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No part of this publication may be reproduced or transmitted in any form or by any means, electronic, digital or mechanical, including scanning,photocopying, recording or any information storage and retrieval system relating to all or part of the text, photographs, logotypes without first obtainingpermission in writing from the publisher. Cap Gemini Ernst & Young 2001
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The Future of Automotive
Are You Prepared for the Changes?Or Will You Soon be a Part of the Past?
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Towards a New Kind of Automotive Industry
1
You are the brand manager of a mobility provider employing a fully outsourced production facility.
Working in partnership with your competitors, you produce cars that are configured by customers,
built by contractors, and sold by anyone. This is your future in the new automotive industry. If you are
wondering how to navigate this exciting, but turbulent, new reality, Cap Gemini Ernst & Young can help.
The car industry has begun anunprecedented metamorphosis withchanges occurring at a faster rate and on abroader scale than ever before. Theindustry is in the grip of an e-businessrevolution in which more choice, greaterefficiency and a commitment to innovationwill be essential in order to minimize costs,reduce time to market and meet risingconsumer expectations.
This transformation is affecting everyonesimultaneously across the entire industryvalue chain. The capability exists now fordesign concepts to be shared, transactionsmade, orders processed, production linessequenced and distribution scheduled at afraction of the time and across morecommunities than previously.
By the year 2010, if this rate oftransformation continues, we may not evenrecognize the shape of the industry as it istoday. Customer demands, technologychanges, social environmental forces andthe inevitability of new entrants willdissolve the traditional industry boundariesbetween suppliers, OEMs, retailers anddistributors. Because of this the mind-set ofevery OEM and major componentmanufacturer will be forced to change.
Can you handle these challenges? Can youmeet these new customer demands? Willyou still be manufacturing cars in 10 years?Can you picture this future?
Cap Gemini Ernst & Young has
an impressive range of solution
offerings addressing some of the
key growth markets and appears
to have a convincing e-business
strategy in place. 1
1 Datamonitor 2000 Cap Gemini Ernst & Young Crossing the
Atlantic for a global future.
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The Adaptive Enterprise
2
Picture your company as an adaptive enterprise, part of a network of like enterprises that includes your
competitors, suppliers, distributors, finance houses, and investment banks all of which can adapt in
collaboration within days to meet changing customer demands. Your core products will be a
combination of the vehicles themselves, and the services you sell into them. You will be, essentially, a
brand manager, as even vehicle assembly can be outsourced.
The vehicles themselves will have thetechnology to enable consumers to buildtheir own unique combinations of optionsand value-added services. Seventy percentof them will be made to the customersexact specification and delivered withindays anywhere in the world.
Today
The current Order-to-Delivery (OTD)process remains the same slow andcumbersome system of 10 years ago.Customers orders take 6070 days to fulfiland vehicle sales rely on a push systemcharacterized by a sell what you makebusiness strategy. The business model haslow market capitalization, low return onassets, high costs, excess inventory, highlymanual processes, slow order processing,dissatisfied customers, high variablemarketing costs, significant discounts, andout-of-date legacy systems.
Our Solution
The Adaptive Automotive Enterprise Modelembodies the highly advanced concepts inBuild-to-Order and Locate-to-Order thatCap Gemini Ernst & Young has developedover the past two years while implementingsupply chain improvement programs withsix of the worlds largest car makers.
The model (see chart) is based on sixbuilding blocks. Your organization will needto address each of them in turn, andpossibly even redefine how you operate inthese areas. We have built an InnovationProgram for each block, designed to exploitnew technologies relevant to your specificprocesses. For example, on Web-based
Available to Promise we explain how we canhelp you build lifestyle car configurators,state-of-the-art sequencers, capacityvisibility technology for Tier 1s and 2s, andconsumer response web portals that enablecustomers to track their orders.
Once linked across each block, theseinnovations provide the new businessmodel for true Build-to-Order.
The models key day-to-day benefit is theway it enables OEMs and their partners toadapt fluidly to changing circumstances bycapturing and integrating data from all partsof the supply chain in real-time and thenusing it to re-sequence manufacturing andlogistics plans. In the long term, the modelfacilitates seamless co-operation betweendifferent stakeholders in the supply chainover the planning and launch of newvehicles, while also enabling a continuousrealignment of capacities to match thesupply network to customer demand.
