While there is a huge adoption of Generative AI across organizations and industries – our research reveals that over 95% of executives are engaged in Generative AI discussions in their boardrooms – we can observe clearly a shift in the way people perceive AI now.

I have been working in the field since many years, and the unprecedent enthusiasm around Gen AI is impressive – 74% of executives believe the benefits of generative AI outweigh the associated risks. Beyond the positive feedback around it, there is a massive need for information, education and guidance. Especially for organizations to successfully and responsibly implement Generative AI across their data value chain, considering ethics, privacy and security from the start.

However, when you leverage Generative AI in a secured and trusted environment the opportunities are immense. From tasks and workflow optimization, to content production, product innovation and R&D, it is revolutionizing the way we create, interact and collaborate, completely shifting the way organizations operate. What if you could as a CXOs leverage Gen AI, across your organization, in a safe, secured and controlled manner, to fit your business reality?

Part 1: Unlocking value from commerce with data

In my role as global Data and Analytics leader for Capgemini’s Consumer Products and Retail Sector, I often see business leaders having a blind spot when it comes to the increasing value of data in driving sales for their organization. So perhaps it is not surprising that so few of them know how to unlock this at scale within their companies.

Recently at the Consumer Goods Forum Global Summit in Kyoto, Nestlé’s global head of sales and customers, Jordi Bosch, made an inspiring statement, when he said: “Data and tech are the future of sales.”

In this three-part blog series, I will explore the implications of this statement for all consumer goods and retail companies as they strive to transform their sales and marketing organisations in this new, more data-driven era of commerce.

Data-driven transformation to channel-less commerce

Consumer behavior has undergone a permanent transformation, along with their expectations of the companies that serve them. Nestlé refers to this as “channel-less commerce” (others call it ‘Connected’ or ‘eco-system led’ Commerce) where consumer goods brands and retailers must be able to provide personally relevant and consistent experiences across an eco-system of owned and third-party channels and touchpoints.

On stage in Kyoto, my colleague Owen McCabe, who is supporting Nestlé in their transformation, presented the impact this has on companies, including different metrics (customer lifetime value) and next-levels of data capabilities (e.g. first-party data), in order to offset additional costs of customer acquisition and fulfilment.

Data flows to connect capabilities end-to-end

To thrive in this changing business model landscape, the consumer goods industry needs to master a new set of end-to-end capabilities turbo-powered by data. These can be split into front-end capabilities such as search and merchandising, personalized content generation, integrated marketing automation, comprehensive product information, dynamic pricing and promotions and channel-less carts and checkout experiences.

These front-end capabilities must then seamlessly align with back-end capabilities like inventory and order management, last-mile logistics and fulfilment, customer management and loyalty, risk management, customer service, and sales management. All functions must be rewired to work together as one demand-team, in effective collaboration with selected eco-system partners. With data as the ‘electric current’ flowing ‘end-to-end’, powering the organisation to meet consumer expectations.

Data value: Benefits for all

What I often find when working with clients, is that ultimately those who best leverage the data are those who best understand the value of the data. Specifically, by linking that data to the concrete business benefits it enables for consumers, retailers, consumer goods companies, and the wider ecosystem of value-chain partners. Consumers will see value when they get relevant inspiration, personalized experiences and can seamlessly shop across channels.

For companies, data value translates into growth, profitability, and customer satisfaction. By using data to understand consumer needs, companies can develop products and services that meet those needs, improve reach, engagement and conversion across channels (in collaboration with channel partners) and touchpoints, increase repeat purchases, and deliver on promises. Smart analytics play a crucial role in improving decision-making and optimizing the entire customer journey.

Does your organization leverage data to connect front-end and back-end operations in a seamless way, and does your organization truly understand the business benefits that such data can unlock?

Stay tuned for the second and third parts of this blog series, where I will delve deeper into data sources, data collaboration, predictive and generative analytics, data foundations, composable tech architectures, data cultures, and the transformational data journey.

The future of commerce is channel-less, and it’s essential for companies to embrace it. Stay tuned…

Data and AI are redefining both the broadcasting of rugby matches and the game itself – revolutionizing the fan experience, improving athlete performance, and developing women’s sports in the process. To take the pulse of this ongoing revolution, the Capgemini Research Institute has published the second edition of its report, A whole new ball game: Why sports tech is a game changer.

