Report: Digitising business operations can save 80% CapEx costs


A new study reveals tangible benefits for businesses and organisations globally when they lead with digital transformation in energy management and automation.

Digitising business operations can result in up to 80% savings in CapEx (Engineering Costs and Time Optimisation); and a whopping 85% savings in OpEx (Energy Consumption) reported

Schneider Electric ‘s report, the Global Digital Transformation Benefits Report 2019 , is based on a study of 230 customer projects over the last 5 years, producing deep, quantifiable, business benefits.

At the core of this report are 12 key business benefits of digital transformation. These benefits are divided into three categories, each essential to effective marketplace competition: capital expenditure (CapEx), operational expenditure (OpEx), as well as sustainability, speed, and performance.

The Report focuses on four key sectors of the economy – buildings, data centers, industry, and infrastructure – all undergoing transformations that will fundamentally change the way people will live, work, and play.

Significant CapEx and OpEx savings

The evidence presented by the report puts to rest concerns in the market that digital transformation is an expensive Capital Expenditure proposition involving new systems and difficult integration into existing processes.

The customer projects studied in the report demonstrate the opposite.

The study shows that digitisation of engineering processes, for instance, can save businesses and organisations an average of 35% in CapEx costs and time optimisation. Further, commissioning costs of new systems and assets can be reduced by an average of 29%.

The study also reveals that digitisation, by harnessing IoT, can result in significant savings in Operational Expenditure – leading to step change improvements in efficiency, reliability, safety, and sustainability. Businesses and organisations report an average savings of 24% in energy consumption, as a result of digitisation.

In Industrial applications, digital transformation allows businesses to do more with less – more yield with less energy, fewer materials, and fewer labor hours. Increased productivity, up to 50%, results from energy management and automation efficiencies across the value chain, from IoT-enabled tracking to automated production lines.

“Digital transformation is the only way of delivering consistency and efficiency across a company. Technologies such as the Internet of things (IoT), artificial intelligence and big data analytics are making companies more efficient and innovative, boosting their competitive advantage,” said Jean-Pascal Tricoire, chairman and CEO of Schneider Electric.

Click here to download the Global Digital Transformation Benefits Report 2019 for full details, customer examples, and evidence for the operational, financial, environmental, and strategic value of digital transformation.