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1、#GetTheFutureYouWantthroughWHERE ARE ORGANIZATIONS INVESTING?advancing headwindsRESEARCH NOTEAs we step into 2023,boardroom discussions are focusing on economic downturn and the looming possibility of recession.As organizations battle rising prices,volatile supply chains,climate issues,talent scarci
2、ty,and the ongoing repercussions of the disruption caused by the pandemic,more than half(53 percent)of executives in our research describe a bleak economic outlook for the next 1218 months.Despite the general gloom,however,they are optimistic on resilience of their individual organizations.Many fore
3、see only a“short and mild”recession,from which they expect to bounce back quickly.Against this backdrop,we wanted to find out how organizations are managing costs while undertaking transformation of their portfolios.Specifically,we examine changing investment strategies in areas such as digital tran
4、sformation,supply chain,talent and skills,and sustainability.To do so,we surveyed executives from 2,000 unique organizations across 15 countries,in sectors such as automotive,consumer products,industrial and capital goods,banking,insurance,retail,energy and utilities,public sector,life sciences and
5、healthcare,telecom,media,and hi-tech manufacturing.To complement the quantitative insights,we also conducted in-depth interviews with senior executives across sectors.(Please refer to the methodology for more details on the survey.)Introduction Organizations remain confident of recovery,despite ongo
6、ing economic uncertainty2Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTEDrawing on this extensive research,we have identified a number of critical themes:Organizations remain confident of recovery,despite ongoing economic uncertaintyAs org
7、anizations become more cost-conscious,they are taking a watch-and-wait approach to investment in the next 1218 months:In light of persistent supply-chain disruption,supply-chain diversification and digitization are priorities for a majority of organizationsAs organizations look at driving efficienci
8、es and savings,we expect technology investment to increase for nearly 40 percent of organizations0102of organizations plan to increase investment in sustainability in the next 1218 months33%of organizations plan to increase investment in technology in the next 1218 months40%However,many executives a
9、re still unclear about the business case for sustainability and view it as an unwelcome cost driver Due to the imminent economic downturn,only one-third(33 percent)plan to increase investment in sustainability However,a large majority(55 percent)plan to maintain investment in talent and skills,as th
10、ere is a hesitation on bigger investments3Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTE01ORGANIZATIONS REMAIN POSITIVE IN THE FACE OF ECONOMIC HEADWINDS IN 20234Capgemini Research Institute 2023Advancing through headwinds:Where are organ
11、izations investing?RESEARCH NOTEThe IMF has cut its global growth forecast for 2023 to 2.7 percent from 2.9 percent previously,amid inflationary pressures,the worsening energy crisis,and ongoing supply disruptions caused by geopolitical conflict.1 For almost all large organizations,economic slowdown
12、 has also been the main point of discussion during the last round of earnings calls and analyst briefings.Jamie Dimon,CEO of JP Morgan Chase,comments:“While consumers and companies are currently in good shape,that may not last much longer Inflation is eroding everything These things may well derail
13、the economy and cause this recession that people are worried about.”2A majority of executives in our research are expecting economic pressures to rise in the next 1218 months.They mention the following expectations,as shown in Figure 1:50 percent of executives see stagflation(a combination of low/ne
14、gative economic growth,high inflation,and rising unemployment)as the most likely economic scenario in the next 1218 months.Of these:EXECUTIVES EXPECT ECONOMIC PRESSURES AHEAD 22 percent are expecting slow/stagnant economic growth along with high inflation 28 percent are expecting recession along wit
15、h high inflation One-quarter of executives(25 percent)expect deflationary recession And nearly one in five(19 percent)expect high levels of inflation but not recessionIn summary,53 percent of executives expect recession,and an additional 22 percent expect slow/stagnant economic growth rate in the ne
16、xt 1218 months;69 percent believe that inflation levels will be elevated.Our ongoing research into consumer behavior highlights that,in the light of the rising cost of living,a majority(61 percent)of consumers globally say they are extremely concerned about their personal financial situations.3 5Cap
17、gemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTEOf those executives that expect recession in the next 1218 months,20 percent believe their domestic economy has already entered the recessionary phase and 30 percent expect it to occur in the nex
18、t six months(see Figure 2).An additional 35 percent expect the recession to hit in 1218 months.Nearly 27 percent of executives in Western Europe believe that the region is already in recession,and a similar percentage(26 percent)expect the region to enter into recession in the next six months Nearly
19、 32 percent of executives in the US believe that the country will enter a recession in the next six months Executives in India and Singapore are most positive about averting a recession in the next six months*Data reflects opinions of executives on the economic condition of their country of residenc
20、e.Source:Capgemini Research Institute,Global Investment Research,NovemberDecember 2022,N=2,000 respondents from unique organizations.of consumers globally say they are extremely concerned about their personal financial situations61%FIGURE 01Executives anticipate a recession and elevated levels of in
21、flationExecutive views on recession and inflation in the next 12-18 months*Inflation will be elevated,along with recession28%Inflation will be elevated,along with a slow/stagnant growthStagflation22%Inflation will be elevated,but we will not be in a recession19%Inflation will decline,and we will not
22、 be in a recession4%I do not have an opinion3%Inflation will decline,but we will be in a recession25%6Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTEFIGURE 02Around six in 10 executives from the Netherlands,China,and France believe that th
23、eir countries are in recession or will be in the next six months*Data reflects opinions of executives on the economic condition of their country of residence.Source:Capgemini Research Institute,Global Investment Research,NovemberDecember 2022,N=1,059 respondents from unique organizations that antici
24、pate a recession in the next 1218 months.I believe that my economy has already entered recession I expect the economy to be in recession in the next six months%of executives stating that their country of residence is already in recession or expected to be in recession in the next six months*Australi
25、aSingaporeIndiaJapanChinaSwedenSpainItalyNetherlandsGermanyFranceUKBrazilCanadaUSAverage30%50%20%32%44%12%29%46%17%43%46%4%27%53%26%32%59%27%30%56%26%33%64%30%18%51%32%27%49%22%14%40%26%47%62%14%0%0%26%42%15%45%52%7%Western Europe average=53%APAC average=31%7Capgemini Research Institute 2023Advancin
26、g through headwinds:Where are organizations investing?RESEARCH NOTEAmid this forbidding economic scenario,62 percent of executives say that their organization is already experiencing a slowdown.One-third(32 percent)of organizations have seen a major reduction(10 percent)and 30 percent have seen a mo
27、derate reduction(10 percent)in bookings/orders for 1Q23.By country,nearly half of organizations in France and the Netherlands have seen a major reduction in bookings/orders for 1Q23.Retail and banking and capital-markets sectors seem to be most heavily impacted(see Figures 3 and 4).At a recent finan
28、cial conference,Brian Moynihan,CEO of Bank of America,offered a grim outlook for investment banking(IB)for 4Q22,although he notes that trading will be a bright spot.Moynihan expects IB fees to decline by 5560 percent,year on year,while trading revenue will grow by 1015 percent(with major support fro
