could be effected. Home ZEBRA ZEBRA TC21 Handheld Touch Computer User Guide. (Searches for megaformer are 45%and kickboxing are 4%)90MotherTo BeHoping to return to music festivals this year,people are already searching for information and inspiration. To start using the device for the first time. (Searches for plaid shacket are 145%,flannel overshirt are 46%,and mens field jacket are 36%)(Searches for mens carpenter jeans are 38%,mens utility pants are 35%,and mens cargo jacket are 20%)(Searches for mens huggie earrings are 99%,mens co-ord are 35%,and mens crossbody bag are 31%)(Searches for mens flared pants are 147%,mens paisley shirt are 85%,and mens heeled boots are 67%)(Searches for mens floral suit are 62%,patterned shirts are 19%,and patterned pants are 15%)12okdeonSimple ProjectPLAIDSHACKETMENSCO-ORDKidsFashionKids wardrobes reflect those of their parents as cottagecore styles and crafty staples get a kid-friendly revamp.Dressing to impress this year,kids will be stepping out in everything from sparkly dresses to preppy polos.41-50Animal KingdomCottagecore KidsPrim and ProperPrep SchoolPicnic ReadyCraftcoreStyle HeroShine BrightEasy StylingMini Me13MaisonetteYou cant go wrong with an animal motif.Kid-friendly favorites include nontraditional furry friends like rabbits and owls.AnimalKingdom41(Searches for owl t-shirt are 322%,penguin graphic are 247%,and rabbit graphic are 67%)44Kids dont need to attend private school to dress like a student.Preppy polos,dresses,and loafers are perfect for any occasion. Release the scan button. NOTE: User modification of the device, particularly in the battery well, such as labels, asset tags, engravings, stickers, etc., may compromise the intended performance of the device or accessories. (Searches for how to treat skin conditions are 126%and mullein oil are 33%)70HydrationStationAnti-inflammatory nutrients and ingredients like CoQ10 and quercetin offer a long list of important health benefits. Helpmaximize device availability and business operations withZebra OneCare Support Services. (Searches for faux fur headband are 205%,shearling bag are 86%,and fur bucket hat are 42%)(Searches for sparkly heels are 141%,rhinestone heels are 70%,and crystal jewelry are 14%)(Searches for pearl heels are 150%,pearl handbag are 38%,and pearl chain necklace are 14%)(Searches for long gloves are 26%,french pins are 26%,and beaded bag are 41%)(Searches for platform loafers are 154%,platform converseare 67%,and platform heels are 57%)05Wolf CircusVersaceLONGGLOVESPLATFORMLOAFERSPLATFORMCONVERSEA new crop of minimalist accessories have become instant classics,and will be here for years to come.Modern Classics16(Searches for croissant bag are 158%,croissant ringare 77%,and tabi boots are 45%)18At the intersection of foraging and fashion lies natural materials and forest-inspired accessories. )that offer important information onconsumer interest,preferences and behaviours-abehaviouralpsychologystandpoint.IoTincorporated with technologies like AI and ML isessential to achieving this state.Spendingpatterntoshifttocloud,dataandanalytics,and software from devices and sensors,forcompaniestomanagedailytasksand be ahead13 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.14 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The market opportunity for IoT is hugeFrom smart devices to smart cities,IoT is growing rapidly,with the pace and scale of enterprise IoT far outweighs consumer IoT.IDC predicts that by 2025 there would be 55.7 billion connected IoT devices worldwide generating almost 80 zettabytes(ZB)of data3.Source:3:Future of Industry Ecosystems:Shared Data and Insights,IDC,posted on Jan 2021,accessed on Jan 20,20224:Business Insider Intelligence,GSMA Intelligence,IDC,Market Watch,PR Newswire,KPMG analysisNorthern America IoT connections4Note :Represents CAGR for semi and fully autonomous vehicles,which accounts for 13.6%of the total IoT-enabled vehicle shipments in 2023.When including connected vehicles,which accounts for 86.4%of the total IoT-enabled vehicle shipments in 2023,the aggregate CAGR is 7.8%.Health wearables20#I V%Smart speakersSmartappliancesSmart vehicles Installed device CAGR,2020-20254Home security28)%Enterprise roboticsLogistics roboticsAgriculture monitoringSmart sensorsStreet lighting05001000150020002500300035002016201720182019202020212022202320242025MillionsConsumerIndustrial15 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.IoT is expected to impact the majority of traditional industries by 2023 2025 depending on data found RetailManufacturingInfrastructureUtilitiesDefenseHealthcareAgricultureBanking&financeFood servicesTransportationUSD 35.5 billion expected market size of IoT in the industry by 20259USD 26.8 billion militarydrone market by 2025824%annual increase in IoT infrastructure spending687.6 billionsmart sensors in manufacturing by 202551.3 billion smart meters deployed by 20257USD 188 billion expected value for IoT devices used in healthcare by 202514USD 18.1 billion value of global agricultural IoT market by 20261074%of insurance executives believe IoT would disrupt the industry11USD 8.4 billion expected market valuation of IoT in the industry by 202512470 million connected cars by 202513Source:5:Smart Sensor Market Global Forecast to 2025,MarketsandMarkets,Mar 2020;6:Global IoT spending to grow 24%in 2021,IoT Analytics,posted on Jun 2021,accessed on Nov 21,2021;7:AMI global forecast 2020-2025:H1 2020,Wood Mackenzie report,Mar 2020;8:Military Drones Market,MarketsandMarkets,Oct 2018;9:Internet of Things(IoT)in Retail Market-Global Forecast to 2025,MarketsandMarkets,Mar 2020;10:Agriculture IoT Market,Market,Markets and Markets,May 2021,11:How IoT will change auto insurance,Global Big Data Conference posted on Mar 2017,accessed on Nov 20,2021;12:Internet of Things and Traceability for Food&Beverage Manufacturing Market,Forecast to 2025,Frost&Sullivan,Sep 2018;13:470 Million Connected Vehicles On the Road by 2025,ITSdigest,February 16,2018;14:IoT in Healthcare Market,Markets and Markets,Jun 202016 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.IoT usage for hyper focused industries to deliver significant opportunities1Retail servicesOil and gasSecondary IndustriesAgricultureFinancial servicesHigher educationEnergy distributionTransportationGovernment(Fed/Local)Consumer productsAsset managementIndustrial manufacturingCities/SpacesHealthcareTechnology,Media and TelecomClient opportunity:Factory floor automation Workforce safety Product waste reduction Predictive and preventative maintenance Logistics and supply chainTarget submarkets:Automotive manufacturing Chemical manufacturing Medical devices manufacturing Warehouse and logistics Fleet managementClient opportunity:City/building operational efficiency Enhanced employee,citizen,visitor experience Improved safety and security Integrated transportation and improved traffic flowTarget submarkets:Smart buildings Hospitality Smart cities Integrated transportation Sports venuesClient opportunity:Improve patient outcomes Streamline operations Effective response to pandemics Remote patient managementTarget submarkets:Hospital and other medical facilities Hi-Tech pharmaceuticals Bio-technology research Client opportunity:Product globalisation Network integration Market collaboration Asset management and tracking Operational efficiencyTarget submarkets:Software and hardware providers Semiconductors Media production and distribution Telecommunications17 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Unlocking the value of the IoT has its challenges and requires a clearly defined strategyUnclear strategyAuthentication and device managementUnstructured data and processingInteroperabilityConnectivity,network and load balancingConsumer awarenessData security and privacyNo unified approachIntegration and Intelligent analyticsField installation and operations Digitisation of the upstream processes via IoT is complex and require a clear strategy and roadmap to realise the expected business objectives and outcomesIdentification and authentication of IoT devices on a single platform that requires system architecture and formalisationChallenges in establishing and maintaining interoperability between different IoT systemsMonitoring and tracking problems created by higher growth rate of number of connected devices as compared to the network coverage growthChallenges in managing unstructured data on the parameters of velocity,volume and varietyLack of consumer awareness creating fear of security and costs amongst the customers leading to slow adoption of technologyDevelopment and implementation of sound data security and cyber security policies for the purpose of consumer protectionIntegration of various products with the right IoT platforms and inability to translate data into meaningful insightsChallenges in continuity of using IoT devices especially in field installations and operations.Lack of clear direction on how to move business transformation,powered by IoT,forward successfullyClearly Defined StrategyStructured ApproachEffective GovernanceCollaboration Hyper Focus on QualityTransparent Communications18 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Successful IoT implementations require a structured governance frameworkA structured IoT Governance framework helps identify various components and stakeholders of a comprehensive IoT program.The IoT strategy,delivery,and operations models are integrated with risk,governance,and controls considerations throughout the program lifecycle to help ensure timely and effective risk identification,evaluation,mitigation,and in some cases,acceptance.IoT GOVERNANCECENTER OF EXCELLENCEThis framework also helps in:Holistic approach to responsibly building and managing a connected device programSupports a sustainable program for product design,development,and ongoing supportAligns people,process,and technology across different brands with common objectives and policiesEnables continuous innovation without compromising security,privacy and trustLayered approach with embedded checks and balances19 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.NB-IoT:A capability edge1920 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Different IoT communication standards especially LPWAN technology options driven by its low costs and operating requirementsNB-IoT stands out amongst the IoT standardsNB-IoT was conceived particularly for cellular M2M communications and allowsseamless deployment of devices within an operated network.It can coexist in thelicensed LTE/GSM bands with a frequency bandwidth of 200 KHz16.Operators,until now,opted for hybrid technology as there was no cellular LPWANtechnology.In addition,hybrid strategies with cellular and unlicensed non-cellularLPWAN applications were opted for due to factors such as cost,coverage,batterylife,latency,and scalability.However,with introduction of LTE-M and NB-IoT,available options have increased and so has the likelihood of using cellular LPWAN.Licensed technologies such as LTE Cat-1,LTE-M or NB-IoT,however,utiliseexistingcellularinfrastructure,offeringinstantstandards-drivendeployment,security,platform integration synergies and scale for mobile operators.As a result,the adoption of any of these cellular LPWAN technologies can scale much faster ina country like India.Wireless IoT networks have progressed to address a range of device applications in automobiles,wearables,connected homes,smart meters,connected lights,connected appliances,parking trackers and industrialautomation,amongst others.With a growing array of use cases and more potential ones to follow,choosing theappropriate connectivity standard becomes vital.IoT communication standards:LPWAN takes the leadFigure 4:IoT connection standards mapped against power consumption and coverage15Power consumptionShort-range wirelessBluetoothIEEE 802.15.4Zigbee,Z-WaveWLANsWi-FiHiperLANCellular2G,3G,4GLow Power Wide AreaNB-IoT,LTE-MRange10 m100 m1 km10 kmSource:15:KPMG analysis;16:A comparative study of LPWAN technologies for large-scale IoT deployment,Kais Mekkia,Eddy Bajica,Frederic Chaxel,Fernand Meyer,Science Direct,Mar 2019Figure 3 Comparison of different technologies 15,16FeatureSigfoxLoRaWANNB-IoTModulationBPSK(Binary Phase Shift Keying)CSS(Chirp Spread Spectrum)QPSK(Quadrature Phase Shift Keying)FrequencyUnlicensed ISM bandUnlicensed ISM bandLicensed LTE frequencyBandwidth100 Hz250 kHz and 125 kHz200 kHzMaximum data rate100 bps50 kbps200 kbpsBidirectionalLimited/Half DuplexYes/Half DuplexYes/Half DuplexMaximum messages/day140(UL),4(DL)UnlimitedUnlimitedMaximum payload length12 bytes(UL),8 bytes(DL)243 bytes1600 bytesRange10km(Urban),40km(Rural)5km(Urban),20km(Rural)1km(Urban),10km(Rural)Interference immunityVery highVery highLowAuthentication&encryptionNot supportedYes(AES 128b)Yes(LTE encryption)Adaptive data rateNoYesNoHandoverEnd-devices do not join a single base stationEnd-devices do not join a single base stationEnd-devices join a single base stationAllow private networkNoYesNo21 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Introducing NB-IoT and itspotentialbenefits6Cs of NB-IoT Coverage:large area of coverage,over 20dB higher than legacy cellulartechnologies.Extended coverage using repetition of transmissions17 Cost:low cost,low maintenance due to high battery life,ability toleverage telco towers.50onomical that Cat1/Cat4 with no upfrontinfrastructure deployment cost or no network maintenance18 Connections:up to 50,000 connections cells19 Constrained devices:well suited for battery operated applications Cybersecurity:advanced CIoT security for IP and Non-IP data delivery Customer experience:easy and hassle-free onboardingwithnoaftermarket/maintenance challengesFigure 5:Advantages of Nb-IoTBenefits of NB IoT 5 CsSources:17,18:Cellular networks for Massive IoT,Ericsson,Jan 202019:What is NB-IoT?Unlock its business potential Ericsson,accessed on Nov 1,202120:A comparative study of LPWAN technologies for large-scale IoT deployment,Kais Mekkia,Eddy Bajica,Frederic Chaxel,Fernand Meyer,Science Direct,Mar 201921:Global NB-IoT Ecosystem:Trends,Adoption and Outlook,Counterpoint Research,March 2021NB-IoTExtended long-range coverage and deep penetration Indoors and undergroundStreamlined for optimised for low power consumption Integrates into cellular systemEasy deploymentSecure and reliable industry standards based with easy onboardingReduced overall cost due to exponential adoption rate in all IoT requirementsFurthermore,NB-IoT represents a significantopportunity for mobile operators to create newrevenuestreamsbeyondthehypercompetitiveconsumersegment.Bymoving further up the value chain beyondconnectivityintoareassuchasIoTsoftware/platforms and analytics,operatorscould capture a larger share of the IoT marketand diversify across more industry sectors.As the world is transitioning towards an era ofconnected devices,one of the important goalsofmobilecommunicationsistoachievemassive connectivity.The NB-IoT systemhelps realise this goal using a very narrowbandwidth.From a customer perspective NB-IoTbasedsystemshelpmakeIoTdeployments possible in situations where it isdifficult to deploy a dedicated unlicensednetwork.Anyareawithmobilenetworkcoverage can be the breeding ground for NB-IoT.NB-IoT is less sophisticated but moresecure than traditional cellular modules thussimplifyingdesign,developmentanddeploymentforOriginalEquipmentManufacturers(OEMs).NB-IoTisstakingitsclaimastheLPWANtechnology of choice,with certain characteristicsmaking it preferable to other technologies.Keyreasons include utilising existing infrastructure,openstandardsdrivendeployment,security,integrationsynergiesandscaleformobileoperators.Key growth drivers includeWidespread mobile networks globally:There arecurrentlymorethan100liveNB-IoTnetworksglobally,and with over 100 mobile operators planningto shutdown 2G and 3G networks in the next fewyears,2G M2M migration could be a major catalyst indriving NB-IoT uptake21.Strong industry support:NB-IoT has a thrivingecosystemofmajorchipsetvendors,hardwaremanufacturers and equipment providers.More use cases:NB-IoT technology is proving itsvalue in a growing number of sectors,from smart cityand consumer applications,through to industrialmanufacturing and agriculture.High 2G module chipset costs:Chipset cost of 2Gmodules increasing as operators are shutting 2Goperations globally.22 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.3GPP NB-IoT standard provides 15%lower modem complexity v/s previous versions as part of MTC standard213GPP offers transfer rates of up to 200 kbps in the downlink and 20 kbps in the uplink22Uplink latency can be up to 10 seconds2310-yr battery life,assuming a 5 Wh battery capacity21With a promising value proposition,NB-IoT is witnessing increasing global deployments supported by a growing number of 3GPP compliant devices The cellular stakeholders require a standardised solutions to go one step further to provide cellularstandards for LPWAN networks.It is their pressure that has accelerated the evolution of 3GPPstandards relating to IoT.The potential new subscribers originated by the IoT use cases are areason behind this need for standardisation.NB-IoT is a 3GPP effort to penetrate the ultra-low cost,throughput and power,expanded coverage,and tolerant to delay IoT marketplace,which,in 5G nomenclature,is the massive Machine TypeCommunication(mMTC)use case.This use case has one of the highest number of potential IoTsubscribers(order of several billion).In addition to extended coverage and massive deploymentcapabilities listed earlier,NB-IoT offers the following capabilities as well:NB-IoT:A promising value proposition Figure 6:NB-IoT offers unmatched capabilities Extremelylow-cost deviceReduced data ratesHigh allowed latencyLow power consumptionNB-IoT:Growing number of operators and devices According to GSA,as of April 2021,165 operators are actively investing in NB-IoT technology compared to 158 in December 2020 and 156 in April 202024,25,26In terms of IoT equipment,there has been a rise in devices supporting 3GPP IoT standards by 33%compared to June 2020(518 in Apr 2021 v/s 493 in December 2020 v/s 390 in June 2020)24,25,26.120252011128191092819Deployed/launchedPlanning/pilotingEvaluatingApr-21Dec-20Apr-20362 71 371 347 63 351 298 25 254 CAT-NB1 devicesCAT-NB2 devicesCAT-M1 devicesApr-21Dec-20Apr-20OperatorsDevicesSource:18:Cellular networks for Massive IoT,Ericsson,Jan 2020;19:What is NB-IoT?Unlock its business potential Ericsson,accessed