1、Quarterly review N8 2024The path to a digital and sustainable economyThe dual transition2Capgemini Research InstituteThe Dual TransitionThe image represents the path to the dual transition.One that is equal parts about leveraging digital technologies,while ensuring it is done so in a way that helps

2、the planet.It points to a future where digital technologies and sustainability complement one another in one seamless transition.3 3At Capgemini,we help organizations prepare for tomorrow by distilling the unique insights and perspectives of leaders from global business,academia,the startup communit

3、y,and wider society.The dual transition:The path to a digital and sustainable economyThrough Conversations for Tomorrow,the Capgemini Research Institute identifies the strategic imperatives for the future of business and the society in which it operates.In this eighth edition of the journal,we explo

4、re why digital transformation needs to progress in harmony with the effort to reach sustainability goals in order to secure robust,long-term economic growth,and how organizations can go about achieving this.It is no longer about choosing one over the other.Our recent research,conducted in partnershi

5、p with Harvard Business School,explores what we are calling the eco-digital eraTM.It shows that around six out of ten organizations believe that digital technology can help realize sustainability goals.Organizations across industries are becoming more digital.Investment in digital transformation fro

6、m scaling up mainstream technologies and implementing cybersecu-rity measures,to reskilling the workforce and automating business processes is expected to result in significant financial and sustainability returns over the next five years.In the eco-digital era,there is greater exploration of the va

7、lue of digital to business,as well as the rapid evolution of emerging technologies such as generative AI and synthetic biology,and greater collaboration giving rise to digital eco-systems.Against this backdrop,sustainability and climate change remain front and center.Only recently,according to some

8、reports,Earth passed the 1.5C threshold,adding even greater urgency.Organizations are increasingly acknowledging the need to evolve,build new business models,and to be sustainable by design.Adding sustainability into business plans as a bolt-on is no longer viable.Digital technologies and sustainabi

9、lity are increasingly intertwined and this will only become more the case.Our research reveals that,over the past five years,through the implementation of digital technologies,organizations have achieved a 24%reduction in energy consumption and a 21%decrease in greenhouse gas(GHG)emissions,among oth

10、er notable environmental benefits.Organizations globally face the challenge of moving forward managing this dual transition to a digital and sustainable economy.And it is this transition that we have focused on in this edition of Conversations for Tomorrow.We would like to thank all the leaders and

11、experts who have enriched this edition of the journal with their insights.By sharing the perspectives of such a diverse range of accomplished individuals,we aim to present a complete view of the key aspects of the eco-digital eraTM.Key contributors include:The former UK treasury minister accredited

12、with coining the acronym BRIC(Brazil,Russia,India and China)The US neuroscientist credited with being the first woman and first life scientist to serve as President of MIT A leading professor at Harvard Business School Senior executives from Google Cloud,Audi,Schneider Electric,Mercedes-Benz Group A

13、G,Logitech,Bayer,and La Banque Postale Capgeminis own subject-matter expertsPulling together such a wide range of views was an extremely instructive exercise for us.We hope you enjoy reading this edition as much as we did putting it together for you.ForewordFernando Alvarez TabioChief Strategy and D

14、evelopment Officer,CapgeminiCapgemini Research InstituteThe Dual TransitionContents4Capgemini Research InstituteThe Dual TransitionP.14P.14THE CEO CORNERP.16Thomas Kurian,Chief Executive Officer,Google CloudP.16Aiman Ezzat,Chief Executive Officer,Capgemini5Capgemini Research InstituteThe Dual Transi

15、tionContentsP.30P.30EXECUTIVE CONVERSATIONS WITHP.32Frank Loydl,Chief Information Officer,Audi AG P.42 Nadge Petit,Chief Innovation Officer,Schneider ElectricP.52 Prof.Suraj Srinivasan,Philip J.Stomberg Professor of Business Administration at Harvard Business School and Head of the Digital Value Lab

16、 at Digital Data and Design(D3)Institute at HarvardP.64Eefje Dikker,Head of Global HR Transformation,Digitization and Operations,Mercedes-Benz Group AGP.72Jim ONeill,Member of the UK House of Lords,Former Goldman Sachs Chief EconomistP.80Bijoy Sagar,EVP and Chief Information Technology and Digital T

17、ransformation Officer,Bayer P.90Adrienne Horel-Pags,Chief Sustainability Officer,La Banque PostaleP.102 Prakash Arunkundrum,Chief Operating Officer,LogitechP.114 Prof.Susan Hockfield,Neuroscientist and Author,President Emerita at MIT6Capgemini Research InstituteThe Dual Transition67Capgemini Researc

18、h InstituteThe Dual TransitionP.126P.126PERSPECTIVES FROM CAPGEMINIWHY SOFTWARE IS THE NEW COMPETITIVE DIFFERENTIATOR P.128Jiani Zhang,EVP and Chief Software Officer,Capgemini EngineeringBUSINESS,MEET PLANET:LEVERAGING TECHNOLOGY,DATA AND ENGINEERING FOR A BRIGHTER FUTUREP.136Vincent Charpiot,EVP an

19、d Head of Group Sustainability Business Accelerator,CapgeminiP.144P.144INSIGHTS FROM THE CAPGEMINI RESEARCH INSTITUTEP.145The Eco-Digital EraTMThe dual transition to a sustainable and digital economy P.150A World In BalanceHeightened sustainability awareness yet lagging actions Executive SummaryThe

20、world is undergoing a dual transition towards a more digital and sustainable future.We at Capgemini call this future the eco-digital eraTM.The term eco-digital economy refers to an economic system that delivers not only financial value but also environmental and social value.In the eco-digital eraTM

21、,there is greater exploration of the value that digital technologies hold for business,in which they play a crucial role in achieving sustainable goals;the rapid evolution of emerging tech such as generative AI and synthetic biology;and the more profound and sophisticated collaboration that can give

22、 rise to effective digital ecosystems.A new eco-digital economy in the makingTogether with Harvard Business School,the latest research by Capgemini Research Institute on the eco-digital eraTM reveals that nearly eight in ten organizations(77%)agree that we are experiencing a dual transition towards

23、a more digital and sustainable world.Suraj Srinivasan,Philip J.Stomberg Professor of Business Administration at Harvard Business School and Faculty Chair of the Digital Value Lab at Harvards Digital,Data,and Design Institute,defines this new era as:“The eco-digital economy refers to the dual transit

24、ion to an economy that delivers not only economic value but also environmental and social value.”Executive Summary8Capgemini Research InstituteThe Dual TransitionDigitization and sustainability go hand in hand.Thomas Kurian,Chief Executive Officer of Google CloudThe eco-digital economy is also an er

25、a of profit with purposeThe eco-digital economy is not just about driving profit.Rather,it targets growth alongside environmental and societal sustainability.Aiman Ezzat,Chief Executive Officer at Capgemini,comments:“We are today at a crossroads:organizations need to deliver growth and prosperity in

26、 a sustainable and ecologically safe way.”While,in theory,higher profits should lead to greater investment,increased productivity,and a rise in wages,in reality,this has not always transpired.Understandably,stakeholders are looking for more meaningful action.Jim ONeill,a former economy minister and

27、a member of the UK House of Lords,and former Head of Asset Management at Goldman Sachs,elaborates further:“This is leading to what I call an era of profit with better purpose,where we cannot afford to avoid sustainability.More and more,we will see politicians attacking companies that just aim to mak

28、e a profit.”The optimal integration of digital technologies with sustainability goals will deliver environmental gains across the entire value chain,as well as delivering societal gains by generating job opportunities,mitigating bias and discrimination,and empowering small businesses,among other sig

29、nificant advantages.Prakash Arunkundrum,Chief Operating Officer at Logitech,talks about Design for Sustainability:“When applied to sustainability,(good design)means thinking about what design decisions can we make at every point of the life-cycle.“Nadge Petit,Chief Innovation Officer at Schneider El

30、ectric shares how eco-digital economy is core focus of businesses:“It(dual transition)is core to our mission of being our customers digital partner for sustainability and efficiency.”Thomas Kurian,Chief Executive Officer of Google Cloud summarizes this new economy:“Digitization and sustainability go

31、 hand in hand.Executive Summary9Capgemini Research InstituteThe Dual TransitionData is at the core of the eco-digital economyData is the key to progress in all aspects of business.Thomas Kurian,Chief Executive Officer at Google Cloud,talking about the significance of data in the eco-digital economy

32、says:“Data is essentially the foundation of digitization.”The widespread availability of technologies such as cloud,semiconductors,graphics processing units(GPUs),the Internet of Things(IoT),sensors,etc.,has enabled more organizations to use data to drive strategic decision-making.Eefje Dikker,Head

33、of Global HR Transformation,Digitization and Operations at Mercedes-Benz Group AG,highlights the importance of implementing a data strategy across various functional areas:“It has become even more important for us to focus on a common,coordinated data approach across departments.”Data is also import

34、ant in setting,measuring,and tracking sustainability goals.Vincent Charpiot,EVP,Head of Group Sustainability Business Accelerator at Capgemini,elaborates:“Smart use of data will also be essential to increasing efficiency across a range of industries and preventing unnecessary emissions.”Software is

35、the new competitive differentiatorOrganizations are continuously searching for new strategies through which to derive greater value from digital technologies.These are now at the core of the business model,rather than being simply a differentiator.Jiani Zhang,EVP and Chief Software Officer,Capgemini

36、 Engineering,elaborates:“Software is no longer an add-on to the product lifecycle and value chain.Rather,its the key to staying ahead of the competition and unlocking new revenue streams.”Today,most organizations are realizing software-driven benefits.For example,73%of organizations achieve faster R

37、&D in existing products and services,and 62%of organizations have used software to gain a competitive advantage(e.g.,an increase in market share).Capgeminis Aiman Ezzat comments:“I believe we are at the dawn of a new transformative era,and we have only scratched the surface of how digital technologi

38、es can expedite the delivery of substantial economic,environmental,and societal benefits.”Executive Summary10Capgemini Research InstituteThe Dual TransitionI believe we are at the dawn of a new transformative era,and we have only scratched the surface of how digital technologies can expedite the del

39、ivery of substantial economic,environmental,and societal benefits.”Aiman Ezzat,Chief Executive Officer,CapgeminiGenerative AI is top-of-mind for industry leadersGenerative AI has the potential to become a powerful transformative tool in the eco-digital economy.Following unprecedented growth over a s

