Recent events are impacting the energy markets with the present and future energy mix is evolving. These raise serious sustainability questions and puts the case forward for smart grids
Presentation hold on May 12, 2012 by Colette Lewiner
European Energy Markets: How Utilities Companies Can Improve PerformanceCapgemini
Conference – Paris, April 5 2012:
A view of the European energy
markets (Middle East events, Fukushima accident and economic downturn are impacting the energy markets in terms of security of supply and energy mix).
Plus a focus on sustainability issues and solutions to improve Utilities’
performance
Intervenant: Fatih birol Chief Economist - Director, Global Energy Economics
International Energy Agency
thèmes: shifts in the global energy system shifting, oil & gas, nuclear & renewables, world economy
Présentation lors de la convention SFEN du 4 avril 2013. Retrouvez la vidéo de la conférence à la fin de la présentation ou sur youtube.
http://youtu.be/Mbmp49ISwrA
Energy Sector Security Metrics - June 2013Andy Bochman
The US Congress, DHS and the man on the street say the grid is not secure enough. Well how do they know? How does anyone know how secure they are today? And how would one define how secure is secure enough? Unless we can begin to measure, we'll never be able to baseline, and never be able to road map to a demonstrable, more secure future state. So let's get started.
COVID-19 heightened chronic challenges within the global healthcare industry. It became a catalyst amid fierce competition and tight regulations for health providers and payers to focus on digital health, cybersecurity, patient data transparency, and a variety of customer-centric and operational enhancements. As a result, we found the 2022 trendline pointing to improvements in access and quality of care.
Healthcare challenges such as optimizing the cost of care while simultaneously enabling personalized interventions and consumer-friendly shoppable services are long-standing − but, historically, the industry has been slow to react.
Read our Top Trends 2022 report to examine the lingering ramifications of the pandemic, responses from medical and insurance organizations, and the worldwide impact of ever-changing regulatory standards and mandates.
European Energy Markets: How Utilities Companies Can Improve PerformanceCapgemini
Conference – Paris, April 5 2012:
A view of the European energy
markets (Middle East events, Fukushima accident and economic downturn are impacting the energy markets in terms of security of supply and energy mix).
Plus a focus on sustainability issues and solutions to improve Utilities’
performance
Intervenant: Fatih birol Chief Economist - Director, Global Energy Economics
International Energy Agency
thèmes: shifts in the global energy system shifting, oil & gas, nuclear & renewables, world economy
Présentation lors de la convention SFEN du 4 avril 2013. Retrouvez la vidéo de la conférence à la fin de la présentation ou sur youtube.
http://youtu.be/Mbmp49ISwrA
Energy Sector Security Metrics - June 2013Andy Bochman
The US Congress, DHS and the man on the street say the grid is not secure enough. Well how do they know? How does anyone know how secure they are today? And how would one define how secure is secure enough? Unless we can begin to measure, we'll never be able to baseline, and never be able to road map to a demonstrable, more secure future state. So let's get started.
COVID-19 heightened chronic challenges within the global healthcare industry. It became a catalyst amid fierce competition and tight regulations for health providers and payers to focus on digital health, cybersecurity, patient data transparency, and a variety of customer-centric and operational enhancements. As a result, we found the 2022 trendline pointing to improvements in access and quality of care.
Healthcare challenges such as optimizing the cost of care while simultaneously enabling personalized interventions and consumer-friendly shoppable services are long-standing − but, historically, the industry has been slow to react.
Read our Top Trends 2022 report to examine the lingering ramifications of the pandemic, responses from medical and insurance organizations, and the worldwide impact of ever-changing regulatory standards and mandates.
A combination of factors − the pandemic, catastrophic weather events, evolving policyholder expectations, and insurers’ drive for operational efficiency and future relevance − are sparking P&C industry changes.
In a post-COVID, new-normal environment, the most strategic insurers are building resilient, crisis-proof enterprises poised to take advantage of emerging and future business opportunities. They are leveraging advanced data analytics and novel technologies to assure agility and achieve positive revenue and customer satisfaction outcomes. Competitive advantage will hinge on accelerated digitalization and faster go-to-market. Therefore, win-win partnerships and embedded services with InsurTechs and other ecosystem players are critical.
Read Capgemini’s Top P&C Insurance Trends 2022 for a glimpse at the tactical and strategic initiatives carriers are undertaking to boost customer-centricity, product agility, intelligent processes, and an open ecosystem to ensure profitable growth and future-readiness.
This analysis provides an overview of the top trends in the commercial banking sector as they shift to technology high gear to boost client efficiency and battle a volatile, uncertain, competitive, and evolving landscape.
First, it was retail banking. Now, advanced technology is shifting to – and disrupting − the commercial banking space. Many commercial banks, known for paperwork, red tape, and branch dependency, were unprepared to support clients during their post-COVID-19 ramp-up. But now, the digital pivot to new mindsets, partnerships, and processes is in overdrive.
As commercial banks grapple with competition from FinTechs, BigTechs, and alternative lenders, their inability
to fulfill SME demands and pandemic after-shocks necessitates transformative process changes and a move
to experiential, sustainable, and inclusive banking models. We expect banks to strive to meet the demands
of corporate clients and SMEs by digitally transforming critical workflows and improving client experience.
Additionally, incremental process improvements in the middle and back-office that leverage intelligent
automation will keep the competition at bay because engaged clients are loyal.
Adopting newer methods to mine data and moving to as-a-Service models will prepare commercial banks
to flexibly respond to newcomers and find ways to co-exist through effective collaboration. The time has come for commercial banks to put transformation on the fast track as lending losses in wallet and market share could spill over to other functions!
How incumbents react and respond to 2022 trends could determine their relevancy and resiliency in the years ahead.
The Covid-19 pandemic necessitated the payments industry undergo a facelift, sparked by novel approaches from new-age players, fostered by industry consolidation, and customers’ demand for end-to-end experience. Crossing the threshold, the industry is entering a new era – Payments 4.X, where payments are embedded and invisible, and an enabling function to provide frictionless customer experience. As customers make a permanent shift to next-gen payment methods, Digital IDs are critical for a seamless payment experience. The B2B payments segment is witnessing rapid digitization. BigTechs, PayTechs, and industry newcomers are ready to jump in with newfangled solutions to help underserved small to medium-sized businesses (SMBs).
As incumbents struggle with profits, new-age firms are forging ahead to take the lead in the Payments 4.X era by riding the success of non-card products and services. The new era demands collaboration, platformification, and firms can unleash full market potential only by embracing API-based business models and open ecosystems. Data prowess and enhanced payment processing capabilities are inevitable to thrive ahead. The clock is ticking for banks and traditional payments firms because the competitive advantage is not guaranteed forever. As industry players seek economies of scale, consolidations loom, and non-banks explore new territories to threaten incumbents’ market share. While all these 2022 trends are at play, central bank digital currency (CBDC) is emerging globally and might open a new chapter in the current payments landscape.
As we slowly move out of the pandemic, financial services firms have learned the criticality of virtual engagement to business resilience. Wealth management firms will need capabilities to cater to new-age clients and deliver new-age services. This report aims to understand and analyze the top trends in the Wealth Management industry this year and beyond.
A year ago, our Top Trends in Wealth Management report emphasized how the pandemic sparked disruption and digital transformation and changing investor attitudes around Environmental, Social, and Corporate Governance (ESG) products. As we begin 2022, many of those trends continue to hold as COVID-19’s wide-reaching effects continue to influence the wealth management industry.
As wealth management (WM) firms supercharge their digital transformation journeys, investments in cybersecurity and human-centered design are becoming critical to building superior digital client experience (CX). Another holdover trend − sustainable investing – is gaining mainstream attention and generating increasingly sophisticated client demands. Data and analytics capabilities will become ever more essential for ESG scoring and personalized customer engagement. As large financial services firms refocus on their wealth management business while new digital players make industry strides, competition is becoming historically intense. Not surprisingly, client experience is the new battleground.
This analysis provides an overview of the top trends in the retail banking sector driven by the competition, digital transformation, and innovation led by retail banks exploring novel ways to create and retain value in evolving landscape.
COVID-19 caught banks off guard and shook legacy mindsets to the core. With 20/20 (2020) hindsight, firms are more aware, digitally resilient, and financially stable as they head into 2022. The trials of the past 18 months forced firms to shore up existing business and consider new models and revenue streams.
Customer-centricity remains at the top of most FS agendas and is a 2022 focal point. Banks will focus on achieving operational excellence as diligently as delivering superior CX. In 2022 and beyond, it will be paramount for FIs to explore and invest in new technologies to remain relevant and resilient.
Banking 4.X will arrive in full force in 2022 with platform-supported firms monetizing diverse ecosystem capabilities and aggressively harvesting data to create experiential customer journeys through intelligent and personalized engagements. The new era will compel future-focused banks to finally abandon legacy infrastructure and collaborate with third-party specialists to solidify their best-fit, long-term roles. Increasingly, open platforms will make banks invisible as banking becomes embedded into customer lifestyles. At the same time, banks will shed asset-heavy models and shift to the cloud for greater agility, speed to market, and faster innovation. The shift will act as a precursor to adopting new technologies on the horizon – 5G and Decentralized Finance.