on Nov 1,2021;21:NB-IoT Deployment Guide to Basic Feature set Requirements,GSMA,June 2019;22:A comparative study of LPWAN technologies for large-scale IoT deployment,Kais Mekki,Eddy Bajic,Frederic Chaxel,Fernand Meyer,Dec 2017;23:A Systematic Analysis of Narrowband IoT Quality of Service,Andreas Philipp Matz,Jose-Angel Fernandez-Prieto,Joaquin Caada-Bago and Ulrich Birkel,Mar 2020;24:NB-IoT and LTE-M:April 2021 Member Report,GSA,Apr 2021;25:NB-IoT and LTE-M:Dec 2020 Member Report,GSA,Dec 2020,26:NB-IoT and LTE-M:April 2020 Member Report,GSA,Apr 202023 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.NB-IoT deployment in India is still at the early stages.NB-IoT in India:Early daysNB-IoT has been in India since 2018 and has the potentialto enhance adoption of IoT given its value proposition andrelevance for the India market because of its low cost,lowpower and massive device supporting capabilities.NB-IoT in India is crucial because of the bandwidthlimitations in the license-free bands in India.While someothercountrieshavenon-cellularLPWANIoTtechnologies(E.g.,LoRaWAN),the very same non cellularIoT technologies are constrained for bandwidth in India.Ina way NB-IoT is one of the first LPWAN technology inIndia that has the potential to scale to the magnitude of theIndian IoT demands.ThestatusofNB-IoTreadinessinIndiacanbesummarised below:AreaKey developmentsNB-IoTreadymobile networksIn 2018,deployments of NB-IoT network started in select cities in India which meant that mobile networkoperators had planned about rolling out NB-IoT for real.Today NB-IoT solutions have gone live in multiplecities at a considerable scale.NB-IoThardware/modulevendorsWith NB-IoT arriving rather late in India when compared to other countries around the globe,there are dozensof already developed NB-IoT modules available from every major cellular module manufacturer.Operational costThe operational/connection cost is a make-or-break factor for NB-IoT in India.However,for a cost consciousmarket like India,the prices were expected to be among the lowest globally.The possible price band of USD0.2 to USD 0.5 per device per month which would be a reasonable cost band for most IoT applications.Network coverageNetwork coverage is another major reason for fast scale up of NB-IoT and if most of the cities are covered,NB-IoT product manufacturers could be struggling to meet customer demands24 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.and is expected to drive the country to become the fastest growing market for IoT module shipmentsIndia projected to be the fastest growing market for Cellular IoT shipmentsAccording to Counterpoints Global Cellular IoT Module andChipset Forecast published in February 2021,IoT moduleshipments would cross 780 mn in 2024.The share of NB-IoTwould lead the cellular IoT module shipments followed bycellular technologies of 4G and 5G.China would continue to dominate globally in terms of volumeand value ushering growth from NB-IoT to high throughput 5GIoT networks.India,the worlds second largest mobile economy to register thehighest growth in shipments driven by large-scale roll out of NB-IoT and 4G/5G deployments in next four-five yearsSources:27:Global Cellular IoT Module and Chipset Forecast,Counterpoint Research,Feb 202113.4.4%IndiaNorth AmericaJapan38(%South-East Asia26%South KoreaChinaWestern Europe26%.4.4stern Europe18%Figure 7:Projected CAGR in cellular IoT module shipment growth 2019-2024 by key regions2725 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Organisationsin India are experimenting with the use of NB-IoT for specific applications to enhance user experienceIn October 2020,EESL invited bids for procurement of 2.35 mn smart electricity meters based on NB-IoT technology Utilities like Tata Power,Meghalaya electricity board and several other states have either adopted or are evaluating NB-IoT for digitising their automated utility bill payment,theft reduction,analytics,etc.NB-IoT has provided us with an end-to-end solution to make coolersintelligent at a market acceptable price-point.We believe that NB-IoTis the technology that will change the course of connected coolers&freezersbecause of factors such as nationwide coverage,indoorreach,cost and adoption by 5G!Harmeet Singh,Western Refrigeration,Chairman&MDWe have evaluated multiple IoT technologies for giving a connected waterpurifier experience to the consumers.It was difficult since the waterpurifiers are usually in kitchen where Wi-Fi or any other cellular technologydoesnt reach.NB-IoT looks promising because of its reach and payloadlight architecture,we shall be launching our NB-IoT connected range ofwater purifiers in the early FY23.Shashank Singh,Eureka Forbes,Vice-President,Transformation|Strategy|MarketingAir pollution monitorConnected CoolersVadodara Municipal Corporation(VMC)has deployed15,000 NB-IoT based Smart Street Lights.The Smartlights can communicate with cloud based IoT platform inreal time,enabling the corporation to manage themremotely from central command and control centre andperformoperationssuchas,on-off,dimming,faultdetection,schedule-basedoperation,andenergymonitoring.NB-IoThashelpedinachievingenergysavings and increasing safety.The network installationand maintenance cost have become zero.One of the leading Indian engineering institute and Ericssonsigned a memorandum of understanding(MoU)in 2019 todeployanNB-IoT-basedsensornetwork,namedIndiagyu76,to monitor air pollution in Delhi.As per the deal,Ericsson will be using locally developed air quality sensorsthat can share environmental data including PM1,PM2.5,and PM10 levels at specified time intervals.This will help inbettermonitoring and analysis of data collected fromdifferent parts of the capital.Periodically,the findings will beshared with local authorities and other key stakeholders.Western Refrigeration has been working on connectedcoolers for a while now,however due to lack of a reliable&omnipresent technology&high cost,connected coolers asa concept couldnt be productionised.With the advent ofNB-IoT,they were able to deliver the complete solution&help to monitor location,temperature and power cycles.Moreover,the door sensor-based analytics will help theircustomers to track inventory,sales,monitor usage patternenabling them to increase sales.Smart Cities-Intelligent LightingEESLPower utility26 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Not only in India,globally there has been a buzz about NB IoT that has translated into many use cases across industriesOperator:African operatorIn 2017,the operator launched an NB-IoT-enabled commercial network in South Africa with an average of 55,000 new connections per month to enhance sim security,licensed spectrum usage,and scalability.Operator:US operatorIn 2019,the operator launched its NB-IoT network in USA.The company has collaborated with chipset and module manufacturers to build devices for its NB-IoT-enabled network.This would help its enterprise customers to launch NB-IoT solutions in the market.Operator:US operatorIn July 2018,the operator launched its NB-IoT services and NB-IoT enabled guard bands across USA for increased efficiency,high device connectivity at a low device cost,long battery life,and less power usage.Operator:Greek operatorIn 2018,a telecom OEM completed deploying NB-IoT clusters in the Greek operators 4G network to support the emerging use cases of massive Machine Type Communications(mMTC).The OEM has also upgraded the operators LTE network through NB-IoT-enabled technology.Operator:Singapore operatorIn 2018,a telecom OEM and a Singapore telecom operator collaborated to roll out one of the first commercially available CIoT networks which supports both Cat-M1 and NB-IoT devices in Singapore.Operator:Middle east Asian operatorIn 2018,a middle east operator collaborated with a telecom OEM to expand their 4G network in a middle east Asian country nationwide which included LTE Advanced and NB-IoT in its Radio Access Network.NB-IoT Connectivity over SatelliteIn 2020,a NB-IoT network-based satellite communication vendor teamed up with an Asian semiconductor company to bring 5G-ready NB-IoT connectivity through satellite.The firms would work to create and deploy CIoT chipsets that use standardised,5G-ready,NB-IoT protocol and connected via geo-stationary satellitesPartnership for satellite capacityA NB-IoT network-based satellite communication vendor and British satellite telecom company partnered in June 2021 to enable a commercial NB-IoT over satellite solution.The telecom company could offer this satellite capacity backbone to deliver its IoT solutions.NB-IoT enabled Smoke or Gas Detector An Asian telecom operator planned to deploy 170,000 NB-IoT connected smoke detection and alarm devices in rental homes in their province in 2019 by collaborating with different IoT partners.The units could monitor the smoke levels and send data to a backend platform about smoke levels,power usage,and network signal strength.Smart Cities A European operator developed PAC(parking area control),a small NB-IoT parking sensor.The operator used a telecom OEMs platform which simplifies the business and integrates the problems associated with IoT projects.This autonomous PAC might be installed partially or entirely underneath the ground and connects directly to the operators cloud.Water TelemetryAn American multinational technology conglomerate signed an MOU with a European multinational telecommunications and mass media company in collaboration with a water management solutions provider where they developed proof of water telemetry concept by exploring the IoT services provided by the conglomerate including NB-IoT.Smart Farming ServiceA European communication provider and a European company that develops and delivers rugged condition monitoring systems have collaborated to launch a NB-IoT enabled farming service,which provides farmers with a smart irrigation systems monitoring systems.27 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Need for end-to-end approach across NB-IoT value chainHardware/Edge SystemsConnectivityIoT PlatformsSystem IntegrationField care and deploymentNB-IoT requires simple design and low-cost hardware hence it can be deployed at a rapid pace and at minimal expenses.The three core components of any NB-IoT hardware system are(1)chipsets,(2)modules and(3)devices.Edge processing and north-bound communication are other critical components that complete the device.Standardised stacks for IPDD and NIDD communication,device management and FOTA make development fast and reliable.NB-IoT devices require connectivity-as-a-service to function.It enables IoT product to seamlessly establish a connection to the cloud and ensure an uninterrupted flow of data with appropriate actions.IoT connectivity enablement is a multi-stakeholder ecosystem that includes eNodeB equipment,service providers and SCEF gateway providers for NIDD.IoT platforms integrated with SCEF(NIDD)enables organisations to efficiently manage billions of devices by reducing compute cost.Platforms ensure connectivity between endpoints,gateways,apps,and services.It connects device sensors with the data network and enables application development,data collection and secure connectivityNB-IoT devices when deployed enjoys the benefits of certain factors such as Zero Touch Provisioning,embedded SIMs,FOTA and remote diagnostics that gives this technology an upper hand over the conventional devices.System integration is required to make the different cogs of the IoT ecosystem work together e.g.,IoT services,IoT applications,IoT developer services and field installations,commissioning and maintenance IoT strategyIoT Program Governance28 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.NB-IoT in India:Outlook and road ahead2829 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Significant opportunity for application of NB-IoT in large scale programs to enhance efficiency and quality of service delivery NB-IoT:Made for India?India is on the cusp of a digitalrevolutiongiventheemergingtechnologyecosystemandthegrowing internet penetration whichhasacceleratedtheadoptionofdigital transformation amongst userindustriesforwhomthesetechnologies bring significant valuepropositionthroughenhancedcustomerexperience,operationalefficiency and/or lower costs.In a post COVID world,to ensurethatthedigitaltransformationmomentumismaintained,itisimperative for service providers toquickly adapt and scale up theirsolution offerings relevant for theIndian milieu.This is necessary toensurethatusersprioritisetheadoption of a tested value promisingtechnology as they begin their capexcycletowardsavaluedriveninvestment.Forenterprises,NB-IoToffersagamechangingapproachinmanaging their value chain to bringforthanopen,transparentandefficiencydrivenoperatingenvironment for many stakeholdersincludingcustomers,vendors,shareholdersandemployeesbesides others.Forthegovernment,thetimelyconduct and rollout of 5G auctionsbesides defining the standards fordata safety and privacy is imperativeto ensure that the benefits offered byNB-IoT is realised to its full potential.The pace of adoption of NB-IoT canbe further accelerated by the keyinitiatives currently being planned bythegovernmenttoenhanceefficiency and national well being.Smart Meter National ProgramExhibit:Key initiatives in India and relevance of NB-IoT in these initiatives The program envisages installation of 25 crore smart meters by 202528.Given the available opportunity,adoption of NB-IoT enabled smart meters can enhance power consumption tracking hence win-win situation for all stakeholders Source:28:EESL annual report 2019-2029:National Smart Meter Dashboard at https:/smnp.eeslindia.org/accessed on 7 Feb 2022.INR 301 per month per meterTotal increase in DISCOMs revenue per month per meter under National Smart Meter Program29Smart Meter National ProgramThe Mission envisages provision of potable water through taps to all Indian households by 2024.The adoption of NB-IoT based water tracking and monitoring(quality and quantity)across the value chain can enable achieving the twin objective of network water connectivity across the country Street Lighting National ProgramThe program envisages replacing conventional streetlights with smart and efficient LED streetlights across India.The adoption of NB-IoT based sensing/monitoring and controlling of lights systems can further enhance savings for municipalities Smart City MissionThe program envisions transforming all Indian cities into smart cities by leveraging technology and encouraging local area development.The use of NB-IoT based solutions can enable timely monitoring and tracking of citizen service delivery and monitoring asset condition anytime anywhere30 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.However,concerns pertaining to data security and privacy is a challenge,which the industry needs to addressIoT:Data security and privacy challenges to be addressedIoT brings in a new dimension to informationand data security.As the internet meets thephysical world,it also brings challenges inensuring that the sensors and edge devicesdo not become theprimary threat toolor gethijacked;the captured information is used andstoredsecurely,andprivacyrightsarerespected while collecting and using data.The rapid emergence of diverse technologyapplications and their vulnerability to externalattacks(as they are designed for speed oversecurity with limited filters on data integrity)increases the risk of unwanted data flows intothesystem.WhileIoTendpointsandgatewaysmaybededicatedtospecificservices,IoT systems could frequently shareresources with a variety of unrelated systemsand applications.Given the complexity of different networks,protocols,operating systems and differentmanufacturers with each designed to handledifferent types of risks,there are a variety ofsecurity and privacy challenges associatedwith implementing any IoT system.Data portabilityConsumers face the risk of being locked-in with specificIoT service provider hindering data portability flexibilityAlong with telecom grade security and with introduction of NIDD,key security and privacy risks across the IoT ecosystem are addressed by NB-IoT Data rightsIoT uses data from different sources and objects;henceownershipandexerciseofdatasubjectrightsarecomplex for the stakeholdersComplianceData collection,processing,interpretation and applicationtakes place in different jurisdictions with varied rules andregulationsAuthenticationInsteadofweakpasswords,weneedmulti-factorauthentication with digital certificates to mitigate accesscontrol risksDevice management IoT service providers need to enhance capabilities forend-to end device management as owners may nothave those capabilitiesNotificationLeads to user inability to acquaint concerned individualstoprovidemeaningfulconsentforprocessingtheirpersonal identifiable informationEncryptionEncryption protocols and a centralised key managementsolution need to be engineered for efficient,scalable andcompatible deploymentsSecurity upgradesConsidering the volume and nature of integration in theIoT world,regularly upgrading security patches is achallenge31 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Foundation for Indian NB-IoT regulation has been laid down by the National Telecom M2M roadmapNB-IoT regulatory outlook in IndiaM2M is one of the key components of the evolving IoTrevolution.M2M connections form part of the IoT,alongwith cloud computing,big data analytics,and sensorsand actuators that in combination can run intelligentsystems and autonomous machines.NB IoT has beendesigned for cellular M2M communications and henceM2M regulations play an important part in NB IoTdeployments.The Department of Telecom(DoT)of India publishedtheNational Telecom M2M Roadmapin May 2015post seeking inputs from certain industry stakeholders.The roadmap focuses on M2M communication aspectswith the aim to have interoperable standards,policiesand regulations suited for Indian conditions acrossmultiple sectors.Two level committees have been formed by DoT toaddress policy and regulatory issues towards M2Mnetwork communication aspects.First is a high levelPolicy and Regulatory Committee formed with DoTrepresentatives.ThiscommitteeaimstooutlineGovernmentsidepolicyandregulatoryaspects.Second is an Industry level Consultative Committeewhich has been constituted to outline draft policy takingindustry view into consideration.Following issues andactionable pointswere identified for considerationtowards M2M