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Transforming R2A drives a more analytically-focused future

Malgorzata Bateup, Record to Analyze Global Process Owner, Capgemini’s Business Services
Malgorzata Bateup
20 Jun 2023

Digitalizing your record-to-analyze processes enables you to spend less time crunching numbers and more time analyzing data to drive more insights. This shift is driven technology and your people in equal measure – but where do you start?

Imagine you’ve just landed your dream job, but end up spending most of your time doing administrative tasks that stop you from doing what you’ve been employed to do. You’d rightly feel frustrated and be looking for ways to sort out the admin, so you can dive into the good stuff.

This is the reality facing most record-to-analyze (R2A) teams – until recently.

Traditionally, R2A teams spend most of their time ensuring that every finance transaction is recorded accurately and in a timely manner. But this means typically spending most of the month and end-close period checking transaction accuracy, correcting errors in upstream processes, and preparing information for reporting. As a result, R2A teams often don’t have enough time to analyze the data they work with.

Shifting the focus from “record” to “analyze” means your R2A teams spend less time crunching numbers and more time analyzing data to drive more insights – which represents the true value your stakeholders expect from your finance function. But with your R2A teams spend more time analyzing data, who – or what – will record finance transactions and make the data associated with them available for analysis?

This is where digitalizing your R2A operations through leveraging a proven AI-augmented solution comes into play.

Technology makes transforming your R2A operations possible

Digitalizing the “record” side of your R2A process requires implementation of the right technology to integrate and orchestrate your data quickly and easily. This enables R2A platforms and an AI-augmented workforce to run your accounting transactions efficiently and automatically with minimal human supervision, while your R2A teams focus on analyzing the data to achieve the results your clients expect.

Implementing technologies such as BlackLine empowers your end-to-end R2A process by automating accounting workflows, streamlining financial reporting, and providing a centralized and secure workspace for period-end accounting activities. This helps you close faster with more complete and accurate results. And leveraging an integrated AI-augmented governance, risk, and compliance (GRC) solution can help eliminate process risk to drive frictionless operational efficiency, improved fraud and revenue protection, and improved compliance.

But this is only half the story.

Change is driven by your people

While technology plays a crucial role towards the R2A shift, it’s important not to lose sight of the main force that will drive your transformation forward – your people.

People are an integral part of the success of any transformation – and the key to ensuring your business processes are understood by your R2A team. To ensure your people are prepared to meet the challenges of their new digitalized environment requires you to invest in training and upskilling and talent development. Training that focuses on improving your people’s analytical skills and capabilities, better understanding finance analytics methodologies, and generating better analysis for your organization through using AI-augmented technologies.

Additionally, implementing different change management initiatives will help your people to work as part of an AI-augmented workforce. Involving your people in the in the core automation process or the implementation of analytical tools will accelerate them on new learning paths, helping them to become architects of their own future.

To learn more about how Capgemini’s AI.Controllership solution infuses AI into your accounting, reconciliation, close, reporting, and compliance processes to drive enhanced efficiency, increased effectiveness, and improved compliance, contact: malgorzata.bateup@capgemini.com

Meet our expert

Malgorzata Bateup, Record to Analyze Global Process Owner, Capgemini’s Business Services

Malgorzata Bateup

Record to Analyze Global Process Owner, Capgemini’s Business Services
Malgorzata Bateup focuses on developing new products in the record-to-analyze area. She has over 20 years of experience in finance and accounting, with the last 12 years dedicated to transforming our clients’ processes and operations.

    Fueling your organization’s business transformation using Capgemini’s solution for intelligent, sustainable connected assets

    Rammohan Shenoy
    18 Jun 2023

    Building for both the needs of today and the changes that will come in the future is a challenge. Organizations must overcome several hurdles, including operational-wastage prevention, carbon-impact reduction, worker safety, compliance adherence, and optimization of manufacturing operations.

    Most organizations have assets spread across the globe and need to analyze data intelligently and quickly to take corrective actions. Using data to address critical operational efficiencies, measure performance metrics, and improve product innovation and workforce planning leads to calculated insights that solve complex business scenarios.

    Research shows that using analytical data across connected plants enables machines and people to make intelligent, facts-based decisions, thereby improving plant efficiency. Operational leaders need to make their plant operations smart by gathering and measuring critical asset data as the first step towards making fact-based decisions to improve efficiency and achieve optimum utilization.

    C-level leaders need guidance to make their operations sustainable while remaining profitable and competitive. Capgemini is responding to the climate crisis by investing in data and intelligent plant solutions that provide actionable insight to predict maintenance needs better and improve the manufacturing process.

    To start, leverage your SAP S/4HANA system investment for SAP Business Technology Platform (BTP)-based innovations. Utilize the SAP BTP Integration Suite to connect various plant systems (manufacturing, quality, plant maintenance, and warehousing), creating a truly smart connected enterprise. A connected enterprise brings visibility to operational wastage so improvements can be made to achieve manufacturing process efficiency, improve productivity, and reduce downtime and reduce carbon impact. This is a crucial step towards reaching your sustainability needs in pursuit of a cleaner, greener environment by reducing waste and unwanted carbon emissions.

    To get there, leverage IoT-enabled devices like GPS sensors and tags to connect or mount your factory assets. As 5G connectivity becomes more available across plant locations, these devices can provide real-time data to operational leaders to make decisions and save costs. Organizations also need to leverage AI skills and IoT data to learn about issues before they occur, trigger alerts, and take automated actions to resolve problems, thereby improving the overall health of plant assets and extending their life cycle.

    Capgemini’s solution for intelligent, sustainable connected assets is built with SAP’s Clean Core in mind. This avoids creating unnecessary customizations in your SAP S/4HANA digital core. It combines the power of SAP BTP and S/4HANA with Capgemini’s location-based services (LBS). The SAP BTP platform provides an end-to-end solution with intelligent applications and an integration suite to provide real-time data insights. Capgemini’s LBS, with its multi-sensor technology, provides visibility to mobile and non-mobile assets across the entire plant or warehouse, providing seamless track-and-trace functionality with its IoT devices, GPS sensors, and tags.

    By getting the technology integration right, an organization’s business ambition can be enhanced with increased efficiency and cost optimization. With connected plant assets, factories can improve throughput and have seamless visibility into bottlenecks, machine performance, and other operational inefficiencies. With more visibility, companies can increase yields by up to five percent, decrease production downtime, reduce waste by 20 to 25 percent, optimize overall equipment efficiency, and improve productivity. Production efficiency helps organizations achieve sustainability goals and enables smart-factory adoption. Those who have yet to embark on their intelligent factory journey risk falling behind for better quality, productivity, yield, and sustainability.

