CO2e) (000s)
emissions and $170 Digital Asset Life
745 110 855 370 (114)
billion in cost savings Cycle Management
for customers. Circular Collaborative
Ecosystem
30 0.5 31 2 --
Beyond the Barrel 100 27 126 12 21
Energizing New
Energies
70 500 570 900 35
Total 945 637 1,582 1,284 (57)
Unlocking Societal Value: Consumer Energy Choices

Click to The shift to new energy sources could reduce CO2e emissions by 900 million tonnes. This initiative could also
download add about 35,000 jobs, as generation from renewables, rather than fossil fuels, tends to be more people-
White Paper intensive. Several super majors are already taking steps to mitigate this trend's impact on their businesses by
investing in green or alternative energy (but this has been excluded from our value-at-stake analysis).
PROFESSIONAL SERVICES:
Disruptive technologies are fundamentally changing the economics of Professional Services. Four themes will be central to
capturing digital value for the industry and wider society.
Business Model Intelligent Digital Agility Talent

Transformation Automation Empowerment
Digitalization empowers firms Emerging technologies such as Companies with an agile In a digitalized world, there is
to change every facet of how blockchain, artificial intelligence work culture and smart a need to reimagine what it
they go to market, including and deep learning are infrastructure can react means to be an employee
their services, value augmenting professionals’ quickly and adapt strategies and revisit the employee
proposition, target customers abilities to “do”, “think”, “learn” and processes to disruptive value proposition for the
and prices. Key initiatives are and “feel”. Major initiatives events. Important initiatives workforce. Key initiatives
Enhancing Go-to-Market include Modularizing Work and are Developing a Flexible include Reimagining Hiring,
Strategy and Fostering a Augmenting Human Intelligence. Workforce, Nurturing an Training Talent and Designing
Digital Environment. Agile Culture and Investing the Employee Experience.
in Smart Infrastructure.
Case studies:

PROFESSIONAL SERVICES: AUGMENTING HUMAN
CAPABILITIES THROUGH NEW TECHNOLOGIES
Expertise is the TECHNOLOGIES ARE AUGMENTING PROFESSIONALS’ ABILITIES TO “DO”, “THINK”, “LEARN” AND
primary product of “FEEL”
Professional Services.
THINK DO
Machines are
augmenting key human Insight Generation Communication
Kensho Quill (Narrative Science), Amelia
capabilities so that
expertise can be Creativity Presentation
provided to clients Project Dreamcatcher, BeamPro, Magic Leap
Rembrandt
more efficiently, using Organization
combinations of humans Cognition Amy Ingram (x.ai)
and machines. Watson, DeepMind
FEEL
Memory
Robo Brain Relationship Building
Crystal, LinkedIn
LEARN
Empathy
Pepper
Instinct
Click to Uniquely human
download Note: The degree to which human capabilities are
being augmented by technology is indicated by the Appearance
White Paper ideograms next to each capability.
Sophia

RETAIL:
Technology will transform retail’s end-to-end value chain. The level of change in the next 10 years will far surpass what has
been seen in the past 40 years.
Maintain Engagement Rapidly Adopt Evolve Business Manage Societal

with the Empowered Disruptive Models and Key Impacts
Customer Technologies Capabilities
Empowered consumers Eight emerging technologies* Emerging business models Transformation in the retail
demand to be actively involved will be particularly disruptive will fundamentally alter the sector has implications for
at every stage of their decision- over the next decade. Though retail landscape, impacting labour, the environment and
making journey and expect the pace of their development subcategories to varying local communities, which
increasing levels of choice, will vary, all will impact the degrees. The right capabilities will need to be managed.
control and convenience. value chain, and rapid will be needed to compete in
adoption will be critical. this evolving environment.
Case studies:
go
* The eight technologies are the IoT, autonomous vehicles/drones, robotics, 3D printing, artificial intelligence (AI), augmented reality / virtual reality, digital traceability and blockchain.

RETAIL:
FRAMEWORK FOR ANALYSING TRANSFORMATION
Empowered Consumers
4 1 • The consumer equation of Cost + Choice + Convenience is becoming more complex thanks
to the additional dimensions of Control + Experience.
• Incumbents must open up their value chain to consumers, enabling them to participate and
control a greater span of their experience.
Disruptive Technologies
Societal Impacts Empowered • Based on their widespread application, resulting efficiencies and impact on labour, AI /
Consumer machine learning, autonomous vehicles / drones, IoT and robotics will be the four most
transformational technologies to the industry (among the eight assessed).
Future of
Retail for Transformative Business Models
Consumer • If current year-on-year growth is sustained, e-commerce could reach penetration rates of
Industries more than 40% in 2026 (in digitally developed markets), which will drive $600 billion in value
for business.
2 • Four key business models will proliferate: Sharing Economy, Smart Replenishment, Curated
3
Subscription, and Do It for Me. Sharing Economy will drive the highest value at stake, with
$1.7 trillion of value for society.
Key Capabilities
• Intra- and extra-industry partnerships will be critical for developing ecosystems to remain
Disruptive competitive in the future.
Business Models and
Key Capabilities
Technologies • Last-mile delivery infrastructure currently comprises 25% of the total cost of delivery and
must become more efficient.
Direct Impact Societal Impacts
• Public-private partnerships will be critical for managing the impacts on the workforce, the
Click to Indirect Impact
environment and local communities.
download
White Paper
Noreena Hertz
Author and Visiting
Professor, University
College London
“They (13-21 year olds,

