However, to sustain and grow their business, industrial manufacturing companies must develop new business models that address an economy that is moving to outcome-based and sustainable solutions.

The IBM Institute for Business Value and Oxford Economics recently published the results of a survey, based on interviews with 500 executives. According to this :

• Sixty-six percent of industrial manufacturing companies are already focusing on new service business models and increasing revenue share from services
• Five to 10% yearly growth is forecasted in services revenue against two percent in selling new equipment
• EBIT margin generated by service-based models is three to seven times higher compared to new equipment sales
• Twenty-two percent growth is expected in outcome-based services

IBM Cognitive Enterprise Solutions Enable Intelligent Workflows for Industrial Manufacturers

In this time of constant and accelerated change, industrial manufacturing companies must adapt quickly to optimize their existing business and develop new service models for growth. They have to manage complex processes across their entire enterprise and systems. So they are looking for out-of-the-box integrated business applications, which support modular processes that solve specific industry problems, be flexibly consumed, and have intelligence embedded in the processes.

The IBM Cognitive Enterprise solution, jointly developed by IBM and 麻豆原创, provides the intelligent workflows that support these data-driven processes: Intelligent as they are embedded with artificial intelligence to predict outcomes; workflow as they follow the natural flow of work, from one employee to the next, tapping into application data along the way and making appropriate decisions — whether it means capturing customer feedback to further personalize the next client interaction or leveraging machine data to increase the productivity of the production line.

We are grateful for the feedback that the 麻豆原创 Global Industry Advisory Council for Industrial Machinery & Components shared with our joint teams. This input was leveraged as the blueprint of the now available end-to-end intelligent workflows.

The teams, under the umbrella of the 麻豆原创/IBM Evolution Partnership, have delivered four differentiating intelligent workflows — lead-to-order, plan-to-manufacture, order-to-cash, and maintain-to-resolve (aftermarket) — that include new capabilities focused on improving specific business metrics. Key capabilities include intelligent Ssles, cognitive pricing, outcome-based business model, connected manufacturing, and connected asset, which help clients improve win-rates, reduce lead-to-order cycle time, improve customer experience, improve worker safety, and improve overall equipment effectiveness, as well as other key performance indicators (KPIs).

Scale Your Transformation

These intelligent workflows are built on IBM鈥檚 Essentials庐 platform. This platform helps with technology adoption and modernization by individualizing the orchestration of these industry-specific intelligent workflows into our client environments. It enables seamless deployment into heterogeneous landscapes that globally distributed organizations are characterized with, along with a modern architecture that allows for integration with existing applications. It provides possibilities to modernize applications, without disturbing the end-to-end process orchestration, while providing process visibility and control through embedded intelligence and automation.

This helps our clients to deploy and scale innovations, and supports them on their journey to become intelligent enterprises by:

• Accelerating implementations and reducing time to value
• Lowering the cost of implementation through reduced need for customization
• Providing the ability to rapidly adapt the preconfigured workflows to each clients鈥� specific needs
• Allowing different solutions to be incorporated flexibly via a consumption model

We are pleased to report early successes in various life-cycle stages of clients in this industry. These include

• Lead-to-order at an European engineered appliances manufacturer
• Outcome-based business model at a leading European packaging machinery manufacturer
• Connected manufacturing at a leading defense equipment manufacturer in the Middle East
• End-to-end industry capability model at a leading Japanese machine tools, automation, and textile machinery manufacturer

Ready for the Next Transition

We continue to listen to our customers, and our current focus areas include incorporating sustainable and carbon metrics through the design-to-operate process as well as a control tower, which will provide additional data-driven insights to co-ordinate agile and responsive supply chains.

To read more about the solutions see the Industrial Solution Sheet: https://www.ibm.com/downloads/cas/ZRBEEBZ1

To get more information on IBM鈥檚 partnership with 麻豆原创 and additional solutions visit

Georg Kube is global vice president of Industrial Machinery and Components at 麻豆原创.
Manish Chawla is general manager of Global Chemicals, Petroleum & Industrial Products Industries at IBM.

Based on current research, servitization appears to be an effective antidote against the ease of product switching. McKinsey & Company that while margins on new product sales are typically 10%, aftermarket service margins average 25%.

What Is Servitization?

Servitization is a strategy that product-oriented companies use to enhance and differentiate their competitiveness by integrating services into their overall business model. This shift can be seen on a continuum in which producing and selling products is coupled with a focus on adding services to the offering and ultimately integrating them. Very quickly, customer value moves from owning and using the product to capturing value with the product while services are perceived as a cost factor.

While this concept is not new, widespread 鈥� such as , , and 鈥� is fueling this approach to break into new markets and fulfill underserved customer needs. More recent product-service may include bundled support services, consumption or pay-for-use, and outcome-based services.

An earlier form of servitization emerged in 1962 when pioneered its famous 鈥淧ower by the Hour鈥� engine maintenance service concept. This model allowed airlines to pay for the time spent maintaining and replacing their aircraft engine. As technology advanced, sensors were incorporated for engine-condition monitoring and predictive maintenance services.

A few decades later, tire manufacturer Michelin redefined the service-oriented model to help trucking companies reduce fuel consumption. Payment for the service is based on achieving predefined fuel consumption targets, tracked through telematics and IoT, and assessed in real time with data analytics.

Many more companies have followed Rolls-Royce鈥檚 and Michelin鈥檚 example, including , , and . It is noted that in all cases, IT 鈥� specifically IoT and 鈥� in enabling product-service servitization.