    Authors:

    Rammohan Shenoy

    Senior Manager, SAP Solutions Director & Practise lead for Warehousing solutions
    Ram has over 24 years of consulting and business transformation expertise implementing ERP solutions in Supply chain and Manufacturing. He has strong Solution & Program management skills having led transformation projects with P&L responsibility as Delivery executive. Ram is a thought leader in Supply chain warehousing and manufacturing solutions and is publisher of Point of View articles.
    Remon

    Rémon Hogguer

    Principal, SAP Enterprise Architect/Strategic Advisor Lead, SAP COE IP Lead, SAP Business Technology Platform Solution
    Mr. Hogguer has over 25 years of consulting and business experience and an in-depth understanding of managing and implementing SAP-enabled business transformation programs as a PMO lead, and a delivery and account executive. He has comprehensive supply chain management knowledge across multiple industries, and has hands-on experience with all aspects of system implementations, including strategic roadmap development, upgrades, change management, re-engineering, training, requirements definition, design, development, documentation, testing, quality assurance, and post-implementation support.

      At Retiretech 2.0: Focusing on the future and the need to evolve

      Krishnakumar Shanmugasundaram
      30 May 2023

      The financial services industry is changing all around us. The trend started in the property and casualty insurance (P&C) industry and rolled into banking. And, let’s be honest, it was a necessity. Now we are seeing major changes occurring in the life insurance as well as benefits spaces. What’s bringing up the rear? Annuities and retirement.

      The impact of disruptive tech and more

      Regardless of which financial services sector you are in, you are being impacted by the current socioeconomic and geopolitical environment we live in today along with the changing tech pressures that come from the likes of Amazon and Netflix. Yes, those two companies may be operating in different industries, but they have had significant impact on consumer behavior. It isn’t enough that we have to keep up with changing interest rates and come up with different combinations of products to support our customers well into the future (when we don’t know what the future holds), but we also have to keep up with personalized approaches and on-demand technology that most consumers now expect as standard user experience.

      Retiretech 2.0: A deep-dive into the state of the industry

      Nassau Financial Group sees the need to support this industry and bring others together to discuss these challenges and the impact it is having on the retirement industry in their annual Retiretech forum. This meeting of the minds is key to the success of our industry and supporting our customers, but more importantly, it is a safe place to talk freely and ask the hard questions to those that are in the same predicament as you are! Retirerech 2.0 in 2023, held last month at the Capgemini Innovation suite in New York City, was attended not only by annuity providers and wealth management advisors, but by regulators, rating firms, start-ups, and distribution arms to discuss these hard topics.

      Here are few of the highlights from experts who participated in the various panel discussions and expert talks during Retiretech 2.0:

      • Although the industry has consolidated, the top positions in the market have changed quickly due to new product designs and fresh capital. As a result, competition for shelf space has never been fiercer. The value proposition for marketing firms buying smaller ones has also changed to emphasize technology.
      • The discussion also addressed the evolving preferences of clients, with most people wanting to talk with an agent or advisor when making a large investment. However, a growing number of people are now comfortable with conducting these transactions online. Additionally, there is a growing need for education that agents can use to help their clients.
      • With fewer workers to support an increasing number of seniors, there are mammoth funding challenges that countries and communities need to address. Different countries, such as Japan, China, Canada, and Western Europe, are trying to tackle this problem by adopting various policies, launching new products and services, and investing in technology.
      • Too often, we focus on the technology and not enough on the person who needs our help. Retirement is about finance, but also about health, education, and a life of purpose. It will be less about older individuals and more about younger ones planning and saving for their future retirement. The industry can’t just focus on the baby boomer generation, it has to prep for more generations than it has ever focused on at once.
      • Furthermore, life and annuity providers hold great promise in developing more personalized products in the future. Connecticut, in particular, hopes that innovation will help to close the insurance coverage gap, especially for underserved communities across the country. The state is committed to supporting the insurance market, in part because it is home to 110 domestic insurance carriers and licenses an additional 1,400 carriers to conduct business.
      • To drive positive change in the industry, insurance regulators are rapidly building teams with the capability of supporting innovation activities. These departments recognize the potential benefits of innovation and the importance of creating an ecosystem that enables innovative insurance products to flourish.

      How do we evolve in changing times?

      In the end, we find ourselves in a cycle of change; of give and take. The lingering question to the audience was centered around the technology – the elephant in the room. Do you have what you need to evolve in these changing times? To meet the needs of new products that provide services and benefits that have never been applied? To meet the digital and personalized demands of not only your contract owners, but of your distribution partners? To connect with third-party partners, such as rating firms and data partners? The short answer from most, was no and we have a long way to go to get there.

      It isn’t enough to add in new technology, we must solve for the technical debt in which we find ourselves. We must build technical wealth in order to meet these new needs. And we have to do it by creating scalability and sustainability while managing change at the same time. We have to reduce costs, create automation, and maintain business as usual.

      Fortunately, there is a happy ending to this story and it isn’t that we are not alone in this world of change. There are more technology options today than there has ever been to support new product development, data integration, digital distribution, and policy administration. You don’t have to build it all. There may be some segments you want to build, but the great thing here is that low-code/no-code tools are a great accelerator. The best news: it isn’t something you have to do alone. There are consulting and systems integration partners like Capgemini who can help you make the right decisions on buy versus build, help you integrate or build, but more importantly help you design and achieve the RetireTech future you want.

      Learn more about Retiretech by visiting, https://imagine.nfg.com/retiretech-forum-2-0/

      Author

      Krishnakumar Shanmugasundaram

      Global lead – Technology Innovation & ventures (Insurance)
      Samantha Chow

      Samantha Chow

      Global Leader for Life Insurance, Annuities and Benefits Sector at Capgemini
      Samantha Chow is an expert in the global life, annuity, and benefits markets and has 25 years of experience. She has deep expertise in driving the growth of enterprise-wide capabilities that facilitate transformational and cultural change, focusing on customer experience, operational efficiency, legacy modernization, and innovation to support competitive advancement

      Shivakumar Balasubramaniyan

      Expert in Transformative Tech & Emerging Business Models

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        Supply chain transformation in aerospace and defense: Strategies for success

        Capgemini
        Capgemini
        16 June 2023

        We’ve all felt the crunch post-pandemic. However, aerospace and defense suppliers seem to have felt this crunch with particular intensity. From a state of near-zero demand during the height of lockdowns, the industry has rapidly shifted to meeting the skyrocketing demand as borders reopen and consumers resume travel. This unprecedented surge in demand has put significant pressure on aerospace and defense suppliers.

        As professionals in the aerospace and defense sector prepare to gather and reconnect at in-person events, including the highly anticipated Paris Air Show in June, it becomes increasingly important to delve into the evolving landscape of supply chain management.

