openSAP

Sustainability Through Digital Transformation

Week 3 Unit 1
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Hello and welcome to week 3 of the openSAP course on Sustainability through Digital
Transformation.My name is Barbara Flgge.
I am the Initiative Lead for Empowering Ecosystems and Smart Mobility at SAP.In this week
we continue with the Global Goal
on Sustainable Cities and Human Settlements.We investigate the elements of the goal

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and how information technology contributes to the deployment.We illustrate the functioning
of cities and human settlements,
give insights into inclusiveness, safety, resilience, and sustainability. Furthermore, we
illustrate how to make cities
and human settlements inclusive, safe, resilient, and sustainable.Let's have a look into
history.
Human settlements, compared to the phenomenon of mankind, are a recent
phenomenon.Compared to the history, the development of urbanized societies
mainly started in the 18th century. Before, few and small city like settlements are known.

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Motivated by societal needs, people formed a collaborative environment.

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To center power and influence, urban societies grew in numbers. For the rural population,
urbanizations were more safe than in the rural neighborhood.
With the emergence of trade and the introduction of the marketplace, urbanizations grew
over time.
Most of the urban development took place in the industrial countries and regions. In the 20th
century, we see a shift towards the developing countries.
The rise of the megacities continues. We currently observe 30 megacities, of which 20 are
located in Asia and Latin America.
In Europe, megacities are namely Paris and London. In the transcript, we will provide an
additional reference (https://en.reset.org/knowledge/megacities-07152014)
to the megacity dashboard. For the year 2050

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it is projected that about 70% of the population will move into megacities and 30% remain or
move into rural areas.
The challenges for megacities and other urbanizations increase through the concentration
of massive consumption of natural resources in one location.
Technological advancements will ease the design and build of new cities and settlements,
whereas technological advancements disrupt established urbanizations that seek to survive
in the future.
To win the competition amongst cities that follow the same context, city governments are
asked to lead, design, and attract
economical, geopolitical, and competitive stimuli being, for example, an academic campus
to be built,
branding the city based on a product-related or industrial heritage, or leveraging its role in
the context of cross- regional and industrial trade.
The formation of human settlements is following an ecosystem's logic: what we observe in
biological and geological ecosystems.
An ecosystem can be of any size. It can be a lake, a forest, or the earth's biosphere.I
identified about 30 definitions of the term ecosystem,

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one of which that comprises the living and non-living assets is the following from the
Ministry of Environment of British Columbia, Canada:
As a functional unit, an ecosystem consists of all the living organisms like plants, animals,
and microbes in a given
and all the non-living physical and chemical factors of their environment, linked together
through nutrient cycling and energy flow.
In other words, an ecosystem is a dynamic complex of plant, animal, and microorganism
communities
and the nonliving environment interacting as one functional unit.We identified four
characteristics of ecosystems ecology.
Ecosystems are perceived to be functional and sustainable and we all know about the
principle of the survival of the fittest.
So not only the strongest, but also the most interactive and active contributors increase their
chances to survive.In various examples, for example on ants colonies,
it has been observed by Professor Gordon that ecosystems sustain through the re- routing
of "streets",
meaning that successful movements and grouping of the population rely on their capability
to change and reroute trade lanes in a very flexible manner.
It has also been observed that ecosystems such as ant colonies sustain through an ease of
identification of their members. Not necessarily all members need to be known in detail. A
certain degree of anonymity is accepted.
The robustness of a system as Gordon describes in her research about ant colonies is
driven by the ability to tolerate failure of individual components. sustain through an ease of
identification of their members.
Not necessarily all members need to be known in detail.A certain degree of anonymity is
accepted.
The robustness of a system, as Gordon describes in her research, is driven by the ability to
tolerate failure of individual components.
How do ecosystems such as cities, businesses and rural areas look like? They follow the
same principles like any other ecosystems do.
They embrace a significant number of acting businesses and governmental institutions,
citizens, and other business partners.
The aim is to achieve something together without neglecting their individual and institutional
objectives.
So what are the motives to collaborate and coexist ? The motives range from societal,
business, to safeguarding and service fulfillment needs.
Cities in these days are challenged in creating a self-sustaining, livable physical and digital
environment and combat vulnerability.
So, what causes vulnerability? The allocation of premium stakeholders is a sales effort for a
city to sustain.
Limited capacity asks to manage, for example, the food supply for a megacity. 1.75 million
tons are required.
Otherwise, without food supply, a megacity collapses.The attractiveness of a city
determines the degree of investments
done by business as well as governmental institutions.We turn our focus now on the design
principles for urban,
self-sustaining ecosystems.So what are the terms inclusiveness, safety, resilience, and
sustainability referring to?
Concerning inclusiveness: Equal and better life and living conditions for everyone

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turn a place into an inclusive one.Inclusiveness values everyone.

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Hence, an inclusive city attracts everyone regardless of age, gender, orientation, status,
abilities, and competences.

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Inclusive interventions in a city include three dimensions: the spatial dimension, meaning
giving access to land, housing, and infrastructure;
the economic dimension, meaning giving opportunities for all those that live in that
ecosystem; and the social dimension, meaning giving rights and participation opportunities
to everyone.
The key to achieving the goal of inclusiveness is to address the issue of lack of inclusion in
a multidimensional and integrated way.
Concerning resilience: Resilience turns a city's focus onto its offering to the ecosystem
participants.
The ongoing challenges for cities are capacity constraints, local and geopolitical and
economic changes and challenges,
and increased vulnerability takes place through physical as well as cyber attacks. A shield
of inclusive, competitive, and innovative offerings
is a key contributor to resist confrontations. It eases the focus of a city on predictable growth
and community functioning.
The third element is safety.We hereby follow the Safe Cities Index that is being defined
along four categories:
personal safety, health security, infrastructure safety, and digital security So what are the
signs of safe?
A safe city is where my stay as visitor is safe. As a resident, I experience safety measures
such as illuminated zones at night.
As a traveler or commuter, I experience comfort and ease of orientation in crowded areas
such as central stations and metro stations.
For businesses and employers, a safe city according to the Safe Cities Index develops and
guarantees economic prosperity.
Furthermore, a safe city is combating natural disasters effectively.It deploys and maintains
cyber security measures and it ensures mobility for everyone.
Concerning sustainability: We learned a number of elements on sustainability in the
previous units of this course.
Therefore we focus on the key aspects for cities and urbanizations.Achieving the
sustainability of cities can be perceived
as involving the integration of social development, economic development, environmental
management, and urban governance.
Following the definition of the Brundtland Commission, a sustainable urban ecosystem
meets the needs of the present
without compromising the ability of the future generations to meet their own needs.Hence,
to measure an urban ecosystem's maturity with respect to these four measures,
it turns out to be an act of balancing interests, Communities will face the risk of diminished
population
in case they are appearing and acting old- fashioned towards their citizens. Communities
that are too fashionable, for example,
will face the risk of neglecting those that ask for a comprehensive service offering including
transportation, including household related, remote and onsite health care,
including further services for elderly people that seek to live still independently.Herein the
fundamental measure to make a city succeed and sustain
is by turning a city into a public good for the next generations. What can our next
generations expect?
Is the future of tomorrow really promising? In a study from the United Nations, the key
figures are as follows.
Half of humanity3.5 billion peoplelive in cities today.It is estimated that by 2030, almost
60% of the worlds population will live in urban areas.
By 2050, 70% will live in urban areas.95% of urban expansion in the next decades will take
place in developing worlds.

