Preparing for the rebound after the COVID-19 crisis - Thought Leadership - Moving toward an era of data equity - Atos
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Preparing for the
rebound after the
COVID-19 crisis
Moving toward an era of data equity
Thought
Leadership
Contents 1 Foreword 2 Abstract: The new era of data equity 3 Introduction 4 A brief synopsis of the current state of affairs 5 Preparing for the rebound • Technology mastery • Frictionless working • Data equity • Sustainable by purpose 6 Conclusions About the authors: This report has been written by members of the Atos Scientific Community Editor in chief: John Hall With inputs from: Jose Esteban Lauzán, Andy Wallace, Zeina Zakhour, Manish Saxena, Neil Milliken Head of Scientific Community: Philippe Mareine Advisor to Scientific Community: Philippe Vannier 2
Foreword
Elie Girard
Chief Executive Officer of Atos
“We are living in interesting times” – this is a phrase that I have often heard during
the last nine months. The experience of many during this time has been one
of an unprecedented need to rapidly adapt to new ways of living, working and
communicating. Tragedy and loss have never been far away and yet the human spirit
drives us on to work through the challenges we face. Those challenges have exposed
both strengths and weaknesses in individuals, societies and businesses, and in
particular they have revealed just how dependent our world is on digital technology.
It is difficult to imagine how much more devastating the pandemic might have been
without test-and-trace apps, homeworking and schooling, online shopping and banking,
and video calls.
However, for all the positives of digital technologies, we have also observed flaws in some
enterprises’ digital strategies as they succumb to the damaging effects of cybersecurity
breaches, system failure and the inability to flex and scale services to meet rapidly
changing demands.
As we anticipate the emergence from this game-changing crisis, we have a clear
responsibility to rebound stronger, more resilient and more sustainable than before.
This report, which is written by members of our Atos Scientific Community, explores
four imperatives for a successful rebound – seeking to build on technology-related
lessons learned during the pandemic and address some of the challenges of
sustainability, trust and collective value.
It is my strong conviction that if, as businesses and members of society, we can embrace
these imperatives, there promises to be even more interesting times ahead – but in
a much more positive way. Please read on to find out more about our vision for the
world after the COVID-19 crisis, and an era that is sustainable by purpose, enabled by
technology mastery, frictionless working and data equity.
Preparing for the rebound after the COVID-19 crisis 3
Abstract: The new era of data equity After almost a year of enduring the COVID-19 pandemic, we have learned a lot from working with customers as we helped them navigate the crisis. On one hand, we have seen major disruptions in terms of ways of working, business models, travel regulations and security. On the other hand, we have witnessed some impressive and innovative approaches to adapting to the challenges. Looking ahead, we see many opportunities and a clear requirement to positively reshape our collective futures, rather than merely return to the previous status quo. We identify four imperatives for a business rebound that will support the move into an era of rebalancing the benefit and cost equation of digital technology. Technology mastery Frictionless working With digital technologies underpinning We believe at Atos that the new digital and many aspects of business continuity during distributed ways of working imposed by the pandemic, we must acknowledge that the COVID-19 crisis are not only sustainable technology mastery is a critical topic for but can be further evolved. Technology a company that cannot be restricted to a has transformed the way that most of us limited set of experts. We need to ensure work, but have we genuinely become more that we are able to realize the maximum efficient and effective as a result, or have we potential from our application of technology, just added layers of complication and inertia? recognizing that technology needs to work What changes should we expect in the very for us, not the other way around. In particular, nature of the way we think about work and this demands a comprehensive and seamless how can these catalyze a breakthrough in the approach to security. productivity paradox? Data equity Sustainable by purpose Beyond the acceleration of the data The pandemic has placed health, social and economy, we believe that a company’s environmental considerations very much in rebound will be driven by its ability to share the spotlight, particularly as businesses take its data in a fair and trusted way - the data stock of the ongoing and wider relevance ecosystem created for the COVID-19 vaccine of their company’s purpose. When dealing is a powerful example. Data has been with the sustainability grand challenges referred to as the currency of tomorrow, but of our planet, societies and economies; should it be merely treated as a tradable digital technology is most definitely part of commodity? We offer the perspective the solution, and must be viewed as such of “Data equity,” where members of data by governments and enterprises alike. ecosystems establish shareholding interests1 However, robust approaches to cybersecurity in the collective value of otherwise disparate and principles of “ethics by design” are datasets. Such interests must be represented fundamental to ensuring that technology in an equitable and trustworthy manner to solutions are themselves sustainable from a ensure the whole is greater than the sum of trust perspective. the parts. 1 Note: although this concept could include assigning monetary value to datasets, we would not extend the “stock” metaphor to include concepts of dividends, risk premia etc 4 Thought leadership report
Preparing for the rebound after the COVID-19 crisis 5
Introduction
As the world continues to wrestle with the ongoing and evolving dilemmas arising
from the current pandemic, we felt it appropriate to revisit the topic of our first paper2
entitled “What the world will look like after the COVID-19 crisis.” More than eight months
down the line since we first published our perspectives on this subject, it is important to
reflect on the experiences that have unfolded and the lessons that have been learned
by businesses, governments and societies at large. In fact, it is just as important to also
consider the lessons that we are in danger of failing to learn. It would be a further tragedy
if, in our overwhelming desire to get back to normality, we are unable to emerge wiser
and stronger from a crisis that has cost so many lives and resulted in so much disruption.
