2010 Analyst Day Chicago, June 2 & 3

Transcription

1 Global Service Lines: Push for Growth Paul Spence 2010 Analyst Day Chicago, June 2 & 3

2 Detailed process to select the right priorities Strong Low Potential Contender Strong Potential Invest Now Smart Energy Services ITS - Virtualization & Clouds ITS - Unified Comms X Business Info Mgmt Testing ALS Completeness of Offer X X CTP Crescent Enterprise Mobility X Green IT Security Weak Large bubbles indicate larger market size Low Growth Market Momentum High Growth 22

3 First five months highly encouraging Financially Roughly 1/3 of bookings Roughly 1/4 of Revenue CM Several points above rest of business Operationally Several points better win rates in CC and TS businesses Faster way for OS to win new work Shifting of Alliance role and focus But Requiring intensified recruitment to optimise results Requiring increased reskilling of work force Shifting portfolio from geographic fragmentation to unified global capability 3

4 Strong base to evolve business models and innovate ALS Catchup with industry, then surpass with a twist TST Industry best processes w/ consolidated delivery BIM From data to information to sector solutions ITS Technology change of XaaS and unified comms SES MBS with monitored investment and risk On track for above market growth AND improved margins for the five GSL s 4

5 BaU Lean Supply Chain Update for Tech Day Nicolas Dufourcq 2010 Analyst Day Chicago, June 2 & 3

6 Lean is essentially about eliminating waste and focuses on delivering maximum value to the customer Waste is anything that consumes time & resources, but does not contribute to satisfying customer needs, or something that the customer will not pay for The five principles of Lean C. R. Allen, 1919 TWI, 1940 Jidoka Jidoka T. Ohno JIT Kaizen TPS House,, Cho, 70 s S. Shingo Méthodes japonaises 1. Define what is of value to the customer 2. Create a continuous flow of value to the customer, eliminate waste and complexity J. Womack & D. Jones 3. Link the flow of value directly to customer demand S. Toyoda, 1890 s K. Ishikawa, 60 s Qualité E. Deming «Lean» 4. Empower employees to manage the process, and make them accountable for improvement J. Juran Lean s origins lie in the Toyota production system developed by Taiichi Ohno in the 1950s 5. Maintain a strong focus on continuous improvement Lean Thinking has successfully transformed many companies, giving them a greater focus on performance and customer requirements 6

7 Waiting Toyota identified 7 Wastes, which are relevant to most business environments Toyota Examples Waiting for previous processes to finish. Waiting for material to arrive. Service Examples Testing team waiting for code to arrive Unassigned capacity between projects Waiting for responses from offshore teams Over Production Rework Motion Over Processing Inventory Production of parts without a customer order. Time spent making defecting products that can not be accepted by the customer. Excessive human / equipment effort poor layout and process design. Adding to a part something that is not required by the customer. Raw Material / WIP / Finished goods tied up capital. Detailed reports that no-one reads Develop exceeding scope of contract Poor trained people Late test execution in development process Searching for files Resources switched within different tasks Repeated data entry in different environments Non-actionable supporting tools Huge ticket backlog Large number of features waiting for batch release Transportation Moving parts from one location to another without adding value. Meeting in different sites Multiple handoff in ticket management The identification and elimination of waste is fundamental to Lean reducing costs and increasing profit. Other benefits are derived from waste elimination 7

8 Lean is potentially a powerful change process Lean means: 1. A new way of designing and implementing standards and methods 2. A major change in the way we work in the field and with our clients Standard ways of working Findings in engagements BU Mgmt Delivery managers Continuous improvement Lean CA Improvement actions Lean behaviours Process performance Rapid performance monitoring and problem solving - Visual Management using daily white board meetings Seamless model with offshore - important transfers of responsibility People Behaviours, efficiency and performance tightly connected to the customer A strong focus on our global and local management People listening, coaching and adopting the standard toolset Additional soft skills à la Genesis Lean growth Snowballing network of Manager Champions and CAs, on and offshore Continuous Improvement ethos facilitated with a central full time officer 8