We believe that by adopting the AdaptiveAutomotive Enterprise Model, OEMs willimprove efficiency and eliminate excessstock throughout the supply chain. Ourestimate is that it would achieve savings of 1,2001,500 per car. Significant marketshare improvements should also resultfrom improved responsiveness toconsumer needs.
Automotive supply chains worldwide arein urgent need of a comprehensivetransformation if the problems of vastexcess stocks, poor co-ordination, longcustomer waiting times, and depressedprices are to be solved. Our AdaptiveAutomotive Enterprise Model gives the
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industry a totally new concept of supplychain management, based on instant andcomplete visibility all down the line. Thisvisibility provides the basis for the mostappropriate response to consumerrequirements and for instant adaptation ofplans to changing conditions.
Key Concepts Underlying the AdaptiveAutomotive Enterprise Model are:
Adaptive meaning the continuous re-orientation towards customer demandof strategy and operations across theextended enterprise.
Use of Locate-to-Order concepts toidentify any stock in the outbounddistribution chain that meets the exactorder specification, and to look at nextweeks production schedule beforebuilding to order.
Locate-to-Order optimizes sales ofvehicles built to stock.
Use of Order-to-Delivery (OTD)concepts to make each customer orderthe focus of the entire end-to-end supplychain, with immediate confirmation ofdelivery date based on criticalconstraints.
Synchronization of inbound logistics,vehicle assembly, and outbound logisticsusing integrated, web-enabled IT systemsto link all players in the supply chain.
Use of Adaptive Manufacturing based onthe sequencing system as the heartbeat ofthe manufacturing process, with livefeedback to facilitate instant re-sequencing.
Service Offerings
Cap Gemini Ernst & Young is the onlyconsulting firm offering this completevision of the future adaptive enterprise. We can demonstrate solutions that exploita range of new technologies for eachcritical area of your enterprise. We are alsounique in having built a transformationmap for each area that is designed to takeyour organization from where it is nowacross a clearly defined path towards thisfuture vision.
We work closely with our strategicpartners, SAP and Cisco Systems, toprovide leading-edge supply chainsolutions. Other major partners includeSun Microsystems, i2, Manugistics, Ilog,Oracle, and Siebel. We are also a preferredconsultant to the number one globalautomotive exchange.
As the number one supply chain serviceprovider2 Cap Gemini Ernst & Young hasthe integrated service offerings includingstrategy, demand and supply planning,strategic sourcing, and e-procurement your business needs to meet the challengesof the new OTD market space.
Our experience of working with globalmarket leaders on complex OTD and othere-business initiatives has given our hundredsof dedicated supply chain consultants realexpertise that you can exploit.
The true goal of this radical OTD visionmust be to maintain and grow marketshare. Cap Gemini Ernst & Young can helpyour company realize that vision.
Cap Gemini Ernst & Young is the
influential consulting firm
sponsoring and providing
research support to the
international 3DayCar
research program.
2 "Cap Gemini Ernst & Young is ranked #1 in IDC's recent report on
the Top 10 Supply Chain Service Providers." IDC - Top 10
Worldwide Supply Chain Providers, June 2001
3
Web-based Available to Promise
Supply Chain Visibility
Industry Exchanges
Shopfloor link between Actual & Plan
Inbound Logistics Outbound Logistics
OEM
Suppliers
Dealer
Proposed Order to Sequence System
Review capacity on all options
Run Sequence plan for BODY/PAINT/TRIM/OUTBOUND LOGISTICS
PROVIDE ATP
Configure vehicle on WEB complete
Package Car Finance Insurance
Confirm Order
DELIVERJIT TO
TRACKSIDE
From Sequence System communicateForecasts
Demand to supplyCapacity
Component options
Outbound carriersLogistics Broker
INBOUND SEQUENCE
To Inbound CarrierOptimize route to ATP
Collectvehicle
Deliver to Customer
Carrier optimizesquantities and
collection frequenciesCollect material
Consolidate to meet Sequence requirements
The Adaptive Automotive Enterprise Model
MIXED MODEL LINE
OUTBOUND SEQUENCE
SEQUENCE
CAP GEMINI ERNST & YOUNG 2001
Customer CC
MMC SE
CKM
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Less than half of vehicles will be soldthrough traditional dealer networks, whichwill instead focus on specialized functionssuch as local prospecting, promotionalevents, vehicle handovers, after-salesservices, and mobility services.