As we see hope emerging with the that enterprises, both public and private, of the virus, or giving the means for mental
development, approval and rollout of should be taking to effectively and positively wellbeing support - as well as ensuring wider
long-awaited vaccines, will this lead to a rebound from the crisis. business and economic continuity of course.
restoration of the way things were before? However, in many cases quick, temporary
Or will we see the emergence of the much Strengths and fixes had to be applied to address systemic
talked about "new normal" with a reboot weaknesses revealed weaknesses that were exposed in certain
of society and economy? Or are we in fact areas – in some instances these knee-jerk
going to experience a rebound where we are Before going any further, it is important to responses led to further problems through
continually adapting to ongoing changes? emphasize the way that the pandemic has e.g. untested security vulnerabilities. We
brought into stark relief the imbalances and believe that there is a unique opportunity to
In many respects the actions and behaviors inequalities that have been allowed to shape carefully and strategically consider how to
that we have experienced over the last our societies for decades. The historical truly leverage the potential that technology
nine months have been highly reactive: undervaluing of roles that we now consider offers, but which (for various reasons) we
for example emergency funding support to be key workers; the alarming alignment of so often fail to fully exploit. With so many
from governments, lockdown measures COVID-19 patient outcomes to their economic initiatives and projects being put on hold,
and constantly changing social distancing, wellbeing and even their genetic makeup; there is significant pent up energy in the
travel restrictions and isolation rules; rapid and the damaging environmental and social system that will be looking for appropriate
healthcare responses (including test-and- externalities caused by businesses whose outlets once the current constraints are
trace and vaccine approvals); sudden shifts purposes are solely driven by profit. Not only sufficiently relaxed. How this energy is
in ways of working etc. - it is inappropriate must we take action to help orchestrate a directed will influence whether we pursue
to extrapolate these out to long-term trends. successful wellbeing and economic rebound a path of returning to normal or build a
However, they will undoubtedly leave behind from the pandemic, but we must do so in a more sustainable and purposeful future. It
lasting scars that will potentially take decades way that helps to rebalance these damaging is important to note that many companies
to heal, if indeed they can be fully healed. inequalities. Failure to take meaningful action have reported that in the first three months
We need to be prepared for the likelihood now will almost inevitably usher in the next of lockdown they successfully implemented
that waves of COVID-19 infection spikes global crisis, whether that be economic, changes that a) they wouldn’t have dared to
will be followed by waves of economic and environmental, societal, geopolitical or do before or b) would have previously taken
social challenge that will be harder to fix technological. them up to two years to do. Companies
by relatively short-term government-driven have proven that they can implement
initiatives. It is also important to emphasize the positives change quickly, and it is crucial to retain
that we have seen in terms of community this mindset and momentum, continuing
The responses made by industries at large spirit and sacrifices made by groups and to release the previously hidden capacity to
will likely be the key determining factor individuals for the greater good of those break boundaries, overcome difficulties and
in the long-term recovery process. Their around them. There are significant lessons redefine the organization.
reactive measures will shape the new to be taken from the positive entrepreneurial
norms – with positive or negative outcomes spirit and impact made by cohesive, This paper explores the characteristics of a
depending on how they are taken forward. collective actions across all areas of society. successful post-COVID-19 economic rebound,
We believe these lessons send a clear paying particular attention to factors that
This paper is not a blow-by-blow analysis of message to businesses as they inevitably will support the move to an era that we are
whether our previously stated views and look at redefining the way they operate, characterizing with the terms: technology
forecasts3 have proven correct. While many collaborate and compete. mastery; frictionless working; data equity
of the anticipated short-term disruptions and and sustainable by purpose. By embracing
shifts have indeed come to pass, others are From crisis management the principles behind these concepts, we
likely to emerge over longer time periods to a sustainable future believe that businesses and societies will be
– we are only just beginning to see the tip able to build on the best of what we have
of the iceberg. Instead, we want to take Digital technology has undoubtedly been a learned and experienced so far through
time to reflect upon the underlying trends lifesaver over the past nine months, whether the pandemic and address those cultural
that we observe and expect, giving further that be through ensuring continuity of food perspectives and behaviors that have been
hints at the kinds of proactive responses supply, providing insights into the spread shown to be less than resilient and relevant.
2
https://atos.net/content/2020/atos-report-what-the-world-will-look-like-after-the-covid-19-crisis.pdf
3
Please refer back to the industry and technology centric scenarios presented in our first paper.
6
We believe that there is a unique
opportunity to carefully and
strategically consider how to truly
leverage the potential that technology
offers, but which (for various reasons)
we so often fail to fully exploit.
Preparing for the rebound after the COVID-19 crisis 7
A brief synopsis of the current situation
Before looking at the factors affecting a positive rebound from the crisis, it is important to take
stock of the starting position that we find ourselves in. The following analysis and commentary
are intentionally generalized as it would take too long to articulate specific circumstances for each
industry, geography and demographic.
Readers should consider how each factor Businesses – survival of the fittest home indefinitely4. There will be significant
might apply to their situations, but we urge implications in terms of how employees are
against the dismissal of certain aspects Supply chains have thrived or failed largely managed, motivated and rewarded; in their
as being irrelevant simply because they depending on their degree of digital use of communication and collaboration
have not been relevant in the past. Some resilience. Flexibility and agility within tools; and also in terms of real estate (Capita
important questions are new, or at least business processes has been shown to be has announced plans to end leases on a
newly urgent. It is important to think about critically important – particularly in dealing third of its office space). Some governments
how changes being embraced by others will with challenges such as vaccine distribution. (e.g. Spain) are beginning to regulate remote
have wider impacts – Will current business working, however there are doubts as to
models and processes become obsolete? Many businesses have experienced a wake-up whether this is motivated by the protection of
How will shifts in consumer behavior, call in terms of their digital maturity. Superficial workers’ rights or the protection of owners of
industry regulation and even technology and limited digital implementations have been corporate real estate and retail businesses in
possibilities ripple through supply chains? exposed as being no substitute for purposeful city centers who would lose out in the move
transformations. to homeworking.
