Capgemini UK https://www.capgemini.com/gb-en/ Get the future you want Tue, 19 Mar 2024 11:57:18 +0000 en-GB hourly 1 https://wordpress.org/?v=6.3.3 https://www.capgemini.com/gb-en/wp-content/uploads/sites/5/2022/07/cropped-cropped-favicon-1.webp?w=32 Capgemini UK https://www.capgemini.com/gb-en/ 32 32 Why the World Economic Forum describes asset traceability as a “profound paradigm shift” https://www.capgemini.com/gb-en/insights/expert-perspectives/why-the-world-economic-forum-describes-asset-traceability-as-a-profound-paradigm-shift/ Tue, 19 Mar 2024 10:07:22 +0000 https://www.capgemini.com/gb-en/?p=650126

Why the World Economic Forum describes asset traceability as a “profound paradigm shift”

Finlay McPherson
Mar 19, 2024

Welcome to this short series on the future of Asset Management.

In this first blog, Finlay McPherson, Asset Management Lead at Capgemini Invent looks at the increasing role asset traceability is playing in the achievement of key business and sustainability goals for energy and utilities organisations.

The crucial role that asset traceability can play in achieving global economic and sustainability goals has caught the attention of governments, regulators and businesses alike.

Its significance was rubberstamped when the World Economic Forum (WEF) published its landmark white paper Digital Traceability – a framework for more sustainable and resilient value chains.

The report’s authors described the development as “the traceability transformation”, “the next supply chain revolution”, and a “profound paradigm shift”.

They believe that organisations that achieve traceability across the value chain can reap substantial rewards, notably operational resilience, efficiency and sustainability, enhanced security and lower risk, cost and carbon footprint reductions and regulatory compliance.

Crucially for the energy and utilities sector, given its pivotal role in our collective efforts to achieve Net Zero targets, when these benefits are unlocked in combination, the WEF believes this has a multiplier effect on their impacts.

Why our history matters

The WEF acknowledges that achieving successful, comprehensive traceability is complex and difficult. At Capgemini we have seen a rapid increase in commissions to support our clients to develop traceability strategies and operationalising them, and then implementing and delivering the associated  action plans, as part of wider asset management engagements.

As ever, energy and utilities businesses have additional levels of complexity baked in, not least because their vast, historic estates of physical assets – in many cases these assets are critical national infrastructure where availability is crucial. Alongside the huge volume of existing assets are the new capital construction programmes, where not only are physical assets being delivered but robust digital components are also being established, transforming day-to-day operations.

In our sector the history really matters. For example, the safe decommissioning and demolition of large physical assets, such as a nuclear power station, requires analysis of a forensic level of detail, about the site, design and construction, the provenance of equipment and materials used, as well as repair and maintenance records.

In many cases, we discover that these documents going back many decades do exist, but in various paper formats in filing cabinets.  Fortunately, not only can these documents be digitised, but we can apply specialist AI and machine learning tools to enable the vital interrogation of this material to provide the business intelligence on which to base informed decisions.

Assets can be physical, digital and intellectual 

Given the challenges that come with traceability programmes, the WEF’s white paper emphasises the need for sound strategic thinking and comprehensive, end-to-end expertise to be deployed from the outset, to ensure successful outcomes and maximise value and return on investment.

It’s vital to establish a baseline understanding and definition of what constitutes an asset, which ones needs tracing, why and where to look, and to map these against organisational objectives, the law and regulatory requirements.

In the energy industry there’s the example of a welder working on a construction site who did not have the necessary qualifications for the task, undermining the management, quality assurance, safety and governance of the entire project. In this circumstance, the welder’s validated professional training record becomes a vital asset, without which a major project was jeopardised.

Recycling and reusing assets is now commonplace. But while water engineers will no doubt be reassured that a pump recovered for re-use is from an original equipment manufacturer and has passed a quality inspection, what they also need to know is where and how that pump was last used.

It’s not a great idea to use equipment previously installed in a sewage treatment works to pump drinking water to customers’ homes. As you can see, the devil’s often in the detail.

Unlocking benefits now and for the future

Fortunately, the digital revolution has provided an array of enabling tools and technologies for us to transform an organisation’s ability to trace and create a detailed and comprehensive inventory of its assets, as well as the many integrations and interdependencies associated with them.

Alongside digitisation platforms, AI and machine learning, blockchain technology enables the creation of an advanced asset database, a fully secure, immutable, automatically updated ledger of assets, their origins and histories. And with today’s technology-driven traceability, every time a new asset is plugged into the ecosystem its unique profile and identification details can be acknowledged and automatically added to the database.

Historically, the value of tracing and establishing a complete picture of all of an organisation’s assets was often undervalued, a nice-to-have in a world where there was an acceptable level of waste, an unavoidable byproduct of large, sprawling enterprises.

Now enlightened organisations have different values and cultures, with operating models designed to maximise efficiency and sustainability. And those organisations know that, by putting in place a comprehensive, living and breathing asset inventory, they have created a new and powerful resource.

Because this priceless mine of data isn’t something for the future. It’s creating value right now, improving asset performance, cutting costs and waste, and providing a level of business and commercial trust and confidence that governments, regulators and citizens appreciate.

To talk to Capgemini about how we can support your asset management needs, contact Finlay McPherson and connect on LinkedIn

Coming up in the ‘Future of’ series…

Throughout these blogs, we’ll explore how digital technology is revolutionising the way utilities operate – providing a snapshot of what is already being achieved, enroute to a fully connected and optimised business model. Stay tuned for more insights, expert opinions, and actionable advice on issues like the hyper-personalised energy class, how to collaborate with your consumers to dive meaningful change, and how to foster a digital culture.

Meet our expert

Finlay McPherson

Expert in Chemicals, Energy & Utilities
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    Meet the Graduate: My journey bringing wellness to the workplace https://www.capgemini.com/gb-en/insights/expert-perspectives/rhiannon-journey-bringing-wellness-to-the-workplace/ Fri, 15 Mar 2024 13:05:24 +0000 https://www.capgemini.com/gb-en/?p=650086

    Meet the Graduate: My journey bringing wellness to the workplace

    Rhiannon Atwal
    Mar 15, 2024

    Exploring her passion in Yoga, Sound meditation and Breathwork, took Rhiannon on a beautiful, explorative journey. Learning what these practices can do for calming the nervous system and releasing tension inspired her to share her experience. After gaining a 500hr Yoga Alliance Teacher Certification, Rhiannon knew she wanted to help support mental wellbeing in the workplace. Hear her story of how she is bringing wellness to Capgemini.

    Hi, I am Rhiannon. 
    I have been working at Capgemini as a Graduate Project Management Officer for 11 months in the public sector.
    I have had an amazing journey so far and had some great role models who have supported my development and graced me with great opportunities.
    Aside from my role at Capgemini, I have been deeply interested in the benefits of Yoga, movement, and stretching since I was a young girl.
    I decided to explore this further and in February 2023 I embarked on a journey to India, Rishikesh, where I studied and gained 500hr Yoga Alliance Teacher Certification in Vinyasa and Ashtanga Yoga.
    I also completed my Sound Healing qualification, which gave me an understanding of how sound and vibration can be used as a modality to directly calm the nervous system.
     I had so many beautiful experiences on this journey, met some amazing people and gained deep knowledge of the mind, body and soul which I was eager to share with the wider world. However, I was particularly interested in sharing this knowledge with the corporate world. The Corporate world is so fast paced, ever growing, expanding and changing. It can leave many of us feeling in a constant ‘fight or flight’ mode, due to deadlines, expectations and pressures. Simultaneously, people are also trying to navigate their own personal lives, which may feel overwhelming and like a ‘balancing act’.
    We are also often behind laptop screens and sat down for most of the day, which can create tension within the body and result to an increase of stress. 
    After experiencing this myself and hearing other people’s experiences, I realised there was a great demand for mental and physical wellness within the corporate world.
    I was inspired to start teaching Breathwork, Sound, Meditation and Yoga workshops across Capgemini to help support mental wellbeing within the workplace.
    It was important to me that people had access to wellbeing tools to manage their day, release tension from the body and feel good within themselves. 
    Furthermore, I have led 4 sessions so far which has been a great success and I have received amazing feedback from the wider business.
    My experience with teaching corporate workshops has helped myself and others understand how important it is to take some conscious time for yourself during the day, to internalize your awareness and understand what the body needs. 
    I am so grateful for my journey so far and seeing the positive impact this has created for individuals and the business.
     In support of University Mental Health Day (14th March), I want to celebrate new ways we can welcome ‘wellness at work’ and give graduates more tools and opportunities to put wellbeing first when they enter the workplace.

