Skip to Content

We secure a world powered by cloud, data, and identity

Jérôme Desbonnet
11 Jul 2023

Soft launch during RSA Conference at Thales Cloud Security booth of our joint data protection offer.

James Langley , Serge Dujardin , Sreekumar Vadakkepat , Marieke van de Putte , Geert van der Linden , Michael Wasielewski Jr. , Anne Saunders

What telcos can learn from consumer experiences

Capgemini
Capgemini
8 May 2023

A point of view on what telcos can learn from consumer experiences and how to operationalize design as a strategic differentiator

Customer expectations are being set by consumer-grade experiences by the likes of AirBnB, Uber, and Doordash.  Likewise, telco business customers bring these expectations to their work and is compounded by Hyperscalers investing in frictionless experiences. These software-based, service-driven companies have built their very existence around customer experience.

Telcos are not alone in the struggle to operationalize the design of customer experience in part because “design” is not well understood amongst C-suite stakeholders. Design is frequently simplified as making a digital UI more elegant often coming late in the go-to-market journey, rather than putting the core needs of the customers front and center in the strategic planning process. To meet today’s customer expectations requires “design” as a strategic enabler throughout the customer relationship. From onboarding to support, to the products and services offered, every interaction across the digital and retail experience can and should be viewed through the lens of design.

There are high barriers for Telcos including ongoing infrastructure investments, technical debt, and high support costs. However, working with telcos across the world, we have seen few ways telco organizations can operationalize design and see greater impact to their business.

Considerations for Telco B2C and B2B Organizations

  1. Enable a strategic “design” function in the organization (design can be used to describe product and customer experience organizations)
    • Partner with stakeholders to establish a shared and unified definition of “design” across the organization that minimizes ambiguity and articulates how it drives business outcomes.
    • Build believers in your executive stakeholders by bringing them into the process. A former Verizon design executive brought their CFO close to a program which humanized net add and ARPU metrics, and enhanced collaboration in budget planning.Close the gap between corporate and creative culture by establishing experience principles. In this podcast, Verizon discusses how they established these standards across the organization.
    • Develop a DesignOps capability internally and/or in partnership with external partners to extend the reach of your team and maximize the impact. Listen to this episode of frog’s Design Mind frogcast to hear how AT&T has delivered DesignOps at Scale.
  2. Integrate “design” into business strategy and product planning (i.e., design tools, methods, and frameworks). Report: How to Drive ROI in CX and Design
    • Leverage the wealth of institutional knowledge combined with bespoke market and customer research (qualitative and quantitative) to identify how to play and how to win.
    • Partner with the business with a customer-first mindset and methodology in CapEX planning and ongoing product development efforts.
    • Demystify the impact of design by modeling outcomes in business KPIs (Customer Acquisition, ARPU, retention, NPS, etc.) tied to program to secure funding and share success stories.
    • Place as much value on getting the product right (problem-solution fit) as with getting it to market quickly. Report: Sprinting Towards a Failed Product.
  3. Use Service Design in your organization to break down siloes and simplify the complex to realize better customer experience.
    • Align the purpose of the work to a clear and measurable problem. Is your telco business needing to diversify services so as not to be relegated to the connectivity pipe, or more acutely suffering low engagement or cost to deliver existing product and services?
    • Become intimate with the underlying constraints and opportunities in technology, process, people, and policy to bring together relevant stakeholders to deliver a competitive customer experience.
    • Prototype early and often to test with customers and socialize the results with key executives to secure commitment for next steps.
    • Consider hiring a leader with a Service Design degree or partnering with a reputable firm with service design capabilities. Report: Demystifying Service Design in the US.
  4. Position your design system as a unifying force across your organization, bridging upstream and downstream product teams. Report: How to Systematize a Design System for Success
    • Develop and govern Design Systems across various customer touchpoints including digital, physical product, packaging and self-install, and retail. Stc’s investment in a DLS for digital self-service experience improved brand reputation and service cost metrics.
    • Manage the Design System like a product (for building products) and ensure it represents the culture and brand it supports; consistency across customer touchpoints builds trust that you care about their experience.
    • Create design-to-code toolchains (Design Tokens) to enable consistency and product teams to focus their valuable time on growing and evolving the Design System.
    • Seek a business sponsor in each of the areas where a Design System can lower costs, increase speed and strengthen your brand across products and services.

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

Courtney Brown

VP, Business Development
Courtney is a VP of Business Development based in Austin, Texas. She works with frog’s interdisciplinary teams in North America to help early stage startups and Fortune 500 clients grow their business by reinventing the way customers experience their brand, product, and service

    AI is useless without context

    Robert-Engels
    Robert Engels
    May 8, 2023

    During my career in artificial intelligence I have been through the developing, improving, applying and fine-tuning of AI algorithms many, many times. At a specific point of time it become clear to me that the algorithms alone will never be able to solve your problem or use case other than in a lab-setting.

    The reason? Context. AI models put into work in the real world have no possibility to relate to all possibilities across all dimensions in a real-world setting.

    So I started to work on context for AI. First with explicit modeling of context using rules (the if-this-than-that kind of things). That did not work to well (too much work, I would say). So we aimed at describing the world and offering that as context. From the early 2000s I worked on Knowledge Graphs and their standards (and I still love them). They enabled modeling knowledge, but also flexibility by logical reasoning and inferencing, finding inconsistencies in our world and much more. But they are not the final or only answer either (as nothing is, I guess). So when we started to work with deep learning we thought part of the quest was solved. But it did not really work either. In real-world scenarios the AI models we made failed hopelessly at unexpected and unwanted moments. Why? They failed on context. Again.

    And so came ChatGPT. Featuring a model which we had seen (failing) before, becoming racist after only a few hours in the real-world. But now with a wrapper that actually made it work…. much better! And more reliable. Still not perfect, but hey, given the previous attempts: great improvements!

    And what was the trick, why did it work this time? The layer that was added by OpenAI was a genius strike: it added a context-layer, able to interpret what was happening, able to stop unwanted outcomes to a large extend and thus enabling the AI Model to work in the real-world.

    We are not there yet, also this is not enough. But all the great work that has been done last years, on the graph tech, on deep learning, on transformer models and, not in the least, this first actually working context-layer, make me very optimistic that we can look ahead with confidence and trust. Still a lot of work to do, but the basics for a great future with AI seem to fall in place.