40、hort time period,it has already had significant impact across sectors including manufacturing,healthcare,finance,and logistics.Generative AI has a wide range of applications,from creating text,images,and videos in different styles to generating tailored content,including speech-to-text conversion an

41、d voice recognition.Bijoy Sagar,EVP,Chief Information and Digital Transformation Officer(CIDO)at Bayer speaks about its significance:“I believe that the next decade is truly going to be the decade of AI especially of text-based AI.”Jim ONeill mentions the possible application of generative AI in dru

42、g development:“If you can teach a computer to find new antibiotics,that is one of the most powerful positives of AI I can think of.”Aiman Ezzat elaborates on how organizations can benefit from the adoption of generative AI:“By using generative AI to automate processes,optimize resources,implement pr

43、edictive maintenance,optimize the supply chain,mitigate risks,and improve decision-making,organizations can achieve cost savings and enhance overall financial performance.”It is important to balance exploration of emerging digital innovations with legacy landscapeAdoption of new technologies needs t

44、o be balanced with respect for the existing social,cultural,and organizational considerations in order to derive maximum Executive Summary11Capgemini Research InstituteThe Dual Transitionvalue.Frank Loydl,Chief Information Officer,Audi shares:“We needed to transform the existing architectural landsc

45、ape such that new technologies could operate using the existing data to create value.”Adoption of digital technologies also means re-engineering the skill sets of the existing workforce.Mercedes-Benzs Eefje Dikker comments:“We are entering a digital era in which most people will be expected to adapt

46、 to working with new technology.”Training programs to help long-serving employees upskill and stay relevant will nurture a positive culture amid digital transformation initiatives.Adrienne Horel-Pags,Chief Sustainability Officer at La Banque Postale says:“The only way to drive change is to train and

47、 reskill people continuously.”Collaboration is the key to success in the eco-digital eraTMIn the eco-digital economy,organizations and,indeed,nations can no longer afford to operate in isolation.Collaborative ecosystems will become imperative to harnessing the various digital technologies effectivel

48、y for sustainable growth.Jim ONeill emphasizes the need for all nations to work together:“When it comes to digitalization and sustainability,world leaders have all got to be sitting in the same room.At the moment,they are not.”Bayers Bijoy Sagar adds:“We will achieve sustainability goals only if eve

49、rybody in the ecosystem works on them together.”The emergence of any new technology is associated with ethical concerns around potential misuse.Emerging technologies such as generative AI and synthetic biology are not immune to this ethical conundrum.Susan Hockfield,Professor of Neuroscience and Pre

50、sident Emerita at MIT,reiterates:“We need to set strongly enforced perimeters but,unfortunately,we do not have strong international agreement.”Collaborative commitment between the various participants is required to facilitate the formulation and implementation of clearly defined boundaries around t

51、he use of emerging technologies.Executive Summary12Capgemini Research InstituteThe Dual TransitionGet the culture rightA culture that encourages experimentation is essential to the success of this new eco-digital economy.It will also rely on ensuring access to education,information,and facilitating

52、conditions,is available to everyone,irrespective of their gender or socio-economic background.Unfortunately,there remain subtle barriers to women in particular that will result in the early death of some brilliant ideas.Susan Hockfield highlights this challenge in practical terms:“Less than 4%of ven

53、ture-capital dollars go into women-founded companies.As a way of overcoming such obstacles at a structural level,Eefje Dikker advises organizations to be more forward-looking:“A strategy may have been successful for the preceding 10 years,but this does not guarantee success for the next 10.When the

54、organization is faced with waves of change,leaders need to avoid the complacency of living in past glory and move forward with their eyes open.”Executive Summary13Capgemini Research InstituteThe Dual TransitionThe CEO Corner Aiman Ezzat Chief Executive Officer,Capgeminiin discussion with Thomas Kuri

55、anChief Executive Officer,Google CloudThe CEO Corner14Capgemini Research InstituteThe Dual TransitionThe CEO Corner15Capgemini Research InstituteThe Dual TransitionThomas joined Google in November 2018 as the Chief Executive Officer of Google Cloud.Prior to Google,Thomas spent 22 years at Oracle,whe

56、re most recently he was President of Product Development.Before that,Thomas worked at McKinsey as a business analyst and engagement manager.His nearly 30 years of experience have given him a deep knowledge of engineering,enterprise relationships,and leadership of large organizations.Thomas Kurian,Ch

57、ief Executive Officer,Google CloudAiman Ezzat,Chief Executive Officer,CapgeminiWith more than 20 years experience at Capgemini,Aiman Ezzat has a deep knowledge of the Groups main businesses.He has worked in many countries,notably the UK and the US,where he lived for more than 15 years.Aiman was appo

58、inted Chief Executive Officer in May 2020;prior to that,from 2018 to 2020,he served as the Groups Chief Operating Officer and,from 2012 to 2018,as Chief Financial Officer.Aiman is also on the Board of Directors of Air Liquide and is a member of the Business Council and the European Round Table for I

59、ndustry.The CEO Corner16Capgemini Research InstituteThe Dual TransitionWhat is your view of the dual transition to a more sustainable and digital economy?Thomas:We believe that digitization and sustainability go hand in hand.Today we are seeing digital services span virtually every part of a consume

60、rs life from the way they find information to the way they buy products and pay for them.We are focused on enhancing the consumer experience and bringing in new experiences in search and maps,as well as conversational assistants and more.We believe these digital services can help people make more su

61、stainable decisionsin fact,in 2022,we reached our goal to help one billion people make more sustainable choices through our products,and we continue on this journey.Through our cloud business,we offer organizations a new way to drive impact for their business and sustainability.We help organizations

62、 harness AI for improved sustainability measurement to build resilience,AI-powered insights to use energy and resources more efficiently in operations and supply chains to reduce costs,and AI tools to unlock new growth opportunities and markets while accelerating sustainability impact.THE RISE OF TH

63、E ECO-DIGITAL ECONOMYThomas KurianDigitization and sustainability go hand in hand.The CEO Corner17Capgemini Research InstituteThe Dual Transition Aiman:We are today at a crossroads organizations need to deliver growth and prosperity in a sustainable and ecologically safe way.The ongoing shift toward

64、s a more digital and sustainable world not only boosts economic strength but also aligns with social and environmental responsibilities.By putting digital inside everything,from product development to manufacturing and operations,businesses can leverage vast amounts of data and become insights-drive

65、n,in real time creating opportunities for more efficient,resilient,and sustainable business models.Hence,we are totally aligned with the idea of an eco-digital economy.In scale and impact,the eco-digital eraTM is comparable to the industrial revolution.It is unlike anything that has come before and,

66、to date,society has harnessed only a fraction of the overarching potential of digital technologies.In the same vein,going forward,sustainability will be embedded in all business practices,driven by digital,to deliver economic,environmental,and social value.Technology will drive this dual transition,

67、not just in the way we enable business,but in the way we create value.In a nutshell,technology can enable business leaders to do more,or better,even with less.Achieving the necessary dramatic decrease in carbon emissions will require massive investment and a huge creative effort.Organizations will n

68、eed to harness digital to streamline their core businesses,in order to free up investment to support their dual transition.I believe we are at the dawn of a new transformative era,and we have only scratched the surface of how digital technologies can help expedite the delivery of substantial economi

69、c,environmental,and societal benefits.Aiman EzzatWe are today at a crossroads organizations need to deliver growth and prosperity in a sustainable and ecologically safe way.The CEO Corner18Capgemini Research InstituteThe Dual TransitionIn this digital and sustainable era,why do you think organizatio

70、ns,irrespective of size,are now thinking cloud-first?Thomas:Cloud has always been about simplifying technology,making it more intuitive.The original premise of cloud computing is ease of access to technology without the responsibility of running it yourself.For example,for an organization to underst

71、and its inventory position or to understand how to segment its customers,it requires access to large-scale data-processing infrastructure.Hence,data is essentially the foundation of digitization.You must have a strong data foundation,and cloud platforms such as Googles BigQuery enable this.On top of

72、 that,people increasingly want to use AI to automate workflow,streamline processes,and reach customers more effectively.For all these reasons,they need the scale of processing that cloud providers can offer for packaged AI models,facilitating training and operational efficiency.Cloud solutions also

73、protect data,systems,and critical infrastructure from cyberattacks.Google Cloud not only helps organizations digitally transform,we help customers run their businesses more sustainably.We have matched 100%of our annual global electricity use with renewable energy every year since 2017,and we have ma

74、de strides towards our goal of running 24/7 carbon-free by 2030,providing a more sustainable infrastructurefor customers.Aiman EzzatThe CEO Corner19Capgemini Research InstituteThe Dual TransitionI believe we are at the dawn of a new transformative era,and we have only scratched the surface of how di

75、gital technologies can help expedite the delivery of substantial economic,environmental,and societal benefits.Thomas KurianGoogle Cloud not only helps organizations digitally transform,we help customers run their businesses more sustainably.Aiman:Cloud technologies and solutions today deliver an eas

76、y adoption path while improving upon legacy systems.The ability to scale and manage the ever-growing volume of data makes it an economic and sustainable option.Cloud enables us to deliver our leading capabilities in business transformation,infrastructure,applications,data,AI and engineering,in an ar

77、ray of industry-specific use cases and accelerators,to assist clients in their digital and sustainable transformation journeys.Cloud solutions provide us a path to leverage emerging technologies such as AI in a sustainable and economically feasible way.Aiman EzzatCloud enables us to deliver our lead

78、ing capabilities in business transformation,infrastructure,applications,data,AI and engineering.The CEO Corner20Capgemini Research InstituteThe Dual TransitionWhere do you think AI can add the most value for large organizations?Thomas:AI applies to large organizations,typically in four places.First,

79、some organizations,like Home Depot,are using AI to streamline and improve core internal processes,such as accounts receivable management,their HR/IT helpdesk,procurement processes,and supply chain.A second area is productivity.AI can help onboard employees more quickly,helping to scale support to mo

80、re customers.An example is the work were doing with Victorias Secret,where were helping them build AI systems and agents that can identify the best products for a customer while they are shopping in a store.The third area is innovating around customer interfaces.This takes many forms:helping Wendys