a generation I call
generation K) do not
know any different.
This is their world – this
digital ecosystem is their
normality.”
44
TELECOMMUNICATIONS:
The industry is a key enabler of digital transformation across industries, but the value of digitalization has so far eluded
telecommunications operators. Four themes will be central to capturing it.
Networks Beyond the Pipe Redefining Customer Bridging the Gap

of the Future Engagement on Innovation
Amid rising demands on Digitalization offers important To win customer mindshare The need to rapidly
networks and associated opportunities to extend in a digital world, operators accelerate innovation cycles
cost pressures, operators revenue streams beyond just must change their approach is forcing industry participants
are accelerating the connectivity. Important to identifying and exceeding to look beyond in-house R&D
development of "smart initiatives are Integrated on B2B and B2C customer and transform company
pipes" and new models of IoT, Digital Services, Winning expectations, while culture to attract the best
extending internet access. the Battle of Ecosystems, and rethinking customer service. digital talent. A major initiative
Key initiatives are Software- Reimagining Communication. A key initiative is Delighting is Outside 'In-novation’.
Differentiated Networks, the Digital Customers.
Autonomous Networks,
Cyber-resilience and
Extending Connectivity.
Case studies:

TELECOMMUNICATIONS:
UNLOCKING VALUE
The digitalization of TELECOMMUNICATIONS:
telecommunications Value at stake for industry and wider society, by digital theme (cumulative 2016-2025)
could unlock $2 trillion
Potential Potential Total Value Emissions
of value for the industry Business Impact Societal Impact at Stake Reduction
and wider society over ($ billion) ($ billion) ($ billion) (million tonnes CO2)
the next decade. By
enabling the digital Networks of the Future 440 580 1,020 183
transformation of other
industries, the sector Beyond the Pipe 650 290 940 106
also generates societal
Redefining Customer
benefits. Engagement
30 2 32 --
Bridging the Gap on

Innovation
160 1 161 --
Total 1,280 873 2,153 289
Unlocking Societal Value: Extending Connectivity

Click to Technologies such as drones, satellites and balloons are extending affordable internet access in regions with low population densities.
For telecom operators, these innovations can overcome significant cost barriers in reaching remote areas across developed and
download developing markets. The potential value to society of the Extending Connectivity initiative is $400 billion over the next decade, or
White Paper almost half of the sector's potential overall societal impact, but concerted public-private action will be needed to capture this value fairly
and at scale. Considerations include affordability, regulations that ensure fair competition, digital skills, cultural acceptance and
accountable institutions. To find out more about the DTI project, visit http://reports.weforum.org/digital-transformation
46
AUTOMOTIVE:
Connected Autonomous Digital

The car – the pre-eminent Traveller Driving Enterprise
consumer product of the
Industrial Revolution – is The car is becoming a digital Digitalization will usher in the Digital initiatives could drive
facing what may be its hub for real-time two-way era of autonomous vehicles. substantial improvements to
wireless data transfer. The Manufacturers already offer the value chain. They include
greatest moment of change.
human and the vehicle are Assisted Driving technologies, Connected Supply Chains,
Three digital themes will be moving towards total such as lane-warning crash Digital Manufacturing,
central to this transformation. connectivity across devices, avoidance and automatic Disrupted Retail, Connected
databases and objects. Key parking assistance. These Service and Maintenance,
initiatives are Infotainment, technologies could eventually Transformed Aftermarkets,
Usage-based Insurance and transform the industry with Self- Automotive Data Marketplaces
Multimodal Integration. Driving vehicles. and Connected Infrastructure.
Case studies:

AUTOMOTIVE:
UNLOCKING VALUE
Digitalization could AUTOMOTIVE:
unlock $2 trillion of Value at stake for industry and wider society, by digital initiative (cumulative 2016-2025)
Value at stake for society1
value for the industry $ billion Autonomous Driving
and society over the 1,400
next decade. Positive 1,300

Multimodal
Connected Traveller
societal impacts 1,200 Integration

Digital Enterprise
include efficient traffic 1,100
Assisted
Note:
Driving
management, reduced 1,000 1Bubble size indicates the combined industry and societal value at stake
in 2025. Total societal value at stake includes impacts on consumers,

congestion and fewer society and the environment. The impact on external industries has not
400 Usage-based been considered, and the impact on lives saved has not been quantified.
crashes. Insurance
The Connected Infrastructure initiative has not been valued.
300
Source:
200 Transformed World Economic Forum/Accenture analysis
Predictive Aftermarkets
100 Data Infotainment
Maintenance
Marketplace Multichannel Retail
0 Self Driving 3D Printing Connected Service
Digital Dealership
Smart Factories and Maintenance
-100 Value at stake for industry
-10 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 $ billion
Unlocking Societal Value: Multimodal Integration

Multimodal integration seamlessly links all forms of road, rail and ferry travel (including automobile driving and public transit), as well as
Click to walking and cycling. Full-scale integration could create more than $270 billion of societal and environmental benefits in the form of time
download savings from more efficient traffic management, reduced congestion, fewer crashes and lower emissions. It could also deliver
consumer benefits worth nearly $1 trillion through lowering the cost of car ownership. Realizing these benefits requires concerted
White Paper public-private collaborations bringing together original equipment manufacturers (OEMs), suppliers, regulators, and government
planning and tax authorities.
CONSUMER INDUSTRIES:
Digital innovation is shifting power from brands to consumers, and transferring value from traditional players to digital
insurgents. Four key themes will drive value creation for business and wider society.
Consumer Data Flow Experience Economy Omnichannel Retail Digital Operating

and Value Capture Model
Digitalization helps companies Products will evolve into With online purchases growing Smart supply chains and
use consumer data to innovate services, and services into in most categories, traditional factories will enable mass
and improve customer experiences, with data as the stores must change to stay customization of products
experiences. The growing backbone of their delivery. relevant. Omnichannel and omnichannel
importance of data will draw Hyper-personalization brings strategies will play an important experiences. A firm’s
increased scrutiny and new revenue models in an role. Consumer-products ability to manage
activism from consumers and environment where revenue is companies will also need consumer experiences will
regulators, as society puts an more closely linked to outcomes effective strategies to compete be central to gaining a
even higher premium on data for individuals and society. in e-commerce and capture competitive advantage.
privacy and transparency. value in the sharing economy.
Case studies:

