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What explains the growth of private 5G networks?

Capgemini
Capgemini
2022-02-04

A growing trend across intelligent industries

Private 5G networks are beginning to take off. According to one study, three fourths of the manufacturing organizations in Germany, Japan, the United Kingdom and the United States aim to adopt private 5G networks by 2024. Another study found that among companies that are investing in private mobile networks, 44% are already using 5G and another 8% are using a combination of 5G with 4G LTE. Private 5G networks are emerging as the connectivity technology of choice for driving next-generation enterprise transformation in a growing list of industries such as manufacturing, automotive, utilities, and mining. Having spent over two decades in the Telco sphere, I believe that what we’re witnessing are the first stages of exponential growth. Let’s see what’s behind it.

What are the benefits of private 5G networks?

Private 5G networks enable enterprises to dedicate bandwidth for ultra-reliable low-latency use cases such as industrial IoT and robotics, with complete control over data, security, and networks. Unlike general-purpose public networks, private 5G networks are designed with a specific purpose, enabling enterprises to be in control of their destiny in terms of partners, features and connectivity. Based on core cellular technology used in public networks, private 5G networks provide complete indoor and outdoor coverage with a high degree of security, making them a good choice for factories, campuses, and other large places where security and low-latency connectivity are paramount.

Private 5G networks fall into two deployment models: large-scale deployments with vertically-integrated dedicated hardware, and cloud-native with lightweight deployments using hyperscaler products. One is CAPEX heavy, and is often chosen by large organizations with enough capital to support the initial investment, as well as the IT resources to support its maintenance. With an estimated lifespan of ten years, companies that can afford to go the hardware route can look forward to an impressive ROI. In contrast, cloud-native systems have very low up-front costs, with users paying for them as-a-service. This model is becoming increasingly popular, due to the ease of getting started and the ongoing support. The cloud-native architecture of private networks also goes along well with the cloud-native architecture of microservices and other IT applications for a wider range of use cases.

Good partners make good networks and better outcomes

There are currently a number of Telecom providers that offer exemplary service backed by decades of networking expertise. In the US for example, Verizon’s commercially available private 5G solution is proving popular on campuses, industrial and manufacturing facilities, warehouses, and other premises. But for many organizations, selecting a Telecom provider is just the first half of the equation. Communications service providers (CSPs) tend to know their subject inside and out, having spent decades developing and perfecting their technologies. I am consistently impressed by CSP representatives I work with. Now here’s the role that I play as a tech-integration partner. We bring direct knowledge about the particular industry in which a network is deployed, and help adopt new technologies such as 5G to an end client’s precise vision. A deeper understanding of industry domains is key to enabling new user experiences on top of private connectivity. Partnering with an organization with deep domain expertise in industry verticals means you’re not just getting a new layer of tech for your employees to learn from scratch – new features are integrated into your current system. Integrators also help by incubating vertical industry use cases in a lab setting, bringing together solutions from multiple hardware and software vendors and creating a network that’s usable and fit for purpose.

3 ways tech integrators accelerate deployment of 5G private networks

Let’s dive into some specifics. Deploying a 5G private network smoothly and efficiently depends on three factors:

  1. the ability to experiment and iterate, quickly and at low cost
  2. the availability of corollary assets and experience
  3. data expertise

A good tech integration partner will bring skills in industry verticals, deep network engineering and multi-access edge computing (MEC). But the advantages of a strong partnership go beyond skill sharing.  An experienced tech integrator will grant access to tangible assets, such as:

  1. 5G labs, where you can test out various use cases for client and partner ecosystem engagements. Labs like these enable operators to focus on replicable 5G use cases for industry sectors with private 5G networks, as well as to integrate the wider partner ecosystem  options, developing open, multi-vendor e2e disaggregated private networks and edge solutions for CSPs and NEPs.
  2. ‘Service Enablement’ factories, which provide a full range repository of replicable industry 5G use case developed as cloud-native microservices (AGV, connected camera, remote worker, immersive experiences applications, IoT etc),
  3. ‘Data extraction’ platform capabilities, which enable 5G use cases to use data adapted to the needs of the industry use case, such as  low-latency mission-critical applications, c-V2x, AR/XR,  machine-to-machine communications, etc

Assets such as these profoundly impact the ultimate usability and efficiency of new private 5G installments. I believe that one reason why private 5G networks are gaining so much traction is due to the value that experience partners bring to the table.

Widespread adoption

We’re at a pivotal point when private 5G networks are graduating from the trial stage to full scale deployments. The US Department of Defence is investing nothing short of $100 million in a private 5G network at their global logistics center in Albany, Georgia – a critical part of a wider plan to raise logistics efficiency by 40%. Kittilä, the largest gold mine in Europe, is joining forces with the Swedish Telecommunications company Telia to implement a private 5G network both above ground and underground. By deploying this network, Kittilä is aiming to improve the occupational safety and reliability of its mining operations at tunnel depths of up to 1 KM. Telecom operators provide private network experience by dedicating a network slice of their public network and guaranteeing the enterprise customer a specific quality of service for their use cases.

Private 5G networks also have a role to play in bridging the digital divide. As these networks cover a small area and don’t cost as much to build as a public network, priority can be given to underserved communities. Terranet Communications recently partnered with Las Vegas to deploy a private municipal network that will help roughly 30,000 children who did not have internet access during the pandemic and had trouble keeping up with school.

A foundation for growth and limitless use cases

With private 5G networks, enterprises can now benefit from new connected technologies, secure additional revenue streams and maximize efficiencies – today and well into the future. Learn more about how to build the ideal ecosystem for private network deployment, and the value that committed partners can bring.

#TelcoInsights is a series of posts about the latest trends and opportunities in the telecommunications industry – powered by a community of global industry experts and thought leaders.

Author:

Fotis Karonis, Executive Vice President, Group leader 5G and Edge computing 

Towards a digital citizen-centric city

Capgemini
Capgemini
2022-02-04

“It was the best of times, it was the worst of times” are the famous opening words of Dickens’ novel A Tale of Two Cities. It’s a story about people living in Paris and London around the time of the French Revolution. Opportunities in these cities were endless, but it was yet to be seen what kind of future would emerge. Fast forward almost 200 years since Dickens penned his novel and we find ourselves in the middle of another revolution. This one is a digital revolution, in which cities once more play a crucial role.

Covid has confined many of us to home, making digital services more important than ever. However, sometimes it seems that European municipal governments are not yet able to meet the needs of citizens effectively in the digital realm. While urban populations are becoming more digital, there still remains a question of whether government can digitalize public services rapidly enough to keep pace with expectations.

We can get an answer to this question in the 18th annual eGovernment Benchmark study published by Capgemini for the European Commission. The study assesses the digital maturity of eGovernment in European countries, including over 100 different government services on more than 7,000 web pages. Think, for example, about doing your income taxes, starting up a company, or applying for unemployment benefits. The study also evaluates services that are often delivered by cities and towns, such as registering in a new city after moving house, obtaining a parking permit, or applying for parental authority after your children are born.

Cities and Central Governments – who is the winner?

