OPEX 222. Welcome, bon dia. Sonny. To OPEX 222. Rethink, react and transform. My name is Pedro Maestrelli and I work in the intersection between digitalization and operations across different industries and across different verticals. And my name is Sheva Rossam and I help companies to identify and capture sustainability opportunities across their value chain. We are super excited to have you with us and as people across the globe joining today, so make sure to be proactive in the chat and Q&A bringing in your different perspectives. Now, successful transformations depend highly on your organization's ability and agility to rethink, react and transform. Today, we want to give you new perspectives on doing just that. On what it takes to rethink your operations, on reacting to change, and finally, in transforming themselves to be become much more fit for the future. We have divided the program into three different chapters. We're going to start by exploring how transformations are actually successfully made, or basically how you make a successful transformation. And then, we're going to go into sustainability and how it really needs to be much more embedded into your operating model. And finally, we're going to be looking into digitalization and automation. And how it will deeply shape the future of your operations. And through the different chapters, we will give you insight on how to navigate an ever-evolving and uncertain operating environment. And one of the main factors that is contributing to that uncertainty is climate change. So, climate change is impacting every corner of the world now. And I think we can definitely say that we are feeling the impact. And I think so are you. And depending on where in the world you are sitting, some have felt it more than others. An event that we are experiencing today, such as stronger storms, extreme heat waves and droughts, extreme wildfires, flooding, will only accelerate and much more severe impacts are in store if we collectively fail to rise to the challenge at hand. And 90% of the challenge. And 90% of emissions associated with many companies and products are coming from activities down and up in the value chain. Now, if 90% of the emissions associated is coming from the value chain, then that's also where the substantial business risks, benefits, as well as impact lays. Yeah. So, to survive and even to thrive in this business environment, you need to be much faster to react to change. You need to be much more able to take decisions in a much more agile way. And it's not only because of the climate change. It's not only because of the geopolitical shocks that we're seeing out there or the health issues we've been through the last two years. It's really because if you're not able to transform yourself over and over again, you're going to be left behind, you're going to be left behind. You're not going to be able to follow what is needed. Transformation, it's really not solely about financial metrics or successfully completing a project or a portfolio of projects. Transformations is really about taking a group of people from point A to point B towards something that is much more purposeful and that will really lead your company and hopefully also the planet in a better place. And today, we are here to do just that. Just to explore. And to help us do that, we have invited three inspiring companies. Knauf, Insulation, Novo Nordis and Fujifilm Dyson Biotechnologies to the studio. We have also invited two thought provokers, Martin Lindström and Pascal Bourne to help us shine light on the subject. So, Pedro, let's get started. Let's get started. Welcome, Martin, to the studio. Thank you, Pedro. Good to see both of you. Fantastic. It's also good to see you. Martin, let's just kickstart our discussion then a bit on the transformation. Some people might say that transformation is a bit of a buzzword. So, let's try looking into a bit in that. How would you describe transformation and how you differentiate that from just continuous improvement or incremental change? That's a good question, Pedro. I mean, I'll be frank with you. We are hitting a transformation fatigue at the moment. And it's typically rooted in complexity and never-ending deadline. And as a result, of course, it dilutes everything. So, if I should, first of all, redefine what transformation is, at least in my own words, I tend to say it is to speed up a customer recalibration of your organization. And by customer, I mean both the external and the internal customer. So, to speed up a customer recalibration of your organization. Now, Pasquet, Blaisil Pasquet once said, I wanted to write a shorter letter, but I didn't have the time. So, if I should boil the essence of transformation down to one word, encapsulating the key to a successful transformation, well, then I would, and I hope you're sitting tight, everyone, right now, I will use the one word, which is empathy. Let me tell you a little story, just give you a bit of a subtext around this. So, in 2011, two young guys were sitting in a dorm room smoking weeds, and they were completely off their head. And, you know, what these kids are doing, of course, they're shooting selfies. So, they shot a couple of selfies, posted them online. And, of course, the day after, hell broke loose, right? Parents were freaking out. And, of course, these kids were connecting again, saying, what the heck went wrong? And one kid is saying to the other, I wish that we could retract those photos. Well, guess what? A couple of years later, Snapchat was born, and is today a $100 billion company. Now, why do I tell you this story? I tell you this story because what's so interesting, there is a direct correlation between empathy and common sense. And what these two kids actually had, or three kids actually had originally, was empathy, because they felt the pain themselves. And they recruited like-minded kids, which had a similar experience. So, it became kind of a culture. So, if you should try to be a slightly consulting structure, just for a second, if I put up a chart like this, where you have should and do on the left top, and you have don't and shouldn't on the bottom. If I should take those two kids and what characterized them, well, in the very top, you actually have empathy. And this is what's so interesting, because it's a direct correlation between empathy and common sense, because it's both to do with seeing the view from the customers or the individual's point of view, right? So, what's interesting, as these kids are growing this company, it's based on common sense, because, of course, common sense is empathy. And that's the reason why a lot of startups are doing so well, because there are so much in tune that recalibrated to the consumer's mindset. But then, I don't need to tell you, a little bit later, I think it was in 2000, what was it, 2016 or 15, that Mark Zuckerberg wanted to buy the company, this famous deal for $3 billion, and they declined. Now, in various records, and when I spoke to the kids, they said to me later on, we didn't want to do it, because we were afraid of what you see in the bottom, which is the nonsense part. This is where empathy disappears out of the organization. That's where you employ compliance and conduct, you have rules and regulations and all this stuff. So, my message here is that the reason why you're seeing issues with transformation today is, in the end of the day, lack of empathy, the lack of understanding of customers and the internal folks in the organization, which leads to fear. But Martin, if that is the case, how do we overcome that? How do we actually bring back this innovation or this Snapchat, maybe not the pot part, but at least some of the other things? It's a good question, Peter. Listen, in the end of the day, I had to go really deep. Do you know what, let me just show you guys a video. Take a look at this, and then I'll tell you a little bit more. Yeah. The three people on the left are actors. They've been briefed to stand or sit when they hear this. Everyone else that's brought in is a genuine shortlisted applicant. They've been given no instructions other than to fill out their forms. My team and I were secretly watching from another room. The more socially compliant a person is, the more they're likely to look to others for signs of how to behave. This is going to be your spot. And the more people, the greater the pressure to join in. In this case, whether to stand or sit. Those people that didn't follow the crowd were removed. I'm going to have to lose Amy, sadly. Amy. With me. Once we had a full house, we got rid of the actors. Leaving us with a room full of compliant people, standing up and sitting down, even though nobody told them to do this. Hello. A room full of compliant people. Isn't that sexy, right? Super sexy. Here's the point of all this stuff. The point is, there's two issues. One is that peer pressure, which also quite often is linked with psychological safety, which is a topic Amy Edmonds and I have worked a lot on over the last, I think, 10, 15 years. The other component which is important is what I call the default behavior. And just to give you an illustration about how difficult this is, I'm not sure. So I have to ask Shiva and you, are you brushing your teeth with your right or your left hand every morning? With my left, at least. I do. Left? Shiva? With the right as well. Right. Oh, okay. Right as well. Okay. Here's the challenge to you guys. Imagine that I asked you to brush your teeth tomorrow morning using the opposite hand. Now, most people, when I ask people to do that, will say, oh yeah, I think it's possible. Do you know what? Less than 5% are able to do that. And I bet you, just try it for tomorrow. Everyone watching, try to do that. This is how hard it is to do transformation because it requires a change of behavior. So if I should put up a little model of mine, it's very simple. You have the unconscious competence. That's where you do things in the default way, right? Now I'm asking you to brush your teeth, introducing this change, and now you have to do a conscious incompetence. That's where we'll have a 95% drop off rate. And then you have to practice news habits. And that's where transformation falls apart. And it's first that states, it becomes an unconscious competence. So as you can see, transformation is much deeper than just the word. It's to do with psychology in the end of the day, right? And that is a really great perspective. Thanks a lot, Martin. And we're going to come back to you a bit later on the event. Now, let's shift a bit our focus to our first guest and the first company, Knauf. But before we do so, as Shiva said in the start, please be proactive now in the Q&A session. Write down a couple of questions because we might have a couple of minutes to answer some of the questions to you. Now, without further ado, let's hear from Knauf Insulation, a global insulation company, and how they have transformed their operations. Let's hear them out. We're like European Union. We have a federation of different local markets, which allows us to be very agile and very close to the customer. But on the flip side, it's very fragmented. So that means that everybody is doing in their own way, in their own specific ways. Things that could be harmonized and could be standardized. I still hear too many times that this specific person is a magician. He's able to achieve this. He's able to achieve that. But this plant is struggling much more. And we need to improve the person. And I told my team, I don't want magician anymore. We don't want magician in the organization. We just want to have clear processes. How to optimize things. How do we behave when we face this situation? How