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However, the future is at risk! Nearly 1 billion people live in slums today and the number
keeps rising.
So which safety measures guarantee food supply and health care? The world's cities
occupy just 3% of the Earth's land,
but it accounts for 60% to 80% of energy consumption and 75% of carbon emissions.
So how do resilient measures help to manage and optimize energy consumption and help to
optimize and eliminate, at the end, waste?
Building a city does not take more than a decade anymore.So the speed of urban
development accelerates.
It pulls in an enormous amount of fresh water supplies, soil, and energy.Are we able to cope
with that speed when it comes to create a sustainable environment for living and working?
What about the impact on the provisioning of healthcare and safety measures? So from
today to tomorrow we already entered a field of uncertainty
and how can we transform it into a path forward for us and future generations? Throughout
indices such as the Safe Cities Index as well as SAP's program of Future Cities
there is an opportunity for businesses and governmental institutions in creating a
prosperous environment for human beings, wildlife, and assets.
Therefore I opted to introduce a set of accelerators I experienced and work on in my
initiatives.
Accelerators for inclusiveness: It is recommended to focus on personae- driven and
individual service offerings.
Those help to identify the stakeholders in a city.Throughout a connected community map, it
gives insights of the functioning of your ecosystem.
It helps you to identify the ties among the various groups of interest.What is also a good
indicator is the ratio of volunteer, public, and private-driven programs.
Same accounts for the existence of multigeneration programs.Accelerators for resilience
are, for example, benchmarking and KPIs for open government data needs. The city of
Boston, for example, developed and publishes
their governmental KPIs in an publicly available format.And they do it on a continuous basis.
The program is called BAR: Boston About Results.It does not only serve transparency and
access.
It is also a dashboard approach that is a good starting point to describe your city and
community best.The next measure is about business profiling and interaction design.
What is your city's profile? How many associations, for example, do you have? Is your
community industry flavored? And what are the key characteristics?
Another good measure is about the conduct of a digital maturity assessment.So how many
services for your constituents are physically
and how many are digitally available? Do you have a digital city strategy in place?

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And how are citizens and businesses getting involved? Concerning the accelerators for
safety:
We recommend to define and conduct a vulnerability analysis. A safe city analysis could
take on the KPIs from the Safe Cities Index.
And hereby, through the vulnerability analysis, you identify the critical zones

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and design what we call a safety sentinel to turn critical areas into safe areas.

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With respect to sustainability accelerators, I like to focus on for example, transportation

sharing for construction zones.
So cities that are emerging, growing, expanding, and transforming, they turn into
construction zones in almost all of the places.
Hence equipment, spare parts, components, and assets are being transported all
over.Throughout the urban planning you are able to observe similarities in needs,

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you are able to identify roadmaps of coordinated share of mobility needs and assets.With
respect to connected facility management for entire zones,
you will be able to identify a common denominator as well. For example, the city of Frankfurt
has been conducting an urban heat island analysis.
This urban heat island anaysis eases the simulation of climate zones.So consider also an
ecosystem-wide mobility management
jointly with public and private mobility providers.For the path forward, to summarize, SAP
focuses on three main pillars:
urban resilience, digital transformation, and economic prosperity. I brought you two
examples.
Example 1 is focusing on how to make technological innovation work.Collaboration across
organizations is driven by a registry of all participants.
Consider the digital assets, for example, based on your analysis and those that ease
collaboration for a common purpose.
That could be, for example, a construction information system. It could be the traffic
information.It could be anonymized information on where to pick up the cargo next.
A digital asset could become a cloud portal for dispatchers and customers.Companies and
institutions have a higher interest in sharing assets
when knowing that they can reduce consumption, knowing that waiting time for mobile
personnel is reduced.
Through teaming up with the digital site, the dispatcher decides upon the ideal route
for the drivers to take and which critical areas to focus on.Example 2: Craft an
organizational and individual mindset
to reduce resource and energy consumption for the benefit of the others.Think about the
mindset about the sales executive, for example,
that switches from local train to subway and to arrive on time and be prepared for the
customer meetings.
Think about the family father that serves the daily food logistics route between two capital
cities as a truck driver.
In any of these two examples, intermodal operations and transportation processes engage a
high number of businesses and individual users.
In interaction design, we look into services for those that frequently travel abroad, for those
that commute daily to their office location or their business destination,
for those that travel in transit toward a secondary or tertiary final destination.So how do
ecosystems such as cities and communities evolve
through the use of information technology? We introduced ecosystems functioning
starting with the stakeholder analysis, the collaboration schemas, and the identification of
your physical and digital assets.
We depicted transformation opportunities, for example as interaction and community
engagement
leveraging the ease of service enablement in a digital format and identifying a common
denominator.
Thirdly, we leveraged the impact of digitization.Hence, through Big Data and asset mapping,
interaction design is much more facilitated than in a physical manner.Omnichannel service
provisioning will help everybody based on his or her competencies
to identify the services to be used.That was the unit on Sustainable Cities and Communities
in which I described the positive impact of digitization on the ecosystems, the ecosystems
we are living in and contributing to.
You'll find a reference slide attached to the slide set and further URLs in the transcript.