29、m fixed-income trading).4 JAMIE DIMONCEO of JP Morgan Chase“While consumers and companies are currently in good shape,that may not last much longer Inflation is eroding everything These things may well derail the economy and cause this recession that people are worried about.”ORGANIZATIONS ARE ALREA
30、DY SEEING A SLOWDOWN IN BUSINESS GROWTH62%of executives say that their organization is already experiencing a slowdown8Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTESource:Capgemini Research Institute,Global Investment Research,NovemberDe
31、cember 2022,N=1,800 respondents(excluding public sector)from unique organizations.Moderate slowdown(10%reduction in bookings/orders for 1Q23)%of executives stating that their business is experiencing a slowdown-by countrySingaporeIndiaChinaAustraliaBrazilUSJapanCanadaUKGermanySwedenItalySpainFranceN
32、etherlandsAverage32%62%30%51%86%34%50%87%38%45%78%30%44%76%30%43%75%35%43%74%33%38%66%28%30%59%59%28%25%29%20%38%20%54%54%33%17%50%33%6%15%9%4%15%11%18%50%32%FIGURE 03On average,four in 10 organizations in Western Europe are experiencing a significant slowdown in business9Capgemini Research Institut
33、e 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTEFIGURE 04Organizations across sectors are witnessing a slowdown in bookingsSource:Capgemini Research Institute,Global Investment Research,NovemberDecember 2022,N=1,800 respondents(excluding public sector)from unique org
34、anizations.AutomotiveConsumer products manufacturingEnergy and utilitiesIndustrial manufacturingTelecom,media&high-techBanking and capital marketsLife sciences and healthcareInsuranceRetailAverageModerate slowdown(10%reduction in bookings/orders for 1Q23)%of executives stating that their business is
35、 experiencing a slowdown-by sector 32%62%30%36%66%30%36%63%27%35%60%26%34%65%65%31%34%63%29%32%59%28%29%59%30%28%37%22%57%35%10Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTESupply-chain disruptions,rising prices of raw materials,and the o
36、ngoing energy crisis are some of the key risks for organizations(see Figure 5).Across sectors,supply-chain bottlenecks are a high risk for industrial manufacturing(92 percent of executives agree),life sciences(91 percent),retail(91 percent),and automotive(90 percent)sectors.On supply-chain issues,Ma
37、sakazu Yoshimura,MD and CEO of Toyota Kirloskar Motor,says:“There is the semiconductor issue,logistics congestion,and content shortages.All these combined affect delivery time of vehicles.No one could have predicted that kind of situation after COVID-19 There are shortages of gantry cranes at all ma
38、jor ports in the global logistics chain,and that is affecting the supply of components,regardless of whether it is semiconductors or normal components.”5 MASAKAZU YOSHIMURAMD and CEO of Toyota Kirloskar MotorThere is the semiconductor issue,logistics congestion,and content shortages.All these combin
39、ed affect delivery time of vehicles.No one could have predicted that kind of situation after COVID-19 There are shortages of gantry cranes at all major ports in the global logistics chain,and that is affecting the supply of components,regardless of whether it is semiconductors or normal components.o
40、f executives see supply-chain disruption as the biggest short-term risk for their organization89%11Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTEDespite growing global uncertainty,high inflation,the energy crisis,supply-chain disruption,a
41、nd a fear of recession,a majority of executives in our research have a positive outlook.Of those executives who anticipate recession in the next 12-18 months,71 percent expect it to last up to a maximum of 12 months.Moreover,66 percent of executives expect the economy to bounce back within 1-2 years
42、 of recession.James S.Tisch,CEO of US hotels conglomerate Loews,comments in regard to his earnings call:“Our fearless forecast is for recession,but not one that would be as cataclysmic as 08 or 09.”6FIGURE 05Supply-chain disruption is the biggest short-term risk for organizations Source:Capgemini Re
43、search Institute,Global Investment Research,NovemberDecember 2022,N=2,000 respondents from unique organizations.HOWEVER,THERE IS OPTIMISM FOR BUSINESS RECOVERYDifficulty in retaining talentSpeed of technology disruptionScarcity of talent with right skillsStricter regulationCybersecurity threatsClima
44、te disastersPolicy uncertaintyLower consumer demandSustained geopolitical turmoilHigher taxesEnergy crisisRising prices of raw materialsGlobal supply chain bottlenecks and trade/logistical disruptionsTop risks to business growth in the next 12-18 months89%67%64%60%57%55%49%48%39%39%35%34%33%12Capgem
45、ini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTEFIGURE 06Nearly seven in 10 executives in India and Singapore are optimistic regarding the future of their organizationsSource:Capgemini Research Institute,Global Investment Research,NovemberDecembe
46、r 2022,N=2,000 respondents from unique organizations.Overall,42 percent of executives are positive about the future,whereas nearly one-quarter(25 percent)are neutral.Figure 6,below,highlights business optimism by region.Optimism regarding future of organization considering current economic headwinds
47、 IndiaSingaporeAustraliaChinaJapan43%45%47%BrazilCanadaUSA32%24%52%65%70%50%50%29%34%UK32%SwedenNetherlands36%GermanyFrance27%ItalySpainhighlights the percentage of organizations that are optimistic about future of organization considering current economic headwinds Global average:42%13Capgemini Res
48、earch Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTEMoreover,in the next 1218 months,one-third(32 percent)of executives expect to maintain current revenue levels,and 26 percent expect revenue to increase(by around 4.4 percent on average).Michelins CEO,Flore
49、nt Menegaux,adds:“I forecast that we will not go back into real recovery before mid-2023.The auto industry recovery looks more likely to happen in 2024,absent a deep recession.”He adds that he foresees only“a mild recession.”7 Figure 7 summarizes executives views on expected timelines for economic a
50、nd business recovery.FIGURE 07Nearly 60 percent of organizations expect to see revenue growth in the next 1218 monthsSource:Capgemini Research Institute Analysis;Capgemini Research Institute,Global Investment Research,NovemberDecember 2022,N=2,000 respondents from unique organizations.Timelines for
51、recession,slowdown,and recovery of business environment according to executivesQ4 2022Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025A majority of executives expect their economy in recession by H1 2023RECESSION EXPECTED TO LASTBUSINESSES TO WITNESS A SLOW DOWNECONOMY TO START
52、 RECOVERYBUSINESSES TO START RECOVERY71%of executives expect the recession in their economy to last up to 12 months59%of organizations expect a stability/growth in revenue in the next 12-18 months62%of organizations are already experiencing reductions in bookings for Q1 2023:Of these,35%expect to be
53、 in slowdown for the next 1-2 years66%of executives expect their economy to bounce back within 1-2 years after recession hits14Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTEof executives are positive about the future,whereas 25%are neutra
54、l42%In the next 1218 months,32%of executives expect to maintain current revenue levels,and 26%expect revenue to increaseFLORENT MENEGAUXCEO,MichelinI forecast that we will not go back into real recovery before mid-2023.The auto industry recovery looks more likely to happen in 2024,absent a deep rece
55、ssion.of executives expect the economy to bounce back within 1-2 years of recession66%15Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTE02ORGANIZATIONS ARE TAKING A CAUTIOUS APPROACH TO INVESTMENT16Capgemini Research Institute 2023Advancing
56、 through headwinds:Where are organizations investing?RESEARCH NOTEORGANIZATIONS ARE EVALUATING NEW BUSINESS MODELS AND ARE CLOSELY MONITORING OPERATING EXPENSESIn preparation for the likely downturn,organizations are taking a number of measures:The most-cited step(by 60 percent of organizations)is e
57、valuation of new business models to offset the current slowdown(there was a widespread move to develop new business models during the pandemic;for instance,it took less than 30 days for PepsiCo to launch two direct-to-consumer(DTC)channels to fulfil demand during the first phase of the COVID-19 cris
