Manufacturing         the way we do itManufacturing ofIndustrial Equipment inthe New Global EconomyChallenged, Transformed...
Key Levers to Manage                                      In addition, Capgemini’s                                 In addi...
Manufacturing                               the way we do itcan help manufacturers develop a            Solutions in Actio...
www.capgemini.comTransforming the Business and IT                                            CHROME: Accelerating Solution...
Upcoming SlideShare
Loading in …5

Capgemini Industrial Equipment Manufacturing Segment brochure


Published on

Capgemini Industrial Equipment Manufacturing Segment brochure

Published in: Business, Technology
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Capgemini Industrial Equipment Manufacturing Segment brochure

  1. 1. Manufacturing the way we do itManufacturing ofIndustrial Equipment inthe New Global EconomyChallenged, Transformed and Poised for GrowthChallenges Facing the Industry generating new opportunities and newThe Industrial Equipment industry is competition in emerging regions, asat a significant point in its history as some former “low-cost” economiesit battles challenges exacerbated by transform into attractive markets inthe global economic slowdown. Like which to sell goods. This has led toany other sector, this industry faces increasingly complex supply chains andincreased competition in domestic growing competition from domesticand overseas markets, volatile fuel manufacturers in these markets.prices, and stricter environmentalregulations. But certain challenges Volatile Energy Costs, Stricterare particularly pronounced. Regulations: Highly volatile energy and commodity costs, together withBalancing Supply and Demand: government and public pressure haveIn their home countries, Industrial led IEMs to focus on minimizingEquipment Manufacturers (IEMs) their impact on the environmentare striving to succeed in highly and reducing energy bills. In manycompetitive and slow-growing cases, this has resulted in operationalmarkets. Demand in North America challenges as they look for greenerand Europe has slowed as customers ways to source, manufacturereduce or delay capital spending and and ship their products.slash production.Increasing Globalization, Growthin Emerging Markets: Rapidglobalization is
  2. 2. Key Levers to Manage In addition, Capgemini’s In addition, our “One Manufacturer”the Challenges TechnoVision framework provides approach harmonizes complexCapgemini is helping Industrial a comprehensive perspective on system architecture to improveEquipment Manufacturers use six key the evolution of technologies and productivity, reduce costs andlevers to address these challenges. addresses the impact of technology create headroom for innovation. on the business. The TechnoVision1. Product and Service Innovation: mapping process can be particularly 3. Services Focus and SalesThis lever focuses on bundling the valuable in addressing the challenges Growth: With slow revenue growthproduct offering with value-added of product and service innovation. and tight margins, some IEMsservices and leveraging technology are beginning to shift their focuspartner relationships. Essential to 2. Cost Reduction: Key elements towards services, while at the samemanaging this lever is establishing of this lever include shifting some time taking advantage of emergingclose collaboration with customers portion of manufacturing offshore, markets and multi-channel salesand suppliers earlier in the product outsourcing non-core business and distribution strategies.lifecycle and across the value chain. processes, and restructuring initiatives such as consolidation, Solutions to help IEMs focus onCapgemini’s solutions and standardization and harmonization this lever include Service Strategymethodologies are designed to of processes and systems. and Transformation, Multi-Channelhelp companies create and manage Optimization, Sales/Market Roadmapproducts and services throughout Capgemini’s solutions include Development, Campaign and Loyaltytheir lifecycle and include Innovation Outsourcing/Offshoring Strategy, Management, Sales Effectiveness,and Lifecycle Management, our Business Transformation, Shared and Price and Revenue OptimizationAccelerated Solutions Environment1 Services/Business Process Outsourcing (PRO). In addition, Capgemini’sand RAIN2 centers. (BPO) and Cost-Reduction Planning. Service Management “Insight Days” Key Levers to Manage Industry Challenges Key Levers Action Towards Excellence Select Capgemini Solution Areas Product & Service  Collaboration with customers and suppliers Innovation earlier in product lifecycle and across the  Innovation & Lifecycle value chain Management  Leveraging technology for ef cient product  Enterprise Performance Cost Reduction and process innovation Transformation  Better-de ned company-wide strategy