IndustryAdvantage™
Unlocking industry advantage through tech investment
Explore an analysis across six key industries
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Navigating industry disruption with smart technology investments
In a rapidly evolving digital landscape, it’s becoming clear that the technology investments businesses make today can create a competitive advantage tomorrow. To gain an industry advantage, organizations should look beyond the enterprise functions and focus on the strategic areas—commercial, products, and operations—to determine what can give them an edge.
This report builds on over two years of research, as we delve into how organizations across sectors are harnessing industry disruption. They’re utilizing the power of innovation and digital transformation to create unparalleled opportunities. Our research analyzed almost 2,000 data points to determine the unique value drivers and key performance indicators (KPIs) that are shaping the future of these industries.
The analysis covers six key industries and seven technologies experiencing high investment levels: (1) cloud-native applications, (2) cloud platforms, (3) traditional AI, (4) data analytics, (5) zero trust security, (6) federated security, (7) and identity and access management (IAM).
The top three KPIs or “tech value signals” are indicative of where leaders may be seeking an industry advantage from these technology investments. Read on to discover how survey respondents are directing their technology investments—and the tech value signals they’re using to build and assess their resulting industry advantage. And download our comprehensive analysis to take a deeper dive into the tech value insights across all six industries.
Assessing tech value: Comparing KPIs across sectors
Source: Deloitte Center for Integrated Research analysis
“Customer retention rate” KPI
Consumer respondents investing in zero trust security capabilities are 20 percentage points more likely (81%) than those in other industries (61%) to use “Customer retention rate” as a KPI
using “Sustainability” KPI
ER&I respondents investing in traditional AI capabilities are 19 percentage points more likely (73%) than those in other industries (54%) to use "Sustainability" as a KPI
using “Automation spend” KPI
FSI respondents investing in cloud-native application capabilities are 16 percentage points more likely (73%) than those in other industries (57%) to use “Automation spend” as a KPI
GPS respondents investing in identity and access management capabilities are 17 percentage points more likely (69%) than those in other industries (52%) to use “Workforce diversity” as a KPI
“R&D spend on digital technology” KPI
LSHC respondents investing in federated security capabilities are 24 percentage points more likely (69%) than those in other industries (45%) to use “R&D spend on digital technology” as a KPI
“Sales of new digital products” KPI
TMT respondents investing in cloud platform capabilities are 26 percentage points more likely (71%) than those in other industries (45%) to use “Sales of new digital products” as a KPI
Consumer
Investing in zero trust security capabilities to track intangible asset and customer retention rates
Amid a climate of industry disruption and unprecedented transformation, consumer organizations are highly focused on trust—and, specifically, on zero trust security capabilities that require customer authentication or verification to protect customer data.
Habeeb Dihu, partner, Deloitte Consulting LLP, and US Cloud and CIO Advisory Services leader for Retail and Consumer Products, explains, “As privacy and security-first innovations continue to become more ubiquitous and consumer-friendly, we expect to see upstart brands be able to neutralize some of this reputational advantage over time … Trust takes a lifetime to build and a moment to lose is often top of mind as companies continue to invest in this space.”
Energy, resources, and industrials (ER&I)
Higher emphasis on sustainability measures for cloud-native and platform, traditional AI, and zero trust investments
Due to climate change, extreme weather events have become more frequent and severe, posing a threat to power lines and equipment. To help address this challenge, utilities should consider allocating more budget and resources like Internet of Things (IoT) sensors to monitor and handle the vegetation along their networks. This requires a full-stack tech solution that is cloud native.
In the future, ER&I organizations expect Generative AI (GenAI) to bring greater innovation and growth benefits by “deploying technologies that enable them to achieve their sustainability goals through electrification, increased reusability, and improved asset efficiency,” explains Rick Perez, GenAI leader for Energy, Resources, and Industrials for Deloitte Consulting LLP. “AI technology at the edge, interconnected with cloud-native applications, provides a scalable technology platform for progressing these objectives.”
Financial services
Using a broader set of KPIs for federated and zero trust security investments
The financial services industry’s numerous KPIs are necessary to understand how investments in cloud, AI, or cyber are moving the needle in terms of risk reduction, revenue growth, customer experience, and developer productivity. In light of heavy digital transformation investment, there is a constant need to validate the return of the transformation across many KPIs.
