2010 Analyst DayChicago, June 2 & 3
2010 Analyst DayChicago, June 2 & 3
Paul Spence
Global Service Lines: Push for Growth
2
Together. Free your energies 2010 Capgemini Analyst Day
Detailed process to select the right priorities
2
Smart Energy Services
Testing
ALS
Market Momentum High GrowthLow Growth
Com
plet
enes
s of
Offe
r
Strong
Weak
Invest NowLow Potential Contender Strong Potential
Enterprise Mobility
ITS - Unified Comms
Green IT
Security
ITS - Virtualization & Clouds
Business Info Mgmt
Large bubbles indicate larger market size
CTP
Crescent
X
XX
X
3
Together. Free your energies 2010 Capgemini Analyst Day
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 un ified global capability
4
Together. Free your energies 2010 Capgemini Analyst Day
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
2010 Analyst DayChicago, June 2 & 3
2010 Analyst DayChicago, June 2 & 3
Nicolas Dufourcq
BaU Lean Supply Chain Update for Tech Day
6
Together. Free your energies 2010 Capgemini Analyst Day
Lean is essentially about “eliminating waste” and focuses on delivering maximum value to the customer
Lean’s origins lie in the Toyota production system developed by Taiichi Ohno in the 1950s
‘Lean Thinking’ has successfully transformed many co mpanies,giving them a greater focus on performance and cust omer requirements
‘Lean Thinking’ has successfully transformed many co mpanies,giving them a greater focus on performance and cust omer requirements
C. R. Allen, 1919C. R. Allen, 1919C. R. Allen, 1919C. R. Allen, 1919
T. OhnoT. OhnoT. OhnoT. Ohno
TWI, 1940TWI, 1940TWI, 1940TWI, 1940
S. ShingoS. ShingoS. ShingoS. Shingo
MMééthodesthodesjaponaisesjaponaisesMMééthodesthodesjaponaisesjaponaises
TPS HouseTPS House, Cho, 70, Cho, 70’’ssTPS HouseTPS House, Cho, 70, Cho, 70’’ss
S. Toyoda, 1890S. Toyoda, 1890’’ssS. Toyoda, 1890S. Toyoda, 1890’’ss
E. DemingE. DemingE. DemingE. Deming
J. JuranJ. JuranJ. JuranJ. Juran
K. Ishikawa, 60K. Ishikawa, 60’’ssK. Ishikawa, 60K. Ishikawa, 60’’ss
J. Womack & D. JonesJ. Womack & D. JonesJ. Womack & D. JonesJ. Womack & D. Jones
«« LeanLean »»
Jidoka
Jidoka
QualitQualit éé
JITJITKaizenKaizen
C. R. Allen, 1919C. R. Allen, 1919C. R. Allen, 1919C. R. Allen, 1919
T. OhnoT. OhnoT. OhnoT. Ohno
TWI, 1940TWI, 1940TWI, 1940TWI, 1940
S. ShingoS. ShingoS. ShingoS. Shingo
MMééthodesthodesjaponaisesjaponaisesMMééthodesthodesjaponaisesjaponaises
TPS HouseTPS House, Cho, 70, Cho, 70’’ssTPS HouseTPS House, Cho, 70, Cho, 70’’ss
S. Toyoda, 1890S. Toyoda, 1890’’ssS. Toyoda, 1890S. Toyoda, 1890’’ss
E. DemingE. DemingE. DemingE. Deming
J. JuranJ. JuranJ. JuranJ. Juran
K. Ishikawa, 60K. Ishikawa, 60’’ssK. Ishikawa, 60K. Ishikawa, 60’’ss
J. Womack & D. JonesJ. Womack & D. JonesJ. Womack & D. JonesJ. Womack & D. Jones
«« LeanLean »»
Jidoka
Jidoka
QualitQualit éé
JITJITKaizenKaizen
The five principles of Lean
1. Define what is of value to the customer
2. Create a continuous flow of value to the customer, eliminate waste and complexity
3. Link the flow of value directly to customer demand
4. Empower employees to manage the process, and make them accountable for improvement
5. Maintain a strong focus on continuous improvement
Waste is ‘anything that consumes time & resources, but does not contribute to satisfying customer needs, or something that the cu stomer will not pay for’
Waste is ‘anything that consumes time & resources, but does not contribute to satisfying customer needs, or something that the cu stomer will not pay for’
7
Together. Free your energies 2010 Capgemini Analyst Day
Waiting for previous processes to finish. Waiting for material to arrive.