    Rhiannon Atwal


    If you’re looking for your next career move, then consider exploring opportunities with Capgemini here.

    Author

    Rhiannon Atwal

    Graduate Project Management Officer
    Rhiannon is an 500hr Yoga Alliance certified yoga teacher, specialising in Vinyasa and Ashtanga Yoga. She joined Capgemini in 2023 as a Graduate Project Management Officer.
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      Business-driven solutions to transforming consumption  https://www.capgemini.com/gb-en/insights/expert-perspectives/business-driven-solutions-to-transforming-consumption/ Fri, 08 Mar 2024 11:27:11 +0000 https://www.capgemini.com/gb-en/?p=644758

      Business-driven solutions to transforming consumption

      Laura Gherasim
      Mar 8, 2024

      Our current patterns of consumption are deeply inequitable, leaving many without their basic needs met, while overconsumption threatens our health and produces mountains and islands of waste. New models of consumption  could  create an estimated £3.5 trillion in business value  value across the sharing economy, circularity and dematerialisation but these are yet to scale. So why haven’t innovative business models been mainstreamed? 

      Our response 

      Capgemini and Forum for the Future hosted a breakfast roundtable with sustainabiilty practitioners and innovators  from across the retail and consumer goods industry. We validated that great ideas to change business models to be more resource-efficient already exist though dematerialisation through digitisation, peer-to-peer, made-to-order, repair and maintain and product as a service alongside others. This was followed by agreement among attendees that for any shift in business model or consumer behaviour towards sustainability to be successful, it would also need to be desirable and equitable.  Lastly, we explored the business opportunities in solving these problems.   

      What we learned 

      ​​While several consumer goods ​businesses have made ambitious commitments to resource-efficient business models, and while there is lots of experimentation and learning happening in the sector, the path to scale is yet to be unlocked. This requires a shift of the entire system that goes beyond the business model transformation some are driving.   

      This requires reworking on both the supply and demand sides. The interconnectedness of supply and demand is key, and articulating the value of resource-efficient business models in the short, medium, and long term is a critical unlock.   

      At the same time, consumers shifting their behaviour is equally critical and is challenging for businesses to measure. And, beyond completely adapting their positions to translate resource efficiency into commercially viable models and innovation concepts, brands now need to make the change accessible and engaging to the final user. 

      “Articulating the value of resource-efficient business models in the short, medium, and long term is a critical unlock.” 

      Business-driven solutions to shifting consumption   

      For consumer products and retail businesses to unlock a new consumption reality, they need to shape a path to scale for resource-efficient models by ensuring economic viability, a new cultural narrative, and sustainable choices.To delve into some of the nuances of making this happen, change leaders need to take a systemic view both when designing their resource-efficient solution and delivering the change roadmap.   

      A new consumption narrative is needed,​​ where different lifestyles and values coexist enabling people to embrace a new consumption reality. Examples of brands like Patagonia show us how such cultural shifts are possible and storytelling is key. Sustainable choices can only be achieved  through normalising  

      behaviours and  enabling the mindset shift that leads to change  

      One useful technique is to identify ‘leverage points’ when people are more open to a shift, such as the one experienced during the COVID-19 pandemic. Trying to tell stories people do not want to hear is a waste of time, so choosing moments when people are receptive and open to thinking differently is key. Systems thinking alone is not an inspiring story. Stories need to have a villain and a satisfying conclusion, which might be a relatable benefit such as improved health. Lastly, stories need to centre on people and solutions. These days, people are atomised and crave connection, so there is an opportunity to connect people through new models and dialogues around reselling, repairing, tailoring, or modifying clothes, or reusing or sharing in such a way that people see themselves as part of the collective solution and want to engage in dialogue.   

      Though our sustsinable innivation practice we learnt the value of experimentation in bringing new consumpotion models to market, demonstarting the art of the posisble by engaging the full ecosystem rather than just what is under the control of the business.  Cross-sector collaboration is key in running these large-scale demonstration projects, where partners  explore solutions, create a wider more robust understanding of the business case, and identify barriers and levers to change such as new technologies or joint marketing to enable scale.​​ One example is the technology platform DXM, invested in by Carhartt and Shahi among others.  The platform pairs its “digital tailor” 3D modeling of people’s dimensions with their material and style choices with local manufacturers, thereby reducing material, transport, and stock waste and offering the exact product, fit, and potential price desired.  

      To bring these to life, we learnt that finding a laser focus (for example, with certain material flows like plastic), leveraging innovative financing structures, embracing new valuation tools, accounting for externalities as part of the business case or embracing new valuation tools are key to help build a viable business case at an oraganistaional level. .   

      Lastly, to enable scale, the entire business needs to join in. At a very practical level, internal teams need to go on the journey of building the foundation to make the right decisions, gain the courage to grab the opportunity of setting the course for this agenda, and finally, take responsibility for their role in driving change. This calls for an evolution in skills, both soft and hard, as well as building an internal innovation-driven culture that champions a regenerative purpose and social equity across the entire business.  

      Be part of the conversation and make a difference 

      Join like-minded professionals from across the consumer products and apparel sectors, on 20 March to explore the importance of Climate Adaptation. 

      Learn more and register your interest here.  

      Meet our expert

      Laura Gherasim

      Net Zero Strategy & New Business Models Lead, Sustainability Solutions Team, Capgemini Invent, UK
      Laura is a corporate sustainability expert with experience of working for FTSE 100 companies, focussing on developing and scaling viable impact driven solutions at a global level. Laura has a track record of unlocking social and environmental outcomes, business growth and profitability through positive impact strategies, disruptive innovation and new business models. Laura has also worked internationally, leading interdisciplinary teams, working with NGOs and managing relationships with external partners.
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        The power of data will be a game-changer for energy and utilities consumer relationships. Here’s why. https://www.capgemini.com/gb-en/insights/expert-perspectives/the-power-of-data-will-be-a-game-changer-for-energy-and-utilities-consumer-relationships-heres-why/ Wed, 06 Mar 2024 08:56:13 +0000 https://www.capgemini.com/gb-en/?p=644521

        The power of data will be a game-changer for energy and utilities consumer relationships. Here’s why.

        Carl Haigney
        Mar 6, 2024

        Welcome to Capgemini’s ‘Future of’ series, in which we explore the challenges facing global energy and utilities businesses today and the opportunities these challenges create.

        Here, Carl Haigney, Vice President, Retail & Central Markets Segment, Energy Transition & Utilities at Capgemini, explores the impact of growing customer engagement in the energy and utilities market, and how exploiting data is key to maintaining competitive edge.

        What does the future hold for the customer relationship?

        We find ourselves at the start of the biggest customer-driven transformation any industry has seen. Access to affordable generation capability and storage (including electric vehicles), combined with the digitally enabled smart evolution, sees consumers exploiting their energy assets using apps and simple home technology. Customer engagement in the energy market is growing and coffee shop conversations about solar, batteries, and heat pumps are now commonplace.

        Clearly cost and environmental concerns will play a role in any customer relationship, but there is now a plethora of solutions in the customer home. We have apps for electric vehicles (EVs), apps for solar and storage, home management apps for lights and plugs. These have largely been sourced piecemeal by customers who are now beginning to recognise the benefits of bringing them together into a home energy service.