    Next thing to add to the equation? Let´s rock and allow these models to use the context awareness in order to solve the parts that language models cannot do: the knowledge parts: factuality, causality, planning, maths, physics etc. First approaches popped up already, I cannot wait to see more integration of it all!

    Read this article on Medium.

    Meet the author

    Robert-Engels

    Robert Engels

    CTIO, Head of AI Futures Lab
    Robert is an innovation lead and a thought leader in several sectors and regions, and holds the position of Chief Technology Officer for Northern and Central Europe in our Insights & Data Global Business Line. Based in Norway, he is a known lecturer, public speaker, and panel moderator. Robert holds a PhD in artificial intelligence from the Technical University of Karlsruhe (KIT), Germany.

      Green quantum computing

      Capgemini
      8 May 2023

      The hunger for computing power is ever-increasing, as complex problems and vast amounts of data require faster and more accurate processing

      Quantum Computing has the potential to be revolutionary in many computation-heavy area’s: ranging from drug discovery to financial applications. The reason? Higher accuracy and faster computation times. However, one question is often neglected: at which cost? We’ve seen that supercomputers and data centres can consume an enormous amount of energy [1,2]. Will quantum computers be the next energy-thirsty technology, or are they instead the gateway to a green computing era?

      Quantum computing uses the most intriguing properties of quantum physics: entanglement, superposition, and interference. Quantum computers use these phenomena to do calculations in a completely different way than normal computers do. The result is an enormous speedup of the calculations, the ability to achieve higher accuracy levels, and solve problems that are intractable for the classical computer.

      These quantum phenomena take place at a very small scale: the scale of an electron. As such, one computer calculation would barely cost any energy. However, to observe these potent quantum phenomena, the system must be completely isolated. Temperatures must be cooled to near absolute zero (-273 degrees Celsius). This comes with a large energy bill.

      The energy consumption of a quantum computer scales fundamentally different from a classical computer. Classically, there is a linear scaling with problem size and complexity. For quantum computers, this may be very different. Insight into this new energy consumption of a quantum computer is essential for a green future of quantum computing.

      The Scaling of the Energy Consumption

      Currently, the power consumption of a quantum computer is about 15-25kW, due to the cryogenic refrigerator [3, 4, 5]. This is comparable to the energy consumption of about 25 households. Note that this power is not only consumed when a calculation is performed but is continuously consumed by the quantum computer. This leads to a large energy bill.

      There is hope for the future. When a classical computer becomes twice as large, it requires twice as much energy. In the near future, a quantum computer, by contrast, may barely increase its energy consumption when scaling up. This is because the cooling volume barely increases, and heat created by extra electronics is also not expected to be significant. The largest quantum computer today is 127 qubits and scaling to 1.000 or even 10.000 qubit is possible with similar energy consumption.

      In the far future, we envision quantum computers with millions of qubits, situated in large data centres. It would be naive to assume that this does not add any energy costs. Recent research shows that the energy costs will scale with the number of qubits and operations at a point in the future. This is mostly due to increased cooling costs.

      There is another very important factor that positions quantum computers as potential candidates for green computing. The idea is as follows: if you must run a supercomputer for a month to solve a specific problem and a quantum computer can do it within minutes – this drastically reduces the energy cost. An example of how energy costs would scale differently for Monte Carlo simulations is shown in figure 1.

      Figure 1: The Energy Consumption of a Quantum Computer scales very differently than that of classical computers. When high accuracy or complexity is required, the quantum computer may become the more “sustainable” candidate.

      Recent research shows a difference in energy consumption between quantum computers and classical computers of a factor of 10.000 (!) [4]. A clear quantum energy advantage, but for a toy problem, favouring the quantum computer. The question remains whether this is applicable to more generic problems.

      Recently, an energy estimate for a more generic problem was made, namely breaking the RSA encryption [6]. RSA is a very common encryption method for secure data transmission. The quantum computer is expected to have an energy consumption of 1000 times as little as a classical computer. It must be noted that this energy estimate was based on futuristic full-stack quantum computers, and still require major advances in quantum hardware.

      Interestingly, this estimation also showed the timeframe where a quantum computer might be slower but requires less energy [6]. This gives a great perspective for the future. Before implementing quantum computers due to their speedup, can we implement them for green computing?

      Green Computing for Financial Institutions

      At Capgemini, the Olive project researched the opportunity of using quantum computers for green computing in the financial industry. This is specifically applied to using quantum computers for pricing derivatives, based on a new algorithm that allows one to do this on a quantum computer [7,8]. (See more here)

      Green Computing is becoming increasingly important for financial institutions. Mischa Vos, Quantum Lead at Rabobank (one of the largest banks in The Netherlands), emphasises its importance for Rabobank:

      “At Rabobank, sustainability is an integral part of our corporate mission: “Growing a better world together. The focus is now on green coding and sustainable data centres. On top of that, Rabobank is investing in green computing technologies. Quantum Computers would be an interesting new candidate.”

      Financial institutions use an enormous amount of computational power to ensure security, price financial products and perform risk management. Based on the insight about the “quantum energy advantage”, quantum computing can reduce the carbon impact of these computations. Would this be interesting for Rabobank?

      “This has great potential for Rabobank. Running these calculations, especially when Artificial Intelligence is involved, has a negative impact on the carbon footprint of Rabobank. Rabobank is dedicated to reducing this. At the same time, as a financial institution, we still need to perform accurate risk analysis and provide security. If quantum computing would allow us to combine the two, this would be very interesting.”  

      There may be a timeframe when the quantum computer is slower, but more energy efficient than classical computers. Would Rabobank already be interested in quantum computers at this stage?

      There are certain batch-oriented calculations that Rabobank performs, and these would be ideal for this. For example, evaluating the risk portfolio of investments at a large scale, or certain fraud detection methods. There will definitely be opportunities where Rabobank can already use the slower, but more efficient quantum computers during this time frame.”

      A future scenario

      The current hardware limitations are the main bottleneck for practical quantum computing. However, it is important for financial institutions to be ready for implementing quantum computers when the time is right, especially when this can be important from a sustainability perspective.