        In this article, we will delve into key insights and explore the critical factors that will shape the future of supply chain management. From a skill crunch and geopolitical considerations to the importance of digital continuity and process harmonization, we will examine the strategies and solutions necessary for building a robust and efficient supply chain ecosystem.

        A spike in demand and drop in skill availability: challenges in supply chain management

        Recovering from pandemic disruption

        According to a survey from the Capgemini Research Institute(CRI), close to 7 out of 10 organizations have taken more than three months to recover from disruptions related to the Covid-19 pandemic.

        As the world moves forward, the aerospace and defense industry is facing a significant increase in demand as travel restrictions ease and the global economy starts to recover. According to the International Civil Aviation Organization (ICAO), aircraft orders and deliveries by major manufacturers Airbus and Boeing grew by 53% in orders and 20 % in deliveries over the past year. We anticipate this trend continuing as the industry rebounds from the pandemic. This steep production ramp-up has placed immense pressure on the supply chain to scale and also deliver, which makes it critical to build a highly resilient supply chain for the industry.

        Skill shortage across the board

        Maintenance, Repair, and Overhaul (MRO) services and manufacturing sectors are grappling with a shortage of skilled workers. This scarcity of skilled workers hampers the industry’s ability to meet the rising demand effectively. The impact is particularly acute in the United States and Europe, where the skill shortage is substantial. However, there is a relatively better availability of skills in Asia, which offers some respite to companies operating in those regions.

        The ever-present challenge of managing costs

        The rising demand for aircraft, components, and defense equipment pressures companies to optimize their supply chain costs. Balancing cost efficiencies while maintaining quality and compliance standards presents a delicate challenge. Additionally, fluctuations in raw material prices and geopolitical factors can impact costs, further complicating the supply chain landscape.

        Addressing these challenges requires a multifaceted approach. Companies must invest in talent development and retention strategies to mitigate the labor crunch. In fact, according to a recent CRI report on Intelligent Supply Chain, “45% of organizations state that their supply chain cost base has increased over the past three years to accommodate the push to improve resilience, sustainability, and customer-centricity”.

        A shift in the supply base and the need for seamlessness

        The complexity of the supply chain with multiple layers of suppliers

        The supply chain in the aerospace and defense industry is a complex ecosystem with multiple layers of suppliers involved. Companies often have supply bases consisting of 8 to 10 layers, encompassing tens of thousands of suppliers.

        Each layer of suppliers plays a critical role in ensuring the smooth flow of materials, components, and services to the final assembly. Managing this intricate web of suppliers requires meticulous coordination and effective communication throughout the supply chain. Any disruption or inefficiency at any layer can have cascading effects on the entire chain, impacting production timelines and customer satisfaction.

        Political considerations influencing the selection of suppliers

        The current landscape is witnessing a shift in the supply base as companies seek stability in politically stable regions and consider the availability of skills and cost factors.

        This shift in the supply base presents a challenge for seamless operations. The supplier who may have been a steady and reliable partner in the past may not necessarily be the next-generation supplier due to changing political situations or other factors. Consequently, managing the entire supply chain thread becomes crucial, demanding smarter and more agile supply chain management practices.

        Smarter and agile supply chain management

        Resiliency is paramount to the next-generation supply chain. Yet, fewer than 4 percent of organizations are building the capacity to be crisis resilient, according to the Capgemini Research Institute’s research on supply chain resilience for a post-COVID-19 world.

        A smarter and more agile supply chain management approach enables companies to adapt to changing market dynamics, improve operational efficiency, and deliver superior customer satisfaction.

        Visibility

        With a vast and complex network of suppliers spanning multiple tiers, it is essential for companies to have transparency and visibility into every stage of the supply chain. This visibility allows for real-time tracking of inventory levels, production progress, and logistics, enabling companies to identify potential bottlenecks or disruptions proactively. By having a clear view of the entire supply chain, companies can make informed decisions, quickly respond to changes, and implement effective contingency plans when necessary. Enhanced visibility fosters collaboration and trust among suppliers, OEMs, and other stakeholders, promoting transparency and accountability throughout the supply chain ecosystem.

        Risk mitigation strategies

        One of the key aspects of smart and agile supply chain management is the implementation of effective risk mitigation strategies. With global uncertainties and potential disruptions, companies must identify and assess risks across the supply chain and develop proactive measures to identify, track and mitigate risk impact. This includes diversifying suppliers, establishing backup plans, and closely monitoring geopolitical and economic factors affecting the supply base. By being prepared for potential disruptions, companies can minimize the negative consequences and maintain a resilient supply chain.

        Digital continuity for seamless communication and data movement

        Achieving seamless communication and data movement within the supply chain is critical for effective supply chain management. Digital continuity plays a pivotal role in enabling this seamless flow of information. Implementing robust enterprise resource planning (ERP) systems that facilitate real-time data exchange, collaboration, and visibility across suppliers, OEMs, and other stakeholders is essential. This digital continuity ensures that relevant information is accessible to all parties involved, enabling better decision-making, enhanced coordination, and improved responsiveness.

        The role of certification standards for consistency and compliance

        Certifications in the aerospace and defense industry are instrumental in establishing and maintaining consistent processes across the supply chain. They provide a framework for suppliers to follow and help align their operations with industry best practices. For instance, the AS9100 certification sets the standard for quality management systems in aerospace, emphasizing risk management, process adherence, and continuous improvement. These certifications promote a culture of excellence and drive suppliers to adopt consistent and standardized processes, leading to enhanced efficiency, reduced errors, and improved overall performance.

        Standards in the industry also play a crucial role in harmonizing documentation and reporting practices throughout the supply chain. They establish common guidelines for design, documentation, and key performance indicators that suppliers must adhere to. This harmonization ensures that information flows seamlessly between different layers of the supply chain, facilitating effective communication and decision-making. It enables suppliers and OEMs to have a unified understanding of performance metrics, quality standards, and compliance requirements, fostering collaboration and streamlining operations.

        Supporting the A&D supply chain ecosystem

        Capgemini with its depth and breadth of expertise, digital solution suite, and business solutions customized for the industry, we can enable the entire A&D Supply ecosystem – from the OEM across the multi-tier level shift to a smart, resilient, and robust sustainable future.

        Becoming a supplier for aerospace giants is a time-consuming process that involves meeting stringent criteria and demonstrating the ability to deliver high-quality products and services. Becoming a credible supply chain partner can take up to a year or more, requiring thorough preparation and adherence to specific requirements.

