 Good morning, everybody. My name is Arit Kedesh. I'm the chairman of Bain & Company, and it's a real pleasure to be here with this wonderful panel. Our topic, the digital economy, is not new to the voice, as I think almost everybody here knows. The discussion, however, has mostly focused on personal and business-to-consumer transactions BGC. But with communications between and among devices spreading really rapidly, the Internet of Things has now truly brought the digital economy into the business-to-business, the B2B world. And it's an important event because an aggregate, the volume of B2B transactions, is more than twice that of B2C. So before I introduce the panelists, let me point out just a couple of key differences between the B2B world, which we will focus on, and the B2C one. First the product. In the B2C world, the digital transformation is often in how products and services are sold and marketed. So the sweater I buy today, if you leave aside fashion, is the same as the one I bought 20 years ago. In books or music, the content I value as a consumer is similar. It's pretty much the same. It's not changed. So it's a disruption in channel and medium that has mostly disrupted or transformed those industries. In the B2B world, the products themselves are changing as well, really acquiring new functions. So a jet engine, for example, has become as digital as it is mechanical, producing reams of valuable data, in fact about 10 gigabytes per second. And when you add it to a database of other engines, like itself, this engine can actually tell you when it needs maintenance. And it can tell you when it's at the customer after you've sold it. Second is data. As in the B2C world, data is absolutely central, but the power relations are different. In B2B customers will not give their data away casually the way we consumers do for convenience. They hold their data tightly. They give it up reluctantly and only in exchange for benefits they can understand. So with data becoming a precious competitive asset in B2B, and the fact that it can be generated and used anywhere in the value chain by anyone in the value chain, I was a chair. Who with? Who's going to get the most value out of it? Who will generate value and for whom? So these now become crucial questions in this new time, and indeed from design to manufacturing to end customers who are observing new ecosystems that are being developed, new collaborations and partnerships are formed and experimented with. Fast is there for becoming an important ingredient in this equation and customers testing collaboration with pilots before they're signing on. And finally security in the age of the Internet of everything basically. Everything indeed can be attacked, stolen, or manipulated and from many different places and different access points. So while security is a concern for everyone in digital, business customers will be far less forgiving of major breaches and consumers has been so far the business environment really ups the ante for it. We have a great panel for CEOs of great global B2B companies and all are both developing new products and services for this digital economy and adapting their organizations to its impact. Both of those are very important as I think we'll find out. Let me introduce them actually in alphabetical order. Inge Biel is the CEO of Lloyd's Insurance and Re-Insurance Marketplace, also the words leader in cyber insurance. Steve Balls, president and CEO of GE Power, a world leader in power generation and water technologies. Dr. Liu Jiran, founder and CEO of Noisoft, the leading Chinese multinational IT and service provider and finally Bill McDermott, CEO of SIP, a global leader in enterprise software and computing. Welcome all. Thank you. Thank you. Steve, I'm going to start with you. Great. GE is an industrial leader for over a century. I bet nobody was asking you to sit on a digital economy transformation five years ago. Now GE is calling itself a technology company. What does digital transformation mean to you in the context of your business? It's fascinating. Let's give it a try in three minutes. The digital transformation is the single biggest thing as far as transformation going through the company for us and will be for the next 20 years. As you said, this is our 125th year. I've been on 23 years with GE. I was an electrical engineer. I didn't talk a lot about software for the first 20 years of my career. This digital transformation is real. You mentioned it earlier. The industrial internet will be two times as big as the consumer internet. We really started going at this about five years ago. If you look at a gas turbine, one of our core products, two terabytes of data come off it every day. That's more than any of us could possibly put on social media in a year. In the utility industry, which is the group that I'm responsible with, which is about a quarter of the company, only 2% of that data is used for something today, productively. There's a tremendous amount of productivity that can be released to get better performance out of existing assets. Today, our customers across GE Power represented the quarter of the world's electricity. With Alstom coming in now, a third of the world's electricity. The issue is how to get more out of the installed base. That was the opportunity we originally saw. I was leading the service council for GE at the time. We brought in a person named Bill Rue from Cisco World. We had to bring in some new talent to think through this because all of our businesses were being reimagined by software. We chose to do something about it. We chose to do something about it. We originally thought we could get the value through just enhancing services for our customers. I would say we have quickly evolved from that to the second point you made, which is product. We said, hey, we're just not going to be about software in enabling our core offerings. This is about new software platforms. We have a new product that we've introduced called Predix, which is a cloud-based open architecture project that will work horizontally across all of the GE product offerings. Jet engines, healthcare, gas turbines, everything we have. We have a product called the Digital Twin, which is something where you go, that's an interesting name, but it actually is a virtual copy of any asset we have in our company for our customers that exists in the cloud. It real-time pulls information off any asset in the field and compares it to what should its optimum performance be based on physics-based models, machine-based learning, and an understanding of what could be done better. On asset in the field, can it operate more efficiently? Is there an unplanned downtime that's coming up, which could shave off a tremendous