      Phase 1. Research & Development

      The current hardware limitations are the main bottleneck. As such, firstly, the hardware challenges need to be overcome before it becomes feasible to run relevant calculations on quantum computers. The Quantum Energy Initiative points out it is important to already make conscious design choices during this phase to ensure an energy-efficient quantum computer [9,10]. This should not slow down technological progress but instead, prepare for long-term energy advances.

      Phase 2. Green Energy Advantage

      Due to slow quantum clock speeds, and intensive quantum error correction codes, the quantum computational advantage can take longer than the quantum energy advantage. As such, the first applications of quantum computers may be due to their energy efficiency. This will be dependent on the specific advances in quantum hardware.

      Phase 3. Overall Quantum Advantage

      Finally, both the quantum computational advantage and quantum energy advantage are achieved. Here, it is important to make conscious choices in the usage of quantum computers and avoid the Jevon paradox. See for example this blog on quantum for sustainability. On the other hand, this is also the phase where quantum computers can really make a difference in sustainability – making better simulations leading to better material design all the way to general climate crisis mitigation plans [11]. 

      Technology leaves an indelible mark on the environment. Capgemini is determined to play a leadership role in ensuring technology creates a sustainable future. Capgemini can help with implementing sustainable IT as the backbone of a company for a greener future.  It is important to consider the environmental footprint of emerging technologies. Capgemini’s Quantum Lab can help clients understand the future possibilities of quantum technologies and build their organization and strategy that will make the potential become a reality. With this project, more insight into the real environmental cost of quantum computers is acquired, as well as the opportunities that Quantum Computers can give for green computing.

      For more information on the results of Milou’s research, watch the webinar here

      References:

      [1] IEA, Data centres and data transmission networks, 2022. [Online]. Available: https://www .iea .org/reports/data-centres-and-data-transmission-networks .

      [2] A. S. Andrae and T. Edler, “On global electricity usage of communication technology: Trends to 2030,” Challenges, vol. 6, no. 1, pp. 117–157, 2015. .

      [3] F. Arute, K. Arya, R. Babbush, et al., “Quantum supremacy using a programmable superconducting processor,” Nature, vol. 574, no. 7779, pp. 505–510, 2019.

      [4] B. Villalonga, D. Lyakh, S. Boixo, et al., “Establishing the quantum supremacy frontier with a 281 pflop/s simulation,” Quantum Science and Technology, vol. 5, no. 3, p. 034 003, 2020.

      [5] Personal communication with Olaf Benningshof, Cryoengineer of QuTech, 2023.

      [6] M. Fellous-Asiani, J. H. Chai, Y. Thonnart, H. K. Ng, R. S. Whitney, and A. Auffèves, “Optimizing resource efficiencies for scalable full-stack quantum computers,” arXiv preprint arXiv:2209.05469, 2022.

      [7] P. Rebentrost, B. Gupt, and T. R. Bromley, “Quantum computational finance: Monte carlo pricing of financial derivatives,” Physical Review A, vol. 98, no. 2, p. 022 321, 2018.

      [8] N. Stamatopoulos, D. J. Egger, Y. Sun, et al., “Option pricing using quantum computers,” Quantum, vol. 4, p. 291, 2020.

      [9] A. Auffeves, “Quantum technologies need a quantum energy initiative,” PRX Quantum, 3(2), 020101., ISO 690, 2022.

      [10] quantum-energy-initiative.org [11] Berger, Casey, et al., “Quantum technologies for climate change: Preliminary assessment,” arXiv preprint arXiv:2107.05362, 2021.

      Milou van Nederveen

      Master Student
      She is a master’s student in Applied Physics at the TU Delft, and is passionate about quantum computing and its real-world impact. Milou firmly believes that considering the environmental impact of quantum computing is crucial, and this is why she decided to join Capgemini’s Quantum Lab for her internship. She worked closely with her Capgemini supervisor, Camille de Valk, to explore the complicated question about the energy consumption of (future) quantum computers. In this blog, Milou shares her insights and findings, giving us a glimpse into the future of quantum computing and its role in creating a more sustainable world.

      Nadine van Son

      Senior Consultant Strategy, Innovation and Transformation | Financial Services
      As a consultant in the field of financial services I am passionate about innovation and new technologies, which motivates me look beyond the current standards and status quo. I find inspiration in combining insights, trends and developments with their effect on society and how the business environment should navigate.vation on customer behaviour is a topic that inspires me specifically.

        Dark factories, bright future?

        Jacques Mezhrahid
        24 Apr 2023
        capgemini-engineering

        An automatic (or ‘dark’) factory can be defined as ‘a place where raw materials enter, and finished products leave with little or no human intervention’. One of the earliest descriptions of the automatic factory in fiction was Philip K. Dick’s 1955 short story ’Autofac’, a dystopian and darkly comic scenario in which entirely automated factories threaten to use up the planet’s resources, by continuing to produce things that people don’t need.

        The term ‘dark factory’ can be thought of as metaphorical, for example, the factory might not actually be completely dark – its machines may require some light, if equipped with optical sensors.

        Dark factories are a part of the global digital transformation and move to the Industrial Internet of Things (IIoT), which is being driven by increasingly capable robotics and automation, AI and 5G connectivity. In this article, we’ll discuss the benefits, challenges, and how companies can move forward with this concept.

        Pros and opportunities

        Dark factories offer a number of benefits.

        • First among them is increased efficiency and productivity. Dark factories are favourable on classic efficiency drivers such as production output, for example, offering 24/7 capacity beyond traditional shift hours – and they are unaffected by the human need for breaks, vacations, or sick days. And a secondary benefit is that dark factories do not need to be located near a labor pool – which means they can be set up in other areas, exploiting opportunities like cheaper land prices or more attractive surroundings.
        • This also makes them more sustainable. Dark factories can be designed to be more energy-efficient and environmentally friendly than traditional ones; an obvious example of this is that they can do away with lighting and central heating.
        • All of that means decreased operating costs, due to a reduction in non-added value tasks and staff numbers, a benefit which is especially prominent in high labor cost areas.
        • It also improves worker safety. Fewer workers present means reduced risk of accidents and injuries in the workplace, a significant challenge in hazardous environments. Moreover, repetitive and physical tasks can be monitored (and assisted) to avoid safety issues or future physical disablement.  
        • Finally all this can lead to improved quality as well as performance. Highly specialised machines monitored by a new generation of integrated industrial information systems work with the kind of efficiency that a human cannot match. They can also provide relevant recommendations to the operator, to avoid mistakes or support decisions (eg. to recycle the product or anticipate corrective actions).

