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Business outcomes – The most disruptive commercial lever yet

Priya Ganesh, Vice President, Head of F&A Solutions, Capgemini's Business Services
Priya Ganesh
Jan 31, 2024

Any organization with shared services – regardless of size – can benefit from having a Business Outcomes Officer focused on driving outcomes and value delivery.

Global Business Services (GBS) organizations have shifted focus from just delivering services to driving tangible results and value. Indeed, today’s breed of GBS leaders are becoming an active C-suite who help shape and influence design thinking to drive organizational growth ambitions for the CFO and CEO.

Deloitte’s 2023 Global Human Capital Trends report that states: “Whatever a hierarchical organization chart says, real, day-to-day work gets done in networks. This is why the organization of the future is a ‘network of teams.’”

The typical organization chart as we know it often doesn’t fully describe how work gets done. This is affirmed by Deloitte’s 2023 Global Human Capital Trends report that states: “Whatever a hierarchical organization chart says, real, day-to-day work gets done in networks. This is why the organization of the future is a ‘network of teams.’”

To this end, operational leaders are becoming a central force for the success of the organization, with the bulk of transformation effort designed and implemented within their business units and departments.

Busting myths

In order to achieve this ambition, the role of the Business Outcomes Officer has evolved as a dedicated profile led by a senior professional to focus on driving the business outcomes from design to deployment, and help onboard the client thinking into this new paradigm.

As a new role title with a big buzz, there are some myths to bust and realities to re-emphasize on what the role entails and what is expected of the role:

Myth 1: the Business Outcomes Officer will lead the charge for regular service delivery and operational excellence in a GBS organization – this role doesn’t replace service delivery, but complements delivery leaders who can then focus on the operational and day-to-day tasks. The Business Outcomes Officer drives conversations to bring disruptive process changes led with a business first mindset.

Myth 2: the Business Outcomes Officer is an independent contributor with unique ways of working that have nothing to do with the operational environment – this is contrary to the spirit of the “network of teams” approach within the new organizational structure. This role will have a strategic and holistic perspective with specific business outcomes and goals. It also requires a high degree of collaboration and influence across various departments and functions to ensure strategies and initiatives are coordinated.

Myth 3: the Business Outcomes Officer is focused on tracking metrics and KPIs aimed at reducing shared services costs – while efficiency is a key goal, this role focuses on conversations towards adopting innovation, driving business value, and increasing operational influence. This is also the reason why organizations tend to look internally to appoint senior leadership who understand GBS ways of working and can drive the client narrative.

In short, the role of the Business Outcomes Officer drives a fundamental shift in the narrative that “outcomes are better than outputs.”

Getting started

Any organization with shared services regardless of size can benefit from having someone focused on outcomes and value delivery. Here’s how to get started:

  • Structuring GBS 2.0 around the outcomes and the experiences you are creating and delivering. This requires a shift in the way metrics and measures are outlined and performances are evaluated. The firms of the future may become self-starters who come together to fulfill mission critical activities – sort of like a Hollywood model of work to bring people to fulfill a project.
  • Building committed outcomes into the contracting structure with assigned and measurable results. This will be a mindset shift from the previous version where outcomes were a “design approach” or a value add. This forces the thinking towards creating tangible and results-oriented minimum viable products.
  • Having the courage to dismantle time tested assets and methodologies and embrace the massive change in the digital ecosystem. This means having the right investments to create incubators for testing, look beyond the default position of reading use cases, while being ready to create history by becoming the forerunner to drive the change.

Embracing and leading change is not new to Capgemini. As a leader in adopting the business outcomes commercial model, we’ve worked with clients of all shapes and sizes across the globe to successfully deploy enhanced business outcomes from the beginning of our contracting timelines.

To learn more about how Capgemini’s Frictionless Finance can transform your GBS operations through leveraging a business outcomes model to deliver enhanced business outcomes, contact: priya.ganesh@capgemini.com

Meet our expert

Priya Ganesh, Vice President, Head of F&A Solutions, Capgemini's Business Services

Priya Ganesh

Chief Outcomes Officer, Capgemini Business Services
Priya Ganesh, a seasoned finance and accounting professional, excels in solution design, transformation, and operations management. Her strengths lie in client relationship management, change management, and implementing finance business transformation models. Currently, she focuses on transformative solution design and presentation for global finance and accounting accounts, showcasing expertise in innovative contract renegotiations.

    Connected CX – Driving enhanced business outcomes in utilities

    Europe GTM Leader, Intelligent Customer Operations, Capgemini’s Business Services
    Parham Saebi
    Jan 31, 2024

    Leveraging a connected, market-differentiating CX strategy can help organizations in the energy and utilities sector significantly improve their customer services operations.

    Utilities are interesting because they fall into several categories. They provide simple commodities, but they also provide critical services. They address public and private sectors alike. They’re used by businesses, and also by consumers.

    In this article, we’re going to look at utilities in a consumer context, and how leveraging a connected CX strategy can help organizations improve their customer services operations.

    The opportunity for enhancing CX

    Like businesses in many other markets, utilities companies face perception challenges. In the UK, for example, customer satisfaction levels dropped over the last 12 months for organizations in most sectors – with the largest drop coming from the Utilities sector. This is happening at a time of increased levels of vulnerability, consumers needing easy and quick access to support from their utility providers, and increased ease to switch suppliers when things are not going well.

    According to the Institute of Customer Service, customer satisfaction within the Utilities sector has fallen to its lowest level in eight years, dropping 5.6 points to 67.9 out of 100. The Household Consumer Perceptions of the Energy Market report produced by Ofgem also indicates that perceptions of consumer interactions with suppliers sit at the lowest levels since tracking began:

    • 58% of consumers who have contacted or attempted to contact their supplier found it easy to do so
    • 57% of consumers are dissatisfied with complaints handling
    • 37% of dissatisfied consumers cite long resolution times and 35% not having their query resolved
    • Only 45% and 54% of consumers found it easy to contact their supplier via phone and live chat, respectively.

