Accelerate transformation: Organizations must rethink engineering and R&D strategies

Opportunity Details

Accelerate transformation: Organizations must rethink engineering and R&D strategies

Capgemini

Jun 17, 2026

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To remain resilient in a changing world, leaders must double down on advanced technologies that address cost, innovation, climate, and supply chain pressures while boosting product and manufacturing data transparency.

Engineering and R&D leaders are facing mounting pressure to transform rapidly among global disruptions – and looking for answers. In fact, our survey found that two-thirds of executives believe their organizations are unprepared for geopolitical uncertainty, supply chain disruptions, and talent shortages.

So, what can future-forward companies do to stay ahead? In the race to adapt and build more resilient operations, organizations must utilize advanced technologies that promise to accelerate innovation and unlock value at scale.

From mitigation to adaptation: building opportunities in a new climate reality

The time to rethink operations and incorporate climate risks is now. Fortunately, organizations are increasingly realizing the importance of building resilience into their systems and processes – from diversifying supply chains and updating risk models to creating tailored crisis management plans, companies are ready to move away from simply mitigating risks to adapting to them. However, a large number of companies are still unprepared for what’s ahead. As revealed in Capgemini’s Engineering and R&D Pulse 2026 report, 62% of executives see supply chain constraints as an especially significant threat to their business, and only 32% are ready to respond to the challenge.

But with risks come major opportunities for the organizations that are ready to seize them. Key approaches will be investing in alternative, more sustainable materials, robust value chains and related ecosystems, product development that considers risks and potential disruptions early in the design and engineering phase, and installing smart and connected systems to track and optimize water and energy usage. Organizations can also build capabilities with scenario modeling, which will enable them to prepare for unforeseen events like natural disasters, raw material shortages (resulting in increased costs), or supply chain disruptions from the first stages of any new investment planned.

Rethinking R&D is key for organizations

Incorporating climate considerations into product design is an important lever. By redesigning products for adaptability, using recycled materials, sourcing from alternative geographies, and reducing reliance on scarce inputs, companies can lower the impact of risks on their operations and gain a competitive edge. Many organizations are already moving in this direction: our survey found that in 58% of organizations, sustainability is a key component of product design processes – up from 22% in 2022. But leaders need to remember the importance of scale: to truly harness the benefits of sustainable design, they must move beyond isolated pilots and embed sustainable practices across portfolios, decision-making, innovation, and operations.

Technology as a central driver for business transformation

Digital technologies are increasingly important in engineering and R&D – and AI is a major enabler. It can process large volumes of data, accelerate simulations, generate and validate design options, and support more precise decision-making. AI’s impact on engineering and R&D is only set to intensify over the next two to three years. In our survey, over 75% of executives said they expect an enhancement of 20-50% in outcomes – this includes speed to concept, time to market, productivity, product value, and cost reduction.

Digital twins can further strengthen this impact, by enabling companies to simulate and optimize products or systems before serial production and hence reduce time to market. In sectors such as automotive, they can help improve material use, design and technical performance, and reduce energy consumption and environmental impact across the lifecycle.

We’re also seeing bioengineering reshape sustainability by developing innovative and high-functioning molecules and materials. Meanwhile, advances are being made also in quantum technology that hold exciting promise for improving material discovery and complex system optimization. It can even work with digital twins to develop next-generation batteries or hydrogen systems.

However, these advanced technologies must operate within an increasingly stringent regulatory framework, with the pressure to provide transparency more intense than ever. Today, 43% of organizations conduct regular environmental impact assessments as part of their product design processes – almost double compared to 2022. However, they’re still facing major hurdles, including new regulations such as ESPR and the digital product passport, which require companies to disclose an increasing amount of data.

In this context, using traditional, manually calculated lifecycle assessments (LCAs) for environmental product declaration, reporting or integration in engineering processes is not sufficient any longer. LCAs are static and can only assess the current state of design, manufacturing, and supplier choice. A more flexible state-of-the art methodology is needed to reflect improvements, changes in the design and process, as well as enablement of integration into other systems (e.g. PLM).

That’s why we developed Product Lifecycle Intelligence (PLI). It helps companies react to today’s demands originating from regulation, business partners, and customers with the industrialization of LCAs through standardized methodologies, centralized data architecture, and AI-supported gathering and processing of heterogenous data needed for an LCA. Ultimately, it enables organizations to assess and share reliable product data, embed lifecycle insights into product design and procurement decisions, and identify the biggest risks and opportunities across the business.

Combining tech and sustainability for business wins

To remain resilient, organizations need to rethink engineering strategies around flexibility, AI adoption, workforce development, and broader partner ecosystems. By leaning into advanced technologies, they can improve cost, efficiency, and innovation capacity, and stay competitive in an increasingly demanding market while complying with increasingly stringent requirements for transparency.

To learn more about resilience in an evolving world, join us at London Climate Action Week for Capgemini’s Resilient Future Series – three evenings of curated sessions, discussions, and networking moments for senior leaders. Register here: Link

And read further insights about this topic in Capgemini’s Engineering and R&D Pulse 2026 report.

Authors

Dr. Dorothea Pohlmann

CTO Sustainability, Capgemini Engineering

As Chief Technology Officer Sustainability, Dorothea is responsible for advising clients on business and engineering transformation projects. Her focus is on the development of sustainable products, assessing their impact on business and planet, adapting circular economy, integration of innovation, and leveraging digital technologies (such as quantum, digital twins, AI and ML) to accelerate our clients’ transformation from ambition to action. She holds a Ph.D. in Physics and works for more than 15 years at Capgemini.

Sarah Dixon

Sustainability Lead, Northern and Central Europe

Sarah is the Sustainability Lead for Northern and Central Europe, and leads Capgemini Invent UK’s Sustainable Futures team, helping clients achieve their sustainability ambitions. Sarah has spent her career working in large Advisory, IT Services, and Transformation organizations and is passionate about delivering increased business value through sustainable transformation. She is also a member of the UK Net Zero Board, driving collective change for sustainability and decarbonization.

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