        Per the CRI report on Intelligent Supply Chain, Capgemini provides valuable support to aspiring suppliers navigating the complex process of becoming aerospace suppliers.” Achieving organizational supply chain transformation will be multifaceted. It will entail changes in technology, governance, capabilities, extended ecosystems, collaboration, and economic models for organizations.” These consulting solutions guide suppliers in meeting necessary requirements, developing robust processes, obtaining certifications, and establishing essential systems and documentation. Consultants leverage their expertise to accelerate the journey of aspiring suppliers toward becoming capable partners for aerospace giants.

        Consulting firms also focus on supporting struggling markets within the aerospace industry. By targeting regions with limited resources or expertise, they provide assistance to aspiring suppliers in overcoming barriers and developing the necessary capabilities to participate in the aerospace supply chain. This support includes sharing best practices, offering training and education, and facilitating access to resources and networks. Through these initiatives, consulting firms foster inclusivity, expand the pool of qualified suppliers, and contribute to the growth and sustainability of the aerospace industry.

        Key takeaways and The Paris Air Show

        As the aerospace and defense industry moves forward, it is essential to recognize that the challenges and transformations in supply chain management are not temporary. They are shaping the industry’s future and will continue to influence how companies operate and compete in the years to come.

        Looking ahead, the focus on supply chain resilience will remain critical. The ability to anticipate and adapt to market fluctuations, geopolitical shifts, and disruptive events will separate the leaders from the rest.

        Capgemini at Paris Air Show 2023

        Bring your vision into focus

        Meet our expert

        Shobha Kulavil

        Vice President, Aerospace & Defense Leader, Capgemini India
        An award winning aerospace professional, Shobha has held multiple leadership roles in the Aerospace & Defence, Energy and Railways sectors. Her experience in the A&D industry spans across key domains like aerostructures, aero-systems, avionics, aircraft engines, aftermarket. In her role at Capgemini, she brings thought leadership from India to drive the definition of industry strategy and its execution to deliver greater value to our A&D clients.

          Catching Up with Capgemini Alums: Andrew Sartorius

          Capgemini
          Capgemini
          14 Jun 2023

          Biography:

          Andrew Sartorius is Director of Salesforce Solutions at HigherEchelon, a Service-Disabled, Veteran-Owned Small Business (SDVOSB) headquartered in Huntsville, Alabama. He was previously a Manager on the Defense Markets team at Capgemini Government Solutions from 2019 to 2022. He spent his early career working in the financial-services industry. He has a Master in Strategic Studies from Johns Hopkins School of Advanced International Studies and a BA from the School of Public and International Affairs at Princeton University.

          1. Tell us about your role as a Salesforce Solutions Director at HigherEchelon. Would you say the experience you gained at CGS was a big factor in moving into your new position? 

          As Director of Salesforce Solutions at HigherEchelon, I’m responsible for all business development, capture, and solutioning for our federal and commercial Salesforce practice. We are a small business with a rapidly growing footprint in the Salesforce ecosystem, so you can imagine it’s a lot of work to manage our pipeline and grow our business! It’s been exciting to see all the progress we’ve made in the year that I’ve been leading our Salesforce business-development efforts.

          I was able to make this big move in my career due to the hands-on Salesforce and business-development experience I gained at CGS. Working on both the delivery and business-development sides of the business helped prepare me for the role and mindset needed to succeed in a small-business environment. 

          2. Could you share your most significant accomplishment in your career at CGS and how you achieved it?

          My biggest accomplishment at CGS was the hands-on project work I did for the Navy Reserve from 2019 to 2020. I was on a very small project team (shout out to Alex Rulon and Elise Spengler!) that rapidly developed 10 Salesforce applications in a single calendar year. We had the opportunity to demo our applications to top Navy Reserve leadership and transitioned seamlessly to a totally remote environment during the start of the pandemic. I learned so much about Salesforce implementation projects and best practices from that project, and I’ve been able to apply many of those lessons learned to subsequent projects in my career.

          3. What is the best career decision you’ve ever made?

          My best career decision was taking a two-year break from the workforce in my mid-20s to pursue a full-time Master’s degree. I went to Johns Hopkins School of Advanced International Studies in Washington, D.C., and specialized in International Economics/Strategic Studies. Getting my Master’s degree was a great opportunity to evaluate my career path and pursue areas of interest I didn’t have the chance to study as an undergrad. Coming out of grad school, I had a much better idea of where I wanted to take my career.

          4. Would you say that CGS is a good place to work and get the experience to broaden your career opportunities?

          Yes, CGS was a great place for me to learn the fundamentals of the federal contracting industry. I had the opportunity to learn a number of different technologies during my time at CGS, from data analytics tools like Power BI and Tableau to no-code/low-code platforms like Salesforce and Microsoft Power Platform. 

          5. Any hobbies and weekend activities?

          Yes! I am a big runner and outdoor enthusiast (bike riding, hiking, etc.). I will be running the Army Ten-Miler in D.C. in October and have started to train for that. It would be great to see CGS alums and current employees there!

          RAN intelligent controller – the innovation engine in O-RAN

          Ashish Yadav
          14 June 2023

          As the innovation engine of O-RAN, the RAN Intelligent Controller (RIC) enables intelligence and pushes limits with xApps and rApps.

          RIC can collate data and decisions from multiple sites and provide insights to Mac, allowing Mac to make better decisions about resource allocations. This has resulted in increased efficiency in network usage by minimizing interference.

          In a more formal definition, RIC is an essential 5G network architecture element responsible for facilitating network intelligence, flexibility, and optimization. Separating control plane functions from the base station hardware and centralizing them in a software-defined and cloud-native environment greatly enhances the Radio Access Network (RAN) capabilities.

          RIC addresses several challenges of deploying and operating 5G networks.

          Network optimization:

          5G networks introduce complex requirements such as high data rates, low latency, and massive device connectivity. RIC employs real-time network data collection, analytics, and optimization algorithms to optimize the network dynamically. It can intelligently allocate radio resources, manage interference, and adjust network parameters to ensure efficient resource utilization and optimal network performance.

          Vodafone, Capgemini, VMware, Intel, TIP (Telecom Infra Project) ran a trial with the Cohere RIC xApp to improve the spectral efficiency of the network with the Cohere xApp running on VMware RIC. The xApp increased spectral efficiency by 2x.

          More details about the trial are available here.

          Intelligent traffic steering

          Efficient traffic steering has long been a challenge in wireless networks, and 3GPP and other organizations have proposed numerous solutions. The key challenge is that typical traffic steering schemes use the radio conditions of a cell by treating all users of that cell in the same way. Hence, these schemes can only adjust cell priorities and handover thresholds. The O-RAN-based RIC application can handle traffic steering by adopting UE-centric strategies and ensuring proactive optimization by predicting network conditions and allowing MNOs to specify different objectives for traffic management depending on the scenario. It can then flexibly configure optimization policies.