    These experiences are driving customer churn. According to Capgemini’s World Energy Markets Observatory report, UK churn rates averaged at 15.8%, but this is expected to grow as product and market choice opens up.

    Failure to deliver the right customer experience and meet evolving consumer expectations and needs can put utility companies at risk of financial losses through loss of consumers and long-term reputational damage.

    Connected CX – Driving differentiation

    From these findings we can infer a set of guiding principles for an effective customer experience strategy. CX needs to be seen as a key differentiator in a competitive market. Utility companies need to adopt a consistent and holistic approach to ensure an effortless, personalized customer journey. This will empower consumers to be supported at any time and on any channel, removing points of friction and enabling low effort, high quality experiences.

    Any solution needs to be flexible, enabling consistent interactions across different contact channels; it needs to facilitate a personalized service based on the customer lifecycle and need, at scale; and it needs to enable proactive efforts to build relationships and retain customer loyalty through exploiting and maximizing the utilization of internal and external data points to ensure a hyper-personalized service offering.

    The key components of a connected CX strategy

    What are the key components of a strategy informed by these principles?

    • A best-in-class operating model, leverages the “human in the digital loop” approach that enables support across the end-to-end customer touchpoints based on customer need and complexity. This will provide an effective and efficient value chain, driving scalable, resilient, consistent, and agile operations
    • The proactive availability of contextual, personal, customer knowledge across channels, helping customers to resolve their own queries promptly on their channel of choice. The better it works, the greater the take-up of digital self-service will be
    • An environment in which customer operations teams are able to own any customer interaction across the customer journey, enabling them to build relationships and see things through to completion
    • End-to-end visibility of data, providing a single source of truth for each individual customer and enabling measurement of effort and satisfaction across each touchpoint
    • The facility to personalize experience in every customer interaction, by integrating solutions and data points that identify individual customer histories and preferences to deliver a 360° customer view
    • Infusing AI and digital solutions into the overall service offering to drive improved, human-like, effortless interactions and immersive experiences, as well as augmenting the support team to provide the right resolution and next best actions as quickly and efficiently as possible.

    Partnership drives enhanced business outcomes

    These strategic elements can be part of what we at Capgemini call Intelligent Customer Operations – an ecosystem of connected, intelligent solutions working in synergy to enhance overall experience for customers and the organization alike.

    A knowledgeable service provider with experience of enterprise-level customer services transformation projects can work in partnership with major utilities businesses and other organizations to improve customer and employee experience outcomes through reducing effort, optimizing processes and journeys, and reducing consumer churn to deliver enhanced commercial outcomes.

    In the next article, we’ll look at the kinds of areas such a partner can support and the outcomes organizations can expect.

    To learn how Capgemini’s Intelligent Customer Interactions solution can transform your organization to deliver more meaningful, emotive, and frictionless experiences with your customers, contact: parham.saebi@capgemini.com

    Meet our expert

    Europe GTM Leader, Intelligent Customer Operations, Capgemini’s Business Services

    Parham Saebi

    Europe GTM Leader, Intelligent Customer Operations, Capgemini’s Business Services
    Parham Saebi delivers innovative, customer-first solutions that provide real competitive advantage, operational efficiency, and increased customer satisfaction to his clients

      Navigating the energy transition in 2024

      Capgemini
      James Forrest
      Jan 30, 2024

      The global energy landscape is at an inflection point, with significant changes needed in power generation, consumption, and sustainability, if we want to reach net zero. Technologies have a crucial role to play to accelerate this transition.

      This year, volatile market forces, governmental policies, and societal demands will converge to shape the pace and direction of the energy transition. We expect global energy prices to remain volatile this year, influenced by factors such as geopolitical tensions, the upcoming elections, market speculation, and fragile supply chains that are not secure enough to deliver on our energy needs.

      Looking ahead to the key forces set to shape energy demand, we expect to see the following advances, and challenges, in 2024.

      Sovereignty considerations will be at the forefront of the energy transition

      The energy transition’s pace hinges on this year’s crucial global elections, involving nearly half the world’s population. The outcome of these elections will decide how governments worldwide implement policies and incentives to speed up the move to cleaner energy alternatives. Though we’ll have to watch and wait for the political outcome, what we do expect to continue is the US making progress in clean electricity through its Inflation Reduction Act (IRA) and China’s carbon emissions declining this year, driven by a substantial increase in clean energy investments.

      We also anticipate a stronger link between renewables and energy sovereignty. Our World Energy Markets Observatory (WEMO) 2023-24 found that more countries are transitioning to in-country renewable sources as a way to protect energy supply against geopolitical uncertainties. The energy transition will continue to be a way to safeguard supply against geopolitical threats this year. Whatever the outcome of elections, we expect governments and regulators to lead market interventions, such as demand response and flexibility schemes, which are crucial for ensuring the integration of intermittent renewable energy sources and maintaining grid stability. We also expect to see more governments reassessing investments in larger, long-term assets like nuclear.

      SMRs have a simplified design based on existing and proven light water reactor technology (Gen III+ and predecessors), along with a mature and robust fuel supply chain. This reduces the overall licensing and build risk. While SMRs enjoy a well-established technological basis, other technologies such as advanced (Generation IV) reactors (Rs) will also see increased interest in 2024 as demonstration projects and the development of the fuel supply chain progress.  

      Nevertheless, many nuclear projects will face financial setbacks and will encounter regulatory challenges, as we have seen in the US. This is not unexpected as the industry emerges and will require innovative approaches to minimize risk to ensure project feasibility.  To be sure, there will be winners and losers, but fortune will favor the well-prepared.

      The year of consolidation

      As governments around the world gear up for elections, the private sector will also be looking closely at their priorities. The oil and gas industry will continue a period of consolidation as companies streamline their operations and focus on assets that align with their transition plans.

      The role of gas in a net-zero emissions future is also subject to debate, and the private and public sector alike will need to carefully consider the environmental and economic implications of its continued use. We expect to see this consolidation accelerate in 2024 as companies seek to optimize their portfolios and adapt to the changing energy landscape.