We consider six key groupings that cover
the primary factors in determining whether Some significant industry sectors are failing The importance of skills flexibility, adaptability
the post-COVID-19 world will be marked by or have failed (e.g. certain airlines and high- and learning has been highlighted,
recession, restoration or rebound. They street retail chains) – there may be no viable particularly in the area of digital skills. Some
describe the current emerging situations route to recovery. This may lead to some businesses may suffer from the loss of key
from a perspective of 1) Businesses, 2) hard decisions about allowing some sectors resources as individual employees take the
Macroeconomics, 3) Consumers, 4) Citizens, 5) to disappear entirely. Could we end up with opportunity of the COVID-19 reset to make a
Governments and 6) Data. The sixth category city centers being hollowed out with no retail career change or take early retirement.
of “Data” may seem to be somewhat out of outlets and no desirable places to live? Will
place beside the others, however, we believe the sort of decline seen in Detroit up to 2010 Many businesses have been cushioned from
the topic deserves special treatment. The become the norm for big cities or can we the full economic impact of the pandemic by
way we gather, use and monetize data can learn from the good news stories about its government furlough schemes. When these
become a significant ally in the exit from the regeneration? come to an end, businesses will need to act
crisis. quickly and decisively to reshape the parts of
New ways of working have been enforced, their operations that remain viable (see also
The statements made for each of the six areas revealing the fact that what was previously the Governments section).
are intended to be scene setters and thought viewed as impossible is actually a perfectly
provokers that will underpin the lessons that viable alternative. Business leaders and Shareholder expectations of financial
we should learn from the pandemic. They their employees may not want to go back rebound may drive unhelpful short-term
inform our recommendations as to how we to the way things were. Indeed, Twitter behaviors that stifle the opportunity for more
can collectively engineer a rebound that takes and Schroders have indicated that their purposeful strategy redefinition.
businesses and societies to a better state than employees can continue to work from
before.
4
https://www.forbes.com/sites/danabrownlee/2020/05/18/twitter-square-announce-work-from-home-forever-optionwhat-are-the-risks
8 Thought leadership report
Macroeconomics already leading to worrying results and a “bandage” that temporarily masks the real
record highs and lows forecasts. However, even more concerning situation.
is the fact that asset classes that used to
National debts have spiraled, in many cases be decorrelated are becoming increasingly The COVID crisis is redistributing the
to record highs5. This has been particularly correlated: stocks, bonds, gold, bitcoin … world’s wealth. Asiatic countries (especially
pronounced in developed markets. all dropped in the crash at the start of the China) have seemingly exited the crisis
Household, business and government debts pandemic, when usually gold and bonds and their economies are growing again,
have all risen, but government debt has would tend to rise in a crisis. This points while Occidental countries’ economies are
seen the biggest increase and now stands at probable additional instability in future stagnant at best. Airline traffic in Asia is now
at 105% of GDP. This is well over the World crashes. equal to what it was before the crisis, while
Bank’s threshold of 77% where future growth the rest of the world is below 50%.
potential is adversely impacted. China, On a positive note, the accelerated
Russia and emerging markets seem to be development of ESG (Environment Despite best intents to reduce dependency
faring better–could this continue to drive a Social Governance) funds are channeling on Chinese production of critical goods like
reversal in fortunes between developed and investments toward sustainable companies protective masks, Western businesses have
developing nations? and activities. been unable to respond; and the export of
masks from China now exceeds €40 billion.
Interest rates are being further squeezed In many countries, domestic property
from a position of prolonged historical prices have bucked the recessionary trend,
lows. The disincentive to save and the being boosted by government stimulus
attraction of further extending low-cost actions, low interest rates and a trend to
loans will only exacerbate debt leverage move away from city living. This is further
ratios and the dependence on government inflating the household debt bubble and
(taxpayer) support. Could this lead to some there are significant question marks over the
fundamental rethinking of the core principles sustainability of this position. The opposite
of capitalism6? trend is observed in the commercial property
market – the pandemic has accelerated the
Markets are demonstrating high levels of shift to online retailing, severely damaged the
volatility. The democratization of investment hospitality sector and raised uncertainties
through fintech trading platforms (e.g. over the future of office-based working.
eToro and Robinhood), has driven hordes
of amateur investors, unable to secure There is a growing sense in many quarters
meaningful savings returns, into the equities that government treasuries and central
market. In some areas this is resulting in banks can and should intervene to solve or
investment bias towards well-known market cushion all manner of widespread economic
names, and short-term behaviors that are challenges, even though doing so is at best
5
https://www.visualcapitalist.com/debt-to-gdp-continues-to-rise-around-world/
6
https://www.weforum.org/agenda/2020/01/quotes-on-the-future-of-capitalism-davos-2020/
Preparing for the rebound after the COVID-19 crisis 9
A brief synopsis of the current situation
Consumers – the demand group has turned its focus to premium food trends in terms of lower levels of consumer
for value and convenience products, wellbeing and entertainment services savings and hence the ability to deal with
(e.g. Beyond Meat, Peloton, Netflix). downstream economic shocks (such as
Although the significant (~25%) drop in retail unemployment and increased taxes).