Policy:Adoption of standards,in line with global standards,for M2M networksSpectrum allocation for M2M local area networklayerAccommodationofM2Mnumberingneedsbyrevisiting National Numbering PlanEnsuringAlwaysonrequirementsviz.Inter-Network Mobility and Inter-Operator RoamingAddressing data protection and privacyAddressing customer traceability issues and KYC(Know Your Customer)normsAddressing security and lawful interception for M2MconnectionsHaving policy around customers ethical issuesCoordination with relevant global organisations32 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Sector specific use cases and requirements released by Telecom Engineering Centre(TEC)help identify future action points for M2M applicationsM2Mserviceproviders(MSP)are likely to havedifferentbusinesses.Inopensettlementprotocol(OSP)services,theendusersusetheirownSIM/telephoneconnectionto use the offered servicesliketelebanking,etc.,whereasinmostoftheM2Mservices,internetconnectionorindividualSIMs are used exclusivelyfor such services i.e.,SIMfittedvehicle.InOSPservices,ownership of SIMnormally is with the end-user of services,whereas inM2M services,ownership iswith MSP(in most cases).Hence,it would be judiciousto have a separate categoryofregistrationtohaveoversight over MSP usingtelecomresourcesfromauthorised telecom serviceproviders.All M2M serviceprovidersutilisingTSPstelecomfacilitiesshouldhave MSP registration toaddress different concernslikeinterfaceissueswithKYC,security,telecomserviceproviderandencryption(forlawfulinterception purposes at thetelecomserviceproviderlevel)Inaddition,TelecomEngineering Centre(TEC)of DoT has also come outwith nine technical reports30in 2015 on M2M detailingsectorspecificrequirements/use cases tocarry out gap analysis andfutureactionplanswithpossible models of servicedeliverywithadditionaltechnical reports releasedtime to time.Figure 7:Sector specific use cases defined by TEC M2M enablement in the automotive sector(May 2015)36M2M enablement in remote health management(May 2015)37M2M enablement in safety and surveillance systems(May 2015)38Code of practice for securing consumer IoT(August 2021)31Emerging communication technologies in IoT domain(Nov 2021)39IoT/ICT enablement in smart village and agriculture(March 2021)32Design and planning smart cities with IoT/ICT(January 2019)33M2M/IoT enablement in smart Homes(March 2017)34M2M enablement in the power sector(May 2015)35Source:30:TEC M2M/IoT technical reports accessed on 7 Feb 2022 31:Code of practice for securing consumer IoT,Telecommunication Engineering Center,Aug 2021;32:IoT/ICT enablement in Smart village and agriculture,Telecommunication Engineering Center,Mar 2021;33 Design and planning Smart cities with IoT/ICT,Telecommunication Engineering Center,Jan 2019;34 M2M/IoT enablement in Smart Homes,Telecommunication Engineering Center,Mar 2017;35 M2M enablement in the power sector,Telecommunication Engineering Center,May 2015;36 M2M enablement in the Automotive sector,Telecommunication Engineering Center,May 2015;37 M2M enablement in remote health management,Telecommunication Engineering Center,May 2015;38 M2M enablement in safety&surveillance systems,Telecommunication Engineering Center,May 2015;39 Emerging communication technologies in IoT domain,Telecommunication Engineering Center,Nov 2021;M2M service provider registration with DOT33 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Conclusion:An opportune moment3334 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.NB-IoT is an exciting Made for India technology.As the dream of Digital India takes shape,this technology could play a key role across the spectrum of B2B,B2C and Government/public services34 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.As India begins a capex cycle,NB-IoT is attractively positioned at the core35 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.With India beginning its capex cycle,NB-IoT is positioned at its core to address the varied needs of the various user segments NB-IoT:Addresses the needs across the user spectrumIoTs diverse applicability along with lowering device costsmakes it an attractive technology option for serving the painpoints and issues faced by a variety of users acrosssegments.While users have tested and realised the benefits of usingthe NB-IoT technology within their respective domain,Indiais yet to witness widespread applicability and rollout.While the implementation of 5G is likely to further boost NB-IoT business case,the impact may differ significantly acrosssectors/usersegmentsgiventherolloutofcompetingtechnologies such as cloud,blockchain etc.,which wouldcomplement IoT either due to a stronger business case andincreased security.The Digital India initiative coupled with the enhancingtechnology infrastructure,and adequately supported byforward looking production linked incentives of INR 53 billionin the Indian Union Budget 2022,NB-IoT has the potential todeliver the promised value proposition by addressing all theweaknesses of existing IoT implementations and meetingthe unique requirements of the three broad level usersegments i.e.,B2B,B2C and Government.End to end value chain tracking and real-time SLA review and improvements right fromprocurement to customer deliveryEnables organisations to enhance their customer interface and experience with limited additionalphysical contactEnables earlyidentification of errors/issuesvia proactive alertsand hence avoiding anysupply/service disruptionsProvides additional insights on performance across key parameters and ability to identify issuesmore proactively than other technologiesCustomer touchpoint channel to enhance revenues(point of sale)Monitor customer experience/product performance and provide real-time assistance to recommendcourse of actionGet real-time customer feedback and identify areas of improvements at the earliestEnhances situational awareness and/or choices for the customer for taking necessary decisionCustomer convenience andintelligence companionMonitor service delivery for citizens/general publicTrack resource movement and leakages if any and recommend/trigger action without waiting forincoming data/reportsRemote monitoring enables keeping an audit trail of activities/events to enable decision makingAbility to integrate with existing infrastructure hence avoids need for additional investments36 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.About JioThingsJio Things Limited,a subsidiary of Jio Platform Limited,is an ultimate IoTdestination for B2B,B2C and government IoT needs.With digitaltransformation at heart,JioThings has built a prodigious IoT portfoliousing bleeding edge technologies,hyper-scalable IoT platform anddistributed computing on edge and cloud.Why JioThings?The Internet of Things(IoT)was complex a lot of suppliers providingdifferent components,inevitably making it difficult to implement,verydifficult to manage and extremely difficult to afford!With the advent ofJioThings,all these problems have become a matter of past!JioThingsdeliversmarket proven C2C(Chipset-2-Cloud)solutions to enableorganisations drive digital transformation!JioThings is one of the worldsfirst organisation that provides,hardware,connectivity,cloud platforms,portals,installation,and aftermarket services all under single roof!JioThings brings infinite value at an unbelievably economical cost platformto individuals and organisations to achieve sustainable growth,reduceoperational expenditure,increase efficiency,boost safety,and make bothliving and working easy!JioThingsoffersIoTsolutionsinindustrieslikeUtilities,Lighting,Transportation and logistics,Manufacturing,Smart cities,Smart spaces,Health,Agriculture and others.About KPMG in IndiaKPMG entities in India are professional services firm(s).These Indianmember firms are affiliated with KPMG International Limited.KPMGwas established in India in August 1993.Our professionals leveragethe global network of firms,and are conversant with local laws,regulations,markets and competition.KPMG has offices across IndiainAhmedabad,Bengaluru,Chandigarh,Chennai,Gurugram,Hyderabad,Jaipur,Kochi,Kolkata,Mumbai,Noida,Pune,Vadodaraand Vijayawada.KPMG entities in India offer services to national and internationalclientsinIndiaacrosssectors.Westrivetoproviderapid,performance-based,industry-focusedandtechnology-enabledservices,which reflect a shared knowledge of global and localindustries and our experience of the Indian business environment.37 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.AcknowledgementsContentChaitanya GogineniDipayan GhoshArghyapriya ChoudhuriManika SaxenaAnand Bhandari(JioThings)Swapnil Khandave(JioThings)Ritu Mandal(JioThings)Ranjit Ma Kumar(JioThings)Gulprit Singh(JioThings)37 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.External sources of referenceNarrowband Internet of Things(NB-IoT),GSMA accessed on 20 Dec 2021Standardisation of NB-IOT completed,3GPP accessed on 20 Dec 2021Narrowband IoT,3GPP accessed on 21 Dec 2021Standards for the IoT,3GPP,accessed on 21 Dec 2021Brand and ComplianceNisha FernandesRaahul GautamRahil UppalShveta Pednekar38 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.home.kpmg/in/socialmediaThe information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.The information presented is only informative and does not promote or defame any product or company.Although we endeavour to provide accurate and timely information,there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.The views and opinions expressed herein are those quoted third parties and do not necessarily represent the views and opinions of KPMG in India.KPMG Assurance and Consulting Services LLP,Lodha Excelus,Apollo Mills Compound,NM Joshi Marg,Mahalaxmi,Mumbai-400 011 Phone: 91 22 3989 6000,Fax: 91 22 3983 6000.2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.This document is for e-communication only.home.kpmg/inKPMG in Indiacontacts:JioThings contacts:https:/Akhilesh TutejaPartner and National HeadTelecom,Media and Technology SectorE:Chaitanya GogineniPartnerBusiness ConsultingE:Dipayan GhoshAssociate PartnerTelecom,Media and Technology SectorE:Anand Bhandari Vertical HeadNB-IoT,Smart Assts&Smart Utilities E:Anand1.BSwapnil Khandave Technology Head NB-IoT,Smart Assts&Smart Utilities E:Swapnil.KRitu Mandal Business Manager IoT Business Consulting E:Ritu.M, Quarterly review N6 2022HOW ORGANIZATIONS EMPOWER TALENTNURTURING THEWork is no more what it traditionally has been.Employees,offices,business,none of it is tethered to a single location.Employee experience is now front and center.And freedom and empowerment of employees is top of mind for every business leader.The content and design of this issue reflect this new empowered workplace of the tomorrow-one where the future of work is not bound by closed environments but allowed to blossom and flourish in the open.2Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower Talent3Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentForewordWith over 350,000 employees around the world,Capgemini is,first and foremost,a people company.In light of this,the future of work the theme of this 6th edition of our quarterly journal Conversations for Tomorrow is naturally close to our heart.The pandemic has reshaped the future of work:Today,millennials and Gen Z dominate the global workforce,demanding better growth opportunities;a flexible,inclusive workplace;meaningful roles and organizational purpose;and a deeper feeling of belonging to their organizations.The employer-employee relationship has evidently changed,and leadership styles need to adapt accordingly.Organizations are fundamentally rethinking how they use their office space.The discussion today is far-reaching;rather than debating the merits of cubicles versus open offices,leaders are re-examining the very nature and role of the physical office in a hybrid work environment.In this edition,we look at how organizations can successfully implement the transformations necessary to thrive in the future of work.We evaluate strategies such as refining and strengthening purpose;empowering talent;nurturing future skills;and instilling a trust-based culture.There are many questions spinning around the future of work,and,as we seek to provide answers,we are grateful to all the leaders and experts who contributed their thoughts to this journal.Our contributors come from the worlds of economics,business,academia,sports,and include:A Nobel Laureate in Economics The CEOs of Schneider Electric and Capgemini The European Commissioner for Jobs and Social Rights CHROs and senior executives from HSBC,Ericsson,Stellantis,ANZ,Microsoft,LinkedIn,and Girls Who Code Academics and experts from the Harvard Business School and the OECD A Rugby World Cup winner Plus,an array of Capgeminis own subject-matter expertsBy bringing together key insights from leaders in their respective fields,we aim to help chart a clear course to the future of work that we can all follow.3ContentsP.14P.14THE CEO CORNERP.28P.28INSIDE THE MIND OF A NOBEL PRIZE LAUREATEP.14Jean-Pascal Tricoire Chief Executive Officer,Schneider ElectricP.14 Aiman EzzatChief Executive Officer,Capgemini P.28Sir Christopher PissaridesNobel Prize winner,Economics,20104Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentP.40P.40EXECUTIVE CONVERSATIONS WITHP.42Elaine ArdenChief Human Resources Officer,HSBCP.52 MajBritt ArfertSVP&Chief People Officer,Ericsson P.62 Xavier ChreauChief Human Resources Officer,StellantisP.72 Amy EdmondsonNovartis Professor of Leadership and Management,Harvard Business SchoolP.82 Nicolas SchmitEuropean Commissioner for Jobs and Social RightsP.94Kathryn van der Merwe Group Executive Talent,Culture and Service centers,ANZ P.104Jared Spataro Corporate VP of Modern Work&Business Applications,Microsoft P.114Dr.Tarika Barrett Chief Executive Officer,Girls Who CodeP.124Josh BersinIndustry analyst5Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentP.134P.134LEADERSHIP LESSONS FROM THE RUGBY PITCHP.134Stacey FluhlerNew Zealand Rugby Union InternationalContentsP.170P.170PERSPECTIVES FROM CAPGEMINIREIMAGINING THE PEOPLE EXPERIENCE:THE ROLE OF HRP.172Stephan PaoliniGlobal Head of Intelligent People Operations,Capgemini Business Services,andClaudia CrummenerlManaging Director,Global Practice Lead of Workforce and Organization,Capgemini InventP.146P.146FROM THE DESK OFP.148Sue DukeGlobal Head of Public Policy and Economic Graph,LinkedInP.158Stijn BroeckeSenior Economist,OECD 6 6Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentBUILDING A FUTURE-READY TALENT ORGANIZATIONP.182Anne LebelGroup Chief Human Resources Officer,Capgemini,Natalie Hugues JacqueminGroup Head Talent and Learning Officer,Capgemini,andPallavi TyagiEVP and Group Head-People Experience Design and Future of Work Expertise Hub,CapgeminiTECH WORK:A KEY ENABLER OF THE AMAZING PEOPLE EXPERIENCEP.192 Jon HarrimanVice President,Employee Experiences,Capgemini Group Portfolio,andAlan Connolly Global Head of Employee Experience Portfolio,Cloud Infrastructure Services,CapgeminiUNLOCKING WORKFORCE POTENTIAL THROUGH DIVERSITY AND INCLUSIONP.202Shobha MeeraChief CSR Officer,Member of Group Executive Committee,CapgeminiP.212P.212INSIGHTS FROM THE CAPGEMINI RESEARCH INSTITUTEP.212 People Experience How companies can make life better for their most important assets7 7Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentExecutive Summary8Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentExecutive SummaryOver the past few years,our relationship with work has changed forever.Driven by the healthcare imperative,remote working has brought flexibility but also a host of new challenges.Many of todays employees are,to some degree,unsatisfied or unhappy with their experience at work.Even more worryingly,their managers are often unaware of this:in our research,92%of leaders say their employees are happy at work,while only 30%of individual contributors and 65%of managers agree.Redesigning work around the employee Many organizations are structuring working life and the work environment around their employees,to an unprecedented degree.How do they want to upskill?What level of autonomy would they prefer?How do we ensure that their work is meaningful?How do they want to see their careers develop?And how much flexibility do they need in their work life?Josh Bersin,industry analyst,comments:The smartest organizations are redesigning jobs and working environments around employees,making well-being,skills,and culture core to business design.Executive Summary9Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentThe smartest organizations are redesigning jobs and working environments around employees.Josh Bersin,Industry Analyst92%OF LEADERS SAY THEIR EMPLOYEES ARE HAPPY AT WORK,WHILE ONLY 30%OF INDIVIDUAL CONTRIBUTORS AND 65%OF MANAGERS AGREE.Employees want to be in the driving seat,deciding how their work lives are structured and how they will deliver outcomes.Jean-Pascal Tricoire,CEO at Schneider Electric,sees the new working structure as supporting this:Hybrid work could be the best way to customize working environments for every personal circumstance and career or life stage.It all boils down to delivering an exceptional employee experience,confirms Kathryn van der Merwe,Group Executive Talent&Culture and Service Centers at ANZ:We are committed to three core behaviors:create opportunities,deliver what matters,and succeed together while working in a hybrid,flexible manner.Leading with trustTrust between leaders and employees is paramount.As Josh Bersin puts it:The first thing people want from their employers is a sense of trust and belonging the ability to be themselves at work and to have open conversations and relationships with peers,without any fear of negative consequences.Executive Summary10Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentThe rules of engagement have changed,and leadership styles need to adapt accordingly.In the hybrid world of work,successful leaders need to be more empathetic;be willing to grant autonomy to different teams;encourage dissenting views;and be prepared to let go of outdated values.Elaine Arden,Chief Human Resources Officer,HSBC,concurs:Were moving away from traditional targets,like days spent in the office;productivity should be measured in terms of customer outcomes,team cohesion,and social capital.When it comes to teaming and collaboration,Stacey Fluhler,a member of New Zealands national rugby union side,one of the most successful sports teams in the world,emphasizes the