          The Capgemini traffic steering xApp was developed by adopting the ORAN-based approach of UE-centric strategies. A trial of the xApp conducted with Viavi RIC Test in ORAN Plugfest showed that Capgemini’s Traffic Steering xApp, running on the Capgemini RIC, could significantly improve the UE throughput by optimally re-selecting the appropriate cell for UE handover. 

          Interoperability and open interfaces:

          Traditionally, RAN solutions have been proprietary and vendor-specific, leading to limited interoperability and vendor lock-in. The RIC architecture promotes an open ecosystem through standardized interfaces, such as the E2 interface, O1 Interface, etc., which ORAN specifications define. This enables multi-vendor interoperability, allowing operators to mix and match components from different vendors. The RIC, combined with SMO, acts as a control and management layer, abstracting the underlying hardware and facilitating seamless integration of diverse RAN elements.

          Flexibility and scalability:

          As a software-defined component, the RIC adds flexibility and scalability to the RAN. It allows operators to create virtual network instances tailored to specific applications or user groups through dynamic network slicing. By managing resources centrally and orchestrating them dynamically, the RIC helps efficiently allocate network capacity based on demand, ensuring scalability and adaptability.

          Capgemini participated in the O-RAN Global Plugfest Fall 2022 in Europe hosted by Deutsche Telekom, EANTC, EURECOM, Orange, TIM, Vodafone, BT, and the Telecom Infra Project (TIP) which focused on:

          • Conformance testing of open fronthaul interface of O-RU and O-DU
          • End-to-end multi-vendor integration with functional and performance testing
          • xApps/rApps integration with near/non-RT RICs and xApps/rApps functional verification
          • O-Cloud platform performance testing.

          More details here.

          These trials, together with Plugfest, pave the way for accepting RIC as an essential part of the RAN optimization journey.

          Energy efficiency and saving operational costs:

          Operators have to meet stringent energy efficiency goals by 2030. RIC xApps and rApps are developing innovative solutions that help reduce energy bills. Capgemini’s energy-efficiency rApp/xApp is being deployed under trial in an operator-live network in Europe, and it has already shown more than 10% savings in energy. The xApp brings us closer to reaching the EU green earth goals and, in the process, also saves operational costs for the operators who spend billions of dollars every year on energy bills.

          Network slicing management and edge orchestration:

          Network slicing is a fundamental concept in 5G that enables the creation of virtual network instances with tailored characteristics. The RIC applications (xApp/rApp) act as key components in managing network slicing by orchestrating the allocation of resources, enforcing service-level agreements, and dynamically adjusting network parameters. This enables operators to offer differentiated services, allocate resources on demand, and support diverse use cases while ensuring isolation and quality of service.

          More details here.

          Enabling automation and self-healing:

          As 5G networks become more complex, automation is essential for efficient operations. RIC utilizes advanced analytics, machine learning, and AI techniques to automate network optimization, resource management, and fault detection. It can detect network anomalies, proactively address issues, and even self-heal by dynamically reconfiguring the network to ensure continuous service availability and quality.

          Conclusion:

          The RAN Intelligent Controller has the capability to tackle a range of challenges and bolster 5G networks by delivering the necessary intelligence, flexibility, and management capabilities. It can optimize network performance, facilitate diverse services, promote multi-vendor interoperability, and automate network opera.

          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.

          Glossary:

          UE – User Equipment
          SMO – Service Management and Orchestration
          Mac – Sublayer of 5G that maps information between logical and transport channels. RLC layer from above and PHY layer from below.

          Author

          Ashish Yadav

          Head of Strategic Partnerships and Technical Product Management, Software Frameworks & Solutions, Capgemini Engineering
          Ashish Yadav is a leader with more than 20 years of engineering experience, managing strategic partnerships for start-ups and Fortune 500 global technology companies. In her current role, she is responsible for global strategic partnership alliances and technical product marketing for the Software Frameworks & Solutions portfolio at Capgemini. This group is responsible for building innovative offerings in the area of 5G, networking, cloud/Edge and the automotive sector.

            Omnisumers: The future of active energy consumption

            Capgemini
            Capgemini
            14 Jun 2023

            As the energy industry navigates the energy transition, we hope to create a world in which energy is available, affordable and clean by the 2030s. At Capgemini we want to envision this world. The rich and diverse opportunities the energy transition will enable across every geography and within every community. The new value opportunities, the economic and societal prosperity, and the reimagining of the energy industry as a whole.

            Revolutionizing Energy Consumption: How Omnisumers Are Leading the Way

            By the 2030s, a new type of energy customer is sweeping across Western Europe: the active omnisumer. The omnisumer is defined as a person or business who participates in a dynamic energy ecosystem across various solutions, products and providers. Historically, the relationship between energy provider and consumer was passive, disengaged and one-way. Energy was a commodity, delivered to consumers from unknown, high-carbon sources with prices dictated by set tariffs. In the 2030s, the energy ecosystem is transformed. Growing concern around energy consumption and its impact, both financial and environmental, led to consumers demanding control. Energy providers had to fundamentally reshape their relationship with customers.

            The top-down power dynamic has been replaced by a more equal, choice-based relationship. Energy providers must be responsive to a paradigm where the majority of consumers are omnisumers: aware of their personal energy footprint and taking active action to manage it within a dynamic, diverse ecosystem. In the 2030’s blockchain-enabled, highly fragmented marketplace it’s not enough to simply sell new units of energy. Energy is no longer a commodity but a service. A highly personalized service that deeply understands its customers, engages with their lifestyle and needs, and enables them to easily exchange value and make informed decisions. To achieve this, energy companies have built complex partnership ecosystems with technology companies, automotive manufacturers and power generators – all geared to empower the omnisumer. Simplicity and control are at the heart of the omnisumer’s behavior and underpin the three key themes which have enabled the omnisumer’s rise: more choice, digitization, and self-generation.

            My energy, my way

            Being an omnisumer is not simply about choosing to use less energy, it’s about choosing which energy you want to use. As self-generation technologies and micro-grids have become more available – increasingly democratized due to government schemes and financing options – people can choose between the national grid or their own home to avoid spikes and congestion. As energy has moved from commodity to service, the market has become segmented by price preference. Some consumers still view energy as a commodity, wanting the cheapest available regardless of its source, but desire the extra flexibility to help them save money. Others want maximum comfort with minimum trouble – they are motivated less by the environmental impact, more by the advancements in digital apps and tech and are willing to pay  a premium for a high-end service. Enabled by blockchain technology, energy becomes highly traceable. Consumers track the energy they use from its source, empowering them to care more deeply about its origin. Local energy producers build meaningful relationships with their customers, sharing news, photos and updates, to keep them engaged and loyal; increasingly more people have shares in local energy production, making them both customer and investor. By embracing the shift to localized, distributed energy, utilities companies embed themselves in communities’ and individuals’ wider daily lives. Every omnisumer has a different relationship with energy built on a unique, diverse ecosystem of providers and products. But the crux of being an omnisumer is universal: making active choices to ensure they get the energy they want, the way they want it.

            A digitized, tailored industry

            Digitization has transformed the world of energy. It’s enabled the energy industry to become more connected and intelligent. Smart meters offer omnisumers access to rich data and actionable insights about their energy habits. Managed through easily navigable AI-powered mobile apps, consumers monitor connected appliances in real-time. From energy insights such as peer-to-peer and carbon footprint recommendations, to appliance health checks and safety alerts. Energy providers leverage this influx of data to deliver highly tailored products and services at an industrial scale. From learning the customer’s patterns of behaviors, energy companies optimize their offering to each individual. Leading energy providers act as the single broker for their customers’ entire energy ecosystem, from providing e-mobility services to leasing domestic renewable energy technologies. Partnerships with other service providers, such as EV charging stations, build a holistic interconnected offering that serves every need.

            Digitization also helps the omnisumers of the 2030s optimize their energy costs by making it easy to get closer to nature. AI software tracks the ebbs and flows of renewable energy output and advises the consumer via their mobile app when to use high-energy appliances, such as charging their EV or using the washing machine at night when energy costs are lower. Time-of-use, dynamic tariffs also notify consumers of negative price plunges, enabling them to be paid to use electricity when demand is low, or the grid is oversupplied by renewable power. If they have personal batteries, it automatically optimizes the charging and usage of this battery power based not only on the output variation but on the consumer’s lifestyle. The software can intimately learn the consumer’s habits and routines and adapt their energy consumption accordingly, for example if they regularly need to drive at nighttime and therefore can’t charge overnight. Thanks to digitization and intuitive UX, omnisumers don’t need to have in-depth knowledge of energy in order to have an active relationship with it. Digital technologies level the playing field for everyone and makes it easy to consume energy in a more considered, efficient and ultimately cheaper way. Energy service providers have the opportunity to differentiate themselves from the competition by optimizing an individual’s energy needs and providing them with the best algorithms and offers aligned with their consumption habits.

            Powering independence with self-consumption

            For many, being an omnisumer revolves around reduced costs. They want insight and control over what they’re spending and how. But as technologies such as battery storage and electric vehicles become more ubiquitous and therefore more affordable, and as the energy conversation continues to permeate the mainstream, more and more consumers are investing in self-generation. 100 million households around the world rely on solar PV. 65% of Western Europe’s car sales in 2030 are battery electric vehicles. The shift to renewable energy has heightened its localism. Local government plays a key role in renewable generation as planning authorities, as well as promoting self-generation technologies via subsidies. Omnisumers may choose to grid-share and be part of a local community collective of domestic solar installations and batteries. By the 2030s, there will be energy services built into new multiple occupancy developments, as well as community-based energy storage solutions such as batteries that serve an entire village. Alternatively, omnisumers may keep a private closed circuit of energy, any surplus of which their energy provider helps them sell back to the grid at the best rates. Some consumers are becoming ever more independent prosumers; they’ve transitioned from simply being a buyer to becoming an interwoven player in the energy ecosystem. The opportunity for energy providers lies in enabling this transition for all by successfully simplifying the complexity and making consumers feel rewarded and engaged in their energy interactions.

            Lighting the way for the omnisumer

            The rise of the omnisumer sparks deeper, active customer relationships that facilitate grid management and open up new commercial models and social valorization. These models create greater value connections and avoid commoditization – a total transformation of the role of energy companies in the eyes of the customer. With increased control comes trust, loyalty and empowerment. The omnisumer is motivated not only by cost, but by a sense of purpose. Their relationship with energy is governed by simple yet sophisticated end-to-end solution s that work to help them save money, time and the planet simultaneously. They can easily choose and control the energy they want, the way they want it – all enabled by the new energy ecosystem and its innovative technologies.

            Sustainable packaging: a critical part of your green credentials

            Maryem Sahnoun
            7 June 2023
            capgemini-engineering

            Packaging is the window to the product. It shapes buying decisions, and provides vital information. It protects the product, ensuring happy customers, and minimising returns and waste. Perhaps most importantly in the current age, the choice of packaging shows a company’s commitment to sustainability.

            In recent years, sustainability has moved from a premium offering for conscientious customers, to an essential element of all packaging. Consumers will increasingly pay more for products with sustainable packaging, regulations on packaging sustainability are likely to become stricter, and of course, it is the right thing to do for the environment. Promisingly, most companies seem to agree, with industry giants such as Unilever and P&G making bold commitments on sustainable packaging in recent years.

            The opportunities and challenges of sustainable packaging

            Sustainable packaging means reducing the environmental impact of the packaging. This can come from new materials which are recycled, recyclable, or biodegradable. Last year’s Packaging Sustainability Awards saw gongs go to cardboard made from leftover barley straw, mono-material plastics which improve recyclability, and water-based inks.

            It can also come from redesigning packaging to reduce materials – Pilgrim’s Choice Cheddar made a big deal of its 40% reduction in packaging by wrapping its cheese snuggly, rather than in a loose bag.

            And the latest trend is to design packaging to be continuously reusable and refillable, eliminating (most) waste altogether.

            Although sustainable packaging is a long run trend, there is still plenty of room for improvement, with many goods still using unsustainable packaging, and even the leaders having room to improve through new packaging innovations.

            But nothing is ever simple. Packaging already constitutes around 9% of the product’s total cost.  Reducing packaging can save money, but replacing it with sustainable alternatives will likely add costs, at least in the short term.

            Sustainable packaging may also come with design trade-offs. New materials, fewer layers, and sustainable inks may not offer the same opportunities for bold colours and 3D shapes as plastics and synthetic dyes.

            But problems can be opportunities. Sustainable packaging presents an opportunity to differentiate and win new customers, in a world where company ethics matter more than brand loyalty. And new material innovations create new aesthetics, that may come to be seen as more modern than today’s in-your-face brands.

            Nonetheless, business is business, and cost is still a big customer concern. So all of this needs to be done whilst keeping cost to a minimum. How do we do that?

            Embedding sustainability into packaging design and engineering

            CPG companies need to embed sustainability in their packaging development process, whilst also ensuring it can be delivered at scale and cost-effectively. That means adopting a number of processes and skills.

            It needs design and simulation to model new sustainable packaging designs, which balance sustainability with other factors such as visual appeal, transportation, protective value, manufacturing costs, and so on. When moving to whole new types of packaging, this is an essential first step to derisk decisions.