The recent past was filled will extraordinary lessons for financial institutions. Now is the time to act on those learnings and move forward profitably.
While COVID-19 has sparked the demand for life insurance, it has also exposed the operating model vulnerabilities in distribution, servicing, and customer retention. In a post-COVID, new-normal environment, insurers need to enhance their capabilities around advanced data management and focus on seamless and secure data sharing to provide superior CX and hyper-personalized offerings. Accelerated digitalization and faster go-to-market are vital to remaining competitive, and win-win partnerships with ecosystems are critical in the journey.
Read our Top Life Insurance Trends 2022 to explore the tactical and strategic initiatives carriers undertake to acquire competencies around customer centricity, product agility, intelligent processes, and an open ecosystem to ensure profitable growth and future readiness.
Property & Casualty Insurance Top Trends 2021Capgemini
The Property & Casualty insurance landscape is evolving quickly with the changing risk landscape, entry of new players, and changing customer expectations. The ripple effects of COVID-19 on the P&C insurance industry and natural disasters such as forest fires have adversely impacted insurance firm books.
In this scenario, to ensure growth and future-readiness, the most strategic insurers strive to be ‘Inventive Insurers’ – assuming a customer-centric approach, deploying intelligent processes, practicing business resilience and go-to-market agility, and embracing an open ecosystem.
Read our Property & Casualty Insurance Top Trends 2021 report to explore the strategies insurers are adapting to remain competitive amidst the evolving business landscape and how they can explore new ways to enhance their profitability.
A combination of factors such as demographic changes, evolving consumer preferences, and desire to become operationally efficient were already spurring changes in the life insurance industry. Enter 2020 – the COVID-19 pandemic is having a significant impact on the industry.
At the peak of disruption, the focus was on ensuring business continuity, but new initiatives are cropping up to tackle the challenges as the industry is adapting to the new normal.
Furthermore, COVID-19 has acted as a catalyst, pushing life insurers to prioritize their efforts on improving customer centricity, developing go-to-market agility, making processes intelligent, building business resilience, and embracing the open ecosystem.
Read our Life Insurance Top Trends 2021 report to explore the strategies insurers are adopting to manage the changing market dynamics.
The uncertainty of 2020 is setting the global tone for the immediate future in the financial services industry. So it is no surprise banks are laser-focused on business resilience, emphasizing both financial and operational risks. The need to adapt quickly to new normal conditions through virtual customer engagement is clear.
Customer centricity continues to drive commercial banks’ solution designs. And, the pandemic compelled products that deliver immediate client value ‒ quick digital onboarding, seamless lending, and support for small and medium-sized enterprises (SMEs). The onus is now on banks to go to market more quickly, which requires the implementation of intelligent processes and integrating corporates’ enterprise resource planning (ERP) systems with banking workflows.
To achieve go-to-market agility, banks across the globe are investing in and collaborating with FinTechs. Many of these partnerships are focused on boosting digital lending and providing seamless support to anxious small-business clients in need of assurance.
With newfound impetus for FinTech collaboration, commercial banks have picked up their step on the path toward OpenX. COVID-19 made it evident that survival during turbulence is manageable through collaboration with ecosystem players.
Read our Top Trends in Commercial Banking 2021 report to explore the strategies banks are adapting to transform their businesses from a product-led, siloed model to an experiential and agile plan.
When we published the Top Trends in Wealth Management 2020, little did we foresee the pandemic that would sweep through the world and disrupt life as we knew it. Yet, when we reviewed last year’s trends, we found that many still hold and some have taken on even greater relevance. One such trend is sustainable investing, which had begun to gain prominence as investors became more aware of ESG considerations, and firms rolled out more sustainable investing offerings. Another trend that has accelerated in the post-COVID world is the importance of investing in omnichannel capabilities and technologies such as artificial intelligence (AI) to enhance personalization and advisor effectiveness. The pandemic has driven wealth management firms to accelerate their digital transformation journey, with some immediate focus areas being interactive client communications and digital advisor tools.
There is no denying that time is of the essence. Yes, budgets are tight, but the Open X ecosystem offers wealth management firms opportunities to reimagine their operating models and deliver excellent customer experience cost-effectively.
Top trends in Payments: 2020 highlighted the payments industry’s flux driven by new trends in technology adoption, innovative solutions, and changing consumer behavior. The pandemic has tested the digital mastery of players, who are already grappling with transition. Non-cash transactions are on a robust growth path, accelerated by increased adoption during COVID-19. Regulators are working to instill trust and address non-cash payments risk amid unparalleled growth as players collaborate to quell uncertainty. Regional initiatives, such as the P27 (Nordics real-time payments system) and the EPI (European Payments Initiative), are gaining traction in response to country-level fragmentation and competition.
Investment in emerging technologies is looked upon as an elixir to mitigate fraud, data-driven offerings are being considered for providing value-added propositions, and distributed ledger technology is in focus for digital currency solutions, efficiency enhancement, and cost gains. New players, such as retailers/merchants, are integrating payments into their value chains while technology giants are upscaling their financial services game by weaving offerings around payments as a center stage. Constrained by budgets, firms consider business models such as Platform-as-a-Service (PaaS) to provide cost-effective and superior customer experience.
A combination of factors, including demographic changes, evolving consumer preferences, and regulatory and compliance mandates, were already spurring change in the health insurance industry. Enter 2020 and the COVID-19 pandemic, which is having sweeping implications for the industry.
At the peak of disruption, the focus was on ensuring business continuity, but new initiatives are cropping up to tackle the challenges as the industry adapts to the new normal.
Furthermore, some changes are here to stay, and it will be prudent for the industry players to be resilient to the market shifts by being agile, improving member centricity, making processes intelligent, and embracing the open ecosystem.
Read our Health Insurance Top Trends 2021 report to explore the strategies insurers are adopting to manage the external pressures.
The banking industry’s resilience is being tested as banks navigate through a remarkable 2020 filled with uncertainties. The impact of COVID-19 has been about setting the tone for future operational models. Retail banks have shifted focus towards integrated risk management with a more holistic view of operational risks. Adapting to the new normal, banks have prioritized cost transformation while engaging customers virtually. Incumbents sought to be more responsible within fast-changing environmental conditions and ESG remained a critical focus.
To provide more experiential services, banks are leveraging techniques such as segment-of-one to hyper-personalize offerings while aiming to humanize digital channels for increased engagement. Banks are also revamping middle and back offices, going beyond the front end leveraging intelligent processes. Open X is enabling banks to play on their strengths and use the expertise of ecosystem players. Going forward, banks are poised to become an enhanced one-stop shop by providing consumers value-adding FS and non-FS experiences.
To acquire customers in cost-effective manner, retail banks are tapping value-based propositions ‒ such as POS financing and mortgage refinancing. Further, Banking-as-Service provides incumbents a way to provide their high-value offerings to other players. In preparation for the future, banks will be looking to improve their go-to-market agility by leveraging the benefits of cloud. This analysis outlines the top 10 trends in retail banking for 2021.
Explore how Capgemini’s Connected autonomous planning fine-tunes Consumer Products Company’s operations for manufacturing, transport, procurement, and virtually every other aspect of the supply-value network in a touchless, autonomous way.
Financial services is undergoing a paradigm shift that is forcing incumbent retail banks to rethink growth strategies as they struggle to remain relevant. Growing competition from BigTechs, FinTech firms, and challenger banks has added to the complexity created by increasingly stringent regulatory and compliance requirements. Customers now expect a seamless customer journey and personalized offerings because they have become accustomed to top-notch individualized service from GAFA giants Google, Apple, Facebook, and Amazon. The changing ecosystem offers established banks new, unexplored opportunities and encourages a transition beyond traditional products to meet the exacting requirements of today’s customers. Bank collaboration with FinTech and RegTech partners is becoming commonplace. Incumbents are exploring point-of-sale financing and unsecured consumer lending, while they also boost their digital channel competencies to reach a broader customer base. Banks are beginning to accept open APIs and are working with third-party specialists to create an open shared marketplace. Technological advancements such as AI are fueling efforts to evolve customer onboarding and touchpoint processes. Increasingly, banks are turning to design thinking methodology to understand the customer journey, extract deep insights, and develop a more refined user experience across the customer lifecycle.
Our analysis of the top retail banking trends for 2020 offers a glimpse into the fast-changing banking ecosystem and explores the tools and solutions being used to face new-age challenges.
Aspects of the life insurance industry have remained constant for years – and so have premiums. Traditional savings products have taken a huge hit in terms of attractiveness because low interest-rates prevail. Meanwhile, the risk landscape is shifting, and insurers need to align better with the emerging business environment, manage changing customer preferences, and improve operational efficiencies. Within today’s scenario, industry players are undertaking tactical and strategic shifts in attempts to manage unpredictable market dynamics. Insurers must develop alternative products to breathe new life into policies and leverage emerging technologies (artificial intelligence (AI), analytics, and blockchain) to improve efficiency, agility, flexibility, and customer-centricity.