So, how do towns and cities measure up when compared to central government? It is clear from the survey data that local government is lagging behind at present:

  • It should be easy to access services online, but in towns and cities citizens often still have to visit a physical local authority building, with just 59% of local government services provided online. Compare that to 85% of services available via a ‘digital city hall’ for central government.
  • People expect to be able to quickly find information via their mobile devices, but some local governments are still using websites that are not mobile friendly. Currently, only 81% of local government websites are adapted to mobile phones, compared to 90% for central governments.
  • The global pandemic has seen more and more citizens using digital identities in their day-to-day online activities but just 29% of local governments enable electronic identification (eID) versus 71% for central government.
  • Data reuse, where online forms are prefilled using information already known by other services, offers cost savings and service efficiency but its uptake is much lower in cities at 31% when compared to 71% for central government.

What is causing the cities ‘deficit’?

The eGovernment Benchmark study points to several problems that need to be addressed before local government can accelerate towards the digital outcomes defined in the European Commission’s policy program ‘Path to the Digital Decade’:

  • Lack of cooperation: Despite providing the same or similar services, it is very much a case of reinventing the wheel time and again as each local authority builds its own website from scratch. As well as being a waste of resources, this lack of standardization and re-use makes it harder for cities to implement eID and authentication sources. It is often the result of existing procurement agreements.
  • Lack of knowledge and/or lack of funding: Smaller towns and cities have issues with capacity, for example they struggle with finding the right personnel to develop and maintain digital solutions. Larger cities must address a different problem in that they are often siloed, which prevents seamless citizen-centric delivery of a complex array of services and information.
  • An inside-out approach: You’d think that local authorities would know the citizens they serve better than central government does, but their starting point is often legacy IT systems and processes rather than the service user on the other side of the screen. Instead of forging closer ties with the citizens and business they serve, city and town authorities are falling behind their central government counterparts who have seen more investment in citizen-facing service delivery.

Towards the citizen-centric city

So, how can local authorities catch up? What do they need to do to move towards that ‘Society 5.0’ ideal where problems are no longer solved in a fragmented, siloed manner, but are re-imagined to deliver public value for society as a whole?

We advocate being more collaborative, participative, and proactive.

Be Collaborative

For smooth and seamless collaboration, interoperability is key. It’s time for local authorities to start collaborating with other cities and central government and stop reinventing the wheel. By using so-called key enablers for digital government, such as eID and base registries for personal data, cities can make their services more friendly and more secure. Hungary offers a fine example: the eMunicipality Portal is a one stop shop for all digital services delivered by local governments. Over 99% of the 3,200 municipalities participate and can use eID for prefilled forms that are populated with data from across different services and municipalities. Another solution is to use standardized online templates to provide the same service from whichever city is being accessed. This keeps web design costs down and gives users consistency when people move from city to city.

Be Participative

Cities should design services for citizens with input from citizens themselves in an outside-in approach. This means turning the current approach to citizen experience on its head. Rather than considering the end user after previously made choices like “What IT-systems should we use?” or “What procedures are necessary?”, the experience of the citizens should cause the choice of systems and procedures. Governments must change the starting point of their services by making the citizen central in crafting their choices and directions in a citizen-centric approach.

Be Proactive

You’ve moved to a new city and want to register for all the local government services you’d been receiving in your previous home. You might need to apply for a parking permit outside your new home. Or perhaps you’ve registered the birth of a child with your local authority but don’t know how or when you start receiving child allowance payments. How great would it be if you did not have to reapply? For example, a citizen’s de-registration from one address and registration with a new one could be automatically linked to the local parking permit team or postal services so that mail goes automatically to the new address. A citizen claiming a benefit in one city could be automatically offered local job support on moving to a new location. This proactive approach, however, requires siloed departments and different local authorities to open up their data, organize it, and ensure citizens know what it’s being used for. Not all local authorities are ready to take this step yet.

Good for citizens; good for budgets

If the benefits of building citizen-centric eGov services still aren’t enough to persuade cities of the compelling business case for accelerating change, there is always the obvious financial outcome. In effect, efficient, proactive, shared, and user-centric service delivery is cheaper service delivery.

Greater use of eID means the cost of having staff on hand to manually verify a citizen’s identity can be cut; pre-filled online forms require less human intervention, which frees up staff to focus on delivering higher value services; shared online portals, equate to shared costs; user-friendly websites and services for which citizens can provide feedback, report a problem, or pay a bill via their mobile device both improve compliance and enable government to deal with an issue quickly and cost effectively; and digital post solutions for communicating with citizens and businesses eliminate postage costs, while offering sustainable alternatives.

It all adds up. Isn’t it time to accelerate citizen-centric eGovernment beyond just central government to embrace cities and towns too?

Find out more

Authors

Person in a dark blue suit with a light blue shirt, arms crossed, wearing a wristwatch, and face blurred.

Jochem Dogger

Manager in the Data, Research & Evaluations team
“The public sector is increasingly realizing the potential of the data it gathers to improve citizens’ lives. The challenge ahead is to keep using data in an ethical and responsible manner, while opening up vital data sources to citizens and entrepreneurs and facilitating interoperable data exchange between institutions. This will enable governments to realize the economic, societal, political and environmental benefits that data has to offer.”
Person in a blue suit and tie with a blurred face, standing against a gray background.

Sem Enzerink

Senior Manager and Digital Government Expert, Capgemini Invent
“Let’s shape digital governments that are well-connected. Well-connected to their users, to each other and to the latest technologies. Europe is ready for a new generation of digital government service to impact and ease the lives of citizens and entrepreneurs.”
Person in a dark blue suit, white shirt, and light blue tie with a blurred face.

Niels van der Linden

Vice President and EU Lead at Capgemini Invent
“Making it easy for citizens and businesses to engage with government increases the uptake of cost-effective and more sustainable digital services. Currently, however, many governments do not yet share service data, missing out on the one-government experience and preventing them deriving actionable insights from monitoring and evaluating the state-of-play. We help to design, build, and run trusted, interoperable data platforms and services built around the needs of citizens and businesses.”

    Touchless supply chain planning – deployment

    Capgemini
    Capgemini
    2022-02-03

    Frictionless planning models leverage a target operating model that takes advantage of the organization’s global resources and capabilities, connecting them to achieve a truly touchless process.

    In the first two articles in this short series, I’ve looked at the challenges of present-day supply chain planning, at the benefits of a frictionless model, and at how it differs from current approaches. In this, the third and final article, we’re going to explore deploying frictionless planning across the extended enterprise.

    Why focus on deployment? Because in this case, it’s likely to be particularly demanding: in a major enterprise, the links in a supply chain extend over many functional and geographical areas, and there are many stakeholders.

    Why focus on deployment? Because in this case, it’s likely to be particularly demanding: in a major enterprise, the links in a supply chain extend over many functional and geographical areas, and there are many stakeholders.

    What’s needed is a target operating model that can take advantage of the organization’s worldwide resources and capabilities, connecting them to achieve a truly frictionless process. It’s a model that has three building blocks.

    #1: Plan

    For an extended global enterprise, supply chain plans need to be dynamic, in order to respond to changing conditions while remaining cost-effective. A consolidated planning hub, built on an optimized and dynamic technology platform, can develop these plans from end to end, globally and touchlessly. The hub can ensure:

    • That plans are generated to a system that has regional or global scale
    • That the parameters in the system to generate those plans are optimal and fine-tuned
    • That the correct system technology is used and up to date.

    #2: Connect

    Also a key part of the model is a team within the market that is focused on business partnering, collaboration with stakeholders and plan adoption. Its members harness local and global knowledge and skills in order to create demand, to put plans into action, and to ensure there is flexibility in the response.

