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Harnessing data in ADM services to drive digital transformation

David McIntire
17 Feb 2023

How you can utilize your data to optimize your applications – and build the foundation for your future business

Digital transformation strategies that fail to recognize and apply the power that data holds can confine themselves to darkness – or at best – leave a lot of potential opportunities untapped. A recent Capgemini Research Institute (CRI) study entitled The data-powered enterprise: Why organizations must strengthen their data mastery highlights how companies can exploit data to drive real business value. The study found that companies that use data as a foundation for their operations – so called “Data Masters” – realize a significant performance advantage relative to their peers. This advantage spans customer engagement, revenue growth, operational efficiency, and cost savings – including 70% higher revenue per employee and 22% higher profitability overall.
 
However, becoming a Data Master is a journey – not a one-off project with an immediate ROI. A focus on leveraging data within application landscapes and the wider IT ecosystem enables companies to build the foundation for their evolutive journeys to becoming Data Masters.

Digital transformation that puts you in the driver’s seat – Harnessing the true potential of data-driven ADM

Building application development and maintenance (ADM) services that can fully utilize data is the first step in a company’s data modernization journey. The systems that are core to the delivery of data-enabled ADM contain a wealth of data and insights to accelerate the delivery of services. For example, the data residing in an ITSM tool can be extracted and analyzed to understand the nature of incidents that typically make up the bulk of an application maintenance team’s workload. This can help in identifying the highest-impact incidents to target automated resolution or enhance monitoring to drive down incident volumes.

Additionally, analyzing ticket data for recurring incidents targets root-cause analysis initiatives on the highest-impact problems. Extending this data analysis can also facilitate an AI-enabled capability to identify not just the root cause – but also the resolution that eliminates these incidents from even occurring.

The combination of automating the resolution of one batch of high-frequency incidents, and pre-emptively eliminating another batch of recurring incidents can bring a material reduction in application support effort.

The resources freed up through this process can then be applied to further the data modernization journey. Assessing the “as-is” and then modernizing data landscapes to eliminate data silos and redundancies enables the further exploitation of data. This newly standardized and sanitized data provides fresh insights into further transformation opportunities – particularly on the business side – that enhance the value of data to drive real change.

Capgemini’s ADMnext^Data – Bringing data to light to help you successfully navigate your digital transformation journey

Capgemini’s ADMnext^Data integrates all the assets and capabilities of our market-leading ADM services with our unique insights and data capabilities. These combined capabilities enable us to help guide you on your data modernization journey as part of a long-term relationship.

Firstly, our Enterprise Automation Fabric (EAF) offering specifically focuses on incorporating data into the heart of the ADM services we offer. EAF is the foundational automation suite that underpins the delivery of services across technology and business process operations. It works with your ITSM to extract incident data and identify the highest value transformation and automation initiatives. It also possesses the AIOps capabilities to automate the resolution of incidents and root-cause-analysis processes.

As support requirements fall and resources are freed thanks to EAF, Capgemini can then leverage assets such as our eAPMand Advantage-ROI tools to help you better understand your current maturity and implement the highest value transformation opportunities across your data estate. Value can be identified both from your modernization of data landscapes (for example, through migration to cloud or application rationalization), as well as business process transformation efforts.

Data-enabled digital transformation provides companies with an unprecedented opportunity to leverage data that separates themselves from their competition. Capgemini’s ADMnext^Data gives you the tools and expertise to guide on your data-enabled digital transformation journey.

To start your drive on the path to data-enabled digital transformation as a Data Master, drop me a line and visit us here to learn more.

Author

David McIntire

NA ADMnext Offer Lead and Solution Integrator
20+ year in Digital Consulting and experience in solutioning and selling new application services engagements. Support large-scale client opportunities through the development of solutions, transformation plans and presentation of our ADM capabilities.

    Will organizations need to change at a fundamental level?

    Susana Rincón
    17 Feb 2023

    Open ecosystems that bring startups into the mix offer huge potential advantages for all players. But will organizations need to change at a fundamental level to facilitate them?

    As part of our new series of blogs and vlogs focused on startups and their role as a catalyst for sustainable innovation, Capgemini Ventures is exploring the benefits of opening up the conversation. But, of course, there’s a lot to take onboard during this journey, and the first consideration is the introduction of new ways of working.

    For many organizations, there’s a notion that innovation from startups can be positioned at the periphery and not the heart of the bigger picture. In our opinion, however, this represents a gap in corporate strategy that needs to be plugged. Startups are no longer shiny objects but are now embedding themselves firmly into business value propositions.

    However, collaborating successfully with startups is not simply a change of mindset. Because collaboration through an open ecosystem speeds up time to market, enterprises may need to explore new approaches to their old challenges – rapidly adapting their organization, processes, systems, and even business models to respond with agility. But this isn’t necessarily as daunting as it sounds.

    Many organizations are beginning to realize the value in blurring their boundaries and including startups as part of their value proposition. Salesforce, for example, has augmented part of their business to embed startups. They’ve created AppExchange, where startups and independent software vendors (ISVs) can sell their services and grow. AppExchange is the leading enterprise cloud marketplace to help extend Salesforce – and customers can find proven apps and experts to quickly solve their business challenges.

    Dominique Gillies, Regional Vice-President, Strategic ISV Partnerships, EMEA, Salesforce, explains: “This is the fastest way to bring innovation to our customers and ensure their success in the long run.”

    Bringing startups into an effective ecosystem

    If the benefits of bringing startups into an effective ecosystem are clear, and other organizations are starting to reap the rewards, then the next question is: how? Because even though startups bring in disruptive innovations and exciting new technologies, they also bring in niche markets and high-risk associations. So, how do you overcome the challenges?

    Here are a few ways to help organizations create an open ecosystem that fosters powerful collaborations and partnerships with startups – while avoiding many of the associated growing pains:

    1.    Establish internal sponsorship and strategic buy-in

    The first thing you must do is work out your mission and define your unique objectives because it’s vital to have strategic clarity on the business need. 

