A journey of digital transformation

Making Physical work with Digital

BUSINESS SITUATION

Look, Nicholas, with a changing business environment, winning strategies change too. We got to recognize that digital technology is becoming increasingly important and is creating new business possibilities. Not only does it require the adoption of new tools but also provides the opportunity for us to improve both internal and external organizational functions, said Brandon. Mr. Brandon was convinced that in this era of empowered customers and an extremely competitive market, retailers cannot avoid taking the digital transformation route. He was not responsible for the use and deployment of technology in the company, but he realized that digital innovations can move the levers of performance efficiency. He looked at these digital tools not just as IT systems to be managed by Paul, but as a means to increase revenues by providing a magical customer experience. Brandon wanted to use this power of technology to fundamentally transform the business, creating a direct relation with footfalls, and hence, affecting bottom lines. Further, he wanted to reduce costs by digitalization of internal operational processes. However, this required not just his conviction, but also the backing of a large retail company, which was a market leader in its own right for many years. Progetto is an international luxury apparel brand with annual revenue of $2040 million. It designs, manufactures, distributes and retails its goods. It is a brand catering to customers who are trendsetters and buy mostly high-end luxurious products. This is a highly competitive industry with constantly changing customer demands and trends; consequently, the client needs to find a differentiating factor in any brand. The client wants to

ensure the accessibility of the brand experience in keeping with evolving consumer expectations and clinching a consistent experience for customers across the globe. The fervent appeal from Brandon made Nicholas agree that Progetto could fundamentally transform its decades-old business model using digital paradigms. He tasked Brandon with increasing the market share and reaching out to more customers by using technology, while ensuring that the brand value/positioning or customer experience is not diluted. While Brandon was very happy getting a chance to implement a visionary plan, he recognized the need to get cross-functional co-operation especially from sales, channels, production, supply chain and, of course, IT. He wanted to ensure that the digital vision was broad enough to meaningfully impact all organizational areas and decided to lay out a simple yet powerful vision for digital transformation. Brandon chalked out the following as the definition of digital transformation in the context of Progetto: Connect its entire customer eco-system using social media tools to become a social enterprise Give the customers an end-to-end brand experience across channels, even if they do not have ready access to a physical store Provide a consistent digital experience to all business partners and employees Use the power of digital across B2B as well as B2C channels, from procurement to the point of sale.

He realized that engaging an experienced consulting firm, which knows how to fundamentally transform all parts of business driving toward a central theme and effectively use technology in the process can be a differentiating factor. Brandon called upon Capgemini Consulting to help him create this transformation roadmap. You represent Capgemini Consulting, and your assignment is to develop a digital transformation strategy for Progetto in three key areas of their enterprisecustomer experience, operational excellence and business model transformation. As a Capgemini Consultant, you refer to the Capgemini Digital Transformation framework (Refer to Exhibit 8) for this project to cover all relevant areas of the organization for transformation. Mr. Brandon is your executive sponsor for this engagement.

Deliverables
ROUND 1
A case solution that covers the following: 1. Approach you will take for the digital transformation strategy and its reasoning a. Developing innovative ideas for digital capabilities relevant to the business b. Establishing relevant processes for the three key areas (integrated at all levels) c. Creating and defining business value in the proposition 2. Possible challenges in the implementation of strategy generally to the industry and specific to the company 3. A financial business case with top-down analysis (Revenue and Cost Implications)

ROUND 2 (only for the top three shortlisted teams, which will present in person)
A PowerPoint Presentation of the Round 1 submission

GENERAL RULES 1. Round 1 submission should be in a word document format, strictly not more than eight A4 equivalent pages with a minimum font size of 11 and a maximum font size of 12. An appendix of no more than five A4 equivalent pages can be added. 2. Round 2 submission should be in a PowerPoint format, with the presentation no more than 10 slides in length.

Data Sheet Exhibit 1 Key Facts and Figures

1. One of the top three luxury apparel brands in the global apparel market, based in Europe 2. Formed in 1885 as a garment manufacturer and moved to design and retail in 1900 3. A workforce of 11,000 spread across the world with a presence in 40 countries in 446 stores 4. Among the worlds most profitable apparel manufacturers 5. First started selling online in 2008 in Europe and in 2009 in the US

Exhibit 2 Organizational Structure

Chief Executive Officer Nicholas McCann

Managing Board

Operational Segments
Regional Director- Vikram Kapur (Rest of the World)

Chief Operations Officer Clive Thomas

Chief Sales Officer Donna Brown

Chief Information Officer Paul Swift

Chief Finance Officer Smita Suri

Chief Creative Officer Ted Brimble

Chief Marketing Officer Brandon Hawkes

Regional Director- James Gregor (United States)

Regional Director- Philip Bell (Europe)

VP Sourcing & Logistics Gary Moore

VP Productions Adam Harper

VP Information Technology Mike Cooper

VP Finance Presley Holmes

VP Legal Zelene Cox

VP Design Blake Lawson

VP R&D Rosario Garcia

Exhibit 3 Group Processes

Design
The designs are trendsetting (smart, sharp and modern ideas with the most unique fabrics, shapes and leather)

Production
Highest level of specialization and state-of-the-art facilities to create garments of utmost quality

Distribution
A strong network that is constantly updated and improved and pointof-sales at prestigious locations

Customer Experience
Innovative marketing and unique in-store experience are the strong points of the brand

Exhibit 4 Sales by Geography

Percentage of sales by geography

70% 60% 50% 40% 30% 20% 30% 10% 10% 0% Europe United States Rest of the world 60% Sales by Geography

Exhibit 5 - Sales by Distribution Channel

Distribution Channel Wholesale Retail Business Directly operated business Outlet Online % of Sales 25 75 45 28 02

Exhibit 6 Product Line & Proposition

MENSWEAR Modern, understated, luxurious clothing line Business wear and casual evening wear

WOMENSWEAR Strong focus on fabric, an elegant clothing line Glamorous evening wear and modern business wear

KIDSWEAR Versatile collection for newborns, children and teenagers Sportswear with smart detail

Exhibit 7 Group Strategy

Expansion of Retail Network Leverage on global growth of luxury brands

Provide end-to end brand experience (Online and in physical stores)

Invest in non-apparel business

Exhibit 8 - Capgemini Digital Transformation Framework

Customer Experience

Operational Process

Business Model

Customer Understanding
Analytics-based segmentation Socially Informed Knowledge

Process Digitization
Performance improvement New features

Digital-Modified Businesses
Product/service augmentation Transitioning physical to digital Digital wrappers

Top-Line Growth
Digitally enhanced selling Predictive marketing Streamlined customer processes

Worker Enablement
Working anywhere, anytime Broader and faster communication Community knowledge sharing

New Digital Businesses

Digital products Reshaping organizational boundaries

Customer Touchpoints
Customer service Cross-channel coherence Self service

Performance Management
Operational transparency Data-driven decision-making

Digital Globalization
Enterprise integration Redistribution decision authority Sharing digital services

Unified data processes Analytics capabilities

Digital Capabilities

Business & IT integration Solution Delivery