spending during the pandemic has largely been The consumer value dichotomy raises an
recovered, the focus of that recovery has been interesting question over the consumers' While in many ways, citizens have benefited
via online sales at the expense of in-store sales7. commitment to sustainability. In many ways from decisive government action and financial
Online purchases now account for nearly a third the post-COVID-19 reset provides a unique support, in some areas there is a growing
of all retail purchases. This has huge implications opportunity to create a more sustainable future, sense of frustration and distrust. Much of this
for logistics businesses and commercial but are consumers willing to pay the price? is driven by objections to the constraining of
property owners. Businesses have a significant responsibility to what are viewed as civil liberties, evidenced
demonstrate that truly sustainable models are through public protests and blatant defiance
The shift to e-commerce has been most marked the only viable approach in the mid-to long-term. of lockdown instructions. Conspiracy theories
in emerging economies with the greatest abound and may even lead to a reluctance to
increases being in China and Turkey according The retail sector has been a key contributor to embrace vaccination programs.
to an UNCTAD survey8. CO2 emissions, plastic waste and the throwaway
culture. Can we engineer a recovery that has Despite the above challenges, the spirit of
There are significant differences between more emphasis on the circular economy? societal goodwill does not seem to have been
global regions when it comes to the recovery dampened, demonstrated by the fact that
of discretionary spending. China and India are Citizens – beware the digital divide charitable donations and support for special
seemingly leading the pack in the bounce back causes like local food banks does not seem to
of spending on things like clothing and even Families and friends have embraced new have diminished. How long this continues once
travel. ways of connecting, sharing and playing. But the full economic fallout of the pandemic takes
these are not long-term substitutes for physical effect remains to be seen.
Unsurprisingly, buying behaviors are, more interactions. This is being noticed through a
than ever, being driven by value, convenience growth in mental health issues, declining mental Governments – a difficult
and availability. Good online retail experiences agility of elderly people in isolation, etc. balancing act
have proven their worth in influencing buying
behavior – the digital giants (e.g. Amazon, Those who cannot or will not use digital The desire for a rapid rebound will probably lead
Alibaba, MercadoLibre and eBay) are leading technologies have faced an increasing digital to volatility in government policy as those in
the way. divide. power seek to balance the need to manage the
economy with that of maintaining the support
There has been a polarized redefinition in the During the periods of lockdown, household of the electorate.
perception of consumer value. At one end of budgets tended to show a reduction in
the spectrum we have seen a flight to low-cost expenditure (less travel, less eating out, less Tax rises are eventually inevitable and will
products as households wrestle with reduced clothes shopping etc.) leading to a 29.1% saving probably be highly unpopular. The fear of
incomes. At the other end we have those ratio (source: ONS). However pre-COVID-19 unpopularity and losing the support of voters
whose incomes have not been adversely levels of consumer borrowing and spending is leading some governments to delay the
affected by the pandemic, but who have seen (particularly on big ticket items) have now implementation of fiscal measures, which
a big reduction in their disposable income returned. This is good news for manufacturing in turn puts more pressure on monetary
expenditure on things like holidays. This second and retail industries but exposes some worrying measures. There is a severe risk of creating
7
https://www.forbes.com/sites/walterloeb/2020/08/14/july-shows-cautious-climb-in-retail-sales
8
https://www.unctad.org/news/covid-19-has-changed-online-shopping-forever-survey-shows
10an uncontrollable imbalance that fuels asset are working in zombie companies? to enable and promote such value creation.
bubbles and devalues fiat currencies – further
widening the gap between the haves and the In an attempt to reverse the mass exodus • Data has driven most government policy
have nots. of workers from city centers, some town decisions. Timeliness, accuracy and
halls or governments are planning to tax completeness of source information is critical –
There will be pressure on overseas aid remote workers for NOT commuting and this has not always been realizable.
expenditure as governments seek to prioritize NOT “using the city.” A balanced approach is
the addressing of problems at home. However, required that responds to the generalization of • There have been many instances where
this is precisely the time we need greater levels remote working in a way that leads to better statistics have been presented in somewhat
of investment in developing countries. Failure to development of rural areas and less congestion misleading ways, driving unintended responses.
act may put so much pressure on the so-called in megacities. E.g. some reported surges in infection cases
developing world that the 2030 Sustainable were amplified by massive ramping up of
Development Goals and the Paris Agreement The pandemic has shown governments’ testing and were not necessarily because rates
could be derailed. extreme sensitivity to health crises. The fear of were genuinely rising.
being accused of not doing enough to protect
Poor health, poor education, high unemployment its citizens may lead to overprotection that • Fake news and distorted facts have had a huge
and poor infrastructure are key drivers will constrain economic, mental and physical influence on individual and group behavior.
for migration. Protectionist policies from wellbeing.
developed nations are likely to have unintended • The willingness to embrace fake news and
consequences. Data – an essential ally for a value- misinformation (not just about the virus)
driven rebound was inevitable against the backdrop of rising
Many governments will look to launch capital populism and mistrust in experts and political
investment programs to stimulate the rebound, • Appropriately implemented digital leaders.
however these are likely to focus on boosting technologies have been an incredible source of
local growth and may exacerbate protectionist resilience, but the attitudes to leveraging data
perspectives on e.g. data sovereignty. A value have been mixed.
delicate balance needs to be struck between
protectionism and free trade. • There is accelerated interest in (and application
of) data-centric technologies like artificial
Hard decisions will need to be made about intelligence (AI) and blockchain.
when to end short-term support measures
such as furlough schemes or interest-payment • Data sharing has been a huge boost to
holidays – in some cases they are only delaying COVID-19 vaccine research and development.
the inevitable and removing the impetus for
businesses to move quickly in tackling the • In businesses, most data remains in silos (even
changes that need to be made. It is estimated internally). This makes it very hard to exploit its
that 1 in 6 firms is a zombie (not financially potential. Yet there are significant opportunities
viable, but able to continue operating thanks to to realize the value of inter-company data
bailouts, tax holidays, zero interest rates, etc9). Is sharing. Initiatives like GAIA-X10 and International
this the best use of taxpayer money? Would it Data spaces or the emerging European Alliance
be better to invest in the reskilling of people who for industrial data, cloud and edge are seeking
9
https://www.ft.com/content/9b304e20-49cf-4fba-81a0-4d06f930d7a1
10
https://atos.net/en/2020/press-release_2020_06_04/atos-co-founds-gaia-x-to-build-a-secure-and-transparent-european-data-and-cloud-framework
Preparing for the rebound after the COVID-19 crisis 11Preparing for the rebound
There is of course no universal panacea for ensuring that businesses will
successfully rebound from the pandemic, but we believe that there are four
imperatives that must be addressed in the context of each business entity. These are
derived from the distinguishing marks of those enterprises that have thrived over
the last few months, and the required responses to the socio-economic conditions
that we are now facing. They reflect the best of what we have learned to adapt to,
without forgetting what we have lost and need to regain.
The imperatives reflect the view that we have the opportunity to enter a new era that is marked by:
• A move from technology exploitation to technology mastery.
• An understanding of the potential of new frictionless ways of working.
• The need to rethink how we define, derive and exchange business value and data equity.
• The critical importance of establishing business models that are sustainable by purpose.
We explain here what we mean by each of these statements, why we think they are of such significance and how they influence the four
imperatives we have identified. It is important to emphasize that these imperatives are not mutually exclusive, nor do they reflect a sequential
transformation path. Some of their constituent elements may seem quite obvious, however the experience of the pandemic has revealed that
in many cases, the obvious is not always widely embraced. Now is the time to undertake a considered review of where historical weaknesses in
digital strategies need to be addressed.
Technology Frictionless
mastery working
Master the technology Encourage, enhance and
before it masters you equip new ways of working
Build Sustainable by
data equity purpose
Extend your trusted data Invest in the future
ecosystems
12 Thought leadership reportThe responses made by industries at large will
likely be the key determining factor in the long-term
recovery process. Reactive measures can shape the
new norms – with positive or negative outcomes
depending on how they are taken forward.
Preparing for the rebound after the COVID-19 crisis 13Technology mastery
It is hard to imagine what the pandemic experience would have been like without the digital
technologies that we so often take for granted.
Without online shopping and banking, governments and health services, and the need pursue supply chain resilience through hybrid
homeworking tools, mobile track and trace, to register for new benefits and testing systems technology sourcing strategies that provide
data analytics, livestreams, video meetings, opened the door to scammers, hackers and independence and flexibility, particularly in
etc. our individual and collective experiences other cybercriminals. commodity services like cloud infrastructure.
during periods of lockdown would be orders
of magnitude more difficult. But we have seen Nine out of ten coronavirus internet domains Technical debt often arises when businesses
clear evidence of the impact of differences in are reportedly scams, and hundreds of fail to properly transform their processes when
terms of digital maturity both at an individual thousands of video conferencing accounts are implementing new technologies:
and an enterprise level. So, our first imperative up for sale on the dark web11. Brute force attacks
is one that we call “technology mastery.” are up by more than 400%, and fake news • New systems are added on top of old – adding
By this we mean ensuring that technology articles and misinformation have become more cost and complexity
is something that we control and shape to viral than the virus itself.
enhance our lives, rather than something • Inefficient processes are automated – making
which controls and shapes us. Technology There is a double-edged risk that businesses them faster, but still inefficient
should work for us, not the other way around. are negatively impacted either through
Democratization of technology must apply to ignorance of cyber-related vulnerabilities or • Innovation often has an introspective view –
everyone and not just experts, front-runners through an overly cautious approach to digital focusing on “How can parochial improvements
and the fortunate few. solution adoption. Viable long-term solutions be made?” rather than “What wider and more
must holistically address the opportunities AND disruptive potential do digital solutions offer?”.
It has been clear during the pandemic that challenges of digital. Businesses and society Businesses must always treat digital as a means
those enterprises who started from a solid alike must achieve mastery of technology to an end, not an end in itself.
foundation of well-integrated digital capabilities through ensuring that it adds demonstrable
were those most able to ride the necessary operational value rather than allowing it to In these rapidly changing times, it is important
waves of change successfully. They were the become a constraining millstone that is only to be aware of technology developments
ones who could easily make the shift to home ever perceived as a cost. and the constantly emerging potential of
and remote working (indeed digital solutions. However,
for some this was already techno-solutionism should
the norm). They were able One example of such anticipation is that of be avoided. Augmented
to scale up their operations, reality, blockchain and AI
flex their processes and quantum computing. Businesses should may offer game-changing
supply chains, and continue already be identifying currently unsolvable opportunities, but they need
to engage with consumers to be applied appropriately.
despite the imperative of problems that will become addressable as Employees need both the
physical social distancing. quantum technologies mature. space and the permission
to contemplate new
As an example, the video- possibilities, learning from
conferencing business, Zoom, saw its customer Enterprises should take the opportunity to and co-innovating with technology partners.
