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SHENYANG, China, July 18, 2024 /PRNewswire/ -- In a recent report by IDC titled China Healthcare Security Administrating System Market Shares, 2023: Deepening Application, Neusoft Corporation (Neusoft, SSE: 600718) once again ranks first in China's healthcare security information system market share, reflecting its ongoing leadership in this field. Healthcare security informatization was the starting point of Neusoft's Big Health business strategic layout. Having been deeply engaged in the field for three decades, Neusoft witnessed the development process of China's healthcare security system, and has been empowering the establishment of the multi-tier and wide-coverage system with its innovative technologies, products, solutions and services. With rich experience and successful practice in healthcare security informatization, Neusoft has won widespread recognition and good reputation in the market. Meanwhile, Neusoft is actively developing systems for deepening application in the areas of data governance and public services, and integrating AI technology into healthcare security informatization, to lead the industry towards continuous innovation and advancement. Currently, Neusoft provides robust support in building China's unified national healthcare security information platform, as well as the healthcare security platforms in over 200 cities across 25 provinces. Neusoft is enhancing its R&D investment in AI technology, continuously exploring the innovative application scenarios and practices of healthcare security big data. Besides, Neusoft has recently introduced an integrated solution tailored for China's compact county-level medical community, facilitating total payment for healthcare security, to empower the development of county-level medical communities. Looking ahead, Neusoft will strengthen its digital and intelligent business layout and continue to engage deeply in building intelligent healthcare security information system, enhancing the accessibility and convenience of healthcare security services, to promote the digital and intelligent development of the industry. For more information about Neusoft, please visit www.neusoft.com
Revenue guidance at 3%-4% and operating margin guidance at 20%-22% Highest Free Cash Flow at $1.1 billion; Record number of large deals at 34 with $4.1 billion TCV BENGALURU, India, July 18, 2024 /PRNewswire/ -- Infosys (NSE: INFY) (BSE: INFY) (NYSE: INFY), a global leader in next-generation digital services and consulting, delivered $4,714 million in Q1 revenues with a sequential growth of 3.6% and year on year growth of 2.5% in constant currency. Operating margin was at 21.1%, a sequential expansion of 1%. Free cash flow was highest ever at $1,094 million, an increase of 56.5% year over year. Number of large deal wins were highest ever at 34 with TCV of $4.1 billion, 57.6% being net new. "We had an excellent start to FY25 with strong and broad-based growth, operating margin expansion, robust large deals, and highest ever cash generation. This is a testimony to our differentiated service offerings, enormous client trust, and relentless execution", said Salil Parekh, CEO and MD. "With our focused approach for generative AI for enterprises working with their data sets on a cloud foundation, we have strong traction with our clients. This is building on our Topaz and Cobalt capabilities" he added. 3.6% QoQ2.5% YoY CC Growth 21.1% Operating Margin 7.0% YoYEPS Increase (₹ terms) $4.1 Bn Large DealTCV $1.1 Bn Free Cash Flow Guidance for FY25: Revenue growth of 3%-4% in constant currency Operating margin of 20%-22% 1. Key highlights: For the quarter ended June 30, 2024 Revenues in CC terms grew by 2.5% YoY and by 3.6% QoQ Reported revenues at $4,714 million, growth of 2.1% YoY Operating margin at 21.1%, growth of 0.3% YoY and 1.0% QoQ Basic EPS at $0.18, increase of 5.4% YoY FCF at $1,094 million, growth of 56.5% YoY;FCF conversion at 143.2% of net profit "Our relentless drive on cost optimization through Project Maximus, a comprehensive margin expansion program, is reflected in the all-round improvement in key operating metrices leading to 1.0% growth in operating margin in Q1", said Jayesh Sanghrajka, CFO. "We had the highest ever FCF generation at $1.1 bn and ROE increased to 33.6% due to higher payouts to investors", he added. 2. Update on in-tech acquisition Infosys has completed the acquisition of in-tech, a leading Engineering R&D services provider focused on German automotive industry. This follows the announcement the company made on April 18, 2024. Headquartered in Germany, in-tech, is one of the fastest growing Engineering R&D services providers that shapes digitization in the automotive, rail transport and smart industry sectors. in-tech develops solutions in e-mobility, connected and autonomous driving, electric vehicles, off-road vehicles and railroad. in-tech brings to Infosys, marquee German original equipment manufacturers, deep client relationships, and an extensive industry expertise with a multidisciplinary team of 2,200 people across locations in Germany, Austria, China, UK, and nearshore locations in Czech Republic, Romania, Spain, and India. The entire shareholding in in-tech Group India Private Limited, a step-down