Value creation in a digital world George D. Schindler President & CEO, CGI

1. 24.1.2019, FINLANDIA-TALO
© CGI Group Inc. CONFIDENTIAL
Value creation in a
digital world
George D. Schindler, President and CEO
January 24, 2019

2. 2
Digitization is redefining
value creation
› Driven by customers
› Extending to business partners
› Highest impact on employees

3. 3
There is an opportunity to
more tightly align IT
and Business – which
can create more value

4. 4
We assessed and benchmarked the correlation
between alignment and earnings performance
0
1
2
3
4
5
6
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Attribute 1
A2
A3
A4
A5
A6
A7
A8
A9
A10
IT executive rating
Business executive rating
Alignment gap
1 0 AT T R I B U T E S
How Business executives
rate IT for understanding and
support of business needs.
Business Executives2
How IT executives rate their
teams for providing IT
services and solutions
aligned to business needs.
IT Executives1
A S S E S S E D B Y:

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The correlation between alignment and growth was not impacted by absolute
scores – suggesting that alignment itself makes a bigger difference
Where alignment is strongest
between IT and Business
executives, the profit
and EPS growth were 2-3x
Analysis of nearly 50 companies around the world
with an average market cap of US$30 billion

6. 6
Adding tangible, incremental value has been elusive as
many organizations focused on bolting-on digital features
INCREASED DIGITAL
ACCESSORIZATION
INCREASING
OPERATIONAL COSTS

7. 7
Adding tangible, incremental value has been elusive as
many organizations focused on bolting-on digital features
INCREASED DIGITAL
ACCESSORIZATION
INCREASING
OPERATIONAL COSTS
STEP CHANGE REQUIRES
BUSINESS AND IT ALIGNMENT
DIGITAL
BUSINESS
VALUE
CREATION

8. 8
Attributes of World-Class IT
Stable IT environment and quality
service
Projects delivered on time, on
budget
In-depth knowledge in IT
Cost effective IT services
A strategy to preserve IT knowledge
IT working environment and culture
Services aligned with business
requirements
In-depth knowledge of business
domain
Consistent introduction of
innovation
Secure environment, including
data privacy
Gaps in alignment on these attributes inform the continuous improvement roadmap…
CGI developed a Journey to World-Class IT proprietary methodology to help clients close the gaps
TECHNOLOGY
EFFECTIVENESS
HUMAN CAPITALBUSINESS VALUE

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Global Northern Europe Finland
Becoming digital to meet customer needs 78% 78% 79%
IN CGI’S 1,400 CLIENT INTERVIEWS, COMPANIES CITED KEY INVESTMENTS OVER THE NEXT 3 YEARS
Investments are focused on generating value

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Global Northern Europe Finland
Becoming digital to meet customer needs 78% 78% 79%
Adopting agile business or IT models 53% 49% 44%
Addressing cyber and other security risks 66% 61% 63%
Growing use of digital technologies 38% 39% 52%
IN CGI’S 1,400 CLIENT INTERVIEWS, COMPANIES CITED KEY INVESTMENTS OVER THE NEXT 3 YEARS
Investments are focused on generating value

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Global Northern Europe Finland
Becoming digital to meet customer needs 78% 78% 79%
Applying analytics to drive business value 81% 82% 86%
Adopting agile business or IT models 53% 49% 44%
Addressing cyber and other security risks 66% 61% 63%
Growing use of digital technologies 38% 39% 52%
IN CGI’S 1,400 CLIENT INTERVIEWS, COMPANIES CITED KEY INVESTMENTS OVER THE NEXT 3 YEARS
Investments are focused on generating value

12. 12
Digital leaders innovate iteratively with a clear focus on
a long-term enterprise view
DIGITAL
INTERVENTIONS
RUNNING THE
EXISTING BUSINESS
BUILDING AN
AGILE BUSINESS
LAUNCHING BUSINESS
INNOVATIONS

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Digital leaders innovate iteratively with a clear focus on
a long-term enterprise view
DIGITAL
INTERVENTIONS
ORGANIZATION
AND CULTURE
CHANGE
AGILE BUSINESS OPERATING MODEL TRANSFORMATION
RUNNING THE
EXISTING BUSINESS
BUILDING AN
AGILE BUSINESS
LAUNCHING BUSINESS
INNOVATIONS

14. 14
Digital leaders innovate iteratively with a clear focus on
a long-term enterprise view
DIGITAL
INTERVENTIONS
ORGANIZATION
AND CULTURE
CHANGE
AGILE BUSINESS OPERATING MODEL TRANSFORMATION
NEW
BUSINESS
MODEL
1 YEAR 2 YEARS 3 YEARS 4-5 YEARS
RUNNING THE
EXISTING BUSINESS
BUILDING AN
AGILE BUSINESS
LAUNCHING BUSINESS
INNOVATIONS

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customer experience ● artificial intelligence ● Platform as a Service
Breaking down data silos to create
smart, real-time customer experiences
D I G I TA L L E A D E R S E X A M P L E
› Creation of an app recommendation engine to gather data on device usage in
order to produce individually tailored recommendations for new services.
› Combines rich real-time customer data from all relevant sources and enriches
it with advanced data analytics and Artificial Intelligence (AI) capabilities –
integrating the customer, channel, and company data in one platform.
› Up and running in two months, the solution enables executives to make data-
driven decisions that help improve customer satisfaction and retention in line
with their business goals.

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D I G I TA L L E A D E R S E X A M P L E
› Digitizing the route planning and quotation process for cargo trains using
Europe’s largest rail network. Enabled Deutsche Bahn to use data to provide
faster proposals for the cargo requests for over 400 railway companies.
› Approach integrated agile, DevOps, and secure cloud to create a highly
automated environment for continuous integration and development.
› Solution increased the rail operator’s capacity and the utilization of routes—
avoiding the cost to physically extend the rail network.
advanced analytics ● agile & DevOps ● secure cloud
Digitizing operations to increase the
capacity of Europe’s largest rail network

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Creating a digital twin for virtual
data monitoring
D I G I TA L L E A D E R S E X A M P L E
› Development of an integrated, enterprise-wide monitoring system for
critical equipment for an Oil & Gas major’s critical equipment.
› Processes are now real-time and predictive, enabling better downtime
management and the ability to fix issues before they happen.
› Using augmented reality, engineers remotely monitor sites and data from
over 1 million sensors.
› Solution has generated $1.5B in savings in 5 years.
predictive analytics ● robotic process automation ● Internet of Things

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Digital value creation
requires culture change
enabled by agile ways of
working, data, and technology

19. 24.1.2019, FINLANDIA-TALO
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