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.
Moving parts from one location to another without adding value.
Waiting
Over Production
Rework
Motion
Over Processing
Inventory
Transportation
Toyota identified 7 Wastes, which are relevant to most business environments
The identification and elimination of waste is fund amental to Lean – reducing costs and increasing profit. Other benefits are de rived from waste elimination…
The identification and elimination of waste is fund amental to Lean – reducing costs and increasing profit. Other benefits are de rived from waste elimination…
Toyota Examples�Testing team waiting for code to arrive
�Unassigned capacity between projects
�Waiting for responses from offshore teams
�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
�Meeting in different sites
�Multiple handoff in ticket management
Service Examples
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Together. Free your energies 2010 Capgemini Analyst Day
Lean is potentially a powerful change process
Lean means:1. A new way of designing and implementing
standards and methods2. A major change in the way we work in the field
and with our clients
Findings in engagements
Improvementactions
BU MgmtDelivery managers
Lean CA
Continuous improvement
Sta
ndar
d w
ays
of
wor
king
Lean
beh
avio
urs
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
9
Together. Free your energies 2010 Capgemini Analyst Day
BeLean® unlocks a new entrepreneurial spirit withbroad benefits
A performance-driven company with continuous improv ement behaviours consistent with our DNA
A performance-driven company with continuous improv ement behaviours consistent with our DNA
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-to-
day performance coaching� More ingrained performance culture in the
field from bottom-up� Clearer rallying point : “BeLean!”
10
Together. Free your energies 2010 Capgemini Analyst Day
We will apply BeLean® to the 4 main categories of business model in the Group
� BPO� IM� ALS (AO, TS+, Frames)� Testing
� ERPs inst/roll-out (SAP, Oracle, MS)
� Domain « template solution » (Crescent, CTP/Mobistar…)
� BI, Agile SOA/CSD � Responsibility business
Run
Transform
Established
In Progress
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Together. Free your energies 2010 Capgemini Analyst Day
2010 Programme overview
2010 2011April May June July August September October November December …
Wave 1 Wave 2 Wave 3
ALS
SAP
xx
(UK) May to Aug 21st
UK Cluster 1 UK Cluster 2
May 26th to Aug 16th
Mar 23rd to Jul 12th
Mar 23rd to Jul 12th
Mar 23rd to Jul 12th
Apr 10th to Jul 26th
Jul10th to Oct 21th
Oct10th to Jan 21th
Jun to Sept 1th
Sept 10 th to Dec 22nd
xx
xx
xx
x
xx
BootcampApr 12 th/16th
BootcampApr 12 th/16th
xxI
xx
xx
(DACH) May to Aug 21st
(DACH) May to Aug 21st
AO
(US) May to Aug 21st
(US) May to Aug 21st
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Together. Free your energies 2010 Capgemini Analyst Day
Focus Example findings
Inefficient resource on-boarding
10% productivity loss due to 23+ days delay in on-boarding
Offshore resource utilization 28% idle time for offshore resources
Low use of rightshoring Only 19% FTEs offshore
Manual testing70% of test steps could be automated for Regression and Negative testing
Missed CR revenue 36 CRs (worth €50K) unbilled to client in current phase
Re-use of standard tools
~3 days spent by 30% of project team members creating templates for project use
Focus Example findings
Inefficient resource on-boarding
10% productivity loss due to 23+ days delay in on-boarding
Offshore resource utilization 28% idle time for offshore resources
Low use of rightshoring Only 19% FTEs offshore
Manual testing70% of test steps could be automated for Regression and Negative testing
Missed CR revenue 36 CRs (worth €50K) unbilled to client in current phase
Re-use of standard tools
~3 days spent by 30% of project team members creating templates for project use
Our first Lean pilots in AO, ALS & Package deployme nt demonstrated that significant capacity release is
achievable in our business by adopting Lean princip les
Focus Example findings
Root Cause Analysis 0% proactive analysis on P3 and P4 incidents
