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Source : DRAUP
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Volvo – Account Deep Dive Analysis
December 2018
Source : DRAUP
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AGENDA
Volvo Overview
Highlights on Volvo overview
Last 5 years Revenue and R&D analysis
Revenue split by geography
Revenue split by business segment
Organization Structure
CXO’s and Executives
Rolodex04
Account Profile
Business & Financial Overview
Outsourcing Vendor Analysis
Globalization Footprint
Recommendations05
01
02
03
Source : DRAUP
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Company Overview – On November 2018, Volvo Trucks signed an agreement with Branney Kalk AS in Norway to provide its first commercial autonomous solution transporting limestone from an open pit mine to a nearby port
Revenue in USD Billion R&D spend in USD Billion
Volvo Group is one of the world’s leading
manufacturers of trucks, buses, construction
equipment and marine and industrial engines to
provide driving prosperity through transport solutions.
In addition to vehicles and machines, the Volvo Group’s
offering includes various types of financing solutions,
insurance, rental services, spare parts, preventive
maintenance, service agreements, assistance
services and IT services.
About Volvo
Note – DRAUP data curated from Volvo’s financial reports published annually and updated in December, 2018
Revenue (2017):USD 334.74 Billion
R&D Spend (2017):
USD 16.1 Billion
Headquarter:Gothenburg, Sweden
Year of Establishment:1927
Revenue vs R&D spend (2013 - 17)
272.62 282.94
312.51301.91
334.74
15.1 16.7 15.4 14.6 16.1
2013 2014 2015 2016 2017
Revenue CAGR
(2013 - 2017):5.27%
R&D CAGR
(2013 - 2017):1.62%
Vehicles75%
Services21%
Financial Services4%
Revenue share by segment (2017)
Employees (2017):~1,00,000
Revenue share by Geography (2017)
43%
25%
20%
7%
5%
Europe
NorthAmerica
Asia
Africa &Oceania
SouthAmerica
Source : DRAUP
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Volvo – Executive Leadership
Martin Lundstedt
President and Chief Executive Officer
Kerstin RenardExecutive Vice President Group Human
Resources
Andrea FuderExecutive Vice President Volvo Group Trucks
Purchasing
Sofia FrändbergExecutive Vice President Group Legal &
Compliance and General Counsel
Bruno Blin Executive Vice President Volvo Group,
President Renault Trucks
Claes NilssonExecutive Vice President Volvo Group,
President Volvo Trucks
Jan GuranderDeputy Chief Executive Officer
Melker Jernberg
Executive Vice President Volvo Group,
President Volvo Construction Equipment
Jan Ohlsson Executive Vice President Group Trucks
Operations
Joachim Rosenberg Executive Vice President Volvo Group
Chairman of UD Trucks
Martin Weissburg Executive Vice President Volvo Group and
President Mack Trucks
Lars Stenqvist Executive Vice President Group Trucks
Technology
Kina WilekeExecutive Vice President Group
Communication
Jan YtterbergExecutive Vice President Group and CFO
Note: The above analysis is based on the DRAUP’s Executive Module, updated in December, 2018.
Note: Executives mentioned above are part of Executive Leadership team as reported by the organization. Exhaustive list of all the executives will be available in Draup Platform
Source : DRAUP
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KEY STRATEGIC PRIORITIES: Core Business Initiatives, Ecosystem Partnerships & Organizational Restructuring
Core Business Initiatives
• On 11th July 2017, Volvo Penta acquired Seven Marine, the
Swedish company to broaden Volvo Penta’s technology
platform, offering a modular, cutting-edge solution, regardless of
the energy source to deliver the desired power in the water which
extends its scope of world-leading integrated propulsion systems.
Note: The above insights are curated through various strategic and tactical signals triggered in Draup Platform from news articles, journals and other similar sources in the last 2
years
• On 19th June 2018, Volvo appointed Jan Ytterberg, CFO and a new
member of the Volvo Group Executive Board for growing business
energy and transfers business insights into the corporate level.
• On 1st June 2018, Volvo appointed Martin Weissburg, President of Mack
Trucks and member of the Executive Board for the Volvo Group to
improve the profitability and competitiveness for the future.
• On 23rd February 2018, Volvo proposed Eric Elzvik, as new Board
member of AB Volvo for the Divisions Discrete Automation & Motion and
Automation Products.
Organisational Restructuring
Ecosystem Partnerships
• On 20th December 2018, Volvo Trucks signed an agreement with
Branney Kalk AS in Norway to provide its first commercial
autonomous solution transporting limestone by six autonomous
Volvo FH trucks on a five kilometer stretch through tunnels
between the mine itself and the crusher.