            Then it needs expertise in material selection, synthesis and formulation to choose or create the optimal packaging and ink materials for your product’s needs. And in designing the optimal manufacturing processes to produce it at scale.

            All of this can be optimised through computer-aided engineering, simulation, and analysis. Such digital tools help speed innovation, but cannot provide all the answers, so physical testing is also critical throughout the development process to test products, validate designs and feed back into simulations.

            All materials have some environmental footprint, so the packaging must also minimise lifetime impact. That means modelling what its production and use looks like in the real world, understanding the resources required to produce it at scale, the manufacturing processes, and the transport implications. Sometimes a piece of packaging that looks sustainable in the lab, suddenly looks less sustainable when you see how many can fit in a truck, or where critical raw materials come from. Understanding these real-world impacts allows you to tweak designs to ensure the right balance of both lifetime sustainability and cost.

            Finally, a relatively new area of sustainable packaging is reuse. Not all packaging will take this route, but it is increasingly popular to design packaging that is intended to be refilled, either by the product’s manufacturer, or by the user at dedicated refill stations. Companies pursuing this approach need to setup processes for managing their recirculating packaging, such as trackable containers, asset management systems, and analytics.

            Conclusion

            Sustainable packaging is not a one-off project. Things change. Today’s cutting-edge sustainability may look dated in five years. Sustainability must become deeply embedded within ongoing innovation. That means embracing all of the above as part of a continuous and agile development process. It is vital to take this end-to-end approach to enable ongoing sustainable packaging innovation whilst keeping cost manageable.

            How Capgemini can help

            Our end-to-end packaging approach creates a seamless experience for clients. Our team combines packaging design, sustainable materials development, optimization of primary, secondary and tertiary packaging levels and different packaging types (eg. steel, plastic, cardboard, wood, foam), and technological and engineering expertise. We consider all elements of packaging to ensure packaging is optimized for sustainability, whilst also protecting the product during shipping and handling, and enhancing its appeal and value.

            Maryem Sahnoun

            Sustainability Senior Specialist, Capgemini Engineering
            Expert in developing sustainable packaging solutions that balance economic, environmental and social considerations. Adept at collaborating with cross-functional teams and managing complex projects from concept to launch. She is committed to driving positive impact and creating a more sustainable future for all.

              How the benefits of FinOps go beyond balancing the books for financial services

              benefits of FinOps
              Tanya Anand
              12 Jun 2023
              capgemini-invent

              Is there more to FinOps than cost reduction for financial services organizations? Our FinOps experts share their perspectives from their firsthand experience.

              In recent years, the financial services sector has seen an increase in the pace of digitization. This is a reaction to the demands of the omnichannel customer and the need to compete with FinTech challengers whilst maintaining a cost discipline. Cloud transformation has been a key pillar of digitization for many of these organizations, leading to a mix of hybrid and multi-cloud environments.

              Throughout the past few years, increased cost consciousness amongst financial services companies and a lower appetite for risk have meant that organizations are reducing their technology investments and reprioritizing their technology portfolio. It is in this climate that the cost of cloud computing has taken a number of organizations by surprise. As a result, many CIOs, COOs, and CFOs are now turning to FinOps to help reduce the cost of their cloud spends. A recent survey indicated 31% organizations have a cloud spend over $12 million per annum.[1] FinOps is an operational framework as well as a shift in both culture and mindset, enabling organizations to maximize the value of cloud investments.[2] However, when FinOps is not approached strategically, it fails to deliver sustainable cost and business benefits that CXOs need now more than ever. In this blog, our Capgemini Cloud Advisory and FinOps experts share some lessons learned from their experience with FinOps implementation and share practical solutions for FS CIOs, COOs, and CFOs to consider in their FinOps transformation journey.

              What is the business case for FinOps?

              Ewan MacLeod, who has been part of several FinOps setups with financial services clients, describes how enterprises often start their journey to cloud computing by assuming that replicating their IT environment in the cloud will result in cost savings.

              “Most organizations will overspend on cloud solutions if they do not adopt the right FinOps thinking right from the start. Early adoption is key to the business sustainability of a cloud-based organization.”

              Vikram Rajan, VP at Capgemini for Cloud Advisory Services for financial services organizations, agrees:

              “Even if an organization does not have a significant cloud spend today, they should establish the FinOps thinking early on. This is to ensure that teams are proactively making cost-conscious decisions and do need to go into fire-fighting mode against wasted cloud spend.”

              Our experts unanimously challenge the myth that FinOps is mainly utilized to achieve cost reductions.

              FinOps enables an organization to answer two key questions:

              FinOps provides greater transparency of which department, project, and team the cost should be allocated to.

              FinOps enables the organization to tie the spending back to business benefits and, in many cases, maximize business value at the unit spend level. For instance, onboarding a new customer may have an instance cost of $10 per customer.

              Elaborating on the above $10 per customer example, Ewan believes the benefits of FinOps for onboarding are self-evident:

              “When you can onboard 1,000 customers quicker due to being on the cloud, you can trace the value of a $10,000 spend and justify the cost.”

              FinOps thereby facilitates greater flexibility and agility for investments in cloud computing. It enables organizations to think in terms of how to be flexible over how they spend, how and when they should shut resources down, how long they need an environment for, and what the working hours for that environment should be.

              In Vikram’s experience, FinOps can prove pivotal for high-value product lines:

              “Where organizations have products delivering value in hundreds of millions of dollars, they are looking to improve the accuracy of forecasts and predictability of spends to manage their platform/products’ scalability.”

              Lokesh Sah, a Cloud Advisory specialist at Capgemini, is also quick to point out that FinOps insights can also enable organizations to develop operational improvements, such as developing a cloud data archiving policy to manage data storage costs, which then helps with cost avoidance and improves data efficiencies.

              Our experts emphasize that the business case for FinOps programs appears to be straightforward:

              ‘FinOps pays for itself by accelerating the business benefits, such as improved cost management, value maximization, agility, and scalability.’

              benefits of FinOps for financial services

              Is it too late to adopt FinOps if your organization has already started its cloud transformation without it?

              In a perfect world, organizations would have incorporated FinOps at the start of their cloud transformation journey, but Ewan has good news for those organizations who didn’t:

              “It’s never too late. It’s like tackling your credit card spending. From the point at which you start auditing your spending, you can identify the overspending and savings and redirect them to a holiday or a car purchase or back to your cashflows. In the case of FinOps, I would say the sooner an organization adopts it in the right way, the better, but it’s never too late.”


              1 Flexera (2023) 2023 State of the Cloud Report; 2 Capgemini (2023) The Rise of FinOps; 3 Sarrazin, T. (2023) The Secret to Successful FinOps

              Explore our services and recent thought leadership for FinOps

              Contributors

                h2 – The future of automotive fuel

                Anuraag Bharadwaj
                6 Jun 2023

                Why hydrogen and how to implement it?