Today
The traditionally adversarial relationshipsthat exist both between auto-makers anddealers, and between dealers and consumers could hardly be less conducive to trueCustomer Relationship Management(CRM). Yet, the appeal of CRM is growing.New information sources and sales channelscontinue to squeeze dealers and vehicleOEMs out of key consumer-facing roles,while at the same time creating a new classof better informed consumers who knowwhat they want, where they can get it, andhow much it will cost before they evencontact a dealer.
Meanwhile, corporate cultures andstructures seem unable to orientthemselves towards consumer-centeredinitiatives. Information still resides insilos within and across the retail channel,while the custodians of this informationremain unable and sometimes evenunwilling to share it. The prevailingtendency remains for OEMs to push carsout to dealers that operate under incentiveschemes with large bonuses for unloadingthem on customers by any means possible.
Our Solution
The marketplace for CRM is one of themost dynamic in the world, and Cap Gemini Ernst & Young is theundisputed European leader in the field3.Our CRM-Integrated Solutions aredesigned to help our clients rapidly andsystematically build the connectivity andbusiness intelligence capabilities for world-class CRM.
By fully integrating their front and back-office business operations, we help ourclients become more accessible and easierto do business with. At the same time wealso make it easier for them to know,target, sell to, and service their customersand prospects. Simply put, we give OEMsthe capability to interact with theircustomers the way their customers want.
Our CRM solutions cover marketing, sales,and customer service processes in Europe,the Americas, and Asia, as well as across allindustry verticals. With thousands ofconsultants worldwide and numerouscompleted projects, we have theexperience to address all issues relative toCRM including: strategy, marketing,implementation, delivery, changemanagement, and outsourcing.
As well as working in partnership withnumerous CRM providers, includingClarify, Siebel, and Oracle, we have alsodeveloped our own range of exceptionalCRM tools and accelerators,
Providing a Mobility Lifestyle
Picture yourself as a mobility provider to consumers who no longer own their cars but instead purchase
a range of transport capabilities including air, rail, and boat travel along with car rental. The opportunities
to interact with these consumers will have increased, along with their expectations. Better informed than
ever, they will demand consistency of service across each of the proliferating business-to-consumer
touch points, and they will seek a mobility provider that supports their tastes and lifestyle.
4
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including Call Center Assessment, CRMAssessment (CRM Index/IndustryBenchmark), Web Assessment, andRoadmap to CRM (Visioning).
Our Key Service Offerings in CRM
Successful CRM initiatives need to alignwith overall corporate values, and CapGemini Ernst & Young can help developthe roadmap and business case required togain full business backing. Once theprocess is underway, we provideMarketing Campaign Managementsolutions including promotionalcampaigns and loyalty/retention programsto help you make new customers ratherthan just one-off sales.
We also operate Real-timeMarketing/dynamic pricing consumeraccess channels offering relevantinformation and transactional capabilitiesdirectly to the consumer. These channelshelp integrate business intelligence at thepoint of customer contact using dynamicbehaviour-based offer creation, pricing, andscripting linked to a real-time customerfeedback loop.
Our Touchpoint Integration serviceenables our clients to offer a consistent,uniform customer experience across everyinteraction channel they have with theirconsumers. This provides the comfortingconsistency that consumers need, whilealso reinforcing brand image.
Our Customer Intelligence/Data Miningfacilities employ depth and breadth ofknowledge across all CRM businessprocesses, while our Call/Contact CenterSolutions are helping to evolve traditionalcall centers from cost to profit centers. OurSales Force Automation/Effectivenesstechnology enables further prospecting andselling capabilities by identifying cross-selling and up-selling opportunities.
Cap Gemini Ernst & Young ranks
as one of the world's largest
Customer Relationship
Management (CRM) systems
integrators and the number one
CRM consulting firm in Europe.