81、streamline how people order food,helping Instacart streamline customer service,and helping Verizon streamline the call center.Its all about integrating that customer experience across all interfaces and channels:web,mobile,point of sale,and call center.The fourth area is experimenting to build compl

82、etely new experiences featuring our products,essentially changing the nature of their businesses.Organizations are using AI to create new products or fundamentally change how their existing products function.AI FOR DRIVING VALUEThe CEO Corner21Capgemini Research InstituteThe Dual TransitionOrganizat

83、ions are using AI to create new products or fundamentally change how their existing products function.Thomas Kurian Aiman:Today,generative AI is already a top agenda item in boardrooms,and most organizations view the technology as a disruptor.The potential of generative AI to drive innovation and im

84、prove efficiency and productivity extends to nearly all functions and has applications across all industries.We have been working with clients on generative AI for several years much before the technology drew mainstream attention-and have been leveraging it to drive specific business benefits,in pa

85、rticular in the areas of life sciences,consumer product and retail,and financial services.Use cases are wide-ranging,from creating unique content and automating and accelerating tasks to shaping personalized experiences and generating synthetic data.Our own research reveals that generative AI has th

86、e greatest potential within the IT,sales and customer service,and marketing functions.Organizations can use generative AI for personalization;extracting real-time insights;intelligent customer service;predictive analytics;continuous improvement;and optimized customer journeys.These benefits ultimate

87、ly lead to greater customer engagement,satisfaction,and loyalty.Generative AI is also great at producing personalized marketing;pricing optimization,demand forecasting,improved customer experience,enhanced sales support;and data-driven decision-making.This helps organizations attract more customers,

88、foster life-long content-driven conversations,and boost conversions.By using generative AI to automate processes,optimize resources,implement predictive maintenance,optimize the supply chain,mitigate risks,and improve decision-making,organizations can achieve cost savings and enhance overall financi

89、al performance.Aiman EzzatBy using generative AI to automate processes,optimize resources,implement predictive maintenance,optimize the supply chain,mitigate risks,and improve decision-making,organizations can achieve cost savings and enhance overall financial performance.The CEO Corner22Capgemini R

90、esearch InstituteThe Dual TransitionHow does Google Cloud help organizations develop AI responsibly,safeguarding security and privacy?Thomas:Our vision for generative AI is to build agents that assist people in their work every day.We are doing this in three ways.First,our foundational platform,Vert

91、ex,allows an organization to discover and explore the various types of generative AI models,pick the right one for them,tune it for their data,and then integrate it into their applications.We also provide a variety of tools to improve the quality of results.For example,we give organizations groundin

92、g1,to limit hallucination in the model,and we give customers responsibility controls to filter responses that a model can give,for example,to protect against violent answers or harmful images.On security and privacy,Vertex offers the ability to keep data completely private,and organizations can choo

93、se the location where their data is used.Neither Google nor any third party has access to their data.This includes the data that the model accesses,any inputs or feedback that your users may give,and any outputs from the model.The second way we bring generative AI to customers is by providing specif

94、ic packaged agents for assisting developers.For example,a programming assistant to help you write better software;an analytics assistant to help you understand your data better;and a cybersecurity agent to support cybersecurity investigation and protection.Weve also integrated these agents into our

95、collaboration tools to help users write,build beautiful slides,or collaborate more closely.Finally,customers can build quickly,securely,and cost-effectively using modern infrastructure that is optimized for AI.Thomas KurianOur vision for generative AI is to build agents that assist people in their w

96、ork every day.1 The techniques used to reduce the risk of AI hallucination are referred to as“grounding”and/or“aligning”the model.The CEO Corner23Capgemini Research InstituteThe Dual TransitionCan you tell us a little bit more about how youre helping your clients to transition to sustainability?Thom

97、as:We address sustainability in a few ways.First is our commitment to control our own carbon footprint,which we have been doing for decades now.Googles data centers are some of the most efficient in the world,operating about 1.5 times more efficiently than a traditional data center.In addition,in se

98、veral of our locations,we are over 90%carbon-free.Second,we help customers understand the carbon footprint of their own cloud with Active Assist Unattended Project Recommender,which sits in Googles cloud console.This allows our customers to measure their own carbon footprint when they use our cloud

99、services.Third,weve identified critical areas where cloud can help customers build more sustainable businesses.For example,water usage or the impact of electric vehicles on natural resources.Weve taken each major area,and we work with a partner to help measure their impact on the environment.For exa

100、mple,to measure the impact on sourcing of products in consumer-packaged goods,organizations such as Unilever are using the Earth Engine from Google to take satellite images of deforestation to help them understand whether and how their sourcing of raw materials is contributing to it.Finally,we also

101、wanted to help with climate tech financing,and have collaborated with HSBC to provide financing options to companies who are part of our Google Cloud Ready-Sustainability program.GROWING SUSTAINABLYThe CEO Corner24Capgemini Research InstituteThe Dual TransitionThomas KurianGoogles data centers are s

102、ome of the most efficient in the world,operating about 1.5 times more efficiently than a traditional data center.Aiman:Today,the call for climate action resonates deeply with business leaders.Its not just the right thing to do its also good business.As part of our Business to Planet philosophy,we ha

103、ve developed a portfolio of services designed to navigate the transition,building in innovation and sustainable performance,at scale.We work closely with global clients on several topics,including:Sustainability strategy and governance:Achieving greater sustainability requires vision and a coordinat

104、ed approach.We help clients develop a pragmatic roadmap that embeds measurable commitments,engages employees,customers,and suppliers,and delivers tangible value for stakeholders and the planet.Developing sustainable products:There is increased pressure on manufacturers,from consumers,shareholders,an

105、d regulators,to create products that generate lower CO2 emissions,use less water and energy,and generate minimal waste.We use our engineering expertise to redesign and configure products whether vehicles,airplanes,or packaged food and drink focusing on sustainable materials,cost constraints,and reus

106、ability.Re-engineering for sustainable operations,manufacturing,and supply chain:Scope 3 emissions represent a large percentage of a manufacturers emissions,from design and procurement to distribution.As many of these sources are outside a companys direct control,they are hard to track and report.We

107、 help clients meet this complex challenge through re-engineering supply chains,lifecycle assessments,energy efficiency,and smart data collection.The CEO Corner25Capgemini Research InstituteThe Dual TransitionMigrating to sustainable technology:Organizations must design and plan for the integration o

108、f sustainable IT to reduce the environmental impact of IT operations.We help our clients evaluate the purchase,use,management and disposal of IT devices and equipment;champion sustainability through employee engagement;and move towards greater take-up of environmentally sustainable technologies.We a

109、re also exploring opportunities leveraging technology for green,especially with the advent of climate technologies.Maximizing ESG management and reporting:We help organizations collate the data they need,analyze and evaluate,monitor progress,and report confidently on their ESG performance to custome

110、rs,shareholders,and regulatory bodies.The CEO Corner26Capgemini Research InstituteThe Dual TransitionAs part of our Business to Planet philosophy,we have developed a portfolio of services designed to navigate the transition,building in innovation and sustainable performance,at scale.Aiman EzzatWhat

111、is the role of technology in driving sustainability and what is the intersect between generative AI and sustainability?Thomas:First,AI can help improve the efficiency of power consumption in our data centers.We have implemented an AI system that measures power consumption very accurately and optimiz

112、es thermodynamic flow for air cooling and water cooling in our data centers.They are now fully controlled and adjusted by an AI model,and they have improved efficiency hugely.Second,were helping organizations use AI models to address sustainability.A practical example is wind power,which is sustaina

113、ble but unpredictable.Weve used our AI models to more accurately forecast wind energy generation for utilities.The third initiative is continually optimizing the size and efficiency of our models.The smaller and more efficient they are,the less impact they have on the environment.The perfect example

114、 of that is the work weve done with Samsung.We took a model that processes images and downscaled it so efficiently that it can run on a phone.This is part of our effort to advance AI while maintaining our sustainability commitments.Thomas KurianAI can help improve the efficiency of power consumption

115、 in our data centers.The CEO Corner27Capgemini Research InstituteThe Dual Transition Aiman:Technology plays a pivotal role in sustainability.Take the case of climate tech.Climate technologies will be critical to achieving ambitions.Examples of climate tech include renewable energy,carbon storage,bio

116、fuels,low-carbon hydrogen,and synthetic biology.These innovative technologies will drive significant emissions reduction and will be integral to new business and operating models.Equally,emerging technologies such as generative AI and digital twins can play a significant role in enabling and driving

117、 new sustainability use cases.Data can aid enormously in building a circular economy and understanding positive and negative environmental impacts.What do you see as the next innovation around generative AI?Thomas:Today,models are really assisting people one skill at a time.Were developing models to

118、 think and process information the way that humans do that is multimodally;processing video,text,and audio simultaneously.So,one boundary is enhancing the way models think to more closely represent the way that humans think.The second is interacting with them in more natural ways.Today,models intera

119、ct with prompts.Were working to make the process more natural.Its not just text;increasingly,you interact with models with other modalities.For example,you can ask it to extract information from a video feed.Third,were working with reasoning and advanced mathematical concepts.The current generation

120、of models look on the internet to find the most acceptable answer,rather than understanding the mathematical bases that lead to it.We are building models to develop a humanistic reasoning process,making it easier for users to interact with them.The CEO Corner28Capgemini Research InstituteThe Dual Tr

121、ansitionThomas KurianWere developing models to think and process information the way that humans do.Thomas KurianChief Executive Officer,Google CloudAiman Ezzat Chief Executive Officer,CapgeminiEmerging technologies such as generative AI and digital twins can play a significant role in enabling and

122、driving new sustainability use cases.The CEO Corner29Capgemini Research InstituteThe Dual TransitionExecutive Conversations30Capgemini Research InstituteThe Dual TransitionExecutive conversations withExecutive Conversations31Capgemini Research InstituteThe Dual TransitionAUDI AGFrank LoydlChief Info

123、rmation OfficerP.32SCHNEIDER ELECTRICNadge PetitChief Innovation OfficerP.42HARVARD BUSINESS SCHOOLProf.Suraj SrinivasanHarvard Business School and Head of the Digital Value Lab at Digital Data and Design(D3)Institute at HarvardP.52MERCEDES-BENZ GROUP AGEefje DikkerHead of global HR Transformation,D