do we behave if we face the other situation? As soon as we have one superman, we have a big weakness. Because if this person is moving, he's sick, he's sleeping, I know he's going to pension, we create a gap. And we don't want this kind of situations. Having as much as possible harmonized process. We don't want to have standardized process, but to harmonize process. Of course, every region, every plant has its specificities, but harmonization is key. When we launched this project, this OTI project, focus on the other entry team, the answer was, finally. Finally, you take our day-to-day life at a high importance level. You see how important it is for the customer, how important it is for the customer service to improve the way we are working. And also, we could optimize the bottom line. OTI helped us bring these fragmented elements together and build a harmonized approach to deal with the customer needs and serve the customer. It also had the benefit of helping the customer service in the backend. For the organization, the biggest surprise was the fact that for the first time, people were onboarding and consulting differently about the change. Before, you would get, this is how you have to do it and execute it. This time, because you have involved the people from the start and they were part of the solution design, in the end, they were, let's say, co-opped. Owning this solution. So, therefore, you get from the people the sense of responsibility and ownership for the work they're asked to do, the changes they're asked to do. Hi, Val, and welcome to the stage and welcome to Copenhagen. Thank you for having me here. And thanks for making the journey. I know you're based in Brussels. In Vizier. In Vizier. Okay, fantastic. And then I think it was a really nice video. I really enjoyed. And I think the first thing we need to do is establish a bit what is exactly is order to invoice for Knopf. That might be common sense for everybody out there. Well, if you ask today what order to invoice is, it means the process from receiving the order from the customer all the way till the invoice is issued. If you ask two years ago, you'll get multiple answers. And why is that? Because as you heard in the video from Jean-Paul, you know, there's a lot of different ways of looking at this. And also, it's a question of maturity. Now we start talking more about processes. We start talking about end-to-end words that did not exist, I'd say, a few years ago. So, we're getting more mature. We start talking about processes. And I think order to invoice is one of the first examples of, you know, when you bring this process thinking into the organization. Okay. And, you know, normally when we talk about transformation and a couple of things that Martin said, you know, less no-nonsense and a bit more common sense. What was the trigger point for the transformation? What has actually started all of this? The trigger point, I would say, was COVID. It was COVID. It was the situation. Well, everybody has lived through the same thing, I suppose, in any country. So, there's a huge sense of uncertainty, a huge sense of, I would say, anxiousness. And we were coming out of the COVID situation sometimes around June. And the CEO at the time said, okay, well, we need to do something about how we deal with the customers coming out of the COVID crisis. So, where should we go? And I said, well, look, we've done lots of different pilots in different countries two years before, already implementing continuous improvements in services. Now is the opportunity that we go in one way, in the same approach, to address this point and improve the actual order to cash process. So, I would say, you know, it was an accumulation of different steps that were set in motion prior. And COVID was the spark. Okay. And then the leadership said, you know, we need to start something and then we get going. If we look a bit on the results of that, what are the key financial metrics or operational metrics that you're looking for when you do this? Well, there are different ways of looking at this, right? So, we have a clear target in terms of, you know, efficiency of the process and where we want to get in terms of lean rate, you know, and value adding time and so on. But to me, that's secondary. Okay. The most important today is not really looking at what did we say financially, but actually did we impact the change in behavior, but Martin was saying, right? So, and there are several indicators of that, you know. I'm sorry to interrupt you, but you say change in behavior to whom? To your people? People working in the process, right? So, switching from the old ways of working to the new ways of working. Yeah. And we're looking constantly at lean rate, right? So, are we improving the efficiency of the process? It's early stage of this project because we started end of 2020. We just rolled out the harmonized process in 80% of our markets. 80% of your markets? Yes. I mean, when you say just 80% of your markets, I think many people out there will think that that's actually quite ambitious, but okay, let's continue. We're an ambitious company. Yeah, that is great. But so, just implementing the standard governance, standard first harmonized process process, we saw an improvement, an immediate improvement of around 6% of efficiencies, right? But to me, that's just a start. I know we are going to achieve 20 plus percent efficiencies in the coming two years because of this and because of all the solutions that we have identified, that our people identified, and I'll come back to that. But one important indicator for me is the approval rating of this program. Ah, yeah. Right? So, okay, you can name it with different names. We look at the engagement and satisfaction of people involved in the transformation with this transformation. So, today we have around 80%, let's say, stakeholders involved in this change who are satisfied, supportive, engaged in this change, right? And to me, if I were a politician, I'd say, well, that's great. I'm going to get reelected, right? Yeah. So, that means that people are accepting the change. And they're accepting the change, the behavior that we heard just a moment ago from Martin. And I think it's an interesting point when we look at that. But I would also assume that not all regions, not all countries are the same and the same maturity, like you said before, right? There were a couple of things. How do you deal with that? You deal with respect, right? You accept and you respect the differences because that's also what makes us strong. But you approach it. But you approach it. And you engage these people from the start, right? So, you bring them and you explain. You really invest time in explaining them why it makes sense. Why do they need to give their time, their effort, you know, on top of already super busy day to do this change, right? So, spending time conversating with people at the beginning, getting them on board. This is what, you know, brings people together around this change, right? I know. I think it's, of course, a fair point. And now, just driving a bit onto the standard part, because you mentioned that a couple of times. And you say, now I have a standard. There you go, France, Germany, or whatever other country that you're going out for. Are they all equal about that standard? Or how do you make sure that that standard is the standard, if you know what I mean, like the quality standard? They were part of this, they co-creation. But secondly, they realized through these exchanges that they're not so different from the others. Yeah. Right? So, I think it's very important that it's not done in a top-down exercise. Here's the standard. Go run with it. Yeah. It's like, okay, here's the problem. You are in the process. You have all the keys to the solution. So, let's build it together. That's a great point. I'm looking here, and we got several questions already. So, let's just look into some of them. There is one quite specific here around, can you elaborate a bit on your view about the harmonization versus the standardization of the processes? And I'm not sure what is exactly behind that question, but I believe that one thing is a standard, the other thing is how much are you allowed to deviate from that? Yeah. Yeah. Well, I think we use less the word standard, because that probably has a bad connotation. But in the end, it comes back to the same thing. What you're saying is correct, is we're trying to find first is the common ground. And on what we agree as a common ground, what is the standard way of doing things? And then accepting what we don't agree, because it's specific to the local market, specific to a segment, what are the rules that we accept that we deviate? Right? And you try to... And it's easy to say it. I think it's much more hard to put these corner flags in the right way, or at least I experienced that in other places. If you take order intake, right? So, the way of registering orders, that can be done in multiple ways. But at the end of the day, it's the same way of inputting, because you have the same system on the back. At least for us, it's a bit easier, because we have all a global template ERP system. So, if you follow the system steps, in the end, that's how you do it. So, that becomes your standard. So, on those things, harmonization is easy. The steps that you take are basically the same for everyone. Right? Other cases, you know, dealing specifically with some customer segments. You know, we have project business, we have DIY business. So, you know, and then in different markets, you know, you have different types of channels, because, you know, the construction business is very different from country to country, in some respect. So, you allow for those things to stay local, because that's how the customer, and that's how your interaction with the customer is. Okay. And then, actually, this is one of the questions here. What is the impact on your customer satisfaction? You mentioned a bit about the internal part, but what is that for the customers? Well, and that comes to the local specifics. Today, we don't have, I would say, a global way of measuring satisfaction. I think we're going to move to that from a group perspective, not only from our division. So, the net promoter score will become something, you know, normal in the future. Today, each country measures either net promoter score or customer satisfaction, etc. But, so, if you look at these indicators in each country, they are improving, right? But, to me, again, I would say that's secondary. I'll come back to the approval rating. So, because if I have an engaged group of people who are really dedicated to the change, I know that their satisfaction will eventually trickle down to the customer. So, if a satisfied and engaged customer, employee, that will translate into the engaged customer as well. That is fair enough. Then, just one final question to you. When it comes to the capabilities, right, of your people, I think there is a lot of talk around there that we don't have enough capabilities internal, and now you start this big transformation. What are the biggest changes you see in there from your people? Well, the, I would say that the first thing we did, really, at the beginning of the project was to install a standard governance approach, right? We had clear ownership of the process. We had clear structure in, you know, global ownership, also local ownership. And that allowed to connect and trickle down the changes, right, that we were implementing. And that also helped the local, let's say, consultants, process consultants. They also were the ones who look in the performance of the process, but also are supposed to identify whether the capabilities development needed. Okay, so it was different. To address it through the governance, I would say. Now, we're definitely running out of time a bit here in Evolve, but just for it to summarize to the people watching us out there, what are the key takeaways then that you would like to leave with them? Maybe one short, one mid, and one long-term. Look, I think I mentioned through our exchange, but the first thing is that you have to sell the change. You have to make sure that people believe in the change that you're presenting to them. And you have to spend time and first understanding them, but also explaining, convincing them to make that change. Second is that you need to make them part of the creation of the new solution, right? So co-creation of the solution, because then they will take the ownership of this. And then what you need to keep in terms of long -term is that you have to continuously communicate. Even small successes, even small gains, even small changes, you know, have the people who are in the process talk about them. And that will create that domino effect and that movement. Thank you very much, Val, and thank you for being with us today. Thank you very much. Yeah. So most of you have been sitting in front of the computer since early morning. So let's just go for a short break, three minutes, fill up the coffee cup, or just rise from your chair, shake some energy in you, and see you back in three minutes. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Welcome back from the break. And for the ones that still chose to sit in front of the camera, we hope that you enjoyed Eric's drawing. He will throughout the event summarize the key highlights in his illustration. So let's deep dive into chapter two. And to do that, we have invited Martin to the studio again. Hi, Martin. Hi, Kille. Welcome. So Martin. So Martin, the last couple of years, we have seen sustainability dramatically rise on corporate agendas around the world. And it has been triggered by many different factors. And I believe that one of the key factors is us realizing how vulnerable we are to external shocks. And so companies are in the market. And so companies are in the market. And so companies really want to be part of moving and contributing to positive change. And I'll be frank with you. And I'll be frank with you. I think the biggest mistakes companies are doing right now is to squeeze sustainability into one department and outsource all the responsibilities to those people to solve that problem. Right? And that's really history repeating. I mean, that is what happened with marketing, which now has somewhat of an existential crisis, I think, in a lot of companies around the world. It's what's happening with sales. These people over there are responsible for sales. It's not me. And you can't do that with sustainability because basically everyone needs to own it. Right? So what I think we should do now is to reset the whole org chart or redefine functions and wave sustainability into the whole game. I mean, if you think about this, you have sustainability. You have the comms department, you have the marketing, you have the marketing. And then I put it in with a dotted line, the culture area, because no one owns culture today. And as Val said to you just previously in the previous interview with Pedro, well, that is super important as well. So what I tend to say is these things have to come together and they have to be surrounded or driven by one single purpose. So that is the first piece of feedback to you. The second thing becomes even more complex because here's the issue. You are saying we need to have a big change right now. That's true. But I don't need to tell you. It takes quite some time before we can see a real sustainable change in our environment. Right? Probably you and I won't see it, to be frank. So many years ago, around 15 years ago, I developed a methodology which I call the PGS. It stands for Perceived Justification Symbol. And it really is to take long-term objectives and make them become short-term, at least from a perception point of view. Let me just give you one example. Acrofresh, right? Acrofresh have three different colors. And when we did a research study on that, we had people brushing the teeth using first Acrofresh with all the beautiful colors on it. We didn't explain why they were there. And the second time we did exactly the same. We explained for the respondents that red means it makes your gums stronger, white means your teeth are whiter, and of course the calcium is the blue. But when people are brushing away using this toothpaste, people felt that the toothpaste with all the colors were much more powerful than the one without the colors, even though it's exactly the same. And this is the foundation of PGS. PGS, if you go even further, is exactly what we developed in partnership with P&G back in 2005, where we learned that people don't want to buy flat batteries. And if there's dust in a store on the batteries, people don't want to buy it. So they want to make sure there's batteries in it. And that battery power was developed by the power check concept. Now, this is interesting. We're taking intangible stuff and making it become tangible. And that we then further worked on with Shell some years later, where we said, well, let's make sure the driver in the car can see if they're sustainable. So we had a little potted plant growing. So if you have a light sort of speed, it's actually growing faster than if you're rushing ahead down the street. What I'm saying to you right now is you have to break down these huge issues down to small, tangible, bite-sized objectives, make them emotional, and wave it back to the customers and the employees and the organization. Then it's possible. If you have a goal, which is 2069, do you know what? People will give up after three months. And I think that also goes very much. I mean, what you are onto is the change of behavior. And I mean, the whole stintuality, and especially with the circular economy, is us rethinking our behaviors and the way we are doing things. So Martin, thank you so much for your inputs and for your thoughts. We unfortunately need to move to the next subject, but we will have you back for more talks later. So thank you. And Martin just shared some reflection on how to change behaviors. And one key important to be able to create a big change when working with sustainability is to be able to mobilize different stakeholders to row in a direction. So how do you get not only 1,000 or 2,000, but 60,000 suppliers to row in the same direction next to you on your sustainability journey? This is the topic which we will deep dive into now when we turn our attention to one of the world's largest companies that are doing just that. Thank you. What I believe is that in every parts of the organization, even if you are in Denmark or in US or UK, there are people with a green heart. So our ambitions was really to have that initiated and activated. And that has been so great to see colleagues tapping into our agenda. Our environmental strategy is called Circular for Zero. So it's about having zero environmental impact by implementing circular economy. We have divided it into three main sections. So the first section is about circular supply. So that is our suppliers, how they produce our products and about the products that we buy. It's about circular company, which is our own footprint. And then it's about circular products. That's our own products. You can say how we develop them and how we are treated them after our patients have used them. So we used to focus on our production. So our manufacturing kind of a footprint, you know, focusing on more waste and water. But right now we are expanding that. So now we look across the full value chain, still focusing on, you can say, water and waste, but of course also CO2 emissions. We are expanding from a narrow company footprint to a full value chain from our suppliers to our end products. And one of our key elements is our transportation. And our transportation, that's the transportation of our products. So here we have entered into two partnerships. The first one being with a company called Sky Energy. They produce sustainable aviation fuel that will enable when we fly our products globally. Then instead of using conventional fossil based fuel, then we use sustainable aviation fuel. We always minimize using flights. So of course, we should focus on using ships or trucks. And that could bring me to the next partnership. We use Maersk as our primary carrier of products via ships. And we went into an agreement when we are using their eco ships, where they are sailing on biofuel. And of course, here by minimizing also our environmental footprint. In terms of circular supply, we focus on suppliers that can showcase that their products are eco-labeled, so that they have a stamp on being more sustainable than a conventional one. That's a long journey because not many eco-labels exist today. So here we also have a task on developing new eco-labels together with some of our suppliers. The circular fossilized strategy has created a lot of energy in the organization. 2,500 colleagues have actually joined what we call the movement, which is kind of a green underground organization where we share materials. They can ask questions to us. And that have really created, you can see, a lot of great initiatives. We know as an industry that we might be lagging a little behind. You can see fast consumer goods. Here you already see a movement in greener products. We have not seen that yet in our sector. So that is something that we are looking out for. And hopefully we can really push that agenda and at least make products that are more sustainable available for our users. We can, as companies, as public partners and as suppliers, work together across the value chain to make sure that the ultimate target is reach, which is really to go towards zero. And hopefully in 2045, which is our internal target, we will have zero carbon emissions. Warm welcome to the studio, Durethe and Jain. It's really nice to have you here with us. And I am very excited to hear more about your circular for a zero strategy. And to you guys listening as well. Join us in the discussion. Ask your questions in the Q&A. We will try to address that in our conversation. Now, you are right now on a journey to completely transform and reinvent the way you are operating to become fully circular by 2030. And Durethe, you mentioned in the video the importance of mobilizing people and that regardless of where they are working in the organization, people want to do good and have great hearts and green hearts and great hearts as well. Yeah. So can you just elaborate a bit more on how you are mobilizing what you are calling the movement of 2,500 coworkers? Yeah, sure. Thanks a lot for the question. And that has been one of the key cornerstones also in our strategy and in our transformation. And I want to go maybe a little back. Because it started already when we did the strategy. We did that back in 2018. And that could have been a strategy just centered around my department. I mean, we are 10, 15 people. But we decided that that should be a true transformation. So we actually created the strategy in eight to nine months. That's a long period for a strategy. But we did that because we wanted to be everybody's strategy and not only our departments. So throughout the month, we engaged with colleagues globally, every part of the organization, every corner of the world, more or less, via interviews, via workshops, and so on. And I did the math. And I think we engaged up to 350 people creating the strategy. That meant we already started the movement