amount of value? We now have 500,000 Digital Twins operating today, and these are across all of our platforms. It's been a major transition within the company. All GE businesses now have a chief digital officer. The one that I've run in three years ago did not come from a typical power background. He came from PeopleSoft, SEP, and we've had to import a lot of talent in the company, but I would say this is, I do a lot of work here at the World Economic Forum with the Electricity Cluster, and we highlighted last year $1.3 trillion of value to the energy industry in the next 10 years. $400 billion to that alone was just reducing unplanned downtime. It's happening now. One of our customers in Italy, they had a power plant that was going to get shut down. With software going in, that plant not only is not shut down, but it's the most efficient to dispatch plant in Italy, and that's through software and hardware really transforming how assets perform in the world. That's what's going on within the company. That is fascinating. I'll come back to you on some of your points. Everybody should remember that. Very important topic. Bill, in 45 years you've been on the forefront of providing business to business enterprise solutions, so B2B is really not new. How are you looking now to shape the right digital outcomes for your customers and for yourself? We set a higher purpose for the company to help the world run better and improve people's lives. The reason we focus on helping the world run better is a lot of the things that Steve just said. Businesses are changing in every industry all over the world, and you have to be very in tune not with just B2B, but their consumer. It's the customer's customer that we're obsessed with right now. The second thing that we had to do is unleash human potential and really have empathy for people. What I mean by that is it's not enough to sell a business a system. You have to understand the business's ultimate consumer. That's what everyone's struggling with. In a world where people are on the move, the internet of things, the big data scenario, everything getting so complex, how can you simplify everything so your customer can do anything for their consumer? One of my favorite stories is Under Armour because it's a performance inspired brand that makes shirts and shoes, but now you're seeing the evolution of the business model based on data because if I can have embeddables and wearable technology connecting to the device that maps my run is very focused on what I eat and how I'm performing and how I'm sleeping, imagine the data now that's generated from that. What business is Under Armour in? Are they in the shirts and shoes business or are they in the healthcare business? Ultimately, what is their greatest asset? Perhaps it's the data that's generated by the 195 million digital consumers out there that are just trying to get better every day. These business models are evolving very, very quickly and our ability to have the empathy to understand that and do something with that is what is changing everything and Steve mentioned healthcare, healthcare as an example might be the biggest opportunity to change the world, so we want to focus on things where the business serves the business and the ultimate consumer at an empathetic level never before achieved in the world. That's our goal. Thank you. My pleasure. Talking about healthcare. Dr. Nuisoft has founded a cloud hospital, so I'm trying to create a theme here, which is really a new form of B2B collaboration connecting an ecosystem of hospitals, insurance companies, pharma companies, suppliers, government, pharmacies, a little bit about the nature of the collaboration and if I make, if you can touch on the balance of between data sharing and privacy and security that come with it in healthcare in particular. Nuisoft is an IT services provider, but today we define us as we use the software, define business model, define the business ecosystem. So if you look at healthcare system, maybe same in all the world, one hand they have insurance, they are paid, another hand is a service delivery, is a hospital, and then a customer, so that is not single sector can talking about healthcare because it's ecosystems. So we have in China, we have a 50% market share in social security. So that means a half percent of expense of government pay for healthcare is based on our plan for. We have thousands of hospitals use our hospital information system. So we manage all the operation of hospitals from his pack, service, at least personal healthcare record. So we have insurance to control the hospital, do we check all the transactions of auto use drug, what is the right to use the medical process. On the other hand, we need to help the hospital to make very sustainable, not only after control, I can say if we just use our technology, just one hour, maybe all the hospitals can stop because many of transactions is overtaken by check, CTMR or something. So those kind of situations like us to think about what it means the software company to help them to build a system, then we got a kind of concept we call the Kala Hospital. So that means we help the hospital to move their services from a big hospital to be home, to be community. So that means because we have a big data, that data shows that big hospitals stay on 70% of their treatment is not profitable. They cannot make money, only 30%, they really made money, but they spend 70% of the resources to make those kind of works which cannot generate the cash. But we have a 70% of resources for community hospital, home, family doctor, they are just to waste their time. And so we make a Kala Hospital, we make all the connection by internet, we like each of individual to have a personal doctor, family doctor, we like each of individual personal hospital, I mean the data, personal healthcare data from a hospital to move to each of individual's hand. Of course, it's a kind of a contract. So that means you have your personal document about all the health care, even you move from one hospital to another hospital. On the other hand, we build another connection by variable devices to like a millions family, they can monitor like a diabetes, sleeping, blood pressure, something. We build a new ecosystem, we like each of the stakeholders. They can sustainable to run their business and not just one hand be a safe, another hand cannot be doing their business. So that is what we did. So we're sharing that data, the challenge to us, we become not a software company, IT company, we must understand more insurance, understand more medical drugs and all those kind of things. And also, not only B2B, I call that BBC. That means we must understand C. And then we can understand B. That was the C