CONSUMER INDUSTRIES:
UNLOCKING VALUE
The digitalization of CONSUMER INDUSTRIES:
consumer industries Value at stake for industry and wider society, by digital initiative (cumulative 2016-2025)
could unlock more than Value at stake for society 1
$ billion Consumer Data Flow and Value Capture

$10 trillion in industry 3,000
and societal value over 2,900 Experience Economy

the next decade. 2,800
E-commerce
Omnichannel Retail
E-commerce is expected 2,700
to drive much of the Digital Operating Model
2,100
societal value. Sharing Economy Note:
1
Bubble size indicates the combined industry and societal value at stake
2,000
Products to Services in 2025. Total societal value at stake includes impacts on consumers, society
1,900 and Experiences and the environment. The impact on external industries has not been
Hyper-personalization considered, and the impact on lives saved has not been quantified.
Physical Store Transformation
200 Source:
World Economic Forum/Accenture analysis
100 Smart Data Privacy &
Factories Smart Supply Chains
Transparency
0 Data as an Asset
Talent Management
$ billion
0 100 200 300 400 500 600 700 800 900 1,000 1,100
Unlocking Societal Value: E-commerce

Click to Greater e-commerce penetration is changing the retail landscape, handing pricing power from manufacturers to online retailers. It is
download also levelling the playing field, helping smaller and niche players compete against the dominant large brands. E-commerce has a
potential societal impact of $2.7 trillion as it reduces commute time by more than 250 million hours and gives access to a broader
White Paper variety of products and lower prices. B2B and cross-border platforms could further increase e-commerce’s societal impacts.

Erik Brynjolfsson
Professor of IT and
Director, MIT Initiative on
the Digital Economy
“Digitalization is creating
new types of economic
disruption … technological
progress may leave some
people – perhaps even
a lot – behind.”
ELECTRICITY:
The electricity sector is ripe for realizing value from rapid digital transformation. Value creation across the industry and
broader society will be driven by four major themes.
Asset Life Cycle Grid Optimization Integrated Customer Beyond the

Management and Aggregation Services Electron
Real-time, remote-controlled or Grid optimization is possible Digitally enabled products Hyper-personalized
predictive maintenance extends through Energy Aggregation and services relating to connected services go
the life cycle or operating Platforms, Real-time Supply energy generation and beyond the electricity value
efficiency of generation, and Demand Platforms, energy management can be chain and adapt to the
transmission or distribution Real-time Network Controls, bundled into an integrated consumer. In this way,
assets and infrastructure. Key and Connected and customer service. Key electricity stops being a
initiatives are Asset Interoperable Devices – initiatives are Energy commodity and becomes an
Performance Management, enabled by connected Storage Integration, Digital experience. The three
Digital Field Worker and Smart assets, machines and Customer Model, Energy initiatives are Living
Asset Planning. devices, and advanced Solution Integration and Services, Industrial Services
monitoring capabilities. Energy Management. and Municipal Services.
Case studies:

ELECTRICITY:
UNLOCKING VALUE
The digitalization of ELECTRICITY:
electricity could unlock Value at stake for industry and wider society, by digital initiative (cumulative 2016-2025)
$3.1 trillion in industry $ billion Asset Life Cycle Management
and societal value over 800
the next decade. Real-time Supply and Demand Platforms

Grid Optimization and Aggregation
600
Societal benefits stem Smart Asset Planning Integrated Customer Services
from value creation for 400
Connected and Interoperable Devices
Asset Performance Management
Note:
customers and a Energy
Digital Customer Model
Real-time Network Controls
1Bubble size indicates the combined industry and societal value at stake
200 Energy Solution Integration in 2025. Total societal value at stake includes impacts on consumers, society
reduction in emissions. Aggregation
Platforms and the environment. The impact on external industries has not been
Energy Storage Integration
considered, and the impact on lives saved has not been quantified. Beyond
0 Energy the Electron has not been valued for this industry.
Management
Digital Field Source:
-200 Worker World Economic Forum/Accenture analysis
-400

0 50 100 150 200 250 300 350 400 450 $ billion
Unlocking Societal Value: Real-time Supply and Demand Platforms

Click to By monitoring and communicating real-time supply and demand, and pairing it to a discriminatory pricing framework, these platforms
download change behaviours through tariffs, localized pricing signals and interconnectivity. New behaviours could save customers $559 billion
over the next decade. They could also lower peak-demand situations, thus reducing CO2 emissions by 1 billion tonnes. For this initiative
White Paper to be successful, system operators must put in place the necessary infrastructure.