      The potential of generative AI will become reality

      Last but not least, 2023 was indisputably the year of AI, with the technology having a profound impact on the world’s businesses. AI has more than 50 different uses in the energy system, and the market for the technology in the sector could be worth up to USD 13 billion.

      AI is already having a huge impact on the growth of smart grids and smart meters, so we anticipate an AI boom in the running of components within energy systems over the coming year, especially relating to customer service.

      Overall, as we continue to navigate the energy transition in 2024, the global landscape is undergoing profound shifts, presenting both challenges and opportunities. We are expecting to see further synergies between digital and sustainable innovation, taking advantage of the potential of technologies to accelerate the energy transition for the better. The continued integration of AI, alongside advancements in renewable energy and nuclear technologies, positions 2024 as a pivotal year in our collective journey towards a sustainable and resilient future within the energy sector.

      Learn more about our perspective on energy transition

      We help energy and utilities organizations to create a positive, long-term legacy of transformative, sustainable products and services that create new types of value, strengthen customer relationships, and help attract industry-leading talent.

      We believe in focusing on what the energy transition enables in our economy and society, not just what it must avert. We partner with energy providers to help them capitalize on the opportunities yielded by the renewable and sustainable energy transition, such as their new and complex relationship with active energy omnisumers.

      Authors

      James Forrest

      James Forrest

      Group Industry Leader for Energy Transition and Utilities at Capgemini
      I lead in helping global clients with major business transformations involving smart grid, IoT, the reform of gas and electricity markets, major software and infrastructure changes, and the use of machine learning and artificial intelligence to drive significant business performance improvement.
      Peter King

      Peter King

      Global Energy and Utilities Lead, Capgemini Invent
      I focus on driving transformation by working with my clients to define new ways of working, new operating models and the transformation programs that will deliver change.

        Investing in sustainability: How ESG impacts business, brand, and bottom line

        Greg Bentham
        29 Jan 2024

        I was excited to discuss sustainability on ServiceNow’s panel at Climate Week in NYC.

        ESG is such a layered topic. The premise may be straightforward – organizations must do all they can to mitigate climate change – but there are so many moving parts. In fact, the first question that Maria Hart, Director Alliances ESG Business Development, of ServiceNow put to us was ‘What makes ESG (environment, social, and governance issues) such a complex, difficult challenge for organizations to solve?

        Maria’s colleague, Geeta Jhamb, Senior Advisory Solution Architect, Risk Practice, of ServiceNow presented that in many cases, ESG is the responsibility of a designated team – but in fact, its success depends more on the engagement of the functions on the front line. It is down to the people who own the data to drive the program. It is true. More importantly, it is not as big of a priority as it should be, and there is work to be done by the people to demonstrate its relevance and importance.

        How can this argument be made? How can sustainability be moved up on the agenda at board level?

        The forces fueling the ESG fire

        So, what’s driving this surge in ESG consciousness? Several factors combine to create a flame of change.

        A regulatory tsunami

        The biggest cause of is regulation. Organizations need to recognize an alphabet soup of laws, guidance, and codes of practice, and it’s getting more and more complex. For example, in 2022, the European Commission adopted a proposal for a directive on corporate sustainability due diligence (CSDD). It includes due diligence and auditing around the sourcing of products. Developments like this simply can’t be ignored.

        Brand reputational risk

        The negative risk of sustainability on a brand is a major factor. There is an inherent trust associated with a brand, and a lack of commitment to sustainability from the brand, can imperil the trust of its customers.

        The war for talent

        People gravitates towards employers with values they respect. An organization that doesn’t demonstrate commitment to high ESG standards is going to be a less attractive employer as organizations that do prioritize ESG.

        The investor imperative

        In our talk, Geeta said that 60% of EU organizations, regardless of the nature of the product or service they seek, are including ESG requirements as part of their RFP process. Shareholders and other investors also expect to see organizations making formal pledges to ESG standards before they commit funds. In short, conforming to ESG principles is clearly not just a box-ticking exercise: it could mean losing out on business, or funding, or both.

        A long-term approach – Building an ESG foundation

        With so many different imperatives to act on ESG, it’s very tempting for organizations to jump right in. But in my view, simply jumping into the ESG fray without a strategic roadmap can lead to confusion and inefficacy. Here’s where a data-driven, technology-enabled approach comes into play:

        Here’s an example I used in our discussion. Let’s call it a shoe manufacturing company based in the US. The raw materials used to produce shoes were a big factor in the business, and the IT team wanted to be prepared because they knew that eventually they would be expected to provide reports including evidence of provenance.

        The power of data

        Our advice to the CIO was that two types of assessment would be needed. The first was a qualitative assessment: what was the organization’s readiness to embark on this kind of journey? The second was more quantitative: what data do you have that’s measurable? Specifically, as far as IT was concerned, it related to the IT assets and the associated relationships of those assets. Were they aligned in a way that was ready to be measured?

        In fact, in the context of sustainability, IT is a two-edged sword. Yes, it provides the data that organizations need to assess their positions and act; but on the other hand, it’s also a significant consumer of resources. It’s said that if IT were a country, it would be the third largest in the world in terms of CO2 emissions, and it accounts for 3%-3.5% of total emissions and growing.

        Cross-functional collaboration

        Is this a reason for gloom? In my view, no. Instead, it’s a call to action – a demand to place upon us to use IT as effectively as we can, mitigating against its sustainability overheads while at the same time putting it to best use. This means interacting and integrating with other functions in the corporation, including finance, HR, and operations, to create a new foundation for ESG. Because, just as IT is itself the bedrock on which all those business functions are based, so ESG itself will only be effective when it’s built on something that brings all these organizational constructs together.

        From insights to action

        In our discussion, Geeta pointed out that implicit in this argument was the need for a platform. An effective IT platform, she argued, should bring together data, ultimately yielding information made available to users to gain insights. It should provide a basis for an organizational change management strategy, from which workable policies can be developed – policies that can be tracked in practice, to ensure that teams are doing what’s needed and expected of them in pursuit of ESG goals.

