techtalks video.mp4

CNBCArabia

2 years ago

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00:00 [MUSIC PLAYING]

00:03 Hello, and welcome to a new episode of Tech Talks.

00:17 Digital transformation in business

00:20 involves new technology like AI and metaverse

00:23 to increase growth and competitive edge.

00:25 To talk more on this topic, we welcome Mr. Oliver Bittner,

00:29 Partner Digital Enterprise Technology at Bain & Co.

00:32 Hello, Mr. Oliver.

00:34 Hello, good morning.

00:35 So let's talk about this year, 2023.

00:38 What are the technology investing trends

00:41 for this year?

00:41 Technology is increasingly important to everything

00:46 we do, privately, professionally,

00:49 as well as as a society.

00:51 And companies didn't stop investing in technology

00:56 even in periods of economic instability, right?

01:01 When it comes to investments, when

01:03 we look at the investment portfolio of companies

01:06 across sectors, digital, AI, and data are leading the pitch.

01:13 But beyond this, there are two other main buckets

01:16 of investment.

01:17 One is all about differentiating digital technologies.

01:22 So companies are really looking for digital technologies

01:27 which drive competitiveness.

01:29 What do I mean with that?

01:30 Companies are looking for technologies

01:33 which have the ability to disrupt supply chains,

01:36 disrupt business models.

01:39 And I give you one example.

01:41 We worked recently with a consumer goods company

01:44 and identified supply chain as an area of digital disruption.

01:49 And the client unlocked significant value

01:53 by digitizing the value chain, in particular,

01:56 in the area of supply chain resilience.

01:59 Another bucket of investment is, I would say,

02:03 more on the foundational technologies.

02:07 So there is significant investment

02:10 allocated to large transformation programs,

02:13 large technology transformation programs around ERP,

02:16 in particular, the S/4HANA transformations in the region.

02:20 But also, the journey to cloud is an area

02:22 where companies continuously invest.

02:25 So these are all cutting-edge technologies.

02:28 And I firmly believe if companies do it right,

02:34 do it in the right strategic context,

02:36 they will drive competitiveness.

02:38 I turn now to the Global Tech Report.

02:40 It is mentioned that the generative AI is creating value

02:45 in cases that weren't possible before.

02:47 Can you share with us some examples?

02:50 Of course.

02:52 I just can think of a few technology revolutions

02:56 which rolled out as quickly as generative AI.

03:00 The public launch release of JetGPT in late 2022

03:07 made foundational models and generative AI

03:11 accessible to a large crowd,

03:13 which had no or very limited experience

03:16 with artificial intelligence before.

03:20 But beyond the better, cheaper, faster,

03:23 generative AI is indeed generating value already.

03:27 Let me give you two examples which are really implemented.

03:33 One is everything around workforce enablement.

03:38 In a world of continuous change and learning,

03:42 generative AI will play a key role and drive value in this area.

03:47 For example, a client of ours, new customer service agents

03:53 reached a maturity level, a productivity level

03:57 that normally takes six months to attain in just two months.

04:03 How did they do that?

04:04 They applied generative AI models

04:06 and generative AI provided responses to them

04:11 along the customer dialogue.

04:15 Another example is, for example, new product development.

04:19 Companies are drastically reducing development times.

04:24 For example, in gaming, Roblox announced

04:27 the development of a platform enabling users

04:32 to create content by touch, voice or text,

04:36 leveraging generative AI.

04:38 At the end of the day, it's not the number of use cases

04:43 you're finding.

04:43 We have worked with Spain along all industries.

04:47 We developed use case libraries.

04:50 The challenge for companies is now really

04:52 to think through what's important for them.

04:55 How does generative AI support their strategy?

04:59 And then how do you build the foundation for that?

05:03 So how do you build capabilities to unlock

05:06 the full potential of generative AI in companies?

05:08 So let's talk now more about the risks and opportunities.

05:12 What are the risks and opportunities for AI?

05:15 So AI in general, AI is not just a technology revolution.

05:21 There is an economic revolution underway.

05:26 Until recently, AI work and AI capabilities, AI talent,

05:34 has been concentrated among major service providers,

05:40 cloud service providers.

05:42 Now, with the dramatic reduction of AI experimentation cost,

05:49 this is spilling over into a broader spectrum

05:53 of industries and capabilities where innovation

05:56 is happening quickly.

05:59 Let me give you an example.

06:00 Let's take the software industry,

06:03 where AI is generating already value along the value chain.

06:09 For example, AI enabled chat interfaces

06:17 for data and applications will help to reduce effort and drive

06:25 efficiency, help to simplify the user interface,

06:30 help to increase the personalization of content,

06:36 and open up new routes to market.