Read Top Trends in Life Insurance: 2020 for a look at the innovative steps future-focused insurers are considering to meet industry challenges and opportunities.
The health insurance industry is evolving and undergoing significant changes. As the risk landscape shifts, insurers are working to improve operational efficiencies, meet evolving customer preferences, and align better with the changing business environment. Accordingly, payers must adapt and align business models and offerings. An incisive tactical approach is required to accommodate members’ needs and related emerging risks — medical, health, and environmental. Advanced technologies such as artificial intelligence, analytics, automation, and connected devices are enabling insurers to manage these changes proactively, partner with members, and help to prevent risks, all the while continuing to fulfill payer responsibilities.
Read Top Trends in Health Insurance: 2020 to learn which strategies insurers are adopting to navigate and align with today’s challenges.
Similar to other financial services domains, payments is evolving into an open ecosystem. The EU’s Payment Services Directive (PSD2) pioneered open banking by encouraging banks and established payments players to securely open the systems to foster competition, innovation, and more customer choices. In tandem with non-cash transaction growth, regulations are driving banks and payments firms to expand their array of payment methods and channels. Governments are encouraging financial inclusion by also promoting the adoption of non-cash payments. Increasingly, merchants and corporates seek to offer alternative payment systems because of widespread popularity among consumers. Alternative payments also enable merchants to provide real-time and cross-border payments to boost business efficiency.
Banks, payment firms, card firms, BigTechs, FinTechs, and other players are continuously developing new technology to cash in on market changes. However, data breaches and fraud continue to hinder innovation as firms devote countless resources each year to address security issues. Many governments are also designing new regulations to reduce ecosystem threats. All these measures are expected to make the current ecosystem much more secure and simple for players as well as customers.
Top Trends in Payments: 2020 explores and analyzes payments ecosystem initiatives and solutions for this year and beyond
The commercial banking industry faces daunting challenges. Operational costs continue to rise. Corporate clients seek convenience and personalized products and services. Cybersecurity is a major concern as more and more bank processes become digitalized. Compliance with wide-ranging open banking regulations is mandatory. The entry of BigTechs and other players is heating up competitive pressure. Therefore, it is essential for banks to transform and adapt to the changing business environment.
Read our Top Trends in Commercial Banking: 2020 report for analyses of the initiatives, new solutions, and trends expected to shape the commercial banking ecosystem in 2020 and beyond.
A combination of factors − the pandemic, catastrophic weather events, evolving policyholder expectations, and insurers’ drive for operational efficiency and future relevance − are sparking P&C industry changes.
In a post-COVID, new-normal environment, the most strategic insurers are building resilient, crisis-proof enterprises poised to take advantage of emerging and future business opportunities. They are leveraging advanced data analytics and novel technologies to assure agility and achieve positive revenue and customer satisfaction outcomes. Competitive advantage will hinge on accelerated digitalization and faster go-to-market. Therefore, win-win partnerships and embedded services with InsurTechs and other ecosystem players are critical.
Read Capgemini’s Top P&C Insurance Trends 2022 for a glimpse at the tactical and strategic initiatives carriers are undertaking to boost customer-centricity, product agility, intelligent processes, and an open ecosystem to ensure profitable growth and future-readiness.
This analysis provides an overview of the top trends in the commercial banking sector as they shift to technology high gear to boost client efficiency and battle a volatile, uncertain, competitive, and evolving landscape.
First, it was retail banking. Now, advanced technology is shifting to – and disrupting − the commercial banking space. Many commercial banks, known for paperwork, red tape, and branch dependency, were unprepared to support clients during their post-COVID-19 ramp-up. But now, the digital pivot to new mindsets, partnerships, and processes is in overdrive.
As commercial banks grapple with competition from FinTechs, BigTechs, and alternative lenders, their inability
to fulfill SME demands and pandemic after-shocks necessitates transformative process changes and a move
to experiential, sustainable, and inclusive banking models. We expect banks to strive to meet the demands
of corporate clients and SMEs by digitally transforming critical workflows and improving client experience.
Additionally, incremental process improvements in the middle and back-office that leverage intelligent
automation will keep the competition at bay because engaged clients are loyal.
Adopting newer methods to mine data and moving to as-a-Service models will prepare commercial banks
to flexibly respond to newcomers and find ways to co-exist through effective collaboration. The time has come for commercial banks to put transformation on the fast track as lending losses in wallet and market share could spill over to other functions!
How incumbents react and respond to 2022 trends could determine their relevancy and resiliency in the years ahead.
The Covid-19 pandemic necessitated the payments industry undergo a facelift, sparked by novel approaches from new-age players, fostered by industry consolidation, and customers’ demand for end-to-end experience. Crossing the threshold, the industry is entering a new era – Payments 4.X, where payments are embedded and invisible, and an enabling function to provide frictionless customer experience. As customers make a permanent shift to next-gen payment methods, Digital IDs are critical for a seamless payment experience. The B2B payments segment is witnessing rapid digitization. BigTechs, PayTechs, and industry newcomers are ready to jump in with newfangled solutions to help underserved small to medium-sized businesses (SMBs).
As incumbents struggle with profits, new-age firms are forging ahead to take the lead in the Payments 4.X era by riding the success of non-card products and services. The new era demands collaboration, platformification, and firms can unleash full market potential only by embracing API-based business models and open ecosystems. Data prowess and enhanced payment processing capabilities are inevitable to thrive ahead. The clock is ticking for banks and traditional payments firms because the competitive advantage is not guaranteed forever. As industry players seek economies of scale, consolidations loom, and non-banks explore new territories to threaten incumbents’ market share. While all these 2022 trends are at play, central bank digital currency (CBDC) is emerging globally and might open a new chapter in the current payments landscape.
As we slowly move out of the pandemic, financial services firms have learned the criticality of virtual engagement to business resilience. Wealth management firms will need capabilities to cater to new-age clients and deliver new-age services. This report aims to understand and analyze the top trends in the Wealth Management industry this year and beyond.
A year ago, our Top Trends in Wealth Management report emphasized how the pandemic sparked disruption and digital transformation and changing investor attitudes around Environmental, Social, and Corporate Governance (ESG) products. As we begin 2022, many of those trends continue to hold as COVID-19’s wide-reaching effects continue to influence the wealth management industry.
As wealth management (WM) firms supercharge their digital transformation journeys, investments in cybersecurity and human-centered design are becoming critical to building superior digital client experience (CX). Another holdover trend − sustainable investing – is gaining mainstream attention and generating increasingly sophisticated client demands. Data and analytics capabilities will become ever more essential for ESG scoring and personalized customer engagement. As large financial services firms refocus on their wealth management business while new digital players make industry strides, competition is becoming historically intense. Not surprisingly, client experience is the new battleground.
This analysis provides an overview of the top trends in the retail banking sector driven by the competition, digital transformation, and innovation led by retail banks exploring novel ways to create and retain value in evolving landscape.
COVID-19 caught banks off guard and shook legacy mindsets to the core. With 20/20 (2020) hindsight, firms are more aware, digitally resilient, and financially stable as they head into 2022. The trials of the past 18 months forced firms to shore up existing business and consider new models and revenue streams.
Customer-centricity remains at the top of most FS agendas and is a 2022 focal point. Banks will focus on achieving operational excellence as diligently as delivering superior CX. In 2022 and beyond, it will be paramount for FIs to explore and invest in new technologies to remain relevant and resilient.
Banking 4.X will arrive in full force in 2022 with platform-supported firms monetizing diverse ecosystem capabilities and aggressively harvesting data to create experiential customer journeys through intelligent and personalized engagements. The new era will compel future-focused banks to finally abandon legacy infrastructure and collaborate with third-party specialists to solidify their best-fit, long-term roles. Increasingly, open platforms will make banks invisible as banking becomes embedded into customer lifestyles. At the same time, banks will shed asset-heavy models and shift to the cloud for greater agility, speed to market, and faster innovation. The shift will act as a precursor to adopting new technologies on the horizon – 5G and Decentralized Finance.
The recent past was filled will extraordinary lessons for financial institutions. Now is the time to act on those learnings and move forward profitably.
While COVID-19 has sparked the demand for life insurance, it has also exposed the operating model vulnerabilities in distribution, servicing, and customer retention. In a post-COVID, new-normal environment, insurers need to enhance their capabilities around advanced data management and focus on seamless and secure data sharing to provide superior CX and hyper-personalized offerings. Accelerated digitalization and faster go-to-market are vital to remaining competitive, and win-win partnerships with ecosystems are critical in the journey.
Read our Top Life Insurance Trends 2022 to explore the tactical and strategic initiatives carriers undertake to acquire competencies around customer centricity, product agility, intelligent processes, and an open ecosystem to ensure profitable growth and future readiness.