when we did the strategy. So when we launched in the beginning of January 2019, then I kind of felt that we hit the ground. So at least you can say 7% of the ground running. So at least you can say 7% maybe of our colleagues already knew. So we have really built on that culture that people should be engaged and being part of, you could say, the strategy. So on top of that, we have created what we call Join the Movement, which is a collection of colleagues that could tap into workshops. We have a range of workshops. webinars and webinars and webinars and webinars and webinars and so on. So with the aim of educating and making this everybody's responsibility. And I see the results every day from every corner of the world that could be localized, you can say, planting a tree in Brazil, or it could be, you know, reusing some plastic parts in Bowswear. And that's kind of, you know, having everybody being part of that, that has really, really been passionate. The people coming together and actually working for a greater purpose. And how does that compare to your formal structure? I mean, now you have the very ambitious strategy and you have the movement of people that are very passionate. But then I suppose that you have more colleagues that are maybe not part of what is classified as the movement. So how are you then building the capabilities and ensuring that everyone, regardless where in the organization is working towards your targets? So you can say, of course, we have the formal structure. So our strategy consists of, you know, seven strategic tracks with, you know, formalized steering groups, project managers, and so on. So that's more the formalized part of our strategy. But I think when we supplement then with the movement, then we also mobilize people that are not seen themselves as part of the specific tracks, but just like an add-on and a supplement to that. In that way, we push our leaders, we push the organization, you can say, both from a more structural point of view, but also from, if I can say, from the bottom. So really, you know, if you have a manager that might not be so keen on the whole transformation of the transformation of the environment and the whole way. And then when you feel the push from your employees, your colleagues, then you also start to think, okay, maybe there is something here that I want to tap into. No, but I just think it has actually created a lot of informal networks in the company. Because one thing is a big strategy and the tracks to follow there. But I really see that colleagues are connecting across departments and across countries to have sparing sessions and learning from each other and sharing what they're doing. for inspirations for inspirations for others. So the informal networks are definitely being created as well. Jane, when we talked before this interview, you mentioned the importance of not only creating the networks inside of your own company to drive and improve your own operations, but the importance of going outside of your gates, collaborating with suppliers, but even competitors as well. Can you just elaborate a bit and share with our audience that just the whole discussion about the importance of the change in the business right now? Yeah, I think it is crucially important for everyone now to understand that just doing business on our own is not going to solve that massive challenge that the environmental challenge is. And I do see that we are now connecting on that joint purpose of actually making the change across industries, but also between competitors. We have the same challenges on reducing our footprint. We have the same challenges of reducing plastic consumption. So I see it almost weekly. These requests for collaboration forms being passed on, because how can we jointly solve that massive challenge, whether it's taking CO2 out of product distribution, or use or taking a look at the single-use systems that we're using the same time to make the same time to make the same. How can we actually work on getting that material back in a value chain and be reused or recycled in a good way? So it's happening everywhere because everybody feels the responsibility of doing something about it. So it's really utilizing the whole ecosystem to drive the change. And how do you, I mean, it is still like that for many companies that, okay, they are the competitors. So we need to improve our value proposition. But can you just share how you are doing it when you are inviting the comparers to the table to solve some of these challenges? And I think it's about the daring. It's about also being the one that puts out, you can say, sharing what we are doing and not hold back. If you are in a room with your competitors, then everybody might be, you know, we look at each other. Will you go first? Should I go first? And I would like that our company takes the role as first movers. So we should be the one that shares both what we are doing, but also the challenges that lay ahead of us in terms of what we can then solve together. So being the company that puts ourselves in the spot, you can say, and just say, hey, you know, we have this challenge. We have this kind of thinking around it. What do you think? And at least that has been the position that we have deliberately taken on the challenges on the environment. I think something that we are seeing for many of the companies that are seen as sustainable leaders is that they do have a clear purpose with the business. And that's just connecting to what Martin also touched upon. But then the second one is going beyond the business and being able to mobilize your ecosystem in an effective way. And I think this is just a great example of that. And I mean, you have a large number of suppliers, 60,000 of them. And for the companies, for some of the companies that I've been working with, the supplier base can be very, very diverse in terms of maturity in capabilities. And what challenges does a big, diverse supplier base bring when you want to mobilize 60,000 suppliers? Yeah, but it is a challenge, you can say. And definitely, as you say, they are very, very different. So you can say from key suppliers, we are very much depending on in terms of creating our products to smaller suppliers where we buy, you can say, pens and papers. But the approach that we have taken is to, of course, focus a lot on the key suppliers. So the one that matters the most and where we have a large kind of leverage. And what we ask them to do is simply to switch to renewable power. So instead of asking you 10,000 things that they can do or maybe should do, then ask one thing. And that also the transformation that we have been on ourselves. The first target we achieved was back in 2020, where all our production units were powered by renewable renewable electricity. So by asking one question of them and being able to assist them in how can we then achieve it. So that's, you can say, for the key suppliers, we simply share, you know, how do you buy renewable electricity in your market? We, I mean, we know that, so we can share. So that's part of it. And then for the majority of the suppliers, then we put it into the contracts. So whenever we renew the contracts, then there is a clause that you, you know, if you want to do business with a new business, then you, you have to use renewable power whenever you supply to us. And then we give them, you can say, a couple of years to figure that out. And then they will do, hopefully. And you have business all around the world, and some markets are more mature than others. And what I'm hearing is that you are putting the requirements and also making sure that you have cleaned your own house, that you are actually doing the same things. But also assisting the bigger ones. But in some markets, they might need much more assistance. So this is maybe a question to you, Jane. What role and responsibilities does companies have when assisting, when they are putting requirements on their suppliers, but also when assisting them, especially in markets that are not developed or maybe even more hit by the climate change effects that we are seeing? Well, I think we have, as Duret is alluding to, we are taking the approach that we are not asking people to do stuff that we are not willing to do ourselves. And we will always go the extra mile to help them off and find the right solutions. But all countries are different. I mean, right now, if we look at our production in both Brazil and China, those factories are located in what is defined as water-scarced area. So we go in and say, well, with that knowledge, we know that we have to do all we can to actually reduce the amount of water that we are using in production and are finding ways to reuse the wastewater to the maximum extent. So I think it's really important that we understand the local context and the environmental challenges and environmental solutions that are available in the markets where we operate, and that we actively go in and take that responsibility. to lower our impact. It's not going to be done in the same way in the different factories around the world. It will be set in the local context. And the super good answer. Thank you for that, Jane. And we have a question from the audience. So let's invite them in. I have a question from Anders, who's asking, so how do novel balance profit and sustainability? Even with the movement, they still have shareholders and have to take tough decisions. I wonder how they assess the value of sustainability versus bottom line profit. So I think our EVP of product supply said it quite wisely just recently. He said, well, being a sustainable business is a prerequisite for being a business in the future. So it's not a choice. It is something that you have to do to be relevant and to be there on the long term. Of course, we are also a for-profit company. So of course, we have to make profit. But I think I see a management team that are willing to make the required investments and actually also push for technology solutions that will take us to the next step. Burete talked about sustainable aviation fuel in the video. We've actually gone out and made agreements on that, even though we don't use aviation fuel ourselves or we don't own any aircraft. But that you go beyond your value chains and are willing to put monies into technologies that do something better for the environment. I think that's where Novo is taking a commitment. So we are playing that part as well. And in some parts of the business, I mean, you have set ambitious targets and you are well on the way to try to achieve them. But there are in some parts of the business, there are still gaps. And just connecting into the discussion with Martin about steering in the unknown. I think people are very interested about just hearing your take on, OK, when you don't have all the answers and just navigating in this complexity. How do you do that? But that's a given, right? And also something that I personally find very difficult, to be honest. It used to back then make the decision that we were making were kind of, you know, we can look 10 years into the future and they were still hold. Now that's not the case. But I think the worst thing you can do is not to act. So at least whenever we make a decision, then we think that's the best decision I can make with what I know now. And then, of course, look at the risks and there might be risks and then being clear about them and then follow them and then be ready to make another decision, you can say, in three or four years, even though you thought that this solution will be, you know, a 10-year solution. But that has been difficult to us, to the organization, to kind of get a hold on. That's the new reality. So maybe