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Edition 2016-2017

Look Out
Trends 2016+

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Ascent Look Out 2016+
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The full report and separate PDFs of each Market Views


can be downloaded at ascent.atos.net/ascentlookout2016

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Contents

4 Welcome to Ascent Look Out


5 Horizon Scanning for a More Resilient Digital Journey
6 Key Transformation Challenges

Market Context
10 Focus On: Reinventing Business in the Digital Age
14 Megatrends: Socio-Cultural, Economic and Political
24 CxO Agenda

Market Views
38 Aerospace 98 Healthcare
44 Automotive 104 Homeland Security
50 Banking 110 Insurance
56 Chemicals 116 Media
62 Cities 122 Oil and Gas
68 Consumer Packaged Goods 128 Pharmaceuticals
74 Defense 134 Retail
80 Discrete Manufacturing 140 Telco
86 Education 146 Travel, Transport and Hospitality
92 Government 152 Utilities

Tech Trends
160 Technologies that will Impact your Business
Introduction

Welcome to Ascent Look Out

''As digital business empowerment takes


center stage, your business of tomorrow
will need to become radically different to
Thierry Breton your business of yesterday.''
Chairman and Chief Executive Officer,
Atos

Welcome to our latest edition of new business models as well as secure and future, enabled by technology. It will help
Ascent Look Out. It provides an in-depth agile operations. you make informed strategic decisions and
analysis of the emerging trends, business take the bold steps needed to stay ahead.
needs and technologies that will drive As such, our Ascent initiatives, which After all, today’s increasingly digital world
innovation in your industry and your own include Ascent Look Out, are designed to means you must embrace the full power of
business in 2016 and beyond. share innovation and thought leadership technology to fundamentally change your
with our partners and clients across all business.
As digital business empowerment takes industries and the business technology
center stage, your business of tomorrow spectrum. Delivered by our market and technology
will need to become radically different experts across the globe, it uncovers
to your business of yesterday. And our By blending business knowledge with hundreds of insights and innovations
responsibility at Atos, as trusted partner technology know-how, Ascent Look Out across 20 markets – critical trends that lie at
for that digital journey, is to ignite your systematically explores the key the intersection of technology, people and
imagination, sparked by our vision of a transformation challenges that will face any business that make progress possible.
future enabled by technology. business seeking to make digital second
nature. We hope you will enjoy the read and the
We will help ensure digital becomes second journey ahead with us, exploring the new
nature and is fully integrated throughout This sixth edition offers a clear, independent and stimulating opportunities that will drive
your business – from providing a seamless and authoritative cross-sector insight, your digital transformation in 2016 and
customer experience through to enabling painting a picture of your businesses in the beyond.

4 #AscentLookOut
Introduction

Horizon Scanning for a


More Resilient Digital Journey
Together Atos’ Chief Commercial Officer and Group Advisor for Technology introduce the
philosophy behind Ascent Look Out: why horizon scanning is a critical element of your digital
journey, how megatrends are driving transformation challenges in your markets and how
technologies are enabling the novel opportunities and addressing the new threats raised by these
challenges.

Patrick Adiba Philippe Vannier


Chief Commercial Officer, Group Advisor for Technology, Atos
CEO Olympics & Major Events, Atos

We’ve now entered the age of operations and routes to market. healthcare providers, amongst others,
face the seemingly opposing forces
digital disruption PA: We talk about that in the ‘Focus On’ of ‘maximizing process efficiency’ and
section, where we reveal five golden rules ‘personalizing user experience’.
Philippe Vannier: Patrick, so how should
for reinventing business in the digital age.
we introduce Ascent Look Out 2016+?
One is the horizon scanning that allows you Unlocking your potential
to systematically investigate tomorrow’s
Patrick Adiba: We could start by saying
trends and explore future possibilities. through innovation
that the speed at which technology is
impacting our lives is accelerating. PA: The next step is to work with the wider
PV: What’s more, horizon scanning within
an Innovation Value Web – with partners, ecosystem to come up with novel ideas
PV: Indeed, it’s radically reshaping the very that match these opportunities and threats
customers and peers – helps you unlock
nature of business, dramatically challenging with solutions built on new and emerging
novel ideas for that additional competitive
established business models across all technologies.
edge.
markets.
PA: Such as the partnerships with financial PV: Yes. Take the insight platforms
PA: Just look at the connected car. It will described in the Tech Trends section.
institutions that are allowing oil and gas
completely disrupt both the automotive Healthcare providers are using cognitive
companies to offer credit management in
market and adjacent businesses. computing to rapidly transform increasing
gas stations?
volumes of data into actionable insights.
PV: Have you seen how car manufacturers
are already offering new infotainment and Uncovering new opportunities PA: Behind the scenes, powerful high
maintenance services, thanks also to 5G, & preparing for uncertainties performance – soon ‘exaFLOPing’ –
the IoT, NFC and cognitive computing? computing systems perform complex
PV: Ascent Look Out begins our horizon simulations and analyses. These are vital for
PA: It will also significantly impact the scanning process with the megatrends: the anticipating diseases as well as delivering
insurance industry and our cities too. We’re social, economic and political waves that the customized dosing that offers more
already seeing usage-based insurance impact both our business and personal effective treatment.
models and smart traffic management. lives.

PV: Do you think we’ll still need drivers,


Exploring opportunities
PA: Take the demographic evolutions, for
parking and insurers when the car example. Social welfare and health systems beyond your own market
becomes fully autonomous? In a few years, are becoming increasingly strained while
we’ll be asking ourselves why we ever let the relative size of the working population PV: Our readers should not only take a look
humans do the driving! reduces. at what is happening in their own markets,
but also explore other markets too, as that
PA: And we’ll also be questioning whether PV: Today's third digital revolution, with is where the truly novel ideas will emerge
we’ll still need traffic lights... its rise of automation and robotics, will from.
help ensure healthcare services remain
PA: Indeed, each market focuses
Exploring the future – sustainable as the population transforms.
individually on the four key transformation
systematically PA: The CxO Agenda chapter highlights challenges that every organization is
the numerous opportunities and threats facing: Customer Experience, Business
PV: In fact, new emerging technologies Reinvention, Operational Excellence and
brought about by the megatrends.
mean all industries and geographies will Trust and Compliance.
need to innovate – to fundamentally rethink
PV: Take personalization, for instance:
their business strategies, business models,

Ascent Look Out 5


Introduction

Key Transformation Challenges

No matter how big or how small, how young or how well-established, every business and every
government organization is facing four key transformation challenges, whatever its industry
sector and geography. Ascent Look Out will help you recognize, understand and address the new
opportunities and novel threats brought by each of these key transformation challenges. We begin
by introducing Customer Experience, Business Reinvention, Operational Excellence and Trust and
Compliance.

Discover how the rise of digital technology increasingly important. A happy customer
has raised customer expectations for high will remember the experience they had,
quality and convenient service to new not what they bought, and come back time
heights across all industries. Note also how and time again for more of the same.
today's customers' elevated desire for that
personal touch is contrasted by a desire to And in return for that good experience,
Customer Experience do as much as possible for themselves. customers are happy to become your
social advocates, reviewing your products
To do this, customers need constant access and services while ‘liking’ your digital pages
Daniel Cohen to information and applications – from any in their multitude of social forums. So when
Head of location and on any device at any time. The potential new customers do their research,
Financial Services & technology has to deliver a consistent and that favorable evidence shines through
Insurance seamless service across all their favorite brightly. It could make all the difference to
channels – both physical and virtual. your ongoing success.

As customer relationships deepen,


‘‘Today’s connected individuals want Customer Experience becomes
their financial services to be not only
personalized, seamless, consistent
and trusted across all channels; they
also expect them to be intelligent,
contextual and able to anticipate their
needs within their digital financial
ecosystem.’’

Our markets are constantly evolving. revenue models. You will find that this
Businesses are continually improving their data is also key to the multi-sided business
practices, not just doing things differently models that are driving innovation and
to drive efficiency but realizing the potential collaboration across markets.
of technology to do completely different
things. But digital is not a specific application or
Business Reinvention technology; it’s a cultural change. The
Business Reinvention is about full impact on business transformation is
understanding the value and insights that only felt when the supporting business
Bruno Fabre are so often locked up in transactional processes allow new business models
Head of business data. Customer insight and – and co-innovation models with their
Telco, Media & market analytics are helping them identify evolving stakeholders – to be defined,
Utilities new channels to market and new service implemented and managed.
opportunities.

Analytics uses data to reveal new


‘‘Today’s evolutions need more open opportunities for growth, enable just-in-time
and more agile partnerships: from production models and suggest alternative
utilities’ multi-sided business models
around electric vehicles in smarter
cities and Telcos helping banks and
retailers deliver an omni-channel
experience to media and utility
consumers becoming providers. ’’

6 #AscentLookOut
Introduction

Discover how highly efficient back-office Even though the two seem interchangeable
process elements are being triggered on the surface, IT and digital have their own
by real-time integration with flexible, specific agendas: IT requires a stable and
personalized customer interaction robust, yet flexible, infrastructure to keep
solutions in the new digital world. Through businesses running while digital demands
Operational Excellence the challenges an agile and open business model and
Operational Excellence of complexity are being overcome to internal processes able to respond at digital
allow otherwise disparate entities to speed to real-time, real-world changes.
deliver seamless and dynamic end-to-end
Philippe Miltin capabilities. Learn how organizations are combining
Head of both speeds to deliver cutting-edge
Manufacturing, Retail & Meanwhile the pressure to maintain current services supported by a reliable foundation.
Transportation IT operations and reduce costs while IT is robust, agile and cost effective while
simultaneously transforming the business enabling a truly responsive end-to-end
by embracing new digital opportunities business model.
continues across all industries.
‘‘With companies under pressure to
cut cost and deliver highly tailored
products and services, the connected
factory – where sensors embedded
in every machine are connected to
the plant’s Internet of Things – allows
management to rapidly react to
changing customer demands. ’’

Together with digital security, protection of organizations wanting to evolve in today’s


privacy and personal data and protection digital world.
against cyber-threats are now intrinsic to
every organization – and how these must And with more and more critical processes
be achieved across both real and virtual being digitized, cybercrime is already
worlds. Organizations are increasingly costing business an estimate $1 trillion per
reliant on their customers’ personal data year, but neglecting it will put human lives
Trust & Compliance
and hence demonstrating security of and at risk.
control over the usage of individual’s data
Thierry Siouffi is vital. Find out how the three key elements of
Head of building trust, managing risk, ensuring
Public & Health Objects are more connected and more compliance are enabled in mission and
data is shared, increasing threats to privacy safety critical systems, infrastructure,
and operational security that risk digital payments, fraud detection and more.
business models failing and failing fast.
Trust and Compliance are essential for
‘‘As our growing reliance on data and
increased connectivity brings new
threats to our privacy, infrastructure
and data, together cognitive
computing and high performance
computing are helping defense and
security agencies foresee, understand
and prevent attacks. ’’

Ascent Look Out 7


Market Context
You might be tempted that are driving your market
to dive straight into the and understand the future
specific challenges and opportunities and threats
possibilities that are those megatrends might
relevant to your market. bring.
Before you do, take a few
minutes to learn about how As you do so, consider what
you should reinvent your this new world might mean
business for the digital age, for the CxO.
explore the megatrends

10 Focus On: Reinventing Business in the Digital Age


14 Megatrends: Socio-Cultural, Economic and Political
24 CxO Agenda
Market Context

Focus On: Reinventing Business in the


Digital Age
In previous editions of Ascent Look Out, the ‘Focus On’ section has examined Green IT, Open
Innovation, Cloud Computing, the birth of the Social Organization and Business Mobility. In this
2016+ edition we explore why and how you should reinvent your business for the digital age.

Innovation has been on the corporate becoming flat, financiarization that incubators of the US, Europe and Asia. It
radar for many years, but has reached augments business fluidity, sustainability highlights bubbles of new players drawing
new heights in recent years. The figures constraints exacerbated by demographic billions in venture capital funding and initial
speak for themselves: today’s world is upheavals that are forcing us to invent public offerings (IPOs), hoping to find the
accelerating with innovation lead times new ways to leverage our world's limited unicorns of tomorrow. Too often, however,
declining and Schumpeterian rates of natural resources and, above all, the digital it neglects to see the profound changes
replacement rising. This, in turn, is causing revolution. that are silently rising at the heart of core
the tectonic plates of corporate business to industry players.
shift as never before, forcing corporations After having powered first business and
and organizations to profoundly transform then people, information technologies are Indeed the third digital revolution –
themselves for a new age. now going the last mile: digitizing things. explored in Atos' Ascent Journey 2018
This Copernican-scale revolution will vision, which is powered by our Scientific
transform the way we interact with our Community – is not just about streamlining
Innovation lead time & Schumpeterian
environment for ever, marking a definitive productivity or communication, as the first
disruption: a concurrent-acceleration
step into the digital era. two were. It, at last, combines the digital
The reasons? Multiple revolutions are and physical worlds into a new blended
happening at the same time, each ‘digical’ universe.
reinforcing one another. Hiding below the surface of the
innovation iceberg It’s no secret that the most publicized digital
This current issue of Ascent Look Out To characterize this move, the media companies are now investing in new and
explores them all: accelerated multi-sided repeatedly focuses on the obvious: startups diverse hardware domains – Google in
globalization in a world that is definitively rising to 'change the world' in the multiple robots, Amazon in drones, Apple in cars

Innovation lead time to attain 50 million users

Apps: 0.4 year


Social networks:
3.5 years
Smartphone:
8 years

Internet: 12 years

Mobile phone: 18 years

More than 80% of Fortune 1000


corporations may be replaced
in the next 10 years

Schumpeterian rate of replacement


35% 45% 60% 70% in Fortune 1000, each decade

1973 1983 1993 2003 2013 2023

Source: Brian Solis

10 #AscentLookOut
Focus On

or others. Startups are often portrayed as a nutshell: they should make innovation most complex, yet the most crucial. It’s not
leading the innovators that will redefine part of their cultural mindset – not for something that can be done in ivory R&D
the data economy of tomorrow. Yet, many innovation’s sake, but in a pragmatic way. towers and it's not something you can ask
of the most fundamental disruptions Today's rise of Industry 4.0, smart cities and your customers for the answer to either.
expected in the coming years will arise connected health is an excellent testimony As Henry Ford is credited to have declared
from ‘traditional’ players striving to reinvent of this best practice. in the middle of the last century: “If we
themselves in the midst of Industry 4.0, had asked people what they wanted, they
smart cities, connected stores, smart Management plays a crucial role in making would have said faster horses.”
utilities and more. Under the surface, in the this happen. A recent Harvard Business
silent part of the digital iceberg, the dark Review highlighted that only 13 percent of As history has shown, disruptive innovation
layers of the innovation sea are where the factors stalling growth were external. That actually comes from unexpected places:
most spectacular megatrends of tomorrow means, in 87 percent of cases, successful anywhere from the interface between R&D
are taking shape. transformation in a changing landscape and the consumer to field trials and errors.
falls squarely on management’s shoulders. This is precisely what a connected digital
world favors.
Reinventing the innovation game
Rule number 2: Not just
What are the rules of this secret reinvention What’s more, in today's changing
game? How will companies successfully
innovating, but reinventing
landscape, enterprises must behave ever
transform years of assets and change business models more like investors. They must try and they
corporate culture, leveraging them for the must experiment – and they must ‘fail fast
new world? It's well known that, while incremental
and fail often’.
innovation is good, the greatest success
Through our co-innovation expertise and comes from disruptive innovation – from
After all, retailers, banks, telecom and
vast experience studying innovation best total reinvention.
media companies and others stand at the
practices with our customers, we have forefront of this revolution because they
developed five golden rules: Digital is disruptive. It changes everything:
experiment. To help them do so they have
distance (everyone is just a microsecond
created and nurtured open innovation
Rule number 1: Recognizing away on the Internet); time (everything
ecosystems that are both internal and
is getting closer to real time); complexity
the pace of change (today's computational power can solve
external incubators for partners and even
customers. Within these ecosystems they
more problems); cost (digitization enables
Change is hard. Oddly enough, it’s have created hackathons, APIs, open
zero marginal cost) and we're entering a
especially hard for the companies that have innovation platforms and more…
predictive - or even prescriptive - world.
been the most successful in the past. The
underlying syndrome is well-recognized: These companies have allowed
More importantly, digital opens up new
over-confidence, clutching at outdated themselves to be fully open to change and
opportunities for completely overhauling
models and, above all, inertia. opportunities that have come from the
existing business models. Innovation is no
outside in.
longer just about looking for technological
All too often, enterprises delay recognizing
progress; it’s about considering the
that they need to change. They go through
possibilities it opens up and the potential Rule number 3: Breaking long-
a common process: denial (‘It’s marginal'),
impacts. held beliefs
anger ('Why don't regulations stop that?’),
haggling (‘Which defenses can we build?’) As digital redefines the world, companies
After all, with each customer now just a
and depression (‘Couldn’t we partner or should not be afraid to rupture long-held
swipe away and the winner taking all in
buy someone?’) before final acceptance, industry models: they should not be wary
today’s 'superstar' economy, the search
when it's nearly too late. of evolving from ‘ownership’ to ‘pay-as-
for a business model that guarantees
excellence becomes crucial. Just providing you-go’, from ‘mass market’ to ‘mass
So, what is the secret to avoiding this personalization’ or from ‘customer’ to ‘co-
better service is no longer enough: you
pitfall? The answer lies in constant horizon supplier’, for instance. Though doing that is
must provide the ultimate experience.
scanning and questioning of the status never easy.
Doing more with less is no longer enough:
quo.
you must do better with less. Guaranteed
security is no longer sufficient: you must An open mind is more than just expected:
The early warning signs of change are it’s vital.
build trust. Incremental innovation is no
usually easy to spot, well before they
longer enough: you must completely
become visible on the revenue curve. They A recent American Management
reinvent your business models.
might include customer behavior shifts, Association study determined that only 10
competitiveness declines or talent drying percent of innovation investment at global
In a nutshell: don’t just target that extra 10
up, for instance. Companies need to react companies today is focused on developing
percent – target that extra 10-fold instead!
at this early point in time. new business models. However, 40 percent
Of all the challenges we see – Customer of the 27 companies born in the last
What's required? Companies must quarter century that grew their way into
Experience, Business Reinvention,
constantly question the status quo, the Fortune 500 in the past 10 years did so
Operational Excellence and Trust and
rewarding curiosity and allowing room through business model innovation.
Compliance – Business Reinvention is the
for experimentation and partnerships. In

Ascent Look Out 11


Market Context

Companies that have adopted the open- ownership in a world now moving from Whether your primary focus is on
minded approach that supports breaking product centricity to customer centricity reinventing your business model, fostering
the unquestioned mantra of their industry and ecosystem openness in an open world Customer Experience or growing
are therefore definitive examples of those where ecosystem mastery is key. Operational Excellence, building Trust and
that will succeed. We already see it today ensuring Compliance will be mandatory –
in the energy market with smart grid, Seen as a quadrant, these two axes provide in every case. Furthermore, all four of these
emerging in the transport industry with the businesses with a choice of four major challenges must be met simultaneously
collaborative economy and in the service categories to position themselves in for the for digital success, but some have more
industry with automation replacing labor. digital age. strategic weight than others depending on
the position you target.
But we're just at the beginning. If long- Which business are you in today? Where
held beliefs are broken we may, in fact, do you want to be tomorrow? Your choices So, your choice of position will determine
find tomorrow’s landscape turns out to be may be shaped, yet your competitive which of the challenges you have to face
even stranger than the one we’re currently strategy and focus will vary significantly, is most strategic alongside which strategic
expecting. depending on the choice you make. investments you must make.

Rule number 4: Choosing the It's hardly surprising that today's most Rule number 5: Constantly
right positioning attractive position – the one strived for adapting with analytics and
by all leaders – is the ecosystem driver, Artificial Intelligence solutions
Ultimately, digital transforms value chains which serves as the platform for entire
and creates novel ecosystems. It's therefore ecosystems. This position requires strong Last, but not least, like never before in
essential that you understand how best Business Reinvention strategies for both economic history, digital has led us to a
to position your organization in an ever- acquiring customers and attracting world where competitive positions may
changing digital landscape. innovation partners. move at any time, where today's winner
could be displaced within just a few
So, which are the best paths to success? But others models may also be of months and where tomorrow’s innovators
interest too. You may decide to remain may themselves be replaced even more
The future is never fixed. It's difficult to a silo supplier and continue play the rapidly. In a nutshell: we’re entering an age
give a definitive view in a new and yet commodity or niche value game. Or you of perpetual reinvention.
undiscovered digital country that pioneers might successfully position yourself as a
are still exploring acre after acre. The map modular producer and primarily play the Companies must play a continual game
is perpetually changing. Operational Excellence game. Or perhaps of internal R&D and startup acquisitions
you would prefer to choose the omni- just to maintain their pace in a fast-moving
Yet, two dimensions stand out right channel game, focusing on Customer world. We see it every day with the
now from this terra incognita: customer Experience. traditional industry players as much as

Four positioning strategies for the digital age

OMNI-CHANNEL BUSINESS ECOSYSTEM DRIVER


- Mastering an integrated value - Providing a branded platform and
Customer mastery

chain and customer relationships fostering third party innovation

SILO SUPPLIER MODULAR PRODUCER


- Providing focused offerings, - Setting the industry reference
yet dependent upon others for selling them point while adapting to the ecosystem

Ecosystems mastery
Source: adapted from MIT Sloan School of Management,
"Four business models for the digital era"

12 #AscentLookOut
Focus On

with the technology giants. Remember the Analytics is the missing link that will enable Atos has seen this trend for years. It should
billions spent on the Instagram, WhatsApp this constant reinvention. come as no surprise that the Atos Scientific
and Nest acquisitions? Community's Ascent Journey 2018 Vision
The digital world has a one specific feature was centered on the analytics life cycle and
So, how do you succeed in this unstable that is unique in history: it's a fully quantified that Thierry Breton, Atos' Chairman and
world? world. By connecting people, process and Chief Executive Officer, predicted that "The
things, it can measure customer feedback, 21st century will be the century of data, the
The answer lies in maintaining a constant process states and things’ behaviors – at new resource to boost the economy, as
focus on two strategic axes: any time. finance was in the previous century."

-- Perpetually reconnecting with end The advantage? It’s not only tracking The future may be uncertain, but one thing
customers and fully rearticulating the everything simply to deliver a better is clear: analytics, insight technologies
value chain around their expectations Customer Experience and improve and robotics will be among the core
through customer-focused strategic Operational Excellence, but also to identify technologies that will make the difference,
thinking. the weak signals that announce emerging as our CxO Agenda and Tech Trends radar
trends and opportunities for Business show.
-- Constantly generating additional value by Reinvention. In essence, we’re entering a
making others work for you, leveraging data-driven world where the winners will Welcome to the world of reinvention
not only social and peer-to-peer from be those who will succeed in turning this intelligence!
end-users, but also supporting the data into the intelligence that allows them
development of partner ecosystems to constantly adapt and reinvent their
through collaborative innovation business models.
platforms.

Ascent Look Out 13


Market Context

Megatrends: Socio-Cultural,
Economic and Political
Ascent Look Out begins our horizon scanning process with an analysis of the megatrends that will
advance the opportunities and threats in each of your markets. This section describes each of these
socio-cultural, economic and political waves, commenting on its trajectory and how it might impact
the transformation challenges you're facing.

SOCIO-
CULT
URA
L
Neo-Luddites Contemplating the
Singularity
Generation Z

Growing Global Middle Class EC Primary impact


ON domain for trend
Demographic Evolutions Secondary impact
domain for trend
OM
IC

Growing Global Middle Class


Power of Communities

Liquid Corporations

Secular Stagnation
vs Creative Destruction

Resource Security
POL

Migration Return of the Blocs


ITICA

Global Market Volatility


Uberization
and the Uberization and
Sharing
L

the Sharing Economy Power of Communities


Economy
Addressing Global Resource Security
Climate Change
Migration

Addressing Global
Climate Change

Burning Maturing Emerging


© Atos 2016. All rights reserved.

14 #AscentLookOut
Megatrends

Addressing Global Climate Change areas will only get wetter and arid areas will of futurists who have nurtured 20th century
Concept become drier. Precipitation will decline in myths, notably through science fiction and
Evidence from the US space agency, NASA, the Middle East and Northern Africa as well prospective thinking.
shows a current warming trend across as Western Central Asia, Southern Europe,
our planet: sea levels are rising, surface Southern Africa and the US Southwest. While very prospective and promoted by
temperatures continue to increase despite Arctic resources may become more a small number of futurist thinkers, these
solar output decline, oceans are warming, accessible. ideas began to get concrete traction in the
ice sheets are shrinking, glaciers are 1990s. At that time pioneering thinkers,
retreating, and extreme weather events are Impact such as Ray Kurzweil (now CTO of Google),
becoming more common. In fact, all 10 of Climate change and public perception predicted that the technological singularity
our planet's warmest years occurred within of the causes have raised corporate would be reached around 2045.
the past 12 years. According to NASA, most responsibility and ethical operations on the
of the current warming trend is very likely agenda of corporate decision-makers, both These ideas have spread in recent
human-induced and proceeding at a rate public and private. This should accelerate years, with concrete advances in
that is unprecedented in the past 1,300 sustainability and energy transition nanotechnologies, cognitive computing,
years. initiatives. Digital initiatives such as smart gene therapy, robotics and life science for
cities, smart grids and electric cars will military (augmented soldier), healthcare
Trajectory play a major role in bringing innovative (prolonged life and cure of genetic
Adopted in Kyoto, Japan, on 11 December solutions and processes. diseases) and business applications.
1997 and entered into force on 16 Beyond 2020, exascale, and later quantum
February 2005, the Kyoto Protocol is an Faced, nevertheless, with the potential for technologies, should begin to surpass
international treaty that commits its 192 more extreme weather phenomena across the power of a human brain, opening
state parties to reduce the greenhouse the globe as a result of climate change, up potentially revolutionary applications.
gases emissions that are believed to be protecting assets from floods, hurricanes, Pioneering companies, including Google
the root of the human-induced climate blizzards and other disasters becomes and multiple start-ups, have already begun
change. In December 2012 the 18th United even more critical. Major investment to heavily invest in disruptive technologies
Nations (UN) climate summit reached an funds, such as BlackRock, consider climate with the long term goal of ‘solving death’ –
agreement to extend the Kyoto Protocol, change risk to be an investment issue. though this ambition far exceeds current
which was due to expire at the end of scientific capabilities.
2012, to 2020 with a stated goal of keeping Companies will need to ensure they have
climate change below two degrees Celsius. disaster recovery plans in place that both Meanwhile, a growing number of scientists
ensure data can be quickly and easily and industry leaders – most notably Bill
The 2015 United Nations Climate Change recovered in the event of a disaster and Gates, Stephen Hawking and Tesla Motor’s
Conference, COP21, negotiated the Paris ensure members of staff can continue to CEO and co-founder of PayPal Elon Musk –
Agreement, a global agreement on the operate from alternative locations. are raising concerns around the technical
reduction of climate change. Key elements singularity. Concerned about machines
included: endeavoring to limit global Contemplating the Singularity being able to think for themselves and
temperatures to one and a half degrees Concept potentially becoming more powerful than
Celsius above pre-industrial times; reaching With the pace of technological innovation humans, they are amongst the thousands
zero net greenhouse gases emissions accelerating, especially Artificial Intelligence, of people who have signed an open letter
between 2050 and 2100; and revisiting many expect that we will one day reach the proposing proper safeguards be put
global goals every five years beginning Technological Singularity – the point where in place to research and develop such
2023. machines would be more intelligent than intelligence without humans losing control.
humans. Furthermore, machines would be
Recent legislation from the European capable of recursive self-improvement, self- Impact
Commission (EC) has reasserted evolving their intelligence in an exponential Singularity and Transhumanism are at this
environmental issues on the economic fashion – unlike humans, bounded by slow point purely prospective thinking, even if
agenda. Its 20-20-20 targets include a 20 biological evolution. the technology community is supporting
percent reduction in European Union (EU) active research on disruptive artificial
greenhouse gas emissions; 20 percent of This concept is often associated with intelligence and life sciences by some
EU energy consumption from renewables; 'transhumanism' (or 'Posthumanism'), corporations and think tanks such as the
and a 20 percent improvement in the EU's a loose set of theories that foresee Singularity University.
energy efficiency by 2020. Its 2030 climate technology as a means to profoundly
and energy framework, meanwhile, targets enhance human intellectual, physical and If real progresses are to be made, this may
40 percent, 27 percent and 27 percent psychological capacities well beyond their lead to extreme opportunities. Research
improvements by 2030. The 2050 targets natural condition, ultimately leading to may also lead to the new social, medical
are currently being looked into. augmented or even ‘post humans’. and security risks highlighted by decades
of apocalyptic Sci-Fi culture. Many tech
Meanwhile, the US National Intelligence Trajectory leaders express concerns about the rapid
Center (NIC) has highlighted that climate Linked to the ideas of science and progress rise of the artificial intelligence that may
change will worsen the availability of some that have emerged since the 19th century, solve all our problems or, equally, threaten
critical natural resources. As the severity of human augmentation and transformation us within the coming decades.
existing weather patterns intensifies, wet through technology is a long-term dream

Ascent Look Out 15


Market Context

Corporations should follow these research megacities growing in parallel. Meanwhile, new business models will be
trends since they may profoundly Ultimately, growth may slow down even in crucial to driving inclusive growth initiatives
transform our world in the coming emerging countries, leading to stabilization in emergent economies such as in Africa,
decades. They must also show caution and then, potentially, a ‘demographic winter’ the Middle-East and India where the
around the business, legal, social and with the global population plateauing population explosion may create social
ethical implications and risks. somewhere above 10 billion people, but this unrest if resources and employment don't
is still subject to estimation. Sustainability at catch up.
Demographic Evolutions this level of population remains a concern
Concept for some prospectivists. Social welfare and health systems, on the
The world is in the midst of four key other hand, are becoming increasingly
demographic trends: a rapidly growing In 2015, the number of people aged 60 and strained as the relative size of the working
population; an aging population in the West over was 901 million – around 12 percent population reduces. Today's third digital
and increasingly in developing countries; a of the world’s population. This number is revolution, with its rise of automation
shrinking number of young societies and expected to grow to 1.4 billion by 2030 and and robotics, will help ensure services in
states; and growing urbanization. 2.1 billion by 2050. Currently, Europe has diverse domains such as smart healthcare
the greatest percentage of its population and smart cities remain sustainable as the
Trajectory aged 60 or over (24 percent) but all major population transforms.
The world’s population continues to areas of the world, except Africa, are
grow rapidly: the UN anticipates a global projected to have nearly a quarter or more Generation Z
population of 8.5 billion by 2030 and 9.7 of their populations aged 60 or over by Concept
billion by 2050, up from 7.3 billion as of 2050. Generation Z, generally acknowledged to
mid-2015. Overall, the UN expects Africa’s be those born after 1995, will come of age
population to be the fastest-growing, up In 2015, the median age of the world’s in the 2020s. Also called "echo boomers", as
from 1.2 billion in 2015 to 1.7 billion in 2030 population was just under 30, but the they echo the silent generation who were
and 2.5 billion in 2050. But it sees European UN projects this to increase to around 36 born just before the Second World War,
populations declining from 738 million in by 2050 and 42 by 2100. Median age is Generation Z was raised during the recent
2015 to 734 million in 2030 and 707 million lowest in regions with low fertility: it was economic downturn.
in 2050. 42 in Europe in 2015, where it's expect to
reach 46 in 2050 and 47 in 2100. In less Emotive, yet lucid, and in search of
According to NIC, 95 percent of recent developed region, median age was 20 in stability alongside flexibility, they were
increases have been in developing 2015 and projected to reach 26 by 2050 brought into a fast-changing, uncertain
countries, nearly all in rapidly expanding and 36 years by 2100. and economically depressed world. As
urban areas. The UN anticipates the teenagers, they saw their parents worry
proportion of people living in cities will Impact about keeping their jobs, making ends
grow, from 54 percent today to around Services must be aligned with aging meet and keeping a roof over their heads.
66 percent in 2050, with the number of populations in developed countries. Their focus is inherently global, with mass

16 #AscentLookOut
Megatrends

media bringing growing global issues quantify our individual performance – our task force of top 20 economies) to have
(including unemployment, climate change, health, our fitness, our finances and more continued to grow from $25 trillion in 2008
terrorism and humanitarian) to their regular – a clearer picture of our digital selves is to $75 trillion in 2013. This equates to 25
attention. emerging, based on our consumption of percent of worldwide financial assets, half
digital services. of the traditional banking system and is
Full digital natives, they have been equivalent to the global gross domestic
surrounded by social media, mobile Impact product (GDP), raising concerns about
applications, personalized online services Each generation tends to mark its epoch possible systemic effects of a next crisis.
and Cloud Computing since childhood. in opposition to the previous one, as
To them, virtual reality, nanocomputing, consumers, entrepreneurs and employees. Volatility has also increased with the
3D printing, driverless cars and other As consumers, Generation Z are marked rise of High-Frequency Trading (HFT),
innovations are simply the next step by a "what I want, when I want" culture, in which developed after the US Securities
forward. an epoch focusing on access rather than and Exchange Commission authorized
property, services rather than products and electronic exchanges in 1998. Automated,
Trajectory where alternatives are just a swipe away. algorithm-driven and enabled by
According to various models including the technology, HFT is executed in milli-, or
Strauss-Howe theory, generations evolved Meanwhile, employers looking to retain even micro-, seconds. Consultancy Tabb
through the recent modern history in four- Generation Z talents should offer this lucid Group estimated HFT to make up 56
phase cycles. The first phase of the current generation, whose blind fidelity is not a percent of equity trades by value in the US
cycle is characterized by the baby boomer given, flexibility and fulfillment. Meeting and 38 percent in Europe in 2010.
generation (1945-1960) "prophets" who high expectations and understanding how
were moved by freedom and individualism, to leverage empathy to build trust will be At that time, potential volatility due to HFT
initiating the protest movements of key. As consumers, they're less susceptible orders had already been experienced on
the 1960s. These are followed by the to manipulation. Organizations that fall several occasions with some equities losing
pragmatic, adventurous and sometimes below their standards will simply find their most of their value in a few minutes as a
cynical Generation X (1961-1981) "nomads", potential Generation Z customers look side effect of the concurrent algorithmic
characterized by the financiarization of elsewhere. chain reaction. Even if it was corrected
the 1980s, which saw financial institutions afterwards by human operators, this
and markets increase in size and influence. Global Market Volatility showed its potential to create or increase
And then the more disengaged Generation Concept market panic. Today, HFT is estimated to
Y (born 1982-1995) "heroes" who were Market volatility refers to the swings from account for 75 percent of all equity order
raised during the early phase of the boom to bust. Globalization, securitization volumes in the US, 40 percent in Europe
digital revolution and the beginning of the (the process of transforming illiquid and 10 percent in Asia, with potential for
economic crises in the Western world. assets into a security), private and public rapid growth.
debt along with the rise of supporting
Over-protected as children, Generation digital technologies have all contributed Together globalization and financiarization
Z "artists" tend to be risk-averse. They significantly to the fast financial growth of – where financial institutions and markets
distinguish themselves from the preceding these last decades. This, in turn, contributed increase in size and influence – mean
Generation Y by their increased desire for to economic growth, but also increased we now live in an uncertain world where
security and stability in a fast-changing market volatility risks. volatility risks are high. The US National
world where social and professional Intelligence Council (NIC) believes the
positions are progressively less stable. As Over recent years we have seen massive international economy will continue to
such, they tend to be conformists, since swings in the stock markets, going up and be characterized by various regional and
conformism provides a more secure path down in magnitudes that seemed hardly national economies moving at significantly
to success. thinkable before. These risks has been different speeds, exacerbating global
increased by the rise of High-Frequency imbalances and straining governments and
However, their search for security Trading, massive quantitative easing the international system. The key question
is combined with a strong need for policies from central banks and the rise of in their mind is whether the divergences
personal fulfilment and independence. shadow banking equivalent to global gross and increased volatility will result in a global
In an economy marked by the rise of domestic product (GDP). breakdown and collapse or whether the
freelancers, it’s not surprising that they development of multiple growth centers
value their careers, seeking security, Trajectory will lead to resiliency.
contentment and passion. They might Investment banks, mortgage companies,
have multiple employments, sometimes hedge funds and other non-bank financial Impact
in multiple countries, to ensure they won't intermediaries saw their finance activities Geopolitical tensions, potential social crises
find themselves in a risky position in an that were not subject to regulation – in high-demographic emerging countries,
economic bust. "shadow banking" – grow dramatically post private or sovereign debt crises, along
2000, playing a significant role in the 2008 with the impact of disruptive technology
When it comes to digital, it's not just financial crisis. Despite regulations being advances, could lead to new financial black
Generation Z whose lives are influenced enforced across the banking sector post swans. Governments and corporations
by today’s increasingly connected crisis, shadow banking is estimated by alike must therefore leverage prospects for
and monitored world. With emerging the Financial Stability Board (a regulatory growth, but be prepared for an uncertain
technologies allowing us to permanently and volatile world. They will need to

Ascent Look Out 17


Market Context

be more flexible and forward-looking, trillion – is now held by just one percent of percent higher than in 2015. It projects
reinventing their business models, building the population. Despite only accounting the number of millionaires to grow to
ones that are better able to resist that for less than one percent of the population, 49.3 million adults. In 2020, emerging
volatility. millionaires own around 45 percent of markets will likely account for 9.1 percent
global wealth. The geographical imbalance of millionaire wealth, one percent above
At the same time real-time stock market is particularly evident in North America and current levels.
analysis will help them become more agile Europe, which together contain 18 percent
in today’s fast-moving world. Enabled by of the global adult population, but account Impact
advanced analytics and high performance for 67 percent of total household wealth. Reduction of extreme poverty opens new
computing, this analysis will help them At the other end of the scale, in Africa and opportunities for low-cost products and
identify and react to stock market India the population share exceeds the services in emerging economies. Targeting
fluctuations more swiftly. wealth share by a factor of more than ten. new mass markets (such as the unbanked)
could prove very profitable. The billions of
Growing Global Middle Class Trajectory newly affluent middle-class households,
Concept OECD estimates that the world’s middle with their increased spending power, are
The World Bank hopes to see an "end class will swell from two billion to almost also reshaping global markets, offering
to poverty" by around 2030. This shift five billion by 2030, with growth coming renewed opportunity for growth in Asia,
encompasses two strong trends: a from developing countries while the middle Middle-East, Africa and Latin America.
significant rise of the middle class in class is squeezed in developed countries. Enhanced efficiency and improved
emerging markets accompanied by a productivity will be critical to offering the
significant drop in poverty, which has With increased wealth comes increased products and services they require at a
fallen to around 10 percent of the world spending power. Today, people in relevant price.
population. The Organization for Economic developing countries make up a greater
Co-operation and Development (OECD) percent of the world’s consumer spending However, the shrinking Western middle
defines middle class as those making than ever before, with that trend set to class means the share of adults living in
between $10 and $100 a day, adjusted for continue to rise. Spending by middle-class both upper- and lower-income households
the purchasing power of each currency, Asian consumers, for example, could is rising in developed countries. This
while the World Bank defines the threshold rise nine percent a year through 2030, requires suppliers to change their classical
under which an individual is considered to according to the Asian Development Bank. product segmentation to focus on upper
be living in poverty as $1.90 or less a day, and low-cost segments, at the expense
taking into account country-level data on Conversely, the spending power of the of mid-range solutions – a phenomenon
living standards. shrinking and struggling Western middle known as the "consumer hourglass
classes has plateaued, expected to only economy". This also opens opportunities
Counteracting this is the corresponding rise slightly over the next couple of for reinventing business with new models,
relative loss of purchasing power of the decades. This is due to a complexity of such as "as a service" or the "sharing
middle class in Western countries, as a factors, including aging populations and economy", targeting this changing balance
consequence of global rebalancing. This is an increase in single-parent households of wealth.
leading to social unrest in the West, made alongside automation, offshoring, and
worse by the widening gap between rich competition from workers of low-cost Liquid Corporations
and poor. countries. Concept
Liquid corporations take the concept of
This widening gap has been confirmed by Credit Suisse Global expects wealth growth "boundaryless" organizations popularized in
Credit Suisse Global, estimating that half to pick up by the end of the decade, the 1990s to a new level. In a volatile world
of global wealth – amounting to $250.1 reaching $345 trillion by mid-2020, 38 were billions of connected customers,

18 #AscentLookOut
Megatrends

things, partner, competitors and regulation moving to Europe, Northern America and Technology can also pay a key part.
bodies evolve in real time, massive use Oceania for almost half a century, fleeing Efficient and effective processes are vital for
of outsourcing, crowdsourcing and open conflict or seeking better education and eliminating uncertainty and ensuring new
innovation strategies enable organizations opportunities. arrivals are quickly settled into their new
to dynamically adapt to new market home.
realities. Growth prospects in the US and in Europe,
where workforce levels are declining, will Neo-Luddites
Trajectory depend on these immigration flows, but Concept
The increased pace of innovation and immigration may also lead to multi-cultural The rise of technology creates expectations
chaotic markets changes are putting tensions. and fears. In the 19th century, a social
immense pressure on corporation movement of British artisans, the Luddites,
strategies: 45 percent of Fortune 1000 Trajectory violently opposed technological advances
companies were replaced between 1983 According to the UN, between 1950 and in the textile industry. Considering their
and 1993, rising to 70 percent between 2015, the major areas of Europe, Northern skills as property to be protected, they
2003 and 2013. America and Oceania have been overall net argued that machines undermined the
receivers of international migrants, while labor skills that were a crucial part of the
While creative destruction is accelerating, Africa, Asia and Latin and the Caribbean economy.
monolithic organizations inherited from have been net senders.
the past are increasingly evolving toward Similar new technophobic groups are
complex, open ecosystems. Enabled From 2000 to 2015, high-income countries emerging today. These "neo-luddites"
by digital, they take best practices from received an average of 4.1 million net believe modern large corporations with
start-ups, the technology giants and open migrants annually from lower- and their modern technologies threaten their
communities. middle-income countries. But migration is way of life and their livelihoods. As such,
accelerating, particularly towards Europe they have developed radical resistance to
Focused on customer requirements, with conflicts in the Middle East and very technology.
procurement, operations and delivery strong growth in Africa driving people out
are dynamically executed across an of their homelands. Furthermore, some Their "neo-luddism" is mostly founded on
open network of suppliers and partners, prospects foresee unpredictable spikes in loose, radical anti-system movements.
blurring traditional silos between providers, migration driven by climate change-related It covers a wide variety of beliefs: from
operations and customers. The rise of events. groups preaching economic decrease and
fabless corporations, outsourcing, BPO, the return to the soil to technophobic groups
gig economy and crowdsourcing is a clear The UN expects high-income countries (including anti-nuclear, anti-GM and anti-
sign of this happening. Some estimate that, to receive 91 million immigrants between nanotechnologies).
by 2020, 40 percent of US employees may 2020 and 2050, while total births in these
be freelancers, for instance. countries may exceed deaths by 20 million. Trajectory
Thus, net migration may account for 82 Neo-luddites are currently a very small
Impact per cent of population growth in the high- minority. However, the coming hyper-
Ultimately, a liquid organization is not income countries. connected world that may lead to threats
a stable, fixed structure; it federates an on privacy and the rise of automation and
ecosystem that can adapt to market As aging high-income countries struggle robotics that may pose a significant threat
changes in near real time. Organizations with fewer people of working age, the to employment may drive an increase
should take advantage of these trends vacuum may be filled by immigrants from in their numbers. Some estimate that as
toward a networked economy to gain low-income countries. These opportunities many as 60 percent of current jobs may
agility and flexibility. are balanced by risks that call for be automated by 2022, with extreme
accelerated inclusive growth and education scenarios pointing to a risk of 90 percent
A dynamic ecosystem of providers initiatives. unemployment by 2030.
spawned across suppliers and continents In the previous industrial revolutions,
may function at the expense of Impact Schumpeter’s "gale of creative destruction"
accountability. This increases the risk Transnational migration flows shape has always succeeded in replacing
of compliance issues, business failures societies’ character. Households in the West extinguished jobs with new ones. The 19th
and loss of customer trust as such, are increasingly multi-ethnic. However, century Luddite artisan movement, for
organizations wanting to implement ‘liquid co-existence of ethnically different instance, progressively vanished with the
corporation principles’ will need to set up populations might lead to nationalistic rise of the new industrial economy and its
strong governance processes. and ‘communalistic’ (where people see employment opportunities.
themselves as part of their ethnic, cultural
Migration: Sedentary versus Nomadic or religious group rather than part of the However, the speed and scale of the
Concept wider community) tendencies. Countries current transition is complicated to project.
Economic and demographic inequalities must decide how they should react to Nevertheless, it creates the risk of revolt
between low- and high-income countries increasing migration. Tighter regulation and again the high rises in unemployment and
have driven migration patterns around border controls may be needed. radical inequalities of wealth that are usual
the globe for many years. People from in massive destructive creation eras such
Asia, Africa and Latin America have been With large migrations comes the need as the one we are experiencing today with
for strong social and education initiatives. the third digital revolution.
Ascent Look Out 19
Market Context