at the end. Yeah, if you don't understand C, you cannot help B to make such a business. I'll come back to security, but thank you very much. Talking about security, Inga, you obviously play a major role in the market of cybersecurity and your insuring businesses. But to do that, you really need to understand how cybersecurity works, how your customers are actually practicing security. And actually, in your opinion, do they do enough of it? Yeah, and of course, we're in the risk business. So we're always looking at what's going on in the world. And I tell you, the rise of digital is quite alarming. And if you look, we've got a selection of businesses here today who are really investing in technology. But if you look at the S&P 500 and the number of firms on there and the assets and how they've changed, so many years ago, we would have said that 83% of the assets on the S&P were tangible of some sort. That is completely reversed now to 84% of assets being intangible. That means this thing that we can't really touch somehow. And that's what technology and the digitalization is doing for the world. So this puts businesses under completely different types of risks. And I think there are sort of two firms in the world when it comes to knowing about cyber. There's the firms that know that they've been hacked and attacked. And those who have been hacked and attacked but don't know they have. They haven't had 100% of the firms yet. Yes, exactly. Because let's face it, that's what's going on in the world. And we know there are all sorts of types of hackers out there, some just doing it for sport, some much more malicious and wanting to bring companies and potentially governments down. So it's a really serious threat out there. And way, way up on our emerging risk radar, as we're looking at the risks that businesses are facing because, of course, we do mainly ensure businesses. And I think the thing is, it is getting on the boardroom agenda these days. But some of the survey work we've done, particularly recently in Europe, is showing a certain amount of complacency still. In the CEOs, perhaps their IT departments, their head of IT, their head of digital is saying, they don't want to be seen to be doing a bad job. So we've got everything under control. We're doing all the intrusion testing, the penetration testing that we might need to do to make you feel secure. Because, of course, they're defending their role and their job and what they're doing. But it is really up to the boards to keep pushing businesses on this. Because no business can say that they're safe on this. And I think importantly, you have to do work on your firewall and make sure that you've got antivirus software and everything in there. But importantly, of course, everyone is being connected to other people. So there are all sorts of suppliers. There are all sorts of customers that people are also connected with. Anyone can get in, potentially, to your system through any of these sources as well. So it's no good just checking your own firewalls and your own protection. You've got to go beyond that and look at all your partners. And another important fact that we've outlined is actually, or discovered, of course, is most of the incidents, most of breaches are still down to humans. And over 75% of breaches. Some studies say nearly 90% of breaches are caused by some human, either an error by a human or some misconduct. So it's amazing when we think about this digitalizing world, how important still the human is and how disruptive they can be. So getting your staff trained, understanding how they can be part of your firewall and your defense, I can't overemphasize the importance of that element. Aren't you going to have a robot since being trained? Maybe we'll have more mistakes. I'd love this to be a conversation and please do get into comment about each other. But talking about the amount of data, which we all sort of touched on, and in particular, you're talking about power engine, you're sharing data, and you want to have people obviously share their data on predicts, so the good things that you mentioned can happen. On the other hand, if I'm a utility, I'm going to be a little concerned. This is a different relationship than one I've had before. How do you, I know there are a lot of pilots going, but how do you think about those relationships? How do you plan for them? How do you manage them? And how do you manage the customers on the other side who are saying, why should I share all this information with you? I understand their benefits, but. I think in all of our relations we have with our customers, people now understand the importance of the digital transition, the power of data. Everybody's asking the question, but what exactly can I get with it? And these relationships in many cases for GE go back 80 years, 100 years, so we trust each other. And these are relationships that are passed down through generations. What I would say is that there's no question about it. Every discussion starts with, from the customer, how's my data gonna get protected? And is that within their specific site, within their country, how's that gonna work? After you get from that, many times we get into an area where they want to share their data on a pilot basis. That's why I think what's a little different in the B2B versus B2C world. We'll work with an airline. We'll work with a power customer and they say, I'm gonna give you, you probably could have predicted that couple unplanned down times, which lost you a lot of revenue. By the way, you could have done your maintenance a little differently. By the way, there are certain times you could have turned up the output on them at certain times. Those are all things that same back and go, okay, that makes a ton of sense. That gives me more productivity as a customer, but you're still gonna have the question of, is my data protected? And I would say that is, and we're gonna have to host sessions with a number of their cyber officers together with our software teams. But I'd say what's different in the B2B world is there's a clear understanding for it. They have their firewall teams. We share our experience around GE on what we have to do as a company, not only at the factory floor to all of our diverse employees, 300,000 around the world, how that rolls up. But I would say is nobody's saying because of that risk, I'm not going. I'm going on this digital transformation. We have to be clear how we do that and face it, it's the customer's data. And it's us working in partnership with them on getting the value for it. So let me just ask you a question. So I experimented, I piloted, and boy, I love what you told me about that jet engine that is an easy one to follow for us to understand because