that's one of the most challenging part of being or doing this right now, I think. And also the fun part as well. No, but I think dare to take the steps. The most wrong thing you can do is to take none. So don't wait for the ideal solution. Again, when we talk transport, the ideal solution is not there yet. So sitting and waiting for 2028 to happen, to me, that's not a choice. So you have to then go in and look at, so what can I do? Can I avoid shipping by air? Can I reduce the number of pallets that I need to put on a truck by condensing my packaging sizes? So you can act even though the solutions are not there. So I would really encourage people to take a look at their own business and, you know, avoid, reduce are the first good steps to start on. I think that's a great takeaway, but we still ask you to give the audience your three key takeaways on how, I mean, if they want to do a similar journey to them, as you have done. Yeah. What are the three key takeaways that they should take from this conversation? So at least I think the first one is kind of, you know your data, know your impact, know where to focus. That's, understand that and have that laid out. But do not spend too much time on numbers. I mean, get it right at a certain level and then you can kind of go and act. And yeah, that's the first one, I think. And then I think partnerships is super important. We need to engage in partnerships to solve these significant challenges. None of us can do it on our own. So really go out there and engage, create the partnerships that support taking environmental footprint out of your business. That's right. And the last one and maybe some of the more longer term is, of course, ensure to integrate it into the business. But what does that mean? But that means that every decision you make, then sustainability or environment is part of that decision. So when you design a new product, you need to understand the footprint of that new product and how that will kind of evolve in the future. So make sure that this is not our departments that are doing this, but it's, you could say, the whole company, our nearly 50,000 colleagues will help us on this journey. And it requires innovation and technology. And it again requires us to engage a lot more with other partners to find these new solutions that will, create the sustainable products in the future. But it can be done. It can be done. It can be done. And on that note, I mean, I can sit here for many more hours and discuss this topic with you. Huge thank you to you and best of luck in your journey moving forward. Thanks a lot. Thanks for having us. So, after this amazing conversation, now we go for another short break, maybe a cup of coffee, or depending when you are in the world, maybe a shot of tequila. See you around. Really nice. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. Bye. succeeding on the scale and why they do so. Yeah. Well, listen, I think in my opinion, there's two factors, perhaps representing 80% of the issue out there. I mean, a lot of people will right now say it comes down to the lack of capabilities, but I actually think it goes much deeper because the question you're asking is super tricky. It's a little bit the same as if I was to ask you, why do you fall in love? You will stop, pause and give up because it's such a complex question. So I think the best way of illustrating that is really to introduce for you what I call the chicken cage syndrome. The chicken cage syndrome really comes back to an experiment done many years ago where chickens were put into a cage and stuck there for half a year. And one day the gates were open to the beautiful green world, green grass, the birds were singing, everything was amazing. And guess what happened? The chickens went out and after 30 seconds, they went straight. back in again. And I call that the chicken cage syndrome. And that is what we are facing here. People are afraid and they are fearful of the unknown. So that is one factor causing that gridlock when you do transformation. The second point, well, just to explain the second part, let me just give you a subtext of it. So many years ago, I was spending time in Zambia with a guy called Malcolm Gladwell. If you remember him, he's the guy which wrote The Chipping Point and the Chipping Point and Outliers, right? So Malcolm and I were sitting there in the savannah looking at all the animals and the zebras. And Malcolm asked me one of those Christians which only a Malcolm Gladwell can ask. Which is, Martin, have you noticed people actually wear hats here, but in the rest of the Western world, we've stopped wearing hats. Why is that? Now, it was Malcolm asking the question. So you can't just fire off something, right? But he was right. And so I studied that for about a year. You really studied why people wear hats for about a year after a question in the savannah. I am obsessed, right? With details. That's the reason I borrowed a book called Small Data, right? So, yeah. So here we go. I actually realized that back in the days when we were wearing hats, there was a tipping point happening. And the tipping point happened around 1969 because that was the year where one speech was taking place, which became so profound that it actually changed everything. It was a speech by J.F. Kennedy at his inauguration. Because that was the first time in history where a president was no longer wearing a hat during an inauguration. And then they say to me, well, so what? It doesn't matter. But think about this. This is the first time where private and business started to merge together. We don't wear ties anymore. This is also that transformation disappearing. And not only that, we're always at work. We do our private stuff at our phone at work. And opposite. We have an office in our pocket all the time. And all those factors means that we, in top of what's happening right now with us sitting at home and plugging away, doing our work in the office, which is our bed with a pipeline of bureaucracy going straight into our reality, that means that we don't have a transformation. So why do I tell you about that? Because first of all, I fundamentally believe there's no such thing as B2B and B2C anymore. I call that for H2H, standing for human to human. And that means when you look at business, you have to look at it in a much more holistic way. So let me just go back to a case, which I know you and I are sharing the same client, which is Maersk. And a couple of years ago, when we started the big transformation with Maersk. Just one thing. I want to make sure that you have back to the hat at some point, right? Because I'm really curious. I'm not sure if I missed that, but I'm coming back to the hat. Okay, fair enough. But please go with Maersk. Yeah. So a couple of years ago, we started this transformation for Maersk. And what's really fascinating about this whole process was that we were stuck in China. And I'll never forget it. We went into a call center. We started to listen to the complaint customers were basically giving Maersk. And there was one complaint which continued coming in there. It was like, why are you not doing this? Why are you not doing that? What was interesting was when we mapped down the numbers of complaints, something unusual appeared. What happened was this. People actually said, why is everything force majeure? We don't understand. Because Maersk, every time a complaint happened, categorized the complaint as force majeure. And you know, force majeure is like COVID-19 is a big thing. So we went back, we realized that when the staff was sitting typing in all these different complaints, they only had to fill out one form. If they ticked force majeure. If they ticked anything else, it was three forms. And what we learned was the reason why they did it, because they're measured on time, not on customer satisfaction. And this really leads me to a very, very important point today. The point is that we have changed and designed KPIs the wrong way. And I think the best way of illustrating that is really this. If you take Maersk in the good old days, and that was really going from destination A to B, you'll notice the KPIs back in the days were really two things. Deliver on time and happy customer. And of course, earning money. Then things changed. What happened was that suddenly Wall Street appeared. Wall Street was basically asking people to come with quarterly announcement earnings so they could feed their monster of information. And that was great because the silver lining of the customer was still there. But then everything broke through. And that's exactly what happened with Maersk. Suddenly these small divisions out there actually became small ecosystems. Going in each of the different directions. And it meant that the silver lining was just the customer disappeared out of this. And this is the fundamental problem right now when it comes to organizations. That KBIs are not penetrated and united across all the different silos in the organization. So your answer to this, as you can hear, is much deeper than capabilities. It actually is the DNA of the organization you have to change. Thanks, Martin. Let's see if the people also agree with you in a little while. In the meantime, it's time for us to introduce our next speaker. Because one of the main areas where we have seen something around scalability, it's around automation. And more precisely, our guest speaker is really a specialist within intelligent automation and hyper automation. Actually, he's a recognized global expert. He founded the AI and automation practices in both McKinsey and Ernestey Young. He's a member of the Forbes Technology Council. And he's a top voice in LinkedIn. And he's a top voice in LinkedIn. Now, this is Pascal Bonet. Pascal Bonet is based in San Francisco. And for that reason, we brought you some of the key highlights of our discussion. Pascal will provide you with a roadmap to a successful intelligent automation transformation. He does that by breaking it down to four key elements. Let's watch it together. Hello. Thanks for having me today. I'm very happy to be with you. I'm glad to join this great event. Over the coming minutes, I'm going to talk about one of these decades most impactful things. and exciting technology trends. It is called intelligent automation. I will call it IA to make it shorter. It has been ranked number one most important tech trend of 2021 by the famous research company Gartner. IA is a new breed of artificial intelligence that is reshaping the way we work, we support clients and patients, and the way we successfully run businesses. To define IA, let's start with what the world is going to be. And it's not. It's not about those physical robots that we've seen in the manufacturing industry over the last two centuries. Officially coined in 2017, IA is a new type of automation. The automation of tasks that are performed on computers. So any task that we can perform, you can perform in a computerized environment can be automated with IA. Think about sending emails, reconciling files, identifying patterns on an x-ray, predicting sales. IA has become one of the most important trend of the decade because of one very important point. It is that more than 80% of the people in the world work on computers. And this means that more than 80% of workers can grab the benefits from IA to be more productive and have a more exciting work experience. All of you listening to me are working days and nights on computers. It's the same for me. So we can all grab those benefits. IA is achieved by mimicking the four capabilities that employees use in their work activities. It includes the vision with our eyes, the execution with our hands and legs, the language