        While the challenges may seem daunting, the rewards of embracing ESG are significant. Improved brand reputation, talent acquisition, investor confidence, and even operational efficiency are just some of the benefits of prioritizing sustainable practices.

        In the next article of this series, we’ll delve deeper into practical steps organizations can take to embark on their ESG journey, providing actionable strategies and tools to navigate the path towards a more sustainable future.

        Ready to unlock the potential of ESG for your organization? Explore how our ServiceNow partnership can help you develop a winning ESG program. Click here to find out more about how the world works with ServiceNow, and about partnering with Capgemini on an ESG program.

        Capgemini at ServiceNow Knowledge 2024

        Earmarked as the most intelligent Knowledge yet, ServiceNow’s flagship event, Knowledge 2024 will bring together 15,000 brilliant minds from across the globe in the heart of Las Vegas. There you’ll discover new ways to drive digital transformation, unlock new levels of efficiency and innovation by putting AI to work for your people.

        Productivity, meet experience. As a ServiceNow partner and a Platinum sponsor, we’ll be bringing to you experiences, demos and sessions to help you explore how to drive organizational success through seamless, people-centric approaches.

        Visit us at booth 5208 to reimagine your employee journey.

        Author

        Greg Bentham

        Greg Bentham

        VP & Global Head of Sustainability, Cloud Infrastructure Services
        I am a highly motivated technology services and consulting leader with a passion for building high-performing teams and organizations. For the last 24 years, I have led large global teams on both the Sales and Delivery sides of the business. So, I know what success looks like and bring know-how to elevate Corporate Social Responsibility to being an integral part of the business.

          Sustainability in food production
          a digital approach to environmental impact

          Michael Benko
          24 Jan 2024
          capgemini-engineering

          According to data released by the World Food Programme (WFP) in 2021: “Around one third of food produced for human consumption is either lost or wasted, amounting to a financial loss of about US$1 trillion annually… food loss and waste are prevalent in a world where enough food is produced to feed the world’s 7 billion people, yet 811 million people still go to bed hungry each night.”

          The WFP also reports that food loss and waste account for over 3 billion tons of greenhouse gases per year. If this were a country, it would be the third largest producer of greenhouse gases in the world, after the US and China.  

          And, as the world grapples with the urgent need to address climate change and its associated challenges, sustainability has become a priority in virtually every industry – food production is no exception.

          Food production is a major contributor to environmental degradation, and finding sustainable solutions to mitigate its impact has become paramount. In this post, we will explore how a digital approach is revolutionizing food production and enabling the industry to reduce its environmental footprint.

          The environmental challenge

          Food production is a multifaceted industry that includes agriculture, a complex supply chain, and significant resources to produce finished goods. It starts with food grown around the world. Prices are agreed, with crops and meats shipped (often over great distances) under carefully controlled conditions. Products are treated and produced in factories to precise recipes, then are packaged and shipped again to retailers and supermarkets to finally be sold to the customer.

          This all comes at a considerable environmental cost. It contributes to water use, greenhouse gas emissions, and single-use plastics waste. As the population continues to grow, the demand for food increases, further straining our planet’s resources.

          Sustainability: the imperative

          Sustainability in food production involves producing food in a way that meets our current needs, without compromising the ability of future generations to meet their own.  There are many dimensions to consider when addressing environmental, social, and economic concerns. The incorporation of sustainable practices is critical, but is a significant challenge, given the complexity of the industry.

          The digital transformation

          The integration of digital technologies in food production is paving the way for innovative solutions to tackle sustainability challenges. Here’s how a digital approach is changing the game.

          1. IoT and smart manufacturing
            • Internet of Things (IoT) devices enable real-time data collection within the factory..
            • Smart Manufacturing applications can track energy and water usage, tied back to recipe and process development. Optimizations can be made to reduce energy and water consumption.
          2. Data analytics
            • Advanced analytics and machine learning algorithms can process vast amounts of data to predict yields and detect supply chain disruptions, based on disease outbreaks.
          3. Supply chain optimization
            • Tracking sustainability metrics from vendors and co-manufacturers enables better reporting and the ability to focus on impactful initiatives.

          The benefits of a digital approach to sustainability

          1. Resource efficiency
            • Reduced resource consumption, such as water and energy, leads to lower environmental impact.
          2. Reduced packaging waste
            • Enhanced packaging design tools can lead to less material usage and/or more compostable material usage in product packaging.
          3. Lower emissions
            • Optimized supply chains and reduced energy usage in manufacturing decrease greenhouse gas emissions.
          4. Sustainable sourcing
            • Enhanced transparency in supply chains supports responsible sourcing practices.

          Conclusion: nourishing the world, safeguarding the planet

          Sustainability in food production is no longer an option; it’s a necessity.

          As the global population continues to grow and environmental pressures mount, we must find innovative solutions to ensure a sustainable future. The integration of digital technologies into food production is revolutionizing the industry, offering a promising path to reduce its environmental impact.

          By embracing a digital approach, we can make significant strides toward a more sustainable and eco-friendly food production system. It’s time to harness the power of technology to nourish the world, while safeguarding our planet for generations to come.

          Want to learn how a digital approach can help us to reduce the environmental impact of food production and be more sustainable, or find out how to implement it in your business? Connect with Michael now.

          Want to read more? In previous articles in this blog series, we cover how digital technology can transform food packaging , product development and quality & compliance.

          Author

          Michael Benko

          Michael Benko

          IT consultant and process engineer
          Michael Benko is an IT consultant and process engineer with broad cross functional expertise. His industry experience includes food & beverage and pharmaceutical manufacturing, along with software pre-sales, implementation consulting and numerous enterprise level software implementations. Michael combines his expertise in Product Lifecycle Management with new product development best practices to solve a range of businesses’ most pressing problems.

            Customer-Centric Product Development

            Learn about Customer-Centric Product Development and Digital Continuity, and how these can drive success in the food and beverage (F&B) industry.