Impact collective intelligence, building networks in the industry, buildings and transport
The economic impact of today's third and organizing their community activities sectors; progressively reducing the use
digital revolution creates both opportunities by themselves. There's increased of the least-efficient coal-fired power
and social risks that must be carefully awareness around and participation plants and banning their construction;
managed at international, state and even in charities and non-governmental increasing investment in renewable energy
corporation social responsibility level. organizations (NGOs) thanks to social technologies in the power sector from
Governments and corporations alike networks. $270 billion in 2014 to $400 billion in 2030;
should concentrate on inclusive growth gradual phasing out of fossil-fuel subsidies
initiatives to increase jobs and social care, Co-operation is also an important behavior to end-users by 2030; reducing methane
helping build the trust amongst the general trend for the more digitally-connected emissions in oil and gas production.
population that is crucial to mitigating any generations Y and Z, as are connections
risk. At the same time, they must protect and relationships (community), social or Impact
the privacy of individual’s data while personal justice and authenticity. These Proactive efforts will be required by
increasing transparency and inclusivity, for groups tend to be more socially aware than policymakers in combination with private
instance. their predecessors. sector partners to avoid a future dominated
by natural resource scarcity. Strong
Technology, on the other hand, provides Impact technology innovation will also play a vital
many opportunities to not only promote Public and private sector organizations role in optimizing resources in the next
an inclusive society, but also enable must put the power of communities at 15 to 20 years. This will not only include
sustainable growth that is good for the the heart of their digital strategies to build genetically modified crops, precision
environment. Some technologies ensure trust with the people they serve. It could agriculture, water irrigation techniques,
physically disadvantages individuals have be through the facilitation of peer-to-peer solar energy, advanced bio-based fuels and
access to information and services, for and social exchanges through or around enhanced oil and natural gas extraction via
instance; others optimize our use of natural their services or products. It could also fracturing; but also the smart technologies
resources. be through open innovation serving as a that will help optimize resource (oil, gas
platform to let communities form and grow, and water) usage through simulation and
Power of Communities ultimately extending solutions and services analytics.
Concept thanks to social and third party dynamics.
Increased personal and social mobility Either way, they must not only listen, but Furthermore, simulation and analytics
decreases the likelihood of multiple also react and contribute, leveraging the will also be core to improving resource
generations of the same family living in voice of the community to steer them in a (oil and gas) exploration and developing
the same geographical area. It also leads constructive direction. the next generation of sustainable
to a rise in single person households, with technologies that include genetic
young professionals, in particular, more Resource Security (Energy, Water, Food) engineering, nanotechnologies, nuclear
likely to move around and live alone, Concept fusion and others. In addition, new services
away from their traditional (family) and The world’s resources are under ever- will not only give the consumer a better
geographical networks. increasing strain owing to an increase in understanding of how they're using
the global population and the consumption resources, but companies can also leverage
As a consequence of this, and possibly patterns of an expanding middle class. This them to encourage good consumer
as a backlash against the trend towards strain is only being exacerbated by climate behaviors aimed at reducing the strain on
individualization, new ways of community change and environmental changes due to those resources.
building are emerging. Much of this that population growth, urbanization and
activity occurs on the internet. This human related activities. Return of the Blocs
digital connectivity is leading to a rise in Concept
‘"communalism" (where people seems Trajectory Throughout history, wars and economic
themselves as part of their ethnic, religious The US National Intelligence Center (NIC) depressions (or recessions) have led to
or cultural group rather than the wider projects that demand for food, water and increases in protectionism, while peace
community) and social activism driven by energy will grow by approximately 35, 40, and prosperity have tended to encourage
the power of communities. and 50 percent respectively by 2030. free trade. Current economic geopolitical
tensions may mark a return of trade blocs:
Trajectory The energy sector, in particular, is shifting to trade alliances across countries that have
In the industrialized nations, the apparent a low-carbon path that supports economic common ambitions. Furthermore, the
loss of physical communities is seen as a growth and energy access. In line with the current currency war taking place amongst
key cause of social disintegration and of the Paris Agreement drafted at the 2015 United the central banks is significantly increasing
emergence of antisocial behavior. In our Nations Climate Change Conference, COP risks for cross-border trade and investment.
virtual worlds, communities are growing. 21, the International Energy Agency has
Worldwide, there are over 1.49 billion underlined a number of measures that Trajectory
monthly active Facebook users. could lead to a peak in global energy- The passage of GATT (General Agreement
related greenhouse gas emissions while on Tariffs and Trade), from the post Second
Focus is shifting away from the individual supporting economic growth and providing World War era until the early 1990s, saw
toward the community and common energy to more people. These measures many protectionist trade barriers fall. The
welfare. People are making use of their include: increasing energy efficiency fall of the Soviet Union in the early 1990s

20 #AscentLookOut
Megatrends

led to hope for the return of free trade. Secular Stagnation (versus Creative However, based on long-term economic
In 1995, such trade protection was Destruction) cycles, economists inspired by Kondratieff
formalized with the creation of the World Concept and Schumpeter theories also recognize
Trade Organization (WTO). Since then, Global economic activity remained recent deflation, bankruptcies, banking
numerous free exchanges zones have been subdued in 2015, according to the crisis, credit crisis and more as the "winter"
created or are being negotiated. Examples International Monetary Fund (IMF). Growth season of the 1970-2010 economic cycle
include the North American Free Trade in emerging markets and developing powered by the first generations of
Agreement (NAFTA), a trilateral rules-based economies declined for the fifth information technologies.
trade bloc in North America involving consecutive year, while a modest recovery
Canada, the United States and Mexico; continued in advanced economies. While Ongoing innovations created by the
the Trans-Pacific Partnership (TPP) that some believe this stagnation is simply a third digital revolution, combining digital
makes it easier for American companies conjectural hangover effect of the 2001 with nanotechnologies, biotechnologies
to sell Made-In-America products across 11 and 2008 crises, others warn economies and cognitive sciences, may provide a
other countries; and the Transatlantic Free risk becoming trapped in an extended significant contribution to solving this
Trade Area (TAFTA) proposal for creating and structural period of slow growth in issue, possibly leading to a new growth
a transatlantic free trade area covering productivity, income and job creation. era culminating around 2030. In the short
Europe and North America. term, the next wave of IT/OT convergence,
Prospects of accelerated innovation, along with Industry 4.0, smart cities and
The return of conflicts and geopolitical however, may sustain the alternative other technology-enabled transformations,
tensions with Russia, China, Latin America scenario of a new era of growth, similar to could rapidly bring a whole new boost to
and Islamic countries over recent years that which followed the invention of steam productivity and the economy. Together
has seen numerous import and export and electricity. The rise of the Internet of they could help answer two major
restrictions put in place. These restrictions Things (IoT) and Industry 4.0, along with opportunities on the horizon: the silver
work by means of tariffs, subsidies, import nanotechnologies, biotechnologies and economy in the West and the growing
quotas or handicaps placed on imports. cognitive sciences, may bring the boost demand for low-cost solutions and services
They can also include tariffs being imposed economies need to avoid the pessimistic from emerging countries' popular and
on products not produced in a sustainable scenario. middle classes.
fashion, or as stimulus packages for the
development of clean technologies. Trajectory Impact
The economic stagnation of the past Whatever the causes, low growth prospects
Impact decades is attributed by economists to will create concerns in the short term.
The return to the blocs may touch IT in various factors. They notably include More than ever, corporations must prepare
particular since IT is seen as an increasingly demographics (aging population in for a sluggish and competitive world.
strategic sector, touching all verticals. In this developed countries) and macro-economic Leveraging innovation driven by new
domain, there's a rising will from several issues (including an excess of savings over digital opportunities is not only a matter
large countries and unions (including investment, debt overhang and supply-side of competitive survival; it’s critical for any
China, Europe and Brazil) to develop headwinds). A slowdown in technology company wanting to position itself at the
their own industries, especially in high- innovation is also mentioned among the core of future growth opportunities.
performance computing, cloud, software key factors, with recent years’ immaterial With digital automation and robotics
and security. The PRISM case has notably innovation creating less nominal growth decoupling productivity growth with
driven many countries to grow regulations and productivity improvement than in jobs and income, the possible social
to protect technologies and data better previous decades. impact of automation must, however, be
through local trusted suppliers and local carefully watched for by policy makers and
data management. corporations alike. After all, the success

Ascent Look Out 21


Market Context

of an economy depends as much on competitive way of living, leaving many


demand as it does on supply. Building sellers making less than the minimum
social trust through inclusive growth and wage.
work reinvention, in a digital world where
40 percent of jobs could be automated by Impact
2020 and where humans will have to work The sharing economy model has been
side by side with robots, will be one of the praised for its capacity to create a good
major challenges for the years to come. user experience and reduce costs though
digital disintermediation, with its dynamic
Uberization and the Sharing Economy supply and pricing lowering the high fixed
Concept and marginal cost of traditional businesses.
Amongst the many new business models Uber, in particular, is a wake-up call to all
created by the digital revolution, the industries on the importance of customer
sharing economy has become the symbol centricity and platform model thinking in
of disruption. It's sometimes evoked their digital transformation strategy.
through the name of one of its major
players, Uber, to signify the rise in adoption Being "uberized" is now among the core
of the business model embraced by that risks perceived by many organizations with
company – hence uberization. the rise of digital. Nevertheless, the sharing
economy is just one of the numerous
Also referred to as the "collaborative", "peer- business models enabled by digital. While
to-peer" or "access" economy, the sharing it has impressed minds by its capacity to
economy model sees privately owned completely transform and reinvent whole
or managed goods or services shared or ecosystems of buyers and sellers – and
rented out via peer-to-peer marketplaces. It by the social, economic and regulatory
enables anyone to easily become their own implications of these changes – corporates
entrepreneur, monetizing their assets and would be wise to also evaluate other novel
their labor. possibilities.

Trajectory However, the system’s future cannot


In just five years, Uber has grown from be anticipated until it's structured and
a small start-up to a company large governed. In the meantime, companies
enough to threaten the whole taxi and should identify the relevant aspects of their
transport industry in more than 300 corporate strategy – especially risk hedging.
large cities across the globe. Over that
period, its valuation has also grown – to an
astounding value of $50 billion.

The economic downturn led to customers


seeking the best price while becoming
eager to leverage their own goods and
services for additional revenue. Well
beyond Uber, this kind of model is also
being developed across diverse sectors,
by for-profit, non-profit, barter and co-
operative structures, where corporations,
governments and individuals all actively
participate as buyers, sellers, lenders or
borrowers. Examples can be found in
hospitality (Airbnb), finance (Kickstarter),
logistics (Cargomatic) and many other
markets.

The sharing economy model has been


criticized for its disruptive social effect on
whole industries and for the high share
(20 to 30 percent commission) that
marketplaces take from the revenue. While
the sharing economy tends to attract
not only amateurs but also professional
operators, it's also reputed to create
an unpredictable, unsecure and very

22 #AscentLookOut
Megatrends

Megatrends: Socio-Cultural, Economic and Political

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Addressing Global
Climate Change Neo-Luddites

Demographic Evolutions Power of Communities

Generation Z Resource Security

Global Market Volatility Return of the Blocs

Growing Global Middle Secular Stagnation vs


Class Creative Destruction

Contemplating the
Liquid Corporations
singularity

Uberization and the


Migration
Sharing Economy

Ascent Look Out 23


Market Context

CxO Agenda

As you start your digital journey, understanding how your challenges might evolve will help you
to be more resilient, more prepared for the uncertainties that lie ahead. Equally importantly, it will
sharpen your understanding of how technology can help you overcome the obstacles and take
advantage of the possibilities along the way.

Key Market Challenges


A few years from now and many firms will accessible in whatever format the customer and the emergence of agile new digital
have made great strides along their digital wants, when the customer needs it. players together now threaten markets
journey. We take a look at what this new Chemical company customers, for instance, that were previously held tight by legacy
world looks like and means for the CxO. can access all the safety and handling players: Google has built cars while digital-
information hands free by speaking the only banks have taken significant market
product name into their smart device, then share, for instance.
The future of access an expert with an appropriate voice
Customer command. To counteract these threats, traditional
Experience As digital information and services expand,
companies are reinventing themselves,
developing new business models. And
customers need an intelligent personal while much of their early reinvention
assistant to help them manage their focused on the B2C space, new players
Organizations have been delivering increasingly complex digital lives. For entering their markets later turned their
massively-customized products and organizations, customer experience then attention to the B2B space.
highly-tailored services for some time. becomes about engagement with these
But customer expectations are changing: smart software agents rather than direct To combat these even bigger threats,
they are focused on the outcome and engagement with the physical person. traditional players embarked on even more
experience rather than the underlying Marketing has become more complex in transformational changes.
product or service. As companies turn a world where the customer is not only They have, in essence, transformed
their attention to meeting those desires, harder to reach, but also no longer as loyal themselves into technology companies,
their customer contracts have become as it once was. opening up entirely new revenue streams
smart contracts, reflecting those expected based on high margin services.
outcomes rather than the underlying Meanwhile, technology has become
capabilities that deliver them. progressively more capable of anticipating Manufacturers are offering services that
each individual’s needs and desires. Some help keep equipment up and running,
Meeting increasing, as well as changing, say it may soon come to know them better while vehicle companies are offering both
customer expectations requires faster than they even know themselves; it won’t business customers and consumers pay-
decision-making, shorter innovation cycles need to ask if they are happy or in need of as-you-drive services backup up by usage
and a broader mix of skills. Increased support – it will know whether they are. based insurance. And now that 3D printing
access to real-time information has has become affordable, companies are
enhanced decision-making, while partners A note of caution: We believe the CxO buying product blueprints off the web and
and a wider ecosystem have helped to should be careful not to expect too much manufacturing items themselves wherever
accelerate innovation and fill any skills gaps. from anticipating customer needs, desires they need them.
and behaviors based on analysis and
Innovations have already brought down artificial intelligence. They will need to These services rely on the increasing
the boundaries between the real and balance automated decision-making with volumes of insightful data now available:
physical worlds, naturally blending these offering the customer the freedom of from their customers, sensors and
two quite diverse environments across choice. partners. Organizations are continuing
life’s journeys. Within the office, factory, to broaden their sources of insight and
warehouse, vehicle, home, store, bank, train leveraging cognitive computing to compile
station – or virtually anywhere else for that The future of intelligence from that data. The intelligence
matter – people are consuming vocational
and social information and services on their
Business gleaned is driving strategic and investment
digital devices in sync with the real world. Reinvention decisions at board level. These need to be
made faster than ever before in response
to customers’ ever-changing desires.
The technology giants are continuing
to set the bar for convenience and Not so long ago, retailers simply sold things, The most valuable services often emerge
usability in that new boundaryless manufacturers made things, banks looked out of an ecosystem of partners operating
world. Organizations – both young and after our money and healthcare providers across diverse industries. More open ways
old – that fell too far below that bar have looked after our wellbeing. But times have of working together are vital; without them,
long since fallen by the wayside. Highly- changed. The rise of the technology giants companies will struggle to explore new
tailored information and services are now

24 #AscentLookOut
CxO Agenda

possibilities freely and come up with novel seconds? How many people are on board? partner of the partner, for instance, doesn’t
innovations. In fact, many innovations Is my oil level getting low? Is their flooding act inappropriately is crucial for protecting
require organizations to share insight on the line? a company’s reputation.
across the ecosystem – but only with
the owner’s approval. While each player Increasingly smart and specialized in a Meanwhile, sensors on smart, connected
individually is leveraging that to add specific task, individual things are part of machines, vehicles and devices are
value its own service, the ecosystem also a highly-connected ecosystem – a smart producing greater volumes of data every
works together to deliver a seamless and cyber-physical system that comprises second of the day, data that is vital for
consistence experience across the entire smart autonomous machines and devices. ensuring operations run smoothly. These
service. Each is able act autonomously, to not only growing data volumes give fraudsters and
maintain an environment that maximizes terrorists more opportunities than ever
A note of caution: With all this productivity, but also to respond the before: terrorists threatening to disrupt
transformation taking place, we believe changing needs of its wider ecosystem. essential utilities, hackers holding customer
organizations should be careful not to information to ransom, blackmailers
neglect properly planning the phase out It acts in real time based on a combination compromising patient data and fraudsters
and maintenance of their legacy business of its own data and data shared by the stealing assets and identities.
along with its supporting processes and wider ecosystem. IT systems help with
tools. In the fight back against the new agile managing and processing the growing Businesses of all types and sizes are
market entrants, adapting the historical volumes of data; they also connect the leveraging technology to store their data
business is key to staying ahead of the new ecosystem to the wider world – to human more securely. To combat cybercrimes,
players. operators along with CRM, PLM and other their security focus has turned from
systems. blocking threats after they hit to detecting
and eliminating them before impact.
The future of After all, new levels of automation Real-time monitoring and analysis are key.
Operational have led to supply chains becoming Only by identifying the tiny early clues
Excellence increasingly disaggregated and dynamic. that something is amiss can organizations
prevent a threat before it takes hold.
Intelligent robotic manufacturing systems,
for example, rely on information from
partner systems to predict demand After all, people have become more aware
Today’s manufacturing plants, warehouses, more accurately and adjust behaviors of privacy and the importance of knowing
stores, cities and transport systems are accordingly. how their data is stored, shared and used.
more flexible, more agile and responsive, They expect traceability and control to be
than ever before. They are also more A note of caution: We believe that, as maintained whenever their personal data
efficient in delivering products that are systems become smarter and able to solve is shared along the value chain. The more
massively customized and services that are more complicated problems, organizations informed and in charge they are, the more
highly tailored. need to take care they don’t build systems willing they are to share their information.
that are over sophisticated, so highly They happily opt in and out of the growing
Internally, sales, marketing, research and complex that one small problem can number of services and information feeds,
production have become more closely cause a string of unforeseen failures. A eliminating those that provide little value.
linked while externally the entire supply comprehensive, yet understandable, end-
chain collaborates more effectively than to-end view of operations is still required so This increasingly complex world is matched
ever before. With operations streamlined, organizations can make rapid and smart by tighter regulations and more intense
organizations can handle more information, decisions based on that insight. scrutiny. Companies are becoming used
operate faster and respond more rapidly. to being constantly monitored. With
Companies have moved from working transparency and accountability high on
on timescales based on months or years The future of the agenda, they’re not only leveraging
to ones based on days and weeks, giving
the business more confidence in a fast-
Trust and technology to quickly adapt to new

changing world. Compliance requirements as they emerge; they’re


leveraging increasing volumes of data to
ensure the information required is readily
To make this happen, virtually every available.
‘thing’ around us has evolved to be able Partner ecosystems have become broader
to produce and/or consume information. and value chains longer. Only by building A note of caution: Regulators will face
In the factory or processing plant; on the trust amongst suppliers and partners increasingly smart players, who use new
bus, train or plane; around the oil rig, city, are companies able to work together computing techniques and available data
airport, hospital or school; virtually every more openly, while protecting their own to find novel ways to by-pass laws or take
environment and every piece of equipment intellectual property. risks, anticipating the potential losses they
has been transformed into a cyber- would face in legal pursuits. We believe
physical device. Each has digital sensors However, the longer value chain – along CxOs should avoid making decisions based
that monitor every aspect of its behavior with additional complexities in manufacture on legal advice grounded in AI anticipating
and well-being, sharing that information and the supply chain – is opening up that the probability of getting caught is
with its wider ecosystem in real time. How additional security and safety challenges. minimal.
many parts were produced in the last five Ensuring the supplier of the supplier or the

Ascent Look Out 25


Market Context

Time of impact
2016 Look today at how solutions could
address these needs.
2017 Consider potential solutions by
running pilots, for example.
2018 Understand now. Consider potential
implications and how these could be
addressed.
2019+ Follow for now. Watch how it's
evolving.

Business impact
Transformational Likely to require
transformational changes within
organizations.
High Will have a high impact at work and in
people's home lives.
Medium Will impact organizations'
processes & services or affect users' &
consumers' lives.
Low More likely to require minor
improvements than radical changes.

Maturity
Emerging Mainly seen in academia and a
small number of specialized markets.
Adolescent Discussed more widely by
analysts and thought leaders.
Early adopter Clients are starting to look
for solutions.
Mainstream There's a clear need and
many clients are implementing solutions.

26 #AscentLookOut
CxO Agenda

TRANSFORM
ATIO
NAL

HI
GH
Maturity

Mainstream
Early adoption
Adolescent
Ambient Computing Emerging

ME
DI
Omics

UM
Personalization
Economy of
Data

API Economy
Innovation
Servitization Value Webs MOOCs Protecting Digital
Property
Cyber-Physical
Systems
Gig Economy
Bi-Modal Neurobusiness
Industry 4.0 Businesses

LOW
Omni-Channel
DevOps

Horizon Analytics for


Scanning Social
Amplified Intelligence
Cybersecurity
Techniques

2016 2017 2018 2019+


© Atos 2016. All rights reserved.

Key focus areas also have increasing expectations about


our technological experience. As we
infotainment, transportation, utility,
healthcare and security services.
Ambient Computing share and collaborate naturally, all we care
about is simplicity and a compelling and While new technologies can enhance lives
Concept
seamless experience as we move across and streamline the way we do business,
On today's digital networks, everything
our multitude of connected devices that unfortunately there are individuals and
is now just a microsecond away. This has
span the real and virtual worlds. Mobile, entities who will attempt to exploit them to
a strong impact on business as well as
cloud, and the Internet of Everything must do harm. But this is not the only danger: no
individual lives.
therefore be at the heart of digital strategies electricity to power our devices would not
for a seamless customer experience. only impact our personal lives, but society
Always connected, anytime and anywhere,
and the economy as a whole. Strong
we're confident the technology we rely
Ultimately, success lies in delivering a protection against cybercrime is critical.
on will be there when we need it. This is
unified experience (even though it may
just the beginning: with the rise of the
involve several enterprises from diverse Amplified Intelligence
wearables and the Internet of Everything,
sectors) and finding the best way to Concept
we enter an ambient computing world
deliver the perfect personalized and timely With data volumes growing and analytics
where information technologies become
experience: the right personalized insights advancing, our lives are becoming
invisible yet surround all aspects of life with
and services at the right moment. This will increasingly dependent on the objective
personalized services, communication and
require increasing collaboration between intelligence provided by machines. There
anytime, anywhere insights.
verticals and probably the reinvention of are instances, however, where peoples’
many business and service ecosystems. more subjective experience and know-
Impact The smart city experience of tomorrow, how plays an equally important role in
We've not only become increasingly reliant for instance, may encompass seamless answering vital questions.
on technology in our everyday lives; we

Ascent Look Out 27


Market Context

Amplified intelligence augments machine- Understanding where and how machine- Impact
generated data-driven insights with the generated and human intelligence As companies raise their game in
human intelligence that is able to direct complements each other – and how best customer experience, understanding the
analysis in new ways, proposing alternative to leverage that combination – will become social equation across diverse customers
possibilities that only the know-how of the increasingly important as our reliance on segments is crucial. Together social
human mind can provide. Equally amplified machine-driven data analytics grows. network analysis and social media analysis
intelligence sees machine-generated, can help reveal the key influencers who
data-driven intelligence augmented by the Amplified intelligence will therefore support could, in turn, be leveraged as brand
human life experience needed to ensure improving customer experience and advocates.
the right – but not always entirely logical – excellence in operations, bringing answers
decision is reached. in domains not within our current reach. That said, the primary purpose of social
However, the CxO should take care to not media analysis is to understand customer
Impact lose control of the decision-making process. needs, desires, behaviors and concerns
Take a machine analyzing trends in human whether at an individual level or across
behaviors online, for example. A trend Analytics for Social specific customer segments. It can, for
might show people suddenly switching Concept example, help identify growing customer
to a specific payment option without any Customer behavior – both positive and dismay so that it can be addressed before
insight into why. Only a person would negative – is largely influenced by social impacting a brand’s reputation. Equally, it
realize that this trend is likely driven by relationships. As such, corporations and can help reduce churn by allowing brands
extensive media coverage of extensive governments alike must put the social to react quickly to disgruntled customers,
cybersecurity threats relating to some of voice at the heart of their digital strategies delighting them with unexpected surprises
the other payment options. In another to build the trust that is vital to their that will buy their enduring loyalty.
instance you wouldn’t leave a final decision success. They must not only listen, but also
on which children are most vulnerable and react, leveraging the voice of the social Organizations must, however, take into
need the most help entirely to a computer, community to steer them in the right account how their customers feel. People
but machine-generated intelligence will direction. don’t always like being listened to. To
provide some of the vital insight needed to successfully leverage social insight to
ensure the right decision is made. The emerging discipline of social network enhance their services, organizations
analysis brings to light the complex across both the private and public sector
Often organizations can only answer the patterns of connection, influence and will need to ensure critical customer
what, where and why of atypical scenarios reciprocity that are the main factors in relationships aren’t impacted – and local
impacted by human behaviors by customer behavior. Meanwhile, social and international regulations around
combining machine-generated data-driven media analysis, with its social media privacy are respected.
intelligence with wider human monitoring and sentiment analysis, helps
experience and understanding. companies derive intelligence from
customer conversations on digital media.

28 #AscentLookOut
CxO Agenda

API Economy Throughout their digital journey, companies functionality is defined by software as well
Concept will want to ensure legacy systems that as its physical features.
In a digital, networked economy, success they do decide to consolidate or transition
comes not only from innovating by to a new platform are decommissioned When applied to the world of production,
yourself, but also from fostering the seamlessly and any legacy that remains the CPS becomes the smart factory where
development of partner ecosystems. continues to run at peak performance. In manufacturing units leverage relevant
Application programming interfaces (APIs) effect a two-speed business will emerge: information to behave autonomously.
help organizations do that by allowing accelerating innovation to keep pace
them to safely ‘expose’ the functionality of with today’s fast-moving world while Impact
their internal applications or services to the meticulously planning the maintenance or Currently used throughout industry in
outside world in a limited fashion, either for potential phase out of the legacy business aerospace, automotive, infrastructure,
free or for a fee. IT capability is effectively – along with its supporting processes and energy, transport and other areas, CPS are
virtualized, decoupling application or tools. increasingly critical to manufacturers and
service implementations from their the factory ecosystem. Smart factories
consumers. These then become building Banks and stores, for instance, need open up new business models based on
blocks for third parties that create their own to ensure their bricks-and-mortar the convergence of physical devices and IT.
unique services – mobile apps for instance environments continue to operate
– by integrating multiple services together. optimally while they transform to a CPS are already impacting the way
new omni-channel model that also factories are constructed and run and
Companies are increasingly generating encompasses online and mobile. For this playing an ever-increasing role in the way
revenues by exposing their IT capability they will need to ensure they don’t take smart products, connected machines and
through APIs. The API economy reflects their eyes off their legacy network. augmented operators work together.
how APIs are now positively affecting an
organization's profitability. Impact Cybersecurity
Companies may be seeking a hybrid Concept
Impact environment where their legacy Cybercrime is estimated to already
As ‘every company becomes a technology dynamically enhances their new IT cost more than $1 trillion a year. And
company’, this mechanism becomes environment. From a legacy systems while cybercrime has now emerged
increasingly critical. Organizations will perspective, this may mean ensuring as an industry, digital warfare is a key
increasingly publish APIs to extend their interoperability between new and factor in nations’ military and economic
products and services and interface with legacy environments, deploying legacy success. Attacks may come from activists,
partners and customers in new ways. applications on alternative (modern) disgruntled employees, mafias, terrorist
New business models and new market platforms or cloud-enabling legacy services. organizations, government agencies or
offerings are already being created based even competitors (industrial espionage).
on companies opening up their internal IT Equally, planning and communicating
systems to the external world. the phase out of legacy business is key. Mobile and boundaryless networks
There may well be resistance internally, but are now a core route to exposure and
While Salesforce.com, Amazon, Facebook, communicating the options and benefits systemic vulnerabilities have been
Twitter and Google have all opened up will help. Externally, marketing departments weaponized. Every industry is at risk:
new revenue streams in this way, Netflix and competitive pricing will help accelerate increasing automation makes electrical
has used its APIs to extend its service to customers’ move from the legacy to the grids and telecommunication systems
more than 200 different devices – including new business. more vulnerable; military activities that
television, gaming devices and remote use computers or satellites are at risk of
controls – and all major mobile platforms in Cyber-Physical Systems disruption; transportation infrastructures
less than two years. Concept are vulnerable to breakdown; security
As web pioneer Marc Andreessen famously breaches in financial institutions have
According to analysts, while APIs started prophesized: “Software is eating the already gone far beyond stolen credit card
in media and high tech, they have now world”. Devices and production assets are numbers and fraudulent transactions on
moved into financial services, government becoming smarter. Their function is no the stock markets.
and retail. Most future API use will come longer solely defined by their mechanical
from digital business applications and the parameters, but also by their software, While cloud and mobility are now widely
Internet of Things. processing and communication capabilities. adopted across the enterprise, new
They are becoming unified cyber-physical paradigms such as the Internet of Things
Bi-Modal Businesses (getting into the devices. (IoT) and smart machines are forcing
new while keeping the legacy) companies to rethink protection.
Concept Bringing these devices together in an
With so much transformation taking place, intelligent way creates a complex cyber- Impact
organizations also need to consider what physical system (CPS). CPSs are defined as To fight new risks, cybersecurity requires
they should do with their legacies. Should ‘systems of collaborating computational a multitude of techniques coupled with
they shut down parts of their business? elements controlling physical entities’. holistic convergence between information,
Should they reinvent them? Essentially, within CPSs, physical entities physical and operational security across the
are fully controlled by IT. A device's whole digital chain. Application shielding,

Ascent Look Out 29


Market Context

for example, shields applications in secure DevOps: Aligning Software Development Fully integrated tools and lean processes
zones with trusted (corporate) information with Digital Operations ensure development and operations are
brokers acting as a central verification Concept totally aligned and fully in sync, decreasing
service between individual zones. In today’s fast-paced world, organizations IT operational costs while improving
need to be able to respond quickly to ever- software quality and accelerating time-to-
Organizations also need to take a more changing customer demands. At the same market.
proactive approach to cybersecurity, using time, IT systems are becoming increasingly Operations are improved and changes can
probes to look for evidence of specific complex and need to be integrated be implemented faster since they no longer
suspicious behaviors, for instance, to help with a higher degree of reliability and need to wait for long development cycles
anticipate threats. Millions of events can availability. As such, duplicating production followed by long testing processes. This
now be analyzed in real time thanks to environments for testing has become brings increased agility to the organization.
high performance computing. And after difficult.
a potential incident is detected, forensic Automation eliminates slow, costly and
analysis can help identify where the attack Meanwhile, developers are often unable error-prone manual processes while
started, who is behind it and how it was to understand the trade-offs between advanced release management methods
carried out. performance, scale and reliability. and automated operations build reliable
Operations teams, on the other hand, self-healing systems. Standards and
Today's advanced prescriptive security often become involved far too late in the standard components reduce complexity
techniques utilize a variety of analytical development cycle and are limited to and enable easier and faster build-to-order
and machine learning techniques to keeping production services stable. services.
study recent and historical intelligence.
They allow companies to do more than Emerged out of applying Agile and Lean But, in fact, this thing we see in IT is just
simply foresee future threats; they analyze approaches to operations, notably with the tip of the iceberg. DevOps will reach far
possible responses, prescribing the optimal the cloud, the DevOps (an abbreviation of beyond the IT department. It will help with
approach for eliminating threats before Development and Operations, illustrating streamlining processes and workflows. It
they happen. that they are now linked) approach to will help the business develop a culture of
building new and changing existing continual experimentation and learning,
The impact of applying proper services removes the traditional hurdle and react more quickly to ever-changing
cybersecurity techniques is not only between the development of software and market conditions.
significant in lowering exposure and putting it into operations. DevOps includes
accelerating curation of potential damages; best practices such as continuous delivery, Economy of Data
it can also enhance operations by building continuous integration, automated testing Concept
trusted agile infrastructures, reward and application monitoring. The massive growth in personal
business innovation thought better IP smartphone usage and increasing
protection, grow customer experience with Impact prevalence of connected devices are
trusted services and perfect compliance to Implementing DevOps requires significant leading to an explosion in data generation.
privacy regulations. While trust has always changes to existing processes and The Economy of Data (EoD) sees new
been a core business asset, business- governance within the organization. business models derived from this data, not
driven cyber protection can turn risks into Development and operations teams can simply for reselling data, but for creating
business value. then work closely together, supported by completely new market offerings.
established well-engineered repeatable As highlighted by Atos ‘Ascent Journey
processes that intrinsically consider 2018’, an EoD organization is one that
change, replacement and evolution. understands that data can provide more
than mere insight into market trends. When

30 #AscentLookOut
CxO Agenda

multiple sources of data are combined changing market demands and transient of the area of concern: sharing their
and refined, they can unlock access to opportunities, CxOs can take advantage of perspectives and knowledge with each
new markets and revenue streams. Such the gig economy to help align capacity and other so as to 'scan' how new phenomena
an organization will target potential users capability with their ever-changing talent might influence the future.
and providers of data to form a multi-sided requirements. Horizon scanning may be complimented
market, building partner, customer and by other future-oriented methodologies
supplier ecosystems and establishing In fact, the gig economy will be vital for such as trend impact analysis and scenario
shared data asset platforms to be used by enabling the liquid corporation. After all, a building, or the Delphi method, which
the participating players. large pool of flexible, highly-skilled workers builds consensus among experts on
available almost on-demand makes for predictions concerning a specific issue by
Impact an incredibly scalable workforce. You following a structured and iterative process
At a basic level, value creation within the could even think of it as a ‘swarm of skills’ of brainstorming.
platform comes from the act of sharing responding both reactively and proactively
data that offers benefit to multiple parties to emerging demands. Impact
(the direct approach). Data may be An awareness of what the future might
exchanged in its raw state or refined and Embracing a remote workforce by look like is the first step on the innovation
combined with additional Open Data eliminating restrictions based on journey that will guide companies to
sources. Participating parties extract the geographies will be key to gaining greater achieving their strategic goals. In contrast
value for their business context. access to this flexible, highly-available to processes focused on predicting the
talent pool. Virtual communication and future, horizon scanning encourages
At a more sophisticated level, data collaboration tools will make it easier for participants to develop new insights
semantics can be used to exploit data fed dispersed teams located across the globe by thinking out of the box. Looking at
back from participants engaging in the to work together. technologies in new ways may reveal ideas
direct approach to extract further value and that never come to fruition, but equally it
meaning. This new insight and value is then Horizon Scanning may uncover ideas that drive substantial
shared through the platform (the indirect Concept competitive advantage. After all, initial ideas
approach). The third digital revolution is driving that often seem far-fetched can lead to the
continual change. Social, mobile, IoT, most disruptive innovations.
An EoD system can drive business benefit analytics, cloud, smart technologies,
by offering access to a larger market, Industry 4.0, bioinformatics and more Horizon scanning allows organizations
increasing profitability by sharing market are forcing business to evolve at an to stay one step ahead by providing the
operating costs between participating unprecedented speed and scale. Exploring insight needed to develop strategies that
members and enabling higher prices what the future might look like helps anticipate future developments. CxOs
through the perceived increased value companies to be more resilient, to be should ensure their organizations have
of services enriched by the shared data prepared for the uncertainties that lie the strong horizon scanning capabilities
insights. ahead. needed to ensure their portfolio strategy
is aligned with evolving demand. Internal
Gig Economy Horizon scanning allows organizations to or outsourced, these capabilities will
Concept systematically and continuously analyze need to leverage suitable digital tools and
The new on-demand economy goes evidence about future trends, emphasizing processes.
beyond simply matching buyers with new technology and its effects. It's a
sellers, passengers with taxis, tourists technique for detecting early signs of Industry 4.0
with accommodation. The gig economy potentially important developments Concept
matches workers with gigs (or jobs), on- through a systematic examination of Technology-wise, Industry 4.0 is a melting
demand. In the basic model, gig workers potential opportunities and threats. Small pot that combines the Internet of Things
enter a formal agreement to provide groups of experts share their perspectives (IoT), advanced Big Data analytics,
services with the on-demand company. and knowledge with each other, consider new generations of human-machine
Prospective clients can then request their how emerging trends and developments interfaces and reliable layers of ubiquitous
services via a smartphone or web page – in might potentially influence the future of connectivity. It helps organizations manage
the same way a passenger would request their organization – its strategy, products, the flood of information from smart
a taxi from Uber – and the worker is services and more. machines, connected workers and the
compensated for the tasks they perform. products themselves.
The Organization for Economic
Recent surveys have shown that gig Cooperation and Development (OECD) Initiated in Germany to reflect the fourth
workers represent a growing segment of notes that horizon scanning helps industrial revolution, this European term is
the labor market. Some estimate that, by develop the big picture behind the increasingly being adopted across America
2020, 40 percent of US employees may be issues to be examined. Often based and Asia, in synergy with the 'Industrial
freelancers, for instance. on desk research and involving a wide Internet' concept.
variety of sources (including prospective
Impact research communities, think tanks, public Impact
As delivery models become more abstract organizations and NGOs), it comments that Industry 4.0 addresses growing demands
and flexible to allow services to react to horizon scanning can also be undertaken for digital production, providing greater
by small groups of experts at the forefront

Ascent Look Out 31


Market Context

flexibility, transparency, knowledge and more efficient and effective interactions Impact
the pervasive use of smart production beyond conventional organization MOOCs have the potential to scale up
facilities. Traditional layered shop-floor MES, boundaries – whether internal or external. to enable millions of students to attend
PLM and ERP systems that see top-level Innovation value webs facilitate open a single course consecutively. They
business processes separated from shop innovation both within the social enterprise not only democratize education, even
floor processes are transformed into a and beyond its borders. from some of the most prestigious
smart connected production environment. universities in the US, Europe and Asia,
In fact, organizations are increasingly but also facilitate education in emerging
The interconnection of machines, moving away from the traditional R&D economies. Currently mostly targeted at
components, products, people and intensive ways of working. They are the undergraduate market, they are also
processes is bringing disruptive changes at embracing corporate ‘intrapreneurialism’ beginning to offer professional training.
all levels and functions. Smart actors extend (entrepreneurialism, but within the In an enterprise context, MOOC can be
from ‘top-floor to shop-floor’ and even to organization), establishing in-house seen as the road to the future employee
the customer of the product. Smart supply corporate venture capital capabilities education system.
chains are restructured dynamically for and building collaborative relationships
optimal performance, with some physical internally across organization siloes and As MOOCs models refine, technologies
links even removed. externally with third parties. These include such as augmented reality may be
start-ups, SMEs, universities, suppliers, lead leveraged to combine work with education.
The fully autonomous operations allow producers, competitors, interest groups An employee could receive customized
on-demand operations to configure and customers. The new relationships and information via a wearable device, enabling
production lines directly, according to interactions that result are highly dynamic. progressive training that complements a
specific design parameters. Individual They encourage new insights, improve specific role.
digital blueprints accompanying creativity and enable rapid assembly of the
component parts interactively direct both solution components required. Though MOOCs seem to be booming,
machine and human manufacturing some issues still remain. While large
resources. Prescriptive maintenance uses Impact foundations and venture firms fund MOOC
data collected from shop-floor monitoring As this new business ecosystem of actors initiatives, potentially replacing millions of
to determine a minimum downtime exchanges objects of economic value teachers, questions remain on privacy, the
maintenance strategy. toward a shared goal of profit generation, ownership and accuracy of information
a new view on how things get done and the risk of propaganda. Stronger
Two-way communication between emerges. Relationships move from simple international certifications may be needed
machines and workers on the shop-floor collaboration to active cooperation. in the future to regulate this new field of
via smart devices, tablets or even wearable Organizations that embrace innovation education.
technology ensures continuous interaction. value webs will drive up their innovation
Procedures such as maintenance, productivity and ultimately increase their Neurobusiness
reconfiguring, refitting or calibration competitive advantage. Concept
become extremely agile, responding to Neurobusiness leverages neuroscience
actual production needs in near real time. Social business tools help organizations capabilities to improve business decisions
and employees develop and participate in and interact with people and communities
In sectors where automation and a new marketplace of ideas. But success more effectively. Closely associated with
connectivity are already mature, realization demands more than new technology digital marketing research on how to reach
of Industry 4.0 concepts is more imminent. alone. Firms need to redesign the way consumers and influence purchasing
Where production is outsourced, adoption they innovate, with implications for their better, it uses psychology, social sciences,
could extend decades into the future. business model, their alliance management wearables and brain-computer interfaces,
processes and their operating model, as such as electroencephalography headsets,
Industry 4.0 will bring significant well as for their IT. Hackathons are one to track emotions and guide sentiments.
improvement in operations, but will such example of these processes. This, in turn, may allow organizations to
require the reinvention of all aspects of influence attitudes, actions and behavior.
production, product and market strategies. Massive Open Online Courses (MOOCs)
We can expect to see a number of different Concept Impact
approaches adopted across and within Multiple for-profit and not-for-profit Interest in neurobusiness is growing. The
different industries, with some undoubtedly education providers (such as Coursera, technology is just emerging and it may
more successful than others. The courage edX and Udacity) are now offering Massive take three to four years for brain-computer
to change business doctrines and cultures Open Online Courses (MOOCs) through the interfaces to hit the mainstream, but
and the ability to learn from mistakes and internet, adding quizzes, projects and more potential applications are large.
adapt on the way, will ultimately determine to YouTube lectures and picking up millions
success and select the winners. of users along the way for participating Insight derived through neurobusiness
universities and colleges. As a lecturer talks, techniques will give marketing
Innovation Value Webs his output is recorded and posted online. It departments a whole new perspective on
Concept can be complemented by interactive user customers’ beliefs, behaviors and desires. In
Innovation is rising up the corporate forums to support community interactions turn, this intelligence will help organizations
agenda. One way to keep ahead is to among students, professors, and teaching surprise and delight their customers, who
develop an innovation model that enables assistants.
32 #AscentLookOut
CxO Agenda

are increasingly focused on the experience veterinary sciences and medicine) allowing together form an intelligent computing and
and outcome rather than the product or scientists to get a full understanding of the communication ecosystem that enhances
service. It may also help companies retain molecular processes that govern living the real world we live in. As we transverse
customer interest in a product or service beings. from a real bricks-and-mortar world to a
at a time when customers are becoming virtual online one, we expect a consistent
more fickle and less loyal – and less Meanwhile, biocomputing – the growing and uninterrupted end-to-end experience
susceptible to manipulation – than ever. capability of leveraging high performance regardless of where we are and how we
computing and simulation to solve are connected. We expect an omni-channel
Internally, neurobusiness techniques may problems in biology, biochemistry and experience.
have a role to play in helping organizations genetics – has become a cornerstone of
keep their staff engaged and loyal, while life sciences in the recent years. It may After all, the lines between our offline
also encouraging the creativity that is vital well contribute to what may be the next and online worlds have blurred over the
for driving innovation. These techniques technology revolution, combining digital, past few years. It doesn’t matter how we
may give employers looking to retain biotechnology, nanotechnologies and communicate with friends and family
Generation Z talents, for instance, a better cognitive sciences. – we seamlessly switch between face-to-
understanding of how they can deliver face, telephone, SMS and social media
the flexibility and fulfillment this lucid Impact interactions. The challenge for the retailers,
generation needs. Omics technologies reduce time and cost banks, government departments and other
of laboratory tasks, shifting the bulk of the organizations is to enable correspondingly
Furthermore, neurobusiness may also workload downstream from the laboratory flexible interactions.
help improve productivity, particularly in (wet lab) to the data analysis processes (in
stressful or demanding roles. silico lab). Already helping pharmaceutical Impact
companies reduce the cost and time of The goal is to deliver the best service
CxOs would do well to build – or hire – inventing, experimenting and releasing new anytime anywhere, the way customers
some in-house neurobusiness expertise, drugs, for instance, they promise radical want it – whether purely digital (web,
though they should be vigilant to potential advances in healthcare, with multiple mobile apps, kiosks, connected device
ethical and privacy issues. startups and large groups heavily investing for instance), physical (such as store or
in omics-powered personalized medicine. call center) or hybrid (connected store
Omics: Advanced Biocomputing and help desk, for example). It requires
Technologies Omics also has a wider role to play: it is all touchpoints to be unified to provide
Concept helping farmers increase their crop yields a seamless personalized experience
Omics refers to the collective technologies and it may one day help life insurers that delights across all channels. The
that explore the behaviors of the molecules better understand risk or CPG companies omni-channel customer experience can,
that make up cells, such as genes, proteins, understand more about nutrition. New therefore, only be fully realized once core
cellular carbohydrates and cellular lipids. business models may emerge based on business operations within disaggregated
Genomics, for example, explores the roles, new insight into our individual health service supply chains are aligned and
relationships and actions of genes. risks or how our individual bodies react to optimized.
different foods, for instance.
Omics techniques have exploded in the last To achieve a true omni-channel experience,
decade, powered by the completion of the Omni-channel organizations also require a single source
human genome project. These techniques Concept of information about the end user that is
are now routinely being applied to a wide Today’s multitude of devices – from accessible to all points of contact: from the
range of important topics in life sciences wearable devices to our smartphones, store, branch and office to the call center
(including microbiology, agriculture, tablets, laptops, desktops and TVs – and online website, social media site or

Ascent Look Out 33


Market Context

chat. However, assurances may need to be Wearables, for instance, could provide Today companies across a wide range of
given that all stored personal data will not real-time biometric information about industries are developing services as a
be accumulated or used without explicit consumers, indicating emotional and way to expand their offering, target new
contractual agreement. physical responses to interactions. This customer segments or differentiate their
will provide valuable input into the commoditizing business. Retailers are
The omni-channel experience helps monetization process, including a whole looking at offering consumers services
organizations engage with their customers new level of dynamic, ultra-personalized, linked to the goods they sell, automotive
more intimately and individually than ever embedded advertising. companies are offering tires-as-a-service on
before, ensuring customer engagement, a pay-per-use basis and manufacturers are
loyalty and advocacy. CxO should review Protecting Digital Property offering preventive diagnostic services.
their IT strategies and ensure their Concept
enterprises are well-positioned to build an Digital Rights Management (DRM) may Impact
omni-channel experience since existing IT have been around for more than 20 years, After all, services are broadly seen as
systems might limit this ambition. Bi-modal but today it has more recently taken on attractive business: providing additional
IT can offer a means to reaching this goal. a new significance. As products such as high margin revenues on top of the
music, games and videos are increasingly product business; representing a relatively
Personalization distributed through online digital platforms, stable business that can act as a damper
Concept DRM plays a vital role in ensuring creative against volatile product business; and
While the Ford industrial era developed outputs are not copied or stolen. enabling a deeper connection with the end
the concept of mass production, customer and, with it, insight into customer
digital brings in a new promise: mass However, DRM will require the supporting needs and desires.
personalization. The seemingly opposing economy to be further developed to avoid
forces of ‘maximizing process efficiency’ a slowdown of exchanges. Developing a product business toward a
and ‘personalizing user experience’ service business typically involves four
present a complex business challenge. Impact maturity stages:
Understanding how to make them work Soon, as we face the third digital revolution,
together rather than against each other is DRM will be extended into digital -- Product manufacturer: sell products and
critical. This requires operations and supply manufacturing where it will play a key role charge for basic break-fix services.
chains to be optimized for both B2B and in protecting intellectual property. With -- Value added manufacturer: sell products
B2C interactions. 3D printing, for instance, as the number and service to enhance the product
of products created on 3D printers grows performance.
Enriching personalized experiences also and manufacturers turn their focus from -- Full service provider: replace products
requires a balance between individual manufacturing physical products to by (managed) services and enhance
choice, regulatory compliance and trust. producing digital product designs that customers’ operational performance.
There will be a point at which customers consumers can download and use to -- Integrated solution provider: take over
consider sharing the source data used to ‘manufacture’ the products themselves at (parts of) customers operations.
shape a personalized B2C interaction is an home, DRM aims to help manufacturers
unacceptable invasion of privacy, limiting retain product IP. As servitization transforms entire product
trust and therefore adoption. industries from ‘technology-push and
Servitization product oriented' business to ‘customer-pull
Impact Concept and service’ business, players will need to
The personalization of products, services Services are increasingly being employed adapt their business models to keep pace.
and interactions in general can be a key as profitable and stable revenue streams Furthermore, the as-a-service economy
factor in driving customer experience, to enhance product businesses. Leading very often finds heightened success when
improving satisfaction, ensuring loyalty firms are adopting an ‘as a service’ it bridges multiple actors with differing
and attracting new business through business model, offering customized agendas within multi-sided markets.
advocacy. Tech-savvy digital natives, solutions to clients. Leveraging the cloud
for instance, demand richer connection and the Internet of Things, these business
and engagement through seamless, models can help grow high-end and very
personalized experiences across virtual and differentiated personalized offerings when
physical channels. manufacturing is no longer a differentiating
process. This process, where services make
With the advent of data analytics, end up a larger part of a product company, is
user behaviors can be determined in far known as servitization.
greater detail. This enables organizations to
personalize and target specific interactions An early example was the change
through tailored services, driving service in the aircraft engine industry when
monetization where access to a service manufacturers such as Rolls-Royce, who
will be in exchange for the use of personal coined the term ‘power-by-the-hour’, started
data, giving companies the opportunity to to sell air power as a service rather than
reinvent parts of their services. engines, maintenance and spares.