In fact Gartner lists Cap Gemini
Ernst & Young as one of the leading
providers of CRM services. 3
3 Gartner Group - January 2001 In a turbulent economy, CRM ESP's
must be agile. Colleen Amuso, Michael Maoz
5
Mindset
Strategy and Customer Philosophy
Value Segmentation Principle: Approach towards measuringvalue and managing customerrelationships
Customer Scorecard Principle: Applied performancemeasurements
Real-Time InformationManagement Principle:Approach towards applying real-time business intelligence
Collaboration Principle:Corporate philosophy
Connectivity
Process and Infrastructure
Institutional Memory Principle: Degree of customer viewcompleteness
Touchpoint Alignment Principle:Channel/touchpoint mix
One and Done Principle:Use and application of workflow
Closed-Loop Process Principle:Degree of front-office and back-office integration
Customer ExperienceManagement: Level of infrastructure integration
Two Dimensions in the CRM Equation
Cap Gemini Ernst & Young 2001
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Telematics: Your New Round-the-Clock Sales Channel
6
Operating in partnership with a variety oforganizations including telecomsspecialists, high-tech mobilecommunications product manufacturers,computer hardware providers, and evenyour competitors you provide a broadmobility-based service to your customers.No longer viewed as a vehicle maker, youare instead perceived as a service provideroffering a lifestyle brand.
Today
In this still immature market, numerousdedicated offerings are delivered withnegligible cost/benefit ratios. You have verylimited data on your customers lifestyles orhow they use their vehicles in fact, theonly time you receive data is when the carcomes into contact with one of your retail,service, repair or resale centers. Even thedata you can collect such as service,statistics, speeds, distances travelled, andon-board diagnostics is no use becauseyour company is not geared up to handle it,never mind use it to sell additional services.
Our Solution
Cap Gemini Ernst & Youngs expertise inTelematics solutions offers OEMs significantopportunities to improve the customerexperience. At the same time, OEMs canadd new revenue streams based on:safety/security, automatic collisionnotification, emergency response, stolenvehicle tracking, roadside assistance, remotedoor unlocking, location-based routing
assistance, real-time traffic information,asset management, fleet management,vehicle diagnostics, and data transmission.
Telematics could reduce OEM costs byimproving visibility of vehicle operatingparameters in the field (e.g. reduced warrantyclaims), and might also generate revenuefrom new, non-traditional sources such as in-car infotainment and mobility extension.
At present, most offerings for the consumersegment involve basic safety and navigationfeatures, but Telematics is forecasted togrow exponentially during the next five toten years. Some products are alreadyleading the way, and numerous others arestill being developed. The value web forTelematics has many players, but the firstmovers should wield considerable swaywith the customer. Telematics solutionsproviders have already taken a lead in thecommercial segment of the market bycreating tailored software offerings.
Combining our broad in-product softwareknowledge, our mobile solutionsexperiences, and our in-depth knowledge ofboth the Telecoms and Automotiveindustries, Cap Gemini Ernst & Young isuniquely placed to help you address thechallenges of Telematics. We can help youevolve your Telematics capabilities from adispersed mix of computing and call centercapabilities towards a completely integrated,multi-purpose facility communicating withall kinds of services on one platform andwith a minimum of human interference.
Picture yourself having 24-hour contact with your customers. Embedded technology within each vehicle
tells you how often and in what manner they actually use their cars, while also enabling two-way
communication between the driver and your customer call center. New revenue streams are developed
from the services sold through this medium, and customer retention rates rise as drivers grow more reliant
on your understanding of their preferences and your ability to meet their changing needs in real-time.
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7Our Service Offerings in Telematics
Cap Gemini Ernst & Youngs capabilities inTelematics include:
1.Embedded software deliverycapability, software factories, and fixed-time, fixed-date project capability.Currently we are undertaking a projectof this kind with a major OEM. We alsohave experience of working with a carmanufacturer to improve the speed andquality of its software.
2.High-level consulting on embeddedsoftware, dealing with issues such as: Configuration Management Software Process Improvement Requirement Management Integration Management
3.Experience of building MobileInternet business, and identifying andunderstanding the different value chainsin the market. We are also a facilitatorfor different content, network, anddevice suppliers, as evidenced by ourjoint venture with a major telco operatorand equipment manufacturer, along withMobile Internet Centers in Singapore,Utrecht, and Gothenburg.
4.Application Management on TechnicalSystems, taking over the maintenanceand updates of earlier versions ofsystems, freeing capacity for newdevelopment.