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Thank you for joining and don't forget to take the self-test we've prepared.In the following
unit, you will learn more about the Global Goal 12:
Responsible Consumption and Production.Until then: Think digital!

Week 3 Unit 2
00:00:11 Hello and welcome to week 3, unit 2 of the open SAP course on Sustainability Through Digital
Transformation.My name is Barbara Flgge.
00:00:20 In this unit we continue with Global Goal 12 on Responsible Consumption and Production.
00:00:27 We investigate the elements and how information technology contributes to the deployment of
goal 12.
00:00:34 We illustrate how demand generation for consumer products is being fulfilled, we identify and
depict the influence of the rise of consumption on production processes,
00:00:45 and we give insights into production and delivery processes. Furthermore, we focus on
determining and measuring the sustainability factor
00:00:55 from door to door based on a number of examples.How does the demand-driven supply chain
look like?
00:01:02 The first step is about the demand triggers.So there is a variety of triggers that generate demand
for all of us as consumers:
00:01:12 being that consumers seek satisfaction with the purchase of a product, being a commercial or a
marketing trigger
00:01:19 that promises a value or experience by purchasing that product, being that the product turns into
a substantial element
00:01:27 of our living, caring, or household activity.Another aspect of demand generation is caused by the
sense of urgency or safety need.
00:01:37 Further demand triggers are caused by mobility, leisure, and spare time activities.In the second
step, a matchmaking process takes place.
00:01:46 There are four elements: the value proposed by a product or service,
00:01:52 the excitement it causes to have and own the product, the reach is about how to get access to
the product or service
00:02:00 as quickly and as efficiently as possible, and fourthly a provider's competence
00:02:06 to deliver the service that is being offered in conjunction with the product.Once the consumer
demand is concluded
00:02:14 and result in an identified product or service, the order management process takes place.
00:02:20 In the third step, the demand fulfilment life cycle is being executed. We traditionally see three
key elements:
00:02:28 the design of a product and service, the manufacturing, and ultimately the delivery and order
fulfilment.
00:02:36 Information technology fosters the optimization of any demand fulfilment life cycle. What does it
mean?
00:02:43 The more efficiently and effectively the matchmaking process is being safeguarded by
information technology, the higher the probability that the original demand of the consumer is
fulfilled
00:02:55 by the product or service that is being delivered.In addition, lean production in this context
00:03:02 targets on the reuse of materials and components and allows a more efficient product
manufacturing through standardized elements.
00:03:11 Traditionally, consumer demand focuses on owning the product. Hereby, the variety of the
product and the speed of introducing new products and services
00:03:21 are essential to raise the interest of consumers.What we see in the following slide is that
consumption is increasing more and more.
00:03:31 It's not only triggered anymore by the consumer demand as such. There is also an increased
likelihood of products and components to be replaced renewed.
00:03:42 It has been observed that the malfunctioning of products turned into a tactical element in the
production lifecycle.
00:03:49 Services that accompanied product offerings in the past are more and more the turnkey for
deciding for or against a product.

00:03:57 Hereby we distinguish standalone services, services bundles, and those that are offered in
conjunction with the product.
00:04:06 This phenomenon accounts as well for information technology. Offerings such as platform as a
service,
00:04:13 infrastructure as a service, and software as a service are providing businesses more flexibility in
the demand fulfillment.
00:04:21 An ownership of a platform, a computing center is not necessary anymore.Information
technology enables us as well to use digital
00:04:30 and other kinds of channels to consume. More than 25% of the population in Europe, for
example,
00:04:37 are already electronic shoppers, using online or mobile device capabilities. Another key measure
of the rise of consumption is the boost of product variances.
00:04:48 Looking at the four examples, our demand for more and more personalized products and
services is being fulfilled in a much higher variety than we imagined a couple of years ago
00:05:00 being a high-value car assembled to meet my needs, the design of a pair of sneakers, my
favorite burger composition,
00:05:08 or my favorite coffee I pick up before heading into the office.We see from the numbers in the
chart, it is nearly impossible
00:05:16 to imagine that there are 200,000 variances or even trillions of possibilities of product
variances.Subsequently, those variances turn a standard production into an individual
manufacturing.
00:05:30 Moreover, product variances challenge the applicability of standard components and standard
production lines.
00:05:38 Mostly for those manufacturing lines that did not experience variance configuration and
production beforehand.
00:05:46 So ultimately, the higher the number of variances, the higher the expectation of the market to
realize individual and exclusive assemblies
00:05:55 of components and materials in a shorter time frame.Let's now expand our view on production
and delivery processes.
00:06:04 Firstly, infrastructure consumption.The increase of demand fulfillment goes hand in hand with
infrastructure consumption.
00:06:12 Infrastructure embraces manufacturing sites, machines, the ground, soil, energy, and water.
00:06:19 It also embraces transportation means, packaging, storage, loading and unloading facilities.It is
a fact that the infrastructure that is being consumed is mostly overaged.
00:06:31 Overaging is a challenge for roads and bridges, watergates, buildings, and other relevant assets
for production and distribution.
00:06:39 Moreover, the consumption of raw material and natural resources increases, too.If they are still
available in 2050.
00:06:48 With respect to costs, there are recurring costs.There are estimates about the increase of freight
transport
00:06:54 by more than 80% over the year 2050. Looking into the costs of delivery,
00:07:00 businesses are faced with an increase in costs of managing arrivals and pickups caused by
traffic congestions,
00:07:08 caused by an overuse of infrastructure built for road, rail, and air travel, caused by withholding
goods and delivery up to the moment of the streets are cleared
00:07:19 and railway tracks are available again, caused by the service provisioning effort to secure public
infrastructure and mobility
00:07:28 for example, for the use of a metro platform where 4,000 people are waiting or the use of a bus
stop at a university campus with 200 students.
00:07:40 With respect to mobile consumers and destination-triggered demand fulfillment, next to the
acceleration of goods movements,