HEALTHCARE:
Demographic, market and technology trends make digital transformation increasingly critical to the future of healthcare.
Four themes will drive new value for the industry and wider society.
Smart Care Care Anywhere Empowered Care Intelligent Health

Enterprises
Recent technological and Shifting care closer to home The digital economy can now Advances in data collection,
scientific breakthroughs have can broaden access to deliver a wide range of "living storage and analytics have
propelled medicine into a new healthcare and reduce the services" – intelligent digital been accompanied by the
era of smart care. Precision strain on overstretched health services that respond proliferation of data – e.g.
Medicine, Robotics and Medical systems. The technology that contextually to the user’s from sensors and devices,
Printing are making healthcare has enabled the IoT to needs. These increase Patient clinical information systems
smarter and more personalized. proliferate will open up the Engagement at Scale and and electronic health
possibility of "Care Anywhere" empower citizens to manage records. Key initiatives are
through the Virtual Care and their own healthcare, Accessible Intelligence,
Connected Home initiatives. preventing the onset of chronic Connected Worker and
conditions, such as diabetes. Intelligent Devices.
Case studies:

HEALTHCARE:
BUILDING THE HEALTHCARE SYSTEM OF THE FUTURE
Today’s model of
healthcare provision is
increasingly
unsustainable. To
deliver continued
improvements to the
world’s health, it will
need to be transformed,
with digital playing a
central role.
Click to
download
White Paper
Source: World Economic Forum/Accenture analysis

LOGISTICS:
Digitalization threatens to disrupt logistics, but could also reduce its inefficiencies and shrink its environmental impact.
Four themes will help deliver value for both the industry and wider society.
Information Logistics Delivery Shared Logistics

Services Services Capabilities Capabilities
Initiatives such as Logistics Global trade will increase The need to move physical Shared warehouse and
Control Towers and Analytics through Digitally Enhanced goods from A to B endures, shared transport capabilities
as a Service put data at the Cross-border Platforms. but delivery methods are are expected to gain
heart of logistics businesses, Logistics firms can also satisfy changing. Crowdsourcing, prominence among logistics
helping to reduce operating growing demand for faster and innovations in firms, increasing asset
costs while improving Same-day Delivery, and manufacturing (3D Printing) utilization in the near future.
operational efficiency. promote the concept of City and technology (Drones,
Logistics, which will help them Autonomous Trucks) have
operate in "megacities". widened the range of options
and opened up logistics
Case studies: markets to new players.

LOGISTICS:
UNLOCKING VALUE
Over the next decade, LOGISTICS:
digital transformation Value at stake for industry and wider society, by digital initiative (cumulative 2016-2025)
of logistics has the $ billion
Information Services
potential to unlock 1,200
$4 trillion of value for Logistics Services

1,000
industry and society. Delivery Capabilities
800
Crowdsourcing
Shared Logistics Capabilities
Shared Warehouse Capacity Digitally Enhanced
600 Cross-border Platforms Note:
1 Bubble size indicates the combined industry and societal value at stake
400 in 2025. Total societal value at stake includes impacts on consumers, society
and the environment. The impact on external industries has not been
considered, and the impact on lives saved has not been quantified.
200 Shared Transport Logistics Control Towers Source:
Autonomous Trucks Capacity World Economic Forum/Accenture analysis
0 3D Printing Analytics as a Service
Drones Same-day
Delivery
$ billion
-100 -50 0 50 100 150 200 250 300 350 400 450 650 700
Unlocking Societal Value: Crowdsourcing

Click to Crowdsourcing platforms – the "Uber" of logistics – can be a game changer. By helping smaller firms raise utilization levels, they will
make the industry more competitive and bring societal benefits, such as reductions of $800 billion in logistics costs for customers. They
download could also reduce CO2 emissions by 3.6 billion tonnes, while generating additional income for consumers who decide to use their own
White Paper vehicles to deliver goods while on personal trips. Clear regulation will be needed to promote these platforms and increase adoption.

Benedicte Javelot
Chief Strategy Officer,
Orange Group
“Customers are empowered

by digital; they have new
behaviours and new
expectations that are pushing
us to evolve. We have to be
more reactive and more agile;
we need to listen to what our
customers expect and also
track how our digital
environment is evolving.”
58
MEDIA:
Personalization and Content Partnerships and

Changing consumer Contextualization Fragmentation Industrialization
behaviour and
expectations are driving Marketers and content creators Broadcasters should exploit the Technology enables enterprises
the transformation of will need to produce growing popularity of the “second to partner with their audiences,
Personalized Content and screen” by creating integrated and to fund or co-create
media. Three themes
Personalized Advertising to second-screen services. innovative content. Technology
are central to addressing engage consumers facing Communities of Content on must be at the heart of The
these changes and information overload. instant-messaging and social Digital Organization. Key
creating industry and platforms, as well as Over the initiatives are Engagement, Co-
societal value. Top (OTT) Services, look like creation and Crowdsourcing
fertile ground for advertisers. and Flexible, Predictive,
Intellectual Property Frameworks Precise Content Creation.
for the Digital Age is another
important initiative.
Case studies:

MEDIA:
UNLOCKING VALUE
The digital MEDIA:
transformation of Value at stake for industry and wider society, by digital initiative (cumulative 2016-2025)
media represents a $ billion
Personalization and Contextualization
$1.3 trillion opportunity 400
for industry and society. 300

Content Fragmentation
Partnerships and Industrialization

200 Personalized OTT and OTT 2.0
Content Note:
1Bubble size indicates the combined industry and societal value at stake
Personalized
100 in 2025. Total societal value at stake includes impacts on consumers,
Advertising
Communities of Content society and the environment. The impact on external industries has not
0 Engagement, Co-creation been considered, and the impact on lives saved has not been quantified.
and Crowdsourcing Source:
Data Privacy Phygital World Economic Forum/Accenture analysis
-100 and Transparency
-200
Intellectual Property
Frameworks
-200 -100 0 100 200 300 400 500 600 $ billion
Unlocking Societal Value: OTT and OTT 2.0