5.Architecture. Based on our IntegratedArchitecture Framework (IAF) approach,we can deal with the translation of
business requirements into technicalsolutions.
6.Usability. We have numerousconsultants working on the look and feelof these products, as well as thefunctional requirements for e-business.
7.Product Roadmapping and PortfolioManagement. We advise on whichproducts and technologies provideeffective re-use and avoid overlappingfunctionalities. Sometimes this is part ofour IAF approach, at other times it ispart of an independent consultingassignment.
Cap Gemini Ernst & Young is
leading the way in topical
industry research every year we
produce Cars Online, a global
consumer and automotive
channel strategy survey. It is an
empirical study of the potential
for automotive sales and
distribution through electronic
commerce.
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It costs $12m50m to set up a market-place; this implies an investment of $1 trillion by 2004, at which time over halfof the $3.4 trillion revenues from e-businesswill come from digital marketplaces.Meanwhile, B2B marketplace revenues areprojected to reach $1.7 trillion, with theautomotive industry as one of the majorplayers. There are over 1,000 independentmarketplaces, a figure that is expected togrow considerably before consolidating atapproximately 2,000.
Today
With Order-to-Delivery still taking up to70 days and vehicle developmentaveraging 42 months, digital technologiesthat facilitate collaboration and theintegration of product design and supplychain processes between enterprises are nolonger just an option they are the key tofuture survival in the industry.
Automotive market pressures are forcing theOEMs structural changes directly on to Tier 1 suppliers. Significant cost saving andoperational rationalization are a necessaryconsequence. Suppliers will need helpselecting the right technologies andachieving successful integration of systemsand processes. They will also need supportwith major cost-down programs across theextended enterprise, where the focus will beon plant rationalization and inter-companyalliances along with the streamlining ofother indirect areas of the business.
Our Solution
Cap Gemini Ernst & Young is the leadingmarketplace consultancy and was rankedNo.1 for integrated e-business strategy and implementation by ForresterResearch4. With our worldwide reputationfor innovative strategy work andexceptional delivery capability, we play acentral role in the creation and deploymentof electronic marketplaces. This is whymany leading industry exchanges,including the automotive industryspremier B2B exchange, have selected us astheir preferred consulting partner.
Our experience of helping companiesdevelop their marketplace suggests themajor benefits from participation lie withinprocess and organizational change.Marketplaces are rapidly evolving fromtheir original focus on procurement toembrace new product development andintegrated supply chain.
Service Offerings
Cap Gemini Ernst & Young offers businessconsulting, systems strategy andintegration support, CRM and supplychain management, strategy andtransformation, and business start-upsupport. For companies that have alreadydeveloped a marketplace strategy, we haveour Connect Solutions Centers a globalnetwork of technology consultants withleading-edge knowledge of the technologyyou will be implementing.
FastStart Your Marketplace
Picture a time when trade exchanges will manage your finance, purchasing, and ordering operations, as
well as large parts of your supply chain. These exchanges will move not only information, but also the
product itself. Eventually they will join across industries to enable end-to-end trading that will link right
through from B2B to B2C. Customers will then be able to buy commodity vehicles over an exchange not
dissimilar to that currently operated by the airline industry.
8
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9With so many B2B options available, it isvital to understand the advantages andimplications of each one. To achieve this, weprovide a B2B Roadmap showing howmarketplace initiatives can be tied to existingbusiness objectives and future strategies.Each initiative will be assigned a timeline,along with details of all the resources,personnel, technology, and time required toachieve its objectives. As a result, yourcompany will have an implementable actionplan, along with a business case that statesthe value your organization can derive fromB2B marketplaces.
FastStart
We offer speed to market with a FastStartengagement that compresses months ofresearch into a streamlined process. Wemake realistic plans based on yourcompanys infrastructure and then clarifyyour goals. We help you select the righttechnology and then guide you through tothe next step. Our goal-based initiatives arenot just identified but prioritized and weoffer comprehensive, informed decisionmaking often through our uniqueAccelerated Solutions Environments wherekey stakeholders can meet and worktogether during intensive, structured off-site sessions.
The FastStart Engagement Process
US CLIENT4"Cap Gemini Ernst & Young is the leading marketplace consultancy....... and was ranked number 1 for integrated business strategy......"
