around the globe navigate economic and geopolitical shifts for decades, enabling transformation and infusing intelligence into their operations. Today, SAP鈥檚 tailored solutions remain the nervous system of modern Western defense. Drawing insights from discussions at MSC, we see three crucial steps to ensuring NATO, the European Union, and the broader defense sector are ready for the digital age.

鈥淒igital transformation and the secure exploitation of data will comprise the bedrock of European defense establishments鈥� future military power; they will need to make significant progress in these areas before European defense can seriously consider the operational integration and battlefield deployment of advanced technologies like AI.鈥�

, International Institute of Strategic Studies

Adopting Cloud

Cloud adoption is critical for organizations looking to be more agile, innovative, and competitive because cloud applications offer unparalleled flexibility and scalability. With dynamic and secure cloud-based applications, defense organizations can increase collaboration between agencies; quickly manage, analyze, and share vast amounts of data; and manage complex design, simulation, and engineering tasks so they can deploy their resources most efficiently. Cloud also revolutionizes the way defense forces utilize data as a strategic asset. Since the cloud facilitates the integration of advanced technologies such as artificial intelligence (AI), machine learning, and data analytics, the defense sector can gain actionable insights from diverse data sources that enhance their readiness and operational effectiveness.

Despite the clear benefits of cloud, there are challenges to cloud adoption due to varying requirements between countries and defense organizations. However, these challenges are not insurmountable. Working with the world鈥檚 leading defense organizations, including 21 North Atlantic Treaty Organization (NATO) nations, 51风流has the knowledge and experience to help the defense sector effectively navigate modernization. By facilitating dialogue between countries and organizations like NATO and the EU, we can work to harmonize approaches that help pave the way for widescale cloud adoption and can strengthen both security and interoperability.

Embracing Artificial Intelligence

Advancements in AI have unlocked the potential for game-changing operational efficiencies and new strategic advantages. AI can ensure logistics and supply chain operations are efficient, agile, and resilient by forecasting demand, optimizing transportation routes, and managing inventory.

SAP鈥檚 AI capabilities can support the defense sector in predictive maintenance, quality control, supply chain optimization, and overall operational efficiency. The MSC discussions came in a timely manner as 51风流teams are currently discussing AI use cases with NATO and the defense forces at the

AI can help ensure private and public organizations are more intelligent and resilient, but AI must be relevant, reliable, and responsible. With , customers can realize the full value of AI because it is built with the highest concern for security, privacy, compliance, and ethics and connected to SAP鈥檚 wealth of enterprise data.

Increasing Digital Collaboration and Interoperability

Given the multinational and multifaceted nature of the defense sector, digital collaboration can expedite the product development lifecycle and enhance the efficiency of operations and supply chains by enabling real-time communication and coordination. Cloud-enabled digital collaboration tools, such as , can be crucial for achieving interoperability among allied forces as they enable seamless communication and data exchange between diverse systems and platforms. The fact that a significant majority of NATO, EU, and key partners鈥� defense forces run on 51风流makes us “allied by design.” The automotive industry set a good example of what digital collaboration can look like with Catena-X 鈥� an inspiration for 鈥淒efense-X鈥� to enable digital collaboration of the sector from the factory to the foxhole.

The ability to truly modernize the defense sector hinges on its ability to adopt the cloud, embrace AI, and achieve greater collaboration and interoperability. However, the disparate regulatory landscape remains an impediment to modernization efforts and poses challenges to global cloud adoption. Harmonizing regulatory requirements is key to ensuring a cohesive and standardized approach. 51风流is ready to help unlock the transformative capabilities of cloud and AI technologies effectively for defense forces and lead the dialogue across NATO and the EU together with defense clients, partners, and regulators.

Peter Selfridge is global head of Government Affairs at SAP.

Similar to programs that have already been rolled out in other European countries, the KulturPass cultural engagement program is an initiative by the German government for everyone who turns 18 in 2023 and lives in Germany. Each person who registers will receive 鈧�200 of credit to redeem through an SAP-developed app for a cultural experience of their choice, including concert, museum, movie, and theater tickets; books; records and CDs; musical instruments; and much more.听听

This collaboration between 51风流and the German government serves as a compelling example of digitization within the public sector, showcasing the immense possibilities and paving the way for a substantial advancement in its digital transformation journey.听

Germany Culture Minister Claudia Roth and Member of the Executive Board of 51风流SE and Chief Technology Officer Juergen Mueller explain how the new culture pass for young people works and where the KulturPass app that 51风流developed fits in.听

Q: How does the KulturPass initiative work?