    Next, it’s important to map out the stakeholders across leadership and the operational teams who will execute the strategic ambition – and take the newly defined objectives to them. These can not only be used to achieve the buy-in that’s required, but also act as a tool to learn more about the business and its needs. When working with a partner like Capgemini, you can then bring the objectives to us to help sharpen the proposition, too.

    It should all be part of an ongoing process that happens over time, as opposed to a one-off strategic play. This will help to foster strong collaborations that nurture long-term associations with startup ecosystems.

    2.    Scout the right startup

    New startups appear all the time and spotting the right one can be a challenge. You should therefore have a pre-defined and time-bound process that provides decision-making support to your business before any startup engagement begins.

    The methodology that’s employed should help your organization understand the strengths, synergies, and risks of engaging with a particular startup – and should ultimately be tied to your overarching strategic ambition.

    Once a suitable startup has been identified, and the due diligence carried out, you can then work with the startup closely to jointly develop a value proposition that will deliver the right outcomes before any actual work begins. This can be followed throughout the entire engagement to ensure everything remains on track.

    3.    Test the water

    Along with gathering anecdotal evidence and assessment outcomes, it’s important to run proof of concept (POC) testing to demonstrate feasibility, while continually interrogating the value proposition that’s been defined.

    This will enable you to outline the constraints and parameters that will ultimately help to validate how the startup’s solution infuses innovative solutions and compliments your market position and go-to markets. It’ll also provide an insight into whether you should invest in, or nurture, a strategic alliance.

    4.    Collaborate with agility and rigor

    Once all the preparation stages are complete, the process itself can begin. Here, it’s crucial to be clear on decision-making and timelines – and simplify them wherever possible.

    The most successful organizations also make sure to propose simplified contract templates that are specific to the startup and approved by the purchasing department. This provides the structure required for everyone to collaborate with agility, moving freely within the guidelines of expectation.

    It’s a good idea to establish a dedicated single point of contact: someone within your organization who can connect the startup with the relevant contact they need based on the project type.

    The business collaboration framework, defined by Capgemini Ventures, has industrialized this set of guidelines to collaborate with startups, which speeds up GTM and provides risk mitigation strategies to be implemented.

    5.    Accelerate to adopt at scale

    When the priorities are established, the business alignment model is defined, and the contracts are signed off, it’s time to scale and accelerate innovation across the global enterprise.

    You can mobilize and access the relevant resources required to make scaling easier. You can promote collaboration internally and externally to help the startup grow. And you can start working towards reaching the desired outcomes of the collaboration.

    However, you must remember to keep working at it in order to achieve success…

    Bridging the gap between business and technology

    In conclusion, it’s become clear that bilateral partnerships are no longer enough. Each partner must understand every other partner’s wider ecosystem. If we all do that successfully, then we’ll collectively benefit from some truly exciting and innovative ideas.

    As the bridge between business and technology, Capgemini is here to help our clients adopt startup solutions at scale. A startup is a partner unlike any other and our open framework is fine-tuned to your organizational requirements to enable you to adapt and build – it’s a strong foundation for creating a mutually beneficial relationship for both sides. For further insight into the other major considerations around bringing startups into an effective ecosystem, don’t forget to keep your eyes peeled for the forthcoming blogs and vlogs in this series. Meanwhile, you can catch up on the opening blog article of the series here.


    Susana Rincón

    Global Startup Manager at Capgemini Ventures
    I have 11 years of professional experience in innovation, open and social innovation, strategic alliances, business development with execution of business plans with focus on high social impact initiatives, transformational change and project management.

      Achieving Net-Zero aviation will need rapid innovation. Digital engineering can deliver it

      Capgemini
      Capgemini Engineering
      16 Feb 2023
      capgemini-engineering

      The aviation industry is committed to net zero emissions by 2050.

      To enable them to achieve this, aerospace manufacturers are adopting a range of approaches, including sustainable aviation fuels (SAFs), lighter airframes, optimising and automating flights, and whole new propulsion technologies based on hydrogen and batteries.

      These systems-level engineering challenges are consuming the top minds in aeronautics. And they want to get there fast. If one company were to create a breakthrough product, there would likely be a rush from airlines to acquire it. Being two years ahead of your competitors could mean capturing billions of Euros, while others fall behind by the same amount.

      Different companies are pursuing different approaches to reaching net zero, but all rely on rapid engineering innovation to redesign airframes, wings and engines.

      Doing that fast and well requires new digital technologies.

      The technologies of digital engineering

      Such technologies are coming of age. Digital product design tools, model-based system engineering (MBSE) and Product Lifecycle Management (PLM) systems, amongst others, are advancing. But the real benefit comes from joining them up, allowing engineering design to be done smoothly and collaboratively in the cloud.

      Cloud-based engineering lets engineers around the world collaborate on design. It offers digital continuity – so teams can see and work on the whole system in one continuous flow. It supports whole system-level simulations, so designers can experiment in silico and understand the impact on not just design but supply chains and in-use emissions. Global test data can be collected and shared to rapidly iterate designs.

      Embracing the digital technologies that underpin rapid digital engineering – and more importantly making them work in a joined-up way – will need focus and expertise.

      Companies cannot just buy PLM or design software off-the-shelf and slot it into their organisation. They need to make the right choices about the right combinations of products, from a vast and complicated landscape. Deployment into the organisation needs end-to-end changes to IT architecture, data management, and integration with cloud providers. It also needs customization and plugins across the entire system, in line with the organization’s engineering standards, lifecycle methodologies, and innovation plans, in order to ensure that continuity.

      But by getting this right – with the right setup and technology choices – aerospace companies can create a cloud-based engineering system that could make net zero innovation as much as ten times faster than current industry-standard approaches.