importance of honesty and candor:Our success is based on honest discussions-and,when necessary,tough conversations.Beware of productivity theater The new hybrid environment has brought new challenges.Jared Spataro,Corporate Vice President,Modern Work&Business Applications at Microsoft,points out the pitfalls of hybrid working:Employees want to be seen to be productive,and this can lead toproductivity theater:attending meetings in order to be seen,making sure they chip in from time to time,but really their attention is on something outside the meeting.I can envision a future society where theres simply no unskilled work.Sir Christopher Pissarides Executive Summary11Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentAmy Edmondson,Novartis Professor of Leadership and Management at Harvard Business School,underlines another major challenge:the negative impact of hybrid working on collaboration.The shift to remote working has caused the share of time employees spend in collaborative cross-group connections to drop by about 25%compared with the pre-pandemic level,Edmondson explains.Making the workplace fit for purposeSome organizations are already taking drastic measures to address this issue,rebranding their workspace as collaboration zones:We are evolving our workspaces with 25%of space for individual desks and 75%for creative and collaborative work.If you come back on site,it should not be just to sit behind your laptop,but to interact with your colleagues,feed off each others energy,and brainstorm solutions dynamically,in a way that is difficult to achieve online,says Xavier Chreau,Chief Human Resources and Transformation Officer,Stellantis.Employees want to be seen to be productive,and this can lead to productivity theater.Jared Spataro,Corporate Vice President,Modern Work at MicrosoftTechnology is at the core of hybrid working and the redesigned employee experience.As Jon Harriman and Alan Connolly from Capgemini argue in this edition:Organizations that use technology as an empowering element and offer employees the right tools improve their employees ability to perform their jobs and help them to derive greater satisfaction from doing so.Non-traditional talent and upskilling There are an estimated 700,000 to1 million digital-skills vacancies in Europe.This points to a shortage of desired talent and highlights how crucial aspects of organizational culture such as recruitment methods,talent retention,and employee development are to building a capable workforce.It all starts with recruitment.According to Nobel Prize Laureate Sir Christopher Pissarides:Organizations have to get better at evaluating candidates based not just on their professional experience to date,but also on their characteristics,related skills,and ability to learn.Organizations are becoming more open to non-traditional recruitment techniques.Capgeminis CEO Aiman Ezzat says:Organizations need to be on the lookout for talent,even in non-typical environments.In Brazil,we are upskilling Uber drivers to join Capgemini as junior associates.Executive Summary12Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentUpskilling is a necessary process to empower employees to reposition themselves as automation gains traction across sectors.Sir Christopher Pissarides clarifies the outlook:I can envision a future society where theres simply no unskilled work.Upskilling is near the top of the agendas of many large organizations.Xavier Chreau,Stellantis,agrees:We have to recruit the right talent for all divisions especially R&D if we want to reinforce the new primacy of our software-based strategy.We launched an electric academy in early 2022 to upskill the entire Stellantis sales workforce around electric vehicles EVs by 2025.Companies are using in-house employment marketplace tools to facilitate internal mobility and better prepare managers to act as career coaches and advisors.HSBCs Elaine Arden comments:We have an internal talent marketplace that 140,000 employees use.Its a game-changer:connecting talent and skills,at scale,across the business.It empowers people and democratizes access to work by disrupting traditional internal hierarchies and breaking down silos.It starts with the education system,as Nicolas Schmit,European Commissioner for Jobs and Social Rights,points out:Our education systems have to be more innovative and give people more capacity to learn.Automation improves quality of working lifeKathryn van der Merwe at ANZ highlights the benefits of automation for the workforce:Automation is creating new roles as we navigate new systems in cloud,data,process automation,Organizations need to be on the lookout for talent,even in non-typical environments.In Brazil,we are upskilling Uber drivers to join Capgemini as junior associates.Aiman Ezzat,CEO,CapgeminiExecutive Summary13Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower Talentreport positively on inclusive workplace practices than are women(25%)in the tech environment.Sue Duke,Global Head of Public Policy and Economic Graph at LinkedIn,agrees about under-representation of women in leadership.She argues that organizations should be providing more flexibility to women to build diversity at all levels;as she points out:Women are 24%more likely than men to apply for remote roles.robotics,etc.But is also impacts more broadly improvements to engagement and enjoyment of work.Although some low-skilled jobs are permanently automated,many new roles have emerged.Nicolas Schmit believes that many fears about automation were misplaced:Everybody feared automation,robotization,the idea of a jobless economy.It is true that a lot of traditional roles are disappearing;but it is also true that there are more jobs in todays economy than ever before and a lot of these are more interesting,highly skilled and strategic roles.Fostering diversity and inclusivity Xavier Chreau at Stellantis explains why diversity is good for business:We have many different types of customers,so it makes sense to draw on as many different viewpoints as possible from within the organization.Organizations are taking positive action to improve diversity,starting with leadership roles.MajBritt Arfert,SVP and Chief People Officer at Ericsson,highlights how this organization has put in place long-term incentives for management to drive change:We have linked our long-term variable-pay program for our executives to increasing the percentage of women in line-manager positions.Dr.Tarika Barrett,CEO of Girls Who Code,believes there is still much work required to arrive at an acceptable level of inclusivity in the workplace:There is a disconnect between organizations perceptions of the level of inclusivity they are offering and that which is experienced by young women in the workforce.HR leaders are almost twice as likely(45%)to We have linked our long-term variable-pay program for our executives to increasing the percentage of women in line-manager positions.MajBritt Arfert,SVP and Chief People Officer at EricssonThe CEO CornerJean-Pascal Tricoire Chief Executive Officer,Schneider ElectricAiman Ezzat Chief Executive Officer,Capgeminiin discussion with The CEO Corner14Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower Talent15Capgemini Research InstituteBreathe In(novation)Uncover Innovations that MatterJean-Pascal Tricoire has been Chairman and CEO of Schneider Electric since 2013.Over his 35-year career at Schneider Electric,Jean-Pascal has held diverse positions in France,Italy,China,South Africa,and the US,and is currently based in Hong Kong.He is a director on the worldwide Board of the UN Global Compact,a UN#HeForShe Corporate IMPACT champion,and a Member of the International Business Council of the World Economic Forum.Jean-Pascal also sits on the Global CEO Council of Chinas Premier Li Keqiang and the Advisory Board of the mayors of Beijing and Shanghai.Schneider Electric,a global leader in energy management and industry automation,develops related technologies and solutions for electricity distribution.The company also offers energy and sustainability,automation,cloud,and consulting and training services.With a global presence in over 100 countries,Schneider enables the digital transformation of energy management and automation in homes,buildings,data centers,infrastructure,and industries.Schneiders revenues in 2021 amounted to 28.9 billion euros,with over 128,000 employees.Jean-Pascal Tricoire Chief Executive Officer,Schneider ElectricAiman Ezzat Chief Executive Officer,CapgeminiWith more than 20 years experience at Capgemini,Aiman Ezzat has a deep knowledge of the Groups main businesses.He has worked in many countries,notably the UK and the US,where he lived for more than 15 years.Aiman was appointed CEO in May 2020;prior to that,from 2018 to 2020,he served as the Groups COO and,from 2012 to 2018,as CFO.Aiman is also on the Board of Directors of Air Liquide and is a Member of the International Business Council of the World Economic Forum.Capgemini is a global leader in partnering with companies to transform and manage their business by harnessing the power of technology.Capgemini is a responsible and diverse organization of over 340,000 team members in more than 50 countries.With its strong 55-year heritage and deep industry expertise,Capgemini is trusted by its clients to address the entire breadth of their business needs,from strategy and design to operations.The Group reported in 2021 global revenues of 18 billion.The Capgemini Research Institute spoke to Jean-Pascal and Aiman to understand their views on the future of hybrid work,and to ask them how organizations can create value through sustainability and deliver outcomes by combining servitization with digitalization.The CEO Corner16Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower Talent16MAKING HYBRID WORK ENGAGINGHybrid working has been a Schneider Electric policy for around two years now.What are the lessons you have learned during this period?Jean-Pascal:Hybrid isnt new to us;we were in a hybrid environment even before the pandemic.Over the past three years,weve learned that you need to be very flexible in your relationship with employees.People have shown that they can work efficiently away from the office,thanks in part to the technologies that enable this.However,the preference around working location is an individual choice,although weve seen that both culture and geography impacts it.Some are very eager to go back to the office,others struggle with the concept of returning.We also learned that our multi-hub model,with four regional hubs in North America,Europe,China,and India,is a strength of hybrid working.It allows individuals to take up global roles close to their families or,if they prefer,experience new parts of the world as they move from role to role.The conclusion is that for any company,you need to be flexible with employees to work as it is most suitable for them.The CEO Corner17Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower Talent17How do you see hybrid working evolving in the next few years?Jean-Pascal:The future of hybrid work will be about mass customization,allowing every employee to customize working environments to their personal circumstances,career,or life stage.All of us have learned to work remotely,and as a result the processes of our companies have adapted to make way for it.We,however,need to have a hybrid work model which includes relevant time spent together,but is also open to those personal preferences.Returning to offices will be largely determined by function and geography;however,there are some instances where we need to be together.Being in the office is particularly important for new recruits and employees near the beginning of their careers as it provides a place for them to learn about organizational culture,which can be challenging to understand remotely.By extension,experienced colleagues need to be present to train and mentor younger employees.Such interaction is crucial to fostering loyalty to the company and coaching future leaders.Aiman:Hybrid working is here to stay.At Capgemini,we have introduced team rituals and adapted leadership and management practices to the new work environment.Encouraging the development of attributes such as authenticity,emotional intelligence,openness to change,and the ability to create a culture of trust in which employees feel empowered will be key to a functioning hybrid workplace.Technological advancements and organizational efforts to improve employee experience will make hybrid work more engaging.The ability to create a culture of trust in which employees feel empowered will be key.Aiman Ezzat The CEO Corner18Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentWhat do you think are the root causes of theGreat Resignation,and what can organizations do to combat high quitting rates?Jean-Pascal:During the pandemic,a backlog of resignations built up,so this might have distorted the rates a little.Moreover,the pandemic brought a whole slew of environmental factors to bear on work-related decisions.People began to question whether they needed or wanted to live in an urban environment or whether they should be nearer family.Theyve also been questioning whether they are on the career path that is right for them.So,its not all down to what organizations are doing or not doing;in part,its down to the fact that people have had more time and space to reflect.The barriers to Gen-Zs quitting,in particular,are low,as they havent had time to build a strong relationship with their organizations or colleagues.They are generally more flexible in terms of office-based work,usually being free from family constraints.Nonetheless,the workplace experience can be challenging for younger people as they leave university and cohorts of people in their age range join organizations and have to work with people from different generations.Organizations must ensure they offer inclusiveness and a welcoming workplace by assigning the right mentors.The younger generation also expects to work in companies that prioritize sustainability and digitization,as well as flexibility and inclusion.Jean-Pascal Tricoire Hybrid work will be about mass customization,allowing every employee to customize working environments for their personal circumstance,career or life stage.Aiman Ezzat The Great Resignation is an opportunity to bring in new talent.The CEO Corner19Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentFrancesco Starace Aiman:TheGreat Resignationis not a crisis but a new reality and an opportunity to bring in new talent.In spite of a very challenging environment and increased attrition,we increased our workforce by 50,000 people in the past 12 months(as of 3Q22).We developed a state-of-the-art talent-management system,incorporating global hybrid-working policies,diversity and inclusion programs,world-class digital training,accelerated promotions,and employee mobility,all of which enables us to reinforce our positioning as an employer of choice.ACCESSING UNTAPPED TALENT POOLSHow are you addressing the skills shortages in your respective sectors?Jean-Pascal:We are living and working with technologies that didnt exist 10 years ago.It means we need to train people.It starts with investing and upskilling your own people,particularly around digital technologies.We also have a long-term engagement supporting internships and vocational training to train people in both academic theory as well as real-life applications.We are also further developing our multi-hub model,which places our SINCE 2021,SCHNEIDER HAS HAD 42%AND 44%REPRESENTATION OF WOMEN,RESPECTIVELY,AT BOARD AND EXECUTIVE COMMITTEE LEVELS.Jean-Pascal TricoireThe CEO Corner20Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower Talent20decision makers in different places around the world.This allows us the opportunity to tap into a large pool of talent.Within this model,every individual has the opportunity to access the highest level of the company without leaving their home time zone(if this is their preference),which is a major attraction.Lastly,we embrace diversity in all aspects;for example,accessing a previously untapped talent pool by hiring women who are looking to re-enter the workforce following a career break.Since 2021,Schneider has had a 42%and 44%representation of women,respectively,at board and executive committee levels.Aiman:We continue to reinforce our industry-focused skills in areas such as intelligent industry and 5G.Through NEXT,a digital learning experience platform,we are making learning programs from providers such as Coursera and Pluralsight accessible to all our employees.This enables our people to continually grow their business,professional,and technical skills and knowledge to be fully empowered in driving their careers.At the height of the COVID-19 pandemic,we launched a program to help women in rural India develop their IT skills,ultimately,to establish careers in the technology sector.In the current labor market,organizations need to be on the lookout for talent,even in non-typical environments.In Brazil,we are upskilling Uber drivers to join Capgemini as junior associates.Aiman Ezzat Organizations need to be on the lookout for talent,even in non-typical environments.In Brazil,we are upskilling Uber drivers to join Capgemini as junior associates.WHY SUSTAINABILITY IS GOOD FOR BUSINESS Schneider Electric is aiming to have in place a net zero supply chain by 2050,with precise steps for 2025,2030,and 2040.How will you ensure that all suppliers/stakeholders contribute to these goals?Jean-Pascal:It is teamwork,but the good news is that today this journey is becoming a common goal for many companies.Everyone is realizing that a business built for sustainability is built to last.Companies are also facing increasing pressures with ESG participation,not just from investors,but from countries and from other companies too.The CEO Corner21Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentAt Schneider,scope 3 emissions account for more than 99%of our group carbon footprint,so working with our suppliers and integrators is essential if we are to meet our carbon commitments.To make sure we meet our goals weve,over the past 20 years,realigned our entire corporate strategy around sustainability.First,with what we do in business,refocusing our portfolio to harness technology for efficiency and sustainability.Secondly,we consistently measure our efforts with programs and KPIs to monitor our own performance.In the past 20 years,weve