Does this mean that sport comes down to mathematics? What we can say for certain is that, for several years now, technology has been making inroads into all sports, for professionals and fans alike. The Capgemini Research Institute’s 2023 report, A whole new ball game: Why sports tech is a game changer, even underlines, with figures to back it up, that tech is transforming the experience of players and fans alike, both inside and outside stadiums. As a partner of World Rugby, the sport’s global governing body, Capgemini supports the organization’s digital transformation, enabling it to benefit from the latest technological innovations.

#1: Technology for improved performance

In rugby, as in other sports, digital technology is already improving the game and individual team performance with advances like body sensors to record players’ physiological data and game statistics transmitted in real time to coaches and television viewers. Today, thanks to new sources of data, but also artificial intelligence, data processing is becoming much more precise, refining the feedback of information in real time and even enabling predictions to be made. Clothing, smartwatches, heart rate monitors, virtual reality helmets, and connected mouthguards are tools that can be used to monitor players’ state of health, analyze playing technique, identify vulnerabilities, and even predict the outcome of a match.

Building on the Momentum Tracker solution, originally launched at the World Rugby Sevens Series in Dubai in 2020, we are now using artificial intelligence to measure the performance of men’s and women’s teams as well as their ability to improve during competition.

Momentum Tracker’s algorithm also provides each team’s coaching staff with reliable statistics on the performance of their opponents, enabling them to better guide their game strategy.

Data has also become an important management tool. It now lies at the heart of team management. In November 2022, the French Rugby Federation announced its partnership with an American data analytics company to bring together on a single platform the data collected over the last few years during international and top 14 matches. Still, this invaluable aid, which will be used by coaches to build their game strategy, does not replace the intuition and know-how of the experts who coach the French national team.

#2: Technology for better player health

Tech is also opening up new prospects for preventing injuries during games, which is of particular interest in contact sports such as rugby. Prevent Biometrics, an American company, has developed a connected mouthguard to capture the actual intensity of the impacts players undergo. All of this data, impossible to detect by human observation alone, enables players to be protected and for a library of data to be built up, with the aim of developing measures to protect and monitor players’ health. The system was tested by World Rugby at the Women’s Rugby World Cup in 2021.

#3: Technology for an enhanced fan experience

Technology is revolutionizing the fan experience both inside and outside the stadium.

The Capgemini Research Institute’s report reveals that almost 7 out of 10 sports fans prefer to watch a sports match outside the stadium if tech sufficiently enhances the viewing experience. Better camera angles, better broadcast quality, real-time statistics, and immersive experiences have profoundly transformed the fan experience outside stadiums. As a result, the number of spectators in stadiums has tended to decline over the last three years. While major international competitions are still very popular, this trend has seriously affected lower-level events. Responding to the question, “Have you attended a match in a stadium in the last 12 months?”, only 37% of fans surveyed answered in the affirmative in 2023, compared with 80% in the last quarter of 2019.

In response to this trend, and with a view to democratizing rugby, Capgemini is supporting World Rugby by developing innovative statistics with three objectives in mind: to provide live analysis of game phases and players, to help players understand the often complex rules, and to gamify the experience. Relying on data and artificial intelligence, new predictive statistics are being developed – for example, the percentage chance of scoring a try in a given type of situation, or even real-time victory predictions.

As these three examples show, technology has become omnipresent in sport. However, it still faces certain limits.

In stadiums, although technology has enabled several improvements to the fan experience (video replay, online drink ordering, information on previous matches thanks to apps, etc.), its use is still limited. On the one hand, this is due to the lack of connectivity in today’s stadiums, and, on the other, because the fans who attend matches also, above all, come to enjoy an atmosphere, an experience, and emotions that the screen can’t match yet, or may even hinder. So, while technology continually improves the spectator experience as well as play, there are still issues and use cases to be addressed.

The 2023 Rugby World Cup in France, which kicks off in September, will bring together fans from around the world, both at venues and on screens, to enjoy the game’s highest level of play, enabled by the most advanced technology. The tournament aims to offer spectators­ – veterans and novices alike – an unprecedented level of immersion during matches. I look forward to experiencing it.

As we approach the era of quantum advantage, where quantum computers outperform classical computers for specific tasks, exploring how we can harness the potential of quantum computing and algorithms for real-world applications becomes crucial.

Among the industries eagerly anticipating the impact of quantum computing, material science and drug discovery hold immense promise. However, transitioning from quantum computational advantage to practical implementation won’t be a walk in the park and will require addressing complementary challenges. Without dedicated research into practical applications, we risk having powerful quantum computers sitting idle while companies are still unprepared to adopt them.

This article will delve into the essential requirements for quantum computers and algorithms to become useful in these fields. It will highlight the significance of focused application research in driving advancements in quantum technology.

Unleashing quantum potential In material science and drug discovery

Material science, at the forefront of innovation, presents abundant opportunities for leveraging quantum computing. By delving into the atomic and molecular levels, material scientists strive to enhance properties and functionalities. Advanced alloys, nanomaterials or topological materials are just a few examples of materials defined by quantum behavior and therefore offer exciting avenues for exploration.

Another promising industry for a quantum advantage is the pharmaceutical industry. The industry faces significant challenges in the drug discovery process, with escalating costs and time requirements. Accelerating the virtual screening of potential drugs in an expanding chemical space is imperative.

Both industries are heavy users of molecular and material simulation. Approximate solutions like density functional theory (DFT) are invaluable for exploring and designing drugs and materials and can model many desired properties. However, other simulating other chemical features can be more challenging. In material science, for example—which approximates solutions of charge transfer processes, photochemical reactions and catalytic reactions—often fails to capture the underlying quantum physics determinative for the material’s behavior. In many cases, these characteristics are defined by electron dynamics and, in some cases, strong many-electron correlations, which is notoriously difficult for classical solvers.

This is where a potential quantum advantage comes in. As we scale up the power of quantum computers, simulating electron dynamics is one area in which scientists hope for a quantum computational advantage.

Still, material scientists and pharmaceuticals aspire to understand higher-level questions such as material behavior and performance or potency and selectivity of candidate drugs. Simulating electron dynamics for small systems alone is insufficient to answer these questions. On the other hand, the genuine quantum effects that determine the behavior of some materials or molecules make quantum computers an attractive tool. Therefore, we’ll likely need a combination of quantum and classical computers and solvers to answer these questions.

The urgent need for application research

To make quantum computers useful, despite all their limitations, we must emphasize the criticality of extensive application research. Applied research goes beyond developing isolated quantum algorithms. It focuses on identifying applications that can genuinely benefit from a quantum approach and integrating quantum technologies into existing computational workflows. Note that this will not be easy. It must deal with complex matters in an interdisciplinary environment of quantum information scientists, domain knowledge experts and business owners. It must deal with the limits of today’s quantum computers while building tomorrow’s applications, all with uncertain specifications and timelines.

However, if done well, it will usher companies into the era of quantum computing. It will allow companies to benefit from quantum computers as soon as they’re available. In the first place, by developing the right capabilities and knowledge. Given the steep and interdisciplinary learning curve, companies should expect several years before becoming quantum-ready.

However, with the high pace of current developments, that time might be now. Benefits go beyond capability and knowledge development, too. Essential technologies must be developed to integrate quantum computing into workflows. Additionally, application research serves as a compass for the quantum industry. By understanding the computational requirements companies face, they can influence the direction of research and guarantee systems support industry requirements.

Conclusion

As we inch closer to quantum advantage, the pressing question arises: How do we make quantum computing truly useful? While numerous companies are exploring quantum computing, the percentage of them publishing their findings remains minimal. This highlights the urgent need for dedicated teams comprised of chemists, material scientists and computational experts to bridge the gap between theoretical advancements and practical applications. If we want to prevent the transformative power of quantum computing from going unused while companies are still getting ready, then initiating application research today is key.

This article first appeared on Forbes.com

A Q&A with Vincent de Montalivet, Principal, Data for Net Zero offer leader, and Christopher Scheefer, Vice President, North American Lead for Intelligent Industry at Capgemini

The world’s manufacturers are more connected than ever, and they simply cannot afford to be at the mercy of unreliable, insecure supply chains. Yet supply chains are among the business operations most vulnerable to outside forces and the cost can be significant, ranging from lost sales and production time to lower brand image and increased difficulty in raising capital.

Insights derived from top-quality data can help manufacturers avoid disruptions in their supply chains – or at least mitigate the effects of climate change – by making these vital operations more sustainable.

Capgemini’s Vincent de Montalivet and Christopher Scheefer talk about how they help manufacturers leverage data to transform their operations. Here, they explain how the sustainable supply chain creates financial and operational advantages even as it reduces environmental impact and mitigates risk.

What is a sustainable supply chain? Is it one that’s environmentally responsible?

Vincent de Montalivet: Environmental excellence is certainly an important part of it. Consumers, investors, and regulators are increasingly concerned about carbon emissions and other environmental issues, and companies must respect and respond to those concerns. Green supply chains are particularly important as companies make net-zero commitments and need to track their emissions across their ecosystem and the life cycle of their products. But sustainability is more than just being green. What we’re really talking about is the transformation of the supply chain beyond its traditional role in which partners work with an enterprise to design and manufacture a product and then bring it to market. The sustainable supply chain encompasses that, but then expands to cover the entire lifecycle of the product in a way that reduces that product’s impact on the environment and minimizes risks to the business. It accounts for how a manufacturer’s decisions and activities impact climate change, but also how climate change impacts the organization – in terms of both financial and organizational risks.

Can you provide an example?

Christopher Scheefer: Sure. A manufacturer buys from a partner in its supply chain that experiences a chemical spill and has to suspend business while it addresses this. From an organizational perspective, the manufacturer needs to find a new source for that chemical so it can continue to operate. But that spill could also negatively impact the manufacturer’s brand because the manufacturer is associated with that supplier. It could also have financial implications – both in terms of sales but also in the form of making it harder to attract capital from investors who are increasingly concerned about environmental, social, and governance (ESG) issues. So it’s absolutely paramount that organizations include sustainable risk analysis in their network.

That’s a greatly expanded role for the traditional supply chain, isn’t it?

Scheefer: Absolutely. A supply chain has traditionally been treated as a means to manage disruptions – for example, those caused by the COVID-19 pandemic or by international conflicts – and, in legacy supply chains, the chief procurement officer would rank members of their network primarily on time, quality, and cost.

de Montalivet: We call those the currencies of a supply chain: they’re the main criteria that companies consider as they make decisions. Now, manufacturers need to add carbon as a currency. We’re witnessing increasing risks to supply chains arising from climate catastrophes and, as we look ahead, extreme weather events are only expected to grow more frequent and more severe. So there’s a real need for companies to make their supply chains more sustainable because that also means making them more resilient.

Scheefer: In the modern business environment,manufacturers must also deal with the rise of the circular economy. Chief procurement officers now must also manage reverse logistics – for example, they must figure out how to bring a product back into the company for reuse, refurbishment, or remanufacture after the customer is finished with it. And once the product has reached its end of life, companies must be able to determine its ultimate waste footprint in order to report on its environmental performance to shareholders, potential investors, and regulators.

Those are significant changes and the supply chain of today must look very different from those of the past. What does today’s supply chain look like?

Scheefer: From a technology perspective, a modern, sustainable supply chain is intelligent and connected. The intelligence provides the manufacturer with the ability to track the priority, the commitment, and the execution of sustainability for all its suppliers, globally, at any given time. In the past that would have been impossible – but now we can apply advanced, data-driven solutions employing artificial intelligence and other leading-edge technologies to the problem. It’s still a challenge – especially for enterprises that rely upon a globe-spanning network of suppliers and sub-suppliers, distributors, and other partners. But data mastery makes it viable.

de Montalivet: Connectivity is also important. It enables the manufacturer to manage the business in a way not previously possible. For example, the supply chain can now be connected to research and development, to ensure new product designs are more sustainable. It can be connected more deeply into manufacturing, where it will have an effect on new methods, new systems, and new machinery. And connectivity enables more sustainable sourcing through marketplaces that provide a true view of the supply chain network and a true view of the organization’s exposure. AI and analytics play huge roles in this because they’re critical technologies for assessing risk on the scale we’re describing. As an aside, it’s why AI is playing an increasingly vital role in the insurance industry as that sector comes to grips with the risks associated with climate change.

Can you provide some examples of how AI enables or enhances the sustainable supply chain?

de Montalivet: The Capgemini Research Institute has identified more than 70 AI-enabled use cases related to climate action. It focused on some of the top use cases for its report, Climate AI: How artificial intelligence can power your climate action strategy. For the manufacturing sector, these include tracking greenhouse gas emissions and tracing GHG leaks at industrial sites, and improving the energy efficiency of manufacturing facilities and industrial processes. Capgemini researchers also cited a number of use cases that have direct implications for the sector’s supply chains – including designing new products that reduce waste and emissions during prototyping, production, and use, improving demand planning, reducing the waste of raw materials, and route optimization and fleet management.

Scheefer: AI-derived insights are giving decision makers the information they need to transition manufacturing away from “make to stock,” in which a company creates products and warehouses them on the assumption that a customer, eventually, will want them. It facilitates “make to order,” in which the product isn’t produced until there’s a customer for it. This confers several advantages – including eliminating waste, reducing warehousing space, and making better use of a company’s workers. At the same time, better management allows the organization to reduce water use, energy consumption, and associated emissions. All of this has implications for the supply chain as well.

How are successful companies enabling their supply chains to become more sustainable?

de Montalivet: It may sound obvious, but if an organization can’t see all of the parameters across its supply chains in real time, it’s almost impossible to optimize them in a sustainable manner.So companies that already employ a logistics control tower are off to a good start. The control tower isn’t a new concept – it’s been around for years – but it’s essential to incorporate sustainability data into it.

Scheefer: Successful companies also recognize this is a journey. Once they’ve defined and implemented a sustainable supply chain, they can then start to apply data and analytics to continuously improve it. Capgemini offers solutions that help with this. Our Data for Net Zero solution enables organizations to master data from different sources and suppliers, then share it across their business functions and value chain. Meanwhile, our Sustainable AI solution ensures that employing the computational power of AI is itself accomplished in the most energy efficient, sustainable way possible.

You obviously believe a sustainable supply chain is essential. Why?

Scheefer: We do, because the supply chain is linked to so many other aspects of a business. Well-managed, sustainable supply chains have become a transformational agent and a necessary capability. It’s absolutely essential that a company has a sustainable supply chain strategy. If the chief procurement officer is not making their supply chains more sustainable, they’re losing out. Increasingly, it’s a license to operate and should be a corporate imperative.

Continue the conversation, get in touch with us:

Vincent de Montalivet, Principal, Data for Net Zero Offer Leader

Christopher Scheefer, Vice President, North American Lead for Intelligent Industry at Capgemini

Generation Z. Gen Z. “Zoomers”. Born between the late 1990s and early 2010s, Gen Z grew-up alongside smartphones, social media, and constant connectivity. They are the first digital-native generation, and they expect a consistent, seamless digital experience in every aspect of their lives. This has created a generational gap where technology is concerned, particularly with the “Baby Boomer” generation (born between 1946-1964), who are beginning to retire out of the market.

Technological upbringing isn’t the only thing that sets them apart. Gen Z favors lifestyle spending, or “soft saving”, over aggressive saving goals. This is in marked contrast with Millennials who prefer “FIRE” (Financial Independence, Retire Early) trends in saving. Going further, the “Zoomer” generation gravitates towards immediate gratification and, particularly, “Buy now, pay later” services.

Innovative intentions, inexperienced implementation

Gen Z is also beset by a very tumultuous financial world. Macroeconomic trends like inflated real estate and education prices form a tight market. When combined with their “soft saving” habits, this uncertainty creates a lack of confidence in terms of wealth and inheritance. This has, in turn, pushed Gen Z into entirely new avenues of finance.

Increased digitalization and the expectations for personalized engagements are the foundation for the innovations that Gen Z is driving. They prefer mobile apps and online solutions rather than traditional cash or card payments. Online success stories have bolstered Zoomer’s faith in cryptocurrency and “meme stocks”, or social media fueled investment campaigns. While innovative, this reveals Gen Z’s limited knowledge of financial products.

“Gen Z respondents averaged the lowest (43%) in answering finance-related questions correctly”
– TIAA Institute and the Global Financial Literacy Excellence Center at the George Washington University School of Business.