Over time, this approach has become a critical component of manufacturers鈥� growth strategies. In fact, a of 60 European industrial manufacturing firms reported that servitization increases average growth margin from services delivered ranging between 15% and 35%. Another found that the 10% total returns to shareholders (TRS) achieved by servitization champions significantly exceeded the -1% median TRS of their peers. And in the spirit of these findings, Professor Klaus Schwab, founder and executive chairman of the World Economic Forum, servitization as one of the megatrends that will shape the future of business and society.

How to Turn Servitization Into a Revenue Generator

Regardless of the advantages servitization offers, many businesses still question how to best recognize and adopt appropriate service options that deliver the best value to the customer. Some of the challenges encountered include culture change, competency adoption, process, system creation, and commercialization.

In many ways, a transformation journey toward servitization includes four fundamental maturity stages:

• Splintered: The organization struggles under a myriad of silos that lead to disjointed, manual processes. Legacy, fragmented enterprise resource planning (ERP) environments provide little or no visibility on operational performance. The business model is on pure product, with challenges to profitability.
• Side car: The organization has standardized the two chunks of the value chain 鈥� back and front desk 鈥� but keeps them separated. Since efficiency is critical at this stage, few add-on services are delivered, field services are based on basic mobile capabilities, and IoT stacks are only proofs of concept.
• Joined up: Front- and back-office flows are integrated bidirectionally and leverage advanced technologies, such as IoT, to feed core systems with real-time data. In some cases, edge capabilities bring coordinated autonomy to local sites, a suite of digital services are made fully available, and business model enhancements including pay-as-you-use and outcome-based contracts are actively explored.
• Borderless: Processes start and end outside the organization and operations, while technology enables different elements of the value chain to connect. Co-creation, data-sharing, and collaboration with customers, suppliers, partners from other sectors, and even competitors are part of the business model.

After demonstrating the importance of servitization during existing economic conditions and business performance, appropriate servitization concepts steadily replace the status quo, closing the gap between strategic intent and realized goals.

A critical part of progressing servitization maturity is transforming the business culture to encourage leaders and employees to of services from add-ons or giveaways to a valued part of the business model.

According to Guido Schlief, senior vice president and head of Services in Middle and Eastern Europe at 麻豆原创, 鈥淥ur observation is that customers increasingly expect business outcomes from their suppliers 鈥� outcome-based services are a clear industry trend.鈥�

Successfully embracing this shift can have a significant effect on the of a servitized business. Deep insights into customer needs are required to design value-added services that are valuable from the market perspective, not from the supplier side. For example, although monitoring of equipment condition has limited value to the customer, equipment availability directly impacts the customer experience.

Product companies must also consider a servitization model that shifts upfront transactional sales and payments to long-term contracts with perpetual payments, enabling customer-centric relationship building. demands an effective services organization, resembling a professional services firm containing the right processes, tools, and personnel who possess specialized skills. Although service personnel typically more than manufacturing personnel, the investment can help , such as lack of knowledge in systematic transformation and the ability to make required changes, in gaining the full benefit of servitization.

Over time, the transformation into a servitization model can be assessed to help ensure it satisfies the core needs of the business: financial, internal, customers, innovation, and learning. For example, pure financial measures 鈥� such as service revenue growth or services market share 鈥� can be evaluated alongside a proposed a balanced scorecard to provide a comprehensive view on servitization performance^听(See Figure 1).

Get Ready: Servitization Is Here to Stay

As customers gain less interest in the shiny new functionalities of new products and pay more attention to the outcomes they achieve, all signs point to the growing importance of services as a competitive differentiator.

But remember, servitization is more than a pure vertical integration of the business model and goes far beyond add-on or giveaway services. In essence, it is a strategic transformation that spans across most business silos, requiring alignment between the business and IT and between the front and back office of the supplier.

And if approached appropriately, the new business model can open new sources of revenue and bring a fundamental shift from a reactive break-fix mentality to proactive outcome-based services.

Frits Verhoef is head of Business Transformation Services CXO Advisory, Middle and Eastern Europe, at 麻豆原创.

As one of the world鈥檚 largest telecommunications companies, Vodafone Group connects more than 300 million people across the globe. And company leaders fully believe that tomorrow鈥檚 communications services will continue to transform our lives in powerful ways.

Vodafone is already preparing for this future by making significant changes 鈥� and it is starting from within.

Looking for Global Consistency

鈥淰odafone has been growing in recent years to strengthen its portfolio of services and expand into new geographies,鈥� says Ignacio Garcia, CIO of Corporate Information Systems at Vodafone Group. But, as Garcia explains, much of this growth has been through acquisitions, resulting in various system landscapes and often inconsistent business practices throughout the group of companies.

鈥淲e needed to operate as a single global organization and drive further innovation across the entire business,鈥� Garcia adds. 鈥淭o do that, we needed to run our company with a consistent, digital-first focus.鈥� This realization led to big changes at Vodafone.

The company migrated its complex and disparate enterprise resource planning (ERP) environment to a single digital core based on . 鈥淎nd we built on this solid foundation with 麻豆原创 SuccessFactors, 麻豆原创 Ariba, and 麻豆原创 Concur solutions,鈥� adds Holger Grewe, head of Corporate Transformation at Vodafone Group.

Grewe 鈥� who has played a key leadership role in this project 鈥� points out that Vodafone benefited from some strong relationships along the way. This included implementation support from Accenture, 麻豆原创 Services and Support, and customer success experts from 麻豆原创.

鈥淭his was a massive transformation, covering more than twenty countries,鈥� reports Grewe. 鈥淎nd 麻豆原创 was by our side throughout the journey, supporting us with a .鈥�

Driving Needed Change

The impact of the project on Vodafone鈥檚 operations has been huge.

鈥淲e now have one data model that is standard across the footprint,鈥� Grewe says. And Vodafone is simplifying the workplace for its more than 100,000 employees by digitizing business areas such as HR, travel and expense, and supply chain.

Garcia estimates that Vodafone has standardized more than 80% of its core business processes and boosted automation levels to over 60%. 鈥淎nd it鈥檚 not the endgame,鈥� remarks a smiling Garcia. 鈥淭his is just the beginning.鈥�

In addition, Garcia notes that new capabilities like and advanced analytics will help Vodafone develop the next generation of products and services.

Building a Digital Future at Vodafone Group

Innovation will be crucial as to achieve specific goals for improving lives.

By 2025, for example, the company wants to:

• Connect over 50 million people and their families to mobile money services
• Bring mobile to an additional 20 million women in Africa and Turkey
• Support 10 million young people in learning the digital skills needed to thrive in the digital economy
• Connect 150 million vehicles to

Vodafone is confident that today鈥檚 transformation will enable the company to build a digital future that works for everyone. 鈥淭hese changes are helping Vodafone work as one company,鈥� Grewe says, 鈥渟o people around the world will stay better connected.鈥�

To hear more from Ignacio Garcia and Holger Grewe about the changes at Vodafone Group, . Also check out these videos on Vodafone鈥檚 experience with , and solutions, as well as services.

The HR and future of work program is offered in conjunction with solutions, cloud leaders in human experience management. 麻豆原创 will accelerate six early-stage startups focused on recruiting, talent and team management, diversity, equity and inclusion, and collaborative learning.

鈥淥ur customers recognize the need to embrace innovative, cloud-based technologies to advance how they engage their workforce,鈥� said听Jill听Popelka, president of 麻豆原创 SuccessFactors. 鈥淥ur partner ecosystem, including the companies selected for the 麻豆原创.iO program, brings new and creative ways to help our customers address today鈥檚 most important workplace challenges, such as diversity, equity and inclusion, learning, well-being, and more.鈥�

The future of work cohort includes , , , , , and . Learn more about the selected startups .

The five startups in the professional services program offer innovative solutions for intelligent bidding and resource planning, guided business workflow and intelligent revenue. Deloitte, Ernst & Young, McKinsey & Company, NTT Data Business Solutions and 麻豆原创.iO selected the participants.

鈥淧rofessional services firms are facing the challenge of innovating more quickly to maximize utilization rates, hire top talent and deliver outcome-based engagements,鈥� said Jonathan Rhodes, global vice president and head of 麻豆原创 Professional Services Business Unit. 鈥淓ngaging with the selected startups helps to expand our industry cloud portfolio and allows our customers to achieve breakthrough, agile innovation.鈥�

The professional services cohort includes , , , , and . Learn more about the selected startups .

During the 12-week program, the selected startups will have access to curated mentorship from 麻豆原创 executives, exposure to 麻豆原创 technology and application programming interfaces (APIs), and opportunities to collaborate with 麻豆原创 customers. The programs will conclude with demo days in July 2021.

Nine of the 11 startups are founded or led by underrepresented entrepreneurs and follow the initiative to accelerate more than 200 startups founded or led by women, people of color, LGBTQIA+ and others from underrepresented groups in tech by 2023.

To learn more about how 麻豆原创.iO is helping innovators start up and scale with 麻豆原创, please visit .

Visit the . Follow 麻豆原创 on Twitter at .

Media Contact:
Benjamin Nickel, +49 170 4920616, benjamin.nickel@sap.com, CET
麻豆原创 麻豆原创 Room; press@sap.com

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as 鈥渁nticipate,鈥� 鈥渂elieve,鈥� 鈥渆stimate,鈥� 鈥渆xpect,鈥� 鈥渇orecast,鈥� 鈥渋ntend,鈥� 鈥渕ay,鈥� 鈥減lan,鈥� 鈥減roject,鈥� 鈥減redict,鈥� 鈥渟hould鈥� and 鈥渨ill鈥� and similar expressions as they relate to 麻豆原创 are intended to identify such forward-looking statements. 麻豆原创 undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect 麻豆原创’s future financial results are discussed more fully in 麻豆原创’s filings with the U.S. Securities and Exchange Commission (“SEC”), including 麻豆原创’s most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
漏 2021 麻豆原创 SE. All rights reserved.
麻豆原创 and other 麻豆原创 products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of 麻豆原创 SE in Germany and other countries. Please see for additional trademark information and notices.

Unfortunately, there is still a significant fleet of carbon-based locomotives and an entire fleet of trucks, buses, and utility vehicles utilizing carbon-based fuel and contributing to climate change across the globe. Meanwhile, in an adjacent industry, automotive manufacturers have almost unanimously promised to go electric in the coming years.

Where does that leave travel and transportation operators?

麻豆原创 recently hosted an industry forum about the with leading mobility operators and industry value chain actors. Featured speakers included:

• Bruno Flinois, chief executive Officer of Clem
• Neele Marie Hinck, sales manager of EWE GO GMBH
• Erwin Guizouarn, chief executive officer of Evolution Energy
• Joerg Ferchow, chief solution expert at 麻豆原创
• Ulrich Scholl, global vice president New Mobility of 麻豆原创

Based upon the virtual event, we have compiled key takeaways and experiences on the use of the end-to-end energy ecosystem, as well as how leading practitioners are using technology to achieve strategic goals in the journey to fleet electrification.

The Evolving Value Chain of the Energy Ecosystem

The way corporations and citizens perceive the energy ecosystem is changing. More than ever, corporations like 麻豆原创 are aiming to achieve carbon-neutrality, with electrified mobility playing a strong role to support these efforts. Neele Marie Hinck shares that in partnership with EWE GO GMBH, 麻豆原创 has built more than 500 charging stations in Germany to support its corporate fleet of hybrid or electric vehicles. This trend will only continue as other forward-thinking companies aspire to reduce greenhouse gas emissions on the journey to carbon neutrality.

