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TECHNOLOGIES WITH THE HIGHEST POTENTIAL Accenture's reserach indicates that the R5 trillion in value that can be created for the South African economy through use of digital technologies will primarily be realised through the application of 96 digital initiatives across nine industries and five government sectors. These initiatives will rely heavily on a few key digital technologies. Internet of Things (IoT) and connected devices have the highest potential to deliver value. Artificial intelligence (AI), supported by new skills and a recalibration of business culture, and platforms can also drive substantial value creation. Of these technologies, the value potential of IoT is likely to be the highest over the next decade due to the combined effect of the increasing affordability of smart devices and the widespread adoption of these tools by individuals and companies. IoT creates value for companies through cost savings and efficiency improvements, and helps consumers achieve higher productivity levels. However, for IoT to be successful, South Africa must invest in the right infrastructure, enhancing skills and capabilities, and ensuring the security aspects of IoT use cases. AI, combined with uniquely human capabilities, will deliver more than just efficiency—it will add value and drive business growth. Accenture calls this combination of machine and human ingenuity 'applied intelligence'. It will revolutionise how work is done, how customers interact with businesses and how citizens interact with governments. As AI matures, it can propel economic growth and serve as a powerful remedy for stagnant productivity and labour shortages. A recent Accenture and GIBS study indicates that by embedding AI, South Africa can potentially double the size of the country's economy five years earlier. 5 However, AI will demand new skills, the redefinition of jobs and a recalibration of business culture and leadership. Platform ecosystems can create a foundation for value creation by enabling new business models and strategies which will profoundly change the way companies engage with customers. Platforms can grow exponentially as a result of network effects which allow for the benefits of platforms to be magnified. Recent Accenture research indicates that there is still substantial room for South Africa to capitalise on the opportunity presented by the platform economy. 6 Big data and analytics will underpin digital transformation. Collecting data, making sense of it and using advanced analytics to make better decisions and optimise operations are just the beginning. Big data and analytics will drive Industry X.0, the integration of multiple waves of digital technology into industrial processes to deliver connected and smart products and drive industrial consumerism—which will completely reinvent industries. The change has already begun. THREE DIGITAL TECHNOLOGIES—IOT, AI AND PLATFORMS—WILL HELP SOUTH AFRICA REALISE 68 PERCENT OF THE TOTAL VALUE AT STAKE. 10

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