        Cons and challenges

        There are, of course, some shortcomings.

        • Whether retrofitting an existing brownfield facility or building a greenfield one from scratch, the CAPEX required to create a dark factory is considerable – new infrastructure is required and existing infrastructure may require modification. As is obvious, there are a number of technological barriers to overcome also, for example – AI, ML, 5G, robotics and system integration. These questions should be addressed with a clear vision of the future industrial platform and/or footprint, in order to avoid any “techno push” (a risky approach in which new products and services are driven by new technology and not validated by existing market needs).
        • Additionally, dark factories will necessitate new training and staffing requirements.It’s clear that new specialist skills will be required in order to design, install, maintain and operate the systems that will run these plants.
        • Suitability, scalability and over-specialization form another issue. Humans are still better at many tasks, and not all processes can be automated (yet). It may be a long time before dark factories are suitable for certain types of manufacturing. For example, it’s more difficult to build generalized (as opposed to specialized) automated systems and processes. This may limit a manufacturer’s ability to quickly respond to changes in production requirements. Here, we require AI sophisticated enough for generalized problem-solving (without human aid). For example, the automation of quality control is a particular challenge.
        • Technological dependence is another issue that must be planned for. Cyber-driven industrial espionage is already a serious problem in conventional factories. The sheer connectivity of dark factories creates security vulnerabilities that could be exploited by malicious actors. This could result in data breaches, production disruptions, or worse. In addition, any non-malicious technical failures could result in major production delays without rapid human intervention.

        The new human structure of the Dark Factory

        How might humans fit in this new environment?

        Lean manufacturing taught us that we could cut out much of middle management and improve the efficiency of operations. A dark factory could cut the bureaucracy further. Broadly speaking, the dark factory means fewer people in total, but more added value per person.

        Consider the ’enhanced operator’ – which could be an XR-equipped human who makes periodic visits to the facility. Instead of a person with specialist skills on one part of an assembly line, this enhanced operator would be a generalist, with a very broad understanding of the factory’s E2E processes and systems.

        Headcount may reduce, but collaboration will still be key. First – collaboration between teams to understand systems, engineering, impacts on manufacturing, impacts on operations and how to handle complex situations. Second – collaboration between robots and humans, to perform complex tasks requiring both capabilities.  

        Darkening the factory: what now?

        Implementing a dark factory (either from scratch or by retrofitting an existing facility) will not be easy. And, the pace of transformation is sector dependent. For example, it is easier to completely automate simple and repetitive tasks, ones in which every step in the end-to-end process is understood, down to the movement and the millimeter. But not all kinds of manufacturing are quite so straightforward. As companies progress the concept, here are some steps to consider.

        A transformation roadmap and change management plan

        Identify the steps you need for your transformation roadmap. Is now the right time? Transitioning to (or constructing) a dark factory requires a significant investment of time, resources, and capital. It’s important to carefully evaluate the potential benefits and risks of this transition before making any decisions.

        Conduct a thorough analysis of the existing manufacturing processes to determine which ones can be automated and which cannot. Is it still worth it, in light of this?

        If so, you may need to work with a recognized specialist company to determine which technologies will be most effective for your specific manufacturing process. The transition could also be phased – for example, a partially automated factory could run a ’dark shift’ overnight, which could provide a test or proof of concept.

        And of course – build cyber security into the plan, not as an ‘afterthought’. The dark factory’s level of connectivity (and potential vulnerabilities that result) requires it.

        Consider the human implications

        How can we keep humans safe in this new (mostly) non-human environment? What safety measures are required – for example, can you create areas that are safe for people to traverse? And how must people behave in a space built primarily for robots, not humans? 

        Anticipate and prepare for workforce transformation: think about recruiting for the skills needed for tomorrow. What will be done about those who may lose their job to a robot – can they be retrained and retained?

        Consider future operations: flexibility and scalability

        As previously mentioned, people are more flexible than robots and machinery. As such, forward planning must consider how the infrastructure will flex and scale, in order to meet future market needs. Detailed monitoring and analytics can help here, identifying what systems can be optimized or replaced.

        Dark factories, bright future?

        The fragility of global supply chains has become increasingly apparent in recent years – Russia’s 2022 invasion of Ukraine, and the COVID-19 pandemic, in particular, have demonstrated the need to ‘onshore’ (bring back) manufacturing, so as not to be dependent on foreign sources of vital goods.

        But manufacturing was, of course, originally ‘offshored’ because it was cheaper to do the work abroad. Dark factories could be an equalising force – bringing down costs so goods can be produced back at home.

        It’s also important to consider that fully automated factories have been tried previously, with varying degrees of success. There are a few cautionary tales; IBM tried its own in the 1980s, but closed it because it wasn’t able to respond to changing market needs. Apple also built such a plant in the 1980s, but closed it in the early 90s – likely because the plant was unable to deal with increasingly smaller components. More recently, Tesla walked back some of the automation at its Fremont CA facility, when machines failed to meet its ambitious manufacturing targets. This shows us the importance of flexibility and forward planning.

        That said, successful dark factories do exist today. In perhaps the best example, robotics manufacturer, FANUC (Fuji Automatic NUmerical Control), operates a lights out facility in Japan. Here, complex robots assemble other complex robots, with zero human involvement in the manufacturing process.

        As the previous examples demonstrate, success with a dark factory can be difficult – but is possible. Dark factories offer transformative benefits in terms of cost efficiency, sustainability, safety, and supply chain resilience. They also offer a considerable competitive advantage to those who ‘get there first’, who get it right and, returning to Philip K Dick’s Autofac, keep control in human hands.

        Meet our expert

        Jacques Mezhrahid

        VP & CTO Industrial Information System at Capgemini Engineering
        Jacques supports clients in IndustryX.0 transformation. Analyzing the impact of new technologies for next wave of such transformation and helping client to answer the business, societal and human challenges are also in his field of interest

          The future of talent management

          Sylvia Preuschl
          5 May 2023
          capgemini-invent

          How to unlock workforce agility with AI-based Talent Marketplaces

          Digitalization, automation, augmentation, robotics, advanced analytics – we are all part of the fourth industrial revolution as it introduces new ways of working and challenges current business models. The pace of technological and digital advancement has accelerated significantly during the last couple of years and continues to change the nature of work considerably. Accordingly, the Organization for Economic Co-operation and Development (OECD) reports that more than one billion jobs will be transformed by technology over the next 10 years.[1] Already today, we observe that new jobs with shifting skill sets are emerging, particularly in the field of data analytics, cybersecurity, or cloud computing, while others are disappearing (e.g., in administration).

