Capgemini leverages Amazon Web Services to boost cloud transformations

19 September 2018 Consultancy.uk

Global professional service group Capgemini has launched a new initiative to expand its cloud capabilities, using Amazon Web Services (AWS) in order to drive improvement in business performance. The new partnership will see Capgemini and AWS focusing on SAP and mass application migrations, while working to build more end-to-end solutions to infuse automation, AI and machine learning into customer solutions.

Cloud computing is increasingly becoming part of the wider IT market, as the technology develops, needs from customers change and the price comes down. As the technology continues to mature, creating a host of opportunities for providers as more and more companies consider the technology for their IT needs, the cloud market is worth more than 16% of the global enterprise IT market, while continuing at a growth rate of around 17% per year until 2020.

In this atmosphere in which the business appetite for cloud-based solutions is growing, 30% of service centric companies are projected to move the majority of their ERP apps to the cloud by the end of 2018. To better cater to the booming demand related to this market, international professional service network Capgemini has announced the launch of a group strategic initiative to aggressively expand its cloud capabilities with Amazon Web Services (AWS).

Capgemini leverages Amazon Web Services to boost cloud transformations

Amazon is no stranger to tapping into digital disruption itself, having ridden the wave of technological innovation at the turn of the century to become only the second company in history to be valued as a trillion-dollar entity. Capgemini will look to turn this expertise toward helping its clients to increase business insights, agility, security and cost effectiveness to drive improvements in their business performance. With increasing attention being paid to the needs of European clients in particular, Capgemini and AWS will focus on SAP migrations, mass application migrations, accelerated data center modernisation, artificial intelligence and machine learning.

Demonstrating how cloud has fundamentally changed the economic landscape for many enterprises, many enterprises are now under significant pressure to maintain and improve their competitive advantage. According to a report by Capgemini earlier in 2018, cloud leaders are building more than 20% of their applications in the cloud, driven by the need to improve velocity, collaboration, and customer experience.

Combining AWS’s ecosystem of cloud technologies with Capgemini’s experience in applications, on-premises infrastructure and cloud managed services to provide a holistic service, driving time-to-market reductions, productivity gains and cost savings. The initiative will initially focus on assisting the migration of enterprise SAP implementations to AWS, the acceleration of application renewal for the enterprise, accelerating data center modernisation strategies, and supporting European and global enterprises maximise top line business opportunities from GDPR, including to help meet compliance needs and use data more strategically.

Extending a decade-long relationship

Part of the new focus will see Capgemini work to innovate and build end-to-end solutions and accelerators in collaboration with AWS, leveraging the global network of Capgemini’s Applied Innovation Exchanges (AIEs) to infuse automation, artificial intelligence and machine learning into customer solutions. One example of the kind of work Capgemini will be able to do with the new Amazon alliance is the integration of Amazon Alexa with customer data to create both new interactions and increased customer satisfaction in the hospitality sector.

This initiative with AWS builds upon a decade-long relationship between the two organisations, with Capgemini being a Premier Consulting Partner in the AWS Partner Network (APN) and an AWS Managed Service Partner. Capgemini simultaneously holds more than 700 AWS certifications including associate and professional level certifications, with the firm planning and plans to boost this to 5,400 certifications to support the new initiative.

Commenting on the news, Aiman Ezzat, Group Executive Board member and Chief Operating Officer at Capgemini said, “Our clients look for global scale and excellence in digital transformation, enabled by cloud technologies. With a commitment to scaling our AWS capabilities we can bring to our clients’ digital journeys both operational efficiencies and the power of new technologies, such as artificial intelligence and machine learning.”

Andy Isherwood, Vice President and Managing Director EMEA, Amazon Web Services, added, “Capgemini has already helped many customers leverage the scale, security, and agility of AWS services to innovate on the cloud. This new business group will help organizations of all sizes accelerate their adoption of cloud technologies, and we look forward to collaborating with them to help even more customers on their digital transformation journeys.”

Related: The top 10 world’s most admired companies: Apple and Amazon lead.

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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.”