VIVATECHNOLOGY.COM the Pace of Technological Change Is Al- Ready Faster Than Ever and Forces Us to Rethink and Redesign Our Future

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VIVATECHNOLOGY.COM The pace of technological change is already faster than ever and forces us to rethink and redesign our future. This booklet is about the latest insights, key ideas, bold moves, and striking initia- tives presented by thought-leaders and business pioneers during the CEO Forum at VIVA Technology. Leading companies, startups, and local authorities share their vision about how digital is not only reshaping the future economy, transform- ing organizations and business sectors, but also society and human beings. The following topics were high- lighted during the CEO Forum. How digital transformation is being strengthened by the deeptech wave (artificial intelligence, IoT, robotization, augmented & virtual reality) for which everyone needs to prepare. From now on, all of an industry’s success partly de- pends on their capacity to combine traditional activities with this new technological dimension. Artificial intelligence emergence impacts companies’ growth strategy by requiring continuous innovation to compete in their respective market, while global hyper-automation is radically changing the way we produce and use our equipments.

2 3 foreword

We are here to understand: transformations in line with the decisions of today’s leaders? How companies are reinventing themselves by developing new ways of work- Wavestone offers in this report to consoli- ing, upskilling their available pool of date the forward-looking vision of today’s competences and taking into account leaders by collecting the ideas developed the drastic changes of consumer behav- during the VivaTech CEO Forum and the ior. views and expectations of tomorrow’s leaders, thanks to a panel in partnership How to forge fruitful, sustainable, and with the associations “Elles bougent”, efficient collaborations between very dif- “Villebon” and “Nos quartiers ont du talent.” ferent stakeholders involved in the innovation process: private and public sector, large companies and startups, users and So, let’s plunge into tomorrow’s world. citizens. How companies can leverage these new technologies to fulfill humanitarian goals in a “tech for good” perspective, by put- ting human beyond digital. The human role has emerged as one of the most prominent challenges of the digital era and the key to unlock value and ensure long term change. The issue Julie Ranty and Maxime Baffert, is to find the right place where human Co-Managing Directors, VivaTechnology. can stand by technology and not be ex- ceeded by it. Society needs empowering diverse and inclusive voices... To be better prepared for the numerous upcoming changes, everyone should participate in these reflections, regard- less of age. But is the viewpoint of the Xavier Metz new generation on social, and economic Partner, Wavestone.

METHODOLOGY: A survey was conducted on a sample of 455 young people under 26 part of the Wavestone firm, the Institut Villebon and the associations “Elles bougent” and “Nos quartiers ont du talent”. They were asked 17 questions on their vision of digital transformation in society and the answers were used to develop this publication. Furthermore, around twenty young people representative of this sample attended the VivaTech CEO Forum and 2 shared their impressions3 of the arguments heard. 4 5 INSIGHTS INTO THE DIGITAL TRANSFORMATION By today’s and tomorrow’s business leaders

Hybrid model industry Digital technologies are now at the heart of all industries

Black Mirror or tech for human? Beyond technology, trust and human in question Upcoming deeptech wave The digital revolution is only starting, new waves arrive and will be more Tech for good powerful Will technology save us? Advocate for tech for good Digital Consumers’ drastic Revolution changes Radical consumer changes Collaborative ecosystems force the reshaping Cooperation between startups, of the marketing approach companies and digital giants: a well-understood necessity, how to succeed? A new education required The challenge of skills and education will be decisive for every company Culture: a wager that pays off and every country Culture and diversity at heart to capture the potential of tech and to invent the future

4 5 HYBRID MODEL INDUSTRY OVERVIEW

Nowadays, mastery of digital techno- companies are moving towards a reinventing their business models, and logy extends well beyond tech com- hybrid system that combines long- combining their industrial capacity panies, but to all business sectors. In standing core businesses and digital with the use and integration of digital opposition to the traditional model, technologies. Their success will entail technology.

“Before, applications “Tech is our DNA” “We have to totally reinvent “The digital were there to support our business model” health revolution Rachel Picard the business, now Voyages SNCF Nathalie Collin is going to change applications are Le Groupe La Poste healthcare” the business” Ameet Nathawani Eric Greffier Sanofi Cisco

6 7 Analysis

Hybridization is a boost for business // Rethinking core businesses: for growth strategies and a lever for: example, the French Postal Ser- // Successful sectorial transfor- vice strives for diversity to make mation: digital technology rep- up for the inescapable decline in resents the “green fuel” for the postal mail. Upholding its values energy industry’s revolution. of universal service and competi- It plays a major role in energy tive neutrality, it provides clients suppliers’ two main challenges: with new digital services: ac- decentralization and decar- cess to a secure digital platform bonization of energy production. to store their health records. Its value lies in facilitating energy Raised with budding digital tech- management steering, environ- nologies (cell phones, internet, mental quality control, predictive social media), tomorrow’s lead- management of equipment, etc. ers see hybrid models as self- evident and in line with their ev- // Upstream value chain activities: eryday lives. Sanofi’s term “Drugs +” describes its service-oriented strategy that combines drug manufac- turing and digital platforms for improved access to health issues and assessment of environ- mental risks.