Property & Casualty Insurance Top Trends 2021Capgemini
The Property & Casualty insurance landscape is evolving quickly with the changing risk landscape, entry of new players, and changing customer expectations. The ripple effects of COVID-19 on the P&C insurance industry and natural disasters such as forest fires have adversely impacted insurance firm books.
In this scenario, to ensure growth and future-readiness, the most strategic insurers strive to be ‘Inventive Insurers’ – assuming a customer-centric approach, deploying intelligent processes, practicing business resilience and go-to-market agility, and embracing an open ecosystem.
Read our Property & Casualty Insurance Top Trends 2021 report to explore the strategies insurers are adapting to remain competitive amidst the evolving business landscape and how they can explore new ways to enhance their profitability.
A combination of factors such as demographic changes, evolving consumer preferences, and desire to become operationally efficient were already spurring changes in the life insurance industry. Enter 2020 – the COVID-19 pandemic is having a significant impact on the industry.
At the peak of disruption, the focus was on ensuring business continuity, but new initiatives are cropping up to tackle the challenges as the industry is adapting to the new normal.
Furthermore, COVID-19 has acted as a catalyst, pushing life insurers to prioritize their efforts on improving customer centricity, developing go-to-market agility, making processes intelligent, building business resilience, and embracing the open ecosystem.
Read our Life Insurance Top Trends 2021 report to explore the strategies insurers are adopting to manage the changing market dynamics.
The uncertainty of 2020 is setting the global tone for the immediate future in the financial services industry. So it is no surprise banks are laser-focused on business resilience, emphasizing both financial and operational risks. The need to adapt quickly to new normal conditions through virtual customer engagement is clear.
Customer centricity continues to drive commercial banks’ solution designs. And, the pandemic compelled products that deliver immediate client value ‒ quick digital onboarding, seamless lending, and support for small and medium-sized enterprises (SMEs). The onus is now on banks to go to market more quickly, which requires the implementation of intelligent processes and integrating corporates’ enterprise resource planning (ERP) systems with banking workflows.
To achieve go-to-market agility, banks across the globe are investing in and collaborating with FinTechs. Many of these partnerships are focused on boosting digital lending and providing seamless support to anxious small-business clients in need of assurance.
With newfound impetus for FinTech collaboration, commercial banks have picked up their step on the path toward OpenX. COVID-19 made it evident that survival during turbulence is manageable through collaboration with ecosystem players.
Read our Top Trends in Commercial Banking 2021 report to explore the strategies banks are adapting to transform their businesses from a product-led, siloed model to an experiential and agile plan.
When we published the Top Trends in Wealth Management 2020, little did we foresee the pandemic that would sweep through the world and disrupt life as we knew it. Yet, when we reviewed last year’s trends, we found that many still hold and some have taken on even greater relevance. One such trend is sustainable investing, which had begun to gain prominence as investors became more aware of ESG considerations, and firms rolled out more sustainable investing offerings. Another trend that has accelerated in the post-COVID world is the importance of investing in omnichannel capabilities and technologies such as artificial intelligence (AI) to enhance personalization and advisor effectiveness. The pandemic has driven wealth management firms to accelerate their digital transformation journey, with some immediate focus areas being interactive client communications and digital advisor tools.
There is no denying that time is of the essence. Yes, budgets are tight, but the Open X ecosystem offers wealth management firms opportunities to reimagine their operating models and deliver excellent customer experience cost-effectively.
Top trends in Payments: 2020 highlighted the payments industry’s flux driven by new trends in technology adoption, innovative solutions, and changing consumer behavior. The pandemic has tested the digital mastery of players, who are already grappling with transition. Non-cash transactions are on a robust growth path, accelerated by increased adoption during COVID-19. Regulators are working to instill trust and address non-cash payments risk amid unparalleled growth as players collaborate to quell uncertainty. Regional initiatives, such as the P27 (Nordics real-time payments system) and the EPI (European Payments Initiative), are gaining traction in response to country-level fragmentation and competition.
Investment in emerging technologies is looked upon as an elixir to mitigate fraud, data-driven offerings are being considered for providing value-added propositions, and distributed ledger technology is in focus for digital currency solutions, efficiency enhancement, and cost gains. New players, such as retailers/merchants, are integrating payments into their value chains while technology giants are upscaling their financial services game by weaving offerings around payments as a center stage. Constrained by budgets, firms consider business models such as Platform-as-a-Service (PaaS) to provide cost-effective and superior customer experience.
A combination of factors, including demographic changes, evolving consumer preferences, and regulatory and compliance mandates, were already spurring change in the health insurance industry. Enter 2020 and the COVID-19 pandemic, which is having sweeping implications for the industry.
At the peak of disruption, the focus was on ensuring business continuity, but new initiatives are cropping up to tackle the challenges as the industry adapts to the new normal.
Furthermore, some changes are here to stay, and it will be prudent for the industry players to be resilient to the market shifts by being agile, improving member centricity, making processes intelligent, and embracing the open ecosystem.
Read our Health Insurance Top Trends 2021 report to explore the strategies insurers are adopting to manage the external pressures.
The banking industry’s resilience is being tested as banks navigate through a remarkable 2020 filled with uncertainties. The impact of COVID-19 has been about setting the tone for future operational models. Retail banks have shifted focus towards integrated risk management with a more holistic view of operational risks. Adapting to the new normal, banks have prioritized cost transformation while engaging customers virtually. Incumbents sought to be more responsible within fast-changing environmental conditions and ESG remained a critical focus.
To provide more experiential services, banks are leveraging techniques such as segment-of-one to hyper-personalize offerings while aiming to humanize digital channels for increased engagement. Banks are also revamping middle and back offices, going beyond the front end leveraging intelligent processes. Open X is enabling banks to play on their strengths and use the expertise of ecosystem players. Going forward, banks are poised to become an enhanced one-stop shop by providing consumers value-adding FS and non-FS experiences.
To acquire customers in cost-effective manner, retail banks are tapping value-based propositions ‒ such as POS financing and mortgage refinancing. Further, Banking-as-Service provides incumbents a way to provide their high-value offerings to other players. In preparation for the future, banks will be looking to improve their go-to-market agility by leveraging the benefits of cloud. This analysis outlines the top 10 trends in retail banking for 2021.
Explore how Capgemini’s Connected autonomous planning fine-tunes Consumer Products Company’s operations for manufacturing, transport, procurement, and virtually every other aspect of the supply-value network in a touchless, autonomous way.
Financial services is undergoing a paradigm shift that is forcing incumbent retail banks to rethink growth strategies as they struggle to remain relevant. Growing competition from BigTechs, FinTech firms, and challenger banks has added to the complexity created by increasingly stringent regulatory and compliance requirements. Customers now expect a seamless customer journey and personalized offerings because they have become accustomed to top-notch individualized service from GAFA giants Google, Apple, Facebook, and Amazon. The changing ecosystem offers established banks new, unexplored opportunities and encourages a transition beyond traditional products to meet the exacting requirements of today’s customers. Bank collaboration with FinTech and RegTech partners is becoming commonplace. Incumbents are exploring point-of-sale financing and unsecured consumer lending, while they also boost their digital channel competencies to reach a broader customer base. Banks are beginning to accept open APIs and are working with third-party specialists to create an open shared marketplace. Technological advancements such as AI are fueling efforts to evolve customer onboarding and touchpoint processes. Increasingly, banks are turning to design thinking methodology to understand the customer journey, extract deep insights, and develop a more refined user experience across the customer lifecycle.
Our analysis of the top retail banking trends for 2020 offers a glimpse into the fast-changing banking ecosystem and explores the tools and solutions being used to face new-age challenges.
Aspects of the life insurance industry have remained constant for years – and so have premiums. Traditional savings products have taken a huge hit in terms of attractiveness because low interest-rates prevail. Meanwhile, the risk landscape is shifting, and insurers need to align better with the emerging business environment, manage changing customer preferences, and improve operational efficiencies. Within today’s scenario, industry players are undertaking tactical and strategic shifts in attempts to manage unpredictable market dynamics. Insurers must develop alternative products to breathe new life into policies and leverage emerging technologies (artificial intelligence (AI), analytics, and blockchain) to improve efficiency, agility, flexibility, and customer-centricity.
Read Top Trends in Life Insurance: 2020 for a look at the innovative steps future-focused insurers are considering to meet industry challenges and opportunities.
The health insurance industry is evolving and undergoing significant changes. As the risk landscape shifts, insurers are working to improve operational efficiencies, meet evolving customer preferences, and align better with the changing business environment. Accordingly, payers must adapt and align business models and offerings. An incisive tactical approach is required to accommodate members’ needs and related emerging risks — medical, health, and environmental. Advanced technologies such as artificial intelligence, analytics, automation, and connected devices are enabling insurers to manage these changes proactively, partner with members, and help to prevent risks, all the while continuing to fulfill payer responsibilities.
