FD4DI and the portfolio approach to innovation

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Learn how the Capgemini SAP Center of Excellence is navigating innovation in this VUCA (volatile, uncertain, complex, and ambiguous) world.

In my last post, ‘Simplify your business complexities with FD4DI’ we took a sneak peek at how Capgemini’s SAP Center of Excellence and the FD4DI initiative simplify business complexities while continuously innovating new products and processes.

Coming back from SAPPHIRE NOW 2018  where we showcased our prowess in the SAP landscape, in this post I will now share how we navigate innovation in this VUCA (volatile, uncertain, complex, ambiguous) world.

“Invest for the future,” “long-term ROI,” “Increased R&D budget allocation” – sounds familiar? These are just some of the phrases you are likely to hear from people advising you on innovation. However, the true story typically revolves around “tighter budgets” and “higher needs for specialization” despite a “blurring of the product and services market.” The significance of the change in the ecosystem becomes apparent when, for example, Apple announces that its services revenue during the last quarter amounted to $9.2 billion. Similarly, Microsoft 365 is more than just a “solution.” It is a complete ecosystem of hardware, software, and services central to Microsoft’s cloud strategy. We notice a similar trend and path taken by Google, Oracle, and of-course SAP.

So, how should a company innovate? How do offerings develop? How do offerings & innovation relate to a particular GTM strategy? To tackle these questions, Capgemini’s SAP CoE took a portfolio-theory approach. My team went back to the drawing board and first clarified basic & frequently-used terminology. We then aligned our road-map vision with, both, the external market and the constraints we had to work with. This provided an immediate perspicuous visibility of our assets and helped build on the idea of ‘the whole being more than the sum of its parts’. It gave us much-needed clarity for weighing the variance from our Innovation Design Framework you read about in my last post.

More concretely, it became apparent that we could focus on new business models under the FD4DI initiative. For example, monitoring sensors in vehicles would make it possible not only to have a more efficient vehicle but also to think of new recurring revenue models, such as ‘lease-as-a-service’ instead of a one-time sell. Thus, began a journey towards conceptualizing the predictive-maintenance-in-a-box offering. Built on the powerful SAP Leonardo platform, the offering provides advanced analytics and algorithms to rapidly make the transition from reactive or schedule-based maintenance to proactive, predictive maintenance while opening doors to new business models.

Underlying technology shifts need a response faster than ever. A highly flexible interface, diligent internal collaboration, and a systemized portfolio-innovation approach are a good place to start. To learn more about the FD4DI initiative and the related use cases, visit the following page. For the innovations in the SAP CoE, please contact Valery Smague or me, Aditya, and we can collaborate!

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