Outside of 麻豆原创, Clem Founder and CEO Bruno Flinois provides a global perspective about the ambitions of local authorities and large cities to de-carbonize their fleets. Clem is responsible for developing clean mobility to support public transport, offering subscription services and consultation of electric car-sharing and smart charging practices. The company started in 2010 by supporting one city with three charging stations, up to its current 600 charging points and 400 electric vehicles in more than 200 cities.

During a live event poll, 50% of the respondents said their organizations are early adopters of e-mobility with a single-digit of e-fleets, while the remaining responders did not yet have any operationalized e-fleets.

Tremendous growth in e-mobility offerings and adoption from both the public and private sector over the last decade demonstrates a promising future for the environment and the travel and transportation industry.

鈥淣ew Downstream鈥� Considerations and Impact

As e-mobility picks up momentum across the world, citizens and corporations alike have been asking themselves: Who should be responsible for developing the charging infrastructure and supporting other vital downstream considerations to support the end operators and/or drivers?

In Europe, a third-party approach similar to that of EWE GO is gaining traction, where an outsourcing vendor is responsible for simplifying the end-to-end mobility practices and operator support. This turnkey approach provides bundled mobility offerings related to knowledge, products, and services in order to increase the ease in which mobility is brought to life.

From a corporate fleet point of view, 麻豆原创 Executive Ulrich Scholl advises that we must look beyond the boundaries of e-mobility today: 鈥淓-mobility is an important building block of mobility in the future.听 The need for mobility programs is driven by the demand of employees and should be made easy for all to take part in — including the unique needs of urban employees.鈥�

To increase the adoption of e-mobility offerings, a simple end-user experience is vital, where end-to-end services are provided and integrated into the way organizations operate and define success. It is not just about charging vehicles; there is much more to consider to support the downstream needs of e-mobility today.

Technology鈥檚 Role to Support the Electrification of Mobility

Authorities and organizations have varied ambitions for sustainability and carbon neutrality endeavors. Some ambitions are driven by new legislation that mandates a shift in energy consumption, while others are being driven by factors such as cost, consumer demand, risk mitigation, and/or brand reputation.

To prepare for a new normal in mobility, Evolution Energie鈥檚 Erwin Guizouarn shares that most customers鈥� first question surrounds cost. While cost savings is not typically the primary reason why organizations leap to e-mobility, it is a vital consideration that should be thoughtfully approached to help ensure alignment with corporate strategy.

Guizouarn shares that the top four client questions about the adoption of emobility include: How much will we pay? When should we charge the cars 鈥� day or night? How can we hedge costs? And how can we minimize risk?

Software solutions can help manage end-to-end operations for charging, procurement, and contracts to effectively manage complexity, including monitoring energy consumption and mitigating risk. Flinois adds that 鈥淓verything with e-mobility requires technology, specifically software to manage information including visibility, authority, energy use, and more.鈥�

For firsthand experience and recommendations for an integrated e-mobility approach, .

Senta Belay is industry solution manager for Travel and Transportation at 麻豆原创.

The ETM.next solution 鈥� 鈥� will provide Graham employees with tools to digitally request and track equipment and to provide efficient project- and client-specific pricing and cost. Because details will be fully integrated to 麻豆原创 S/4HANA, bill accuracy will increase and delays will fall because manual updates will no longer be needed.

To help ensure construction profitability, ETM.next tracks a project鈥檚 equipment and tools, their utilization and utilization cost, and profit and loss. Digitalization of the equipment and tools management process offers greater efficiencies, which arise when manual paper-based records, spreadsheets and static data are eliminated and real-time visibility is provided.

鈥淚nnovation, safety and continuous improvement are the cornerstones of everything we do,鈥� said Matt Gramblicka, Graham Construction vice president, IT & Enterprise Applications. 鈥淚t鈥檚 part of the value that extends beyond the materials, talent and timeline. We see the ETM.next solution as one more example of how we鈥檙e enabling our frontline workforce and delivering value to our customers.鈥�

ETM.next is one of the latest ,听which use intelligent technologies, such as artificial intelligence and advanced analytics, to digitalize and automate operations and create compelling user experiences. 麻豆原创 and partners focus on industry-specific core-business solutions that help optimize end-to-end processes and develop new and differentiating business models.

To learn more about ETM.next and solutions to manage complexity in the construction industry, .

Visit the . Follow 麻豆原创 on Twitter at .

Media Contact:
Stacy Ries, +1 (484) 619-0411,听stacy.ries@sap.com, ET
麻豆原创 麻豆原创 Room; press@sap.com

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as 鈥渁nticipate,鈥� 鈥渂elieve,鈥� 鈥渆stimate,鈥� 鈥渆xpect,鈥� 鈥渇orecast,鈥� 鈥渋ntend,鈥� 鈥渕ay,鈥� 鈥減lan,鈥� 鈥減roject,鈥� 鈥減redict,鈥� 鈥渟hould鈥� and 鈥渨ill鈥� and similar expressions as they relate to 麻豆原创 are intended to identify such forward-looking statements. 麻豆原创 undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect 麻豆原创’s future financial results are discussed more fully in 麻豆原创’s filings with the U.S. Securities and Exchange Commission (“SEC”), including 麻豆原创’s most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
漏 2021 麻豆原创 SE. All rights reserved.
麻豆原创 and other 麻豆原创 products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of 麻豆原创 SE in Germany and other countries. Please see for additional trademark information and notices.

But the global health crisis has been challenging for everyone 鈥� including the companies that have been working hard to keep us connected, like Vodafone Group. Vodafone is a multinational technology communications company that serves more than 300 million mobile customers around the world.

Quick Response to Customers and Employees

Ignacio Garcia, CIO of Corporate Information Systems at Vodafone, recently appeared on Getting Real with 麻豆原创. There, he discussed how companies are leveraging technology to manage their business and continue to serve customers in the age of COVID-19.

鈥淵ou can imagine what we were thinking: How much extra demand are we going to have?鈥� says Garcia. 鈥淲e needed to keep our employees safe and make sure we supported our customers in the best possible way.鈥�

Vodafone was able to do both.

In short order, the company developed a to help the communities it serves. Keystones of the plan were a commitment to maintaining the quality of service and providing network capacity and network services for critical government functions.

Vodafone also made sure to quickly address the needs of a global workforce that encompasses more than 100,000 employees. Vodafone offered support for working at home, created richer virtual training opportunities for its people, and adjusted performance goals and objectives to align with new business needs.

The Right Technology Pays Dividends

Vodafone鈥檚 business agility was not merely the result of good luck.

Less than a year ago, Vodafone completed a massive global rollout of 麻豆原创 S/4HANA to help improve operational efficiency in business functions such as finance, supply chain, and IT.

It was an impressive project covering more than 20 countries. And in addition to establishing a single digital core for the company, it included retooling Vodafone鈥檚 worldwide HR systems. 鈥淯sing the power of the technology was fundamental, having a single data model, a single way to optimize and understand the different markets,鈥� says Garcia.

Stay Creative

Vodafone may have been ahead of the curve in its ability to meet the challenges of COVID-19. But many other companies are responding with technology-driven innovation. There has been an incredible degree of creativity in how businesses have reacted.

Staying connected will only be one of the challenges we face in the days ahead. This is a critical time for all of us 鈥� as individuals and as businesses.

Check out to learn more.

鈥淭he flow of groceries, pharmaceuticals, and other essential goods is a stark reminder that transportation networks that bring those necessities to people are as vital as the goods themselves,鈥� noted last month. 鈥淭he industry has long been preparing for a future — in which freight demand will rise by nearly 40 percent over the next 20 years — investing in technology, streamlining operations, and modernizing services.鈥�

(CP) is ready for this future, having undergone a digital transformation that helps CP run its network spanning more than 13,000 miles of railroad across the U.S. and Canada — along with people, freight, and equipment.

A single source of truth across multiple systems offers CP .

鈥淩ailway is playing a mission-critical role in helping products move across North America,鈥� CP Chief Information Officer Mike Redeker said. 鈥淲e help the economy, not only moving the products, but we help people maintain their jobs, whether they鈥檙e at the ports, the trucking companies, [or] a Walmart or Target.鈥�

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helps CP do all of this faster and more efficiently than ever before.

When Trains Aren鈥檛 Your Only Fast and Stable Assets

鈥淚t鈥檚 very fast, I mean blindingly fast, where we had some processes that used to take five, six hours now take minutes,鈥� said Dean Stoffel, director of Program Management for 麻豆原创 Technical Services at CP. 鈥淭he stability that gave us, and the credibility with our end customers inside of CP, helped shift perspectives of us to more of a partner than a cost. It鈥檚 been a huge impact.鈥�

That鈥檚 because when a CP system is down, that outage delays the company鈥檚 trains, and longer delays cost the business more and more time and money. has helped dramatically reduce CP system downtime.

鈥淥ver the course of six years, we鈥檝e moved from about 1,200 hours down to between 15 and 60 hours on an annualized basis,鈥� Redeker said. 鈥淵ou can see the productivity improvement in the movement of trains and cost savings.鈥�

System outages at CP have gone from weekly ordeals to a blip every few weeks or months, according to Redeker and Stoffel. Outages longer than 30 minutes cause problems — while outages below that half-hour threshold have virtually no impact on the business.

鈥淏efore, we could have a system down for six, eight hours. Now a 10-minute or 20-minute interval is my max downtime for a hard crash,鈥� Stoffel said. 鈥淭hat means that even if we do have a high-severity issue on one of our systems, the outage is very short.鈥�

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That also means that IT has become an engine for growth.

Partner Ecosystem Moves CP Beyond IT

CP has moved beyond traditional IT roles, according to Redeker and Stoffel. They describe their team as a flexible support structure that enables growth and success throughout the company, from operations to sales to marketing and more.

鈥淯ptime is king, but that stability has given us the ability to deliver more to our business,鈥� Stoffel shared. 鈥淎s we made this journey on a more standardized 麻豆原创 HANA-based environment, we鈥檝e increased by seven-fold our delivery of new processes and technologies to the business; yet our stability has not decreased.鈥�

Delivering more to the business has been especially important during the COVID-19 pandemic, as more employees than ever work from home, according to Stoffel. And a rich partner ecosystem has also improved CP鈥檚 ROI:

• helped CP migrate to 麻豆原创 HANA, optimizing the platform
• , based on the Xeon processor, helps ensure much faster restart times when outages occur
• Cisco teamed with Intel for new memory and new processor technology

Together with 麻豆原创 HANA, these technologies help CP better manage memory and minimize downtime.

鈥淲hether it鈥檚 Intel, Cisco, or 麻豆原创, every one of these business partners are critical to our success. If any one of us fails, we all fail,鈥� Redeker said. 鈥淲e could not be where we are today — as an organization in a maturing IT shop — without the partnership from these vendors.鈥�

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That鈥檚 especially powerful in .

More Powerful Than A Locomotive

鈥淲e鈥檙e a 130-plus-year-old company, we鈥檝e got a lot of data out there,鈥� Stoffel said. 鈥淏ut when we migrated this, we had a 10-minute actual system outage — 10 minutes — to migrate more than six terabytes!鈥�

That “unheard of” number is indicative of the substantial efficiency and stability of 麻豆原创 HANA, according to Stoffel. Those qualities, in turn, save CP significant money on data storage, given the capabilities of the ecosystem鈥檚 software and hardware, and how well integrated they are.

鈥淲e have more [data] in one place, which means we don鈥檛 have to duplicate it as much,鈥� Stoffel said. 鈥淲e have more accurate information for our business users, and smaller systems take less time to come up. And fewer systems mean less total cost of ownership.鈥�

Keeping Us Connected

All of this helps CP continue to connect North America and the world, even as COVID-19 keeps road borders between the U.S. and Canada closed. This 21st-century railway continues to move goods between the two countries.

鈥淭he rail industry is considered an essential service in North America, and we鈥檙e able to cross the border into the U.S. and back on a regular basis,鈥� Redeker said. 鈥淲e鈥檙e able to do that freely, and we do it daily.鈥�

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Once seen as futuristic, technologies such as artificial intelligence (AI), robotic process automation (RPA), machine learning, chatbots, and blockchain are increasingly becoming commonplace, especially among nimble, digital-first new entrants. The emergence of the 鈥渉uman cloud鈥� may be the biggest disrupter of all. Attracting $80 billion in annual investment, according to the Staffing Industry Association, the human cloud includes digital labor and staffing platforms that eliminate the need for manual intervention in the staffing process.

The rise of managed service provider (MSP) programs is also having a direct impact on staffing firm revenue and profitability. MSPs typically manage staffing processes and systems for large corporations and interact with several vendors providing staffing services. In response, some staffing firms have developed their own managed service programs.

These are among the issues explored in a . The paper highlights how tomorrow鈥檚 staffing industry leaders will be those that embrace the transformation imperative today and develop bold and creative action plans in a few key areas.

鈥淒igital disruption comes to every industry, and staffing is no exception,鈥� said Michael Liss, vice president, Managing Principal Services Industries, 麻豆原创. 鈥淥ur view is that now is the moment to lay the foundation for future-state business models and a vision for growth. While the competitive threat from tech-driven startups is real, traditional firms can use enabling technology to build on their strong relationships and enhance their value proposition.鈥�

鈥淭he future of work is taking shape today, and staffing firms have an opportunity to provide leadership and prioritize their innovation investments to drive future growth,鈥� said Michael Yadgar, Americas 麻豆原创 leader at EY. 鈥淔rom the war for talent and the rise of the human cloud to new business models and richer client and candidate experiences, there are many exciting innovation opportunities.鈥�

Based on many engagements with staffing leaders, we believe the following megatrends are among the most powerful in redefining the industry:

• Process automation: Technology innovations enable staffing firms to replace manual tasks, such as resum茅 scanning, background checks, and onboarding. While automation reduces errors and increases efficiency, it can also lay the groundwork for richer client and candidate experiences, which ultimately help build stronger relationships.
• Digital marketplace platforms: New market entrants use these platforms to offer direct search and matching of talent. Other capabilities include candidate profiles, automated assignment matching, self-selection of assignments, availability tracking, candidate and client ratings, and automated billing and compensation.听While this model works well for commoditized positions, higher-skill roles still require high-touch service and trust-based relationships.
• An evolving workforce: Millennials and Generation Z will represent more than 75% of the global workforce by 2025. These 鈥渄igital natives鈥� want instant communication and information access via their phones. They are also open to reskilling through online learning and training, which gives staffing agencies a chance to create talent and offer more value to both clients and candidates.

In response to these and other disruptive forces, staffing companies must prioritize a number of strategic actions and challenge their thinking by addressing a range of critical questions. The paper from EY and 麻豆原创 highlights the following three key areas of focus for firms that are ready to embark on a journey of transformation.

1. Digital Delivery Platforms and the Shifting Role of Finance and Operations

Finance and operations can no longer be a back-office or support function primarily focused on data entry and reporting. Rather, it should embrace AI and process automation so that it can evolve into the higher-value roles of听business analyst and strategic advisor. For example, sales operations and finance leaders should work to proactively identify market trends and development that can impact profitability and growth. Beyond the bottom line, insights provided by finance can help move the needle on candidate satisfaction 鈥� by better matching candidates and opportunities 鈥� and operational efficiency 鈥� by reducing the number of touches to fill positions.

• Critical question: If 90% of data entry were automated, how could finance and sales operations add value and provide competitive advantage?

2. Innovative Business Models and Diversified Pricing Models

A hypercompetitive market requires staffing firms to differentiate their offerings and value propositions. Ideally, a staffing firm鈥檚 sales force should be able to leverage AI to design competitive pricing structures and attractive packages. Subscription models offering on-demand access to advisory and staffing service in exchange for a set fee are likely to grow. So are outcome-based and performance-driven contracts, which will complement traditional by-the-hour pricing. Analytics and modeling tools will also help firms develop such customized pricing based on the evaluation of different criteria, including the suitability of such offers to both clients and talent.

• Critical question: Which information about candidates and clients defines the optimal pricing and compensation models?

3. Candidate Satisfaction, Client Experience, Experience Management

Staffing firms recognize the importance of experience to relationships with both candidates and clients. A quality experience pays off in the form of increased loyalty, deeper engagement, and, ultimately, more revenue for staffing firms. These benefits will only get more important as new entrants offering intuitive experiences continue to gain traction. Incumbent firms must ensure they understand what clients and candidates are looking for and then design an experience that delivers just that.

• Critical question: How can firms deliver an amazing user experience by applying data and AI to identify client and candidate preferences and enable automatic matching?