                This article explains why hydrogen is the best option for the future and lays out a basic approach for attaining a hydrogen economy.

                Underpinned by a global shift towards decarbonization, hydrogen is gaining significance as an energy vector, especially for high-emission sectors that do not use electricity directly. Our research (Capgemini Research Institute Report – Low-Carbon Hydrogen: A Path to a Greener Future) suggests that a majority (64%) of E&U organizations are planning to invest in low-carbon hydrogen (or green hydrogen) initiatives by 2030; and 9 in 10 plan to do so by 2050.

                On average, 0.4% of total annual revenue is earmarked for low-carbon hydrogen by E&U organizations. Investments are flowing in across the hydrogen value chain – especially into the development of cost-effective production technology (52% of organizations investing), electrolyzers and, fuel cells (45%), and hydrogen infrastructure (53%) to help create alternative revenue streams and aid in decarbonization efforts.

                For hydrogen production to be considered low-carbon, it must come under the EU’s proposed emissions threshold of 3.38 kg CO2 -equivalent per kg of hydrogen 5, which is 70% lower than that of the predefined fossil fuel comparator, including transport and other nonproduction emissions.

                Hydrogen adoption in the automotive industry

                There is a raging discussion about hydrogen adoption in the automotive industry today. Questions start with the very generation of hydrogen (source of generation, cost of generation, energy density, transportation) to issues relating to energy transformation (electric to potential (hydrogen) to electric (FCV), loss during these conversions, etc.)

                The current cost of hydrogen generation is USD0.5–USD8/kg (depending on the process) and primary sources of generation include coal (black), crude (blue), and electrolysis (green). Today, most production is the B2 (square) type, which is derived either from carbon or crude.

                Currently, this type of hydrogen is generally used as a reducing agent in industrial manufacturing. Demand is limited and therefore production and associated costs remain high. Moreover, CO2 emissions per kg of hydrogen are very high and while this could probably be justified in cases calling for the specialized use of hydrogen, the story changes when it is looked at as fuel.

                Types of Hydrogen
                Types of Hydrogen

                Coal is burned to generate methane and from there, hydrogen is generated. Alternatively, it can be the product of the fractional distillation of crude. In either case, consuming fuel to generate another fuel does little to solve the problem of CO2 emissions. Generating emissions to create an emission-free fuel that will have no emissions defeats the entire purpose of an alternate fuel.

                Thus, as an automotive fuel, only green hydrogen can be useful in reducing emissions and achieving carbon neutrality. However, this green hydrogen must be generated using electricity from alternate/renewable sources (solar, wind, hydro, biomass).

                If we want hydrogen to be a viable fuel in the automobile industry, we need to ensure uninterrupted availability and extensive distribution capabilities.

                But let’s first revisit the concept of energy transformation (transmutation) in an automobile. An automobile carries energy as potential energy. It moves when potential energy is transformed by combustion (gasoline/natural gas in ICE) or magnetic induction (electric charge stored in EV batteries), into kinetic energy. Thus, a good fuel carries more potential energy per kg of its weight. Let’s see where hydrogen stands in this aspect.

                Transformation of hydrogen - From source to automobile
                Transformation of hydrogen – From source to automobile

                There are four cost-input points and emission-generation points. To make hydrogen cost-effective and usable as fuel while achieving emission neutrality, we need to analyze inputs and outputs at these four stages.

                As discussed earlier, B2 (squared) type hydrogen is not viable from either a cost or an emission perspective. Truly green hydrogen, however, is another matter.

                Green hydrogen is generated from hydrolysis, which requires two important components: water and electricity

                • Water – There is no need to use fresh water. Recycled water, methane-rich water (sewage, industrial waste), or even seawater can be used, serving the dual purpose of procuring hydrogen and reusing water. Moreover, if seawater is used, numerous mineral bi-products are created (Na, K, etc.).
                • Electricity – The idea of using electricity generated from fossil fuels (coal, gas) to create green hydrogen is pointless. Only renewable electricity (solar, wind, hydro, biomass – this one is very relevant for agrarian societies such as India, East Asia, Africa, Latin America, parts of the US, and Australia) should be used. This will increase the well-being of farmers by increasing their income while enabling the extraction of every last bit of energy from agricultural produce, thereby reducing the carbon footprint and achieving full circularity – sustainability.

                For green electricity, large solar farms can be established in coastal or desert locations with high solar radiation zones and wind farms can be constructed in hilly areas. Apart from the desert, anywhere there is sun and wind, there will also be water.  Therefore, to generate green hydrogen you would just have to establish hydrolysers.  

                The green hydrogen produced can be transported through pipelines and distributed just like LNG. Farmers have biomass, water, and solar panels to generate electricity; they use electricity to generate H2 by electrolysis; they compress it in compressors that run on green electricity; and supply H2 for transportation.

                Having established that H2 is a better fuel due to its high heating value and discussed how green hydrogen can be generated, the next question is what technology should be used to convert this hydrogen back into kinetic energy to drive automotive.

                What will be the cost of such technologies and where will they be effective – i.e., the cost-benefit conundrum? Given hydrogen’s better fuel capability, it would be more effective in commercial transportation, which utilizes heavy equipment such as HCV, trains, heavy earth movers, ships etc. In this context, it would be generally safe to consider hydrogen as a replacement for diesel/CNG engines.

                There are two technologies to do this:

                1. Fuel cell: A fuel cell acts like an engine that converts H2 into electricity and that electricity drives the electric motor to achieve locomotion. Fuel cell technology uses polymer and platinum, making it expensive, however, research into developing ceramic membranes is currently underway.
                2. Hydrogen ICE: Internal combustion engines would be used to burn H2 instead of gasoline or CNG and produce water vapour and NO2 as emissions. Such engines are easy to modify and easy to operate because distribution networks are already in place in various geographies, such as India.

                In conclusion, I am certain that H2 is not far away in areas spread up to 15⁰ on either side of the equator, where green hydrogen can easily be harnessed due to favourable climatic conditions and fuel cell technology can be used to drive automotive due to prevailing economic conditions.

                About Author

                Anuraag Bharadwaj

                VP, Head Automotive Industry Platform, Capgemini
                Anuraag Bharadwaj is Vice President, and Head of Automotive Industry Platform at Capgemini. He is an INSEAD alumni, and Digital Transformation Leader with 25 years of sales and delivery experience in Industrial & Automotive sectors. He provides thought leadership to automotive industry, predicts and deciphers new trend unfolding in Automotive Industry. He is an expert in IT/OT convergence, Supply Chain, Connected Vehicle, Quantum tech, and alternate fuels in automotive industry.