Click to OTT services such as Netflix and Hulu are revolutionizing media. The proliferation of OTT is a $300 billion opportunity in terms of value
download to society. Its advantages include access to cheap unbundled content leading to cost savings; lower emissions due to digital
viewership; and wider access to educational resources from open-source platforms, such as YouTube and Coursera. Collaborations
White Paper between different OTT players and telecom companies, and clear regulations around net neutrality, can accelerate the development of
OTT and OTT 2.0 services.
SUMMARY OF OVER 130 INITIATIVES IMPACTING 12
INDUSTRIES OVER THE NEXT DECADE (1 OF 2)
Aviation, Travel and Chemistry and Advanced
Telecommunications Professional Services Mining and Metals Oil and Gas
Tourism Materials
Digital Customer Services –
Advanced Analytics and Simulation
Ecosystem Convergence Integrated on IoT Enhancing Go-to-Market Strategy Hyperlocal Mobile Innovation Ecosystem
Modelling
Fuel Options
Diffusion of Ownership Reimagining Communication Fostering a Digital Environment Artificial Intelligence Consumer Energy Choices
Battle for Customer Mindshare Winning the Battle of Ecosystems
Digital Services Modularizing Work Smart Sensors New Era of Automation Digital R&D
Autonomous Operations and Advanced Analytics
Smart Manufacturing Outside ‘In-novation’ Developing a Flexible Workforce Digital Plant
Robotics & Modelling
Intelligent Assets Training Talent 3D Printing Connected Worker Digital Supply Chain
Real-time Supply/Demand
Next Generation Workforce Software-differentiated Networks Investing In Smart Infrastructure Connected Worker Augmented Workforce
Balancing: 3D Printing
Digital Information Sharing and
Autonomous (Zero Touch) Designing the Employee
Remote Operations Centre Operational Transparency – Block
Networks Experience
Chain, Smart Contracts
Traveller Centricity Cyber-resilience Reimagining Hiring Asset Cybersecurity Accelerated Circular Economy
Transforming for a Digital Omnichannel Retail and Digitally Enabled Offerings and
Seamless Customer Journey IT/OT Convergence
Workforce Experience-based Services Business Models
Advanced Customer
End-to-end Propositions
Interaction
Modern Security Environment Extending Connectivity Augmenting Human Intelligence Value Chain Collaboration
Ubiquitous Tourist Safety Delighting the Digital Customer Nurturing an Agile Culture
Integrated Sourcing, Data
Data Dilemma Brand Atomization
Exchange, Commerce
Growth through digitalization Efficiency through digitalization Digital experience

(customer facing, e.g. revenue generating) (internally facing, e.g. profit generating) (the combination of growth and efficiency)

SUMMARY OF OVER 130 INITIATIVES IMPACTING 12
INDUSTRIES OVER THE NEXT DECADE (2 OF 2)
Media Healthcare Logistics Automotive Electricity Consumer
Personalized Advertising Patient Engagement at Scale Logistics Control Towers Infotainment Energy Storage Integration Data as an Asset
Personalized Content Analytics as a Service Usage-based Insurance Digital Customer Model Data Privacy and Transparency
Data Privacy and Transparency

Multimodal Integration Energy Solution Integration Data to Improve Experience
Reform
Phygital: Digital Media Becomes
Precision Medicine Drones Energy Management
Physical
"Advicetising": Advertising as Advice Robotics Autonomous Trucks Connected Supply Chain Industrial Services Physical Store Transformation
Medical Printing 3D Printing Digital Manufacturing Municipal Services E-commerce
Accessible Intelligence Crowdsourcing Disrupted Retail Asset Performance Management Sharing Economy
Engagement, Co-creation and Connected Service and

Connected Worker Circular Economy Digital Field Worker Smart Supply Chains
Crowdsourcing Maintenance
The Digital Organization Intelligent Devices Shared Transport Capacity Transformed Digital Aftermarket Smart Asset Planning Talent Management
Flexible, Predictive, Precise Content

Shared Warehouse Capacity Automotive Data Marketplace Energy Aggregation Platforms Smart Factories
Creation
Real-time Supply and Demand
Connected Infrastructure
Platforms
OTT and OTT 2.0 Digitally Enhanced
Virtual Care Real-time Network Controls Hyper-personalization in Goods
Cross-border Platforms
Connected and Interoperable Products to Services and
Communities of Content Connected Home City Logistics Assisted Driving
Devices Experiences
Health and Well-being Goods and

IP Frameworks for the Digital Age Same-day Delivery Self Driving Living Services
Services
Growth through digitalization Efficiency through digitalization Digital experience
(customer facing, e.g. revenue generating) (internally facing, e.g. profit generating) (the combination of growth and efficiency)

4.
Opportunities to
Improve the State
of the World
AT A CROSSROADS:
WHAT KIND OF DIGITAL FUTURE WILL BE CREATED?
The Fourth Industrial Having reviewed the opportunities and challenges presented by
digital technology across many industries, one thing has become
Revolution is under clear: the world is at a crossroads. New technologies are
way. Digital innovation opening up opportunities to increase economic growth, reduce
can benefit society by inequality and promote inclusivity. At the same time, the world is
deglobalizing, with civil wars and political populism driving
creating jobs, saving uncertainty about international relations.
lives and reducing
An important choice must be made: between a more open,
emissions. But these inclusive and interconnected world, or one that is closed, siloed
gains are not and unequal.
guaranteed – they Digitalization is inextricably linked to the societal and economic
depend on the forces fuelling these conflicting world views. Digital innovations
decisions taken today. can, for example, drive society towards the UN Sustainable
Development Goals, and shore up the three pillars on which they
are built: improving quality of life, fostering equitable growth and
protecting the environment. But inhibitors such as inadequate
regulation, limited innovation, and uneven adoption of technology
all undermine the opportunities that digitalization presents.
The digital revolution provides a once-in-a-generation chance to

drive radical change across the global economy. But this
transformation will not happen by itself, and its negative,
unintended consequences must be managed. Collaborative
action is needed today to bend the curve of digital transformation
towards a more prosperous tomorrow.