34 #AscentLookOut
CxO Agenda

CxO Agenda: Opportunities and Threats

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Ambient Computing Horizon Scanning

Amplified Intelligence Industry 4.0

Analytics for Social Innovation Value Webs

API Economy MOOCs

Bi-Modal Businesses Neurobusiness

Cyber-Physical Systems Omics

Cybersecurity
Omni-Channel
Techniques

DevOps Personalization

Economy of Data Protecting Digital


Property

Gig Economy Servitization

Ascent Look Out 35


Market Views
As you start your digital overcome the obstacles
journey, understanding and take advantage of the
how the transformation possibilities along the way.
challenges might evolve
in your market will help But don’t just take a look at
you to be more resilient. what is happening in your
Equally, the Market own market – explore other
Views will sharpen your markets too. After all, that is
understanding of how where the truly novel ideas
technology can help you will emerge from.

38 Aerospace 98 Healthcare
44 Automotive 104 Homeland Security
50 Banking 110 Insurance
56 Chemicals 116 Media
62 Cities 122 Oil and Gas
68 Consumer Packaged Goods 128 Pharmaceuticals
74 Defense 134 Retail
80 Discrete Manufacturing 140 Telco
86 Education 146 Travel, Transport and Hospitality
92 Government 152 Utilities
Market views

Aerospace

Delivering a fully connected passenger Air traveler numbers to grow 5%


journey annually for next 20 years
Fully leveraging IT to increase reactivity Commercial production to increase
and services 20% annually by 2025
Moving to a digital world to address 3D printing market to grow at a CAGR
main challenges of 20.47%
Industry eager to find fuel alternatives Passenger numbers in airports to
and cut emissions reach 7.3bn by 2034

Key Market Challenges

Customer digitally engaged throughout that journey, leveraging insight shared by the connected
particularly during times of disruption when craft to open up new revenue streams.
Experience they want to be empowered to choose Services that anticipate failure or enable
alternative travel arrangements. As such, spare parts to be manufactured on
some airlines are differentiating themselves site significantly shorten maintenance
In today’s increasing connected world, by offering enhanced accessibility services. times and thus operational expenditure.
airline passengers expect a fast, reliable Consequently, maintenance, repair and
connectivity, even at 30,000 feet. The passage through the airport should operations (MRO) services are poised for
Business travelers want to keep working; be streamlined and rapid. Security and profitable growth.
families want access to information immigration checks should be smooth
and entertainment. They want their and non-intrusive, giving passengers In addition, intelligence borne out of
personalized connectivity, entertainment a feeling of security – but without long data on how passengers behave on
and meals already prepared for them when delays. Passengers’ dialogue with the board allows them to open up new
they board the aircraft. airline, airport and other partners should be high-margin revenue streams. Relevant
efficient, personalized and consistent from targeted passenger services – including
The connected aircraft also enriches the the moment they book their seat through exclusive infotainment, communications or
in-flight experience for pilots and cabin their train, airport and flight experience to concierge services that enrich the on-board
crew. Access to digital documentation, arriving at their final destination. experience and allow passengers to plan
email facilities, telemedicine and credit time their stays – boost sales and build a
card authorization systems increases This seamless passenger experience deeper, more meaningful, relationship with
productivity. Access to systems for needs airports, airlines and other providers passengers.
rescheduling onward connections, for to connect their systems and share
instance, allows them to serve passengers pertinent customer data. Passengers with Unlike many other industries, regulation
better. disabilities, for example, only expect to has shielded aerospace somewhat from
share that information once to get the the new entrants. The aerospace industry
Today’s armed forces personnel expect assistance they need throughout their should, nevertheless, be wary of the
this same productive in-flight or on-board journey. Equally, diverse military solutions technology giants whose understanding of
experience in their military lives. As such, will need to share interfaces, specifications individuals’ needs, habits and preferences
defense organizations, with their squeezed and user requirements to ease integration allows them to challenge established
budgets, are replacing the expensive and ensure a similarly seamless user players across many industries. To ensure
rigid, difficult-to-use and un-interoperable experience. they stay ahead, industry players should
systems currently in operation with modern focus on building deeper relationships with
technologies. Familiar smartphones, tablets passengers to address their needs and
and other civilian technologies also make Business expectations. Future legislative changes,
solutions more cost efficient, faster to Reinvention however, could lead to an industry shake-
develop, easier to use and less dependent up. An airborne Uber is not beyond the
on specific suppliers. Innovations need realms of future possibility.
specific adaptions, particularly for security,
and their suitability needs to be proven The connected craft can share in-flight
Companies will struggle to innovate
under manoeuver conditions. or on-board data on the health of critical
without building partnerships that extend
components and systems (including
their capabilities: alliances between craft
Meanwhile, civilian passengers expect avionics) with operations teams and
manufacturers and technology providers
services on the ground to be as efficient as manufacturers in real time. Manufactures
will open up new possibilities and ensure
those in the air. They also expect to be kept of both civilian and military craft are
they're adopted safely and securely;

38 #AscentLookOut
Aerospace

‘‘Aerospace is facing huge challenges in line with its significant growth:


increased services to passengers during their journey, manufacturing
production ramp up with increasingly demanding airlines and reducing
the CO2 footprint. Aligned with the digital transformation of this
Stéphane
Janichewski
ecosystem, IT is part of the solution.’’
Head of Defense &
Aerospace Market

alliances with media, telco and payment must incorporate complex multi-force manufacture to meet new potentially
services companies will open up new and multi-usage requirements that also multi-billion dollar orders for small numbers
multi-sided business models that enhance need to be tailored to suit the missions of high-value, very customized items.
infotainment services; alliances between of each specific country. Designs need International sales require home state
airlines, airports and other transport to be modular to accommodate diverse approval for weapon or dual-use exports.
operators will open up other new revenue configurations yet complaint with any Equally, the target country might have
streams. With new multi-sided business existing systems in operation. specific import requirements that need to
models, companies consume relevant be considered, such as offset agreements
data from third-party partners and build The sophisticated end product requires or joint ventures.
innovative services by combining this deep integration between mechanical,
intelligence with their own customer electrical and software components. The sophisticated craft built today will be
insight. Tight collaboration between design, operating for anything between 20 and
development, production and aftersales, 40 years. Numerous upgrade recalls will
Military organizations expect to be shielded along with tight integration across the be needed as the industry adopts new
from the complex ecosystem of partners supply chain, is vital for accelerating lead technological advances. Manufacturers’
needed to deliver today’s immense times and ensuring safe and efficient ability to manage the craft evolution
integration projects; they simply want to operations amidst increased complexity. efficiently – and ensure components
purchase an end-to-end solution. Having don’t become obsolete – will be crucial to
one prime contract simplifies engagement As manufacturers extend their network of managing cost over the product’s lifetime.
and accountability. Some defense partners and suppliers around the globe, Defense craft, in particular, may encounter
manufacturers are evolving into integrators a shared and common understanding and need to be maintained in extreme
to meet this need. of that data is critical to ensuring all combat conditions on the battle field.
stakeholders interpret the product design
correctly. Upstream standardization and
Operational commoditization will help. Trust and
Excellence Compliance
Meanwhile, both end product and
component manufacturers need flexibility
to cope with erratic production cycles:
Craft manufacturers and operators have to As airlines, defense suppliers and
ramping production up or down within
balance building a high-quality and fitting manufacturers extend their capabilities
a short period of time. Civilian backlogs
product with minimizing operational cost. and services, safety and security is always
are currently full, meaning manufacturers
Cost is influenced by a multitude of factors: at the forefront of any new innovation.
must focus on ensuring they have enough
from product price, maintenance cost Today’s growing reliance on data and
capacity to meet their commitments. IT will
and fuel consumption to operations and increase in connectivity bring with
help them in this by transforming them into
logistics, operational risk and passenger them a greater diversity of threats and
a more efficient organization.
numbers. amplified responsibilities. Companies must
protect new services and capabilities
In defense, declining home markets
Craft must be tailored to meet very specific from the increasingly diverse virtual and
in the US, Europe and China are being
requirements. For civilian aircraft, each physical threats that need to be foreseen,
more than matched by growing exports
airline requires its own customization, understood and prevented. After all, the
driven by the growth of threats in
increasing complexity in the product, its craft can be considered a complex IT
countries that do not have strong defense
manufacture and the supply chain. For system, which has to be protected against
manufacturing capabilities. Manufacturers
military craft, a single equipment program cyberattacks. When docked it has many
must be prepared to suddenly accelerate

Ascent Look Out 39


Aerospace

connections with other systems, all of accessible; potential terrorists prevented be optimized, eliminating the need for
which are sources of vulnerability. from even boarding the plane; and flights aircraft to circle above airports, saving
tracked across the skies with black boxes time, fuel and reducing CO2 emissions.
Companies are facing additional security recording exactly what is happening in the New procedures, supported by new
and safety challenges driven by additional increasingly connected aircraft. Passenger technologies, provide the best trajectories
complexity in manufacture and the data must be protected too and companies for fuel and time efficiency and associated
supply chain. Risks include spies hacking must balance compliance with data atmospheric emissions while also reducing
into drawing data when it’s transferred protection regulations with knowing exactly noise. Shorter but steeper landing
across the extended enterprise network who is on the plane to mitigate the risk of approaches means aircraft can fly at cruise
and ensuring the supplier of the supplier terrorism. altitude for longer.
doesn’t allow a defect in a small part that
could damage the craft. Adopting IT that Regulatory requirements are increasing
has safety and security already built in will and the aerospace industry is being
help. closely scrutinized for safety and
environmental issues, including noise
As well as guaranteeing the chain pollution and reducing CO2 emissions from
of production, supply and logistics, manufacturing. Climate change targets
scrutinizing all suppliers and ensuring demand organizations reduce carbon
compliance with all legal requirements, emissions.
defense manufacturers must additionally
safeguard the chain of confidentiality and The European Union Clean Sky
ensure their product is not used against its aeronautical research program aims to
own country or allies. develop breakthrough technologies to
significantly increase the environmental
Trust must be built amongst suppliers performances of air transport. Clean Sky 2
and partners too. The broad ecosystem will deliver break-through technologies for
requires companies to work together more incorporation into the next generations of
openly and a modern IT environment that aircraft from 2025 onwards.
enables safe, secure, effective and efficient
collaboration and communications. The connected craft can help too. In
transoceanic flights, for example, data
Passengers expect to be protected showing an accurate position of the plane
too. Cockpits need to be secured, yet allows aircraft arrivals and landings to

40 #AscentLookOut
Aerospace

Quantum
cryptography Mainstream
Early adoption
Adolescent
Emerging

Semantic
technologies

Distributed Prescriptive
analytics analytics Self-adaptive security
Cyber-physical Augmented
Industry 4.0 systems reality Innovation value webs
technologies
High performance
computing IP networks
Advanced data 3D printing
Internet of Things visualization
Context-rich
systems Virtual assistants
Streaming
analytics Wearable
computing
DevOps Cloud Service Integration

Autonomous vehicles
Near field
communication
2016 2017 2018 2019+
© Atos 2016. All rights reserved.

Key Enablers allows aircraft manufacturers to simulate


the behavior of complete structures
Cloud Service Integration
Vital systems are managed within the cloud
exposed to all kind of complex processes. and delivered ‘as a service’ wherever and
3D printing
whenever they're needed. As the need
3D printing technologies manufacture light
Augmented reality for cloud-based functions grows, Cloud
weight components. They're extremely
Smart glasses use augmented reality Service Integration connects processes
useful for MRO departments who can now
technologies to display this information in seamlessly.
quickly print any parts needed wherever
a worker’s line of sight. Virgin Atlantic even
the aircraft is situated around the globe.
trialed the technology with staff. They used Context-rich systems
This additive layer manufacturing (ALM)
the devices to provide real-time information The user experience is integrated across
not only reduces waste but also allows the
to passengers, including details about local every channel of interaction – online,
manufacture of both very complex shapes
weather, and to translate information into mobile, social, wearables and more –
that are almost impossible to build using
foreign languages. to ensure a seamless and consistent
any other technology and extremely light
experience across all service, purchase
structures and components that drastically
Autonomous vehicles and information paths. Behind the
reduce the aircraft’s fuel consumption
Engineers are using unmanned aerial scenes context-rich systems consolidate
during its entire lifecycle.
vehicles (UAVs) to visually inspect aircraft intelligence from diverse systems to
during manufacture and maintenance. proactively anticipate each user’s individual
Advanced data visualization These ‘drones’ have relieved engineers needs. They automatically adjust content
Craft and component manufacturers are from hazardous inspection activities and based on a user’s device-type and input
leveraging simulation to optimize design saved aerospace companies a great deal of capabilities, for example.
and production, and reduce manufacturing time and expense.
cost. Extensive virtual testing enabled by
immersive 3D visualization technologies

Ascent Look Out 41


Aerospace

Cyber-physical systems Internet of Things Self-adaptive security


Around the manufacturing plant, Now part of the Internet of Things (IoT), As craft become more connected and
sophisticated cyber-physical systems the connected craft is also contributing the threat of cybercrime increases. A new
(CPS) monitor and control the physical to a wider picture of the environment. generation of cybersecurity techniques is
environment to improve performance and Information gathered is combined with being applied. Self-adaptive security helps
safety. Localized sensing helps identify intelligence gleaned from social media, craft manufacturers and operations teams
issues with machinery performance meteorologists and a wealth of other on the ground look for evidence of specific
and reliability, while communication sources to create a holistic view on our suspicious behaviors to anticipate threats.
technologies send machines instructions weather patterns, the impact of climate
for the next bespoke assembly. change or the battlefield. Manufactures and airlines manage their
data and services securely in their private
DevOps IP networks clouds. Dynamic access control enabled by
Agile – or even DevOps – development Communications based on satellite self-adaptive security ensures staff, partners,
methodologies allow users to see – and technology allow pilots, passengers and passengers and personnel have access to
influence – innovative solutions before crew to access information, entertainment the information and systems they need to
they’re even finished to ensure usability. and other resources safely in-flight or access, but only when they need it.
on-board. Connectivity within the craft
Distributed analytics includes the wireless integration of the Semantic technologies
Behind the scenes streaming analytics growing number of consumer devices. Semantic technologies enable the
supported by high performance computing Military aircraft might even soon leverage integration of the diverse formats of data
analyzes millions of events in real time the IP networks that are increasingly being that come from disparate connected
looking for evidence of suspicious behavior, deployed in civilian aircraft. Sophisticated sources. They ensure analytics systems can
with distributed analytics then supporting combat systems, for instance, might benefit understand the meaning of the data they
vital forensic analysis after a security from the video streaming that could process, whatever its format.
incident is detected. enhance situational awareness.
Streaming analytics
High performance computing Near field communication Embedded sensors within the inner
Advanced simulations rely on a growing Passengers, pilots and crew can connect workings of the aircraft constantly stream
volume and diversity of data – data their own personal laptops, tablets, billions of pieces of information back to
that is shared within the extended smartphones and other mobile devices its maker and airline crew on the ground.
enterprise network between aircraft within the aircraft using Bluetooth and near Streaming analytics allows them to
manufacturers and their supply chain. Big field communication (NFC) technologies analyze diagnostics and geo-location
Data and advanced analytics powered to receive passenger-oriented services information on the fly in real time. Inside
by high performance computing allow such as infotainment and social media a military aircraft it enables electronic
manufacturers to process this vast amount information. intelligence systems to analyze radar in
of data and ensure it provides invaluable real time to provide additional situational
insight in a timely manner. Analytics will NFC also enables the mobile wallet that awareness.
boost virtual testing, for example, by proves a simple, effective and secure
enabling a simulation solution that covers personal payment solution in-flight and Virtual assistants
every stage of the craft’s lifecycle. allows passengers to receive coupons and On-board or in-flight a virtual assistant
interact with NFC-enabled advertising. provides information on the destination,
Industry 4.0 technologies arrivals and onward travel, and on the
On the shop floor, the smart factory is Prescriptive analytics products and services offered in-flight.
helping manufactures respond to an Potential issues are identified early and the Interactive assistance improves customer
increasingly complex and fast-paced right actions are executed early thanks to service by freeing up personnel to address
production environment. Industry 4.0 the prescriptive analytics that analyzes more specific questions and attend to
technologies seamlessly connect the airplane diagnostics in real time then those passengers with more specific needs.
physical shop floor to the virtual IT systems suggests maintenance options and their
that support meaningful decision-making likely outcomes. This improvement in Wearable computing
and drive operational and strategic the maintenance, repair and operations Engineers porting wearables such as
flexibility. (MRO) chain increases aircraft availability smart glasses can, for example, view a new
and enhances customer experience by design before even building a prototype.
Innovation Value Webs reducing delays due to unexpected failures Workers and maintenance engineers in the
With so many new possibilities emerging, in the aircraft’s systems. production plant use them to gain hands
Innovation Value Webs are helping free access to the specific requirements for
aircraft manufacturers and airlines facilitate Quantum cryptography the aircraft they’re currently assembling or
open innovation beyond the enterprise Quantum cryptography will help ensure machine they’re currently fixing. Embedded
borders, enhancing collaboration and the security of high end transmissions cameras relay pictures back to base to
communication across the wider partner and assure secured interoperability and record activities or tap into the insight of a
ecosystem. The new social business collaboration for highly sensitive data. specialist engineer – who could be located
tools that lie at their core encourage the remotely, anywhere around the globe.
participation required to develop the new
marketplace of ideas.

42 #AscentLookOut
Aerospace

Key Enablers in Aerospace

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3D printing Innovation Value Webs

Advanced data Internet of Things


visualization

Augmented reality IP networks

Near field
Autonomous vehicles
communication

Cloud Service
Prescriptive analytics
Integration

Context-rich systems Quantum cryptography

Cyber-physical systems Self-adaptive security

DevOps Semantic technologies

Distributed analytics Streaming analytics

High performance
Virtual assistants
computing

Industry 4.0 Wearable computing


technologies

Ascent Look Out 43


Market views

Automotive

Cars becoming autonomous


1.2 billion cars on the road computers on wheels

A car has, on average, 30,000 parts Non-automotive providing


automotive services
Up to 95% of retired automobiles are
Urbanization driving shared mobility
recycled
Electronics & software are 35% of auto
cost
P 95% of a car’s lifetime is spent parked

Key Market Challenges

Customer anywhere, at any time and on any device, Business


but particularly when they’re in the
Experience dealership, service center or their vehicle.
Reinvention
This enhanced engagement is vital for
cultivating loyalty. After all, if the customer
The age of constant connectivity and experience is not managed properly along The connected vehicle also opens up
easy access to information is redefining the entire customer and vehicle lifecycle the opportunity for enhanced diagnostic
the automotive sector. Social- and mobile- and the vehicle maker or dealer is not close services, which remotely monitor the
empowered individuals expect more to the customer when they’re thinking vehicle in real time and resolve any issues
from the vehicles and services they buy: about purchasing their next vehicle, before they even arise. A leading tire
they expect them to be sophisticated there’s a 60 to 70 percent chance that the manufacture, for example, is providing
and tailored to their individual needs and customer will look elsewhere. tires as-a-service on a pay-per-use basis for
desires, yet robust and easy-to-use. commercial customers. Diagnostic data
This increased intelligence, coupled with about the vehicle and its tires is collected
They also expect their automotive the connected vehicle, has unlocked some along with information about vehicle usage.
experience to be equally stimulating great new opportunities for companies This is then turned into a value-added
and personalized whether online, in the to enhance their customers’ journey service for the fleet operator – a business
dealership, in the service center or in experience and open up additional new model beyond pure sales – that improves
their vehicle. If brands don’t provide a higher-value sources of revenue. OnStar, fuel efficiency and helps to eliminate tire
seamless experience that excites them at just to mention one provider, makes finding failures.
every opportunity – from online search the way more convenient and safe through
through visiting the showroom and the its intimate knowledge of the driver and Increasing urbanization and environmental
test drive to the driving experience and his location. While these digital services awareness and regulation are also opening
post-sales services – they will simply turn are improving customer retention in the up opportunities for today‘s vehicle makers.
their attention elsewhere. Technology dealer network, digitization is also opening Services that enhance mobility within the
giants, such as Apple, have responded by the way for new sales channels that either city by reducing pollution and congestion
developing solutions such as CarPlay to change the dealer’s value proposition or or by making it easier to find a parking
help their automotive partners provide a leave them completely out of the loop. spot, for example, are important for city
seamless modern experience outside and dwellers. Carpooling, where city dwellers
inside their vehicles. These solutions, at Autonomous vehicles are fast becoming a ditch their vehicles and instead purchase
the same time, challenge vehicle makers’ reality. They have the potential to transform mobility-as-a-service, offers another new
ownership of their customers and market the lives of all of us but, in particular, those opportunity, while also posing a threat from
position. with disabilities who are currently reliant on new players such as BlaBlaCar. Vehicle
others to get around. The success of these makers are increasingly cashing in on this
Automotive companies are increasing vehicles depends, to some extent, on their alternative source of transport, offering
their use of technology to better ability to provide a safe and comfortable carpooling solutions in large cities instead
understand the specific cultural, economic journey experience amidst increasingly of only selling vehicles.
and performance expectations of their complex road situations. For this they will
customers. The intelligence derived from have to rely not only on their own sensors, Carpooling business models are
information customers share on social but also on those of other vehicles. They particularly relevant for full electrical
media, within online customer portals may even need to cooperate with each vehicles (FEVs) in urban areas. Services,
and from within their vehicles allows other and the infrastructure rather than which might be provided by fleet operators,
organizations to engage with them more make decisions solely on their own. would impact the distribution grid: the
individually than ever before – from grid, on one hand, is the source of energy

44 #AscentLookOut
Automotive

‘‘Vehicle and equipment makers are looking to unlock the full potential
of the unique intelligence gleaned from customers, dealerships and
connected vehicles by sharing relevant data with third-party partners.’’
Thilo Stieber
Vice President
Portfolio &
Innovation,
Manufacturing,
Retail & Transport

needed to re-charge their fleets; on the more resistant to disease, increasing flexible production network that allows
other, fleet operators can help balance the yield of the farmers. Data privacy automotive companies to respond
the grid by providing distributed energy requirements are, naturally, respected. more rapidly to the changing business
storage devices. New legal frameworks environment. It does, however, require an
and technological approaches must be Once simply a host for foreign players, intelligent global supply chain network
developed to ensure the impact of the China’s role within the automotive market is management with enhanced risk
integration of huge numbers of FEVs is low also transforming. Chinese vehicle makers management.
and to ensure re-charging requirements are are evolving from mass manufacturers to
fully understood. creative innovators while increasing their Shorter product lifecycles, higher
footprint on the global stage. As a result, integration of electronics and increased
New players, including electric vehicle European vehicle makers are rethinking customization has increased complexity
manufactures such as Tesla and Google their positioning for many markets. in the product, its manufacture and the
with its self-driving car, are driving supply chain. The increasing complexity
innovation in the industry. Disruptions of components and the use of more
– from Google, Uber, Tesla and Zipcar, Operational advanced technologies for sensors and
for instance – are coming primarily from Excellence actuators, wireless communication,
software, internet and Big Data application and multicore processors pose a major
companies outside the traditional challenge for building next-generation
automotive ecosystem. For traditional vehicle control systems, for example. Both
Vehicle makers are increasingly building
players, alliances outside of the traditional the supplier and integrator need new
factories closer to where end user demand
ecosystem of partners – collaborations with systems science that enables reliable and
is to help them meet local regulatory
software and electronics companies such cost-effective integration of independently
requirements, such as the local content
as Apple and Bosch – are critical for driving developed system components. The
regulations reflected in high customs
novel innovations. Global co-creation proliferation of the digital design and
import fees. Vehicle makers overcome
communities such as Local Motors might development process, which now also
these regulations and lack of trained
also provide some unique inspiration. includes the production lifecycle and
workforce needed to build entire cars by
aftersales, will allow vehicle makers to make
implementing Semi & Complete Knock-
Vehicle and equipment makers are looking much better trade-offs.
Down (SDK & CDK) approaches.
to unlock the full potential of the unique
intelligence gleaned from customers, Automotive makers are increasingly
In China, vehicle makers are forced to enter
dealerships and connected vehicles by leveraging manufacturing intelligence
into joint ventures with local vehicle makers
sharing relevant data with third-party to optimize production in response to
to gain access to the fast growing Chinese
partners, such as insurance companies. individual customer requirements. Fully
market – an approach which needs to be
This shared data could, for example, autonomous production chains reconfigure
managed properly to ensure a proper IPR
provide the insight insurance companies automatically for each individual product
management. It's also helping them tailor
need to offer lower premiums to safe according to its individual design
products to local desires and minimize
drivers. Vehicle makers would receive a parameters. Initiatives such as Industry 4.0
customs charges. Automotive parts
referral fee for sharing that data. are aiming to provide the technological
suppliers are, in turn, increasingly aligning
foundation to enable automotive
their production footprint with their key
In another example, data collected from companies to provide these personalized
customers.
agricultural vehicles such as seeders, products in an efficient way.
harvesters, spreaders and sprayers, is
Both global- and local-sourcing schemes
being sold onto farmers and the seed The connected vehicle will help vehicle
are enabling the more global and more
manufacturer to help them make crops makers address one of the top challenges

Ascent Look Out 45


Automotive

of current times. The ability to make remote GLONASS regulation, are on their way. Both As vehicles become smarter and more
updates will not only reduce recall costs, it regulations will see vehicles automatically connected, manufacturers must also shield
will help them improve the product over dial emergency services in the event of customer data and essential resources
its life time as a basis for an enhanced a serious accident – even if the driver is from the threat of cyber-crime. A team
customer experience and foundation for unconscious. of researchers conducted an experiment
product and business innovation. that simulated a Jeep being hacked by
Other new innovations, such as the an invisible, virtual force. Vents blew out
autonomous vehicle, are opening up some cold air, the radio switched channel and
Trust and still grey areas when it comes to regulation the wipers came on before the hackers
Compliance and liability. For example, can the sole revealed themselves on the vehicle’s digital
passenger in an autonomous vehicle – display.
bearing in mind it has no driver – legally
Trust and compliance represents the be intoxicated? Insurers have already Cyber security and the protection it
foundation for customer experience and started to analyze the liability situation in offers against criminals, hackers and even
business reinvention. each country because of different local terrorists are fundamental to maintaining
liability concepts. Independent of any customer trust. After all, customers will only
Growing environmental awareness and legal challenges, the race to become the offer the data that is critical to new service-
stricter regulations, for example around first vehicle manufacturer to offer a fully based business models to companies they
CO2 emissions, have elevated the demand autonomous vehicle driving is already on. trust. Companies must also ensure they
for more fuel efficient vehicles. New lighter comply with data protection regulations
weight carbon-fiber materials increase the Whilst advancing at an incredible speed, and policies – from the factory all the
overall efficiency of new vehicle models the automotive industry may also be losing way to the dealership until the end of the
while giving designers greater freedom. the consumer’s trust. Electronics are driving product lifecycle.
up prices, shorting product lifecycles and
Meanwhile, innovations through ADAS increasing complexity. Whilst the ‘smart’
(Advanced Driver Assistance Systems) on board software has also lead to higher
electronics allow a safer driving experience. defect rates for new vehicle models,
The pan European eCall regulation, for the Volkswagen ‘diesel-gate’ emissions
example, requires SIM cards in all new scandal has inconvenienced millions of
EU vehicles models from April 2018 customers with recalls and higher running
and, as such, is envisaged as an enabler costs, damaging the entire brand with a
for the connected vehicle and local significant impact on sales.
regulations, such as the Russian ERA-

46 #AscentLookOut
Automotive

Autonomous vehicles

Mainstream
5G networks Early adoption
Adolescent
Emerging

Machine learning

Cloud Service Integration

Streaming
analytics Virtual assistants
Cyber-physical Advanced data visualization
3D printing systems
High performance
computing Prescriptive analytics

Wearable
computing Distributed
analytics
Gamification
Internet of
Things Embedded Self-adaptive security
sensors
Augmented
Machine-to- reality
machine Sentiment Haptic technologies
Gesture recognition
Near field analytics
communication
2016 2017 2018 2019+
© Atos 2016. All rights reserved.

Key Enablers As both consumers and producers of


information, these smart vehicles will soon
experience how the vehicle they're buying
feels too.
benefit from the improved network speed
3D printing
and availability offered by 5G networks. Augmented reality
After tailoring their vehicle interior to
With 5G (or even 4G) technology available Augmented reality has been enhancing
maximize personal comfort or exterior to
in the vehicle, vehicles can connect to the safety and comfort for some time. A
give it a unique look and feel 3D printing
internet independently of the driver or ‘heads-up’ augmented windscreen
technologies build a vehicle that meets
passenger mobile phone to utilize in-vehicle display highlights pedestrians and other
their exact requirements. As early adopters
apps. potential hazards, forward collision and
of rapid prototyping, the automotive
lane departure warnings, speed limit
industry undoubtedly has more 3D printing
Advanced data visualization and navigation information, and correct
or additive manufacturing applications
Using high-end 3D visualization following distance and speed information,
than most other sectors. Initially used
technologies early in the design and for example. Augmented reality glasses
for creating light weight body panels, 3D
engineering phases streamlines product provide directions to the parked vehicle,
printing is also extremely useful for parts
development and launch processes by nearby points-of-interests or empty parking
departments. 3D printers quickly print the
leveraging lifelike digital models. Digital spaces and receive projections from rear
parts they need so they can get on with
content generated during the design and cameras to assist in parking.
fixing a fault without any delay.
development stages could be reused
for marketing needs. Vehicle buyers use Autonomous vehicles
5G networks this technology to help them customize The autonomous vehicle is a classic
Leap forward a couple of years and their own vehicle design. Immersive 3D example of a cyber-physical system where
electric connected vehicles with their 4G/ visualization technology provides them computing and communication systems
LTE networking and on-board diagnostics with a 360° view of their personalized interact with large physical systems.
would be a familiar sight on our roads. vehicle. But vehicle buyers want to Advanced computing capabilities used

Ascent Look Out 47


Automotive

information provided by embedded function and even experience a trip in Near field communication
sensors to guide the vehicle safely along their new purchase before it even starts its Connectivity within the vehicle includes
the highway. journey on the manufacturing line. Haptics the wireless integration of the growing
– along with gamification technologies – number of consumer devices. Drivers
Cloud Service Integration can also be found in dealerships where and passengers can connect their own
The extended services offered by it allows potential buyers to experience personal laptops, tablets, smartphones and
vehicle makers are provided through vehicle models not on show. Sensors other mobile devices with the vehicle using
the cloud. A service combines historical integrated with haptics gives drivers the Bluetooth and near field communication
data collected from a vehicle with a warnings they need to avoid mistakes and (NFC) technologies to receive consumer-
weather service and a GIS service using accidents. Haptics also help in opening oriented services such as infotainment,
Cloud Service Integration to optimize a up new human machine interface (HMI) navigation and telematics.
vehicle’s performance and minimize fuel options for the driver, increasing driver
consumption on a specific road surface in comfort, as well as an enhanced console NFC also facilitates driver identification
specific weather conditions, for example. and dashboard feedback. for personalization, allowing drivers and
passengers to unlock their doors, adjust
Cyber-physical systems High performance computing their seating position and even pay for
Around the manufacturing plant, Big Data and advanced analytics powered tolls and parking. Engine control unit (ECU)
sophisticated cyber-physical systems by high performance computing (HPC) parameters are optimized to the individual
(CPS) monitor and control the physical allow manufacturers to combine their own driver’s profile to increase the energy
environment to improve performance and data with data from external cloud-based efficiency of the vehicle.
safety. Localized sensing helps identify environments, for example to combine
issues with machinery performance their internal vehicle information with data Prescriptive analytics
and reliability, while communication on government emission limits. Potential issues are identified early and
technologies send machines instructions the right suggestions are executed thanks
for the next bespoke assembly. Internet of Things to the predictive analytics that analyze
Part of the Internet of Things (IoT), vehicles vehicle diagnostics in real time and the
Distributed analytics are contributing to a picture of traffic flow prescriptive analytics that suggest
Behind the scenes streaming analytics and and weather maps. Information coming maintenance options and their likely
HPC analyze millions of events in real time, from them is combined with intelligence outcomes. Vehicle makers use these
with distributed analytics in combination gleaned from social media, meteorologists suggestions within the extended services
with HPC supporting vital forensic analysis and a wealth of other sources to create they offer vehicle owners, who can select
after an incident is detected. an intelligent traffic system that warns which options they want to take. These
all drivers of adverse traffic or weather services ensure any potential problems are
Embedded sensors conditions. The IoT also combines the identified and fixed before they escalate.
Embedded sensors within the inner connected vehicle with, for example, the
workings of the vehicle constantly stream connected home from where in-vehicle Self-adaptive security
billions of pieces of information back to heating or air conditioning and more can As the threat of cybercrime increases,
its maker and data subscribers. This vast be controlled. self-adaptive security looks for evidence
amount of data needs to be managed and of specific suspicious behaviors to help
processed to provide invaluable insight. Machine learning vehicle makers anticipate threats.
Machine learning ensures the vehicle
Gamification takes advantage of new situations to Vehicle makers manage their data and
Learner drivers are leveraging gamification enhance safety and performance. These services securely in their private clouds.
(application of game playing elements technologies are also being used in the Dynamic access control ensures owners
to other activities) to experience real life specific engine components to improve and employees have access to the
driving scenarios. It provides the real life performance and reduce emissions. information and systems they need to
simulations that enable them to learn to access, but only when they need it.
manage diverse situations on real roads. Machine-to-machine
Vehicle-to-vehicle and vehicle-to- Sentiment analytics
Gesture recognition infrastructure communication based on Vehicle makers have been employing
Inside the vehicle gesture recognition machine-to-machine (M2M) technology social media and social network analytics
plays an important role in ensuring safety allow vehicles – and their passengers to understand general customer needs for
in the connected vehicle. For example, a – to interact with each other and the some time. This allows them to sharpen
driver can use gestures to signal to the surrounding environment. A vehicle might their insight on trends in color or feature
satnav to locate the nearest gas station or automatically alert the vehicle behind that preferences, for example, and gather
charging point. Hand-gesture based user it's about to park up or receive a warning intelligence on how customers view their
interfaces (UIs) in vehicles can lower visual from traffic lights that they're about to brand. An advanced view of negative
and cognitive distraction, and can improve turn red, for instance. Equally passengers sentiment provided by sentiment analytics
safety and comfort. travelling together but in separate vehicles ensures that they're prepared before any
can keep in contact, so they know exactly potentially reputation-damaging waves hit.
Haptic technologies where each other is and when they’re
Wearable haptic technologies allow buyers about to make a turning.
to open the door, feel how the controls

48 #AscentLookOut
Automotive

Streaming analytics a vehicle. Buyers want to know which sporting wearables view a new design
Vehicle makers are using streaming type of steering wheel would best suit before even building a prototype. Workers
analytics to analyze geo-location their driving style, the difference between and maintenance engineers in the
information on the fly in real time. This the diverse pedal types and more. Virtual production plant use digital glasses to gain
allows them to offer fleet owners a service assistants that can make themselves access to specific requirements for the
that provides a comprehensive, up-to-the- available anywhere and at any time help to vehicle they’re currently assembling or
minute view on the location of all their provide the answers. They’re even popping machine they’re currently fixing hands-free.
assets and enables insurance premium and up in dealerships, helping to excite potential In addition, wearable wristbands worn by
‘Pay as you Drive’ calculations. buyers around new features and models. drivers and passengers can communicate
with the vehicle they’re in.
Virtual assistants Wearable computing
There are so many options available and so This technology is enhancing design
many choices to make when customizing and manufacturing processes. Engineers

Key Enablers in Automotive


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High performance
3D printing computing

5G networks Internet of Things

Advanced data
Machine learning
visualization

Augmented reality Machine-to-machine

Near field
Autonomous vehicles
communication

Cloud Service
Prescriptive analytics
Integration

Cyber-physical systems Self-adaptive security

Distributed analytics Sentiment analytics

Embedded sensors Streaming analytics

Gamification Virtual assistants

Gesture recognition Wearable computing

Haptic technologies

Ascent Look Out 49


Market views

Banking

$
FinTechs disaggregating banking value Machine learning will disrupt 40% of
chain banking roles
Banks offering banking and non- FinTechs investing $12 billion in
banking products banking tech innovations
Programmable APIs key to embedding Business model shifted to customer
new products 360° personalized banking
11 top investment banks in Blockchain
Cyber insecurity a threat to business
proof of concept

Key Market Challenges

Customer concierge services that help with


everything from organizing loans to
information they needed will soon be gone.
Proprietary information is now being put to
Experience booking theatre tickets or counselling. To good use; the vital intelligence derived from
deliver these highly personalized services it now available at their fingertips, through
effectively, banks need customers to share specialist treasury apps, for example.
People today are accustomed to personal information above and beyond
instant, accessible, intuitive, informative transactional and credit profiles. This plays into the trend that sees
and engaging experiences on their treasurers’ role shift from ‘control’ to
smartphones – and they expect banks As mobile transactions rise, Retail banks ‘predict’, driven by increased efforts from
to deliver similarly user-centric services. are cutting branch numbers. In the corporates to repatriate cash through
This means that consumers want to be UK, for example, branch numbers are centralization of the corporate’s financial
able to pay everywhere and anytime for expected to drop from 8,000 in 2015 activities. Regulations such as SEPA and
any purpose. In other words, they expect to 5,200 by 2020, and 3,400 by 2025. Basel III are key enablers for this trend
payment services to fit their personal Banks are, however, investing in making and technology has risen to the challenge
lifestyle. With a growing percentage of their remaining branches more appealing through virtual account solutions. As
Retail banking payment transactions and part of a true omni-channel banking centralization makes treasury easier, the
across developed countries initiated from experience, delivering key added value treasurer has his hands free to think about
such devices, banks cannot ignore their that smartphones are hard pressed to the future.
customers’ expectations. replace. These future branch models will
include flagship branches, manned advice
Though banks were quick to launch centers, convenience service centers, full Business
their banking apps for their clients' service branches and fully automated Reinvention
smartphones, they were slow to deliver the remote branches. Face-to-face interaction
innovative services needed to tailor their will continue for complex or sensitive issues
payment services to fit their clients’ needs. such as investment advice, bankruptcy and
The political and regulatory agenda is
Other players (mostly from the Fintech bereavement, with in-home consultations
encouraging new entrants and increasing
community, but also Google and Apple) reemerging and bank tellers becoming
competition. Designed to make cross-
now dominate that market. Users are not personal financial consultants.
border payments more efficient and open
far from asking Siri or Google Now about
up the payments market to new entrants,
their bank account balance. They only SME, Commercial and Corporate banking
the European Commission’s second
need to declare their bank accounts – just and Financial Markets, meanwhile, are
Payment Services Directive (PSD2), for
like any other messaging account – in their increasingly leveraging communications
example, will require banks to implement
smartphones to make it happen. technologies to enrich their remote
secure APIs to make account transactions
interactions with customers. Customers
and data available to third parties (Access
Customers also expect their banking expect to be able to interact seamlessly
to the Account or XS2A). Retail banks that
services to bring tangible benefit to the across different devices and between the
don’t digitize rapidly may miss out on
way they organize their lives. Customers real and virtual worlds. Interactions will
transactional income as payments pass
with impairments, in particular, appreciate remain relatively specialized in each sub-
by unseen; those that invest aggressively
simple and straightforward solutions that vertical – particularly Financial Markets.
in digital transformation can open new
raise their productivity and satisfaction.
revenue streams by becoming the
For Commercial and Corporate banking,
reference aggregator or end-to-end service
In response, banks are starting to offer the days where relationship managers
provider for payments, account information
new value-added services on top of had to search through a multitude of
and value-added services.
bank accounts, such as personal lifestyle independent desktop apps to find the

50 #AscentLookOut

Banking

‘‘With all their ‘know your customer’ procedures


and digital banking efforts, Retail banks are ideally
placed to provide the trusted digital identity
frameworks that are vital to the digital economy.’’
Kuldip Chiheru Michael Davison
Global Financial Industry Principal,
Services - Strategic Financial Services
GTM Head

Simultaneously, new digital-only players would be developed as entirely new vertical banking and credit risk management, will
are already disrupting the Retail banking technology stacks. grow as strategic lines of business for new
market. These challenger banks are entrants.
expected to take 15 percent of prime With all their ‘know your customer’
personal and business accounts. One of procedures and digital banking efforts,
their key success factors is their more Retail banks are also ideally placed Operational
convenient digital interfaces – such as to provide the trusted digital identity Excellence
‘push of a button’ account opening and frameworks that are vital to the digital
management, possibly even across regions. economy. Instead of storing their
As for non-bank competition, these Fintech customers’ personal and financial data
With no legacy infrastructure, new
players are native digital innovators and with the risks that this data might be
challenger banks are more agile and
will push banks to their limits in an attempt stolen, companies and governments
have significantly lower operating costs.
to keep up with their pace. We have yet to alike would contact the bank to get that
Digital-only banks, for example, expect a
see how traditional banks will react to the data. This would see banks compete with
cost-to-income ratio of below 30 percent
competition. They can choose to compete, the technology players, but they may be
– substantially lower than traditional retail
collaborate or buy, but the XS2A regulation helped by local regulations that would
banks’ 40 to 60 percent. Inefficiencies
means dismissing them is no longer an prefer relying on local trusted partners.
mean the cost of regulation, for example,
option. Banks in the Nordics already play a key role
is now equivalent to between three and
in digital identity management.
five percent of return on equity. Capital
Incumbents still have very old-style
provision regulations in particular have
service provision philosophies, with some Connected data ecosystems will enable
made some lines of business unprofitable.
exceptions, but if they're to thrive they may other new personalized products
have to change how business is conducted, and services. The connected home,
Retail and Corporate banking are
how innovation is conducted and what for example, will allow banks to offer
leveraging digital technologies to make
types of service they offer their customers. customers loans without the customer
straight through transaction processing
As they strive to transform their business having to fill in long forms: the home
and exception processing more efficient.
models and keep pace with new players, ecosystem provides all the details the
Digital is also helping to make account
open innovation labs are providing the bank needs about the applicant and the
opening faster, more secure and more
ideal environment for banks to create new property. Banks have already taken a step
responsive. Digitized account servicing,
digital services. New ideas and concepts in this direction by forming a consortium
meanwhile, increases transparency and
from new partners accelerate banks’ ability to share ‘know your customer’ risk-scoring
reduces cost by providing customers with
to respond to the demands of now. Open data using the SWIFT payments network.
all the tools and information they need to
innovation labs allow banks to bring all the Such consortia are vital for ensuring such
manage their own accounts.
digital skills they need under one roof in data comes only from secure and reliable
exchange for facilities, a network or even sources.
Transactional digital services companies
some financial investment.
are prime targets for acquisition. Retail
Future banking business models around
banks are employing high volume services
Banks might even consider creating new investment and capital will be focused
such as international, forex, digital currency
offerings that reflect alternative credit on the front office and include product
instruments and others, while initially
products – such as crowdfunding, peer-to- development and customer acquisition,
retaining equivalent legacy capabilities.
peer, private equity and digital currency with industrial-scale partners or utilities
Banks are also selectively acquiring or
– or develop new strategic lines of business providing back office non-core processes.
investing in payment services providers.
focused on personal concierge services, Major bank’s utility services, including
for example. These value-added services customer on-boarding, transactional

Ascent Look Out 51


Banking

The European Payment Service Directive the volume and granularity of regulatory do shape up and deliver very high levels
dictated that transfers should not take reporting increased. Billions of euros of security, data protection and, above all,
longer than one business day at a time in fines have already been applied by professional integrity will be rewarded with
when banks were trying to optimize regulators and government agencies. In continued loyalty from existing customers
holding cash. Recent low, or even negative, response, financial institutions have shut and an influx of disgruntled customers
interest rates are a disincentive for parking down or sold high risk business activities, from other financial institutions.
money or bank-to-bank investments. Banks increased compliance staff numbers,
are instead using the cash for providing punished malpractice and communicated Some banks are even abandoning
industry or consumer credits. the importance of professional values and strong authentication; reverting back
behavior. to usernames and passwords rather
Around the globe, in the UK payment than one-time passwords or multi-factor
processing schemes (including BACS, Some banks have responded positively authentication when the purpose of
CHAPS and Faster Payments) have been to the increased regulation, seeing it as authentication allows it. In the background
ring-fenced and reconstituted as public a source of competitive advantage. By profiling tools provide additional security
limited companies following Payment creating a single view of the truth, for measures that bind a device profile to a
System Regulator (PSR) regulatory example, they can respond to regulators, username.
intervention. In Continental Europe, local the CEO and business units in real time,
schemes owned by banks are fighting for reducing costs and using data as an Public pressure demanding transparency,
their survival against international payment asset for better marketing, new product sustainability and ecologic commitment
schemes, primarily Visa and MasterCard. In development and reduced capital from banks will increase, leading them to
China and Brazil, dominant local schemes requirements. integrate these concerns in their processes
(China Union Pay, Claro) are partly or and review their investment and financing
completely owned by the state. In Africa Simultaneously, banks also have to deal strategies.
and some parts of Asia, new payment with a security environment that has
schemes based on mobile money are turned markedly more hostile and shows
emerging. every sign of continuing to be so. Today
criminals are targeting banks as much as
Corporate banks are aiming to automate they're targeting consumers directly. There
90 percent of credit and saving operations are more and more attacks aiming at ATMs,
with straight through processing, with the for example. Some countries have suffered
remaining 10 percent covering complex enormous breaches with high volumes
exceptions. In Investment banking of credit cards stolen, such as the recent
operations, Securities Management is being attack on Experian. To guard against the
progressively digitized. reputational damage seen with every major
data breach, banks are developing a highly
The emergence of Blockchain-based collaborative security communications
business process proof of concepts for infrastructure aimed at countering and
complex multi-lateral financial market neutralizing organized cybercrime and
transactions point to a radical consolidation interference from rogue state-sponsored
in the clearing and settlement value chain cyber warfare.
bringing the benefits of real-time clearing
and settlement, all at a fraction of current It follows that personal, commercial,
cost. However, scalability issues remain to corporate and institutional customers
be solved at present. demand the very highest security
standards and practice from their banks to
protect sensitive personal and commercial
Trust and data. Security should be at the level of the
Compliance bank’s systems in their communication
with customer’s personal digital devices.
Banks that don’t shape up will lose their
Financial institutions have seen regulatory client’s trust and, consequently, a lot of
standards, risk management and business and they can also expect to be
compliance tightened significantly, with subject to punitive damages. Banks that

52 #AscentLookOut

Banking

Mainstream
Early adoption
Adolescent
Emerging

Cloud Service Integration

Blockchain Virtual
smart contracts assistants
Edge computing

Internet of Programmable open APIs Advanced data


Things visualization
Machine learning

Advanced Next Gen digital personal financial management


quantitative analytics Augmented reality
High performance computing Web-scale computing
Semantic technologies
Streaming analytics Wearable
computing Distributed
Hybrid cloud Digital Wallet analytics
Context-rich systems
DevOps Software-defined technologies

Self-adaptive security
Beacons Robotics
Sentiment analytics
2016 2017 2018 2019+
© Atos 2016. All rights reserved.