Forrester Fixing UK e-cl's Skills Deficit- May 2001 2000,
Forrester Research, Inc.
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Powering New Product Development in the emerging e-Collaboration environment
10
Picture a time when a brand new car can be designed and built in 12 months. Now you can respond
quickly and effectively to changing consumer tastes by engineering the cars people want when they
want them.
This will be achieved through a greaterapplication of analytical engineering,virtual design, and tighter collaborationacross the distribution network. Anincreasing focus on value-added activitieswill bring about significant productimprovements that enhance quality andreliability and result in greatly improvedcustomer satisfaction and loyalty.
Today
Auto-makers spend a great deal of timeand energy trying to predict whatconsumers will want from their vehicles inthree to four years time. Yet, even with theforecasted reductions in cycle time toapproximately 30 months, there remainconsiderable inefficiencies and numerousunnecessary iterations.
Global programs, increasing supplierdesign, and OEM-supplier consolidationare all factors that dictate a growing needto change the ways program teams operateand communicate. This is especially trueagainst a backdrop of shrinking cycletimes, intense competition, continualscrutiny of cost/quality, and greatercustomer demand for product innovation.
The real question is: does the model beinganalyzed truly reflect the latest design intent?Analytical engineering tools have improvedbut are still only as good as the models anddata being analyzed and there remainnumerous internal barriers to collaborationacross the product developmentorganizations within online exchanges.
If these challenges are to be met, e-Collaboration must support newapproaches and communications methodsamong all stakeholders in the productdevelopment community.
Our Solution
Collaborative Product Development is abusiness strategy that uses e-Collaboration,and new virtual design tools to launchinnovative products and services in themarket. It achieves revenue growth bytaking products to market faster and byencouraging product development processefficiency and effectiveness, minimizingnon-value-added activities andstreamlining development activities.
Any significant player in automotive mustdevelop an e-Collaboration plan thataddresses the issue not sequentially, butwith concurrent initiatives in three areas:internally; collaboratively with suppliersand consumers; collaboratively with anintegrated exchange that enables not onlydesign but also purchasing and supplychain activities.
Cap Gemini Ernst & Youngs HighPerformance Product Developmentframework (HPPD) is designed forcompanies that wish to leverage theirproduct development capabilities as acompetitive weapon to drive bothprofitability and revenue growth. In doingso, HPPD goes beyond the traditionalsupport of engineering processes (productdesign, engineering change management,and product data management) to embracethe entire product lifecycle:
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Product and portfolio planning
Advanced development
Product program execution
Post-launch enhancement and support
People, technology, and knowledgemanagement enablers
Having worked with a variety of Fortune500 companies including AutomotiveOEMs and system and componentsuppliers, our unique perspective andproven track record establish us as theleading provider of product developmentservices to manufacturing organizationsaround the globe.
Our project experience and research hasgiven us tremendous insight into theprocesses, technologies, and organizationalaspects required not only to deliver fast,effective product programs, but also toaddress such key areas as idea generation,technology development, and productportfolio management.
Our product development professionalsleverage this knowledge plus ourimplementation-based approaches to convertimprovement opportunities rapidly intobusiness results. By doing so, we have helpedclients dramatically improve their time tomarket, reduced the investment required tolaunch new products, and improved thesuccess rate of those product launches.
If your company faces similar challengesand has a history of poor productlaunches, if your technology constantlylags behind the competitions, or if yousimply want to improve your competitiveadvantage and increase market sharethrough improving product development,we can help you migrate to HighPerformance Product Development.
Service Offerings
We believe the ability to implementCollaborative Product Development isbased on leveraging different enablers in anew and integrated way. Our portfolio ofservice offerings enables us to address allthe key success factors and providessolutions for business and technical issues.
Our service offering covers:
Strategy Consulting
Business Solution Consulting
Technology Design, Implementation,Deployment, and B2B ApplicationIntegration
Cap Gemini Ernst & Young has hundreds ofdifferent resources involved in CollaborativeProduct Development organized in a global speciality Service Line CollaborativeProduct & Service Innovation.