58、is).8 Many organizations are also evaluating subscription-based or as-a-service models.Our previous research highlighted that 68 percent of organizations are planning to pivot to“servitization”-based business models in the next three years Nearly half(44 percent)of organizations are reviewing their
59、workforce management including rethinking workforce locations,limiting hiring,etc.of organizations are reviewing their workforce management including rethinking workforce locations,limiting hiring44%percent are focusing on preserving cash/liquidity(through measures such as cost optimization,revenue
60、protection,etc.)40%17Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTE And 40 percent are focusing on preserving cash/liquidity(through measures such as cost optimization,revenue protection,etc.).Of these:TORBJRN SANNERSTEDTEx-CFO of Sweden-
61、based waste disposal,recycling,heating,and electricity services provider Halmstad Energi&Milj“In times of uncertainty and downturn,the need to work with the companys cash flow increases significantly Freeing up capital and reducing short-term variable costs are the immediate measures to strengthen c
62、ash flow.”68%of organizations are planning to pivot to“servitization”-based business models in the next three years 74 percent are focusing on curbing operating expenses 71 percent are reducing discretionary spending 64 percent are evaluating non-core aspects of business to improve P<orbjrn Sanner
63、stedt,ex-CFO of Sweden-based waste disposal,recycling,heating,and electricity services provider Halmstad Energi&Milj,comments:“In times of uncertainty and downturn,the need to work with the companys cash flow increases significantly Freeing up capital and reducing short-term variable costs are the i
64、mmediate measures to strengthen cash flow.”9 Some organizations are pre-emptively securing additional borrowing capacity to sustain them during economic downturn.Canadian aircraft maker Bombardier,for example,is setting up a new credit facility.10 18Capgemini Research Institute 2023Advancing through
65、 headwinds:Where are organizations investing?RESEARCH NOTEFIGURE 08Organizations are currently focusing on evaluation of new business models,workforce management,and cash preservation to offset the impact of the anticipated economic downturnSource:Capgemini Research Institute Analysis;Capgemini Rese
66、arch Institute,Global Investment Research,NovemberDecember 2022,N=2,000 respondents from unique organizations,N=807 respondents from unique organizations that are prioritizing cash/liquidity preservation.64%71%74%58%47%Reduce/defer capital expenditureIncrease prices of goodsEvaluate non-core aspects
67、 of business to improve P&L/cost-cuttingReduce discretionary spendingCurb operating expenses(OPEX)Focusing on preservingcash/liquidityEvaluating new businessmodels60%Focusing on workforcemanagement44%40%19Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?
68、RESEARCH NOTEOur research shows that overall investment in technology is going to increase in the next 1218 months:39 percent of organizations plan to increase investment in technology in the next 1218 months a similar proportion say they will maintain their current level of investment overall,inves
69、tment is forecast to increase by 7 percent on an average on the current levels in the next 1218 monthsDuring times of economic uncertainty,organizations look to technology to drive growth and create added economic value at speed.Steve Miller,CTO of Steelcase,a provider of office architecture and fur
70、niture with a trading history stretching back over ORGANIZATIONS ARE PRIORITIZING COST-REDUCTION TECHNOLOGIES a century,confirms this:“Its when times are hard that you invest in technology.Its the one thing that helps you survive the storm.”11 In our research as well,a majority are investing in tech
71、nology towards the new digital economy focusing on competitiveness,capability,and resilience as increasingly companies become software companies.As cost reduction is a key focus area for organizations,we find that,in the next 12-18 months:Nearly three in four(72 percent)executives will be looking to
72、 make significant technology investments to reduce long-term cost,while 59 percent will look to make technology investments that support faster decision-making Consequently,as Figure 9 shows,we see technologies such as IT infrastructure and cloud,data&analytics,and intelligent automation,among other
73、s,attracting investment in the next 1218 months.Analyzing by revenue size,we found that 40%of very large organizations(with revenue more than$50billion)agree that their cybersecurity spend is expected to increase in the next 12-18 months.of organizations plan to make significant technology investmen
74、ts to reduce long-term cost in the next 1218 months72%20Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTEFIGURE 09In the next 1218 months,organizations plan to increase their investment in technologies that aid in cost saving and faster deci
75、sion making Source:Capgemini Research Institute,Global Investment Research,NovemberDecember 2022,N=2,000 respondents from unique organizations.SUSTAINABILITY AND TALENT TAKE A BACK SEAT AS ORGANIZATIONS FOCUS ON SUPPLY-CHAIN INVESTMENTSOne of the cumulative effects of the crises of the past three ye
76、ars has been to reorder supply-chain priorities.Organizations are now focusing on building more resilient,flexible,and dynamic supply chains before the next shock hits.Our research found that supply chain is the area where organizations are planning to increase investment most strongly in the next 1
77、218 months.Intelligent automationData and analyticsCybersecurityIT infrastructure and cloudIncreaseRemain sameDecrease%of executives stating their organizations technology investment plans for the next 12-18 months44%28%27%42%36%23%41%35%24%38%28%34%21Capgemini Research Institute 2023Advancing throu
78、gh headwinds:Where are organizations investing?RESEARCH NOTEMore than half of organizations plan to maintain investments in talent and skills.As mentioned previously,the expectation of a recession is driving a hiring freeze,rethinking of workforce locations,as well as downsizing in many organization
79、s.Figure 10,gives an overview of the new investment priorities.In the next sections,we deep dive into each of these areas.Sustainability is frequently seen as a cost center,rather than a value center,and the expected downturn only makes finance teams more wary of channeling funds towards sustainabil
80、ity investment.12 Our research shows that only one third(33 percent)of organizations are increasing their sustainability investments,and 28 percent are decreasing their sustainability investment.If organizations are going to meet their sustainability targets,evidently something will have to change.F
81、IGURE 10Organizations are planning to increase investment in supply chain in the next 1218 monthSource:Capgemini Research Institute,Global Investment Research,NovemberDecember 2022,N=2,000 respondents from unique organizations.SustainabilityTalent and skillsSupply chainIncreaseRemain sameDecrease%of
82、 executives stating their organizations investment plans in the next 12-18 months43%28%33%37%55%38%19%16%28%22Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTEThe supply chain is no longer an afterthought in business meetings today and is at
83、 the heart of organizations ongoing transformation efforts.Supply-chain trade-offs are driven by two recognized forces:the need for a personalized and real-time customer experience,and for a global value chain that continuously optimizes manufacturing and production costs.Resilience and sustainabili
84、ty are also key supply chain topics.Resilience is essential for organizations to overcome external“black swan events,”such as the COVID-19 ORGANIZATIONS PLAN TO INCREASE INVESTMENT IN DIVERSIFYING AND DIGITIZING THEIR SUPPLY CHAINS pandemic,the ongoing geopolitical crisis in Europe,and rising energy
85、 shortages.Such events are becoming more frequent and severe,impacting both top and bottom lines.Over half(54 percent)of organizations acknowledge that their supply chains have altered significantly in the past two years.13 Our research found that 45 percent of companies absorb a significant portion