Key Enablers hands of the corporate treasurer, who is


employing them to optimize cash flow
accessibility needs that customer may
have.
Advanced data visualization (amongst other things) in real time within
Kiosks found within the next generation a dynamic environment of ever-changing Blockchain
of branches incorporate interactive videos rates. Blockchain will be the driver for innovation
and remote digital branches brought in new, permissioned private, public-ledger
to life by immersive 3D visualization Augmented reality asset products that intrinsically embed
technologies. The images produced by Smart glasses – with their augmented enhanced security. In addition, it might
360° cameras help the support team reality capabilities – keep customers significantly transform the way regulation
engage with the customer, who may be connected and informed wherever they and auditing is performed. Open ledger
looking to buy product and services as well are. By blurring real and virtual world they businesses are likely to develop faster
as seek help or access concierge services. allow customers to engage with their in the peer-to-peer payments areas with
bank and access bank services within transactions being more bi-lateral and
Advanced quantitative analytics the context of their current environment, simpler.
Advanced quantitative analytics are talking face-to-face with an intelligent avatar
redefining relationships in Commercial sat alongside them in their living room, for Cloud Service Integration
and Corporate banking. Delivered to example. Wholesale and Retail banks are migrating
relationship managers' desktops, 3D to the cloud on a large scale for all their
visualization technologies provide an Beacons non-financial support functions, including
end-to-end view of financial data, from In the branch beacons allow an appropriate marketing, customer management, human
where the manager can drill down to member of the bank branch staff to resources and risk, to reduce capital
find the detailed information they require. discreetly see when a priority customer requirement and increase agility. Cloud
These advanced tools are also now in the walks into the bank and identify any Service Integration is playing a key role

Ascent Look Out 53


Banking

in helping banks combine operational Hybrid cloud Robotics


processes and technology platforms. Hybrid cloud has grown in popularity with Cognitive machine learning, natural
Combining business processes in the cloud banks finding its flexibility, cost, capacity, language processing and robotics
not only helps cut cost for payments, loans, security and performance appealing. also automate middle office contract
credit checking and more, it also enables They're starting to invest in ever larger administration and customer, with
the next generation of automation that scale migrations to cloud programs, which intervention from highly skilled humans
improves efficiency and cuts cost further we anticipate will dominate the next five to only required for complex exception
still. seven years. management. The Bank of Tokyo-
Mitsubishi UFJ introduced its first robot
Context-rich systems Internet of Things member of staff at its flagship Tokyo outlet:
The customer expects their dialog with the Wearable devices are just one example of a humanoid customer service robot to
bank to be relevant and engaging. Context- the vast array of data sources that together respond to customer questions.
rich systems evolve the conversation make up the Internet of Things (IoT). By
based on anything from the customer’s combining data from these sensors with Self-adaptive security
current products and any chancing data stored in customer and product Banks are taking a proactive security
circumstances discussed during the databases, insight from social media and approach to preventing cyberattacks.
dialogue to local or even seasonal trends. other sources, IoT provides banks with an Trusted probes are being deployed
These systems consolidate intelligence opportunity to understand their customers within secure environments to look for
from diverse systems to proactively more deeply than ever before. That evidence of specific suspicious behaviors.
anticipate each user’s individual needs. better understanding of each customer’s Self-adaptive security helps institutions
behaviors and desires means they can anticipate threats. Behind the scenes
DevOps respond to customer needs more rapidly. streaming analytics and high performance
Combining software-defined technologies computing analyze millions of events in
with DevOps development processes Machine learning real time.
will allow banks to swiftly embrace next- Assisted Personal Financial management
generation platforms and delivery options will soon, for the first time, be within reach Semantic technologies
– and progressively move to web-scale of the ordinary personal banking customer. Enterprise-strength semantic technologies
computing – without abandoning current Applications on smartphones and are helping banks to integrate the silos of
infrastructure investments. wearables that provide the intelligent, user- financial and operational risk management,
centric dialogue they need to help them internal audit, fraud, forensics, training
Digital wallets work through their financial challenges and compliance management. Behind
Embedded in customers' smartphones, – however great or small – will become the scenes the semantic technologies
digital wallets are becoming increasingly available as early as 2016, be widespread are enabling these intelligent systems to
popular. Their contactless technology by 2018 and mature by 2020. Behind them understand the relationships within and
allows banks to offer their customers an advanced machine learning algorithms across data. Banks and payment services
extremely convenient payment solution. such as deep learning interpret their providers are less likely to suffer at the
needs and aspirations. More sophisticated hands of fraudsters, hackers and, as a
Distributed analytics Fraud and Financial Crime solutions are consequence, their regulators.
Distributed analytics in combination with using machine learning approaches to
high performance computing supports vital detect fraud events with a higher degree Sentiment analytics
forensic analysis after any cybersecurity of accuracy and enable action to be taken Social media is one of the streams
incident, helping to quickly identify where more rapidly to limit losses. feeding into the data lakes in which
the attack started, who is behind it and how financial institutions can find the key
it was carried out. Next-Generation personal financial information needed to build personalized
management products and services for their customers.
Edge computing Leading Personal Financial Management Sentiment analytics are helping them
Banks are increasingly taking advantage (PFM) solutions now go beyond simply manage their reputation and adapts their
of a viable ecosystem of compute, storage aggregating, analyzing and presenting data communications.
and networking services made available on a customer’s personal financial product
through edge computing. Processing holdings. In the EU, PSD2 will accelerate Software-defined technologies
critical data near to its source brings adoption of PFM solutions in 2016-18. Flexible software-defined technologies
affordable scale to their computationally- have transformed operations at many
intensive analytics. Programmable open APIs levels. For example, IT infrastructure, such
Banks’ legacy IT estates are too complex as data centers and network resources and
High performance computing and expensive to replace in total. Paths security can be optimized and delivered as
Corporate and Investment banks are to modernization therefore now include a service. These virtualized environments
leveraging high performance computing deploying Application Programming have accelerated time for market for new
and deep predictive analytics of massive Interfaces (APIs) to enable data to be offerings and new business models.
datasets to optimize performance. While made available for many different purposes
structurally little has changed, quantitative in a standardized manner, reducing Streaming analytics
skills have become even more highly development time and cost and enabling Wealth managers and investments banks
prized as interpreting the analysis becomes improved operational agility. are also extending their leadership in the
both more critical and more complex. analytics space, particularly around real-

54 #AscentLookOut

Banking

time streaming analytics. The spread of productive discussions with appropriately customers through their health tracker
this type of high performance computing qualified customer advisors. might reward them for improving their
to trading is already leading to an increase fitness levels.
in margins. Wearable computing
The explosion of sensory data from Web-scale computing
Virtual assistants personal wearables, amongst other things, Banks are progressing toward web-
Banks are leveraging virtual assistants is driving the creation of new value chains. scale computing with its highly scalable,
to enable customers to have intelligent These very personal devices do more inexpensive open source-based hardware,
dialogue with the solution; understand and than simply open up new insight into integrated computer resources and
assess options available to them; obtain customers; they provide a new channel for self-healing capabilities. Its operational
in-context information from trusted third banks to engage with customers in exciting simplicity allows departments to be more
party sources in real time and facilitate ways. For instance, banks engaging with agile while optimizing investments.

Key Enablers in Banking


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Advanced data
visualization Internet of Things

Advanced quantitative
analytics Machine learning

Next Gen digital personal


Augmented reality
financial management

Programmable open
Beacons
APIs

Blockchain Robotics

Cloud Service
Self-adaptive security
Integration

Context-rich systems Semantic technologies

DevOps Sentiment analytics

Digital wallets Software-defined


technologies

Distributed analytics Streaming analytics

Edge computing Virtual assistants

High performance
Wearable computing
computing

Hybrid cloud Web-scale computing

Ascent Look Out 55


Market views

Chemicals

Future growth mainly from developing Global markets to grow 20% in next 20
markets years

Raw material costs are volatile Asian players will own 2/3 of the
market by 2030
Growing health & environmental Nearly 60% more EU regulations than
concerns in 2008
Chemical plants vulnerable to cyber- Average chemical company spends
attacks 8% of sales on investments

Key Market Challenges

Customer increase loyalty and repeat business. developing markets, meanwhile, companies
are investing in new plants and research
Experience Customer experience, on the other hand, facilities close to the local market. Very
is not conventionally a driver for traditional strong competitor knowledge is essential
bulk chemicals such as salt or chlorine for enabling an agile business response to
In today’s increasingly competitive since the properties of these products challenges in both mature and emerging
landscape, chemical companies of all types cannot be changed. Here, delivering a markets.
will benefit from a better understanding of great (primarily B2B) customer experience
the needs, desires and behaviors of their is about delivering a great service against Some companies are operating a variety
diverse customers: both B2C and B2B, and the lowest possible price. This is particularly of business models around the globe, with
including wholesalers, distributors and true when it comes to providing timely each model specifically tailored to its own
downstream manufacturers. access to specifics around the chemical specific market. Choice of model is critical
product: its properties and approved usage, in each region as it impacts future growth
Take, for example, the specialty flavor, safe handling, potential hazards and more. potential and profitability. In some regions
perfume and food additive chemical This information helps researchers and their business model may be aligned to
companies that aim to delight the senses of decision-makers identify materials that low-cost products that cater for the mass
the end user. To do this they must connect might improve how their own products market while in others it may be aligned to
directly with the consumer to understand are manufactured or even facilitate the specialist products, for example.
how molecular level changes result in taste development of new products.
or visual sensations. China is still the largest growing bulk
chemicals market in the world. A slowdown
Companies that already touch the Business in the market, however, has led to
consumer directly – for example paint Reinvention overcapacity, making for a tough market
manufacturers – would benefit from over the next few years. But despite an
deepening those relationships. After all, ailing economy and slowing manufacturing
new opportunities in the B2B2C space are industry – and the tragic loss of life
increasing their competitive advantage and When commoditization erodes profitability, following the explosion of a chemical
boosting their share of revenue. bulk chemical companies customarily warehouse in Tianjin – Western companies
focus on building market leadership continue to see China as the key market in
Some companies are even establishing through acquisitions and tightening Asia.
themselves as a brand for end customers. their core business through divestments.
Their modern virtual and physical stores Specialty chemicals companies, on the In a globalized world, where the pace of
offer a rich, personalized shopping other hand, invest significantly (more than change is ever increasing, reducing product
experience that engages and excites the the three percent industry average) in R&D innovation time-to-market is critical to
consumer around the brand. to develop new products and to better sustaining profitability. Companies cannot
rationalize an often complex portfolio of afford to waste money and resources on
These consumers expect a seamless and products that is costly to maintain on a innovations that are not going to fly; they
integrated experience across all channels, global scale. need a rapid return on their investments.
whether for pricing, return policies, stock This requires tighter management of new
availability or anything else. Ensuring a Globalization, meanwhile, continues to product ideation, with stronger moderation
virtual brand experience aligned with the drive restructuring in mature markets, early in the product lifecycle to simplify
in-store brand experience and standardized where business models, organizational process complexity and separate the wheat
across their online presence is important structures and information systems are from the chaff.
for building trust, which – in turn – helps evolving to align with the new structures. In

56 #AscentLookOut
Chemicals

‘‘Some companies are even establishing themselves as a brand for


end customers. Their modern virtual and physical stores offer a rich,
personalized shopping experience that engages and excites the
consumer around the brand.’’
Marcus Muehling
Vice President Global
Market Leader
Chemicals, Metals &
Mining

As chemical companies increase the


amount of data they hold on their
Chemical companies are benefitting from
integrating key areas of their business,
Trust and
customers, they will explore how they including product and service innovation,
Compliance
could leverage these ever-growing volumes manufacturing operations excellence,
to open up new revenue streams. Insight global supply chain management and
borne out of the data will help them tailor customer loyalty and brand equity. Regulatory pressure and consumer
their new services to provide optimal value Integrated Manufacturing solutions that expectations are making compliance
to their customers and buy their loyalty. enable smooth integration across the entire and transparency a mandatory ‘license-
They might leverage their knowledge on value chain (from shop floor to top floor) to-operate’ requirement for chemical
the approved usage, safe handling and will soon combine production planning companies. They’re also driving
potential hazards of their chemical to offer (ERP) and Manufacturing Execution improvements in a number of areas
services that support hazardous materials Systems (MES). including health and safety, traceability
handling, for example. and carbon footprint. Near real-time
These solutions will become the key traceability over the entire supply chain, for
enabler in companies’ everyday toolkit. example, is critical for accelerating chemical
Operational Until recently only the largest enterprises companies’ reaction to any unanticipated
Excellence have been actively striving to reach this event.
goal. While it does appear on the agendas
of smaller and more specialist chemical Both product and production facilities must
companies, they have yet to give it their full comply with the local regulations in each
Bulk chemical companies traditionally country, which may include environmental
attention.
invest in larger and more efficient restrictions, health and security, waste
manufacturing to drive down the cost of elimination and toxicity issues. These must
As companies rationalize their physical
production when margins begin to shrink. be complied with both when production is
assets – including manufacturing facilities
As well as driving innovation to enable centralized and the product is distributed
and vehicles – to reduce cost, proactive
more efficient and flexible manufacturing, globally and when production facilities
maintenance programs that leverage
leading companies are driving down are local – when it becomes difficult to
predictive maintenance and prescriptive
that cost by establishing trust and a standardize in terms of raw material,
analytics are reducing outages and
common language for sharing best machines and processes.
maximizing the value derived from assets.
practice effectively between their global
Potential issues are identified early so
manufacturing plants. Vital for helping build trust with consumers,
remedial action can be taken before they
impact production. sustainability and carbon emissions have
The average chemical company spends become increasingly important in the
eight percent of sales on investments such chemicals industry. Until recently, only
Remote asset monitoring is also playing a
as new plants in the continual struggle Western companies have been actively
role in lowering cost. Chemical companies
to reduce the cost of production. The striving to reduce emissions. Sustainability
can ensure assets are safe and operating
challenge is to safely design a much larger is now rising up the agenda of BRIC
at peak performance without dispatching
factory that will perform to specification. companies.
senior personnel on costly excursions
Mergers and demergers have resulted
across the globe.
in a wealth of legacy systems. These As well as increasing energy-efficiency
need supply chains and technologies to within processes, chemical companies
be integrated or rationalized. Transport are increasingly turning to cleaner
management, energy expenditure, capacity technologies and recycling to help reduce
bottle-necks are all possible targets. their emissions. By reducing their overall

Ascent Look Out 57


Chemicals

energy and raw material utilization and risk of it being lost or destroyed by mistake
waste generation, they're combining their increases – especially in mergers and
desire to be sustainable with their desire to acquisitions.
increase margins.

Proven data privacy protection tops


process manufacturing companies’ IT
agenda. But managing large amounts
of data securely is difficult – particularly
in the wake of mergers and demergers,
which have left a wealth of diverse legacy
systems.

Security governance may be virtually


impossible when there are multiple diverse
security policies in operation. This is
made all the more difficult when chemical
companies move into markets around
the globe where corruption is a reality.
To prevent data leaks, companies need
to implement data security consistently
across the company, rationalizing security
policies.

Data and information management is


particularly important when you consider
that the life of information in the chemical
industry is long. Details of why key
decisions were taken or research projects
dropped or adopted needs to keep in case
of legal cases decades into the future when
values are different. As more information
is kept digitally rather than on paper, the

58 #AscentLookOut
Chemicals

Mainstream
Early adoption
Adolescent
Emerging

Cloud Service Integration

Prescriptive analytics
Advanced data visualization

Internet of
Things
Distributed analytics
Innovation
Industry 4.0 Value Webs
technologies Edge
High performance computing
Streaming computing
analytics 3D printing Self-adaptive security
Wearable
computing Pattern-matching
Robotics technologies Intelligence amplification

Augmented reality
Mobile and social
media apps
Sentiment analytics

2016 2017 2018 2019+


© Atos 2016. All rights reserved.

Key Enablers customer-facing technologies to engage


customers more deeply, while enhancing
and acquisitions. In the future trusted
information brokers will act as a central
customer service. Specialist paint stores verification service to avoid the need for
3D printing
have deployed digital walls based on individual registration and authentication of
With plants located around the world, 3D
augmented reality technologies. These each cloud service.
printing technologies reduce downtime
allow customers to mix their own colors
and shipping costs. Bespoke spare parts
before ordering them. Distributed analytics
can be quickly printed out whenever and
In specialty companies, the drive to
wherever they're required.
Cloud Service Integration understand end effects is long established.
Cloud computing is improving agility The understanding of perception of taste,
Advanced data visualization
across many parts of the business: from smell and visual impact, for example, is
Plant managers and shop-floor specialists
idea and product lifecycle management improved by more data and analytics.
rely on the real-time intelligence provided
to manufacturing and supply chain Distributed analytics offers companies a
by streaming analytics to connect the dots
management. With more and more great opportunity to derive intelligence on
between what’s happening on the floor
systems now provided as a hosted service, consumer preference from across multiple
and ever-changing operational, strategic
Cloud Service Integration reduces time to diverse sources faster and more efficiently.
or customer requirements. To accelerate
market for new innovations by connecting
decision-making, 3D visualization
cloud-based services. Edge computing
technologies help workers interpret the
Now that product and manufacturing IT
intelligence in next to no time.
Cloud-based federated identity services systems no longer need to be located
simplify the extension of identity and within the plant, remote or temporary
Augmented reality access management across hosted plants can be deployed rapidly. Companies
An increasing number of specialty chemical systems, particularly diverse systems are then employing edge computing to
companies will adopt a wide variety of brought together by company mergers quickly ramp up compute, storage and

Ascent Look Out 59


Chemicals

networking services locally whenever they brings the smart factory to life. Senior information, systems and locations they
need them – ensuring computationally- management can automatically tap into need to access, but only when they need it.
intensive smart factory initiatives are social media, for example, to understand
scalable. current customer preferences and Sentiment analytics
behaviors; then communicate these needs Specialty chemical companies have moved
High performance computing to the shop floor where production is up the value chain to where they're now
Computational chemistry suggests aligned just-in-time. closer to the end customer. Social media
possible options when developing and network analytics is helping them
new materials that require specific Mobile and social media app understand general customer behaviors,
performance and properties, safety and Chemical companies have moved toward trends and desires. Its sentiment analytics
toxicity characteristics. Behind the scenes offering end customers a full range of allows them to not only quickly identify
advanced analytics combined with high services around their products, such as new trends, but also respond to any
performance computing rapidly analyzes decorating services or gardening expertise. potentially reputation-damaging comments
millions of possibilities. Mobile and social media apps supporting before they cause any harm.
products sold to the end consumer help
Industry 4.0 technologies companies gather deeper intelligence on Streaming analytics
On the factory floor, Industry 4.0 individual customers. An app that provides Industrial data analytics include the
technologies (including the Internet of information on different types of weed streaming analytics that are helping
Things) are enabling the creation of smart provides insight on which types of weed companies to optimize production
factories where plant management is killer an individual customer might be operations and planning along the value
smarter and more virtual. They're not only looking for when they identify themselves chain.
improving agility, but also helping workers in either a physical or online store.
– from senior management to machine Wearable computing
operators – to make better decisions. Geo- Pattern-matching technologies Across the plant technicians access
location technologies and radio frequency Intelligence derived from the vast volumes information hands-free through modern
identification (RFID) tags, sensors allow of data now available allows chemical wearables, such as glasses, that have been
machinery to perceive the world around companies to make informed decisions made safe from the risk of explosions.
them. around what customers want. Pattern- Augmented reality relays vital information
matching technologies help them discover – such as step-by-step instructions on
Innovation Value Webs the patterns and trends across their many maintenance or configuration requirements
Open innovation allows the chemical products and their end effects that may – from the cloud to the paperless worker’s
industry to gain value from their wider bring new opportunities to innovate and line of sight. Embedded cameras relay
partner ecosystem, including the gain competitive advantage. pictures to the cloud, allowing specialist
collaborative joint ventures that are now engineers to offer their expert support from
embracing diverse industries. Innovation Prescriptive analytics remote locations.
value webs with their new social business Intelligent systems then employ
tools are facilitating open and nonlinear prescriptive analytics to determine
innovation processes amongst this wider configuration or maintenance
ecosystem. requirements, prescribing a course of
action that will both ensure optimal
Intelligence amplification production levels and identify failing parts
Decision-making has also been greatly that need to be serviced or replaced long
enhanced through intelligence before they threaten to cause downtime.
amplification, which requires workers to This type of condition-based maintenance
interpret and react to the broader context helps companies save on labor and service
of intelligence derived through advanced costs, reduce unscheduled downtime and
analytics and machine learning. improve operational efficiency.

Computer-generated analytics might, Robotics


for example, highlight an increase in the Advanced robotics are boosting
demand for black and white photographic productivity and reducing labor cost. A
inks. Only a human would realize if this new breed of robots work as assistants
were a just a temporary rise, for example in a shared workspace, taking dangerous
one connected to an international or precision tasks away from human
photography competition. operators.

Internet of Things Self-adaptive security


As the number of connected assets Cybersecurity and the protection of
and devices rises, so does the number intellectual property around both products
of connected systems and people. The and processes is a growing concern.
Internet of Things (IoT) providing the The dynamic access control provided by
real-time connections between processes, self-adaptive security ensures employees
applications, machines and people that and partners only have access to the

60 #AscentLookOut
Chemicals

Key Enablers in Chemicals

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3D printing Internet of Things

Advanced data Mobile and social media


visualization apps

Pattern-matching
Augmented reality
technologies
Cloud Service
Prescriptive analytics
Integration

Distributed analytics Robotics

Edge computing Self-adaptive security

High performance
Sentiment analytics
computing

Industry 4.0 Streaming analytics


technologies

Innovation Value Webs Wearable computing

Intelligence
amplification

Ascent Look Out 61


Market views

Cities

Cities are becoming smarter Large cities contribute 85% of the GDP

Quality of citizen life is improving 2% annual growth in urban


populations
There's no one size fits all approach to More than 88 smart cities across the
cities world by 2025
Annual investment in smart cities in
World's population growing, now $
excess of $1bn
greater than 7 billion

Key Market Challenges

Customer expect city services to be on par with


those offered by the commercial world:
Business models are evolving to allow cities
to take advantage of new opportunities
Experience personalized, empowering, high-quality and and counteract new threats as they
convenient services that are accessible any emerge. What will the growth of online
time, any place and on any device. retail mean for commercial centers such
Across the globe, cities are growing at as ‘Oxford Street’ in London, for example?
an unprecedented speed. According to Forward-thinking cities and local How long will these high rent, retail spaces
The World Health Organization, urban governments are investing in new services remain viable? And as driverless cars
populations already accounted for 54 that ensure businesses and citizens become available, services such as buses
percent of the global populations in 2014 are better informed, better connected or trains will become more cost effective
and will continue to grow at around two and able to take control of managing to run and far less dangerous, while traffic
percent each year over the coming years. their own situation. Examples include a management will be revolutionized.
single card that not only gives access
Our growing cities are facing dramatic to all city-wide services but also support Models based around multi-sided markets,
social, economic and environmental secure identification and communication for example, create significant value for
challenges. Increasing diversity, for alongside electronic tickets, an electronic government, businesses and citizens alike.
example, is intensifying pressure as purse and electronic signatures. These Delivered by the city’s partners – including
cities strive to increase integration while service improvements not only increase partners that provide waste, maintenance
sustaining individual communities’ cultural satisfaction in the short term; they’re the and parking services – they offer innovative,
identities. Aging populations, on the other first steps in long-term improvements that streamlined and personalized services
hand, are altering the workforce balance will create a more rewarding experience. while increasing efficiency and cutting cost.
and heightening the care burden.
At the heart of these models, local
To flourish, growing cities must attract Business governments must share relevant data
investment, generate employment, Reinvention with third-party partners, while bearing
promote sustainability, appeal to visitors in mind privacy rights. These partners,
and offer their citizens a better quality of in turn, build viable services based on
life – along with the effective leadership insight into citizens’ needs, desires and
needed to make it all happen. As the world’s Cities are undergoing a period of intense behaviors derived from that shared data in
business communities search for the best transformation, evolving into the Smart combination with their own intelligence.
new locations, cities are responding by Cities that allow city authorities to manage
enhancing their services and educational their municipal services more efficiently This multi-sided approach offers citizens
institutes. While their primary focus is and to create a city that is livable for all. A an opportunity to select the services they
on ensuring public safety, cities are also great opportunity for Europe; Smart Cities need and pay for their use as long as they
enhancing health and leisure facilities and are also an engine of growth. need them. Other services, those that are
addressing the traffic jams, overcrowding generally required, are paid for by the city.
and pollution to attract the suitably skilled The concept of a Smart City will itself be Investment in these services is based on
workforce that businesses need. revised, transforming the city into a digital their return against long-term tangible
platform that enables the development of goals such as CO2 reduction, improved air
Cities and local governments are adapting innovative services that have the potential quality or enhanced safety.
their services to meet the growing to transform the economy – fostering
expectations of today’s digitally-aware growth and creating of new jobs.
businesses and citizens. Surrounded by
technology throughout the day, they

62 #AscentLookOut
Cities

‘‘Smart Cities will transform the city into a digital platform that enables
the development of innovative services. These have the potential to
transform the economy – fostering growth and creating of new jobs.’’
Albert H. Seubers
Head of Global Strategy
IT in Cities

Operational development and local regulations make


cities an ideal environment for telecom
Connected city data, on the other hand,
delivers the single, holistic view of the
Excellence operators, ICT solution integrators and status of the city that will enable policy
other providers of key city services (such makers and government officials to
as electricity, water and infrastructures) to understand the impact of any decision they
City politics may reinvent themselves innovate. make. City governments are empowered
every four years or so, but below the to make the right decisions at the right
political façade sustainable changes are Open platforms are needed to ensure these time and better positioned to build the
taking place on an operational level. These ecosystems flourish. Cities must collaborate comprehensive business cases required
changes are helping local governments with the standard bodies that play an for effective investment, ensuring limited
continually improve how they provide their important role in spreading the reference budgets are stretched to their full potential.
services. architecture needed to ensure the
interoperability and portability of solutions.
Citizens expect their governments to be Trust and
as efficient as possible, while their own Local governments and cities must get Compliance
service level expectations continue to rise. any new services right first time. It doesn’t
Under increased pressure to ‘do more with matter whether they’re delivered in-house
less’, government organizations and cities or by third-party partners, there’s no room
The services cities provide are critical to
are continually searching for ways to drive for failure. Services, old as well as new, must
every single citizen: from fire police and
efficiencies in their operations. This might run 24/7. Long service interruptions and
emergency services to schools, libraries
include lowering maintenance efforts or wasted budgets will have an immediate
and waste management. To keep these
automating core processes. impact on citizens’ trust and satisfaction.
services safe, city governments must
protect them from an increasingly diverse
But the current lack of standards is But the city and citizen data that underpins
array of virtual and physical threats. These
impeding the development of Smart Cities. new services is increasingly complex:
need to be anticipated, appreciated and
Without standards, solutions enabling the some is owned by the government;
thwarted.
more efficient management of municipal other by third-parties, such as transport
services – including water management operators and garbage collection providers.
But it's not just services that need to be
and traffic management – cannot be Departmental information silos, at the
protected from increasingly diverse threats;
developed once for multiple cities. After all, very least, are now being joined up using
citizens, businesses and visitors expect to
for these solutions to flourish and reach approaches that deliver a step-change in
be protected too. The aftermath of tragic
the critical mass necessary to be profitable, service speed and efficiency while cutting
events such as 9/11, the Madrid bombings,
they need to be exported to other cities. service cost.
the UK bus bombing, Paris and Brussels
Open standards are needed for creating
highlighted the importance of ensuring
an interoperable market and accelerating Connected citizen data helps governments
people feel secure. Cities cannot flourish
innovation. derive the intelligence they need to truly
if they cannot attract investment, appeal
understand citizens’ behaviors and satisfy
to visitors and offer their citizens a better
A more open approach to innovation their needs and desires. At a more granular
quality of life.
is already generating new sources level, without a single holistic view of the
of income for both cities and their citizen and their family, local governments
Citizens also expect their data to
partners, supporting web entrepreneurs will struggle to deliver consistent, high
be protected. There's no room for
as they develop and showcase their quality and personalized citizen services
compromise. After all, trust is vital for
bright innovative ideas. The diversity across the numerous departments each
ensuring citizens connect with city
of city stakeholders, levels of regional citizen engages with.

Ascent Look Out 63


Cities

governments for the benefit of the whole.


Citizens’ data must only be employed to
provide better services and to support
targeted governance and enforcement.

As citizen data is increasingly shared across


departments and the wider ecosystem of
partners, cities and local governments must
ensure access is only granted to those
individuals who need it to perform their
duties. Information shared with third-parties
should be anonymized or pseudonymized
where appropriate.

Cities must also open up the information


they collect, creating the transparency that
will build trust. Citizens expect to be able
to check and correct that information and
benefit from sharing it.

Looking at the future, sustainability needs


to be high on every city’s agenda. Cities
must employ the growing volumes of
data available to understand how new
designs might impact CO2 levels and
drive up temperatures. But for tomorrow’s
smarter cities sustainability is not just
about protecting resources and the
environment, it's also about economic and
social sustainability – about protecting
investments and enhancing the lives and
well-being of citizens.

64 #AscentLookOut
Cities

Mainstream
5G networks Early adoption
Adolescent
Emerging

Internet of
Things Edge computing
Prescriptive analytics
Streaming
analytics Distributed
analytics 3D printing
Context-rich systems
Virtual assistants
Wireless power
Open Data/Economy
of Data Cyber-physical systems
API economy
Federated Augmented reality
identity
Peer-to-peer platforms
Mobile and social Sentiment analytics Autonomous
media apps vehicles
Wearable Near field
computing communication

2016 2017 2018 2019+


© Atos 2016. All rights reserved.

Key Enablers development of innovative services with


the potential to transform the economy.
Autonomous vehicles
Around the city, unmanned aerial vehicles
Smart cities are also engines of growth, (UAVs) – or drones as they're sometimes
3D printing
providing a platform that combines Open called – help not only with monitoring
City maintenance teams are taking
Data and the API economy (application neighborhoods for the presence of
advantage of 3D printing to give them
programming interface economy) upon pollutants, pests or disease carrying
timely access to any spare parts needed to
which new innovative applications can be insects, for example, but also with domestic
repair the city’s assets.
created. policing, environmental surveys and the
delivery of goods, among other things.
5G networks Adaptors are being created for the data
Once Telco operators have rolled out sources and sensor technologies that the In addition, drones provide an early
low power, extended range 5G networks city already has in place. These adaptors indication of the scale and potential impact
across cities, users will be able to take allow the data to be injected into a broker of any unexpected incidents, sending
advantage of economical unlimited data that offers standard APIs to allow anyone to photos of the scene and information on
bundles to access the information and consume real-time data. the quality of the surrounding atmosphere
services provided by both the city and its back to a command center. However,
commercial partners whenever they need Augmented reality in cities where firearm weapons are not
them. Hands-free access to vital information properly regulated, drones are susceptible
is provided through modern wearable to attack.
API economy devices, improving productivity and safety.
The IoT combined with advanced analytics Augmented reality provides step-by-step Context-rich systems
and Open Data policies led to a period instructions on equipment maintenance or Behind the scenes, context-rich systems
of intense transformation of cities into performance histories. combine intelligence from diverse systems
smart cities: a digital platform enabling the to proactively anticipate each visitor’s

Ascent Look Out 65


Cities

specific needs, allowing the assistant Internet of Things Peer-to-peer platforms


to suggest how they might spend their Data from the Smart City is combined Driven by real needs and reliant on ease-
time based on their likes and dislikes, the with data stored in city databases, insight of-use, trust and accurate information,
weather and events happening in the city, from social media and other sources. new peer-to-peer services based on
amongst other things. This Internet of Things (IoT) allows cities innovative business models (such as
to monitor the environmental or public Airbnb and BlaBlaCar) allow citizens to idle
Cyber-physical systems infrastructure more closely, respond to rooms in homes, seats in cars, spaces on
Throughout the city, networked embedded emergency more rapidly, manage assets driveways and more into a viable source
computers are evolving into cyber- and fleets more efficiently and ensure traffic of income. Peer-to-peer platforms and
physical systems (CPS) that monitor and safety, amongst other things. their associated social channels and mobile
control the physical environment. These apps allow individuals to connect with their
smart systems are becoming ubiquitous in Mobile and social media apps peers.
the city infrastructure – its street lighting, Mobile and social media apps are
transport networks, parking systems and encouraging citizens to become more Prescriptive analytics
much more. Public transport buses, for actively engaged in the running of their city By condensing the vast amounts of
example, are collecting valuable data and by allowing tasks to be distributed at a local data now available to cities into smaller,
making it available in real-time while smart level. One app might coordinate citizen more useful nuggets of information,
billboards are not only interactive but also volunteers in the event of an emergency; predictive modeling allows cities to focus
ensure the visually impaired or hard of another might encourage them to take on prevention. Rather than allowing
hearing can access the information they responsibility for the cleanliness of their debilitating traffic congestion to build
need. neighborhood. Dashboards that graphically up, for example, a predictive model can
compare statistics at a neighborhood level forecast traffic flow hours in advance and
Distributed analytics gently encourage citizens to take pride in alert city management of potential issues.
Analytics running across distributed where they live. Prescriptive analytics goes beyond
platforms give cities an end-to-end view predictive models by showing the likely
across their infrastructure, their citizens, Near field communications outcome of one or more possible courses
their visitors and more. When analytics With citizens free to select the services they of action.
initially identify a potential issue with a require, mobile payments via near field
scholar through data from school, for communications (NFC) have become the Sentiment analytics
example, distributed analytics can help norm for paying for the advanced, value- The lifestyle, behavioral and health
social teams build a more complete picture adding services offered by partners. These data collected from mobile devices and
by adding in intelligence gleaned about contactless solutions simplify payments digital assistants give cities a deeper
their health from medical records or about for citizens with mobility or cognitive understanding of their citizens and visitors.
their wider family from citizen data. This impairments. What’s more, with social networks now well
additional insight helps ensure vulnerable integrated into our everyday lives, cities
youngsters receive the help they need, Open Data/Economy of Data are using advanced social media analytics
when they need it most. Cities are embracing the Economy of Data with its sentiment analytics to determine
not only through Open Data initiatives what people like and dislike about their
Edge computing but also by allowing for IoT networks to municipality and their services.
Cities are increasingly taking advantage of be exploited by third parties. While today
a viable ecosystem of compute, storage open data is often free for non-commercial Streaming analytics
and networking services made available use, cities see the value in data as so they The real-time data provided by the IoT
through edge computing. Real-time, allow access to data also for commercial gives city management a comprehensive
high performance analytics running at use when and where there's benefit for picture of the city throughout the day or
the edge bring affordable scale to the the citizens of the city. Value in this is not night. Now that data is processed in an
computationally-intensive smart initiatives always expressed in hard currency but it instant on streaming analytics platforms,
and modern citizen services. Cities are able may also be added value in added data. city managers are alerted to potential
to optimize value from the huge data sets problems – such as environmental
now available. This new economy brings new products changes, impending disasters, crowds or
and services that generate new traffic congestion – before they cause any
Federated identity employment opportunities, which in significant disruption. The value of this
Electronic identification (e-ID) ensures turn generate additional tax revenues intelligence is multiplied when combined
individuals can access the government and or savings in direct costs, or may also with mobile technologies; city employees
commercial online resources they need – encourage more people to visit the city. On can act on information in near real time,
securely on any device and through any the other side of the coin, cities must take keeping the city running smoothly so
channel. These identities may also be used responsibility for ensuring the data they it provides an enjoyable experience for
to protect access to government buildings share is not misused. The role as enabler everyone.
and assets. Cloud-based federated identity for the economy of data comes with a role
services simplify the extension of identity of trusted officer, protecting against misuse Virtual assistants
and access management beyond public of data and intrusion of privacy. For tourists, their stay in the city is now
sector boundaries, into private-sector planned in a great deal of detail thanks
business workflows. to intelligent virtual assistants. Truly
omni-channel, this virtual digital assistant

66 #AscentLookOut
Cities

engages seamlessly with the visitor agency offices to engage with the city and
through a multitude of online channels. access city services.

Wearable computing Wireless power


Public services are not only more Many drones are controlled through
personalized than ever before, but also smartphones and wearables, and tracked
available wherever and whenever they’re using Radio-Frequency ID (RFID) or
needed – from home, from the office Bluetooth smart tags dotted around the
or when out and about. Ranging from city. Like other vehicles, drones can take
smartphones and tablets to wearables advantage of the multitude of wireless
such as smart watches and glasses, mobile charging points. Electric buses, for
devices of all shapes and sizes keep citizens example, are fully charged in the station
connected and informed wherever they overnight, topping up their charge for just a
are. Citizens no longer need to visit local few minutes at a time from charging points
strategically placed at every bus stop.

Key Enablers in Cities


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Mobile and social media
3D printing apps

5G networks Near field


communications

Open Data/Economy
API economy
of Data

Augmented reality Peer-to-peer platforms

Autonomous vehicles Prescriptive analytics

Context-rich systems Sentiment analytics

Cyber-physical systems Streaming analytics

Distributed analytics Virtual assistants

Edge computing Wearable computing

Federated identity Wireless power

Internet of Things

Ascent Look Out 67


Market views

Consumer Packaged Goods

>1bn new consumers by 2020 spending Consumer demand for variety and
$10 - $100 per day authenticity
Generation Y will spend $65bn on CPG Digital is driving innovation in delivery
over the next decade models
80m Generation Y consumers shop Brand loyalty is declining in food,
differently beverage & household goods
By 2025, 50% of retail purchases will be 3D printing will create new business
mobile models

Key Market Challenges

Customer interaction allows them to serve the


consumer in a more personalized manner,
they can discuss their personal challenges
and concerns with peers. The Kraft
Experience opening up the cross-selling and up-selling community, for example, allows members
opportunities that deliver higher margins. A to discuss recipes and the Lego community
sports clothing manufacturer, for example, – though unofficial – allows fans to share
Today’s consumers can very easily access might up-sell socks to go with the running news and images of their creations. These
product data from anywhere and at any shoes the consumer is purchasing, or platforms provide a way for consumers to
time on their mobile devices. They readily shorts to go with a football jersey. identify themselves with the product and
use smartphones for taking pictures, with peer consumers – which is becoming
comparing prices, finding coupons and Differentiation is crucial, in all the different increasingly important for building a stable
accessing detailed product information, markets where companies are present. and leading brand.
peer reviews and recommendations. Not Focus is now on fulfilling rapidly-changing Official or not, these platforms do more
only is information more accessible, but local market requirements and re-shaping than simply drive consumer loyalty; they
consumers have a greater opportunity their portfolio to improve their capabilities deliver genuine consumer insights that
to contribute to product information too, and be more effective in their category. CPG companies can leverage to develop
through social networks for example. Peer new products that meet the needs and
product reviews and recommendations Global CPG companies must find a way to desires of the consumer of today and
have a greater impact than traditional manage local customers as if they were tomorrow.
marketing on their choices. unique: understanding and reflecting
local consumer tastes and preferences New connected products, such as
To reduce churn and increase loyalty, and adapting swiftly to changing tastes or wearable fitness monitors, also provide a
brands need to understand their customers buying patterns. And as food miles become great opportunity for understanding both
better: their behavior, their buying patterns an increasingly important measure, the consumer and their product usage.
and their change in taste. As customers consumers are demanding products that Additional services built around the product
increasingly seek personalized products, are grown or produced locally. drives loyalty and delivers insight that can
for example, companies are responding be turned into business value. A service
by adopting technologies that allow the that gathers and analyzes fitness statistics
customer to tailor the product, enabling Business in real time and displays them in an easy-to-
mass customization. Reinvention read online dashboard is a typical example
of the personalized value-add services
Direct consumer relationships are expected by today’s consumers.
becoming pivotal to the success of every
CPG company. Companies are increasingly To increase brand loyalty, manufacturers As product lifecycles decrease many
deploying solutions that no longer need to move away from selling solely their consumers become frustrated at seeing
depend on the retailer. Evian's ‘smart drop’ products and instead focus on providing their still viable products replaced with
connected device that enables customers the consumer with value-added services. newer models. The innovation process
to order water directly is a prime example. Their ability to inspire consumers to use must balance reducing shorter product
their products in new ways and deliver lifecycles with ensuring products deliver
Brand manufacturers must be present at innovative services that add real value will benefits that offer real value. Business
every step of the buying process, engaging be critical to their future success. ecosystems need to expand to include
consumers through relevant and inspiring both suppliers and consumers to ensure
content while they're both learning about Online communities based around a new products hit the right spot with
the product online and experiencing it in brand will empower the consumer with consumers, and can be developed and
the store, for example. This continuous information and provide a platform where delivered efficiently.

68 #AscentLookOut
Consumer Packaged Goods

"Brand manufacturers must be present at every step of the buying


process, engaging consumers through relevant and inspiring content
while they're both learning about the product online and experiencing
it in the store.’’
Thomas Collins
Senior Vice President,
Global Market Head
Consumer Packaged
Goods

Operational ways of working together might include


collaborative business planning and
value chain helps to ensure effective
and efficient compliance. After all, keep
Excellence intelligence sharing and might also be organizations up-to-date on food and
extended to new product development, product regulations and policies, and
collaborative warehousing, transport and an effective compliance capability, with
Demand-driven supply chain management delivery. efficient communications, is essential.
minimizes inventory levels and reduces the
stock outs that stifle revenue and growth. With manufacturing processes being Compliance, quality and cost management
Traditional decision-making reliant on outsourced to cut cost, companies places security, reliability and scalability at
historical data and gut feeling no longer are thinking strategically about which the top of the IT agenda. Any IT failures
suffices. Instead new algorithms using processes are outsourced and which core could impact the safety and quality of
real-time intelligence are vital for revealing skills and processes need to be retained the product produced – and additionally
real-time demand and enabling real-time in-house. Aligned processes ensure all parts the availability of connected products.
decision-making. of the business can perform optimally as A robust scalable infrastructure will help
CPG companies move from national or deliver these along with the cost reductions
As the ability to satisfy market demand local to international, industrialized and required to fund innovation.
anywhere and at any time becomes a key better controlled activities. Companies
differentiator, companies need to accelerate can cut costs further by aligning and From a trust perspective, companies are
their respond to change and be able to consolidating enterprise asset purchase focusing on inspiring confidence to develop
adapt easily to any alteration of strategy. and management at an international level. trusted exchanges amongst all partners.
Rapidly changing consumer demands – This requires a modern IT environment that
for example a preference for lower sugar enables effective and efficient collaboration
products driven by media hype on obesity Trust and and communications. Such as environment
– require higher levels of agility throughout Compliance also helps to attract and retain the best
the supply chain. talent. After all, today’s new generation of
experts is expecting to work with tools that
By establishing a digital value chain that are at least as advanced as those they use
Collaboration and cooperation across the
allows products to be tracked and traced at home.
supply chain is becoming increasingly
throughout, CPG manufacturers can
important for satisfying regulatory
optimize internal processes, control costs
requirements and demands for
and ensure right-first-time quality. Brand
transparency from retailers and consumers.
manufacturers, retailers and partners
CPG companies need to be able to track
are exploring how to align and share
and trace products all the way through
information to improve transparency,
the supply chain to satisfy regulatory
but networks are becoming increasingly
requirements on the security of the supply
complex. As the supply chain evolves,
chain, satisfy consumers on the origin of
retailers will be more involved in upstream
products – and ingredients – and resolve
transport and CPG manufacturers in
liability issues.
inventory management and replenishment.
Regulations around sustainability and
Category management optimization
social responsibility, amongst others, are
demands tighter collaboration between
increasing pressure on the supply chain.
marketing, procurement, the supply
Harmonizing processes along the entire
chain, suppliers and local stores. New

Ascent Look Out 69


Consumer Packaged Goods

70 #AscentLookOut
Consumer Packaged Goods

Mainstream
Early adoption
5G networks
Adolescent
3D printing Emerging

Cloud Service Integration

Prescriptive analytics Advanced


robotics

Semantic technologies
Edge computing
Internet of
Things Wearables Privacy-enhancing technologies
computing
Context-rich
systems

Beacons
Augmented reality
Machine-to-machine
Geo-location technologies
Near field communications
Hybrid cloud
Sentiment analytics

2016 2017 2018 2019+


© Atos 2016. All rights reserved.