The Service Lines
The main elements are:
B2B Collaborative OperatingSystem Design and Implementation
Collaborative Operating SystemDeployment
Dealer Portal Design,Implementation, and Deployments
New Product Development PortalDesign and Implementation
Development of Accelerated NewProduct Development Processes
Design of HPPD Processes andTechnologies for very large,complex products
Cap Gemini Ernst & Young 2001
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Managing the Speed of Change
12
Every important innovation creates a dislocation. New opportunities, new markets, and even some
reduction of cost will result, but these opportunities can also benefit your competitors, some of whom
may not be saddled with legacy systems.
Your anticipation of, or reaction to, suchdislocation may determine your ability tosucceed in the new business climate. But youdont have to go it alone. Cap Gemini Ernst &Young can provide the insight you need toexploit the full potential of your existingoperations, while preparing you for thechallenge of new and disruptive technologies.
With our innovative and creative accelerators(Accelerated Solutions Environment andAdvanced Development Centers), Cap Gemini Ernst & Young will help you tomeet and manage the speed of change, bydelivering the required strategies andsolutions and delivering them fast.
Accelerated Solutions Environment (ASE)
A 3-day intensive decision-making workshopthat brings together numerous differentgroups, including: representatives from thekey businesses, subject matter specialists,various other stakeholders, the Cap GeminiErnst & Young management team, and ourbest facilitators. The work is done in a uniqueenvironment with the capacity for 40 to 80participants who can be switched rapidlybetween the full group and breakout teams.The ASE affords ready access to extensivecommunication facilities, including links toCap Gemini Ernst & Young offices andknowledge centers around the world,databases and other online informationsources, and document production, videorecording/editing and support facilities. As itsname suggests, the environment is sustainedby a set of unique processes that enable largegroups to achieve breakthrough solutions inlightning-quick times.
Advanced Development Centers (ADCs)
These centers provide a unique means tocreate fast, effective technology solutionsfor businesses. We offer an in-house teamskilled in technology design, build, andimplementation, and we actively promoteand facilitate re-use of proven industrycomponents (e.g. database designs,technical architectures, softwarecomponents), saving time and moneywhile minimizing risk.
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Engagement team briefing
Structure pre-work knowledge gathering
Begin to gather information and assemble knowledge
START UP PROJECT
TEAM MEETING
SPONSOR TEAM
MEETING
1/2 DAY WALK
THROUGH
ASE EVENT
1/2 DEBRIEF
TRANSITION SUPPORT
Meet with ASE facilitator to co-design DesignShop
Discuss issues to be addressed
Decide on participant list
Start pre-work collation of Knowledge Objects
Workstreams gather appropriate current and future state knowledge
Manage participant list
Manage DesignShop expectations
Walk through DesignShop Agenda
Meet with ASE facilitator to debrief the DesignShop
Discuss achievements
Design the work product
Discuss the preparation and delivery of appropriate work products
Engagement team receive and integrate the DesignShop outputs into project workstreams
-30 days -21 days 0 day 24 days13 days 1 day Scan Focus ActThe ASE accelerates decision making by using a Scan - Focus - Act model
SCAN Build foundation
for a high-performance team
Engage with industry trends, industry experts, and leading practices
Create a common language
Uncover critical assumptions and issues
Explore metaphors
Create visions of solution
FOCUS Test models and
play What If? Rapidly
prototype potential solutions
Evaluate options Clarify
expectations Uncover and
remove barriers to change
Address the situation in all its complexity
ACT Create group
alignment and intention to act
Make definite decisions
Engineer all aspects of the solution through parallel processing
Establish detailed long and short-term action plans
Preparing for the ASE
13
Your Future...?
What does the future mean for you? Can you see yourself and your organization in the picture painted
above? Do you have a choice? How do you stay ahead of the competition?
The future starts today, and Cap GeminiErnst & Young is helping clients across theglobal automotive industry to build theirown future. We can do this because wehave something unique: an innovative, yetpragmatic set of solutions that combines aspeed-to-market approach with arecognized capability for delivering abovecustomer expectations.
Whats more, we remain the onlyconsulting company in the world thatmeasures and publishes client feedback onprojects we implement. As world leaders in
the automotive industry, Cap Gemini Ernst& Young has an unparalleledunderstanding of the industry, a hugebreadth of capabilities, and a proven abilityto deliver anywhere in the world. Weemploy dedicated automotive industryconsultants in bases worldwide performingmultiple engagements with every OEM, aswell as with the leading B2B exchange,many Tier 1 and Tier 2 automotivesuppliers and exchanges, and numerousmarket-leading automotive retailers.