      Learn the lessons of disruption from the Electric Vehicle (EV) industry

      This joined-up approach to digital innovation is not without precedent. Tesla was able to create rapid and disruptive innovations by working in a cloud-based PLM, which was directly updated with vehicle sensor and test data. This provided real-time insight, and allowed them to use AI on that data to gather insights and build simulations. It could rapidly experiment, keep operational costs low, and launch products faster than competitors. The company is sometimes said to be more of a software company than a car manufacturer.

      Right now the aerospace leaders in this type of rapid digital engineering are regional innovators, such as Lilium, Ascendance, and Universal Hydrogen. These companies are focused on small aircraft, so are not yet competing directly with major aircraft manufacturers. But they are digital natives and have built their products, and companies, around digital engineering technologies. That is allowing them to innovate and iterate very rapidly, much as Tesla did.

      Larger companies have other advantages, in the form of deep engineering know-how on larger planes, deep pockets to invest in R&D, and the pressing incentives to deliver big transformative innovations like hydrogen propulsion.

      Some large companies aspire to design zero-emissions planes that will fly and carry passengers by the 2040s. To succeed, they will need to mimic the startups when it comes to cloud-based digital engineering. However, unlike the startups, they are not building their business from scratch, so they must overcome the technical and cultural challenges of retrofitting digital technologies into complex global engineering and IT systems that were not designed for them.

      Aerospace is an exciting space right now. Lots of innovation will be needed, and there is opportunity for multiple approaches from both startups and longstanding players. And indeed we may see a more supportive environment than the one that disrupted automotive. Planes are harder for startups to sell than cars, and we can easily imagine regional innovators using digital technologies to build new propulsion systems, then partnering with – or being acquired by – larger company with the scale to deploy them into global fleets.

      But the big companies must not be complacent – it is not unheard of for a digital native company with a laser focus on sustainable propulsion, to unexpectedly reinvent an industry, leaving established companies on the backfoot. Just ask automotive.

      How Capgemini can help

      At Capgemini we are constantly investing to ensure we are at the cutting edge of digital engineering, and can support low-carbon innovation across aerospace. We are delivering digital engineering for OEMs like Airbus, for regional disruptors such as Lilium, Ascendance, and Universal Hydrogen, and for governments.

      We support our clients in engineering sustainable products, from feasibility studies, to software selection, deployment, customization, and certification. We are the only company that combines expertise in aeronautics and engineering design, with software, data management, and IT, enabling us to help clients build the digital systems that allow them to innovate for net zero aviation

      Authors

      Julie Albert

      Global Aerospace & Defense Industry Architect, Capgemini
      Julie is Global Aerospace & Defense Industry Architect at Capgemini Engineering, with more than 15 years’ experience in the Aerospace industry. She has a strong background in system and mechanical engineering including key roles in Supply Chain, Project, and Program Management, especially for a major Digital Transformation Program, where she played a significant role in designing and implementing go-to-market strategies. She has a strong background in system and mechanical engineering including key roles in Supply Chain, Project, and Program Management, especially for a major Digital Transformation Program, where she played a significant role in designing and implementing go-to-market strategies.

        Frédéric Grousson

        VP, Head of Aerospace & Defense, Capgemini Engineering
        Frederic is Dr.-Eng in control system and has joined the group in 2000, and has worked since then in the Aeronautic sector for many customers with a huge experience at Airbus account in the industry sales team since 2015, he now leads the Aerospace and Defense sector globally for Capgemini Engineering.

          Self-service customer interactions drive enhanced patient satisfaction

          Pawel Bochenek
          16 Feb 2023

          Capgemini’s award-winning Digital Avatar solution enables healthcare providers to deliver critical information to their digitally excluded patients at speed.

          Many healthcare providers currently face challenges related to how health-related information and advice is being distributed to their patients. In particular, the health of digitally excluded, often older, patients who are unaccustomed to using digital platforms, mobile applications, and chatbots is being impacted, and healthcare providers are looking to transform the way they serve these customers.

          At Capgemini, we saw this as an opportunity to build a solution that gives patients quick and easy access to all their medical records, ensuring they get the critical information they need, when they need it – without having to explain their medical history every time they connect with their healthcare provider.

          Enhancing patient satisfaction and digital inclusion

          Our Digital Avatar solution responds to situations and requests just like a human agent to deliver a more digitally inclusive service and enhanced customer satisfaction through an easy-to-use and intuitive interface.

          By simplifying how patients and customers in the healthcare sector receive critical information, our solution eliminates the need for servicing by expensive human resources and reducing the time patients need to access information. It can also be easily integrated with an organization’s business operations and data, without causing any disruptions to business operations.

          The solution combines robotic process automation (RPA), conversational AI, multi-lingual natural language voice processing, digital twin technology, and enterprise platforms with next-generation human avatar digitalization technology to translate incoming calls in multiple source languages into the patient’s desired language. This eliminates language barriers, enabling older, digitally excluded patients to engage with their healthcare provider quickly, easily, and confidently.

          Providing information quickly and reducing costs

          Capgemini’s Digital Avatar solution delivers a wide range of business and customer experience outcomes to healthcare providers, including enhanced patient satisfaction and digital inclusion, 90% reduced language dependency, and reduced operational costs.

          All of this is why Capgemini’s Digital Avatar solution was recently announced as a winner in Business Intelligence Group’s 2023 BIG Innovation Awards and BIG Artificial Intelligence Excellence Awards. And although the solution is still highly experimental, further research suggests significant benefits in hyper-personalized services and next-generation analytics across all business process families.

          To learn how Capgemini’s Intelligent Process Automation infuses robotic process automation, AI, and smart analytics into your ways of working to deliver an unprecedented level of self-service and automation to your organization contact: pawel.bochenek@capgemini.com

          Author

          Pawel Bochenek

          Senior Service Delivery Manager, Capgemini’s Business Services
          Pawel Bochenek is passionate about delivering innovative intelligent process automation solutions for clients across various sectors.