reduced our energy use by 10%every three years.Third,we make sure that our entire ecosystem is engaged on this journey.It means embedding sustainability in our company culture and helping all stakeholders advance on this journey.And finally,we have put in place the proper governance at every level to oversee this.Our research indicates that many organizations still view sustainability as a cost driver.How do you convince your clients to invest in sustainability?Jean-Pascal:Theres an old perception that sustainability conflicts with performance.In reality,sustainability forces you to streamline your organizational business strategy.Being more sustainable is actually good for a companys P&L.In todays world,sustainability is a license to operate but it is also necessary to attract the best talent,which is the ultimate foundation of the wealth of any company.Our customers are starting to understand that sustainability is an investment,rather than a drag on organizational growth.Lastly,if you want to work with any flagship companies,youre going to have to show your commitment to being sustainable because you are a part of their scope 3.A companys sustainability efforts are becoming a qualifier to sell to someone else.Jean-Pascal Tricoire Theres an old perception that sustainability conflicts with performance.In reality,sustainability forces you to streamline your organizational business strategy.The CEO Corner22Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower Talent Aiman:Capgemini has a longstanding commitment to environmental sustainability,with the strategic aim of mitigating our own environmental impact but also helping our clients deliver their ambition.We are supporting the Swiss luxury brand Breitling on its journey to net zero,driving their global carbon accounting by combining our expertise in sustainability measurement with Salesforce Net Zero Cloud.Overall,we are contributing to the digital backbone of Breitlings transformation to a fully sustainable company.And theres ever-increasing client interest in sustainability.We currently have 14 offerings in our sustainability portfolio.We bring sector-specific solutions to drive positive,tangible business outcomes across the whole value chain of our clients organizations.Weve built a complete enterprise metaverse capable of digitizing processes,power and energy supply into one 3D model,which is collecting and adapting to real-time data,processed at the edge or in the cloud.Jean-Pascal TricoireThe CEO Corner23Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentHow is the move from product-led to services-led business models affecting your industry?Jean-Pascal:We welcome digitization,which makes the transition from product-to services-led business much more accessible.At Schneider,around 10%of turnover comes from recurring services that were previously transactional.Its a revolution for us,and is by far the fastest-growing aspect of the business.By building our subscription revenue,we are establishing an ongoing relationship with that customer base,making the model doubly valuable to us.The number of connected assets has increased by at least 50%a year over the past five years.Most of our value propositions develop around the circularity of our systems,recycling and upgrading to bring more appetite for subscription.Aiman:Fueled by the rapid development of technologies,including cloud,artificial intelligence,the Internet of Things,edge computing,and 5G,servitization is the next growth market.These disruptive technologies,coupled with access to real-time data,enable organizations to offer consumption-based,value-added services.This shift fromproductto Could you highlight a couple of sustainability innovations that Schneider Electric is working on?Jean-Pascal:In our sector there are two disrupters to the equation of sustainability:digitization,the way to address waste,and clean electrification,the way to eliminate carbon.The big thing is efficiency everywhere and in every direction.Weve built a complete enterprise metaverse capable of digitizing processes,power,and energy supply into one 3D model which is collecting and adapting to real-time data,processed at the edge or in the cloud.Weve empowered customers to digitize their resource consumption and tackle scope 3 emissions.Our agnostic software and smart-grid architectures contribute to electrification and decarbonization.Weve deployed cloud-based platforms to increase the effectiveness of power usage,improve efficiency,optimize value chains,and supply customers with information.Also,Im proud that Schneider is the first company to eliminate SF6 greenhouse gas from the power grid,instead using only air.THE SERVITIZATION REVOLUTIONThe CEO Corner24Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower Talentproduct serviceswill improve efficiency,reduce costs,and create new revenue streams for organizations.However,by elevating customer experiences,service-led models also raise customer expectations.For instance,if an organization is using robotics-as-a-service for its warehouse operations,it will expect the service to deliver higher productivity by proactively addressing potential maintenance and performance issues.We will deliver Alstoms first software-as-a-service platform to enable digital rail services for its customers.The platform is cloud-based,cyber-secure,data-driven,and delivered in partnership with Microsoft.The project will support Alstoms transformation towards being a smart and sustainable mobility leader,accelerating the move from product to digital services in alignment with the companys 2025 strategic positioning.Many organizations are driving towards digital services and looking to accelerate their ROI from digital investments.Which changes do organizations need to make to succeed in the move from product-to services-led operating models?Jean-Pascal:Organizations need the courage to abandon legacy models and accelerate new ones.Organizations must be stubborn strategically and agile tactically in order to survive in a volatile environment.They need to have a long-term vision,but also the ability to pivot as they encounter all the obstacles along the way.Every decision or action should be a two-way door,which allows you to go back if the strategy misfires.At Schneider,around 10%of turnover comes from recurring services that were previously transactional.Its a revolution for us.Jean-Pascal TricoireAiman Ezzat Servitization is the next growth market.The CEO Corner25Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentWhich new technology are you most excited about and why?Jean-Pascal:Our industry is addressing the biggest challenge of our generation,which is climate change.Going digital is the first step in the clean-energy transition.Digitization improves efficiency and connects every step of the value chain.It allows consumers to make better-informed decisions.Energy decentralization through electrification and digitization fascinates me.Im excited to be leading one of the companies enabling people to take control of their energy use.Aiman:Digital,cloud,and data,combined with AI,offer a compelling opportunity across our clients entire business value chain from customer experience to the design of new products and services,to the digitalization and transformation of manufacturing and supply chains and the radical redesign of business-management systems.From a future-of-work perspective,increased automation,advances in the metaverse,virtual reality,augmented reality,and Web3 are scaling up human capabilities and accelerating development.What would be your advice to your CEO peers about managing in an uncertain environment?Jean-Pascal:Helping each other,and importantly exchanging points of view with people who are different to you,those that live in different places,or have different educational or environmental backgrounds.Perhaps youll have disagreements,but we can learn much more through understanding our differences than trying to go it alone.Aiman:Talent,innovation,and sustainability are the top priorities we must act upon collectively to build the future of work and the future of society as a whole.OUTLOOK The CEO Corner26Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower Talent26The CEO Corner27Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower Talent2727Going digital is the first step in the clean-energy transition.Jean-Pascal Tricoire Chief Executive Officer,Schneider ElectricAiman Ezzat Chief Executive Officer,CapgeminiDigital,cloud,and data,combined with AI,offer a compelling opportunity across our clients entire business value chain.Inside the mind of a Nobel Prize laureate.Inside the mind of a Nobel Prize laureate28Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentSIR CHRISTOPHER PISSARIDESNobel Prize Laureate and Regius Professor of Economics,London School of EconomicsInside the mind of a Nobel Prize laureate29Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentSir Christopher Pissarides pioneered modern understanding of how regulation and economic policies affect unemployment,job vacancies,and wages,work which won him and his colleague,Dale T.Mortensen,the Nobel Memorial Prize in Economic Sciences in 2010.Professor Pissarides specializes in labor markets,macroeconomic policy,and economic growth.He also co-founded the Institute for the Future of Work(IFOW),an independent research and development institute exploring how new technologies transform work and working lives.The Capgemini Research Institute spoke to Professor Pissarides about his work on labor-market frictions;the interplay between automation,job loss,and job creation;and how to expand productive employment opportunities and create a good jobs economy.BUILDING A GOOD JOBS ECONOMYInside the mind of a Nobel Prize laureate30Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentYou won the Nobel prize in 2010 for your work on labor-market frictions and technology.How do you think the labor market and the implications of technological development for employment have evolved since then?Many people lost their jobs during the pandemic,and the new jobs being created are entirely different from those they are replacing.For example,many routine jobs were automated while giving a boost to STEM-related roles.This technological revolution has led to further disruption of the labor market.As routine jobs were replaced,workers had to undertake a challenging transition process if they are to adapt to new opportunities.Today,however,employers have access to more information about the labor market and peoples behaviors;the insights gleaned from this can be used to improve the overall wellbeing of workers.A widespread skills mismatch is also causing labor-market friction.This is due to rapidly changing skills requirements;information asymmetry resulting from uncertainty;and geographic changes as not many low-skilled jobs are remote and hybrid.EVOLUTION OF WORK AND WELL-BEINGThe new jobs being created are entirely different from those they are replacing.Inside the mind of a Nobel Prize laureate31Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentWhat is the biggest change currently happening in the world of work?The future of work will be largely influenced by digital technologies,and the biggest challenge is to ensure that these developments benefit the environment and humankind,enhancing well-being,working conditions,and work-life balance.The pandemic has emphasized the significance of access to good-quality,safe,secure work,and the value of human skills and collaboration.Yet,technology innovators seldom consider the impacts on working life itself,and the employee can be forgotten.A WIDESPREAD SKILLS MISMATCH IS ALSO CAUSING LABOR-MARKET FRICTIONTechnology innovators seldom consider the impacts on working life itself,and the employee can be forgotten.Inside the mind of a Nobel Prize laureate32Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentENCOURAGING GOOD WORKHow would you define good work and how can organizations design jobs to incorporate it?Good work encompasses more than employment.It promotes dignity,autonomy,and equality.It is subject to fair pay and conditions.And it takes place in an environment that has a sense of community and where people are properly supported to develop their talent.The most important feature of good work is promoting the engagement of the worker by giving them greater autonomy and opportunities to use their own initiative.Workers are looking for jobs that are designed well,offer them incentives,and use their skills to deliver peak performance and contribute towards organizational goals.Are work life and personal life well balanced?Does the company treat all workers fairly?One of the usual ways to progress at work is to change roles within the company:you do something for a while and move on to work that is related to your current role but requires complementary skills.Workers might ask questions such as,are there other roles within the company available to me to which my talents are better suited?What obstacles are there to my attaining these positions?Worker ambition also impacts how firms fill their vacancies.Searching for someone who wants to replicate their current job in a different environment for higher pay can be self-defeating.Instead,firms should recognize that many workers are trying to broaden their portfolios of work experience.The most ambitious,adaptable individuals can be a major asset to any organization,even if they are unconventional candidates for a given role.Firms have to get better at evaluating candidates based not just on their professional experience to date,but also on their characteristics,related skills,and ability to learn.Good work promotes dignity,autonomy,and equality.Inside the mind of a Nobel Prize laureate33Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentFirms have to get better at evaluating candidates based not just on their professional experience to date,but also on their characteristics,related skills,and ability to learn.Inside the mind of a Nobel Prize laureate34Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentHow can you build a good-jobs economy?At macro level,governments should incentivize companies to provide good work through tax relief,for example.People should be educated correctly,both formally and in the workplace,so that they come to expect good working conditions.A recognizably good working environment with strong employee retention rates can also encourage venture capital investments,which are long-term in nature,because companies with low employee turnover are viewed as less risky.Governments,both by working in partnership with companies and through tightening regulation,must develop a social culture of good jobs.There are many areas that can be improved:being stricter in applying anti-discrimination measures,ensuring provision of training programs,promoting lifelong learning at work,and monitoring employee health and general well-being,to name a few.Studies confirm that good work contributes to productivity,by allowing the worker more flexibility to choose the role within the company to which they are best suited,resulting in a better match between talents and role requirements.A recognizably good working environment with strong employee retention rates can also encourage venture capital investments.Inside the mind of a Nobel Prize laureate35Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentThe Nordic countries are a pioneering example of positive investment in good work.When you look at happiness surveys,life satisfaction,the Nordics are streets ahead.Among larger economies,Germany enjoys high productivity in its manufacturing sector.It has an effective apprenticeship system,which is essentially on-the-job training subsidized by the government.We need to survey the best practices from different countries around the world and extract them to build a template for good work.GOOD WORK CONTRIBUTES TO PRODUCTIVITYBRIDGING THE TALENT GAPHow do you see the gig economy maturing over time?The gig economy certainly includes some negative elements:increased worker stress,no sick pay,no holiday pay,no pensions,zero-hour contracts contracts with no minimum number of working hours,and general uncertainty of the flow of work.At the same time,there are positive features that attract workers,such as autonomy,flexibility,and choice in terms of the work you take on.We need to strike the right balance to improve gig-working models,providing adequate pay and retaining flexibility,while allowing gig workers to maintain a work-life balance.Some companies like to treat them as employees,offering them some benefits.They also judge their performance by long-term results,rather than monitoring their every move.But at present,only larger companies can afford to provide this level of flexibility.For small companies,the government should provide protection.Spain was the first country to pass such a law regulating the gig economy;it would be interesting to examine Inside the mind of a Nobel Prize laureate36Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower Talenthow employment has been affected there.So,governments should have a bigger role to play in regulating the gig economy and ensuring that the negative aspects do not outweigh the benefits for employers and employees.How should the education system respond to labor-market shortages?The education system needs to adapt to the new technologies that are beginning to influence various markets.It has to adapt and teach more STEM skills.More importantly,education should provide learners with a portfolio of skills that can be updated during their professional lives,opening many doors for them.It should,of course,provide you with basic skills such as communication,mathematics,language,and so on,to teach you how to deal with customers and co-workers,as well as how to conduct basic research,or teaching.The ideal is closer to the French Baccalaureate system.We shouldnt encourage students to specialize too early.Specialization should come in work-based training,as companies understand their specific skills requirements much more than the educational institutions.Each student has different talents,and only a broad education offering exposure to wide-ranging subjects would appropriately direct them to identify their suppressed talents.Exposure to a set of skills can prepare young people for entry into the labor market.Governments should have a bigger role to play in regulating