00:07:48 our own mobility, passenger traffic, is estimated to grow by 51% also by the year 2050 compared
to 2005.
00:07:59 The current ask to travel originates in a person's business, private, and leisure needs.Future
demand will be driven more than ever by coincidental, not-yet-known demand.
00:08:12 For example, when we are traveling, our mobility concierge recommends to meet an expert. The
shopping mall next door to our event location invites us in
00:08:22 to the showroom and distributes product samples. We are unable to carry on with those product
samples and ask for a delivery service.
00:08:30 So through the rise of consumer demand we do not only expect production to turn into
personalized manufacturing,
00:08:38 but also that the delivery turns into a personalized experience, namely at the point of
consumption.Another example: Consumers order at home and expect to receive the first delivery
in the office.
00:08:52 The second delivery should reach the consumer at her next travel destination. We call this
phenomenon "local vs. destination-generated demand fulfillment".
00:09:04 So the ask for mobility where it is needed and its fulfillment is still not resolved yet.Offerings for
individuals are still isolated offerings.
00:09:14 They are not yet integrated, and not in all extent intermodal offerings. We need to purchase
multiple tickets when we use different modes of transportation.
00:09:25 On the cargo and product-related side, through the rise of freight transport, what we saw was an
estimated increase of 80%.
00:09:35 Mobility offerings for cargo and equipment are still operated in silos.The mobility lifecycle
management takes place in multiple distinct units and organizations,
00:09:48 being public and/or private organizations. Let's now turn our focus also on the rural areas
00:09:55 where we find commuters, families, the elderly generation. Those need to be served, too. Rural
population will be more dependent on sharing resources
00:10:06 such as electricity, fuel, gas, water, and food supplies. So would a carrier wait till all food
supplies are bundled and fit into one truck?
00:10:16 How will future suppliers of food and spare parts, gardening equipment, and technical
components calculate? Would they opt for rural shoppers at all?
00:10:26 To which degree is electronic commerce in all aspects then a prerequisite to coordinate
deliveries? Does e-commerce turn then into a mandate to predict infrastructure usage?
00:10:39 Ultimately, to remain mobile,we all require transportation and commuting facilities. Living
outbound requires intelligent concepts
00:10:49 for a few to share vehicles, and other transportation means.If not owning a car, rural population
depends on public transportation and shared offerings.
00:11:01 The sustainable fulfillment starts with sustainable production.Hereby we turn our view on
production sites
00:11:09 and their location, their embeddedness in the ecosystems. Similar to cities, regions, airports, and
ports,
00:11:16 a production site embraces a significant number of individuals, businesses, and institutional
partners.Ecosystems are challenged in their overall aim to create a self-sustaining
00:11:30 livable physical environment and combat urban vulnerability Hence, in a well-functioning
ecosystem
00:11:38 all the participants mutually agree on creating an environment of excellence.Similar to a city or a
region, a production site allocates premium stakeholders
00:11:48 not only physically, but also digitally.It aims to optimize resource usage.
00:11:53 It aims to invest in reusable components and innovation.It aims to outperform competition
through circular supply chain fulfillment
00:12:03 and manage resource consumption intelligently.So what does it take to create an environment of
excellence, of responsible excellence?

00:12:12 We hereby introduce the cradle-to-cradle principles. I call them the five anchors.Concerning
water stewardship,
00:12:20 it is about the treatment of clean water as a valuable resource and fundamental human
right.Every product manufacturer should approach water management in a wisely manner.
00:12:31 Even more, every business ecosystem, every business network, should approach water
management jointly.
00:12:38 The next one, material health, is about anchoring material health in an organization. That means
it ensures that all of the chemical ingredients in products are defined as positive.
00:12:50 There is an index of positive products that can be looked up. In the transcript document you will
find a reference to those measures
(http://www.c2ccertified.org/images/uploads/C2CCertified_Product_Standard_V3.pdf).
00:13:00 By material reutilization, an organization and its extended supply chain identify
00:13:06 the material streams that can be reutilized when the product, for example, is taken back.This
asks for reverse supply chain management capabilities.
00:13:15 It asks for transparency on the entire bill of material within the production and fulfillment
lifecycle.In addition, I recommend to consider also the bill of services and service deployment.
00:13:28 One of the most known cradle-to-cradle principles is about the elimination of waste and to
produce and use renewable energy.
00:13:36 An outcome of this principle is the circular economy movement. Concerning responsible
production, this is also subject to people management and guidance
00:13:47 along the supply and demand fulfillment activities.So socially responsible companies
00:13:54 demonstrate responsibility in regard not only to their staff and endeavor to make sure that
companies also in their supply chain
00:14:02 are not violating these principles.Hereby, ecosystems such as production sides and others that
share a set of values
00:14:10 facilitate the process of following this principle.The Social Accountability Standard (SA8000)
outlines these key elements.
00:14:21 You also find the reference in the slide set that will be distributed. So in summary, any member
of and contributor to a business ecosystem
00:14:30 that looks after responsible production anchors these five principles into its business operations.
We now take a look back to the demand-driven supply chain we covered earlier in our unit.
00:14:42 The cradle-to-cradle-influenced supply chain looks as follows now.Throughout responsible
demand, consumers as you and I
00:14:50 have the possibility to look up shareable products and components. Instead of an isolated view
on our demand,
00:14:57 we gain insights into reutilized components as, for example, offered by fair trade and fair phone
initiatives.
00:15:05 Throughout information technology, we are able to combine our matchmaking efforts on value,
excitement, reach, and service competence with a health check on circular offerings.
00:15:18 The fulfillment lifecycle is anchored in the cradle-to-cradle design principles.It does not stop with
the delivery.
00:15:26 It evolves through the return, storage, and deployment of shared and reutilized products,
components, and processing materials.
00:15:34 Waste is eliminated wherever possible.With respect to infrastructure usage, we recommend a
digital asset map, for example
00:15:43 to outline shareable space, as transportation means, offering assembly lines and technical
equipment on the spot
00:15:50 required to link up all these assets in a digital manner.So how does circular economy function?
Here is one example
00:15:58 with respect to digital collaboration.In the field of sharing mobile space for goods