Source : DRAUP
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r
KEY STRATEGIC PRIORITIES: Focus on Emerging Technologies
Note: The above insights are curated through various strategic and tactical signals triggered in Draup Platform from news articles, journals and other similar sources in the last
1 year
Focus on Emerging Technologies
• On 28th June 2018, Volvo Trucks North America, together with FedEx and the North Carolina Turnpike Authority, announced the release of an
advanced driver assistance system (ADAS) technology to conduct on-highway truck platooning consisted of three trained, professional truck drivers in
Volvo VNL tractors, each pulling double 28-foot trailers as part of ongoing research collaboration.
• On 27th June 2018, Volvo Penta unveiled a hybrid concept for its IPS propulsion system to enable zero emission running for marine vessels which is the
electric-only mode allowing entry into environmentally sensitive zones, as well as offering enhanced onboard comfort and boat handling characteristics.
• On 16th June 2018, Volvo Penta revealed a pioneering self-docking yacht technology of the rapid technical development in the field of automation within
the Volvo Group.
• On 7th May 2018, Volvo Buses launched a new version of its all-electric bus called the Volvo 7900 Electric that provides better preconditions than ever to
switch to sustainable, quiet and emission-free public transport.
• On 13th September 2018, Volvo Trucks introduced a cloud-based service, Connected Safety, which allows Volvo trucks and Volvo cars to automatically
alert each other to hazardous traffic situations.
• On 16th December 2018, Volvo Group detected an emissions control component reducing its ability to convert nitrogen oxides (NOx) as efficiently as
intended, which in turn could cause the engines or vehicles to exceed emissions limits for NOx.
• On 8th June 2017, Volvo Trucks developed a new self-steering truck which is used to transport newly harvested sugar-cane is steered with great precision
through the fields in order to avoid damaging the young plants.
Source : DRAUP
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AGENDA
Details on Global Technology Footprint
Key buying locations
Region wise insights for global Technology centers – Headcount,
Activities and key products developed
Account Profile
Business & Financial Overview
Outsourcing Vendor Analysis
Globalization Footprint
Rolodex04
Recommendations05
01
02
03
Source : DRAUP
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Summary: Volvo – Technology Globalization Footprint
Key Buying Locations Bengaluru Area(India), Brussels Area(Belgium) Chile, Gent Area(Belgium), Gothenburg(Sweden) and Lyon
Area(France) are the key buying centers that are primarily involved in the development of Automotive Electrical
Components, development of assembly equipment, development and calibration of engine control software
Key Engagements
Some of the key activities are Development of plant models for different charging standards
Development and monitoring of the vehicle validation plan
Development of assembly equipment (fixtures, hand tools, assembly line, etc) in cooperation with tooling department
Monitor the calibration and inventory of test instruments
Functional test and Homologation test for lighting system and cleaning system
Key StakeholdersJonny Salo-Premmert
CIO at Volvo Penta
Note: Analysis is based on the news articles, journals and other similar sources updated in December, 2018
Lars StenqvistCTO at Volvo Car Group
Peter GranqvistCTO & Senior Vice President
Bogdan MincicCIO at Volvo Trucks
Source : DRAUP
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Global Technology Footprint of Volvo Corp
17Total Number of Technology Hotspots
14500 – 15000Total Number of Technology workforce
Installed
6Number of Buying Centers
Note: The represented data illustrates the number of centers by Geography and the bubble size is proportional to overall HC Installed in the area.
Note: Global Footprint Data curated by DRAUP and updated in December, 2018
Sweden has 41% of the total engineering workforce; Bengaluru Area(India), Brussels Area(Belgium), Chile, Gent Area(Belgium), Gothenburg(Sweden) and Lyon Area(France) are the key buying centers
Sweden
No. of Centers : 2
Head Count : 6K - 7K
France
No. of Centers : 1
Head Count : 2K - 3K
No. of Centers : 2
Head Count : 1K - 2K
USA
India
No. of Centers : 1
Head Count : 1K - 2K
Brazil
No. of Centers : 1
Head Count : 500 – 1K
Japan
No. of Centers : 1
Head Count : 500 - 1K
No. of Centers : 1
Head Count : 500 – 1K
Poland
No. of Centers : 2
Head Count : 200 – 300
Belgium
China
No. of Centers : 2
Head Count : 200 - 300
Mexico
No. of Centers : 1
Head Count : 50 – 100
Canada
No. of Centers : 1
Head Count : 50 - 100
Australia
No. of Centers : 1
Head Count : 50- 100
Chile
No. of Centers : 1
Head Count : 10- 50
Source : DRAUP
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Gothenburg, Sweden is the major Hub for Volvo
Note: Global Footprint Data curated by DRAUP and updated in December, 2018
Note: The represented data has been collected from Draup Proprietary Global Footprint Database updated as of December, 2018.