            Envisioning the future of accounts receivable

            Capgemini
            Capgemini
            15 Feb 2023

            I’m extremely passionate about change. During my 15 years at Capgemini’s Business Services, I’ve been part of several market-leading evolutions, culminating in our realization of true digital transformation. This is particularly relevant in our AI.Receivables offering, where we’ve achieved great synergy between our transformation assets and key enterprise platforms such as BlackLine.

            BlackLine is a leader in accounting automation software, with a portfolio that includes BlackLine Cash Apps – an AI-powered cloud-based platform that enables accounts receivable automation and digital transformation.

            BlackLine’s products, and the expertise of the people that support them, are a perfect complement to Capgemini’s own strengths in what we term Frictionless Finance, and in our approach to receivables in particular.

            What is Frictionless Finance? It’s the name we give at Capgemini to an approach that aims to remove all the obstacles and sources of friction that impede interactions between people and processes in the finance operations of an organization. It connects them seamlessly, intelligently, and as and when needed.

            It dynamically adapts to each organization’s requirements within our Digital Global Enterprise Model (D-GEM) platform. This in turn helps organizations transition to – what we call – the Frictionless Enterprise.

            Synergy – the benefits for accounts receivable

            BlackLine’s solutions and skills not only fit comfortably into this approach – they enhance it. Together, we help organizations achieve simplicity and automation at scale for cost-effectiveness and superior results:

            • Cost-efficiency – working within Capgemini’s D-GEM platform, BlackLine addresses common pain points. The joint approach, with automation at scale and technology support, delivers significant savings. Also, cash application support and process exceptions are reduced via increased straight-through processing
            • Speed to value – payback is typically achieved within the first year of deployment, and savings of over 20% are already expected in the second In addition, because the process is lean and frictionless, it is highly scalable
            • Transformation – faster, easier, and better cash applications are enabled because of the scalable and global technology being used. Also, because Capgemini operates in partnership not just with BlackLine but with the client they jointly serve, there are shared rewards in meeting and exceeding performance targets
            • Customer experience – automation means faster application which reduces customer queries related to cash remittances.

            Receivables in practice

            The relationship with BlackLine has delivered great results. We’ve implemented the platform in all major regions and it is being serviced across the Capgemini delivery network. We’re supporting a wide variety of different payment types in multiple currencies and multiple languages, accommodating a range of different bank interface formats, and processing many millions of receipt transactions.

            Synergy means a form of interaction that gives rise to a whole that is greater than the simple sum of its parts. Working together with BlackLine, Capgemini is helping to building a new future for receivables – a future that is smart, and flexible, and frictionless.

            We’re also really proud that our effort to shape a frictionless future for finance has been recognized by Blackline EMEA, who have recently awarded us with AR Automation Partner of the Year Award.

            To learn how Capgemini’s AI.Receivables solution  delivers frictionless, next-generation O2C processes to drive enhanced outcomes and make Frictionless Finance  a reality for your organization, contact: jon.bell@capgemini.com or divya.bhaskaran@capgemini.com

            Jon Bell is the Global Head of Delivery for Capgemini’s Business Services. He oversees production centers, delivery excellence, transition, and technology, the latter including launching the Business Services Virtual Delivery Center for automation and robotics.

            Author

            Jon bell, Global Head of Delivery for Capgemini’s Business Services

            Jon Bell

            Global Head of Delivery for Capgemini’s Business Services
            Jon Bell is the Global Head of Delivery for Capgemini’s Business Services. He oversees production centers, delivery excellence, transition, and technology, the latter including launching the Business Services Virtual Delivery Center for automation and robotics.

              NRF 2023: 4 trends +1 game-changer from the world’s largest trade fair

              Capgemini
              15 Feb 2023

              After missing last year’s NRF, it was a great pleasure to be back in New York City for NRF 2023 and personally meet customers, partners and colleagues at the world’s largest trade show.

              In addition to these many happy moments (in our Capgemini Executive Lounge and in front of the iconic billboards in Times Square), it was particularly exciting to discover the latest and most important trends in the industry. What’s moving the retail trade at the moment?

              Here are my observations from NRF 2023:

              1. Operational efficiency

              It is not surprising that the macroeconomic crises – supply chain disruptions, inflation and consumer concerns about their financial health – are leading retailers to streamline their operations out of sheer necessity. Solutions that increase efficiency throughout the value chain are particularly in demand these days – especially AI-based tools for demand forecasting and management. I came to NRF 2023 with the expectation that the current crisis will be a crucial time for new, high-value loyalty programs. To see if I was right, I engaged in many on-site discussions with customers and partners. Short answer: my thesis was not wrong, but it was misleading. Instead, the general stance was, “Before we launch large-scale customer retention programs, we need to do our homework: getting products on shelves on time and keeping prices as low as possible – meeting expectations is the essence of loyalty.”

              2. The check-out question

              Scan & Go and seamless checkout options aren’t new anymore, but it seems the market has reached a new level of maturity. Every retailer I talked to plans to introduce an initial check-out solution or replace or enhance their existing solutions. Technology in this space varies from high-tech options like Amazon and Starbucks’ seamless checkout  (or UNIQLO’s even more impressive RFID-based checkout), to less sophisticated but very scalable and inexpensive self-checkout solutions that can even be found at low-tech wholesaler Costco.

              NRF 2023: A pop-up version of our CornerShop at the Capgemini Lounge

              3. Pause for flagship innovations

              Many of the most prominent innovations that have dominated the conversation in the industry over the last two years, such as omnichannel or digital twins, are still relevant – but have lost priority. In times of crisis, when the focus is shifting back to operational efficiencies (see #1), some of these solutions are being put on the back burner, albeit temporarily. As soon as the crisis is over we can expect a certain upswing.

              4. “Proto-verse” instead of “Metaverse”

              The hype surrounding the metaverse seems to be coming to an end for the time being – a textbook “hype cycle” running its course. So where does the technology stand today? It’s clear that there will not be one, singular solution. Consider also that we’re still in the testing phase. To put it simply: so far there is no “metaverse” but many “proto-verses”.