00:16:04 space is a good that has been underestimated for a long time.It is needed to transport, store,
load and unload, wait, assemble, check, secure, and deliver.
00:16:15 By integrating relevant and necessary indicators of future demand we are also able to generate
a more safe and reliable mobility offering for a location.
00:16:26 When we know about the demand for space, the booking of a truck, the consumption of a street
or train, and the arrival at the manufacturing site gets more precise.
00:16:36 Same accounts for the personnel. The mobility demand can be fulfilled before the person leaves
the house. In these times it is a challenge, for example, to find mobile personnel,
00:16:47 to find truck drivers for heavyweight transportation or a specialist that is called to repair the
engine of a cargo vessel.
00:16:56 Predictive maintenance will ease the process of calculating the point of time and necessity.And
digital collaboration eases the recruitment process as well.
00:17:08 With respect to circular economy functioning within an entire ecosystem, what encourages me
as an infrastructure consumer to change my behavior?
00:17:20 And that is the second example I like to talk about. When owning a car and being used to drive
individually at any time to a preferred location,
00:17:29 it takes creative offerings to convince us, the car owners, to use alternative offerings.The sharing
economy could ease the process by facilitating the transportation
00:17:40 of accompanying materials, facilitating the transport of luggage.Another benefit to allow me to
purchase one ticket instead of multiple ones
00:17:50 is also an accelerator in my own mobility planning. Instead of siloed mobility offerings in a city,
there should be one mobility management.
00:18:00 Hereby a city, same as production and delivery sites, gains attractiveness for the businesses,
optimizing the infrastructure needs and maintenance,
00:18:09 and eases collaboration across organizations.The European Union Directive SWD(2014) 194
00:18:20 is aiming toward a roadmap for delivering EU-wide multimodal travel information, planning, and
ticketing services as well.
00:18:31 It calls for the orchestration of intermodal transport. It asks for a digital and physical alignment of
ticketing and payment processes.
00:18:41 We as consumers spend time when planning for a trip, heading to an event.Once we are on the
road we do not want to spend time, money, and energy
00:18:50 for changes in the travel or any kind of alterations. So ideally, a digital concierge facilitates the
calculation of alternative routes.
00:19:00 He informs, recommends, and notifies me on changes and delays. And even more, it manages
my social information system while I'm traveling.
00:19:10 Another finding of our smart mobility initiative is about profiling our patterns of mobility.Being a
spare part, a good, or an individual traveler,
00:19:21 a personal ecological or a goods ecocological balance sheet on mobility should accompany
us.A: to keep resource consumption on track,
00:19:31 and B: to simulate and stimulate operational change for those that maintain the ecobalance
sheet on behalf of a company.
00:19:40 So what are our key findings on enabling a circular economy and targeting responsible
consumption and production?
00:19:49 Hyperconnectivity and Big Data technologies help to gather customer demand and facilitate
cross-organizational orchestration in a shared economy.
00:19:59 By aligning physical and virtual networks there are the assets to identify production and
consumption patterns.
00:20:06 There are the assets to ease collaboration in a digital manner and turn collaboration into a
mutual benefit.
00:20:13 The earlier we gain insights into our own influential potential on responsible consumption, the
earlier we start influencingas consumer, as traveler,

00:20:23 as product designer, as workforce, and as decision makers. Transformation takes place along
the extended supply chain and in the field of multimodal mobility.
00:20:33 Hereby, the cradle-to-cradle principles should be applied.That was the unit on Responsible
Consumption and Production
00:20:41 in which I described the transformation capabilities into a circular economy. The digitization of
assets and services can be a key enabler of circular economies.
00:20:53 You find a reference slide attached to the slide set and further URLs in the transcript.Thank you
for joining and don't forget to take the self-test we've prepared.
00:21:02 In the following unit, you will learn more about the Global Goal 13: Climate Action.Until then:
Think digital!

Week 3 Unit 3
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Hello and welcome to week 3, unit 3, UN Global Goal 13: Climate Action.

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In the last unit, you learned about goal 12: Responsible Consumption and
Production.Today, we will talk about climate action and climate change.
Let's start with a few facts about climate change.Fact is, climate change is man-made.

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And when I was working in climate research roughly 25 years ago, that was still 50/50.
Many people denied, and especially businesses,
that climate change is happening, let alone it is mad-made.The worse case scenarios
predict a temperature increase by 4.5 degrees C
by the end of the century.That can lead to a sea level rise of 60 cm or 2 feet.

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600 million people will be at risk, especially in coastal areas, and increasingly, in large cities.

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A 1 degree C temperature increase can impact crop yields by roughly 5%, negatively.

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So less crop due to temperature stress of the plants.A 2 degree C temperature increase can
cost annually around $100 billion
due to increased healthcare costs, due to more hunger, more poverty, but also migration
patterns of people.
Now the targets we selected for this goal are basically covered also within the framework of
the COP21, which we discussed earlier,
the Paris agreement about climate change.So integrate climate change measures into
national policies and strategies and planning.
Secondly, strengthen the resilience and adaptive capacity to climate-related hazards and
natural disasters.
And finally, cut carbon emissions.That means basically moving toward a decarbonized
economy.
There are three steps how we can save or rescue our climate, or at least slow down climate
change. There is analysis and simulation.
There is the abatement to mitigate climate change and there is the adaption to climate
change.
If you want to understand what the impact of climate change will be, you need to collect a lot
of data, all available data.
You have to consolidate and harmonize them.And you may have to increase the sampling
frequency,
but also the grid sizes of the data where you collect them.This data pool will help you to
understand and correlate
cause and effect change to understand the impact of climate change.And this solid
database will also help you
to make better predictions and prognoses on potential disasters.Now how can you abate or
avoid emissions to mitigate the risk of climate change?
The World Economic Forum earlier this year was all about the 4th industrial revolution,

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which basically describes a fully digital economy where efficiency gains and productivity
increases
are derived through fully connected value chains and processes.But it is also about
behavioral changes. It will demand from us
different ways of mobility, but also different eating habits.Energy generation based on fossil
fuels is one of the biggest contributors
to greenhouse gas emissions. So making energy nets, or nets more transparent
and more smart will have a significant impact on the emissions based on energy
production.Cap and trade: does it work?
Not clear right now because the ton of carbon emissions is still too cheap. But many
companies are establishing internal carbon pricing

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to cross-fund climate change initiatives in their companies.But we also have to adapt to

climate change.
And that means that knowledge and information about potential changes to climate change
and the effects on various processes
need to be made available to decision makers. Technology transfer has to occur.
For example, desalination has to be continuously improved.But also innovation has to
happen.
For example, toward temperature resistant or resilient crops.And finally, finance is a very
important factor as well.
You have to make conscious decisions in which areas to invest-- basically in business
models which go against decarbonization-and also people need to understand the financial impact of climate change.Now let's look at
simulation and analysis to draw the big picture.
Climate change is resulting in significant and extreme more frequent weather events.
87% of the global disasters are climate related.And just think about the hurricanes Katrina
and Sandy
with the associated costs around $150 billion for Katrina as well as $70 billion for Sandy,
let alone that people died in these disasters.Droughts put a significant stress on people and
on the environment.
Between 1994 and 2014, roughly 1 billion people were affected by droughts.