with  Outsourcing standard, harmonized processes and – IT Service Focus & controls Sales Growth – Procurement  Transformation to a service organization – Finance & Accounting – Customer Care & Insight  Complete functional integration internally Operational Excellence and externally  Supply Chain  Improved value chain performance – Sourcing – Supply Chain  Product offering bundled with value-added – Logistics Customer Centricity aftersales services for better customer service and integration  Service Transformation  Devising and deploying sustainable products  Green IT Green Initiatives  Implementing green IT strategy Source: Capgemini1 Capgemini’s Accelerated Solutions Environment (ASE) combines world-class facilitation teams, patented decision-making processes, global knowledge bases and innovative workspaces to enable organizations to make better and faster business decisions.2 Short for RApid INnovation, RAIN is a physical and virtual environment dedicated to transforming organizations into Service-Oriented Enterprises (SOEs). The RAIN centers are operated by Capgemini and Intel.2
  3. 3. Manufacturing the way we do itcan help manufacturers develop a Solutions in Action: countries. At its core, the solutionservice management transformation Client Success Stories entailed management of all applicationsstrategy and roadmap, leveraging Capgemini works with many of the and infrastructure and the transfera toolkit of best practices, case world’s leading IEMs, including 90% of over 1,000 professionals to anstudy examples and benchmarks. of the largest Original Equipment external partner. Management sought Manufacturers (OEMs) and suppliers, a partner who could bring real value4. Operational Excellence: To and 70% of the biggest diversified by helping the Group transform its ITachieve operational excellence, IEMs manufacturers worldwide. Following infrastructure, consolidate a portfoliomust focus on issues such as supply are examples of our collaboration of data centers and standardizechain visibility and optimization, with IEM clients. operating systems through a company-and demand and inventory planning/ wide implementation of SAP.integrated business planning, while An Outsourcing Challengealso rationalizing their supplier base. for a Global Corporation The team successfully transferred The company is a world leader almost 600 people across 26 countriesCapgemini can help companies improve in automation and electricity by the first anniversary (five countriesoperations through Inventory and Supply management. Having witnessed were not subject to transfer of people).Chain Optimization and Transformation, strong organic growth, the Group Overall results included:Sales and Operations Planning faced challenges of harmonizing(S&OP), Operational Excellence and processes across its heterogeneous Delivery of new functionality to help ƒƒERP/IT Solution Deployment. legacy organizations and grow the business. optimizing global IT costs. Management of people, and the ƒƒ5. Customer Centricity: As the ensuing scale of change, was seen asindustrial landscape becomes Part of the solution lay in outsourcing critical to success at meeting objectives.more global, partnerships grow in IT activities in some 31 Europeanimportance. Critical success factorsinclude an improved understandingof the customer’s business and Best-in-Class Networked Value Circle Model for Industrial Equipmentcloser collaboration. Long-termcustomer relationships will beachieved via approaches such as Capgemini is helping manufacturing clients move toward best-in-class operations with a newintegrated aftersales service. model we call the Global Networked Value Circle. This model helps Industrial Equipment Manufacturers focus on three strategic capabilities: identifying global competencies by real-Solutions designed to improve izing core competencies and connecting to other value chains; identifying relationships thatcustomer centricity include Customer will be either long-term assets or strategic assets to gain competitive advantage in a valueRelationship Management (CRM), chain; and using their management skills and technology to form, manage and exploit rela-Call-Center Operations, Service Parts tionships whether they are two-company partnerships or wide, open, network relationships.Management and Repair, and Business SUPPLY CHAIN PARTNERSInformation Management (BIM). AND NETWORKS6. Green Initiatives: To address IG N DE S Menvironmental, ecological and C T T IO N DU NOVAg it to FroANUF O t o w m w ACethical concerns, IEMs need to PR D IN doin ing it ma orld orl N rom ourc T U c l a ma na -focus on designing and developing F r es ge d - la s s t A RIN ss m nufacturing c en G anufac msustainable products, as well as IT-FACILITATEDimplementing a green IT strategy. INNOVATION PARTNERS COORDINATION SUPPORT AND NETWORKS t u r in g t o c u s t o me F r o m r e l a t r par t n A N D S E R i o n s h er s h FUNCTIONS: M A R K E T I C E p m a ip From supportingCapgemini is working with clients a chain to managingin the development of green data a value-creating network ING Vcenters, sustainable desktop s ,S h ip LE i A S Nstrategies, and developing and AI er s na CH T r tn ge S U P P LY M E N to padeploying sustainable products. me nt M A N A G Etracts F r om c o n MANUFACTUING PARTNERS AND NETWORKS Source: CapgeminiManufacturing of Industrial Equipment in the New Global Economy 3