86、 of the cost increase themselves,due to resilience,sustainability,and customer-centricity efforts,while remaining unaware of their true end-to-end baseline.Global supply chain bottlenecks and trade/logistical disruptions are perceived to be the biggest risk to growth in the next 1218 months.In line
87、with that,43 percent of executives across sectors including life sciences,retail,industrial manufacturing,and consumer products,say that their organizations will increase investments in the supply chain in the next 1218 months,by 10.4 percent on average from current levels.Nicole Ghezali,SVP of Glob
88、al Merchandizing at 43%of executives,say that their organizations will increase investments in the supply chain in the next 1218 months23Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTEFIGURE 11APAC countries plan to invest more in supply-c
89、hain technology in the next 1218 monthsSource:Capgemini Research Institute,Global Investment Research,NovemberDecember 2022,N=2,000 respondents from unique organizations.sportswear retailer Adidas,adds:“Consumer goods markets have slowed down globally,affecting inventory and price positions.2023 is
90、going to be about right-sizing inventories to ensure a balanced inventory position.”As organizations consider the supply chain as a revenue driver rather than a cost center,they are focusing on new operating models around alternative sourcing,de-globalization or localization,and investment in techno
91、logy to do manage the trade-off between cost and service more intelligently.Our research also shows that the principal focus areas for investment will be in supply chain technologies(enabling agility/transparency/visibility of supply chains)and diversification(of supplier base,production,and transpo
92、rtation partners).Nearly 40 percent of executives agree that their organizations are planning to increase investment in these areas in the next 1218 months(see Figures 11 and 12).%of executives stating how investments in supply-chain technology will change in the next 12-18 monthsAustraliaSingaporeI
93、ndiaJapanChinaSwedenSpainItalyNetherlandsGermanyFranceUKBrazilCanadaUSAverage33%26%40%44%18%38%34%18%48%38%25%37%39%30%31%26%31%43%22%39%39%27%37%37%25%45%30%22%41%38%28%33%39%44%16%39%53%39%7%47%8%45%38%19%44%34%18%48%IncreaseRemain sameDecrease24Capgemini Research Institute 2023Advancing through h
94、eadwinds:Where are organizations investing?RESEARCH NOTEFIGURE 12European countries plan to invest more in supply-chain diversification in the next 1218 monthsSource:Capgemini Research Institute,Global Investment Research,NovemberDecember 2022,N=2,000 respondents from unique organizations.Over the p
95、ast three years,the COVID-19 crisis has drastically exacerbated supply-chain fragility:three-quarters of organizations globally have been impacted by the closing down of facilities,supply disruptions,employee absences,and the imperative for remote work,while less than 20 percent are well equipped to
96、 handle these changes.14 As many as 92 percent of organizations say the ongoing relocation of the global supply chain will impact them,but only 15 percent are well equipped to handle it.15 Actions that organizations are undertaking to diversify the supply chain include:onshoring or nearshoring to br
97、ing production bases closer to sources of demand(72 percent)regionalizing and localizing supplier base(65 percent)diversifying manufacturing base(i.e.,reducing our reliance on a single geographic region)(62 percent)%of executives stating how investments in supply-chain diversification will change in
98、 the next 12-18 monthsAustraliaSingaporeIndiaJapanChinaSwedenSpainItalyNetherlandsGermanyFranceUKBrazilCanadaUSAverage27%31%3%39%30%3%34%34%25%8%28%40%28%28%44%28%4%33%36%32%26%3%39%27%2%22%49%27%29%1%43%30%29%4%37%35%27%4%34%20%34%4%41%36%30%7%27%44%27%27%1%38%23%3%35%28%30%2%39%39%21%2%37%Increase
99、Remain sameDecreaseDont know/Cant say25Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTEAssess core capabilities required to develop resilience across the networkMeasuring vulnerability and targeting transformation is crucial.Amid global unc
100、ertainties,organizations face restrictions on the movement of goods across borders.In response to this threat,many have taken steps to strengthen relationships with top suppliers to secure an uninterrupted supply of critical parts.Organizations should revisit core and non-core activities in their su
101、pply Key action areas:chains to increase resiliency.For example,should transportation be considered as a core competency,given rising freight costs,freight disruptions,and labor shortages?It should also be noted that greater localization of products requires organizations to build relationships with
102、 regional transport providers.Similarly,organizations need to adapt their operating models in response to new trends.Consumer products(42 percent),retail(39 percent),manufacturing(42 percent),and life sciences(41 percent)organizations have cited the emergence of new operating models(such as omnichan
103、nel fulfillment and remote working)as a key challenge.Build data-driven technology-enabled capabilitiesBuild and deploy a composable,integrated,and customer-centric architecture,combining a transactional backbone,ERP,best-of-breed industry solutions(notably for execution),as well as data-sharing and
104、 collaborative platforms to break down siloes and enable end-to-end management,from simulation to AI-based event monitoring.Although control towers have been around for more than a decade,implementation has been patchy.Often,organizations have different control towers of organizations acknowledge th
105、at their supply chains have altered significantly in the past two years54%of organizations are looking at onshoring or nearshoring to bring production bases closer to sources of demand in the next 1218 months72%26Capgemini Research Institute 2023Advancing through headwinds:Where are organizations in
106、vesting?RESEARCH NOTEfor different parts(outbound logistics,for example)of their supply chain.There is a need to upgrade the control-tower model into an integrated and connected solution that provides improved visibility for the entire supply chain.A digital twin is a virtual replica of a physical s
107、ystem that can model,simulate,monitor,analyze,and constantly optimize its counterpart in the physical world.Through its ability to answer questions such as“what is best?”,“what if?”,and“what next?”,a digital twin can not only provide visibility of how dynamic,real-world systems are currently perform
108、ing and propose how to improve them,but also predict how they will perform in different scenarios.For instance,home-improvement retailer Lowes created a digital twin of one of its stores to help its associates improve efficiency of operations.16 27Capgemini Research Institute 2023Advancing through h
109、eadwinds:Where are organizations investing?RESEARCH NOTEsuppliers and customers.With real-time shipment tracking,the organization could determine the status of all global customer shipments during the Suez Canal blockage,for instance.It determined that the ship blocking the canal did not contain Dia
110、geo products,but that the organization would be impacted by the resulting backlog of vessels.This insight allowed the organization to communicate proactively with shipping lines and customers.17 Collaborating with partners in the ecosystem through insights generated by advanced analytics tools inclu
111、ding ML,could proactively guide organizations during disruptions,make faster decisions,and provide a competitive advantage.The imperative to secure supply and enhance visibility of critical-parts supply chains,with organizations requiring visibility of supplier operations at tier 2,tier 3,and other
112、levels The requirement to establish traceability of parts to guarantee authenticity and track the movement of products Improving resilience to external shocks Nurturing agility in responding to trends Increasing diversity and inclusion criteria for supply-chain vendors(such as sourcing agri-commodit
113、ies from small farmers)Alcoholic beverages organization Diageo has kicked off several initiatives to encourage close collaboration with Use data to create value within the ecosystem to drive growth There are multiple untapped data sources like geopolitical risks,the impact of weather on demand and l