we all fly in planes. And you saved me downtime on the plane because of whatever your example was. Gee, now I don't want to, I still want to have two or three suppliers, two in this case mostly, but two or three suppliers. I like that information on the rest of my engines. What happens to the customer discussion then? I would say therefore in our world, we had to design our Predix operating system platform for the industrial internet to work on anybody's equipment because our customers in a digital world, their assets, as much as I would like them all to be GE, is not going to work out that way. It's going to be a multidiverse fleet for many years. So when we design our platform, it has to, number one, work on everybody else's equipment. Number two is many times the customers say, I want to write my own applications. I want to do my own value added work. So we have 20,000 developers now working on Predix of which some of those are customers so they can do their own work. So you're right, as they get into a pilot, they want to expand it. They want to use it on their whole asset base. They want to do their own development work. And that's something that I think is different in the B world, which is you have to enable the customers to generate their own creativity. You have to be able to work in an environment that's not all of your legacy equipment. So I'm going to move right along, but so you've gone from being really a hardware company if there ever was one, so really great hardware leader in many segments to truly changing the nature of your business to becoming more and more truly a technology company, as you say, because you're open to things that you couldn't have imagined before. So it's a completely new world that we're on. We have embedded in this business called GE. We have a six billion hour software company today. And it's going to be top 10 in the world going forward. But what's different is that each of our industrial businesses have a chief digital officer. So I think that's the difference we're trying to do is yell there'll be a software business within GE, but it's how to differentiate our hardware businesses. That's where we're headed. You mentioned talking about data and how people trust it, that you really have all this data moving between all those different entities that you mentioned, especially in healthcare. People are very concerned not just about security, but also about privacy. How do you manage that? You have enormous amount of data between really a quite a number of entities. I think that firstly, for healthcare data, who's the owner? That is always the question about that. Yeah, but it still moves around between different people. Some people said it's a belong to hospital, but most people do believe that we belong to each of the individuals. So because of this, we make a kind of agreement with individuals by mobile phone. So the logic is that most of the individuals, they want to benefit to sharing that data because after they're sharing that data, they can use that data to say different doctor. They can use that data to combine with the big data to got a more precise medicine or something. So of course, if he said I don't agree, so that means you're quick for those kind of services. If you like those kind of services, that means you sign the contract with the hospital. So that is a basic rules. But I think the safety, that is a privacy, but most of problem of data is not only privacy, it's safety because a lot of attack, because a lot of application to the mobile phone. So many of developer of those kind of small software, they have a lack of knowledge about the safety. They don't know how powerful attack the force. So that means many of those kind of apps is very, very weak to protect the data. So the data is not only for privacy, it's by the agreement, by office order arrangement. Many of these closer data is because of attack. Smartphone, many of smartphone is not safe. Many of apps is not safe. Many of third party service provider is not safe because they are not the knowledge about how to build very strong, powerful, to secure the plan for. But in your, you're the entity that actually is connecting all those different entities. So I understand the privacy, I signed it, that's fine. And I understand my phone is not secure, but don't people expect you also to make their data safe, as you said, not being hacked because you are connecting. You are the one who's. It's always a challenge, you know, security is one of our services. We have a few, I think something, 2,000 people working on security. Because not in healthcare, we have another sector in a car. We have a lot of software, millions of car use our software for driving assistance and automatic drive and car to car to communication. Any of smart devices is a target will be attacked in the future, so easily. So if you're imaging the car lose control because of remote, but a lot of information exactly come to cloud. So because of this, as a software or IT company, security is one of co-competence of your company. So even you do any other vertical sector, but safety, security is become your core technology. This one, secondly, it must be transparent. For example, most of our car maker in China is our customer because they buy a license of our technology. But now we build kind of like a committee, like every car maker to join us. So we're working together, like him to understand our technology. We're very much transparent to him. So like him to understand how to keep, you know, secure inside of a car because they have no experience in past. The car before is now connected. Yep. Could you just say something about this, this idea that it is the CEO or the firm's responsibility. And I think it definitely is. And I think CEO's roles can be lost. I mean, they can be finding themselves out of work depending how they've handled some sort of breach of security. And it's not just for B to C businesses. It's B to B, B to B to C. It's going to be so important. Share prices can be dramatically affected. Valuations can plummet, all depending on how you've responded to a breach. So we live in an imperfect world. We know we can't get that security right upfront, but there's a hell of a lot we can do post some sort of breach in handling it. And I think that is also equally important to get yourself prepared for because it can mean you're out of a job or your company has really suffered depending how you respond. I think not only CEOs, but governments can come and follow. That's, we've learning. Touch and security in your relationship because you mentioned they have changed some. So you've been in this business of supplying solutions. I said for a long period of time and you said we're B to B to C. At the