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Our People Deliver
14
Our companys reputation stems from our uncompromising focus on delivery. We have proved time and
again that we can deliver results and we have a process, unique to the industry, that measures and
records our clients satisfaction: OTACE (On Time and Above Customer Expectation).
OTACE The Key is Delivery
Many consultancies provide strategicvision, but do they follow through tocompletion of the project? We do.
OTACE is not a vague philosophy oraspiration. We work closely with ourcustomers to measure our performanceand then we publish the results. OTACEhelps us to understand our customersbetter and ourselves.
Its a tough standard, but a rewarding one.Especially when our customers tell us wehave exceeded their expectations.
Global and Local Reach
We have critical mass in 30 differentcountries around the world, delivered viaour eight regional organizations all ofthem powerful, fully capable businesses intheir own right. This enables us toaccompany our multinational clients whilethey roll out change across differentcountries. While doing this, we can bringbest practice from one region to anotherand our global reach ensures our clientsalways receive the best we can deliver anywhere, anytime.
Alliance Partners
We have built a strong link with ouralliance partners. These include SunMicrosystems, Microsoft, Oracle, Siebel,Cisco Systems, SAP, Manugistics, i2, andHP, all of them specialists in deliveringspecific IT solutions. Together with ourpartners, we can offer a full breadth anddepth of capabilities and resources fromstrategy to IT implementation to e-business.
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Our Breadth of Services
Cap Gemini Ernst & Young has been in theApplications Management (AM) businesslonger than anyone else and we were thefirst to market an Application OutsourcingService in the early 1990s. We have agrowing range of key service lines and newmarket-focused offerings, including arounda hundred key offerings that enable us todeal with virtually any and everyconceivable customer requirement.
These service lines lie at the heart of theCap Gemini Ernst & Young approach tothe marketplace. They enable us to identifyand re-use best practices for the benefit ofall our customers, removing theuncertainty and the unacceptablevariations in delivery quality that have longbeen endemic within IT and consulting.
They provide the built-in centers ofexcellence on which we can rapidlydevelop new solutions, and they are key tohigher levels of agility, consistency,productivity, and quality for all our clients.
Each service line consists of:
Methods, tools, and techniques
World-class alliance partnerships
Ability to mobilize world-class humanexpertise in support of offerings
Capture and roll-out of best practice
Technology Consulting
Advanced Development and Integration
Support Services
Network Infrastructure Solutions
Technology
Applications Management
Infrastructure Management
Business Process Management
Operate
Supply Chain
Customer Relationship Management
Extended Enterprise Applications
Euro Transformation
User-Centered Solutions
BusinessSolutions
Consulting
Strategy and Transformation
e-Strategy
m-Commerce
B2B Marketplaces
StrategyConsulting
Our global network of centers supports these services
Cap Gemini Ernst & Young Delivers the Full Service Spectrum
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We have recently been declared
the Automotive Consultancy
Company of the Year, 2001, by
The Institute of Transport
Management
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Giving you the Confidence to Move Forward
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Cap Gemini Ernst & Young is one of the largest management and IT consulting firms in the world. The
company offers management and IT consulting services, systems integration, and technology development,
design, and outsourcing capabilities on a global scale to help businesses continue to implement growth
strategies and leverage technology in the new economy. The organization employs approximately 60,000
people worldwide and reports global revenues of about 8.5 billion (2,000 pro forma).
Our mission is to help companiesworldwide to optimize their operations by improving their use of people,management, and IT. We help our clientstake innovative strategic decisions andthen work with them through businesstransformation and then support.
Whether we are using e-businesstechnologies to rationalize our clientssupply chain or enhancing their customerrelationships to increase demand, ourobjective is to devise and then deliversustainable competitive advantage.
For more information about Cap GeminiErnst & Youngs automotive capabilities,please call +44 (0) 845 603 3331, e-mail [email protected] orvisit www.cgey.com
Cap Gemini Ernst & Young is the
global leader in applications
management. 5
5 IDC European Report 2000 'AM -
Overshadowed by ASP, but more clients