        This transformation is happening so rapidly that energy retailers have been slow to respond, partly held back by a set of industry processes and regulation defined before the digital age and partly by the wafer-thin margins in energy retail. However, new entrants are seizing this lack of pace as an opportunity. EV manufacturers are entering the energy retail space with unified smart energy solutions encompassing home control and energy optimisation across all assets – for example, Tesla’s Solar Neighbourhoods.

        Installation, maintenance, and gleaning insights from these assets is all new to many energy retailers, leading some to subcontract out the responsibility – potentially damaging their brand image whilst brand awareness and brand perception of EV firms rise. Though the energy retail side might have little in the way of asset management and optimisation experience, it does have another, arguably more valuable asset: data.

        The smart data opportunity for utilities is immense. Retailers have access to internal and external data on customer behaviour and propensity to buy that should give them an advantage when targeting customers for new propositions. Partnerships might still have to be made to deliver the asset installation, but entering these relationships as a partner and not seeking an outsourcer will surely be more profitable.

        How can the energy and utilities sector rise to the challenge?

        Disintermediation of the customer relationship for energy retailers by new entrants is a real possibility and the ‘secret sauce’ for future success must come from exploiting data. The smart revolution has given utilities players access to frequent data points, not only on energy consumption, but on asset status (e.g. charged, on, off, usage). Taking these data points into a Customer Data Hub, applying analytics (and AI) yields massive value-opportunities for revenue and profit maximisation. Equally, it offers customers the chance to benefit from a single service provider across energy, mobility, and home services.

        We saw similar challenges and opportunities arise when the telecommunications/home entertainment industries digitalised in the early part of this century. Many legacy players were badly impacted and new ‘data-centric’ players emerged.

        Exploitation of data will be key for any business to survive and, importantly, thrive. The power of integrated data analytics and insight will be the game-changer and Capgemini’s Augmented Customer Experience offer enables energy retail players to become energy services companies though the creation of AI solutions over a Customer Data Hub. We have examples of clients who have benefitted from 30% increase in average revenue per customer and 50% operational costs reduction through AI and data mining.

        Digital thinking will be foundational for successful energy and utility companies in the next 20 years. The wealth of opportunity is evident by the number of startups addressing issues with point solutions across the ecosystem. Bringing several of these solutions together into a more integrated or end-to-end service will surely meet the customer aspirations of buying cheap, green energy, and making the most of the assets available.

        We predict a future where the customer is less engaged personally, reliant more on a few core companies to optimise asset usage and exploit personal and local community data. Most EV users would like a service which charges their EV when prices are low or even negative, discharges when demand is high, and leaves the vehicle with enough charge to get to their destination. Individuals want a service which ‘banks’ their solar power in an ‘energy cloud’ for use later. A service which reviews asset performance (including white goods) and recommends when to change these based on a clear business case.

        All this is possible today, but who will bring it all together first? The energy retailer, the EV manufacturer, or the white goods company?

        How can Capgemini help your business?

        Capgemini is a leading business and technology transformation partner for energy transition and utilities, working with organisations around the world to chart a course toward the future they want, and the planet’s needs.

        We can help you take a comprehensive and holistic approach to transformation, focusing not just on building a strong technological foundation and on scaling use cases, but also transforming the business itself and navigating the challenges that come with fundamental operational change. We’ll help you adopt an end-to-end digital mindset, maximising the power and impact of automation, artificial intelligence and machine learning. The results? Significant improvements against KPIs – from enhanced customer engagement, satisfaction and retention to productivity and bottom-line profitability.

        For more information contact Carl Haigney and connect on LinkedIn.

        Coming up in the ‘Future of’ series…

        Throughout these blogs, we’ll explore how digital technology is revolutionising the way utilities operate – providing a snapshot of what is already being achieved, enroute to a fully connected and optimised business model. Stay tuned for more insights, expert opinions, and actionable advice on issues like the hyper-personalised energy class, how to collaborate with your consumers to dive meaningful change, and how to foster a digital culture.

        Meet our expert

        Carl Haigney

        Vice President, Retail & Central Markets Segment, Energy Transition & Utilities
        Carl leads Capgemini’s retail utilities sector and is responsible for the continued development and delivery of propositions and innovation which combine our breadth of expertise from consulting to application and outsourcing services. Carl’s experience within technology solutions is supplemented by a detailed knowledge of the outsourcing market and management of key IT, consulting and BPO services – developing and applying solutions to major business issues with managed risk and ongoing performance improvement. Many of the solutions have been ‘heart of the industry’ business critical systems.
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          Climate Adaptation: Crucial for Managing Future Climate Impacts and Risks https://www.capgemini.com/gb-en/insights/expert-perspectives/climate-adaptation-crucial-for-managing-future-climate-impacts-and-risks/ Mon, 04 Mar 2024 06:51:14 +0000 https://www.capgemini.com/gb-en/?p=643451

          Climate Adaptation: crucial for managing future climate impacts and risks

          Manogna Goparaju
          Mar 4, 2024

          To ensure a just transition to Net Zero, we can no longer continue to rely on sustainability strategies focused only on climate change mitigation; it is time to pivot towards climate adaptation. Effectively tackling the long-term effects of climate change on businesses, individuals, communities, and countries will require a systemic, community-level adaptive approach. These adaptive strategies, policies, and actions needs to be based on future climate risks with longer timescales, the interdependencies of environmental, social, economic, and financial factors, and collaboration between businesses, sectors, and communities.  

          Climate change has different impacts on interconnected ecosystems:

          Climate change has far-reaching impacts on environmental, social, economic, and financial systems, with the magnitude of impacts varying across different sectors, industries, and geographies. To effectively address climate change and ensure an equitable, just future for all, businesses must take proactive measures to appropriately address their complete climate risk exposure and develop adaptive strategies to better prepare all stakeholders across value chains and ensure operational and business continuity.

          It is important to consider the intricate and interdependent systemic relationship between environmental, social, and economic factors contributing to climate change to develop the appropriate thinking and strategies for climate adaptation. For example, with increased heat stress, geographies will experience negative impacts on biodiversity, soil, and the water table, resulting in changes in land use and positively affecting insect populations, resulting in additional yield loss due to infestations on stressed crops. On the one hand, this will increase the risks of crop failure and lower yields, contributing to food insecurity. Crop failure and lower yields will trigger supply chain disruptions, with critical sectors such as Life Sciences and Energy experiencing raw material shortages for the development of medication & vaccines and biofuels, respectively. The latter may additionally create political debates and societal concerns linked with the use of limited crop yields for nutrition versus the development of sustainable fuels. On the other hand, changes in land use will disrupt habitats, contributing to population displacement and migration and increasing the number of climate refugees. Countries receiving climate refugees will experience increased stress on health care and financial systems in the first instance, owing to increased health and financial vulnerabilities within climate refugee communities.

          Example of order of consequences related to increased heat stress*
          *This graphic is for illustrative purposes only and it is not a comprehensive view of all the climate hazards and associated consequences

          Climate change will increase vulnerabilities – physical safety, health, financial, economic, and legal. According to the United Nations High Commission for Refugees (UNHCR), an annual average of 21.5 million people have been forcibly displaced by climate change-linked extreme weather events (drought, wildfire, flooding, storms) since 2008. By 2050, 1.2 billion people could be displaced globally due to climate change-related natural events. Climate change has direct impacts on human health. According to the World Health Organisation (WHO), climate change is expected to cause approximately 250,000 deaths per year between 2030 and 2050 due to undernutrition, malaria, diarrhoea, and heat stress alone.

          Recognising and mapping the complexities and interconnectedness of these systems will better enable sectors and businesses to identify challenges and opportunities to effectively address climate change.

