From the Field: Capgemini Analyst Conference #capgemniAD16

Old Dogs Can Learn New Tricks: It’s never too late to transform yourself. Having been a system’s integrator many years ago, I found the transformations happening at Capgemni very inspiring. There was a period where many system’s integrators avoided the conversation about going to cloud and for good reason. Their business and revenue model was not shaped for the cloud. They were based for on-premise installations. Enter the cloud and everything changed. With the integration of IGATE and Capgemini, outstanding changes are definitely clear. Replacing McKinsey and Accenture in many digital transformation projects, they are looking to lead the digital transformation. Net new customers are over 200 and a 35% increase in the client base in North America. Though under NDA, the brands were very impressive.

What did Capgemini learn from IGATE? And I have to say I really appreciated all of the executives transparency and honesty in their process of becoming a digital transformation system’s integrator – including but not limited to Fernando Alvarez, Paul Hermelin, Srikanth Iyengar, Bill Ruh, Lanny Cohen, Tim Bridges, John Mullen, Dee Burger, Todd Rovak, Jean Pierre Petit, Frank Greverie, Doug Mills, Mathieu Colas and Andre Cichowlas. IGATE was known for the great client relationship capabilities. A client’s CIO had said, “I’ve never had a company pay more attention to my culture and my people and company that what we have experienced with IGATE.” IGATE is a new breed of company infusing it’s culture into Capgemini, with the key themes of speed, agility and imagination. And Capgemini vowed to learn from IGATE.

Capgemni’s Digital Business Model: It includes not only the “what” but the “how” of customer experience, including digital customer experience, digital organizational and people and digital operations. In terms of the “how”–  what digital seems to mean are areas like social & mobile, data, IoT, cyber security and cloud. There was a large focus on cyber security, as more and more customers are putting their data in the cloud. There is a focus on digital innovation as well as a digital ecosystem of partners and start-ups in the mix. There key digital capabilities include: innovation, digital customer experience, digital manufacturing and insights and data.

Fahrenheit212 Innovation Strategy and Design Company: They believe that innovation can be inherently reliable and have spent the last decade designing the method, building the model, and assembling the minds to make innovation a predictable driver of growth for our clients’ businesses. They believe most great innovations don’t come from consultants—they come from entrepreneurs and entrepreneurial organizations. Entrepreneurs are driven by a powerful force that counter-balances their challenger mentality. Namely, they have skin in the game. They don’t obsess over the process of innovation; they care only about the outcomes. And it’s why they make a good addition to Capgemini.

Since their inception, Fahrenheit 212 has harnessed this entrepreneurial approach through a performance-based compensation model that aligns our risk and reward with that of our clients. They offer their clients the option of putting a significant portion of our potential compensation at risk, contingent on their solutions hitting pre-determined success milestones. This means their ideas can’t just be interesting; they actually have to deliver actual business results.

Digital Manufacturing Is Hot: The digital manufacturing value proposition includes a comprehensive enterprise offer of smart product and plants, Capgemni IP and an extended ecosystem of subject matter experts and highly skilled resources. With a 180,000 Capgemini employees, they are looking not only to re-skill some folks as well as hiring new people.

Cloud Is the New Normal: Their cloud value proposition is that cloud first is the new normal. Of their North American clients, 80% want their applications in the cloud in some way- some pure cloud, others a hybrid model.

Competitive Roadmap For Capgemini: Capgemini’s competitive roadmap is one of quality of service  where they want to work with some of the most demanding clients on the most challenging projects with the most talented people in the world. Capgemini’s entry into the world of IoT, though under NDA, was very impressive and spot on. I look forward to see what comes of their partnerships and their vision.

@drnatalie petouhoff, VP and Principal Analyst, Constellation Research

Covering Customer Facing Applications, including the customer experience of IOT


Capgemini Releases the World Retail Banking Report 2016: Customer Experience

Capgemini and Efma today released the 2016 World Retail Banking Report (WRBR). The comprehensive survey data in this report, gathered from polls of 16,000 customers in 32 countries, as well as over 140 industry executives around the world, is designed to assist banks in understanding the current competitive landscape and mapping out their strategic responses. The information in this report will help banks to:

  • Assess current levels of customer experience
  • Determine the impact of improved customer experience
  • Gauge the true influence of fintech competitors
  • Take stock of their ability to manage the fintech threat
  • Get up to speed on the most effective responses to fintech’s advance

According to the report, FinTech providers are making increasingly significant inroads with customers, yet the vast majority of banks admit they are not adequately prepared to manage this emerging FinTech threat. The report also found that nearly two-thirds of customers (63 percent) are now using FinTech products or services, and are much more likely to refer friends and family to their FinTech provider (55 percent) than to their bank (38 percent). However, while 96 percent of banking executives agree that the industry is evolving toward a digital banking ecosystem, where Fintech providers play a much bigger role, only 13 percent say they have the systems in place to support it. Retail banks have been eyeing the steady advance of fintech competitors for some time now. With fintech’s momentum gaining, there is greater need than ever before for banks to develop an action plan that ensures them a central role in an increasingly digital and interconnected world.

With penetration highest in the emerging markets and among younger customers, Fintech service providers are gaining popularity among consumers thanks to the perception that they are easy to use (82 percent), offer fast service (81 percent), and provide a good user experience (80 percent). Banks, however, underestimate the value placed on these services with only 36 percent agreeing that FinTechs offer fast service (a 45 percentage point gap) and only 40 percent agreeing that Fintechs provide a good experience (a 40 percentage point gap).

Customer Experience Rises, but Not Enough to Greatly Improve Profitable Customer Behavior

  • Retail banks improved their position on Capgemini’s Customer Experience Index by 2.9 points, registering advances across broad portions of the globe and through every channel. Banks in more than 85% of countries improved customer experience, with gains being highest in Central and Western Europe.
  • Younger customers registered lower levels of customer experience, raising concerns about the ability of banks to meet the higher expectations of this important segment. In nearly every region, Gen Y customers scored lower on the CEI than Gen X.
  • customers, who in turn scored lower than other age groups.
  • Despite the overall rise in CEI, profitable customer behavior improved only marginally, and was especially low in terms of additional purchases, pointing to the need for banks to continue to improve the customer experience, especially through more innovative product development.

Fintech Firms Gain Prominence

  • Nearly two-thirds of customers globally said they are using products or services from fintech firms, giving weight to the threat that banks may become disintermediated from their customers.
  • While customers have more complete trust in their banks, fintech firms are making gains; 87.9% or more of customers across all regions somewhat or completely trust their fintech providers.
  • Fintech firms are making positive impressions, causing customers to be much more likely to refer their fintech provider (54.9%) compared to their bank (38.4%).
  • Less than one-quarter of banks said they have an advantage over fintech firms in their ability to innovate or move nimbly.

Fintech Partnerships Will Define the Future of Banking

  • The vast majority of banks (87.1%) believe their infrastructures are not adequate to support the digital banking ecosystem of the future, giving momentum to the increasingly aggressive competition from fintech firms.
  • Nearly two-thirds of banks view partnerships as the most effective way of responding to the growing fintech threat.
  • To get the most from their fintech partnerships, banks will need to embrace APIs and begin laying the groundwork to revamp their core systems.
  • Banks will need to navigate the transition to fintech partnerships and API-based software development with care, to ensure they remain relevant in the evolving digital banking ecosystem and integral to customer relationships.

The full report along with an infographic is attached for your reference. For more information, please visit: and

@drnatalie petouhoff, VP and Principal Analyst, Constellation Research

Covering Customer Experience and