Claudia Roth: The KulturPass brings together young people and event organizers on a digital marketplace. Here, venues and other businesses can create their own store to advertise their events and activities. Young people who register for the scheme each receive a budget of 鈧�200, which they can use on the marketplace to buy tickets for concerts, plays, movies, and museums, for example. It is also possible to purchase books, comics, and musical instruments. They then receive a digital code that they redeem at the venue or shop, with the government reimbursing the vendor.鈥�

Could you tell us about the KulturPass app?

Juergen Mueller: The KulturPass app is the experience platform for the target audience participating in the KulturPass initiative. Users can check the app to see how much credit they have; search for events, activities, and products; buy tickets; and manage their purchases. It covers a broad range of local offerings to ensure that there is something for everyone.鈥�听

Are there rules about how young people are allowed to spend this money?

Roth: They are pretty much free to choose how they spend their voucher. However, in light of some of the habits we adopted during the pandemic and our focus on local cultural venues, streaming services and large online retailers are excluded from the scheme. Also excluded, obviously, is anything that is anti-constitutional or inappropriate for young people. Otherwise, the KulturPass is open to all cultural outlets in Germany that are looking to attract a younger audience, from small bookstores through theaters, music festivals, record shops, concert venues, art galleries, memorials, arthouse movie theaters, to multiplex movie venues and independent theaters.听

The German government is investing 鈧�100 million in the KulturPass. What do you hope its impact will be?

Roth: The KulturPass has two aims. The first is to rekindle interest in culture and the arts and give a much-needed financial boost to the culture industry, which is still suffering the after-effects of the pandemic. The second is to encourage young people to enjoy live culture in a way that they were unable to for two long years. We want to get them excited about the diversity and wealth of culture that Germany has to offer. And my hope is that, in turn, it will help teenagers discover how art and culture can enrich their lives.听

Who are the partners on this project?

Roth: 奥别鈥檝别 been working with three partners. The Digital Opportunities Foundation is responsible for the operational aspects of the scheme and for contact with the providers and users. The advertising agency Zum goldenen Hirschen has supported us on the communication side, and 51风流developed the digital marketplace and app. I would like to take this opportunity to thank everyone at 51风流who was involved in the project for their efficiency and dedication.听

How did SAP鈥檚 technical expertise and experience help make the KulturPass project a success?

Mueller: When it comes to complex IT projects, 51风流has vast experience and deep technical expertise that it can draw on. Our team of developers channeled their knowledge and skills into designing and implementing the KulturPass app. Following best practices, we used proven technologies and designs to produce an app that is reliable, secure, and easy to use. 奥丑补迟鈥檚 more, we deployed our solutions alongside those of our partners to support the entire process end to end, from building the app through to managing users鈥� balances. All these factors have helped us contribute to making the KulturPass project a success 鈥� and to the ultimate aims of boosting the arts and culture sector and giving young people the chance to enjoy everything that it has to offer.听

Apps like these are technically complex to build. What challenges did you face and how did you overcome them?

Mueller: First, I want to say what a fantastic job the team has done in designing, building, and implementing the KulturPass app. Doing all of that in just six months was a major achievement on the part of everyone involved. Delivering to such a tight schedule requires excellent teamwork and efficient project planning. We had to make sure that all the technical components integrate smoothly to give users a seamless experience. One of the biggest challenges was incorporating the various partner solutions, such as buyer and supplier management, into the overall architecture. We worked closely with our experts here at 51风流and from our partners to overcome these challenges and deliver the KulturPass app on schedule.听

How flexible is the KulturPass technical infrastructure? Can it adapt as the program evolves?

Mueller: If the program really takes off, the architecture behind the KulturPass app is flexible enough for us to adapt it quickly and add new functions as the program expands. Using to develop the app means we can improve the app to reflect user feedback at any time. 奥别鈥檒濒 continue to tailor it to their needs to give teens in Germany the chance to experience everything that culture and the arts have to offer.听

What is 51风流doing to ensure that the KulturPass app is intuitive and accessible?