            A revolution in food packaging

            Food packaging is an integral part of the modern food industry, ensuring the safety, freshness, and quality of products as they make their way from the manufacturer to the consumer’s table.

            Food Safety

            Ensuring quality and compliance

            Food safety has always been paramount, today is no different. Ergo, in the ever-evolving landscape of the food and beverage industry, ensuring the quality of products is of paramount importance.

            Helping the EU’s financial sector comply with the Digital Operational Resilience Act (DORA)

            Rahul Rauniyar & Marieke Van De Putte
            23 Jan 2024

            The European finance sector is heavily digitized and IT dependent, relying on digital technologies to drive significant advancements and foster innovation. However, this IT dependence and rapid digitization are also expanding the potential cyberattack surface area. As a result, banks, insurance companies, investment firms, and other financial-services providers (FSPs) have been forced to enhance their cybersecurity measures, vigilantly monitoring their online ecosystems to protect them against evolving threats.

            Currently, cyberattacks are doubling each year, emphasizing the importance of cybersecurity across your IT landscape. According to Check Point’s global reporting, the financial sector experienced a 52% increase in weekly cyberattacks in 2022 compared with the previous year. A regional breakdown also revealed that cyberattacks across all sectors in Europe surged by 26% between 2021 and 2022.

            As best-practice guidance to mitigate attacks, many European countries have been developing their own information security standards, such as the Good Practice Information Security document in the Netherlands, the Supervisory Requirements for IT in Financial Institutions (BAIT) in Germany, and the Financial Crime Guide (FCG) in the UK. Despite many proactive measures such as these, it is concerning to observe that cybercrime continues to show an upward trend.

            Introducing DORA

            The European Union (EU) has responded to the cybercrime acceleration in the financial sector by rolling out a new European standard for IT security called the Digital Operational Resilience Act (DORA). DORA introduces a framework for information security that applies to financial businesses operating within EU-member states, requiring them to maintain a high level of resilience. According to the EU council, this resilience ensures companies can “withstand, respond to, and recover from all types of Information and Communication Technology (ICT)-related disruptions and threats” in a way that safeguards business continuity and economic interests while protecting customers.

            The act is not limited to FSPs – such as European banks and subsidiaries of foreign banks in Europe –operating in EU member countries. It also extends to the third-party technology partners these FSPs work with, for example, data-reporting consultancies or cloud service providers, amongst others. If your business falls under any of these categories, it’s crucial that you ensure it is DORA-compliant by January 2025 to avoid potential fines. This gives you exactly a year to make the necessary preparations.

            Key steps for your business’s DORA compliance

            At its core, DORA is focused on mitigating cyberattacks. This is achieved by establishing standardized requirements for managing ICT risk, reporting ICT incidents, vetting the ICT risk of third parties, testing digital-operations resilience, and sharing information.

            ICT Incident Reporting encompasses the actions you’ll take to enable ‘business as usual’ in the face of disruption. It’s a process that monitors, records, categorizes, prioritizes, communicates, and addresses incidents. It covers areas like communications plans for keeping staff informed, your business’s backups strategy, and incidence-response planning. Meanwhile, Digital Operational Resilience tests should be regular and conducted by an impartial third party, providing you with the latest insights into your company’s vulnerabilities. It involves putting your organization’s threat-detection capabilities to the test. By identifying vulnerabilities, you’ll be better placed to enhance your incidence response planning.

            ICT Risk Management involves the documentation of how your company runs business-critical operations, and the digital infrastructure that supports these operations. Establishing frameworks and processes for identification, classification, and mitigation of ICT risks, and creating action plans and recovery strategies to address these risks fall under this area.

            Questions you might ask include which individuals are involved in each step of a process, what access control is in place for these staff, and which technologies are leveraged – from multifactor authentication (MFA) and virtual private networking (VPN), to remote desktop protocols (RDPs) and endpoint detection and response (EDR). Detailed operations mapping is crucial if you are to gain insights into vulnerabilities and their potential impact in the event of a cyberattack.

            Your business will also need to understand its own risk profile by establishing a framework for classification, documentation, and reporting of cyber threats. In the realm of third-party ICT risk assessment, one of the most challenging tasks lies in assessing the third-party ICT providers your business collaborates with. Contracts with these external vendors need to be regularly reviewed to ensure these providers are DORA-compliant. You’ll need a risk strategy, too, for mitigating the potential knock-on effects on your business of breaches experienced by third parties.

            Finally, FSPs must establish processes for deriving lessons from both internal and external ICT-related incidents. DORA promotes participation in voluntary threat-intelligence-sharing agreements.

            Supporting FSPs on their compliance journey

            DORA-compliance may seem deceptively simple, considering there are only five core areas to focus on – but, as always, the devil is in the details. The reality is that understanding the gaps in your existing digital-security landscape will require expertise in both compliance regulation and technical cybersecurity. This is because each FSP has a unique security landscape at various maturity levels depending on what measures are already implemented, meaning that the compliance process won’t be a one-size-fits-all solution.

            Dual-specialty expertise is part of Capgemini’s DORA compliance offering. As a DORA-compliant company, we offer an end-to-end solution for FSPs aiming to meet the act’s requirements. Capgemini’s approach respects the fact that your business won’t be starting compliance from scratch – your organization may have some of the necessary security measures already in place. By assessing your organization’s current state, Capgemini can recommend a tailored, modular solution. This is a more cost-effective way to ensure you are tackling identified areas of vulnerability by building on your existing cybersecurity efforts. Once your risk profile is mapped, Capgemini can craft suitable remediation, response, and mitigation plans to help you prioritize actions and prepare you for worst-case scenarios with confidence.

            Capgemini’s team can also assist with third-party vetting and the execution of vulnerability tests, both of which require ongoing attention. In fact, it’s important to recognize that meeting DORA requirements is a continuous evolving process rather than a one-off task. This is why part of the customized solution is to implement secure automated systems for continuous threat monitoring that enables active, real-time responses to potential security issues.