with our mouth and with our ears, thinking and learning finally with our brain. And as you can see on this framework. And as you can see on this framework, people are in the center. They are a critical component to ensure the success of IA. I'm used to say that indeed, IA is built by people for people. So training, change management, education are vital. Each of those four capabilities leverages a portfolio of technologies. I will walk you through each of those. The vision, which is the equivalent of our eyes. The vision, which is the equivalent of our eyes, is supported by computer vision. It allows computers to analyze images, recognize letters, objects, and view the environment. For example, it is painful to remember codes and passwords. This is why face recognition is used to help withdraw money at ATMs in China. This system uses standard surveillance cameras. So basically, it is accessible to any shops. It tracks items on the shelves. It tracks items on the shelves and it provides two key benefits. The first one is with automated restocking. The system identifies that a product has been taken from the shelf and directly orders a new one from the supplier. It allows as well for cashier-less shopping. As the system identified that you took a product, it automatically proceeds with this payment from the client's account. So basically, no checkout, very similar to Amazon Go. But cheap and accessible to all shops. Again, this is available on any standard CCTV cameras. Let's move now to the second capability, which is execution. Execution is the hands and legs of intelligent automation. It allows computing programs to accomplish actions in digital environments. Think of typing, clicking, opening applications, sending emails. The key technologies supporting this capability are robotic process automation, that we usually call RPA, smart workflows, APIs, and more. At the top, we have a man that is performing a process on a computer, which is about entering data, extracting a report, and sending it by mail. At the bottom, the robotic process automation program is doing exactly the same task. This is a contest. Let us see who will win. So the robot has already finished after 16 seconds. So this is the outcome of the contest. 15 minutes, more than 15 minutes for the man and two typo errors. 16 seconds for the robot and no errors. So basically, the key lesson learned from this is that for those transactional, repetitive activities that we as humans don't like to do, they are not exciting at all. We prefer to have robots doing them because anyway, they are better they are better than us doing it. And it gives us more time to focus on what really matters, which is creativity, relationship, strategy. Let's move now to the next capability, which is language capability. It is the mouth and ears of intelligent automation. It is supported by natural language processing. It basically gives machine learning. It basically gives machine the ability to speak, write, interact, interpret, derive meaning from human language. Let me introduce you now to Jamie. Jamie has been delighting ANZ clients for more than a year now. We can't believe that it's been three months since we launched Jamie and we're really pleased with how she's going. I think customers generally are loving her. She's had well over 12,000 customer conversations. Lots of people ask me how to open an account. She's an evolving piece of work and so by putting her out into the world, we're able to find out how people are responding to her and what they think and what they want from her. Hi Jamie, how can I get a new credit card? I can help you order a new credit card. This would work a lot more closely to the way people are actually asking us questions. I think what we're hearing from the public is we want her to be able to do our banking for us. We want her to be able to give us much more information. comprehensive answers. Thanks for asking. And for us, that's the exciting next step. Jamie has been delighting ANZ clients for more than a year now, helping them open bank accounts, answer their questions. With this, ANZ Bank has been able to increase customer satisfaction by 15 points. Let's move now to the fourth and last capability, which is thinking and learning. It is similar to our brain. It is supported by machine learning and deep learning. Basically, it gives computers the ability to analyze, create insights, predict, make decisions and learn. For example, business forecasts built using machine learning help to reduce by 50 to 80% the employee workload. On top of this, they increase the speed of forecasts from weeks to minutes. And they improve significantly the accuracy of those forecasts. Well, I could share about intelligent automation for hours, but I think we have some time constraints. It was a pleasure for me as well to share my passion with you. Now, Martin, we heard together what Pascal had to say. Also, maybe a bit what Jamie had to say around opening a credit card. But in any case, before we go into the results of the poll, I would like to hear a bit of your reflections on what was just said. And then we bring the poll and then we had discussion about that. Is that okay with you? Absolutely. But Peter, I have to ask you a question and you have to be honest with me. Did you go for that tequila during that break or what? I asked the producer. They said I couldn't do it. But, you know, that's life, I guess. I tried to explain that the time difference didn't work. Yeah. Well, listen, here's my view on this. I tend to say that if you want to study animals, don't go to the zoo, go to the Amazon. The problem is that a lot of organizations are seeing the world from inside out and not from outside in. And that's really the fundamental challenge when it comes to transformation, at least in my opinion. So let me give you an example of that. The largest pharmaceutical company within the respiratory disease area called Chiesa. It's an Italian-based company. Atil reached out for us a couple of years ago. And here's the issue. These guys have been around for nearly 100 years. And they wanted to get closer to the customer and they want to transform at the same time. So, of course, my first question to them was, when did you spend time with patients the last time? And guess what? The answer was zero. They basically never spent time with them, right? So we convinced compliance to move in with customers across the world. And I'll never forget this story because we actually moved into a 28-year-old lady's home in Europe. And she'd had asthma for her entire life. And I asked her one of these profound questions, which was, how did it feel like to have asthma as a child? And she started to cry. And she basically experienced how she was bullied in school, how she had no friends, how she was ditched from parties. She was a disgrace for human mankind, according to her quote. So I said to her, what has changed? I mean, right now when I look at you, you have a lot of confidence. And she grabbed a handbag. And out of the handbag, she pulled out a straw. And she said, this is my secret. I said, what do you mean? She said, well, listen, whenever I meet new people, I always give them the straw. And I ask them to hold themselves for the nose and breathe through the straw for one minute. And within that minute, we're exchanging a sense of empathy. They feel the pain I feel. And immediately we connect. So I took that idea. I stole it, right? And I brought it up to the board level. And I asked everyone at the board level to do exactly that exercise. Breathe through a straw. And I'll never forget it because halfway through the conversation, one guy spits out the straw. And he says to me, this is the most ridiculous thing I ever tried. Who would ever live like that? And I said to him, that is how your patients live every day and every minute of their entire lives. And they're paying your salary. And this is really my point because they had forgotten the sense of empathy. Once we embedded that into the organization, what happened then was that we realized, you know what, we can then create apps. We can create all this stuff, making the patients feel safer when they go outside and it's polluted outside or whatever. All that stuff came down to a very single premises of feeling what the customer feeling and waved it into the DNA of the audience. And now, Matty, I'm breaking you here because I think I just hearing what Pascal has said and now hearing what you said, right? Pascal gives a lot of use cases and he goes around the technology. But what we really need to start focusing here is actually on the pain of the customer and the pains that we are trying to address. Digitalization for digitalization sake doesn't help anybody. You know, it's a waste to a mean. And I think I really would like, particularly when we're talking about scalability, particularly when we're talking about how we actually take the next steps, let's look a bit on the results of the poll and see what people think are the main barriers on their view for scalability. And I have the poll results here. While you were talking, I got it in front of me. And the main thing, it's not capabilities like you actually might have thought. It was actually lack of focus. 35% of that is lack of focus. I love that. I love that point. And I do love as well because right now, every single client that I come into and just counting use cases, they have 40, they have 50 starting around. And very few of them have actually one or two things that they really would like to focus on. What is your thoughts when you hear that? Well, my thoughts are that you have to constantly be aware of that in the end of the day, this is a top down and a bottom up approach at the same time. Top down is the focus. The issue is you and I are so busy today sitting on Teams, sitting on Zoom. We have zero time for ourselves. And what I realized when we work with people around the world is they don't have any time. They do the back to back work. They don't even have time to go to the toilet anymore. And at six o'clock in the evening, they throw themselves at the couch, exhausted, and then it's time to do the work. So the most important advice I can give the leaders is really not to add more stuff, but to have what I call one in, one out. That is remove other things so you build some space, the breathing space, so you can give people a mental power to actually make a transformation happening. And that is the biggest issue. And that comes back to focus, of course. Thank you very much, Martin. And thank you very much for answering the questions. Martin is the last time that we're here with you today. So I wish you a fantastic day and have a great day out there. Likewise. Take care, everyone. Thank you. So you just shared the challenges to achieve digital transformation at scale. And then imagine you overcoming all of these challenges in a complex and highly regulated production setup, which runs 24-7, 365 days a year. We have invited Fujifilm Diocene Biotechnologies to talk about their digital transformation journey, where illustration of their digital vision has become their guiding star when navigating the difficult and unknown waters of digital transformation. Thank you. Welcome to the studio, Peter. Thanks. And Peter, before we deep dive in the case, tell me, why is this digital transformation such an important initiative for your company? I think the last two years have taught all of us that it means a lot to bring a treatment to patients in a short time, right? The world broke records by bringing COVID-19 treatments to patients. When we started out this journey. When we started out this journey. It's the same kind of mission. We want to reduce the lead time