Incident Management 20% of tickets return to user for more information
Change management 14 duplicate entries of data across 4 systems for a client CR
Change Management
100% of non-financial data fixes require same approval as full system deployment
Time Management 100% of support staff spend 1hr/week ensuring that data in Clarity and DTX match
Transition Management
6.5 days per month spent by Transition managers chasing project managers for plans/documentation
Focus Example findings
Root Cause Analysis 0% proactive analysis on P3 and P4 incidents
Incident Management 20% of tickets return to user for more information
Change management 14 duplicate entries of data across 4 systems for a client CR
Change Management
100% of non-financial data fixes require same approval as full system deployment
Time Management 100% of support staff spend 1hr/week ensuring that data in Clarity and DTX match
Transition Management
6.5 days per month spent by Transition managers chasing project managers for plans/documentation
� Pilots proved that significant capacity release is possible through the Lean approach
� At December ASEs, SMEsconfirm that over 50% of pilot findings are scalable
� Sustainability is achieved by changing behaviours and installing robust performance management systems
13
Together. Free your energies 2010 Capgemini Analyst Day
12 Month FTE capacity saving
Right first time (Offshore)
Root Cause Analysis & FMA (Offshore)
Knowledge Management (Offshore)
0.15
1.4
0.4
Root Cause Analysis & FMA (Onshore Service Desk)
1
Knowledge Transfer (On & Offshore)
TBD
Cashable
Re-investmen
t of capacity
into account
Opportunity Area Potential benefits
Total 3.65 FTE
% Capacity Release:
13.5%* out of 27FTE
in scope
Other solution activities (Onshore service desk)
0.7*
0% Scalable
100% Scalable
Pilot themes
Theme is only local
Don’t know
% Potential benefit for AO SupportBenefits (AO Support)
by end 2011
Capacity Release (FTEs)
% Capacity Release *
7.6
16.0%
6.8
33.0Problem Mgt
Knowledge Mgt (Incident)
Shift left (Incident) 3.4
Opportunity Area
Potential Benefits
(Hours per day)
Total Capacity Release
57.2
2.4
2.3DTX/Clarity - NOE Lite
DTX/Clarity - Plan Mgt
Application release window
0.7
Testing environment 4.1
2.6
0.4Test team KT
Change Mgt
1.5Batching of data fixes
Current FTEs 47.5
Cost/benefit – 36% ROI in Year 1
Str eams
1%
1 0%
1 .5FTE
6%
21%
3 FTE
11% 1.5 FTE 27% 3 FTE+
Improve employee w orking condi tions
Cr eate a mor e f lexible o rganisa t ionBreak the silos (horizontal tr aining)Strengthen employee ski lls (vertical tra ining )
Crea te a more effective organisationMonito r and control pro duction tightly Improve project govern ance
Implement best prac tices and rationa lise production too ls
Standardise and propagate best practices amongthe teamsRational ise the produ ction tools Revise the reso urce estimatio n models
Improve client relations to reduce reworkincluding improvement of the bi ll ing process
+ +
Mo ra le
ARE A PO TE NTIAL BE NEFI TS
TOTAL (% Benefits) +O ps MgtOps M gt
HighLow
2
6
8
3
7
4
5
1
S TRE AMS
Already decided & planned to
rem ove 10 FTE in the next 5 week s
(according to the training sessions)
Managem en t
O pe ra t ion s
O pe rat ion s
Benefits summary pilot 1Benefits summary pilot 1
Benefits summary pilot 2Benefits summary pilot 2
Benefits summary pilot 3Benefits summary pilot 3
Pilot teams and technical experts were broughttogether, and confirmed that over 50% of the
pilot findings were common/ scalable
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Together. Free your energies 2010 Capgemini Analyst Day
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
2010 Analyst DayChicago, June 2 & 3
2010 Analyst DayChicago, June 2 & 3
Salil Parekh
The next frontier:Offshore for growth
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Together. Free your energies 2010 Capgemini Analyst Day
� Serve 900 clients from offshore
� Deploy 32,000professionals in low-cost delivery centers
� Growing at 32% offshore penetration
INDIA
20,50022,00025,000
EASTERN EUROPE
3,7004,1004,200
CHINA
1,0001,2001,200
LATIN AMERICA
1,2001,8502,300
MOROCCO
220260260
Red 2008 headcountBlack 2009 headcount Blue 2010 headcount (est.)
