Capgemini supporting Cathay Pacific and BSH with digital transformations

18 August 2017 Consultancy.uk

Capgemini has in recent months won two large digital transformation projects. The management and technology consulting firm is helping Cathay Pacific Airways with a major upgrade of its finance and procurement functions, and the company is supporting home appliances manufacturer BSH Hausgeräte with a global overhaul of its IT architecture. 

Finance & Procurement transformation at Cathay Pacific Airways

With a fleet size of over 140, and a flight network spanning 190 countries, Cathay Pacific Airways is one of Asia’s larger airline companies. Facing stiff competition, the Hong Kong based company is continuously seeking ways to optimise operations, while growing client service avenues. Against the backdrop, Cathay Pacific Airways last year launched a large strategic programme with the aim of improving its finance and procurement operations. Titled ‘Horizon8’, the programme will according to Raymond Fung, who leads the initiative, following go-live create several valuable benefits for the airline, including more transparency in spend, improved route profitability insight and faster plus more accurate financial reporting.

To facilitate the improved finance and procurement operations, Cathay Pacific Airways decided to implement SAP S/4HANA. The solution will cover end-to-end procurement and financial transactions, while also serving the airline’s needs on planning and budgeting, financial consolidation, profitability analysis, and business intelligence and reporting. A key factor in the decision for SAP S/4HANA was the system’s in-memory computing functionality, which allows Cathay Pacific’s users to gain instant access to detailed, real-time information.

Over recent months a team of over 100 professionals have been working on the setup, data migration and implementation of the new business processes. The programme is supported by Capgemini, which has provided a team of airline experts and SAP functional and technical consultants. Commenting on the partnership with the airline, Sumit Nurpuri, Capgemini’s Chief Operating Officer in South-East Asia said, “This transformational project at Cathay Pacific Airways is a testament to Capgemini’s significant aviation and SAP software experience across the world. We are delighted that the programme will (once live) enable one of the world’s top airlines to benefit from cost efficiencies and new digital capabilities in the years to come.”

Capgemini is supporting Cathay Pacific with a Finance & Procurement transformation

The programme is according to both parties on track to go-live next month, covering 3,000 of Cathay Pacific’s users across 30 countries.

Last year, in similar technology-led projects in the aviation industry, Transavia, the low-cost carrier of Air France/KLM, hired Capgemini to support a NetSuite OneWorld implementation. Rival firm Cognizant were meanwhile recruited by Etihad Airways to improve the carriers’ digital guest experience, while Air Mauritius turned to IBM and KPMG to oversee the revamp of its technology operations.

IT architecture overhaul at BSH Hausgeräte

With more than 58,000 employees operating in around 50 countries globally, BSH provides a wide range of home appliances under fourteen well-known brands such as Bosch, Gaggenau, Neff and Siemens to customers worldwide. In a bid to improve the order experience for its B2B customers, BSH turned to Capgemini.

Capgemini is collaborating with BSH to enhance the company’s IT architecture, maintenance and development services. The project will help BSH to achieve its digital transformation vision by improving its worldwide B2B commerce portal, as well as increasing BSH’s retail efficiency and agility. Working closely with the client, Capgemini’s team carried out a review, rebuild and rerun of BSH’s B2B order management solution using SAPUI5, a user interface (UI) development toolkit for HTML5 that simplifies the task of building and deployment on multiple devices. The project was delivered with Agile methodology and collaborative sessions between the business, IT and design teams were held at Capgemini’s Applied Innovation Exchange in Munich, a space that is set up to accelerate the deployment of innovative products and services.

Capgemini brings to the table deep architecture know-how

The upgraded order management solution has, according to BSH, a simplified IT architecture, is responsive to multiple mobile devices, and enables retailers to offer a better customer experience to consumers on the shop floor. It also makes use of analytics platforms, including Adobe Analytics, to provide the company with more valuable insights about customers.

The solution was first rolled out in the Netherlands in November 2016, and is following a global roll-out set to reach 20 markets in total by the end of this year. Commenting on the transition, Joachim Johannes Reichel, CIO of BSH, said: “Renewing our order management solution was a project we saw essential to further strengthen relationships with our B2B customers. We have already witnessed an improved customer experience while gaining more actionable data-driven insights from the roll-outs, too. The project is a lighthouse regarding what can be achieved when multiple IT, business and design teams work together.”

Remarking on the partnership with Capgemini, he stated, “Capgemini brings to the table deep architecture know-how, UI/UX design competency and a profound business understanding in a highly collaborative approach – a key success factor for this project.”

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Four ways digitalisation is transforming car brands and dealers

16 April 2019 Consultancy.uk

From changing expectations from the customer to new stakeholders entering the industry, the digital transformation of global automotive industry means it is facing the wholesale transformation of its business model. In a new white paper, global consulting partnership Cordence Worldwide has highlighted four major digital trends that are transforming the relationships between car brands and dealers with consumers.

With digital transformation drives booming across the industrial spectrum, automotive groups are no different in having commenced large digital transformation programmes to improve productivity, efficiency, and ultimately profitability. Falling sales figures mean the automotive sector is facing an increasingly difficult road ahead, something which means companies in the market are even more hard pressed to find new ways to improve their bottom lines.

While it offers major opportunities, the industry’s move to digitalise is not without complications. It has triggered a series of major internal changes, which have presented automotive entities with the challenge of becoming a “customer-oriented” industry. A new report from Cordence Worldwide – a global management consulting partnership present in more than 20 countries – has explored how automotive companies are navigating the rapidly changing nature of digital business.

