Companies are prioritizing digitalization investment in areas such as Environment, Health and Safety (EH&S), as well as Sustainability, and Cybersecurity INVESTMENT IN SAFETY, SUSTAINABILITY AND CYBERSECURITY Safety incidents remain an issue with key impacts quoted as: 1. SAFETY According to the US Environmental Protection Agency, more than 20% of global greenhouse gas emissions are derived from the industrial sector. Digitalization can support a more efficient way of using raw materials, energy, water, and land. 2. SUSTAINABILITY To mitigate the impact, companies are investing in the following technologies within the next 12 months 44% damaged property /equipment 55% days of employee off work or transferred 90% digital training 79% digital auditing 83% digital workforce 57% production downtime The proportion of companies using EH&S enterprise-wide commercial system will more than DOUBLE over the next 3 years Cybercrime cost US businesses an estimated $3.5 billion in 2019, according to the FBI. However, challenges still faced as a result of having a robust cybersecurity solution include: Impact experienced because of cyber attacks include: 3. CYBERSECURITY Key drivers for investing in operational sustainability: Investment in digitalization facilitates the implementation of sustainability technology 84% 63% 39% of companies are currently investing or planning to invest in energy management software in the next 2 years plan on introducing a plant energy and/or renewable energy system in the next 12-36 months plan on introducing a smart grid energy system in the next 12-36 months 77% Reduce energy consumption 61% Reduce waste 64% Improve workplace safety 57% Reduce emissions 32% of companies have been impacted by a cybersecurity incident within the last 3 years 32% Loss of IP 88% of companies have made a moderate/significant increase in focus on cyber security over the last three years 80% of companies that have not implemented controlled access to electronic data and systems, plan to implement over the next three years 32% Production efficiency 46% Loss of sensitive data CYBERSECURITY IS THE FACILITATOR THAT ENABLES DIGITAL TRANSFORMATION 59% limited cybersecurity awareness amongst employees 48% difficulty integrating separate security solutions Brought to you by Informa Tech Omdia is a global technology research powerhouse, established following the merger of the research division of Informa Tech (Ovum, Heavy Reading and Tractica) and the acquired IHS Markit technology research portfolio. We combine the expertise of over 400 analysts across the entire technology spectrum, analyzing 150 markets publishing 3,000 research solutions, reaching over 14,000 subscribers, and covering thousands of technology, media & telecommunications companies. Our exhaustive intelligence and deep technology expertise allow us to uncover actionable insights that help our customers connect the dots in today’s constantly evolving technology environment and empower them to improve their businesses - today and tomorrow. © 2021 Omdia. All rights reserved. Unauthorized reproduction prohibited. THE ROAD TO DIGITALIZATION now and then However, major challenges need to be addressed to ensure successful transition, including: 90% of companies are evaluating digitalization investment 78% say investment in digitalization will increase over the next 24 months 57% expect investment in digitalization to increase this year 21% of companies expect significant increase (more than 20%) in digitalization over the next 24 months 67% Legacy assets and infrastructure 62% Competing priorities 58% Culture change 56% Upfront cost The transition to digitalization is already taking place... INTRODUCTION