9 BeLean unlocks a new entrepreneurial spirit with broad benefits BeLean Value Proposition : Market share BD costs GOP Hard benefits Increased CM by eliminating waste Lower ADRC through more offshoring Improved topline through: Increased non-compete business with customers Re-invested saved time in intimacy building or higher margin work Improved effort estimation, leading to an increased win rate Soft benefits Improved relationship with offshore More positive industrialization message Lower regretted attrition by improved day-today performance coaching More ingrained performance culture in the field from bottom-up Clearer rallying point : BeLean! A performance-driven company with continuous improvement behaviours consistent with our DNA 9

10 We will apply BeLean to the 4 main categories of business model in the Group Established Run BPO IM ALS (AO, TS+, Frames) Testing In Progress Transform ERPs inst/roll-out (SAP, Oracle, MS) Domain «template solution» (Crescent, CTP/Mobistar ) BI, Agile SOA/CSD Responsibility business 10

11 2010 Programme overview April May June July August September October November December Wave 1 Wave 2 Wave 3 UK Cluster 1 UK Cluster 2 May 26 th to Aug 16th Mar 23 rd to Jul 12th AO Mar 23rd to Jul 12th Mar 23rd to Jul 12th Apr 10th to Jul 26th Jul10th to Oct 21th Sept 10 th to Dec 22nd Oct10th to Jan 21th Jun to Sept 1th xx A L S Bootcamp Apr 12 th /16 th xx xx xx xxi xx xx xx x S A P Bootcamp Apr 12 th /16 th (UK) May to Aug 21st (US) May to Aug 21st (DACH) May to Aug 21st (DACH) May to Aug 21st (US) May to Aug 21st 11

12 Our first Lean pilots in AO, ALS & Package deployment demonstrated that significant capacity release is achievable in our business by adopting Lean principles Focus Example findings Inefficient resource on- 10% productivity loss due to 23+ days delay in on-boarding boarding Offshore resource 28% idle time for offshore resources utilization Low use of Only 19% FTEs offshore rightshoring 70% of test steps could be automated for Regression and Manual testing Negative testing Missed CR 36 Focus CRs (worth 50K) unbilled to client Example in current findings phase revenue Root Cause Re-use of ~3 days spent 0% by 30% proactive of project analysis team on members P3 and P4 creating incidents Analysis standard tools templates for project use Incident 20% of tickets return to user for more information Management Change 14 duplicate entries of data across 4 systems for a client CR management Change 100% of non-financial data fixes require same approval as full Management system deployment Time Management 100% of support staff spend 1hr/week ensuring that data in Clarity and DTX match Transition 6.5 days per month spent by Transition managers chasing Management project managers for plans/documentation Pilots proved that significant capacity release is possible through the Lean approach At December ASEs, SMEs confirm that over 50% of pilot findings are scalable Sustainability is achieved by changing behaviours and installing robust performance management systems 12

13 Pilot teams and technical experts were brought together, and confirmed that over 50% of the pilot findings were common/ scalable S TRE AMS Benefits summary pilot 1 Str eams AREA PO TENTIAL BENEFITS Pilot themes Theme is only local 0% Scalable 100% Scalable Don t know Low High 1 Create a more flexible o rganisation Break the silos (horizontal training) Strengthen employee skills (vertical tra ining ) 2 8 Crea te a more effective organisation Monito r and control pro duction tightly Improve project governance 1 0% 21% FTE 3 FTE O pe ration s Managem en t 3 Improve client relations to reduce rework including improvement of the billing process Implement best prac tices and rationa lise production tools Standardise and propagate best practices among the teams Rationalise the produ ction tools Revise the resource estimation models Improve employee w orking conditions Ops M gt O ps TOTAL (% Benefits) + Potential + Benefits Opportunity Area (Hours per day) Problem Mgt Knowledge Mgt (Incident) Shift left (Incident) 3.4 DTX/Clarity - NOE Lite DTX/Clarity - Plan Mgt Batching of data fixes Application release window 1% Testing environment 4.1 6% O pe ration s Already decided & planned to rem ove 10 FTE in the next 5 week s Benefits Mo rale summary (according to the training pilot 2 sessions) Benefits summary pilot 2 Mgt 11% 1.5 FTE 27% 3 FTE % Potential benefit for AO Support Capacity Release (FTEs) % Capacity Release * Benefits (AO Support) by end 2011 Current FTEs % Cost/benefit 36% ROI in Year 1 Test team KT 0.4 Opportunity Area Change Mgt Total Capacity Release Potential benefits Benefits summary pilot 3 Root Cause Analysis & FMA (Offshore) Knowledge Management (Offshore) 12 Month FTE capacity saving Cashable Knowledge Transfer (On & Offshore) Root Cause Analysis & FMA (Onshore Service Desk) Right first time (Offshore) Other solution activities (Onshore service desk) Total TBD * 3.65 FTE Reinvestmen t of capacity into account % Capacity Release: 13.5%* out of 27FTE in scope 13