numbers grow by more than 500% compared address inherent technical debt within their IT
to the previous year – it has gone from being an and OT operations. Although market figures Technology mastery is not a one-time fix – new
also-ran technology company to a household show wide variations, many analysts report that digital potential will continue to emerge and
name with a market valuation greater than large enterprises and government departments today’s impossibilities become tomorrow’s
GM and Ford in a couple of months. This was typically spend between 60% and 70% of market disruptors. One example of such
not just because its functionality met a vital their IT budgets on operating and maintaining anticipation is that of quantum computing.
and urgent need, but because its cloud-based legacy systems. This can be a significant Businesses should already be identifying
architecture, intuitive interface and freemium constraint to agility and innovation, and in currently unsolvable problems that will become
SaaS license model allowed scaling and many cases can also present a disproportionate addressable as quantum technologies mature.
adoption at the speed of digital. However, cybersecurity risk. Re-evaluating buy-vs-build Quantum simulation is a low-risk and cost-
concerns remain over the underlying security strategies is a key part of resolving the technical effective first step.
of its platform after hackers were able to intrude debt challenge – focus on investing in your own
on private calls. Will its success be sustainable capability where it is fundamentally important Digital strategy and business strategy must
if functionality and convenience cannot be to your enterprise’s value proposition and buy be fully aligned. It is all too easy for there to
complemented by security and trust? the rest as evergreen services. The anticipated be a disconnect between business users and
27% growth in the 2021 demand for public IT departments – when this happens there
While digital technologies became essential cloud infrastructure services compared to is a real risk that digital solutions cease to be
enablers during these unprecedented times, 2020 (48% compared to 2019)12 would suggest an enterprise asset, and the imperative of
they also encouraged a sobering increase a growing acceptance of the value proposition technology mastery is lost.
in digital threats. Knee-jerk reactions to of as-a-service IT delivery models – particularly
implementing new tools and processes, where they support flexible operational models
a hunger for the latest information from and remote working. Businesses should
11
Source: ZDNet
12
Source: https://www.gartner.com/en/newsroom/press-releases/2020-11-17-gartner-forecasts-worldwide-public-cloud-end-user-spending-to-grow-18-percent-in-2021
14Technology
mastery is not a
one-time fix – new
digital potential
will continue to
emerge and today’s
impossibilities
become tomorrow’s
market disruptors.
Preparing for the rebound after the COVID-19 crisis 15Frictionless working
There have been some remarkable changes in our ways of working during the pandemic. Enforced
homeworking and social distancing have led to the rapid adoption of new digital toolsets and
processes in a way that many would have otherwise thought to be impossible.
The changes are a testament to our adaptability once again been brought to the fore by the technologies we embrace and value so much
and resilience in times of compelling need, experiences of the pandemic. This is probably in our personal lives are often far more user
but the cracks are beginning to show. Already because it has exposed a tipping point in those friendly and intuitive (frictionless) than those
we are seeing employee burnout because businesses that have resisted technology that are expected to be used in a corporate
of the additional workload – whether that adoption, or whose processes have not been context.
be from dealing with repeated surges of appropriately or holistically transformed
frontline healthcare demands, managing when technology point solutions have been Business can no longer afford to lag
home-schooling responsibilities, or maintaining overlaid on legacy processes. This is clearly an behind in the appropriate exploitation of
a work-life balance when confronted with unsustainable situation. digital technologies. However, as previously
relentless 12+ hour days in front of a computer. commented, this is not just about adopting
While many companies have reported Even before the pandemic emerged, a technology for its own sake but leading to an
improvements in employee productivity as a McKinsey survey identified that within many era of frictionless working – almost getting
result of working from home – there is an open global corporations, only a small fraction of to the point where the underlying technology
question as to whether this may be driven by activities and offerings were described as is so seamlessly integrated into our ways of
people working more hours a day. digitalized; less than a third of core operations working that it becomes invisible. This enables
were automated or digitalized, and less than a modes of operation that are capable of
Since the 1970s, observations have been made third of products and services were digitalized. adapting and scaling up on-demand; that offer
that the growth in technology implementation This situation has been only too evident in the potential of optimal productivity without
does not necessarily lead to a corresponding hospitals and clinics where, despite significant the burden of additional overheads; and that
growth in productivity (The Solow or investment in workflow digitalization, clinicians simplify communication, collaboration and
productivity paradox). It would appear that, still need to spend appreciable amounts of time knowledge sharing.
in some areas of business, this paradox has in front of their computers. The irony is that the
The marks of frictionless working are those of excellent user/employee experience and will include:
Being able to securely and seamlessly work Digital toolsets should be simplified and To a large extent, we have individually learned
from anywhere without having to wrestle consolidated where possible. Adding more and to adapt to new ways of working and
with and work around constraining IT policies more layers of technology without removing collaborating – businesses need to embrace the
(although there remain employment law and others will only add to productivity inertia and potential this affords by adapting underlying
regulation considerations to comply with). the risk of process failure. operating models not only to align with this
new paradigm, but also address the areas of
Ready access to the necessary tools, information Flexible organization structures (and weakness that it has exposed. These include:
and expertise to carry out a given task at the commercial models) should encourage
optimal time. The internet provides insights into collaborative working, creativity and agile • Ensuring an appropriate work-life balance for
almost any topic imaginable within a couple of ways of working. those who are struggling with the cultural shift
mouse clicks. Is your business information just of constantly working from home.