SATELLITE
HUB
OUTPOST
Brussels Area
Curitiba Area
Quebec
Beijing Area
Shanghai Area
Lyon Area
Bengaluru Area
Gothenburg
Washington D.C. Metro Area
North Carolina Area
Wroclaw, Lower Silesian District
Ciudad Lopez Mateos Area
Gent Area
Lund
Brisbane
Chile
Japan
Source : DRAUP
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Gothenburg, Sweden – Technology Center Deep Dive: Center Overview
Note: The above analysis is based on the DRAUP’s Executive Module, updated in December, 2018
Location
Gothenburg, Sweden
Technology Headcount
1400 – 1500 FTEs
Center Level
Hub; HQ
Average Salary Cost / FTE
350 K Swedish Krona / Annum
• Gothenburg, Sweden is primarily involved in the Function development and calibration of engine control
software.
• Simulations and analysis of vehicle dynamics as a part of Volvo vehicle product streams, both off-line analysis with
ADAMS/Car and real time simulations with VI Grade dynamic simulator.
• Develop the complete vehicle thermal modelling platform which includes integrated hardware and control models
of Battery, El motors, IC engine, cooling systems and climate systems.
• Development of plant models for different charging standards.
• Testing of software and calibration in cold and warm climes, high altitudes etc.
Top leaders Major Engineering Talent Profiles
Calibration
Engineer
Design
EngineerPeter Granqvist
CTO & Senior Vice President
Quality
EngineerLars Stenqvist
CTO at Volvo Car Group
Source : DRAUP
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Gothenburg, Sweden – Technology Center Deep Dive: Technology Leadership
Technology Leadership
14 Key Executives (Including CXO and VPs)
CXO
Michael Fleiss Vice President Vehicle Hardware
Johan Larsson Vice President, Indirect Material &
Services
Note: The above analysis is based on the DRAUP’s Executive Module, updated in December, 2018.
Note: Executives mentioned above are some of the key Technology Leaders in the organization and not exhaustive. Exhaustive list will be available in Draup Platform
Anders Tylman - Mikiewicz Vice President Consumer Digital
Hans Lindh Vice President Design Operation
Jan-Erik Larsson Vice president R&D China
operations
Lars StenqvistCTO at Volvo Car Group
Peter GranqvistCTO & Senior Vice President
VP
Ödgärd Andersson
Vice President Vehicle SW &
Electronics
Sven-Erik Svensson Vice President, Vehicle
Engineering
Andreas Eriksson Vice President AE Development
Engineer
Semeese Vice President Manufacturing
Engineering
Ebba Maria Thunberg Vice President Colour & Material
Design
Cecilia Larsson Vice President R&D
Magnus Leiner Vice President, Global
Procurement SW & Electronics
Source : DRAUP
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DETAILS
Globalization Technology Footprint (1/4)
Buying CentersLOCATIONTECHNOLOGY
HEADCOUNT
Note: Global Footprint data curated by DRAUP and updated in December, 2018. Technology Headcount includes research and product engineering talent
Gothenburg, Sweden 6000 – 6100
• Implementation of VHAL(Vehicle Hardware Abstraction Layer).
• Development and calibration of engine control software.
• Development of plant models for different charging standards.
Lyon Area, France 2500 – 3000
• Development of non metallic technology includes weathering and ageing, corrosion resistance, mechanical tests
functional fluids biomaterials and glazing polymers.
• Development and monitoring of the vehicle validation plan.
Bengaluru Area, India 1400 – 1500• Development of Automotive Electrical Components.
• Define milestones for Vehicle Connectivity software test plan.
Greensboro/Winston-
Salem, North Carolina
Area, United States
1200 – 1250
• Define layout inspections on parts and tooling used in fabrication and assembly.
• Develop motion control algorithms.
• Implementation and industrialization of wiring harness designs.
Curitiba Area, Brazil 800 – 1000
• Implementation of documents such as drawings, technical regulations, CAD models, installation documentation and
product structure.
• Development of both electrical and mechanical designs of harnesses taking interfaces requirements, physical constraints
and final product dynamics aspects.