            Automation comes in many forms. For instance, Security Information and Event Management (SIEM) solutions can help FSPs speed up collection and analysis of security data from various sources, enabling rapid identification of anomalies or threats. Automated incident response systems are valuable, too, as are automated penetration-testing tools that accelerate and broaden the testing scope to maintain your organization’s security posture. Automated patch management systems are vital as they ensure that the latest security updates are applied consistently across the IT landscape. To strengthen access authorization and change management, automation through an AI-led Identity and Access Management (IAM) solution gives your business better control so you can monitor user access to critical systems. Configuration management tools also offer an automated way for FSPs to maintain records of system configurations, making it easier to track changes and ensure compliance with DORA requirements.

            Regulatory compliance plays a pivotal role in the success of organizations in the financial sector, which is why so many FSPs actively seek expert guidance and are keen to adopt AI-led automated tools. The key lies in selecting a DORA-compliant service provider who not only assists in meeting the initial compliance requirements but also empowers you with a comprehensive roadmap for resilience and the essential technology infrastructure to sustain and enhance it.

            To know more about our solution, click here.

            Author

            Rahul Rauniyar

            Rahul Rauniyar

            DORA Offer Lead for Capgemini and Workstream Lead Netherlands – Security, Risk and Compliance Management
            Specialized in strengthening digital security and ensuring IT regulatory compliance within the financial services industry.
            Marieke Van De Putte

            Marieke Van De Putte

            Global Domain Lead Cyber Compliance | SAP & Cyber | NL Service Line Lead Security & Compliance 
            Specialized in developing practical approaches to security, risk and compliance, and applying automation possibilities. Contributing our team’s expertise to digital transformation projects, like IT outsourcing and cloud migration.

              Five transformative trends in the digital workplace for 2024

              Alan Connolly, James McMahon, & Lukasz Ulaniuk
              22 Jan 2024

              Today’s workplace has the potential to be far more than a set of tools and technologies. It can be a philosophy, a lifestyle, a community, and a culture that fosters innovation, empowers employees, and truly puts people first.

              Developments in immersive technology, artificial intelligence (AI), predictive analytics, machine learning, and cloud have laid the foundations for this new era of work. Advancements in these technologies now provide all people the ability to transcend physical barriers for collaboration and engagement, be more innovative and creative in their daily work, and allow businesses to make better more accurate decisions backed by data.

              The driving force behind this was experience. The personal experience of each employee across key moments that matter within the workplace has become the yardstick for success. This shift in focus from productivity to performance, from physical boundaries to borderless connectivity, and from mundane routines to dynamic processes, all revolve around the idea of creating a personalized and enriching journey for every individual within the organization.

              If 2023 was the year people realized the power of new tools, then in 2024 the stage is set for unprecedented growth for continued technological advancement, augmented human intelligence, and embedded sustainable practices.

              It comes at a time when many of today’s employees are, to some degree, unsatisfied or unhappy with their experience at work. They want to be in the driving seat but their managers are often unaware of this: Capgemini research last year found 92% of leaders say their employees are happy at work, while only 30% of individual contributors and 65% of managers agree. The smartest organizations in 2024 will be those that successfully reimagine jobs and work environments around employees, putting well-being, skills, and culture at the core of business design.

              1. The workplace becomes more human-centric by design

              Over the next 12 months, the focus will continue to shift from productivity to performance. With many people now working remotely at least a few days a week, many leaders realize that getting the most out of employees is not a reflection of time spent at a desk, but by flexible approaches that allow people to add value in the way that works around their life.

              Personalized services, customized learning paths, and adaptive environments based on individual needs will become the norm, and the use of digital assistants such as Microsoft Copilot will increase, augmenting human capabilities in new ways. The broader shift from reactive support to proactive enablement is creating a people-centric approach that will change the way workplaces are designed and operate. Importantly, we expect this to extend to the frontline, where automation will increasingly handle repetitive tasks, freeing workers to focus on shaping outcomes rather than just producing outputs

              2. Immersive technology augments employee experience

              Immersive technology, and virtual reality in particular, has ridden the hype curve since Facebook rebranded to Meta in 2021. This year, however, we expect the potential of immersive technology to start maturing across industries ranging from medicine to manufacturing.

              For example, by using smartphones, tablets, or wearable devices such as the Meta Quest VR headset, factory employees could access a digital twin of the appliance that they are manufacturing, permitting practical training and diagnosis of faults without interrupting or otherwise negatively affecting the production process. Similar simulations can happen in almost any industry to help with onboarding and training with a host of benefits, whether that’s minimizing risks like in surgery or enhancing collaboration in the hybrid workplace.

              According to Capgemini research, less than one-third of employees (29%) are happy with the collaboration tools to which they have access to at work. To engage and attract a new generation of workers, organizations will therefore have to leverage the consumer devices launched last year to start testing and creating immersive environments for their teams. Case studies, such as Airbus’s application of digital twins in guiding new hires through complex processes showcase the potential of this approach.

              3. Time to deliver on the ‘social’ in ESG

              According to the International Labor Organization (ILO), one in four people do not feel valued at work. Yet research has consistently shown that high levels of diversity, equality, and inclusion (DEI) are closely associated with a variety of business-related benefits, including higher levels of productivity, stronger innovation, improved performance, and better talent retention.

              As the ambitious 2030 deadline set by the United Nations Sustainable Development Goals approaches, this year companies must not only foster cultures where employees can bring their whole selves to work and celebrate unique perspectives and experiences, they must also take greater account for their responsibility for driving positive social change. They can do this in many ways, but they’ll find that leveraging immersive and mixed-reality platforms will accelerate their efforts.