Read Top Trends in Health Insurance: 2020 to learn which strategies insurers are adopting to navigate and align with today’s challenges.
Similar to other financial services domains, payments is evolving into an open ecosystem. The EU’s Payment Services Directive (PSD2) pioneered open banking by encouraging banks and established payments players to securely open the systems to foster competition, innovation, and more customer choices. In tandem with non-cash transaction growth, regulations are driving banks and payments firms to expand their array of payment methods and channels. Governments are encouraging financial inclusion by also promoting the adoption of non-cash payments. Increasingly, merchants and corporates seek to offer alternative payment systems because of widespread popularity among consumers. Alternative payments also enable merchants to provide real-time and cross-border payments to boost business efficiency.
Banks, payment firms, card firms, BigTechs, FinTechs, and other players are continuously developing new technology to cash in on market changes. However, data breaches and fraud continue to hinder innovation as firms devote countless resources each year to address security issues. Many governments are also designing new regulations to reduce ecosystem threats. All these measures are expected to make the current ecosystem much more secure and simple for players as well as customers.
Top Trends in Payments: 2020 explores and analyzes payments ecosystem initiatives and solutions for this year and beyond
The commercial banking industry faces daunting challenges. Operational costs continue to rise. Corporate clients seek convenience and personalized products and services. Cybersecurity is a major concern as more and more bank processes become digitalized. Compliance with wide-ranging open banking regulations is mandatory. The entry of BigTechs and other players is heating up competitive pressure. Therefore, it is essential for banks to transform and adapt to the changing business environment.
Read our Top Trends in Commercial Banking: 2020 report for analyses of the initiatives, new solutions, and trends expected to shape the commercial banking ecosystem in 2020 and beyond.
Slack (or Teams) Automation for Bonterra Impact Management (fka Social Soluti...Jeffrey Haguewood
Sidekick Solutions uses Bonterra Impact Management (fka Social Solutions Apricot) and automation solutions to integrate data for business workflows.
We believe integration and automation are essential to user experience and the promise of efficient work through technology. Automation is the critical ingredient to realizing that full vision. We develop integration products and services for Bonterra Case Management software to support the deployment of automations for a variety of use cases.
This video focuses on the notifications, alerts, and approval requests using Slack for Bonterra Impact Management. The solutions covered in this webinar can also be deployed for Microsoft Teams.
Interested in deploying notification automations for Bonterra Impact Management? Contact us at sales@sidekicksolutionsllc.com to discuss next steps.
GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...James Anderson
Effective Application Security in Software Delivery lifecycle using Deployment Firewall and DBOM
The modern software delivery process (or the CI/CD process) includes many tools, distributed teams, open-source code, and cloud platforms. Constant focus on speed to release software to market, along with the traditional slow and manual security checks has caused gaps in continuous security as an important piece in the software supply chain. Today organizations feel more susceptible to external and internal cyber threats due to the vast attack surface in their applications supply chain and the lack of end-to-end governance and risk management.
The software team must secure its software delivery process to avoid vulnerability and security breaches. This needs to be achieved with existing tool chains and without extensive rework of the delivery processes. This talk will present strategies and techniques for providing visibility into the true risk of the existing vulnerabilities, preventing the introduction of security issues in the software, resolving vulnerabilities in production environments quickly, and capturing the deployment bill of materials (DBOM).
Speakers:
Bob Boule
Robert Boule is a technology enthusiast with PASSION for technology and making things work along with a knack for helping others understand how things work. He comes with around 20 years of solution engineering experience in application security, software continuous delivery, and SaaS platforms. He is known for his dynamic presentations in CI/CD and application security integrated in software delivery lifecycle.
Gopinath Rebala
Gopinath Rebala is the CTO of OpsMx, where he has overall responsibility for the machine learning and data processing architectures for Secure Software Delivery. Gopi also has a strong connection with our customers, leading design and architecture for strategic implementations. Gopi is a frequent speaker and well-known leader in continuous delivery and integrating security into software delivery.
Essentials of Automations: Optimizing FME Workflows with ParametersSafe Software
Are you looking to streamline your workflows and boost your projects’ efficiency? Do you find yourself searching for ways to add flexibility and control over your FME workflows? If so, you’re in the right place.
Join us for an insightful dive into the world of FME parameters, a critical element in optimizing workflow efficiency. This webinar marks the beginning of our three-part “Essentials of Automation” series. This first webinar is designed to equip you with the knowledge and skills to utilize parameters effectively: enhancing the flexibility, maintainability, and user control of your FME projects.
Here’s what you’ll gain:
- Essentials of FME Parameters: Understand the pivotal role of parameters, including Reader/Writer, Transformer, User, and FME Flow categories. Discover how they are the key to unlocking automation and optimization within your workflows.
- Practical Applications in FME Form: Delve into key user parameter types including choice, connections, and file URLs. Allow users to control how a workflow runs, making your workflows more reusable. Learn to import values and deliver the best user experience for your workflows while enhancing accuracy.
- Optimization Strategies in FME Flow: Explore the creation and strategic deployment of parameters in FME Flow, including the use of deployment and geometry parameters, to maximize workflow efficiency.
- Pro Tips for Success: Gain insights on parameterizing connections and leveraging new features like Conditional Visibility for clarity and simplicity.
We’ll wrap up with a glimpse into future webinars, followed by a Q&A session to address your specific questions surrounding this topic.
Don’t miss this opportunity to elevate your FME expertise and drive your projects to new heights of efficiency.
Neuro-symbolic is not enough, we need neuro-*semantic*Frank van Harmelen
Neuro-symbolic (NeSy) AI is on the rise. However, simply machine learning on just any symbolic structure is not sufficient to really harvest the gains of NeSy. These will only be gained when the symbolic structures have an actual semantics. I give an operational definition of semantics as “predictable inference”.
All of this illustrated with link prediction over knowledge graphs, but the argument is general.
Connector Corner: Automate dynamic content and events by pushing a buttonDianaGray10
Here is something new! In our next Connector Corner webinar, we will demonstrate how you can use a single workflow to:
Create a campaign using Mailchimp with merge tags/fields
Send an interactive Slack channel message (using buttons)
Have the message received by managers and peers along with a test email for review
But there’s more:
In a second workflow supporting the same use case, you’ll see:
Your campaign sent to target colleagues for approval
If the “Approve” button is clicked, a Jira/Zendesk ticket is created for the marketing design team
But—if the “Reject” button is pushed, colleagues will be alerted via Slack message
Join us to learn more about this new, human-in-the-loop capability, brought to you by Integration Service connectors.
And...
Speakers:
Akshay Agnihotri, Product Manager
Charlie Greenberg, Host
Key Trends Shaping the Future of Infrastructure.pdfCheryl Hung
Keynote at DIGIT West Expo, Glasgow on 29 May 2024.
Cheryl Hung, ochery.com
Sr Director, Infrastructure Ecosystem, Arm.
The key trends across hardware, cloud and open-source; exploring how these areas are likely to mature and develop over the short and long-term, and then considering how organisations can position themselves to adapt and thrive.
GraphRAG is All You need? LLM & Knowledge GraphGuy Korland
Guy Korland, CEO and Co-founder of FalkorDB, will review two articles on the integration of language models with knowledge graphs.
1. Unifying Large Language Models and Knowledge Graphs: A Roadmap.
https://arxiv.org/abs/2306.08302
2. Microsoft Research's GraphRAG paper and a review paper on various uses of knowledge graphs:
https://www.microsoft.com/en-us/research/blog/graphrag-unlocking-llm-discovery-on-narrative-private-data/
UiPath Test Automation using UiPath Test Suite series, part 3DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 3. In this session, we will cover desktop automation along with UI automation.
Topics covered:
UI automation Introduction,
UI automation Sample
Desktop automation flow
Pradeep Chinnala, Senior Consultant Automation Developer @WonderBotz and UiPath MVP
Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
Securing your Kubernetes cluster_ a step-by-step guide to success !KatiaHIMEUR1
Today, after several years of existence, an extremely active community and an ultra-dynamic ecosystem, Kubernetes has established itself as the de facto standard in container orchestration. Thanks to a wide range of managed services, it has never been so easy to set up a ready-to-use Kubernetes cluster.
However, this ease of use means that the subject of security in Kubernetes is often left for later, or even neglected. This exposes companies to significant risks.
In this talk, I'll show you step-by-step how to secure your Kubernetes cluster for greater peace of mind and reliability.