  4. 4. www.capgemini.comTransforming the Business and IT CHROME: Accelerating Solutions at Optimum Costsin Gas Turbine ManufacturingTurbine blades—supported bycomplex global supply chains—arethe most success-critical components CHROME, Capgemini’s Center for Manufacturing Excellence, is a virtual globalin gas turbine manufacturing in the community with a dedicated solution lab located in Mumbai, India. The center captures best-practice benchmarks, solutions and enablers that accelerate process executioncompany. The high intrinsic value for our clients. Capgemini’s industry-specific solutions are supported by a repositoryand long production time put the of tools and accelerators that help systems go live quickly, at lower costs and with lesssupply chain management focus on risk. These include:continually reducing lead times andinventories. In addition to an optimally ƒ End-to-end preconfigured SAP templates for Automotive manufacturing, includingconfigured global supplier network, hundreds of reusable components; as well as Maintenance, Repair and Overhaul (MRO)a precisely planned and operated and Discrete chain offering end-to-end ƒ Preconfigured solution kits for PLM for Aerospace, Air Traffic Management forprocess transparency in real-time is a Aerospace, Testing Services, Application Lifecycle Services.prerequisite for effective performance. ƒ A ready environment to build, test and demonstrate the proofs of concept for specific solutions.With this in mind, the company, ƒ SAP Deliver 2.0, Capgemini’s world-class SAP delivery methodology.supported by Capgemini, designed ƒ A Manufacturing Business Process Template, a repository of Application Maintenanceand implemented a global business tickets with ready solutions with reusable code blocks and test scripts, and a globaltransformation program. Joint manufacturing subject matter expert locator – providing quick access to various skills.teams developed a target processmodel comprising six end-to-end In addition, Capgemini’s Innovation Showcase and Center of Excellence in China hostsmain processes with clearly defined specific templates for Industrial Equipment manufacturing.sub-processes and activities.The optimized and harmonizedbusiness processes and SAP supportled to precise supply chain planning About Capgemini and theand processing, with end-to-end, Collaborative Business Experiencereal-time transparency. Increasedprocess accuracy and speed optimize Capgemini, one of the model called Rightshore®, which aimssupply chain performance. world’s foremost providers to get the right balance of the best talent of consulting, technology and outsourcing from multiple locations, working as oneAnnual IT Costs Reduced by 60% services, enables its clients to transform team to create and deliver the optimumAn international manufacturing and perform through technologies. solution for clients. Present in more thantechnology firm’s division needed Capgemini provides its clients with 30 countries, Capgemini reported 2009effective support for its business insights and capabilities that boost their global revenues of EUR 8.4 billion and freedom to achieve superior results employs 90,000 people worldwide.through the complete lifecycle, through a unique way of working, thefrom purchasing, stock control, Collaborative Business Experience™. More information is available atsales, distribution and production The Group relies on its global delivery www.capgemini.comto internal and external accounting.For a number of years, the divisionhas applied Capgemini’s standard For more information on Capgemini’s Industrial Equipment practice and solutions,configuration for the manufacturing please contact:industry, which is based on SAP. Floyd D’Costa Gunnar EbnerBuilding on this configuration, the gunnar.ebner@capgemini.comnew solution gave the client completebusiness support and enabled the Nick Gill Will Zhangproject to be run efficiently and cost will.zhang@capgemini.comeffectively. The new system providestotal, at-a-glance control, making the Jim Sourgeschecking of material and purchase MRD201004LT-SSCneeds easier and more efficient.Significantly, total annual IT costs © 2010 Capgemini. All Rights Reserved. No part of this document may be modified, deleted orhave been reduced by at least 60%. expanded by any process or means without prior written permission from Capgemini. Rightshore® is a trademark belonging to Capgemini.