PHILIPPINES
Offshore has becomea core engine of our business
NEW!
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Together. Free your energies 2010 Capgemini Analyst Day
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
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Together. Free your energies 2010 Capgemini Analyst Day
� 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
The next step of our transformation attempts to address these issues
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Together. Free your energies 2010 Capgemini Analyst Day
Beyond price, we are managing customer-focused innovation in three ways:
LEAN
AGILEVIRTUALREALITY
If the price is right…
…then, if we demonstrate a world-beating solution…
…we earn the opportunity tooffer a winning deal
Price is a rite of passage, but customers also want deep expertise and innovative solutions
POSITION COMPETITIVELY
PRICEPOINT
COMPELLINGSOLUTION
VALUE& DEAL
DEPTH OF DOMAIN EXPERTISE AS CRITICAL AS SCALE
CoEs SOLUTION AREASCOMMUNITIES
VISUALISATION
CLOUDCOMPUTING
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Together. Free your energies 2010 Capgemini Analyst Day
Offshore distributes local innovations globally and helps break into new markets
OFFSHORE GROWSOFFSHORE 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.
!
!!
!
!!
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
21
Together. Free your energies 2010 Capgemini Analyst Day
A sustainable Capgemini of the future will be built on a clear appreciation of cultures
FUTURE SUCCESS REQUIRES CULTURAL AWARENESS AND COMM ITMENT
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?
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
22
Together. Free your energies 2010 Capgemini Analyst Day
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
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
We are driving the transformation via a set of initiatives for growth and margin
GROWTH
CUSTOMER MARKETS INDIA & OFFSHORE
MARGINS
23
Together. Free your energies 2010 Capgemini Analyst Day
Our portfolio of change is broad, and intently focused on growing the top line
Joint Account Management
Framework Penetration
Rapid Lead Generation
Large Deal Teams
Fixed-price Delivery
Competitive Pricing
Centres of Excellence
OneTeam Delivery
Bring India closer to the customer, and the customer closer to India
Win larger framework deals with larger, global clients with end-to-end needs
Fast-track entry into new customers, through low-cost, direct marketing
Put our best sales leads at the forefront of winning our boldest global deals
Commit to price and leverage offshore excellence to maximize margins
Win on price, through greater offshore leverage
Manage innovation and delivery excellence through focused Rightshore teams
Enhance offshore productivity through a more seamless way of working
Customer Visit Experience Create ever greater customer trust and ‘wow’ in our global capability
24
Together. Free your energies 2010 Capgemini Analyst Day
The program puts offshore onto the front lines of our go-to-market strategy
LOCAL DELIVERY OF GLOBAL DESIGNS
TS NA
TS UK
OS
...