end of the day, everything is B to B to B to C to C because C is ultimately what judges. But what has fundamentally changed in the way you look at security? Yeah, maybe one way of simplifying it is to think of it as a consumer to business economy. And because the consumer is in charge of everything, whether the consumer is shopping for a product or they're a patient, they expect precision personal service. And they want what they want in the form they wanted in. And you mentioned a great word earlier, which is trust. And to me, that's what that bond means with that consumer or that patient. That there's an implicit expectation that if I do business with you, I can trust you. So the single view where the customer starts with the device, they're on the move. They're creating transactions and communications with you. They're extremely social. They're obviously shopping all channels, so this omnichannel world we're in, whether it's direct to consumer, wholesale or retail, they're everywhere. And they want you to know exactly who they are in all those channels. Now what's interesting, once I have that single view of the customer, that means the big data challenge has to be coalesced no matter what channel I'm dealing with you, including social. Now when you get into the supply chain, you're gonna see a lot of co-innovation going on between companies because no one company has all the solutions. So you have trading partners and people you work with. And this is where it gets kind of interesting. And I think the point that Inga made earlier, which is the expectation is not only that you're secure, but your trading partners are secure. So more and more I believe that inter-enterprise computing between companies and trading partners and the secure nature of those interactions is gonna be an expectation on the part of the ultimate consumer. And the reality is when you're a brand-led company and that's the nature of a consumer-led company, I don't think you'll last very long if your consumers aren't secure. And on this healthcare debate, I mean, this idea of opting in because you can self-secure my record. And as I go from a first responder to a nurse, to a doctor, to a surgeon, from one hospital to another, to know that those exchanges are secure is one thing. But also to know that the quality of the care is the highest and the best is another thing. And people have a false sense of security today because what's so secure about filling out a form and doing it every single time you talk to a new person in a new department and they call out your name and say, you know, Mr. McDermott, you know, we're ready to see you now as you're addressed still to say. You're all just as okay. All right, so I think the idea is opting in whether you're a consumer in a commercial arrangement or you're a patient in a medical arrangement to expect total single view and precision care whilst also at the same time getting security. And it's our job running big companies to secure inter-enterprise collaboration as a layer of security to deliver that promise. And if we don't, we'll suffer tremendous consequences. And I think you're absolutely right, Inga, on the risk of not doing that extremely well. Can I just say, I just think it's fascinating this, you're talking about the experience that are in the waiting room. Our industry, the insurance has traditionally been very, very paper based, but stacks and stacks of data. But people didn't really think of it as sharing data. And it's only now, since we've started to digitalize our processes, when the data can suddenly be shared more easily that people are getting very worried about it. I can tell you years ago, nobody worried about putting all of this information on and sharing it with us. It was all pieces of data, but it was on a piece of paper, but somebody could have actually digitalized it. But I think it's amazing how it's happening now. And also the exponential growth in data. I just think we were talking about big data five years ago and what 90% of it's been created in the last two years. So we didn't really know what we were talking about back then, but I think it's just interesting the concept of what is data these days. Because almost everything is in some way. It's now the digitalization, the ease of spreading it, isn't it? That's really causing us the problems. It's the magnitude and the ease of spreading and the scale. But let me just take this one step further because you're right, me as a consumer, the ultimate judge of this healthcare, for example, and the company, the CEO of how they lose his job, as will happen here. But if I'm on an airplane, I don't get a choice to say that I liked or didn't like the fact that somebody interfered with that jet engine and the airplane went down. So it's, and this is what I said about upping the anti, imagine being on an airplane. The engine is communicating all the time. It's sending those 10 gigabytes a second and there is a ability now to interfere there, which before you actually have to have a person on the plane doing things. So it really has upped the anti in many ways beyond what you as a consumer think about. So we get on an airplane, we don't immediately think, is your data secure? Can I please show it? Nor have I signed anything. So maybe, and same with utilities, so you can bring down cities and towns and then countries. So maybe tell us about that extra thing beyond what the consumer really is aware of that you have to do. There is a, especially in the industrial world, there's an expectation that's been there for a long time. The assets will perform. For many years, we've been working with our customers to pull down real-time information on assets as they perform in field for many years. That's been done for just predictability, reliability. It's also been done for maintenance, scheduled maintenance. The issue in this new world with machine-based learning, data, physics-based models, et cetera, is after that base of you gotta do that as the beginning, you can take that to another level. And that's the real opportunity that's opening up. The point's been made a couple of time on trust. The data's been there. I would say in many of our industries, less than 5% of the data is really mined. So once you get past the data's secure, are we looking at all of the data? And the amount of data that's coming in is astronomically growing. So the potential's there too. So the point that's been made around the foundation needs to be secure. There's an expectation that it is, but I think more and more people understand that there's always gonna be some issues. Then with that, it's, but there's so much more to be tapped into. And it's trust. When issues come about, you have to be very transparent. That's