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And that also leads to large migration patterns within the world.Now what is the challenge to
understand the disasters and
leverage Big Data to make better predictions on disasters and link them to the relief or
rescue teams?
Basically there is a disconnect between the early warning systems and the coordinated
rescue measurements on the ground.
The rescue teams need to know what happened and need to react very quickly on changing
conditions.
Let me give you one very specific example where digitization has helped to reduce the
impact
of extreme weather events.In 2013 in Buenos Aires

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heavy flooding occurred after heavy rainfalls.Around 100 people died in the city

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and the city was very devastated.After this event, the city decided to invest in technology

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and figure out how technology can help to prevent these disasters.They deployed 30,000
sensors in the drainage systems.
They look at incident management or incidents reported by their citizens.And they connect
that with weather data.
So now if somebody reports that a drainage pipe is clogged by garbage or by trash, service
technicians can go and basically clean the canal off
so that potential water can drain easily.In 2014, these systems were used during a flood

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and real-time information of weather as well as the flow direction and strength and the level
in the canals
helped to identify risk hotspots and solve the problems immediately.

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And even though the rain in 2014 was heavier than in 2013, the city basically stayed dry.

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Let's look at abatement as a means to mitigate climate change.Global greehouse gas

emissions have increased by 50% since 1990.
In 2014, we had roughly 35 gigatons of greenhouse gas emissions in the world.And fossilfuel-based power generation is contributing significantly
roughly 30% to global emissions.A recent study has shown that ICT, information and
communication technology,

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has a significant abatement potential for greenhouse gas emissions.The organization Global
e-Sustainability Initiative, or GeSI,
published a paper where they claim that out of the predicted 63 gigatons of emissions by
2030, ICT can help avoid roughly 12 gigatons per year.
That is 20% of the overall emissions.We actually used this study and broke it down to the
impact of business software
and we believe that business software can help avoid emissions in the order of 7.6 gigatons
in the year 2030.
Now let's look at a few sectors. So for example, in transportation and logistics,
the study showed that 1.5 gigatons can be abated.And this can be by optimizing intermodal
transportation between the various means of transportation.
But then can also be reduced by new mobility approaches through shared cars or sharing
cars or using electromobility in cities or everywhere.
Let's look at manufacturing. The Internet of Things or the already mentioned fourth industrial
revolution.
A fully digitized value chain can help increase resource productivity and efficiency along
value chains. Integrated planning can overall reduce the energy consumption
along value chains.And finally, let's look at utilities because they are one the heavy hitters in
emissions.
Energy consumption and need will grow based on population growth and economic growth.
That is a fact.
However, there is still a lot of inefficiency in the energy system today.If you manage your
energy production,
generation, fossil, renewable, smart.If you integrate storage and then link it to demand
patterns,
you can significantly reduce the very emission-intensive spikes of energy demand during
the day.
You can also provide reliable and affordable energy, especially in emerging countries,
through microgrids
where you have a decentralized, hopefully renewable, power generation and you connect
those with smart devices in smart grids.
And you can basically create an affordable energy production and generation in rural areas
without significant up-front infrastructure investments
in large transmission infrastructures.And finally, the Internet of Things and the
hyperconnectivity
will allow you to optimize your asset utilization and in that you will also be able to reduce the
overall energy demand
while actually keeping up the output.Finally, let's look at a very important example of
adaptation.
We've looked already at the impact of the temperature rise on the global grain yield.But
there is more. There is over-fertilized farmland.
There is shrinking fertile farmland so there is less area available to product food.Water
scarcity will increase and create stress on the agricultural industry.
However, or but, there will be roughly 10 billion people in 2050 on the planet. They changed
their dietary habits and therefore
food production has to increase by roughly 70% within the next years.So how can
digitization help to increase and secure food supply in the future?
If you digitize your equipment operations, you can significantly increase the production
efficiency
while at the same time reduce the energy demand or fuel demand.Just look at the big
machinery on the fields.
They are already steered by GPS sensors and they run and operate at very high accuracy,
down to a few centimeters.

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That reduces the overall need to run across the field and in this, reduces fuel consumption.

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But it is also very important to use your chemicals on the field very efficiently.So you have to
know when to fertilize, when to irrigate, and when to protect the crops.
So if you combine Big Data on weather, on soil conditions, with data on the conditions of
your crops,
you can use chemicals very effectively and focused and in this reduce the overall
consumption of chemicals,
which have also an impact on global emissions on the field.You can create agro-platforms.

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That means where you can jointly buy materials but where you can also jointly sell your
produce because currently still 30% of the fruit
is wasted in the post-harvest processes. And that leads also to unnecessary emissions.And
finally, digitization can actually help you to trace your food
from feed to fork and help the consumer make conscious decisions on the food they
consume, where they buy, and what they buy.
So digitization helps to create transparency and increase production efficiency.So let's try to
summarize how digitization can
in analysis, simulation, abatement, and adaptation around climate action.I think we have
discussed and showed that Big Data, hyperconnectivity,
and supercomputing will allow to analyze and predict climate change impacts in greater
detail. A platform and the connectivity to Internet of Things
is very important to get real-time information at hand for decision makers. Let's talk about
abatement.
Digitization in itself is one of the key elements to reduce emissions.Avoiding physical goods,
that is digitization,
reduces overall resource consumption and energy consumption.Big Data,
hyperconnectivity, cloud computing, and supercomputing
are really relevant to increase productivity and resource efficiency while reducing overall
resource consumption and, by that, also energy consumption.
So assets and the Internet of Things connect all the involved participants
as well as people. Customers can see the footprint, the energy footprint or the ecological
footprint, of the products they buy.
Business networks basically connect all participants in the value chain and all your business
transactions and operations are run by a digital core.
Finally, adaptation. How do we have to change or what do we have to change to deal with
climate change?
Big Data, hyperconnectivity, supercomputing, cloud computing are all key elements of
digitization of the fourth industrial revolution.
And digitization is again a key element for energy consumption and that reducing overall
global greenhouse gas emissions.
The platform again provides the connectivity through the Internet of Things.
The digital core creates reliable business operations.Customers are connected and see the
ecological and CO2 footprint of products.
And again, the business network connects all constituents in the value chain.With this, I
would like to conclude unit 3 about Climate Action.
The next unit will be about UN Global Goal 17: Partnerships for the Goals.Until then: Think
digital!