GROUP STRATEGY & DIRECTION
BEST PRACTICE ‘DRAG & DROP’
RADICALRIGHTSHORE
� Offshore and India have increasing impact on the shape of Group strategy
� Business units are ‘upping their game’ through adoption of our best ways of working, coordinated and distributed by an India core team
� Global improvements are accelerated through immediate duplication of our best ways of working, across all business units
25
Together. Free your energies 2010 Capgemini Analyst Day
The program is re-designingthe way we work in certain areas
WE ARE CREATING SPACE TO DELIVER OUR E2E CAPABILITY
WE ARE GROWINGA SUSTAINBLE REVENUE BASE
WE ARE MORE COMPETITIVE
COMPETITIVE PRICING
� Stronger price challenge
� Global standards
� Better leverage
JOINT ACCOUNT MGMT
� Improved client intimacy
� Clearer accountability
� More account talent
FRAMEWORK PENETRATION
� 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
26
Together. Free your energies 2010 Capgemini Analyst Day
The transformationis 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 UK
TS Sweden OS
� Won large outsource with telecom major
� Auto company €3m; Bank multiple deals
� All Oracle services for Nordics being driven from India
� 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
� Auto company (40 FTE)
� 8 India-led BPO accounts totalling €90m
� Service Delivery Management moved offshore
27
Together. Free your energies 2010 Capgemini Analyst Day
� 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
Where does that take us …
2010 Analyst DayChicago, June 2 & 3
2010 Analyst DayChicago, June 2 & 3
Andy Mulholland
Innovation; Business and Technology Change
The Innovation question is; Not what is the role of the IT departmentbut what is the role ofTechnology within the Enterprise
29
Together. Free your energies 2010 Capgemini Analyst Day
Our Clients’ agenda? Moving back to Growth!
Source and copyright by Peter Evans-Greenwood, Unic o pty
Value Creating
ExternalWeb & Clouds
InternalEnterprise IT
operations
sales support
billing & collectionstraditionalbusiness intelligence
Focused and strong signals
Mixed and weak signals Realtime analysis
of opportunities
Cost Driven
EventsTransactions
30
Together. Free your energies 2010 Capgemini Analyst Day
New Business Models built on Technology & Services
31
Together. Free your energies 2010 Capgemini Analyst Day
Technology is used every where in the business
Internal External
People
Applications Computers
Web Services
32
Together. Free your energies 2010 Capgemini Analyst Day
Now put the Business and Technology Together …
Internal External
Cost
Value
SupportingPeople and Expertise
SupportingComputers
andSystems
33
Together. Free your energies 2010 Capgemini Analyst Day
The focus for the Breakout sessions;
Internal External
Cost
Value Supporting
People and Expertise
SupportingComputers
andSystems
Business InformationManagement
A roadmap from TraditionalBI to Realtime Data Analysis
Infostructure TechnologyServices
Moving to improve IT flexibility & change the delivery model
Smart BusinessUtilities
Creating new markets and Value through technology
34
Together. Free your energies 2010 Capgemini Analyst Day
Business Collaborative Innovationits part of the Capgemini Collaborative Business Exp erience!
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.
2010 Analyst DayChicago, June 2 & 3
2010 Analyst DayChicago, June 2 & 3
Cyril Garcia
Winning position in a new market
36
Together. Free your energies 2010 Capgemini Analyst Day
• 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
Techno evolutions feed a disruptive world
Virtualizedeconomy
Virtualizedeconomy A world of
citiesA world of
cities
Business decision
making shifts east
Business decision
making shifts east
A sustainablegrowth
A sustainablegrowth
37
Together. Free your energies 2010 Capgemini Analyst Day
For our industry, very challenging years…
“Combination of hardware and software create both cost
savings and revenue !”
“Clients want integrated services and innovation !”
“ IPP will break the fortress Europe !”
Big is beautiful ?Big is beautiful ?
The one stop shop dream ?
The one stop shop dream ?