    Working with vendors, partners and the wider supply chain and commercial organization, and providing feedback to the consolidated planning hub, they:

    • Provide inputs and feedback to the planning hub to improve plan accuracy
    • Ensure the market adopts the plans provided by the planning hub
    • Provide a seamless flow of information between different stakeholders, so they can collaborate to create and fulfil demand.

    #3: Sustain

    Making a success of supply chain planning isn’t a one-time fix. The third building block is the creation and maintenance of a culture of innovation, to drive continuous improvement. This includes rapid proofs-of-concept to test new ideas, the development of collaborative ideas with industry and academia, a strong governance structure to manage innovations, and establishing a principle of innovation-as-a-service.

    Capgemini’s own Applied Innovation Exchange provides a robust framework in which the momentum behind innovation of this kind can be maintained. It comprises elements that enable organizations to:

    • Discover – discover sector pivots, explore new business models, immerse in emerging technology, and define action plans to drive change
    • Devise – rapidly build, test, and learn – experiment with emerging concepts to test value for the business
    • Deploy – scale innovation to deliver enterprise-grade business outcomes across the organization’s entire portfolio
    • Sustain – create structures for innovation (such as funding model and governance) or deliver innovation as a service.

    Preparing the ground

    By definition, target operating models are a destination – which means there is also a starting point. No global enterprise commits to a frictionless supply chain model from a clean sheet: there are legacy processes and technology platforms to consider and address.

    Capgemini offers architectures and approaches that help with this transition. For example, our Digital Global Enterprise Model (D-GEM) platform is a ready-to-deploy database of processes and operational best practices to fast-track the transformation journey, and our ESOAR methodology (eliminate, standardize, optimize, automate, robotize) streamlines current operations, redirecting resources from repetitive tasks towards higher-value business activities and establishing new levels of best practice.

    Getting started

    We saw in the previous article how all this delivers tangible results to major real-world enterprises. Here’s another example: an industrial company active in aerospace and home/building technologies had de-centralized planning processes, some of them automated, some manual. Multiple systems were being used for different aspects of planning.

    By streamlining operations and bringing them together in a single, enterprise-wide process, the organization achieved on-time-to-customer request levels of over 90%; past-due customer orders of under 2%; a reduction in inventory levels of 40%; and improvements in asset cross utilization of 30%.

    If the frictionless approach to supply chain planning that I’ve been discussing in these articles is of interest to you, please get in touch It can make a competitive difference to major businesses – a difference that isn’t just real and immediate, but one that will also scale and flex to meet new challenges, including those we can’t yet even imagine – because that, after all, is the way it’s always been in the supply chain.

    To learn more about how Capgemini’s Touchless Supply Chain Planning can transform your organization to drive enhanced customer experience and reduced cost, contact: sandip.sharma@capgemini.com and shaun.cheyne@capgemini.com

    Sandip Sharma is a Senior Director and leads Capgemini’s Business Services end-to-end Touchless Supply Chain Planning capability. He also works with clients to create compelling transformation solutions and services to design, run, and evolve their supply chain operations.

    Shaun Cheyne is a Director at Capgemini Invent and leads the UK’s Consumer Products Supply Chain capability. He works with clients to enhance business value through supply chain transformation from strategy to implementation.

    Touchless supply chain planning – what makes it different?

    Capgemini
    Capgemini
    2022-02-03

    Frictionless planning models leverage touchless, continuous, and AI-based processing, making it possible to work in a radically different way.

    In the first article in this short series, I outlined the challenges of present-day supply chain planning, and I briefly described how a frictionless approach can become a competitive differentiator, both in terms of streamlined internal operations and improved customer service.

    This time, we’re going to dive a little deeper into how touchless supply chain planning differs from current approaches.

    Traditional vs. frictionless

    Frictionless planning models make it possible to work in a radically different way. Let’s make some comparisons.

    Traditionally, processes are siloed: demand here, and supply there; planning here, and execution there. The focus is mostly on the here-and-now, or on the medium term at best – and if things go wrong, the firefighting can be considerable. But with frictionless planning, most of the time-consuming processes are touchless and continuous, allowing the focus to switch to the medium term. Also, because data can be drawn from across the business, insights can deliver long-term value, and assist strategic decision-making.

    Traditionally, the approach is reactive and control-based. Metrics focus on efficiency and effectiveness, and two-dimensional segmentations aren’t often revisited. By contrast, frictionless planning models are smarter. Enterprise-wide insights and analytics accelerate decision-making, and intelligent, automated routines enable multi-dimensional segmentations to be spun up to order, and for different purposes. Once again, the focus is on delivering value to the business.

    Traditionally, the supply chain workforce is structured in the form of a pyramid, weighted by volume, and with a standard support model and team design. Emphasis is given to industrialized transactional handling in processing hubs – whereas the frictionless approach enables a mix of hub and market planning organization to be established, so as to achieve standardization, to support scalability, to provide market intelligence, and to facilitate collaboration. It’s an AI-augmented workforce, where the planning architecture takes charge of managing the end-to-end workflow, and where people are assigned to tasks not by transaction volumes, but by exception – because most, if not all, the heavy lifting is done touchlessly.

    Traditionally, controls are centralized and somewhat rigid. With a frictionless model, controls are automated, risk-based, and dynamic, adapting to circumstances, and any manual interactions and approvals are addressed by AI-augmented team members. The technology supports an intelligent ecosystem that incorporates digital twins, which can be used to develop try-outs and rules from which further automation can be introduced.

    To see the effect of all these differences, let’s take demand planning as an example. Traditionally, this is addressed by individual SKUs (stock-keeping units). A frictionless model can consider a larger number of variables from the extended enterprise to influence the forecast, and can also make adjustments to that forecast using real-time point-of-sale signals. What’s more, it does this on a touchless basis, reducing the need for manual intervention to perhaps 30% of cases, so people can focus only on the areas of need.

    In short, what emerges is effectively a supply chain control tower, which facilitates agile sales and operations planning (S&OP), provides visibility, identifies alerts, runs scenarios to recommend actions to resolve those alerts, and automates decision-making based on rule-based frameworks.

    Real-world success

    Like you, I expect, I’ve read plenty of articles that make a case for end-to-end digital transformation – and yes, I realize that in talking about these smart, enterprise-wide models, that’s what I’m doing here too.

    But in this instance, at least, it isn’t just business buzz-speak. The benefits of touchless supply chain planning aren’t just possible in theory – they’re already happening.

    For example:

    • After transforming its supply chain model, a global CPG manufacturer achieved identified 40–50% of its product portfolio as candidates for touchless demand planning using machine learning (ML) forecasting
    • A European beverage manufacturer achieved 25–30% relative reduction in forecast error, 10–14% inventory reduction, and 20% planners’ time release from demand sensing
    • A global CPG enterprise achieved 72% no touch purchase order (NTPO) compliance from a starting point of 39%, by improving master data, planning system parameter tuning, and loss tree analysis
    • A global industrial leader had too many processes, systems, and long-lead times in responding to customer needs (over 8 months). The business carried too much inventory ($5 billion), which led to much waste through product obsolescence. The company saved 25% in inventory costs within the first year of adopting an integrated solution

    In the third and final article in this series, I’ll be looking at deploying touchless planning across the extended enterprise.

    To learn more about how Capgemini’s Touchless Supply Chain Planning can transform your organization to drive enhanced customer experience and reduced cost, contact: sandip.sharma@capgemini.com and shaun.cheyne@capgemini.com

    Sandip Sharma is a Senior Director and leads Capgemini’s Business Services end-to-end Touchless Supply Chain Planning capability. He also works with clients to create compelling transformation solutions and services to design, run, and evolve their supply chain operations.