subsidiary of in-tech Holding GmbH, will be acquired by Infosys Limited. Infosys is delighted to welcome in-tech and its leadership team. 3. Client wins & testimonials Infosys announced a strategic multi-year collaboration with Telstra to accelerate its software engineering and IT transformation journey and further enhance their customer experience. Kim Krogh Andersen, Group Executive, Product and Technology, Telstra, said, "Consumers around the world have significantly increased their expectations when it comes to the seamless, digital delivery of their products and services. As we approach the tipping point of Generative AI and an avalanche of digital adoption, strategic partnerships with global leaders such as Infosys are critical to support our shared ambitions for digital leadership." Infosys launched Infosys AsterTM – a set of AI-amplified marketing services, solutions and platforms that deliver engaging brand experiences, enhanced marketing efficiency, and accelerated effectiveness for business growth. Tom Portman, Group VP, Online Transformation and Group Head of Digital Channels, ABB, said, "Infosys Aster™ is bringing expertise to help us reimagine, engineer, and activate best-in-class omnichannel experiences for our customers, partners, and prospects enabling them to quickly access the relevant and up to date information they need. We see the potential of AI to amplify these capabilities and significantly raise the bar in the delivery of personalized content, ensuring predictability of engagement. We are elevating the way we connect with our customers and how our customers connect with us." Infosys collaborated with La-Z-Boy to establish a Testing Center of Excellence. Infosys will provide comprehensive Quality Engineering services by leveraging modern technologies and AI automation tools. Carol Lee, CIO, La-Z-Boy, said, "We chose Infosys as our strategic partner due to their impressive track record of establishing strong testing center of excellence along with providing comprehensive testing services by leveraging their QA methodologies, industry leading tools, transforming QA powered by Gen AI, AI/ML led tools and accelerators." Infosys announced a strategic three-year partnership with the ABB FIA Formula E World Championship as its official Digital Innovation Partner. Jeff Dodds, Chief Executive Officer, Formula E, said, "Infosys' expertise in cutting-edge technologies makes them the ideal partner to help us drive the future of electric motorsport. We are excited to work with them to deliver exceptional experiences for our global fan base and further strengthen Formula E's position as a leader in sustainable, digital-first sports. Infosys' commitment to sustainability and innovation aligns perfectly with our vision, and we are confident that this collaboration will unlock new avenues in our key focus areas." Infosys announced a multi-year strategic collaboration with First Abu Dhabi Bank (FAB) to optimize and modernize FAB's IT infrastructure services. Suhail Bin Tarraf, Group Chief Operating Officer, First Abu Dhabi Bank (FAB), said, "At FAB, we are committed to transforming our IT organization and delivering world-class services that drive tangible business outcomes. After a thorough evaluation, we selected Infosys as our strategic partner due to their proven expertise, innovative solutions, and the strong trust they built at all levels. Infosys' outcome-oriented managed services model coupled with their automation-powered delivery approach will help us significantly improve service quality, compliance, and operational efficiency." Infosys and Posti extended their strategic collaboration to help Posti enhance its customer experience and operational efficiency, leveraging Infosys Topaz. Petteri Naulapää, CIO & SVP, ICT and Digitalization, Posti Group, said, "We are pleased to announce the renewal of our collaboration with Infosys for another seven years. This decision is underpinned by a robust service delivery coupled with a spirit of continuous innovation by leveraging enterprise AI capabilities through Infosys Topaz. Infosys' continuous commitment to delivering customer satisfaction and a sharp focus on emerging technologies such as cloud, data, and AI will help in catalysing Posti's digital transformation journey in line with its larger corporate strategy of delivering on an industry-leading operational efficiency." Infosys collaborated with Proximus to revamp their ServiceNow platform by leveraging Infosys Cobalt. Antonietta Mastroianni, Chief Digital and IT Officer, Proximus, said, "Our collaboration with Infosys marks a transformative leap in reshaping the telecom realm. Infosys' technical expertise in transforming legacy environments with the ServiceNow platform makes it an ideal choice for collaboration. Together, we will continue to revolutionize service delivery and provide enhanced customer experience." Infosys announced successful completion of the technology landscape separation program of Team Global Express. Danny Gravell, CIO of Team Global Express, said, "Our partnership with Infosys enabled us to successfully set up an independent technology capability and transform our foundation technology platforms. We value Infosys' thought leadership, collaborative approach, and experience in implementing