A recent study by Accenture has shown that the smarter use of digital skills and technology could boost the global economic output by up to $2 trillion by 2020.
Optimizing the use of digital skills and technologies could generate $2 trillion of additional global economic output by 2020, according to a new study by Accenture (NYSE: ACN). The study also reveals the vast role digital plays in economic activity, with more than one-fifth of the world’s gross domestic product (GDP) attributed to some form of digital skills, capital and goods and services.
The Accenture Strategy report, Digital Disruption: the Growth Multiplier, provides a new and comprehensive measure of the scale of the digital economy in 11 major countries. It estimates the value added to GDP by hardware, software and related technologies and by workers who need these digital assets to do their jobs. It also calculates the value of intermediate digital goods and services used in production.
A little more than one-fifth (22 percent) of world output is linked to this digital economy of skills and capital. The US is the world’s most digital economy, with existing digital investments accounting for 33 percent of its output. Forty-three percent of the U.S. labour force and 26 percent of its accumulated capital are capable of supporting digital related activity. The digital economy in other markets varies from more than 30 percent in the UK and Australia to 13 percent in China.
“Businesses and governments are turning to digital to secure faster growth amid an uncertain global economic outlook, but the size of the digital economy is no guarantee of growth,” said Mark Knickrehm, group chief executive, Accenture Strategy. “Organizations need to act aggressively in shifting the focus of their digital talent and technology from making efficiencies to creating entirely new business models. That requires not just greater digital investments, but broader organizational and cultural transformation in order to yield the greatest returns.”
The report states that in order to generate higher rates of growth, companies will need to improve their Accenture Strategy Digital Density score, which tracks the extent to which digital penetrates a country’s businesses and economy. This includes digital skills and technology, as well as broader enabling factors such as the ease of access to finance and the openness of a country’s regulatory environment.
For example, a 10 point increase in the overall digital density of the U.S. economy would result in a $368 billion uplift to 2020 GDP, 1.8 percent higher than current forecasts. But Accenture Strategy calculates that an optimal combination of improvements to digital skills, capital and other accelerators could lift U.S. GDP by an even greater $421 billion by 2020, representing a 2.1 percent boost. The countries with the greatest opportunity for improving their overall digital performance are Brazil (6.6 percent), Italy, (4.2 percent), China (3.7 percent) and Japan (3.3 percent).
The study shows how each national economy could best prioritize its extra efforts to achieve the greatest boost to revenues and economic output. For example, 70 percent of Brazil’s extra digital efforts should be focused on the improved application of technology, such as cloud and analytics, whereas greater efforts in digital skills would generate less of an economic return. In the US, however, just 10 percent of extra digital efforts need to be injected into technology, while a greater return will be gained from boosting digital skills and broader enabling factors.
Platform based models are the key to growth
According to the report, platform business models represent one of the greatest opportunities for digitally driven growth. These models allow organizations to create new markets and uncover value by bringing partners and customers together across a common digital platform. In many cases, platform players can enjoy strong growth without having to own or manage assets, helping them expand with low marginal costs.
While ‘born digital companies’ dominate the platform economy today, the Accenture Strategy report suggests that traditional industry incumbents could be among the greatest beneficiaries of platform strategies by combining their customer reach and product portfolios with the networking power of the platform.
“The high growth rates experienced by many digital companies can now be enjoyed by traditional industry incumbents if they apply platform models to create an ecosystem of partners and customers in which they can offer new value added services,” said Bruno Berthon, managing director, Accenture Strategy. “Companies need to shape their platform strategies and define their role as platform leaders or participants before aggressively forming partnerships that can deliver new value.”
The report recommends three broad actions that can improve the application of digital business models to drive higher levels of productivity and growth:
· Prioritize digital investments based on value opportunities: Assess carefully the balance of digital investments so that an optimal combination of improvements to skills and technology can maximize returns on digital investments
· Compete using an industry-specific digital strategy: Be clear on which platform, what roles, and which data are fundamental to compete successfully in your industry.
· Create the right environment for digital transformation: Improve your “digital IQ,” teaming with government to open up cross-industry relationships and change the rules of competition.
SAFTA awards get first streaming video nominees
The 2019 nominations for The South African Film and Television Awards (SAFTAs) were announced late last week, and for the first time in the 13-year history of the awards, a TV series produced for a video-on-demand service was in contention. The result was a surprise boost to streaming service Showmax.
The comedy series Tali’s Wedding Diary, which premiered in December 2017, represented a major step for the then two-year old streaming service. It was the debut Showmax Original, the first time Showmax ventured into producing its own content. The gamble paid off, with the show becoming the most watched of any series on its first day on Showmax, and now Tali’s Wedding Diary has been further recognised with seven SAFTA nominations, making it this year’s most nominated comedy.
“When we first floated the idea of Tali’s Wedding Diary, we joked about winning awards,” says Candice Fangueiro, Showmax’s head of content. “At that point, just getting our first Showmax Original off the ground was already a major challenge and it was more than we could hope for to actually hit it out of the park. I was stunned when I heard the news about the nominations – it’s amazing to be considered in the same company as these other shows and thanks to this we’re already seeing a fresh spike in Tali views.”