the gig economy and ensuring that the negative aspects do not outweigh the benefits for employers and employees.Inside the mind of a Nobel Prize laureate37Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentAutomation technologies have hurt lower-and mid-skilled jobs but have benefited enormously the higher-skilled jobs.THE IMPACT OF AUTOMATIONWhat has been the impact of automation on jobs and workers in the past few years?Automation technologies have hurt lower-and mid-skilled jobs but have benefited enormously the higher-skilled jobs.Unfortunately,this is increasing inequality in the workplace.I can envision a future society where theres simply no unskilled work.However,although many jobs will disappear,work is becoming safer and more interesting.Right now,we still have high employment for unskilled jobs,but I see a lot of these roles,such as warehouse operatives,couriers,and taxi drivers,being automated,or going into the gig economy.We should take the opportunity during this transition period to adapt our education systems to ensure that young people leave education equipped with the skills most appropriate to them,which will allow them to find a place in the future of work.Inside the mind of a Nobel Prize laureate38Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentI can envision a future society where theres simply no unskilled work.Sir Christopher PissaridesNobel Prize Laureate and Regius Professor of Economics,London School of EconomicsInside the mind of a Nobel Prize laureate39Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentExecutive conversations withExecutive Conversations40Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentHSBCElaine ArdenChief Human Resources Officerh p.42ERICSSONMajBritt ArfertSVP&Chief People Officerh p.52 STELLANTISXavier ChreauChief Human Resources Officerh p.62HARVARD BUSINESS SCHOOLAmy EdmondsonNovartis Professor of Leadership and Managementh p.72EU Nicolas SchmitEuropean Commissioner for Jobs and Social Rightsh p.82ANZKathryn van der MerweGroup Executive Talent,Culture and Service centersh p.94MICROSOFT Jared SpataroCorporate VP of Modern Workh p.104GIRLS WHO CODEDr.Tarika BarrettChief Executive Officerh p.114INDUSTRY ANALYSTJosh Bersinh p.124Executive Conversations41Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower Talent42Capgemini Research InstituteBreathe In(novation)Uncover Innovations that MatterExecutive ConversationsELAINE ARDENChief Human Resources OfficerHSBCElaine Arden joined HSBC in 2017 as its Chief Human Resources Officer.Prior to that,she was Group HR Director at RBS(now NatWest)and Direct Line.With over 25 years of experience,Elaine has been responsible for various aspects of HR across several business verticals,including IT,Credit Cards,and Asset Finance.She is a Fellow of the Chartered Institute of Banking in Scotland(CIBOS)and a member of the Chartered Institute of Personnel and Development(CIPD).The Capgemini Research Institute spoke to Elaine about managing talent across geographies,closing skills gaps,and building an inclusive and collaborative culture to improve business outcomes.TAKING A HUMAN APPROACH TO THE FUTURE OF WORKWith assets of$3 trillion and operations in 64 countries and territories at 31 December 2021,HSBC is one of the largest banking and financial services organizations in the world.The company has a customer base of approximately 40 million and employs around 220,000 full-time equivalent staff.Executive Conversations43Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentWhat are the key elements driving the people agenda at HSBC?I think its useful to divide the people agenda into two areas of focus.The first comprises reskilling,restructuring,and growing the business.Reskilling is essential for the future skills we need to deliver on our strategic plan.On restructuring HSBC is constantly transforming.As a recent example,we radically downsized our operations in Europe and the US to support the shift in capital to Asia in 2020.To support growth,we have big hiring plans to build robust capabilities in Asia.The second area focuses on cultural change:fostering diversity and inclusion with our global reach and footprint,future-proofing the workplace culture and strengthening leadership to set the strategic direction of the organization.Elaine ArdenChief Human Resources Officer,HSBCTHE FUNDAMENTALS OF PEOPLE STRATEGY RESKILLING IS ESSENTIAL FOR THE FUTURE SKILLS WE NEED TO DELIVER ON OUR STRATEGIC PLAN.Executive Conversations44Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentHow does HSBC encourage dynamic talent allocation and skills development?We support our employees in developing the digital,data,and sustainability skills that will be most important in the longer term.Were providing our employees with a learning platform that gives us a framework for skill-building at scale.Employees are able to train,upskill,and attain qualifications in a way that is tailored to benefit their professional trajectories.We have set a core curriculum that helps them develop structured learning journeys focused on in-demand skills.For instance,the Sustainability Academy offers programs that are accredited by external bodies and instill everything from very specific change to a high-level understanding of current sustainability imperatives.LEARNING AND TALENT ALLOCATION AT HSBC Executive Conversations45Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentWe also have an internal talent marketplace that 140,000 employees use.Its a game-changer:connecting talent and skills,at scale,across the business.It empowers people and democratizes access to work by disrupting traditional internal hierarchies and breaking down silos.We are committed to redeploying employees affected by our restructuring programs;almost a quarter of employees affected in this way found new roles within HSBC in 2021,up from 14%in 2020.How does HSBC use its internal talent marketplace to overcome cultural and geographical barriers and support collaboration?We selected around 10,000 employees from the technology team based in India to introduce the digital talent marketplace platform,as,by the nature of their training,they were already thinking of skills and projects in this way.Following a successful pilot,we were able to go live with the talent marketplace for another 90,000 employees across four markets.We will make it available to all our employees worldwide by Q1 2023.Anecdotally,I have heard a lot of good things,and we are also looking at quantitative data to see how the system is working.We will examine outcomes across markets and verticals as we scale.But,overall,we are keen to keep it loosely structured,giving people freedom to explore new tasks and roles.We have an internal talent marketplace that 140,000 employees use.Its a game-changer:connecting talent and skills,at scale,across the business.Executive Conversations46Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentWe have 220,000 people in over 60 countries;thats a lot of different markets and business cultures to consider!THE PRODUCTIVITY PUZZLEHow can organizations improve productivity in the hybrid era?Organizations rely on their people to connect with customers;consequently,they need to make sure that their people are happy with their choice of employer and work environment.Were moving away from traditional targets,like days spent in the office;productivity should be measured in terms of customer outcomes,team cohesion,and social capital.We trusted people through the lockdown,and they delivered.So,why suddenly take that trust away?Its easy to focus on the extremes,pointing to the few employees who did not respond positively to the office re-opening.But its never a good idea to design your whole approach for the outliers.The best way to improve both organizational health and individual well being is to offer a range of flexible working options and support teams in finding the right balance between office and remote working.We trusted people through the lockdown,and they delivered.So,why suddenly take that trust away?Executive Conversations47Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentProductivity should be measured in terms of customer outcomes,team cohesion,and social capital.We want to maximize the autonomy and empowerment that lockdown and remote working brought,and then get the benefits oftogetherwork and great workplaces I cant stress enough that human connections count.We have learned that one size doesnt fit all;hybrid means employees in most roles can choose the best way to get work done for their teams,their customers and themselves.81%OF EMPLOYEES SPEAK FAVORABLY ABOUT HSBCS APPROACH TO FLEXIBLE WORKING TO FRIENDS AND FAMILY AND MANY VALUE IT AS A KEY REASON TO RECOMMEND HSBC AS A GREAT PLACE TO WORK.1Executive Conversations48Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower Talent1 HSBCs Future of Work survey,June 2022.Its important to allow teams to take time to try things,discover what works best.We have 220,000 people in over 60 countries;thats a lot of different markets and business cultures to consider!Instead of trying to enforce a common framework,we decided to allow managers to implement hybrid working at team level,focusing on flexibility,both for the employee and the customer.Our engagement survey revealed that our employees worked flexibly evenbefore the pandemic and our hybrid approach takes this a step further;81%of employees speak favorably about HSBCs approach to flexible and hybrid working and many value it as a key reason to recommend HSBC as a great place to work.And 86%of people managers say their teams have the balance between remote and office working right.1Instead of trying to enforce a common framework,we decided to allow managers to implement hybrid working at team level,focusing on flexibility,both for the employee and the customer.Executive Conversations49Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentHow can organizations nurture a sense of community among their remote workforce?Organizations need to elevate workplace experience by equipping managers to implement the initiatives they know will support their teams,and by creating even more flexible and digitally enabled workspaces.We have redesigned workplaces to build social capital,with a strong focus on new joiners.In our employee engagement survey,we use ahybrid effectiveness indexto track the benefits of hybrid working.By monitoring the outcomes,we intend to drive trust between employees and their managers and colleagues,productivity and customer focus,and a sense of social belonging and well being at work.We need to be culturally and geographically sensitive and adapt our approach depending on where in the world our teams are based.For instance,although Hong Kong and the UK arent hugely different in terms of working cultures,Hong Kong is a much smaller city with shorter commute times and a higher proportion of intergenerational households.The UK workforce is geographically more dispersed,and employees are less likely to live with their families.So,the work-life balance and requirements for one set of employees could be quite different from that of another,even where there are superficial similarities.We run an executive leadership program to align our leaders personal objectives with corporate goals and foster human connections,offering executive education and training,using both internal and external experts.The program has helped leaders build trust and to bring together a global community of leaders who,day to day,are geographically distant.INSTILLING A CULTURE OF TRUST Executive Conversations50Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower Talent51Capgemini Research InstituteBreathe In(novation)Uncover Innovations that MatterWe have redesigned workplaces to build social capital,with a strong focuson new joiners.Elaine ArdenChief Human Resources Officer,HSBCExecutive Conversations52Capgemini Research InstituteBreathe In(novation)Uncover Innovations that MatterExecutive ConversationsMAJBRITT ARFERTSVP&Chief People OfficerEricssonMajBritt Arfert joined Ericsson straight from university.In a career spanning over 35 years,Arfert has held various global executive HR roles and was responsible for handling international acquisitions,driving change,aligning all people-related initiatives,and managing employee and industrial relations.Arfert was appointed Senior Vice-President and Chief People Officer for Ericsson in April 2017.In this role,she focuses on creating an exceptional employee experience and a culture that attracts and inspires top talent.The Capgemini Research Institute spoke to Arfert about Ericssons approach to nurturing diversity and inclusion,transforming corporate culture,and designing the new workplace.RECONNECTING WITH OUR ROOTS:STRENGTHENING A CULTURE OF DIVERSITY IN THE WORKPLACEHeadquartered in Stockholm,Ericsson is a leading provider of mobile connectivity solutions to telecom operators and to enterprise customers in various sectors.With revenues of approximately$22 billion in 2021,the Company has around 100,000 employees and customers in more than 180 countries.Executive Conversations53Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentAs Ericsson plans its hybrid workplace of the future,what is your hiring approach?At Ericsson,since the onset of the pandemic,the percentage of newly hired employees co-located with their managers has fallen dramatically,from 75 to 50 percent.The organizations hiring approach has been refined to focus on finding the best fit for the role in question,rather than the best candidate from the talent pool of a given location.However,hiring team members from totally different time zones is not ideal for roles that require close collaboration and extensive office time,potentially having a negative impact on employee work-life balance and,ultimately,well-being.MajBritt ArfertSVP&Chief People Officer,EricssonINFUSING THE WORKPLACE WITH DIVERSITY AND INCLUSIONExecutive Conversations54Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentMoreover,over the past two to three years,it has become clear that remote work does not necessarily hinder productivity as Ericsson had around 85,000 employees working from home during the pandemic.Ericsson continues to deliver on its strategy and is experimenting with a 50/50 hybrid model.How is Ericsson increasing representation of women in technical roles?Ericsson aims to increase representation of women companywide,to 30%by 2030,up from 25%in 2021.We are partnering with other organizations in the ICT/tech industry to encourage more people from different backgrounds to apply.Post-recruitment,organizations must ensure that women in technical roles are given sufficient support and opportunities to allow them to grow,both in their roles and in the organizations.Ericsson launched its Altitude Program,to offer mentorship,networking,education,and training to allow employees to fulfill their career aspirations.We follow up closely on the impact of our initiatives.Our data shows that about one-quarter of graduates from the Altitude Program have moved to new positions in their organizations,demonstrating its effectiveness in facilitating career progression and mobility.We have also linked our long-term variable-pay program for our executives to increasing the percentage of women in line-manager positions.We have linked our long-term variable-pay program for our executives to increasing the percentage of women in line-manager positions.Executive Conversations55Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentCULTURAL TRANSFORMATION,GROWTH,AND INNOVATIONCould you outline the progress and impact of the organizations cultural-transformation program,Ericsson on the Move?The program is part of our effort to transform Ericssons culture.It is centered around our five core focus areas:empathy andhumanness;cooperation and collaboration;executing with speed;fact-based and courageous decision-making;and creating a speak up environment.Cultural change is not about sending around a memo or pinning up a poster;its about changing day-to-day work habits and attitudes.Recognizing this,rather than seeking to enforce cultural change,we designed the program to foster it through positive inquiries.We put around 7,000 of our formal and informal leaders through intensive,hands-on workshops,during which they are not only provided with training and resources but are also encouraged to experiment with different ways of using them in their day-to-day jobs.We wanted to create awareness about why change was necessary and what it should look like.This methodology focuses on continuous experimentation,which in turn fosters agility and adaptability.How are you changing the habits and attitudes of the whole workforce?This upskilling and awareness-raising process equips our leaders to drive change in the organization.At the same time,we have begun to build awareness across the workforce and engage employees in the journey.We invited all 100,000 employees to participate in a 72-hour discussion about our transformation journey and the role each of us can play in it.Executive Conversations56Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentCULTURAL CHANGE IS ABOUT CHANGING DAY-TO-DAY WORK HABITS AND ATTITUDES.In 2021,we moved this globally driven transformation program to be operationally driven by our leaders in our local units.We have also launched a digital platform called the Move Journey,through which internally trained leaders can deliver team workshops.By end-2021 over 15,000 people had used the Move Journey,and over 8,000 had participated in our workshops.Executive Conversations57Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentWhat have been the impacts of this cultural-transformation program?Weve been on the journey for more than three years,and we have already seen the impact.The data shows a clear correlation between customer experience and employee feedback across the five focus areas.Teams that engage with the program have 1.5 times higher overall employee feedback scores than those with no awareness.We saw similar results when people feel psychologically safe to speak up about different topics.Forawareteams,positive results were 1.4 times higher.In relation to the dimension of executing efficiently,teams that were aware of Ericsson on the Move scored 1.8 times higher than teams with no awareness.DESIGNING WORKPLACES FOR THE HYBRID WORLD OF WORKHow has Ericsson adapted its workplace strategy