INFS6004 Business Transformation Report: Capgemini Case Study Analysis

This report provides a comprehensive analysis of Capgemini's business transformation, focusing on its strategic intent, business models, and the launch of Capgemini Invent. It examines the pre- and post-transformation scenarios, highlighting the company's approach to digital innovation and its role as a global leader in consulting and technology services. The report evaluates the alignment between strategic intent and the business model canvas, discusses management and leadership activities, and explores the application of change management theories like Kotter's model. It also details Capgemini's transformation practices, including smart asset management, and offers recommendations based on the analysis. The report emphasizes Capgemini's efforts to help clients leverage existing assets for disruptive market propositions and stay ahead of the competition.

Running Head: BUSINESS TRANSFORMATION REPORT 1
BUSINESS TRANSFORMATION REPORT

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Table of Contents
Introduction......................................................................................................................................4
Company description.......................................................................................................................4
Rationale..........................................................................................................................................5
Business context..............................................................................................................................5
Strategic intent and business models...............................................................................................5
Pre-Transformation......................................................................................................................5
Post-Transformation....................................................................................................................6
Transformation................................................................................................................................7
Analysis and evaluation...................................................................................................................7
Conflict or support between strategic intent and BCM...............................................................7
Activity of management and leadership......................................................................................8
Other models..............................................................................................................................10
Transformation practices...........................................................................................................10
Improvements in the transformation practices..........................................................................12
Measures for assessing the transformation practices.................................................................12
Conclusion and recommendations.................................................................................................13
Conclusions................................................................................................................................13
Recommendations......................................................................................................................14
References......................................................................................................................................15

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Executive Summary
The walls between various Industries have been brought down by the age of digital
transformation. In the contemporary reality era, businesses should emphasize upon utilising the
prevailing resources for generating exciting offerings and benefits. However, the same is easier
to be said than done. Hence, a fresh perspective would be more beneficial. At Capgemini, with a
new business transformation, clients are help in finding new techniques and methods of using
prevailing and extent assets for bringing new and disruptive market prepositions. The
organisation is helping clients and businesses to emerge from their existing positions.

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Introduction
Digital innovation and business transformation are key to the success of an organization
(Westerman, Bonnet & McAfee, 2014). Capgemini has set examples by launching the
Capgemini invent which is a new consulting, transformation and digital innovation in the global
business line. New methods have been encapsulated by Capgemini invent where the company
has been working with clients and customers from across the world. Today, the company not
only advises clients regarding transformation and digital innovation, but also builds, operates,
transfers and Designs expertise for helping them in the invention of their core businesses along
with implementation and invention of new procedures, services and products.
Company description
Capgemini is a multinational company which is situated in Paris, France. The
organization is worth 12.5 billion Euros as of 2016, which was the net revenue earned by the
company in that year (Bloomberg, 2019). It is a global market leader in the industry of business
consulting, outsourcing services and technology services. It helps its clients by developing and
establishing their businesses and organizations by the means of digital and technological
solutions which fulfil their needs and requirements. Hence, it can be said that Capgemini
provides its client companies with the achievement of innovation and competitiveness. The
company has more than 200,000 employees in more than 40 nations (Reuters, 2019). Out of
these employees, more than half of them are employed in India. The company was found in the
year 1967, by Serge Kampf, originally in the form of a data processing firm (Capgemini, 2019a).
It was first inaugurated by the name Sogeti. In the year 1974, Gemini computer systems (a
computer selling business) which was based in New York, USA, was acquired by Sogeti. After

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the acquisition of both Gemini computer systems and CAP in the year 1975, it renamed itself by
the name CAP Gemini Sogeti. In the year 1996, the name was simplified with Capgemini. The
current CEO, COO and CFO are Paul Hermelin, Thierry Delaporte, Aiman Ezzat respectively.
Rationale
Capgemini has been selected as the company for doing this assessment because it is one
of the best companies that demonstrates a business transformation. The transformation of the
company has a combination of important digital capabilities with in-depth expertise for helping
organizations in prototyping, testing and scaling new products, business models and services,
effectively and quickly.
Business context
Capgemini is present in markets of more than 40 countries, majorly in India. The industry
that the company operates in is information technology services and consulting. The main
competitors of the business are T-systems, Atos, Infosys, Wipro, Accenture, Hexaware, etc. The
products are services provided by Capgemini are consulting services, outsourcing services,
services related to local professionals as well as technology (Capgemini, 2019b). The additional
services provided by them are artificial intelligence, cyber security and risk mitigation,
Innovation and transformation, GPDR, business operations, cloud services, Applied innovation,
etc.
Strategic intent and business models
Pre-Transformation