    Shaun Cheyne is a Director at Capgemini Invent and leads the UK’s Consumer Products Supply Chain capability. He works with clients to enhance business value through supply chain transformation from strategy to implementation.

    Five 2022 predictions for energy and utilities

    Capgemini
    Capgemini
    2022-02-02

    As we emerge from the pandemic, climate change and energy transition agendas are at a critical juncture. Knee-jerk reactions to short term crises will exacerbate our greatest challenges further. But neither can they be put off for a later time. To hit the right path, galvanize the transition, and manage the climate emergency, the sector must coordinate, innovate, and collaborate across all levels. In 2022, we’re going to see leaders around the world begin to hit their stride.

    Alongside Capgemini’s annual analysis from the World Energy Market Observatory, our experts James Forrest, Peter King and Philippe Vié explore five key predictions for the energy and utilities sector in 2022.

    High energy prices endanger the climate change agenda

    Market uncertainty caused by the COVID-19 pandemic and the global energy crisis is set to carry long into 2022. Energy prices will keep rising as supply constraints, political tensions and post-pandemic economic recovery continue. There is no guarantee that the security of supply – which remained strong throughout the pandemic – will continue in 2022.

    Expect governments to take action. As we have seen in the UK and elsewhere in Europe, these are times when governments tend to intervene, both to support suppliers and to ensure does not falter. Political tensions are rising globally at local and international levels, which could hamper efforts to review energy market mechanisms. But the bystander approach is untenable when the challenge is everybody’s problem. If the transition is going to be a hallmark of this decade, it should be protected this year.

    Global energy markets face another perfect storm as outsiders capitalize

    Faltering energy companies will be at the mercy of increased M&A activity from larger companies who are taking the long view of energy market profitability, looking beyond today’s unfavorable conditions to capitalize on cheap deals. This process of consolidation will enable financially secure players to adapt faster in the energy transition. We can hope that this will lead to greater collaboration between market players.

    We can also expect to see continued market disruption from capital-rich outsiders like Shell and Mitsubishi. Last year’s activities herald an era of diversification in the sector and consumers may be surprised by . This increased competition will likely drive further innovation.

    A step-change in adaptation and risk monitoring

    The chances of vastly improved climate change mitigation and adaptation solutions in 2022 remain slim. While there’s been more awareness about risk in the years since the Fukushima nuclear disaster, many firms still don’t know how to properly measure or quantify risk. This is not only a barrier to action but presents an outright danger to people and the environment in a year where more natural disasters are almost certain. We can expect to see more investment in quantifying operational risk and monitoring as the industry works to become more reactive and predictive. This is nowhere more apparent than in the electricity and water sectors which in the past year have seen major high-profile climate-related events. Whether efforts will be adequate is another question.

    Expect to see fixes for challenges at a local level, with firms adapting and improving physical infrastructure. Take for instance, the recent failure of Texas’ wind turbines, which presents a clear need to improve design and interconnection across the board and tailor it to the demands of its geography. As we increasingly rely on and invest in solar and wind technologies, inherent complexities and risks are becoming clearer. We can expect to see a combination of greater innovation for challenges, such as soil erosion creating dust at solar farms, and greater urgency at a basic level. Quick and easy physical adaptations, like concrete bunds at energy facilities to prevent flooding from disrupting supply, should be rolled out in 2022.

    Bringing hydrogen and nuclear into the fold

    Hydrogen has a key role in the future, and yet we’re far away from global ambitions if it is to take a key role in the Energy Transition. The sector can be expected to focus on making green hydrogen cheaper and improving efficiency, which will provide another option on clean dispatchable generation. Clean energy solutions like solar and wind, which are now at the right price point, will be deployed at a greater pace in 2022. Whether green hydrogen will in fact accelerate is harder to say. If funding becomes more concrete and availability of low carbon generation is reliable, the odds look bright.

    We can also expect development of regional solutions and industrial hubs, with the help of interconnectors, to diversify energy and maximize the potential output of specific areas. However, reliability or affordability remain obstacles. If companies deliver products at the right price point and ensure the infrastructure exists to host them, we’re going to see significant progress in this area.

    The case for investment in nuclear will be more convincingly made in 2022. Nuclear offers low carbon energy at a known price, insulated from global energy trends. We can expect governments to start to make direct commitments to nuclear (both large and small plants) as one way of demonstrating the viability of their Net Zero plans.

    The year of truth for COP26 commitments

    Following COP26, the question is whether nations will make good on their 2030 commitments to make the 1.5-degree target feasible, and we expect many key players, including the EU, to accelerate their transition agenda and legislation. Less predictable is whether the US, India and China will escalate climate funding and 2030 plans too. The US in particular finds itself at a crossroads, with the far-reaching Build Back Better Act liable to go either way. What we can say is that industry will be watching. We can also expect businesses to ramp up their lobbying efforts to overcome the administrative and regulatory hurdles currently holding them back from an affordable and accessible transition.

    In view of COP27, we are going to see more and more political groups drawing the parallel between the levels of crisis financing we’ve witnessed over the pandemic and the dedication of increased funding to the climate crisis – an existential threat, with far greater financial and health consequences than the pandemic. We can reasonably expect funding to accelerate. Keep your eye on developing nations as capital is unlocked, with the goal of helping them to adapt to climate change and stimulating investment in clean energy production. As cliché as it sounds, it really is now or never.

    Authors


    James Forrest

    EVP: Global Industry Leader Energy and Utilities at Capgemini

    Philippe Vie

     Group Leader Energy and Utilities at Capgemini

    peter_king

    Peter King

    Global Energy and Utilities Lead Capgemini Invent, VP at Capgemini Invent

    Creating a data-powered culture

    Dinand Tinholt
    2022-02-01

    Data provides answers, but people drive change

    “Culture eats strategy for breakfast.” The famous quote by Peter Drucker is a perfect call out here as no matter how detailed and solid your data-powered vision and strategy are if the people executing it don’t nurture the data culture then your journey is likely to fail. Becoming a data-driven organization isn’t just about data or technology, it is about transforming the way decisions are made based on deep analysis of facts rather than intuitions and emotions. Organizations are made up of individuals and the people working there determine the success of a data-driven transformation. Therefore, any transformation journey needs to have organizational culture at the root of any change it wants to affect.

    The Capgemini Research Institute report on The data-powered enterprise found that a majority (75%) of data masters invest in a collaborative and innovation-driven data culture building a data-first culture.”

    Companies that follow a data-powered culture not only stay resilient but thrive in disruptions. Data forms the lynchpin of their flywheel model of operations that drives customer-centricity, innovation, and adoption of advanced technologies. Data is ingrained in their DNA, guiding all decision-making and helping them be nimble, agile, and able to adapt to adversities.

    But how do you successfully do that?

    To build a data-first culture, we have adopted a structured approach of advocacy and adoption

    In our AI & Data Activate programs for clients across the globe and industries, there is usually a technology stream to modernize a data platform, a business stream to implement use cases, an organizational/process stream to streamline data governance, and a change-management stream to support the people dimension. It is about winning the hearts and minds of all stakeholders within (and often even outside) organizations to create and/or strengthen a data-driven mindset.

    Hofstede depicts an organizational culture like different layers of an onion, with values at its core and practices permeating each layer. Driving a data-driven culture within an organization starts with values. This means that data-driven decision-making within an organization should be seen as the default. This requires commitment at all levels in the organization, amplified through communication, training, and management attention. At a global consumer-products company that we worked with for many years, executives at the CxO level would not even consider proposals not underpinned by a thorough data-driven assessment, and they considered their analytical prowess a unique differentiator in the market.

    After values, it is important to embed a data-driven culture in rituals which are mostly processes, meetings, and ways of working. The next layer is heroes or having champions within an organization that has adopted the new data-driven way of working. They are the key advocates that exemplify the new way of working through leading by example. These examples are supported by success stories. Hence, PR and communication play a crucial role to amplify these stories. At the outer layer of culture are symbols. Marketing and expanding the reach of a data-driven transformation means creating brand awareness within an organization, through PR management and publishing assets, images, and stories.

    Finally, every layer of the culture model is permeated by practices or, simply put, what you do. Without a strong data-powered culture, evidence-based decision-making gets relegated to only a few areas of operations, and organizations fall back on tried-and-tested strategies for important decision-making.

    The power of habit: Cultivating data-driven behaviors across the enterprise

    For the best data-powered organizations, data has become a habit. In “The Power of Habit,” Charles Duhigg writes about why companies and people do what they do. He looks at habits from a scientific perspective and identifies a three-step habit loop with Cues, Routines, and Rewards. Changing a habit to support culture change often focuses on changing the routines ingrained within an organization to promote a data-driven culture. Instilling new data-driven habits means creating new cues with new routines and associated rewards. To make data the cornerstone of their organization, companies need to invest across four operational pillars: people, platforms, partners, and processes. A relationship that is less transactional and more strategic between business groups and IT and BI teams would enable data to permeate the organization and become an enterprise-wide priority.

    Finally, when making any change in an organization, make sure user-centricity is at the core of everything you do. Every design of a new tool or process needs to be ruthlessly user-centric. We’re all marketers and behavioral scientists. If you desire to augment decision-making with data, cognition is key. Less is more, with simplicity being the ultimate sophistication – to quote Leonardo Da Vinci.

    Data success

    An international consumer goods manufacturer inculcated data-powered thinking and used meaningful and relevant data from across the organization to connect closely with its one billion customers. A data incubator was set up and launched to initiate a transformation that put information and insights at the heart of all decision-making. The needs of the customers were defined. The insights and analytics supported the human decisions to improve desired outcomes, leading to demonstrable business benefits by surfacing opportunity, supporting human creativity, and increasing penetration, effectiveness, and revenues. These success stories were actively shared, champions were promoted, stories were told, and new ways of working were designed with a pure user-centric lens. Becoming more data-driven became powerful, simple to do, and a daily habit.

    While every company aspires to utilize data to make better decisions consistently, many fall short due to old habits or not having a clear approach. To infuse data-powered culture in an organization’s DNA, business leaders must take a step-by-step approach to win the hearts and minds of everyone.

    INNOVATION TAKEAWAYS

    VALUES ARE AT THE CORE

    Data-driven decision-making within an organization should be seen as the default, accepting nothing less through all the ranks.

    WE COULD BE HEROES

    Recognize, profile, and support cultural role models that show a data-powered mindset in their daily work.

    SYMBOLS LEAD THE WAY

    PR management and publishing assets, images, and stories all help to brand and market a data-powered culture.

    Interesting read?

    Data-powered Innovation Review | Wave 3 features 15 such articles crafted by leading Capgemini experts in data, sharing their life-long experience and vision in innovation. In addition, several articles are in collaboration with key technology partners such as Google, Snowflake, Informatica, Altair, A21 Labs, and Zelros to reimagine what’s possible. Download your copy here!

    Boost your cloud journey with Capgemini’s data center migration program

    Thomas de Vita
    2022-02-01

    In fact, according to Gartner’s Leadership Vision 2021, by 2024, 25% of traditional large enterprise CIOs will be held accountable for digital business operational results, effectively becoming “COO by proxy.”

    As such, digital transformation is now a leading budget priority for 77% of CIOs worldwide. The business drivers behind a move to cloud are too many to list here, but for one, cost efficiencies are gained by businesses as they move from heavy CapEx to a more flexible OpEx model. Secondly, the previously tricky practice of divestitures during M&A is hugely simplified through the cloud, as the need for converging networks is eliminated. Thirdly, if a business so chooses, it can completely stop dealing with the data center internally, and simply offshore that responsibility to its cloud provider.

    If businesses want to take advantage of these opportunities, they need the flexibility to reinvent their data centers locally, in the cloud and at the edge – to effectively meet new business expectations with ongoing innovation around scalable infrastructure, security, AI, advanced analytics, 5G edge computing, and more.

    This is all easier said than done, however. Data migration projects are complex with myriad IT systems, vendors, and regulations. Any shortfalls in execution will result in unplanned outages, security breaches, and compliance issues.

    That’s why, to help businesses in meeting their digital transformation goals, Capgemini joined forces with Microsoft last year to launch the Data Center Migration (DCM) Program. Between Microsoft’s track record of innovation, funding capability, extensive service catalogue and Capgemini’s experience of driving large transformation projects, and ultimately, the capability to scale up and industrialize that model for time and cost efficiency, it’s a partnership that makes sense for businesses.

    Through this exclusive partnership with Microsoft, Capgemini enables the migration of clients’ data centers and workloads to Microsoft Azure with minimal disruption to business.

    Harnessing the power of Microsoft Azure, we have helped many global brands to accelerate their business results. Here are some recent examples:

    • Action’s retail business is mainly built around brick-and-mortar stores, so the onset of the pandemic created an immediate existential threat to the business and a need to build an online shopping platform. Capgemini, together with Microsoft, helped Action in migrating its workloads to the cloud. Built on Azure, the new cloud platform supported online shopping via click and collect in France, which was then rolled out across Europe. This agility helped Action to remain operational during the pandemic.
    • Capgemini’s longstanding customer GEFCO recently renewed its contract to modernize its IT infrastructure. The aim of this project is to reinforce security and quickly adopt public cloud to accelerate businesses cost reduction. Capgemini will adopt a multi-cloud approach to deliver on GEFCO’s Infrastructure transformation objectives.

    The business drivers for a move to the cloud are manifold, and CIOs are increasingly being evaluated on their ability to use innovative technologies to build agility and accelerate business results. As the pressure to migrate to the cloud intensifies, CIOs should look to external experts that have the infrastructure and expertise to simplify the migration process and create a strategy for scaling over time.

    To find out more about the DCM Program, contact a member of our team here.

    Digital security and the quantum internet; do the two go together?

    Julian van Velzen
    Julian van Velzen
    2022-02-01

    Encryption is changing with the advent of quantum technology. Governments need to act now to be safe in the future. Quantum mechanics enables new unbreakable security standards. Quantum technology must not fall into the wrong hands. A widely supported framework limits the chances of misconduct.  It is imperative that the EU takes a leading role in the development of quantum technologies.
    The choices made today by public safety and security organizations with regard to the quantum internet will determine our future security. With the advent of new advanced computers cracking today’s encryption with ease, we must act now and draft the laws and regulations of tomorrow.

    Governments beware: the second quantum revolution is unfolding. Where the first quantum revolution laid the foundation for modern science, we will soon see science being translated into practical applications to solve the world’s most complex problems. These problems now require literally millions of years of computing time on the world’s strongest (classical) supercomputers. It is clear that, in various industries, quantum technology will have a disruptive effect.

    Like ordinary computers, quantum computers will also be connected to each other through a ‘quantum internet’. Currently, the internet provides the global connection between classical computers and is an indispensable part of today’s society. Along with the early rise of the internet, concerns about (online) safety grew in tandem. From internet banking to the storage of personal data, cybersecurity became woven into the internet. Deducing from how the internet evolved from ARPANET to TCP/IP stacks, we will likely see a similar situation with the quantum internet.

    The security of the quantum internet

    There are two areas of concern with regard to the security of the quantum internet. On the one hand, the quantum internet brings the possibility of (and the need for) answering emerging challenges in the cybersecurity domain. At a time where digital processes are a cornerstone of every organization, we rely heavily on proper cybersecurity measures and up-to-date encryption. Fast changing, and increasingly complex cybersecurity poses the risk that governments, businesses, and individuals will not be able to keep up with the latest security measures to ensure safety of their data. Alarmingly, this means we run the risk of critical systems being easy to break into.

    At the same time, the advent of unprecedented quantum computing power threatens to break critical encryption. There could be disastrous consequences should quantum computers fall into the hands of malevolent groups or individuals. Hostile nations or terrorist organizations could use this computing technique to uncover state secrets, steal intellectual property, or disrupt financial markets. It is therefore crucial to mitigate the risks of quantum computers and prevent malicious parties from gaining access to certain parts of the quantum internet.

    Governments must take a leading role in the preparation of the quantum internet’s advent. First, outdated encryption must be updated. Timing is of the essence or governments run the risk of sensitive and critical information being stolen. Security for critical information that must remain confidential even in the long term will be the first to be adapted — and fast. There is no more time to lose. Second, governments will have to regulate those who can make use of the quantum internet’s unprecedented possibilities to avoid quantum computers falling into the wrong hands.

    Mitigating the quantum risk is complicated because unbreakable encryption and blind quantum computing make it impossible to have insight into the intentions of quantum internet users. A well thought out protocol will have to be developed, through which access to the quantum internet for the right parties can be guaranteed and malicious parties can be denied. It is important that governments and their public security agencies are at the forefront of this. Choices about standards, protocols, and regulation will be decisive in ensuring the wise use of the quantum internet. The choices we make now will determine our future digital security.

    Digital security at the time of quantum technology

    Let’s discuss post-quantum cryptography (PQC). This is cryptography that is believed to be impossible to break, even for quantum (super)computers. However, as technology evolves, we can never know for sure whether unbreakable remains unbreakable. For example, encryption that was deemed safe in the past has since been cracked. In the 1990s, it was assumed that essential keys in internet traffic, such as the symmetric keys RC2, RC4, DES or 3DES, and hashing functions such as MD2, MD5 or SHA1 were safe. But in time, through new mathematical insight and faster computers, it turned out that these standards could be successfully broken by smarter algorithms on ordinary computers. Now it appears that asymmetric keys such as ECC and RSA, and, to a lesser extent, symmetric keys such as AES, can be broken using quantum computers. So, while we expect PQC to be unbreakable by either classical or quantum computers, we do not know this for sure. New mathematical insights could lead to PQC having to be replaced as well.

    For the most sensitive data, it is therefore important to go one step further. Fortunately, the quantum internet offers a solution here. By using the entanglement of particles (a characteristic of quantum physics that makes particles share a special bond), encryption can be designed that is provably unbreakable. This means that even if new mathematical insights were to occur, the encryption would still not be broken. The development of the technology behind this, which is referred to as ‘quantum key distribution’ (QKD), is in full swing. However, many breakthroughs are still needed before a European network with encryption based on QKD is available. And even then, the implementation of QKD will be extremely expensive and complex, and therefore not suitable for every use-case. However, if data needs to remain protected for a long time, it can offer a solution.

    Even if this form of unbreakable encryption becomes available, a variety of different encryption techniques will still need to be in place. This is due to the fact that QKD is only intended for key exchange. With regard to other cryptographic primitives (such as digital signatures or message encryption), other forms of encryption are still relied on (either PQC or older traditional or contemporary forms of encryption).

    Different applications will require different forms of PQC and there will be no ‘one size fits all’ solution. The use of PQC will have to be evaluated case by case, considering different properties such as key lengths and encryption/decryption performance, the algorithm, and its implementation.

    All in all, digital security will change in the age of quantum technology. Our security will increasingly depend on complex systems, and migration to more secure systems will become ever more complicated due to the cumulation of data. At the moment, awareness of the need is still too low, although large companies are beginning to recognize its importance. It will also be a major challenge to renew standards across the broad scope in which encryption is used. In addition, smaller governments or companies with smaller budgets will struggle to cope with the large number of complex systems, which will delay the migration. This poses a risk of there being holes in the protection of our digital security. The solution lies in better cooperation within governments; both amongst governments and with private sector companies, knowledge institutions and civil society.

    Responsible use of the quantum internet

    The question here remains: how can malicious parties be prevented from abusing quantum technology? We must prevent criminals, terrorists, or hostile governments from using quantum computers to break traditional encryption and gain access to essential infrastructure, such as power plants or military systems. The consequences of this would be incalculable. Besides breaking encryption, more algorithms that run on quantum computers could potentially harm society. An example would be quantum algorithms that are particularly effective in calculating the chemical properties of molecules. These algorithms allow new materials and drugs to be invented. But here, too, there is a downside. What if a government acting on its own authority uses quantum computers to develop chemical weapons or a new virus?

    Therein lies an additional danger. Due to the changing encryption on the quantum internet, it is becoming increasingly complicated to check that users have the right intentions. By using PQC or QKD, messages sent over the quantum internet can no longer be traced, even by intelligence services. In addition, the quantum internet could offer possibilities to perform calculations and use the internet completely anonymously. This so-called ‘blind quantum computing’ ensures that even the owner of the quantum computer is unable to find out what calculations users perform on the computers. While this can offer great applications in terms of privacy, there is a risk of losing all insight into users’ intentions.

    In Europe, innovation in the field of quantum technology is predominantly financed through public funds. Its benefits will therefore have to reach entire populations. It is quite conceivable that once the quantum internet is functional, there will be winners and losers. Globally, we as humanity would therefore do well to open up this quantum internet and grant each other the right to communicate securely when it comes to critical information. The right to keep sensitive information secure should not only be reserved for the smartest countries and parties.

    In addition, we will still need to regulate what the quantum internet is used for, because even without the ability to send uncrackable data, both the sender and the receiver should not be allowed to spread harm.

    This means that, with the approaching possibilities of the quantum internet, a widely supported framework is needed that steers towards responsible use. Public security entities will have to ask themselves questions such as: how do we ensure fair access, controls, and guarantees? And how do we defend ourselves against malicious organizations and individuals?

    Technological sovereignty

    By now, governments around the world have started to see the importance, and dangers, of the quantum internet. In the United States, for example, the National Quantum Initiative has a grant of more than $1bn at its disposal. However, there is always a bigger fish: the US program is small fry compared to that of China. In 2020, the Chinese government announced a $10bn subsidy program. This ambitious science program undeniably makes China one of the world leaders in quantum technology. In recent years, the European Union has also invested a lot of money in various quantum technologies; the European Quantum Flagship program has a budget of over €1bn until 2028. Quantum technology also plays a role in other grant programs, such as Horizon Europe (with a proposed budget of around €100bn), and individual EU Member States have ambitious programs in place.