          However, as specified by Capgemini’s Research Institute study The fluid workforce revolution, in many companies, the current workforce lacks the critical skills necessary to reach strategic goals. More precisely, in this research, 65% of executives agree that the gap between the skills their organization requires and the ones that people possess is widening. On top of that, with the labor market fully disrupted by demographic changes and talent shortage, companies struggle to recruit the right talents with the right skills.

          Do you agree? If so, how do you ensure that your workforce is future-ready to meet business demands?

          Internal mobility helps organizations to re- and upskill, redeploy, and retain talents

          The tense situation on the competitive employment market drives organizations to rethink their talent strategy. Consequently, many companies are beginning to recognize the importance of internal mobility, since it offers more advantages than just filling existing gaps.

          On the one hand, internal mobility enables organizations to become more agile and efficient in developing and redeploying the current workforce by means of re- and upskilling and lateral or vertical moves. On the other hand, employees get the chance to actively drive their professional development, leading to increased motivation and higher retention rates. As confirmed by our latest research The People Experience Advantage, for 65% of employees, learning and skill development is the most important aspect of their work. Correspondingly, companies need to create a culture where talents can grow skills and follow individual career aspirations.

          As part of an agile response to business disruptions, talent mobility requires a mindset shift. Instead of only seeking college education degrees and former job experience, it expects organizations to focus on a candidate’s relevant skills. Thus, the basis for a successful talent mobility strategy constitutes transparency of available skills and future skill needs. But many companies encounter difficulties when they attempt to identify, assess, and manage skills in an agile and adaptable approach.

          Do you have a strategy to efficiently manage and develop your internal resources?

          Talent Marketplaces create visibility into available talents and possible development opportunities

          This is where Talent Marketplaces come into play. In simple terms, a Talent Marketplace can be defined as a powerful platform that uses AI to dynamically align employees’ skills with new career and development opportunities. By analyzing the current and potential workforce, Talent Marketplaces improve data-driven decision-making and enable organizations to better understand themselves. In fact, these platforms deliver real-time insights on which skills are available and which are missing but needed to meet business priorities.   

          Figure 1: Overview of the functionalities and benefits a Talent Marketplace platform can offer

          As a first step, every employee creates a personal profile on this technology-supported platform, where they can both self-assess current skills and define career goals. Based on AI, a person’s existing skills or adjacent skills can automatically be collected from input data, such as CVs, LinkedIn profiles, and HCM data. Depending on the analysis of personal abilities and interests, the tool then matches employees to promising jobs within the company, builds customized career plans, and suggests required learning and development measures that will help them reach their defined goals. Here’s how Josh Bersin’s describes this recent development:

          “In many ways, these are the “new talent management platforms” of the future, because they connect employees to learning, mentors, developmental assignments, and jobs. And unlike the old “pre-hire to retire” systems that tried to do this with competency models (Cornerstone, Saba, etc.), these are highly dynamic systems that can infer and import new skills, content, and assessments by design.”

          Source: Bersin, J. (2023), HR Technology 2023: What’s hot? What’s not?

          Put this way, it is not hard to see the benefit of these dynamic systems. Once successfully implemented, employees gain new experiences as they move internally while organizations get to retain valuable knowledge.

          Select the best fitting Talent Marketplace provider that meets an organization’s individual requirements

          Given the potential of these platforms, a series of vendors now offer amazing new solutions on the market.[2] A Capgemini Invent internal study compares the leading providers on the market (e.g., Gloat, Eightfold.ai, HR Forecast, 365Talents and ODEM). The study evaluates the functional strength of different Talent Marketplaces and shows that features vary amongst providers. Therefore, organizations must choose a platform that meets their individual demands (e.g., in terms of needed functionalities, pricing, and cultural fit).

          Sound interesting? We will present a concrete use case in our next article, Talent Marketplaces: Train vs. Hire – The Cybersecurity Reskilling Solution.

          Until then, stay curious!

          At Capgemini Invent, we believe that Talent Marketplaces can be the right AI-based solution for companies seeking to manage talents more effectively, create an augmented workforce in an ever-changing environment, and gain competitive advantages in the “war for talent.”

          Let’s get in touch and discuss how we can help you to Reinvent Your Workforce by turning today’s talent and skill management challenges into great opportunities.


          [1] Zahidi, S. (2020). We need a global reskilling revolution – here’s why

          [2] Bersin, J. (2023). HR Technology 2023: What’s hot? What’s not?

          Contact our experts

          Sylvia Preuschl

          Vice President and Head of Workforce Transformation Germany, Capgemini Invent

          Nele Kammann

          Senior Manager, Workforce Transformation, Capgemini Invent

          Ines Lampen

          Consultant, Workforce Transformation, Capgemini Invent

            Stay informed

            Subscribe to get notified about the latest articles and reports from our experts at Capgemini Invent

            The 2 focus points to become a front-running sustainability transition financier

            Diederick Levi
            02 May 2023

            Sustainability is now one of the primary focus points of the financial sector. This is not without reason. By directing capital flows, the financial sector is the bloodline of sustainable initiatives. This, however, comes with a challenge. A lot more information is required to enable finance and risk decisions within the loan and coverage granting process.

            Instead of having a snapshot of a client, banks and insurers suddenly need to track how a client is influencing the environment, and how the world is influencing the client. Is money well-spent? How do we decide which initiatives make the largest impact per euro?

            The essence to answer these new questions is data. Data allows to steer on sustainable targets and populate sustainability reports with the right information. This is probably common knowledge. Yet, when diving one level deeper it becomes clear that it is not as clear-cut as it seems. Therefore, in this article I would like to focus on two big issues and best practices in addressing those issues.

            Regulatory requirements on ESG are overwhelming, complex and sometimes conflicting
            From a regulatory perspective, one needs to combine multiple reports, such as the ECB guide expectations, EBA LOM ESG or the Annual Report. Yet the necessary data to fulfill these regulatory requirements are all a bit different, resulting in a very large number of data point requirements.