              4. Sustainability becomes more deeply embedded

              The workplace of the future is, and must be, a sustainable workplace, and in 2024, we expect to see greater efforts to embed green practices in the digital workplace. Again, this will require a proactive approach that combines skills programs such as Capgemini’s Virtual Sustainability Campus, renewable and circular energy management, and embedding sustainability components into modern endpoint management and Device-as-a-Service offerings. With over 50,000 companies facing new regulatory requirements to disclose the impact of their operations on nature as the EU’s Corporate Sustainability Reporting Directive comes into force, it’s likely that leading brands will need to go beyond reporting their impact to stand out from the crowd

              5. The impact of intelligent automation, AI, and data

              The marriage of AI, automation, and data sets the stage for continued advancements and ensures that the digital workplace remains at the forefront of innovation. AI, with its ability to analyze vast datasets and derive meaningful insights, empowers organizations to make informed decisions promptly. Automation streamlines processes, eliminating bottlenecks and expediting workflows, and the integration of data ensures that these processes are not only efficient but also adaptive, continuously learning and evolving to meet the dynamic demands of the digital landscape.

              The impact of all three will ultimately prove fundamental to accelerating growth, streamlining governance, and ensuring compliance long, long into the future.

              In 2024, experience is king

              As we navigate the complexities of the digital workplace in 2024 and beyond, one thread becomes clear: AI plus immersive experiences are the new power couple, and a focus on employee well-being, coupled with performance, will become the cornerstone of delivering exceptional employee and customer experiences.

              The future workplace is driven by automation, powered by intelligence, and focused on the moments that matter to employees. In essence, the digital workplace of 2024 is a fusion of technology and humanity, creating a thriving ecosystem where employees are empowered, ideas flourish, and innovation knows no boundaries.

              Driven by intelligent automation, AI, and data, the digital workplace will continue to be a hotbed of innovation and growth. It’s a world where employees are not just contributors, but key players in shaping their organization’s future, empowered by technology to bring their unique skills and ideas to the forefront.

              And, as we prioritize inclusivity and diversity in the workplace, we’re setting the stage for a richer, more dynamic environment. By celebrating unique perspectives and experiences, we’re fostering a culture where employees can truly be themselves, driving higher levels of productivity, creativity, and innovation.

              Today, the question leaders should be asking is not whether we embrace the digital workplace revolution, but how quickly can we do it?

              Are you looking to create a human-centric, experience driven workplace? Talk to us!

              Author

              Alan Connolly, Global Head – Employee Experience and Digital Workplace, Capgemini

              Alan Connolly

              Global Head of Portfolio – ESM, SIAM, and ServiceNow
              Alan is a visionary leader with a deep passion for collaborating with customers, partners, and industry experts to address complex challenges within the workplace and enterprise service management portfolio. With over 20 years of experience, he combines creativity and analytical prowess to craft comprehensive strategies that align with organizational goals and enhance productivity.
              James McMahon

              James McMahon

              Global Head of Employee Experience – Cloud Infrastructure Services
              Global Head of Employee Experience at Capgemini, James has over 20 years’ experience in the field of employee experience and digital workplace services.
              Lukasz Ulaniuk

              Lukasz Ulaniuk

              Lead, Employee Experience – Cloud Infrastructure Services.
              Lukasz leads Digital Workplace Offer Development at Capgemini’s Cloud Infrastructure Services. He manages development and introduction to the market strategy, advisory and transformative solutions for modern workplace that drive employee productivity and empowerment as well as support clients in achievement of sustainability and adoption targets. Lukasz brings 20 years of professional experience and passion in designing and introducing exceptional experiences to the customers across various industries.

                Redefining tech: #RabbitR1 and #AIpin challenge the smartphone norm – A paradigm shift in the making?

                Alex Bulat
                Jan 19, 2024

                Do we (I) want something other than a smartphone?

                This is the question that has been raised with introduction of new device like #RabbitR1 and The #AIpin before it. Do I want something that just does a fraction of the functions of my iPhone? Although these devices now only do a small subset of the functionality, they do intrigue me. It is a new way of interaction, new experience, maybe even just because it does less I’m considering it. Smartphones have been dominating our lives for over 2 decades now, is this the time to get rid of them and take back some control?

                All the above questions and thoughts have been circling my mind since I have seen the Launch of the R1 at CES. These to device are just the start but they are small but significant balloons that have been let up by the tech industry to test the waters. Are we ready for a change? Are we ready for less? Or do we just want the same but in a different jacket.

                What is your preference, something new or something old? Have you already preordered one of the devices?

                Stay curious 🧐

                Meet the author

                Alex Bulat

                Alex Bulat

                Group Technology VP
                Alex is Group Technology Director, focused on helping our customers transform and adopt to the new digital age, and integrate new and disruptive innovations into their business. He is focused on driving the expansion and delivery of digital transformation and helping companies to get a grasp on future technologies like IoT, AI, Big data and Blockchain. He also focuses on how new innovations, disruptive technologies, and new platforms like Uber, impact the current businesses.

                  How to set yourself up to redesign the car around the user
                  What steps should you take when designing a better mobility experience?

                  Mike Welsh
                  18 Jan 2024
                  capgemini-engineering

                  The old way of designing cars works for old car designs. But the car of the future will require some changes to existing methods, along with some entirely new approaches. Cars used to be designed around engineering possibilities, but thanks to digital technology, they can now be designed around the user experience. So, what will that take?

                  In the previous blog, we covered the key ingredients of the vehicle user experience. Here, we’ll discuss how to redesign the vehicle for that user experience.

                  Step 1: Plan new use cases and business models

                  Change how you think about the car. It’s no longer a machine to get people from A to B, it’s now an environment where people spend time and benefit from experiences.

                  The vehicle that rolls off of the production line can be thought of now as a Minimal Value Product – a product which can increase its value through software additions across its life cycle. For automotive companies, correctly implementing this business model is partly a financial engineering challenge – which will also require a change in mindset for both vendors and consumers.

                  Step 2: Build the in-car tech to enable these new use cases

                  The in-car software and hardware architecture to support these new services will fall into three categories:

                  • The software and processing power to run information and entertainment displays, as well as repurpose a glut of ‘big data’ into meaningful information. This will likely include processing data from onboard sensors, and from external devices.
                  • The communication technology to allow the vehicle to exchange information with external devices, as well as selecting the right protocols (Wi-Fi, cellular modems, etc.) to deliver this.
                  • An ecosystem that allows the car to safely access third-party apps, including processes for app certification.

