innovation and economy

Lemoine Report - The New Grammar of Success: The Digital Transformation of the French Economy


Last January, a government mission on the digital transformation of the economy and public power was entrusted to Philippe Lemoine. (1)The meeting was chaired by the President of the Forum d'Action Modernités and President of the Fondation Internet Nouvelle Génération, by the Ministers of Bercy and the Minister of Decentralization and the Civil Service.

At the end of 9 months of work, having mobilized more than 500 people, the report of the Lemoine mission was officially handed over today, Friday, November 7, 2014, to Marylise Lebranchu, Thierry Mandon and Axelle Lemaire at a public presentation at Bercy. 

In his report, Philippe Lemoine demonstrates the reality of the digital transformation, makes proposals and makes recommendations to ensure that France, its citizens, administrations and businesses seize the opportunities that the digital transformation brings. The report, which is resolutely optimistic, shows that, contrary to popular belief, France is not lagging behind on the digital issue and has a number of assets to put forward to ensure that the ongoing transformation is at the service of growth and employment. We have everything to gain from this.

The digital transformation has ushered the economy into a new era.

The digital issue is at the heart of debates and economic and societal news. But when we talk about digital and transformation, what exactly are we referring to?

Digital is first of all tools that we now use daily and that we can no longer do without, smartphone, website, etc.. If we are talking about digital today it is because it is the people who race ahead and set the tempo. But for companies and administrations, digital transformation also means integrating these technologies into organizations. This is what creates a range of structural transformations that make business models evolve, making it possible to offer new services, to create or respond to the aspirations of customers or users.

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The technology of geolocation has been around for several years; it was the invention of a use for mobility that gave birth to Uber. Connecting people and creating communities is not new, but AirBnB has imagined putting them at the service of a new hosting offer. Hitchhiking passengers is certainly not new, but it was BlaBlaCar that generalised carpooling. Three examples of new players, non-existent 5 or 10 years ago, who have been able to put new technologies at the service of the creation and development of new economic models.

Awareness of the reality of the digital transformation and its effects

The timing of this report is pivotal. It is true that digital technology has been omnipresent in the debates for several years. But the questioning of its effects is gaining momentum. The effects of digital technology are now being perceived, if not analysed: automation and its effects on the productivity of production factors; dematerialisation with the fall in production and transaction costs and the emergence of new distribution and communication channels; and, even more novel, disintermediation and reintermediation (role of new players, place of data in new models). These phenomena have concrete effects on organizations; one study showed that organizations that have seized the opportunities offered by the digital transformation had a higher profitability of 26 %.

The idea of entrusting a mission on the digital transformation of the economy reveals the government's awareness of the need to support the integration of digital technology in our economy. Yesterday, having taken the digital turn for an organization was to have a website; today, the effect of digital is perceived as being much broader, impacting all sectors and areas of activity even those that were thought to be far removed from the subject. A player as emblematic of the hotel industry as the Accor group, a field that is not very virtual, is now competing with websites that capture part of its value.

The time had therefore come to consider the new models that make the economy work, the levers to be mobilised in the service of growth and employment. This is the meaning of the mission entrusted by the government to Philippe Lemoine.

An optimistic and proactive report calling for a "new grammar of success".

The Lemoine report is an action plan for France, through its companies and administrations, to seize the opportunities offered by digital technology.
The Lemoine mission involved a very broad consultation with actors coming from diverse and complementary backgrounds, who are not used to exchanging. This has enabled innovative and immediately transposable proposals to emerge.

The Lemoine report makes a statement that is far removed from the prevailing pessimism and is very proactive in its proposals. It does not, however, show any naivety: yes, digital technology has consequences for the organisation of work; yes, the Internet is sometimes a formidable weapon that threatens freedoms and ruins confidence; but it is also a formidable accelerator and transformer of economic models. The digital revolution is also an opportunity for a new growth model.

For Philippe Lemoine, the work carried out shows that the digital transformation brings more opportunities for France than risks. Indeed, we have the necessary weapons to seize it: not only are the French not lagging behind, but we are also ahead of our European neighbours in terms of digital use. We have the means to take advantage of the digital transformation, to make our companies champions, provided we take the necessary measures. And these measures are not regulatory and legislative texts responding solely to production demands. They must be the result of the mobilization of all the players, with the State having to play its role as strategist by proposing an ambitious and proactive vision in this area.

For France, the digital transformation is therefore an opportunity to be seized because it requires us to combine the principle of reality with the principle of utopia and daring by bending, together, to this new grammar of success.

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A report that must be read in order to be able to feed thehe major national digital consultation opened by CNNum until January 2015.

For what actions?