            For example, as the EBA LOM guidelines deep dive into sector level, one can add up with more than 200 data fields, just for one report. It is simply infeasible to ask a barrage of questions on ESG for all your clients.

            This leads to two conclusions:
            1. Group the questions between reports in a smart way, so there is no double ask. This should be goal oriented, whereby one can continuously ask the question “why do we need to report this data?”. If the goals align between two similar datapoints, one can be of lower importance or derived.
            2. Discover alternative ways to collect client data, the main source of information for sustainability reports. For example, a lot can be found in – and digitally retrieved from- annual reports, as more clients will need to report on ESG with the introduction of CSRD in Europe.  

            Existing risk frameworks are not ready for servicing a sustainable future
            A prerequisite for becoming a financial institution that drives change is a strong risk framework to base its lending on. Such a framework is no longer only focused on financial returns, but now also on the sustainable impact clients can make.

            Often, such an extended framework, which is often risk driven, does not exist yet. This challenge is especially visible when potential clients are innovating in the sustainability realm, but do not yet have the track record to prove their financial feasibility. In these cases, rigid, standardized and financially focused loan or insurance issuance process make it practically impossible for a willing employee to give out the loan – great business opportunity or not.

            Financial institutions need to speed up, and issue services to these kinds of innovators, yet cannot do so right away. Not without upsetting their risk frameworks. Yet the implementation timeline is now.   

            The fast lane towards implementing a decent sustainability risk framework
            This is not an easy task. Currently there is no best practice yet on steering on sustainability risks, and if initial frameworks are made at all, they are made painstakingly slow. Comparing it to driving, one is navigating in the dark, whilst is going 40 on the highway.

            Using data from the above-mentioned regulatory teams is a good first start. This means however that often information and knowledge captured in the reporting engine, will have to be transferred towards other departments. Unlocking and sharing this data is often a sizable effort. Using such data already allows for better sustainability-based client assessments compared to the traditional risk frameworks.

            Another strong approach is to make step by step changes towards a sustainable banking environment. For example, with a loan or insurance granting perspective:
            1. Provide an additional discount in your pricing or lower the acceptance bar for clients which are undeniably sustainable
            2. Identify key risks via a questionnaire (which is useable as data!) and integrate these in first line processes
            3. Integrate different sustainability risks into your credit models. In our experience with large Dutch and British banks; it is only when a wider variety of data is available, and when risk framework targets are set, that the step can be sensibly made towards credit modelling.

            Whether it is regulations or risk frameworks, retrieving new data remains the key challenge to overcome. As shown above, the subsequent challenge is the usage. If a financial institution can keep the oversight of its goals for sustainability data, and therefore being able to combine datapoints for its specific goals– for example efficient sustainability reporting or creating a sustainability risk framework – makes the difference between becoming a best-in-class transition financier, and a traditional financer which will be forever struggling with the new world sustainability requirements. In order to be a front-runner, now is the time to set the strong data foundation.

            At Capgemini Invent we are experienced in these change trajectories, with specialists ranging from data scientists to environmental experts. Do you want to be a leader in the financial sector? Do not hesitate to contact us.

            Author

            Diederick Levi

            Manager Sustainability
            Diederick Levi is part of Capgemini’s Invent Financial Services team. He focuses on accelerating the sustainability efforts of clients within the financial sector. Based in the Netherlands, Levi has worked with all major Dutch banks over the past years.

              Near-tech
              Near future, not far-fetched

              Brett Bonthron
              28 Apr 2023

              Capgemini has worked with high tech leaders for over 50 years. We understand the role of high tech – quite simply, it’s the engine that powers the highest levels of innovation. It’s the type of world-changing technology that transforms businesses, entire markets, and even human history. For example, when invented, the steam engine was absolutely high tech. Flip phones? High tech. When these innovations are early and have yet to cross the chasm to mass adoption, we sense the advance far away. The media starts buzzing with predictions of life-altering experiences and sudden changes in how we live, work, and play. Businesses begin to both worry and get excited. We call technologies in this critical, most exciting phase ”near-technology” or “near-tech.” This stage comes with unique challenges, where even a few days’ delay can be the difference between a market leader and a historical footnote.  

              Near-tech describes the kinds of technology that exist not in research labs but just within reach. It represents tangible possibilities – technology that can, with the right expertise and capabilities, enable real opportunities. 

              The extraordinary and the everyday 

              These advancements ride in on massive waves of disruption, completely changing our global perspectives and human capabilities. The tension between extraordinary technology and everyday life drives the development of new business models and innovations. Right now, we are entering a remarkable time. Immense technological waves are cresting the horizon – generative AI, truly human robotics, individualized gene therapies, new chip manufacturing and lithography capabilities – changing the world and devastating our everyday. But living in the tension between the extraordinary and the every day isn’t new to Capgemini – it is our legacy. 

              Outrageous yet logical 

              The greatest innovations are born out of big bets by entrepreneurs and companies willing to challenge the core assumptions surrounding us. Software must run on-premises… enter SaaS. It’s only a phone… enter the Smart Phone. The common characteristic of transformative technologies is that they first fundamentally disrupt our mindset, then disrupt our infrastructure, manufacturing, supply chains, business models, and security. They may seem like outrageous ideas at first, but eventually, something tips and the disruption becomes normalized: This is the future. And the wave begins. We believe deeply that these innovations are outrageous and, at the same time, logical, and we help bring them to the world. It is our mindset of possibility that makes us different.

              We are builders 

              Capgemini High Tech recognizes that success is embracing and exploiting near-tech. It’s about bringing together talent and technology to help organizations reach near-tech faster. However demanding or specific the challenge might be, an expert can help solve it. We proudly act as a comprehensive partner for High Tech clients looking to leverage near-tech to transform their business. But what makes us unique is that we don’t just define a company’s future but also help them build it. 

              Making connections 

              Perhaps the most essential tool for any business seeking new opportunities through high tech is connection – connections between knowledge, capability, and technologies. By drawing on broad networks of deep expertise, companies can use high tech to enter industries and markets that were otherwise unobtainable until now. We enable our clients to connect with the right semiconductor manufacturing partner, the right business strategy, the right design and UX partner, the right production and shipping plan, and the right data and software security solution. We bring the connections to make near-tech real.