6 7 UPCOMING DEEPTECH WAVE OVERVIEW

The digital revolution is only begin- our daily lives and drives us to push the ning. It gains momentum every day, is limits of our ambition. a source of profound transformation in

“We are facing “IA doesn’t just change “Edge computing is going “With digital a Revolution, the potential speed to be a big thing tomorrow. technology, nothing less than of business, it changes It’s going to get bigger” the world we are living a revolution” the nature of it” in is definitely Gilles Thiebaut Marc Fontaine Keith Strier HPE moving much faster Airbus EY than ever before” Florent Menegaux Michelin

8 9 Analysis

The next deep tech wave will perme- // The value and performance in ate our everyday lives and transform: the workplace. Today AI can ex- // Our daily practices, e.g.: ceed human capabilities in 2 out of 6 skill areas: learning and task • Advancements in voice re- performance. New criteria are search, especially with con- needed to assess human added nected speakers, will give way value in the workplace. A new to conversational commerce, education is required. which enterprises believe will define upcoming consumer // The world exploration by revo- habits. Today 20% of Internet lutionizing space travel. Robots queries in the US are done vo- replace humans in discovering cally. the universe. They are capable of more efficient learning, observ- • Revolutionized mobility due to ing and building at a lower cost. electric vehicles, connected and autonomous vehicles, We cannot yet grasp the speed at and shared mobility platforms. which the deep tech wave trans- Valeo expects taxi robots to forms everything. appear this year. • 56% of our panel is enthusiastic about such changes, 21% is indifferent and only 22% fear what they believe to be an “in- trusion”. Younger generations who favor the deep tech wave will make it spread.

8 9 CONSUMERS’ DRASTIC CHANGES OVERVIEW

Consumers’ radical changes entail an environment where services and prod- And yet they want those services to be overhaul of marketing approaches. ucts are instantly available, today’s highly and increasingly personalized. Consumers’ profiles and habits are con- extremely mobile and connected Such changes affect how companies tinuously and very rapidly changing. As consumers aspire to enjoy the same ser- create, improve and market their offers. they evolve in a global and borderless vices as those delivered around the world.

“B2C is now really “You have to develop “Since the 1950s, “The customer representing your empathy and we have lived in a certain experience is the big C of your emotional world of mass market, the new battlefield” Consumers which is intelligence to stick to mass consumers, mass Sophie Heller the much younger the usage and the marketing; and we are BNP Paribas generation of preferences of enjoying now a completely chinese consumers” the consumer” new era that is only Andrew Wu Maud Bailly beginning” LVMH AccorHotels Jean-Paul Agon L’Oréal

We [the younger generation] are used to instant results and immediate pleasure Guillaume Manderscheid, Millenial

10 11 Analysis

Thanks to AI, mass marketing gives // Customers are no longer ex- way to precision marketing for per- clusively consumers at the end sonalized customer experiences and of a chain, but are now co- revamped offers: building offers. Examples include // Highly personalized customer the French national rail company experience and services, along SNCF, which involves customers with premiumization, which per- in design workshops; or Orange mits to offer high value-added and BNP Paribas, which place services, have become key no- their customers’ feedbacks at the tions. L’Oréal is one such exam- heart of their product and service ple. The company’s ambition is improvement, and innovation to invent the future of tech beau- process. ty thanks to the wealth of data. // Innovation combines a global // The way of considering and ap- and local approach. For exam- proaching consumers is evolv- ple, Orange designs its offers like ing. Companies, like AccorHotels modular blocks to better fit local for example, are taking “emo- specificities during roll out. tional empathy” into account to fully meet consumers’ needs.

10 11 NEED FOR A NEW EDUCATION OVERVIEW

Skills and education will be key chal- the digital transformation will create bring new training and education lenges for every company arround new needs for enterprises and of- challenges that companies and govern- the world. In addition to impact- fers on the job market. It will entail the ments will have to address. ing consumer products and services, development of new skills and it will

“They [past industrial revolutions] “The only thing that is worse “Today, what is at stake is training. have always been accompanied than training your people Training, training […] by education and and see them leave, it is a major stake skills revolutions” is not training them we have to deal with”

Jonas Prising and see them stay” Juliette Jarry ManpowerGroup Thomas Chamorro-Premuzic Auvergne Rhône-Alpes Region ManpowerGroup

“Besides being a dynamic enterprise on the cutting edge of technology, I find Google attractive because it makes it a point of honor to develop its employees’ skills.”