from a product that is available to actually it is in the hands of the patient. We're only part of that supply chain. But we can help clients. We can help the world to achieve that. So from the supply chain lead time that we can look into, we have these maybe 24 months. From a product that is ready for commercial production. It might take nine months to transfer it into our production. It will only take a month to produce it. So that's relatively small, but it can take another two months to release the product due to regulations and approval and check if everything is right. And then when we ship the product, it still needs to be stored, filled into products, stored, shipped, labeled, packed, stored, shipped. Before it is in the hands of the pharmaceutical company or the pharma company that you buy the product, right? And that part of that supply chain, we would like to limit. Because if you have family members or friends who have cancer, Alzheimer's or multiple sclerosis, it means a lot if it's two years or one year, right? And Peter, thank you so much for sharing why you initiated this project. And we will soon be deep diving more into what it means, the impact of it. But before doing that, we have interviewed one of your colleagues who's deeply involved in the whole digital transformation. And in the video, she's describing the transformation and main learnings at this point. So let's watch that video. And for you listening, remember, I feel like a broken record by now, but remember to put your questions in the Q&A. I think we've always known that the supply chain we're in is inherently super complex. We want to strip some of that complexity out of what we do and try and do whatever we can to help bring the medicine to market as fast as possible. We wanted to start from our own supply chain. So we've gone from our customers through the full manufacturing chain to the subsequent sort of approval and release of the products back to the customers. We've then formulated a vision around four key elements. One is one-click tech transfer. Two is modular and digital manufacturing. Three is no-touch release. And four is data at your fingertips. And four is data at your fingertips. One-click tech transfer is really about creating a shared language. You can think of it as a configurator that you would recognize, like if you try to configure your own car off a website. We need modules and standard products that sort of plug together like Legos that we can use to assemble a full pharmaceutical product. On the surface, modular and digital manufacturing. manufacturing could be misinterpreted as if we're just trying to remove a bunch of paper from our shop floor. We're taking it, I would say, 10 steps further and are trying to integrate as much as we possibly can. Today, our operators on shop floor tie together both the physical world, the paper world, and all the digital systems that we have implemented for them to use today. In our future world, then the systems are actually going to be working as a quarterback. They're going to be working as a quarterback. And they will be allowed to perform parts of the process. And because we can validate this output, we can use our super skilled operators to tie the digital world to the physical world. No-touch release. Basically, we're taking the data from the execution systems and from the manufacturing today. And we want to make it accessible to everybody who needs it in order to be able to release our products back to our customers. as fast as we can and with, of course, the highest possible quality that we can. This means that we want to enable our quality organization to assess our batch manufacturing off of exceptions instead of having to review every single step the way they're performed on the shop floor. Element number four is really, really key to our vision. Data at your fingertips, it's what ties everything together. Our manufacturing organization has a need for our manufacturing organization has a need for this data, quality, process scientists, and, of course, ultimately, the customer. Everybody wants the data, perhaps for their own specific purpose and sort of unique end, but they're all requiring the same data source. And we're trying to make that available basically from end to end in the entire process. We're not going to end in the entire process. We're not going to anybody for the solution for this. We're having to sort of invent our own future as we go along. So we only have some of the paving stones along the way. The rest is basically our vision. We need this to be able to continue to fuel the growth journey that we're on. And we want to make that growth as sustainable as we possibly can. And now we have Chris with us in the studio as well. Welcome, Chris. Thank you. And thank you as well for explaining the basics of your digital journey. And Peter, the 24 month is still in my brain and I promise that I will come back to the impact. So what I'm really curious about is if you can just explain the key benefits and impact of your transformation, like, for example, what has the impact of the 24 month process been? That's hard to measure, right? So you could say it's more of an aspiration to reduce that. But it's quite easy to see that if we can gather data along the way and we can tie it together. And for example, that when we have to approve and release a product that we don't have to read through all of the data, but can actually make the data available on the exceptions and what is wrong and what should we look at. If we could take that out, we can speed up the process. Maybe even in the future, if we could, you know, have a robot analyzing that, giving us even less of a manual task to read through that. It requires a lot in the regular industry, but that would take out data. So it's a lot of days or weeks out of just the release process, which were the two months at the end of the production. Yeah. And now this is one thing is on the time, but what else do you see as an impact there? Because there was a lot about the people. There was a lot about data at your fingertips. Of course, when you make a case like this, you have to justify that it drives efficiency because that's the way we think of things. So no matter how big the why is that we want to bring medicine with a reduced lead time, we have to argue that it also creates efficiency. Of course it does that. You know, today we are printing thousands of papers. We are designing those papers. We are lifting them down in production floor. We are having people write on them. In our case, you have to write and double verify to make sure that we did things right. So actually everything, every time there's a piece of paper, there's two persons that have signed it. Super engaging, right? And those papers need to flow through and they need to be read again and to be checked if we're done right. And all of this, of course, drives efficiency. If we can have things being driven by the automation, by the machines, where the data is already there, instead of taking it out, noting it down, and with the risk of actually calculating wrong or typing it wrong, that drives efficiency. So, and I hope, I certainly believe so, that it also creates a better workplace for those working. Yeah. Now a big to you, Chris. And first, I really like the illustration. I think it's so much funnier than making PowerPoints. And as consultants, we are a bit guilty of that, doing a bit too much of that. But in, you mentioned in the vision that is, in the video, that is about, you know, it's known and it lives and breathes in the organization, this whole part. Is there a people transformation here, which is equally as important as the technology transformation? Yeah, absolutely. Absolutely, there is. And I think it's no different from us than in so many other companies that's sometimes a little bit invisible, because you end up focusing on what you can see, what you can touch and what you feel here, what you feel is maybe a digital tool. But that very quickly becomes the focal point, because it becomes the tangible part. With that being said, I think we're very aware that we won't get to wherever we want to go without trying to do it with a high degree of involvement and engagement. because only through that will we actually achieve a translation of the vision into something that then becomes a transformation. And I just I watched the portion with Martin Lindstrom this morning and thought that the conscious incompetence is really where we are now. People know the core of their job. But what we're trying to do now is have them do it in a very different way from what they would normally do. And that gets a lot of focus. And how do you deal with that, Chris? Right. Because we heard sustainability before and we how Novo took instead of the normal strategy process that takes a month and 15 people, then involve 200 people and take nine months. Is that a similar story in your end or how does that look? I think what we're doing is we're trying to bite it into value sized bits. So we really don't want to bite off any more than we think that we can realistically chew. And we ensure that we make that as tangible as possible. Make it something that you can see and you can touch and we demo a lot. And then try and paint a very concrete picture of what tomorrow will look like. So people in the shop floor, are they involved in that process as well? Absolutely. Everybody who will be a recipient of an end product, albeit digital, are involved in the process and the projects we run. I have one question. Now I'm changing the topic a bit, but I have a question from the audience and it's you described the key elements. So which of the four key elements of your vision do you think is the most difficult one to achieve and why? And maybe you can start with just highlighting the four key elements again and then which one is the difficult one to achieve. And now you're looking at each other. Now I'm just getting super curious. The four elements are one click tech transfer, then a digital and modular manufacturing, no touch release, and what we call data at your fingertips. Now I'm going to answer for my portion, but what I see as part of running the transformation, what's difficult is the tech transfer part, which is also, you just saw and Peter explained that that's a really, really long process for us to go through. It's fraught with difficulty, just brought on by the sheer complexity of what we actually manufacture. And having to understand that and see what a correct standardization formula could be for that is very, very difficult. Super exciting, but difficult. And what is exactly difficult? Is it the system? Is it the process? Is it people? What is it? If you, you know, one, two, tangible. The process is in itself sort of intertwined between a lot of difficult sort of competence areas in their own right. So we have to, you know, engage with the scientists and the customers, of course, who help us translate the product's recipe into what can run in our manufacturing area. But then everybody else who needs to make sure that a cancer drug sees the light of day at the other end have to understand everything over a period of 18 months. So, yeah, very engaging, but very difficult. And do you, Peter, share the same reflection? I fully agree. It's also, you could say, out of the 24 months, this is the nine months in the beginning. We're transferring scientists' work, somebody who designed a drug, and we need to fit it into our facility. That requires multidisciplinary work between quality people, engineers, process scientists, data scientists, manufacturing people, supply chain. And they all think alike, right? And they don't have the same kind of a data