to the new working environment?To inspire workers,the office should have a demonstrable purpose.External data tells us that people quit their jobs when they are asked to return to offices full time.Our people said they wanted to come to the office to collaborate,network,share knowledge,build social capital,and rediscover a sense of belonging.We are redesigning our offices to support these aims.We invited all 100,000 employees to participate in a 72-hour discussion about our transformation journey and the role each of us can play in it.Executive Conversations58Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentPeople will be able to return home to concentrate on their personal workloads.Collaborating in the traditional,siloed office environment can be tough,so we are now piloting new designs in several offices globally.We believe that the right environment will enhance employee well-being and improve productivity;in a collaborative team environment,people will want to contribute.In the office,more experienced employees can more easily help newcomers,support colleagues,and just have the usual conversations around the coffee machine or copier,which we have all missed.We are experimenting more with open spaces,too.There are mini meeting rooms and quiet areas for focused work.But people will be able to return home to concentrate on their personal workloads.Executive Conversations59Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower Talent SKILLS OF THE FUTURE How is Ericsson adapting its skilling strategy to meet its long-term goals?We have defined the critical skills using four standardized proficiency levels and have embedded skilling strategies in our annual business-and financial-planning cycle.Each critical skill area has a designated lead who curates various experiential up-and reskilling journeys.We have set targets for skill shifts to measure progress.Our most mature journey is on artificial intelligence(AI)and automation,where we have upskilled 19,000 employees across the four proficiency stages,and we expect to double that number of employees during the next year.How are you preparing Ericssons people to lead in the future?Leaders need to be able to bring clarity to communicate complex ideas and messages clearly to the whole workforce.The second priority is optimization:how does a leader balance the needs of individuals in their team with the needs of the team as a whole,in order to optimize productivity and impact?Third is demonstrating empathy and humanness.Leaders need to stay close to their people,especially now;in a hybrid model,you cannot distance yourself.Of course,all these three elements are underpinned by good understanding and effective use of digital tools to maximize efficiency,wherever and whenever work is done.19,000We have upskilled 19,000 employees on artificial intelligence(AI)and automationExecutive Conversations60Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower Talent61Capgemini Research InstituteBreathe In(novation)Uncover Innovations that MatterPeople want to come to the office to collaborate,network,share knowledge,build social capital,and rediscover a sense of belonging.We are redesigning our offices to support these aims.MajBritt ArfertSVP&Chief People Officer,EricssonExecutive Conversations62Capgemini Research InstituteBreathe In(novation)Uncover Innovations that MatterExecutive ConversationsXAVIER CHREAUChief Human Resources&Transformation OfficerStellantisXavier Chreau was appointed Chief Human Resources&Transformation Officer and a member of Stellantiss top executive team in January 2021.He has built his career in HR,alternating between head-office roles and operations activities within different sites and divisions,including R&D,Manufacturing,and support functions.The Capgemini Research Institute spoke to Xavier about Stellantiss transformation into a tech company through upskilling and reskilling,and how the organization is attracting young talent in the hybrid world of work.SKILLING FOR THE MOBILITY ERAStellantis is a global automotive group with 14 brands including Alfa Romeo,Chrysler,Citron,Fiat,Jeep,Maserati,and Peugeot.In 2021,Stellantis shipped 6.1 million vehicles earning net revenues of approximately$159 billion.The company has over 282 thousand employees.Executive Conversations63Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentUnder the New Era of Agility initiative,Stellantis enables employees to work 70 percent from home and 30 percent from the office.How are you helping your workforce adapt to these new ways of working?Our New Era of Agility program was launched in 2020 with the aim of improving employees work-life balance,boosting their motivation,and protecting their well-being.It was also designed to spur the use of digital and collaborative tools,reduce bureaucracy,and reinforce autonomy and flexibility.To achieve these objectives,we took a 360-degree approach to employee well-being,comprising five axes:physical,mental,professional,social,and financial well-being.Xavier ChreauChief Human Resources&Transformation Officer,StellantisTRANSFORMING OFFICES INTO COLLABORATIVE SPACESWE ARE EVOLVING OUR WORKSPACES WITH 25 PERCENT OF SPACE FOR INDIVIDUAL DESKS AND 75 PERCENT FOR CREATIVE AND COLLABORATIVE SPACES.Executive Conversations64Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentWe have mobilized stakeholders from HR,Real Estate,ICT,plus employees and leaders,to evolve ways of working,behaviors,and the mindset within the company.The most important aspect is to change peoples mindsets and,through that,their behavior especially among our managers.How will we create team cohesion and instill a feeling of belonging to the company?How will the organization need to be led in the next normal?For example,we are using digital skill assessment to profile 50 percent of our managers by end-2022 and the remaining 50 percent by end-2023.We want to help them help us to make our work relevant to employees,giving them more autonomy in decision-making and offering opportunities to make meaningful impact,for example in addressing climate change.We are using digital skill assessment to profile 50 percent of our managers by end-2022 and the remaining 50 percent by end-2023.Executive Conversations65Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentWhy is diversity such a strong focus at Stellantis?Diversity is in our DNA we see ourselves aspowered by diversityand one of our great strengths,with 270,000 people across 170 nationalities from 42 countries.This is a real competitive advantage.We have an ethical obligation to ensure that talent from anywhere in the world is given the same opportunities and treated equally;there are also great commercial benefits to this approach.Our objective is to drive real advantage,both locally and globally.With the new way of working,we can draw on our collective intelligence,from many different perspectives and geographies.We have many different types of customers,so it makes sense to draw on as many different viewpoints as possible from within the organization.We want to give people the automobiles that they want,and the most effective way to achieve this is to gain access to as many different market viewpoints as possible.Are you redesigning your offices to adjust to the new hybrid work requirements?We are evolving our workspaces with 25 percent of space for individual desks and 75 percent for creative and collaborative spaces.If you come back on-site,it should not be just to sit behind your laptop,but to interact with your colleagues,feed off each others energy,and brainstorm solutions dynamically,in a way that is difficult to achieve online.We have decided to redesign our technical centers using this approach in areas such as France,Brazil,Italy,the US,and Germany.If you come back on-site,it should not be just to sit behind your laptop,but to interact with your colleagues,feed off each others energy,and brainstorm solutions dynamically,in a way that is difficult to achieve online.DIVERSITY MATTERS Executive Conversations66Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentWe have many different types of customers,so it makes sense to draw on as many different viewpoints as possible from within the organization.270,000 270,000 people across 170 nationalities from 42 countries.Executive Conversations67Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentStellantis has a stated goal of achieving 35 percent representation of women in its leadership by 2030(up from 24 percent in 2020).Which strategies are you adopting to reach this goal?Gender equality is a clear priority for us,as is equality among nationalities,ethnicities,and disability levels.To bring this about,we need to improve our HR processes to promote meritocracy.Meritocracy is the foundation of diversity.We have dedicated governance under the leadership of the CEO and me to manage the diversity,and inclusion(D&I)policy in the company,with a specific D&I committee at the top level.We are aiming for a minimum 20 percent of employees from diverse backgrounds at middle-manager level by end-2022;this target will increase to 24 percent next year and continue to rise by 2 percent every year.We are aiming for a minimum 20 percent of employees from diverse backgrounds at middle-manager level by end-2022.Executive Conversations68Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentSKILLING FOR THE FUTUREHow does Stellantis create an agile workforce with future-ready skills?We have a global employee expertise community,connecting experts in specific domains throughout the business,which is designed to strengthen the evolution of skills.This community plays a key role in research and experimentation,building external relationships and partnerships to develop technical knowhow,all of which supports our strategic plan.For example,the transition from combustion engines to electric is transforming our skills requirements throughout the value chain and leading to newprofessionsat all levels,including that of blue-collar workers.By 2024,Stellantis has targeted developing a network of 4,500 software engineers,creating talent hubs around the globe.How have you invested in upskilling and reskilling your workforce to prepare for electrification andsoftwarizationof the automotive industry?We have established a dedicated Software Division to manage the shift to becoming a sustainable mobility-tech company.Stellantis is creating a software and data academy to retrain more than 1,000 of our engineers every year to fulfill multiple roles within our software community.We aim to hire top software and AI talent from technology and other Executive Conversations69Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower Talentindustries globally.By 2024,Stellantis has targeted developing a network of 4,500 software engineers,creating talent hubs around the globe.These engineers will be crucial to Stellantis software ambitions.We have to recruit the right talent for all divisions especially R&D if we want to reinforce the new primacy of our software-based strategy.We launched anelectric academyin early 2022 to upskill the entire Stellantis sales workforce around electric vehicles(EVs)by 2025.We will also double the number of leaders with direct responsibility for the bottom line and provide entrepreneurial training to our identified high-potential leaders to encourage value creation across the business.My main objective as CHRTO is to unleash the talents of everyone.Every employee should feel they can contribute on the journey.We launched anelectric academyin early 2022 to upskill the entire Stellantis sales workforce around electric vehicles(EVs)by 2025.Executive Conversations70Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower Talent71Capgemini Research InstituteBreathe In(novation)Uncover Innovations that MatterWe will double the number of leaders with direct responsibility for the bottom line and provide entrepreneurial training to our identified high-potential leaders to encourage value creation across the business.Xavier ChreauChief Human Resources&Transformation Officer,StellantisExecutive Conversations72Capgemini Research InstituteBreathe In(novation)Uncover Innovations that MatterExecutive ConversationsAMY C.EDMONDSONNovartis Professor of Leadership and ManagementHarvard Business SchoolAmy C.Edmondson has been recognized by the biannual Thinkers50 global ranking of management thinkers since 2011,and was ranked#1 in 2021.She received the organizations Breakthrough Idea Award in 2019,and Talent Award in 2017.Professor Edmondsons research focuses on teaming,psychological safety,and organizational learning.Her articles have been published in numerous academic and management outlets,including Harvard Business Review and California Management Review.Her most recent book,The Fearless Organization:Creating Psychological Safety in the Workplace for Learning,Innovation and Growth(2018)has been translated into 15 languages and its blueprint for creating a fear-free culture has revolutionized how organizations think about workplace culture as a means to thrive in the Future of Work.The Capgemini Research Institute spoke to Professor Edmondson about building a psychologically safe workplace,embracing failure,and how leaders can steer their organizations through the new business environment.A PLACE OF GREATER SAFETY:GIVING PSYCHOLOGICAL REASSURANCE IN THE WORKPLACEExecutive Conversations73Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentWhat is psychological safety and how does it drive organizational performance?A psychologically safe workplace is an environment where behavior traditionally perceived as incurring interpersonal risks,such as posing challenging questions,making objective observations,proposing out-of-the-box ideas,and expressing dissenting views,is actively encouraged and made explicitly penalty-free.When organizations create such a work environment,they are rewarded with a greater degree of candor in terms of employee responses and questions,which translates into higher quality of output especially when the work is knowledge-intensive.This has been confirmed in a well-publicized study by Google called Project Aristotle,which set Amy C.EdmondsonNovartis Professor of Leadership and Management,Harvard Business SchoolPSYCHOLOGICAL SAFETY AND ORGANIZATIONAL PERFORMANCEThe highest-performing teams are those with the strongest elements of psychological safety.In a hybrid set-up,leaders should go out of their way to encourage dissenting views.Executive Conversations74Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower Talentout to find thesecret sauceof high-performing teams.They found that the highest-performing teams were those with the strongest elements of psychological safety.An important disclaimer here is that psychological safety enables high performance,but it doesnt inherently motivate it;greater psychological safety will perpetuate a sense of freedom and relieve interactional tensions but will not provide incentives to perform.However,research suggests that motivation is not the problem;most often,employees feel motivated but are stymied in their attempts to act on that motivation.Here,psychological safety comes to the rescue by encouraging behaviors such as asking questions,experimentation,and giving candid feedback.It releases people from the constraints of interpersonal fear.When employees have both motivation and psychological safety,a learning zone is created,which quickly develops into a high-performance zone.A psychologically safe workplace is an environment where behavior traditionally perceived as incurring interpersonal risks,such as posing challenging questions,making objective observations,proposing out-of-the-box ideas,and expressing dissenting views,is actively encouraged and made explicitly penalty-free.Executive Conversations75Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentBUILDING FEARLESS ORGANIZATIONSWhat does psychological safety look like in practice?It looks energizing.We see less hesitation,and greater participation and inclusivity,meaning that planning and performance benefit from a range of diverse perspectives.There might be an increase in overt work-relatedconflict,but it will be healthy,impersonal,and productive.More voices will be heard,regardless of the status or role of the speaker;ideas will be received and assessed based on their own merits,rather than the position of the speaker in the organizational hierarchy.How can organizations create a psychologically safe work environment in a remote setting?Hybrid working arrangements present an additional challenge to organizations seeking to create a psychologically safe workplace.In a remote setting,organizations need to rely more on an effective structure than on the strength of informal interpersonal relationships.This structure should provide a platform for everyone to speak and employ techniques such as a devils advocate or pre-mortem assuming the project will fail andidentifying the potential causes of failure.In a hybrid setup,leaders should go out of their way to encourage dissenting views.In a psychologically safe workplace,there might be an increase in overt work-relatedconflict,but it will be healthy,impersonal,and productive.Executive Conversations76Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentAs well as demonstrating them through their actions,leaders should be open and explicit about their intentions to be inclusive and helpful.By establishing a psychological as well as an operational framework,the safe environment can be transferred to the hybrid structure.Which managerial practices help foster a culture of psychological safety across the organization?Recognize fear as a risk;make it discussable,make it okay to ask for help,and welcome diverse views.Then,the most important thing is the use of inquiry the explicit,proactive,persistent use of good questioning techniques.When managers or colleagues ask thought-provoking questions,it gives employees the stage and lends implicit credibility to their opinions and ideas,while demanding high-quality thinking.My interest in psychological safety stems from a more profound interest in collaboration.The quality of the product or outcome depends,inevitably,on effective collaboration.Empirical research by Microsoft has concluded that the shift to remote working has caused the share of time employees spend in collaborative cross-group connections to drop by about 25%compared with the pre-pandemic level.We