9 emblematic projects sectorial sectors defined by the players themselves, illustrating what the digital transformation can bring in terms of new services and innovative business models. A choice guided at the same time by their embodiment of the various effects of the digital transformation, their overwhelming character for the economy and for the collective imagination, and the need to use a digital grammar to manage their complexity.
53 cross-cutting measures to accelerate the digital transformation and unleash a significant potential for innovation in the French economy;
118 recommendations that can feed into a three-year digital agenda for France for un sustainable digital transformation: a portfolio of 118 recommendations that are intended to feed into a three-year digital agenda for France. It is made up of 85 sector-based proposals, selected for their consistency with the effects of the digital transformation and their potential impact on the performance of the sectors, and 33 cross-cutting projects, to be implemented in order to make digital technology a sustainable lever for the transformation of the French economy.

Focus on the 9 emblematic projects :

a network of territorial innovation in local services for citizens
Objective: innovative third party locations for access to local services
Response to the effect: dematerialization / new communication and distribution channels
Generic strategy: giving new value to physical and human networks by backing them up with digital technology;

a connected automobile that meets new expectations in terms of mobility and prototyped in fablab  :
Objective: Relocate value and employment by launching a car for the connected generation, designed by several people and prototyped in FabLab.
Response to the effect: dematerialization / lower marginal costs productive
Generic strategy: incorporate collective intelligence into the product to counteract commoditization;

secure anonymous payment thanks to the blockchains:
Objective: Deploy a secure and low-cost anonymous payment solution based on blockchain technology
Response to the effect: dematerialization / lower transaction costs 
Generic strategy: to strengthen a business by cutting off the data route for new entrants;

the bookstore of the future, first application of the reinvention of trade : 
Objective: to enable the creation of the bookshop of the future and contribute to the reinvention of commerce
Response to Effect: Automation / Capital Productivity
Generic strategy: make the difference through human service, relying on digital technology to be competitive on logistics performance;

the tailor-made universal mobility pass to allow each individual, whatever his or her mobility situation, to move seamlessly:
Objective: To allow each individual, in all circumstances, to travel with a unique mobility pass.
Response to effect: disintermediation / reintermediation / new role played by people
Generic strategy: using information from all to improve everyone's experience ;

an open innovation ecosystem for chronic diseases to improve patient follow-up and predictive medicine: 
Objective: To create an open innovation ecosystem for chronic disease, aimed at improving patient monitoring and predictive medicine. 
Response to effect: disintermediation / reintermediation / new assets from the data
Generic strategy: exploiting big data around a targeted objective, using connected objects to reinforce the relevance of large administrative databases ;

employment assistance applications using data from Pôle emploi and its partners / Emploi Store :
Objective: To enable developers to create employment aid applications using data made available by Pôle Emploi and its partners.
Response to Effect: Automation / Labour Productivity
Generic strategy: combining small entities entirely dedicated to personalised services, job seekers or employers with large institutions in charge of collective employment and labour issues;

a mobility platform to promote mobility between the three public services:
Objective: Valuing open positions and the skills required to promote mobility between the three public services 
Response to Effect: Automation / Labour Productivity
Generic strategy: to develop both interest in work and the externalization of productivity gains by facilitating professional mobility;

a French green button. in order to improve the control of consumption, fight against fuel poverty and offer new energy management products and services:
Objective: To improve the control of consumption, fight against fuel poverty and offer new energy management products and services.
Response to the effect: automation / energy and raw material productivity
Generic strategy: coupling energy transition and digital transformation.

All in all, the digital transformation presents France with more opportunities than risks. It is essential to think big and see clearly if we want to take advantage of the buzzing energy of such devices. Otherwise, the risk is that it will be the giants of intermediation that will pull the chestnuts out of the fire: they have the culture, the skills and the financial means to do so, and they also enjoy a high coefficient of admiration among the population. This undoubtedly explains why Google enjoys much higher market shares in France than in the United States: 93 % of the internet search market, compared to 68 % in North America.

It's time for the big French bands to turn the page on the disappointments and humiliations that some may have experienced by wiping gadins during the internet bubble. That was 10 years ago and the context is no longer the same. We have to start again with strong, original and mobilizing projects. (Source: Philippe Lemoine Report - November 7, 2014) 

The full report is available for download here

(1) Philippe Lemoine is Chairman and Chief Executive Officer of LaSer, Chairman of the Forum d'Action Modernités and Chairman of the Fondation Internet Nouvelle Génération. As a committed entrepreneur, he combines reflection and involvement in major social debates with his activities as a business leader. He began his career as a researcher in computer science and social sciences. He is the author of La Nouvelle Origine (Nouveaux Débats Publics, 2007).





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