06:40 The innovation and AI value generation is happening now.

06:44 And companies really need to think through

06:47 how AI is disrupting their business model, how AI is,

06:53 let's say, or can play a role in the turbocharging

06:57 their business strategy, and how do we get this implemented.

07:00 One, you ask about the risk as well.

07:03 I want to highlight one thing, and it's definitely

07:05 cybersecurity discussion we have.

07:10 Because companies definitely need to invest in cybersecurity

07:15 to get privacy right, to get data security right,

07:20 and also to make sure you are compliant with regulations.

07:25 And it's not a one-off.

07:27 As more mature you get in terms of AI,

07:32 the more complex becomes the cybersecurity question.

07:35 So it's really, as you go along, you

07:37 need to invest in cybersecurity.

07:38 I wouldn't call it a risk, but definitely as a watch out.

07:42 So interesting.

07:43 Now let's talk about the technology of Metaverse.

07:47 How do you see this roll out in the future?

07:50 So let me start with where is the Metaverse today.

07:55 We see Metaverse mainly on gaming platforms,

07:58 and we see hundreds of thousands,

08:02 hundreds of millions of users, active users per month

08:05 on immersive gaming platforms.

08:07 On the corporate side, we see an emerging suite

08:11 of Metaverse technologies leveraging augmented reality,

08:17 virtual reality, mainly in the area of high risk,

08:20 for example, surgery, or high expense

08:23 when it comes to complex manufacturing processes.

08:27 It's hard to predict where Metaverse

08:30 stands in decades from now.

08:34 But one thing is very, very clear.

08:36 The Metaverse journey and the adoption is underway,

08:39 and there is an increasing economic opportunity out there.

08:44 In our research, we predict that the Metaverse

08:47 could reach a market size of $700 to $900 billion by 2030.

08:55 But to reach this scale, I think it's

08:58 important to come up with innovative and groundbreaking

09:02 use cases in a format which is enhancing the user

09:07 experience in the private as well as in the commercial world.

09:13 I think that's an important element

09:15 to unlock the potential.

09:19 Also based on our studies, we have

09:20 identified five battlegrounds for the Metaverse.

09:25 And let me highlight the most important one,

09:28 and this one counts for 2/3 of the projected revenues

09:34 in the Metaverse, and it's the virtual experience.

09:37 So beyond gaming, entertainment, fitness, on the private side,

09:42 we see really compelling and innovative use cases

09:46 on the corporate side, mainly in the area of productivity,

09:52 innovation, but also health care, digital marketing,

09:58 educations, our area, which will significantly, significantly

10:01 benefit from enhanced virtual experience in the Metaverse.

10:07 So the Metaverse is real.

10:09 The Metaverse is real, and I wouldn't

10:11 be surprised if the Metaverse grew faster

10:15 than other influential technologies,

10:17 like the internet in the past, given the pace how

10:25 the Metaverse is accelerating.

10:27 What are the cybersecurity challenges

10:29 that organizations are facing today,

10:32 and how they can overcome that?

10:34 So I spoke about cyber a little bit

10:38 when we talked about generative AI.

10:40 Cyber for us is a key enabler.

10:43 And to put this in this context, we

10:49 are seeing more and more digital business models,

10:53 and digital trust is a key, key enabler

10:58 to make this business model successful

11:01 and to scale these business models.

11:05 So cybersecurity is, let's say, it's important to win,

11:11 but if you don't get it right, you are out of the business.

11:17 So what is the challenge?

11:19 The challenge for me is less a technology question.

11:24 For me, it's more a question to find the right talent

11:27 to set the right governance across the organization.

11:31 It's not just an IT topic.

11:33 It's across the organization.

11:36 And what we see based on our work

11:38 with clients around the globe, it's often a limiting factor

11:43 when it comes to talent.

11:44 It's a limiting factor to scale.

11:46 And we see this in some areas.

11:48 Cyber is one.

11:49 The other is having the right cloud talent,

11:51 and so on and so forth.

11:52 So overcome this challenge is really

11:55 building this talent in-house, and double down

12:00 on investing in cyber talent, supported by external resources.

12:06 But companies will not get a relief

12:10 on building these capabilities in-house.

12:12 Mr. Oliver Bittner, Partner Digital Enterprise Technology

12:16 at Bain & Co.

12:17 Thank you for being with us today.

12:19 Thank you for having me today.

12:21 Thank you for watching to another episode of Tech Talks.

12:24 Goodbye.

12:25 [MUSIC PLAYING]

12:28 [MUSIC PLAYING]

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12:34 (upbeat music)

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