    Alongside government projects, companies are investing in research. Although the associated profit is virtually zero at this time, these companies are proactively preparing for the paradigm shift that quantum technology can, and almost certainly will, bring. European companies are not standing still in this respect. Due to the necessity of a space travel element in quantum communication and security, multinationals such as Airbus and Thales are at the forefront of quantum innovation. Yet, the market is dominated by American ‘big tech’ firms. Financing comes from both the deep pockets of these firms themselves and the venture capital that abundantly flows in the United States.

    To safeguard European values, take advantage of economic opportunities, and protect our technological sovereignty, we must catch up soon. Europe has previously been slow to respond in the race for artificial intelligence: can we keep up and even get ahead in the field of quantum technology?

    Making choices on the front line

    The quantum internet age is nearing. Now is the time to make deliberate choices with regard to its openness and sovereignty, and the topic must be addressed in drawing up today’s security policies.

    European governments must set an example in a world of changed digital security. Billions of euros in subsidy processes will be needed in the roll-out of QKD networks, and companies will have to be made aware of the dangers and benefits of the quantum internet. Simultaneously, state-sensitive data must be properly protected.

    Finally, public security bodies will have to make choices in order to ensure fair and responsible access to the quantum internet. To protect the interests of citizens, access cannot be reserved purely for the richest or smartest, and malicious organizations must be prevented from using the quantum internet to disrupt social systems.

    Do we opt for a structure dominated by American and Chinese big tech, or do we strive for a structure like the existing internet? Will we learn from the historical development of the internet, and proactively create universal laws and regulations, protocols, and standards?

    To be at the forefront of innovation, instead of passively following, is of great importance to the security and sovereignty of Europe and its nation states. Let the adage “If you want to go fast, go alone; but if you want to go far, go together” apply to our European future in the world of quantum innovation.

    Definitions
    Quantum internetThe vision of a quantum internet is to connect quantum processors by means of quantum communication. In synergy with the classical internet, the quantum internet will enable new internet technology that used to be impossible. Examples include unbreakable cryptography, clusters of parallel quantum computers, and quantum sensor networks.
    Quantum key distributionQuantum key distribution (QKD) is a technique that uses the entanglement of quantum particles, allowing for uncrackable keys to be shared.
    Post-quantum cryptoPost-quantum cryptography (PQC) is classical encryption, believed to be safe from future quantum attacks.
    Quantum computingQuantum computers are machines that make smart use of quantum mechanical phenomena, which can cause some arithmetic tasks to be accelerated to an extreme degree.
    Blind quantum computing‘Blind’ means that the supplier of the quantum computer does not have (complete) information about the tasks that are performed. This means that the user has complete privacy.

    Find out more

    This article has been adapted from a chapter in the Trends in Safety 2021-2022 report giving European leaders insight into the safety and security trends affecting citizens in the Netherlands.

    • The full report in Dutch can be found here
    • An executive summary in English can be found here

    For information on Capgemini’s Public Security and Safety solutions, visit our website here.

    Authors

    Julian van Velzen
    Expert quantum technology
    Julian van Velzen is CTIO & Head of Capgemini’s Quantum Lab: a global network of quantum experts, partners, and facilities, focused on three key areas: sensing, communication and computing. From this Lab, Capgemini is exploring with its clients how to apply research and build demos to help solve business and societal problems that, up until now, have been seemingly intractable.
    Email : julian.van.velzen@capgemini.com
    Luc Baardman
    Senior Consultant Public Sector
    Luc works at Capgemini Invent on projects in  which he searches for the common denominator in achieving profit for every party in every collaboration. Luc applies Capgemini’s method of Empowering Ecosystems in public themes, such as smart cities and cybersecurity in both national and European playing fields.
    Email : luc.baardman@capgemini.co

    Authors

    Julian van Velzen

    Julian van Velzen

    Quantum CTIO, Head of Capgemini’s Quantum Lab
    I’m passionate about the possibilities of quantum technologies and proud to be putting Capgemini’s investment in quantum on the map. With our Quantum Lab, a global network of quantum experts, partners, and facilities, we’re exploring with our clients how we can apply research, build demos, and help solve business and societal problems that till now have seemed intractable. It’s exciting to be at the forefront of this disruptive technology, where I can use my background in physics and experience in digital transformation to help clients kick-start their quantum journey. Making the impossible possible!
    Luc Baardman

    Luc Baardman

    Managing Consultant and Lead Enabling Sustainability Capgemini Invent NL
    “Sustainability at its core is the most important transformation question of our time. Left unanswered, it will wreak havoc upon the world and its population, and it is up to all of us to play our part in becoming sustainable in an inclusive manner. Capgemini’s part is to remove the impediments for a better future, to truly enable sustainability.”

      2022 Key trends in smart territories

      Luc Baardman
      Luc Baardman
      2022-01-31

      With almost 70% of the world’s population predicted to be living in urban areas by 2050, digital technology will be the oxygen that enables citizens and businesses in cities and surrounding communities to function effectively and harmoniously, using streamlined and connected infrastructure and services.

      The latest EU Open Data Maturity Report, published in December 2021, reveals another year of progress by 34 nations surveyed in ongoing efforts to encourage and enable the secure and appropriately regulated sharing of data held by the public sector.

      This strong, year-on-year trend is set to continue in 2022 as the EU’s Open Data Directive prompts the actions required to overcome historic barriers and to promote access to public sector datasets with high potential economic and societal impact.

      1. Data will be the essential fuel on the journey to intelligent urban ecosystems

      The volume and diversity of information freely available from the day-to-day activities of citizens and businesses is growing by the minute. When added to the data held by the public sector, this combination adds significant fuel to the drive by smart cities and territories to deliver innovative, easy-to-access services, that nourish local communities and economies, attract visitors and promote sustainability.

      By striking the right balance between the value of open data and the essential principles of data protection and privacy, the smart technology possibilities are endless, especially when real-time data is added to the mix.

      Harnessing the Internet of Things and sensors in smart devices can transform service quality and value, such as public transport apps that display not just a bus or train timetable, but optimize the routes based on user-data, making travel easier, more attractive and affordable, convenient and sustainable.

      Similarly, a live view of available municipal car parking spaces helps journey planning, cuts urban congestion and illegal parking. Information will also identify those who fail to make parking payments, ensuring that important income is collected. It also helps the uptake of shared car concepts, as smart companies can analyze the data to target neighborhoods that are more ready for the shift (especially those where cars are 99% unused).

      The will to move towards intelligent urban ecosystems is already with us. As we showed in our 2020 research Street smart: Putting the citizen at the center of smart city initiatives, most citizens believe that the smart city will lead to more sustainability (58%) and better urban services (57%). The extension of open data, to citizens, academics, businesses and other service providers, will only enhance the ability of cities and wider communities to predict the needs of citizens and create the infrastructure that meets those needs.

      And the logical extension of these principles is the expansion of data sharing across borders, between communities, cities, regions and nations, creating connections, sharing benefits (and costs too) and building security.

      This digital driven collaboration culture will surely also open doors to another dimension: the Metaverse for cities. For instance, Seoul has announced that it is the first city to create a metaverse by building a virtual communication ecosystem for all areas of its municipal administration, targeted for 2023. We believe that other smart territories can be expected to embrace this idea as well and put it on the table of discussion in 2022.

      2. Resilience will be a cornerstone principle of urban planning and development

      A recurring challenge for big cities and nations hosting major sporting events, like The Olympic Games and the FIFA World Cup, is ensuring that the infrastructure left by the hosts retains value and function as a community asset, long after the athletes and footballers have left.

