Capgemini Invent launches, consumes Capgemini Consulting brand

12 September 2018 Consulting.us

French multinational consulting, technology, and outsourcing firm Capgemini has launched its new Capgemini Invent brand. The 6000 person-strong global business will encapsulate transformation and strategy consulting arm Capgemini Consulting, data science capabilities from the rest of the firm, creative agencies, and recently acquired US innovation consultancy Fahrenheit 212 and US customer engagement firm LiquidHub. The combined business line will help clients successfully transform their firms for the digital future.

Paris-based Capgemini is one of the world’s largest professional services firms, providing IT consulting, outsourcing, and managed services to clients around the world. The firm draws on a huge base of 200,000 employees across 40 countries, of whom nearly 100,000 are in India. The French multinational posted revenues of €12.79 billion in 2017.

The company moved into the US market in 2000, with headquarters in New York City. The firm now has additional offices in Arizona, California, Georgia, Illinois, North Carolina, Puerto Rico, Massachusetts, Michigan, Missouri, New Jersey, New York, Ohio, Pennsylvania, Texas, and Virginia.

Capgemini has, in recent years, acquired a number of prominent of US-based firms. In 2015, its acquired New Jersey-based multinational IT services firm IGATE, which at the time had over 31,000 employees in North America, Europe, and Asia-Pacific. The massive deal was worth a reported $4 billion.

In 2016, the firm acquired New York-based Fahrenheit 212, a digital innovation strategy and design company. The firm combined innovation strategy and transformational thinking to help companies develop new products and services.Capgemini Invent launches, consumes Capgemini Consulting brandEarlier this year, Capgemini bought Philadelphia-based LiquidHub, an analytics-powered digital customer engagement firm specializing in the delivery of compelling customer experiences.

IGATE was rolled into Capgemini’s massive IT and managed services arm, while the latter two firms were being integrated into the firm’s smaller transformation and management consulting division, Capgemini Consulting, which numbered around 4,000 people globally.

Now, the firm is retiring its Capgemini Consulting brand and launching the Capgemini Invent brand. The new brand will combine the multi-disciplinary strategy and management expertise of Capgemini Consulting, key expertise in technology and data science from the rest of the firm, the recent acquisitions of customer engagement firm LiquidHub and innovation consultancy Fahrenheit 212, and the creative strengths of ad agencies Idean, Adaptive Lab, and Backelite. The new global business line will number 6,000 professionals in 30 offices and 20 creative studios worldwide.

The move basically wraps together digital transformation and strategy consulting, data and analytics, and creative/marketing capabilities into one brand.

"We have built Capgemini Invent to meet increasing client demand for our advanced digital services," commented Paul Hermelin, Chairman and CEO, Capgemini Group. "This integrated global business line combines perfectly our specialist capabilities and expertise that are needed to design, create, and trial new digital solutions and business models of the future, all supported by the recognized strengths of the Group to implement them at speed and scale."

According Capgemini, despite huge investments in digital transformation, organizations feel less equipped with the right leadership capabilities than they did six years ago, and less than half feel they have the right capabilities to advance digital transformations.

Capgemini Invent aims to solve clients’ digital transformation problems, working end-to-end to accelerate ideas into prototypes, and then into scalable products and services that drive sustainable growth.

“Capgemini Invent offers a new model for digital transformation delivery, bringing key sector expertise together with a broad cross-section of disciplines, from strategy and technology to data science and creative design,” said Cyril Garcia, former head of Capgemini Consulting and now CEO of Capgemini Invent.

The new business will be comprised of six integrated practices:

  • Innovation and Strategy: helping firms design and build the products, services, and business models of the future.
  • Customer Engagement: helping clients improve customer relationships and add value to every interaction
  • Future of Technology: helping businesses utilize emerging technology through custom solutions
  • Insight Driven Enterprise: helping clients leverage AI and automation to deliver real-time decision-making and financial excellence
  • Operations Transformation: revamping supply chains, asset management, and operational processes to drive productivity and decrease time to market
  • People and Organization: helping businesses change for the digital age through culture, workforce, and skills development.

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Simon-Kucher & Partners reports record revenue growth

14 February 2019 Consulting.us

2018 was a banner year for Simon-Kucher. The consulting firm, known for its expertise in pricing strategy and marketing, posted revenues of $360 million – an increase of 23% over 2017. The Bonn, Germany–based firm saw explosive growth in the US, where revenue jumped by 35%.

The results for 2018 were the strongest growth figures that Simon-Kucher has seen in over a decade. Founded in Germany and breaking into the US market in 1996, the firm has seen robust and consistent growth since it shattered the €100 million ($119 million) fee income barrier in 2010.

Demand for effective digitalization services was key to the firm’s stellar global revenue results in 2018. Simon-Kucher CEO Georg Tacke notes that though firms have spent massive sums on digitalization, many have seen disappointing results. “The solution is therefore smaller, clearly defined, and highly-profitable digitalization projects, rather than just digitalization for digitalization’s sake,” explained Tacke. “This is exactly where companies turn to us for our support and expertise.”

Simon-Kucher’s revenue growth rate was boosted by excellent performance in the US, where fee income grew by 35% – driven by consulting work for the booming software, internet, and media industry.

Simon-Kucher & Partners reports record revenue growth

“We continue to be closely linked with the Unicorn ($1 billion+ valuated startup) community in the North America, having now worked with over 25 of them,” commented Brad Soper, partner and Atlanta office head. “Most notably, this year we created a loyalty program for one of the ride sharing companies.” 

Simon-Kucher has also seen significant demand for top-line growth services from private equity–owned firms looking for a boost in portfolio valuation from effective pricing. In total, the consulting firm serves over 20 industries, including banking and financial, consumer and retail, healthcare and life sciences. 

Last year, the firm's business-to-business (B2B) practice supported a top packaged ice manufacturer with a revamped channel pricing strategy, developed a pricing program for a large foam manufacturer, and helped numerous distribution firms plan for tariff impacts.

Uncertain economic times can help drive demand for pricing advisory, as firms look to maximize their top line in less than perfect circumstances – battered by tariffs and risks surrounding international trade, a forecasted global downturn, and fluctuating commodity prices.

The above-mentioned factor will be an even stronger influence on the firm’s 2019 business. “The overwhelming theme this year will be pricing in uncertain economic environments,” remarked Soper.  “Whether we have rising costs due to tariffs or raw material cost fluctuations – companies need to be proactive in their pricing strategy.  In addition, we see many companies continuing to innovate – which calls for a departure from a historical cost-based pricing approach to value-based.”

Meanwhile, Simon-Kucher also posted excellent growth numbers in China, where revenue jumped by over 40%. Tacke noted: “China is becoming increasingly important for the international consulting market. At the moment the share is still low – but if the positive trend seen in recent years continues, China will soon become a permanent fixture for the industry.”

In its home market of Germany, Simon-Kucher’s revenue grew by 25%, outstripping the 8.4% consulting industry average in the country by a wide margin.

The firm is forecasting another strong year in 2019, with a revenue target of $400 million. Simon-Kucher will also look to expand its 1,300-person global workforce with an additional 400 associates this year.

In the US, the company is planning to open its seventh office in Houston this year, presumably to enable greater opportunities in Texas' booming energy sector. The office will be led by partner Philip Daus.

Last year, the consultancy opened a new location in Chicago. Based out of Boston in the US, Simon-Kucher has further offices in Atlanta, Mountain View (CA), NYC, and San Francisco.