              Before the metaverse can become a real game changer, a few key elements are still needed, such as an interoperable identity wallet, very light and comfortable AR/VR glasses, and a lot more. In the meantime, the new technology is already being used in a number of use cases, ranging from marketing with NFTs to expanding online shops, to VR. Maybe less spectacular than previously expected, but impressively solid solutions.

              5. Last but not least: ChatGPT is stirring up the industry

              Beyond all the concrete retail-specific content, the whole scene has been overlaid by a potential game-changer: ChatGPT and its potential competitor, Google‘s LaMDA. So far there are many unanswered questions, both for retail and for business and society in general: Is ChatGPT a threat to Google’s search engine-based business model? What are the consequences for marketing and CRM? Nobody knows for sure at the moment. But everyone at NRF 2023 agreed: this technology will fundamentally change many things in the industry.

              Our booth at the NRF 2023

              Final thoughts

              We’d all like to avoid crises. But as long as the retail industry faces such stiff headwinds, it’s worth taking a step back to look at the big picture and seek out chances to outperform. Capgemini’s theme for NRF 2023 was Unprecedented disruption – unparalleled opportunity. Retailers with a comfortable mastery of today’s technologies stand a good chance of coming out on top by leading with purpose, unlocking new channel growth, and adapting to compete with operational improvement.

              WHAT MATTERS TO TODAY’S CONSUMER 2023

              2023 consumer behavior tracker for the consumer products and retail industries

              What matters to today’s consumer

              About Author

              Achim Himmelreich

              Global Head Consumer Engagement, Consumer Products and Retail
              I advise my clients on how to deal with the digital transformation and adapt or even develop new digital business models. I have already supported clients in developing their own new, digital business models that were successful in the market.

                Explore more

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                Getting ready for predictive lifecycle assessment models

                Dr. Dorothea Pohlmann
                16 Feb 2023
                capgemini-engineering

                We will one day be able to predict sustainability impact of design changes at the push of a button. We need to start preparing our data and IT now.

                In previous articles, we discussed the importance of measuring the environmental impact of complex products – such as planes, trains and cars. The next big thing in sustainable engineering, we believe, is to move beyond manual data collection, and automate it via a model-of-models. This would allow design engineers to experiment in silico, making ‘virtual’ changes to design, materials, or supply chains, and immediately understanding how combinations of decisions change the overall lifecycle environmental impact.

                The idea is to create live models of every aspect of your product’s lifetime environmental impact – from raw materials and manufacturing footprint, to in-use emissions, to end-of-life disposal or better yet re-use in a 2nd life. Then, to build an overarching model that combines all of these models into one. This would dramatically improve their ability to make sustainable design choices.

                Moving from life cycle analysis to life cycle modelling

                This challenge is often underestimated. Many think data management software and access to SAP is all that will be needed. But in reality, significant is work needed on data and IT architecture, as well as supplier and customer engagements, before these sub-models – let alone the overarching model – can be reliably built, connected, and trusted.

                Life Cycle Assessment (LCA) tools for reporting and even planning are advancing (we have a methodology for calculating the carbon impact of projects, for example). However, Capgemini Research Institute (CRI) research found that 45% of organizations are not using their emissions data for decision-making in any way, beyond mandatory reporting. No one we are aware of is successfully using autonomous tools that take such data and use it to support decisions by modelling their impact on complex systems.

                However, progress is being made and best practice is starting to emerge from early experimentation.

                Gather the right data in the first place

                The first challenge is gathering all the data you need for the sub-models.

                Your own emissions (Scope 1 & 2) can be captured by deploying electricity and gas meters, weighing fuel, tracking vehicles, and energy invoices. That, combined with data on fuel values on the local energy mix, can be used to build models that calculate emissions. This is not technically challenging, but deployment can be a sizeable project in a large organisation.

                Emissions beyond your organisation – supply chains, product emissions, end-of-life (Scope 3) are trickier.

                For in-use emissions, products such as cars and planes now have sensors which collect detailed usage data. That data can feed physics-based models to derive energy use and emission, which can be updated in near real-time. Products without such sensors, however, will need to rely on models which approximate their impact.

                Suppliers, manufacturers, and disposal are harder to collect data on. Whilst some suppliers do their own LCAs, many do not collect even basic energy data, and there is little international standardisation.

                Some may respond to encouragement, especially if you are one of their big customers. Workshops and guidance on what you need may help, as may paying to install sensors at their site, share product and material related information, or access to shared reporting software that feeds your own supplier models. Sticks may support carrots, such as audits and threats to switch to suppliers with better environmental data. Making PCF (Product carbon footprint) data reporting a condition for any new customer will help in future.

                If all else fails, there are industry benchmarks to fall back on to calculate emissions of materials and parts, based on the materials and local energy mix where they were mined and processed.

                A particular challenge is integrating new concepts. Creating values for different steel types is not too tricky, since there is lots of historical data. Understanding the impact of an untested biomaterial is harder. Evaluating the impact of a whole new technology, such as hydrogen, is a real challenge. There’s some chicken and egg; we need data to make the projection, but we want to project before we make the investment. The best middle ground is to make sensible projections based on scientific and engineering expertise, then gather data as the product evolves, which feeds directly back into the model to improve its predictive power.

                Cleaning and clarifying your data

                All the data coming into your models needs to be well-defined, consistent, and in machine-readable formats.

                This starts with setting consistent policies for data collection and formats across your own organisation, and where possible communicating these to your value chain. An industry-led project in automotive, Catena-X, provides a good model for how data may be shared across the supply chain in future, and designing data capture and modelling that will integrate with this ecosystem is advisable.

                That may set a path for the future. But a lot of legacy data – internal and external – has evolved in silos over the years, from engineering data, to excel spreadsheets, to PDFs of technical drawings. That will necessitate an exercise to find, clean, convert and tag data.