      Recent history paints a mixed picture post-Olympic Games, with the abandoned sports stadia in Rio contrasting with the successful redevelopment of the East End of London, with the former Olympic Stadium nowadays home to Premier League football, concerts, business and cultural events.

      COVID-19 has created a similar challenge for businesses and public authorities too, with office buildings and other venues and assets standing largely empty as employees and citizens continue to stay at home in large numbers.

      The concept and desirability of Resilient Cities is not new, with the Rockefeller Foundation’s 2014 Resilient Cities Challenge delivering transformational results in Rotterdam, Antwerp and Glasgow.

      But unique circumstances create unique opportunities and 2022 will see resilience at the heart of infrastructure planning in cities, built around RAMS principles – Reliability, Availability, Maintainability and Safety – providing the flexibility to change the use of buildings and other assets to meet evolving requirements, one off events or emergency situations.

      In 2022 urban leaders will have to ask themselves – what do we do with the newly installed COVID-19 infrastructure? Successful cities will make use of the current dip in urban car kilometers, outfitting streets with cycling paths that stimulate healthy transport. By building in resilience, adaptability and multi-usability, cities will become more sustainable and in tune with the evolving needs of citizens, businesses and visitors alike.

      3. Smart citizens will increasingly influence public policy in cities

      The existence of digital technology in cities is only successful when citizens, businesses and visitors feel confident about using it, and when it adds value and enjoyment to their experience of city life. In 2022 enlightened public authorities will increasingly recognize that encouraging and enabling the participation of citizens is crucial to the achievement of truly smart cities and territories.

      This year, the use of digital participation platforms such as Decidim and CONSUL will expand, providing additional, accessible and direct ways for locals to participate in the democratic process, collaborating and co-creating solutions that address grassroots requirements and goals, including devolving budgetary control to community representatives.

      There will be more shining examples of this shift towards public co-decision-making, like Barcelona, where Decidim enabled almost 7,000 citizens to participate in the creation of the city’s municipal action plan. In Helsinki, residents were invited to vote on the merits of almost €9 million worth of city projects, with the proposals receiving the most votes getting the go-ahead.

      Participatory budgeting is now built into the fabric of government in the Finnish capital, under the headline “The Helsinki of dreams is made together”.

      4. Data and cloud computing will make transparency and cybersecurity even more vital

      As cities and surrounding communities become more data-driven and data dependent, so the need for more robust and comprehensive cybersecurity counter measures grows too.

      But 2022 will also be a year in which the ethical considerations relating to the collection, analysis and increased use of personal data will challenge how that data is used to train machine learning models and create artificial intelligence algorithms. Sharper focus will be required when data is used by multiple interested parties.

      Public expectations of transparency about how data is being used, the values, principles and policies underpinning its use and the governance models and accountability of those using it will continue to grow, with organizations less than open about their approach suffering from increased levels of reputational damage. Biases in data sets must actively be fought.

      5. Co-ordination and collaboration will continue to keep pace with urbanization

      Smart cities and territories have to be human-centric, to make those living, working and visiting feel safe, comfortable and at ease with their surroundings. As millions of people continue to move to urban areas each year, co-ordination and collaboration between neighboring cities, suburbs and communities becomes essential for social cohesion and economic prosperity and sustainability.

      Services deliver most value when they are continuous, irrespective of location and jurisdiction, transitioning seamlessly as individuals move around. But achieving this requires co-operation on many levels, political, financial, operational, and technical, and in many places, these are many hurdles yet to be overcome.

      But despite the restrictions of COVID-19 remaining in place at the start of 2022, governments, public authorities and citizens are ready to capitalize on new freedoms and new normals. The pandemic has shown that organizations and individuals that are traditionally cautious and slow to act are in fact capable of innovation, agility and speed in a crisis, and intend to take these skills and mindsets into other areas of their lives. It’s a time of profound change.

      Further reading

      Find out more about Capgemini’s public administration services.

      Our look at 2022 trends in smart territories was compiled in conversation with:

      Luc Baardman

      Luc Baardman

      Managing Consultant and Lead Enabling Sustainability Capgemini Invent NL
      “Sustainability at its core is the most important transformation question of our time. Left unanswered, it will wreak havoc upon the world and its population, and it is up to all of us to play our part in becoming sustainable in an inclusive manner. Capgemini’s part is to remove the impediments for a better future, to truly enable sustainability.”

      Vasilisa Sayapina

      Manager, Capgemini Invent
      Vasilisa is a sustainable HR enthusiast with an expertise in multiple topics of Reinventing work: talent management, digital upskilling, learning & development.

        Elevate your cloud strategy – Cloud economics & optimization

        Capgemini
        Capgemini
        28 Jan 2022

        Leveraging Public Cloud Platforms is not a hype anymore, adopting Public Cloud is a must to compete in today’s digital market. With the flexibility and speed of delivery, Public Cloud helps companies lower the time-to-market and explore new innovative technologies. This explains why many companies have already adopted some form of the Public Cloud.

        However, lack of cloud governance may raise your IT spend drastically, do you still have control over your Public Cloud spend? Read the interview of Rijk van den Bosch, Cloud CoE Lead, Capgemini, about the real cost challenges of Cloud

        Taming the spiraling costs of Cloud

        In the market, Capgemini sees that one of the biggest challenges is Public Cloud Governance and how to keep control over Security, Costs, Risks and Architecture compliance. Cost is one of the biggest aspects of this challenge and includes:

        • Controlling (over-) spending: When the growing usage of Public Cloud reaches the office of the CFO, generally teams are overspending.
        • Transparency in costs: With different teams and departments using Public Cloud features, consumption of Public Cloud increases as the number of services grow, leading to a lack of transparency in costs.
        • Utilization of resources: Using the flexibility and scalability of Public Cloud is fundamental to keep the costs low. This means that resources that are not- or underutilized can be shut- or scaled down to reduce the consumption costs.
        • IaaS implementations that can be modernized: Modernizing your application landscape to microservices, containers of even serverless applications gives you the opportunity to use the real flexibility and scalability of the Public Cloud.

        See-Decide-Act: Capgemini’s Cloud Economics and Optimization

        Our Cloud Economics and Optimisation assessment, is a consultation that aims to detect, identify and implement necessary cost optimisation to minimize cloud operating costs, through a structured approach. This Service also provides greater emphasis on creating a culture of cloud cost accountability and transparency. The assessment combines our expertise, best practices and a toolset to:

        • Visualize Cloud Consumption
        • Create an inventory of your Public Cloud estate
        • Improve on Cloud Costs efficiency

        Identify quick wins in cost reduction for your IT landscape

        Capgemini offers this as a 7-8-week assessment, that involves a high-level assessment of your Public Cloud environment, analysis of your Public Cloud consumption and the delivery of an advice report to reduce and control your Public Cloud spend. The offer is Cloud Agnostic, this means that it can be based on any Cloud Service Provider like Microsoft Azure, Amazon Web Services and Google Cloud Platform.

        With minimal effort and costs the assessment will gain you the following valuable insights.

        • Quick Wins to reduce your Public Cloud spend in just a few steps.
        • Visibility and transparency in your actual Public Cloud consumption and the forecasted consumption.
        • Advice on Application Modernization and the usage of Platform as a Service features like containers, webservices and/or serverless functions.
        • Help create a culture of cloud cost accountability and transparency.