114、ogistics,and product and provenance data that could help organizations generate better insights to improve relationships with suppliers and customers to deliver uninterrupted service despite disruption.There are new demands being placed on organizations supply networks driven by factors such as:Vend
115、or accountability for sustainable sourcing and procurement28Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTENICOLE GHEZALISVP of Global Merchandizing at sportswear retailer Adidas“Consumer goods markets have slowed down globally,affecting i
116、nventory and price positions.2023 is going to be about right-sizing inventories to ensure a balanced inventory position.”29Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTEAs organizations look at preserving costs,60 percent of executives sa
117、y that they are actively downsizing to reduce headcount.Our research also shows that a majority(55 percent)of executives agree that their organizations are planning to maintain investment levels in talent and skills in the next 1218 months.While maintaining this status quo,organizations are actively
118、 investing in and implementing:hybrid working options for employees(65 percent of executives agree)permanent remote working options for roles that require less supervision and teamwork(61 percent of executives agree)However,while they are focusing on investment in hybrid/remote working conditions,or
119、ganizations will reduce investment in other critical areas,such as employee experience,learning,and diversity in the next 1218 months(see Figure 13).Jonathan Parsons,Senior Director HR at Hitachi Rail,adds:“Despite of organizations are planning to maintain investment levels in talent and skills broa
120、dly unchanged in the next 1218 months 55%ORGANIZATIONS FOCUS ON REMOTE AND HYBRID WORKING WHILE NEGLECTING EMPLOYEE EXPERIENCE,LEARNING,AND DIVERSITYthe prevailing economic winds and tough trading conditions,its important that we maintain the investments we have made in improving employee experience
121、,upskilling our employees and hiring for a diverse workforce so that once conditions improve,we are able to retain our talent.”30Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTEFIGURE 13Only one in five executives agree that their organizat
122、ion will increase diversity investment in the next 1218 monthsSource:Capgemini Research Institute,Global Investment Research,NovemberDecember 2022,N=2,000 respondents from unique organizations.Ensure flexibility in your workforce strategyOrganizations need to develop an enterprise-wide workforce str
123、ategy that includes permanent employees,but also temporary workers,remote and hybrid roles,etc.based on business criticality.A centralized strategy can help smooth out disparate employee experiences.At the same time,organizations should allow for localized,personal components to be built into the br
124、oader strategy,ensuring the possibility of a more nuanced,tailored offering.A flexible plan also allows organizations to pivot quickly as the business scenarios evolve.This strategy should be reviewed and updated on a regular manner based on employee feedback as well changing market demands.Key acti
125、on areas:Hiring for soft skillsHiring for a diverse workforceImproving employee experienceUpskilling/reskilling programsIncreaseRemain sameDecreaseDont know/Cant say%of executives stating how investments in talent and skills will change in the next 12-18 months6%31%29%28%39%36%17%20%5%27%30%35%15%30
126、%42%12%31Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTEFocus on continuous upskilling to mitigate the skills-gapTo future-proof the business,stop the skills-gap from further widening,and reduce hiring needs organizations should focus on c
127、ontinuous upskilling of their employees.Our recent research found that the majority(65 percent)of employees say learning and skill development is the most important aspect of their work;however,employees are largely dissatisfied in this respect,with only 28 percent saying their organization enables
128、them to learn and develop new skills.This,coupled with our finding that only 29 percent of organizations are planning to increase spend in upskilling and reskilling programs in the near future,paints a worrying picture in terms of working conditions.Organizations need to define,design,implement,and
129、update the entire learning portfolio from time to time,based on the individual needs of all employees,and providing the opportunities that the workforce wants and needs.This can only be done through a collective and sustained effort from HR as well as business leaders.Technology can be harnessed to
130、develop learning systems to encourage employees to upskill,or take advanced certification courses.Such systems can also help employees establish clear career trajectories and identify roles within the same company to which they can aspire,facilitating internal mobility.Louis-Laurent Preux adds:“When
131、 we recruit young employees,i.e.,Gen Z,the most important thing for them is to have good training.The next most important thing for them is internal mobility.They want to know where they will be in three years time.”18Moreover,organizations need to invest in retention of employees with critical skil
132、ls.A recent study highlights that the average cost of replacing just one employee ranges from one-half to two times their annual salary.19Use technology to enhance collaboration and productivity Providing employees with adequate tools,technologies,and a robust data infrastructure is key to succeed i
133、n a hybrid operating model and a must to reduce ineffective tasks and increase productivity.However,many employees are underwhelmed by their current technology experiences at their workplaces.Moreover,only one-third of them say they have access to the technology and data they need to do their jobs a
134、nd make informed 32Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTEdecisions.20 Equipping employees with the tools and technology to carry out their jobs effectively is critical,especially for remote workers who can feel isolated without ap
135、propriate support.The need is for a holistic and user-friendly technology architecture connecting various functions and solutions and enhancing the experience with more nimble applications that serve specific employee needs in all circumstances.21 The provision of appropriate online collaboration to
136、ols is also important,as it will enable greater agility and allow symbiotic interaction between people from various designations,backgrounds,and experiences.Finally,employees have differing experiences when interacting with other support functions(e.g.,IT,HR)on an everyday level(for example,submitti
137、ng a timesheet),which leave them feeling frustrated or overburdened.Smoothening out this technology experience is equally important:“There is a need to reorganize,simplify,and streamline several processes in the company(such as finance,admin,performance management)as,today,employees need separate va
138、lidation for each process and have to memorize different sets of guidelines to access and work with different software,”says Franoise Bragard,Digital HR Manager at a luxury goods organization.22Safeguard wellbeing and promote diversityOur research shows that only 27%of employees feel good,both physi
139、cally and mentally,at work,and over half(57%)of employees suggested that a better work-life balance could dissuade them from leaving their current organizations.Increased employee churn because of burnout could lead to greater hiring and retention costs for organizations.Fostering employee wellbeing
140、 should be a priority,with an emphasis on preventive measures to anticipate(and thereby avoid)burnout.Organizations can tailor programs using the results of their employee listening programs to address the specific needs of all employee groups.23 A study indicates that 83%of millennials feel they ar
141、e engaged at work when they believe the organization fosters an inclusive culture.24 Diversity,Equity,and Inclusion(DEI)has a ripple effect on revenue and profitability.In fact,companies with above average total diversity had both 19 percentage points higher innovation 33Capgemini Research Institute
142、 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTErevenues and 9 percentage points higher profit margins,on average.25 Our research also indicates that,of those employees planning to leave their organizations within a year,45 percent could be persuaded to change their m