Key Enablers Advanced robotics


Advanced robots work side-by-side
and sends a trigger to the central control
system to note that they're in the store.
with humans, but on tasks that require Further beacons placed strategically
3D printing
high levels of dexterity and precision: around the store trigger targeted text
New 3D printers allow some products to
on components too small for humans messages offering personalized vouchers
be printed within the store. A customer
to handle. Enhanced sensing and on the shopper’s smartphone or highlight
might customize a pair of shoes at home
AI capabilities allow them to work items of interest that are currently on offer
and then collect the finished product from
autonomously inside the factory, on screens in their line of sight.
the store an hour later, for example. 3D
automatically tailoring goods to meet the
printing is increasingly being outsourced
increased personalization customers are Cloud Service Integration
to specialists who not only supply services
demanding. Leading manufacturers have moved
across multiple brands but who are also
increasingly offering delivery services. towards integrated manufacturing, which
Customers can schedule prints of products Augmented reality enables information transparency and
from multiple brands and request that Augmented reality provides detailed collaboration between MES / MOM, ERP
they're delivered together to optimize costs. information on the customer they're and PLM systems, to accelerate time
assisting and the products they’re interest to market. This vertical view along the
in. This information may be displayed value chain becomes increasingly critical
5G networks
in an employee’s line of sight through as product lifecycles shorten and the
Customers are taking advantage of low
augmented reality glasses. continuous evolution within product
power, low latency, extended range 5G
releases accelerates. Cloud Service
networks to access the information and
Beacons Integration ensures tight integration
services whenever they need them.
As a customer enters a flagship store, between all these different cloud services,
for example, a beacon recognizes them from the generation of ideas to the

Ascent Look Out 71


Consumer Packaged Goods

manufacturing of the product. further enhancing the experience. and retailers as well their customers and
the product itself – to help them build the
Cloud-based federated identity governance Internet of Things intelligence that is improving efficiency
will provide secure federated access to By connecting devices, people, processes and decision-making as well as enhancing
both operational systems and customer and information, the Internet of Things customer experience. Behind the scenes
information across systems, between MOM, (IoT) has opened up the opportunity to semantic technologies help these
ERP, PLM and CRM systems. deliver a compelling experience, the likes intelligent systems to understand the
of which have never been seen before. relationships within and across data.
Context-rich systems Real-time data gathered from social media,
Marketing messages are highly contextual. smart devices, wearables and more gives Sentiment analytics
They’re tailored to the shopper’s brands a great deal of insight into their Brands have employed social media and
preferences and buying history, the current customers’ needs, desires and behaviors. network analytics to understand general
environments (such as the weather outside customer issues and desires for some
or local events) and where the shopper is Machine-to-machine time. Its sentiment analytics allows
standing in the store. Context-rich systems Two way machine-to-machine (M2M) them to quickly identify and respond to
combine intelligence from diverse systems communications allow shelves or vending individual customer’s gripes and any other
– from social media and purchase histories machines to manage their own stock. Stock reputation-damaging sentiment. They're
to weather forecasts and diaries of local levels are automatically transmitted to a now also leveraging it to gather intelligence
events – to fully understand the shopper’s central control room in real time, where on individual customers.
current context. advanced analytics assess requirements
and schedule any deliveries needed into an Wearable computing
Edge computing optimized schedule. Brand employees in stores can access vital
Some CPG companies are leveraging edge intelligence hands-free through modern
computing to both process relevant data Near Field Communications wearable devices. These wearable devices
more quickly and ensure scalability within When they require comprehensive infuse insights with the real-world, blurring
the end-to-end integration. Indexing data information customers make their the lines between digital and physical.
close to the point of capture, for examples, way to a brand store where Near Field
lightens the load of centralized servers Communications (NFC) has become the
while making it highly accessible to the norm for tapping into product details.
systems that need it soon after capture.
Prescriptive analytics
Geo-location technologies Brands are turning to prescriptive
Combined with geo-location technologies analytics to help deliver a highly
and radio frequency identification (RFID) personalized customer service, whatever
tags, sensors ensure devices such as the channel. This advanced analytics
vending machines, fridges and other examines each individual customer’s
product displays are running well and preferences, purchase history, sentiment
haven’t been moved from their designated on social media accounts and more before
location. Diagnostic and location data is presenting relevant recommendations or
continually transmitted back to the central offers – whether on a web page or even
control room where an intelligent system as a text message. At a higher level, it's
alerts maintenance teams to issues as also helping brands decide when to cut
they arise. Any misplaced, or even stolen, prices and how to optimize stocks across
machines can be tracked in real time. different regions or even stores in response
These technologies also allow brands to to changing environments. For example, it's
track and trace their products from factory helping them optimize beer or ice cream
to store. stocks as weather conditions change.

Hybrid cloud Privacy-enhancing technologies


Cloud computing enables companies to As customers share more information with
use the in-depth intelligence derived from brands they will expect their information
that data to deliver a seamless experience to be well protected and not shared with
across all channels and locations. No third-parties without their permission, for
matter where the customer engages with example. Privacy-enhancing technologies
a brand, or where an employee or partner (PET) control the disclosure of data, helping
is working from, the systems that they CPG companies manage privacy risk by
interact with and the data these systems ensuring compliance with data protection
use will be the same. Hybrid cloud then legislation and regulation.
allows companies to augment their own
omni-channel services with relevant third- Semantic technologies
party services – such as news on trends, Companies are gathering data from right
hints and tips or even weather forecasts – across their value chains – from their
operations, suppliers, logistics partners

72 #AscentLookOut
Consumer Packaged Goods

Key Enablers in Consumer Packaged Goods

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3D printing Hybrid cloud

5G networks Internet of Things

Advanced robotics Machine-to-machine

Augmented reality Near field


communications

Beacons Prescriptive analytics

Cloud Service Privacy-enhancing


Integration technologies

Context-rich systems Semantic technologies

Edge computing Sentiment analytics

Geo-location
Wearable computing
technologies

Ascent Look Out 73


Market views

Defense

Growth in exports is mitigating the Terrorist activity increased by 80% in


impact of domestic cuts 2014
Balancing squeezed budgets with World military expenditure was
information superiority estimated at $246 per person in 2014
Leveraging the IT evolution, adapted to Global electronics warfare market is
military environment expected to reach $24bn by 2020
Moving from silos to an integrated
forces approach Global military robots market is
projected to grow to $21bn by 2020

Key Market Challenges

Customer appreciate lightweight, intuitive and user- industry to provide open standards and
systems that can operate in cross-border
friendly smartphone and tablet interfaces.
Experience Consumer market waterproof smartphones operations without giving in on security
and tablets, for example, could be and flexibility.
encrypted and adapted to meet field needs.
The mission spectrum is becoming Against an enemy without borders,
increasingly diverse. Today’s asymmetric Defense organizations are already efficient protection requires cooperation
threats include everything from nuclear changing the paradigm and investigating between national organizations and allies.
proliferation and climatic disaster through how they can leverage familiar civilian Collaboration within a wider ecosystem of
failed states, ideological warfare and tools and technologies to reduce peers and partners is now the norm. But
terrorism to the looming threats of global training requirements, raise acceptance new threat scenarios are only complicating
resource scarcity and energy security. levels, increase efficiency and cut cost – the picture. Sharing information beyond
particularly for non-combat scenarios. defense communities now becomes the
To stay one step ahead of the enemy, our critical factor. But making wider ecosystems
armed forces and intelligence services Current public devices require major work in practice can be challenging.
need ready access to the latest advances modification to meet specific user
in technology. Speed of development and demands and expectations. Users deployed Innovation and creativity play an
deployment are critical success factors in in remote locations, for example, require increasingly important role in enhancing
the increasingly complex and fast-moving devices that can function in extreme capability, accelerating deployment and
landscape. environmental conditions, such as high or delivering financial efficiency benefits. As
low temperature, high levels of humidity or sovereign innovation becomes a core
Military personnel need user-friendly, shock. Additional security measures – such aspiration, new open and more integrated
but tactically-oriented, innovations that as zero clients – are needed to ensure the approaches that enable defense and
integrate seamlessly with the tools and device and the data on it remain safe in industry organizations to work together
processes already at their disposal. It’s case of loss, theft or if it needs to be left in- more effectively will stimulate valuable
important that the devices they use are the situ. Some devices may not be suitable for home grown defense ecosystems and
smallest possible form factor. Man portable use in combat situations. innovation that would otherwise be
and ultra-low power compute (9v battery) constrained by organizational boundaries.
technologies will improve the mobility of
deployed forces. Business A new approach to contracting with
Reinvention defense suppliers is needed; moving from
A joined up user experience is important a rigidly defined requirements contract to a
too, with the same systems and services flexible results-based model that can adapt
available to personnel whether they're fixed and evolve in the face of a change in threat
or deployed. Training should be swift, with The defense sector needs to reinvent the
type and vector.
‘train as you fight’ often the reality. way it works. Defeating today’s asymmetric
threats demands global connectivity. No
Today’s new generation of military one defense or security organization can
fulfill its core mission alone. To maximize
Operational
personnel expects tools and gear that
operational effect and minimize risk, those
Excellence
is at least as user-friendly as that they
operate in their private lives. A far cry executing operations require total solutions
from many of the specific ruggedized, backed up by an integrated full service
rigid, difficult-to-use and un-interoperable capability. This places interoperability at the The accelerating operational tempo
systems currently in operation, they would top of the agenda, challenging defense and requires rapid decision-making. Information

74 #AscentLookOut
Defense

‘‘Faced with squeezed budgets and a real need for turning information
into strategic and tactical advantage, Armed Forces need to rely more
and more on the power of IT technology evolution, provided it's fully
adapted to the specific military environment.’’
Stéphane
Janichewski
Head of Defense &
Aerospace Market

superiority has become the defining metric they're required. Mobile command posts military personnel deployed in extremely
for every defense outcome. Timely and need to be deployed at the very heart of dangerous situations. From risk analysis
reliable intelligence is vital for enabling the conflict or emergency to immediately to monitoring for new threats, exposed
crucial real-time situational awareness manage information and resources as if in a intelligence information signifies a clear
and rapid decision-making throughout fixed installation. Field hospitals need to be reduction in capacity to both act and
the whole command chain. Across the deployed rapidly in support of operations defend.
battlefield, for example, informational where health infrastructure is non-existent
superiority enables command and control or has suffered a lot of damage. Connected All mobile security solutions need to
to deliver real-time situational awareness to systems allow critical casualty data to be support interoperability between mobile
dismounted personnel and inside vehicles, provided to medical response teams before devices and multiple advanced military
providing a force multiplier capability. they arrive on the scene, for example. or governmental systems, devices and
technologies. Examples of such systems
Defense organizations must master the Equally, technologies that allow security include advanced security solutions for
data and information flood flowing out from zones to be collapsed remove the need data transfer and specific applications for
both operational and IT sources, including for a multitude of discreet infrastructures, communication, such as head-up displays
radio, imaging, human and open sources. reducing complexity and costs. Design with security functions.
Tight integration across all sources is vital once, use many times, simple repeatable
for eliminating dangerous prediction and processes, incremental acquisition of As cyber space joins the classic realms
diagnosis time lags. Only then can timely capability and spiral development provide of military operations, people, assets and
decisions be made to ensure that alerts the basis for rapid implementation in this infrastructure must be secured from known
and actions launched are appropriate. ever-changing landscape – minimizing both and emerging threats across both physical
To extract timely meaning and pertinent latency and the possibility that solutions will and virtual worlds throughout all hours
signals from the data, large information be out of date by the time they're delivered. of the day and night. Protecting identity,
bases need to be processed efficiently. access and cyber disruption along with
the integrity and confidentiality of the
Today’s security and defense mission increasing number of connected objects
is complex and continually evolving. Trust and are simply the latest variables thrown into
The rapidly changing operational Compliance the strategic defense mix along with the
environment demands higher levels of likes of drones and improvised explosives.
agility and adaptability, both on and in There's no room for human intervention in
support of battlefield operations. Defense the cyber domain. Attacks appear with the
To maintain strategic advantage, armed
organizations also need to be able to scale speed of light; so must defense.
forces and intelligence agencies need to
resources and performance as and when
ensure the entire information value chain
required in a landscape of increasingly
is secure – from observation to action.
unpredictable mission requirements: from
The most effective security solutions for
disaster response to global deployment.
protection against unauthorized access
Scalability is also vital for meeting ever-
to computers and computer networks will
shifting security agendas.
preserve the confidentiality, integrity and
availability of critical information and data.
Agility and scalability go hand in hand
with interoperability, particularly across
Ever-increasing mobility requires end-
areas of defense where operations require
to-end security to protect against well-
solutions to be deployed easily, rapidly
organized threats and ensure the safety of
and seamlessly wherever and whenever

Ascent Look Out 75


Defense

Key Enablers diverse and apparently disparate


data sources, amplifying intelligence,
they offer an opportunity to accelerate
learning, enable faster and better neural
surveillance and recognition systems. communications in hostile environments,
3D printing
improve analysis of imagery for detecting
Back at base in combat scenarios, the vast
App stores potential threats and more.
engineers’ store rooms that were once
As consumer market waterproof
full from floor to ceiling with parts of all
smartphones and tablets are encrypted Cloud Service Integration
different shapes and sizes are virtually
and adapted for military use, private and In a defense environment, cloud
nowhere to be seen. Modern 3D printing
audited app stores provide access to computing needs to be able to quickly
technology has virtually wiped them out.
bespoke mobile applications. adapt to demanding and ever-changing
When an engineer is assigned to a job, any
cybersecurity context, tactical needs and
parts needed are created there and then. Augmented reality interoperability constraints. Cloud Service
Out in the battlefield augmented reality Integration enables a converged cloud
5G networks improves situational awareness within the infrastructure that can be relocated quickly.
Tactical information systems deliver field of view. In operations it supports tele- A mix of embedded sensors and security
real superiority in combat. People and maintenance and tele-operations, enabling components keep operations safe in even
‘things’ are better connected and better engineers to access vital information the most difficult security climates.
informed than ever before. Whether hands-free through modern wearable
man or machine, they can access online devices, improving productivity and safety. As cyber space joins the increasingly
resources, communicate and share their diverse mission spectrum, the identities
insight wherever and whenever they need Autonomous vehicles of people and things within the IoT are
to. Today’s easy-to-deploy standalone Advanced security robots and managed through electronic identification
LTE networks may be superseded by low unmanned aerial vehicles (UAVs) are (e-ID) technologies. Cloud-based federated
power, extended range 5G networks in the increasingly supporting surveillance, identity services simplify the extension of
future. protection, detection, rescue from objects, identity and access management across
infrastructure destruction and people new IoT-based services. In the future
Advanced data visualization violation activities. trusted information brokers will act as
Combined with advanced data analytics, the central verification service to avoid
immersive 3D visualization technologies Brain-computer interface the need for individual registration and
bring clarity to underlying complexity. They Novel brain-computer interfaces promise authentication of each service.
allow defense organizations to identify not only to revolutionize prosthesis
underlying structures and otherwise for those injured on the battlefield,
hidden meanings across increasingly

76 #AscentLookOut
Defense

Quantum computing

Mainstream
5G networks Early adoption
Adolescent
Emerging

Self-adaptive
security

Swarm computing
Brain-computer
interface
Prescriptive analytics
3D printing
Industry 4.0
technologies Cloud Service
Machine learning Integration
Internet of
Things Streaming
analytics
High performance Distributed Innovation
computing analytics Value Webs
Edge computing
Semantic
Social media Advanced technologies
analytics data visualization
Autonomous
vehicles
Software-defined
technologies DevOps App stores
Wearable computing
Augmented
Robots reality Hybrid clouds

2016 2017 2018 2019+


© Atos 2016. All rights reserved.

DevOps be conserved since only immediately foes, is stored in private clouds. Hybrid
The Agile development methodology pertinent information needs to be clouds allow combat personnel to enhance
accelerates development by presenting transmitted centrally. sensitive insights with publicly available
early mock-ups, allowing military personnel data such as maps or weather forecasts.
to express their needs and desires early High performance computing
in the design process. To accelerate Growing volumes of data are being turned Innovation Value Webs
deployment, defense organizations into critical military intelligence – Military With collaboration within a wider
are adopting a DevOps approach to Intelligence 4.0. With the volumes, variety ecosystem of peers and partners key
development. It reduces time-to-market and velocity of data accelerating, high- in the fight against an enemy without
and cost while improving quality by performance computing (HPC) ensures borders, innovation value webs are
enhancing collaboration between software military personnel can run the complex empowering network centric warfare and
developers and IT operations. simulations and analyses that deliver intelligence. Value webs ensure processes
vital intelligence. By combining HPC are supported along their entire paths,
Distributed analytics computation infrastructures, networks and with dynamic and both synchronous and
New research programs around the last mathematical models they can asynchronous participation all supported.
distributed analytics will address future predict behaviors, prevent cyber or terrorist In addition these webs are able to process
coalition operations in the congested, attacks and more. diverse and unpredictable metadata
cluttered, contested, connected and formats.
constrained battlefield. Hybrid clouds
Cloud computing is helping defense Internet of Things (IoT), Industry 4.0
Edge computing organizations ensure data is accessible technologies
Information gathered and analyzed at the whenever and wherever it's needed, By promoting Internet of Things (IoT),
edge through edge computing allows improving mobility and flexibility. Sensitive Industry 4.0 technologies are enabling the
restrictive and valuable bandwidth to data, such as the position of peers and liquid operational intelligence and control

Ascent Look Out 77


Defense

called for in today’s continually evolving technologies help agencies anticipate used to analyze geo-location information
theatre of war and terrorism. Connected threats. Behind the scenes streaming in real time to provide a comprehensive,
objects and vehicles integrated to the analytics and HPC analyze millions of up-to-the-minute view on the location of all
heart of the action zone ease information events in real time. mobile assets.
collection and processing directly in the
field. Self-adaptive security approaches that Swarm computing
can, for instance, automatically adapt to Part of the wider IoT, sensors, robots
Sensors and geo-location technologies a fast-changing context would heighten and other devices together make up
embedded in mobile devices and smart security in self-organizing ad-hoc and the intelligent dust that can detect
vehicles continually transmit intelligence to sensor networks. light, temperature, vibration, magnetism,
a central control center. Any individual or chemicals and more. Operating wirelessly
vehicle needing assistance can be found Meanwhile distributed analytics in within a network it provides invaluable data.
easily, their status understood in advance combination with HPC supports vital
of reaching them. forensic analysis after an incident is Wearable computing
detected. They help organizations quickly On the battlefield, wearables connect
Machine learning identify where the attack started, who is military personnel with their peers and
Behind military robots lies a complex set behind it and how it was carried out. operational headquarters. Electronics
of automated processes, with no room and sensors that can be worn or placed
for error. The wrong information or the Semantic technologies in uniforms provide real-time monitoring
wrong outcome of an analysis may lead In defense, semantic technologies help of their location, vital signs and the
to automated responses with real life organizations unleash the hidden value of environment around them.
consequences. Machine learning will play data, develop shared common databases
a key role in that decision-making. and simplify the management of military
intelligence reference data. They help
Prescriptive analytics intelligence systems to understand the
Operations research falls under the relationships within and across data.
category of prescriptive analytics. Its first
application was in planning and managing Social media analytics
organizational operations during World Defense organizations are employing
War II when human and material resources social media analytics to gain additional
were scarce and managing war logistics insight into how situations are developing.
was a daunting task. This will also provide Open Source
Intelligence (OSINT) to complement
Quantum computing established methods already in place.
With communication security critical on the OSINT enhances situational awareness. In
battle field, quantum computing promises a non-combatant evacuation operation
to deliver new levels of protection. What’s it can provide valuable insight for those
more, quantum computers threaten to preparing to deploy or who have deployed,
break today’s encryption methods. Their for example.
substantial increase in computing power
could be a game-changer in intelligence, Software-defined technologies
surveillance and reconnaissance. Build over the wire and software defined
techniques improve deployment speed
Robots and safety. Software-defined networking
Security robots undertake dangerous (SDN), for example, provides the agile
actions without jeopardizing military forces network that helps forces communicate,
and act in areas that are either extremely train and operate together better. Military
difficult or impossible for humans to access. personnel can create dynamic links
Autonomous, they can self-organize and between locations and dynamically
reach certain level of independent decision apply appropriate quality-of-service and
making. bandwidth allocation to those links.

Self-adaptive security Streaming analytics


Advanced Security Operations Centers The vast volumes of data available today
(SOC) and Security Information and Event coupled with today’s advanced analytics
Management (SIEM) are integral to new allows the military to move from a reactive
security strategies. Organizations have to a proactive position by enabling real-time
deployed real-time controls in a proactive situational awareness and rapid decision-
security approach that is helping to prevent making. Streaming analytics, for example,
cyberattacks. Trusted probes are being allow organizations to extract intelligence
deployed within secure environments to that can be detected and acted on at a
look for evidence of specific suspicious moment’s notice from data in motion.
behaviors. These pre-emptive security In addition, streaming analytics can be

78 #AscentLookOut
Defense

Key Enablers in Defense

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3D printing Innovation Value Webs

5G networks Internet of Things

Advanced data
Machine learning
visualization

App stores Prescriptive analytics

Augmented reality Quantum computing

Autonomous vehicles Robots

Brain-computer
Self-adaptive security
interface

Cloud Service
Semantic technologies
Integration

DevOps Social media analytics

Distributed analytics Software-defined


technologies

Edge computing Streaming analytics

High performance Swarm computing


computing

Hybrid clouds Wearable computing

Industry 4.0
technologies

Ascent Look Out 79


Market views

Discrete Manufacturing

Almost all products are becoming Market revenues will reach almost
smarter $28bn in 2017
Connectivity is growing at an 70% of manufacturers offer connected
exponential rate products
40% will provide Product-as-a-Service
3D printing will transform the market
platforms by 2018
By 2020, most things at home can be
Energy costs continuing to rise
monitored online

Key Market Challenges

Customer voice of the product. But to build enduring


loyalty in the smart world, manufacturers
Discrete manufacturers are exploring
how they can leverage their increasing
Experience will need to engage more intimately and volumes of data to open up these new
individually than ever before, with both revenue streams. Insight borne out of the
their customers and consumers. data will help them tailor their new services
Products are becoming increasingly smart. to ensure they provide optimal value to
Almost all products will soon be a mix Increasing volumes of data are helping the end customer and buy their enduring
of hardware, software and connectivity. manufacturers to understand the loyalty.
Embedded software, enhanced user behaviors, needs and desires of their
interfaces and product control components B2B customers and consumers better. Companies will have a number of key
allow users to control product functions in The wealth of intelligence available will design decisions to make that will be
a way that personalizes their experience. help them tailor their products to meet influenced by how they plan to leverage
Embedded sensors, processors and the individual needs of specific market smart products. These include: where
connectivity gather and share data about segments. Their engagement on social they should place the sensors, what data
the status of the product, its environment media and value-added services will only the sensors should collect and how to
and the way it’s used. serve to enhance their relationship with maximize the value of the intelligence
and knowledge of the consumer. generated from that data – even though
This trend started with vehicles and big the product (or related services) will be
industrial machines, but is now moving Companies that don’t have their own designed jointly with the customer.
to smaller products such as home flagship stores and currently sell their
appliances. As consumer products and products through resellers may decide The increased connectivity, data and
their embedded electronic systems grow to build a direct connection with the intelligence allows companies to: gain a
in complexity, ensuring they remain user- consumers to establish their brand and better understanding of how their products
friendly and intuitive will be critical. increase their share of the revenue. are being used; control product functions
remotely; identify poorly performing
In time, products and their components products and repair them remotely; offer
will dematerialize. Discrete manufacturing Business predictive diagnostic services based on
companies will no longer manufacture the Reinvention predefined algorithms and even allow
products themselves; instead consumers products to operate autonomously.
will print them at home or through a
printing service provider. Companies will The convergence of hardware and software
simply design the product functionality and Discrete manufacturers will need to
is transforming the market. Traditional
print. focus not only on enhancing design and
manufacturers’ market dominance is being
customization, but also on offering value-
eroded by new software and connectivity
In addition, consumers in particular are added services that enhance the overall
players – such as sensor providers and
increasingly looking to customize the product experience. Such services might
IT and software companies – who are
products they buy: a talking teddy bear as a include washing machine maintenance or
designing smart appliances, watches,
unique gift for a family member or a music repairs, recipes that help the consumer take
cameras and furniture. New market
center that fits with the color scheme in full advantage of their kitchen appliance or
entrants are fast becoming tier one
their lounge, for example. even direct rental services that allow the
providers in the new ecosystem.
customer to pay for a product based on
Discrete manufacturers’ goal has always utilization.
As companies not only reinvent
been to get closer to their customers to themselves, but also compete to deliver
help them gain unbiased feedback – the measurable results, the number of

80 #AscentLookOut
Discrete Manufacturing

‘‘Increasing volumes of data are helping manufacturers to understand


the behaviors, needs and desires of their B2B customers and consumers
better. The wealth of intelligence available will help them tailor their
products to meet the individual needs of specific market segments.’’
Davide Criscione
Global Head
of Discrete
Manufacturing and
Aerospace

partnerships, joint ventures, mergers and Zoo in 2007. In another instance a shirt to-market. Being nearer to customers also
acquisitions will swell further. Those joint manufacturer was suddenly hit with huge increases control and accelerates reaction
ventures and partnerships help companies demands for the shirt worn by drug lord El times.
acquire the skills and capabilities they're Chapo when he was interviewed by Sean
lacking – for example helping a home Penn. Manufacturers need high levels of For partnerships and joint ventures to
appliance manufacturer gain vital software flexibility that can cope with huge variations succeed, companies must take a more
skills – while the data from downstream in demand over short periods of time. open approach to working together.
manufacturers is vital for presenting Questions remain around how openness is
measurable results. For instance, the The core product needs to be tailored achieved and how companies still protect
performance of a light-transmitting to appeal to diverse markets around the their intellectual property.
furniture solution is equally vital for the world and increasingly customized to
upstream smart LED manufacturer and the meet the specific needs and desires of Meanwhile, mergers and acquisitions will
furniture manufacturer. the individual consumer. This not only bring together diverse legacy systems that
increases development and production will need to be simplified and harmonized
complexity, but changes demanded by the to optimize operations.
Operational B2C are reflected backwards up the B2B
Excellence value chain.
Trust and
As product complexity grows, so will Compliance
products’ support and maintenance
Product lifecycles are decreasing in a
requirements. But the lifecycles of
booming market driven by both consumer
products’ hardware and software are
demand and technology-push. New As product digitalization becomes the
different: software upgrades are needed
versions of TV sets, for example, appear norm, the increasing volumes of data
more frequently. Managing these different
on an almost annual basis. Companies produced and shared must be secured
lifecycles can be complex, for both PLM
are investing significant amounts of time from threats across cyberspace. To
and utilization phases.
and money into R&D to ensure they keep preserve the confidentiality, integrity
pace with decreasing product lifecycles. and availability of critical data, discrete
Upgrade processes need to be simple
Materials analysis, for example, is helping manufacturers need to protect against
and intuitive or even automated. Discrete
them discover new more reliable, more unauthorized access to products, data
manufacturers are exploring how they can
resistant, lighter and cheaper materials. centers and networks.
leverage increasing connectivity and their
Nowadays, R&D effort focused on software
growing volumes of data to reduce the
development is commonly transferred The risks are high. A well-organized attack
cost of maintaining both their products and
offshore to take advantage of the could potentially take control of products,
their manufacturing equipment. Examples
abundance of low cost talent. rendering them unusable or, worse still,
include remote tuning and remote
diagnostics. putting the safety of their users at risk.
Companies must be able to react quickly Companies must take all precautious
to trends. New product launches must necessary to identify, understand and
Furthermore, as production networks
be timely to ensure opportunities aren’t eliminate threats. Their mere existence
become more complex – particularly for
missed in a world where products can depends on it.
higher value and customized products –
very quickly gain and lose favor with the
collaboration must become more dynamic.
end customer. Steiff, for example, missed Risks also extend to suppliers and
Some manufacturing is now returning
a unique opportunity to market a teddy to subcontractors. Manufacturers must ensure
closer to home to reduce logistics cost,
celebrate the birth polar bear Knut at Berlin they are also fully secured and can trace
increase customization and improve time-

Ascent Look Out 81


Discrete Manufacturing

any issues. Even the smallest subcontractor That understanding is vital for ensuring
– who may be unable to adequately compliance in where they store product
manage their security – must not bring and customer data, along with where they
any unknown risks to the final product. In access it from and how they use it.
the event that a problem slips through the
net, if manufactures cannot trace the root Depending on the nature of data, export
cause, the consequences could be dire. control may demand it’s stored in-country,
for example, and prevent it being accessed
But it’s not just their products that need from overseas. The EU's Data Protection
to be protected. Companies must also Directive, for example, lays down specific
secure future profit streams by protecting rules for the transfer of personal data
intellectual property from any low-cost outside the EU.
copycats: their various hardware and
software components and their designs. Depending on the country, there may
This is particularly important where R&D also be restrictions on whether data can
is taking advantage of near- or off-shore be passed to third parties or used for
talents. It’s not just profits that are at risk; recommending products or services. Can a
brand reputations are at risk from low motorcycle manufacturer pass information
quality alternatives. gathered about its customers’ journeys
onto relevant tourist offices so they can
And since customers will only offer their recommend places to visit or stay, for
loyalty to companies whom they trust, example?
companies must comply with increasingly
tough data protection regulations and On everybody’s agenda, sustainability
policies. With new national and international is driven partly through regulation and
legislation emerging all the time, discrete partly through customer and consumer
manufacturers must understand and demands. Discrete manufacturers must
be able to implement diverse regulatory deliver sustainable products – and
changes smoothly. increasingly services – while minimizing
pollution, eliminating the exploitation of
Furthermore, companies will need to child labor and turning their backs on
fully understand the diverse regulations bribery and corruption.
that exist across individual nations.

82 #AscentLookOut
Discrete Manufacturing

Mainstream
Early adoption
Machine learning
Adolescent
Emerging

Edge
computing
3D printing Self-adaptive security

Internet of
Things Prescriptive analytics
Cloud Service Integration
Digital rights management
Distributed analytics
Streaming analytics
Advanced data visualization
Augmented reality

High performance
computing Innovation value webs
Hybrid cloud

Digital signage
Wearable computing
Beacons

2016 2017 2018 2019+


© Atos 2016. All rights reserved.

Key Enablers end customer will pay for a data package


as they do for music or movies. Sales
the insight of a specialist engineer – who
could be located remotely, anywhere
channels will also be affected. around the globe.
3D printing
By using 3D printing to produce
Advanced data visualization Beacons
prototypes and individual components,
Manufacturers are leveraging immersive 3D Once beacons have detected the presence
manufacturers have cut transportation
visualization technologies based on real- of a known customer, digital devices offer
costs, stock volumes and, most importantly,
time data to reduce machine set-up times. them relevant promotions and services.
downtime. When an engineer is assigned to
Operators optimize machine settings in this A consumer who has designed a tailored
a maintenance job, any parts he may need
virtual world before switching production. product at home might be presented
are first created virtually in a cloud-based
Technologies such as these that also with more options for that product when
system before being printed on-site – which
enable virtual testing and concurrent they arrive in store, for example, in an
is particularly useful when they're working
engineering also decrease time-to-market. experience that glides seamlessly across all
at a remote location many miles from the
parts store. channels of interaction.
Augmented reality
3D printing will also change the supply Smart glasses use augmented reality to Cloud Service Integration
chain dramatically by dematerializing provide step-by-step instructions on how Vital systems are managed within the cloud
concrete products. Products – initially a machine needs to be set up or details and delivered ‘as a service’ wherever and
simple products without mechanically on maintenance requirements. This whenever they're needed. Systems that
stressed parts and later more complex and information may be displayed in a worker’s monitor and control processes no longer
highly customized products – are going line of sight through augmented reality need to be located within the plant; sales
to be printed firstly by specialized printing glasses. Embedded cameras relay pictures and marketing systems no longer need to
service companies and, later, at home. The back to base to record activities or tap into be located in store. Remote or temporary

Ascent Look Out 83


Discrete Manufacturing

plants or shops can be deployed quickly, close to the point of capture. early indication that parts are becoming
delivering the consistent engineer or worn. Technicians can access the remote
customer experience that enhances High performance computing discrete product securely – no matter
productivity and drives engagement. As With the volumes, variety and velocity where they are and where the product is
the need for cloud-based functions grows, of data accelerating, high performance located – to perform remote maintenance
Cloud Service Integration connects computing is needed for handling the and optimize its performance. Experts no
processes seamlessly. complex analysis of the volumes of data longer need to be onsite – they can share
transmitted from consumer devices. It will their knowledge and expertise from any
Leading manufacturers have moved to give companies a better understand of corner of the globe.
the integrated manufacturing, enabling how products are being used and reveal
the information transparency and potential issues before they arise. Machine learning
collaboration between MES / MOM, ERP To help improve both products and
and PLM systems. This vertical view along Hybrid cloud manufacturing processes, machine
the value chain becomes increasingly To enhance customer value, manufacturers learning is learning about how products
critical as product lifecycles shorten and are increasingly complementing their perform and are used during their entire life
the continuous evolution within product own services with third-party services. cycle. It takes advantage of the additional
releases accelerates. The shift to integrated For example, moped manufacturers are knowledge that can be gained from novel
manufacturing was not a quick technical fix. offering a service that enhances a view situations to enhance their performance.
The first steps required a simplification and of a customer’s journey and driving
harmonization of the IT landscape. Later performance with details of the weather Prescriptive analytics
steps include Cloud Service Integration. along the way. A hybrid cloud combines Advanced data analytics are making
the manufacturer’s insight with the third- use of that data to increase plant uptime
Digital rights management party weather service. by predicting – and even prescribing –
As the number of products created on maintenance requirements. Manufacturers
3D printers grows, manufacturers must Innovation Value Webs are turning to prescriptive analytics to
turn their focus from producing physical Open innovation ensures discrete predict actual equipment failures and then
products to delivering value-added services manufacturers optimize value from their suggest a number of possible actions and
to their customers. Once the cost of 3D wider partner ecosystem. Suppliers are their likely outcomes.
printers drops and consumers begin encouraged to provide more complex
printing products at home, digital rights outcomes and share the investment cost of They’re also deploying prescriptive
management will help manufacturers new technologies. Innovation value webs analytics to predict when and how their
retain intellectual property (IP). encourage collaboration and knowledge washing machines, TVs and more will fail
sharing while facilitating data aggregation and recommend the actions the consumer
Digital signage and sharing. needs to take to prevent that failure.
In store digital signage – from wall
mounted screens to tablets and even the Internet of Things Self-adaptive security
consumer’s own smartphone or smart On the shop floor, the smart factory Self-adaptive security techniques,
watch – allows the manufacturer to show a is helping manufactures respond to including trusted probes are being
greater variety of stock in a limited space an increasingly complex and fast- deployed to look for evidence of specific
while, at the same time, providing a more paced production environment. Fully suspicious behaviors and help companies
engaging and personalized customer autonomous production chains reconfigure anticipate threats. Behind the scenes
experience. automatically for each individual product streaming analytics and HPC analyze
according to its individual design millions of events in real time.
Distributed analytics parameters. By promoting Internet of
A few years from now virtually every Things (IoT), Industry 4.0 helps companies Meanwhile distributed analytics in
action on or by a product will leave a to efficiently respond to the increasing combination with HPC supports vital
digital trace. Manufacturers manage demand for customized products. forensic analysis after an incident is
those billions of pieces of information detected. They help organizations quickly
coming from embedded sensors securely Furthermore, senior management gets the identify where the attack started, who is
in an internally-managed private cloud. real-time insight it needs to make informed behind it and how it was carried out.
Distributed analytics gives them deep business decisions. After communicating
intelligence on consumer desires and changing production to the shop floor, Streaming analytics
behaviors by combining insight from this for example, flexible reconfiguration New sources of intelligence are paving the
data with insight from operational, stock, procedures, amongst others, ensure way for manufacturers to develop new
price and customer data. production can respond to customer needs types of relationships with and exciting
in next to no time. new services for their end customers. A
Edge computing service linking real-time data streaming
With vast amounts of data to be processed Both plant assets and discrete products from a bicycle helmet with customer data
and intelligence required in real time, continually report their status back to automatically calls the emergency services
manufacturers have adopted edge the central control system using IoT with the cyclist’s details if they do not move
computing to process – for example index technologies. Precise measurements of for 30 seconds, for example. Streaming
or analyze – the data in its diverse formats components, oil pressures, vibrations and analytics processes that data in real time.
more not only provide engineers with an

84 #AscentLookOut
Discrete Manufacturing

Wearable computing
Two-way communications between
machines, workers through tablets,
smartphones and even wearables has
increased agility on the shop floor.

Key Enablers in Discrete Manufacturing

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High performance
3D printing computing

Advanced data
Hybrid cloud
visualization

Augmented reality Innovation Value Webs

Beacons Internet of Things

Cloud Service
Machine learning
Integration

Digital rights
Self-adaptive security
management

Digital signage Prescriptive analytics

Distributed analytics Streaming analytics

Edge computing Wearable computing

Ascent Look Out 85


Market views

Education

Blended learning becoming more and Global student numbers to double


more established by 2025
Costs of administering education 50% of coursework to include online
institutes rising by 2020
40% of academics’ time spent on
Increasing online competition
admin
Institution does it all model is being US$1 in education = US$10 in
dismantled economic growth

Key Market Challenges

Customer accelerating in the USA and across Europe. Business


New commercial entrants are challenging
Experience for the brightest and best.
Reinvention
Alumni play an increasing role in today’s
Schools and teachers are undergoing schools, colleges and universities. Former New digital classrooms allow students
a significant transformation as learning students touch schools in their own in diverse locations to learn together at
extends beyond the conventional bricks- individual ways. If they hold a senior role in the same time. For the first time ever,
and-mortar classroom, combining the business, for example, they might volunteer we can imagine the creation of a ‘global
creative use of digital media with traditional as a guest teacher or offer current students classroom’. A growing range of content and
teaching. In fact, education has become real-life experience through internships. As resources can be made available online
a blended learning experience where alumni become increasingly important to to teachers anywhere and accessed via a
students access resources both online and a school or college’s ability to differentiate ‘pay-per-use’ model. This could transform
in the classroom. itself, creating a platform that offers them how educational bodies acquire their IT
a compelling and engaging experience resources and content.
Both inside and outside of the classroom, becomes imperative.
students already absorb content from Massive Open Online Courses (MOOCs)
a multitude of different educational Our 21st century society is constantly offer a different type of learning experience.
tools and information sources and in a changing. Life-long learning sees older This free global class is identical to what the
variety of ways. While built-in assistive generations engage in ongoing, voluntary on-campus students are receiving.
technologies such as screen readers open and self-motivated pursuit of knowledge
up the options for disabled learners, other and skills to help them embrace those Even small universities are offering
students are benefitting from access to changes, explore new ideas and reinvent specialized MOOCs that complement the
formats such as Braille, large print, audio themselves. With learning not confined MOOCs provided by larger universities
or even the symbol systems that connect to childhood or classroom environments, to help raise their reputation. MOOCs do
words with pictures for students who have learners can access tools and content of more than simply pick up millions of users
cognitive impairments. unparalleled variety and richness. along the way for participating colleges;
their learning analytics allow colleges
In some countries, students are taking What’s more, in a global marketplace to measure the impact of and gather
advantage of the increased flexibility to everything – research, design, production feedback on their lectures.
set their own learning pace. Personalized and administration – can take place
learning modifies materials in response to anywhere, as long as the right skills are The majority of MOOCs are designed
student performance. High flyers and slow available in the right quantities, at the right for a specific period of time. Many are
learners are more motivated. price. With economic competitiveness focused on collaborative activities between
dependent on the right skills being peers and course facilitators. Learners
With increasing flexibility comes increased available, education must be aligned with are encouraged to learn at their own
competition, particularly within the higher the needs of society – especially where pace within the limits of the course and
education sector where ranking – especially this wider ecosystem is experiencing rising are offered personalized services such
amongst universities – plays a key role. unemployment. as tutoring and content delivered on a
With geography typically no longer a freemium (a business model where basic
barrier to learning, students can decide services are free but more advanced
where to learn. If an establishment doesn’t features must be paid for) basis.
cut it, students will simply go elsewhere.
Competition for both students and staff is

86 #AscentLookOut
Education

‘‘Schools and colleges ability to offer individual


tailored services will set them apart from the
MOOCs. To do this they must make sense of the data
they retain about their students.’’
Egbert-Jan Niels de Schutter
Koekkoek Global Head of
Director Business Public & Health
Development Central Solutions
Government

With students accessing the best on making previously inaccessible learning looking to make better use of their legacy
professors from the best universities free analytics data openly available, offer classrooms and libraries. Proposals include
of charge through MOOCs, as well as new business opportunities, specifically everything from transforming them into
collaborating and researching online, local intelligence services related to this data: its new formats of learning spaces that enable
teachers must rethink their added value analysis, prediction and the detection of complementary learning to selling them or
and transform their role within this ‘flipped- patterns. Examples might include a service hiring them out to raise additional funds.
classroom’. Students use their time in the that analyzes environmental data to predict
flipped classroom to apply their knowledge major natural events such as tsunamis or Flexible infrastructures keep education
and benefit from personalized teacher to understand the environmental impact establishment agile, better able to keep
support: more intimate discussions and of working oil platforms and identify up with new trends and adopt new
exercises with smaller groups of students, measures that will reduce any impacts. technologies as they emerge. After all, the
for example. Furthermore, combining z-generation won’t tolerate anything less
MOOCs with adaptive learning increases than a modern, flexible environment that
flexibility and helps previously discouraged Operational empowers them to take control of their
students to progress better since teachers’ Excellence learning.
time is freed up so they can help those
students who need it most.
The education environment is incredibly Trust and
Schools and college’s ability to offer exciting, but also incredibly tough thanks to Compliance
individual tailored services will set them budget constraints. Schools must continue
apart from the MOOCs. To do this they to improve the quality of education without
must make sense of the data they retain raising costs. Digital technologies have Schools are increasingly creating their own
about their students. A school might, for become key to delivering more and better IT-based educational environment, where
example, use information on a student’s education for less. Conversely, just keeping students have to register to use the school’s
attendance and grades to flag up a need up with today’s fast-changing technology learning material and communicate with
for additional support. This helps ensure domains can be costly. teachers, schedule exam or get their
every student attains predefined levels
results. To keep all this data safe and
of skills and competences, enhancing The demands on teachers are becoming ensure the availability of their services,
the school’s reputation in a climate of more complex. Teachers are not only educational establishments must protect
increasing competition. finding it increasingly difficult to manage this environment from the increasingly
their agendas as education becomes diverse cyber threats. Cyber-attacks need
The role of universities is changing more personalized, they're expected to be foreseen, understood and prevented.
too: they're becoming ecosystems, to be sensitive to culture and gender Prevention plans should include recovery
blurring their boundaries with large scale issues, respond to students with learning measures that will minimize impact in the
enterprises through offering co-innovation, or behavioral difficulties and adopt new event of an attack.
innovation hubs and a safe harbor for technologies – all while keeping pace with
start-ups. As universities become innovative developments in their field of knowledge. And as students bring their own devices
job creation engines they will need to
into the physical and virtual classroom,
change their business models and financial As schools transition from a static schools have to grapple with new security
structures. bricks-and-mortar to a blended learning challenges. They must ensure their
environment, the school building becomes infrastructure has adequate security
Many universities already collect vast an environment for face-to-face social measures in place to allow diverse new
amounts of data for scientific and research networking. As they modernize and devices to enter their networks.
purposes. Open Data initiatives, which focus harmonize, educational establishments are

Ascent Look Out 87


Education

As they move to a more virtual


environment, educational establishments
must also continue to keep students safe
within their physical spaces. Preventing
violence – particularly gun and knife crime
– from both internal and external felons
remains on the agenda.

Professors, staff and students also expect


to have adequate privacy, preventing
their personal and sensitive information
being used for commercial purposes.
Children (and proud parents) are equally
keen to protect all the things they have
created during their school life – from their
kindergarten drawings to graduate thesis.
After all, moving to a digital environment
shouldn’t prevent the next generation from
saving their school memories.