New business models

The level of change likely to be wrought on the automotive industry by digitalisation is hard to overstate. Automation could well lead to significant reductions in the number of accidents, higher vehicle utilisation and lower pollution levels, while leading to a $2.1 trillion change in traditional revenues, with up to $4.3 trillion in new revenue openings arising by 2030.

As a result of this colossal opportunity, it is easy to see why almost all automotive groups now have digital departments, with generally strong communication within the digital transformation and the customer approach. The changes to society which this may have are potentially distracting automotive firms from the change it is leading to in its own companies though, according to Cordence’s paper.

The automotive market is dead, long live the mobility market

Because of this, the sector’s business model is set to transform over the coming decades. With digitalisation speeding up the appearance of concepts such as car-sharing, a subscription package model will likely become more palatable. At the same time, car and ride-sharing models will cater to the sustainability criteria of millennials, who will rapidly become one of the automotive market’s leading consumer demographics in the coming years.

Antoine Glutron – a Managing Consultant with Cordence member Oresys, and the report’s author – said of the situation, “These ‘old school industries’ are now working on creating new opportunities, but in so-doing are facing challenges and threats: new jobs, new technologies, new ecosystem of partners, necessary reorganisation, different relationship with customers, and even new businesses. The customer approach topic is in fact a real challenge for car companies as it implies changing their business model and adjusting their mind-set to address the customer 4.0: from product-centric to customer-centric, from car manufacturer to service provider.”

Digital customer experience

In the hyper-competitive age of the internet, even top companies face an uphill challenge when it comes to holding onto customers through brand loyalty. Digital disruption has resulted in changes to consumer behaviour, which is forcing a range of marketing strategists to reconsider their old, possibly out-dated strategies. As modern customers wield an increasingly impressive array of digital tools and online databases, they and are now able to quickly and conveniently compare prices, check availability and read product reviews.

The automotive sector is no exception to this trend, according to the study. In order to adapt to the needs of the so-called ‘customer 4.0’, car companies will increasingly need to change their business model and move away from product-centric companies to customer-centric ones, from car manufacturers to service providers.

Glutron explained, “As an automotive company, you can no longer expect customer loyalty simply with good products; you must conquer and re-conquer a customer that “consumes” your service. The offer now has to be global, digital and personalised. Your offer has to be adapted to this customer’s needs at any given moment. A key issue related to data control is to build customer loyalty by creating a customer experience 'tailored' throughout the cycle of use of the 'car product': purchase, driving, maintenance and trade-in of the vehicle.”

One way in which the sector may be able to benefit from this desire for a tailored experience is via connectivity. Consumers are generally positive about new connective features for automobiles, and many are even willing to pay upfront for infotainment, emergency and maintenance services. Chinese consumers, where the connected car market is set to hit $216 billion, are already particularly interested in paying a little more for navigation and diagnostic features in their future new car. This can also enable automotive companies to exploit a rich vein of customer data, enabling them to rapidly tailor their offerings to consumer behaviour.

New automotive segments

Digital transformation has also brought with it the rise of completely new application areas. As mentioned earlier, the most well-known example is the autonomous or self-driving car, where the last steps forward were not taken by major automotive groups but by technology companies such as Tesla. While this may have given such firms the edge in the market briefly, a number of keystone automotive names will soon be set to take the plunge into the market themselves, leveraging their car manufacturing prowess and huge production capacities to their advantage.

Before companies rush to invest in this market, however, it is worth their while to remember that the readiness and uptake for such vehicles differs greatly geographically. For example, following a study published in 2018, 92% of Chinese would be ready to buy an autonomous car, compared with only around 35% of drivers in France, Germany and US. Meanwhile, the infrastructure of different nations will also be significantly less accommodating of the new technology.

Use digital for steering thr activity

Elsewhere, Cordence’s analysis has suggested that hooking the cars of tomorrow into the Internet of Things is also likely to see a rapid change in the business model for car maintenance, providing real-time diagnostics for problems. This presents chances for partnerships to improve the connectivity of cars, especially with tech companies; for example, PSA partnered with IBM for a global agreement on services in their vehicle. Meanwhile, data could also be sold to other parties with an interest in this data, such as the government, which could use it to manage traffic levels, or ensure that only adequately maintained vehicles take to the road.

Glutron added, “With the increase in the amount of client data and connected opportunities, the recommendation is to set up data-centric approaches. The value is now in the customer data. The general prerequisites are to rework the data model and the Enterprise Architecture and generally build up a data lake including data from all sources (internal and external, structured and unstructured).”

From automotive to mobility

Relating further to the idea of connectivity, the report claimed that automotive firms must now adjust their models in line with the provision of end-to-end mobility, rather than treating the sale of a car as an end point in their relationship with the customer. In order to realise this transformation, transformations are likely to become more and more important.

A network of partner companies means automotive firms can provide a global mobility experience. As the vehicle is increasingly connected to its environment, new partners can also be cities, governments, and other service providers within the global mobility services industry in which the car brands want to take part.

According to the study, the target is clear. Companies must look to a holistic transport service, offering to move customers from A to B in a unique and pleasant way – otherwise they might as well take public transport. At the same time, they should extend the services reachable “on-board” (especially the enhancement of the connectivity between the car and smartphones or other connected devices), and reach high standards in terms of user experience (online sales, online payment, customised experience during and after the use of the car).

Concluding the report, Glutron stated, “These mobility market transformations could be considered a threat for the car manufacturers. Quite the opposite: if they take up the challenge and review their business model so that they become the service provider – communicating no longer to a driver but to a ‘mobility customer’ – they can then take advantage of their expertise and their position as a historical player. The most convenient means of transport are cars, and building a car is highly-skilled work.”