14 Summary BeLean is a bottom-up approach which delivers sustainable improvements by changing behaviours at all levels Our BaU programme has proved that substantial capacity release is possible in Run environments (AM/ADM) We are in the process of mobilising the management levels to sponsor, support and drive realization of benefits Lean is potentially a powerful change process 14

15 The next frontier: Offshore for growth Salil Parekh 2010 Analyst Day Chicago, June 2 & 3

16 Offshore has become a core engine of our business LATIN AMERICA 1,200 1,850 2,300 MOROCCO EASTERN EUROPE 3,700 4,100 4,200 INDIA 20,500 22,000 25,000 CHINA 1,000 1,200 1,200 PHILIPPINES NEW! Serve 900 clients from offshore Deploy 32,000 professionals in lowcost delivery centers Growing at 32% offshore penetration Red Black Blue 2008 headcount 2009 headcount 2010 headcount (est.) 16

17 What we learned during the slowdown Learning from our Financial Services, North America, and Australia businesses, we saw a segment of the market that we needed to play a larger part in: the offshore-driven market Clients are asking for more direct relationships with their teams offshore for current business and for new sales and innovation Large clients are consolidating and focusing their vendor lists Fixed price delivery requires more cohesive onshore-offshore teams and processes As we move toward a greater proportion of our staff based in emerging markets, we need to actively manage cultural evolution within Capgemini, for performance and competitiveness 17

18 The next step of our transformation attempts to address these issues Position our services more competitively Realize that depth of domain expertise is as critical as scale Leverage offshore as the pivot point for delivering innovation Get onto client framework deals Develop joint onshore-offshore delivery programs Apply cultural awareness and commitment as a competitive edge 18

19 Price is a rite of passage, but customers also want deep expertise and innovative solutions POSITION COMPETITIVELY DEPTH OF DOMAIN EXPERTISE AS CRITICAL AS SCALE If the price is right PRICE POINT Beyond price, we are managing customer-focused innovation in three ways: COMMUNITIES CoEs SOLUTION AREAS then, if we demonstrate a world-beating solution COMPELLING SOLUTION CLOUD COMPUTING AGILE LEAN VIRTUAL REALITY we earn the opportunity to offer a winning deal VALUE & DEAL VISUALISATION 19

20 Offshore distributes local innovations globally and helps break into new markets OFFSHORE AS PIVOT POINT FOR INNOVATION Offshore serves as the coordination point for gathering leading solutions from one BU and launching them into all.!! Innovation in Cloud services, SaaS, BIM, SmartX and others will continue to make us popular as an expert provider of leading solutions.!!!! OFFSHORE GROWS THAT WAS THEN (2007) Services unit of a large French telco Single project. Early stages of offshore usage. THIS IS NOW (2010) 20m across multiple projects during last three years and extended for additional three years. Offshore leverage over 80% across multiple projects. Some projects at 100% offshore leverage. End to end delivery managed offshore OUR APPROACH Focus on understanding business requirements. Mutualized team and flexible staffing across multiple projects. End to end responsibility of customer relationship 20