As students increasingly look to take


advantage of the growing range of courses
made available and accessible through the
internet, educational bodies will need to
explore how they ensure remote courses
fit into their grading systems. In the future
they may need to look deeper into how
they decide which establishments they can
trust and how they establish that a certain
set of courses provides a level and mix of
learning aligned to a particular student
achievement award.

88 #AscentLookOut
Education

Mainstream
5G networks Early adoption
Adolescent
Emerging
Self-adaptive security

Prescriptive
analytics
Cloud Service
Integration

Distributed analytics

Internet of Things Virtual assistants


Privacy-
Pattern-matching enhancing technologies
Context- technologies
rich systems Semantic technologies
Innovation value webs
Augmented reality

Wearable computing 3D printing


Robotics
Gamification
Haptic
technologies
Mobile and social Hybrid cloud
media apps

2016 2017 2018 2019+


© Atos 2016. All rights reserved.

Key Enablers networks mean they can participate from


almost anywhere.
Digital identities provide a vital role in
enabling educational establishments
to work together to deliver the digital
3D printing
Augmented reality classroom, with cloud-based federated
3D printing helps students understand
Game-based learning approaches and identity services securing and simplifying
the complex processes of composition
visualization technologies – including virtual the extension of identity and access
and design, which are part of science,
worlds, virtual reality, augmented reality management beyond individual
technology, engineering and math.
and fully immersive environments such educational establishments. In addition,
Introducing robotics into their 3D printing
as caves and domes – engage learners national bodies depend on them for
design helps learners to understand
of all ages and levels. Medical students, filing exams. And institutions are working
complex mathematical concepts as well
for example, use immersive technology harder to ensure they have robust security
as basic and advanced electronics. It also
simulations to learn their craft. management systems in place.
helps to develop creative attitudes and
competences that will eventually contribute
Cloud Service Integration Context-rich systems
to fostering the learners’ interest in science
As the numbers and types of devices Designed around the user experience,
and innovation.
participating expand, interaction patterns context-rich systems bring together
between cloud components and students insight from diverse systems in the
5G networks
have become even more complex. Cloud learning environment to tailor contents and
Highly-integrated hyper-collaboration
Service Integration allows educational learning experiences to students’ needs
technologies such as video conferencing
services from diverse educational on the fly. These systems make content
and unified communications allow teachers
establishments to be seamlessly connected and experience more student-centric by,
and students to collaborate in real time.
across a multitude of devices to provide a for example, enabling adaptive learning:
New low power, extended range 5G
truly blended learning experience. adjusting materials according to the

Ascent Look Out 89


Education

information gathered on anything from platform for creating, sharing and refining such as identity theft, hacking and the theft
a student’s performance, learning pace ideas and materials. of intellectual property. Privacy-enhancing
and learning preferences to their location, technologies (PET) control disclosure of
device-type and network capabilities. Internet of Things data, helping educational establishments
The Internet of Things (IoT) connects to manage privacy risk by ensuring
Distributed analytics students’ devices to cloud services and compliance with data protection legislation
Diverse sources of data are processed educational assets. Their wearable devices and regulation.
across diverse systems to provide a single might, for example, provide access to
view of the student, their performance, school premises, specific rooms or even Robotics
behaviors, needs and desires that is individual pieces of equipment. The Introducing robotics to learning is an
more comprehensive than ever before. data shared ensures computer settings effective way of introducing programming
Distributed analytics provides teachers automatically reflect the individual student’s to very young learners, contributing
with the insight they need to offer needs when they log in, providing larger to the acquisition of a set of skills and
students with a personalized, meaningful fonts for a visually impaired student for competences that will be mandatory for
and engaging learning experience. For example. their future employment. Robots also help
educational institutions it provides the learners with different types of abilities or
insight needed to optimize the different Mobile and social media apps special needs.
organizational aspects of learning from Students are increasingly learning about
learning spaces to resources. specific topics by watching online videos Self-adaptive security
outside of the classroom, then making the Students – and in some instances their
Local education authorities are also most of class time for engaging face-to-face guardians – are able to access information
leveraging distributed analytics for discussions with their peers and for seeking to help them appreciate their progress
assessing and planning communities’ teachers’ guidance on specific matters – the and also to ensure support at home is
educational needs. By combining data flipped classroom. Mobile and social media aligned with learning in the classroom.
from schools and GP practices, and taking apps deliver learning content to students’ Self-adaptive security with its dynamic
into account migration and new housing mobile devices through the cloud. access control capabilities ensures
developments, amongst other things, teachers, students and parents alike have
they're making real-time forecasts for pupil Pattern-matching technologies access to the classrooms, information and
numbers. Schools are able to make informed systems they need to access, but only
decisions around what works best for each when they need it and on the devices
Gamification student or when intervention is required, where they need it. Schools may want, for
Introducing gaming mechanisms into for example. As part of the learning example, to prevent students’ exam results
the learning experience, also known as analytics approach, pattern-matching or progress from being accessible on their
gamification, motivates students to want technologies help schools identify specific smartphones to minimize opportunities for
to learn, to take ownership of their learning behavior patterns that might indicate a school bullies.
and to maintain their focus on the learning need for additional educational support or
task in hand. Students are learning about that a student is being affected by events Semantic technologies
concepts in the real world by solving outside of school. Behind the scenes semantic technologies
riddles and experiencing simulated help intelligent systems to understand the
situations. Role-playing games allow Prescriptive analytics relationships within and across data.
teachers to experience difficult situations Rather than allowing problems to escalate,
and learn to manage them. a predictive model can forecast students’ Virtual assistants
results and alert staff of potential issues. Innovations, such as virtual assistants,
Haptic technologies The other element of learning analytics, provide students with the advice they need,
Wearable haptic technologies ensure very prescriptive analytics, goes beyond when they need it. They have an important
young children also benefit from digital predictive models by showing the likely role to play in remote locations or where
learning. These technologies provide a fun outcome of one or more possible courses the student is unable to access a teacher
way to engage in real life experiences and of action. directly – for example if they're learning
to learn about the world around them. Prescriptive analytics is also helping from home while they're recovering from
students make the best choices for new an illness.
Hybrid cloud learning and future careers. Time spent and
Education institutions are increasingly results achieved will lead to suggestions Wearable computing
adopting hybrid cloud services to enhance for jobs and career paths when most In the case of social media apps, the
the student experience by augmenting students don’t know what they want to do surrounding social media environment
learning resources offered through internal or become. offers a platform for students to share their
private clouds with the myriad of learning thoughts, concerns and ideas. As such,
resources available on public cloud Privacy-enhancing technologies learning can take place anytime and on
infrastructures. As students share more information any device – from desktops and laptops to
on social media and with public sector tablets, smartphones and even wearables.
Innovation Value Webs organizations they will be looking to Whatever the device, learning should be
As educational establishments across ensure that the information they supply is accessible to all – including those with
the globe increase their collaboration, appropriately protected. Social media, in visual, movement or hearing impairments,
innovation value webs provide an ideal particular, brings new security challenges or any other disabilities.

90 #AscentLookOut
Education

Key Enablers in Education

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3D printing Internet of Things

Mobile and social media


5G networks
apps

Augmented reality Pattern-matching


technologies

Cloud Service
Integration Prescriptive analytics

Privacy-enhancing
Context-rich systems
technologies

Distributed analytics Robotics

Gamification Self-adaptive security

Haptic technologies Semantic technologies

Hybrid cloud Virtual assistants

Innovation Value Webs Wearable computing

Ascent Look Out 91


Market views

Government

Rising expectations of hyper-connected Use of e-gov services expected


citizens to triple
Digital by default could bring €10bn in
Growing security and privacy concerns
annual savings
Governments becoming solution 90% of jobs will require some level of
enablers digital skills
Balancing personalized and lean 47% of EU population is not properly
services digitally skilled

Key Market Challenges

Customer digital experience. Delivered through a


single point of engagement and tailored
governors that ensure legitimate use of
data; they're also digital technology users,
Experience to individual needs and behaviors, it leveraging it for reinventing their services
empowers citizens by making it easier to and enhancing their economies.
access the services and information they
The modern public service views the need. For governments, it allows them In Europe, for example, the European Digital
citizen as a customer: a consumer whose to build a deeper relationship with their Single Market (DSM) aims to enhance
respect, satisfaction and loyalty are citizens while reducing the administrative Europe's position as a world leader in the
fundamental. Meanwhile, our modern burden. digital economy by improving access to
society demands that the citizen has the digital goods and services across Europe
right to be protected – regardless of age, Citizens expect to have to share their and helping innovative digital networks and
gender, location or origins - a contribution information with government only once, to services to flourish. It does, however, need
to make and obligations to fulfill. receive a consistent service and seamless a European push on defining standards
experience across all departments, public and encouraging interoperability. Standards
Citizens themselves are changing too; their services and different governmental are currently defined by industries
interests, preferences and capabilities are organizations. Today, governments are organizations, and often outside of Europe.
quite different from what they were just a striving to obtain a 360° view on their
few years ago. They're more tech-savvy, citizens and society. Without it departments The roles of government institutions are
own more and smarter devices, and expect will struggle to deliver the engaging, changing too. As books become e-books
services to be engaging, personalized and personalized and familiar services their accessed online, the role of the library must
available whenever and wherever they're citizens are demanding. evolve too, for example. Local governments
needed. At the same time, populations are need to redefine the role played by current
aging, the number of single households What’s more, today’s smart devices institutions in the modern world and create
is rising and growing migration means and social technologies are changing new institutions to fill any gaps.
populations are growing in some regions as the relationship between citizens and
talent moves in and declining in others as it the government bodies they have Government agencies must also explore
moves out. elected. All these new technologies and how to make best use of the growing
communications platforms amplify the volumes of citizen data. Combining data
Citizens and businesses are increasingly voice of the citizen. Civil servants are held on diverse systems across agencies
expecting their engagement with more highly scrutinized than ever before. will allow them to create deeper insights
government to be on par with the Any infringement of the law or moral and that will enable them to both make more
consumer market. This means ethics can create an avalanche of public informed decisions and operate in new
governments need to ensure relevant discontentment. ways. It will also help pinpoint citizens who
services and information are not only are not meeting their obligations – such
readily available online, but easy to find as paying their taxes or attending school –
and easy to use on any desktop or mobile Business and identify citizens who are most at risk so
device. Designed with accessibility in Reinvention they can be offered the support they need.
mind, everybody must be able to access
the resources they need, regardless of a The rise in public/private collaboration is
disability. accelerating and, to some extent, redefining
As we move to a more digitized world,
the role of governments is changing. the economic options open to public sector
As a consequence, governments’ digital organizations. Relationships between
Governments are not simply digital
strategies are shifting from bringing single collaborating enterprises are shifting from
transformation facilitators and the
services online toward a more holistic capital-intensive to operationally-linked

92 #AscentLookOut
Government

‘‘Government agencies must also explore how to


make best use of the growing volumes of citizen
data. Combining data held on diverse systems
across agencies will allow them to create deeper
Egbert-Jan Niels de Schutter
Koekkoek Global Head of
insights that will enable them to both make more
Director Business Public & Health informed decisions and operate in new ways.’’
Development Central Solutions
Government

economic models. In the public sector, bodies, there's pressure for change. While boost citizen empowerment, allowing
where tax remains the prime funding centralized services can be delivered more individuals to control how their personal
source, this is critical. New multi-sided efficiently, benefitting from economies of data held by private sector organizations is
business models see governments scale, centralization also has its drawbacks: used. Transparency and innovation will help
as either the market place provider – citizens feel alienated having to travel to companies boost their innovation activities.
providing security or privacy governance, hospitals outside of their community or In the UK the ‘mydata’ initiative is opening
for example – or being a simple customer, taking their children to bigger, specialized up the data held by businesses, giving the
cross-funding large infrastructure projects, academies further away from home. The individual access to their personal data
electronic identification projects and more. swing back from big to small is underway, – such as energy usage, credit card fees,
specifically with public sector budgets phone tariffs and weekly spend – so they
becoming more regionalized. can make more informed decisions.
Operational
Excellence Today’s governments have to exercise The ways people need to be protected are
a difficult balance between providing changing. In an increasingly connected
services that are engaging and world, citizens expect governments to
personalized and providing services safeguard their data, their communications
Governments must continue to deliver
that are agile and lean. Modernized and their services. The confidentiality,
more with less; to do that they must rethink
governmental institutions shall have to find integrity and availability of information
their operational and delivery models.
a way to do this. Controlling and creating a are more crucial than ever before. Citizens
Automating core processes will play a
360° view of the citizen might be possible expect governments to not only prevent
key part in ensuring services are well-
for now, but may later backfire because of breaches that could see their personal
organized and cost-effective by enhancing
privacy concerns. information fall into the hands of fraudsters,
appointment scheduling, optimizing case
but ensure digital services remain available
management or eliminating manual data
on any channel they may choose to
entry tasks. Trust and interact.
Automation could also help the judicial Compliance
But it’s not just the citizen that is at risk –
system that is already under pressure and
national security is also at stake. If critical
seeing delays in cases, for instance. The
national infrastructure – such as hospital,
vast volumes of documents associated Government and governance are bound
energy or transport communications or
with cases could be automatically uploaded together and we need to be able to
IT systems – is not adequately protected,
and organized to accelerate case resolution implement decisions for the common good
cybercriminals could cause major havoc –
times and make more efficient use of at both a national and international level.
and even put lives in danger. Governments
resources. With new international legislation emerging
must continue to keep ahead of new
all the time, national government must
technologies before fraudsters and
To maximize its full potential, automation be able to plan and implement regulatory
cybercriminals, in particular, can evolve
needs full end-to-end integration across change smoothly. Around Europe, EU
their activities.
the government ecosystem. Beyond members who are regularly finding
simply saving time and money, automation themselves facing hefty fines from non-
In the sharing economy, governments are
will also ensure services are delivered compliance are looking for more freedom
finding it more difficult to keep track of
consistently and at a very high level. to choose which laws they abide by at EU-
their citizen’s activities. New peer-to-peer
level and which they abide by locally.
consumer business models mean it's not
Across all public sector organizations,
clear who is working where or selling what,
from school and hospitals to governing Future government legislations might
for example. The potential for

Ascent Look Out 93


Government

citizens to evade their tax and regulatory


responsibilities has heightened.

From the global to the individual level,


sustainability is now climbing the agenda
as people begin to experience the
impact of climate change for themselves.
Sustainability is achieved partly through
regulation and partly through public
consciousness. The public sector must
design and deliver sustainable services by
addressing environmental, economic and
social impact as society changes.

Equally, public and private sector


organizations must work together to
develop strategies to minimize the negative
impact of human activity on the planet,
increasing energy efficiency and reducing
greenhouse gas emissions.

94 #AscentLookOut
Government

Mainstream
Early adoption
5G networks
Adolescent
Emerging

Privacy-enhancing
technologies
Web-scale computing

Prescriptive analytics

Internet of Context-rich
Things systems Intelligence amplification
Edge computing
Distributed
analytics
Cloud Service
Integration
Wearable computing
Cyber physical
systems
Sentiment Autonomous vehicles
analytics
Hybrid cloud Augmented
Open Data reality
Mobile and social
media apps
2016 2017 2018 2019+
© Atos 2016. All rights reserved.

Key Enablers engaging with, either face-to-face or over


the phone. Embedded cameras relay
may also be used to protect access to
government buildings and assets and
pictures back to base to record activities or also public services across borders. Cloud
5G networks
tap into the insight of an expert or senior Service Integration with its federated
New low power, extended range 5G
manager. identity services simplifies the extension of
networks rolled out across both rural
identity and access management beyond
and urban areas ensure all citizens are
Autonomous vehicles national public sector boundaries, into the
connected and can access government
Unmanned aerial vehicles (UAVs) are also workflows of private-sector businesses
resources wherever and whenever they
helping to monitor critical infrastructure and overseas public sector organizations,
need to. The digitally literate government
and government assets. Often referred to improving the mobility of citizens.
workforce, from frontline workers to
simply as ‘drones’, these UAVs have relieved
the highest executives, also relies on
engineers from hazardous inspection Context-rich systems
5G networks for the more mobile and
activities. Onboard cameras relay videos The citizen and employee experience
accessible work environment, which has
and photos to the operator, while sensors is integrated across every channel
increased productivity significantly over
gather data on the environment – on of interaction. It's not only seamless
recent years.
temperature and air quality, for example. and consistent across all services; it's
convenient and personalized. Online
Augmented reality
Cloud Service Integration services are augmented by situational
Government employees across numerous
Both citizens and government employees context and real-time interactions. Behind
agencies can access vital information
depend on electronic identification (e- the scenes, context-rich systems combine
hands-free through modern wearable
ID) for ensuring their access to online intelligence from diverse systems to
devices, improving productivity.
government resources is secure no proactively anticipate citizens’ specific
Augmented reality provides detailed
matter which device or channel they needs. They ensure the resources needed
information on the individual they're
choose to interact on. These identities are highly visible when needed, adjusting

Ascent Look Out 95


Government

content based on device-type, network and sector employees to interpret and react governance around citizen privacy.
input capabilities. to the broader context of intelligence
derived through advanced analytics and Sentiment analytics
Cyber-physical systems machine learning. Computer-generated Governments began leveraging social
Body cams worn by law enforcement analytics might, for example, highlight media some years ago to help them
agencies not only provide video images an increase in the number of people engage more deeply with their citizens.
of any police interactions, they're linked missing appointments. Only a human can Social media not only provides citizens
with wearables that monitor the well-being correctly interpret the data; a machine is with a platform where they can express
of the constable. These cyber-physical unlikely to understand the wider context their needs, desires and concerns, it also
systems (CPS) both monitor and control and realize this is likely to be a temporary allows governments to present information
the physical environment. Any signs of glitch connected to the current football from different departments as a single
distress and these smart systems can championship. communication and provides a platform for
automatically call for back-up, medical politicians to canvas opinions on proposals
assistance or automatically divert traffic Internet of Things or policy initiatives. Furthermore, advanced
away from an area by interacting with 5G enables more simultaneous social media analytics with its sentiment
smart traffic controls. connections, ensuring connectivity for analytics provides governments with
the growing base of intelligent objects. deeper insight into the needs and desires
Distributed analytics These have been combined with traditional of different segments of the population.
Analytics running across diverse systems internet and IT systems and modern social Forward thinking departments and
in different departments provide a near media sources, amongst other things, to politicians listen and actively innovate
360° view of the citizen to individual create a smart city based on the Internet based on what they learn.
government agencies. Distributed of Things (IoT). Sensors placed in lantern
analytics helps ensure each engages with poles or the ground monitor availability Wearable computing
the citizen consistently, more personally of on-street parking places throughout Citizens can interact with government
and appropriately. This comprehensive the city. Smartphone apps guide drivers departments at any time, from anywhere,
view of the citizen allows departments to to available parking places, minimizing on any channel, using any device – from
make informed decisions on the care they the time spent looking for a suitable spot, tablets and laptops to smartphones
need to provide to vulnerable citizens, for reducing traffic and pollution. At the same and wearables – without having to visit
example, or whether to take a tougher time the use of available on-street parking government offices in person.
approach with individuals who have capacity is maximized and thus income
failed to comply with a number of other from parking fees. Web-scale computing
departments. Governments are progressing toward
Mobile and social media apps web-scale computing with its highly
Edge computing Diverse governmental services will soon scalable, inexpensive open source-based
Some governments are leveraging edge all be available online, through mobile and hardware, integrated computer resources
computing to process that data close social media apps as well as web pages. and self-healing capabilities. Its operational
to the point of capture to make real- simplicity allows departments to be
time assessments about what actions Open Data more agile while optimizing investments.
they should take. Running constantly Governments are embracing the economic Cloud adoption was their first step in this
in the background and embedded into value of opening up data through Open direction.
business processes, it processes sensor Data initiatives. To make it accessible open
and environmental data. Edge computing data should be in a standardized format,
proved particularly useful in emergency easy to link to, with guaranteed availability
situations where it adjusts activities on the and consistency over time. It should also be
fly as events unfold, requesting the expert easily traceable so that it can be trusted.
resources needed or reprioritizing activities.
Prescriptive analytics
Hybrid cloud Combined with prescriptive analytics,
Already on the landscape, cloud computing UAVs play a role in maintaining and
has just touched the tip of the iceberg extending the life of the country’s assets.
when it comes to the role it will play in In the Netherlands, for example, UAVs
public sector. Cloud enables organizations transmit diagnostics data from dykes
across public sector to share resources, back to a central control center. Advanced
reducing costs and providing access to analytics determine maintenance
additional resources as required. Hybrid requirements and prescribe a course
cloud allows governments to combine of action that will ensure the dykes are
internal private clouds with external cloud- repaired before they fail while, at the same
based environments. time, avoiding unnecessary maintenance.

Intelligence amplification Privacy-enhancing technologies


Decision-making has also been greatly With a more rounded view of the citizen
enhanced through intelligence now available, privacy-enhancing
amplification, which requires public technologies are helping to ensure

96 #AscentLookOut
Government

Key Enablers in Government

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Intelligence
5G networks amplification

Augmented reality Internet of Things

Mobile and social media


Autonomous vehicles
apps

Cloud Service
Open Data
Integration

Context-rich systems Prescriptive analytics

Privacy-enhancing
Cyber physical systems
technologies

Distributed analytics Sentiment analytics

Edge computing Wearable computing

Hybrid cloud Web-scale computing

Ascent Look Out 97


Market views

Healthcare

63% believe online is best for booking Shift toward patient-centered, value-
appointments based healthcare
70% using digital channels for medical Patients increasingly using digital for
education healthcare
63% prefer a single app for holding all Patient generated & genomic data
their data spurring innovation
Digital may reduce European Growing health needs of an aging
healthcare costs by 10% global population

Key Market Challenges

Customer The average life expectancy is increasing in


many regions of the world and with it the
healthcare experience is improved before
the end of an encounter. In addition,
Experience occurrence of chronic illness. According to transparent clinical performance data
the World Health Organization, in 2013 life allows patients to make informed decisions
expectancy at birth for both sexes globally about their care and, at the same time,
People’s attitudes to healthcare are was 71 years – a global increase of six years helps improve clinical performance.
changing. Instead of ’just’ getting treatment since 1990.
for their illnesses, people are taking
responsibility for their own wellbeing and Senior citizens have some specific needs Business
want to be empowered to make informed that need to be addressed: they're more Reinvention
choices about their healthcare, especially likely to need prompting to take medication
when they have chronic health conditions. and attend appointments, to experience
They might appreciate tools such as loneliness and to find themselves in critical
personalized health portals that provide situations where they need immediate help. Healthcare is a sector in transformation.
access to information about their condition, Patients are better-informed and focusing
including videos, chat and the opportunity When full recovery is not possible, the on preventive healthcare, treatment
to share experiences and information on focus turns to quality of life. Raising the processes are more complex, healthcare
treatments with other patients. quality of day-to-day activities becomes workers have more real-time data and
more important than ever before. This the administration workload is heavier.
Increasingly engaged people are also requires an ecosystem that connects all of To be effective and efficient in delivering
appreciating how preventive healthcare assistance needs for the elderly and infirm healthcare that matches higher patient
reduces incidents of ill-health, choosing – from their health, care, medication and expectations, healthcare providers must
ambulant healthcare in favor of clinical nutrition to their appointments, finances create a new business model – a model for
healthcare and opting for more treatments and social lives – and allows friends and empowered health provision.
to be carried out from home. Insurance relatives to take more responsibility for their
companies, for example, are testing care. Some countries are building new facilities
win-win models that reward customers to allow primary, hospital and social care
leading a healthier lifestyle that will prevent Meanwhile, the healthcare workforce to be organized and delivered centrally.
future ill-health. Personal real-time health is gaining the better understanding of Services from smaller general healthcare
monitors, amongst other things, provide patients’ individual needs that is vital for facilities are being transferred to larger
the data required to determine whether the improving the quality of healthcare. Health establishments, bringing everything –
customers are making the lifestyle changes service providers are changing from including all funding – together. There are
required. siloed patient administrators to holistic synergies to be gained by centralizing
medication managers. They have the support functions or, depending on scale,
Patients’ expectations around the quality more complete understanding of each organizing them in a shared service center.
of healthcare services are rising too. patient that is vital for determining the best Economies of scale allow services to
They’re looking for personalized services solution. Providers are moving toward a be delivered more efficiently and cost-
and support that deliver improved precision medicine model where healthcare effectively.
outcomes, self-service tools and a seamless – including all decisions, treatments and
experience anytime, anywhere. Gaining a products – are tailored to the individual On the other side, countries are also
360° view of patients is vital for delivering patient, based on their genetics. building more specialized care capabilities,
the engaging, tailored and consistent often as satellite facilities. Collaboration
experience today’s patients expect – both Giving patients the opportunity to provide between these specialist healthcare
online and in the physical world. real-time feedback will help ensure their facilities is increasing. University clinics

98 #AscentLookOut
Healthcare

‘‘Providers are moving toward a precision medicine model where


healthcare – including all decisions, treatments and products – are
tailored to the individual patient, based on their genetics.’’
Ruud van der Loo
Vice President, Global
Healthcare Market

are coming closer together too, creating information produced to help simplify its creating a sustainable system. Patients
concentration within each specialism. transformation into integrated knowledge. would also benefit from research and
clinical trials activities currently included
The relationship between the healthcare Hospitals already collect vast amounts within research pathways at academic
provider – general practitioner, hospital of insightful eHealth data. They might hospitals being connected to their care
or other provider – and equipment consider monetizing anonymized health pathways.
supplier is evolving too. New ecosystems records, offering new services that
are emerging, with business models make previously inaccessible data more An integrated and transparent eHealth
that are reevaluating who actually owns available. Examples might include offering solution is needed that encompasses all
the medical device, who pays for its anonymized patient data to pharmaceutical stakeholders, from citizen to professional.
support and maintenance, and how risk is companies who might use it to search for But, at present, the wider health ecosystem
distributed. intelligence that might be developed to lacks any mature business model
improve procedures or treatments. connecting all these parts. Interaction
Both the centralized and the specialist between organizations within the
services models allow health and social ecosystem must be straightforward. After
care providers to come together to Operational all, interoperability is vital for delivering
exchange information and deliver the Excellence effective healthcare.
truly joined-up services that both improve
outcomes and cut cost. An eHealth The growing digitization of all healthcare
solution that shares real-time data across processes and technologies is helping
Demographic changes, continuous
patient pathways, for example, makes early to improve patient outcomes, simplify
innovation and growing regulations
diagnosis and disease prevention possible. healthcare processes and shorten cycles.
are putting pressure on the financial
Risk can be assessed more accurately eHealth is already boosting efficiency,
sustainability of healthcare systems. With
and providers can deliver the proactive increasing agility and reducing cost –
demand growing fast and resources
personalized care patients expect. which in turn allows providers to fund
limited, these systems are under immense
innovation to improve their services further.
stress, particularly in developed countries.
Collaboration across new, broader Electronic healthcare records, for example,
Healthcare providers need to do more
healthcare ecosystems that include both give providers the more complete patient
with less. Increasing convergence between
public and private sector organizations information that enables them to make
cure and care organizations is helping. Co-
is accelerating technology and process well-informed treatment decisions quickly
operation is of strategic importance; it will
innovation, disrupting traditional and safely. Providers have come a long way
ensure effort is not duplicated and, in doing
business models. New performance- already, but there's more to be done.
so, optimize use of valuable resources –
based drug reimbursement models offer
particularly doctors and ambulances.
pharmaceutical companies a higher Automation will play a key part in
reimbursement rate for better results. In ensuring services are well-organized and
Major improvements in the way care is
this model the pharma carries the risk. cost-effective. But to maximize its full
organized, via care pathways amongst
potential, automation needs full end-to-
other things, are minimizing patient
Meanwhile, the Virtual Physiological Human end integration across the healthcare
throughput times. Integrated care is
(VPH) methodology and technological ecosystem. Beyond simply saving time
becoming the norm across patients, rooms,
framework, for example, aims to enable and money, automation will also ensure
beds, materials and staff. It also includes
collaborative investigation of the human services are delivered consistently and
integration with family, social services and
body as a single complex system. A new at a very high level. However, existing IT
the other relevant actors in an individual’s
approach integrates the huge volumes of solutions are often specific to a particular
continuum of care that are important for
biomedical research and clinical practice organization or function, and that results in

Ascent Look Out 99


Healthcare

information silos and business processes across both physical and virtual worlds personal control and integrity of health
that are not sufficiently integrated. throughout all hours of the day and night. data before developing any new services
A combination of regulatory pressures, that require targeted promotion of relevant
Even though the cost of overhead and operational cost and patient expectations health and care services or proactive
support processes will decrease over has led healthcare providers to adopt a sharing of personal healthcare data with
time, state healthcare provision, based on proactive stance in both physical and cyber chosen providers.
taxation alone, is no longer sustainable. security.
Sustainable healthcare requires a mix of At the same time, information provenance
public and private services. Interaction The personal and sensitive nature of becomes paramount. As more and more
between public and private providers patient data means that all healthcare people turn to the internet to source
reduces costs, opens access to specialized providers must consider its confidentiality, information about their condition, they
capabilities and makes services more integrity and availability as part of the need ways to ensure it comes from a
scalable. In many countries there are same process. In some countries, patients reliable and trusted source.
already a lot of public/private initiatives, are concerned about the digitization of
with the state withdrawing more and more. their personal health information; but their
concerns are diminishing as they become
accustomed to sharing more and more
Trust and information online in return for value-added
Compliance services. Sharing personal health data
with their wearable device manufacturer
in return for analysis on their fitness is one
such example.
For most people, there's one aspect of
life that takes priority over all the rest:
New security solutions will be critical for
their health. That’s why we want to have
ensuring people can access data and
confidence in our healthcare systems,
suites of tools when they need them,
both today and into the future. Healthcare
regardless of where data sources are
legislators, funders and service providers
located. The security, reliability and integrity
need to be able to guarantee the availability
of information becomes even more crucial
and quality of healthcare provision for the
as patients gain direct control over what
population.
their personal data can be used for and
with whom it can be shared. To that end,
People, assets and infrastructure must be
healthcare providers need to ensure
secured from known and emerging threats

100 #AscentLookOut
Healthcare

Mainstream
3D printing
Early adoption
Adolescent
Emerging

Distributed
analytics
Virtual assistants
Privacy-enhancing
technologies
Smart Edge computing
machines
Internet of
Things Advanced data
Wearable visualization
computing Prescriptive Semantic
High performance analytics technologies
computing Augmented Robotics
Streaming reality
analytics Cloud Service Integration
Mobile apps
Pattern-matching
Multi-factor technologies
authentication Gamification
Telemedicine

Social media
analytics Intelligence
Near field amplification
communication
2016 2017 2018 2019+
© Atos 2016. All rights reserved.

Key Enablers specific drug, physicians can predict how


the patient’s body is likely to react.
brought together by Cloud Service
Integration.
3D printing
Augmented reality Distributed analytics
Customized implants have significantly
Augmented reality delivers patients To deliver patient-centric, real-time
improved outcomes from everyday
personalized self-management guidance healthcare, all health and social workers
surgery. 3D printing produces one-off
– such as reminders to take medication – involved in each patient’s care need to have
patient-specific devices that precisely
through wearable glasses. During surgery, a single, consistent and up-to-date 360°
mimic the curves and surface of the part
augmented reality provides the surgeon view of the patient, their treatment, their
they're replacing, such as a knee, to ensure
with information on vital signs such as needs and their behaviors. Distributed
a perfect fit. These inexpensive devices
heart rate and the blood pressure. analytics provides a comprehensive view
reduce the amount of post-surgery therapy
of the patient that allows departments
required and allow the patient to get back
Cloud Service Integration to make informed decisions on their
to normal activity levels much faster than
Situation-aware federated identity treatment and care.
with off-the-shelf implants.
governance will help secure eHealth
platforms, providing secure federated Edge computing
Advanced data visualization Edge computing enables smart devices to
access to patient information across silos:
Simulations that leverage 3D visualization process their critical data near to its source
between hospitals’ departments and
technologies give physicians a better to maximize security, optimize bandwidth
practitioners’ offices for example. In the
indication of likely outcomes. By taking a and ensure it’s available in real time.
future, trusted information brokers will act
simulation of a heart, adapting it to model
as a central verification service to avoid
a specific person and then simulating
the need for individual registration and
the administration of a specific dose of a
authentication of individual cloud services

Ascent Look Out 101


Healthcare

Gamification Multi-factor authentication helping the patient establish a new routine.


Age-related physical and cognitive Next generation access management As acceptance of them grows, they're
impairments are being improved with will generalize adaptive multi-factor increasingly helping old and young alike
the help of personalized, serious games: authentication, leveraging smart cards, learn how to manage their disease and
gamification. Results are monitored RFID badges and biometric readers to cope with everyday life – particularly after a
to maintain continuous improvement provide access to mobile devices such as life-changing accident or illness.
in an environment where users can tablets, bedside terminals in hospitals, kiosk
compete with each other to increase their workstations shared by medical personnel Semantic technologies
motivation. and more. Semantic technologies help providers
integrate diverse formats of information
High performance computing Near field communication from those disparate systems. They also
With the volumes, variety and velocity Smart medical devices are using help with sharing a single holistic view
of data accelerating, high performance embedded Bluetooth and near field of the patient across departments and
computing is needed for handling the communication (NFC) technologies organizations.
complex simulations and analyses that are to connect to other medical devices or
vital for the diagnostic testing required to computing platforms, such as tablets, Smart machines
select therapies in a precision approach to smartphones and computers. Doctors and To accelerate adoption, new innovations
medicine. other healthcare professionals use NFC to must be simple and usable so that people
gain access to information about a specific and healthcare workers are motivated
Intelligence amplification patient and to log when they visit a patient to use them. Take sensor technologies:
As the pace at which medical and social or administer drugs as they do their rounds they’re now embedded in familiar medical
science advances accelerates, health and on the ward. apparatus. In walkers, embedded sensors
care workers are increasingly adopting help ensure the user is positioning the
intelligence amplification techniques to Pattern-matching technologies walker correctly. This is a prime example
help them keep up to date with the latest The medical community is turning to of an innovation that people are accepting
thinking. This field of technology allows pattern-matching technologies such as without hesitation, while significantly
the medical community to augment their deep learning to help them understand enhancing the use of an everyday medical
personal expertise with an easy-to-interpret and predict the spread of viruses. These appliance.
advanced analysis of the latest research technologies help to identify hidden
findings or case histories. transmission patterns and identify Social media analytics
behaviors that help reduce the risk of Social technologies, such as social
Internet of Things infection or minimize the impact of a networks and blogs, are helping to ensure
Connectivity is driving the rise of patient- disease. people are kept informed. The information
centric, real-time healthcare that is shared helps people take a greater role
empowering patients and enhancing Prescriptive analytics in managing their wellbeing; discussion
efficiency in a new ways, allowing doctors Advanced analysis of the up-to-date 360° groups managed by healthcare experts
to treat patients remotely, for example. view of an individual, which also includes allowed patients to make informed choices
Intelligence from smart devices is now their genetic profile, gives physicians a about their treatment. Social media
combined with information from numerous better understanding of a person’s risk analytics can help to alert authorities to
other diverse sources – from electronic whenever they see them. Prescriptive a potential epidemic before it gets out
patient records to information on rooms, analytics takes this comprehensive picture of control, allowing them to follow its
beds, materials and staff – in the Internet of and combines it with described symptoms, progression closely.
Things (IoT). treatments and known outcomes to
prescribe the best course of action. It's Streaming analytics
Outside of the hospital itself, the IoT is vital even employed as a more general tool Real-time healthcare depends on real-
for providing the integrated care – including to suggest what a person should do to time analysis of the growing volume
the connected assistance – that is critical minimize their risk of becoming ill in the data now available. Streaming analytics
for ensuring the elderly and infirm can future. gives organizations a means of extracting
live independently. Connected assistance intelligence from data in motion. Insights
not only monitors the individual’s health, it Privacy-enhancing technologies can be detected and acted on at a
provides access to carers and reduces the With more and more patient data digitized moment’s notice. A remote physician would
number of visits to the doctor’s surgery. and shared across departments, privacy- be able to react to a diabetic patient’s rise
enhancing technologies are helping in sugar levels, increasing their insulin
Mobile apps providers manage privacy risk by ensuring to reduce the risk of them becoming
New technologies are empowering people compliance with data protection legislation hyperglycemic.
with age-related dependencies to live and regulation.
independently for longer. Fully voice- Telemedicine
controlled, easy-to-use mobile apps have a Robotics More appropriately seen as ‘medicine
very high end-user acceptance. They also Advances in robotics aid people with without boarders’, telemedicine is far
foster active participation in society for amputations, making prosthetic limbs react more than just the remote sensors and
the aging population by suggesting and in a more personal and lifelike way. In the domotics that will play a key part in
managing events and social contacts. early phases of rehabilitation, robotics improving remote patient care through
plays a crucial but temporary role in monitoring vital signs and reacting

102 #AscentLookOut
Healthcare

appropriately. Telemedicine also includes important role to play in locations that monitoring the vital signs of older people,
technologies such as teleoperations, where are hard to reach or when high levels of for instance.
a surgeon carries out a surgical procedure infection might put medical staff at risk.
remotely (sometimes also referred to as The number and types of wearables is
telepresence), and practices such as the Wearable computing expanding rapidly. Innovations include LG’s
outsourcing of x-ray analysis overseas to In a few years from now smartphones, heart rate monitor earphones; Reebok’s
countries such as India. wearables and other smart devices Checklight, which measures the impact an
will mean patients are not only more athlete experiences; the Luma Back, which
Virtual assistants connected than ever before, but can more measures your posture, steps, sitting and
Innovations such as virtual assistants for easily be monitored in real time. These sleeping time; the Hexoskin vest, which
providing advice anytime and anywhere, technologies improve the care process measures your heart and breathing rate;
might not be so easily accepted. After by giving carers and medical staff direct and the MC10 Biostamp, which collects data
all, people like that human touch, access to the individual’s vital signs and such as body temperature, heart rate, brain
especially when they're feeling vulnerable. alerting them in an emergency. The data is activity, and exposure to ultraviolet radiation
Innovations such as these have an collected by unobtrusive wearable sensors, and more.

Key Enablers in Healthcare


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Near field
3D printing
communication
Advanced data Pattern-matching
visualization technologies

Augmented reality Prescriptive analytics

Cloud Service Privacy-enhancing


Integration technologies

Distributed analytics Robotics

Edge computing Semantic technologies

Gamification Smart machines

High performance
Social media analytics
computing

Intelligence Streaming analytics


amplification

Internet of Things Telemedicine

Mobile apps Virtual assistants

Multi-factor Wearable computing


authentication

Ascent Look Out 103


Market views

Homeland Security

Cybercrime & attacks to critical 4x more megacities with >10m citizens


infrastructures are weapons of future in 2050 bring new security challenges
Big Data analytics driving electronic 85% of population growth in high-
intelligence & surveillance income countries driven by migration
Security entities need to know more Number of people killed by terror
and share more attacks increased 10-fold since 2000
Mobile technology & power of Cybersecurity jobs projected to grow
communities bring completely new by more than 35% by 2020
threats

Key Market Challenges

Customer Business mechanisms that drive crowd behaviors.


While modernizing situational analysis,
Experience Reinvention investing in understanding and controlling
communications on social media will help
organizations prepare for any potential
Worldwide, citizens trust homeland security The changing behaviors and asymmetric emergencies uncovered.
organizations to keep them and their security threats of the twenty-first century
country safe, secure and resilient against require a complete rethink for security Meanwhile, the police on our streets must
today’s myriad of threats. The police, organizations. In a world where everyone is find new answers to age old challenges
border control, emergency response, crisis connected, menacing groups can leverage while tackling some new ones introduced
management and infrastructure protection social media to mobilize huge threatening by the digital world. How can technology
organizations are also key to the economic crowds in just a few hours, for example. help them engage better with a person
success of their nation. Together they with a visual or hearing impairment, for
protect vital cross-border travel and trade, Faced with these alarming new threats, example, or ensure they understand the
minimize the number of illegal immigrants organizations have to rethink their security needs and behaviors of someone with a
entering the country, safeguard society processes to keep ahead. From how they cognitive impairment?
from organized crime, secure virtual and analyze data to how they judge threat
physical infrastructures and respond to levels, their processes must be continually Today’s police forces are tasked with
catastrophes. evolved to keep ahead of the ever- the prevention, detection, response and
changing, evermore connected world. mitigation of both physical and cyber
At the border, entry into a country needs to threats. Advanced forensic tools able to
be straightforward, legal and safe to allow If we look at the EU, for example: the address new emergent technologies such
people to move freely. Travelers, whether number of first time asylum applicants as cloud and social networks are key to
business or leisure, want to feel secure, but increased by 85 percent in the second helping them protect cyberspace.
not overly controlled. Whether at an airport, quarter of 2015 compared with the same
seaport, train station or anywhere else, they quarter of the previous year, putting A rise in public/private collaboration is
expect every border control to be able to these mechanisms to test. The dramatic helping. But organizations must talk more
read their passport without any problems; movement of people changes from week with the industries that are asking to
along with transport authorities, travelers to week, even day to day. Social media participate, to help develop the products
become frustrated by long queues and keeps the travelers informed on the needed to control and secure borders.
delays. evolving situation as different countries They must turn to the universities that
open and close their borders, welcome and have researched the technologies and the
Interaction between organizations within then turn away asylum seekers. social behaviors. Increased interaction will
the wider homeland security ecosystem both accelerate innovation (bringing new
must be equally straightforward. Whether This expanding state of affairs is putting passports and other critical advances to
it’s the police or coastguard, for example, exceptional pressure not only on our borders in just a few years for instance)
exchanging information or sharing a border controls but also on intelligence and combat skill scarcity.
mission with the fire brigade, the Red units fighting crime and terrorism. The
Cross or any other partner organization, increasing tempo of change requires
interoperability is vital for ensuring situational analysis to be done differently:
an effective response to any threat. an up-to-the-minute picture requires
Any failings are soon picked up by the insight into chatter on social media and
media, eroding citizens’ confidence in patterns of mobile communications,
organizations’ ability to keep them safe. as well as an understanding of the

104 #AscentLookOut
Homeland Security

‘‘People want to have confidence in homeland security; they want to feel


their homeland is a safe place to live and that businesses feel likewise
and invest in its economic stability. To deliver, security organizations
need to be able to guarantee the availability, reliability and stability of
Günter Koinegg
Senior Vice
their services and the technology that supports them.’’
President, Head
of Big Data and
Security Central
and Eastern Europe

Operational Everyone involved must have access to all


the information they need to save lives.
But the omnipresence of information and
technology makes it the lifeblood of any
Excellence security organization. Such a dependency
The EU will soon see all existing sectorial comes with an inherent risk of cyber
systems integrated into a broader network breaches and attacks. The US Office of
The security community is confronted that enables traffic and activities to be Personnel Management data breach across
with conflicting challenges that threaten to monitored and reported coherently in both 2014 and 2015 saw almost 22 million US
limit its operational effectiveness: security areas under the jurisdiction of the Member homeland security and personnel records
threats continue to multiply and intensify at States and adjacent areas. Border control stolen.
a time of tightening budgets and financial authorities will benefit immensely from
austerity. But law enforcement agencies the integration of surveillance and control Securing assets, information and identities
have always had to face core strategic systems. Any future expansions of the EU across all physical as well as virtual
challenges. From availability, stability, – Turkey, Albania, Montenegro or Serbia, infrastructures is now an imperative.
reliability, interoperability and adaptability for example – will change Europe’s external Shifting security agendas due to local or
to capability, affordability and resource borders even further and require further global events demands the right level
efficiency, homeland security has always integration of security systems. of technology. Ensuring it provides the
been a question of juggling priorities and required quantity and quality of information
maximizing synergy. New threat scenarios Information sharing and cooperation is is paramount.
are simply complicating the picture. equally crucial when combating global
threats. The fight against crime and Equally, a greater reliance on technology
The speed and efficiency with which the terrorism requires new technologies sees criminals, terrorists and fraudsters
security community can gather, combine and capabilities for preventing incidents, leaving behind digital traces that provide
and explore information is becoming ever including understanding and tackling invaluable insight to forensics operations.
more vital for ensuring a nation’s security. terrorist ideas and beliefs. In this context, New techniques and technologies are
The rapid correlation and consolidation cooperation and data sharing between required to ensure organizations stay
of different information sources – such different law enforcement agencies is ahead of the technological innovations
as event data, intelligence and news – crucial. – to facilitate the interception of new
contributes to the agile operations and communications channels such as Firechat
create the agility that homeland security and Periscope, for example.
requires in today’s fast-moving world. Trust and
Compliance Security organizations are also responsible
To make a difference, security entities for protecting citizens and the critical
must know more and share more than national infrastructures their lives depend
they ever did in the past. Asymmetric on. They safeguard the data and privacy of
People want to have confidence in
threats make networked thinking – both citizens in cyberspace as well as protecting
homeland security; they want to feel their
within countries and across borders – a other actors, such as private companies or
homeland is a safe place to live and that
must. Straightforward information sharing, public services, from various online threats.
businesses feel likewise and invest in its
such as fingerprints or criminal records, Data retention databases alone have
economic stability. To deliver, security
and seamless process integration across become hugely attractive for criminals,
organizations need to be able to guarantee
borders and domains are critical to hacktivists, terrorists, advisory intelligence
the availability, reliability and stability of
stamping out cross-border organized crime services and others.
and managing emergencies, including their services and the technology that
coordinating the response of all actors supports them.
Likewise, the growing adoption of Industry
involved in disaster risk management. 4.0 technologies, with their

Ascent Look Out 105


Homeland Security

increased connectivity and therefore Moreover, people are more willing to share
increased vulnerability to threats from more about themselves with organizations
cyberspace, makes protecting vital national if they understand how that data will
infrastructures and critical sites such as be used and how they will benefit from
large events and industrial sites significantly sharing it. Smarter borders, for example,
more complex. will require information to be shared across
borders. Travelers will benefit with a slicker
The personal and sensitive nature of passage across the border.
an individual’s data means security
organizations must consider its Transparency is key: individuals don’t just
confidentiality, integrity and availability in want to know where their data is, but also
addition to legal and regulatory privacy how to escalate any concerns they might
concerns whenever it's shared within the have about how it's gathered, used and
wider security community. People are more stored – along with who has access to it.
willing to share data over different types Without it organizations risk a grilling by
of media. However, this willingness should the press at a time when authorities need
not be a motivation for homeland security to facilitate trust of individuals in national
or intelligence services to exploit this data security practices to encourage the general
for other purposes or for the protection of public to collaborate in national security
a nation. matters to enhance national security.

In the aftermath of tragic events such


as 9/11, the Madrid bombings, the UK
bus bombing, Paris and Brussels, people
might change their opinion. After all, when
homeland security must intervene in the
event of an emergency, the protection of
life becomes a greater priority over the
protection of privacy. It’s equally crucial
that systems and organizations can revert
rapidly to a normal modus operandi
following periods when sensitivity and
privacy decreases for security purposes.

106 #AscentLookOut
Homeland Security

Swarm computing Mainstream


Early adoption
Adolescent
Emerging

Brain-computer
interface

Internet of
Things
Distributed
analytics Augmented reality
Self-adaptive security
Cloud Service Integration Software-defined
Robotics technologies
Privacy enhancing technologies
State- Edge computing
of-the-art
jamming High performance
products computing LPWAN
Wearable
Crowdsourcing computing Quantum cryptography
Streaming
analytics Unmanned
Biometrics aerial vehicles

Sentiment Hybrid cloud


analytics
2016 2017 2018 2019+
© Atos 2016. All rights reserved.

Key Enablers scanning technologies for some time to


ensure identification documents belong to
Cloud Service Integration
Already on the landscape, cloud allows
Augmented reality the person presenting them. homeland security information and
Smart glasses leverage augmented reality services, such as exit/entry services, to be
technologies to render virtual images in Facial recognition technologies, meanwhile, provided centrally. Personnel can access
the line of sight. They improve situational have a much broader application, the resources they need from anywhere
awareness by allowing officers to access particularly in identifying known or and on any device.
additional background information – for suspected terrorists, criminals and
example about a suspect or location – in immigration violators. Combined with The diverse processes that run across
real time. media surveillance, they help pick well- clouds need to be able to connect
known faces out from the crowd and seamlessly, mash-up services and
Facial recognition enhances these systems control movement around secure zones. aggregate both human centric processes
further, providing recognizable scenarios to Biometric electronic ID from Match on and the IoE. Cloud Service Integration
help detect persons of interest. In situations Card allows the biometric identification plays a crucial role in accomplishing this.
where radio silence must be maintained of individuals when connectivity it not
they provide the perfect medium for available. Within the IoT, the identities of people and
sending commands. things are managed through electronic
Brain-computer interface identification (e-ID) technologies. Cloud-
Novel interfaces promise to enable faster based federated identity services simplify
Biometrics
and better neural communications in the extension of identity and access
Biometric technologies are continuing
complex environments. Furthermore, they management across new IoT-based
to help homeland security organizations
also promise to help automated threat services. In doing so they help protect
establish a person’s true identity. Border
detection by improving outcomes from personal and sensitive systems and data.
control has been using fingerprint and vein
imagery analysis. In the future, trusted information brokers

Ascent Look Out 107


Homeland Security

will act as the central verification service, Internet of Things not only help agencies anticipate threats
eliminating the need for individuals to The Internet of Things (IoT) connects as attackers try to hide. Behind the scenes
register and authenticate themselves with everything from sensors and unmanned streaming analytics and HPC play a key
each distinct cloud service. systems to wearable computer role in enabling the real-time analysis that
technologies and smart clothing. The also helps to keep personal and sensitive
Crowdsourcing networks and data that flow from them data and systems secure.
Civilians are increasingly contributing to have significantly enhanced situational
the intelligence that homeland security awareness, command and control. Meanwhile distributed analytics in
organizations need to keep their people combination with HPC together accelerate
safe. On the U.S.-Mexico border, for LPWAN the forensic analysis after an incident
example, homeland security organizations In the future data will be sent over a is detected. They help agencies quickly
are leveraging crowdsourcing to gather combination of low power, extended range identify where the attack started, who is
intelligence. Anyone with an internet 5G and IoT-optimized Low-Power Wide- behind it and how they carried it out.
connection can patrol that border. Area Networks (LPWAN).
To enhance security further, contextual
Distributed analytics Privacy-enhancing technologies dynamic access control ensures homeland
With the diversity of information sources As agencies gather more and more data security personnel can only access to
growing, distributed analytics is also about the civilians they protect, privacy- information and systems when and where
accelerating the creation of intelligence. enhancing technologies are managing they need to.
This technology allows information on privacy risk, ensuring compliance with
known or suspected criminals, terrorists data protection legislation and regulation. Sentiment analytics
and immigration to be analyzed alongside They help ensure information that is shared Now the primary channel for engaging
information from social media, biometric amongst the homeland security ecosystem with civilians during a disaster scenario,
surveillance and other sources in real time. is anonymized or pseudonymized where social media is also a channel individuals
Furthermore the integration of multiple appropriate. can use to let their families know they're
information sources (data from sensors, safe or even call for help. Homeland
first responders, GIS, social networks and Quantum cryptography security organizations are employing
more) improves crisis management and Quantum cryptography will help ensure social media and network analytics, with
rescue operations. the security of high end transmissions its sentiment analytics, to gain additional
and assure secured interoperability and insight into how situations – from floods
Edge computing collaboration for highly sensitive data. and earthquakes to criminal, migration and
Agencies are leveraging edge computing Encryption technology will be used terrorist activities – are developing and how
to index and analyze data close to the point end-to-end across public, hybrid and people are reacting. This will also provide
of capture to help them make real-time private cloud solutions with a common additional Open Source Intelligence to
assessments about what actions they need encryption standard ensuring secure cross complement established methods already
to take. Constantly processing sensor and organization, and even cross country, in place.
environmental data in the background, communications.
edge analytics have proved particularly Software-defined technologies
useful in emergency situations where they Robotics In any disaster scenario, multiple agencies
adjust activities on the fly as events unfold, Advanced security robotics, support must work closely together: organizing,
requesting the expert resources needed or surveillance, protection, detection, rescue coordinating and commanding in a
reprioritizing activities. and immigration violation activities. They rapidly-evolving and complex environment.
undertake dangerous actions without Effective collaboration, shared situational
High performance computing jeopardizing personnel and are deployed awareness and informed decision
With the volumes, variety and velocity in areas that are either extremely difficult support require the timely distribution of
of data accelerating, high performance or impossible for humans to access to information. Software-defined networking
computing (HPC) allows complex enhance situational awareness. (SDN) allows agencies to create dynamic
simulations and analyses to deliver vital links between locations.
intelligence rapidly. By combining HPC with Self-adaptive security
computation infrastructures, networks and While traditionally crimes are responded to State-of-the-art jamming products
the latest mathematical models, they help after they have been committed, agencies Next-generation communications are
predict behaviors, prevent cyber or terrorist are now putting proactive security now able to transmit video as well as
attacks, and more. controls in place to prevent cyberattacks. voice in even the remotest of locations,
Advanced Security Operations Centers is now critical. State-of-the-art jammers
Hybrid cloud (SOC) and Security Information and Event not only block these communications
Agencies often need to combine resources Management (SIEM) are integral to their to protect convoys but also detect and
on internal private clouds with external new security strategies. locate suspects, and support Explosive
cloud-based environments such as those of Ordnance Disposal (EOD) teams by
certified security companies. Hybrid cloud Trusted probes are being deployed in preventing remote detonations. Telephony
allows selected on-premises, private cloud trusted environments to detect for the eavesdropping devices, meanwhile,
and public cloud services to unite in a minutest of evidence of specific suspicious intercept and record communications to
heterogeneous environment of clouds. behaviors amongst millions of events. enhance situational awareness.
These self-adaptive security technologies

108 #AscentLookOut
Homeland Security

Streaming analytics Unmanned aerial vehicles track individuals – their location and vital
Growing volumes of data are being While unmanned aerial vehicles (UAVs) signs – while streaming video from the
rapidly turned into critical security support surveillance, protection, detection, scene to a remote location where it can be
intelligence thanks to advanced analytics. rescue and immigration violation activities, analyzed and stored.
Streaming analytics, for example, provides drone-shielding technologies allow security
organizations with real-time intelligence forces to protect themselves against All devices must be ruggedized and
on the movement of cars or boats. This remotely piloted aerial vehicles that may capable of withstanding the rigors of
enhanced situational awareness allows be used to deliver destructive payloads or police work – in particular the extreme
agencies to be more proactive. used for surveillance purposes. environments that often accompany
emergency situations. These new
Swarm computing Wearable computing technologies enable rapid training solutions
Intelligent dust comprising sensors, robots One of the vital tools of modern policing, that can be accessed by a government
and other devices detects minute changes wearables gather and store a wide array officer wherever they are.
in light, temperature, vibration, magnetism, of incoming and outgoing data. Examples
chemicals and more. Operating wirelessly include smart glasses, watches, wristbands,
as part of the IoT, it helps gather critical helmets, socks, vests and more. In an
intelligence. emergency situation these devices help

Key Enablers in Homeland Security


nc l

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Bu

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Tr

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Privacy enhancing
Augmented reality technologies

Biometrics Quantum cryptography

Brain-computer Robotics
interface

Cloud Service
Self-adaptive security
Integration

Crowdsourcing Sentiment analytics

Software-defined
Distributed analytics
technologies

State-of-the-art jamming
Edge computing
products

High performance
Streaming analytics
computing

Hybrid cloud Swarm Computing

Internet of Things Unmanned aerial


vehicles

LPWAN Wearable computing

Ascent Look Out 109


Market views

Insurance

Connected world will transform the Expected that half of premiums will
industry have a telematics component by 2025
Data and analytics empowering the 68% of consumers willing to
insurance industry download and use an insurance app
Auto insurance market being impacted Just 2% of large firms have explicit
strongly cyber cover
Reputation, brand and improving Overall auto insurance premiums
customer intimacy are top concerns of expected to be reduced by 25% by
insurers 2025

Key Market Challenges

Customer hassle of dealing with insurance (especially


in the claims process) all the way from
experience offered by the new market
entrants who will claim market share
Experience subscription to billing. if incumbents don’t get closer to their
customers and build the loyalty needed to
Customers across both sectors want reduce churn.
The new digital era is putting pressure on self-service tools for managing their own
both life and pensions (L&P) and property insurance and savings needs, particularly Social media, meanwhile, could potentially
and casualty (P&C) insurers. On the L&P at expiration, when payments are due or rapidly become insurers’ channel of choice,
side, digitization is opening up a new when making additional investments. To either integrating with or virtually replacing
‘online advisor’ space, for example, while deliver these – and other personalized current multi-channel approaches. Insurers
mobile devices have reduced the sales tools and services – insurers need a are already exploiting social media for
cycle by giving customer direct access to single view of their customers along with referrals, particularly related to complex car
brokers and aggregators. Digitization is also their customers’ needs and ambitions. or life and savings insurance. They need
helping agents to understand their clients’ Furthermore, coverage flexibility, simplicity to be leveraged for advanced analytics
behaviors better which, in turn, allows – and and transparency are also important. (to combat fraud, for example), customer
forces – them to offer a more proactive and service, product development as well as
engaging customer experience. Personal lines business through mobile many other processes.
and online channels not only continues
Meanwhile, P&C insurers are fighting to to expand, but is expected to accelerate, Tied agents continue to be a significant
engage with their personal lines customers particularly in relation to ‘in the moment’ sales channel, playing a key role within the
because the insurance policy has become cover (short-term insurance policies with insurance distribution value chain. This
increasingly commoditized. Purchase by the minute, hour or day coverage) and channel must be integrated and supported
decisions are driven almost entirely by standardized P&C policies. Customers will to offer a seamless omni-channel customer
price. Digitization means customers soon expect to be able to interact with their experience and to ensure greater efficiency.
have access to more information than provider through mobile, for uploading Insurers are, however, feeling tension
ever before, using social media and price photos relating to claims or insurance on between the pressure to disintermediate, a
comparison sites to compare policies, the go (including at the retailer or service customer journey that is by essence multi-
prices and claims experience. provider), for instance. channel and the pressure from brokers and
aggregators to stay relevant. A combination
It also means customers might be ready to Customer experience needs to be mobile of greater focus and greater efficiency
share much more information provided the and digital by default. Insurers are, however, and coherence is needed, while revisiting
insurer proves itself a trusted intermediary. lagging behind when it comes to the business and operating models that are
They will expect to see a real connection mobile experience. According to various progressively tested, but potentially not
between giving up information and access sources, in 2014 only 30 percent of insurers evolving fast enough.
to a simpler, more convenient, personalized had a mobile responsive website and only
and transparent experience. Profitability a similar percentage had one or more
will come from insurers’ ability to deliver on mobile apps. Business
these requirements. Reinvention
Insurers need to employ the personal
At the end of the day, P&C customers want finance and sales force automation tools
quotes and prices when they want them, already available to help them move away
Insurance, at its very core, is an agreement
fully adapted to their needs and via their from simply competing on price. These
between the customer, who needs
channel of choice alongside access to tools will help them control risks more
protection from an unlikely event or to
help when required to reduce the overall effectively and to match the engaging

110 #AscentLookOut
Insurance

‘‘For all lines of business, the next decade will be defined by increasing
connectivity and growing volumes of data. Business model innovation
will be driven by collaboration across broader ecosystems.’’
Laurent Gibert
Global Insurance
Market Executive

preserve his own and his family’s health or risk coverage. Individual usage based On the flip side of a lower interest rate
wealth, and the company, who must have insurance (UBI) models – where car makers environment, hedge funds and other
the right financial assets, reputation and share relevant driver data gather from their alternative sources of capital are becoming
tools to support the customer during his connected cars with insurance companies part of the insurance value chain. Driven
whole lifespan. It is, in fact, a matter of long (with drivers’ permission) – are emerging by low interest rates, they’re increasingly
term strategies. in new motor insurance products. These providing additional funding options for
allow insurance companies to offer lower insurers and, in doing so, transferring
For all lines of business, the next decade will premiums to safe drivers along with pay- investment risks outside of the insurance
be defined by increasing connectivity and per-use models. company.
growing volumes of data. Business model
innovation will be driven by collaboration Furthermore, the emergence of the This business reinvention is happening fast
across broader ecosystems that include, connected and autonomous car has in an industry not used to drastic change
amongst others, the technology giants the potential to transform car insurance and will require an ability to change some
that are driving disruption across many further. Companies are thinking about its key aspects of corporate and industry
industries. On the positive side, car, implications. It may reduce risk but, even culture towards a more open, participative
health and home insurers are already in the new world, somebody will need culture, internally and externally integrating
collaborating with these technology players to be held liable if the autonomous car open innovation and new types of partners.
to leverage the growing volumes of data malfunctions. Premiums may decrease and
they have available to further enhance and shift from individual property to collective
personalize policies. On the downside, they liability insurance or to more commercial Operational
could separate insurers from the ownership lines cover as ownership shifts from Excellence
of customer relationships. private individual to fleet or corporate hire
provision.
New players with innovative new business
Insurance companies are adopting
models and insurance products and The combination of sustained period
technological solutions to automate and
services will emerge, some disrupting of low interest rates, which is yielding
increase the accuracy of the underwriting
traditional distribution models by offering low investment returns, and increased
process, support variable pricing,
customers integrated value propositions regulation is hurting profitability for L&P
help maximize the efficacy of scarce
that encourage a healthier lifestyle (Vitality, insurance companies, as it is banks. To
underwriting resources and increase
Oscar) or help to protect their property increase their top line, L&P companies
direct sales. But this is not enough. Only by
better, for example. need to turn their focus back to driving
completely re-engineering their business
profit margins from underwriting and
processes can they ensure they’re aligned
Social (peer-to-peer) insurance is also new product development rather than
with best practices and able to adopt more
increasing. German Friendsurance is five investment. That means going back on
and more straight through processing
years’ old while Guevara, a peer-to-peer the offensive and reaching out to the
within their environments.
car insurance service, has only recently customer with the products they need
launched in the UK. Radically integrated and desire, by using de-regulation in the
Front office digitization – including
value propositions that combine personal, pension markets to come up with new and
connected devices, self-service and an
family and business lives are also becoming innovative retirement plans, for example. At
omni-channel environment – promises to
more commonplace. the same time, L&P companies must focus
give customers secure and high speed
on improving operational efficiency to cut
access to the heart of insurance business
Meanwhile, the traditional car insurance their bottom lines, OPEX in particular, and
systems. It allows customers to manage
business within the P&C market is shifting capital efficiency through reinvented ERM,
their own accounts and interact with the
to a new business model based on online leveraging Big Data and new platforms.

Ascent Look Out 111


Insurance

company when it suits them, on their with it significant challenges, including visibility – particularly in relation to the
preferred channels and in way that is outsourcing management, continuous reserve and solvency information that
intuitive and engaging. In addition, it’s integration, the closure of entire business rating agencies need to understand. But
helping insurance companies reduce lines and product displacement. merging data silos to create a single view
capital expenditure and cost while of the truth, in real time, will help not only to
freeing up personnel so they can focus address regulation such as Solvency II and
on more valuable customer relationship Trust and Markets in Financial Instruments Directive ;
management and sales tasks. Compliance it also offers competitive advantage by
allowing insurers to offer more personally
Back office digitization, on the other hand, tailored products to the customers that
promises to boost returns on investment, really need them.
Insurance companies must take steps to
with the greatest value coming from
ensure they’re compliant with intensifying
process automation. By digitizing manual Generation Y consumers are more
consumer protection legislation and to
processes and paper documents, insurers prepared than their parents to trade
avoid a repeat of the miss-selling that has
can increase efficiency and agility while personal data for financial reward such as
dented consumers’ confidence in the
reducing cost by up to 40 percent. discounts, vouchers or access to services.
industry. Accelerating information risk
Documents can be shared more easily Advances in security, data governance and
management in the front office will help to
and non-core functions such as IT, human data usage transparency are needed to
ensure consumer data protection, with the
resources and finance can be moved to help them stay secure while they do this.
appropriate ‘touch’ on risk and underwriting
a more efficient and more cost-effective
to meet new consumer expectations.
centralized role. New cyber-risks and the ‘cloudification’ of IT
mean insurance companies need to rapidly
Insurers are increasing their focus on Anti
Those looking anew at their processes and adopt new security technologies to ensure
Money Laundering and Counter Terrorist
thinking front to back digitalization will be proper data and consumer protection.
Financing legislation in a way that is natural
the ones reaping the most benefits from Cyber-risks offer new opportunities too:
to banks but new to insurers. New solvency
the digital revolution. They will also be most cyber-risk insurance.
regulations coming into play across Europe,
likely to respond effectively to the digital
for example, mean insurers will have to
disruptors and to customer expectations. All in all, building trust especially on how
screen customers before underwriting their
data is protected and used is absolutely
policies.
Meanwhile, industry-wide consolidation critical, not only for the obvious sense
is extending demand for the low-cost of safety but also to allow companies to
When it comes to internal and external
business models that are helping continue to play in a world where access to
stakeholder information requests, insurers
companies across all geographies to data is becoming vital at each step of the
need to be more efficient in how they
manage their legacy closed block portfolios insurance value chain.
deliver the information wanted. Only then
more effectively. That consolidation is
will they be sure they can respond to the
also increasing pressure for the greater
requests within the timescales required.
‘economy of scale’ that will help companies
gain market share in specific geographies
Accurate, reliable, consistent and timely
(particularly in advanced western countries)
compliance data requires reporting to be
and fight against margin reduction. Greater
more transparent. Combining information
economy of scale does, however, bring
from diverse, siloed systems will enhance

112 #AscentLookOut
Insurance

Mainstream
Early adoption
5G networks
Adolescent
Emerging

Robotics / Intelligent automation

Privacy-enhancing
technologies
Software-defined
technologies
Blockchain
Internet of Web-scale computing
Things Distributed analytics Prescriptive analytics
Pattern-matching technologies
High performance computing
Streaming analytics
Context-rich systems Cloud Service Integration
Self-adaptive security
Hybrid cloud
Wearable computing
Rules engines Virtual assistants
DevOps
Mobile first & real-time interfaces
Semantic technologies
Sentiment analytics

2016 2017 2018 2019+


© Atos 2016. All rights reserved.

Key Enablers Cloud Service Integration


Already on the landscape, cloud computing
DevOps
To develop and deliver new products
has just touched the tip of the iceberg quickly, cost-effectively and to a high
5G networks
when it comes to the role it will play in standard, insurers are adopting a DevOps
Customers access cloud services from
insurances. Insurance companies are approach to software development. By
wherever they are. Moreover, mobile
increasingly hosting their systems in the enhancing collaboration between software
solutions combined with a secure and
cloud, from where they're delivered as developers and IT operations the DevOps
pervasive 5G networks are extending the
cloud services. Cloud Service Integration approach reduces time-to-market and cost
reach of business services, attracting new
ensures tight integration between all the while improving quality.
customers who prefer self-service tools to
different cloud services, from standard
other forms of interaction. These modern
policy underwriting and to claims Distributed analytics
customer service tools significant increase
processes. By exploiting data from predictive models
policyholder satisfaction, while reducing
such as weather, insight from social media,
agent workloads.
Context-rich systems data from geo-positioning systems and a
Increasingly sophisticated digital advisors wealth of broader information sources, the
Blockchain
enhance the customer support experience: IoT is allowing insurers to enrich individual
Blockchain technology applies as
the truly omni-channel avatar can engage usage based insurance (UBI), tuning it
well to fraud management, payments,
seamlessly with the policy-holder through closer to the needs of the individual.
identification, document authentication,
a multitude of online channels. Behind Distributed analytics allows diverse data
claims management and M2M security
the scene context-rich systems combine sources to be analyzed together without
(IoT). It significantly reduces the cost of
intelligence from diverse systems to the need to first copy the data to a central
performing these activities while improving
proactively anticipate each customer’s location. This impacts everything from
security.
specific needs. wearables (such as wristbands) right up to
oil rigs.

Ascent Look Out 113


Insurance

High performance computing data protection legislation and regulation. Software-defined technologies
High performance computing allows Cloud native applications allow companies
insurance companies to take full advantage Robotics/intelligent automation to take full advantage of web-scale
of the benefits offered by IoT data. Workplace robotics, as automated virtual computing and software-defined
Models help them anticipate and prevent workers, that can be deployed across technologies. They allow new products to
catastrophes, eliminating the need to pay unstable architectures or multiple legacy be tested and launched within significantly
out for damages created by such events. systems as easily as a human operative shortened project lifecycles.
take on a lot of the dull, time sensitive
Hybrid cloud and repetitive back office tasks at a Streaming analytics
Private clouds allow insurers to make much lower cost. 100 per cent auditable Big Data is helping leading insurance
resources – both data and applications and reliable, they can be deployed with companies outperform their peers. Its
– available from anywhere and on any minimum disruption and, unlike the human advanced streaming analytics enables
device. No matter where the customer workforce, never make mistakes, work 24/7 insurers to leverage real-time data, for
engages from or where an employee and can be programmed for a multitude of example about properties likely to be
or partner is working from, the systems variable tasks. affected by weather data for claims
that they interact with and the data these initiation, optimization or prevention. These
systems use will be the same. Hybrid cloud Rules engines dynamic customer profiles signal insurers
then allows companies to augment their Resilient and agile frontend tools need moving away from the generic customer
own omni-channel services with relevant powerful and extremely flexible rules profiles that cater for millions of customers
third-party services – such as news, hints engines to deliver ultra-personalized to individual 360° customer profiling.
and tips or even weather forecasts – further products and pricing.
enhancing the experience. Self-adaptive security
Insurers are achieving their goals of 100 While trusted information brokers
Internet of Things percent straight through processing provide insurers with the confidence to
A few years from now and the Internet of now that core insurance IT systems are share more information with agents, the
Things (IoT) will have transformed not only aligned with the best-in-class automatic dynamic access control enabled by self-
the health, motor and home markets but process solutions. Business-rules based adaptive security and a new generation
also commercial lines with its widespread configuration that leverages advanced of collaborative tools ensures they have
use of sensor technology, advanced analytics is allowing standard policy access to the information, systems and
analytics and new ecosystems. underwriting and claims processes to locations they need to access, but only
be automated, eliminating manual work when they need it.
Mobile first and real-time customer activities at an enterprise scale.
interfaces Virtual assistants
New customer usages require investment This increases the accuracy of underwriting Digital advisors have a vital role to play in
in mobile first and real-time customer decisions, supports variable pricing and helping insurers avoid scandals such as the
interfaces that link seamlessly with helps insurers to maximize the efficacy miss-selling saga that dented consumers’
backend systems. of scarce underwriting resources. trust. These intelligent virtual assistants
Able to handle multiple product lines provide accurate, consistent and compliant
Pattern-matching technologies simultaneously, rules-based configuration information throughout the sales processes
Pattern-matching technologies help is accelerating time-to-market for new and listen in on call center agents to ensure
companies leverage the vast volumes products. they do the same.
of data available today to identify and
then address unusual behavior patterns, Semantic technologies Wearable computing
including potentially fraudulent behaviors. Companies are storing both operational Health wearables, such as smartwatches
and customer data in private clouds, and sensors embedded in clothing, have
Prescriptive analytics providing secure and robust access to created a huge health insurance market,
This dynamic customer profiling allows the information they need to improve with policies that include preventive
for more sophisticated segmentation that efficiency and decision-making as well as medical assistance provision and
has improved cross-segment sales and enhance customer experience. Behind the connections to health professional doctors
cut response times for origination and scenes semantic technologies help their and medics.
claims. The prescriptive analytics that can intelligence systems to understand the
decipher what customers want even before relationships within and across data. Web-scale computing
they know themselves provides ‘next best The IT organization and architecture
offer’ capabilities. Sentiment analytics has been redesigned for web-scale
The lifestyle, behavioral and health computing, underpinned by a software-
Privacy-enhancing technologies data collected from mobile devices defined architecture. This has allowed a
As customers share more information and wearables gives insurers a deeper more profound digital transformation of
with insurers, insurers must ensure understanding of their customers. What’s insurance operating models, from front
robust compliance with consumer more, with social networks now well to back. Its operational simplicity allows
protection legislation. Privacy-enhancing integrated into our everyday lives, insurers insurers to be more agile while optimizing
technologies (PET) control disclosure are using advanced social media analytics investments.
of data, helping companies to manage with its sentiment analytics to enhance
privacy risk by ensuring compliance with this insight even further.

114 #AscentLookOut
Insurance

They have the agility they need to rapidly


and successfully launch and support
new products and new mobile apps. In
other words legacy systems will need to
be dramatically reduced in scope and
perimeter, core processes and business
rules taken out by dedicated modern,
flexible, real-time architectures.

Key Enablers in Insurance


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Bu

Bu
Tr

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Privacy-enhancing
5G networks technologies

Robotics/intelligent
Blockchain
automation

Cloud Service Rules engines


Integration

Context-rich systems Semantic technologies

DevOps Sentiment analytics

Distributed analytics Software-defined


technologies

High performance
Streaming analytics
computing

Hybrid cloud Self-adaptive security

Internet of Things Virtual assistants

Mobile first & real-time


Wearable computing
interfaces

Pattern-matching Web-scale computing


technologies

Prescriptive analytics

Ascent Look Out 115


Market views

Media

Mobile will become the principal digital 70% of all mobile network traffic will
content platform be video by 2021
Print will remain the format of choice Facebook is serving 4 billion video
for consumers views a day
Books will emerge as survivors as digital Users spend nearly 6 hours watching
readership plateaus videos on their phones each month
Augmented reality will outstrip virtual 88% of millennials engage in second
reality within 3-5 years screen behaviors when watching
video content

Key Market Challenges

Customer This decentralized model of prosumers Business


(consumers are also media producers)
Experience may, on occasion, provide individuals a
Reinvention
generous source of income. Social media
is becoming the distribution platform for
Content consumers’ behaviors and this and other new media, with mobile For media companies of all types – from
expectations have, and will continue to, the primary platform for its creation. As traditional newspapers, TV and radio to
change dramatically. While TV audiences such, mobile manufacturers have the modern digital media – mere survival in
and paper-based media sales continue opportunity to become media companies today’s highly competitive, fragmented and
their significant decline, digital media – with and create new media ecosystems. increasingly online market depends on
its accessible (since captioning and audio their ability to find innovative new ways of
descriptions are easier to add), personalized The customer relationship is one of the monetizing their content. At the same time,
and sharable content – continues to grow keys to success in today’s fragmented they must optimize value from existing
in popularity. digital media environment, but the battle business: from paywalls, subscriptions and
about who actually ‘owns the customer’ micropayments through advertisement-
Today’s content consumers can choose has only just begun. Providing the best related revenues to e-commerce and online
what, where and how they watch customer experience through ease-of-use, gaming and betting. With so many models
content. Immersed in a media experience availability, quality content and affordable available, individual media companies need
throughout their day, they regularly switch pricing builds essential customer loyalty, to explore what works best for them and
from device to device, enhancing their drives usage across the different channels make that space their own.
principal source with interactive content and generates the usage data that provides
delivered seamlessly through a second insight into consumer preferences. These The industry is converging across both
– or even third – screen. Each interface is insights, in turn, help media companies geographies and sectors. Telco, media and
intuitive with content easy to find. During understand their consumers better entertainment companies are merging
the Sochi Winter Olympics in 2014, for and enable the optimization of content into large multinational, multimedia
example, the online digital audience production and distribution, along with conglomerates that are able to provide
enjoyed both live and on-demand access revenue growth from more effective a full offering over all platforms. As such,
to sports events. These were synchronized advertising and new sources of income. focus has turned to optimizing that
with real-time stats, enhanced by expanded supply chain and ensuring it's
information tagging and integrated with Industry content owners’ expectations able to adapt quickly to the changing
social media where fans could share their are changing too. They prefer to engage needs of the market and rapidly adopt new
experiences. with the multimedia companies that are technologies. A flexible infrastructure holds
Consumers can also participate in and able to offer complete coverage over all the key to success.
influence live broadcasts (from talent media channels: broadcast, social, digital
contests to debates about migration), and events. Furthermore, they expect With a small number of conglomerates
feeding their thoughts back to content media distributors to deliver relevant and now owning an increasing share of the
providers and sharing opinions via social engaging content across these diverse mass media, having bought up smaller
media. Outside of digital content, fiction contexts, while providing a compelling local companies, concerns have been
writers are using Twitter to gather feedback seamless multiplatform experience. raised over whether the public interest can
from consumers to help them enhance This is particularly important when you still be served at a local level. And since
their stories before final production. consider how media consumption habits consumers expect media to be tailored to
are fundamental to advertising revenue their own personal needs, maintaining a
More than that, modern consumers also and to creating new revenue streams and local perspective – providing context and
generate and share their own content. partnerships. relevance with local accountability – has

116 #AscentLookOut
Media

‘‘The customer relationship is one of the keys to success in today’s


fragmented digital media environment, but the battle about who
actually ‘owns the customer’ has only just begun.’’
Eric Mariette
Vice President
Global Media

become increasingly important. real-time audience behavior to help B2B But as advertising dollars move to the web,
partners tailor their own services to better online services delivering personalized
Nevertheless, content is still ‘King’ and meet consumer needs – but only with content offer numerous opportunities for
where companies can differentiate. permission from the consumer. highly-tuned advertising and its related
Some companies that were previously cross- and up-sell. To succeed in this space,
purely distributors are now creating and Meanwhile, passive forms of media will media companies need to understand
publishing their own original material to continue to exist – and may even continue their customer well and be able to tag
increase subscriber numbers. Netflix, for to be the most popular way to consume content appropriately and relate it to other
example, is investing millions of dollars content – for many years. They will, materials and adverts. Surging mobile
creating their own work (House of Cards for however, need to become increasingly advertising sales have helped Facebook
example) and Amazon is now following this augmented and tailored to meet consumer revenues, for instance. But the mutation
lead with TV favorite Top Gear, amongst demands for a more personalized of the selling process is adding to the
others. experience. For TV, advertising is becoming complexity of the advertising sales function
more subtle and includes product with the emergence of programmatic
At the same time, content is not enough placement and program sponsorship along advertising and its real-time, data-driven
in the digital world, if not supported by the with interactions that allow things (clothes, approaches.
ability to manage the (meta)data about cars, food and more) seen in a TV program
it and about its consumer (the Queen). to be purchased more easily. With modern audiences more likely
Successful companies are the ones that are to grant their loyalty to content rather
able to do both. In fact, traditional media For the print publishing industry, the future than media brands – gravitating toward
companies are using a combination of is a little more uncertain. Large parts of it specific TV series, film and music brands,
content and data to turn the threat from may disappear, yet books, for example, will for example – content providers are
social media and user-generated content survive – partly because they're unbundled creating fan-based communities where
around: leveraging user-generated content and partly because they provide a unique they can offer targeted content along with
to enhance owned content, using social experience that is appreciated by the the advertising for cross- or up-selling
media to direct audiences to their content reader. Publishers are, however, offering related products. These highly-engaged
and engaging with audiences on social additional value-added services: education communities love to participate in brand-
media to learn more about their desires publishers, for example, are offering related activities – activities that can go
and behaviors. platforms for supporting students’ creative viral and, in doing so, create a great deal of
activities while other publisher are enabling interest in these content brands.
After all, to successfully compete against online digital communities for writing
free content and agile new market entrants, books.
traditional media companies need a deeper Operational
understanding of their diverse audience Nevertheless, new business models, Excellence
segments, along with the content and which could include crowdfunding and
viewing behaviors and desires of each. other innovative ways of funding in
Actionable business intelligence directly addition to the traditional ones, will keep
Digital technologies are driving an ongoing
from their knowledge of real-time audience popular publishers alive. In a sector that
reinvention of the media landscape. It
behaviors is vital for monetizing high- is transforming at an incredible pace,
seems that new technologies are available
quality content. one thing remains constant: publishers’
every other week and consumers have
desire to maintain control of the pricing
no hesitation in dropping one thing if
Media companies could also derive and production of their content. We will
something better and cheaper comes
monetary value from the data too, wait and see if their appeals are heard as
along. Although the free video streaming
monetizing their unique insight into Amazon moves into the high street.

Ascent Look Out 117


Media

service Popcorn Time was illegal, the fact lagging behind the competition. Therefore, that wisely, consumers will be immensely
that even Netflix mentioned the service as effective innovation processes are needed. grateful. But if media companies get
a main competitor is a perfect illustration of Leading organizations are investing in it wrong, they will have disgruntled
this point. ensuring they fully understand the potential customers on their hands.
and challenges of new technologies as they
In such a highly competitive and fast- emerge, so they can swiftly adapt and align But, it’s not just personal data that media
changing landscape, media companies their businesses. Organizations that don’t companies need to consider. Risks of all
of all types must focus their investments have the knowledge and flexibility required shapes and sizes must be anticipated,
toward creating high-quality, informative to roll-out new services when consumers prevented and managed in a world
and entertaining content and innovative are demanding them will find it difficult to that is increasingly mobile and social.
distribution models. After all, audiences are keep their audiences’ attention and attract Fail to prevent the leakage or misuse of
willing to pay for higher quality content and new viewers. licensed content and organizations may
optimal user experience. find themselves losing their license or
To fund the investments, traditional distribution rights. Fail to protect the brand
Both traditional and modern media media organizations will need to reduce and the performance and availability of
companies are, however, increasingly the burden of their legacy technology services and audiences will take their
extending the monetary value of their landscape. They also need to reinvent loyalty and their dollars elsewhere (recent
content beyond the initial broadcast themselves, transforming their legacy attacks by hackers have undoubtedly
or publication; repurposing broadcast content-driven organizational and been aimed at interrupting services). And,
content for online or mobile consumption, operational models (including ‘old-world most importantly, fail to protect sources for
for example. There are, nevertheless, thinking’) into ones that are data-centric sensitive journalistic investigations, along
overheads that must be considered: the and more agile – and do so as fast as with the reporters, and the consequences
cost and effort required for publishing possible. could be dire.
the content on different and continuously
evolving technology platforms and for Risks come from inside media
ensuring the quality of the repurposed Trust and organizations too. In an online world,
media matches the original. On the plus Compliance content becomes available to billions of
side, repurposed content can be more people across the globe as soon as it’s
accessible for the visibly impaired. Screen published. Any errors or misrepresentations
readers on their mobile devices can read As the audience experience becomes are sure to be spotted by someone
content to them, for instance. increasingly personalized and participative, somewhere. Once published, any glaring
media companies must increase their focus mistakes are likely to be shared virally. They
To free up spend, companies should on protecting audience data – including cannot be changed.
explore how they can make their both personal data and usage patterns.
production and business systems better, Too many large media organizations Because of the great responsibility media
faster and more cost-effective. At least part have experienced security breaches and organizations have to individual consumers
of the answer lies in standard IT storage, significant data leakage in recent years, and to society at large, combined with the
networks and workflows, amongst other denting the consumer’s trust in their brand. challenge of new risks that are introduced
things. With media technology now more To show themselves to be trustworthy and by adoption of new digital technologies, the
closely aligned to IT, media companies responsible, companies must also comply importance of security needs to be high on
can take advantage of the considerable – and be seen to comply – with regions’ the agenda in order to continue to comply
investment that has gone into making diverse data protection regulations and with legislation and remain a trusted brand.
modern IT what it is today. policies.
More generally, any media organization Consumers are increasingly expecting to
that struggles to reap the benefits of see benefits in exchange for their data and
technology advances will soon find they're information. Where media companies use

118 #AscentLookOut
Media

Named Data Networks

Mainstream
Early adoption
Adolescent
Emerging

Advanced data visualization

Augmented reality

Distributed analytics
Wearable computing

Gamification
Robotics
Internet of Privacy-enhancing
Things technologies
Self-adaptive security
Prescriptive analytics
Software-defined technologies
Streaming
analytics Virtual reality

Cloud Service
Integration Context-rich systems

Edge computing
Social media analysis

2016 2017 2018 2019+


© Atos 2016. All rights reserved.

Key Enablers the things you can physically touch and


feel. It's not only game and TV characters
decisions, cloud-based federated identity
services simplify access across services in
that take on a whole new dimension; the cloud. In the future trusted information
Advanced data visualization
friends on social media do too. Aware brokers will act as a central verification
New immersive 3D visualization
of the environment around them, these service. Individuals will no longer need to
technologies ensure the viewer is
avatars have never seemed more real. register and authenticate themselves for
immersed more deeply than ever before.
Start-up Magic Leap has raised $50 million each cloud service.
The immersive images produced by
to develop its own proprietary augmented
360° cameras help build that emotional
reality platform. Context-rich systems
connection with everything from stories
The viewer’s experience is integrated
on the news to the latest movies. Sports
Cloud Service Integration across every channel of interaction – online,
fans can watch their favorite athletes online,
As the digital media supply chain mobile, social, wearables and more – with
while seeing the chanting crowd around
expands and the number of media a seamless and consistent experience
them and the sky above. They can move
services hosted in the cloud grows, Cloud across all media sources. TV viewing is
around and watch the race from different
Service Integration helps accelerate the connected with online social media tools.
angles or even compete in a virtual line
development of new ideas in both content It seamlessly follows the viewer as they
nine against Usain Bolt at the Tokyo 2020
and media formats. It allows services move from device to device, from watching
Olympics.
from diverse hosted content sources to a film on their smart TV in the lounge to
be connected to offer a truly seamlessly watching it on their smart fridge interface
Augmented reality
content consumer experience. in the kitchen. Behind the scenes context-
Augmented reality is allowing real and
rich systems deliver fully synchronized
virtual worlds to merge into one. Virtual
With the integration of multiple content across multiple devices within the
animations can come to life in the world
technologies providing immediate connected home. That content and how it's
around you, interacting seamlessly with
feedback for investment or divestment delivered is no longer dependent on its

Ascent Look Out 119


Media

delivery network or media provider. – their preferences and behaviors. They Social media analysis
can develop ways to better engage their Social media is valuable source of
By bringing together insights from various audience and drive the loyalty that is vital information for informing content. Social
sources, context-rich systems proactively to achieving enduring success. media analysis, with its sentiment analysis,
anticipate each consumer’s individual provides media companies with a deeper
needs and preferences. They're adept Named Data Networks understanding of how audiences are
at aligning revenue generating media The volume of content hosted will responding. Service customization based
products and services to consumers’ continue to expand, increasing the load on social media insights can be a key factor
needs, desires and behaviors, offering them on underlying networks and storage. The in driving customer satisfaction, ensuring
up at the exact moment in time when the future of file distribution across the internet loyalty and attracting new business
consumer is most likely to buy. Contextual may be transformed by Named Data through advocacy.
systems might also adapt the product Networks (NDN), which would change
itself, aligning the end of a movie to who the architecture of the internet at its core. Software-defined technologies
is watching and the mood they're in for For media companies, NDN promises Flexible software-defined technologies
instance, or even the product’s digital rights reduced congestion and improved delivery have transformed operations at
to the medium at hand. speeds, along with increased robustness many levels. Media specific functions
and security. As the volumes of data media implemented in vertical appliances that
Context-rich systems also have a wider companies distribute grow, it could help bundle hardware and software have been
role, particularly when it comes to mobile ensure the continuity of their services. decoupled. Instead specialized software
content and the connected car. Such applications run on general-purpose
systems offer consumers content that is Prescriptive analytics hardware platforms, leveraging both
not only tailored for their location when As expectations for personalized viewing virtualized and cloud environments.
they're out and about, but optimized for the rises, media companies are turning to
viewer’s device as well as wider context – prescriptive analytics to automatically Small programmable chips, for example,
whether they're driving the car and where provide the viewer with a profiled catalog replace expensive specialized hardware
they're sat in relation to other passengers, of content tailored to their individual needs – such as tools for transcoding or
for example. and desires. This will offer each specific transforming files – with commodity
viewer a highly-tailored passive traditional platforms running specialized software.
Distributed analytics TV experience that doesn’t require any This means media companies can
Distributed analytics provides insight into interactivity on their part. now embrace next-generation media
audience consumption across multiple platforms and delivery options swiftly,
platforms, across TV and online initially. Self-adaptive security without abandoning current infrastructure
With protection of the brand and its investments. These virtualized
Edge computing services crucial to any media company’s environments have accelerated time-to-
Media companies are leveraging edge survival, companies are employing market for new offerings and new business
computing to process those vast volumes pre-emptive self-adaptive security models.
of data close to the point of capture. Server technologies to look for early evidence of
loads are reduced as the processing suspicious behaviors. Cloud continues to be a pivotal technology.
required to present the personalized It not only enables rapid innovation cycles,
content to the consumer is offloaded to Privacy-enhancing technologies but also allows companies to rapidly scale
servers at the edge of the cloud. Despite enabling a whole new level of or shrink in response to changing market
dynamic, ultra-personalized, embedded demands. Disrupters adopted it early on;
Gamification advertising, some consumers have incumbents – including the multinational,
Wearables impact the gaming industry reached the point at which use of their multimedia conglomerates – are adopting
too. Dynamic online gaming with personal data to shape a personalized B2C it too. Combined with the virtualized
interactive storytelling and narratives are interaction is an unacceptable invasion of structures enabled by software-defined
even more realistic now that they can be privacy. Media companies are employing technologies, cloud helps companies
tailored to a player’s emotional response. privacy-enhancing technologies (PET) standardize, optimize and automate the
The technologies benefit non-leisure to control their use of consumer data, digital media supply chain.
gamers too, delivering the gamification ensuring their compliance with data
(application of game playing elements to protection legislation and regulation. Streaming analytics
other activities) that has multiple uses in Direct real-time user feedback is becoming
education, health, government and defense Robotics an essential part of the media creation,
sectors in particular. Robotics are not only impacting the media development and improvement cycle.
industry in terms of automation, but also in Advanced forms of data analytics allow
Internet of Things the creative and editorial parts of the value media creators and distributors to
Wearables are just a small proportion of chain. In Australia, Channel Nine’s new personalize and target specific interactions,
the billions of connected devices that share state-of-the-art studio includes a news desk from tailored subscription packages and
information seamlessly across the Internet surrounded by a cluster of robotic cameras transactional offers to show narratives.
of Things (IoT). The vast volumes of data that don’t require operators. Streaming analytics provides real-time
from the connected devices, social media insight into audience reactions.
and other sources enriches what media
companies know about their audiences

120 #AscentLookOut
Media

Virtual reality Alternatively they can experience what it's Wearable computing
Technology is driving huge changes in like to be their favorite sports star. Totally A new category of web-connected
how we use media to tell and experience immersed they feel what it's like to where wearables that can measure physiological
stories. Immersive virtual reality devices, their hero’s shoes – in a racing car, on a indicators – such as heart rate, body
such as Facebook’s Oculus Rift and Sony football pitch, at the Olympics or even temperature, pupil dilation or sweat
PlayStation VR, allow millions of online down the ski slope. In more advanced production – is allowing media companies
gamers to interact with each other in real systems narratives evolve in response to to align services to users’ response to
time while living their own unique game implicit or explicit real-time feedback from environmental stimuli. A live production
experience. social network analytics, wearables and team can measure and respond to the
other context sensing technologies. emotional response of a million viewers of
a live TV show or sports fans in real time.

Key Enablers in Media


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Advanced data
visualization Prescriptive analytics

Augmented reality Self-adaptive security

Cloud Service Privacy-enhancing


Integration technologies

Context-rich systems Robotics

Distributed analytics Social media analysis

Edge computing Software-defined


technologies

Gamification Streaming analytics

Internet of Things Virtual reality

Named Data Networks Wearable computing

Ascent Look Out 121


Market views

Oil and Gas

Middle East has 67% of world’s oil


Lower prices and shrinking margins
reserves
High maintenance, exploration & Middle East has 45% of all natural gas
production costs reserves
Moderate energy demands across 25% of companies will use advanced
ASEAN and India analytics by 2019
Environmental impact & public Top 50% investing in oilfield
confidence pressures operations automation

Key Market Challenges

Customer companies are exploring ways to satisfy


both fleet end-users and the teams that
own car in the mid-term.
Oil and gas companies need to build a
Experience award the contracts. sustainable energy system that drives
economic progress and supports growing
In downstream operations, oil and populations to ensure resilience in the face
The industry’s matrix of B2B and B2C gas companies are creating a new of this continued volatility. That system
relationships is complex. B2B customers are and differentiated business space for must, at the same time, also minimize
mainly the energy intensive industries and themselves by moving from selling gallons environmental impact and respect our
power generation plants that need more of petrol to selling energy as a service. changing climate while creating attractive
and more energy to stimulate progress and They're also addressing the growing returns for shareholders.
support an ever-expanding and better off demand for electricity as mainstream
world population. fuel for transportation through offering To find other new ways of creating value
electrical charging services at their filling and to open up new revenue streams,
B2C customers include gas stations stations. companies are building an ecosystem
customers, governments and national oil that stretches beyond traditional
companies. As living standards rise, their boundaries. This open innovation includes
demand for energy continues to grow as Business both customers and cross-sectoral
does their awareness of the world they live Reinvention partnerships: from specialist product and
in. Oil and gas companies are responding service providers (including wearables
by leveraging their enormous marketing manufacturers and renewable energy
spend and taking a two-brand – low-cost generators) upstream to a growing array
Every oil and gas company is undergoing
and premium – approach at the pump. of retailers and manufacturers (including
a period of significant transition. Meeting
the current industry challenges means automotive) downstream.
Always connected, B2C customers are
seizing new opportunities. But profitable
demanding a new experience. Fickle and The new multi-sided business models
exploitation of smaller and less accessible
quick to switch loyalties, they want ultra- delivered through these new partnerships
fields, shale gas and liquefied natural
personalized and simple interactions with allow companies to offer valuable new
gas (LNG) requires new methods and
the brand, at the very moment they need services that will help build customer
models to be developed. At the same
it. Forecourt stores are a key asset for B2C loyalty. In the emerging world, for example,
time, companies must also tackle diverse
retailers, who increasingly need to deliver oil and gas companies are already offering
challenges that range from economic
an enticing ‘showroom’ experience. credit management in gas stations.
and political uncertainty to massive
environmental and public confidence Companies are also exploring multi-
To win business in this very complex, sided market opportunities driven by our
pressures.
competitive and volatile landscape, oil and increasingly connected world: the growing
gas companies must turn their growing number of connected cars, individuals and
In addition millennials, in particular, are
volume and variety of customer data more.
building a new relationship with their car.
into actionable insight on the diverse
No longer a social marker, it’s now simply a
expectations and behaviors of their Real-time intelligence will accelerate and
commodity product they use to commute
different types of customers. Only then enhance decision-making throughout
from A to B. Public and private car sharing
will they be able to create compelling new business development. Growing data
– enabled by BlaBlaCar, Uber and other
new services and provide customers with volumes will become the real differentiating
transport market disruptors – along with
the meaningful value that will buy their asset, but only for companies committed to
increased teleworking may well decrease
enduring loyalty. Downstream, where the uncovering their business value.
the distance each citizen drives with his
fleet business is particularly important,

122 #AscentLookOut
Oil and Gas

‘‘To win business in this very complex, competitive and volatile


landscape, oil and gas companies must turn their growing volume
and variety of customer data into actionable insight on the diverse
expectations and behaviors of their different types of customers.’’
Alpha Baro
Vice President
Oil & Gas

Operational of reinvesting is considerable and it will take Any major incident can have catastrophic
companies more than a decade to bring effects on both planet and reputation. The
Excellence replacements on board. quality of data, governance and reporting
matters more than ever.
Upstream, efficiency is key to managing
As oil prices continue to tumble in the face the operations at the smaller and more As oil prices tumble and companies
of excess supplies, every oil company finds remote sites with a limited life-span. Without seek out new ways to save money, data
itself operating under immense pressure. it, these sites would simply not be viable. quality and integrity must be assured
With no rebound expected at least until In location-specific and relatively stable without compromise wherever data
a clearer picture of supply emerges, midstream environments, effectiveness management is outsourced. What’s more,
companies urgently need to reduce costs depends on exact inventory and timely industry constraints must be taken into
to combat shrinking margins and higher intervention. full consideration in the design of the
discovery and development costs. They virtualized systems that will help oil and
must also increase agility to quickly adapt gas companies reduce cost and boost
to new economic environments. Trust and efficiency.
Compliance
Outsourcing non-core operations – loyalty Security processes and solutions must
card management in downstream be applied across the partner ecosystem
operations or even divesting whole too. Where pumps on a rig, for example,
tranches of the retail business, for example No other industry sector comes under as
are owned and managed by a third-party
– can reduce cost and boost effectiveness intense critical public scrutiny as oil and
under contract, the responsibility for
while maintaining the brand and customer gas. Companies must protect customer
the safe and effective working of those
relationship strategy. After all, oil companies data and shield essential resources
pumps is ultimately carried by the oil
want to keep control and retain their from the threat of cyber-attacks while
or gas company. With these complex
position as the decision makers for responding to increasing regulatory
interdependencies, it's essential that
strategic topics. To maximize value, oil and reporting obligations in a timely and
local and global security and compliance
gas companies must form tighter and more transparent fashion.
obligations are extended across the
active business relationships with their new partnership network.
specialist partners and their suppliers. In a world that is now very much digitally
connected, oil and gas companies must
Actionable intelligence is vital for improving be seen to meet social and environmental
efficiency, reducing downtime and helping obligations. As oil and gas companies
oil and gas companies thrive. After all, a increase their energy production they must
single day’s downtime can cost a company manage the environmental impact of their
more than $10 million. They must fully operations very carefully. Commitments to
exploit both real-time and historical data protecting the environment should not only
upstream, midstream and downstream, focus on eliminating leakages, reducing
especially in those areas where operational CO2 emissions, water consumption and
and information technology come together. waste, they should also include working
closely with local communities.
With significant investments tied up in
assets that are often more than 20 years Always in the public eye, no oil or
old, maintenance costs have become gas company can underestimate the
almost unsustainable. Meanwhile, the cost importance of environmental impact.

Ascent Look Out 123


Oil and Gas

124 #AscentLookOut
Oil and Gas

Mainstream
5G networks Early adoption
Adolescent
Emerging

Cloud Service Integration

Prescriptive analytics
Privacy-enhancing
technologies Self-adaptive
security

Distributed analytics Advanced data


visualization
High performance
computing
Edge
Internet computing Semantic technologies
of Things
Wearable 3D printing
computing

Innovation value webs


Streaming
analytics Context-rich
systems
Autonomous
vehicles
LPWAN
Machine-to-machine

Hybrid cloud
Augmented reality
Sentiment analytics

2016 2017 2018 2019+


© Atos 2016. All rights reserved.

Key Enablers Advanced data visualization


3D visualization technologies provide a
have relieved engineers of hazardous,
time-consuming and costly field data
real-time immersive picture of the well that reading activities. More than that, these
3D printing
can be shared remotely. ‘drones’ can monitor movements around
Every sector – exploration, production,
pipelines and facilities, highlight activities
refineries, petrochemical plants and gas
Augmented reality – such as public works or a fire – close to
stations – is benefiting from modern
By providing workers with immediate sensitive pipelines. They can also pinpoint
3D printing technology. It's particularly
access to more and better information the source of a leak or other pollution far
important in the field, specifically offshore.
– from asset lifecycle management to quicker than any human could and provide
When a critical piece of equipment fails,
production analysis – augmented reality a permanent view of offshore platforms.
maintenance engineers no longer have to
delivered through smart glasses allows Onboard cameras relay videos and photos
wait to set to work repairing the affected
more to be done by one individual. back to base, while sensors gather data on
machinery. The new part is now available
Embedded cameras relay pictures back the environment.
in next to no time, eliminating the cost of
to base to record activities or to allow less
ordering, shipping and downtime.
highly qualified staff in the field to tap into Cloud Service Integration
the expertise of centrally-located experts. Cloud-enabled integrated manufacturing
5G networks, LPWAN
This allows companies to make better use is bridging the gap between up-, mid- and
Soon all data will simply be sent over a
of scarce expertise. downstream operations. Cloud Service
combination of the pervasive 5G and Low-
Integration (CSI) ensures tight integration
Power Wide-Area Networks (LPWAN). The
Autonomous vehicles between various cloud services. For
deep insight offered helps enhance the
Oil and gas companies need to ensure instance, CSI is helping gas companies
safety of offshore engineers, ensure the
the safety and security of their vast optimize extraction by enabling tight
security of infrastructure and maximize
infrastructure. With assets spread far and integration between the gas turbine
productivity, amongst other things.
wide, unmanned aerial vehicles (UAVs) manufacturer’s PLM cloud service, a

Ascent Look Out 125


Oil and Gas

company’s own private asset management that are organized in collaborative working across the refinery equipment that they
cloud service and a sub-surface analysis environments for looking after a series of can then drill down into. Behind the
cloud service. fields. scenes semantic technologies help
these intelligent systems understand the
Context-rich systems Internet of Things relationships within and across data.
By bringing together insight on the wider By exploiting data from predictive models
context, context-rich systems in tandem – such as weather – along with production Sentiment analytics
with advanced analytics, help companies data, data from smart embedded sensors As oil and gas companies looking to
ensure they deliver the personalized and engineers’ wearables and a wealth address massive environmental and
interaction today’s customers demand. of broader information sources, the public confidence pressures are turning
Internet of Things (IoT) provides oil and to advanced social media analytics with
Distributed analytics gas companies with a rich picture of the its sentiment analytics to determine
Distributed analytics helps companies environment out in the field. what people feel about their brands and
optimize production yield by analyzing quickly address any reputation-damaging
data from the well head, in the field and Machine-to-machine sentiment.
other remote locations in real time. They Breakdowns are few and far between
help reduce leakage by combining and these days. Smart, data-driven prescriptive Streaming analytics
analyzing data gathered from sensors maintenance programs are helping to A few years from now and you will find oil
deployed throughout the production chain maximize the effective lifecycle of aging and gas companies well into their Big Data
in real time, for instance. upstream and midstream assets, while revolution, dependent on the timeliness
improving tool reliability and cutting and quality of intelligence for production,
Edge computing maintenance cost. Machine-to-machine refinement and commercialization of oil
Upstream, edge computing is adding (M2M) technology connects assets, and gas. Advanced analytics play a vital
intelligence to equipment. Critical continually transmitting diagnostic data role in ensuring safety and profitability.
production decisions are well-informed and from machinery in the field, at wells or in Streaming analytics, for example, allows
can be made quickly. refineries to an intelligent system in the companies to extract intelligence in
remote control center. real time so they can act rapidly. By
High performance computing immediately analyzing data coming from
With actionable real-time intelligence now Prescriptive analytics a pump at the wells it provides production
crucial for helping oil and gas companies Companies are increasingly leveraging engineers with actionable insight in next
not only survive, but thrive, high smart, data-driven prescriptive analytics to no time – insight into any sudden drop
performance computing is able to process to optimize operations up-, mid- and in production that might prevent the well
the vast volumes of real-time and historical downstream. Downstream, prescriptive reaching its target daily production, for
data that is now available. Seismic imaging, analytics not only helps companies predict example.
for example, relies on HPC to process data market demand and align per barrel
on how acoustic waves propagate and production cost against the current and Wearable computing
reflect through the subsurface to determine foreseeable future of crude oil price, it Well engineers access vital information
the possible presence of hydrocarbon can also suggest how, when and where hands-free through modern wearables
accumulations. These simulations enable production needs to be stepped up. – including smart glasses, bracelets and
companies to predict whether oil wells will sensors embedded in clothing – improving
fulfill expectations more accurately before Privacy-enhancing technologies productivity and safety. Sensors can send
drilling begins. With the oil and gas industry under such information on the engineer, their actions
intense scrutiny privacy-enhancing and the local environment back to a
Hybrid cloud technologies are helping control the remote control center.
Cloud computing is helping oil and gas disclosure of customer data. They help
companies ensure data is accessible companies manage privacy risk by
whenever and wherever it's needed, ensuring compliance with data protection
improving mobility and flexibility. Sensitive legislation and regulation.
data, such as prospecting intelligence, is
stored in private clouds. Hybrid clouds Self-adaptive security
then allow companies to combine their Contextual dynamic access control
sensitive data with classified data, such as enabled by self-adaptive security provides
the contact information for local associates. companies, customers and partners with
access to information and systems only
Innovation Value Webs when needed, shielding essential resources
With oil and gas companies building from the threat of cyber-attacks while
partnerships and alliances beyond raising levels of privacy protection.
traditional borders, innovation value
webs are enhancing collaboration and Semantic technologies
communication across the wider partner Distributed analytics has a role to play in
ecosystem. Their new social business reducing power consumption in midstream
tools are also encouraging deeper operations. It provides refinery managers
cooperation between the multi-skill teams with an overall analysis of power usage

126 #AscentLookOut
Oil and Gas

Key Enablers in Oil and Gas

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3D printing Innovation Value Webs

5G networks Internet of Things

Advanced data LPWAN


visualization

Augmented reality Machine-to-machine

Autonomous vehicles Prescriptive analytics

Cloud Service Privacy-enhancing


Integration technologies

Context-rich systems Self-adaptive security

Distributed analytics Semantic technologies

Edge computing Sentiment analytics

High performance Streaming analytics


computing

Hybrid cloud Wearable computing

Ascent Look Out 127


Market views

Pharmaceuticals

Global pharma market worth nearly Increasing volume of digital patient


$1.6 trillion by 2020 data
Focus on patient-centric health lifecycle Growing health needs of an aging
management global population
80% of consumer wearables measure New sources of evidence: online
health-related KPIs communities, apps & sensors
Personalized medicine and value-
Swelling counterfeit drug market
based pricing

Key Market Challenges

Customer well-informed having trawled the internet to


learn about his health, diseases, prognosis
markets, an intensifying counterfeit drugs
market and increasing manufacturing
Experience and potential treatments. He may also capabilities in countries such as Brazil,
be misinformed and have drawn his own Russia, India and China (the BRIC
– right or wrong – conclusions about his countries). Companies developing new
We're in the midst of a significant shift, diagnosis. pharmaceuticals stand to lose many billions
from a world in which one size fits all to of Euros of annual revenue over the next
one in which the individual’s diseases are Cyber patient can access all the information few years from patent expiry alone.
treated with highly personalized drugs. he needs, anytime, anywhere. Armed with
Pharmaceutical companies’ key goal is to an abundance of knowledge, cyber patient As pressure on the pipeline mounts,
develop the right drugs to be administered provides pharmaceutical companies with pharmaceutical companies are looking
to the right people at the right time. They a unique challenge: he is likely to self- for ways to accelerate new product
need to ensure patients not only get the medicate. Not giving drugs enough time development and transform themselves
medications they need, but also fully to be effective, he is prone to switching from drug manufacturers into patient-
understand how to take them – a growing from one to the next, time after time. centric organizations.
issue as the population ages. Pharmaceutical companies need to engage
directly with cyber patient to counteract One of their key goals is to make costly
Understanding how differences in the impacts of and support self-diagnosis and time-consuming research and
genes and their expression affect the and self-medication. clinical trials more effective and more
body’s response to medications is key to efficient. Replacing legacy manual and
developing personalized drugs. Genetic In fact, pharmaceutical companies need paper processes with intelligent tools that
and other forms of molecular screening to engage more intimately and more integrate all data from collection to analysis
are helping the physician select the individually than ever before across all is cutting cost, accelerating processes
optimal therapy first time, avoiding the their stakeholders, including physicians, and reducing inconsistencies, errors and
frustrating and costly practice of trial-and- hospitals and insurance providers. Creating duplication of effort.
error prescribing. But there’s a significant an integrated ecosystem will allow them to
gap between this cutting-edge ‘genomic’ deliver the engaging experience that will Accelerating new product development
research and everyday healthcare. ultimately build trust and loyalty. will also help pharmaceutical companies
Processes and solutions are needed to develop vaccines or treatments whenever
translate genomics into clinical practice. there's a major pandemic. In recent years
Business we have seen major outbreaks of avian
Meanwhile, the internet is providing Reinvention flu, Ebola and SARS, and people expect
patients with a wealth of information about pharmaceutical companies to react quickly
their diseases, how they can prevent them, and come up with a solution without delay.
possible treatments and recovery. Powerful
Pharmaceuticals must deliver safe, high-
online communities allow patients to seek Furthermore the traditional drug company
quality drugs and medical devices, while
advice from fellow sufferers. focused on the product must transform
safeguarding revenues. But time-to-market
itself into a disease management
is increasing, R&D productivity is declining
This freely available insight has organization focused on delivering patient
and fewer blockbuster drugs are emerging.
revolutionized patients’ behaviors. value. Additional patient-centric products
To be successful in the new world, and services will open up the new revenue
Meanwhile, they also face competitors
pharmaceutical companies need to streams. It’s important they collaborate with
waiting to produce generics after patents
understand and engage with the new type other parties in the value chain, such as the
expire, slowing growth in established
of patient: cyber patient. Cyber patient is IT technologies partners that may position

128 #AscentLookOut
Pharmaceuticals

‘‘As pressure on the pipeline mounts, pharmaceutical companies


are looking for ways to accelerate new product development and
transform themselves from drug manufacturers into patient-centric
organizations.’’
Markus
Fuchslocher
Vice President
Head of
Pharmaceutical
Industry

themselves as data brokers, brokering data Our ever more connected and monitored successfully satisfied, especially now that
gathered from via tablets, watches, TVs and world offers many great new opportunities manufacturing is commonly outsourced
other sources. for pharmaceutical companies. Take to contract manufacturers in low-
ingestible sensors that will be activated cost locations. A real-time value chain
By redesigning the patient experience, upon swallowing and enable wireless combined with transparency both inside
moving from a product-centric to a patient- patient monitoring and diagnostic imaging, the pharmaceutical company and in its
centric world, pharmaceutical companies for example. These ‘smart pills’ could open interaction with its network of partners
can gain the insight and loyalty that is up new revenue streams, along with other will help ensure the ‘right first time’ quality
critical to success. Online communities wearable products and apps. demanded today.
keep the brand at the forefront of cyber
patient’s mind while providing a direct Meanwhile, doctors could prescribe their
channel for learning about his fears at patients apps, either in a more preventive Trust and
the different stages of his health journey approach to health or as an alternative Compliance
– healthy living, prevention, diagnosis, to medication. An app that monitors
treatment, recovery and home care. In and encourages exercise and a healthy
return, cyber patient may offer his trust and diet could be an alternative to statins, for Patient and product safety is increasing
loyalty. example. regulatory burden on the development,
manufacturing and supply of drugs.
Increased patient engagement and greater Pharmaceutical companies must
transparency will help pharmaceutical Operational keep their organizations up-to-date on
companies connect with patients along Excellence national and international laws, as well
their very personal health journey. Linking as healthcare specific regulations. An
the Business-to-Business and Business- effective compliance capability, with
to-Patient worlds provides companies efficient communications, is a differentiator.
With revenues declining, pharmaceutical
with the access to volumes of patient Furthermore, standardizing processes
companies must increase efficiency
data they need to deliver innovative along the entire value chain will help
and reduce costs to improve margins.
new personalized services – for example pharmaceutical companies meet the
Operational excellence is required
providing diabetic patients with a complete increased legislative pressure and combat
throughout the life sciences organization:
service comprising measuring the blood counterfeiting.
in production and across the supply chain
sugar level, the right doses of insulin, a
and within IT. A modern digital environment
pump and their physicians access to their Meanwhile, pharmaceutical companies are
is vital for streamline both internal and
real-time patient data. increasingly outsourcing drug discovery,
external processes that reach across the
pharmaceutical ecosystem. clinical trials and clinical data management
Centralizing that insight along with other to cut cost. They're also working more
critical data will not only enable real-time closely with each other to share risk, take
Despite demand weakening in established
access to information from anywhere, it will advantage of economies of scale and
markets, demand for healthcare is
strengthen engagement with stakeholders influence the direction of clinical research.
strengthening in the emerging markets.
(including study sponsors, regulators, Protecting intellectual property in this new
Companies therefore need to be able to
hospitals, physicians and nurses, as well very collaborative environment is a key
provide any drug anywhere around the
as the patients) by simplifying information concern.
world at any time, swiftly moving drugs
sharing. Stakeholders will no longer
around the globe. Reliable forecasting
participate individually; instead they will This places security, reliability and
and a well-managed global supply
work together towards a united goal. scalability at the top of the IT agenda.
chain are key to ensuring demand is

Ascent Look Out 129


Pharmaceuticals

Any IT failures could potentially impact


manufacturing processes and the quality
of the drug produced. Furthermore, all data
and information exchanges must be kept
safe from ever-increasing cyber-threats.

To develop trusted exchanges amongst


all stakeholders, companies should also
focus on inspiring confidence within their
ecosystem. This requires a modern IT
environment that enables the effective and
efficient collaboration and communications
that will also help attract and retain talent
in a highly competitive talent marketplace.
After all, today’s new generation of experts
is expecting to work with tools that are
at least as advanced as those they use at
home.

130 #AscentLookOut
Pharmaceuticals

Mainstream
Early adoption
5G networks
Adolescent
Emerging
3D printing

Streaming
analytics
Self-adaptive security
Trusted information
High performance brokers
computing
Internet of Virtual assistants
Things Cloud Service
Distributed Prescriptive analytics
analytics Integration
Pattern-matching Privacy-enhancing
technologies technologies
Wearable Semantic
computing technologies Advanced data
visualization
Social network
analytics
Augmented reality

2016 2017 2018 2019+


© Atos 2016. All rights reserved.

Key Enablers Advanced data visualization


Graphs and other pictorial formats
Cloud Service Integration
Integrated manufacturing, which ensures
convey information concisely, making information transparency and collaboration
3D printing
the exploration of complex information between MES, ERP and PLM systems,
With personalized medication high on
quicker and simpler. By providing an easy is bridging the gap between demand,
the agenda, 3D printing technology will
to interpret representation of data where production and supply chain execution,
one day allow manufacturers to layer
the end point depends on a number of and also with R&D. This vertical view along
medication in precise dosages in pills.
variables, 3D visualization technologies the value chain has become increasingly
Medication can be tailored, based on each
simplify access to meaningful insights and, critical as pharmaceuticals move towards
specific patient’s needs.
in doing so, increase the odds of finding more personalized medicine. Cloud Service
clinically significant insights. Integration ensures tight integration
5G networks
between all these different cloud services,
Future high speed, extended range 5G
Augmented reality from scanning an individual patient’s
networks will ensure even participants
Plant maintenance engineers access knee and sharing the picture in the cloud
in the remotest of locations can share
vital information hands-free through to gathering the raw materials and then
their data from the comfort of their own
modern wearable devices, improving manufacturing the one-off product.
homes. Clinical trial teams and other
productivity and safety. Augmented reality
pharmaceutical company employees
provides step-by-step instructions on Distributed analytics
will also benefit from the more mobile
how to maintain equipment, equipment At the end of a trial, pharmaceutical
and accessible work environment, which
maintenance or performance histories or companies need to analyze the data
will allow them to access the tools and
even details on how to unlock a secure gathered alongside up-to-date information
information they need, when they need it –
cabin. Embedded cameras relay pictures about the participants, candidate drug and
even when they're out on the road.
back to base to record activities or tap into more. Distributed analytics allows diverse
the insight of a specialist engineer. data sources to be analyzed together

Ascent Look Out 131


Pharmaceuticals

without the need to first copy the data to are repaired or replaced long before they trial or physician can react quickly to any
a central location. Companies can more threaten to cause down time. This type change in a participant’s vital signs, for
rapidly understand how differences in of condition-based maintenance helps instance.
genes result in an effective cure, non- companies save on labor and service
effectiveness or severe side effects for a cost, reduce unscheduled downtime and Trusted information brokers
specific drug treatment. improve operational efficiency. Pharma companies are looking for a
trusted mediator to host personal health
High performance computing Privacy-enhancing technologies information. Trusted information brokers
With the volumes, variety and velocity As companies gather more and more will act as the central verification service
of data accelerating, high performance information about patients during eliminating the risk of manipulation –
computing is needed for handling complex their clinical trials privacy-enhancing especially in clinical trials – and ensuring
simulations and analyses; for analyzing the technologies control the disclosure of data. integrity of data.
DNA of clinical trial participants to try and They help companies manage privacy
identify the variants involved in different risk by ensuring compliance with data Virtual assistants
side effects, for instance. It also enables protection legislation and regulation. Innovations, such as virtual assistants, will
the virtual high throughput screening that have a significant important role to play
is accelerating lead compound discovery Self-adaptive security in patient compliance. This might be both
processes. Contextual dynamic access control during clinical trials and once the candidate
enabled by self-adaptive security provides drug has been approved and released to
Internet of Things companies, patients and partners with market. Carried on a smartphone or a 3D
Intelligence from wearables and smart access to information and systems only visualization, the avatar may remind the
devices is combined with information from when needed, raising levels of security and patient to take their medication or simply
numerous other diverse sources – from privacy protection. provide help and advice.
electronic patient records to information
about the drug candidate, trial itself and Semantic technologies Wearable computing
even all stakeholders involved – in the Semantic technologies enable the Just a few years into the future and we will
Internet of Things (IoT). The IoT enables integration of the diverse formats of data see the speed at which pharmaceutical
smart, timely and appropriate drug that come from disparate systems into the companies gather, combine and explore
administration, amongst other things, cloud. They ensure analytics systems can information continuing to increase – during
where a patient’s KPIs measured by smart understand the meaning of the data they research, in the manufacturing plant and
sensors regulate an ‘embedded’ active process, whatever its format. across the entire pharmaceutical supply
pharmaceutical ingredient depot (such as chain. Patients participating in clinical trials
an insulin pump), for instance. Cloud enables people to share their health will be more connected and sharing more
KPIs – clinical trial data, for example – from information than ever before. Smartphones,
Pattern-matching technologies anywhere and allows other stakeholders wearables and other smart sensor devices
In the event of a pandemic, the medical to act on that data in real time. Examples are constantly collecting information on
community and pharmaceutical companies might include physicians increasing insulin health KPIs (oxygen levels, blood pressure,
need to understand how the disease is on seeing blood sugar levels decrease. blood sugar levels and more) and storing it
spreading in order to predict future spread in the cloud.
and these future drug requirements. Social network analysis
Pattern-matching technologies such as Pharmaceutical companies are striving
deep learning are helping them understand to move from a product-centric to a
disease behaviors, revealing otherwise patient-centric world while patients want
hidden patterns in transmission or to take a greater role in their choice of
remission, for example. medicine. Social media is taking an active
role in enabling that transformation and
Prescriptive analytics participation. In combination with social
Pharmaceutical companies are adopting network analysis it's helping companies
prescriptive analytics to ensure they to understand how patients feel about
meet significantly greater demand for their drugs and which side effects impact
specific drugs in the event of a pandemic. them most. Meanwhile companies are
Prescriptive analytics takes intelligence on participating in or creating specific disease
the spread of the disease, availability of communities that help educate patients
raw materials and production schedules about their disease and to encourage
to suggest (or prescribe) an appropriate them to lead the healthier lifestyles that will
production schedule for the product. improve outcomes.

These technologies also have a vital role to Streaming analytics


play in production plants where they help Real-time streaming analytics gives
determine configuration or maintenance organizations a means of extracting
requirements, prescribing a course of intelligence from data as it emerges so that
action that will both ensure optimal intelligence can be derived and acted on
production levels and ensure failing parts at a moment’s notice. It ensures a clinical

132 #AscentLookOut
Pharmaceuticals

Key Enablers in Pharmaceuticals

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3D printing
Prescriptive analytics

5G networks Privacy-enhancing
technologies

Advanced data
visualization Self-adaptive security

Augmented reality Semantic technologies

Cloud Service
Social network analytics
Integration

Distributed analytics Streaming analytics

High performance Trusted information


computing brokers

Internet of Things Virtual assistants

Pattern-matching
technologies Wearable computing

Ascent Look Out 133


Market views

Retail

Old school loyalty programs are on their 2.5 billion new users will come online
way out in next 5 years
Social is growing as part of the omni- 84% of smartphone owners use
channel mix phones instore
Ecommerce will account for 8.8% of all
Retail is now borderless
retail by 2018
IoT will have a significant economic 26% of purchases are impacted by
impact on retail social

Key Market Challenges

Customer For online shoppers, delivery speed and


flexibility are becoming increasingly
the delivery provider. In India, for example,
one such retailer is connecting customers
Experience important. They want their products with grocery stores and delivery organizers
delivered faster and to be given more to provide a service that offers a wide
delivery options: not just post or click-n- range of groceries to their front door.
Technology has revolutionized the way collect, but also pick up from a nearby
we shop. The internet not only opens store. Traditional retailers are responding by
up an opportunity to access information offering value-added services; transforming
and compare prices, it also offers a wider Whether online or instore, customers their brands into trusted partners that
choice of where and how to shop – both expect a rich, personalized and accessible customers can turn to not just for products,
locally and overseas. Powerful social shopping experience that is seamless but also advice. Modern health food stores,
networks can either advocate or destroy across physical and virtual stores. for example, are helping customers analyze
a brand. Mobile devices provide instant Furthermore, retailers need to adapt to and understand their individual health
access to information at any time and from the increasingly rapid change in customer and nutritional needs while sport apparel
anywhere. preferences and context. Continuity and brands are providing advice on improving
ubiquity of stock will be key to achieving sports performance.
In store, new types of shopper have this ‘responsive retail’.
emerged: the informed shopper and the These additional services will help to build
leisurely shopper. And since individuals are The final payment step will also be brand loyalty by making the brand more
likely to exhibit some aspects of each type important in the overall shopping relevant to customers rather than just
of shopper during each trip to the store, experience. Mobile, contactless payments providing a product. Getting closer to the
retailers need to cater to both. will make it easier to pay and eliminate customer, will enable retailers to not only
waiting times. learn more about the customer’s current
The informed shopper begins their needs and desires, but also anticipate
shopping journey online, trawling the customers’ future needs and identify new
internet to learn about the product of Business sales opportunities. These services also
their desires: its pros and cons, where it's Reinvention help ensure retailers only push relevant
available and the best deals. Armed with offers and information, bringing added
knowledge and questions, they visit the value to their customers.
store to learn more about and experience
the product. They expect their in-store The number of direct-to-consumer retail
As well as reinventing their brand identity,
experience to be slick and uncomplicated, channels grows and with it the progressive
retailers are also reinventing their high
to easily find the answers to their questions. disintermediation of retailers. Marketplaces
street stores, transforming them to provide
And should they make up their mind to allow new entrants to reach the customer
a real experience of their products and
purchase the item there and then, they easily without their own online platform.
brand by allowing customers to try-touch-
expect a good deal and speedy check out. Some larger online retailers are also
learn about products. What’s more, with the
Failing that they might turn to their mobile leveraging marketplaces to extend their
large range of different store formats and
to purchase the product from a competitor. own products and services offerings.
the rising number of smaller format stores,
shelf space is limited and only a fraction
The leisurely shopper, on the other hand, Elsewhere, the cloud is enabling an entirely
of the full range of physical products can
visits the store purely for entertainment: to new type of retailer. With no physical stores,
be on display. Retailers are using virtual
shoot a few basketball hoops, learn about inventory or warehouses, they connect the
stores and digital technology to show their
their favorite stars or for their toddler’s customer directly with the services they
full product range with only a small part
birthday party. need: the manufacturer, the store and/or
physically present in the store. Digital walls

134 #AscentLookOut
Retail

‘‘To help them succeed in today’s increasingly diverse and competitive


environment, retailers are looking for new ways to improve efficiency
and reduce costs. They also need to provide their customers with a
consistent high quality experience both instore and online, engaging
Annick
Lemaylleux
with them in a more personalized and meaningful way.’’
Vice President
Head of Global
Retail Market

can even be installed outside of physical To take full advantage of reliable real-time And as they become increasingly
stores to provide customers with virtual data to optimize operations and cost, dependent on technology, retailers must
shopping opportunities on their way to retailers will need to standardize, simplify also protect their stores and their services
work or while waiting for the subway. and modernize their IT systems. While from both virtual and physical attack.
they're doing this they must also invest in Furthermore, they must protect the
But this is only the start of the story. the new technology that will enable them increasing number of electronic channels
Retailers also need to anticipate how and to both offer their customers a true omni- through which they engage with their
where tomorrow’s customers are likely to channel experience and engage with them customers – from laptop and tablets to
want to shop: how and why they navigate in a more personalized way. smartphones and wearables. To guard
through different channels. As customers’ against reputational damage from an
habits and preferences evolve – and the A true omni-channel experience offers outage or a major data breach, risk must
pace at which they're evolving is getting seamless integration across all available be continually anticipated, assessed and
faster and faster – retailers will need to be channels. Product names, information, managed.
able to react quickly to accommodate new pictures, prices, returns policies, stock
behaviors and desires. availability needs to be consistent
whether online or in stores. Ensuring
this is important for building the trust
Operational that increases loyalty and, with it, repeat
Excellence business.

Trust and
To help them succeed in today’s
increasingly diverse and competitive
Compliance
environment, retailers are looking for new
ways to improve efficiency and reduce
costs. Both instore and online, they’re Retailers need to build trusted relationships
looking for more efficient ways to engage with their customers to encourage them
with customers and to provide customers to share personal information. Without it
with self-service access to information. they will struggle to understand and target
individual’s needs and desires.
Now present on a variety of channels
– their own virtual and physical stores All customers, however, expect retailers
as well as their partners’ – retailers must to safeguard that data, to prevent
ensure ample stock. Real-time visibility and unauthorized breaches that could see their
optimization of not only stock levels but personal information fall into the hands of
also the supply chain, along with real-time fraudsters. Stringent protection against its
demand forecasting, will be key to ensuring fraudulent use by third parties remains a
they have the right products available, in basic condition for a trustful brand. High
the right store, at the right time. Online standards of data privacy and IT security
they have the luxury of being able to see management – including leveraging the
what pending purchases are in customers’ strong authentication required to ensure
shopping baskets. their customers are who they profess to
be – have to be established and kept at all
times.

Ascent Look Out 135


Retail

Key Enablers Around the store digital signage is also


leveraging 3D visualization technologies, to
Beacons
Indoor positioning systems (IPS) such as
showcase products not physically located beacons help to locate items and people
3D printing
within the store and also turn the shopping in the warehouse and in store using radio
Some personalized products can be
experience into the entertainment waves, magnetic fields, acoustic signals,
created in store thanks to 3D printing: a
experience that is intriguing customers and or other sensory information collected
bespoke toy, item of footwear or ornament,
increasing footfall. Fans of sports brands, for by mobile devices. Instore they enhance
for example. The customer might design
example, move around the virtual stadium customer experience by providing
it at home and then collect the finished
as they watch their favorite athletes personalized videos, offers and more
product from the store an hour later.
compete. on the nearest screen to the customer.
Furthermore, they enhance the shopping
5G systems
Augmented reality experience for the disabled customer by
The next step in wireless communications
In stores, augmented reality lets the providing all these directly to their own
technologies, 5G systems will allow
customer try items on in a virtual changing accessible mobile device.
retailers to enhance the mobile customer
room. As well as allowing the customer
experience with high bandwidth videos
to see how it will fit, the technology offers Biometric technologies
and other media formats that are more
the customer additional information about Biometric technologies – including
engaging. With more bandwidth available
the product. At home, augmented reality contactless credit cards with built-in
they can deliver a true omni-channel
allows the customer can see how the fingerprint scanners and selfies that the
experience wherever the customer is:
product fits in his own environment or store checks against a stored photo of
at home, out and about or in store.
access additional information on a product the customers – are making the payment
from a paper catalog. Pre-checking that an authentication process stronger and
Advanced data visualization
article of clothing fits the shopper well, for easier. Companies are experimenting with
Data can be quickly turned into a real-time
example, reduces the volume of returns. other forms of biometrics such as iris scan
immersive virtual 3D layout of store thanks
It also provides additional marketing technology, but there are concerns about
to 3D visualization technologies. A library
opportunities and increased consumer customer acceptance with this and other
of product images builds a digital replica
interaction. forms of biometrics.
of the store, paving the way for dynamic
merchandising and compliance analysis
New mobile point of sale solutions are Cloud Service Integration
for every store. Workers can rapidly identify
simplifying and speeding up the payment As retailers move their point-of-sale,
where shelves are getting low or even
process while reducing cost and risk. In the inventory management, supply chain,
empty.
store these include mobile wallets, cloud customer relationship management
mobile and mobile card payment. and other key systems into the cloud,

136 #AscentLookOut
Retail

Mainstream
Early adoption
Adolescent
Emerging

3D printing

5G systems
Edge
computing Privacy-enhancing technologies
Advanced data visualization
Cloud Service Integration
Internet of Prescriptive analytics
Things Augmented reality
Context-rich systems

Distributed analytics
Self-adaptive security
Pattern-matching technologies
Biometric technologies

Hybrid cloud
Robotics
Virtual assistants
Mobile and social media apps
Near field communication
Beacons Wearable computing
Geo-location
technologies Sentiment analytics
2016 2017 2018 2019+
© Atos 2016. All rights reserved.

Cloud Service Integration ensures tight Distributed analytics it soon after capture.
integration between all these various cloud To engage on a personal level with their
services. customer, retailers need a single up-to- Geo-location technologies
date 360° view of the customer, their Electronic shelf labels (ESLs) also provide
Cloud-based federated identity provides purchasing history, needs, desires and a very precise global product positioning
secure federated access to both operational their behaviors. Distributed analytics system since each product in the store is
systems and customer information across provides a comprehensive view of the individually labeled. If a customer is looking
systems. Trusted information brokers customer by analyzing data in situ across for something they can’t find, a product
are poised to act as the future central heterogeneous data sources. This single search on the store map will find easily
verification service, eliminating the need for source of the truth helps stores ensure the product thanks to the geo-located ESL
individual registration and authentication of every interaction – whether digital or with a enabled by geo-location technologies. A
each service. human store assistant or customer service NFC tap on any nearby ESL will identify
representative on the phone – is consistent, their exact location in store and direct them
Context-rich systems relevant and meaningful. toward the product they’re looking for.
Working in tandem with advanced
analytics, context-rich systems bring Edge computing Hybrid cloud
together insight on the wider context to In the future companies may leverage Retailers are looking to enhance that
help retailers proactively align content edge computing to both process relevant customer experience further; to encourage
with the consumer’s needs. These systems data more quickly and ensure scalability ad-hoc purchases based on the current
may, for example, adjust content sent to within the smart connected retail context. Hybrid cloud allows companies
an individual customer or digital signage environment. Indexing data close to the to augment customer data stored within
based on anything from the weather point of capture, for examples, lightens the their own private clouds with third-party
outside to current events, device-type, load of centralized servers while making it information – such as news on trends, hints
network capabilities and more. highly accessible to the systems that need and tips or even weather forecasts – so

Ascent Look Out 137


Retail

they can offer the customer timely, relevant Prescriptive analytics minimize overcrowding in specific regions
suggestions. By analyzing a comprehensive up-to-the- of the store.
minute picture of the customer and their
Internet of Things context combined with well-understood Wearable computing
Embedded sensors in shelves, packaging customer habits, expectations and buying Warehouse employees can track a product
and more together form the growing behaviors, prescriptive analytics suggest hands-free through modern wearable
Internet of Things (IoT). Connected which promotions the retailer should offer devices. These wearables infuse insights
systems, processes, workers, customers, a customer to maximize their shopping with the real-world, blurring the lines
stock and shelving transforms the store basket. Prescriptive analytics also has a between digital and physical. They provide
into a smart connected retail environment role in helping retailers gauge the expected the same detailed information on stock
equipped to respond in real time to future profitability of each customer levels and location that the robots have
changes in customer demand and relationship. Online it helps with optimizing available to them.
behavior. In the future it will also enable checkout-funnels and maximizing
automatic purchasing, for example. With conversion rates.
products and customers located in real
time, the merchandising becomes dynamic. Privacy-enhancing technologies
As customers share more information with
ESLs, for example, allow retailers to display retailers privacy-enhancing technologies
and update prices remotely across the (PET) control disclosure of data, helping
store, without the need for staff intervention establishments to manage privacy risk by
at the shelf edge – generating significant ensuring compliance with data protection
and recurrent operating cost savings. legislation and regulation.
The ESLs not only allow dynamic pricing,
varying price by time of day, but can also Robotics
enable interaction with customers’ smart In the warehouse, robotics helps with
phones to access product information or laborious manual tasks such as order
enable personalized offers. picking. Instore, always abreast of the
real-time location and current stock levels
Mobile and social media apps of all of a shop's wares, robots become a
The cloud is a key enabler for business useful source of information and can be
transformation in the retail industry. used in customer service to engage with
It allows retailers to offer customers a customers and help them find items.
truly omni-channel experience across
all channels and locations. Whether the Self-adaptive security
customer engages with the retailer in a With retailers managing and sharing
physical, on the PC or through mobile more and more of their data and services
and social media apps, the systems they securely through their private clouds,
interact with and the data these systems the dynamic access control enabled
use will be the same. by self-adaptive security ensures staff,
partners and customers have access to
Near field communication the information and systems they need to
Stores' use of near field communication access, but only when they need it.
(NFC) is expanding rapidly from its initial
adoption as a means of secure contactless Sentiment analytics
payment. Customers tap an NFC tag on Social media provides customers, retailers
a table, shelf – or anywhere else it can and brands with more than just an
be embedded – with their NFC enabled opportunity to express needs, desires and
smartphone or smartcard to receive concerns; social is also becoming a new
advertising, offers, coupons, loyalty points peer-to-peer shopping platform. Sentiment
or even information on a specific product. analytics allows retailers to obtain valuable
feedback on consumer satisfaction and
Pattern-matching technologies ideas for innovation.
Pattern-matching technologies help
companies leverage the vast volumes of Virtual assistants
data available today to identify hidden Customers are greeted by a virtual
customer habits, identify untapped assistants as they enter the store. The
marketing opportunities and better avatar provides the customer voice- or
understand their customers – as well text-based information on their mobile. It
identify and then address potentially not only responds to customer queries,
fraudulent behavior patterns, including but advices the customer about the length
potentially fraudulent behaviors. of the queues, where to pay and more,
creating a novel interaction that draws
the customer in. For the retailer it helps to

138 #AscentLookOut
Retail

Key Enablers in Retail

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3D printing Internet of Things

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apps

Advanced data Near field


visualization communication

Augmented reality Pattern-matching


technologies

Beacons Prescriptive analytics

Privacy-enhancing
Biometric technologies
technologies

Cloud Service Robotics


Integration

Context-rich systems Self-adaptive security

Distributed analytics Sentiment analytics

Edge computing Virtual assistants

Geo-location Wearable computing


technologies

Hybrid cloud

Ascent Look Out 139


Market views

Telco

OTTs’ growing share of industry value Global mobile subscriptions will grow
chain revenues to 8.5bn by 2019
Network equipment hindering Mobile service revenues will reach
innovation time-to-market $1.1tn by 2019
The industry will continue to By 2017, half the world’s population
consolidate through M&A transactions will be mobile Internet subscribers
Regulatory uncertainties continue to M2M connections are forecast to
unsettle the industry reach 1bn by 2020

Key Market Challenges

Customer by establishing deeper one-to-one of devices; by providing the end-to-end


relationships. Gaining a clear understanding services customers will want. They might
Experience of what customers are interested in, leverage it to deliver new value-added
what they like and dislike, and how their services themselves or offer it to third
expectations are changing has become an parties.
The experience and expectation of Telco imperative.
customers, both consumer and business, In the retail and services sector, for
has changed significantly in recent years The emerging markets are characterized example, consumers are demanding digital
thanks mainly to mobility, smartphones by high demand and promising services that are more contextual while
and the innovative new services offered growth that is not necessarily linked retailers and service providers are hungry
by over-the-top providers. Customers to technological developments. These for a magical all-in-one omni-channel
expect personalized services and real-time include SMS-based transactional services solution. Telcos can empower these B2B
engagement. They want new mobility in Africa and WeChat-based commerce in clients to do business over any device and
solutions to be easy to use and deliver a Asia. Third-party services, such as banking any network according to the real-time
compelling and seamless journey – from for unbanked individuals, will help get context.
online shopping through mobile checkout customers on board. Over-the-top services
to after sales engagement, for example. are only relevant where data connectivity After all agile connectivity, with its ability
is available. to rapidly flex to address ever-changing
Telcos must ensure their products and capacity and latency requirements, is a key
services make customers’ lives better Conversely, in developed geographies, enabler for diverse industries' new digital
and easier while delivering on service extreme competition, high customer services.
availability, latency and jitter, performance expectations, competition from over-
and security guarantees. They must offer the-top providers and consumer-friendly
customers access to the services they need regulation are making the market difficult. Business
on-demand. The lower churn here correlates to high Reinvention
product output. To maintain their position
Delivering this superior end customer in these markets, Telcos must close the
satisfaction requires business and IT Net Promotor Scores gap with over-the-top
to be fully aligned and optimized, with The Telco climate continues to be
providers by managing and accelerating
seamless interaction between IT and the as volatile as ever: voice margins are
their response to new customer
Telco networks. It also needs Telcos to take decreasing, the end of roaming charges
expectations while being clear about their
ownership of new perimeters, such as the mid-2017 threatens to cut into existing
offerings.
end user device and app in the case of revenues and net neutrality threatens to
Wi-Fi calling. After all, customers are looking limit Telcos’ ability to differentiate traffic and
The ‘one-to-one’ relationship between an
to Telcos to connect them to everything, tariffs. Mergers and acquisitions are plentiful
individual and his/her connected devices
everywhere – including their over-the-top across Europe.
is now a ‘one-to-many’ relationship thanks
services – at any time. to PCs, tablets, wearables, connected TVs,
In response, Telcos must continually
beacons and more. The smartphone, for
Telcos’ growth will depend on their ability to create new business openings, new
example, will act as a hub for sensors in
win new customers in emerging countries streams of sustainable revenue and novel
the new connected world. Telcos have
and to increase average revenue per user go-to-market modes. This may mean
an opportunity to open new business
(ARPU) with relevant new products and fundamentally changing the nature of