Profound digital-driven change is disrupting the staffing industry, just as it has for other sectors in recent years. The experience of those industries confirms that the market leaders will be those firms that think the biggest and act most boldly in embracing technology, focusing on experience, and exploring new business models.

EY and 麻豆原创 Focus on the Staffing Industry

Both EY and 麻豆原创 have provided solutions to the staffing industry for many years. 麻豆原创 solutions have automated back-office processes, enabling streamlined operations and increased efficiency for the staffing industry. EY鈥檚 industry knowledge combined with its consulting, tax, and risk expertise has helped transform staffing firms to optimize their operations. EY has also transformed its own capability to drive staffing requirements for engagements in the marketplace.

With the amount of profound change that is taking place in the staffing industry, EY and 麻豆原创 together can offer complete solutions for firms facing disruption and enable them to transform into intelligent enterprises. By combining the proficiencies of 麻豆原创 solutions with machine learning, AI, and RPA, EY can help staffing firms achieve digitalization in order to transcend disruption and operate as a firm of the future.

Eric van Rossum is senior vice president and general manager of Services Industries at 麻豆原创 and Dean Hansen is partner at EY.

Using the startup鈥檚 carbon-based offsetting tool, companies can donate one cent for every air mile flown by employees to environmental non-profit organizations.

鈥淚ndividuals and companies are much more mindful that travel and commuting are a big part of their carbon footprint and need to be incorporated into their sustainability planning and actions,鈥� said Anna Ford, co-founder and chief executive officer (CEO) of Jet-Set Offset. 鈥淩emote working has brought people together in more authentic ways, increasing demands to align personal values such as sustainability with working norms, including travel.鈥�

Realistic Strategy for Sustainable Travel

Functioning like a fundraising tool for non-profit and charitable organizations that focus on sustainability, Jet-Set Offset鈥檚 mileage-based donations are tax-deductible and backed by a realistic business-oriented strategy. During its first year in business, thousands of Jet-Set Offset consumers made donations to a range of non-profits. These organizations offer products, education, and advocacy in areas such as clean transportation, renewable energy, land and wildlife conservation, reforestation, and green buildings. The startup鈥檚 next target market is enterprises.

鈥淲e want to make it easy for companies to integrate carbon-based offset donations into their travel plans based on the organizations鈥� unique sustainability goals, timelines, and budget realities,鈥� Ford said. 鈥淲e鈥檙e piloting our tool now with companies that are interested in sustainable travel as the industry recovers from the disruption of the COVID-19 pandemic.鈥�

From Public Health to Sustainability

After spending almost a decade in public health advocacy, where she racked up an average of 100,000 flier miles each year, Ford transitioned into a new career that began with studying public administration and social entrepreneurship at the Harvard Kennedy School. She was most inspired by several landmark studies proving the impact of reducing air travel to combat climate change.

鈥淎t that moment, my decade of frequent flyer guilt really hit me like a ton of bricks,鈥� she said. 鈥淚 decided to focus exclusively on the environmental impact of air travel and carbon off-setting. There many non-profits doing environmental work, so I built Jet-Set Offset as a donation-based off-setting tool that helps travelers as well as those organizations that are tackling climate change.鈥�

麻豆原创.iO Foundry Unlocks New Business Opportunities

Jet-Set Offset was among the eight early-stage startups that participated in the recent 麻豆原创.iO Foundry San Francisco accelerator program. Ford was grateful for the opportunity to network and learn from other startups as well as 麻豆原创 experts about building enterprise solutions that solve customer pain points. Having initially focused on consumers, one important takeaway for her team was the need for employee engagement in sustainability initiatives at the corporate level.

鈥淓ven for companies with sustainability commitments and plans, we learned a lot about the need for employee education,鈥� she said. 鈥淎s a result, we added communication abilities to our solution, allowing organizations to have an ongoing dialogue with their employees.鈥�

In addition to making carbon offset donations, companies can use the tool to send reminder messages to employees that sustainability matters, and to be mindful of non-essential travel. Companies can also offer environmentally friendly travel alternatives.

Making sustainability even easier, Jet-Set Offset is integrated with solutions and available on . Customers can see the environmental impact of their travel from one dashboard that captures miles flown and resultant carbon emissions. The tool also prompts travel managers with convenient train transportation options based on nearby city destinations to help reduce the company鈥檚 carbon footprint.

鈥淥nce companies understand their historical carbon footprint, they can start to plan for sustainable travel, ensuring that emissions don鈥檛 reach previous levels even as employee travel comes back,鈥� said Ford. 鈥淲e see this helping travel managers, sustainability officers, and human resources departments meet corporate sustainability goals.鈥�

Plan for a More Sustainable Future

More than anything, Ford does not want the latest focus on sustainability to be a short-lived blip 鈥� especially in the rush to economic recovery. She described a much larger vision in which organizations fully understand their overall corporate travel carbon emission footprint and act to reduce it.

鈥淲e鈥檙e working with companies and travelers to put sustainable travel plans in place with a platform that inspires action,鈥� she said. 鈥淲e want to help companies benchmark and track their carbon emissions from air travel, communicate their sustainability goals with employees, and involve them in making the best choices for greater environmental impact over time.鈥�

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鈥淚’m very, very thankful to my team that, despite the current tough situation we face, they continue to stay motivated and have a high sense of hope on a great restart of our business,鈥� said Hopp. 鈥淚 see a bright future for live entertainment when this pandemic is over. People are starved. People want to see other people. Fans want to engage with other fans when they feel safe and secure.鈥�

Hopp, who is also CEO and managing director of the 麻豆原创 Arena in Mannheim, shared his vision for leadership, partnerships, and digital transformation during times of crisis in an exclusive conversation with Luka Mucic, chief financial officer (CFO) and member of the Executive Board of 麻豆原创 SE.