21 A sustainable Capgemini of the future will be built on a clear appreciation of cultures FUTURE SUCCESS REQUIRES CULTURAL AWARENESS AND COMMITMENT Goal: A culture that leverages our multi-local heritage for top performance Objectives: Overcome sub-contractor mindset (soon, more than 50% of us will be in emerging markets) Identify what we do best where and make this work for us globally Clarify onshore roles and ensure we are mobilized to deliver them Questions that require exploring: What future organization will win globally, and how is it managed? Where is flexibility and continuous change required to sustain focused offshore growth? How do we nimbly manage provision of our best capability (domains, sectors, solutions) to specific clients? What new demands emerge from the best global talent in the 21st century model? 21

22 We are driving the transformation via a set of initiatives for growth and margin We are growing...through bringing new innovation to our customers We are stretching margins bringing more offshore capability into our propositions We are unifying delivery by cross-fertilizing capability through transversal offerings CUSTOMER MARKETS INDIA & OFFSHORE GROWTH MARGINS KEY INITIATIVES Joint account management Framework penetration Rapid lead generation Large deal teams KEY INITIATIVES Low-cost deployment Fixed-price delivery Competitive pricing KEY INITIATIVES Centres of excellence OneTeam delivery Customer visit experience 22

23 Our portfolio of change is broad, and intently focused on growing the top line Joint Account Management Bring India closer to the customer, and the customer closer to India Framework Penetration Win larger framework deals with larger, global clients with end-to-end needs Rapid Lead Generation Fast-track entry into new customers, through low-cost, direct marketing Large Deal Teams Put our best sales leads at the forefront of winning our boldest global deals Fixed-price Delivery Commit to price and leverage offshore excellence to maximize margins Competitive Pricing Win on price, through greater offshore leverage Centres of Excellence Manage innovation and delivery excellence through focused Rightshore teams OneTeam Delivery Enhance offshore productivity through a more seamless way of working Customer Visit Experience Create ever greater customer trust and wow in our global capability 23

24 The program puts offshore onto the front lines of our go-to-market strategy Offshore and India have increasing impact on the shape of Group strategy GROUP STRATEGY & DIRECTION Business units are upping their game through adoption of our best ways of working, coordinated and distributed by an India core team TS NA TS UK OS... LOCAL DELIVERY OF GLOBAL DESIGNS RADICAL RIGHTSHORE Global improvements are accelerated through immediate duplication of our best ways of working, across all business units BEST PRACTICE DRAG & DROP 24

25 The program is re-designing the way we work in certain areas WE ARE MORE COMPETITIVE WE ARE GROWING A SUSTAINBLE REVENUE BASE WE ARE CREATING SPACE TO DELIVER OUR E2E CAPABILITY COMPETITIVE PRICING JOINT ACCOUNT MGMT FRAMEWORK PENETRATION Stronger price challenge Global standards Better leverage Improved client intimacy Clearer accountability More account talent Greater market visibility Deeper relationships Global process live Regular flow of deals Ruthless price challenge focused on offshore blend 34 accounts agreed Global model live Joint teams mobilised New managers on board Account team training underway 16 accounts agreed Global standards defined Framework pursuit teams mobilised Framework core team leading from offshore 25

26 The transformation is making an impact in the field today NA TS Won large framework deal at a consumer products company Life sciences company $10.5m; Telco equipment maker $1.2m; Retail company $4.5m 8 new account managers TS Sweden Won large outsource with telecom major Auto company 3m; Bank multiple deals All Oracle services for Nordics being driven from India TS UK Won a 10m framework deal at an utilities company Won a major multi-year deal at Public sector department Retail company 3.4m; Manufacturing company 4m OS Auto company (40 FTE) 8 India-led BPO accounts totalling 90m Service Delivery Management moved offshore 26

27 Where does that take us Faster growth: 3 points of extra growth where program initiatives are deployed in the field Stronger intimacy and stickiness with clients: via joint account management and framework deals Access to larger, global clients: by becoming more competitive, but with depth of expertise and innovation 27

28 Innovation; Business and Technology Change Andy Mulholland The Innovation question is; Not what is the role of the IT department but what is the role of Technology within the Enterprise 2010 Analyst Day Chicago, June 2 & 3

29 Our Clients agenda? Moving back to Growth! Focused and strong signals Mixed and weak signals Value Creating operations Realtime analysis of opportunities traditional billing & collections business intelligence sales support Transactions Events Internal Enterprise IT Cost Driven External Web & Clouds Source and copyright by Peter Evans-Greenwood, Unico pty 29