UNLOCKING $100 TRILLION FOR BUSINESS AND
SOCIETY FROM DIGITAL TRANSFORMATION
Reduction in
Across 10 industries, Societal1 Cumulative Value 2016-2025 CO2 Emissions Jobs
to Society and Industry ($ billion) (million tonnes) (000s)
the value-at-stake Industry
methodology identifies Consumer 5,439 4,877 223 -3,249
trillions of dollars in
value for both society Automotive 3,141 667 540 NA
and industry. Scaled up Logistics 2,393 1,546 9,878 2,217
across all industries,
and including Electricity 1.741 1,360 15,849 3,158
externalities, the
Telecom 873 1,280
estimated net benefits 289 1,1002
will be greater than Aviation4 705 405 250 -780
$100 trillion over the
decade to 2025. Oil & Gas 637 945 1,2843 -57
Media 274 1,037 -151 NA
Mining4 106 321 608 -330
2 308 60 -670
Chemistry4
(1) Total societal value at stake includes impact on customers, society and the environment; the impact on external industries has not been considered; (2)
Excludes the Extending Connectivity digital initiative; (3) Reduction in emissions for Oil and Gas refers to reduction in CO 2e emissions (4) Aviation refers to
Aviation, Travel and Tourism; Mining to the Mining and Metals industries and Chemistry refers to Chemistry and Advanced Materials.
Source: World Economic Forum/Accenture analysis
BARRIERS TO REALIZING BOTH INDUSTRY AND
SOCIETAL VALUE
Overcoming the inhibitors to transformation will unlock significant value for business and society.
Key Inhibitors Examples
1. Lack of collaboration for societal gains • Telematics is not yet mandatory in new cars or trucks. Insurers are providing
Incentives primarily focus on meeting profit targets; investors are not yet optional add-ins, but the penetration rates are still relatively small.
adequately rewarding businesses for generating societal benefits. Do • While digital technology is increasing farming yields, not all technology is passing
organizations have a strategy for selecting investors that enables them to invest on benefits to farmers and workers.
in societal benefits?
2. Regulation and protection of consumer interests • Legal frameworks around intellectual property need to be revisited for the new
Innovation is taking place at a far greater speed than regulation. Is self-regulation generation of on-demand media consumers.
supported by independent oversight workable? • Issues have arisen with regulations on drones.
3. Cannibalization of existing revenue streams • Utilities fail to lead with decentralized renewable energy products and services.
Evolutionary (GM Super Cruise) versus revolutionary (Google Lidar) innovation is • Telcos have been "strengthening the pipe", while digital businesses such as Skype,
holding back incumbents, often due to cultural anchors. WhatsApp and Facebook have transformed communications.
4. Skills for tomorrow’s workforce • From top management to front-line managers, trust in the advice provided by
Skills gaps currently exist and are expected in the future for digital roles. intelligent systems is rapidly declining.
Displacement stats vary greatly, from net positive to net negative. • Various technologies have the potential to augment and/or replace human
capabilities.
5. Technology adoption rates • Bluetooth and radio frequency identification technologies (RFID) have existed for
While some think that innovative technologies can bring significant benefits, nearly 20 years, but have only recently become ubiquitous.
others are concerned or sceptical about the impact of technological advances,
and thus do not adopt technologies as and when they become available.

IMPLICATIONS FOR BUSINESS LEADERS
How can business Create new digital business models or digital offerings
leaders change their New Business This can be done by refreshing, building, buying, partnering, investing and incubating to get
ahead of disruption. Internally, legacy systems need to transform or connect into agile
organizations to be Model interoperable platforms to enable plug-and-play interactions among the ecosystem's partners.
ready for digital This will help with asset sharing and generate new, seamlessly integrated products.
impacts? Identify attractive partners inside and outside the industry

Develop Identify and understand network partners, dynamics in the network, and the role partners want to
Ecosystems via play within the relevant innovation, supply and distribution, and offering ecosystems. This will
Partnerships provide consumers with a seamless experience and generate value for the companies involved.
An attractive ecosystem of partnerships helps to promote loyalty among customers and users.
Reinvent, even if this requires short-term disruption

Digital should be owned by the CEO and challenge the status quo, from board room to the front
Cultural Shift line. Driving a strong sense of purpose and a diverse, high-digital-quotient workforce are critical.
Leadership needs to release people’s creativity and apply lean start-up methodologies, such as
hackathons and design thinking.
Equip the workforce with tools to succeed

Reskilling current employees through continuous learning and training will support the transition
Skills of the Future
of the workforce. At the same time, educational institutions must be empowered to design
curricula that prepare the next generation to work collaboratively with intelligent technology.
Protect against attack

Data Security and Increased connectivity requires companies to invest funds, skills and capabilities to protect
Privacy their data. Spending on cybersecurity is expected to increase from an average of less than 1% of
revenues to approximately 3% over the next decade.