              Capgemini High Tech serves the tangible possibilities that are just within reach – decisions and actions that matter now. Whether through connections, living in the gap between the extraordinary and everyday, building real solutions, or embracing the outrageous, we are the partner for near-tech.

              Let’s innovate the near technology of your industry together. 

              For questions, reach me here!

              About the author

              Brett Bonthron

              Executive Vice President and Global High-tech Industry Leader
              Brett has over 35 years of experience in high-tech, across technical systems design, management consulting, start-ups, and leadership roles in software. He has managed many waves of technology disruption from client-server computing to re-engineering, and web 1.0 and 2.0 through to SaaS and the cloud. He is currently focusing on defining sectors such as software, computer hardware, hyper-scalers/platforms, and semiconductors. He has been an Adjunct Faculty member at the University of San Francisco for 18 years teaching Entrepreneurship at Master’s level and is an avid basketball coach.

                Winning the war on criminal shell companies

                Manish Chopra
                Manish Chopra
                28 April 2023

                Cassandra began working in a Toronto massage parlor as a teenager. She spent the next ten years in fear, kept in line by violence. A recent analysis uncovered 700 illicit parlors in Canada linked to transnational crime syndicates. There is strong evidence these criminal organizations used shell companies to launder their human-trafficking profits – dragging respectable financial institutions down into a world they would not have engaged with, had they known who they were dealing with.

                The problem of organized criminals involving financial institutions in their activities spans the globe, encompasses various types of financial crime, and has real-world effects on governments and individual victims. Fortunately, new technologies are giving organizations the tools they need to win the war on criminal shell companies

                Hiding money in real estate
                There are so many examples of abusive shell corporations that it’s difficult to choose just a few. What follows should give a sense of the range of organized criminal activity involving financial institutions.

                In the UK, some £4.2 billion worth of properties was bought by politicians and public officials with suspicious wealth. Not only does that give criminals a place to hide their illegally acquired assets, but it also drives up property prices, and puts tenants and future buyers in tenuous situations.

                Another report identified 766 corporate vehicles alleged to have been involved in laundering approximately £80 billion. Nearly half of the companies involved were based out of just eight addresses – which would have raised suspicion, if anyone had noticed.

                Money laundering
                In January 2017, the UK’s Financial Conduct Authority (FCA) and the New York Department of Financial Services (DFS) fined a European bank for failure to identify, prevent and report $10bn of Russian money laundering.

                The DFS commented: “The selling counterparty was typically registered in an offshore territory… and none of the trades demonstrated any legitimate economic rationale.” In addition, “The bank’s Know Your Customer (KYC) processes were weak, functioning merely as a checklist… Virtually all of the KYC files for the companies involved in the scheme were insufficient.” 

                Earlier that decade, some 5,140 companies and 732 banks in 96 countries were involved in the immense so-called “Russian laundromat,” in which 21 fictitious companies (most registered at the Companies House in London), laundered somewhere between $20 and 80 billion out of Russia.

                Sanctions evasion
                The US government has recently issued a warning to companies to be vigilant for Russia-related sanctions evasion, with regulatory expectations that businesses inside and outside the country should maintain effective compliance programs to minimize the risk of evasion. The UK government claims that Russian nationals have taken advantage of weak AML to launder war profits stolen from Ukraine.

                Human trafficking
                Cassandra’s case was far from isolated. When the data on suspicious massage parlors was cross checked with other databases, the full international scale was revealed. A spokesperson for Thomson Reuters Special Services commented, “These are not just individual massage parlors trafficking women but are globally-connected enterprises like a cartel.”

                Human trafficking is often transnational by its nature – victims are isolated far from support, in countries where they don’t know the laws or even speak the language. In Europe, over 900 potential victims were found in just one investigation last year. Another 200 victims of a Chinese “conveyer belt of sexual exploitation” were rescued in Belgium and Spain this February.

                Around the world, human trafficking and money laundering are linked. ACAMS Today reports on a White House fact sheet stating that, “approximately $150 billion in illicit proceeds are generated each year by these criminals globally; monies that will subsequently be laundered through our legitimate financial systems.”

                Red Flags
                Many of these cases share common themes:

                • weak KYC processes, where the checkbox approach was used,
                • the use shell companies which appeared to have no employees and/or apparent business activity
                • company formation services in offshore locations,
                • nominee directors and shareholders,
                • common ownership and addresses,
                • the country of operations, the registered office and where the payments flow is completely different and unconnected,
                • the countries where the funds end up or flowed through often lacked effective AML regimes,
                • involvement of/to politically exposed persons directly or behind the shell companies,
                • the volume and value fund transferred over 12 to 36 months so substantial that it did not make economic sense,
                • there were payments to seemingly unrelated business and individuals,
                •  accounts used as flow-through and the purpose of the wire payments is inconsistent with the stated businesses of the send and receiver – e.g., fees, commissions, and other information.

                We now have the tools to connect the dots – to redefine due diligence, go beyond a checklist and use data to form a clear picture. It’s possible for financial institutions to integrate their data with external data, including from corporate registries, adverse media and law enforcement agencies. A 360° view of the client and Perpetual Know Your Customer (pKYC) technology can help banks and financial institutions form a fuller picture of their clients over time, and react in real time to suspicious activity.

                Cassandra made it out of the parlors and went on to found an organization that supports women and girls in her situation. Is your institution doing its part?

                Author

                Manish Chopra

                Manish Chopra

                Global Head, Risk and Financial Crime Compliance
                Manish is the EVP and Global Head for Risk and Financial Crime Compliance for the Financial Services Business at Capgemini. A thought leader and business advisor, he partners with CXOs of financial services and Fintech/payments organizations to drive transformation in risk, regulatory and financial crime compliance.
                Karim-A-Rajwani

                Karim A. Rajwani

                Senior Advisory Consultant, Regulatory and Compliance

                  Quantum computing: The hype is real—how to get going?

                  Capgemini
                  27 Apr 2023

                  We are witnessing remarkable advancements in quantum computing, regarding the hardware but also its theory and usage.

                  Now is the age of exploring: How for example will quantum machine learning differ from the classical, will it be beneficial or malicious for cyber security? Together with Fraunhofer and the German Federal Office for Information Security (BSI), we explored that unsettled question and found something sensible to do today. There are two effective ways in which organizations can start preparing for the quantum revolution.

