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

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Capgemini Collaborates with Celaton on Artificial Intelligence in the Cloud

What’s the Partnership Between Capgemini And Celaton Mean to Your Company? Capgemini, consulting, technology and outsourcing services, has announced a new global collaboration with Celaton, a specialist Artificial Intelligence (AI) company, to license and use its inSTREAM, cognitive learning technology. The 3 year contract, signed between Capgemini and Celaton, will extend Capgemini’s already strong automation capabilities, help to drive further efficiencies and add Artificial Intelligence to Capgemini’s Business Services solution portfolio.

What Does Celaton’s inSTREAM Software Do? It streamlines the handling of unstructured unpredictable (and structured) content such as correspondence, claims, complaints and invoices that organizations receive by email, social media, fax and paper. This minimizes the need for human intervention and ensures that only accurate, relevant and structured data enters business systems. Unique to inSTREAM is its ability to learn through the natural consequence of processing information and collaborating with people. Capgemini’s extensive knowledge and experience in business process services will also enable Celaton to accelerate and improve inSTREAM’s capabilities.

What Will The Partnership Provide For Clients? The cooperation will enable Capgemini to increase efficiency, shorten turnaround times and enhance quality in areas where incoming documents and queries need to be processed, improving overall customer satisfaction. At a time when more and more customers expect the use of AI and modern automation tools, the alliance will help Capgemini’s Business Services advance their market leading use of automation and AI for its core business. Earlier this year, Capgemini introduced an Autonomic Platform-as-a-Service (PaaS) offering founded on best of breed technologies to deliver intelligent automation solutions on-demand for enterprises. The Autonomic PaaS aims to improve the predictability of organizations’ operations across their infrastructure, applications and business processes. The Celaton agreement is a further commitment from Capgemini to develop advanced client solutions using intelligent automation, cognitive and AI technologies.

Is This Offered in a SaaS or Cloud Mode? The addition of Celaton inSTREAM expands Capgemini’s Business Services’ extensive Software-as-a-Service (SaaS) portfolio with an artificial intelligence-based processing solution for incoming unstructured content –which is driven by its global automation Centers of Excellence. It is an important element in ensuring the delivery of maximum value to its customers.

Notes From The Executives: Lee Beardmore, VP and Capgemini’s Business Services Chief Technology Officer said, “There is significant industry debate on how cognitive computing and artificial intelligence will impact the BPO market. We are taking our delivery from debate to global implementation and are proud to partner with Celaton as a leading vendor in the business process AI space. Building on the introduction of Capgemini’s Autonomic Platform-as-a-Service, Celaton’s technology extends the penetration of cognitive computing into our delivery of business process services.”

Andrew Anderson, CEO of Celaton said, “I am delighted that Celaton and Capgemini have committed to this global partnership. The transformational impact of AI has been proven with many organizations and yet this emerging technology is often greeted with scepticism. Capgemini’s global reach and credibility will have an impact on the perception and adoption of AI and I’m very excited that Capgemini’s customers will soon be able to realize its significant benefits.”

My POV: AI is very important to the emerging capabilities of company’s to add cognitive computing into the delivery of business processes of discerning unstructured content. And with social and digital content abounding, there is no storage of unstructured content. And there is unlimited potential in the value of this unstructured content if it can be harnessed. This duo will give brands that opportunity.

@DrNatalie Petouhoff, VP and Principal Analyst, Constellation Research

Covering Customer-facing Applications That Drive Better Business Results
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The Year of On-demand, Personalized Shopping: The Cloud and IOT Abound

What’s Happening in the World of Shopping and Customer Experiences? At the National Retail Federation Annual Convention in New York City, Microsoft made announcements with GameStop, Hardee’s, TGI Fridays, Panasonic, HP and FreedomPay, and NCR on efforts to modernize shopping experiences.

How Does IoT, The Cloud and Customer Experience Come Together? Microsoft believes this will be the year when modern shopping experiences come to life. Where retailers create instant, personalized experiences for shoppers on their smartphone, online and in stores. It will be the year that customers return to stores because technology is engaging them in new ways, making them want to buy more and come back. Microsoft shared for the first time several retail innovations using its technology, including a smart shelf and a tablet-enabled shopping cart, and showed how retailers can gather better store analytics. Microsoft also announced how Pandora and Ashley Furniture are working with technology to create more engaging experiences for employees, helping them be more collaborative and support faster product innovation.

Engaging Customers During the Shopping Experience is Essential for Today’s Retailers. GameStop announced it is working with Microsoft to create an interactive, informative and entertaining shopping experience in an immersive environment. In the near future, when customers walk into one of the GameStop pilot stores, they will be connected to the services enabled by the Microsoft Cloud, allowing them to browse product choices, share their shopping cart with salesperson’s tablet running an assisted selling application, and even browse products interactively on a big screen Ultra High Definition TV where they can view video game trailers with pristine clarity. When a customer downloads and opts into the GameStop app on their smartphone, they will be able to interact in a whole new way with GameStop marketplace through the use of Azure. Ultimately, the customer and the salesperson can push the desired products to the point of sale (POS) system for order processing and payment.

What’s Another Great Example of How Microsoft is Working With Retailers to Improve Customer Engagement and Customer Experience? One example is Hardee’s new way to make ordering a meal fast and fun. Hardee’s is currently deploying self-ordering kiosks for ordering meals, using Windows 8 devices. These in-store kiosks are being tested currently in 30 restaurants with plans to extend that test to additional restaurants soon. Each kiosk allows customers to review the menu and order food and lets managers run sales and shift reports, while dramatically reducing wait times. Check out the video and read more here.