IMPLICATIONS FOR GOVERNMENT AND POLICY-MAKERS
How can governments Revise regulations to encompass digital
New Regulatory Regulations will need to change in an age of cross-industry collaboration and
and policy-makers Structures consolidation around digital services and platforms.
adjust regulations
for digital impacts? Protect intangible assets
Data Privacy Data security needs to be a priority as more transactions occur on digital channels. Much
& Security more consumer information will be collected in the future, and data will be far more
robust. Regulations need to keep pace with advancements in data.
Empower individual relevance

The changing nature of jobs demands that individuals develop new skill sets to remain
relevant. How can regulatory bodies, organizations and employees work together to
Skills of the Future ensure a smooth transition of skills? What options are there for governments to work with
industry to de-risk investments in areas that promise high societal and industry value,
such as the IoT and digital infrastructure?
Enable societal value creation

How new incentive structures and technologies augment the coverage, quality,
Digital Dividends affordability and relevance of digital communications needs to be determined. This will
create tangible steps for governments to follow and provide the "analogue complements"
for creating societal value.
Localize efforts
The impact of digitalization can be substantial at the local level. For example, as stores
Community Impact close and the physical retail real-estate footprint shrinks over the next decade, what can
government at all levels do to preserve local communities and mitigate negative impacts?

LOOKING FORWARD TO 2017
Using detailed industry The overall goal is to catalyse public-private multistakeholder dialogues that drive
and cross-industry actionable, informed and inclusive decisions and outcomes.
perspectives, and its
unique value
framework, the Digital Unlocking societal value and realizing impact at the
Transformation macro (regional, country and state), industry, system
Initiative will focus on and enterprise levels
three themes in 2017.
Using the operational efficiency imperatives

of Enabling the Digital Enterprise (going from strategic
direction to implementation)
Conducting an in-depth review of the B2B platform

economy from a policy perspective

MORE INFORMATION ONLINE
All materials are
available on
http://reports.weforum.
org/digital- Key features
transformation, • Mobile-responsive, platform-agnostic site
including detailed White
• 13 industry White Papers
Papers and case
studies from this • 5 cross-industry White Papers
executive summary. • 13 SlideShare summaries of White Papers
• Over 60 video snippets and mini
documentaries
• Online case-study repository
• 4 animations on digital challenges
Visit DTI
website

5.
Acknowledgements
ACKNOWLEDGEMENTS
The World Economic Forum would like to acknowledge and extend its sincere gratitude to a broad community of contributors across Partner
companies, technology start-ups, academics and experts, some of whom are mentioned below.
AccorHotels BlackPac Clariant Ericsson Health Catalyst

Adhesive Technologies Bloomberg LP Clinicas del Azucar Eurasian Resources Group Health Integrated
Agility Blue River Technology Cloudera Evonik Industries HealthTap
AirAsia BlueOak CloudFlare Facebook Heineken
Airbnb Bluesmart Coca-Cola FDA Hewlett Packard Enterprise (HPE)
Airline Safety BP Cognizant Technology Solutions Fiat Chrysler Automotive (FCA) Hitachi
Alcoa BT Columbia Center on Sustainable Flextronics International HNA Group
Alexa Capital BT Group Plc Investment Fluor Corporation HP
Amazon Web Services Burda Media Comcast Fraport Huawei
American Tower Business Development and Strategic Complete Seat and Strategy Fraunhofer Institute for Manufacturing Hyundai
Amsted Rail Alliances ComScore Engineering and Automation IPA Iberdrola
Andreessen Horowitz Business for Social Responsibility (BSR) Concur Technologies Freeport-McMoRan IBM Thomas J. Watson Research
Anglo American Carbon Clean Solutions ConocoPhillips Frost & Sullivan Centre
Antofagasta Minerals Carbon3D Conway Fung Business Intelligence Centre IHS Automotive
AnyRoad Carlsberg Group Cornell University futurethink IHS Inc.
Apollo Tires Carlson Wagonlit DAQRI GE Imperial College
ARM Carnegie Mellon School of Computer Dentsu Aegis Gerdau Indorama Ventures
Arsenal Football Club Science Design and Engineering in High German Research Center for Artificial Infosys
AT&T Cengage Learning Reliability Group Intelligence - DFKI INSEAD
AT&T Foundry Centre for Excellence in Mining Deutsche Lufthansa Goldcorp Intel Corporation
Atresmedia Digital Innovation (CEMI) DP World Google InterContinental Hotels Group
Audi AG Centrica Draper Fisher Jurvetson Grupo Arfeldt International Air Transport Association
AutoGrid Chery and Qoros Auto Chery DSM Grupo Salinas (IATA)
Automotive Ericsson China Europe International Business Duke University GSMA International Council on Mining and
AutoNation School (CEIBS) Eaton Corporation GT Nexus Metals (ICMM)
Baker Hughes Ciming Medical Examination and Health ebay Gulfstream Aerospace Corporation International Trade Union Confederation
BASF Management Group Edelman Harvard T.H Chan School of Public (ITUC)
Bayer Cisco Emirates Groups Health International Transport Workers’
Bharti Airtel Clareo Enel Harvard University Federation