                AI tools can – crawl IT systems, screen for the right data, and pull it from PDFs, Excel and so on, checking it, filling in gaps with industry standard figures, and pumping it out in a format that is Creating the right IT infrastructure for a model-or-modelsreadable by your model.

                Creating the right IT infrastructure for a model-or-models

                All of this data is spread out in different parts of the organisation, suppliers, and customers. But we want a single source of truth so that all data will be ‘Findable, Accessible, Interoperable, and Reusable’ or FAIR.

                That means setting up a sustainability data hub – a master database in the cloud – where all relevant data is fed and validated.

                It will also need software customisation to ensure all sources of data – whether sensor management platforms or CRM databases – are collecting data in the right format and updating the master database in real-time.

                For sharing data across supply chains, or between manufacturers and customers, privacy and cross-border data-sharing rules also need to be considered. Blockchain-based databases offer good solutions to tracking parts and products securely as they move along the value chain. We already see companies like BMW using blockchain to track supply chains, and Siemens has a blockchain-based tool that lets suppliers share verified emissions data with customers, whilst keeping any underlying sensitive data confidential.

                Conclusion: Aim high, create value along the way

                All of this will be very bespoke to each organisation. It will mean working with data and software experts, as well as domain experts familiar with the materials and processes that the data represents.

                This will not happen overnight, but the journey will also provide value. The best strategy is to have an eye on long-term value, whilst delivering more immediate returns. Improving data, building sub-models, and connecting up data streams will help life cycle assessments and small-scale modelling projects, as you gradually build to a systems-level model-of-models.

                Ultimately – as companies test ideas in silico and see how they ripple through the supply chain and product life – they will become better able to make smarter, and often disruptive, decisions in sustainable design. No one is there yet, but this is the direction of travel.

                Author

                Dr. Dorothea Pohlmann

                CTO Sustainability, Capgemini Engineering
                With 15 years at Capgemini Engineering, Dorothea has applied her technical skills in business transformation and technology projects in automotive, manufacturing, e-mobility, energy and utilities sectors. More recently she has focused on sustainability-driven business with a specific expertise in Product Lifecycle Assessment (LCA) in the context of complex systems, wind energy and hydrogen. She is an active speaker at conferences and events on sustainability, and is passionate about the need for more sustainable-driven business impact. She holds a doctorate in laser physics.

                  Driving a high-performance talent culture

                  Preeti
                  Preeti Chopra
                  14 Feb 2023

                  HR leadership needs to invest in building a culture of unbiased talent assessments that boost collaboration and professional development to drive collective success of the entire organization.

                  The word “talent” is defined by Merriam-Webster as “a special often athletic, creative, or artistic ability.” In reality, however, my experience is far from this dictionary definition.

                  While many people live up to their potential by working on their strength areas and exploring ways to build self-actualization, there are just as many people who continue to work in accidental, forced careers that may not necessarily align with their actual talent.

                  Talent assessments, power, and politics

                  Science has long suggested that investing in the right people will maximize the return of an organizations. You only have to see how organizations leverage Pareto’s principle or power law distribution to create a highly motivated, self-driven talent pool through assessing, building, and developing individual capabilities that give people the winning edge in business.

                  Some organizations start this journey at the recruitment stage through aptitude tests and psychometric assessments to understand the variety of potential being added to the organization’s talent pool. While others carry out annual assessments to identify top talent and build a pool of high-potential (HIPO) employees that receive special attention.

                  Both of these approaches can create division among individuals that results in power games and politics within the organization. Indeed, the very culture of collaboration is broken or crushed when a performance or potential-based hierarchy is created, as such identification efforts are perceived to be loaded with cognitive biases.

                  Of course, bias exists in the idea of low performance, because as human beings we have an innate desire to be seen as winners or at least be associated with the winning team.

                  High-potential talent – ego vs. partnership

                  The key question to be answered in any talent assessment then becomes “assessment for what?”

                  Most top talent interventions focus on individual career success and paths rather than assessing or guaranteeing an individual’s contribution to the success of the organization. Nor do these interventions provide any assurance that once an individual moves into a leadership position, he or she will adopt a winning approach or “algorithm” that turns their team or the organization into high performing entity.

                  In fact, more often than not, HIPO employees are too focused on their own individual success to contribute as much as they should to organizational success. Such high performers either become potential targets to switch jobs or end up demotivating their peers/teams with their sense of individual success. High performers tend to become luxury commodities that might not always deliver the right economic outcomes for their organizations.

                  Another observation is that most top performers evaluate their own performance more critically and harshly, whereas those who perform poorly or are put on performance improvement plans think they are making a fantastic contribution. Thus, self-awareness of expectations, it seems, is a critical component of talent identification.

                  Building a culture of collaborative performance

                  To overcome these challenges, organizations need to invest in unbiased talent assessments that provide accurate information on what triggers or motivates an individual to drive success.

                  Foe their part, HR leaders need to build a culture of working on talent interventions that help individuals create a high-performance benchmark to drive organizational competitiveness.

                  A culture that heavily supports and boosts collaboration, partnership, professional development, coaching, and people empowerment for the collective good and success of the organization. A culture akin to the creation of intellectual property that increases in value and quantity each year.

                  Read Capgemini’s full report “The people experience advantage” to learn about 10 key actions for companies to take to improve the experience of their people.

                  Author

                  Preeti

                  Preeti Chopra

                  Chief Human Resource Officer, Capgemini’s Business Services
                  Preeti Chopra helps develop a talent strategy that delivers technology-driven business operations for our clients – helping our people and clients get the future they want.

                    Creating a circular economy through AI

                    Pratyasha Shishodia
                    14 February 2023

                    Sustainability is a buzzword and it’s becoming action. However, the current focus is on offsetting the impact of our actions rather than tackling the root cause. A cradle-to-cradle model is the paradigm shift that the current linear economy needs. And AI is the catalyst for this. Let us look at how AI can be applied to different stages of the circular economy: right from product inception to its regeneration, thus closing the loop.