143、inds if their organizations were to implement a more inclusive and diverse culture.Given this,organizations need to put process and policies in place to create a fair,inclusive,and diverse environment for all employees.They should build a supportive,inclusive culture based on collaboration,engagemen
144、t,support,and care,and empower it with continuous monitoring of employee engagement,matched by swift and relevant actions to answer the evolution of perception trends and expectations.26 This could include the following initiatives:Thinking critically about how to access a wider recruitment pool,inc
145、luding JONATHAN PARSONSSenior Director HR at Hitachi Rail“Despite the prevailing economic winds and tough trading conditions,its important that we maintain the investments we have made in improving employee experience,upskilling our employees and hiring for a diverse workforce so that once condition
146、s improve,we are able to retain our talent.”people from the wider class/ethnicity/gender spectrum.Nike,for instance,has a dedicated diversity-sourcing team to ensure diverse candidates are considered for vacant roles.They have also built an inclusive hiring process involving writing inclusive job de
147、scriptions,and blind reviewing of resums.27 Providing employees,especially women and those from ethnic minority communities,with equal opportunities for career growth and progression.Salesforce,for instance,has built“Equality Groups,”which represent and advocate on behalf of underrepresented communi
148、ties.Volunteers contribute considerable time and effort and are compensated for doing so.2834Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTEMore than half of executives(51 percent)say their organizations have reduced their environmental su
149、stainability investment in the past 1218 months,owing to adverse economic conditions.In the current environment,organizations have low levels of confidence in customers willingness to pay.Seventy-four percent of executives feel that the demand for their sustainable products/services has declined as
150、customers are unwilling to pay more for these in the current environment.The business case for sustainability is currently largely underestimated or misunderstood(i.e.,executives fail to perceive it as a source of strategic value creation).Pia Heidenmark Cook,former Chief Sustainability Officer at I
151、ngka Group,explains:“A perception many organizations have is that sustainability is more expensive.However,they do not realize that initiatives such as waste reduction and energy efficiency will reduce operational costs.The key challenge to sustainability is change management:showing the business ca
152、se,why it makes sense,and influencing and inspiring people to understand why it makes a difference.”29In light of this:28 percent of executives say that their organization is reducing overall sustainability investment in the next 1218 months,with the average extent of planned decrease being 12 perce
153、nt.The top three sectors which plan to decrease sustainability investment in the next 1218 months are consumer products,banking,and industrial manufacturing.38 percent plan to maintain sustainability investment at current levels one-third(33 percent)plan to increase their sustainability investments
154、in the next 1218 months,with the average extent of planned increase being 12 percent of organizations have reduced their environmental sustainability investment in the past 1218 months,owing to adverse economic conditions 51%plan to increase their sustainability investments in the next 1218 months33
155、%ONLY ONE-THIRD OF ORGANIZATIONS PLAN TO INCREASE SUSTAINABILITY INVESTMENTS IN THE NEXT 1218 MONTHS35Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTETOM SCHALENBOURGSustainability Development Director,Toyota Material Handling Europe“Integr
156、ating sustainability into the business strategy has become an imperative in every sector for attracting investment,customers,and talent.”36Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTEWith half of the organizations already reducing their
157、 sustainability investments in the past 1218 months,and only one-third planning to increase their investments,clearly organizations are not setting themselves up to meet their sustainability targets.In fact,our recent research on sustainability finds that the average annual investment in environment
158、al sustainability initiatives and practices across industries represents 0.91%of total revenue.Larger companies are investing less as a percentage of total revenue on average,only 0.41%of total revenue compared to 2.81%among smaller companies.In comparison,in 2020,companies in the S&P 500 spent on a
159、verage 4%of their total revenue on research and development.Further,a report by United Nations Environment Programme(UNEP)finds that annual investments in nature-based solutions will have to triple by 2030 and increase four-fold by 2050 from the current investments.This highlights the need for inves
160、tment in sustainability to be much larger than what it is to tackle interlinked climate,biodiversity,and land degradation crises.It urges governments,financial institutions,and businesses to overcome this investment gap by placing nature at the heart of economic decision-making in the future and str
161、esses the need to rapidly accelerate capital flows to nature-based solutions.30 Analyzing investments by region,we see that,in the next 1218 months,45 percent of organizations in the Netherlands plan to decrease sustainability investment,while 53 percent of those in China plan to increase it(see Fig
162、ure 14).of organizations are on track to their sustainability targets on the current trajectory31%37Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTEFIGURE 14In the next 1218 months,a larger share of European organizations expect to decrease
163、 sustainability investments,while a higher share of Asian organizations plan to increase them Source:Capgemini Research Institute,Global Investment Research,NovemberDecember 2022,N=2,000 respondents from unique organizations.Despite widespread professions to the contrary,sustainability seems to have
164、 little influence on the business decisions of many organizations and is also the first area from which they look to cut funds when conditions are unfavorable.Current and projected investments are unlikely to meet ever-tightening regulations and fulfill ambitious sustainability targets.Our research
165、shows that only 31 percent will meet their sustainability targets on the current trajectory.%of executives stating how investments in sustainability will change in the next 12-18 monthsAustraliaSingaporeIndiaJapanChinaSwedenSpainItalyNetherlandsGermanyFranceUKBrazilCanadaUSAverage38%28%33%39%20%41%3
166、3%16%51%44%23%33%36%29%34%45%32%22%37%41%22%34%45%21%38%33%28%35%41%24%41%31%28%27%20%53%34%44%22%42%23%35%46%20%34%36%24%41%IncreaseRemain sameDecrease38Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTEEmbed sustainability in your strategic
167、 decision makingSustainability is not just the remit of the Chief Sustainability Officer;all business leaders must be accountable for their organizations sustainability practices.Rather than being treated as a compliance issue and a“cost of doing business,”sustainability needs to become part of corp
168、orate culture.Anthony Coletta,Chief Investor Relations Officer and former CFO for SAP North America,comments:“For CFOs,now is the time to explicitly link finance and sustainability to take advantage of the burgeoning moral and economic opportunity.We must factor climate change into the decision-maki
169、ng process in the same way we would interest rates or cash flow.”31 One of our recent reports suggests that organizations do not regard sustainability as a long-term investment,and over half(53 percent)of executives believe that the cost of pursuing sustainability outweighs the potential benefits.Ho
170、wever,empirical evidence suggests that sustainability and a healthy bottom line are far from mutually exclusive.In fact,frontrunners in sustainability realize 83 percent higher revenue per employee and 9 percent higher net profit margin than the industry average.Tom Schalenbourg,Sustainability Devel