infrastructure and cloud transformation programs as a true strategic partner. By using the ready-to-use templates from Infosys Cobalt, we could complete the transformation at speed with maximum efficiency. This program has enabled us to work towards providing the best possible experience for our customers." Infosys collaborated with Commerzbank to consolidate their trading ecosystem on a unified Murex platform to help the bank accelerate its digital transformation journey. Sebastian Kauck, CIO Corporate Clients, Commerzbank, said, "The successful platform consolidation is a major achievement after three years of hard work. Throughout this project, the collaboration of our internal teams with Murex, Infosys and other external partners has always been an integral part to its success. The new setup enables Commerzbank to significantly enhance process efficiency and simultaneously reduce costs. Additionally, it lays the foundation for future business growth as adapting to market changes can be done more swiftly." 4. Recognitions & Awards Brand Rated as Top 100 most valuable brand in the world by Kantar BrandZ; Ranked among the most-trusted brands in India and the US Recognized as one of India's Best Employers Among Nation-Builders 2024 by the Great Place To Work® Institute Recognized as one of India's Best Companies to Work for 2024 by the Great Place To Work® Institute Infosys was recognized as one of the "Most Honored" companies, receiving multiple awards at the 2024 All-Asia Executive Team Rankings from Institutional Investor Infosys' Investor Relations (IR) function has been recognized one of the top two IR Functions amongst Indian companies in an annual survey conducted by FinanceAsia AI and Cloud Services Positioned as a leader in HFS Horizons: Industry Cloud Service Providers, 2024 Recognized as a leader in Avasant's Applied AI Services 2024 Radarview Key Digital Services Rated as a leader in The Forrester Wave: Continuous Automation And Testing Services, Q2 2024 Recognized as a leader in Capital Markets IT Services PEAK Matrix Assessment 2024 by Everest Positioned as a leader in ISG's SAP Ecosystem 2024 Provider Lens study in US, Germany, and Global Positioned as a leader in ISG Salesforce Ecosystem Partners 2024 Provider Lens study in US Recognized as a leader in Avasant's Cybersecurity Services 2024 Radarview Recognized as a leader in Avasant's Multisourcing Service Integration 2023–2024 Radarview Infosys-Fluido won 'Best Salesforce Partner to Work For' at the 2024 Digital Revolution Awards Industry & Solutions Rated as a leader in Healthcare Industry Cloud Services PEAK Matrix Assessment 2024 by Everest Recognized as a leader in Wealth & Asset Management 2024 by NelsonHall Positioned as a leader in IDC MarketScape: Worldwide Distributed Energy Resource Management Systems Service Providers 2024 Vendor Assessment Positioned as a leader in IDC MarketScape: Worldwide Consulting and Digital Services Providers for the Upstream Oil and Gas Industry 2024 Vendor Assessment Positioned as a leader in IDC MarketScape: Worldwide Consulting and Digital Services Providers for the Downstream Oil and Gas Industry 2024 Vendor Assessment Recognized as a leader in Avasant's Manufacturing Digital Services 2024 Radarview Infosys Finacle won the 'Innovation in Offering Award with RCBC DiskarTech' and the 'Customer & Program Impact Award with IndusInd Bank' at the IBSi Digital Banking Awards 2024 Infosys BPM recognised as a leader in 2024 Gartner Magic Quadrant for Finance and Accounting Business Process Outsourcing Infosys BPM won the SS&C Blue Prism Partner Excellence Award 2024, under the 'Intelligent Automation Award' category for the APAC Region Infosys BPM won two awards at ATD 2024: 'Excellence in Practice Award 2024' and 'ATD Best Award 2024' Infosys BPM won the PeopleFirst HR Excellence Award 2024, in the 'Learning & Development' category Infosys BPM won an award at the CII National Lean Competition 2024 Read more about our Awards & Recognitions here. About Infosys Infosys is a global leader in next-generation digital services and consulting. Over 300,000 of our people work to amplify human potential and create the next opportunity for people, businesses and communities. We enable clients in more than 56 countries to navigate their digital transformation. With over four decades of experience in managing the systems and workings of global enterprises, we expertly steer clients, as they navigate their digital transformation powered by the cloud. We enable them with an AI-powered core, empower the business with agile digital at scale and drive continuous improvement with always-on learning through the transfer of digital skills, expertise, and ideas from our innovation ecosystem. We are deeply committed to being a well-governed, environmentally sustainable organization where diverse talent thrives in an inclusive workplace. Visit www.infosys.com to see how Infosys (NSE, BSE, NYSE: INFY) can help your enterprise navigate your next. Safe Harbor Certain statements in this release concerning our future growth prospects, our future financial or operating performance, and the McCamish cybersecurity incident review and notification process are forward-looking statements intended to qualify for the 'safe harbor' under the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties that could cause actual results or outcomes to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the execution of our business strategy, increased competition for talent, our ability to attract and retain personnel, increase in wages, investments to reskill our employees, our ability to effectively implement a hybrid working model, economic uncertainties and geo-political situations, technological disruptions and innovations such as Generative AI, the complex and evolving regulatory landscape including immigration regulation changes, our ESG vision, our capital allocation policy and expectations concerning our market position, future operations, margins, profitability, liquidity, capital resources, our corporate actions including acquisitions, the findings of the review of the extent and nature of data subject to unauthorized access and exfiltration in relation to the McCamish cybersecurity incident and reaction to such findings, the timing of the notification process, and the amount of any additional costs, including indemnities or damages or claims, resulting directly or indirectly from the incident. Important factors that may cause actual results or outcomes to differ from those implied by the forward-looking statements are discussed in more detail in our US Securities and Exchange Commission filings including our Annual Report on Form 20-F for the fiscal year ended March 31, 2024. These filings are available at www.sec.gov. Infosys may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and our reports to shareholders. The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the Company unless it is required by law. Infosys Limited and subsidiaries Extracted from the Condensed Consolidated Balance Sheet under IFRS as at: (Dollars in millions) June 30, 2024 March 31, 2024 ASSETS Current assets Cash and cash equivalents 1,971 1,773 Earmarked bank balance for dividend (4) 1,394 - Current investments 1,051 1,548 Trade receivables 3,709 3,620 Unbilled revenue 1,511 1,531 Other Current assets 1,882 2,250 Total current assets 11,518 10,722 Non-current assets Property, plant and equipment and Right-of-use assets 2,285 2,323 Goodwill and other Intangible assets 1,055 1,042 Non-current investments 1,340 1,404 Unbilled revenue 198 213 Other non-current assets 874 819 Total non-current assets 5,752 5,801 Total assets 17,270 16,523 LIABILITIES AND EQUITY Current liabilities Trade payables 443 474 Unearned revenue 834 880 Employee benefit obligations 336 314 Other current liabilities and provisions 4,473 2,983 Total current liabilities 6,086 4,651 Non-current liabilities Lease liabilities 740 767 Other non-current liabilities 441 500 Total non-current liabilities 1,181 1,267 Total liabilities 7,267 5,918 Total equity attributable to equity holders of the company 9,956 10,559 Non-controlling interests 47 46 Total equity 10,003 10,605 Total liabilities and equity 17,270 16,523 Extracted from the Condensed Consolidated statement of Comprehensive Income under IFRS for: (Dollars in millions except per equity share data) 3 months ended June 30, 2024 3 months ended June 30, 2023 Revenues 4,714 4,617 Cost of sales 3,259 3,211 Gross profit 1,455 1,406 Operating expenses: Selling and marketing expenses 232 217 Administrative expenses 229 228 Total operating expenses 461 445 Operating profit 994 961 Other income, net (3) 88 57 Profit before income taxes 1,082 1,018 Income tax expense 318 294 Net profit (before minority interest) 764 724 Net profit (after minority interest) 763 724 Basic EPS ($) 0.18 0.17 Diluted EPS ($) 0.18 0.17 NOTES: The above information is extracted from the audited condensed consolidated Balance sheet and Statement of Comprehensive Income for the quarter ended June 30, 2024, which have been taken on record at the Board meeting held on July 18, 2024. A Fact Sheet providing the operating metrics of the Company can be downloaded from www.infosys.com. Other income is net of Finance Cost. Represents bank balance earmarked for final and special dividend. Payment date for dividend was July 1, 2024. IFRS-INR Press Release: https://www.infosys.com/investors/reports-filings/quarterly-results/2024-2025/q1/documents/ifrs-inr-press-release.pdf Fact sheet: https://www.infosys.com/investors/reports-filings/quarterly-results/2024-2025/q1/documents/fact-sheet.pdf
AI-powered features to provide forecasts and recommendations to future hosting citiesPARIS, FRANCE - Media OutReach Newswire - 15 July 2024 - Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group, today announced that the International Olympic Committee (IOC) will deploy its data-driven sustainability solution – Energy Expert – to help measure and analyze the electricity consumption at the competition venues of the forthcoming Olympic Games Paris 2024 ("Paris 2024"). By migrating the intelligence related to the power consumption and demand of the competition venues to the cloud-based platform for the first time, the solution aims to enable more accurate analysis and better-informed power consumption planning for future Olympic Games. The deployment of Energy Expert will be applied to all 35 competition venues during Paris 2024. With this solution, the IOC will be able to consolidate all energy-related data during the Olympics and Paralympics – such