Source : DRAUP
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DETAILS
Globalization Technology Footprint (2/4)
Buying CentersLOCATIONTECHNOLOGY
HEADCOUNT
Note: Global Footprint data curated by DRAUP and updated in December, 2018. Technology Headcount includes research and product engineering talent
Japan 700 – 800 • Supervision of activities for handling of ELV Recycle Law-Related System.
• Investigation of vehicle incidents such as vehicle fire, vehicle accidents.
Wroclaw, Lower Silesian
District, Poland500 – 600
• Construction of design buses and quickly solve problems occurring on the production line.
• Troubleshooting of complex problems in lab/rig and truck environment.
Washington D.C. Metro
Area, United States400 – 500
• Specification of corrosion protection including galvanizing and e-coat, paint priming, paint, sealants, anti- vibration
materials, insulation, heat shielding, grommets, plugs, baffles etc.
• Design tools and fixtures to support manufacturing cells.
Shanghai Area, China 150 – 200
• Functional test and Homologation test for lighting system and cleaning system, including road test and wind tunnel test.
• Define high voltage system related testing( commissioning test leader, trouble shooting, electric drive testing, hot/cold
expedition coordinator, HV safety certification...)
• Design of Body & comfort electronics.
Gent Area, Belgium 150 – 200 • Development and implementation of a bumper assembly line with 4000 sqm and line speed of 30JPH.
• Development of assembly equipment (fixtures, hand tools, assembly line, etc) in cooperation with tooling department.
Source : DRAUP
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DETAILS
Globalization Technology Footprint (3/4)
Buying CentersLOCATIONTECHNOLOGY
HEADCOUNT
Note: Global Footprint data curated by DRAUP and updated in December, 2018. Technology Headcount includes research and product engineering talent
Brussels Area, Belgium 100 – 150 • Define production techniques within a certain part of the assembly plant.
• Monitor the calibration and inventory of test instruments.
Ciudad Lopez Mateos
Area, Mexico50 – 80
• Inspections of tools and services for analysis, such as Care Track, Volvo oil analysis and MATRIS analysis, to monitor
your machine.
Beijing Area, China 50 – 70
• Define Vehicle nameplate and Engine code punching management on FE and Renault D models.
• Design fabrication engineering Process and Layout to achieve sound LOB, line investment, jig & fixture drawing and
improvement.
Quebec, Canada 50 – 60
• Diagonization and repair of Electrical, HVAC, Suspension, Pneumatic and Brake Systems.
• Demonstration of the vehicle station by station according to the industrial swings.
• Development of the homologation program for new vehicles.
Brisbane, Australia 50 – 60
• Design Volvo tools which offers Genuine Volvo Parts that minimise disruption, most profitable and to maintain the truck
in optimal condition.
• Design of Automotive exhaust components.
Source : DRAUP
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DETAILS
Globalization Technology Footprint (4/4)
Buying CentersLOCATIONTECHNOLOGY
HEADCOUNT
Note: Global Footprint data curated by DRAUP and updated in December, 2018. Technology Headcount includes research and product engineering talent
Lund, Sweden 30 – 40
• Define Active Safety & Vehicle Dynamic Functions with cloud based safety systems and automated driving.
• Support the vehicle fleet with fault tracing.
• Development of a model for real-time routing for electric delivery trucks with a solution method such as dynamic
programming or another suitable approach.
Chile 10 – 20• Design of tools to drive up productivity and profitability in urban fleets and drive down the emission of pollutants.
• Development of exclusive and innovative methodology based on the reality and needs of truck drivers.
Source : DRAUP
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AGENDA
Outsourcing Vendor’s deals analysis
Total headcount outsourced to service providers
Key vendors working with Volvo
Key Opportunity areas to target
Account Profile
Business & Financial Overview
Outsourcing Vendor Analysis
Globalization Footprint
Rolodex04
Recommendations05
01
02
03
Source : DRAUP
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Summary: Technology Services Outsourcing
Key partners
Key Activities
PES is highly outsourced segment with 75% of the total outsourcing size
Major workloads across PES are around the below listed areas Development of application software for ECU (Electronic Control Unit) and BBM (Body Builder Module) with new architecture
(AUTOSAR) of the trucks
Development of software for an ECU (Electronic Control Unit) HIOM (Hybrid Input Output Module)
Design and manufacturing of custom HYDRAULIC CYLINDERS such as Double Acting, Single Acting and Truck hydraulics
Design of Automotive exhaust components
Design and Development of Rear Heat Shield under muffler
Note: Analysis is based on the news articles, journals and other similar sources updated in December, 2018
Key Opportunity Areas Vendors should target on Electromobility and Automation technology related engagements with Volvo
AF Group is the major vendor for Volvo in Product Engineering Services Segment which are involved in the Design of
HVAC for Buses, Design of Tools for Heavy Vehicles Assembly Line
Source : DRAUP
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Vendor Analysis – AF Group is the major outsourcing partner for Volvo
5000 – 5500Workforce split across
Outsourcing Partners27 Active Outsourcing Partners
Note - Above analysis is based on the DRAUP’s proprietary Outsourcing module, updated in December, 2018. The above Outsourcing data are only represented for Volvo.