124、igitization&OperationsP.64UK HOUSE OF LORDSJim ONeillMember of the UK House of Lords,Former Goldman Sachs Chief Economist P.72BAYERBijoy SagarEVP and Chief Information Technology and Digital Transformation OfficerP.80LA BANQUE POSTALEAdrienne Horel-PagsChief Sustainability OfficerP.90LOGITECHPrakash

125、 ArunkundrumChief Operating OfficerP.102MITProf.Susan HockfieldNeuroscientist and Author,President EmeritaP.11432Capgemini Research InstituteThe Dual TransitionExecutive ConversationsFRANK LOYDLChief Information Officer Audi AGExecutive Conversations33Capgemini Research InstituteThe Dual TransitionF

126、rank Loydl started his career with Electronic Data Systems,gaining extensive experience in various positions in the manufacturing sector,particularly in the automotive industry with General Motors.He subsequently worked with Logica CMG and EMC Corporation before moving to head delivery management at

127、 T-Systems for Volkswagen AG in 2009.He took on this task directly with the group in 2013 and since 2016 has been responsible for software development within the group.During his time in the Volkswagen Groups IT department,Frank established not only agile work methods but also a value-oriented manag

128、ement model and oversaw the process of internal change to make the organization into an agile enterprise.Frank Loydl has been the CIO of Audi AG since February 1,2018.DRIVING VALUE,WITH DATAAudi AG is one of the worlds leading producers of premium cars.It is a part of the Volkswagen Group,and is hea

129、dquartered in Ingolstadt,Bavaria,Germany.The company operates in more than 100 markets and has 85,000+employees worldwide.The group reported a revenue of 50.4 billion in the first three-quarters of 2023.Audi has set a goal of introducing only fully electric models to the market from 2026 onwards,acc

130、ompanied with gradual phasing out of production of vehicles with internal combustion engines by 2033.Executive Conversations34Capgemini Research InstituteThe Dual TransitionTRANSFORMING LEGACY APPLICATIONS TO IMPLEMENT NEW TECHNOLOGIESCan you give us an overview of Audis transformation journey?At Au

131、di,we started our transformation in 2018,repositioning IT from a responsive department to a leading strategic function.Audi has a 100-year-plus history,which is reflected in the technology base.The biggest challenge was to navigate an IT landscape of over 3,000 applications designed in the late 1970

132、s and 1980s.So,it was not just about the adoption of new technologies.We needed to transform the existing architectural landscape such that new technologies could operate on the existing data to create value.We need to figure out how to balance innovations with legacy.Effective coordination of socia

133、l,cultural,and organizational changes is required to realize the true value of newer technologies.Frank Loydl,Chief Information Officer,Audi AGExecutive Conversations35Capgemini Research InstituteThe Dual TransitionSOFTWARIZATION Softwarization is one of the biggest trends in the automotive industry

134、.How has this impacted your business?As the market changes,with software as a service point,we need to understand how much existential risk we are willing to take.Hence,the entire portfolio is discussed in this context.The strategy is to decide what we can manage in-house and where we need to partne

135、r.I have started to create our in-house software development centers,in partnership with top-quality software developers,to reconfigure our supply base.For the rest,we identify partners based on requirements,quality,compliance issues,etc.There will be much more cooperation with other software player

136、s,and this is something that has already started.We needed to transform the existing architectural landscape such that new technologies could operate on the existing data to create value.I have started to create our in-house software development centers,in partnership with top-quality software devel

137、opers,to reconfigure our supply base.Executive Conversations36Capgemini Research InstituteThe Dual TransitionWhat is your road map for future usage of AI,augmented reality(AR),and virtual reality(VR)?Currently,we have a very strong team working on generative AI.Let me give you a few examples.For the

138、 past couple of years,we have been designing tire rims with the help of generative AI.In concrete terms,FelGAN works either by rapidly proposing a large number of photo-realistic designs itself or by recombining existing designs in a targeted way.In this way,the system acts as a kind of spontaneous

139、idea hub for Audis rim design team,allowing them to exchange new versions and variations.Another example is the roll-out of AI for quality control of spot welds in car-body construction.Using AI,we are able to analyze 1.5 million spot welds on 300 vehicles in each shift.Previously,using an ultrasoun

140、d model,we were only able to check around 5,000 spot welds per vehicle.Similarly,audio streams are being used to diagnose car problems.In general,we see a huge potential in AI.On the one hand,to improve our internal processes,on the other hand,to offer a better customer experience.We are also experi

141、menting with AR.However,we do work quite a bit with digital twin and simulations.That said,usage of VR is largely limited to marketing aspects,often used in showrooms,and not so much in product design.For the past couple of years,we have been designing tire rims with the help of generative AI.Execut

142、ive Conversations37Capgemini Research InstituteThe Dual TransitionHARNESSING DATAWhat are the key value drivers that organizations can use to realize the potential of digitalization?Availability of data is the key value driver.People think that our data is in databases,which is not true.There are ap

143、plications where more than 50,000 lines of code are required to interpret the data.For example,in a dealer-network-based sales approach,there is a local in-country subsidiary that sells to big dealers.They,in turn,sell to smaller dealers,from whom the end-customers purchase the cars.This results in

144、sales data being distributed in various formats across thousands of networks in different geographies.This makes sales data incomparable or inaccessible in real time,making it impossible to generate insights for decision-making.We need to extract this data from these disparate databases and make it

145、available to people or systems in a form that they can actually use.This is the maximum value driver we can provide to the business.There are applications where more than 50,000 lines of codes are required to interpret the data.Availability of data is the key value driver.Executive Conversations38Ca

146、pgemini Research InstituteThe Dual TransitionHow will this kind of data availability create value?There are two clear advantages that come with wider availability of data.First,we will reduce redundancies significantly and thereby have the opportunity to create synergies.Secondly,we will be able to

147、respond faster,not only to customer requirements in respect of the end product but also to any kind of requirement in the system.It will also help create new products and optimize existing ones.We need to extract this data from these disparate databases and make it available to people or systems in

148、a form that they can actually use.This is the maximum value driver we can provide to the business.Executive Conversations39Capgemini Research InstituteThe Dual TransitionTHE VALUE OF COLLABORATIONHow important will collaboration be in creating new business value in the digital landscape?Partnering g

149、ives us access to knowledge we dont have,not only in terms of product development but also in terms of direct cultural interchange.For example,we have a successful joint venture with Capgemini called XL2 to provide technology and consulting services.The joint venture helped us to become faster and i

150、mproved quality,and we are now able to provide services we couldnt previously,while creating new business models.Similarly,we have a hybrid strategy for cloud.We are big enough to derive value from economies of scale,having our own cloud for the group.However,we also use public cloud,which allows us

151、 to access new technologies and scale software products rapidly.For example,our partnership with 4.screen helps us deliver more comprehensive,context-related real-time information to our customers through our in-car infotainment systems.Executive Conversations40Capgemini Research InstituteThe Dual T

152、ransitionPREPARING YOUR PEOPLEHow do you plan to prepare the workforce for this fast-evolving environment?There are assessment centers where trainers will evaluate employees interested in upskilling.We have developed a transformation program that consists of 18 modules,lasting about two years.These

153、modules are customized based on workforce level and geography.Its all about preparing for the future.Executive Conversations41Capgemini Research InstituteThe Dual TransitionThere are assessment centers where trainers will evaluate employees interested in upskilling.Frank Loydl,Chief Information Offi

154、cer,Audi AG42Capgemini Research InstituteThe Dual TransitionExecutive ConversationsNADGE PETITChief Innovation OfficerSchneider ElectricExecutive Conversations43Capgemini Research InstituteThe Dual TransitionNadge Petit is the chief innovation officer of Schneider Electric and a member of its global

155、 executive committee.She oversees Schneider Electrics external innovation activities,including its corporate ventures arm,SE Ventures,as well as its incubations,partnerships,joint ventures,and prosumer businesses.Nadge joined Schneider Electric in 2004 and has held various operational and management

156、 positions globally.In May 2023,Nadge became a member of the supervisory board of E.ON SE,serving as a member of that organizations Innovation and Sustainability Committee.Nadge is based in Boston,USA.POWERING A SUSTAINABLE FUTURESchneider Electric is a 180+years old French multinational company,whi

157、ch specializes in digital transformation of energy management and automation.The company reported a revenue of 36 billion in 2023.It has featured in both,Corporate Knights Global 100 list of Most Sustainable Corporations in the World and Dow Jones Sustainability World Index for 13 consecutive years.

158、Executive Conversations44Capgemini Research InstituteThe Dual TransitionAs the Chief Innovation Officer of a firm at the center of the energy transition,how do you assess your progress and that of your customers toward net zero?At Schneider Electric,we often say that our scope 1 and 2 emissions beco

159、me our customers scope 3.So,our own progress toward net zero is crucial to ensuring that our customers can also get there.We are proud of our commitment,which has four key elements:2025:Become carbon neutral in our operations 2030:Achieve 25%absolute carbon reduction across our entire value chain,an

160、d get our operations net zero ready 2040:Become end-to-end carbon neutral across our value chain 2050:Achieve net zero CO2 emissions across our entire value chainWere certainly seeing a desire across industries and sectors to progress to net zero.This aligns with broader,undeniable trends toward gre

161、ater sustainability,whether from a policy or public sentiment standpoint.Nadge Petit,Chief Innovation Officer,Schneider ElectricExecutive Conversations45Capgemini Research InstituteThe Dual TransitionSCHNEIDER ELECTRIC AND THE DUAL TRANSITION TO SUSTAINABILITY AND DIGITALIt(dual transition)is core t

162、o our mission of being our customers digital partner for sustainability and efficiency.How is the dual transition to a digital and sustainable world transforming Schneider and its customers?We embarked on this dual transition many years ago.Its ingrained in what we do thats why it is core to our mis

163、sion of being our customers digital partner for sustainability and efficiency.For the grid to become more sustainable,it needs to become more flexible,more adaptable and,yes,digital.It needs to evolve from the analog,unidirectional transmission of energy from plant to consumer,to become a truly mult

164、i-directional platform,through which energy is orchestrated from the grid to prosumers.For prosumers,our upcoming range of home-energy management products will accelerate the adoption of clean-energy technologies.These will work in synergy with our portfolio companies including EnergySage,our online