as accessible? Appropriate delegation of responsibility
and decision making, using digital tools to • Finding new ways to encourage the kind of
Access to virtual knowledge networks that facilitate action while ensuring traceability creative discussions that previously happened
ensure experiential knowledge is effectively and accountability. This could include the serendipitously at the water cooler.
diffused across the organization. additional dimension of harnessing collective
wisdom through e.g. democratic surveys. • Avoiding office presenteeism turning into
Ubiquitous virtual agents and chatbots that online presenteeism.
help explain and automatically deal with Provision of the means and motivation for
contextual and complex queries - capitalizing continuous learning and improvement. • Reviewing performance targets and progress
on collective intelligence captured through monitoring tools. Thinking about new ways of
machine learning. Technology-enabled conversations that are maintaining employee engagement.
close to real-life experiences. The need for
Business processes with integrated and engaging communication is key in remote • Ensuring sufficient space for discharging
orchestrated flows that, wherever possible, working scenarios; both within the organization productive responsibilities as opposed to
allow automated straight-through-processing. and with customers. This will encourage team constantly participating in online meetings.
Automated processes should be optimized building, client engagement, creativity and
– merely automating legacy processes “as-is” consistent company culture. • Embracing technology in a way that
may speed them up but will not necessarily encourages inclusion, accessibility and
improve their effectiveness and efficiency (or efficiency, through a focus on employee
sustainability). experience and ease of use.
16 Thought leadership reportPreparing for the rebound after the COVID-19 crisis 17
Data equity
As our lives become increasingly influenced by the use of digital technologies, it is imperative that
enterprises consider carefully their approach to data and its inherent value.
Although digital technologies have already shared-data ecosystems are created, applying best practices, not just from a data protection
shown their value in terms of providing and ensuring principles of data equity will be perspective but also with regards to the
otherwise hidden insights through data of paramount importance to their success. ethical use of data and related systems. There
analytics and artificial intelligence, it is often But more than that, digital technology can are a number of industry groups, academic
the case that such insights only represent further drive data-enabled equity as derived institutions and open communities looking
certain pieces of a much larger picture. knowledge and insights are applied for wider at the challenge of ethical best practices,
It is rare for a single entity to hold all the social good. standards and certification, but the impact
necessary puzzle, but there remains a of these will only emerge over time. It is
strongly held view in many enterprises We are already seeing European initiatives critically important for industry to ensure
that there is differentiating value in the such as GAIA-X14 and International Data that any standards that do emerge are well-
pieces that they do hold, and so there is a Spaces15 rapidly gaining momentum in terms balanced and implemented in a way that
reluctance to openly share data without of establishing principles and standards for engenders trusted relationships between
a very defined route to its monetization. data exchange and sharing. There is also the ecosystem partners.
Add to this the dynamic of personal data promise of several billion euros of investment
protection regulations, and the challenge to kick-start specific industry data-sharing There are some notes of caution that need to
of collaborative data exploitation is clear. initiatives. The largely European foundation be highlighted:
There is also the dilemma that it is not and focus of these initiatives may be seen
always possible to fully determine the value by some as protectionism and a reaction • First, not all geographies will adopt the
of collaborative data sharing until that to US hyperscaler dominance in respect same attitudes to data equity – a careful
sharing takes place. However, waiting for all to cloud data storage, however we see the balance must be struck between respecting
the regulations, standards and governance primary objective as one of respecting data data sovereignty and resisting protectionist
models to slot into place will only result in sovereignty, privacy and value – protecting approaches.
falling behind the competition. The key is to the rights to fairly derive value from one’s
start working with existing best practices, own data rather than shutting down the • Second, the data ecosystem approach
establish trusted data ecosystems, and refine possibility for others to participate in value represents a significant cultural and strategic
as you learn. exchanges. Such an attitude moves data shift for many businesses. In many cases,
to a level where industry consortia can new commercial and operational models will
The pandemic experience has clearly meaningfully establish shareholder interests need to be established in order to take full
demonstrated the value of sharing data, in their collective data equity. advantage of this new paradigm.
whether that be at an individual level in terms
of willingness to participate in widespread The level of industry engagement being • Third, establishing and maintaining trust
test-and-trace programs, or at an enterprise generated by platform ecosystem initiatives within a data ecosystem demands a level of
level in terms of global collaboration in clearly demonstrates that businesses are transparency and independence that cannot
vaccine development13. The benefits that such recognizing that significant and sustainable be delivered by entities who may be seen as
openness has brought in a time of crisis will growth will only come from a more competitors by other ecosystem participants.
almost inevitably bring a longer-term change collaborative mindset when it comes to It may well be that independent platform
in attitude to data ownership and sharing. We exploitation of data value. Research shows operators are required to establish the
anticipate that value chains will undergo a that digital ecosystems could account for necessary levels of trust.
major evolutionary step, away from fragility more than $60 trillion in revenue by 2025, or
and quasi monopolistic structures toward a more than 30% of global corporate revenue16. • And finally, data and its derivatives must
more resilient network/value mesh, where the The main challenge to be addressed by always be used appropriately. Experiences
failure of one supplier/consumer will not shut individual business entities relates to the role during the pandemic have shown us what
down the whole chain. they play within such ecosystems – should can happen when data-driven algorithms
they be the provider of a digital platform do not work as anticipated, e.g. grade
While the pre-COVID-19 digital era tended that formalizes data exchange relationships, prediction in the UK, for students who
to be characterized by somewhat siloed or should they look to participate in others' were unable to physically sit their exams,
approaches to data exploitation, we believe established platforms? where inappropriate biases led to significant
that the post-COVID-19 digital era needs to disruption and upset, eventually causing
be defined by the concept of “data equity.” As mentioned previously, we use the government intervention to change the
We use the word equity very deliberately term “data equity” not only to reflect the approach to grading.