30 New Business Models built on Technology & Services 30

31 Technology is used every where in the business People Web Services Internal External Applications Computers 31

32 Now put the Business and Technology Together Value Supporting People and Expertise Cost Internal Supporting Computers and Systems External 32

33 The focus for the Breakout sessions; Value Business Information Management Supporting People and Expertise A roadmap from Traditional BI to Realtime Data Analysis Smart Business Utilities Creating new markets and Value through technology Cost Internal Supporting Computers and Systems Infostructure Technology Services Moving to improve IT flexibility & change the delivery model External 33

34 Business Collaborative Innovation its part of the Capgemini Collaborative Business Experience! Three unique methods; TechnoVision the Capgemini approach to enable an Enterprise to understand how technology will impact its business both beneficially and adversely to be able to define and focus on crucial actions. RApid INnovation, RAIN Capgemini working in partnership with Intel Capital to bring the capabilities of more than 300 advanced technology companies into our clients requirements to provide defined requirements and benefits specifications for new projects. Rapid Design & Visualisation, RDV, the Capgemini method for capturing requirements as visual prototypes so agile and iterative builds can be used to provide high value leading edge business solutions with immediate delivered benefits. 34

35 Winning position in a new market Cyril Garcia 2010 Analyst Day Chicago, June 2 & 3

36 Techno evolutions feed a disruptive world Virtualized Virtualized economy economy A world world of of cities cities Reality of Cloud offerings: external storage, processing and connectivity options at unit and usage costing Data generation continues to explode: analytics, BI, manipulation personal data management tools grow as a result, in memory Security Globalisation: international regulation, globalised markets and organisation structures continue apace Business Business decision decision making makingshifts east east A sustainable sustainable growth growth 36

37 For our industry, very challenging years Combination of hardware and software create both cost savings and revenue! Big Bigisis beautiful? Clients want integrated services and innovation! The The one one stop stop shop shop dream dream? IPP will break the fortress Europe! «This This is isthe end end» for for the the european players? 37

38 Thanks to our I 3 program we are now positioned as a global leader IBM HP Accenture Capgemini Global reach Strong brand Leader in chosen segments Above market growth Differentiated IP Balance sheet to invest Lean cost structure Strong sales coverage 38 3

39 We are starting a journey far more complex, which mobilizes the group Manage the portfolio Capgemini Application lifecycle services Testing services Competition Acquisition Invest in new offerings Rebalance geographies Streamline cost structure ITS & Cloud BIM Smart energy Latam, APAC, India, Eastern Europe Rightshore India enabled transformation Lean Business analytics Cloud computing Smarter grid Cloud BRIC, Mexico, South Korea,China Leaner cost structure Layoffs plan Become strategic for clients Global and country managed accounts Diamond clients Sales coverage 39

40 Back Office industrialization will share the stage with technology drivers Growth New New custom custom softwares softwares Business maintenance and BO industrialization Tipping point Dispersed Dispersed device device systems systems Systems Systems of of systems systems 2010/2011? Time 40

41 Clients are starting to adopt these drivers Shared resources Infrastructure Interaction platform IP Xaas Service platform Flexibility Saas+BPO End-to-end services Customed Services 41

42 These technology drivers are accelerating with different impact on industries Manufacturing Retail EUC FS Services GOV TME Level of change Smart meters & smart grid Online 2.0 Customer lifecycle management PLM Consolidation Multi-channel Customer analytics Emerging markets Network engineering & field management New entrants Billing & customer information systems Risks & regulation Consolidation Standardization Rail network management Diversification Consolidation ehealth Security systems Tax systems E-border Digital media Smartphones Billing Capgemini has some strong positions and consulting favors business alignment Long term growth 42

43 Clients are expecting new business models Models NEW End-to-end IT structure performance Complex Complexsystems Interaction Interaction services services End-to-end business outsourcing End-to-end IT applications Transactions Transactions Aas Aas OLD OLD NEW Businesses 43