Moreover, by 2030, it is estimated that Gen Z will inherit around $30 trillion from their parents and grandparents. This incredible sum underlines them as a vital demographic for wealth management firms and banks.

So, how can they win over a generation raised on the internet, with shorter attention spans, high expectations in speed and personalization, and born into a very uncertain financial market?

Education and guidance

Gen Z will need trustworthy and agile financial advisors to help them manage their inheritance. Wealth management firms must offer educational resources that cover financial literacy, investment strategies, and responsible financial practices – and deliver all these articles, videos, webinars, and workshops in a way that connects and relates to Gen Z.

Financial planning for major life events

Pursuing higher education, starting careers, buying homes, and getting married are the kinds of life decisions that necessitate sound financial planning. Wealth managers play a crucial role by bridging the gap between Gen Z’s dreams and their financial reality.

Impact Investing and values-based decisions

Gen Z is a socially active generation. 92% believe that helping others in need is important and prefer to associate with brands that align with their beliefs. Wealth management firms will need to adapt and offer sustainable investing options, ESG-focused portfolios, and make ethical considerations a center-point of their overall strategy.

Digital natives require digital solutions

As the first digital-native generation, Gen Z expects personalized digital solutions, user-friendly interfaces, and digital offers that cater to their expectations and preferences.

Innovation and partnerships with FinTech

Fresh approaches are necessary to meet the unique demands of this generation. They expect continual innovation and settle only for leading-edge solutions. Wealth management firms and banks must differentiate themselves if they hope to capture Gen Z’s attention. Collaboration with FinTech and embracing new business models is an imperative.

What comes next?

It’s nothing new to suggest that every generation brings with them fresh ideas, new horizons, and changing expectations. Gen Z is no exception. This new generation of clients is just beginning their financial journeys, navigating a complex world, and bringing their values with them. Understanding this, wealth management firms and banks stand to not only form valuable partnerships but drive transformation across the industry.

What Gen Z need are trusted, experienced advisors that understand finance while bringing digital solutions to the table. Looking to the future, this is a trend that will only amplify with future generations as digitalization and enhanced personalization continues to develop and branch into ever-changing digital trends. Staying ahead, maintaining a fresh approach, and providing an open-minded network of support will ensure Gen Z’s loyalty for decades to come.

I was fascinated reading the insights from Capgemini’s new edition of #innovation publication, Data-powered Innovation Review – Wave VI.

Data makes us collaborate to better understand and act on market trends, consumer behavior, and business performance.

AI augments our abilities by helping us analyze vast amounts of data, make better predictions, and automate routine tasks.

Then there’s the continuous quest to activate data for #sustainability and building a better #society.

Download the report now and deep-dive into the fascinating world of data-powered innovation, where the possibilities are as vast and diverse as the coral reefs of the ocean.

Capgemini Ventures was featured in Le Point’s “Palmarès des inventeurs”, as our very own Dany Tello was a member of the jury for the second year.

They selected 100 French startups in quantum, AI, Climate Tech, Cybersecurity, Med/BioTech, AgriTech, SpaceTech, Web3… that are considered promising in 2023 and will change people’s lives for good.

Great to see (again) that Capgemini is collaborating with many in this list (PROMÉTHÉE Earth Intelligence, Ascendance Flight Technologies, WhiteLab Genomics, Yogosha, etc.).
 
We will continue to play our role in identifying tomorrow’s champions and being their growth and co-innovation partners to impact industries and societies at scale.

Telecom operators are looking for a cost-effective operational solution to provide #5G connectivity to enterprises.

Network slicing can deliver the needed QoS & security while providing simplified operations and at the scale of cloud.

Working with Telefonica, we at Capgemini have designed and implemented a proof-of-concept for an end-to-end network slicing solution entirely provisioned and managed from the cloud together with partners like Microsoft.

Intel Corporation provided on-prem infrastructure for virtualized baseband. We worked with Ciena / Blueplanet, Juniper Networks, and Casa Systems, Inc. to build this first of its kind multi-vendor disaggregated network slicing solution that softwarizes the network as much as possible and simplifies the operations, orchestrating the entire solution from cloud.