Note - ADM – Application Development & Maintenance, IMS – Infrastructure Management Services, CSI – Consulting & System Integration, PES –Product Engineering Services
Top Outsourcing Partners
Bengaluru Area, India
Chennai Area, India
Gothenburg, Sweden
Greensboro/Winston-Salem, North
Carolina Area, United States
Kreisfreie Stadt Aachen Area, Germany
Lyon Area, France
Mumbai Area, India
Mysuru Area, India
National Capital Region, India
Pune Area, India
Stuttgart Area, Germany
Uddevalla, Sweden
Bengaluru Area, India
Brussels Area, Belgium
Chile
Gent Area, Belgium
Gothenburg, Sweden
Lyon Area, France
Key Buying LocationsKey Provider Locations Outsourcing Intensity by Sub vertical
PES75%
IMS14%
ADM6%
CSI5%
Source : DRAUP
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Key Vendor Engagements Snapshot (1/3)
Note - Above analysis is based on the DRAUP’s proprietary Outsourcing module, updated in December, 2018.Outsourcing details mentioned above are only some of the ongoing projects and not exhaustive.
Note – Outsourcing analysis is based on curation and analysis of deals data from various secondary sources followed by computation through Machine Learning models and manual effort. Deals are then
tagged to Draup’s Predefined Sub service segments and HC estimation is a result of estimation models based on aggregation of data collected from various secondary sources
PES :
• Design of HVAC for Buses.
• Design of Tools for Heavy Vehicles Assembly Line.
• Verification and Analysis of Electric Propulsion System for Cars.
• Development of simulated heat testing methodology/equipment.
• Design of Components used in Wheel Suspension and Chassis.
• Development of EGR Pipes and Mixers in Trucks.
PES, 100%
Split of Workforce by Sub Segment
Key Delivery Locations
Sweden(Gothenburg,
Uddevalla)
IMS :
• Configuration and management of standard Linux file system (VMDK, NFS, ISCSI).
• Administration of Juniper NSM, Juniper SRX/ISG(Firewall),Pulse Secure(SSLVPN),Blue Coat Proxy, AS Load Balancer, Palo Alto, Cisco
switched and routers devices.
CSI :
• Administration of SAP Business Objects and Business Intelligence.
• Define SAP enterprise Business Intelligence Business object tool used to generate strategic reports for decision making.
ADM :
• Development of Project management internal application.
• Development of Site provisioning tool used for order management.
PES :
• Analysis of chassis structure and vehicle variant combination through Volvo PDM tools.
• Validation of the functionalities in instrument cluster (IC).
IMS, 81% CSI, 11%
ADM, 6% PES, 2%
Split of Workforce by Sub Segment
Key Delivery Locations
India(Bengaluru Area,
Chennai Area, National
Capital Region)
Source : DRAUP
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Key Vendor Engagements Snapshot (2/3)
PES :
• Development of Seat recliner concept development.
• Creation of parametric Master sections over various BIW area, Door Packaging, Latch rod and Bowden cable proposals and packaging,
Glass guide rails and glass adapter, Dynamic seals over cars(Primary seal, Secondary seal, Margin seal, Waist Seals concept brackets for
Seat mountings.
PES, 100%
Split of Workforce by Sub Segment
Key Delivery Locations
Gothenburg, Sweden
Note - Above analysis is based on the DRAUP’s proprietary Outsourcing module, updated in December, 2018.Outsourcing details mentioned above are only some of the ongoing projects and not exhaustive.
Note – Outsourcing analysis is based on curation and analysis of deals data from various secondary sources followed by computation through Machine Learning models and manual effort. Deals are then
tagged to Draup’s Predefined Sub service segments and HC estimation is a result of estimation models based on aggregation of data collected from various secondary sources
PES :
• Design and Development of Front Suspension and related components.
• Design and Development of Vehicle wiring Harness.