something that builds into the world we're into now. And I think it's one where no one company can handle everything. So we've said earlier the need for partnerships. I think in this world, as we've made the transition, and we are still well, and this is gonna be many years. I would just say is we've had to open our minds more to much more third-party partners, people that understand various industry ecosystems, people that understand expertise in certain areas, cyber or certain applications. I just think that's the nature of this transition that we all have to go through. Let me, quick round, just one question on security, and then I'll move on to something else. Security's always been an important part of what everybody does. Obviously, as you said, it was to be papers. The only thing now, you can access it from donate different patents. You have to protect it in many different places. What percent of your budget would you say is the grown-up security? How much bigger is it now? Or our- I sit on boards and they used to not look at what it is. Our security budget, my guess is at least three X's what it used to be just two or three years ago. Some of that is just security, some of which is we are putting more of our platforms on ERPs isn't one of which is we're using bills right now to do that. And just one of which is the threat is higher. But that's just a piece of our investment. If we look at cyber up three X's, but if you go through a digital transformation, this is hard, it takes many years. We've been at it over five years, and this is not for the faint of heart. Our business, we put in a billion dollars a year for five years, and you gotta just keep going. And it's hard, our chairman says many times, we're at step 10 of 100. We don't necessarily know what step 15 and 20 is. You will mess a few things up as you go, but you have to go. But back to your questions at the least three X. How about you? We, because we, news of business is so many vertical, each of them must have security product to guarantee. We have great obligation because it's a risk to us. We see the investment for security not only as a product to make money, and also guarantee our solution not bring some trouble to us, especially in hospital, in a lot of like transaction or social security. So we have something around 2000 people, budget, each of year for development product, so for focus on each of solution for each of the vertical solution. Bill, how's it going for you? In our case, security is the system. So the core business has to be a secure system, and it would be- But that was always true. I'm looking for- Yeah, and the rate would be commensurate with the rate of growth plus about one and a half X that goes just to security. The idea of security, the way I look at it, that's really changed for us. It's not just like we have to make the most secure system in the information technology industry as a related enterprise application software. We have to be very concerned with the customer and how they're securing their system for their customers. So for example, if you just think about a jet engine example, which is the one that you had earlier, I mean the idea of purchasing a part that might most attractively be priced in China to ship that, for example, in a secure network to the United States, to Ohio, and then have a person deployed that has the specific training skills to implement that part that came from a third party supplier and was sent through a financial network that had nothing to do with their currency. Someone else is managing all that. Get that there just in time so that plane is not only safe, but it's up because that consumer is not buying a plane ticket from that airline again unless they're always up. So this value chain of how it all comes together is ultimately all about, again, the original consumer and the high expectation that they have and it's a given that that ultimately has to be a safe plane, but it also has to get off the ground on time and it has to provide a great service. Now in the past, the hardware provider made a lot of money on the hardware for that jet engine and that's no longer the truth. Those margins are so lean now in the hardware industry that you have to make it up by providing an unbelievable service and the delivery of that service comes at a much higher margin. So all these businesses are changing right before our eyes and they're using big data and the idea of secure networks to achieve business outcomes that they never even approached five or 10 years ago. Thank you, that was actually, I think an important point that you really brought out. It's always true the B2B was about product and the service. There's a big aftermarket, but the move to more and more services and more and more happening there and a different nature instead of scheduling once a year maintenance, now I'm gonna schedule when I actually need to, which is of course the big benefit for that. But again, you touched about all the different places that these products, and I, if I wanna hack it, can figure out how to hack it from the weakest point or from five of them if I wanted to, which is kind of your point. You always had that much information. It's just so many people have different access to it. How about your security? Yeah, so we, the security is twofold from our perspective. One, because we've gotta protect ourselves so we have our own security issues to be concerned with, but also because we provide insurance for many firms around the world for cyber insurance. And looking at that three times multiple, the insurance premiums purchased globally and most of it's still from the US. Europe's catching up a little bit. Asia, Latin America, not so many buyers of cyber insurance yet, but the US is leading the way. But the amount of money people have spent on cyber insurance has tripled in the last five years and it's anticipated that that will at least triple again in the next five years. So I think that's an indication of how much just on the cyber insurance element, let alone all the mitigation that people are putting into their businesses that they're doing. So it's costing a lot and I think it's important. We don't, for instance, track how much we're spending on the security because it's being built into every single thing. So even if you think about your business continuity planning, so you're doing your disaster scenario, we used to do, gosh, what if the building and our buildings in the center of London, what if the Thames flooded our building, what would we do? That was what we used to spend our time and effort on. Now we don't, we spend our time and effort on doing a scenario about being hacked. And so you've got all of these additional costs. So I think in a way it's also quite difficult to assess how much we're all having to spend on it because it is just the way we're doing business these days. Inger brought up a great point earlier which is the human error. So even if the systems are secure, people make mistakes. So in a lot of companies there's a lack of training and an awareness for people on the whole security topic in general. One of the new big areas where I see security coming on real strong is with contingent workforces. So if you think about the fastest growing labor market in the world today, it's temporary workers. 