Together, we’ve shown that it’s possible to build a broad ecosystem that can overcome the challenges of network slicing using end-to-end automation. The goal was to build pre-integrated network blueprints that can significantly reduce the cost of new network planning, design, and test cycles.

Read our point of view, 7 lessons from our network slicing journey.

The biggest competitive advantage over other insurers? Flexibility.

We define Flexibility of an application as “readily capable to adapt to new, different, or changing requirements.” In a world that is rapidly changing, it’s the key competitive advantage to seize opportunities and overcome challenges. For an organization to be nimble and agile, its technology must be Flexible. Moving core insurance platforms to the cloud can help, and Guidewire Cloud does just that.

The criticality of flexibility

Business is changing, and the insurance industry is not immune to that change. Market dynamics are driving those changes:

• Pressure on profitable growth while overcoming climate change, inflation, increasing supply chain costs, geopolitics, and the aftereffects of the pandemic
• A volatile regulatory landscape around financial solvency requirements, cyber security, data privacy, artificial intelligence, climate change, and consumer protection
• Evolving customer expectations around personalization, human empathy, self-service capabilities, and enhanced digital and omnichannel experiences
• Increased competition and disruption from insurance startups, tech companies, non-insurance competitors, and embedded distribution models

With flexibility in their underlying architecture, insurers can adapt to change. New data sources may emerge to assess and price risk better, to make more informed underwriting decisions, and to increase automation across both underwriting and claims processing. New partnerships may develop where integration of applications, solutions, and technology needs to occur quickly, to add business value through additional capabilities.

Resetting your digital core to enable flexibility

Modernized self-managed core systems are often significant upgrades on legacy systems. However, their inherent architecture coupled with how insurers implemented them inhibits flexibility. Insurers typically implement an on-premises core system that is saddled with customization with limited thought around experience, digital capabilities, data capabilities, and process efficiency. The architecture itself is not nimble enough to add integrations and new functionality at speed and scale. So, how can insurers reset their path to value realization?

The best solution is to work alongside an experienced transformation partner who is able to give the strategic insight necessary to leverage cloud to get the flexibility that legacy and self-managed systems lack. This gives insurers a seamless transformation while receiving the best industry advice available. Consulting with expert opinion also builds collaboration in the market. When considering this transformation, it’s vital to ensure you have the right strategy in place first.

Cloud architecture has several key advantages: scalability, speed to market, and extensibility. It is the latter quality that enables and unlocks business value—the ability to add new capabilities through development on the cloud, regular updates from the software provider, and an ecosystem of strategic partners. The self-managed solution simply doesn’t have the same extensibility as a cloud-architected solution does.

The value proposition of Guidewire Cloud—recentering your transformation

Consequently, the shift to cloud-native services is no longer a question of IF, it’s a question of WHEN. Moving to a service like Guidewire Cloud will enable organizations to invest in differentiating capabilities that add business value instead of putting dollars into the core transactional systems. Guidewire has made massive investments in Guidewire Cloud and continues to push new features around content, application, and infrastructure multiple times a year. These features power a modern, reliable digital core so insurers can focus on capabilities that deliver engaging, efficient, and easy experiences to grow their business.

It’s an often-overused term, but Guidewire Cloud “future-proofs” your core system. It sets the foundation for you to enable future capabilities and answers the following questions:

• How might you enable a leading customer and employee experience?
• How might you reduce underwriting and claims cycle times?
• How might you enable next generation data and insights?
• How might you enable digital capabilities?
• How might you enable an ecosystem?

The way to maximize investment in a cloud service such as Guidewire Cloud is to leverage an experienced partner with not only the skills needed to implement core systems but also the experience in implementing cloud-based platforms using a SaaS model. Capgemini can uniquely transition insurers to Guidewire Cloud and optimize the core platform, all while providing the transformation architecture to ensure customers reach their transformational aspirations. By transitioning to Guidewire Cloud and externalizing custom functionality outside of insurance core systems, insurers will reduce complexity, limit the cost to run their transactional systems, and enable the extensibility needed to remain flexible. Capgemini, with flexibility powered by Guidewire Cloud, can equip insurers with the ability to adapt to change, quickly and nimbly, without the stress of losing focus on other priorities.