• Fatigue Analysis of complete Chassis and Body Structure.
PES, 100%
Split of Workforce by Sub Segment
Key Delivery Locations
Bengaluru Area, India,
Gothenburg, Sweden
PES :
• Development of new feature for Instrument Cluster.
• Development of Embedded control units.
PES, 100%
Split of Workforce by Sub Segment
Key Delivery Locations
Lyon Area, France,
Gothenburg, Sweden,
Stuttgart Area, Germany
Source : DRAUP
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Key Vendor Engagements Snapshot (3/3)
Note - Above analysis is based on the DRAUP’s proprietary Outsourcing module, updated in December, 2018.Outsourcing details mentioned above are only some of the ongoing projects and not exhaustive.
Note – Outsourcing analysis is based on curation and analysis of deals data from various secondary sources followed by computation through Machine Learning models and manual effort. Deals are then
tagged to Draup’s Predefined Sub service segments and HC estimation is a result of estimation models based on aggregation of data collected from various secondary sources
PES :
• Development of Powertrain and Crankshaft.
• Implantation of additional hydrostatic System.
PES, 100%
Split of Workforce by Sub Segment
Key Delivery Locations
Gothenburg, Sweden,
Lyon Area, France
PES :
• Performance and Consumption Simulation of Hybrid and Electric Vehicles.
• Development of 3D Design.
• Production of Models and Drawings for Brackets, Hose Routing, Hydraulic Piping.
PES, 100%
Split of Workforce by Sub Segment
Key Delivery Locations
Lyon Area, France,
Gothenburg, Sweden
PES :
• Development of Black Trim components.
PES, 100%
Split of Workforce by Sub Segment
Key Delivery Locations
Gothenburg, Sweden
Source : DRAUP
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AGENDA
Key Technology Stakeholders
Key Technology stakeholders & Leadership
Account Profile
Business & Financial Overview
Outsourcing Vendor Analysis
Globalization Footprint
Rolodex04
Recommendations05
01
02
03
Source : DRAUP
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Volvo – Technology Leadership
Maximilian Missoni Vice President Exterior Design
Ödgärd Andersson Vice President Vehicle SW & Electronics
Linn Fortgens VP, Head of Investor Relations at Volvo Car
Corporation
Semeese (L.) Vice President Manufacturing Engineering
Michael Fleiss Vice President Vehicle Hardware
Johan Larsson Vice President, Global Procurement - Indirect
Material & Services
Jan-Erik Larsson Vice president R&D China operations
Anders Tylman-Mikiewicz Vice President Consumer Digital
Kajsa Dahlberg Gardiner VP Digital Delivery Care by Volvo
Note: The above analysis is based on the DRAUP’s Executive Module, updated in December, 2018.
Note: Executives mentioned above are some of the key Technology Leaders in the organization and not exhaustive. Exhaustive list will be available in Draup Platform
Frej Bergnehr Vice President of Global HR Delivery &
Development
Mats Andersson Vice President, Propulsion Power Systems
Engineering
Ebba Maria Thunberg Vice President Colour & Material Design
Lars Stenqvist
CTO at Volvo Group
Source : DRAUP
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AGENDA
Key Opportunities
Electromobility
Automation
Yacht Technology
Connected Cars
LiDAR Technology
Account Profile
Business & Financial Overview
Outsourcing Vendor Analysis
Globalization Footprint
Rolodex04
Recommendations05
01
02
03
Source : DRAUP
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By analysing Volvo focus, DRAUP has identified the following key opportunity areas (1/2)
Strategic Key Opportunity Segments
Note - Above analysis is based on the DRAUP’s proprietary services module, updated in December, 2018.
Automation
• In future Volvo decides to use the concept of
Platooning that reduce CO2 emissions and
saves up to 15% of truck’s fuel
consumption involving Volvo trucks together
with trucks from other brands.
• In case of Brazilian sugar cane farmer’s
crops, using an automated function the truck
follows the harvesters footsteps saving
thousand of dollars and the driver accelerates
and brakes is supported by automatic
steering.
Electromobility
• Volvo presently focuses on Electric
vehicles will significantly lower carbon
emissions, noise and other emissions
and to be the preferred choice for most
applications.
• In October 2018, Volvo Buses launched
a new version of its all-electric bus, the
Volvo 7900 Electric that will be the base
for the electrification of trucks, construction
equipment and other industrial and marine
applications.
• Volvo is already in the future with its
offering of hybrid buses, fully electric
buses and complete transport
solutions including charging
infrastructure.