set. So it might be so that one thing's of one process and one parameter, it's exactly the same as the other group, but they have named it differently. And we have not necessarily, you know, made the processes modular to have the same kind of language to fit it together. And that kind of value stream of getting that data, and in this case, the knowledge through that pipeline. That's really, I think that's critical. Maybe just building on that, when you're talking about the data, it's one of the elements, end-to-end data availability at your fingertips. And you also mentioned that there is no plug-and-play system for that. This also sounds like a bit of the challenge within sustainability or in some ways. How do you maneuver around that? You know, it's changing in the dark or what is it that you try to strive for here? Yeah, I think for the data part, I think when we talk about digitalization, we can say, how can you make your product digital? Our product is never going to be digital, right? You need something that can help you. I think something that can help you. But what is the really bottleneck to bring that physical product into your hands is the knowledge and the data. And that stops by emails, by misinterpretations, by PDFs and importing and exporting data. If we can make that flow, then we can speed up the process because we're moving knowledge through that data. We are being better at making decisions because we have the same kind of data. We know where products are, how they're produced, what is their current status. So establishing a baseline, basically a foundation on the data set that you can actually work from then onwards. I think maybe working in the dark there, it's like you have to do a lot of plumbing. You have to stitch systems together. You cannot rely that one system can hold all the data. You have to tie people and process together, but especially all the software applications where data is either created or stored or moved to. If you can stitch that together, then you can actually follow it through. You can validate that it's true from the beginning and at the end. And you can extract it to the different users when they need it. So we connect to supply chains through a ERP system directly with our clients. We send every 30 seconds, data will flow to our clients in terms of, are their batches okay? So they can monitor that. They can see if it's okay. They can actually help us optimize our processes in the future. And sorry to interrupt you a bit, Peter, here, but it is like, I cannot avoid making the parallel. When we talked about, before, and Novo Nordisk and saying, we cannot just sit and wait until 2.28 for having a solution for the transport part. We just need to take action and do something now. And we get a lot of that question. What is the system that we actually communicate? And start from the supplier to the end delivery and actually provide us that? And from what I hear from you, there isn't such a system or you're not using such a system. You're just basically making sure that you have the connectivity to start with. We don't have a system. Yeah. I think actually on the drawing, I think actually it has this saying, it's not a system. We have over a hundred software applications. You cannot mingle that into one system. But if you're able to see possibilities to stitch it together, when you add one that it's kind of like it's modular. So it knows that you could plug it in. I think that's a lot more powerful than searching for either the enterprise tool or the one tool that would fix it all. There's no Lord of the Rings. And just to build on that. I mean, the solution that you have created now is based on you wanting to make the whole process more efficient and based on the challenges that are now. Have you taken future or created the setup so it can be managing future challenges that are coming such as, okay, let's tackle the whole sustainability work of our site. And is that catering to be modular and using for other purposes than just reducing the lead time? I'm going to be bold and say yes. But in a slightly more modest version of the world, then at least we try to. We know that what we're building will not be the end of everything that is to come. So we're very aware that we're laying a foundation for something that we will have to build on for a very, very long time to come. still. And so we're doing our best. But the modularity is definitely our friend here. And trying to solve real business problems and deliver value kind of seems to be working out okay. So keeping again, taking the decisions and then basically what you know today in the world, like Innovo said, then it's the best you can do, right? Yeah. I have a question from the audience. And it's based on the conversation that we had before. And it's how has the how had what has been the response to these new ways of working from the people on the shop floor? And is the change embraced? And did you experience resistance? And if yes, how did you overcome it? That was a lot of questions. That's just what you really used in one shot. Many questions wrapped into one. If we start with the last question. Yes, there's been resistance. I think that's really natural with what we're trying to do. I really stick with this being a transformation in the sense that was also talked about earlier in this morning, we are trying to recalibrate the way we run our business and the way the site is run. And naturally, that's going to be, be very difficult for a lot of people. The overcoming of these things, I think, is very classically true still. Involvement is necessary. And there's a lot of talks about our purpose. This is also one of the reasons why the drawing works really well for us. Because it's not words in a PowerPoint. We discuss it and we talk about it. And what does this mean, really? Because the same drawing can mean a variation of things, whether you're on the shop floor, or you're in documentation, you're in our quality area, or our labeling area, it means something different for you. But that's the power of it as well. They are actually being adopted quite well on shop floor. I don't come there as often as I could. But hopefully now we're post-COVID, that's going to be more of an option. But it's helpful. It reduces some of the things that have caused friction in the past. And it definitely makes a difference. We're not all the way there with what's coming. But that's fine. We're open and honest about that as well. Can I add? Yeah, of course. Actually, I don't like the word resistance in this case. Because it sounds like somebody is resisting. I don't see anybody that would argue that the vision and the drawings, the automation part, reducing lead time. Nobody's arguing about that or the means to doing that. But of course, when it changes your daily life, everybody has a hurdle to pass. And that comes out, it can seem like resistance. So I don't think there's not people resisting. We are adjusting to another way of working. And that comes with emotions. You just need to rethink, adapt, and transform. I'll take that. We didn't practice that at all. No, no. No, no, no. And just two, I mean, 15 minutes is really going super fast. And to wrap it up, Peter and Chris, what are your three key takeaways that you would like to share with the audience? But if there are to be only three, then the first one for us is build and implement standards from as early on as you can do. Because that's what's going to guide you for a very long time to come. And then midterm? Midterm is probably also an error trap we've been in. Please don't fall in love with a specific technology or tool. Now you're saying, have you bought a system? We've bought some. Some have worked better for us than others. But don't think that a specific system will get you. That's not the secret sauce, at least. No. Every time we put our full faith in that, because we also did, we were disappointed. I don't think you're the only ones. No. So starting with what is the impact? Yeah, start with the business value and figure out how you really deliver that, because that's not necessarily going to be a tool that gets you what the business really needs. And then the last one is that, you know, long term, yeah, it is a long term game. Digital transformation is not a two year endeavor. And I think if you try to do the classical thing and build a roadmap full of projects, you'll end up feeling disappointed because you won't get to accomplish all those projects in the manner and timing in which you had hoped. So focus on something that you can make tangible and that you can have people rally behind. And then everything else will unfold before you. Can I add to that? Yes. Final remark. I really like the part that Martin said about, you know, empathy, right? Because every Monday I wake up completely in doubt of what we're doing right now. And the only thing I can lean towards is besides Chris and all the other subject matter experts is that drawing that kind of like says, okay, long term, this is the right direction. So allowing that doubt and being bold and saying start and stop on something and we stopped something yesterday. That's just, I think that's key. And that requires empathy. vulnerability and so forth. Thank you, Peter. Thank you, Chris. Thank you. Have a great day. So we were set out for the three topics. We're going to explore the three topics, how to drive successful transformations and operations. Why sustainability must be deeply embedded in our operating model, and how automation and digitalization are reshaping the future of operations. Now, if you were to do something completely different tomorrow, what would it be? What would you do differently? Write it in the chat. And meanwhile, Pedro, I want to ask you, I mean, we have tried to cover three big topics in just less than two hours. Super easy. Super easy. Yeah. So what stuck with you? I think that if I just come back to the canal, for example, what stuck with me there was the fact that you're able to involve so many people, you still get the business impact, and you get the engagement in the end, you get the buy-in. So you basically said, I got it. I got something out of it. It's financially feasible. And my people were actually hyped to take the next step. For me, that was really important. It's a full circle for me. But, you know, that's probably not the only thing that we could as a takeaway. How about yourself? What is this stuck with you? So what really stuck with me is, and from the discussion, I think it's been throughout all of the three cases, is the importance of the ecosystem you are operating in. And just being able to, you know, if you're able to do that, you're able to do that. And I think, and I really believe that this is what will differentiate the great from just the mediocre, the good ones. And if we look finally on the digital part, what do you think are the main things there? Because we had a really interesting conversation. I think just what Chris said, do not fall in love with the technology, start with the impact. So how can we drive real change? That really stuck with me. Exploring always with what is the impact. We are actually towards the end now. So we would like to say thank you for all the speakers, Val, Dorette, Jane, Chris, Peter, Pascal and Martin for taking the time and exploring with us. Thanks for everybody behind the scenes. There's a lot of people, believe me, to actually help us pull it through through the day. Yes, huge thank you. And also big thank you to you for listening. And we hope that we inspired you. The chat will be open for 15 more minutes. And as a conclusion, let's see how Erik's drawing is coming along. So take care and see you next time. Thank you.