                    Let’s say you bought a new phone, perhaps the latest iPhone 14, as a replacement for your previous one. Have you ever thought where all the old devices go?

                    Unfortunately, they end up in landfills, since we follow the “take-make-dispose” a.k.a. the linear economic model, wherein we extract raw materials, manufacture, and use products, followed by disposing of the product at the end of its shelf life. Herein lies the big issue: the waste generated causes multi-dimensional ramifications on the environment and public health, best explained by designer Sophie Thomas, Director of Circular Design at Useful Simple: “Waste is a design flaw.”

                    Therefore, the failure of the linear economy in addressing issues like product wastage, raw material shortage, and carbon footprint has given rise to the need for an alternative model, one which is fundamentally circular, just like our nature cycles, and mitigates the harms caused by industrial waste. Here, the circular economy (CE) model seems promising in tackling problems caused by the linear economy model, since it mimics the Earth’s natural cycles by applying similar principles to our economic system. The fundamental premise of the circular economy is based on the 3Rs – Reduce, Reuse, and Recycle – that focus on waste minimization along with optimum utilization and reuse of existing products, thereby ensuring resource circularity.

                    Moving forward, the question of practicality arises, as in how do we shift from a linear model to a circular one in a relevant and cost-effective manner? The answer lies in artificial intelligence (AI), which will serve as the major catalyst in enabling this paradigm shift. Here are some key AI-enabled phases that can drive forward this transformation.

                    01: Make it last:

                    Design circular products using iterative machine learning and AI suggestions that will prolong the product life cycle and tackle resource scarcity. With AI, you can predict product and carbon costs right from the initial design phase to ensure optimized scenarios. For example, you can source local products and reduce the carbon footprint associated with transport or product substitution during the manufacturing phase.

                    Chilean brand NotCo made an egg-free mayonnaise using plant-based substitutes with the help of an AI-based ecosystem. It deploys an ML algorithm to identify new plant-based foods and food formulas by detecting patterns at a molecular level and analyzing flavor molecules. This helps in quick testing, tasting, and providing feedback to ensure that the final product tastes as good as the original one.

                    Amazon created sustainable packaging designs leveraging AI algorithms to identify products that can be shipped in padded mailers instead of boxes, making packages lighter. This increases the number of packages dispatched per truck, thereby reducing the amount of packaging that needs to be recycled, eventually causing a decline in the carbon footprint per item along with slashing delivery costs.

                    “The fundamental premise of the circular economy is based on the 3Rs – Reduce, Reuse, and Recycle – that focuses on waste minimization along with optimum utilization and reuse.”

                    02: Use optimally:

                    Use data-driven AI algorithms to develop innovative circular business strategies and frameworks for sustainable growth by combining previously recorded and real-time data from other stakeholders, including producers, manufacturers, suppliers, and consumers for process optimization and automated decision-making.

                    Stuffstr utilizes AI for price setting, forecasting demand, and creating trading platforms for secondary resources and products. Stuffstr buys and collects used products from consumers and sells them in secondhand markets. An AI algorithm helps Stuffstr to set competitive prices for the seller while offering Stuffstr a good margin in the secondhand market.

                    H&M amplifies business solutions with AI to consider the environmental impact of its raw materials. It covers the entire value chain, looking at close to 5,000 H&M stores. It uses AI to understand consumer needs to produce only the right products in the right amounts and allocate them to the right place. The framework delivered immense business value by reducing time-to-market for use case development by 50 percent (i.e. from 12 to six months).

                    03: Recycle to close the loop:

                    Circular production ensures infrastructure is fully optimized and, by mathematical modeling, material flow is created for acquiring used products, assessing waste, and reprocessing.

                    AI is already helping in creating value for circular material flows and enhancing the selection of materials and products by sorting post-consumer mixed material streams through visual recognition techniques.

                    Unilever and the Alibaba Group created an Al-enabled recycling system that automatically identifies and sorts plastic packaging. It aims to speed up high-grade plastic back into the CE and move China’s companies and consumers towards a waste-free world. Using AI technology, it automatically identifies the type of plastic, sorts it and stores it, collects and returns it to recycling centers, and fast-tracks it for reuse rather than being left to degrade.

                    At Ikea, 15 percent of its returned items become waste. To tackle this, Ikea has adopted AI for handling returned merchandise. Ikea installed an AI platform developed by its partner Optoro in 50 locations across the US. It predicts the best possible destination for returned merchandise, whether it should be back on the floor, on the website, donated to charity, or sold to a third-party wholesaler. The algorithm determines this based on what makes the most sense for driving up Ikea’s profits.

                    AI in a circular economy promises boundless opportunities in the future, however, it is largely untapped. The current understanding of circular-economy principles among businesses is limited to recycling, which is just one part of the CE model. Despite increasing awareness around sustainability, most organizations are not prioritizing the remaining two stages adequately.

                    Creating a broader awareness and understanding of how AI can be used to support a circular economy will be essential for enabling organizations’ transition towards a truly circular economy. It will also play well with consumers who want to take responsibility for the environment.

                    Dr. Caroline Cassignol, Siemens Technology, explains why this transition is imperative: “We grew up in a world dominated by the linear economy, and now we need to shift to a circular economy. That requires a completely different mindset. Everything we do must be questioned.”

                    INNOVATION TAKEAWAYS

                    INSPIRE BY NATURE

                    The failure of the linear economy in addressing environmental and health issues has given rise to the need for an alternative model which is fundamentally circular, just like our Earth’s natural cycles, and mitigates the harms caused by industrial waste.

                    THE CIRCULAR ECONOMY IS JUST DEVELOPING

                    Currently, the understanding of circular-economy principles among businesses is limited to recycling. It is important to encourage awareness around design and circular infrastructure.