« This is the end »for the european
players ?
« This is the end »for the european
players ?
38
Together. Free your energies 2010 Capgemini Analyst Day
Thanks to our I 3 program we are now positioned as a global leader
3
Global reach
Strong brand
Leader in chosen segments
Above market growth
Strong sales coverage
Balance sheet to invest
Differentiated IP
Lean cost structure
AccentureHPIBM Capgemini
39
Together. Free your energies 2010 Capgemini Analyst Day
Global and country managed accounts
We are starting a journey far more complex, which mobilizes the group
Manage the portfolio
Rebalance geographies
Invest in new offerings
Capgemini
Become strategic for clients
Streamline cost structure
Competition
Acquisition
Business analyticsCloud computingSmarter gridCloud
Diamond clientsSales coverage
BRIC, Mexico, South Korea,China
Leaner cost structureLayoffs plan
Latam, APAC, India, Eastern Europe
ITS & CloudBIMSmart energy
Application lifecycle servicesTesting services
RightshoreIndia enabled transformationLean
40
Together. Free your energies 2010 Capgemini Analyst Day
Back Office industrialization will share the stage with technology
drivers
Growth
Time
Business maintenance and BO industrialization
New custom softwares
New custom softwares
Disperseddevice
systems
Disperseddevice
systems
Systems of systems
Systems of systems
2010/2011 ?
Tipping point
41
Together. Free your energies 2010 Capgemini Analyst Day
Clients are starting to adopt these drivers
CustomedServices
Shared resources
IP
Infrastructure
End-to-endservices
Flexibility
Saas+BPO
Service platform
Interaction platform
Xaas
42
Together. Free your energies 2010 Capgemini Analyst Day
These technology drivers are accelerating with diff erent impact on industries
GOV TME
Risks & regulation
Online 2.0
Rail network management
PLM
Consolidation
Customer lifecycle
management
Emerging markets
Customer analytics
Multi-channel
Billing & customer
information systems
New entrants
Smart meters & smart grid
E-border
eHealth
Tax systems
Billing
Smartphones
Digital media
Level of change
Security systems
Network engineering &
field management
ConsolidationStandardization
Diversification
Consolidation
Retail EUC FS ServicesManufacturing
Long term growthCapgemini has some strong positions and consulting favors business alignment
43
Together. Free your energies 2010 Capgemini Analyst Day
Clients are expecting new business models
Businesses
Models
OLD NEW
OLD
NEW
Complex systemsComplex systems
TransactionsAas
TransactionsAas
Interaction servicesInteraction services
End-to-end IT
applications
End-to-end IT
structure
performance
End-to-end
business
outsourcing
44
Together. Free your energies 2010 Capgemini Analyst Day
How to win positions in this new market
Businesses
EconomicModels
OLD NEW
OLD
NEW
TECHPLATFORMTECHPLATFORM
SECTOR KNOWLEDGESECTOR KNOWLEDGE
INVESTMENTSINVESTMENTS
BI, SES, Alliances…BI, SES,
Alliances…
FS, Telco,PS,EUFS, Telco,PS,EU
Alliances, IP, COEs
Alliances, IP, COEs
45
Together. Free your energies 2010 Capgemini Analyst Day
This may trigger a new IT role where intelligence a nd services will be key differentiators
AggregatedCloud services
AlliancesPartners
Bundling BPO + Software platform
TechnologyBusiness
IntelligenceService
Integrator andOperator
Complex customsoftwares
Security SLAs
Sector expertises
Partner resources
Eveything as A service Own resources
2010 Analyst DayChicago, June 2 & 3
2010 Analyst DayChicago, June 2 & 3
Paul Hermelin
Meeting the challenge of market disruptions
47
Together. Free your energies 2010 Capgemini Analyst Day
Some areas of our portfolio are getting hot
Pipeline growth
ALS
BIM
TST
SES
ITS
CC
Sogeti
SCM
CRM
FS
Gov US
Manufacturing
NA
Nordics
APAC
Eastern Europe Utilities
