埃森哲-欧洲加速恢复：将增强竞争力的双重战略（英文）-2021.2-40页_1mb

Summary of "The European Double Up: A Twin Strategy that will strengthen competitiveness"

Core Content

This document outlines the concept of the Twin Transformation, which combines sustainability and digital technologies to enhance future competitiveness for European companies. It emphasizes that companies leveraging both strategies—referred to as Twin Transformers—are 2.5x more likely to be among Tomorrow's Leaders compared to those focusing on only one area.

Main Viewpoints

• Twin Transformation is key: The integration of sustainability and digital technologies is critical for future competitiveness. It enables companies to drive innovation, improve efficiency, and align with growing societal and investor expectations.
• European companies are lagging: Despite an early lead in sustainability, few European companies are fully embracing the Twin Transformation. There is a notable gap in digital technology adoption compared to other regions.
• Recovery from the pandemic is uneven: European companies face slower recovery than those in APAC. Only a few industries (Health, Pharmaceuticals, Software & Platforms, Communication & Media) are expected to return to pre-pandemic growth within 12 months.
• Investor and stakeholder interest is rising: Sustainability is increasingly featured in European earnings calls, with a significant rise in mentions since 2014. However, few companies discuss the intersection of sustainability and digital technologies in conjunction.
• Agility and resilience are vital: Companies that are Tomorrow's Leaders demonstrate greater agility and resilience during the crisis, especially in decision-making speed and operational flexibility.

Key Information

Industry Performance and Recovery Outlook

• Europe's Recovery: Expected to take up to 18 months due to lingering pandemic effects.
• Industry Breakdown:
  • Tomorrow's Leaders: 32% of European companies are positioned for profitable growth.
  • Falling Angels: 19% of European companies are at risk of struggling to recover.
  • Reinventors: Only 4% of European businesses have reinvented themselves during the crisis.
• Regional Comparisons:
  • APAC executives are more confident in achieving 2021 growth targets (60%) than European (45%) or US (48%) executives.
  • Europe has the largest share of Falling Angels (19%) among the three regions.

Twin Transformers: Leaders in the Twin Transformation

• Definition: Companies that are pioneers in both sustainability and technology.
• Performance: Twin Transformers are 2.5x more likely to be Tomorrow's Leaders.
• Investment Trends:
  • 45% of Twin Transformers invested more than 10% of their revenue in innovation pre-pandemic, rising to 57% in the rebound phase.
  • European companies are investing in AI, Cloud, and Green Cloud technologies to reduce the carbon footprint of IT systems and technology investments.

Strategic Imperatives for Twin Transformation

• To set the direction: Foster ecosystem-based business models that are driven by sustainability and enabled by technology.
• To start the journey: Combine resources to scale digital applications to sustainable practices.
• To deepen impact: Create organization-wide ownership by integrating financial and non-financial KPIs.
• To achieve scale: Align partners for sustainable product lifecycles and improved traceability.

Examples of Twin Transformers

• Ørsted: Shifted to renewable energy, achieving a 75% green energy output by 2018 and using AI and Cloud for optimization.
• Schneider Electric: Convened the NEO Network™, collaborating with Walmart to reduce CO₂ emissions through the Project Gigaton initiative.
• Christian Hansen: Invests in R&D for sustainable agriculture and uses digital technologies like AI and automation.
• Siemens: Leverages digital twin technology to optimize environmental performance and has declared it a Company Core Technology.

Challenges and Opportunities

• Motivation for Sustainability: European companies are driven more by environmental and societal pressures than by business opportunities.
• Investment Gap: Europe has a historic investment gap in innovation, which needs to be addressed to support the Twin Transformation.
• EU Recovery Funding: Provides an opportunity to boost investment in sustainability and digital innovation.

Investor and ESG Considerations

• Sustainability in Earnings Calls: 47% of European top 2000 companies discussed sustainability in 2020, up from 27% in 2018.
• ESG Leadership: European companies often score higher in sustainability indices but lag behind in digital technology adoption.

Conclusion

• The Twin Transformation is a strategic imperative for European companies to regain and maintain competitiveness.
• Action is needed now to bridge the gap in digital adoption, foster ecosystem-based models, and align KPIs with sustainability goals.
• The time to act is now to ensure Europe remains a leader in the global shift towards sustainable and digitally enabled business models.