45% growth in temporary workers around the world. So it's not just the U.S. thing. It's a transatlantic thing. It's also now taken off in Asia. So the question is how in a world where you're in a talent war, do you attract and retain the best people? And how do you bring them in with a surge when you're going through a project and yet make sure that those people are who you think they are? Also that you can account for them. If you ask most companies, CEOs today, how many employees do you have? They generally undershoot it by about 20% because there's a shadow workforce which is this contingent workforce that they have no handle on whatsoever. So one of the findings that we've had with human capital management is how can you have a business network that is secure that gets the customers the very best people but also secures those people so you know who they are and you know exactly what they're all about and at the same time you can account for them. So this is one of the biggest growth areas we've seen in enterprise application software at SAP is contingent workforce and managing the security of people and then massive online computer courses where you train people on all the trappings that will come their way, not just for your company but also your extended value chain because that's where default lines will come in. I wanna open this up to questions but just let me one last question following up on that. I think I heard your chairman say that we're not gonna hire anymore people who can't write code, he can't write code but so it's very much to your point, what do you hire? There was a lot that's been happening in your company with precisely that. How do we train the people? How do, even if you have a lot of software engineers how does somebody who's not software engineer understand what they're doing? Not really, can you just touch on that and then I'll open it up for questions. It's interesting, we have an annual leadership meeting for our top 600 executives and that's two days, usually in the afternoon there's break activities and you get to network and last year one of our break activities was to go learn C programming. That was different. So, and I'd say is that, I have three boys, one of my sons is in college, is freshman and everybody has to take a basic programming class and it's interesting, my middle son graduated, he was computer science, electrical engineering and I tell him we're going through this major digital transformation in GE and I say, how we're doing this, et cetera, he goes, dad, you have no idea what you're talking about. And he goes, what do you know about Python? What do you know about C? What do you know about Java? You were trained in basic and for-train. And you gotta learn. And I would say is that it's the language of the people we hire, we now have 22,000 software people in GE, probably 2x, five years ago. When you sit in a room with them as an operating leader, you gotta know the right questions to ask. We know the financial questions to ask, but what's the stability of platform? Can it interface with Zor, Google, Oracle? Those are all terms I know that I grew up in the company I didn't have to deal with. And I would say is that, so therefore any of our leaders coming, the leadership programs coming in, financing, et cetera, everybody will be trained and have to take a software course, it's true. And I gotta say it from somebody who's been through it, it's bumpy, but I would say it's eye-opening. Because one of the things I didn't realize is how much faster you can write code than you used to be able to, because it's much more modular. But I remember the punch cards when I was in college, you didn't wanna lose your punch card deck on the way to school. But it's just much faster, but it is important for the senior leaders to have a working understanding for what's going on here, it helps with the transition. Thank you, I have to say I've taken one of those courses just so that the fear and the being intimidated by it will go away as I could talk to people. Let me open up to the questions if there are any, let's start over there. So good morning, my name is Javier Santiso. I'm heading tech investments for sovereign wealth fund and based in London. And I have a question, it's maybe more for Inga Bill, but maybe for all, it looks like the new man tries to be connected, but there's plenty of issues to be connected in security and privacy, et cetera. So maybe we, I mean, the best insurance is that we can plug the button and be disconnected at some point. No, I'm not a technology expert. I don't know how easy that is. I don't think it's as easy as pulling that lock any more out of the wall because of this mobile connectivity that's going on across the airwaves, perhaps an expert. And I really don't think it's that easy anymore. And that's why we have to spend money on this protection side because you can't just cut it off. You certainly, if you're running a business, you can't. This is the core of your business these days, whether you're manufacturing something or providing a service or whatever it is, you're going to be reliant on technology. It's beyond just pulling the power, supply out. I think it's gone way beyond that. So it's a really difficult, difficult, difficult area. And I would just encourage every business leader to make sure they're investing in that security, doing your business continuity planning, all your exercises around that, all around being hacked. I think this can hardly be anything else that's of a bigger concern right now. Yeah, I have to totally agree. In fact, I think the world has to go the other way. I think we have to initiate the uninitiated in this digital economy and blow away the divide because there's too many people that don't feel a part of Davos right now that are out there in different parts of the world. And that's part of the problem what you see in Brexit and obviously the nationalistic movement in certain countries, including the United States. We have to get to people with massive online computer causes. We have, this year alone, trained 1.6 million people. We have to get to universities and align with young people. We have to get to high schools