as electricity consumption, power demand contingency, venue capacity, competition-related information and onsite weather conditions – into one easy to understand dashboard for a user-friendly experience. Based on the integrated cloud-based intelligence and thanks to the deep-learning based AI models from Alibaba Cloud, Energy Expert aims to provide more accurate analysis to produce venue specific forecasts and recommendations such as power demand optimization to minimize power wastage. "Sustainability is one of the three pillars of Olympic Agenda 2020+5 alongside credibility and youth. With Energy Expert, we can now forecast our energy related impacts well into the future and accurately measure our progress," said llario Corna, Chief Information and Technology Officer at the International Olympic Committee (IOC). "Electricity consumption is a large contributor to the Olympic Games' carbon emissions. The data-driven insight produced by Energy Expert will help us learn from each Games edition, and apply that knowledge intelligently to make future events even more energy efficient." In addition, real-time electricity consumption at the level of operational spaces on-venue will be gathered from a selection of competition venues with 100 smart electric meters installed to gather more comprehensive datasets. For example, real-time electricity consumption from various operational spaces on-venue, including the playing fields, broadcast and media working areas, technology operational spaces and specific equipment, food and beverage equipment and a host of other temporary operational areas and equipment. Datasets collected will vary, taking into account temperature conditions and real-time occupancy of the areas at different times of the day. Collection of these detailed datasets will enable a more accurate context for Organising Committees for the Olympic Games (OCOGs) when referring to the energy consumption data from the Paris Games. To support OCOGs in undertaking a more comprehensive analysis of Games energy consumption trends, electricity data from previous Games, including the Olympic Games London 2012, Olympic Winter Games PyeongChang 2018 and Olympic Games Tokyo 2020, will also be available for analysis within Energy Expert. "Energy Expert will further prove its value in the most high-profile and challenging arena of all the fast-paced and highly competitive world of international sports. The insights Energy Expert delivers, will form part of the solution to assist the IOC and future Games to be more sustainable," said William Xiong, Vice President of Alibaba Cloud Intelligence and General Manager for International Industry Solutions. Outside the competition venues, Energy Expert's AI-driven recommendations have been applied to help Alibaba itself to optimize the energy consumption and minimize carbon emission at its temporary exhibition venues during Paris 2024. For example, at the Alibaba Wonder Avenue in the Avenue des Champs-Élysées, sustainable wooden materials and recyclable steel will be used for the main structure of the venue in order to cut the carbon footprint. The semi-open design of the space has also contributed to optimizing the energy consumption and minimizing carbon emissions, primarily by leveraging the natural lighting and ventilation. Introduced in June 2022, Energy Expert's first application at a sports event was in 2023 at the first Olympic Esports Week in Singapore. The solution was trialed for the purpose of measuring and analyzing carbon emissions from temporary constructions built to host the Olympic Esports Week, in order to generate data-driven insights on the choice of materials and equipment used at the event. A series of metrics - including the impact of energy consumption, waste management, signage and decoration - were assessed, enabling the comparison of the relative impacts of several types of materials and equipment used at the event. Beyond the sports environments and applications, Energy Expert also helps over 3,000 customers worldwide measure, analyze and manage the carbon emissions of their business activities and products. The solution also provides actionable insights and energy saving recommendations to help customers accelerate their sustainability journeys. Hashtag: #Alibaba #Olympics #SustainabilityThe issuer is solely responsible for the content of this announcement.About Alibaba CloudEstablished in 2009, Alibaba Cloud (www.alibabacloud.com) is the digital technology and intelligence backbone of Alibaba Group. It offers a complete suite of cloud services to customers worldwide, including elastic computing, database, storage, network virtualization services, large-scale computing, security, big data analytics, machine learning and artificial intelligence (AI) services. Alibaba has been named the leading IaaS provider in Asia Pacific by revenue in U.S. dollars since 2018, according to Gartner. It has also maintained its position as one of the world's leading public cloud IaaS service providers since 2018, according to IDC.