171、opment Director at Toyota Material Handling Europe,confirms:“Integrating sustainability into the business strategy has become an imperative in every sector for attracting investment,customers,and talent.”32Vance Merolla,Worldwide Director,Global Sustainability,Colgate-Palmolive,adds:“In 2020 we laun
172、ched Colgates 2025 Sustainability&Social Impact Strategy,with three ambitions and 11 actions,including one to accelerate action on climate change.This is embedded in our overall business strategy and spans our entire value chain,across supply,operations,and products,to reduce,replace,and remove emis
173、sions over time.Most importantly,we are working to build a mindset that uses decarbonization as a lens through which to view all business activities and decisions.”33Key action areas:39Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTEPIA HEI
174、DENMARK COOKFormer Chief Sustainability Officer at Ingka Group“A perception many organizations have is that sustainability is more expensive.However,they do not realize that initiatives such as waste reduction and energy efficiency will reduce operational costs.The key challenge to sustainability is
175、 change management:showing the business case,why it makes sense,and influencing and inspiring people to understand why it makes a difference.”Support employees in their sustainability journeysThe whole workforce should be engaged in the sustainability effort.Therefore,it is important for business le
176、aders,as well as employees,to translate sustainable objectives into practicable activities.Aligning individual activities and processes with sustainability and linking remuneration with sustainability goals can push the agenda.Laurence Pessez,Global Head of CSR at BNP Paribas,comments:“Boards are re
177、alizing the importance of sustainability,especially with growing regulations,and are taking bold action,such as linking sustainability targets to compensation.”34Organizations should recruit and upskill employees with the necessary sustainability skills and fluency in sustainability and climate-chan
178、ge issues,as well as relevant hard skills such as carbon accounting and environmental engineering.Magdalena Gerger,VW Group Sustainability Council Advisory Board to the Management Board,comments:“A culture that considers sustainability in day-to-day decisions is critical.There needs to be a strong t
179、op-down,bottom-up approach that pulls together innovation and skill-building.It is about spending time getting leadership walking side by side,training your employees and involving them in your decisions.”35 Come Perpere,Chief Sustainability Officer at Microsoft France,adds:“We have created progress
180、ive upskilling paths i.e.,46 training hours one week,increasing to 810 hours the next,with more advanced content for employees to gain deeper knowledge of sustainability.”3640Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTEThe integration o
181、f sustainability should extend to include the broader ecosystem of vendors and suppliers.Organizations must set sustainability goals for suppliers,with clearly defined KPIs,and collaborate with them to help them meet these goals.Neither should they balk at taking stringent action in cases of non-com
182、pliance.For instance,as part of its long-term goal to phase out coal from its supply chain,H&M decided to reject any prospective supplier if their factories use on-site coal-fired boilers.37Use technology and data to expedite the transition to net zero38 Several technologies,such as AI,automation,bl
183、ockchain,and digital twins,can assist organizations in making design 41Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTECOME PERPEREChief Sustainability Officer at Microsoft France“We have created progressive upskilling paths i.e.,46 trainin
184、g hours one week,increasing to 810 hours the next,with more advanced content for employees to gain deeper knowledge of sustainability.”Develop a single data platform to provide a consolidated view of emissions data Develop emissions-data analytics and visualization capabilities,in order to make use
185、of the data and derived insights Invest in a dedicated carbon-management solution to facilitate carbon accounting and reporting Spanish financial services firm BBVA has adopted a cloud-based carbon-management solution that automates data entry and calculations;enables granular analysis of global ene
186、rgy consumption;and provides alerts based on key indicators.Desire Granda,Global Head of Premises and Services at BBVA,comments:“This new development allows us to make faster,more agile decisions and to follow up on the objectives established in our Global Eco-efficiency Plan.”40and operational effi
187、ciencies,leading to reduced emissions.For instance,digital twin helps in optimizing design;allocation of resources;balancing energy needs;optimizing supply-chain networks;and building resilience.Blockchain is effective in creating transparent supply chains(i.e.,with visibility of operations at every
188、 stage);monitoring,reporting,and verification of energy consumption and waste across the enterprise;enabling green financing;and verifying sustainability claims.39Further,data is a significant lever in accelerating the transformation towards sustainability.Our previous research found that organizati
189、ons can achieve an average annual reduction of 4.6 percent in emissions by embedding emissions data in decision-making.Hence,organizations will need to have a robust data-management framework incorporating the following steps:Automate the collation of emissions data 42Capgemini Research Institute 20
190、23Advancing through headwinds:Where are organizations investing?RESEARCH NOTECONCLUSIONTo tackle current risks and navigate turbulence,businesses must continue to make considered,directed investments,especially in diversifying and digitizing their supply chains;they must adopt digital tools and tech
191、nologies that drive cost savings;and expand hybrid and remote working conditions.However,certain key areas have been overlooked:Sustainability continues to be treated as an afterthought for businesses,while allocation of investment to employee issues such as improving experience,learning,and diversi
192、ty,have also taken a back seat.Lack of investments in these areas is a significant risk hampering business resilience,profitability,brand value,employee engagement,and environment.However,despite these risks and challenges,its encouraging that most businesses expect only a short recession(up to 12 m
193、onths)and are optimistic about their future growth prospects.As businesses continue to insulate themselves against the effects of the downturn and drive growth,they should also focus on:Identifying core capabilities required to develop resilience across the supply chain network,building an end-to-en
194、d connected architecture to improve supply chain visibility,and creating data-driven relationships to improve collaboration across internal and external ecosystems Improving employee experience,ensuring continuous upskilling of workforce,and developing robust practices to promote diversity and wellb
195、eing Accelerating sustainability efforts,recognizing the impact of improved sustainability on financial performance,and using technology to expedite the transition to net zero43Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTERESEARCH METHOD
196、OLOGYTo understand the global economic scenario and how it impacts the investment landscape,we carried out extensive research,with both qualitative and quantitative components.We surveyed 2,000 respondents from unique organizations with more than$1 billion in annual revenue,across 15 countries.The r
197、espondents were at director level or above,spanning various functional areas,including General Management,Finance and Risk,IT/Technology,Operations,and Human Resources.The executives who participated in the survey were responsible for/highly aware of their organizations investment plans and prioriti
198、es.The distribution of respondents and their organizations is provided in the following figures.We also conducted in-depth interviews with industry executives from various sectors and functional areas.Interviewees are responsible for/highly involved in creating their organizations investment plans a