and grade schools. And we have to initiate young people in this new economy and also retrain people that are completely like blue collar workers like my dad that don't feel a part of this economy that want to feel like they got a chance. They can make it. And I think it's just the opposite of disconnecting. It's how do we connect them? How do we give them some tools and some skills where they can get back on and get a job and make a contribution and participate in the world we're in right now in this room. Yes, please. Hi, my name is Yuzhan Park. I'm founder of DQ Institute. It's like IQE community for our children's and employee. I have a question about the transparency. I heard enough about the security and how V2B business has to secure the inter-business security and data transaction. But there was a recent study from a web that more than 50% of end consumer do not understand how their data has been collected and used by the companies. And around up to 70% of end consumers feel uncomfortable about how their data has been used and they don't think they've been informed enough. So I think it's a transparency is a starting point of building trust between the companies and end users. And it has not been well-addressed by the social media companies as well as the digital companies. So I'd like to hear your enlightened view how the industry have to move forward to build a transparency and accountability to build a trust. And also I'd like to hear your view on how government has to be played a role in this process. There are quite a number of questions there. Let me focus on transparency and please relate to government. You mentioned transparency, particularly about consumer and consumers, V2B2B2B2 consumer, which is what the question was. And then I think you mentioned starting, why don't you start. Okay. I think the consumer owns their data, whether they're a patient and they've opted in because there's a self-interest of better service or something that they get out of the transaction, but it should always be their data. And when they opt in, they should have choice not to opt in if they don't want their data in any way, seen or used by anybody. They should have that choice. But most consumers will opt in because there's something in their self-interest in doing so. Healthcare is the best example I can give you where they would want to opt in. I don't think government should play a role in creating scenarios where there's backdoors into technology and there isn't that sovereign agreement with a person that your data is private. Now at a metadata level, are there things that can be gleaned from trends and data can really be helpful that people would sign up for? Yeah. I'll give you an example. In the state of Indiana, when soon to be Vice President Pence was the governor, basically the idea in infant mortality rates in Indiana, they weren't dropping nearly as quick in Indiana as they were other states. So there was this idea of how do we get the infant mortality rate to improve? So people were very willing to opt in. With limited and scarce resources, the idea was do we have the data and the visibility to understand where the problem is? And with technology, the scarce resources that government had could then be dedicated to single moms if there was alcohol or drugs or work issues or just simple, how do I get my child care? All those issues could be remediated with the technology but you had to opt in. And guess what? Infant mortality rates dropped down to the national average very, very quickly. So I think the idea is if you opt in, you know it's your free will that got you in and there's benefits in it, then I think it's a good thing. But I don't think it's a good thing if you don't have choice. And I don't think it's a good thing if there's any such idea of back doors where your data can in some way be surveyed without your approval. I think there's something, so I just wanted to pick up on the transparency thing. I think there is something that businesses can do in terms of reporting on this. If I just think very, the pertinent piece of legislation that's coming in in the UK in terms of what companies have to report, for instance is the gender pay gap, completely different topic, but they're gonna have to report it. Now that's gonna become all transparent to people. What it starts to drive is a different behavior. So if businesses in some way are asked or forced or perhaps start off volunteering to be transparent about the data and the way they're using it, I think it just starts to drive that trust element. Again, it's not necessarily a new thing because if I think about insurance, we were always using people's data and their individual facets and the peculiarities about them to determine what price we were gonna charge for their insurance. In those days though, they didn't necessarily get so concerned that we were using their personal data, but we were, we've been using it a lot. We were never really very transparent about, well if you've got this, or if your car's blue rather than red, we charge you more premium. We were never very transparent about it. So I think there's a lot to be learned for businesses in terms of opening up more and showing customers what we are using their data for and how it impacts them. I think there's more that we can do. Thank you, we actually run out of time. I won't even have time to really summarize it, but first thank you to this panel. This was absolutely fascinating. I think I've learned some, I hope everybody else did. I think we just quickly, we learned that digital is fundamentally changing B2B products. It is different from B2C, although ultimately it always is. The customer is still king, that old adage is even more true if that's possible. I think the whole issue of control of data is really changing the dynamics of the vendor. We talked about this quite a bit. And security, it really is important. It's more important than we are really talking enough about it and definitely doing enough about it when I think about what we've heard. We've also heard about the workforce, began to talk a bit about how the organization is really has to change. There's a lot more we could have talked about it. But it is, I think the bottom line, and thank you all for pointing out in different ways, the B2B, B2C as well, B2B businesses are really very different than they were five years ago, just to pick over even two years ago. As you said, when you start, you don't really know where it's gonna take you and you sure as hell, if you think you know where it's gonna be 10 years from now, you're absolutely wrong. There is no way you can know. So with that to be continued, but thank you very much and hope to see you again next year. Thank you. Thank you.