for its double meaning: equity as a mark of importance of data shareholding, but also
having a shareholding in a valuable asset, to ensure that data value is exchanged fairly
and equity as a term that implies fairness of and securely. In this regard it is important to
value realization. As new collaborative and respect the relevant standards and accepted
13
https://www.medicalnewstoday.com/articles/how-did-we-develop-a-covid-19-vaccine-so-quickly#Worldwide-collaboration
14
https://www.data-infrastructure.eu/GAIAX/Navigation/EN/Home/home.html
15
https://www.internationaldataspaces.org/
16
Source: McKinsey
18Research shows that digital
ecosystems could account for
more than $60 trillion in revenue
by 2025, or more than 30% of
global corporate revenue
Preparing for the rebound after the COVID-19 crisis 19Sustainable by purpose
The experience of the pandemic has reminded us (if we needed reminding) of the fragility of
the natural world. There is a growing acknowledgment that all transactions and actions bring
associated externalities that range in scale of impact from personal to planetary.
The wider consequences of business models, responsible for an estimated 4% of the total for more than 12% of its revenues, saving
technology choices and the growing digital global CO2 emissions, but digital technologies around 100,000 tons of primary resources
divide (economic and accessibility) must not also have the potential to decrease C02 each year.
be ignored if we are to ensure the preservation emissions by 15% to 20%. We would highlight
of the world’s resources for future generations. the following areas for consideration as Digital technology is a key enabler of this,
Recognizing this imperative, there have companies plan for a rebound that is particularly as more and more product
been calls from a number of quarters that sustainable by purpose: functionality is software driven. Tesla is a
rebounding from the COVID-19 crisis must be good example of how physical products
done in a sustainable way, and that the more Decarbonization (cars) can be given new innovative features
developed countries must take a lead in this. The overall impact of the COVID-19 pandemic and enhancements simply by downloading
The global societal agenda is shifting away from must not be understated. However, in planning software updates (as opposed to buying a
economic development at all costs toward a route to recovery, we also cannot ignore the whole new car). Digital technologies can bring
health, wellbeing, diversity and security. further reaching threat of catastrophic climate transparency and trust in supply chains, enable
change. platforms for establishing circular ecosystems,
The past few months have taught us that we and can provide sustainable KPIs with the same
can take dramatic, substantive and collective Consensus is building that if we can act rigor that we currently use to report on more
action when there is a clear imperative to do decisively, intentionally and collectively financially oriented measures.
so, and that the general public will support over the next 15 years, there is real cause
even the most significant of disruptions if for optimism that atmospheric greenhouse Wellbeing
the evidence for them is clear and if there gases can be reduced to a level that will begin Employee wellbeing has been a significant area
is transparency and trust in the means of to reverse the seemingly relentless rise in of focus for businesses during the pandemic. It
execution. However, the converse is also global surface temperatures. To realize this remains to be seen what the long-term physical
true, where there is miscommunication or imperative, we must address the throwaway and psychological ramifications of lockdown
lack of trust and transparency, the necessary mentality that has been driven by relentless working will be, whether that be for those
engagement and commitment will be lacking pressure for consumer revenues. Historically, isolated at home or those having to hold the
or even actively resisted. Sustainability, trust the success of producer organizations was fort as key workers. However, as we prepare for
and collective action must go hand in hand. linked to the quantity of their product that the rebound, we must not defocus wellbeing
That is why we refer to our fourth imperative as could be sold. Even after reaching market from being a priority topic.
“Sustainable by purpose.” saturation, consumers had to be encouraged to
keep buying. Built-in obsolescence meant that In some ways there has been a tendency to
The significance of the word “purpose” is out-of-date products were discarded in favor of over-generalize perspectives on wellbeing.
that actions that drive sustainable behaviors purchasing the latest more desirable version. “Homeworking is a good thing because you
must be coherent and intentional. The UN’s 17 In a sense, our ability to consume materials don’t waste time travelling, you spend less on
Sustainable Development Goals17 are a great and then throw them away faster and more clothes and food, you can flex the way you
starting framework for describing a world- efficiently became a measure of success. work … However, this fails to recognize that not
changing vision, but it is interesting to observe everyone has the luxury of a quiet home-office,
that technology only gets an occasional This is clearly unsustainable, and we must align adequate network connectivity, or the ability to
explicit mention. Where it does appear, it future product development and distribution easily switch off and unwind. Wellbeing policies
tends to be presented as a challenge to be strategies with the circular economy principles need to be flexible enough to create tailored
addressed. While, of course, technology is a of “re-use, repurpose and re-cycle" – as some environments where all employees have the
draw on natural resources and can be used in leading companies are already doing. For opportunity to flourish at work.
damagingly inappropriate ways, it can also be example, Schneider Electric uses recycled
used to pay back those deficits and even help content and recyclable materials in its products, Businesses should be prepared to invest in
deal with others. We see digital technologies prolongs product lifespan through leasing and homeworking facilities if their employees
as a part of the solution and not just a part pay-per-use, and has built take-back programs are going to be expected to use them long
of the problem. Digital technologies may be into its supply chain. Circular activities account term. Shopify was an early mover in giving
17
https://sdgs.un.org/goals
20 Thought leadership reportYou can also read