165、 comparison marketplace operator,to help our customers choose a home energy system,as well as Qmerit,an installation partner,to facilitate easy and smooth installation.For the grid,weve coupled the demand-side capabilities of Uplight,a customer-engagement platform,and Autogrid,a provider of distribu

166、ted energy resource-management systems,with the advanced network-management software from our digital grid business.And,in the electric vehicle(EV)space,EVConnect can select,deploy and manage reliable EV-charging solutions.Executive Conversations46Capgemini Research InstituteThe Dual TransitionWorki

167、ng together,these five portfolio companies offer a complete,end-to-end set of solutions spanning every segment of the grid-to-prosumer journey.This helps to simplify the experience and remove friction for the consumer and accelerate progress toward a sustainable future.ECOSYSTEMS FOR A GREENER PLANE

168、TWhat is the role of collaboration and ecosystems in our collective transition to net zero?Collaboration is essential.Ecosystems need to be able to align to create and realize efficiencies between them.This is equally true,whether its utilities orchestrating prosumers assets for virtual power plants

169、(VPPs)to relieve stress on energy infrastructure,or whether its at a more micro level,addressing the systems in a particular facility,or even within the home,sharing data and working together to optimize efficiencies,and power consumption and generation.Collaboration is essential.Ecosystems need to

170、be able to align to create and realize efficiencies between them.Executive Conversations47Capgemini Research InstituteThe Dual TransitionAI has the potential to be transformative as we build the new energy landscape.NEXT-GENERATION GRIDSWhat are the key technologies that you believe will have an out

171、sized impact on energy grids?I would first say VPPs which are formed when we aggregate the energy storage of groups of prosumers to augment traditional generating capacity.VPPs can rapidly add significant surge capacity to the grid and,when integrated into advanced distribution management systems(AD

172、MS),the resulting automation is game-changing.Such prosumer technologies will have a huge impact,and all are necessary to equip the grid for the new(electrified,digital)energy landscape.How is Schneider harnessing emerging tech such as artificial intelligence(AI)to build solutions for the future?AI

173、has the potential to be transformative as we build the new energy landscape.AI-powered VPPs can aggregate and optimize large portfolios of distributed energy resources(DERs),from EVs and battery storage to solar panels and smart loads,using algorithms to account for each DERs specific characteristic

174、s and maximize overall utilization.This,in turn,reduces the need for balancing with inefficient and polluting sources(such as gas peaking plants).It can also strengthen the resiliency of the grid,Executive Conversations48Capgemini Research InstituteThe Dual Transitionpredicting maintenance needs and

175、 minimizing downtime,and can help us in the discovery of novel materials for batteries,carbon capture,and hydrogen production.Increasingly,AI will be at the heart of the modern electrical grid,to develop predictive models of energy production and consumption,and to manage distributed resources accor

176、dingly.How does interoperability enable innovation and sustainability?Interoperability can be a huge accelerator,while closed standards and hardware walled gardens can often be a drag on innovation.Thats why,as we develop new technologies,products,and services in the prosumer energy space,we aim to

177、be hardware-agnostic and interoperable.So,for example,our home energy systems can interoperate with components from other providers,and our software-based grid-management solutions are designed to coexist with a broad array of infrastructure and hardware.Increasingly,AI will be at the heart of the m

178、odern electrical grid,to develop predictive models of energy production and consumption,and to manage distributed resources accordingly.Interoperability can be a huge accelerator.Executive Conversations49Capgemini Research InstituteThe Dual TransitionWhat are the roles of prosumers and microgrids?Ho

179、w do you envision the energy grid of the future?The energy grid of the future will be distributed and multidirectional.We have two joint ventures to deliver customized Energy-as-a-Service solutions:AlphaStruxure and GreenStruxure.These help consumers and communities improve energy resilience and sus

180、tainability,while also reducing performance risk and capital burden.At one end of the scale,you have large projects,such as the new terminal at JFK airport or the bus transit system for Montgomery County,Maryland.At the other end,there are small,local microgrids,bringing reliable power supply to rem

181、ote locations in developing countries.Microgrids make all of this progress happen.When a microgrid connects multiple prosumers,each with their own power generation and storage capacity,you unlock the true potential of this adaptable and flexible grid.The energy grid of the future will be distributed

182、 and multidirectional.Executive Conversations50Capgemini Research InstituteThe Dual TransitionHow do you build a culture of innovation and sustainability in a large firm such as Schneider?We all know that the culture of large organizations can stifle innovation.To help overcome this challenge,we hav

183、e set up our Innovation at the Edge organization.It acts as an internal innovation engine,with our own R&D resources,with external input from our investments in early-stage innovative companies.This helps us discover,develop,and deliver the disruptive technologies that we need to progress towards ou

184、r collective goal of a new,electrified,and digital energy landscape.If you had a magic wand,what would you change to make the planet more sustainable?More electrification!We now have the tools and the technologies available to bring emissions under control.We can retrofit existing buildings and indu

185、strial operations;we can electrify;we can digitize but what I would change first would be to bring every building,every structure,into the prosumer equation.Imagine if every home,every commercial or industrial building was able to produce its own clean,renewable energy,storing the excess and feeding

186、 it back into a digital,intelligent grid for use when needed.This is the dramatic change Id like to see.IN CLOSINGExecutive Conversations51Capgemini Research InstituteThe Dual TransitionImagine if every home,every commercial or industrial building was able to produce its own clean,renewable energy,s

187、toring the excess and feeding it back into a digital,intelligent grid for use when needed.Nadge Petit,Chief Innovation Officer,Schneider Electric52Capgemini Research InstituteThe Dual TransitionExecutive ConversationsPROF.SURAJ SRINIVASAN Philip J.Stomberg Professor of Business Administration at Har

188、vard Business School and Head of the Digital Value Lab at Digital Data and Design(D3)Institute Harvard Business SchoolExecutive Conversations53Capgemini Research InstituteThe Dual TransitionProf.Suraj Srinivasan is the Faculty Chair of the Digital Value Lab at Harvards Digital,Data,and Design Instit

189、ute and the Philip J.Stomberg Professor of Business Administration at Harvard Business School.He is a widely published author and the recipient of several awards including Greenhill Award for Outstanding Faculty Service and the Apgar Award for Innovation in Teaching from the Harvard Business School

190、and the Management Science Distinguished Service Award.Capgemini Research Institute spoke to him about the role of data in the new digital economy.USHERING IN THE ECO-DIGITAL ERATMExecutive Conversations54Capgemini Research InstituteThe Dual TransitionAre we entering a new age of the world economy?I

191、 believe that we are witnessing the start of an era that we call the“eco-digital economy”.The eco-digital economy refers to a dual transition to an economy that delivers not only economic value but also environmental and social value.In one of our recent studies,we found that a large majority(77%)of

192、 senior executives believe that we are experiencing a dual transition to a more digital and sustainable world.In the Eco-Digital EraTM,there is greater exploration of digital technologies value to business for instance by scaling of data and cloud,digital technologies play a crucial role in achievin

193、g sustainable goals,there is a fast evolution of emerging tech such as generative AI and synthetic biology,and greater collaboration giving rise to digital ecosystems.The rapid rise and democratization of generative AI is a prime example of how this shift is truly fundamental,cross-sectoral,and glob

194、al in nature.Prof.Suraj Srinivasan,Philip J.Stomberg Professor of Business Administration at Harvard Business School and Head of the Digital Value Lab at Digital Data and Design(D3)Institute at HarvardTHE RISE OF A NEW,DATA-DRIVEN ECONOMYExecutive Conversations55Capgemini Research InstituteThe Dual

195、TransitionThe eco-digital economy refers to a dual transition to an economy that delivers not only economic value,but also environmental and social value.How is the eco-digital economy different?The digital economy today is amplified by a huge degree of magnitude as compared to the one in the last d

196、ecade,made possible due to exponential technological and algorithmic advances.The eco-digital economy is driven by the ability to capture and store large quantities of data,and the capacity to process and analyze it at ultra-high speed.It has become so much cheaper to create,access,store,analyze dat

197、a,and derive meaningful insights.This advancement has been made possible due to the availability of several technologies such as cloud,semiconductors,graphics processing unit(GPU),Internet of Things(IoTs),and sensors,etc.These have allowed us to make innovation broader,cheaper,and therefore more acc

198、essible.The digital economy today is amplified by a huge degree of magnitude as compared to the one in the last decade,made possible due to the exponential technological and algorithmic advances.Executive Conversations56Capgemini Research InstituteThe Dual TransitionThe exponential growth in the cap

199、acity to process and analyze data has allowed more organizations to become reasoning enterprises,i.e.,entities with enhanced data-driven decision making.The exponential growth in the capacity to process and analyze data has allowed more organizations to become reasoning enterprises,i.e.,entities wit

200、h enhanced data-driven decision making.What would you say are the key characteristics of this eco-digital economy?From a data perspective,there are three key characteristics of the eco-digital economy:Cost efficiency:The capacity to access,collect,and store data is cheaper than before because of clo

201、ud,sensors,5G/Edge,and other associated technologies.Better capabilites for analyzing and understanding the data for decision making:This has been made possible because of two kinds of technology,one on the hardware side such as Graphics Processing Unit(GPU),and the other on the software side such a

202、s improved algorithms.Ubiquity of digital and data capabilities:Lower cost and enhanced capabilities have given the ability to embed digital and data-driven ideas everywhere.Our imagination is the only barrier to where these capabilities can be used.Executive Conversations57Capgemini Research Instit

203、uteThe Dual TransitionHow are data and AI helping the world become more sustainable?There are a number of good examples from using data for climate change mitigation and adaptation,reducing energy consumption and waste,to personalizing education.But one of my most favorite uses of data for driving s

204、ustainable outcomes is when data and AI bring together economic,environmental,and social benefits.An example of this is a startup in India that Im working with thats providing farmers with intelligence to optimize their crop yield using satellite data on soil moisture,nutrient content,etc.Farmers wi

205、th small plots of land typically do not have the capital to invest in expensive tech or advice to improve productivity.However,access to data,network connectivity,and custom-made apps are bringing a step change in the level of productivity and thereby quality of life of these farmers.This is just on

206、e case example but imagine doing this at scale in large parts of the world were starting to see that happen.One of my most favorite uses of data for driving sustainable outcomes is when data and AI bring together economic,environmental,and social benefits.Executive Conversations58Capgemini Research

