Five-year agreement involves the creation of a global digital hubs network to support CNH Industrial in enhancing its digital capabilities
Accenture (NYSE: ACN) and Microsoft (NASDAQ: MSFT) are collaborating with CNH Industrial to help the capital goods company enhance its digital capabilities and develop smart connected products and services.
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The collaboration between CNH Industrial, Accenture and Microsoft will provide customers new connected services and functionalities in areas such as predictive maintenance, enhanced fleet management and computer-aided farming (Photo: Business Wire)
The program is an integral part of CNH Industrial’s digital transformation initiative, which is designed to help the company grow topline revenue, build a digitally enabled workforce, and enhance sustainability.
The key element of the five-year collaboration is the creation of a global network of digital hubs — in the U.S., Europe, Brazil and India — where the three companies will work together to design, launch and manage digital services that will make the products of CNH Industrial’s brands even smarter, more functional, secure and sustainable.
The connected vehicles will provide customers with new services and functionalities in a variety of areas, including computer-aided farming, predictive maintenance, enhanced fleet management and green transportation. CNH Industrial also plans to develop a broad set of data-driven digital services to help clients drive sustainability, such as yield improvement in agriculture and more efficient vehicles and improved fleet management in the transportation industry. By complementing its historical product-sales-based business model with new digital-driven services, CNH Industrial intends to achieve significant revenue growth.
Accenture, in collaboration with Avanade, its joint venture with Microsoft, will design, build, test and scale a range of digital services to support new connected products that leverage innovative technologies including advanced analytics, artificial intelligence, the internet of things and cloud computing. Accenture will also design, manage and coordinate the activities within the digital hubs; help CNH Industrial define its digital factory operating model; and provide capabilities, assets and skilled resources to enable the company to develop digitally empowered teams across the globe. A focus will be on practicing speed to value and significantly collapsing the innovation timeline. The work will leverage Accenture’s Industry X Innovation Network of centers that combine startup thinking with rapid prototyping, delivery and ramp-up capabilities to turn ideas quickly into scalable products and solutions.
"We’re excited to be part of this collaboration to help CNH Industrial innovate and realize its digital transformation, which is particularly important at a time when every industry has been deeply affected by the pandemic," said Axel Schmidt, a senior managing director at Accenture who leads its automotive practice globally.
Teodoro Lio, a managing director and Accenture’s automotive lead in Europe who serves as CNH Industrial’s global client account lead added: "This is another example of how we team with clients to help them address the transformations that lie ahead, using our experience to embrace the change and unlock new value for all the stakeholders."
Microsoft, which has been working with CNH Industrial on its digital transformation since 2018, will continue to provide its industry experts, digital advisors and consulting services to develop and create new connected products, leveraging its recently announced global initiatives in the digital skills, sustainability and artificial intelligence innovation domains, as well as the Microsoft Azure platform.
"We’re proud to announce this milestone in our long-term collaboration with CNH Industrial and with our strategic partner Accenture. In this economic downturn and critical time for the industrial vehicles sector, we partner with CNH Industrial to support the development of an ecosystem of connected services to streamline daily operations of CNH Industrial’s brands’ customers and contribute to the sustainable growth of the industry," said Marco Giletta, global business director of automotive at Microsoft Italy. "With the close collaboration among all players, CNH Industrial will have access to the most innovative technological platform and industry skills, as well as the ability to create digital projects, fostering the company’s digital transformation."
CNH Industrial will benefit from the well-established relationship between Microsoft and Accenture. The two companies have been working closely together for more than two decades helping organizations overcome disruption and lead transformation in their industries.
"The creation of digital hubs is a key pillar of our strategy that will move CNH Industrial from being a manufacturer of physical products to being able to deliver new digitally born and connected products and services," said Andreas Weishaar, Chief Strategy, Talent, ICT and Digital Officer, CNH Industrial. "Over the next five years, we’ll team with Accenture and Microsoft in an integrated and agile manner to build and operate these digital factories and to deliver positive impacts for customers and dealers, communities and the environment. We will continue to transform the company culture as we transform our products in parallel, creating tremendous value by empowering our team and integrating our traditional business models with new digital services and making a positive impact on global sustainability."
About CNH Industrial
CNH Industrial N.V. (NYSE: CNHI /MI: CNHI) is a global leader in the capital goods sector with established industrial experience, a wide range of products and a worldwide presence. Each of the individual brands belonging to the Company is a major international force in its specific industrial sector: Case IH, New Holland Agriculture and Steyr for tractors and agricultural machinery; Case and New Holland Construction for earth moving equipment; Iveco for commercial vehicles; Iveco Bus and Heuliez Bus for buses and coaches; Iveco Astra for quarry and construction vehicles; Magirus for firefighting vehicles; Iveco Defence Vehicles for defence and civil protection; and FPT Industrial for engines and transmissions.
More information can be found on the corporate website: www.cnhindustrial.com.
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