Yacht Technology
• Volvo currently aimed at autonomous
technology to make waves in the yachting
world.
• Volvo Penta unveiled the self-docking system
where a 68 ft yacht slipped between two of
Volvo's Ocean Race 65 racing vessels that
allows sensors and computer controls capable
of changing wind and water conditions,
tweaking power and steering of Volvo's IPS
drive to ensure the yacht is berthed safely.
• In future the autonomous system will be
designed in such a way that can be paused at
any time to hold the yacht in position.
Source : DRAUP
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By analysing Volvo focus, DRAUP has identified the following key opportunity areas (2/2)
Strategic Key Opportunity Segments
Note - Above analysis is based on the DRAUP’s proprietary services module, updated in December, 2018.
LiDAR Technology
• Volvo Cars announces partnership with
Luminar and introduced LiDAR a sensor
technology that can detect objects over a
range of up to 250 meters.
• LiDAR technology includes a type of sensor
that uses pulsed laser signals to detect
objects and is a crucial element in creating
safe autonomous vehicles.
• Volvo in future aims to create safe
autonomous cars by using autonomous
technology.
Connected Cars
• Volvo is now focusing on highly scalable and
global platform called Connected Vehicles
Cloud to provide digital vehicle services and
connected services.
• Ericsson and Volvo signed a five-year
connected cars deal offering Cloud services to
the vehicles.
• This platform enables wide range of features in
the field of telematics, infotainment,
navigation, automation, and fleet
management by removing complexity in areas
such as data legislation and storage
management and improving services latency.
Source : DRAUP
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Source : DRAUP
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ADM, 64%
ADM, 100%
ADM, 100%
ADM, 32%
ADM, 55%
ADM, 42%
CSI, 17%
CSI, 63%
CSI, 45%
CSI, 58%
IMS, 36%
PES, 100%
PES, 100%
PES, 100%
PES, 100%
PES, 100%
PES, 83%
PES, 100%
PES, 100%
PES, 100%
PES, 5%
PES, 100%
AXISCADES
Tarang Software Technologies
GlobalEdge Software
Automotive Robotics
L&T TS
Wipro
KPIT
Infosys
CGI Group Inc.
TCS
Etteplan
FEV
Tech Mahindra
Mindtree
Capgemini
Assystem
Note - Above analysis is based on the DRAUP’s proprietary Outsourcing module, updated in December, 2018.
Appendix: Service providers having outsourcing workforce of less than 3% of Volvo total outsourcing size
Source : DRAUP
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Appendix: Inclusions and Definitions of “Sub – Service Segments”
Note - Above analysis is based on the DRAUP’s proprietary services module, updated in December, 2018.
Application Development & Maintenance (ADM)
Application DevelopmentInvolves Defining, designing, and building applications tailored to meet client business requirements.
Services include Solution development, application whitelisting, application control, application security,
risk mitigation
Testing Services
Software testing involves the execution of a software component or system component and evaluate it
against one or more properties of interest to ensure its smooth functioning and capability of seamless
integration across various technologies. Services include Software testing, Mobile testing, Cloud based
testing, functional testing, engineering testing, user acceptance testing (UAT), non-functional testing,
Model testing
Application ModernizationModernization services help modernize legacy systems to enhance flexibility, mitigate risk, minimize
disruption, and lower costs. Application Rationalization, Re-hosting, application re-engineering, Field
Remediation, Data migration, Re-structuring of applications
Application Maintenance
Application Maintenance helps clients with proper maintenance of the existing applications across areas
of application operations management, support, updation and availability. Services include Pro-active
maintenance, TCO Reduction, Alignment with industry standards, corrective maintenance, SLA
Management, Knowledge management
Custom Application Development Custom build application development services for an end client
Mobile ServicesUse of Mobile medium by enterprises through building innovation mobile solutions to target customers by
offering bundled services. End-to-end solutions and services to help companies capture insight from
mobile devices to fuel innovation.
Product Engineering Services (PES)
Product Engineering ServicesServices to design and deliver a new wave of intelligent products with an aim to undergo process of
innovation, re-engineering, process optimization, localization, customization and cost rationalization
Source : DRAUP
31
31
Appendix: Inclusions and Definitions of “Sub – Service Segments”
Note - Above analysis is based on the DRAUP’s proprietary services module, updated in December, 2018.