          Impacts of climate change on business continuity:

          The cost of weather-related disasters has increased by seven times since the 1970s, according to the UN University Institute for Environment and Human Security (UNU-EHS). In 2022, the world faced an economic loss of $313 billion due to such events. Climate change is causing a shift in the risk landscape, and the number of frequent disasters is expected to double globally by 2040.

          Climate change will significantly impact business operations, supply chains, and the long-term viability of sustainability strategies and commitments, thus threatening business continuity. Climate risks will endanger physical assets within businesses’ portfolios, increasing risks to human health and safety and operational disruptions. Existing infrastructure may no longer be operationally viable, increasing operational costs and risks of stranded assets. Consequently, stakeholders across value chains will experience supply chain disruptions resulting in lower revenue and profit margins and heightened financial risks. Heightened perception of risks will negatively impact the valuation of businesses, decreasing future investments businesses may receive.

          Disruptions experienced across value chains combined with increased financial and business risks will hinder businesses’ commitment and progress towards their sustainability and Net Zero targets, leading to reputational and policy risks, with increased dissatisfied consumers and stakeholders and governments tightening disclosure and conduct regulations. Businesses across sectors will need to start weaving their climate and sustainability strategies into their overall business strategies to effectively reduce climate risks, meet their climate commitments, and plan future CapEx, OpEx, and investments to ensure business continuity is not threatened by climate change.

          Climate mitigation is no longer sufficient; we need to pivot to adaptation:

          Effective climate action will require businesses to first identify where climate mitigation and climate adaptation will be appropriate. Climate mitigation includes efforts to reduce greenhouse gas emissions and slow down the progression of climate change. A majority of corporate sustainability focuses on mitigating the impacts of climate change. Climate mitigation will continue to be vital; however, it will no longer be sufficient, and economies will need to pivot towards climate adaptation. Irreversible effects of climate change are already being felt around the world, especially in the global south, increasing vulnerabilities. This formed the basis for the introduction of the Climate Loss and Damage fund at COP27, which aims at providing climate-vulnerable nations with adequate financial resources to adapt to the impacts of climate change.

          Climate adaptation, according to the UNFCCC, refers to adjustments in ecological, social, and economic systems in response to actual or expected climatic stimuli and their effects, changing processes, practices, and structures to moderate potential damages or to benefit from opportunities associated with climate change.

          By pivoting towards climate adaptative thinking, businesses can gain a better understanding of the full spectrum of future climate risks and develop associated risk management strategies. In doing so, businesses can improve the resilience of their supply chains, create new opportunities to gain market share with the development of new products and services, increase investor confidence and brand reputation, and ensure compliance with current and future policies.

          Enablers for climate adaptation and how Capgemini is working with clients and partners to develop the right thinking and strategies

          The initial steps towards climate adaptation are climate risk assessment and quantification and connecting climate strategies with overall business strategies and planning. While climate risk assessments are not new to most sectors (if not all), the context and timelines for climate risk assessments will need to change. Businesses will need to focus on future risks that span beyond a 10-year timescale and take into consideration the systemic, first and second-order impacts of these risks. Another key factor for success is collaboration – no business or sector will be able to address climate change alone. Businesses must collaborate across industries to ensure economies and countries adapt to climate change in an equitable, just manner.

          At Capgemini, we are already working with clients and partners to improve our collective understanding of future climate risks, the interconnectedness of their impacts across sectors, and the critical collaborations required to effectively deploy community-based adaptation strategies and scale at pace. Capgemini has partnered with organisations such as Meaningful Business, Future Planet, and Forum for the Future – collaborative networks of client organisations focused on collectively addressing the climate crisis and driving positive impact. Through these partnerships, Capgemini brings together clients across multiple sectors to engage with our experts on critical topics and opportunities for climate adaptation, building critical friend relationships with peers to collectively develop competencies in key areas such as sustainable finance, responsible consumption, circular economy, biodiversity, water, and capacity building.

          Meets our Experts

          Manogna Goparaju

          Climate Adaptation & Sustainable Finance Lead, Sustainable Futures UK
          Manogna is a climate adaptation and sustainable finance expert within the Sustainable Futures team. Her expertise lies in analysing companies’ strategies, business architecture, processes, products, and services to enable companies to address future, systemic climate risks and positively contribute towards internal and external sustainability/ESG agendas. Manogna holds a PhD in environmental economics and management, focusing on private sector corporate sustainability & the Sustainable Development Goals, and a Masters and Bachelors in corporate and environmental sustainability. She has corporate and academic experience in systems thinking, sustainable development, and corporate sustainability, and has previously worked on building climate resilience across complex systems (supply chains, cities) and development finance. 

          Mathilde Lacombe

          Sustainability in Life Sciences Lead, Sustainable Futures UK
          Mathilde is a sustainability strategy expert within the Sustainable Futures team. Mathilde’s proficiency is rooted in crafting strategic initiatives and fostering engagement with environmental stakeholders. She has a wealth of experience working across various sectors on sustainability strategy & environmental standards implementation, sustainable value chain and training & upskilling programme delivery. Mathilde holds a chemistry engineering degree with an environmental speciality. 

          Juan Diaz Reina

          Social Sustainability Lead, Sustainable Futures UK
          Juan is a sustainability professional boasting over 12 years of international and cross-cultural expertise, collaborating with governments, private enterprises, associations, third-sector, and multilateral organisations. Juan leads social sustainability at Capgemini Invent UK. He has experience and knowledge applying different national and international frameworks related to sustainability, such as the UK Social Value Model, the Equality Act 2010, the Sustainable Development Goals, the Paris Agreement on Climate Change, the Universal Declaration of HHRR, the UN’s Guiding Principles on Business and Human Rights, and the UN Global Compact seeking to promote impact, value and legacy, leaving no one behind.
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            Evolve beyond plastic dependency: our plastic assessment unlocks sustainability, value, and risk reduction. https://www.capgemini.com/gb-en/insights/expert-perspectives/evolve-beyond-plastic-dependency-our-plastic-assessment-unlocks-sustainability-value-and-risk-reduction/ Tue, 27 Feb 2024 12:12:56 +0000 https://www.capgemini.com/gb-en/?p=643490

            Evolve beyond plastic dependency: our plastic assessment unlocks sustainability, value, and risk reduction.

            Natalia Orrala
            Feb 27, 2024

            Transforming the plastic value chain with circular economy

            Plastic waste is polluting the environment, and its current consumption is incompatible with environmental targets. Globally, we produce twice the plastic waste compared with twenty years ago and only 9% is recycled. At the current consumption trend, 12 billion tonnes of plastic waste will pollute the natural environment by 2050. This versatile material is used in a variety of products and industries; however, waste is generated across the plastic value chain from production and transport to post-use stages. The effects of plastic consumption include environmental and human-related risks such as altering the marine ecosystem and potential cancers associated with the use of chemical additives.

            Several actors in the plastic value chain could face significant risks by not acting towards plastics circularity due to increased stakeholder pressure. Manufacturers and buyers of plastic packaging could face negative impact in revenues due to a lack of innovation in packaging design as consumers are becoming environmentally conscious.  In recent years, the Plastics Pact Network enabled by the Ellen MacArthur Foundation, where the UK is a Member State, is encouraging governments and organisations to establish a global treaty that ends plastic pollution.

            In addition, the regulatory landscape is tightening with new regulations and reporting standards enforcing metrics and accountability. Examples of regulations are the UK Plastic Packaging Tax set at £200 per tonne of plastic with less than 30% recycled content, and the UK Extended Producer Responsibility for Packaging that shifts the full cost of collecting household packaging waste from the taxpayers to producers. Reporting standards are also supporting collective action towards plastic reduction through transparency of plastic use. Recently, the Carbon Disclosure Project (CDP), a global reporting framework for greenhouse gas emissions, announced that plastic metrics will be included in companies’ disclosure for the first time.

            Organisations struggle to identify where to begin in their plastic reduction journey due to their over-reliance on the resource. Currently, efforts are over reliant on recycling and few in reducing plastic use. Over 500 companies set targets to use 100% reusable, recyclable and compostable plastic packaging by 2025, however, progress shows this target will not be met. Other organisations pledge that their plastic items are 100% recyclable but have not developed capabilities to recover plastic after usage phase.

            As a result, virgin fossil feedstock is still the largest share of raw material accounting for 90% of plastic items. Some of the challenges organisations face regarding plastic:

            • Reducing plastic use without compromising plastic functionality such as packaging to preserve food
            • Using recycled plastic and increasing efficiency of forward and reverse logistics
            • Sorting plastic waste and applying circular levers while keeping product quality and performance
            • Engaging with customers and end-consumers for plastic recovery
            • Enabling ecosystems between value chain players to revalorise plastic waste through innovation and technology

            To allow closing the loop for plastics, organisations need to develop capabilities in cross-sector collaboration across the value chain, innovation, and business models. However, organisations must first change their perception of plastic value and detect the largest sources of plastic dependency in their value chains to effectively take actions for its reduction.

            At Capgemini, we recognise the uniqueness of each client and their diverse sustainability objectives, calling for individual assessment to reduce plastic waste. While various initiatives have been launched to tackle plastic waste, different focus points exist depending on businesses priorities and the packaging function. As part of our assessment, we consider factors such as your industry sector, packaging materials, business model, supply chain capabilities and opportunities to achieve a circular ecosystem of plastic. Our team of sustainability experts can undertake an in-depth analysis of the plastic dependency at the material, product, or process level to prepare clients for upcoming regulations and reporting needs.

            Our strategic solution streamlines the process of identifying available solutions and technologies in the market, allowing you to prepare your organisation for implementing selected pilot projects. These projects include tangible actions to drive meaningful change and positive impact. The solution is ideal for clients seeking to shift their perception about plastic and aiming to proactively reduce their plastic footprint to stay ahead of the regulatory landscape.

            If you would like to learn more about how we have successfully helped clients and how we can support you in this journey, please contact Natalia at natalia.orrala@capgemini.com

            Meet our Expert

            Natalia Orrala

            Circular Economy Lead, Sustainable Futures, Capgemini Invent UK
            Natalia has professional experience in the materials and packaging manufacturing industries, with focus in operations and resources efficiency. Her focus areas are enabling a circular economy for packaging, optimise the use of resources including materials and energy and transition to renewables. Natalia has broad sector experience from engagements with clients in consumer products and retail, manufacturing, energy, and utilities sectors, and holds a unique skill set in business, sustainability, and engineering.
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              Here Is My Journey, Through the Medium of Poetry https://www.capgemini.com/gb-en/insights/expert-perspectives/journey-through-the-medium-of-poetry/ Tue, 27 Feb 2024 08:11:00 +0000 https://www.capgemini.com/gb-en/?p=643432

              Here Is My Journey, Through the Medium of Poetry

              Ella Mann
              Feb 26, 2024

              Navigating through various career paths, Ella has found her niche in the blend of sustainability and technology at Capgemini. Motivated by a commitment to inclusivity and innovation, Ella has led initiatives to drive positive change. Hear Ella’s story of how she came to be a Data Engineer at Capgemini.

              I have a Unalome tattooed on my finger to represent that a life path is not a straight journey, which was certainly the case for me.

              I wanted to be an architect originally, designing houses with a conscious mind environmentally, but when you are the only girl in the engineering class, you end up being the target for the bully.
              From working in Hospitality whilst obtaining a First-Class Honours degree, to becoming an educator to young adults between the ages of 16 to 25 who had additional educational needs, then changing careers again, to work in NHS research within Oncology.


              I follow Stoic philosophy, which has always led me to improve myself and grasp every opportunity. I’ve always wanted to make the world a better place and felt I could only do this, by getting into the world of tech and consultancy.

              I am beginning to focus my efforts towards learning the technical aspects associated with the DevOps mentality, because I believe many of the aspects go hand in hand with sustainability.
              I would one day like to become an innovator and advocator for practices that will support an economically stable and environmentally sustainable society. Prime Minister even one day, maybe?

              I started towards architecture from the passions of engineering and solving problems mathematically.

              Science was covered in my Nursing with biology, so what was left to delve into other than technology?
              I have always had barriers towards this industry. I have stayed away from it because of things like the materials in our smart phone screens, being made from earth’s materials that cannot be provided, endlessly.

              My thoughts started to change as I began to create art digitally, alongside being accepted into the Code First Girls Degree and whilst doing my research about which company is the best suited for me, I was sure to find use cases, mission statements and awards for Capgemini.
               

              I changed careers because there is a cloud architect in my life who continues to inspire me, but I have always had an interest in STEM especially because within the career paths there is so much variety.
              My switch was also dependent on where I resided at the time geographically, because if I was still in Cornwall, I’d have not been able to embark on this journey.


              I am still blown away that I am where I am today because of Instagram, algorithms, and cookies.  That because I was searching “how to learn to code for free”, up popped a post on Instagram about the CodeFirstGirls Degree and I am now working for the company of my dreams.

              I think the fact that it was for women only had an impact massively, it is slowly changing, but tech is still a male dominated industry.

              I basically wouldn’t be able to work for the company of my dreams and progress to where I want to be, if it was not for CodeFirstGirls and Capgemini sponsoring me, I think that speaks for itself, really. 

              I chose to join Capgemini because I felt that I uphold all the company values within myself intrinsically, to me this is important when selecting an employer, you see. Capgemini’s ethos aligns with me personally because of my interests in sustainability. Type this topic into google and you will see the amount of Capgemini’s work and awards received.  It was also because of the visions of inclusion and diversity and how they are accepting of people like me who experience challenges due to neurodiversity.

               I have now witnessed first-hand Capgemini’s ethos towards diversity and experienced the inclusivity.  There are always opportunities to grow, and I have very supportive people manager, colleagues and I am part of many communities.
              I’ve taught people to master GitHub through an educational initiative, expanded a Women & Sustainability stream, become the Sustainability Guild comms lead and a finalist for the woman for the future awards, all in the year of 2023.

              I am here to stay, because I think Capgemini have the influential ability, to change many of the leading industries to adopt a focus on sustainability.
              Through collaboration, innovation, and technology, I believe Capgemini could encourage or even implement those changes needed for all of society.

              If you’re looking for your next career move, then consider exploring opportunities with Capgemini here.

              Ella Mann

              Data Engineer
              Ella is an Associate Data Engineer with a background in Educational Training, Medicinal Research, and frontline working in the Healthcare Sector, and is now onboard the Cloud Data Platforms team at Capgemini. Ella has obtained a certification for the programming languages of SQL and Python 3 and she is ambitious to be a DevOps Engineer working with CI/CD pipelines and in the future be a Cloud or Solutions Architect.
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                Six key considerations for water companies launching a smart meter programme, and how Capgemini can help https://www.capgemini.com/gb-en/insights/expert-perspectives/six-key-considerations-for-water-companies-launching-a-smart-meter-programme-and-how-capgemini-can-help/ Mon, 26 Feb 2024 14:38:06 +0000 https://www.capgemini.com/gb-en/?p=643124

                Six key considerations for water companies launching a smart meter programme, and how Capgemini can help

                Iain Fry
                Feb 26, 2024

                AMP8 is already shaping up to be the largest investment in infrastructure by the UK water sector. With over 10 million smart water meters scheduled for installation, competition for the best teams and resources is going to be fierce. Couple that with a penalty-linked incentive regime for missed smart meter installations and the war for resources will be costly. 

                Being prepared to take a multi-vendor approach throughout the full life of your programme will help you ensure a successful delivery, across meters, network and installers. A multi-vendor approach requires partners to be appropriately incentivised to your business outcomes; it’s important to align ways of working, processes, and systems. Strong contract and programme management, clear KPIs and robust risk and governance approaches will be key to success.

                Here, Iain Fry, Industry Adviser at Capgemini, explains key considerations when launching a smart meter programme, and details how Capgemini supports clients on the journey.

                1. Create the right eco-system of partners early to secure long term, effective, and reliable partnerships.

                In trying to create and manage the right partner ecosystem for a smart meter programme – i.e. meter suppliers, installation partners, communications and network providers, and integrators – companies can find themselves distracted from the real, long-term business objectives of smart meters.

                Capgemini brings together an ecosystem of partners, providing overall programme management, along with technology services, data and analytics, and integration capabilities. This model includes a scope agreed ahead, well-managed dependencies, aligned delivery teams, a single point of contact, and robust quality assurance.

                2. Expect a near-term and long-term view of time horizons.

                Busy focusing on establishing the right set of partners, ensuring supply chains are in place, and creating the right operating model to get meters in the ground, connected, and transmitting data, it’s easy to put data value to one side. However, understanding how future data could be exploited is key in creating those initial operating environments and technologies.

                Since 2007, Capgemini has successfully delivered over 100 smart meter roll out programmes internationally, supporting customers and clients to deliver and deploy over 170 million smart meters. With this deep expertise, we help clients set up the initial ‘phase 1’ of a smart meter programme with the right structures and a clear understanding around the future ‘phase 2’ organisational value of smart meter data.

                3. Don’t underestimate the volume, complexities, and dependencies of the various data entities.

                In a past CIO role at a UK water company, I was taken aback by the sheer amount of data coming back from the smart meters we had just rolled out. They were recording accurately (part one of the puzzle), but we experienced challenges with data flows because of bottlenecks and architectural challenges that we needed to overcome.

                As a trusted technology partner, Capgemini’s data teams can provide architecture, hyperscaler support, native tool and platform engineering capabilities to make sense of the otherwise overwhelming influx of complex data sets coming from smart meters.

                4. Data augmentation will be critical to the success of creating real insights into both consumption and network performance.

                Throughout a smart meter programme, it’s crucial to manage different types of data and augment it with other systems and sources to get a richer picture of what smart meters are telling you. By applying business rules to validate raw data and alarms, we make sure triggers go beyond operational use, have business impact, and are maximally relevant to customers. Based on these validated business triggers, you can set up an effective and layered communication strategy to increase the impact at customer side. With machine learning we can refine data models, enabling us to predict and identify anomalous patterns, allowing for more pro-active communication and rectification before seeing an impact at customer side (e.g. before billing or visualisation in client portal).

                5. Plan exploitation of data ahead to deliver early.

                You’re collecting accurate data, you’re getting it to flow where it needs to flow, and you’re augmenting it with key systems and solutions. So, what are you going to use it for? Where is its value further down the line?

                Cambridge Consultants, part of Capgemini Invent, has a wealth of Generative Artificial Intelligence (Gen AI) and Machine Learning capability designed to unlock further opportunities for creating business value from smart meter data. Gen AI has increasing capabilities to bring efficiencies in multiple areas, including smart meter network design and deployment, field services management, and customer data interpretation. Gen AI will also support development of new customer offerings, increasing time to market for utilities.

                6. Behavioural change around consumption and usage isn’t easy.

                With rising water scarcity in the UK, influencing customer behaviour and reducing consumption is vital, and needed on a greater scale than ever before. Consumption is often driven by price point and as water isn’t a comparatively expensive commodity, it’s hard to convince people to take less of it. One of the industry’s biggest challenges is how to influence people to really think about their water consumption.

                Initial inroads will likely come in the form of reducing customer-side leakage; using smart meter data to highlight leakage after the meter or wastage through leaky ‘loos’ or dripping taps. Nobody wants to pay for something they’re not actually using.

                The other part of the equation is how to influence conscious usage behaviours. Smart meter data can support associated education, awareness, and customer engagement campaigns, bringing water usage to life and presenting it in a way that’s easy to understand and aligns with opportunities to proactively reduce consumption.

                Typically, we should reach beyond our current customer base to engage with our future customers – tapping into a more environmentally-aware consciousness by engaging with schools and colleges to ensure water wise messaging is integrated into curriculums and classroom debate.

                The customer strategy and experience team at frog, part of Capgemini Invent, brings a wealth of experience in exploiting data sets like smarter meter data, integrating it into other channels, supporting clients to run behavioural change campaigns, and public engagement. They understand the value and richness of this data in creating real life analogies that underpin water efficiency messaging.

                Get in touch

                With deep expertise in the water sector, and driving benefits from smart meter programmes, Capgemini is your business and technology partner for smart meters – from designing smart meter strategies, to advising on how to use data in a smarter way.

                For a solid understanding of our expertise in the area, explore some of our key resources (including the ultimate guide to smart meter programme implementation and our best client success stories) over on our dedicated smart meter page.

                Iain Fry

                Industry Adviser
                Iain is an Industry Advisor in our Energy Transition and Utilities business advising across a number of strategic digital initiatives, including the overarching Smart Programme. Currently, this has a specific focus on the UK Water Sector given Iain’s previous senior positions at Anglian Water. Most recently, Iain held the position of CIO at Anglian Water and sat on its Management Board responsible for IT, OT and Digital initiatives across the business. Iain brings a wealth of experience in regulatory businesses, having worked across energy before joining the Water Sector and has an in-depth understanding of how technology functions must evolve into value centres that shape the future operating models of our next generation utilities.
                  ]]>
                  5 Key Themes: Navigating the Future of Supply Chains – Part 2 https://www.capgemini.com/gb-en/insights/expert-perspectives/5-key-themes-navigating-the-future-of-supply-chains-part-2/ Fri, 16 Feb 2024 06:25:14 +0000 https://www.capgemini.com/gb-en/?p=642132

                  5 Key Themes: Navigating the Future of Supply Chains – Part 2

                  Gabby Thomlinson
                  Feb 16, 2024

                  In this 2-part thought leadership piece, discover how Capgemini has supported supply chain professionals to leverage real-time data, transform collaboration, upskill their workforce, harness AI and cognitive technology, and embrace sustainability practices to create a future-ready supply chain.

                  Supply chain leaders must stay ahead of the curve to ensure their organisations thrive. Capgemini has identified five key themes that will shape the future of the end-to-end supply chain.

                  Part-1 explored the pursuit of resilience and agility, seamless collaboration, and future-fit employees. Please see here to read. Read Part-2 below to examine AI-enabled supply chains and sustainability at the heart of supply chain processes.

                  In a rapidly changing world, supply chain leaders must stay ahead of the curve to ensure they thrive. Capgemini has identified five key Supply Chain themes, with supporting future initiatives, that will be on the minds of retail and consumer product leaders in the years to come.

                  These are:

                  1. The Pursuit of Supply Chain Resilience and Agility
                  2. Seamless End-to-End Collaboration
                  3. A Future Fit Employee Ecosystem
                  4. Supply Chain Enabled by AI and Cognitive Technology
                  5. Sustainability and Circularity at the Heart of Supply Chain Processes


                  Following on from Part-1, we will exemplify these themes through a User Journey of a Supply Chain leader of the future, who is dealing with a scenario of skyrocketing demand.
                  The user journey continues on to examine the final two key themes: how AI and cognitive technology, and an embrace of sustainability practices can create a future-proof supply chain. 

                  4. Supply Chain Enabled by AI and Cognitive Technology

                  Today, the adoption of Machine Learning (ML) and Artificial Intelligence (AI) technologies has resulted in significant changes to ways of working across many businesses. ML and AI have empowered businesses to automate routine tasks, rapidly analyse vast amounts of data, and derive actionable insights for enhanced decision-making. This has led to improved productivity, streamlined operations, and the ability to unlock previously unattainable value.  