are still collaborating but have become more siloed.We are communicating just as much and sending more emails,but we are less likely to boundary span link internal networks with external sources of information in potentially practical ways.This issue should be identified in individual organizations and steps taken to overcome it,such as identifying points in each project for productive cross-departmental collaboration,rather than leaving everything to email.25%DROP The shift to remote working has caused the share of time employees spend in collaborative cross-group connections to drop by about 25%compared with the pre-pandemic level.Executive Conversations77Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentHow to avoid underperformance and innovate better by embracing failure?I have identified three broad categories of failure:basic,complex,and intelligent.Basic failure occurs when deviation from a set formula results in a bad outcome.Complex failures result from multiple events in different departments or disciplines,or at different levels of the organization;it is analogous to a breakdown in a vulnerable system.During the pandemic,supply-chain breakdowns offered examples of complex failure.Intelligent failure can result from positive actions,such as venturing into new territory,exploring new opportunities,experimenting with hypotheses,and(as a result of these positive behaviors)making small mistakes.Organizations must get comfortable with these types of failure and learn from them in order to create new knowledge and promote innovation.Companies must celebrate intelligent failure and do whatever they can to mitigate,reduce the frequency of,and(ideally)eliminate basic and complex failures.It is also sound policy to seek to avoid intelligent failures of a magnitude where they can no longer be considered intelligent.THREE CATEGORIES OF FAILURESFear-based management leads people to hide,striving to provide the illusion of performance,rather than real excellence.Executive Conversations78Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentWhat sort of relationship should a leader have with failure?Many leaders are highly tolerant of intelligent failure because it drives innovation,but,understandably,they are intolerant of incompetence and sloppiness.The best leaders think like scientists,rather than old-fashioned command and control managers.They are no longer under the illusion that they can just set targets and goals and,if people try hard enough,they will achieve them.The best leaders set a clear direction and have a very high ambition about what can be done through productive collaboration.However,at the same time,they keep open minds about how the ultimate destination will be reached and which milestones will be passed on the way there.Is fear really a motivating factor?Fear fundamentally motivates people to withdraw,rather than participate and strive for excellence.If employees are afraid in the work environment,they will be keen to show superficial competence but will aim little higher than that.In some environments,the former attitude will suffice.If Im doing something standardized repeatable widget-making,say then looking good and being good will be the same.But,if the work requires ingenuity,judgment,and collaboration,looking good and being good will not be the same thing.Fear-based management leads people to hide,striving to provide the illusion of performance,rather than real excellence.Eventually,all illusions are discovered and become expensive,embarrassing,and potentially highly damaging.Fear can motivate adequate performance of highly standardized,highly routine,highly objective work tasks.However,it does not serve as a motivator for knowledge-intensive work or any task that requires ingenuity,creativity,and teamwork.How can organizations use agility hacks?Large established companies often useagility hacksshortcut responses that alleviate a problem temporarily allowing a more measured response to the underlying causes to bypass temporarily their standard processes and act quickly and effectively,while leaving the overall system undisturbed.Executive Conversations79Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentOrganizations unleash high-powered teams to pursue a new market opportunity or respond forcefully and creatively to severe performance problems(such as an alarming decline in revenue).These teams use unorthodox methods to achieve results quickly,which act as workarounds to get things done outside the organizations established architecture and standard operating processes.The case studies where these were employed differed in size and duration,but we encountered commonalities in their approaches:they were connected to their purpose,they received permission to cut through bureaucracy,and they could bypass the disciplined,iterative processes used in their usual operations.Other companies seeking to create agility hacks should build them around these principles.Agility hacks will not necessarily alter how the overall structure of the company works,but I argue that this is no bad thing.It is more a case of mobilizing various teams to provide effective quick fixes that buy time in which long-term solutions can be developed.LEADING THROUGH THE NEW NORMALWhat are the top three attributes that you would like to see in leaders?Leaders need to be vulnerable,curious,and empathetic.None of us knew we were about to face a global pandemic;we need to admit to this state of vulnerability.Leaders who acknowledge reality are stronger than those who dont.I see you as a less strong leader if you say,Get it all under control;we are solid in our knowledge of what were doing and whats going to happen next.That,to me,is an unrealistic and ill-informed stance.As I say,leaders should have the mindset of a scientist:growth and learning come from a place of curiosity.And empathy is a powerful place to come from,too,because,if you want to inspire and engage others in challenging activities that lie ahead,you need to understand human behavior and have a generous attitude to your employees,both as colleagues and as people.Leaders need to be vulnerable,curious,and empathetic.Executive Conversations80Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower Talent81Capgemini Research InstituteBreathe In(novation)Uncover Innovations that MatterThe best leaders think like scientists,rather than old-fashioned command and control managers.They are no longer under the illusion that they can just set targets and goals and,if people try hard enough,they will achieve them.Amy C.EdmondsonNovartis Professor of Leadership and Management,Harvard Business SchoolExecutive Conversations82Capgemini Research InstituteBreathe In(novation)Uncover Innovations that MatterExecutive ConversationsNICOLAS SCHMITEuropean Commissioner for Jobs and Social RightsNicolas Schmit has been European Commissioner for Jobs and Social Rights since 2019.He is responsible for strengthening the EUs social dimension and developing an action plan to implement the European Pillar of Social Rights.Before starting at the European Commission in 2019,he has held the position of Minister for Labor,Employment,and Immigration in his home country of Luxembourg.The Capgemini Research Institute spoke to Nicolas about creating new opportunities for Europeans to thrive in a digitalized,greener economy.FOSTERING A COMPETITIVE EUROPEExecutive Conversations83Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower Talent*Difference between the employment rates of men and women aged 2064;pps means percentage points,or one-hundredths of a wholeSource:Eurostat,EU labor market quarterly statisticsWhat are your key priorities as European Commissioner for Jobs and Social Rights?In this role,I must respond to diverse challenges in the labor market in Europe.Firstly,we have to make an enormous effort to reskill and upskill people.Secondly,we need to address labor shortages,which are partly due to mismatches in the labor market,adverse demographics due to an aging society,and labor resignation,although this last issue is easing as people return to the labor market in response to a perceived worsening of economic conditions.We need to support peoples reintegration into the labor market by providing fair conditions and helping them develop the required skills.We also have to monitor geopolitical developments and their effect,for example with respect to the energy crisis,inflation,etc.We need to monitor market conditions at both granular and big-picture levels.Nicolas SchmitEuropean Commissioner for Jobs and Social RightsEuropean labor market statistics,June 2022Number of people employed aged 2064 years193.9 millionEmployment rate of people aged 2064 years74.8%,up 0.3 pps QoQSeasonally adjusted unemployment rate5.8%,or 12 million people,up 0.2 pps QoQGender employment gap*0.2 pps decrease QoQExecutive Conversations84Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentWhat are the biggest trends impacting the European jobs market?The biggest trend is the request for certain skills.Digital skills is one significant area:there are an estimated 700,0001 million vacancies in Europe related to digital skills.To bridge this skills gap,the European Commission(EC)has named 2023 the European Year of Skills.This initiative will help us progress our goals to have 80%of Europeans equipped with basic digital skills and 20 million information,communication,and technology(ICT)specialists in Europe by 2030.Another focus is cybersecurity;we are aware that this is a growing area in need of expertise and we need to train more specialists.We also need to address skills shortages in sectors beyond digital,such as hospitality.With the greening of our economy,too,we are focusing on the renovation of buildings which can deliver a great deal of energy savings,but we need more people who are trained to work in this field.THE FUTURE OF JOBSWe aim to have 80%of Europeans equipped with basic digital skills and 20 million information,communication,and technology(ICT)specialists in Europe by 2030.Executive Conversations85Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentWhat do you see as the main impacts of automation on jobs in Europe?Everybody feared automation,robotization,the idea of a jobless economy.It is true that a lot of traditional roles are disappearing;but it is also true that there are more jobs in todays economy than ever before and a lot of these are more interesting,highly skilled,and strategic roles.So,again,its not a lack of jobs that is the issue,its the need for lifelong learning to adapt to new types of jobs.How has the concept of labor flexibility developed in the past 2-3 years?In the past,flexibility meant that labor markets must be flexible,which meant short-term contracts;this was too heavily weighted in favor of employers,who could dismiss workers at short notice.We need a system that benefits both sides of the employment equation.700,000-1 MILLION vacancies in Europe related to digital skills.Executive Conversations86Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentFirst,with the technology-driven shift in jobs we have just discussed,we need to support organizations in the up-and reskilling of employees,so that they are ready to take on new opportunities and new roles.We can then help with managing the transition when they do take these on.We also need to support organizations,through regulatory means and otherwise,in helping people work in a more flexible manner that suits their lifestyles,whether that be through hybrid working or another way.Working towards both of these improvements is what I call apositive flexibilitymindset.BRIDGING THE SKILLS GAPIs the European Commission looking at any specific initiatives to address the shift to digital?Owing to the digital transition,a number of new jobs will emerge in the next 10 years,but we cannot predict exactly the form they will take.This is a challenge,because we have to prepare people for jobs we are not sure about.This means that our education systems have to be more innovative and give people more capacity to learn.Lifelong learning is one of the major issues.At the European Commission,we have made two proposals.One is called EASE Effective Active Support to Employment;this concerns our recommendations on how to design labor-market policy and support role transition,both within and between companies and sectors,to assuage concerns around potential loss of employment.There are more jobs in todays economy than ever before and a lot of these are more interesting,highly skilled,and strategic roles.Executive Conversations87Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower TalentOur education systems have to be more innovative and give people more capacity to learn.Another issue concerns European citizens not currently participating in the labor market,which include over 8 million young people.The European Commission launched the ALMA Aim,Learn,Master,Achieve program,which offers participants intensive tailored training in their home countries,followed by a supervised stay,including work placement with accompanying mentoring services for 2-6 months in another EU member state.Upon their return,they will receive ongoing support in applying these newly acquired skills in their home countries to gain employment or further their education.How is the European Commission managing the transition to a green economy in relation to jobs in traditional industries,such as oil and gas or automotive?The people aspect must,of course,be considered in the transition to clean energy.Automotive organizations,for example,must prepare their staff to work with new technologies as combustion engines are replaced by electric systems.We created the European Battery Academy to help identify the skills needed in the battery ecosystem The people aspect must,of course,be considered in the transition to clean energy.Executive Conversations88Capgemini Research InstituteNurturing the Future of WorkHow Organizations Empower Talentand how we can reskill and upskill employees through high-quality training.These are the challenges with the green transition:changing mindsets and,giving people a sense of security.Thats also about encouraging positive,productive social dialogue within organizations.Labor unions will play an important role in this transition.We see things going comparatively smoothly in organizations where there is strong social dialogue,focusing on solutions and helping people to transition into new roles.These are the challenges with the green transition:changing mindsets and,giving people a sense of security.How is Europes aging population reshaping the labor market?We have to take a new approach to seniors in the labor market.There are some countries where the number of people above 60 who are still working is low.If you take somebody at 50 years of age,he or she still has more than 10 years,perhaps 15 years to work.These later working years are still an important part of ones active working life.We cannot consign seniors either to lo, 2022TOP 100TREND BEHAVIORS:EXPLAINEDEMERGINGSAFE BETSPEAKINGON ITS WAY OUT1234These trends are exhibiting emerging behavior and are likely to grow in the next few months.These trends have been growing for a year and will continue to grow for another year.These trends have been growing for a year or more and have reached their peak.These trends are a year past their peak and exhibiting declining behavior.POPULARITY1TIME234CHOOSING THE TRENDSUsing November 2021 data,the trends selected exhibit continued or stable growth over the next year with 65-75%confidence.MethodologySAFE BETEMERGINGTREND KEY:CHECK OUR WORKDont just take our word for it.Heres a look at how accurate our Top 100 Trends of 2021 report was based on TY/LY search growth.Trend CheckTRENDTotal 2021 SearchesYoY GrowthCOTTAGECORENap DressPuff Sleeve Midi DressTiered Midi DressSEARCHES562K110K107K2423w%CITY SLICKERTortoise Shell Hair ClipSquare Toe HeelsPaperclip Chain15K361K60K44833%SAIL AWAYMens Striped T-ShirtMens Seersucker ShortsMens Crewneck126K20K95K72D9%MINI FASHIONISTAGirls Baggy JeansGirls Wide Leg JeansGirls Combat Boots39K7K46K1085TIVE ACIDSSalicylic AcidMandelic AcidPolyhydroxy Acid6.7M623K45K12%9%5%/WOMENS/ACCESSORIES/MENS/KIDS/BEAUTYFeatured in Top 100 Trends of 2021Womens FashionAccessoriesPlus SizeMens FashionKids FashionOverexposedDopamine DressingProportion PlayLeg RevealFemale GazeOnce Upon A TimeY2K ContinuedBridgerton 2.0God Is A WomanBack In Time1Apres SkiAll That GlittersPearlcoreFit For RoyaltySky High ShoesModern ClassicsStatement JewelryForest NymphHandmade TreasuresComfort First4New RomanticsClassic ComfortsSwim SeasonWardrobe StaplesCountry Club CoolShow OffLuxe FabricsSpecial OccasionSans Straps70s Flare7Varsity BluesNext Gen PrepGorpcoreBusiness CasualGrandpacoreCabincore70s StylesPattern PlayFunctional FitMr.Mood Board10Animal KingdomCottagecore KidsPrim and ProperPrep SchoolPicnic ReadyCraftcoreStyle HeroShine BrightEasy StylingMini Me13okdeonContentsBeauty90s or NothingCat Eye 2.0At-Home BlowoutPlump PoutFresh FaceGlow UpDIY TreatmentsCosmeceuticalsWhite Space OpportunityNouveau Nail Art16WellnessAnti-AnxietyAltered StateTime ManagementIntimate HealthPain ReliefIngestible WellnessSkin SolutionsNaturopathyHydration StationAnti-Inflammation19FoodGut FuelBalanced MealAnti-AllergyAdded EffectSocial Feed FoodThe Art of CharcuterieHealthy AlternativesTaste of TikTokElectrolyte BoostAlt Alcohol22Hobbies/InterestsRest and RelaxationWellness GuruNamasteEco WarriorTech EnthusiastFour Legged FamilyActive LifestyleAstrology ExpertMother To BeFestival Anticipation25HomeJapandiDinner Party PrepSculptural SpacesNatural FinishGrandmillennialTextured SurfacesFrom The EarthCottage DecorPerfect ImperfectionsViral Sensations28haileybieberEatingWellSweathouseWomensFashion2022 is all about confidence as skin-baring styles and elements of nostalgia take precedence.Women are looking to discover their unique sense of style and searching for a wardrobe that speaks to it.01-10OverexposedDopamine DressingProportion PlayLeg RevealFemale GazeOnce Upon A TimeY2K ContinuedBridgerton 2.0God Is A WomanBack In TimeRezek Studio01Less is more this year.Shortened hems,cut outs,and sheer fabrics amp up the sex appeal.Overexposed01(Searches for cut out mini dress are 263%,micro mini skirt are 32%,and lace turtleneck are 26%)04Step out of your comfort zone and dont be afraid to show some leg this year.Side slits are the sexy detail we didnt know we needed.