Consulting & System Integration (CSI)
Advisory Services
Consulting and advisory services that enables an organization to across business process transformation
to improve performance, increase effectiveness, reduce costs and improve resilience. Services mainly
involve business advisory, business and functional transformation, IT consulting and risk and compliance
services
Package Software ConsultingIT Consulting and Advisory services across enterprise level package software solutions. Services to
evaluate which package solutions would solve an enterprise wide work area and also evaluating its
integration capabilities across the current application stack used by an organization
System Integration Services
Integration, implementation or deployment of a software solution/hardware for an enterprise and ensuring
its proper functioning in line with its integration with various other solutions or hardware currently in use
by the enterprise. Services include Cloud Integration, Data Integration, EAI (enterprise application
integration), Integrated Communication, Network Integration, Integrated Security Software, Service-
oriented architecture, etc.
Application Portfolio Optimization
Application Portfolio Optimization services help companies ensure that their portfolio of IT projects,
applications and infrastructure are providing cost-effective benefits to the organization. Aim is to identify
disparate applications and ensure ways to integrate them into a core enterprise solution. Services include
mapping application to business functions and its importance, cost management analysis, dependency
mapping of an application, etc.
Source : DRAUP
32
32
Appendix: Inclusions and Definitions of “Sub – Service Segments”
Note - Above analysis is based on the DRAUP’s proprietary services module, updated in December, 2018.
Infrastructure Management Services (IMS)
Server, Network, Desktop
Management
IT Infrastructure Management Services (IMS) offers a suite of reliable, responsive, flexible and proven
infrastructure services and solutions that deliver differentiated value across management of an enterprise
hardware components such as Servers, Network, Desktops. Its aims to maintain and manage a client's IT
applications and systems and ensure 24/7 availability
Datacenter ManagementDesign and management of data centers across heterogeneous platforms. Services include Server / OS
management, Database Management, Middleware management, Storage and Backup management,
Production Operations, Mainframe Services, Hosting, etc.
Disaster ManagementUse of services and solutions to ensure the presence of a holistic, proactive and technology-driven
strategy for multi-disaster management. Services can be across enterprise data, backup, IT systems, Real
time monitoring of IT solutions and hardware, etc.
Remote Infrastructure ManagementRemotely managing information technology (IT) infrastructure such as workstations (desktops, laptops,
notebooks, etc.), servers, network devices, storage devices, IT security devices, etc. of a company
High End Technical SupportHigh level product and services support provided by qualified engineers. Services Tech support services,
Remote Diagnostic Services, Set-up and Configuration, Patch Management, Service pack and Database
Upgrades, Warranty Management/ RMA, Engineer Dispatch Management
Source : DRAUP
33
33
Appendix: Inclusions and Definitions of “Sub – Service Segments”
Note - Above analysis is based on the DRAUP’s proprietary services module, updated in December, 2018.
Reporting & Analytics
Reporting & DashboardApplications enabling tracking and monitoring the health of an organization or department by reporting
on certain KPIs, business metrics, and analytics. Reporting & dashboards are majorly used to
summarize information thereby providing a glance into enterprise's business performance
BI / Analytics
BI / Analytics encompasses a wide variety of tools, applications and methodologies that enable
organizations to collect data from internal systems and external sources, prepare it for analysis, develop
and run queries against the data. It enables discovery, interpretation, and communication of meaningful
patterns in data to help relevant stakeholders to make more informed business decisions.
Data QualityData Quality services enables delivery of clean, trusted data to ensure enterprises meet their projects
and business objectives. Such applications and services enable effective data extraction, transformation
and loading along with superior data management.
Digital Services
SocialEnd-to-end solutions and services to help companies capture insight from social media engagements to
fuel innovation.
Advanced AnalyticsHigh-end Advance Analytics solutions being leveraged which enable an organization to run analysis on
their customer data and enables Predictive and Prescriptive analysis. Such solutions can be SAS
Analytics, SAP, etc.
Internet-of-Things (IoT)Solutions and platforms which enable an enterprise to transfer and run data over a network through web
of inter-connected devices and technologies such as mobile, sensors, database, CRM etc.
Machine Learning (ML) / Cognitive
Computing (CC) / Artificial
Intelligence (AI)
Use of Artificial Intelligence solutions and services by an enterprise solving a particular business function.
Example might be use of IBM Watson by an enterprise. Also includes Enterprises leveraging solutions
which studies various patterns and computational learning and processes a particular task based on the
identification of a particular pattern. Enables a particular task to be done without any human intervention
Robotics Process Automation (RPA)
Robotic process automation (RPA) is the application of technology that allows employees in a company
to configure computer software or a “robot” to capture and interpret existing applications for processing a
transaction, manipulating data, triggering responses and communicating with other digital systems
automatically
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