Week 3 Unit 4
00:00:10

Hello and welcome to week 3, unit 4: UN Global Goal 17 Partnerships for the Goals.

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In the last unit, we talked about goal 13: Climate Action And this time, we talk about goal 17.

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World leaders have committed to achieve the United Nations 17 Global Goals in September
2015.
But they won't succeed alone.Therefore, goal 17 revitalizes the partnership of sustainable
development.
This partnership must embrace and must be embraced by the private sector, their financial
systems, and their technological innovation.
And even though this is the last goal, this goal is essential to achieve all other 16 goals.

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So let's look at a few facts why the public sector and the private sector have to collaborate
to achieve the goals.
Cities generate 80% of the gross domestic product in many countries.But they also create
70% of the greenhouse gas emissions.
The private sector has the money.It has the money to actually engage in
achieving those goals.
Their supply chains create social and environmental impact which are listed as sub-targets
for the various
goals we discussed during the sessions.
Now if we look at one specific target of goal 17 in the area of technology, it reads: Fully
operationalize innovation capacity-building mechanisms
for least developed countries by 2017 and enhance the use of enabling technology,
in particular information and communications technology.Therefore, this multi-stakeholder
partnership requires trust in the private sector.
One of the key challenges of the Millennium Development Goals was that they were very
focused on governments, NGOs,
and UN agencies. The private sector was barely involved. And also, the classical and
traditional stakeholder groupings of the United Nations
said or expected or believed that the private sector was responsible for climate change, for
poverty, and inequality.
But especially the large multinational companies have actually the financial and the
personnel capacities to engage
in the goals and help achieve the various goals through their operations. And finally, the 17
new goals deal with employment or unemployment.
They deal with economic development or consumption issues. And all these are related to
business operations.
And that's why it is crucial that the private sector is engaged. Now what additional value can
the private sector bring to the table?
Their global value chains touch millions of lives.And if they increase or include more people
in those value chains,
this expansion will create economic development.And in this, actually new markets for those
companies or
reliable supply of raw materials. And we have seen this in a few sessions earlier on. So
therefore, the 17 goals represent risks but also opportunities
for corporate organizations. And they help drive corporate engagement because it's very
easy to link
the Sustainable Development Goals, or UN Global Goals, to the purpose of
companies.Corporate organizations have the immense technical and people resources
to actually engage in the goals. And some of the global companies, especially, for example,
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have already published statements that they will try to help achieve, for example, goal 3,
which is about health and well-being.
Companies are driven by performance and they use focus and discipline to turn aspirations
into results.
That is not always true in publicly funded projects, for whatever reason.But it ensures
success.
And finally, companies are used to monitor and measure progress and that, again, helps to
achieve success.
Now let's dive a little bit deeper into the 5 pillars of the partnership.Finance is always the
basis for all economic development,
and we have seen this that microfinance is an opportunity to escape poverty.But here they
also talk about specific investments to be made
to resolve challenges in emerging countries.But also providing and offering financial best
practices
to help strengthen the financial situation in the various countries. Just think about tax and
revenue collection.
Some of the goals need very immediate and fast action.And therefore, a collaborative,
trustful innovation climate will help
advance some of the technologies. And we have already talked about the fourth
industrial revolution
so basically, the collaborative digitization of value chains, which will enable inclusion of
small businesses,
which will reduce overall resource consumption and which will increase energy efficiency.

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But there are also asking to develop specific technology to address challenges in emerging
companies and transfer technology.
For example, like desalination assets or decentral and reliable energy supply.

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And finally, we're coming back to education. Education will be one of the key cornerstones

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to increase economic development in emerging countries.In the last unit, we talked about
forced labor, slavery, but also about fair prices.
So if there is a global and very transparent trading system, all will benefit. All participants
will benefit from this system
because it creates a level playing field.All but criminals.

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They also talk about increasing the exports from developing countries.And it is not meant
the raw materials, but it is more important to export premanufactured and manufactured
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because then parts of the value creation will stay in the country.And they also address
systemic issues for the various regimes.
Policy and institutional coherence will help to level the global playing fields and create
equality for all participants.
I would like to dive a little bit deeper into the monitoring and accountability of data. What
gets measured gets done.
That was the result of a study UN General Secretary Ban Ki-moon actually initiated about
why the Millennium Goals, or the reporting of the achievements of the Millennium Goals,
was so difficult.

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And that is why the Global Partnership for Sustainable Development Data was launched
also in September 2015.
This partnership is a combination of governments, international institutions, private
organizations, companies, statistics and data organizations.
Previously, investments to help the poorest of the poor were based on data which may be
incomplete,
inconsistent, old, or plainly wrong. And these decisions were made

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to support equality in health and gender, education and economic growth, or climate
change.
Let me give you a few examples of these kind of wrong or incomplete data.300 million
people are missing from household surveys.
Maternal mortality is just measured in 16 out of 100 births.The monitoring of the global data
will only cost $1 billion per year.
But $1 trillion are lost due to corruption in emerging countries.99% of the data is digital, but
we only analyze 1%.
So therefore, the vision of the Global Partnership for Sustainable Development
Data says that they try to get a world in which
everyone is able to engage in solving the world's greatest problems by effectively using data
and fostering trust and accountability and sharing of data.
And the first-year goals are: improve the effective use of data, fill key data gaps,

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expand data literacy and capacity to deal with and analyze data, increase the openness and
leverage of existing data,
and finally mobilize political will and resources to deal differently with data.So with that,
digitization will help to collect,
cleanse, harmonize, and provide data openly and to all.And this will help monitoring the
progress of the achievement
of the 17 United Nations Global Goals.With this, I would like to conclude unit 4.

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The next unit will already summarize the entire class.And until then: Think digital!