2. An overview of the European energy markets
Recent events are impacting the energy markets
• Middle-East political tensions
• Fukushima accident consequences
• Economic downturn
Present and future energy mix is evolving
• Renewables
• Gas
• Energy mix costs
Sustainability questions
• EU 2020 objectives
• Demand Response
Smart grids
Conclusion
| Energy, Utilities & Chemicals Global Sector
2
3. The rising political tensions in Iran are particularly worrying
for global oil supply
Italy
After China, the EU is the largest importer of Iranian oil Iran’s oil exports (Jan to June 2011)
(about 20%) % of each 13%
In response to the Iran’s nuclear program negotiations country’s total 7%
oil imports Others Other EU
failure, the US and Europe decided sanctions against Iran, Jan to June 2011 Spain
who, in return, threatened to close the Strait of Hormuz: 12% 5%
China 6% 13%
• Strengthening of the US military presence in the Gulf
• Oil embargo from the EU (due to start in July) which should 11%
hit 450,000 to 550,000 barrels a day of Iranian oil exports Total Japan
Iranian oil
But Iran banned crude oil supply to France, the UK and South Africa 22% exports 14%
10%
the EU right away 2.3 m
In addition, Japan, South Korea, Taiwan and India could 25% bl/d
reduce their purchases (up to 250,000 bl/d). In total,
Source: Financial Times
between 25% and 35% of Iran’s oil exports could be India
Turkey 13%
impacted 4% 11%
However, Saudi Arabia is increasing significantly its 51% 7%
production to curb price 10%
South Korea
Average daily oil flow
10%
through the Strait of
Hormuz (2011) 14 crude oil tankers
Primary factors driving demand are
Almost 17 million barrels Source: Financial Times economic growth and increased
35% 20%
requirements in the developing world
Iran political situations may place global
of all seaborne of oil traded
production and transportation at risk
traded oil worldwide
| Energy, Utilities & Chemicals Global Sector
3
4. Oil prices in European currencies are at their highest
Oil prices forecasts uncertainty is increased by In Euros, the crude oil spot price is at its highest
speculation: each barrel traded on the physical There is currently a $20 spread between WTI and Brent,
market is traded 35 times on the financial markets a the consequence of a localized logistic phenomenon
There is some consumption/price elasticity at Cushing, Oklahoma, where WTI is priced
High present oil prices are linked to tensions in President Obama is supporting a new pipeline
Middle East and Iran (Keystone XL)
Oil prices Crude oil spot – Brent in US dollars and in Euros Crude oil spot – Brent vs. WTI
130
123.04
Brent
120
110
101.53
100
WTI
90
80
70
May 2011 Sept 2011 Jan 2012 Apr 2012
Source: Focus Gaz, February 17, 2012 Source: Ycharts
Source: France inflation
High oil prices impact economic growth (EU’s oil import costs up 44% in 2011
compared to 2010 and net oil import bill estimated to account for 2.8% EU’s GDP in
2012 compared to 1.7% from 2000 to 2010) and trade exchanges balance
| Energy, Utilities & Chemicals Global Sector
4
5. Gas is not a global market.
Very different regional pricing systems
Gas spot prices Gas prices evolution
50 100
In €/MWh ($4.4/MBtu=€10.6 /MWh)
DE - Import price NL - TTF
BE - Zeebrugge UK - NBP
40 DE - NCG FR - PEG Nord 80 Long-term contracts price
Brent month ahead Spot price
Gas prices [€/MWh]
30 60
Brent price [€/bl]
20 40
10 20
0 0
Europe versus US gas prices
Source: Gas Exchanges web sites, SG Commodities Research, BMWI – Capgemini analysis, EEMO13
US spot prices could go up on the mid-term triggered by the new EPA
(Environment Protection Agency) regulation on air pollution (Cross State Air
Pollution Rule) that could lead to 20% of US coal-fired plants phase-out and their
replacement by gas
Beginning of 2012, Gazprom has agreed to reduce by 10% the price of its
long-term contracts to Europe
US spot gas prices are only one third of long-term
European gas prices. For how long?
Source: Focus Gaz January 2012
| Energy, Utilities & Chemicals Global Sector
5
6. Post-Fukushima nuclear reactors’ market: new builds mainly
in Asia, Russia and Middle East
Worldwide, 435 reactors are in operation, 62 under construction and 489 planned or proposed
(April 2012, World Nuclear Association)
Overview of existing nuclear plants and project capacities (as of April 2012)
The final number of planned or proposed 0 50,000 100,000 150,000 200,000 250,000
reactors is difficult to assess. However, two China MWe
points are clear: USA
Russia
• Provided reactors are run safely, the consequences India
of the Fukushima accident should be less Japan
France
important than viewed just after the accident
South Korea
• The proportion of new, safer “Generation 3 United Kingdom
reactor” builds will increase Ukraine
Canada
It is worthwhile mentioning that: UAE Operable
Saudi Arabia Under construction
• In the US: Germany
South Africa Planned
TVA has decided to complete Bellefonte 1 reactor
Vietnam Proposed
The Nuclear Regulatory Commission has certified the Turkey
design of Westinghouse Electric Co.'s AP1000 reactor Sweden
Southern Company is building 2 new nuclear plants in Spain
Vogtle, Georgia Finland
Czech Republic
• Finland announced a new build, the first Brazil
announcement of a new site anywhere in the world Switzerland
since the Fukushima accident Source: World Nuclear Association
• Russian Rosenergoatom has received a license for The vast majority of new constructions and
building the Kaliningrad plant existing plants in operation should continue with
• No.1 nuclear unit in Zhejiang Sanmen (China) has some delays and more safety focus.
restarted the infrastructure construction project The IEA* forecasts that nuclear output will rise by
• Bulgaria has decided to build a 7th reactor at more than 70% over the period to 2035
Kozloduy *IEA: International Energy Agency, World Energy Outlook 2011
| Energy, Utilities & Chemicals Global Sector
6
7. There is some elasticity between the economic situation and
the energy consumption
EU electricity and gas consumption
Evolution of electricity and gas consumption (M/M-12) non-weather-adjusted
(non-weather-adjusted)
+8%
Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12
-6% -11%
5,599 5,010 5,708
5,098 Electricity
+4.1% -2.7% 9%
-4.7% Gas 14%
3,265 1%
3,294 3,136 -1% 0% 0%
3,177
-3% -2% -2% -3%
-4% -5%
-2% -10%
-4% -6% -4%
-7%
-10%
-12% -12%
-16% -14%
Electricity Gas
2008 2009 2010 2011 -22%
Source: SG Energy Pulse – Capgemini analysis, EEMO13
Source: ENTSO-E, BP – Capgemini analysis, EEMO13
In 2009, electricity and gas consumption dropped in Europe (-4.7% and -6.1% respectively) due to the crisis, in 2010,
they increased again (+4.1% and +7.0%) thanks to the economic recovery and colder than average winter
temperatures. Wholesale electricity and gas prices followed the same trend.
In 2011, European electricity and gas consumption decreased respectively by 2.7%* and 10.7%**, mainly due to a
mild weather. In France, electricity consumption decreased by 6.8% (weather-adjusted: +0.8%) and gas
consumption by 13.4% (weather-adjusted: -1.9%).
A second economic slowdown would impact negatively the energy consumption and prices
* Société Générale Energy Pulse (Focus group representing 63% of European electricity consumption)
**Eurogas
| Energy, Utilities & Chemicals Global Sector
7
8. An overview of the European energy markets
Recent events are impacting the energy markets
• Middle-East political tensions
• Fukushima accident consequences
• Economic downturn
Present and future energy mix is evolving
• Renewables
• Gas
• Energy mix costs
Sustainability questions
• EU 2020 objectives
• Demand Response
Smart grids
Conclusion
| Energy, Utilities & Chemicals Global Sector
8
9. European energy mix evolution
2010 and 2025 electricity mix (as of June 2011)
Energy mix should evolve towards
100%
more gas, renewables and coal (in
certain countries) 90%
Shale gas development is changing 80%
the picture
In the new IEA GAS* scenario, gas 70%
Solar + Biomass
share of primary energy consumption Wind
60%
reaches 25% in 2035 at a global level Hydro
Other f ossil
(more than coal, slightly less than oil) Gas
50%
but leads to a +3.5°C global Lignite + Coal
temperature increase (compared to Nuclear
40%
the +2°C objective) 2010 mix: lef t-
hand side bar
30%
In 2011, the IEA** has examined a Low
2025 mix: right-
hand side bar
Nuclear Scenario: 20%
• No new nuclear plant is built in OECD
countries 10%
• Non-OECD countries build only half of
the projected nuclear plants 0%
BE BG CH CZ DE ES FI FR UK HU IT LT NL PL RO SE SI SK
• The operating lifespan of existing
Source: ENTSO-E – Capgemini analysis and estimations, EEMO13
nuclear plants is limited to 45 years
However, today’s nuclear energy The energy mix evolution could result in:
development forecast is more • Higher costs (renewables development)
optimistic • Higher temperature increase (more fossil fuels)
*GAS: Golden Age of Gas, International Energy Agency • Lower energy independency
**World Energy Outlook 2011, IEA
| Energy, Utilities & Chemicals Global Sector
9
10. Renewable energies have continued their quick development.
For how long?