Communication with People Matters Most

Hopp believes that communication is a critical leadership tool 鈥� a credo that has taken him far. This past spring, the COVID-19 pandemic abruptly stopped this season鈥檚 playoffs, leaving his team 鈥� the defending Germany ice hockey league champions 鈥� stranded in second place. Nevertheless, he was both philosophical and determined.

鈥淲e were headed to the most important, most thrilling time of a hockey season: the playoffs,鈥� Hopp said. 鈥淪ome unbeatable opponent steps in and takes away your season and you cannot do anything against it. I think open and honest communication is the most important tool a company leader can use these days.鈥�

Tech Helps Employees and Fans Stay Safe

麻豆原创 Arena is one of the largest indoor stadiums in Germany, hosting not only sports but vibrant community gatherings around concerts and other events. While its 15,000 seats are empty for now, Hopp is committed to keeping the close relationship that sports fans and other event attendees enjoy. He cites the role of technology in sustaining an 鈥渋ntense customer-supplier relationship鈥� with fans.

鈥淥nly with high-end technology can we turn this relationship into action,鈥� Hopp explained. 鈥淚nteractive tools like our Adler Fan App, provided by 麻豆原创, support us in collaborating and communicating with our fans. Thanks to the technology partnership with 麻豆原创, we are continuously in design thinking mode, looking for innovation and new ideas for fan engagement. Over the last years, we are always pushing the digitalization processes in the arena.鈥�

Upcoming fan and employee safety measures at the 麻豆原创 Arena will include mobile ticketing to eliminate onsite lines when buying tickets or entering the event. Fans will also be able to order food, beverages, and merchandise using their mobile phones without leaving their seats. This cashier-less contact is designed to reduce potential health risks for both spectators and employees.

Wait Until Next Year

Hopp remained undaunted yet realistic about the future, recognizing employees, fans, and numerous partners as vital to his entire operation. These include sponsors, promoters, food and beverage suppliers, and anyone else whose livelihood depended on his sports and entertainment business.

鈥淧artnership is so much more important in these crucial times,鈥� Hopp said. 鈥淲ithout having strong partners on your side, and without being a strong partner for other parts of the business, probably a lot of companies wouldn鈥檛 survive these situations. We try to be a good partner. For example, our food and beverage partners and the people that actually need the arena here; we have to try and keep them in business.鈥�

The coronavirus may have interrupted 2020 sports and entertainment seasons, but professionals like Hopp are already looking ahead to 2021. Echoing the perennial cry of every sports team, including the current German ice hockey champions, wait until fall!

With only weeks left before the , 麻豆原创 and partners are looking forward to hosting the world鈥檚 leading A&D manufacturers in Charleston, South Carolina, March 9鈥�11. This unique city is 鈥� the first museum in the U.S., the first theater group, the first opera house, the first golf club. The city is also home to the first shots of the American Civil War.

Expect Notable Firsts

麻豆原创 and partners have embraced the spirit of Charleston and prepared a few firsts for the event. Not only is this the first time 麻豆原创 A&D Innovation Days held in Charleston, it鈥檚 also the first time one of the nation鈥檚 most highly decorated veterans will be brought in as a keynote speaker. Known for firing the shots that killed Osama bin Laden, former U.S. Navy Seal faced several of the most high-profile and difficult war missions of modern time.

O鈥橬eill is known for his mantra 鈥渘ever quit,鈥� and will share with attendees the lessons he鈥檚 learned during more than 400 combat missions across four theaters of war. During his keynote, he will explain how his time in the military taught him critical skills that translate to the demands of IT professionals, including operating in environments of uncertainty and quick decision-making in moments that matter most. Attendees will be equipped with the ingredients to continually complete successful missions, whether on the battlefield or the boardroom.

New this year, leading global consultancy will debut industry research in Charleston. The immense findings will give attendees an idea of what they should plan for as both consumers and IT professionals. Topics include the impact of the current 鈥溾�� in A&D manufacturing and the expected timeline for electric aircraft, plus where, when, and how urban air mobility will emerge.

Another notable first on the is a session led by Lockheed Martin. As an A&D leader, Lockheed Martin has fully embraced the Fourth Industrial Revolution, better known as Industry 4.0, and will discuss the company鈥檚 transformation leveraging intelligent ERP and emerging cloud offerings, with the help of 麻豆原创 National Security Services (麻豆原创 NS2). Other industry leaders like Northrop Grumman, Moog, L3Harris Technologies, Raytheon, and more will lead thought-provoking sessions offering insider information on their current and future plans for turning insights into action by building .

Enjoy Returning Favorites

In an event filled with firsts, 麻豆原创 will continue to bring back crowd favorites from past 麻豆原创 A&D Innovation Days. In addition to the great opportunities for networking, attendees will again have the chance to review the 麻豆原创 roadmap, see engaging demos, and join breakout sessions to discuss various topics such as cloud-based analytics, cybersecurity, and much more.

Throughout the three-day event a consistent line will run through every session telling the stories of the infinite possibilities of an intelligent enterprise. 麻豆原创 customers, partners, and executives will explain how a connected manufacturing business supports growth, visibility, and flexibility in today鈥檚 experience economy.

By the end of 麻豆原创 A&D Innovation Days 2020, attendees will better understand why 麻豆原创 remains first in providing the software solutions that support 77 percent of the world鈥檚 financial transactions.

Make New Memories

One event first that is definitely not to be missed is the private concert with an 80s cover band and a special appearance by Journey鈥檚 former lead vocalist, Steve Augeri.

We look forward to spending time with attendees, customers, and partners at 麻豆原创 A&D Innovation Days. .

Torsten Welte is global head of Aerospace & Defense and Travel & Transportation at 麻豆原创.