                  As adoption of AI and ML continues to accelerate, supply chain professionals will have an opportunity to adapt their ways of working to focus on higher value activities. This includes strategic decision-making, complex problem-solving, and building strong relationships with suppliers and partners. Supply chain professionals will shift their roles from transactional and operational, to strategic and analytical. Supply Chain Teams being supported by technology that enables these strategic insights and analysis allows them to build closer supplier  and customer relationships based on a clear data picture. Organisations should seek to support this shift as broadly as possible.

                  To support the integration of AI and ML tools, the identification of the right tools for the organisation is required. Advanced technologies such as cloud-based platforms, Internet of Things (IoT) sensors, and AI-driven analytics, allow real-time information sharing and analysis to become the norm across the entire supply chain network. In the future, integrating IoT sensors will enable supply chain leaders to leverage emerging technologies such as Digital Twins, adding simulation and prediction capabilities to a business as usual driven by machines, but managed strategically, through AI and ML tools. This is even more important in an increasingly unpredictable, less stable world.

                  Organisations are increasingly adopting flexible planning tools, where systems “speak one language” through standard protocols and a centralised data repository. The development of these advanced technologies will also enable centrally based supply chain teams to be able to work with multi-tier suppliers seamlessly to meet everchanging customer demands. These planning tools offer an operational advantage, and in the future, can be connected into Supply Chain Digital Twins, which offer simulative and predictive capability. This unlocks further insight and analysis, with AI and ML technology supporting people, rather than people-supported technology.

                  Organisations that have not yet started their journey with the AI and ML tools should look for the right business cases to suit them and their specific needs; a key focus should be to understand the data they will need to ingest and whether that data is available. Starting with a small minimum viable product (MVP) allows businesses to effectively identify whether the capabilities exist in their organisation and how effective the models in reaching their goals. 

                  Capgemini is actively involved in ML and AI transformations, both in planning, and along the end-to-end supply chain. This includes the study and implementation of forecasting tools that ingest varied data sources, both structured data (such as sales data or inventory), unstructured data (such as customer reviews and social media) and driving value out of new technologies such as Digital Twin and Generative AI. We upskill teams to understand the associated benefits that are unlocked and how to train and improve algorithms going forward, and how teams might leverage the capabilities of ML and AI.

                  Future supply chain leader: “Technology enabled our supply chain quickly detected the demand spike through advanced AI and cognitive technology. These powerful tools analysed real-time data, enabling us to identify the emerging trend and its magnitude. With this insight, we swiftly mobilised our resources and automated processes to meet the surging demand. AI adjusted production, optimised inventory, and synchronised supply and logistics operations; all whilst allowing us to see the volume and value conversions.” 

                  5. Everything should have Circularity and Purpose at the Heart of it.

                  The planet is under enormous pressure, and it is imperative that business decisions are driven with circularity at the heart. Most large corporations are making positive commitments towards important sustainability goals, and this should be supported by a consistent change in business culture. To support these goals at Capgemini, we ensure every action we propose to our clients is scrutinised under a green lens, to support the most sustainable and impactful decision-making.

                  As discussed in the section “A Future Fit Employee Ecosystem” supply chain professionals will need to become proficient in ML and data analysis. These technology developments support accurate, insight driven forecasts to reduce waste and promote sustainability. Using the latest technology can improve forecasting to reduce the levels of excess inventory and so, decrease the amount of waste resulting from excessive production. Furthermore, product innovation should be underpinned by the net-positive impact of the new product, this means ensuring circularity is embedded in the design.

                  Furthermore, companies will have to prove their commitment to their sustainability pledges if they wish to retain and attract top talent. Corporations should go beyond making pledges and begin to embed a new culture of circularity into their ways of working. 

                  From the inception of a project, Capgemini measures carbon impact, and we commit to projects with sustainability as the centre focus, such as net zero strategy or sustainable operations. In supply chain projects we consider the benefits sustainable changes can make, such as improved materials and resources planning and usage, as well as reduced transportation through improved route planning.

                  Supply chain leader: “Amidst the surge in demand, we prioritised sustainability by implementing eco-friendly transportation practices and adopting lean manufacturing principles. We optimised our supply chain to reduce carbon emissions, minimise waste, and maximise resource efficiency. By sourcing materials responsibly and adopting circular economy principles, we minimised our environmental footprint while meeting the increased demand”.

                  To summarise…

                  To conclude, leveraging AI and cognitive technology amplifies the capabilities of supply chain processes, offering unprecedented levels of efficiency and adaptability. Sustainability and circularity remain at the heart of these processes and underline the responsibility and opportunity for organisations to contribute positively to the environment and societal change.

                  The 5 key themes outlined in both parts of this series collectively pave the way for a future-proof supply chain, to become stronger and more adaptable. If supply chain leaders were to embrace developments, they would commit to creating a resilient, collaborative, and sustainable future. By aligning with these key themes, supply chain leaders can confidently navigate the uncertainty and position their organisations for sustained success in the evolving landscape of tomorrow.

                  As we navigate the future of the supply chain, it is evident that the landscape is evolving at an unprecedented pace. The five key themes identified by Capgemini – Supply Chain Resilience and Agility, Seamless End-to-End Collaboration, a Future Fit Employee Ecosystem, Supply Chain Enabled by AI and cognitive Technology, and Sustainability and Circularity – stand as guiding beacons for leaders in this dynamic environment.

                  Within Capgemini’s Supply Chain expertise, we possess extensive experience in supporting organisations transform their entire end-to-end supply chain.  We bring industry specific experience, and we pride ourselves in identifying key value unlocks across the whole end-to-end supply chain to support leaders in ensuring resilience and sustained success.

                  In case you missed it, please see the first three themes explored here in Part-1 of the Themes of the Future for Supply Chain Leaders; Part-1 examines the themes of resilience and agility, seamless collaboration, and a future-fit employee ecosystem.

                  Meet out Authors

                  Gabby Thomlinson

                  Senior Manager, Supply Chain, Intelligent Industry

                  Marcella Saads de Carvalho Ferreira

                  Senior Manager, Supply Chain, Intelligent Industry

                  Robin Sharma

                  Managing Consultant, Supply Chain, Intelligent Industry
                    ]]>
                    5 Key Themes: Navigating the Future of Supply Chains – Part 1 https://www.capgemini.com/gb-en/insights/expert-perspectives/5-key-themes-navigating-the-future-of-supply-chains-part-1/ Fri, 16 Feb 2024 06:23:58 +0000 https://www.capgemini.com/gb-en/?p=642068

                    5 Key Themes: Navigating the Future of Supply Chains – Part 1

                    Navin Lutchmun
                    Feb 16, 2024

                    In this 2-part thought leadership piece, discover how Capgemini has supported supply chain professionals to leverage real-time data, transform collaboration, upskill their workforce, harness AI and cognitive technology, and embrace sustainability practices to create a future-ready supply chain.

                    Supply chain leaders must stay ahead of the curve to ensure their organisations thrive. Capgemini has identified five key themes that will shape the future of the end-to-end supply chain.

                    Read below for Part 1 which explores the pursuit of resilience and agility, seamless collaboration, and future-fit employees. See here for Part 2 which examines AI-enabled supply chains and sustainability at the heart of supply chain processes.

                    In a rapidly changing world, supply chain leaders must stay ahead of the curve to ensure they thrive. Capgemini has identified five key Supply Chain themes, with supporting future initiatives, that will be on the minds of retail and consumer product leaders in the years to come.

                    These are:

                    1. The Pursuit of Supply Chain Resilience and Agility
                    2. Seamless End-to-End Collaboration
                    3. A Future Fit Employee Ecosystem
                    4. Supply Chain Enabled by AI and Cognitive Technology
                    5. Sustainability and Circularity at the Heart of Supply Chain Processes


                    We will exemplify these themes through a User Journey of a Supply Chain leader of the future, who is dealing with a scenario of skyrocketing demand.

                    The user journey will showcase how real-time data, seamless collaboration and workforce upskilling can create a future-proof supply chain.