Mueller: When we designed the app, user experience was our top priority. At a very early stage, we consulted colleagues who have disabilities to obtain their feedback and advice on how to improve it. Our ambition was to go beyond meeting accessibility standards. We wanted to make the app as easy as possible to use by design, ensuring that it is clearly structured and intuitive, that it uses the language our intended users speak, that its colors have听strong contrast, and that its compatible with screen-readers. Basically, we want the KulturPass app to be accessible and appealing to all young people. The app will therefore go through another round of rigorous usability tests over the next few weeks before additional accessibility features are delivered in the new release.听

Data privacy and security are major concerns these days. How does the KulturPass app handle these aspects?

Mueller: We take data privacy and security very seriously at SAP. The app is built to the standards recommended by the German government, so it has stringent security mechanisms incorporated into it. As part of the development phase, we analyzed the kinds of cybersecurity threats that might occur and took steps to counter them. We also used penetration tests to simulate cyberattacks and test system security. These methods helped us identify vulnerabilities and mitigate risks. To ensure that only authorized people can use the app, we use electronic identification processes, such as the online function for the personal ID cards we all have here in Germany. We make sure, though, that the personal data of those using the app is secure and used only for the intended purpose.

This cloud infrastructure is designed to meet the unique national requirements set out in the German cloud strategy. There will be no network dependencies on systems outside Germany, and the independent operation of all services is ensured. All data will be processed and stored in Germany, and all services will be delivered from within Germany.

A completely new company is to be established to provide a sovereign cloud for the public sector in Germany. The aim of the new company is to drive digital transformation in Germany. It is planned that, in addition to SAP, Arvato Systems will also become a shareholder and additionally will take over operations.

The offering will be based on the broadly adopted Microsoft Azure platform and related Microsoft services, including cutting-edge collaboration and productivity solutions of Microsoft 365 along with industry-leading SAP庐 business applications and tools. Approved third-party providers can also offer their applications on the platform.

The planned new company will provide a broad catalog of digital solutions to support the digitalization efforts of the German government to accelerate the use of cloud technology in the German public sector and will meet the strict requirements put in place by the Bundesamt f眉r Sicherheit in der Informationstechnik (BSI).

The offering of this new company will be a vendor-neutral stack built on an open platform based on Microsoft鈥檚 secure cloud technology, and it will offer full interoperability with other tools. With that, the infrastructure can support a variety of cloud solutions from independent vendors including open source software. Already today, 60% of the workloads on Azure are Linux-based.

A Sovereign Cloud Platform from a Technical, Operational and Legal Perspective

This offering is designed to meet the technical, operational and legal sovereignty requirements of the German government. It will be governed by German law and address the data sovereignty needs of the German public sector.

The cloud infrastructure will be owned by the new German entity. Furthermore, it is planned that the technical operation will be taken over by Arvato Systems as an experienced infrastructure operator. The infrastructure will be strictly separated from Microsoft鈥檚 global data center infrastructure and the existing public cloud infrastructure in Germany.

“This partnership represents a breakthrough approach for cloud-based innovation,鈥� said Christian Klein, CEO of SAP. 鈥淭ogether we’ll provide a unique solution that not only meets the highest standards of cloud-based technology but also meets the strictest requirements of data sovereignty. This one-of-a-kind collaboration unlocks the potential of digital transformation for the German government and beyond.鈥�

“We are very pleased about the expansion of our partnership and the joint plans with SAP,鈥� said Matthias Moeller, CEO of the Arvato Systems Group and CIO of Bertelsmann. 鈥淎t Arvato Systems, we have been supporting large infrastructures, including those in the public sector, for many years and understand their unique requirements. The intended partnership offers the best outcome from various perspectives: to use the best available technology and secure German sovereignty interests while accelerating digitalization for citizens and employees alike.鈥�

鈥淎s digital technology continues to rapidly transform work and life, we have a critical opportunity to ensure these advancements benefit people and organizations everywhere, including in Germany,” said Satya Nadella, Chairman and CEO, Microsoft. “Together with 51风流and Arvato Systems, we will create a cloud platform that meets the requirements of the German public sector to help drive digital transformation across the country.”