44 How to win positions in this new market Economic Models NEW INVESTMENTS INVESTMENTS SECTOR SECTOR KNOWLEDGE KNOWLEDGE Alliances, Alliances, IP, IP, COEs COEs FS, FS, Telco,PS,EU Telco,PS,EU OLD TECHPLATFORM TECHPLATFORM BI, SES, Alliances BI, SES, Alliances OLD NEW Businesses 44

45 This may trigger a new IT role where intelligence and services will be key differentiators Business Bundling BPO + Software platform Technology Aggregated Cloud services Sector expertises Partner resources Eveything as A service Integrator and Operator Own resources Alliances Partners Complex custom softwares Security SLAs Service Intelligence 45

46 Meeting the challenge of market disruptions Paul Hermelin 2010 Analyst Day Chicago, June 2 & 3

47 Some areas of our portfolio are getting hot Pipeline growth Offerings Disciplines Geographies Sectors ITS SES ALS TST BIM BPO CC APAC Eastern Europe FS Manufacturing Utilities CRM Sogeti NA Nordics Gov US SCM 47

48 To benefit from an apparent resurgence we are driving both industrial and technology strategies New Business Models Sector Solutions IP Solutions Industrialised Offerings, Global Reach Globalisation, Scale Increasing Competition Uncertain Market Recovery Technology Leadership Emerging Technologies Capgemini must be ready to exploit market evolutions 48

49 Global delivery will be a strong differentiator in a thawing market Offshore is rebounding a driver we embrace 12% 10% 8% 6% 4% 2% 0% -2% -4% Offshore headcount growth q/q Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Capgemini Accenture Wipro (IT svces) Subcontractor model Volume driven Pure delivery Onshore responsibility Kanbay One team model Shared KPIs Client exposure Sales support Innovation Shared responsibility Offshore headcount Empowered model Shared client ownership Full responsibility Transversal expertise Most competitive pricing Capgemini has taken early steps and will keep its focus 49

50 Technology drivers are accelerating In-memory Real-Time Maturity Networked devices Iaas Green IT BI & analytics Portals MCommerce Cloud Virtualization Consumer technology & Web services Smart energy Mobility Collaboration Smart X Social web Smart transport Cloud services Apps Marketing Social CRM Capgemini builds on strong assets: Alliances, Technology Culture, Management Talent and a true Entrepreneurial Mindset 50

51 More than ever Capgemini is agile within its ecosystem Anticipate with innovators Tip of the spear with our very large partners Take the lift with fast growers 51

52 During the downturn we strengthened our relationship with Package leaders Integrated Enterprise BS 7 SAP/Microsoft integration Ready for Fusion Intelligent Enterprise SAP BOBJ SAP Smart Analytics with Teradata OBIEE Capgemini Flexible Enterprise AIA BPM Saas Vertical Expertise Oracle Tax & Global public sector Oracle Insurance & Financial Services Case management There is significant opportunity in 2010 and beyond 52

53 Capgemini is broadening our traditional Alliances with Channel-based Strategic Selling Alliances Focus: De-risking Delivery Channels Focus: Pipeline Growth Regular Engagement Deal Driven Partnering Skills, Certification, Resources Geographic co-ordination Account Teams Sales Teams Differentiated Partnerships IP accelerators support Partner Technical Solutions Co-owned IP for sector-specific applications Joint GTM leveraging Partners geographic sales teams Solution Specific CoEs Our value proposition is to integrate and support 53

54 We are changing to build our leadership position Global reach Capgemini s current position Strong brand Leader in chosen segments Strengthen Core Business Renewed offshore drivers Lean supply chain Portfolio management Above market growth Differentiated IP Balance sheet to invest Lean cost structure New Growth Initiatives Emerging markets New business models Differentiated IP Strong sales coverage 54

55 Our acquisition program is aligned Expand IBX Offensive Long Term Smart X China Revenue Synergies Cost Synergies Short Term US portfolio Defensive Consolidate 55

56 We now are facing new challenges for 2013 Business partner New models Sector expertise Consulting Business technology Tech integrator Independent Industrialized Build & Operate Global Local Intimacy Rightshore Proximity Reactive Pervasive 56