                    #AISDGS

                    An AI-enabled futuristic circular approach is the key to accomplishing the majority of the UN’s Sustainable Development Goals and generating goodwill among consumers for taking responsibility towards the environment.

                    Interesting read?

                    Capgemini’s Innovation publication, Data-powered Innovation Review | Wave 5 features 19 such articles crafted by leading Capgemini and partner experts, about looking beyond the usual surroundings and be inspired by new ways to elevate data & AI. Explore the articles on serendipity, data like poker, circular economy, or data mesh. In addition, several articles are in collaboration with key technology partners such AWS, Denodo, Databricks and DataikuFind all previous Waves here.

                    Author:

                    Pratyasha Shishodia

                    Director- FROG Customer Transformation and Data
                    Pratyasha is an Enterprise Architect with over 17+ years of experience in Customer Experience Design, Architecture and Advisory currently leading Customer transformation & Data Analytics with a team of 35+ consisting of CX and data experts. She has firsthand experience of CRM evolution and has worked in all aspects of CX transformation projects. Solving Complex CX Problems drives her to learn every day. Pratyasha is an avid reader and non-fiction is what excites her beyond work.

                    Faizan Shaikh

                    Senior Consultant- FROG Data & Analytics
                    Faizan is a seasoned marketing analytics consultant with over 7 years of experience in the field. With a strong background in data analysis and a passion for both AI and sustainability, Faizan has a unique perspective on how to drive business growth through data-driven insights and innovative solutions. He has honed his skills by working on a diverse range of projects for top FMCG brands. With a deep understanding of data analytics tools and techniques, Faizan, currently manages a team of data analysts and has a track record of delivering meaningful insights and recommendations to help companies make data-driven decisions.

                    Soumitra Upadhyay

                    Associate Consultant- FROG Data & Analytics
                    Soumitra is a consulting professional in the field of Analytics with relevant experience in Marketing Analytics , Consulting and Research using customer data driving insights about market trends and strategies for best feasible output. He is an avid sports lover and loves to travel across places with varying geographies and history.

                      Ensure the best first experience for employees by incorporating HR Cloud technologies

                      Dr. Sandra Duesing
                      13 Feb 2023
                      capgemini-invent

                      A resignation after the interview and before the start of a new employment relationship is unfortunately not an exception.

                      As mentioned in our previous blog article, the optimal employee-centric Onboarding journey consists of three phases: pre-boarding, acclimation, belonging, and performance excellence. In this article, we take a closer look at the pre-boarding phase. This phase is particularly crucial since many companies experience potential employees terminating their employment contracts even before they officially start. This first phase of the employee-centric Onboarding journey begins after a successful recruitment process and the signing of the employment contract by future employees. The goal of this phase is the administrative empowerment of future employees, giving them a first impression of the corporate culture and offering the first social touchpoints. To achieve this pre-boarding goal, Onboarding activities take place within our four defined Onboarding experience layers. They are considered in more detail below:

                      Admin and technological layer

                      This layer is the main focus in pre-boarding. To ensure an optimal employee experience in Onboarding, the idea of a single source of truth is essential. In line with this, the Onboarding journey starts with timely access to the central Onboarding portal.

                      In the portal, future employees select the complete, desired technical equipment and fill out the relevant documents directly in the portal. For example, a pre-Onboarding task can be to upload a profile picture, which must be done by future employees. To support future employees in this regard, reminders are sent from the Onboarding portal. Independent status tracking is also offered.

                      Additionally, a checklist with the next upcoming Onboarding steps provides future employees with a constant overview of all the activities required until joining the company. Systems like ServiceNow, for example, provide a comprehensive Onboarding checklist for different personas (e.g., for the employee, hiring manager, HR, and IT) that guides them through the completion of Onboarding (see illustration 1).

                      Professional and content-related layer

                      Before starting a new job, only relevant updates on team projects and the overall team strategy are shared with future employees – via personal touchpoints or more formally through the Onboarding portal. In this way, employees are given the opportunity to start the job with all relevant, content-related information. To get even more support from HR Cloud technologies in pre-Onboarding and to create added value in the Onboarding experience, training courses can also be provided in advance. For example, this is offered by the HR Cloud provider, Workday. However, organizations should avoid overloading employees with job-specific induction activities before the official start.

                      Organizational and cultural layer

                      If we consider the organizational and/ cultural aspects of the Onboarding journey, it is necessary to provide future employees with relevant information in the onboarding portal before their start date. This includes information about the first day at the new employer: where and when is the new employee expected? How will the first day(s) be structured? Similarly, FAQs are a useful addition. However, this also means information about the company itself, such as company values and the organizational structure, should be provided to shape the pre-boarding on an emotional and informative level. The scope of information should be based on the principle of “as little as possible, as much as necessary.”

                      Communication with personal contacts, such as a buddy or the employee’s own manager, should also be easily accessible to future employees via the Onboarding portal. Of course, first contact should be made by the buddy and the manager.

                      Social and network layer

                      As briefly touched on, relevant contacts are directly involved in the pre-boarding of new employees. Buddies and managers act as the first personal contact with new employees immediately after the contract is signed. This is important to ensure regular and reliable communication until the official start. Invitations to team events and for a coffee in the office are also optimal ways to get to know new colleagues before the official start and to round off the employee’s experience in pre-boarding.

                      Our next Blog #3 takes a closer look at the second phase of the employee-centric Onboarding journey – the acclimation phase.

                      Our authors

                      Dr. Sandra Duesing

                      Vice President in Workforce & Organization and the Global Head of Reinventing HR | Capgemini Invent
                      As Capability Lead Workforce & Organization at Capgemini Invent with a dedicated focus on Experience Excellence in HR & HR IT, I am passionate to re-imagine work & unlock underlying human potential to drive digital transformation journeys for business and society successfully.

                      Svenja Stegemann

                      Senior Consultant in Workforce & Organization | Capgemini Invent

                      Anne Geiter

                      Consultant in Workforce & Organization | Capgemini Invent