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Week 3 Unit 5
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Hello and welcome to week 3, unit 5.In our previous unit, we presented the last UN Global
Goal, number 17: Partnerships for the Goals.
As we have seen across all units, collaboration and holistic thinking are fundamental to
meet the global challenges.
This was the underlying theme of our course, which I would like to recap for you now in this
final unit.In the first week, we have presented several examples from different industries
to show how integrated thinking can ensure long-term success and help shaping
sustainable business models.
With this holistic approach, the focus is not strictly on financial performance, but is much
broader.
It includes understanding how their social and environmental activities influence their
performance.This not only includes the impact created by an optimization of their
operations,
but also the impact created through their products and services.Regulators are responding
to the recent economic crisis and scandals.
They believe that enhanced transparency of the holistic performance of a company reduces
the risk of misbehavior.
Accordingly, environmental, social, governance (or ESG) issues are becoming mandatory
disclosure items.
Investors, as the primary providers of financial capital, are one of the key stakeholder
groups in organizations.
They too increasingly understand that a company's good social and environmental
performance has a positive impact on their long-term prosperity.
This is particularly relevant in the fast-growing market of responsible investments.While the
awareness on these topics is increasing,
there is still some work to do in the mainstream investment community where ESG topics
are hardly ever considered for investment decisions.
When companies look at impact creation, they change their perspective from "How much do
I give?" to "What difference do I make?"
While traditional business models focus on output, innovative business models start to look
at outcome.
If you want to make the shift and master the global trends and challenges, you need to
understand the impact that your products and services create.
In unit 3 of week 1, we tried to present what potential social impacts are. We discussed
examples in the areas of compliance with human and labor rights
but also how to create economic development and how to include more people into global
value chains to enable inclusive business.
After that, we looked at how environmental impact can be created by increasing resource
productivity,
fighting climate change, minimizing ecosystem degradation, and protecting
biodiversity.These examples show that creating social and environmental impact
is not only about doing things which are related to the purpose of your company. It also
reduces business risk, helps you protect resources and thereby
ensures your margin, and finally it opens new potential markets. In 2015, sustainability
made it back on the center stage of the global agenda.
Three big, relevant things happened.Firstly, in September 2015, world leaders from almost
200 countries
committed to achieve the new 17 United Nations Global Goals. The development agenda
describes the path towards the United Nations' 2030 vision.

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Secondly, in December 2015, the COP21 agreed to limit the global temperature rise to less
than 2C
by the end of the century. If ratified in April 2016,
this agreement will become legally binding from 2020 onwards.Thirdly, and way before the
two frameworks mentioned above,
Pope Francis published his second encyclical. He clearly makes a connection between
environmental destruction, poverty and inequality.
He encourages all people and businesses to think more long-term and change their
behaviors to "Take Care for Our Common Home".
The main portion of week 2 and 3 was dedicated to the 17 UN Global Goals.In contrast to
the Millennium Goals, which were mainly viewed as relevant for the developing countries,
the 17 UN Global Goals address both emerging and developed countries.The aim of the
goals is to decrease inequality between and within countries.
The targets of the global goals will be only achieved if all parties work together. Strong
alignment between governments,
the private sector, and civil society will be the crucial success factor.We discussed the
impact of digitization to achieve selected global goals.
For goal 3, Health and Well-Being, we showed how hyperconnectivity of mobile phones and
Big Data analysis
can help contain a Malaria outbreak. We mentioned how supercomputing enables precision
medicine
and helps increase the survival rate of cancer patients by identifying the best individual
treatment plan.
Hyperconnectivity and cloud computing can impact the achievement of goal 5: Gender
Equality. Providing quality education for girls via online classes raises the chance to get
decent employment.
Cloud-based platforms facilitate global mentoring of women to help them assume leadership
positions.
Creating supply chain transparency across business networks will help create Decent Work
and Economic Development as addressed by Global Goal 8.
It can reduce slavery. Business platforms also match digital contract work with digital
contractors, globally.
This opens attractive income opportunities for digitally skilled people, independent from
where they are located.
We saw that hyperconnectivity can make cities and communities more sustainable, but also
safer.Digitization will also provide innovation platforms
making growing cities an interesting place to live. Looking at Global Goal 12, Responsible
Consumption and Production,
we identified how hyperconnectivity and Big Data can help increase resource productivity.
Digitization will be the key enabler of the fourth industrial revolution.
For Global Goal 13, Climate Action, we presented examples where companies leverage
positive environmental impact
to differentiate their business. The four examples showed how reducing energy
consumption
and in this way greenhouse gas emissions, can create revenue growth. And finally, all
aspects of digitization contribute to the underlying Global Goal 17:
Partnerships for the Goals. Leveraging data will help to monitor the progress of the
achievement of all goals.
And these data will come from digitized economies and will be the basis for the digitized
economy.I would like to come back to the overall theme of our course:
sustainability through digital transformation.We identified five digital trends:

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00:11:31

hyperconnectivity, supercomputing, cloud computing, Big Data, and digitization.We also

talked about five global trends,
namely population growth, demographic change, urbanization, resource scarcity, and
climate change.
In many cases these trends are viewed separately. Some business organizations may focus
on one of the global trends.
Some may connect to individual trends and adjust their business model. Many understand
the trends as a risk.
Only few thought leaders use them to their advantage and turn those trends into new and
sustainable business opportunities.
Within many IT organizations, the speed of change brought by the digital trends is even
seen as a threat. Cloud computing and software as a service are threats for in-house legacy
systems.
If only 1% of all available Big Data is analyzed, today we may lack the skills to derive
information from noise.
So many IT organizations are in catch-up mode and under increasing cost
pressure.Sustainability experts do not think first about digitization when they approach a
new opportunity.
And vice versa: IT organizations rarely think about sustainability. They may be looking at the
energy consumption of their server farms
but only for cost reasons, which is fair. But they do not necessarily consider reducing the
CO2 footprint of their operations.
We believe that the IT trends and the global trends go hand in hand. IT and digitization will
be the key enablers
of the transition towards a decarbonized economy. Digitization will offer simple access to
capacity building, for anybody, anytime, and anywhere.
It will enable global inclusive business and provide a level global trade playing field. This will
initiate additional economic development and help people escape poverty.
I hope we provided some inspiring examples how digitization helps sustainable
transformations. Now you can start leveraging digital transformation to drive sustainable
innovation.

00:11:49

This concludes unit 5 and the entire course. At the end of the last course we quoted John F.
Kennedy.
This quote is still or even increasingly valid for sustainability. "There are risks and costs to a
program of action.
But they are far less than the long-range risks of comfortable inaction." Take action!

00:11:57

I wish good luck as agents of change.Take care and goodbye.

00:11:39

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