                  Step 3: Verify

                  All of the above needs rigorous testing and verification. Mostly, this will involve running new services in a simulated vehicle environment to check they function as intended.

                  Some services may need road testing. But for ones that don’t touch vehicle controls, or risk causing distractions, it is usually fine to conduct ‘real-world testing’, by launching beta versions, gathering user feedback, and using this data to continually improve products.

                  Step 4: Create a software-driven culture to outpace the competition

                  The move to digital services is forcing traditional automotive companies to rethink how they build and launch services. The digital culture of rapidly iterating digital products must reconcile itself with the more traditional, measured and safety-conscious automotive approach.

                  Step 5: Evolve your supplier ecosystem

                  Carmakers will need to expand their list of suppliers. Gone are the days when a Tier 1 knew everyone and could handle everything. This brave new world will encompass specialist providers in telco, silicon, software development and XR, as well as emerging technologies, like the metaverse.

                  Author

                  Mike Welsh

                  Mike Welsh

                  Chief Technology Officer – Automotive Software & Electronics – Capgemini Engineering
                  Mike is responsible for defining and executing the technology strategy and roadmap across the Capgemini Engineering Automotive Portfolio. With a background in powertrain, cockpit electronics and E/E Architecture, his primary focus over the last decade has been supporting the industry shift to Software Defined Vehicles.

                    Ensuring quality and compliance
                    a digital approach to food safety standards

                    Michael Benko
                    18 Jan 2024
                    capgemini-engineering

                    According to data released by the World Health Organization (WHO) in 2022: “…an estimated 600 million – almost 1 in 10 people in the world – fall ill after eating contaminated food and 420,000 die every year, resulting in the loss of 33 million healthy life years (DALYs) …children under 5 years of age carry 40% of the foodborne disease burden, with 125,000 deaths every year.”

                    Food safety has always been paramount, today is no different. Ergo, in the ever-evolving landscape of the food and beverage industry, ensuring the quality of products is of paramount importance.

                    The global nature of the food supply chain, increased consumer awareness, and changing regulatory requirements make it essential for businesses to adopt innovative approaches to food safety standards.

                    One such approach that is gaining momentum is the use of digital technology. In this blog post, we’ll explore how a digital approach can revolutionize the way we manage and monitor food safety standards, ultimately benefiting both businesses and consumers.

                    The traditional challenges of food safety

                    Traditionally, food safety has been managed through a combination of manual record-keeping, periodic inspections, and reactive measures to address issues. While these methods have served the industry for many years, they come with several challenges:

                    • Human error: Manual processes are susceptible to human error, which can lead to data inaccuracies and compliance issues.
                    • Inefficiency: Paper-based record-keeping and manual inspections are time-consuming and labor-intensive, often leading to delayed responses to safety concerns.
                    • Limited traceability: Traditional methods make it difficult to trace the origins of food products, making it harder to identify and isolate contaminated batches.
                    • Regulatory compliance: Staying up to date with evolving food safety regulations can be a daunting task, especially when relying on manual processes.

                    The digital revolution in food safety

                    The adoption of digital technology has transformed how the food industry approaches safety standards. Here are some key aspects of this digital revolution:

                    • Real-time monitoring: Digital systems allow for real-time monitoring of critical control points in the production process. Sensors, connected devices, and data analytics enable the immediate detection of any deviations from safety standards.
                    • Data-driven insights: Digital platforms can collect and analyze vast amounts of data, providing businesses with valuable insights into their operations. These insights can help identify trends, predict potential issues, and make informed decisions.
                    • Enhanced traceability: Blockchain and other technologies provide end-to-end traceability of food products. Consumers can access information about a product’s journey from farm to table, enhancing transparency and trust.
                    • Automation: Automation reduces the risk of human error by streamlining processes. Quality control checks, temperature monitoring, and sanitation routines can be automated, ensuring consistency and compliance.
                    • Regulatory compliance management: Digital platforms can be equipped with compliance tracking and reporting features, making it easier for businesses to stay in line with the latest regulations. This proactive approach helps avoid costly penalties and recalls.

                    Benefits of a digital approach

                    The shift toward a digital approach to food safety standards offers several significant benefits:

                    • Improved product quality: Real-time monitoring and data analysis enable early identification of issues, allowing for immediate corrective actions. This, in turn, leads to improved product quality and reduced waste.
                    • Enhanced consumer confidence: With increased transparency and traceability, consumers can make more informed choices about the products they buy, ultimately building trust in brands and the industry.
                    • Cost savings: Automation and efficiency improvements can lead to long term cost savings. Fewer recalls, reduced product losses, and streamlined operations all contribute to a healthier bottom line.
                    • Adaptability: Digital solutions are scalable and adaptable to the food industry’s evolving needs. They can accommodate changing regulations, emerging threats, and growing consumer demands.

                    Conclusion: towards safer, better food production

                    The digital revolution in food safety standards is not merely a trend; it’s a necessity.

                    Businesses that embrace digital technology to enhance safety and quality standards will not only thrive in an increasingly competitive market but also contribute to the overall well-being of consumers. This transformation is not about replacing human expertise but augmenting it with tools that make food production safer, more efficient, and more transparent. By doing so, the industry can meet the challenges of today and tomorrow while maintaining consumer trust.

                    Author

                    Michael Benko

                    Michael Benko

                    IT consultant and process engineer
                    Michael Benko is an IT consultant and process engineer with broad cross functional expertise. His industry experience includes food & beverage and pharmaceutical manufacturing, along with software pre-sales, implementation consulting and numerous enterprise level software implementations. Michael combines his expertise in Product Lifecycle Management with new product development best practices to solve a range of businesses’ most pressing problems.

                      Customer-Centric Product Development

                      Learn about Customer-Centric Product Development and Digital Continuity, and how these can drive success in the food and beverage (F&B) industry.

                      A revolution in food packaging

                      Food packaging is an integral part of the modern food industry, ensuring the safety, freshness, and quality of products as they make their way from the manufacturer to the consumer’s table.