Consolidating ADM Service Standardization for a Large Global Supplier in Paper, Pulp, and Energy

Benefits: 

• Over 15% productivity gains in two years across ADM services
• Year-on-year cost savings of over 25% 
• Comprehensive vendor consolidation and application rationalization 
• 24×7, on-call, and weekend support
• Heightened efficiency, improved data analysis, and faster time to market
• Complex transition of over 125 applications from more than 25 incumbent vendors onto a single vendor system

 A global supplier of process technologies, automation, and services for the pulp, paper, and energy industries was experiencing several issues across its IT application landscape. The company’s engineering IT portfolio and enterprise resource planning (ERP) were being managed by multiple vendors, which was leading to higher costs and operational difficulties. While applications were being delivered by over 25 different vendors – adding to the complexity in harmonizing the landscape and upgrading it to with technologies. Additionally, legacy engineering systems and a lack of documentation, process definition developments, and test environment availability were resulting in unproductive services. 

Standardized and industrialized ADM services delivery

To solve these challenges, the company was looking for a single vendor to help it drive growth and ADM service delivery standardization while reducing operational costs. So, the organization reached out to Capgemini simplify its heterogeneous application landscape, shift internal focus from run to new development, and streamline its applications and IT services portfolio. 

“Capgemini was well-engaged in delivering quality and on-time results – their commitment was evident.” 

Client’s Program Director

Capgemini began by stabilizing the organization’s application landscape within the first six months of the project. This included over 125 applications spread across various domains from over 25 incumbent vendors and involved over 40 legacy and new technologies (including core engineering applications). Capgemini was now serving as the organization’s sole provider of engineering, PLM, and ERP application support. In doing so, the company hoped to build an agile IT estate, improve innovation, accelerate time to market, reduce costs, and speed up digital transformation across more than applications. 

To accomplish this, the Capgemini team applied everything that ADMnext has to offer. This included standardized and industrialized delivery to manage growth, along with a demand-based rate card to develop new capabilities and a fixed price for application management (AM) services. In addition, the partners facilitated offshore-centric and multi-site delivery with more than 100 staff across six locations and created an end-to-end value chain across digital, R&D, engineering, manufacturing, supply chain, sales, and after-sales. 

In serving as the company’s partner of choice for over ten factories worldwide, Capgemini delivered a joint governance program to push incumbents for heightened collaboration on transition activities. Here, client-transferred resources (rebadges) were utilized to facilitate the necessary knowledge transfer during the transition. Detailed application overview documents were also created to retain knowledge, and these were then reviewed and signed off by the client and incumbent vendors. 

Capgemini played a vital role in deploying uniform service delivery processes and standardized all AMS services using ServiceNow. This helped meet the financial goals of predictable cost of service and assured cost reductions. A Lean governance model, optimization of travel for knowledge transfer, just-in-time staffing for the transition, and earlier than planned go-live for one of the domains helped achieve a higher contribution margin than planned. Capgemini also worked to meet the client’s strategic objectives by focusing on key areas like Multi Speed IT, Business Process Mining, Cloudification, Sales and Marketing Automation, and Intelligent Industry (SMART Factory). 

Additionally, the Capgemini team embarked on a joint client initiative called “Idea Drive” for identifying and nurturing new ideas. To date, about 150 ideas have been generated with a 40% implementation rate. Capgemini also contributed to building business end-user knowledge management and has published over 345 knowledge articles within the client’s knowledge management portal so far. This has helped business users resolve critical issues on their own. 

Overall, the Capgemini team was able to deliver the following benefits: 

• Over 15% productivity gains in two years across ADM services 
• Year-on-year cost savings of over 25% 
• Comprehensive vendor consolidation and application rationalization 
• 24×7, on-call, and weekend support 
• Heightened efficiency, improved data analysis, and faster time to market 
• Complex transition of over 125 applications from more than 25 incumbent vendors onto a single vendor system 
• Rationalized and transformed over 40 legacy technologies, including core engineering applications 
• Lean governance model, optimization of travel for knowledge transfer, and just-in-time staffing for the transition. 

Putting pen to paper with Capgemini’s ADMnext 

The company is excited to expand upon this collaboration and its resulting benefits by working more closely with the Capgemini team in different business areas. For example, the partnership has been expanded to include testing services for multiple applications. The client is looking for Capgemini to support its other business priorities such as Cloudification, Digital Internalization (Enterprise Data Management using Digital & AI capabilities), Digital B2B Customer Experience, Sales Automation, Field Service Management), Factory IT and Edge Computing for distributed control systems. 

The company also wants to fully exploit Capgemini’s capabilities in engineering and manufacturing via Capgemini’s Engineering Services with Industry 4.0 and Industrial Internet of Things. Additionally, Capgemini has now extended its footprint beyond application services by winning key projects for API-fication and API-driven integration, an eStore, the Sogeti Testing LEAP Forward program, the Docker upgrade, the Zabbix upgrade, and the Amadeus Project to name a few.

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