Businessmodel of Capgemini

Customer Segments

Capgemini has a mass market business model, with little differentiation between customer segments. The company targets its offerings at organizations of all types seeking consulting, technology, and outsourcing services. That said, it is noted for its expertise in the public sector and the utilities, financial services, consumer products, retail, and telecommunications industries.

Value Proposition

Capgemini offers two primary value propositions: performance and brand/status.

The company has demonstrated strong performance. It maintains a program called Accelerated Solutions Environment (ASE) that has been used by over a third of FTSE 100 and Fortune 500 firms. The purpose of the initiative is to gather key stakeholders from different functions within a given organization so they can work together to come up with creative solutions. This activity occurs in events lasting one to three days, hosted by an Accenture ASE facilitation team. The program has generated many specific positive outcomes, including the following:

• A *Fortune *500 firm reduced more than $4 billion in procurement spending
• A fashion company integrated an end-to-end operations planning and sales process

• An international telecommunications provider identified five new “blockbuster” products The company has established a strong brand as a result of its performance. It is one of the world’s largest consulting firms with 180,000 employees in more than 40 countries, and 2015 revenues of €11.9 billion. In addition, it has won many honors, including the following:

• SAP Pinnacle Award for Services Transformation Partner of the Year (2015)
• Recognition as the “Best Performing Brand” by the Managing Partners’ Forum for Management Excellence (2015)
• Placement in the “Winner’s Circle“ for Finance BPO by HfS Research Blueprint (2015)
• Recognition as the “World’s Most Ethical Company“ by the Ethisphere Institute three years in a row (2013 – 2015)
• Cisco Supplier Quality Award for Delivery Excellence (2014)
• Recognition as a Leader in the SAP Services Report by Forrester Research (2014)
• Recognition as a Leader in Gartner’s Magic Quadrants for Global F&A BPO, SAP Application Management Service Providers, and Oracle Implementation Services (2014)
• Three Partner Excellence Awards from Pegasystems (2014) ### Channels

Capgemini’s main customer acquisition method are the extensive networks of its partners. The company promotes its offering through its social media pages and participation in various financial, business, and recruitment events.

Customer Relationships

Capgemini’s customer relationship is primarily of a dedicated personal assistance nature. Customers receive one-on-one assistance from its employees.

That said, there is a self-service component. The company’s website features a “Resources” section that includes numerous self-help tools, including books, brochures, case studies, fact sheets, reports, presentations, demos, and infographics. There is also a community element in the form of a forum called “Expert Connect”, where over 1,453 company experts make themselves available online to share insights and answer questions.

Key Activities

Capgemini’s business model entails designing and developing its problem-solving solutions for clients.

Key Partners

Capgemini maintains the following partnership programs:

Global Technology Partners – The company maintains alliances with leaders in the technology industry in order to identify major trends and make them available as soon as possible to its customers. Specific partners include Cisco, Dell, EMC, Fortinet, Google, HP, IBM, and Intel.

Consumer Products & Retail Alliance Partners – The company works with various tech firms to provide clients with cutting-edge solutions specific to the consumer products and retail industries. Specific partners include SAP, JDA, Oracle, Salesforce, and RedPrairie.

Key Resources

Capgemini’s main resources are its human resources, including its staff of consultants who maintain expertise in various industry sectors and its technology employees who help design solutions.

Cost Structure

Capgemini has a value-driven structure, aiming to provide a premium proposition through significant personal service. Its biggest cost driver is cost of services, a variable expense. Other major drivers are in the areas of sales/marketing and administration, both fixed costs.

Revenue Streams

Capgemini has one revenue stream, the fees charged to its clients for its selection of services. These fees vary by type of client and individual project.