Michaël Doré – Millenial

12 13 Analysis

Not rising to the skills challenge The necessity to adapt learning would mean failing the digital trans- methods to meet current and fu- formation and therefore condem- ture technological advancements ning companies to disappear. in the workplace is a view shared by a large number of actors. It raises // Facilitating human and techno- the question of educational reform logical interactions not only re- to ensure the success and well-be- quires training employees, but ing of tomorrow’s workers in their also upskilling and reskilling them professional environments. Digital to adapt to continual innovation. transformation is certainly a major A number of companies are in- lever to improve current educational vesting resources in this direction. techniques such as teaching math- For example, SNCF makes it a ematics and science. It is also an op- point to train its employees in new portunity to increase the presence of technologies such as virtual reality. women in STEM fields and address // Soft skills and “learn to learn” preconceived notions. Seemingly in will be crucial as technology be- line with such views, more than 41% comes increasingly important in of millennial respondents consider the workplace, a reality millen- the under-representation of women nials are acutely aware of: 64% of in large technological enterprises them are enthusiastic about the to be a great risk for humanity’s fact that their future jobs will de- progress. pend less on their acquired skills than on their ability to learn.

12 13 CULTURE: A WAGER THAT PAYS OFF OVERVIEW

Enterprises are convinced they must re- initiative, avoid a permanent control embracing profile diversity, information think their working and organizational mindset, and promote the idea that “it’s transparency and continual learning to methods to meet new cultural and tech- ok to make mistakes”. foster their employees’ development and nological challenges. The main princi- Such a profound cultural change is a innovation. ples of New Ways of Working are: value formidable challenge. Enterprises are

“It’s about fail fast, “Culture is the strategy. […] “Diversity at every single learn fast and Everyone thinks of changing level is critical to find growing up fast” the world, but no one thinks solutions that are as inclusive Maud Bailly of changing themselves” as possible and have a sustainable vision of tech” AccorHotels Jean-Philippe Courtois Microsoft Sébastien Missoffe Google

14 15 Analysis

Culture is at the core of enterprises’ // Experiment to meet market strategic reflection. Google’s secret needs: Enterprises are becom- recipe: culture at its core, a flat or- ing increasingly creative to meet ganization and diversity. Why should new consumer needs. They test companies bank on cultural change? their ideas by experimenting with // Attract and retain talent: Enter- limited target scopes and gaining prises in which 54% of millenials knowledge from field feedback. hope to land their next job are Nevertheless, Thales finds it dif- striving to meet the young gen- ficult to value risk taking in busi- eration’s needs. The culture re- ness contexts where safety is at vival and the roll out of new work stake (air traffic controllers have tools (remote collaboration, in- zero margin for error). formation sharing) are a must. 78% of them look positively upon By inventing and implementing new the increasing robotization pro- ways of working, enterprises can en- cesses in their work environ- sure continuous innovation and per- ments. At Microsoft, enterprise formance, both determining factors culture transformation means in employee engagement. simplified tools and reinforced coaching. // Embrace new technologies’ potential: Culture drives innovation. Cisco stresses the importance of defining a digital roadmap that upholds values like dexterity and agility so as not to be left behind amidst rapid change.

14 15 COLLABORATIVE ECOSYSTEMS OVERVIEW

Today, ecosystem integration is a must Confronting organizational and cultural their interaction modes to the likes of ag- for enterprises. Establishing partnerships models can sometimes prove difficult. ile small structures. Today, collaboration, is a way to benefit from technological in- Yet, it is in enterprises’ best interest to skill sharing and reciprocal learning take novations and keep ahead of new actors. strike the right balance by adapting multiple forms.