199、nd priorities.The study findings reflect the views of respondents to our online questionnaire for this research and are aimed at providing directional guidance.Please contact one of the Capgemini experts listed at the end of the report to understand specific implications.%of respondents by location
200、of company headquarters7%AustraliaUSCanadaBrazilUKFranceGermanyNetherlandsItalySpainSwedenChinaJapanIndiaSingapore9%6%6%9%9%9%6%6%6%7%5%7%7%3%Source:Capgemini Research Institute,Global Investment Research,NovemberDecember 2022,N=2,000 respondents from unique organizations.44Capgemini Research Instit
201、ute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTE%of respondents by sectorAutomotiveConsumerproducts manufacturingIndustrial manufacturingBanking andCapital MarketsInsuranceRetailEnergy andUtilitiesPublic SectorTelecom,Media and High-TechLife Sciences and Healthcare
202、10%10%10%10%10%10%10%10%10%10%of respondents by organization revenueBetween$1 and$5 billionBetween$5 and$10 billionBetween$10 and$20 billionBetween$20 and$50 billionMore than$50 billion47%19%13%14%8%Source:Capgemini Research Institute,Global Investment Research,NovemberDecember 2022,N=2,000 responde
203、nts from unique organizations.45Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTE%of respondents by functionGeneral management and strategyFinance and riskIT/technology/digital functionsOperations(manufacturing,supply chain)Human resources35
204、%35%10%10%10%of respondents by designationC-level executivePresidentSVP/EVPAVP/VPSenior directorDirectorPartner/board member8%6%13%17%32%24%1%Source:Capgemini Research Institute,Global Investment Research,NovemberDecember 2022,N=2,000 respondents from unique organizations.46Capgemini Research Instit
205、ute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTEREFERENCES1.Business Standard,“IMF says global economic outlook getting gloomier,risks abound,”November 2022.2.CNBC,“Jamie Dimon says inflation eroding consumer wealth may cause recession next year,”December 2022.3.Ca
206、pgemini Research Institute,What matters to todays consumer:2023 consumer behavior tracker for the Consumer Products and Retail industries,January 2023.4.Yahoo Finance,“Bank stocks tumble as CEOs warn of looming recession in 2023,”December 2022.5.Live Mint,“Supply chain woes a hurdle for Hycross:Toyo
207、tas Yoshimura,”November 2022.6.The New York Times,“CEOs are talking more about recession,”November 2022.7.Automotive News Europe,“Michelin CEO sees mild recession,car market rebound by 2024,”July 2022.8.Consumergoods,“PepsiCo quickly launches 2 DTC snack&beverage sites,”May 12,2020.9.Nordic Interim,
208、“Securing cash flow is a priority in a recession,”December 2022.10.The Wall Street Journal,“Some CFOs are boosting their credit lines as insurance against recession,”November 2022.11.Strategic CIO 360,“CIO technology wish list,”accessed 14th December 2022.12.Capgemini Research Institute,A world in b
209、alance:Why sustainability ambition is not translating to action,November 2022.13.Capgemini Research Institute,How greater intelligence could supercharge supply chains,December 2022.14.Ibid.15.Ibid.16.PR Newswire,“Lowes unveils industry-first digital twin,giving associates superpowers to better serve
210、 customers,”20 September 2022.17.Diageo plc-Analyst/Investor Day transcript,November 16,2021.DHL,The logistics trend radar 5th edition,May 2022.18.Capgemini Research Institute,The people experience advantage:How companies can make life better for their most important assets,October 2022.19.Forbes,“W
211、hy your employees are leaving en masse and the surprising factor that will keep them,”July 2021.20.Capgemini Research Institute,The people experience advantage:How companies can make life better for their most important assets,October 2022.21.Capgemini PoV,Reimagining the people experience from stra
212、tegy to realization,November 2022.22.Capgemini Research Institute,The people experience advantage:How companies can make life better for their most important assets,October 2022.47Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTE23.Ibid.24.G
213、lassdoor,“Diversity&Inclusion Workplace Survey,”September 2020.25.HBR,“How and Where Diversity Drives Financial Performance,”January 2018.26.Capgemini PoV,Reimagining the people experience from strategy to realization,November 2022.27.Capgemini Research Institute,The key to designing inclusive tech:
214、Creating diverse and inclusive tech teams,July 2021.28.Ibid.29.Capgemini Research Institute,Consumer Products and Retail:How sustainability is fundamentally changing consumer preferences,July 2020.30.UNEP,“World needs USD 8.1 trillion investment in nature by 2050 to tackle triple planetary crisis”,M
215、ay 2021.31.Capgemini Research Institute,A world in balance:Why sustainability ambition is not translating to action,November 2022.32.Capgemini Research Institute,Climate AI:How artificial intelligence can power your climate action strategy,August 2020.33.Capgemini Research Institute,Data for net zer
216、o,September 2022.34.Capgemini Research Institute,Conversations for Tomorrow:“Why sustainability means collective action,bolder leadership,and smarter technologies,”March 2021.35.Capgemini Research Institute,Sustainability in automotive:From ambition to action,October 2022.36.Capgemini Research Insti
217、tute,A world in balance:Why sustainability ambition is not translating to action,November 2022.37.Ibid.38.For an organization,being“net zero”means reducing emissions of GHG(CO2,methane,nitrous oxide,etc.)to close to zero and extracting residual emissions from the atmosphere,within a specified period
218、;Capgemini Research Institute,Data for net zero.39.Capgemini Research Institute,A world in balance:Why sustainability ambition is not translating to action,November 2022.40.Capgemini Research Institute,Data for net zero,September 2022.48Capgemini Research Institute 2023Advancing through headwinds:Wh
219、ere are organizations investing?RESEARCH NOTEJerome BuvatHead of Capgemini Research Institute Hiral ShahManager,Capgemini Research Institute Subrahmanyam KVJSenior Director,Capgemini Research Institute AUTHORSNancy ManchandaProgram Manager,Capgemini Research Institute The authors would like to thank
220、 Fernando I Alvarez Tabio,Dr.James Robey,Courtney Holm,Stephan Paolini,Claudia Crummenerl,Jean-Pierre Petit,Mayank Sharma,Victoire Grux,Sam Connatty,Jakobus Lang,Louis Maire,Ashish Yadav Kovuri,Suparna Banerjee,Rupali Chakraborty,and Punam Chavan for their contribution to the report.About the Capgem
221、ini Research Institute The Capgemini Research Institute is Capgeminis in-house think tank on all things digital.The Institute publishes research on the impact of digital technologies on large traditional businesses.The team draws on the worldwide network of Capgemini experts and works closely with a
222、cademic and technology partners.The Institute has dedicated research centers in India,Singapore,the United Kingdom,and the United States.It was recently ranked number one in the world for the quality of its research by independent analysts.Visit us at Research Institute 2023Advancing through headwin
223、ds:Where are organizations investing?RESEARCH NOTEDISCOVER MORE ABOUT OUR RESEARCHCONVERSATIONS FOR TOMORROW#6 Nurturing the future of work how organizations empower talentSUSTAINABILITY IN AUTOMOTIVE:From ambition to actionINTELLIGENT PRODUCTS AND SERVICES:Unlock the opportunity of a connected busi
224、nessDATA FOR NET ZERO:Why data is key to bridging the gap between net zero ambition and actionA WORLD IN BALANCE:why sustainability ambition is not translating to actionTHE PEOPLE EXPERIENCE ADVANTAGEHow companies can make life better for their most important assetsINTELLIGENT SUPPLY CHAIN:How great
225、er intelligence could supercharge supply chainsTHE KEY TO DESIGNING INCLUSIVE TECH:Creating diverse and inclusive tech teams50Capgemini Research Institute 2023Advancing through headwinds:Where are organizations investing?RESEARCH NOTESUBSCRIBE TO LATEST RESEARCH FROM THE CAPGEMINI RESEARCH INSTITUTE
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227、m and manage their business by harnessing the power of technology.The Group is guided everyday by its purpose of unleashing human energy through technology for an inclusive and sustainable future.It is a responsible and diverse organization of over 340,000 team members in more than 50 countries.With
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