207、InstituteThe Dual TransitionHow will you describe the role of data in the eco-digital economy?The eco-digital economy will be highly data-driven and AI-driven.Data and data insights should be available as much as,say,water.Water is the fountain of life,and in that sense,data is the fountain of all d

208、ecision making and this resource should be equally available.Everyone,whether rich or poor,should have equal access to water.Similarly,the capacity to use data for good decisions should be easily available everywhere.In the last few years,we have seen data create immense value for organizations.Gene

209、rative AI is turbocharging it now by making creation of insights,software,and design ubiquitous.You no longer need to be an expert in these fields to harness the value of data.One of the biggest impacts of the leaps in AI will be seen in the enhanced decision-making by leadership teams.Leaders augme

210、nted with AI-driven intelligence will outperform their peers who dont leverage AIs potential.This kind of democratic access and use of data is a key aspect of economy today,which should also be an important part of policymaking.MEASURING THE VALUE OF DATAThe eco-digital economy will be highly data-d

211、riven and AI-driven.Executive Conversations59Capgemini Research InstituteThe Dual TransitionWhy is it important to measure the impact of data?If one cant measure the outcomes,you either under-or overinvest in the data initiatives.Hence,it is important to think about careful measurement of the outcom

212、es.One thing preventing people from calculating return on investment(ROI)when it comes to data is the availability of so many low-hanging fruits(data initiatives),all guaranteed to generate high value.But it is still important to understand which initiatives create more impact.Personal intuition is

213、often biased by personal experiences,therefore,almost certainly not representative and likely to be wrong.More practically,this doesnt help when there are multiple uses or places to invest.Democratic access and use of data is a key aspect of economy today,which should also be an important part of po

214、licymaking.Executive Conversations60Capgemini Research InstituteThe Dual TransitionWhat are some of the ways organizations can calculate the ROI for data initiatives?While understanding the value proposition,one can do either qualitative or quantitative measurement.For example,if a data product is c

215、reated for internal use,one can map its cost vis-vis its adoption rate as a quantitative metric of success.Similarly,the change in productivity can be mapped against the cost for a data initiative on a factory floor to get an indication of the ROI.Large language models(LLMs)enable companies to asses

216、s how a customer interaction is going in real-time and take immediate remedial actions.So,the investment in deploying a generative AI technology at a call center can quickly be quantified by using something like a net promoter score(NPS)to measure customer service quality.If there is training or an

217、investment in scaling digital capabilities,organizations should be able to measure that simply by measuring how many people completed the program.Investment in creating data literacy can be assessed by measuring how data literacy helps make better decisions or how many new data-driven products were

218、created.On the other hand,responsiveness to feedback,ability to support business,anecdotal stories of improvements,and maturity of agile data product teams are a few instances of qualitative measurements of value creation.Executive Conversations61Capgemini Research InstituteThe Dual TransitionETHICA

219、L USE OF CUSTOMER DATAWith increasing concerns around data privacy and ethical use of data,how can organizations ensure that they earn the trust of consumers when dealing with their data?Data-driven decision-making is important,however,ensuring data privacy is equally important.It is imperative for

220、organizations to not just think about the opportunity,but also responsibility that comes with data collection,storage,usage,etc.There are multiple ways to protect privacy-one can anonymize the data or use cutting-edge techniques such as differential privacy.How an organization respects or uses custo

221、mers personal data is a reflection of its culture and core values.Organizations should work towards creating the right data policies and data catalog,building data literacy,and ensuring common understanding across the organization on these aspects.How an organization respects or uses customers perso

222、nal data is a reflection of its culture and core values.Executive Conversations62Capgemini Research InstituteThe Dual TransitionWith the ever-increasing quantity of data being captured and processed,what would be your advice to organizations looking at scaling up their data ecosystem?The biggest que

223、stion that organizations have to address and manage as they scale is knowing what to centralize and what to decentralize in terms of platform architecture,and most importantly,data governance.Data is captured for some purpose such as decision-making,product creation,improving customer value,etc.So,o

224、rganizations should first understand the kind of value they plan to create through data.The other aspect is how they propose to improve productivity in the process.Decisions on areas such as big data,cloud,computing efficiency,data use,data management,data privacy,etc.should ideally be centralized.D

225、ecentralization of areas such as production,customer service,etc.,empowers people closest to the problem or opportunity to take the decisions since they are best equipped to figure out what is the most value added in that setting.BUILDING AND SCALING A DATA ECOSYSTEMExecutive Conversations63Capgemin

226、i Research InstituteThe Dual TransitionDecisions on areas such as big data,cloud,computing efficiency,data use,data management,data privacy,etc.should ideally be centralized.Prof.Suraj Srinivasan,Philip J.Stomberg Professor of Business Administration at Harvard Business School and Head of the Digita

227、l Value Lab at Digital Data and Design(D3)Institute at HarvardEEFJE DIKKERHead of Global HR Transformation,Digitization and OperationsMercedes-Benz Group AG64Capgemini Research InstituteThe Dual TransitionExecutive ConversationsEefje Dikker is the head of global HR Transformation,Digitization and Op

228、erations at Mercedes-Benz Group AG.Prior to this,she was HR director and,later,a member of the board of management and director of Labor Relations at Daimler Mobility AG.In April 2023 she took over Transformation,Digitization,and Operations within the Personnel department of the Mercedes-Benz Group.

229、She has held several leadership positions in HR across her rich career in the industry,spanning more than 25 years.She is based in Stuttgart,Germany.HR AT THE CORE OF TRANSFORMATIONMercedes-Benz is one of the leading global suppliers of high-end passenger cars and premium vans.The company also offer

230、s financing solutions and innovative mobility services.In 2023,the company had a workforce of around 166,000,sold about 2.5 million vehicles,and reported a revenue of 153.2 billion.The company aims to have a net carbon-neutral new vehicle fleet across all stages of the value chain by 2039.Executive

231、Conversations65Capgemini Research InstituteThe Dual TransitionExecutive Conversations66Capgemini Research InstituteThe Dual TransitionWhich strategic objectives are you currently working towards?My top priority is HR transformation,where I have a twin focus on digitization and overall organizational

232、 transformation.On the operations side,I am responsible for shared services for HR in Germany and internationally,in addition to managing Tech for People,which is the unit responsible for the IT side of our HR,on a global scale.I also manage HR strategy and change management as part of our broader t

233、ransformation program,which is implementing some of the greatest changes we have seen in the history of the organization.What is Mercedes-Benzs approach towards its data transformation journey?The automotive industry is going through a remarkable transformation.A great deal of innovation has sprung

234、up,especially in software development and the use of integrated data on customers and vehicles.Data is key for HR,too.It has,therefore,become even more important for us to focus on a common,coordinated data approach that can be followed across departments.This common data approach deals with issues

235、such as storage,handling,and usage.We make sure that different functional areas are involved in the joint pilots to ensure that our data strategy is applicable across the organization.Eefje Dikker,Head of Global HR Transformation,Digitization and Operations,Mercedes-Benz Group AGHR AS AN ANCHOR FOR

236、OVERALL BUSINESS TRANSFORMATIONExecutive Conversations67Capgemini Research InstituteThe Dual TransitionNew technologies have impacted your industry greatly.What is the role of HR in the organizations transformation journey?HR is pivotal for any transformation.Moreover,we are actively transforming HR

237、 from the inside.We have set up new structures and end-to-end responsibilities as we introduce a product mindset into HR processes,with the required training and qualification initiatives to support these.We are entering a digital era in which most people will be expected to adapt to working with ne

238、w technology.We are constantly on the lookout for opportunities in other functional areas,such as finance and legal,in which we hope to use tools such as generative AI to unlock greater value.Over the last few decades,HR has transitioned from a comparatively narrow focus on contracts,hiring,and rela

239、ted activities to handling transformations,testing strategies,and helping organizations to build the resilience required to weather the changes brought by the digital transformation.Executive Conversations68Capgemini Research InstituteThe Dual TransitionWe are entering a digital era in which most pe

240、ople will be expected to adapt to working with new technology.How do you attract the candidates you require to respond to the rapidly changing technology environment?We have adopted some approaches to attracting people with varied skills.For example,we have invested a lot in employer branding,includ

241、ing pushing social media to engage with different target groups.We created a pathway for manufacturing employees to join the IT workforce,following the successful completion of a course in digital skills.This ensures that our workforce can keep contributing to Mercedes-Benz,even if some of the drive

242、 train production jobs disappear as a result of the industrys shift towards electric vehicles(EVs).Mercedes-Benz has promoted this initiative very strongly and there is high-level backing from the board and our manufacturing leadership.We already have our first round of success stories:our people fr

243、om manufacturing who have not only completed IT training but have also gone on to make impactful contributions in their new assignments.We created a pathway for manufacturing employees to join the IT workforce.Our people from manufacturing have also gone on to make impactful contributions in their n

244、ew assignments.Executive Conversations69Capgemini Research InstituteThe Dual TransitionFor certain technologies,we have relied on upskilling internal employees.In areas such as artificial intelligence(AI)and data management,we made training available to existing IT staff,rather than hiring new peopl

245、e.For instance,if there is a new cloud solution we need to implement,we utilize the same people who maintain our Oracle on-site solution,after enabling them with new skills.We are planning to make a 2 billion investment between 2022 and 2030 in employee training worldwide,as part of our Turn2Learn q

246、ualification initiative.We strongly advocate using innovative technologies to enhance process stability,bolster product quality,build resources,and enhance overall efficiency.This frees up employee hours,allowing us to deploy them in other areas.How do you incorporate emerging technologies into HR p

247、ractices and broader business operations?AI is a crucial area for us because HR has two roles in implementing AI across the organization.One is to use it for ourselves,for our operations.The other is to use it for broader impact.For instance,we are working to harness generative AI to answer employee

248、s more straightforward HR questions.Consequently,HR colleagues can focus on more complex tasks that require human intervention,including individual development,identifying trends,capacity planning,and adjusting business strategy.We are always looking at new technologies that we can apply to our busi

249、ness.This,in turn,makes HRs role critical.Increasingly,HR will focus on the human interface.The last five years have shown us that we simply cant predict the future,and volatility is a constant.And getting the business through this volatility and enabling it to transform will be key to the role of H

250、R.We are planning to make a 2 billion investment between 2022 and 2030 in employee training worldwide.Executive Conversations70Capgemini Research InstituteThe Dual TransitionWhat is the role of HR in helping Mercedes-Benz meet its sustainability goals?Generally speaking,we have a wider definition of

251、 sustainability.It is not just limited to KPIs(key performance indicators),carbon footprint,green manufacturing,and compliance with regulation.For us,sustainability is also linked to data quality and processing.Therefore,we have set up guidelines and knowledge-management portals to ensure we handle

252、data in a consistent manner.Our support of the transformation process and our efforts to empower employees through skill-development initiatives are all based on our commitment to sustainability.In my view,a big part of sustainability is about enabling your employees and giving them the opportunity

253、to learn and grow,so that they can adapt to new technology and take on different tasks.I think the learning initiatives that we have in our company are a very big part of it.And our employees make great use of them.For example,in 2022 around 120,000 training courses undertaken at Mercedes-Benz world

254、wide were related to digitalization,such as software,coding,and IT.In,2022 around 120,000 training courses have been undertaken at Mercedes-Benz related to digitalization,such as software,coding,and IT.How do you think HR leaders at large organizations can prepare for large-scale technological trans

255、formation?One piece of advice would be to build a culture that is open for the future and does not restrict the organization to its past.A strategy may have been successful for the preceding 10 years,but this does not guarantee success for the next 10.When the organization is faced with waves of cha

256、nge,leaders need to avoid the complacency of living in past glory and move forward with their eyes open.Executive Conversations71Capgemini Research InstituteThe Dual TransitionA strategy may have been successful for the preceding 10 years,but this does not guarantee success for the next 10.When the

257、organization is faced with waves of change,leaders need to avoid the complacency of living in past glory and move forward with their eyes open.Eefje Dikker,Head of Global HR Transformation,Digitization and Operations,Mercedes-Benz Group AGJIM ONEILLMember of the UK House of Lords,Former Goldman Sach

258、s Chief EconomistUK House of Lords72Capgemini Research InstituteThe Dual TransitionExecutive ConversationsExecutive Conversations73Capgemini Research InstituteThe Dual TransitionAN ERA OF PROFIT WITH BETTER PURPOSELord Jim ONeill is an economist,policy adviser,author,and keynote speaker on the globa

259、l economy.Between 1995 and 2013,he held various roles at Goldman Sachs,including that of Chief Economist and Head of Economics,Commodities and Strategy Research(ECS).He is known for his work on developing economies,in the course of which he coined the acronym BRICs(to refer to the developing economi

260、c bloc including Brazil,Russia,India,China and since 2010,as BRICS South Africa).He recently completed a documentary for the BBC entitled MINT:The Next Economic Giants.The Capgemini Research Institute spoke to Jim about organizational focus on strong economic growth coupled with sustainable purpose.

261、Executive Conversations74Capgemini Research InstituteThe Dual TransitionPARADIGM SHIFTHow do you see investment patterns developing in digital infrastructure and sustainable technologies?The role of technology,including AI,is just so front-and-center that it seems like tech will always be the source

262、 of the next big thing for business.The interplay between digitalization and sustainability is important because these technologies may have harmful consequences and you dont want evil actors to cause environmental problems.How do you think this balance can be maintained?The onus is on policymakers

263、to draw up the right regulatory policies.On sustainability,many economists would say we need a set carbon price that is applicable to the whole world.But achieving consensus on that remains a challenge for policymakers.Are they bold enough to do the right thing?When it comes to digitalization and su

264、stainability,world leaders have all got to be sitting in the same room and,at the moment,they are not.When it comes to digitalization and sustainability,world leaders have all got to be sitting in the same room and,at the moment,they are not.Jim ONeill,Member of the UK House of Lords,Former Goldman

265、Sachs Chief EconomistExecutive Conversations75Capgemini Research InstituteThe Dual TransitionAre there any unique advantages or challenges that the BRICS nations possess or face in transitioning to a green economy?The answer is yes!If you look at the two big powerhouses of the BRICS,China and India,

266、these two countries together have almost 3 billion people,which is over one-third of the worlds population.They are becoming bigger users of energy and,with this,ever more influential in the world economy.What India and China do on alternative energy and sustainability policy is probably more import

267、ant than anywhere else.The other three nations,Russia,Brazil,and South Africa,are big commodity producers.It is vital that all BRICS nations,together,develop a proper and serious strategy about greening the world.But,of course,each country wants what they think is best for themselves.BRICS countries

268、 have the potential to play a significant role in transitioning towards a green economy through their policy initiatives and cooperation.Alongside political or economic drivers,what are the other drivers for organizations to move towards a sustainable digital model?Over the past decade,I have become

269、 quite a strong believer that there is something not quite right about the international capitalist economic model.In theory,when you get very strong profit growth,it leads to high investment,which is supposed to boost productivity and wages.We had the profits,but we didnt receive the investment,pro

270、ductivity,or a rise in real wages.One of the consequences of that is that more people,particularly in older Western economies,want something better.This is leading to what I call an era of profit with better purpose,where we cannot afford to avoid sustainability.Executive Conversations76Capgemini Re

271、search InstituteThe Dual TransitionWhat are your thoughts on generative AI?I have been looking at economic issues for over 40 years and,every five years or so,we go through an era where people say that automation of a process is going to destroy jobs and it has never happened.It just helps us create

272、 other additional jobs.I will give you a really powerful example of the positive side.There was a very interesting article published recently describing how some health scientists in the US had used generative AI to find a new antibiotic,a field in which I have been heavily involved for the past sev

273、en years.At the core of the problem is that nobody wants to spend money on finding new antibiotics.But,if you can teach a computer to do it with data alone,that is one of the most powerful positives about AI I can think of.For many countries healthcare systems,the cost of building a workforce contin

274、ues to rise,and they can afford it only by increasing tax.AI could make a big difference here in keeping costs down.ROLE OF GENERATIVE AIIf you can teach a computer to find new antibiotics,that is one of the most powerful positives of AI I can think of.Executive Conversations77Capgemini Research Ins

275、tituteThe Dual TransitionPEOPLE PERSPECTIVE:PREPAREDNESSWhich skillsets do you think will be required by organizations to balance digital and sustainability?The best companies have a really good culture and shared purpose,giving workers the feeling that they are delivering what society needs,instead

276、 of just focusing on profit.More and more,we will see politicians attacking companies that just make profit.Therefore,I guess the vital ingredients for organizations are a really educated workforce and open minds among the leadership.Of course,it is good to have more people trained in technologies a

277、nd digital things,but if you havent got the right mindset,it wont work.It is more important to invest in nurturing the right culture than to invest in other,non-technological skills.More and more,we will see politicians attacking companies that just make profit.Executive Conversations78Capgemini Res

278、earch InstituteThe Dual TransitionTen years from now,what framework do you see emerging for large,tech-powered,sustainable organizations?There is quite a lot of evidence that the most successful large,sustainable companies are the ones that can adapt,not only in terms of where they focus but also in

279、 how they are organized.There are many examples of companies with a very rigid framework,which ends up controlling their ability to think and they end up no longer being so good.Organizations have to be agile,with a good culture and open-mindedness.Because,the one thing we know from the last five ye

280、ars,never mind a decade,is we dont know what is around the corner!What would be your advice to organizations in terms of how to navigate this twin transition?I would say three things:Agility:First of all,recognize that you cant predict the future.If you have got too rigid a policy and you are too co

281、mmitted to a certain path,you are not going to be able to adapt if the path falls away or takes an unexpected turn.Shared purpose:Secondly,have a really good,clear culture in your organization,where everybody feels they share this purpose,even if it means you have to be adaptable.Sustainability:Thir

282、dly,achieving sustainability of the planet is definitely one of the several challenges companies face.They must develop agility while being mindful of their responsibility to manage the climate.We cant be too narrow-minded,since that could mean missing out on some amazing technological breakthroughs

283、.The sustainability challenge needs to be approached with an open attitude so that we can benefit from and preserve our planet in the future.LOOKING FORWARDExecutive Conversations79Capgemini Research InstituteThe Dual TransitionThe one thing we know from the last five years,never mind a decade,is we

284、 dont know what is around the corner!Jim ONeill,Member of the UK House of Lords,Former Goldman Sachs Chief EconomistBIJOY SAGAREVP and Chief Information Technology and Digital Transformation OfficerBayer80Capgemini Research InstituteThe Dual TransitionExecutive ConversationsExecutive Conversations81

285、Capgemini Research InstituteThe Dual TransitionADDING LIFE TO DIGITAL TECHNOLOGIESBijoy Sagar is executive vice president(EVP)and chief information technology and digital transformation officer(CIDO)of Bayer.Bijoy has more than 20 years of experience in the healthcare sector and chemicals industry.P

286、rior to joining Bayer,he served as the chief digital technology officer and CIO of Stryker,a leading medical technology company,where he was also a member of the executive team.Bayer AG is a leading German multinational pharmaceutical and biotechnology company.In 2023,the group reported a revenue of

287、 47.64 billion,approximately half of which came from the crop sciences division.The company has set a target of becoming climate neutral at all its sites(Scope 1&2)by 2030,and net-zero green-house gas across the entire value chain(including Scope 3)by 2050 or earlier.Executive Conversations82Capgemi

288、ni Research InstituteThe Dual TransitionHow do you see the digital economy developing in the coming decade?We will see a maturation process.For example,in the past decade cloud made scaling possible,while in this decade its more about AI.With the reduced cost of computing and greater availability of

289、 data,more businesses will get off the ground,and more cash will be invested and also harvested from the processes.It is difficult to predict which technologies will be adopted.Blockchain was heavily touted in the past decade,but it did not come to fruition as predicted.In contrast,generative pre-tr

290、ained transformers(GPT)and generative AI have unexpectedly blown up in a short time.Bijoy Sagar,EVP and Chief InformationTechnology and DigitalTransformation Officer,BayerPARADIGM SHIFTExecutive Conversations83Capgemini Research InstituteThe Dual TransitionUNLOCKING NEW VALUEHow do you see the busin

291、ess model at Bayer changing with the adoption and scaling of digital technologies?Which untapped sources of value can these bring to your business?Our business model has already changed quite a bit.For example,the entire process of large-scale agriculture,encompassing crop planning,protection,planti