“We need “We are making a lot of “We believe that nobody “Through data integration to create an money by learning / we has the monopoly of we are resolving the ecosystem are learning by making a good ideas” contradictions we have between lot of money” Lubomira Rochet been trying to resolve for corporate, Jacques Aschenbroich L’Oréal the last 30 years: how academics, Valeo to be big and powerful employees and and to connect with the startups” small; how to be complex Catherine Guillouard and fast; how to protect RATP Group yourself and share” Marc Fontaine Airbus 16 17 Analysis

In previous years, enterprises have Collaboration with digital giants, acquired multiple partnerships with such as GAFA or BATX (Baidu Alibaba startups. To collaborate efficiently, Tencent Xiomi), is nevertheless not to they have developed the following be shirked. Orange asserts its interest strategies: in working with startups that know // Cultural adjustment: Wanting to how to adapt to consumer-specific limit incomprehension, enterpris- needs; the big ones offer must-have es such as SNCF, have adapted services. themselves to startups’ potential. A systemic vision has its virtues for Instead of trying to solve previ- enterprises, as it allows them to ously existing issues, they give broadly transform their environment. free rein to young entrepreneurs. For example, Airbus’s connected air- // Partnership variety: Collabora- crafts give way to connected avia- tions can be financial (invest- tion. ments, stake sharing…) or in- tellectual (shared expertise or resources, data bases…). RATP has rolled out a support program for startups that includes invest- ments, purchasing innovative services and jointly developing new services. // Reciprocity: While startups rely on large companies’ strike force, the latter rely on startups dynamic culture. Valeo, for example, backs more than 1,600 startups, whereas AccorHotels highlights how partnerships can anticipate emerging uses.

16 17 TECH FOR GOOD WILL TECHNOLOGY SAVE US? OVERVIEW

Disruptive technologies are coming. business differently. This is not about re- climate change, giving everyone access They will have a growing impact on our thinking how to innovate, but why. The to healthcare and education… In short, daily lives. There is no debate about it. aim of technological innovations has a unlocking the incredible and scalable However, the question is: will it be for greater purpose than just making extra fi- potential of technology to make our better, or for worse? The success of the nancial value and delivering higher qual- world better and more desirable. Tech digital revolution probably lies on how ity products and services to customers. for Good can give rise to the human side people will use new technologies to im- It’s about empowering citizens, reduc- of technology for positive social change. prove their life. This means we should do ing social inequalities, fighting against

“Digital is the green “We need to make sure “The human dimension is “Smart City is not just fuel for the energy that innovation can at the heart of what we do, about technology. revolution. It’s good be done by people for and at the heart of It’s about people and for the battle against people, that it brings who we are” the needs of people. climate change. And something positive” Denis Machuel [...] A Smart City is before it will lead to a more Mari-Noëlle Jégo-Laveissière Sodexo all a question of a people peaceful world” Orange project about quality of Isabelle Kocher life. The technology is ENGIE serving this project” Carmen Munoz-Dormoy Citelum, EDF Group

18 19 Analysis

Technology is a powerful tool to lever- to help scientists to cure Alzeih- age big-systems shift and address glob- mer desease” says Gilles Thiebaut, al challenges in many business sectors, France’s CEO of Hewlett Packard such as: Enterprise. New technologies bring // Energy: new technologies such much better understanding of dis- as IA and IoT facilitate to better eases and change the relationship produce, distribute, and consume with patients: online trial engage- energy, and by doing so, help fight ment, communities of patients, efficiently against climate change. real-time access to diagnosis via 90% of millenniums consider that smartphone, personalized treat- Data can help us improve our en- ment, predictive healthcare… Digi- ergy consumption, thanks to smart tal has brought much more shift meters like Linky for example. Ac- in the health business model than cording to ENGIE, while 1.2 billion genetics. people still don’t have access to Yet technology will unlock its poten- energy yet, smart and micro grid tial only at the condition to seek the solutions using solar energy, could common good. Market penetration offer flexible, local and decar- of new technologies will depend on bonized solutions in Africa. their ability to demonstrate their use- // Transport: optimize and reduce ur- fulness for society and human beings. ban transportation thanks to smart Make no mistake! Technology is very traffic control and Mobility-as-a- powerful, but it’s still just an enabler. Service solutions. Improve air qual- Technology can stimulate, slow down, ity in cities with innovative public or amplify changes, but it has neither transport offers and the develop- self-consciousness nor inherent value. ment of electric vehicles, and secure roads with autonomous cars. So, technology cannot save us; only // Healthcare: improve, equalize, humans & ethics can. And now more and make more accessible health- than ever, we probably need innova- care in every part of the world. “We tion to follow values, instead of value have been able to shorten data following innovations. In the end, as processing for blood test, ge- Hervé Le Gavrian (MICHELIN) predicts, nom sequencing and brain scans “only companies with a meaningful from 20 minutes to 2s in order purpose for people will survive”.