Global suppliers report capacity pressures, with index in positive territory for a second consecutive month Asian manufacturing growth accelerating in Mainland China, Taiwan, Vietnam and India In contrast, demand at North American suppliers fell slightly because of lower orders, indicating a tightening economy Transportation costs rise to 20-month high, as greater activity drives up shipping and container rates CLARK, N.J., July 12, 2024 /PRNewswire/ -- For the second consecutive month, the GEP Global Supply Chain Volatility Index — a leading indicator tracking demand conditions, shortages, transportation costs, inventories and backlogs based on a monthly survey of 27,000 businesses — continued in positive territory. This indicates another month where global supply chains got busier and capacity was stretched across suppliers worldwide. At 0.13, the index was little-changed from May's 14-month high of 0.21. GEP Global Supply Chain Volatility Index July 2024 At the forefront of supply chain activity growth is Asia, where input demand jumped as factory activity in major manufacturing and exporting economies — led by mainland China, Taiwan, Vietnam and India — accelerated. In contrast to Asia, which has seen steady month-over-month growth since April, North America's suppliers oscillate between under- and overutilized capacity. In June, factory input demand fell slightly, with suppliers experiencing reduced demand. However, on average since the start of 2024, North American vendors have generally been operating at full capacity. The European market is still operating with some slack as factory purchasing activity across the continent remains subdued. This suggests the region's manufacturing recovery still has a way to go, though conditions have vastly improved compared with the end of last year. An early warning sign of potential overheating ahead is global transportation costs, which rose to their highest level since October 2022 in June as strengthening activity across global supply chains led to higher shipping and container rates. For now, reports of safety stockpiling remain low, suggesting the market is well placed in a "goldilocks" zone and stress levels are subdued. "Asian manufacturers are gaining momentum, which, if sustained into the second half of the year, will mean a return of increasing costs and price pressures for global companies," explained Amol Jawale, vice president, consulting, GEP. "Now is the perfect time for a company's procurement to lock in pricing with key suppliers for 2025." Interpreting the data:Index > 0, supply chain capacity is being stretched. The further above 0, the more stretched supply chains are.Index < 0, supply chain capacity is being underutilized. The further below 0, the more underutilized supply chains are. JUNE 2024 KEY FINDINGS DEMAND: Global demand for raw materials, commodities and components is now trending broadly level with its long-term average, indicating that global manufacturing has moved toward an upswing in the business cycle. Asia remains at the forefront of this upturn, led by India, mainland China, Taiwan and Vietnam. INVENTORIES: The inventory cycle has stabilized, with firms neither building up stocks excessively nor aggressively destocking to improve cashflow and cut costs. MATERIAL SHORTAGES: Global reports from businesses of items in short supply remain anchored at historically typical levels. LABOR SHORTAGES: As was the case in May, reports from global suppliers of an inability to meet orders due to staff shortages were more common than seen historically on average. This suggests capacity expansion is required to sustainably meet current and future demand. TRANSPORTATION: Global transportation costs rose to a 20-month high in June, with shipping and container rates under pressure because of increasing supply chain activity. REGIONAL SUPPLY CHAIN VOLATILITY NORTH AMERICA: Index fell to -0.11, from 0.09, down slightly from May's three-month high. The index has fluctuated between positivity and negativity this year but signals full capacity utilization on average in 2024. EUROPE: Index unchanged from May's 14-month high of -0.13. There continues to be some slack across Europe's manufacturing sector, although it is much reduced from 2023 levels. U.K.: Index rose to 0.49, from 0.15, signaling strongest capacity pressures since January 2023. ASIA: Index rose further in June to 0.35, from 0.19, a 16-month high, as Asian supply chains became busier amid strengthening factory activity in major markets such as mainland China, Vietnam, Taiwan and India. For more information, visit www.gep.com/volatility. Note: Full historical data dating back to January 2005 is available for subscription. Please contact economics@spglobal.com. The next release of the GEP Global Supply Chain Volatility Index will be 8 a.m. ET, August 12, 2024. About the GEP Global Supply Chain Volatility Index The GEP Global Supply Chain Volatility Index is produced by S&P Global and GEP. It is derived from S&P Global's PMI® surveys, sent to companies in over 40 countries, totaling around 27,000 companies. The headline figure is a weighted sum of six sub-indices derived from PMI data, PMI Comments Trackers and PMI Commodity Price & Supply Indicators compiled by S&P Global. A value above 0 indicates that supply chain capacity is being stretched and supply chain volatility is increasing. The further above 0, the greater the extent to which capacity is being stretched. A value below 0 indicates that supply chain capacity is being underutilized, reducing supply chain