292、ng,yield,etc.,is already highly digitalized.Our crop science farming business uses drones to cover 80 million acres,collecting a significant amount of data.We have access to our own satellite data,enabling us to predict within one square meter the moisture level and composition of soil.We use this d

293、ata in our algorithms to help in the crop-planting process.Pharma has already gone to market with Calantic,an AI-based radiology solution,which helps physicians simultaneously analyze radiology data and make disease determinations.This helps maximize the benefit to the end-customer and the radiologi

294、st.On the consumer health side,it will be more about behavioral context,targeted advertising,and customized message creation for the customer.In pharma,it will be largely in research and development.We already have a high TPU(tensor processing unit)quantum computing project going on with Google,for

295、example.Executive Conversations84Capgemini Research InstituteThe Dual TransitionHow does Bayer define ROI when it comes to digital initiatives?At Bayer,rather than assessing cumulative value to the business,we look at value per project or per investment.This is because we are neither a purely digita

296、l business nor do we digitalize the entire value chain.Rather,we look at individual business cases where we know what the value of digitalizing is from short-term,medium-term,and long-term perspectives.We evaluate whether an innovation could make a slight improvement or a fundamental change to the b

297、usiness.So,the initial business cases are more about where we can actually prove some return on investment.We need to make sure that we are investing for maximum value.We cant take on too many good-looking cottage projects,because,ultimately,value only comes with scale.We aim to create sufficient va

298、lue to become self-sustaining.DIFFERENT SOURCES OF VALUE FROM DIGITALIZATIONWe cant take on too many good-looking cottage projects,because,ultimately,value only comes with scale.Executive Conversations85Capgemini Research InstituteThe Dual TransitionHowever,some technologies have become commoditized

299、.For example,if we decide not to use cloud,we need to have very clear justification for that.It is now table stakes,and everything new is going directly to cloud.On the flip side,cloud also means increased data consumption.Hence,even though the unit cost of compute has come down,the total cost has g

300、one up.This needs to be balanced.We are a science-based business,and our use of cloud has evolved greatly.Drug discovery and crop science are very innovation-intensive businesses,which means high-cost early-phase development.Owing to cloud technology,much of drug discovery is now going to be in sili

301、co(i.e.,on the computer),instead of in vivo(in living organisms)or in vitro(in glass laboratory containers).This is a complete game changer,since in silico allows experimentation in a much wider range of scenarios than was possible physically in the laboratory or the field.That is where we anticipat

302、e that we will generate value.In coming years,which are some of the key technologies that you are likely to invest in?We are already investing significantly in machine learning(ML)and cloud,and this will be ongoing.High-throughput computing(HTC)will be a priority.Generative AI is going to be a big t

303、arget for investment as well,particularly Owing to cloud technology,much of drug discovery is now going to be in silico(on the computer),instead of in vivo(in living organisms)or in vitro(in glass laboratory containers).Executive Conversations86Capgemini Research InstituteThe Dual TransitionWe have

304、already announced an open-platform marketplace that we are building with Microsoft,where data can be shared in ways where everybodys data is protected.multimedia/image-based AI.Digital twinning is another area of focus.Creating digital twins of drug molecules and tracking them has already become an

305、integral part of pharmaceutical development.Crop science is another avenue for digital twin.Both computer vision and augmented reality(AR)will play a big role in the way we manufacture.We are doing a lot of arms-length investments in areas where we feel it is still early days.For example,cell and ge

306、ne therapies,which are going to be very much high in silico business models.We may enter e-commerce in consumer health,which is more about personalized medicine and product choices.5G has the potential to help facilitate and build a better connection with farmers.We are also investing in using data

307、in new ways.We have already announced an open-platform marketplace that we are building with Microsoft,where data can be shared in ways where everybodys data is protected,but the value is still created by the behaviors happening there.Creating digital twins of drug molecules and tracking them has al

308、ready become an integral part of pharmaceutical development.Executive Conversations87Capgemini Research InstituteThe Dual TransitionVALUE CREATION THROUGH GENERATIVE AIWhat value can AI create for the healthcare and agriculture sectors?The next decade is truly going to be the decade of AI,especially

309、 of text-based AI.At Bayer,we are investing heavily in image-based and other forms of AI.However,text-based AI is going to become embedded in everything we do,and I expect this to change the way we structure processes,conduct searches,and create documentation.There are endless AI use cases with pote

310、ntial,from crop science to pharma,whether it comes to growers;modeling risk for physicians to provide the right recommendations;or targeting the right patient population for diseases and helping them through the process of disease progression and management.We believe that AI is going to speed up re

311、search and development.With Bing adopting generative AI directly into its browser,we will obviously be deploying the technology extensively.I believe generative AI will be complementary,and not supplementary,in people-based services because human judgment and oversight will still be required.Maybe 2

312、0 years from now,generative AI will have evolved sufficiently to require less human intervention,but I do not see it happening in the next decade.Text-based AI is going to become embedded in everything we do.Executive Conversations88Capgemini Research InstituteThe Dual TransitionHow are you harnessi

313、ng technology to drive progress towards your sustainability goals?By 2050,we want to have met net zero targets across the value chain in greenhouse gas(GHG)emissions.More urgently,we aim to reduce value-chain GHG emission by 6%by 2024.This means looking at the entire supply chain,including both prim

314、ary and secondary suppliers.Sustainability goals will work only if everybody in the ecosystem works on them together.We use computing in three different ways to fully understand the impacts on our gas emissions:To continue to monitor and meet sustainability goals To help our customers achieve sustai

315、nability goals,as well as building sustainability into business models,such as carbon capture and storage To analyze our supply chain in near-real-time,enabling whole-ecosystem compliance for a sustainable future TECHNOLOGY FOR SUSTAINABILITYWE AIM TO REDUCE VALUE-CHAIN GHG EMISSION BY 6%BY 2024.Exe

316、cutive Conversations89Capgemini Research InstituteThe Dual TransitionSustainability goals will work only if everybody in the ecosystem works on them together.Bijoy Sagar,EVP and Chief InformationTechnology and DigitalTransformation Officer,BayerADRIENNE HOREL-PAGSChief Sustainability OfficerLa Banqu

317、e Postale90Capgemini Research InstituteThe Dual TransitionExecutive ConversationsExecutive Conversations91Capgemini Research InstituteThe Dual TransitionFINANCING THROUGH A SCIENTIFIC AND SOCIAL IMPACT LENSAdrienne Horel-Pags is chief sustainability officer and a member of the executive committee of

318、 La Banque Postale.She is responsible for implementing the groups sustainable finance strategy in all its dimensions.She led the transformation of the organization required to qualify for the French Economy and Finance Ministrys Socially Responsible Investment(SRI)label.She is based in Paris.Founded

319、 in 2006,La Banque Postale is a postal bank and a subsidiary of La Poste,the French national postal service.It offers retail banking,insurance and asset management.In 2021,it became the first European bank and one of the first global banks to have a decarbonization trajectory validated by the Scienc

320、e Based Target initiative“,which includes phasing out investments in thermal coal,oil and gas sectors by 2030.Executive Conversations92Capgemini Research InstituteThe Dual TransitionAs chief sustainability officer of a bank,what does your role involve?My first mission is to define the sustainability

321、 strategy of the bank at group level.This includes our financing activities;our asset-management arms investment activities;and also our insurance subsidiaries.My responsibilities include defining our trajectories and/or goals regarding the transition to net zero,our approach to conserving biodivers

322、ity,and our social engagement program.The second mission is to make sure that our bank is at the forefront in terms of climate and social commitments,in order to protect ourselves from the risk of greenwashing and reputational damage.These are key issues,especially in light of the breadth of our eng

323、agement and commitments.I am tasked with ensuring that all the products or services we present as sustainable comply with the criteria we set at group level.My third mission is to ensure that each employee in the bank can participate in our transition.This involves managing a network of sustainabili

324、ty ambassadors;working on the training programs for all the employees;and ensuring that employees can engage in socially beneficial giving-back activities.My role is also about engaging with external parties and our stakeholders.I deal with all the regulatory reporting and manage the relationships w

325、ith external financial-rating agencies,non-governmental organizations(NGOs),and our other stakeholders to drive our mission.Adrienne Horel-Pags,Chief Sustainability Officer,La Banque PostaleExecutive Conversations93Capgemini Research InstituteThe Dual TransitionSCIENCE,FOSSIL FUELS,AND FINANCINGYou

326、are one of the first banks globally for which the Science Based Targets initiative(SBTi)has validated their carbon trajectory.How did you achieve that?We co-constructed the methodology with SBTi and that definitely gave us an edge in terms of understanding the nuances of our balance sheet and portfo

327、lio.It also took care of the methodological aspects of the validation.But thats only one part.The other aspect is our firm commitment to net zero.What is really important now is implementation.We have to find an equilibrium between risk,return,and impact.We are still on the implementation journey,an

328、d were very humble about the distance we still have to travel.Nevertheless,we are also aware that,with each passing day,better data becomes available to us;we have a greater understanding of our corporate impact,both environmental and social;and we are conscious of the need continually to reset goal

329、s.We need to focus on being on the right path,creating that conversation,and taking everyone along the journey.In 2021,La Banque Postale announced that it was going to stop financing fossil fuel companies.How did you arrive at this decision?This decision was made as part of our net zero commitments.

330、We realized that financing oil and gas exploration doesnt align with any of the scientific scenarios and pathways connected with our goals.Today,With each passing day,better data becomes available to us;we have a greater understanding of our corporate impact,both environmental and social;and we are

331、conscious of the need continually to reset goals.Executive Conversations94Capgemini Research InstituteThe Dual Transitionthe broad scientific consensus is that,if we are to be in alignment with the Paris Agreement by 2050,we need to stop exploring new oil and gas fields as of today.It was quite clea

332、r to us that we needed to have a strict policy on this front.We are a big retail bank,but,on the corporate side,we are more of a challenger bank.It finally came down to a combination of our history,our balance sheet,and our net zero commitments,which drove us to this decision.By taking such a decisi

333、on,we were also hoping to set a strong precedent for the whole financial services sector.How did you ensure that you took the organization along in implementing such a decision?When taking such a big decision,the most important and difficult thing is to take out individual convictions on climate change and say clearly that we are following scientific consensus.The other important aspect is to take