Capgemini Teams Up with SAP to Build "Extreme Applications" for Retail

Capgemini announced a relationship with SAP AG to develop Extreme Applications for the retail industry, built on the SAP HANA platform. Capgemini and SAP have been collaborating for 12 months to bring to market packaged, industry-specific solutions to provide real-time insight for faster time-to-value with SAP HANA.

These business applications will integrate Capgemini IP on top of the platform, including industry-specific data models, KPIs, dashboards and predictive analytics. As part of this co-innovation initiative, Capgemini is developing applications with pilot customers and will resell them through its global sales channels worldwide, while SAP is overseeing the business compliance of the applications via its retail industry business unit.

The first phase of the rollout, planned to begin in mid-September 2013, will be to priority geographies including North America, the Netherlands, the UK, France, Spain and India. Capgemini is the first major services partner of SAP to build turnkey business applications for the retail industry, specifically designed to take advantage of the latest innovations of SAP HANA. Beyond this initiative with SAP on Extreme Applications, Capgemini aims to bring to market 15 to 20 applications built on top of SAP platforms for various industries within the next 24 months.

Organizations are increasingly facing the challenge of dealing with huge amounts of data, either from their own systems (such as point-of-sale data, transactions, customer data) or from outside (such as social media data, or market competition data).

The challenge for companies is to have the ability to act upon these new insights in real time, allowing them to beat their competitors with optimized business agility. To address these challenges, Capgemini's Extreme Applications for Retail rely on real-time insight at the point of action on the broadest data set and enabling that insight for the workforce in the field via mobile devices and enriched by social and geographical context data.

Paul Nannetti, group sales and portfolio director at Capgemini says, "Capgemini's Extreme Applications for Retail is a breakthrough technology for the retail industry that facilitates adoption of SAP HANA and accelerates the benefits of its real-time analytic capabilities. This unique, game-changing technology will facilitate retailers' ability to leverage their data, in real-time, to increase profitability and customer retention."

This first release of Capgemini's Extreme Applications for Retail includes two modules: Affinity Basket Analysis and Next Best Action. These modules aim to help retailers react more quickly to trends, competitor sales and adapt their up/cross sell and markdown strategy using predictive analytics capabilities based on a broad set of customer-centric information including point-of-sale data. Affinity Basket Analysis and Next Best Action modules are designed to help retailers make purchase recommendations in real-time based on customer behavior. By cross analyzing customer sales, behavior and sentiment analysis, interactions between brand and customer, retailers become better able to identify the next best offer or action for a specific customer at any point of time.

Capgemini is currently building the first release of its Extreme Applications for Retail built on SAP HANA, together with SAP and MS Mode, a Dutch fashion retailer operating over 400 stores in the Netherlands, France, Belgium, Spain, Germany and Luxembourg. Linda Hoebe, CIO, MS Mode, said "The speed and power of these Extreme Applications are giving us truly insightful analyses in our merchandising and finance departments and delivering answers in an instant where we used to expect a three-day turn-around in response.”

"We are delighted to be working with Capgemini on this innovative initiative,” says Robert Enslin, president of global customer operations and member of global managing board of SAP AG. "By collaborating with Capgemini and unlocking the power of SAP HANA, retail customers around the globe will have available and at the ready packaged, industry-specific solutions that offer them real-time insights into their business processes and provide faster time-to-value.”

Further releases of Capgemini's Extreme Applications for Retail will include additional modules related to markdown management, product market penetration and sales profitability analysis as well as replenishment and inventory forecasting and optimization. Capgemini will provide implementation services for the solution, as well as consulting advice on how to obtain from the overall platform the best value out of their business processes.

Capgemini's Business Information Management (BIM) Global Service line has over 7,500 specialists, including 1,300 SAP BI consultants and over 250 SAP HANA practitioners leveraging its industry expertise to build sector-specific BIM offerings. With these capabilities, Capgemini is currently delivering projects on SAP HANA in various industries like consumer products, retail, transportation, public sector, and utilities.
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