Nikhil Roychowdhury, partner, Banking & Capital Markets, and Cloud Strategy leader for Deloitte Consulting LLP, says, “We are seeing many leading financial services institutions (FSIs) taking steps to invest in the right data and tooling ecosystem that can enable more self-serve visibility into these KPIs.” FSIs operate in a heavily regulated ecosystem with trust as a cornerstone of digital transformation success and a need to balance speed and risk to drive an industry advantage.
Industry leaders can use these insights to better triangulate where their industry peers are investing in technology capabilities and the expected value drivers.— Diana Kearns-Manolatos, research leader, Technology Transformation, Deloitte’s Center for Integrated Research
Government and public services (GPS)
Those investing in zero trust security over-index on using organizational trust, sustainability, and workforce inclusion
Technology has the potential to revolutionize how the government delivers services to its citizens, especially GenAI. However, trust in AI must be established and governed.
Vineet Gupta, principal, Deloitte Government and Public Services, explains, “Without trustworthy AI, Generative AI technologies are not secure, can deteriorate trust, and create adverse results. Trustworthy AI can help mitigate these risks, increase public trust in AI, and encourage economic growth and global competitiveness."
Life sciences and health care (LSHC)
Investing in cyber capabilities with a focus on R&D spending and organizational trust KPIs
Life sciences and health care companies that participated in our value survey are investing in cyber—both federated security and zero trust security capabilities—likely to help better enable trusted data solutions across research, clinical trials, and drug development and delivery, thus fostering greater innovation and problem-solving.
“GenAI has the potential to transform the way life sciences and health care organizations fight disease, engage in clinical trials, and research and deliver life-enhancing therapies and life-saving cures,” says Bill Fera, principal, Deloitte Consulting LLP and Deloitte US GenAI leader for Life Sciences and Health Care.
Technology, media, and telecommunications (TMT)
Valuing sales of new digital products across several tech capabilities
New methods of achieving value require new metrics of progress. TMT leaders are more likely to use sales of new digital products to measure digital value gained from their cloud-native apps and platforms, traditional AI, data analytics, federated security, zero trust security, and IAM investments and, in doing so, drive their own competitive advantage.
Gopal Srinivasan, principal, Deloitte Consulting LLP, says, “Technology, media, and telecommunications leaders are on the front lines of today’s technology revolution. They are steadfast in spotting opportunities for business model disruption and bringing new products to market that help enable the market at large to adopt new technologies and services. This is often true of technology companies bringing products for AI, cloud, cybersecurity, and so on. It can also be true of media companies bringing digital services, such as social video and shoppable media, and enabling creator monetization. That’s a large area of investment as well as sources of value creation for them.”
What’s your advantage?
Creating an industry advantage starts by understanding what’s shaping the future of your sector and how your business can transform using strategy, technology, engineering, and innovative talent to create opportunities and value. Various indicators should all be considered as leaders think about how they’ll use their technology investments and the power of their wider digital ecosystem to drive an industry advantage.
If you’re looking to tackle the complex commercial, product, and operations challenges of today or to advance your organization’s front-office transformation, Deloitte IndustryAdvantage™ can be your gateway. Connect with us, and learn how you can adopt the digital prowess needed to navigate and lead in your industry.
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Get in touch
Brian Campbell
Principal
Technology-Powered Business Transformation Co-leader
Deloitte Consulting LLP
briacampbell@deloitte.com
+1 415 735 8651
Diana Kearns-Manolatos
Senior Manager
US Technology Transformation Research Leader
Center for Integrated Research
Deloitte
Services LP
dkearnsmanolatos@deloitte.com
+1 212 436
3301
Michael Stephan
Principal
US Consulting Clients & Industries Leader
Deloitte Consulting LLP
mstephan@deloitte.com
+1 973 602 5250
Lynne Sterrett
Vice Chair
US Clients, Industries & Insights Leader
Gen AI Marketplace Leader
Deloitte Consulting
LLP
lsterrett@deloitte.com
+1 312 420 7397