Asset-Intensive Sectors Have Positive Spending Plans For 2020

Published 29 October 2019 by David Metcalfe &

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Executive Summary

This report provides an industry-level breakdown of spending plans for 2020 operational excellence programmes based on interviews with 284 managers in operations, reliability and maintenance roles. A majority of firms in the survey (52%) expect to increase nominal spend on operational excellence by 5% or more in 2020 compared to 2019. Just 1% of the respondents anticipate a budget cut in 2020. The outlook for operational excellence spending is therefore a positive one. At the industry level, expectations of double-digit increases range from 9% to 24% of respondents which should shape the strategies of technology vendors. Only three industries have a quarter or more of firms anticipating no increase or a reduction. Tech providers and service providers with a focus on chemicals and general manufacturing should do more due diligence on their prospects in 2020 as these sectors have the least promising spending plans. Only a minority of firms in these sectors will buy into big new propositions such as digital twin simulations and enterprise-scale APM software.

Table of contents

Healthy Increases Expected For 2020 Operational Excellence Budgets
Tech Vendors And Services Firms Should Capitalize On A Positive 2020 Budget Outlook

Table of figures

Figure 1. Budget Expectations For 2020 Operational Excellence Programmes

About the author

David Metcalfe


David co-founded Verdantix in 2008 and leads the firm’s research and advisory work on the digitization of Operational Excellence which covers software, systems integration, wearables and drones. Prior to founding Verdantix, David was a Senior Vice President at Forrester Research and Head of Analysis and Forecasting for BT. He holds a PhD from Cambridge University in Game Theory and Decision Analysis and worked as a Research Associate at the Harvard Business School.

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