                    1. The Pursuit of Resilience and Agility

                    In the present, we have observed that supply chain leaders have limited digital resource to identify and react to live issues, thus they spend much of their time firefighting and in quick-response mode. To combat this, we recognise that supply chain leaders are prioritising resilience, and this will continue to be at the forefront of leaders’ minds. The pursuit of resilience and agility will require supply chain professionals to leverage their existing skills, as well as develop new abilities, including real-time data analysis and scenario planning to respond to disruptions and market changes quickly. Therefore, in the future it will become imperative to measure supply chain responsiveness from alert to action and the success rate of the same.

                    The Integrated Business Planning (IBP) process allows leaders to become resilient by incorporating decision making at different time horizons, prompted by artificial intelligence (AI) tracking algorithms, this gives humans in the supply chain the tools to evaluate demand drivers and identify the impact of external influences.

                    Alongside more traditional IBP activities and forums, companies can start to allow teams to focus on contingency planning. This will ensure that the supply chain is prepared for any eventuality through the ability to scenario plan and determine how to react to these scenarios internally. This can be supported through End-to-End (E2E) planning control towers. These towers are equipped with the processes, tools and data that enable rapid decision making and escalation where needed.

                    Capgemini supports its clients in the set up and management of the E2E planning control towers. We have seen increased resilience and agility from these control towers, allowing organisations to respond to disruptions and market changes quickly, but well-prepared.

                    Future Leader: “When demand skyrocketed for our hottest product, our agile supply chain team sprang into action. Armed with real-time sales data, they collaborated closely with suppliers and made rapid adjustments, they evaluated transportation capacity and inventory levels. The outcome? Seamless adaptation, meeting customer demands. Our team is on the move, making it happen.”

                    2. Seamless End-to-End Collaboration

                    Today, successful collaboration within an organisation’s ecosystem is heavily reliant on the breaking down of silos. This can be supported through the introduction of end-to-end planning roles; the sharing of data from a unified Enterprise Resource Planning (ERP) system; and from transparent processes. It has been recognised that effective collaboration can lead to improved efficiency and customer satisfaction. However, effective collaboration is difficult to attain as there is still a lack of visibility across end-to-end business transactions; a lack of standardised processes; and very complex international supply chains (spread across multiple tiers, with complex subcontracting and logistics) with delays, quality issues and increased costs.

                    Seamless end-to-end collaboration in the future relies on two essential factors:

                    1) Within the extended value chain, there must be a successful collaboration across an ecosystem of partners. Supply chain teams will need to learn to collaborate seamlessly across the entire end-to-end process, from suppliers to customers, with the whole value chain being connected as if working across one ERP system. The establishment of an extended value chain creates a collaborative ecosystem among trusted partners, fostering collective innovation and maximising efficiency.

                    2) The integration of a solid framework for decision making, including clear Key Performance Indicators (KPIs) and metrics to measure the KPIs. A robust, shared decision making-framework and joint KPIs can support future performance to allow organisations to achieve their objectives.

                    Following assessment of these factors, organisations should consider whether their current technology layer is truly end-to-end and where siloes exist. They should consider how data in one part of the organisation can feed another to allow for system efficiency and better performance. Companies should also look to support their key external suppliers to in their innovation development to allow for this seamless, end-to-end collaboration. Some examples are a multinational digital communications technology corporation integrating a robust Supplier Relationship Management (SRM) system and a leading organisation introducing collaborative platforms for sustainable sourcing as part of its sustainable commitments.

                    Capgemini supports our clients in understanding which is the best-suited next generation technology architecture for their business. We ensure these tools enhance collaborative working across the whole business in a continuous and autonomous way, taking clients leaps forward in achieving seamless collaboration.

                    Future Leader: “In response to the rise in demand, we revolutionised what collaboration meant with our key supplier. Real-time connections and innovation-driven discussions replaced traditional meetings. Using virtual environments such as the meta-verse and digital twin, we brought ideas to life and unlocked unprecedented creativity whilst dealing with a complex situation. Partnering closely with suppliers, we turned challenges into opportunities, forging a future-ready, thriving supply chain of value seekers, not parameter setters”.

                    3. A Future Fit Employee Ecosystem

                    At present, a limited number of white-collar jobs have been automated, but a large amount of streamlining has occurred, especially in back-office functions. This streamlining has eliminated many obsolete skills, such as manual data inputting. A paradigm shift is necessary to adapt to an uncertain future for the remaining skills and the to-be automated roles.

                    In the future, job security and fulfilment will have two co-dependent tenets:

                    1) Adaptability and continuous learning are of a high importance, to support today’s technology acceleration. Supply chain professionals will require a new set of skills, including proficiency in data analysis, machine learning, and artificial intelligence (AI). For employees, it is essential to identify and understand where they can drive incremental value to support the technology acceleration.

                    2) Organisations will have to redefine their talent strategy. They must plan to support the employment of the next generation of the brightest graduates while adapting to new technology. Furthermore, teams will require investment in training and development programs to ensure that employees have the necessary skills to thrive in a rapidly changing.

                    Organisations will have to consider the impact of advancing technology and how to best support the development of role agnostic jobs. This can create an employee ecosystem, where employees are working on several strategic activities across the E2E supply chain that can create value rather than using manual tools to fight the usual fires.

                    At Capgemini, we have set up training academies as part of numerous large-scale transformation programs. These training academies focus on developing skills and fostering a sense of community, with specific trainer roles and pathways to continue upskilling. These academies support the next generation platform rollouts and allow organisations to stay aware of new role changing technologies. For further detail, please see this Capgemini Research paper on the “Fifteen Supply Chain Jobs of the Future”. We analyse what will be required for organisations to foster a continuous learning mindset with high levels of emotional intelligence to support the technology implementation.

                    Future leader: “Knowing that unprecedented events, such as demand surges, can happen at any moment, we spent time equipping our employees with a proficiency in working with real-time data, developing scenario planning capabilities, and leveraging advanced technologies. Additionally, we focused on fostering human-centric collaboration skills, promoting effective communication and teamwork so we can easily connect with suppliers. Our upskilled workforce was the driving force behind sales success.”

                    To summarise…

                    The narrative of a future supply chain leader illustrates the practical application of these themes. Real-time data underpins the supply chain, providing the necessary insights for agile decision-making. Seamless collaboration fosters connectivity across the entire supply chain, breaking down silos and enhancing efficiency. Workforce upskilling becomes imperative, shaping a Future Fit Employee Ecosystem capable of navigating the complexities of tomorrow.

                    For leaders to strategically prepare for these five future themes, they should consider how their processes will need to adapt, including the skillset their employees will need to acquire to succeed in these future environments and the capital investment the advanced technology requires.

                    As we navigate the future of the supply chain, it is evident that the landscape is evolving at an unprecedented pace. The five key themes identified by Capgemini – Supply Chain Resilience and Agility, Seamless End-to-End Collaboration, a Future Fit Employee Ecosystem, Supply Chain Enabled by AI and cognitive Technology, and Sustainability and Circularity – stand as guiding beacons for leaders in this dynamic environment.

                    Within Capgemini’s Supply Chain expertise, we possess extensive experience in supporting organisations transform their entire end-to-end supply chain. We bring industry specific experience, and we pride ourselves in identifying key value unlocks across the whole end-to-end supply chain to support leaders in ensuring resilience and sustained success. To explore the final two key themes, please see linked here  Part-2 of our Themes of the Future for Supply Chain Leaders. Part-2 explores the themes of AI-opportunities and sustainability at the heart of an organisation’s future.

                    Meet our Authors

                    Navin Lutchmun

                    Director, Supply Chain, Intelligent Industry

                    Christopher Cooper

                    Managing Consultant, Supply Chain, Intelligent Industry

                    Charlotte Jones

                    Consultant, Supply Chain, Intelligent Industry
                    Charlotte Jones is a consultant within Capgemini Invent’s Intelligent Industry team, specialised in Supply Chain and with a focus on Consumer Products, Retail and Distribution.
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