                  The progress in quantum computing is accelerating

                  The first quantum computers were introduced 25 years ago (2 and 3 qubits), the first commercially available annealing systems are now 10 years old. During the last 5 years, we have seen bigger steps forward, for example systems with more than twenty qubits. Recent developments include the Osprey chip with 433 qubits by IBM, first results of quantum error correction by Google, as well as important results in interconnecting quantum chips announced by the MIT.

                  From hype to realistic expectations

                  Where some see steady progress and concrete steps forward, others remain skeptical and point out missing results or unkept promises—the most prominent of which is found in the field of the factorization into large prime numbers: There still is a complete lack of tangible results in breaking the RSA cryptosystem.

                  However, development in quantum computing has already passed various important milestones. Dismissing it as mere hype that will pass eventually now becomes increasingly difficult. In all likelihood, this discussion can soon be laid to rest, or at least refocused towards very specific quantum computing frontiers.

                  The domain of machine learning has a natural symbiosis with quantum computing. Especially from a theoretical perspective, research in this field is considered fairly advanced. Various research directions and study routes have been taken, and a multitude of results are available. While much research is done through the simulation of quantum computers, there are also various results of experiments run on actual, non-simulated quantum devices.

                  As both the interest and the potential of quantum machine learning is remarkably high, Capgemini and the Fraunhofer Institute for Intelligent Analysis and Information Systems IAIS, have delved deeply into this topic. On request of the German Federal Office for Information Security (BSI), we went as far as analyzing the potential use for, as well as against, cyber security. One of the major results of this collaboration is the report “Quantum Machine Learning in the Context of IT Security“, published by the BSI. Current developments indicate that there is trust into quantum machine learning as a research direction and it’s (perceived) future potential.

                  Laggards increasingly lack opportunities

                  The ever-growing availability of better and more efficient IT technologies and products is not always reasonable to implement and often difficult to mirror in an organization. Nevertheless, innovation means that a certain “technology inflation” constantly devalues existing solutions. Therefore, an important responsibility of every IT department is to keep up with this inflation by implementing upgrades and deploying new technologies.

                  Let us consider a company that still delays the adoption of cloud computing. While this may have been reasonable for some in the early days, the technology has matured. Over time, companies that have shied away from adoption have missed out on various cloud computing benefits while others took the chance to gain a competitive advantage. Even more, the longer the adoption was delayed or the slower it was conducted, the further the company has allowed itself to fall behind.

                  Time to jump on the quantum computing bandwagon?

                  Certainly, quantum technology is still too new, too unstable, and too limited today to adopt it in a productive environment right away. In that sense, a pressure to design and implement plans for incorporating quantum computing into the day-to-day business does not exist today.

                  However, is that the whole story? Let us consider two important pre-implementation aspects: The first of these is to ensure everyone’s attention for the topic: For an eventual adoption, a widespread appreciation for what might be gained is crucial to get people on board. Without it, there is a high risk of failing­—after all, every new technology comes with various challenges and affords some dedication. But developing the motivation to adopt something new and tackle the challenges takes time. So, it’s best to start early with building awareness and basic understanding of the benefits throughout all levels and (IT) departments.

                  The second aspect is even more difficult to achieve: experience. This translates to know-how, participation, and practice within the organization to get prepared for the adoption of technologies once they are ready for productive deployment. In the case of quantum computing, gaining experience is harder to achieve than with other recent innovations: In contrast for example to cloud computing—which constitutes a different way of doing the same thing, and thus allows companies to get used to them slowly—quantum technologies represent a fundamentally new way of computation, as well as a completely new approach of solving problems and answering questions.

                  The key to the coming quantum revolution is a quantum of agility

                  Bearing in mind the scale of both pre-implementation aspects and of the uncertainty of when exactly quantum is going to deliver advantage in the real world, organizations need to start getting ready now. On a technical level, and in the realm of security, the solution for the threat of quantum cryptanalysis is deployment of post-quantum cryptography. However, on an organizational level, the solution is crypto agility : having done the necessary homework to be able to adopt quickly to the changes, whenever they come. Applying the same concept, quantum agility represents having the means to adapt quickly to the fundamental transformations that will come with quantum computing.

                  Thus, building awareness and changing minds now will have a considerable pay-off in the future. But how can organizations best initiate this shift in mindset towards quantum? Building awareness is a gradual process that can be promoted by a working group even with small investments. This core group might for example look out for possible use cases specific to the respective sector. Through various paths of internal communication, they can spread the information in the proper form and depth to all functions across the organization.

                  To build up knowledge and experience, the focus should not be on viable products, aiming to replace existing solutions within the company. Instead, it is a way of playing around with new possibilities, of venturing down paths that might not ever yield any tangible results but aiming to discover guard rails subjective to each corporation and examine fields where quantum computing might eventually be the way to substantial competitive advantages.

                  Frontrunners are gaining experience in every sector

                  For example, some financial institutions are already exploring the use of quantum computing for portfolio optimization and risk analysis, which will enable them to make better financial predictions in the future. Within the pharma sector, similar efforts are made, gauging the potential of new ways of drug discovery.

                  In the space of quantum cyber security, together with the Fraunhofer Institute for Intelligent Analysis and Information Systems IAIS, Capgemini has built a quantum demonstration: performing spam filtering on a quantum computer . While this might be the most overpriced—and under engineered—spam filter ever, it is a functioning proof of concept.

                  Justifying investment in quantum computing requires long-term thinking

                  The gap between companies in raising organizational awareness and gaining experience with the new technology is gradually growing. Laggards have a considerable risk of experiencing the coming quantum computing revolution as a steamroller, flattening everyone that finds themselves unprepared.

                  The risks and challenges associated with quantum technology certainly include the cost of adoption, the availability of expertise and knowledgeable talent, as well as the high potential of unsuccessful research approaches. However, the cost of doing nothing would be the highest. So, it’s best to start now.

                  We don’t know when exactly the quantum revolution will take place, but it’s obvious that IBM, Google and many more are betting on it—and in the Capgemini’s Quantum Lab, we are exploring the future as well.

                  Christian Knopf

                  Senior Manager Cyber Security
                  Christian Knopf is a cyber defence advisor and security architect at Capgemini and has a particular consulting focus on security strategy. Future innovations such as quantum algorithms are also in his field of interest, as are the recent successes of deep neural networks and their implications to the security of clients he works with.