volatility. The further below 0, the greater the extent to which capacity is being underutilized. A Supply Chain Volatility Index is also published at a regional level for Europe, Asia, North America and the U.K. For more information about the methodology, click here. About GEP GEP® delivers AI-powered procurement and supply chain solutions that help global enterprises become more agile and resilient, operate more efficiently and effectively, gain competitive advantage, boost profitability and increase shareholder value. Fresh thinking, innovative products, unrivaled domain expertise, smart, passionate people — this is how GEP SOFTWARE™, GEP STRATEGY™ and GEP MANAGED SERVICES™ together deliver procurement and supply chain solutions of unprecedented scale, power and effectiveness. Our customers are the world's best companies, including more than 550 Fortune 500 and Global 2000 industry leaders who rely on GEP to meet ambitious strategic, financial and operational goals. A leader in multiple Gartner Magic Quadrants, GEP's cloud-native software and digital business platforms consistently win awards and recognition from industry analysts, research firms and media outlets, including Gartner, Forrester, IDC, ISG, and Spend Matters. GEP is also regularly ranked a top procurement and supply chain consulting and strategy firm, and a leading managed services provider by ALM, Everest Group, NelsonHall, IDC, ISG and HFS, among others. Headquartered in Clark, New Jersey, GEP has offices and operations centers across Europe, Asia, Africa and the Americas. To learn more, visit www.gep.com. About S&P Global S&P Global (NYSE: SPGI) S&P Global provides essential intelligence. We enable governments, businesses and individuals with the right data, expertise and connected technology so that they can make decisions with conviction. 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Such party, its affiliates and suppliers ("Content Providers") do not guarantee the accuracy, adequacy, completeness, timeliness or availability of any Content and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such Content. In no event shall Content Providers be liable for any damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with any use of the Content. Media Contacts Derek CreeveyDirector, Public RelationsGEPPhone: +1 732-382-6565Email:derek.creevey@gep.com Joe HayesPrincipal EconomistS&P Global Market IntelligencePhone: +44-1344-328-099Email: joe.hayes@spglobal.com S&P Global Market IntelligenceEmail: Press.mi@spglobal.com GEP Global Supply Chain Volatility Index July 2024
Despite global leadership in AI, respondents from the UK and USA were least optimistic about realizing benefits quickly from AI Norway ranks most optimistic about AI Future Countries that have invested in AI skills are more optimistic about AI Organizations that are architecturally-ready and have strong sustainability planning found to correlate with AI optimism LONDON, July 11, 2024 /PRNewswire/ -- Research from IFS, the leading technology provider of enterprise cloud and industrial AI software, has revealed the Global AI Optimism League Table. The global study Industrial AI: the new frontier for productivity, innovation and competition involved 1,700 senior decision makers from Manufacturing, Telecommunications, Aerospace & Defense, Services, Construction & Engineering, and Energy & Resources companies. It found that optimism about artificial intelligence (AI) is a direct indicator of AI strategy maturity within their business. The study found firms between $200-$500m the most optimistic about AI, while the UK and USA were the least optimistic countries. The IFS Global AI Optimism League Table by Country Country Optimism Rank Norway 1 Sweden 2 France 3 Australia 4 Japan 5 UAE 6 Canada 7 Denmark 8 Finland 9 Germany 10 UK 11 USA 12 The IFS Global AI Optimism League Table by Company Size Revenue Band Optimism Rank $300 Million - $499.99Million 1 $200 Million - $299.99Million 2 $500 Million or over 3 $100 Million - $199.99Million 4 $50 Million - $99.99Million 5 Cash isn't always king An easy assumption to make with AI is that the more financial resources available, the more optimism there would be about what could be done with AI. However, the research reveals that businesses with revenues of over $500 Million ranked only third in terms of optimism due to a clear polarization in strategy, data readiness, and skills. Indeed, the polarization in AI readiness has led to 25% of this group believing AI benefits will materialize within 12 months, while the laggards don't expect to see benefits for at least three years. Large enterprises showed the widest gaps in time to benefits of any of the company size groups surveyed. In contrast, the survey revealed mid-sized ($50-$200m) firms being less optimistic about AI purely because they have fewer resources and skills to deploy to the technology today, and therefore are planning over a longer period of time to drive benefits from a maturing technology. Christian Pedersen, Chief Product Officer, IFS, commented: "At the surface level, the lack of optimism across some respondents may suggest we are at the edge of a trough of disillusionment, particularly following the all-encompassing hype that AI enjoyed for much of the last 18 months. What we are actually