Tali’s Wedding Diary was also a first for co-creator and star Julia Anastasopoulos, who until then was best known as YouTube star SuzelleDIY. “I am so thrilled about the SAFTA nominations for Tali’s Wedding Diary,” says Julia, who is up for Best Actress – TV Comedy and Best Achievement in Scriptwriting – TV Comedy, along with her husband Ari Kruger and Daniel Zimbler.
“It was such a big and daunting step to create a full TV comedy series and intro a brand-new character. I really didn’t know how it would be received and am so happy to have received such positive feedback for the show and the Tali Babes character, along with the nominations. It feels so good to be recognised for something we poured our hearts into. None of it would have been possible, of course, without the incredible hard work and vision of my husband Ari and the incredible team, cast and crew that were part of the show. And a huge thank you to Showmax of course for making it all possible. Congratulations and best of luck to the entire team and to all the other nominees.”
Tali’s Wedding Diary is a mockumentary that follows Tali, a self-obsessed Joburg princess who’s moved to Cape Town and is planning her wedding to property-agent fiancé Darren (Anton Taylor). The series was inspired by Julia’s own wedding to Ari, her SuzelleDIY and Tali’s Wedding Diary co-creator, who is also up for Best Achievement In Directing – TV Comedy.
In addition to Julia and Ari’s nominations, Tali’s Wedding Diary is up for Best TV Comedy, Art Direction (Keren Setton), Cinematography (James Adey), and Editing (Richard Starkey). Winners will be announced on 2 March 2019 at Sun City Superbowl.
Following the success of Tali’s Wedding Diary, the second Showmax Original, The Girl From St Agnes, was released earlier this month. A third Showmax Original, Trippin With Skhumba, is slated for release at the end of February.
“With three Showmax Originals now under our belt and more on the way, we’d like to think this is the start of many more SAFTA nominations for shows from a streaming service,” concludes Candice.
South African content currently on Showmax has 110 nominations and includes the most nominated movie (Five Fingers With Marseilles), telenovela (The River), drama (Lockdown) and soap (Isibaya), with more SAFTA nominees scheduled for the coming months.
Ford begins production of high-tech Ranger in SA
Ford’s Silverton Assembly Plant in Pretoria has officially commenced production of the new Ford Ranger, bringing a raft of product upgrades and refinements to one of South Africa’s best-selling vehicles and export models.
“Following the investment of over R3-billion in our local operations and extensive upgrades to our plants over the past 18 months, we are delighted to see the first of the new Ford Ranger models coming off our production line,” says Neale Hill, managing director for Ford Motor Company Sub-Saharan Africa Region.
“This is an extremely important and exciting year for the Ford Ranger, which will also see the launch of the first Ranger Raptor that is undoubtedly one of this year’s most highly anticipated new models,” says Hill.
“The 2019 Ford Ranger will deliver more power, greater fuel efficiency, enhanced refinement, and additional advanced technologies when it goes on sale in the coming months, and we are confident it will once again set the benchmark in the extremely competitive pickup segment.”
Selected range-topping models, including the Ranger Raptor, will be powered by the all-new 2.0 Bi-Turbo diesel engine assembled at Ford’s Struandale Engine Plant in Port Elizabeth. This unit produces 157kW and 500Nm of torque – up by 10kW and 30Nm compared with the current 3.2 TDCi – and delivers up to a nine percent improvement in fuel efficiency when combined with the advanced new 10-speed automatic transmission.
Certain derivatives will feature a 2.0 Single Turbo version of this engine, producing 132kW and 420Nm of torque, mated to the same 10-speed transmission. Various other models in the line-up will retain the proven 2.2 and 3.2-litre Duratorq TDCi engines and existing gearbox options – thus giving customers the widest choice yet in this category. As usual, the line-up includes Single Cab, Super Cab and Double Cab body styles to suit customer requirements.
Along with freshened design cues, range-topping Ranger models will raise the bar once again with industry-defining safety features on the Wildtrak such as Pre-Collision Assist and Active Park Assist. SYNC 3® with Navigation remains one of the Ranger’s technology highlights as a fully featured infotainment system with intuitive voice control.
Following the launch of the ‘standard’ new Ford Ranger models, the attention will be shifted to the locally assembled Ranger Raptor that is set to create an entirely new segment in the pickup market when it makes its eagerly anticipated debut.
“There is a lot of excitement and hype around the Ranger Raptor, and this exhilarating new model will occupy a white space in the pickup market when it goes on sale in the second quarter of this year, creating a much-needed performance model in this crucial segment,” Hill states.
“We can’t wait to get the Ranger Raptor to market, enabling our customers to experience unrivalled off-road performance, cutting-edge technologies and the most muscular design yet seen in this class.”
Some of the defining features of the Ranger Raptor include Position Sensitive Damping (PSD) shock absorbers exclusively manufactured by FOX, and an advanced Terrain Management System (TMS) that includes an exciting Baja mode for fast off-road driving. It also boasts a toughened reinforced chassis, powerful all-disc braking system and specially developed BF Goodrich tyres.