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The primary approach of Capgemini towards business is providing top to bottom strategic
vision and leadership and ensuring that it creates the significant environment for its people who
would then be able to individually use and utilize their experiences, expertise and creativity for
developing effective and innovative solutions for the areas of impact (Capgemini, 2019c). The
six pillars of strategy of the company are Corporate responsibility, Sustainability, strategic
vision, leadership, individual, commitment and passion. According to the company, ensuring that
all people and activities are significantly considered and aligned is important and also for making
sure that the activities are anchored in a proper program and framework for implementation.
Post-Transformation
The key partners of the company are its shareholders, IT and service suppliers,
acquisitions and subsidiaries. The key activities of the company are system integration,
Outsourcing services, managing suppliers, technology development design and IT Consulting
Services. The key resources of Capgemini are analytical tools, know how, corporate governance,
expertise, management team, document skills and third party providers of technology. The value
propositions of the company are derived by the means of industry sectors diversity, cost saving
and drive of the digital industrial era. Customer relationships are made by the means of
transactions, Outsourcing, adhoc projects and expertise. The key customer segments are from the
departments of energy and utilities, financial services, transportation and manufacturing,
automative services and technology. The primary channels used by Capgemini are process and
procedures, centres of excellence, podcast, social media, website, Sourcing teams and
environment of accelerated solutions. The structure of overall cost of the company is formed on
the basis of offices, staff, tools, training, taxes, cloud and IT systems. Finally, the revenue

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streams of the company are generated primarily on the basis of consultancy services and
projects.
Transformation
A new product named Capgemini invent was launched by Capgemini which is a new
digital transformation, consulting and innovation global business line. This product is a
combination of market leading expertise in data science, technology, strategy and creative design
for helping the envision and building on what is next for their businesses and operations
(Capgemini, 2019e). It is the combination of the key expertise in data science and technology
and multidisciplinary strengths of the consulting company under one brand. The specialist
capabilities of this brand provides its clients with the capability of operating at the digital speed,
for ideating and designing strategies of digital transformation, transformation plans and digital
solution prototypes which are tangible, while at the same time assessing the path for monitoring
and scaling the same by the means of leverage of the group's complete expertise (Capgemini,
2019g). The Capgemini Invent helps its client in staying relevant and significant and staying
ahead of the prevailing market competition.
Analysis and evaluation
Conflict or support between strategic intent and BCM
Even though there is quite a support between the old and new strategic intent and
business model canvas, there are a few conflicts as well. The new business models have invited
predictive quality and maintenance. The maintenance and management of assets and equipment
is a direct impact on the profitability of the business and its operations (Capgemini, 2019d). If
the effectiveness of the equipment can be increased, then the Inventory of spare parts and cost of

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maintenance can also be reduced. The introduction of protective quality and maintenance has
now helped the business to address the challenges of in business longest and making informed
decisions related to operations. The predictive maintenance approach of the company which is
built on the basis of the SAP Leonardo stage, helps in leveraging algorithms and advanced
analytics for rapidly turning the transition form into reactive or the maintenance to predictive or
proactive. It has resulted in bringing together combination of a various data sources. The ready to
use algorithms of the company are well compatible with all the equipment which are able to
provide machine PLC data. A pilot project for industrial procedure can be applied in to usage
within a short period of time and is completely aligned to the strategic key performance
indicators of the client. Various benefits have been attained by the usage of such an approach.
These benefits mainly are higher productivity of assets due to proactive notifications and
automated monitoring, better availability of assets and fewer outages that are unplanned by the
means of predictive maintenance. The benefits also include comment in overall cash flow due to
expenditure on the spare parts of equipment and a greater first time fix rate as well as an
improved utilisation of technicians due to induct information and data related to the problems of
equipment.
Activity of management and leadership
Management activity
One of the management activities of Capgemini is smart asset management. According to
the company, Asset Management is essential despite being complex. International companies
and businesses face various challenges in the management of their assets such as challenges of
dependencies, configuration, physical location and usage existing within the business. For