As of May 2011, 10% of the European Growth rate of renewable energy sources
generation plants under construction 110% 2008
Solar PV Top 3 countries ranked by:
are from renewable energy sources (vs. Capacity Growth (abs.) Growth (%)
100% Capacity installed* Growth** (absolute)
7% in 2009) DE DE SK
1. DE 1. SK
In 2011, despite a drop of the new EU 90%
2005
IT CZ FR
2. ES 2. FR
CZ FR SI
wind installed capacity due to the 3. IT 3. SI
financial crisis and tougher regulations, 80% 2010
* Volume for wind, small hydro, geothermal and solar PV
wind power covered over 5% of EU’s
in MW and for biogas and biomass in TWh
** Relative growth additionally displayed for solar PV and
70% wind
consumption (172 TWh)
Many governments have or are launching
Growth (%)
60%
2007 2009
large offshore wind programs
• September 2010: 300 MW offshore wind 50%
2006
farm inaugurated in the UK Wind
40%
• France: part of the 3,000 MW tender Capacity Growth (abs.) Growth (%)
awarded to 2 consortiums (one led by EDF 30%
DE ES RO
for 1,400 MW and one led by Iberdrola for ES DE BG
IT FR PL
500 MW) in April 2012 20% 2005 2006
2008 2009
• North Sea: 400 MW (Germany) and 325
2007
2010
+ Biomass
MW (Belgium) under construction 10% 2009
DE PL
• Nuclear phase out in Germany should FI SE
0%
boost wind power but creates issues on 0 10 20 30 40 50 60 70 SE 80 NL 90 100 110 120 130 140 150
the grid
Electricity production (TWh)
Despite the solar PV growth in 2011 Source: Eur’Observer barometers – Capgemini analysis, EEMO13
globally (+44%), many solar companies
went bust because of China competition A stable governmental policy is key for renewables
In 2011, renewable energy investment
development. The eurozone sovereign debt issues should
rose 5% to US$260 billion* globally lead to subsidies decreases and threaten the EU 2020
(solar energy: +36%) Finance
*Bloomberg New Energy
objective achievement
| Energy, Utilities & Chemicals Global Sector
10
11. The gas paradigm is changing
In the new IEA GAS* scenario, gas consumption is increased. Main World primary natural gas demand by
assumptions are: sector and scenario
• China ambitious policy for gas use
• Increased power plants’ consumption linked to lower nuclear energy
• Sustained low gas price
However, in this scenario, heavy investments in infrastructure
(difficult to finance) are needed
Global unconventional natural gas resources (tcm)
SE: 1,148
NO: 2,324
PL: 5,236
Source: World Energy Outlook 2011: Golden Age of Gas Report
FR: 5,040
Shale gas changes the gas
perspective:
• It increases the total gas
resources to 250 years of
consumption
• It is widely distributed
• It is cheap ($2/Mbtu in the US)
• It allows to repatriate gas
consuming industries as
Largest EU technically recoverable
FR: 5,040
shale gas resources (bcm) chemicals and to fight against
Source: EIA
deindustrialization
* GAS: Golden Age of Gas, IEA WEO 2011
| Energy, Utilities & Chemicals Global Sector
11
12. Extensive analysis have been carried out on energy mix
scenarios in France
The Energies 2050 commission examined four existing energy scenarios:
1. Lifespan extension of existing reactors: all existing nuclear reactors lifetime is extended to 60 years providing the nuclear safety
authority (ASN) allows it
2. Quicker adoption of 3rd generation nuclear reactors: replacement of all existing nuclear reactors by 3rd generation reactors (EPR) as
soon as they reach their 40 years lifetime, which implies to build at least 2 EPR reactors per year during 10 years (from 2020 to 2030)
3. Progressive reduction of nuclear energy in the mix: all existing nuclear reactors are decommissioned when reaching their 40 years
lifetime and 1 on 2 reactors is replaced by a 3rd generation reactor (EPR), which leads to a 40-60% nuclear energy share by 2030
4. a. Nuclear phase out (more fossil fuel energy): all existing nuclear reactors are decommissioned when reaching their 40 years lifetime
and are replaced by fossil fueled plants
4. b. Nuclear phase out (more RES): all existing nuclear reactors are decommissioned when reaching their 40 years lifetime and are
replaced by renewable energy plants
Assumptions in the different scenarios by 2030
Electricity generation costs (€/MWh w/o taxes) CO2 emissions Employment Energy security
ing nuclear reactors
1 ~25 MtCO2/y Stable Stable
Not able to
ion nuclear reactors
2 ~25 MtCO2/y
measure
Stable
3 - 100,000 to Energy sources diversification
ar energy in the mix 30-50 MtCO2/y
150,000 jobs but increase of fossil fuel imports
4a
e fossil fuel energy) ~120 MtCO2/y Increase of fossil fuel imports
- 200,000 jobs
4b
hase out (more RES) ~45 MtCO2/y Potential issues on grid security
50 60 70 80 90 100 110
Source: Energies 2050, February 2012 – Capgemini analysis
Energies 2050 commission recommends extending nuclear reactors lifespan
| Energy, Utilities & Chemicals Global Sector
12
13. An overview of the European energy markets
Recent events are impacting the energy markets
• Middle-East political tensions
• Fukushima accident consequences
• Economic downturn
Present and future energy mix is evolving
• Renewables
• Gas
• Energy mix costs
Sustainability questions
• EU 2020 objectives
• Demand Response
Smart grids
Conclusion
| Energy, Utilities & Chemicals Global Sector
13
14. Status on the EU 2020 objectives
After the 2009 drop (-7.1%), GHG emissions increased
110 EU-27 GHG emissions
Source: BP statistical report 2011, European Environment Agency, Eur’Observer – Capgemini analysis, EEMO13
by 2.2% due to the 2010 economic recovery. For 2011, Historical evolution of GHG emissions
EU-27 GHG emissions [base year=100]
105 Path to reach 2020 target
88% ETS sector CO2 emissions released data show a 2020 target f or EU-27
2.4%* decrease, mainly due to the combustion/power 100
sector (-3.1%)
An economic slowdown would push CO2 emissions 95
down
90
In its March 2011 Energy Efficiency plan, the EU
estimated that with current measures only half of the 85
objective would be attained and developed a new draft
-20%
Directive focusing on: 80
1990 1995 2000 2005 2010 2015 2020
• Triggering better energy efficiency of public buildings
1,850 EU-27 primary energy consumption
• Demand response programs notably through smart meters
roll out
EU-27 Primary energy consumption [Mtoe]
1,800
• White Certificates mechanisms extension
1,750
• Better usage of cogeneration
In 2013, the EU will re-assess the situation 1,700
-9%
1,650
The present European Emissions Trading
Scheme (ETS) needs to be amended to 1,600
provide predictable and high enough CO2 1,550
Historical evolution of primary energy consumption
Path to reach 2020 target
2020 target f or EU-27
prices. The UK announced a carbon price Projection with current measures in place
(as per the March 2011 EU Energy Ef f iciency Plan)
1,500
floor to start in 2013 at £16/t of CO2
-20%
1,450
*Deutsche Bank analysis, April 2012 1990 1995 2000 2005 2010 2015 2020
| Energy, Utilities & Chemicals Global Sector
14
15. In certain countries as France, peak shaving is a key issue
during cold weather
% peak shaving observed in various pilots worldwide
Several means exist for
peak shaving and energy % peak shaving
Range of peak shaving
savings, that can be
combined or not:
• Dynamic tariffs (that
should be further
developed with the mass
roll-out of smart meters)
• Automation such as smart
thermostat, smart
appliances, in-home
displays or web-based
consumer portal
• Demand management
programs such as
customers alerts, social
networks communication or
feedbacks through bills,
web, SMS, smart phones
Source: Capgemini Consulting
Peak shaving: the use of displays helps but the customers’ behavior is key
| Energy, Utilities & Chemicals Global Sector
15
16. In all developed countries, energy savings are key
% energy savings observed in various pilots worldwide
Large-scale pilots
operated for more than % energy saving
one year reach energy Range of energy saving
savings in the 2-6%
range while more
focused programs based
on customer segmentation
can reach up to 18%*
energy savings
In France, only one third
of peak shaving electricity
savings result in final
electricity consumption
reduction
Prices increase and
Time-of-Use tariffs
should trigger
sustained energy
savings results
Source: Capgemini Consulting
*Literature review for the Energy Demand Research Project, Sarah Darby, Oxford University, 2010
| Energy, Utilities & Chemicals Global Sector
16
17. Demand response potential for EU-27 by 2020
Dynamic scenario:
In Capgemini Consulting’s Demand Response Demand Response study 3.1 Savings in CO2 emissions (in Mt of CO2 1 )
(DR) study*, the potential of peak shaving and 2012 results snapshot 1.0 3% Savings in electricity consumption (in equivalent
number of major cities2 and in % energy savings)
energy savings is modeled on the basis of a
5.2 4 2% Savings in peak generating capacities (in number
baseline scenario: 0.9 2% 4.3
of power plants3 and in % peak shaving)
• GDP growth 2010-20: 1.8% in average 0.8 1%
Moderate scenario:
Probable savings based on our observation of
• CAGR electricity consumption 2010-20: 0.7%
24 13%
current trends in regulatory, technical and
3.7
22 15% market conditions (in number of power plants)
• Some existing energy efficiency programs such 0.6 2%
2.5
0.4 1%
2.8 1.4
1.1
as Grenelle de l’Environnement or White 15 13% 0.5 2% 0.2 1% 1.0
0.2 1% 0.6
0.7
Certificates 14 13% 0.2 2%
7 13% 0.1 1% 0.1 1%
Assumptions are made on:
12 13%
6 13%
5 13%
• Regulation (norms and standards, energy 4 14% 4 15%
efficiency objectives, tariffs and incentive policies)
• Market design (possibility to monetize DR on
wholesale markets, contracts optimization, capacity
markets)
• Smart meters penetration and functionalities (for 1 Normative hypothesis: 1 kWh saves 700g CO2 (average European value considering avoided peak
capacity is mainly gas-fired plants)
the households segment) 2 Expressed in equivalent of avoided consumption of large size cities (2 mio inhabitants and 150,000
commercials, average consumption of 8.2 TWh/year)
3 Expressed in equivalent of avoided construction of power plants (500 MW)
And typical DR offerings are modeled with Source: Capgemini Consulting
hypothesis on their adoption by customers Our study shows that peak shaving potential is
significant while electricity savings potential is
*Demand Response study 2012 - Capgemini Consulting, VaasaETT and Enerdata more limited
| Energy, Utilities & Chemicals Global Sector
17
18. An overview of the European energy markets
Recent events are impacting the energy markets
• Middle-East political tensions
• Fukushima accident consequences
• Economic downturn
Present and future energy mix is evolving
• Renewables
• Gas
• Energy mix costs
Sustainability questions
• EU 2020 objectives
• Demand Response
Smart grids
Conclusion
| Energy, Utilities & Chemicals Global Sector
18
19. Renewable energies are strongly impacting the grid
management
August 27, 2009 November 8, 2009
Source: Enagas, Outlook for LNG
In the absence of competitive electricity storage solutions, gas storage and CCGT
rapid ramp up helps managing the renewable output volatility on the grid
| Energy, Utilities & Chemicals Global Sector
19
20. The need for smart grids is emerging
With the increase of renewable energies generation
share, the electrical grid’s management is facing new Communication
challenges as these energies provide unforeseeable and Technologies
intermittent power generation that is thus not Network Device and
schedulable. Balancing demand and supply on the grid Events Ops Management
becomes very complex.
Wind and solar power units are generally small and Back Office Applications
decentralized, allowing customers to become occasional
producers
The distribution network that is less sophisticated than Renewable
s
the transmission network is not designed to manage Advanced
those decentralized and sometimes bi-directional flows Metering
Smart grids concept has emerged to manage a Enhanced Power Grid
Plug-In Digital Communications and Control
dramatic increase in data flow, data storage and Hybrids
exchanges both for grid balance and customer Smart Meters &
Control Building Automation
relations. They necessitate new equipments and will be Interface
more digitally managed. Communication protocols will need
to be standardized in order to manage the information flow
on the net and with the customers as well as within
buildings Electric grid management is a key
factor to improve security of
New investments needed: Today there is funding in supply. However it’s not going to
Europe (€1 bn EU funds) and, more so, in the US (stimulus happen overnight. A lot of
grants: $3.4 bn), for smart grid studies and prototype regulatory and standardization
building but not for their real deployment, while issues have to be worked out.
investments are estimated at $200 bn worldwide from 2008-
2015 ($53 bn in the US)* *Pike Research
| Energy, Utilities & Chemicals Global Sector
2
21. Smart grids: key success factors
Smart grids implementation will necessitate new investments:
• The transmission and distribution tariffs will have to increase and by consequence the electricity prices
• Regulators, governments and customers will have to accept these prices increases
Industrial R&D is needed to develop new equipments (as large competitive storage) or
improve existing ones (as HVDC connections).
Communication standards are crucial:
• US is mobilized at the government (Department of Energy) and equipment manufactures levels
• Europe is now considering more seriously this question
• Equipments conceived with the internationally adopted standards will have a clear advantage
Efforts on simulation and modeling are needed:
• For the transmission grid there is a need to build a new European High Voltage grid management
model
• On the distribution side, the retail market has to evolve and modeling is needed. Interesting
experiences initiated by regulators and involving all stakeholders (Utilities, equipment manufacturers,
IT service companies, local authorities...) have been launched in Victoria (Australia), Texas (USA) and
France.
| Energy, Utilities & Chemicals Global Sector
21
22. Smart meters are the first steps for smart grids
Electricity and gas smart metering projects in Europe In addition to smart meters and
boxes, time of use tariffs,
Mass roll-out finalized Norway Finland
E Draft regulation issued in Feb. 2011 E Legislation into effect. At least electricity curtailment incentives
Mass roll-out by 2020 well-engaged 80% roll-out by 2016, 100% by 2018 80% roll-out by end 2013 and public education are key
Mass roll-out probably not elements to implement a demand
completed by 2020 Netherlands Sweden
E Legal framework for voluntary
E 100% smart meters
FI
implemented in 2009
management policy
UK installation adopted
E 27 million smart meters should Several pilots under way NO 80% of electricity customers in EU
be implemented by 2020 SE Member States should have smart
G Similar to electricity Estonia
Denmark
E Deployment by several
EE
E Mandatory nationwide meters by 2020. All countries
Ireland roll-out under discussion
E National roll-out
DNOs. No national plan
LV required to perform cost benefit
DK
planned for 2014-17 IE Germany analysis by September 2012
G Studies under way LT E 50 trials from 10 to 115,000 meters
for gas Nationwide roll out under discussion
UK
Customers can opt in or out
Belgium NL G Similar to electricity In September 2011, France has
E No legislation yet
Several business case BE DE PL Poland decided the mass roll out of 35
E Legislation should be ready in 2012
G
studies under way
Similar to electricity LU Pilots run by all Utilities million meters from 2013 to 2020 but
CZ G Similar to electricity the starting date will be delayed.
France SK
E Decision for roll-out of 35 FR
AT
Czech Republic 4 technologies experimented for
million smart meters by 2020 Austria CH E National roll-out under discussion
taken in 2011. E Legislation adopted in 2010.
HU
Several pilots under way gas smart meters (18,500 meters)
SI
G GreenLys pilot, decision for
mass roll-out by 2013
Pilots from 10,000 to RO Hungary in France. Final mass roll-out
240,000 meters
G Legislation under discussion
E Legislation adopted in 2011 decision should be taken in 2013
ES IT
G Legislation under discussion In Europe, the Value
BG
PT Chain unbundling
Portugal
E Smart meter substitution plan Spain
Italy
E 100% smart meters Greece
regulation impacts
presented by the regulator
Several pilots (30,000 to
E 100% smart meters should be implemented in 2009 GR E Roll-out under way negatively the return
50,000 meters) run
implemented by end 2018 G 80% smart meters to be
installed by 2016
G Plans for extending the
electricity system to
on smart meters
Source: ESMA, GEODE – Capgemini analysis, EEMO12, updated March 2012
water and gas meters investment
| Energy, Utilities & Chemicals Global Sector
22
23. An overview of the European energy markets
Recent events are impacting the energy markets
• Middle-East political tensions
• Fukushima accident consequences
• Economic downturn
Present and future energy mix is evolving
• Renewables
• Gas
• Energy mix costs
Sustainability questions
• EU 2020 objectives
• Demand Response
Smart grids
Conclusion
| Energy, Utilities & Chemicals Global Sector
23
24. Utilities need to change their business model
« Energy Orb » (PG&E) gives visual
Oil and gas procurement tensions and post- indications to clients involved in energy
demand management programs
Fukushima accident are leading to changes in the
energy landscape
European Utilities are negatively impacted by the
economic slowdown, governments pressure on prices,
potential extra-taxes and frozen regulation
US Utilities are negatively impacted by low gas prices
They need to adapt their business model, increase
competitiveness and launch profitable innovative
projects
Developed countries have to limit their energy
demand and Utilities have a key role to play
Public deserves a proper information on all energy-
related questions
| Energy, Utilities & Chemicals Global Sector
24
25. About Capgemini
With around 120,000 people in 40 countries, Capgemini is one of the world's foremost providers of
consulting, technology and outsourcing services. The Group reported 2011 global revenues of EUR 9.7
billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit
their needs and drive the results they want.
A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative
Business ExperienceTM, and draws on Rightshore ®, its worldwide delivery model.
With EUR 670 million revenue in 2011 and 8,400 dedicated consultants engaged in Utilities projects
across Europe, North & South America and Asia Pacific, Capgemini's Global Utilities Sector serves the
business consulting and information technology needs of many of the world’s largest players of this
industry.
More information is available at www.capgemini.com/energy.
Rightshore® is a trademark belonging to Capgemini
| Energy, Utilities & Chemicals Global Sector
Rightshore® is a trademark belonging to Capgemini
25