witnessing is enterprises differentiating themselves with AI. Organizations that have established a strong data foundation, invested in skills, and embedded sustainability into their strategy are optimistic because they can see the benefits coming into view quickly. It is vital that leaders see AI as a strategy, not a tool." Factors paving the way on the smooth path to AI Delving into what fuels optimism around AI, the research suggests that companies' architectural readiness directly correlates with their overall optimism about the technology. Respondents who report being more architecturally ready are more likely to be optimistic about AI. This indicates that companies with a strong cloud-based foundation are further along in their AI journeys and are most likely to believe that the tangible benefits of AI will become a reality sooner. Pedersen continued: "We see direct evidence from our research that the market is splitting into those who have embraced AI and those who have not. There is an element of 'following the herd' fueling the board's desire for AI programs. McKinsey has found that AI could be the key to unlocking an additional $4.4 trillion in corporate profits per year, which is building pressure to adopt it. Without a clear direction and strategy, AI programs stall, making the end result seem further away than it needs to be." Emergence of Industrial AI for productivity, innovation and sustainability Innovative products and services (31%) and data accessibility (30%) are the most common areas senior decision-makers expect AI to make large differences, followed closely by cost reductions (29%). Interestingly, at a country level, the USA (32%) and Germany (31%) were the only nations most likely to believe that AI will lead to consistent business growth. The survey reveals a positive correlation between skills and AI optimism. The nations most likely to identify as having invested heavily in skills for several years are generally more optimistic about AI overall. France (49%), UAE (53%), Norway (48%), Australia (46%), Sweden (46%) and Japan (45%) are leading the way here. Sustainability planning also correlates directly with overall AI optimism. The less wide-ranging a country's sustainability strategy was with regard to AI, the less likely they were to be optimistic about AI in general. UK (5%), Canadian (6%), Danish (6%) and Finnish (4%) respondents were least likely to have an AI strategy for sustainability in place and all feature in the bottom half of the optimism league table. "The lofty expectations for AI bely a fundamental misunderstanding of how it is supposed to drive value. The real power lies in Industrial AI, where data flows through every part of your business, combining structured, interlinked datasets to uncover insights, optimize every process and marry the digital with the physical world. That's where the true value lies. If a business doesn't have a strategy to reach that point, then they need a partner who can guide them on that journey," concluded Pedersen. Discover more insights and actions in the Industrial AI: the new frontier for productivity, innovation and competition Executive Report. Research Methodology: Censuswide surveyed 1,709 C-level/President/SVP/Directors who work in Manufacturing, Telecommunications, A&D, Services, Construction & Engineering or Energy & resources in organizations with $50m+ annual revenue (Aged 18+) across the UK, USA, Canada, Germany, France, UAE, Norway, Japan, Australia, Sweden, Denmark and Finland. About IFS: IFS develops and delivers cloud enterprise software for companies around the world who manufacture and distribute goods, build and maintain assets, and manage service-focused operations. Within our single platform, our industry specific products are innately connected to a single data model and use embedded digital innovation so that our customers can be their best when it really matters to their customers — at the Moment of Service™. The industry expertise of our people and of our growing ecosystem, together with a commitment to deliver value at every single step, has made IFS a recognized leader and the most recommended supplier in our sector. Our team of over 6,000 employees every day live our values of agility, trustworthiness and collaboration in how we support our 6,500+ customers. Learn more about how our enterprise software solutions can help your business today at ifs.com. IFS Recognition IFS ranked #1 for EAM market share in the Gartner® Market Share: All Software Markets, Worldwide, 2023 report for third consecutive year Gartner® Peer Insights Customers' Choice 2023 – Cloud ERP IFS named a leader in IDC MarketScape: Worldwide Field Service Management Solutions 2023-2024 Top 100 Companies (3rd), The Software Report, 2023 IFS Press Contacts:EMEA & APJ: Adam GillbeCorporate CommunicationsEmail: press@ifs.com Phone: +44 7775 114 856 USA: Mairi MorganCorporate CommunicationsEmail: press@ifs.com Phone: +44 7918 607 299 This information was brought to you by Cision http://news.cision.com https://news.cision.com/ifs/r/ifs-unveils-global-ai-optimism-league-table,c4013900 The following files are available for download: https://news.cision.com/ifs/i/2i-research-1-930x423,c3319123 2I-Research-1-930x423
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