Another Example is TGI Fridays Who Has Plans to Transform the Way People Order Food by Equipping Servers with 8-inch Tablets Armed with Payment Sleeves. With the Fridays’ Service Style technology the customer’s order is processed right at the table, the device also helps manage the waiting list and queue. The solution helps ensure orders are correct, reduces training time, and streamlines waitlists.

Modern Points of Sale Connect Retailers and Customers in New Ways.  As the shopping experience becomes more modern, so does the POS. Modern POS devices are allowing retailers to better understand their customers, provide more customized service, and help them achieve compliance with new security measures being implemented in 2015.  In partnership with Panasonic, HP and FreedomPay Microsoft is demonstrating how the modern POS can create personalized retail experiences, in real-time, through smart and secure devices. With new security regulations on the horizon, retailers need to upgrade their POS devices, not only to ensure their customer data is safe, but to also be able to provide a more personalized and seamless experience at check-out. Read more about modern POS devices here.

Innovation that helps retailers understand buying behavior and customers make informed decisions.  One of the challenges in retail is to create an in-store experience that engages customers in unique ways, entices them to come in to stores, and keep them coming back. Creating those connections creates better experiences and ultimately increases sales. With the help of a Kinect sensor, AVAretail’s SmartShelf technology allows every interaction of a shelf in a store to be monitored and recorded in real-time, providing insight into which products are most selected and picked up by customers. Another form of technology, Path Tracker, gives retailers real-time detection and analysis of a customer’s shopping path.  This provides counts of people in the store, areas visited, dwell time and shopping path, acting as a heat map of where customers are spending the most time in the store.

The NEC Biometric interface with Kinect Camera System Provides Demographic and Face Recognition Services to a Kinectically Enabled Application. Retailers can use this information for analysis and for providing the customer with a more personal selling experience. MediaCart will change the shopping cart as we know it. Adding a location-aware tablet to the cart allows a retailer to present a personal and relevant shopping experience to its customer.  This allows context sensitive ads and promotions when in front of various products along with a barcode scanning capability for price lookups and basket totals.

Retailers Are Predicting Consumer Behavior With Machine Learning. As technology advances, consumers have more tools at their disposal during the buying process. This trend seems to be growing exponentially, especially as the Internet of Things (IoT) matures. This is both an opportunity and a challenge for retailers looking to capitalize on a whole new base of consumers. Competitive pressure, combined with ubiquitous connectivity, smart devices and an intelligent cloud platform is causing a shift to a new retail reality. Food delivery company JJ Food Service uses machine learning to make product recommendations as customers are shopping for food. This provides insights, saves on costs, and ensures their customers have the food they need, when they need it.

Customer Behavior Can Be Predicted. Auckland, New Zealand-based VMob runs a mobile engagement platform on Microsoft Azure which predicts likely customer behavior based on historic and live data streams. The platform currently delivers personalized content to millions of consumers around the world, including customers of McDonald’s across several European markets. The VMob platform collects real time data from multiple sources including mobile devices, wearables, location temperature sensors, WiFi transmitters, beacons, digital signage, and POS systems to personalize engagement with the customer. The VMob platform uses Azure Machine Learning to harness the Internet of Things to predict future customer behavior – transforming live and historical data streams into actionable insights McDonald’s can employ to individualize its marketing efforts. See more information about VMob’s work here.

You Want to Reach Your Customers Where They Are. For retailers to succeed, they need to reach their customers where they are.  Because of this, we are pleased to be announcing Sitecore Commerce, powered by Microsoft Dynamics. This solution integrates the experience management capabilities of the Sitecore Experience Platform with the omni-channel commerce capabilities of Microsoft Dynamics AX for Retail. The result is a product that allows enterprises to bridge the gap between in-store and digital experiences. We are also announcing a combined effort with Toshiba to form the Toshiba Global Commerce Solutions with Microsoft Dynamics to help retailers deliver leading customer experiences through true omni-channel customer engagements. This effort includes Toshiba delivering software and implementation services on the Dynamics platform as well as plans for the global availability of a combined solution – TCxGravity powered by Microsoft Dynamics – specifically tailored to deliver omni-channel transformation on the customer’s terms, helping it provide seamless brand experiences to build lasting loyalty.

What’s The Future of Retail? Retailers are changing the game through connected stores, empowered employees, digital engagement and ambient intelligence all geared toward delighting the modern shopper. By gathering and ingesting insight from myriad data sources, retailers can create a comprehensive understanding of each customer, its store’s inventory and the capabilities of its business to seamlessly match people with the products and services they desire.

The end result of these technologies and services, and of Microsoft’s work with retailers, is an increased focus on solutions that help grow sales and profits, increase customer satisfaction and loyalty, bring products to market faster, and create a more effective business.

If you want more information, visit the Retail NewsroomThe Windows for Your Business Blog, and The Dynamics Blog.

MyPOV: I Love to shop and I love technology. So this is gonna be a great year! I can’t wait to see how cloud computing, IoT and customer experience emerge as the top competitive advantage to lead conversion rates, higher revenues and awesome customer experiences!

@DrNatalie Petouhoff, VP and Principal Analyst, Constellation Research
Covering Cloud and IoT That Drive Better Business Results and Awesome Customer Experiences in Retail Environments
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