18 19 BLACK MIRROR OR TECH FOR HUMAN? BEYOND TECHNOLOGY, TRUST AND HUMANS IN QUESTIONS OVERVIEW

Would you accept to board on an au- and tech companies will have to reassure trust. The digital revolution cannot move tonomous plane? Impressive and out- people. Counter intuitively, even millen- forward if we give in to fear. But we need standing technologies are already out nials are quite concerned and sometimes to ask the right questions! Yes, AI can be there, making things we couldn’t even scared about new tech. Thus, the ques- dangerous. But not for the reasons one dream of a few years ago. But to be used tion isn’t about technology readiness, might think. So, let’s fear the right thing... and adopted by the majority, businesses but rather about users’ acceptability and and enjoy the rest!

“Digital is becoming the “Big data is not removing “Mankind is at the origin new oxygen of our lives. any human capability at all. and at the core of the It brings freedom to move, It is simply giving the humans digitalization process” freedom of expression, all of the data and augmenting Yves Meigné freedom of information. But human beings’ capability VINCI Energies these precious freedoms for at the same time” citizens must be based on the Brian Duffy understanding and the trust in SAP the technologies we all rely on to help our customers to make “A number of speakers began their presentation with persuasive topics about the world go round” technology’s positive impact. For example, Microsoft and the blind, HPE and Alzheimer, SAP and cancer in India. The fact they greatly insisted on the virtues of Patrice Caine digital demonstrate they must convince people of technology’s goodwill practices” Thales Eléonore Guermonprez – millenial

20 21 Analysis

Paradoxically, people are both increas- // Fear the right thing. AI must be ingly dependent on, and distrustful of, seen as “Augmented Intelligence” digital technology. Sébastien Missoffe rather than “Artificial Intelligence”. (General Director, Google France) It can do things mankind will nev- highlights this situation: the French use ertheless not know how to do digital tools more than in other coun- anyway. Rather than replace it, AI tries, but at the same time “remain vigi- enhances our intelligence. For ex- lant and express a reserve and greater ample, Augmented Intelligence will mistrust of the risks of invasion of their allow humans to take better deci- privacy”. People in our culture are wary. sions in increasingly complex situ- In a way, we are of a practical nature ations and at decisive moments, in rather than true believers. Autonomous different sectors where people life vehicles are a telltale example. Jacques is at stake, such as ground transpor- Aschenbroich (VALEO CEO) reminds tation, air traffic control, space and us “95% of traffic accidents are due to defense. The majority of millennials human error” like fatigue, speed, and seem to agree with this vision, as alcohol. Yet, 50% of millennials in our 75% of them perceive digital tools panel stated they would rather trust an as a way to boost human capabili- unknown carpooler than AI to safely ar- ties, 20% as a substitute to mankind rive at their destination. or a technological dependence, What is to be done? and 5% as a dehumanization. // Become aware that it is not ac- // Be transparent and point out curate to think of a man-machine benefits. Manpower transparently competition. Mankind is building measures employee performance and designing technology; it’s not for a win-win situation. Providing the other way round. Along the staff with information leads to mu- same lines, AI is reinforcing the tual understanding and satisfaction past because algorithms are learn- from both company and employ- ing from past data. We need to be ees. Thanks to data bases, Man- aware of bias and strive for balance power can better and more objec- of data sets. Otherwise, we are tively evaluate its employees. condemned to repeat past mistakes and incapable of foreseeing new trends.

20 21 Co-organized by Publicis Groupe and le Groupe Les Echos, VivaTech is the world’s rendezvous for startups and leaders to celebrate innovation. It’s a gathering of the world’s brightest minds, talents, and products taking place in Paris on the 16th–18th of May 2019. More than 100,000 visitors attended the 2018 edition which took place on May 24th – 26th, marking a 47% increase in attendance in just one year. Next year builds on that success as startups, business leaders, investors, academics, students, and media from around the world des- cend on Paris for three packed days.

More information at www.vivatechnology.com and @VivaTech

22 23 thanks

This publication is the result of a collaboration between the Wavestone and Vivatech teams. We would like to thank in particular the following people for their strong involvement:

// Xavier Dorange // Léo Bouffier Creative Production Director Consultant (Wavestone) (Viva Technology) // Louise Lehuger // Nicolas Douchement Consultante (Wavestone) Head of Operations (Viva Technology) // Aurore Macek Yverneau // Dorothée Pineau-Valencienne Consultante (Wavestone) Co-Head of Program // Sylvain Masserot (Viva Technology) Consultant (Wavestone) // Laure Wybo // Guillaume Maréchal Head of Key Acounts Consultant (Wavestone) (Viva Technology)

22 23 www.wavestone.com

Wavestone is a consultancy firm, formed by the merger of Solucom and Kurt Salmon’s European business (excluding retail and consumer goods outside of France). It is a leading independent player in European consulting. Wavestone’s mission is to enlighten and guide its clients in their most strategic decisions drawing on its threefold functional, sectoral and technological expertise.