ACKNOWLEDGEMENTS
The World Economic Forum would like to acknowledge and extend its sincere gratitude to a broad community of contributors across Partner
companies, technology start-ups, academics and experts, some of whom are mentioned below.
IONX Mitsubishi Chemical Holdings Prospectors & Developers Association Solvay Unilever
Jaguar Land Rover Corporation of Canada (PDAC) Song Saa Group United Nations Development
JCI Mjunction Services Proteus Southeast Asia Programme (UNDPa)
JetBlue Technology Ventures Monsanto Company Publicis Groupe Statkraft United Nations Economic Commission
JLR Nanosight QIAGEN Statoil for Africa (UNECA)
John Theurer Cancer Centre National Aviation Services Qualcomm Stratasys United Nations Population Fund
Jubilant Life Sciences National University of Singapore Qualcomm Life Suncor (UNFPA)
Juniper Networks Nestlé REMA 1000 Swarovski United States Steel Corporation (USS)
Keio University Newmont Mining Corporation RESOLVE Swiss University of Pennsylvania
KLM New York University Leonard N. Stern Reverse Logistics Group Synthace University of Queensland
Klockner School of Business Rio Tinto Tata Communications Limited UPL Limited
KPN Nielsen Robert Wood Johnson Foundation Tata Consultancy Services UPS
LetMeShip Nokia Royal Philips TATA Consulting Services US Government
Level 3 Nokia Networks Royal Vopak Tata Steel US Health & Life Sciences Industry
Liberty Global Novozymes RWE Technogym USC Marshall School of Business
Lockheed Martin Corporation Nucor Corporation Salesforce.com Teck Resources USM Holdings Limited
LVNL (Air Traffic Control Netherlands) O3B Networks SAP Telecom Italia Vale International
Mahindra OEM Insights and Solutions Saudi Basic Industries Corporation Telefónica Vattenfall
Majid Al Futtaim Holdings Omnicom Group (SABIC) Telenor Verizon
Marriot International OneWeb Saudi Telecom Company Telia Company VimpelCom
MasterCard Ooredoo Schneider Electric The New York Times Visa
Matrixx Software Orange Severstal Thomson-Reuters Voxel8
Matternet Pearson Sharing Economy Transport Intelligence Walmart
Mayo Clinic Pemex Shell Travelport Wellness Holdings SRL
Microsoft Persistent Systems Shopkick Trip38 World Steel Association
Millicom Philips Sibur TrueCar WPP
MIT Center for Digital Business PhosAgro Sight Machine Tufts University Wyndham Hotels
MIT Energy Institute Platform Strategy Labs SiGNa Chemistry Turkcell Zebra Medical Vision
Zymergen

ACKNOWLEDGEMENTS
This initiative was led by Mark Spelman (Co-Head, System Initiative on Shaping the Future of Digital Economy and Society) and Bruce Weinelt
(Head of Digital Transformation). The initiative was developed in collaboration with Accenture, led by Peter Lacy (Managing Director, Accenture
Strategy) and Anand Shah (Engagement Partner, Accenture Strategy).
Sponsorship was provided by Jim Hagemann Snabe (Chairman, World Economic Forum USA), Cheryl Martin (Head of Industries, Member of
the Managing Board, World Economic Forum), Pierre Nanterme (Chairman and Chief Executive Officer, Accenture), Mark Knickrehm (Group
Chief Executive, Accenture Strategy) and Paul Daugherty (Chief Technology Officer, Accenture).
Other contributors from the World Economic Forum include Mehran Gul, William Hoffman and Reema Siyam (DTI Project Leads), Isabelle
Mauro (Telecom), Sonja Patscheke (Professional Services), Juergen Keitel (Aviation, Travel and Tourism), Zara Ingilizian (Consumer Industries),
Ramya Krishnaswamy (Electricity), Wolfgang Lehmacher (Logistics), Gillian Davidson (Mining and Metals), Andrey Berdichevskiy (Automotive),
Arnaud Bernaert (Healthcare), Fernando Gomez (Chemistry and Advanced Materials) and Pedro G. Gomez Pensado (Oil and Gas).
Other contributors from Accenture include secondees to the World Economic Forum and DTI Project Leads: Harshdeep Jolly, Wolfgang Popp,
Margaret VanWinkle, Shishir Shroff, Alex Barrett and a number of additional contributors and subject matter experts.
The subject matter experts from Accenture include Trevor Gruzin, Chris Donnelly, Mark Pearson, Bernd Kreutzer, James Wildenburg, James
Collins, John Lichtenstein, Liselotte De Maar and Oliver Wright.
Other subject matter experts are referenced in the individual White Papers.

To find out more about the DTI project, visit
http://reports.weforum.org/digital-transformation

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In collaboration with Accenture

Unlocking $100 Trillion

Cheryl Martin Jim Hageman Snabe Pierre Nanterme

To find out more about the DTI project, visit http://reports.weforum.org/digital-transformation 2

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1 Introduction to the Digital

This executive summary introduces the approach taken to unlocking

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Examples of the falling cost of key technologies

2000 $2.7 billion

Internet of Things (IoT) Robots and drones Social media

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In section three, in-depth industry reviews are presented. Thirteen

Finally, drawing on these cross-industry themes and industry reviews,

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Companies are New efficiencies Customer Experience New business

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Corporate spending ($ billion)

Big Data Analytics)

Revenue, EBITDA ($ per employee)

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Enterprises need to Products and services Hyper- Ownership

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The low cost and easy availability of

This trend becomes highly relevant in

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Cohealo, a US-based technology company,

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“Do not reinvent the

Digital business Digital operating Digital talent Digital metrics

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ORGANIIZATION PROCESS PEOPLE CULTURE KPI

EXTRA FRUGAL Supply and

DATA-POWERED Centre of Supported by

OPEN AND LIQUID Constant

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Why is digital traction important?

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Driving transformed Helping ecosystems Creating a win-win

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Platform strategies shape operational capabilities to deliver desired

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Digital transformation is Employment Sustainability Trust

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estimated $100 trillion of Allocated Capital

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Value to Society Value to Business

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Living Travel Enabling Travel Digital Enterprise Safety and Security

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Total 405 705 1,110 250 (780)

Unlocking Societal Value: End-to-End Propositions

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Digitalize the Go Beyond the Collaborate in

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