Importance of Industry X.0
The growing popularity of the IoT (Internet of Things) continues to boost Accenture’s (ACN) Industry X.0 platform. Industry X.0 is helping different companies to reinvent and manufacture equipment with smart, connected products and services using advanced technologies, including the IoT, connected devices, and digital platforms.
The company is already providing support to an Italian manufacturing company called BSA Group to drive its digital platform. Accenture is helping the company to deploy connected services across its installed base of 20,000 industrial machines, from management alerts to in-depth analytics. The implementation of Accenture’s Industry X.0 services has allowed BSA to save on costs and boost its business.
The launch of such innovative services may continue to drive the company’s bookings. In the chart above, we can see Accenture’s bookings trend over the last five quarters. During the period, it grew at a CAGR (compound annual growth rate) of 4.7%. At the end of the fiscal third quarter, the company’s total bookings came in at ~$11.8 billion.
New acquisition to boost Industry X.0
In June, Accenture announced that it had agreed to acquire German-based company designaffairs, which deals in strategic designs. The acquisition could help the company build smart products and services that are industry ready for manufacturing. In February, the company bought Mackevision, a leading global producer of 3D-enabled and immersive product content.
Accenture is targeting the B2B (business-to-business) market. It plans to make heavy investments in Industry X.0 in fiscal 2018 as well as over the next three years, which could help it to gain a significant share in the B2B market, allowing it to counter competition from other tech giants such as Microsoft (MSFT) and IBM (IBM).