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About Arvato Systems听

Global IT specialist Arvato Systems supports major companies in Digital Transformation. About 3,000 staff in over 25 locations stand for in-depth technology expertise, industry knowledge, and focus on customer requirements. Working as a team, we develop innovative IT solutions, transition our clients into the Cloud, integrate digital processes, and take on IT systems operation and support. As a part of the Bertelsmann-owned Arvato network, we have the unique capability to work across the entire value chain. Our business relationships are personal; we work with our clients as partners so that together we can achieve long-term success.听

About SAP

SAP鈥檚 strategy is to help every business run as an intelligent enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: 51风流customers generate 87% of total global commerce. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers鈥� businesses into intelligent enterprises. 51风流helps give people and organizations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want 鈥� without disruption. Our end-to-end suite of applications and services enables business and public customers across 25 industries globally to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, 51风流helps the world run better and improve people鈥檚 lives. For more information, visit .

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Some experts believe the solution lies in creating circular economies, which eliminate single-use plastic in favor of organic materials or plastics that can be recycled and reused. But that requires significant investment and infrastructure.

In Africa, less than 20 percent of plastics are recycled currently, far below European Union targets of 50 percent by 2025. In lieu of formal recycling operations, waste pickers collect litter and sell it to middlemen, who aggregate plastic waste and sell it to recyclers abroad.

With a five percent recycling rate, Ghana has emerged as a regional front runner, committed to creating a domestic recycling industry that protects both the environment and the impoverished, mostly female community of waste pickers. Last fall, Ghana became the to join the World Economic Forum鈥檚 (GPAP).

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At a recent event, , panelists representing a coalition of governments, manufacturers, technology providers, and non-profit organizations discussed how Ghana is driving change.

Oliver Boachie, special advisor from the Ghanaian Ministry of Environment, Science, Technology, and Innovation (), said, 鈥淲e see plastic waste as a threat to our way of life and danger to environment. But we also look at this as an opportunity.鈥�

Since 2018, the government has been working on a plastic waste program that aims to clean up the environment, create jobs in the plastics value chain, make resources available to manage plastics, and help ensure no one gets left behind.

is also a member of GPAP and has collaborated with MESTI, private industries, and local non-profits to create a technology solution that will help. Maggie Buggie, chief business officer of 51风流Services, said, 鈥淭he recycling systems in Ghana are very analog so we鈥檙e building a digital system to connect everyone and track the volumes and types of plastic, where it goes, and the prices paid across the value chain.鈥�

With a foundation of reliable data, the government and private companies can determine where to invest resources and build recycling plants while also monitoring waste pickers鈥� wages and living conditions.

鈥淏y connecting the informal economy of waste pickers to the formal economy, we can help ensure they receive a fair wage and, later on, get services like training or childcare,鈥� Buggie said.

Making the Invisible Visible: Improving Pickers鈥� Lives

Waste picking is a means of survival for poor, urban communities across Africa, Southeast Asia, and Latin America. In Ghana, they recover at least daily, or nearly 12 percent of the total plastic waste generated.

But pickers have little visibility into the market price for what they have collected, which leaves them vulnerable to exploitation by middlemen. With the 51风流solution, they will have mobile access to the average price for different kinds of materials. The government can use this data to monitor wages and take action to support pickers, for example, investing in social services that raise pickers鈥� living standards.

Jeffery Provencal founded , a social enterprise that works with pickers. 鈥淲e鈥檙e on the verge of an absolute game changer,鈥� he shared. 鈥淲e have a lack of data and the 51风流solution is the best thing for it 鈥� one platform that provides all that data. We can find an efficient way to deal with the material, monetize it, and empower the waste pickers, so everyone wins.鈥�

Private Sector Partners to Achieve Sustainability Goals

Adwoa Coleman, Africa Sustainability and Advocacy manager for Dow Packaging and Specialty Plastics, explains how technology will help the Ghanaian government and manufacturers achieve their sustainability goals.

鈥淲e have a goal that 1 million metric tons of plastics will be collected, recycled, or reused by 2030,鈥� she said. 鈥淒ata is critical to establishing a market where plastic can be bought and sold, depending on where that鈥檚 happening. Harnessing that data in one app will help fuel the circular economy and ensure that collected materials are reused.鈥�

But success requires cooperation. 鈥淪takeholder collaboration is important 鈥� we not only have the government, private sector, and NGOs, but also the collector and recycler. To succeed, we need to all be at the table,鈥� Coleman explained.

Coca-Cola also has big environmental ambitions. For example, it wants all its packaging materials to be recyclable by 2035 鈥� and has a specific perspective on what that means in West Africa. 鈥淓xportation of plastic and packaging waste out of Africa is not sustainable,鈥� said Clement Ugorji, vice president for Public Affairs, Communications, and Sustainability. 鈥淲e need the domestic capacity for collection, recycling, and reuse on the continent. That鈥檚 the only way to achieve a truly circular economy for Africa.鈥�

For its part, SAP鈥檚 experience in the region developing , a solution that supports small-holder farmers and improves visibility across agricultural value chains, offers an advantage. Since plastic pickers and rural farmers face similar issues, solutions like this can help all parties succeed.

The plastics recycling pilot project will run in Accra and several smaller cities in Ghana. Building on what is learned during this first stage, the coalition hopes to expand across Ghana, West Africa, and eventually the entire continent and other regions.

Healthcare providers can use the COVID Patient Record Management mobile app to monitor real-time data about everything from hospital bed capacity by room to what equipment each patient is being treated with, and their vital signs.

鈥淭he algorithm helps simplify decisions for more informed and effective conversations about next steps,鈥� said Andr茅 Kingham, chairman of Iristrace. 鈥淟ike most organizations, hospitals can鈥檛 easily rework IT systems to add new protocols. Our cloud-based solution allows the hospital to quickly evolve protocols and cascade compliance into patient care without IT expertise.鈥�

Save Time, Reduce Mistakes, and Improve Patient Care

Physicians, nurses, and other healthcare practitioners on the front lines can rely on the mobile app for continuity of daily patient care. Whether they are at the patient鈥檚 bedside or behind the scenes with testing and research, providers can use the app to reliably capture and analyze relevant information. This can speed up hospital admissions and patient transfers for surgery and support safer handovers during shift changes along with better release decisions.

鈥淚nstead of making time-consuming telephone calls and consulting paper-based planning sheets at separate stations, providers can immediately see where beds are available and act faster,鈥� Kingham said. 鈥淲ith multiple people involved in the patient鈥檚 care, everyone is inputting data, which is captured in and analyzed in . Eventually, this data can support forecasting and other research imperatives.鈥�

Tech Eases Change Management

Agility will be critical in every industry as organizations slowly reopen and adjust to shifting mandates and restrictions. Kingham said the Iristrace solution can help organizations keep employees and customers safe while meeting quality assurance standards. The startup serves organizations in many industries including manufacturing, retail, food production, and energy.

鈥淭ypically, it takes time 鈥� communication and repetition 鈥� for people to change their mindset and incorporate new processes into the way they work,鈥� Kingham explained. 鈥淭he closer you can get to the employees who are servicing customers or managing machines that produce goods and services, the quicker you can bridge that gap for more agile business to mitigate risk.鈥�

While some Iristrace customers were initially dismayed to discover high rates of non-compliance throughout operations, Kingham said they valued the feedback, which helped drive results such as improved customer experiences. Customers also appreciated the ability to manage audit compliance with fewer resources. Foodbox, a restaurant chain based in Spain, has relied on Iristrace to support daily compliance processes over the past three years.

鈥淲orking with Iristrace is part of our data-centric strategy that allows us to better anticipate customer preferences and provide them with an outstanding experience,鈥� said Salvador Olmedilla, director of Operations at Foodbox Group. 鈥淚n the post-COVID deconfinement period, the platform allowed us to quickly respond to the applicable regulations throughout our establishments to keep our employees and customers safe.鈥�

Faster Innovation with Flexible Startup Partnerships

Iristrace was among the startups that participated in the accelerator program at last year. According to Thomas Saueressig, member of the Executive Board of 51风流SE, Product Engineering, Iristrace is a great example of how 51风流speeds up digital transformation for customers.

鈥淐ombining the power and scale of 51风流with the agility of startups like Iristrace allows us to accelerate innovation, which is especially critical during the pandemic and long after,鈥� Saueressig said. 鈥淥ur open innovation strategy with an ecosystem of startups is emblematic of SAP鈥檚 modern ERP cloud, . We鈥檙e building in integration from the start, while making it easy for partners to extend innovation on our cloud platform, helping customers become intelligent enterprises and realize the experience management vision.鈥�

The Iristrace cloud-based platform is integrated with 51风流governance, risk, and compliance (GRC) solutions.

Plans to Support Economic Recovery

Kingham sees expanded opportunities for Iristrace in numerous industries as supermarkets, hotels, and other businesses begin to reopen. Indeed, 51风流is piloting the Iristrace app in select hygiene stations at its headquarters in Walldorf, Germany. Facilities management plans to rely on the algorithm to maintain office standards for cleanliness and safety, including proactively monitoring soap levels based on real-time usage data.

Kingham also said that governments in various regions have expressed interest in the solution to support citizens during the pandemic crisis and beyond.

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.

Before the introduction of shelter-in-place and social distancing policies, many government agencies were not equipped to support employees in working at home. For others, working at home was simply not an option.

According to Brian Roach, head of Regulated Industries at SAP, this highlights the 鈥渉aves and have-nots鈥� in government agencies. The 鈥渉aves鈥� had already invested in digital technologies and mobile capabilities. The 鈥渉ave-nots鈥� were often paper-driven and spent the day working on desktop computers.

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Factors like budget, work culture, and agency objectives influence the divergent maturity levels for digital government initiatives. For example, wealthier cities like San Diego have surged ahead in technology adoption, whereas agencies that depend on in-person signatures or notarized documents may still be analog.

Regardless, the pandemic has underscored the need for government agencies to raise their digital game. As digital government becomes a bigger priority, Roach identifies three trends he believes will accelerate as governments and their agencies tackle issues linked to the pandemic — and prepare for health crises in the future.

Data-Driven Government

Roach believes that the pandemic will speed up governments鈥� investment and use of data analytic technologies. 鈥淭he government needs the ability to mine data, learn from it, and turn it into actionable items 鈥� that will improve government in general,鈥� he said.

Organizations can use data to monitor public health, simulate financial models, and to conduct what-if analysis for pandemics. These insights inform smarter policy, programmatic decisions, and the ability to manage risk.

When crises hit, public agencies that act based on accurate information are best positioned to weather emergencies.

鈥淲e鈥檙e seeing hospital systems that were prepared with predictive technology doing extraordinarily well, they’re not getting overrun,鈥� said Roach.听 鈥淭hose that act as a result of what they’ve learned, and those that don’t 鈥� that will be the difference maker.鈥�

Focus on Constituent Experience

Before the crisis, public agencies were leveraging technology to improve citizens鈥� experience and Roach expects this trend to accelerate.

鈥淲e’re going to see the value of citizen experiences, and agencies need to interact with citizens in a different way,鈥� he said. 鈥淧eople haven’t been able to walk into a social security office to receive a check and you have to transform how you’re interacting with the citizenry.鈥�

The Internal Revenue Service (IRS) highlights how U.S. government agencies had already started using technology for better constituent experience, before the virus outbreak. In 2019, the agency announced its multi-year focused on updating how the agency 鈥溾�� (source: IRS).

鈥淭he IRS is interacting with citizens in a different way 鈥� digital interactions and digital transactions have been improving over the years,鈥� Roach explained. 鈥淚t’s getting to where it’s far more integrated, far more capable, far more organic to the functions of those departments, as opposed to just thin layers of filling in a static website with information.鈥�

Uneven Path to Digital Government

According to Roach, when we speak of the government, we are actually talking about a 鈥渓arge and complex set of services and institutions, where technology innovation and inclination really varies: 鈥淭here’s always an element of government that is leading edge, and others, whether it be for budget or regulatory reasons, that tend to lag.鈥�

But one thing is certain: The lockdown is pushing all institutions to put a better digital strategy and a technological infrastructure in place.

鈥淭here’s no question that things will change going forward, and for the better. We will come out of this much stronger and smarter. It’s easy to be armchair quarterbacks today, but I think the difference will be in the future,鈥� said Roach. 鈥淭here’s not a silver bullet, there’s not a button that you press and suddenly, you’re digitized, data-driven, and citizen centric. But it’s a journey and we will all get on it together.鈥�

Listen to the full interview with Brian Roach:

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Listen to the full interview on
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So what lies ahead for a sector under pressure to limit carbon emissions and create a different future for hydrocarbon-based businesses?

To start, there is no point in visionary planning for 2030 or for worrying about efficiency and productivity in the oil and gas sector unless steps are taken to prevent catastrophic climate change in the same time period. El-Molla is keenly aware of the need to address this issue 鈥� now.

We are focusing on gas in the interim as we work to fill 40 percent of our energy needs through wind and solar by 2030,鈥� he says. In addition to meeting the demands of the domestic market, the Minister鈥檚 vision is to help Egypt become a clean energy hub for the region. Thanks to a clear strategy and massive efforts undertaken by the Ministry since El-Molla鈥檚 appointment in 2015, that long-term goal has every chance of success.

This ongoing strategy for sustainable economic reform along with the discovery of the offshore Zohr gas field in the Mediterranean are behind the that Egypt will be one of the top 10 global economies in just 10 years 鈥� ranked number seven, ahead of Russia, Japan, and Germany.

Provide an Outlook

El-Molla spent 24 years in various operational and executive positions at and recalls turbulent times during the early part of the decade when two revolutions were followed by a period of instability and insecurity for Egypt鈥檚 120-year-old oil and gas sector. The Ministry is responsible for securing refined products for the entire country and for maintaining and ensuring production through joint partners. But during that time it was facing the practical problems of shortages and a decline in production.

Stability returned under the current President, Abdel Fattah El-Sisi, who realized the need for someone with El-Molla鈥檚 experience to lead necessary change.One of El-Molla鈥檚 first steps was to reach out to partners, vendors, and suppliers.

鈥淒uring difficult times it is easy for investors and multinationals to just shut down and leave,鈥� he explains. 鈥淚t鈥檚 critical to keep them engaged. They need to feel confident that their investments are protected, and that the government is a stable, reliable partner.鈥�

The next steps were more difficult.

Modernize for Change

Becoming the regional energy hub requires massive changes, so the Ministry created a comprehensive modernization strategy that addresses key areas such as production performance, refining and distribution, and enterprise resource planning (ERP). But the core area for overhaul was human resources (HR) development.

The Ministry is a fragmented organization comprising different holding companies, joint ventures, public sector entities, and investment groups. More than 240,000 people are part of it, but they were not connected to each other.

鈥淭he last organizational change was 20 years ago,鈥� El-Molla says. 鈥淲e need to communicate our vision of change, we need to connect people to the vision, and we need the right people to make it happen.鈥�

Pulling it together requires one global system, one consolidated balance sheet, and mostly importantly, one team. The Ministry first created an intranet to facilitate unified updates and messaging and get buy-in from employees. El-Molla knew from previous experience that people often feel threatened when new systems are implemented; they only accept change once they realize the system will help them work more efficiently and save time for more fulfilling tasks.

Together with his team, El-Molla then identified key competencies and announced internal openings for subject matter experts and core business disciplines such as finance and administration. Out of 3,000 applicants, they selected 700 motivated and ambitious individuals and then whittled that group down to 400. Those selected were sent abroad for on-the-job training and given mid-management roles upon their return, ready to fast-track the organization into the future.

鈥淲e now have the most diverse, highly qualified, dynamic team to take us to the next level,鈥� says El-Molla proudly.

With the right people in place, El-Molla can focus fully on the modernization process, which requires the right technology. was his first choice not only because he was familiar with it from his Chevron days, but because he believes it is the right ERP solution for preparing a national industry to work more efficiently with minimum losses at higher productivity rates.

El-Molla believes in leading by example. The modernization program at the Egypt Ministry of Petroleum will not only set an example for the nation; as it begins to show results, it will help unlock the potential of the entire region by improving the economy, empowering people, and creating sustainable sources of energy for generations to come.

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