Offerings Disciplines Geographies Sectors
BPO
48
Together. Free your energies 2010 Capgemini Analyst Day
To benefit from an apparent resurgence we are driving both industrial and technology strategies
Capgemini must be ready to exploit market evolutions
New Business Models
Increasing Competition
Uncertain Market RecoveryGlobalisation,
ScaleGlobalisation,
ScaleEmerging
TechnologiesEmerging
Technologies
IP SolutionsIP Solutions
Technology LeadershipTechnology Leadership
Sector SolutionsSector Solutions
Industrialised Offerings, Global Reach
Industrialised Offerings, Global Reach
49
Together. Free your energies 2010 Capgemini Analyst Day
Global delivery will be a strong differentiator in a thawing market
Offshore is rebounding…
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10
Offshore headcount growth q/q
Capgemini Accenture Wipro (IT svces)
Capgemini has taken early steps and will keep its fo cus
…a driver we embrace
9 000
20 00025 300 28 000
36 000
2006 2007 2008 2009 2010
Offshore headcount
Subcontractormodel
�Volume driven
�Pure delivery�Onshore
responsibility
One teammodel
�Shared KPIs�Client exposure�Sales support� Innovation�Shared
responsibility
Kanbay
Empoweredmodel
�Shared client ownership
�Full responsibility
�Transversal expertise
�Most competitive pricing
50
Together. Free your energies 2010 Capgemini Analyst Day
Technology drivers are accelerating
Networked devices
Consumer technology
& Webservices
Capgemini builds on strong assets: Alliances, Techno logy Culture, Management Talent and a true Entrepreneurial Mindset
Smart X
Smart energy
Smart transport
Cloud
Cloud services
IaasGreen IT
Virtualization
Collaboration
Social CRMMarketing
Social web
MobilityApps
MCommerce
In-memory
BI & analytics
Real-Time
Portals
Maturity
51
Together. Free your energies 2010 Capgemini Analyst Day
More than ever Capgemini is agile within its ecosystem
Tip of the spear with our very
large partners
Take the lift with
fast growers
Anticipate withinnovators
52
Together. Free your energies 2010 Capgemini Analyst Day
During the downturn we strengthened our relationship with Package leaders
Capgemini
Integrated Enterprise
BS 7SAP/Microsoft integrationReady for Fusion
Intelligent Enterprise
SAP BOBJSAP Smart Analytics with TeradataOBIEE
Flexible Enterprise
AIABPMSaas
VerticalExpertise
Oracle Tax & Global public sectorOracle Insurance & Financial ServicesCase management
There is significant opportunity in 2010 and beyond
53
Together. Free your energies 2010 Capgemini Analyst Day
Capgemini is broadening our traditional Alliances with Channel-based Strategic Selling
Regular Engagement
• Deal Driven Partnering
• Skills, Certification, Resources
• Geographic co-ordination
• Account Teams
• Sales Teams
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
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
Alliances Channels
Our value proposition is to integrate and support
Focus: De-risking DeliveryFocus: De-risking Delivery Focus: Pipeline GrowthFocus: Pipeline Growth
54
Together. Free your energies 2010 Capgemini Analyst Day
We are changing to build our leadership position
Global reach
Strong brand
Leader in chosen segments
Above market growth
Strong sales coverage
Balance sheet to invest
Differentiated IP
Lean cost structure
� Renewed offshore drivers� Lean supply chain� Portfolio management
� Emerging markets� New business models� Differentiated IP
Capgemini’s current position
Strengthen Core
Business
New Growth
Initiatives
55
Together. Free your energies 2010 Capgemini Analyst Day
Our acquisition program is aligned
Expand
Consolidate
Long Term Short Term
IBX
China
US portfolio
Smart X RevenueSynergies
Offensive
Defensive
CostSynergies
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