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managing assets effectively, the consideration of various activities is quite important. These
activities are asset protection, cost control, compliance, efforts of consolidation and optimisation,
and various operational requirements. These operational requirements include information
security, support, Change management, configuration management and business continuity
(Capgemini, 2019f). Optimisation in Asset Management is attained by the means of smart
decision making. The smart Asset Management solution of Capgemini helps in providing a
coordinated view of the assets and performance of businesses. It helps the companies in
maximizing their return on investment of assets, reducing the overall cost of life cycle of assets,
extending the life of the assets and decreasing the cost of maintenance. The solution of the
company provides efficient management and better tracking of the assets which are important to
the success of a business organisation (Capgemini, 2019h). The smart Asset Management of
Capgemini which include comprehensive dashboards well supported by a model of data cover
various aspects such as assets (age distribution, asset performance and downtime in hours), labor
(trend of work-type and overall utilisation), work order (maintenance cost distribution), service
requests (response times and SLA adherence), compliance (delivery, stock and labour) and
inventory (turnover rate and planning). The big data capability of Capgemini helps in improving
the unstructured information processing such as technical data reviews of assets by the means of
social media which are then processed in the proprietary platform of big data of Capgemini by
the usage of the ecosystem of Hadoop.
Leadership activity
In the contemporary dynamic environment of today which contains consistently changing
requirements of organisations as well as business challenges multitude, a dramatic change in the
role of leaders can also be seen. The leaders are required to fulfill new responsibilities and roles

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apart from their traditional and prevailing tasks, like cultural architect, talent scout and coaching
of agile teams. New attitudes, competencies and skills are required. The approach of Capgemini
towards leadership is a twofold approach where it builds upon new and emerging competencies
of leadership. The company has a closed integration with the Massachusetts Technology
Institute. According to the firm, it is the correct partner for enabling leaders for preparing and
navigating their employees and organisations for the upcoming future. Capgemini specifically
enables leaders for setting the appropriate strategic directions, assuring the development of a
strength based team and driving the alignment of organisations. The company uses an analysis of
the prevailing leadership style of organisations for identifying the potential skill gaps of
leadership.
Other models
The other change model which can be applied to the operations of Capgemini in the
context of business transformation is the change management theory of Kotter. This model is
divided into 8 stages where every stage individually emphasizes upon one important principle
which is related to people's response to changes (Burke, 2017). The eight stages are increase
agency, getting the vision correct, building the team, communicating, focusing on short term
goals, getting things moving, not giving up and finally incorporating change (Appelbaum,
Habashy, Malo & Shafiq, 2012). Such a change model is quite beneficial for Capgemini since it
is quite easy to follow and incorporate. The primary idea behind such a change model is the
acceptance of change and preparation for the same instead of changing the business itself or its
operations.
Transformation practices

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On the basis of the Kotter change model, there would be eight transformation practices
for Capgemini.
Increase urgency
In the first stage, Capgemini would need to create an urgency sense amongst its
workforce and people in order to motivate and influence them for moving forward towards its
goals.
Building the team
This stage is related to getting the appropriate people from the team by picking up a
mixture of knowledge, commitment and skills.
Getting the vision correct
Here, the company would need to correct its vision by considering not only its strategy
but also its objectives, creativity and emotional connect.
Communication
Capgemini would need to communicate with people related to changes and the
requirement of the same.
Getting things moving
In order to empower action and getting things moving, the company would need to
receive support, implement feedback and remove the hurdles in a constructive manner.
Emphasize on short term objectives

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More emphasis should be provided on dividing the long-term objective into small and
achievable short term objectives which is a good method of removing pressure and achieving
success.
Not giving up
Capgemini would need to ensure persistence as it is the key to the success in the long-
term.
Incorporating changes
The final stage would include the incorporation of changes. Reinforcement of changes is
quite important besides management of the same effectively.
Improvements in the transformation practices
Various improvements can be brought into the transformation practices of Capgemini. A
prerequisite to the success of digital transformation is by mastering the legacy. Long-term
success and improvements can be achieved by mastering the portfolio of application and the
quality of information technology demand management should be high. Analysing the maturity
of the application management of various clients would help the company in establishing
benchmarks for demand management across various Industries. This would help in mastering the
legacy which in turn would help in improving the application portfolio management which is
important for effective demand management of the company.
Measures for assessing the transformation practices
The various measures for assessing the transformation practices are as follows: