Caterpillar Inc. Account Deep Dive Analysis - Amazon S3 · 2019-06-11 · Source : DRAUP 6 6 • On...

Source : DRAUP

1

1

Caterpillar Inc. – Account Deep Dive

Analysis

December 2018

Source : DRAUP

2

2

AGENDA

➢ Caterpillar Inc. Overview

❑ Highlights on Caterpillar Inc., business overview

❑ Last 5 years revenue analysis

❑ Revenue split by geography

❑ Key operating business segment

➢ Organization Structure

❑ CXO’s and Executives

Rolodex04

Account Profile

Business & Financial Overview

Outsourcing Vendor Analysis

Globalization Footprint

Recommendations05

01

02

03

Source : DRAUP

3

3

In 2017, Caterpillar Inc., has invested around $1 Billion in advanced engineering for the development of automated vehicles

Note – DRAUP data curated from Caterpillar Inc. financial reports published annually and updated in December, 2018

Caterpillar Inc., is the world’s leading

manufacturer of construction and mining

equipment, diesel and natural gas engines,

industrial gas turbines and diesel-electric

locomotives.

About Caterpillar Inc

Revenue (2017):$ 45.5 Billion

Headquarter:Illinois, United States

Year of Establishment:1925

Revenue in $ Billion R&D spend in $ Billion

Revenue vs R&D spend (2013 - 17)

55.66 55.18

47.01

38.54

45.46

1.55 2.38 2.12 1.95 1.91

2013 2014 2015 2016 2017

Revenue CAGR

(2013 - 2017):

-4.93 %

CONSTRUCTION INDUSTRIES 42%RESOURCE

INDUSTRIES 16%

ENERGY & TRANSPORTATION 35%

FINANCIAL PRODUCTS 7%

Revenue share by segment (2017)Revenue share by Geography (2017)

46%

9%

23%

22%

NorthAmerica

LatinAmerica

EAME

Asia Pacific

R&D CAGR

(2013 - 2017):5.36 %

Employees (2017):~98, 500

R&D Spend (2017):$ 1.9 Billion

Source : DRAUP

4

4

Caterpillar Inc. – Executive Leadership (1/2)

Cheryl H. JohnsonChief Human Resources Officer

Jananne A. Copeland Chief Accounting Officer

Suzette M. LongChief Legal Officer

Denise C. JohnsonGroup President of Research Industries

Note: The above analysis is based on the DRAUP’s Executive Module, updated in December, 2018.

Note: Executives mentioned above are part of Executive Leadership team as reported by the organization. Exhaustive list of all the executives will be available in Draup Platform

Jill E. DaughertyChief Audit Officer

Joseph E. Creed Interim CFO of Caterpillar Inc.

Michael A. Mcguire Chief Compliance Officer

Bob de LangeGroup President of Customer & Dealer

Support

Thomas A. PelletteGroup President of Construction

Industries Segment

Ramin YounessiGroup President of Energy and

Transportation Segment

Thomas J. BluthChief Technology Officer and Vice

President of Innovation & Technology

Jim UmplebyChief Executive Officer

Engineering & Technology Leaders Business Leaders

Source : DRAUP

5

5

Caterpillar Inc. – Executive Leadership (2/2)

William P. AinsworthSenior Vice President, President

and CEO of Rail Services

Wai Man ChanVice President of Asia Pacific,

CIS, Africa & Middle East

Distribution Division.


Note: Executives mentioned above are part of Executive Leadership team as reported by the organization. Exhaustive list of all the executives will be available in Draup Platform

Qihua ChenVice President of China Operations

Division.

Joseph E. CreedVice President of Finance Services

Division.

Engineering & Technology Leaders Business Leaders

Julie A. LagacyVice President of Global

Information Services (GIS) Division

and Chief Information Officer.

Anthony D. FassinoVice President of the Building

Construction Products Division.

Steven M. FergusonVice President of Industrial Power

Systems Division.

Thomas G. FrakeVice President of Global Power

Solutions Division.

Damien GiraudVice President Global

Construction & Infrastructure

Division.

Nigel A. LewisVice President of Global

Aftermarket Solutions Division.

Frederic IstasVice President of the Earthmoving

Division

Kathryn D. KarolVice President of Global

Government and Corporate Affairs

Division.

Zachary A. KaukVice President of for the

Excavation Division.

Philip G. KelliherVice President of Americas &

Europe Distribution Division.

Pablo M. Koziner Vice President of Solar Turbines

Incorporated

Karl E. WeissVice President of Material Handling

& Underground Division.

Christopher R.

SnodgrassVice President of the Product

Support & Logistics Division.

Tana L. UtleyVice President of Large Power

Systems Division.

Ogi RedzicVice President of

Cat Digital Division.

E. Jean SavageVice President of Surface Mining

& Technology Division.

Source : DRAUP

6

6

• On September 2018, Caterpillar Inc., invested in Guardhat Technologies, the

Internet of Things (IoT) industrial safety technology developer to provide

solutions that prevent work-related incidents in the hazardous conditions.

• On February 2017, Caterpillar Inc., invested in MineSense Technologies, a

provider of data analytics systems for the mining industry to improve ore waste

classification in the mining sector.

• Caterpillar Inc. has invested more than $715 million in communities around the

world and invested more than $33 million in 2017 to develop resilient and

sustainable communities.

• On February 2017, Caterpillar invested in Airware to offer solutions and

services within the construction, mining, and quarrying industries and to highlight

Caterpillar’s commitment in leading the Industrial Internet of Things (IIoT).

• On July 2018, Caterpillar partnered with Newmont on underground vehicle

automation, to develop and improve technology used in underground hard rock

mining vehicle automation.

Establish – Partnerships

Accelerate Growth – Emerging Technologies

KEY STRATEGIC PRIORITIES: Strengthen core business initiatives, Emerging Technologies, Partnerships & Organizational restructure

Core Business Initiatives

Note: The above insights are curated through various strategic and tactical signals triggered in Draup Platform from news articles, journals and other similar sources in the

last 2 years

Restructure – Organisational hierarchy

• On July 2018, Caterpillar Inc., has appointed Ogi Redzic as Vice President to

lead the company’s digital enabled solutions division (DESD).

• On 4 May 2018, Caterpillar Inc., appointed Andrew Bonfield as Chief

Financial Officer (CFO) to manage financials over the organisation.

• On 3 May 2018, Caterpillar Inc. has appointed Steve Ferguson as a Vice

President of the company, to lead the Industrial Power Systems Division

(IPSD).

• On 1 March 2018, Caterpillar Inc., appointed Tony Fassino as Vice President

of Building Construction Products (BCP) Division, to make fact-based

decisions with a determination to help customers succeed.

• In May 2017, Caterpillar acquired Yard Club, a market place for construction

equipment, deals with Caterpillar network and helping them to rent as well as

sell equipment to contractors and construction crews.

• In 2017, Caterpillar acquired Kemper Valve & Fittings Corp., manufacturer of

a complete line of high and low pressure flow iron to the oil and gas industry to

expand existing suite of Cat® well service products.

Source : DRAUP

7

7

Caterpillar Inc. – BRANDS

Note: The above insights are curated through various strategic and tactical signals triggered in Draup Platform from news articles, journals and other similar sources in the

last 2 years

Cat Financial offers a wide range of

financing alternatives for customers

and dealers around the world.

Cat Reman recovers materials

through various technology and

employs sustainable practices to

restore components.

The Cat Rental Stores, a convenient

source for Cat, that delivers a consistent,

convenient, one-stop-shopping

experience.

Anchor specializes in high quality

hydraulic hose and couplings for

both the OEM and General Market

business sectors.

AsiaTrak produces undercarriage

components for hydraulic excavators

and track type tractors for Caterpillar

and outside OEMs.

FG Wilson has been a major global player

and leader in the provision of power

generation ensuring power is delivered

when and where it is needed.

Hindustan, a leading provider of

heavy vehicles for regional cat

dealers within India, Nepal &

Bhutan.

Hypac provides mining equipment

spares and components for electric

drive off-highway

MWM involved in the development and

optimization of products, services &

technologies for decentralized energy supply.

Provides comprehensive service and

support of Cat® dealers throughout

the life of the generator set.

Supplies gas and diesel engines in

the 4-2000 kW/5-2800 hp range, with

the capacity to produce up to 900,000

units per year to Caterpillar.

Prentice manufactures logging equipment

with a commitment to quality products that

are dependable and productive.

Progress Rail provides solutions for

railway infrastructure, including new

and used rail, rail welding,

trackwork components.

SEM, a subsidiary of Caterpillar

manufactures wheel loaders in China.

Solar Turbines manufactures mid-size

industrial gas turbines for use in electric

power generation, gas compression, and

pumping systems.

Turner, a leader in development &

manufacturer of transmissions for

backhoes, wheel loaders and

telehandlers.

YellowmarkTM is a line of repair and

replacement parts made by

Caterpillar to expertly fit

Cat® machines.

Kemper, a North American Market leader in

the production of Hammer Unions for Oil &

Gas service.

Source : DRAUP

8

8

AGENDA

➢ Details on Global Technology Footprint

❑ Key buying locations

❑ Region wise insights for global Technology centres – Headcount,

Activities and key products developed

Account Profile




Rolodex04

Recommendations05

01

02

03

Source : DRAUP

9

9

Summary: Caterpillar Inc. – Technology Globalization Footprint

Key Buying Locations

➢ Key buying centers is based out of Peoria, Illinois Area, United States.

➢ United States with ~ 65% of the engineering talent, primary deals with R&D in Centre mainly works on design, development

and validation of high power medium voltage AC traction systems for freight and passenger locomotives, gas engine model

development using Hardware in loop(HIL) simulation development and testing.

Key Engagements

➢ Some of the key activities of the R&D Centres in Construction Industries segment includes design support for current

production issues on the motor grader product line, large structure virtual product development, process development.

➢ Some of the key activities of the R&D Centres in Energy & Transportation segment includes test bed support for diesel,

gas and dual-fuel products, Model based control software development, formulated requirements.

➢ Some of the key activities of the R&D Centres in Resource Industries segment includes engine linear, torsional vibration,

experimental modal analysis, OMSA(on machine stress analysis), air system development for global product.

➢ Some of the key activities of the R&D Centres in Financial Products segment includes analysis and checking of

engineering drawings, using certified documentation and engineering design software.

Key Stakeholders Terri LewisDigital & Technology Director

Steve FergusonGeneral Manager Advanced

Component Manufacturing

Tom BluthChief Technology Officer

Source : DRAUP

10

10

Caterpillar Inc. : United States has ~65% of Engineering workforce installed. Chennai Area, Illinois Area and San Francisco Bay Area, United States are the key buying centers.

Global Technology Footprint of Caterpillar Inc.

31Total Number of Technology Hotspots

11,000 – 13,000Total Number of Technology workforce

Installed

3Number of Buying Centers

Note: The represented data has been collected from Draup Proprietary Global Footprint Database updated as of December, 2018.

Note: Global Footprint Data curated by DRAUP and updated in December, 2018

USA

No of Centers : 15

Head Count : 8K – 8.5K

China

Germany

India

Singapore

Japan

UK

No of Centers : 4

Head Count : 1K – 1.5K

No of Centers : 2

Head Count : 60 – 80

No of Centers : 1


No of Centers : 2

Head Count : 1.5K – 2K

No of Centers : 1


No of Centers : 2

Head Count : 800 – 1K

Australia

No of Centers : 2


Canada

No of Centers : 1


Switzerland

No of Centers : 1


Source : DRAUP

11

11

Caterpillar Inc. : Hub is concentrated only at Peoria, Illinois Area, United States

Outpost

Hub

Note: The represented data has been collected from Draup Proprietary Global Footprint Database updated as of December, 2018.

Note: Global Footprint Data curated by DRAUP and updated in December, 2018

Construction Industries

Energy & Transportation

Resource Industries

Financial Products

Greater Minneapolis-St. Paul Area

Key Research Areas:

Electronic system & software controls.

Key Talent Demand:

Design Engineer

Greater Milwaukee Area

Key Research Areas:

Design of heavy structures.

Key Talent Demand:

Manufacturing Engineer

Greater Chicago Area

Key Research Areas:

Design of Large Wheel Loaders.

Key Talent Demand:


Peoria, Illinois Area

Illinois Area[2]

Key Research Areas:

Design of Large Wheel Loaders.

Key Talent Demand:


Arizona Area

Key Research Areas:

Design of Mining Trucks.

Key Talent Demand:

Design Engineer

Texas Area[2]

Key Research Areas:

Research on large engines.

Key Talent Demand:

Manufacturing, Design Engineer

Greater Atlanta Area

Key Research Areas:

Design of engine, hydraulic, and cooling

solutions.

Key Talent Demand: Design Engineer

Montreal, Canada Area

Key Research Areas:

Validation of power solution.

Key Talent Demand:

Mining Application Specialist

Greater Pittsburgh Area

Key Research Areas:

Testing of trucks.

Key Talent Demand:

Test Engineer

North Carolina Area

Key Research Areas:

Design of hydraulic and powertrain.

Key Talent Demand:

Machine Assembler

Indiana Area[2]

Key Research Areas:

Validation of different fuels.

Key Talent Demand:

Warehouse associate Engineer

Japan

Key Research Areas:

Analysis of hydraulic

excavator .

Key Talent Demand:

Validation Engineer

Wuxi

Key Research Areas:

Design of hydraulic

components.

Key Talent Demand:

IT manager

Perth

Key Research Areas:

Development of low

pressure fuel lines.

Key Talent Demand:

Warehouse Associate

Tasmania

Key Research Area:

Development of design

solutions

Key Talent Demand:

Warehouse Associate

Beijing Area

Key Research Areas:

Improvement of e -

commerce sales.

Key Talent Demand:

Development Manager

Singapore

Key Research Areas:

Research on High quality Marine products.

Key Talent Demand:

Demand Planning Analyst

Switzerland

Key Research Areas:

Development across EAME.

Key Talent Demand:

Sales Coverage Consultant

Chennai Area

Key Research Areas:

Analysis of Engine Installation.

Key Talent Demand:

Design engineer, Data Analyst

Bengaluru Area

Key Research Areas:

Electric Power Products

Key Talent Demand:

Data Scientist

Regensburg Area

Key Research Areas:

Development of wheeled

excavators

Key Talent Demand:


Dortmund Area

Key Research Areas:

Development of generators.

Key Talent Demand:

Design Engineer

Sunderland

Key Research Areas:

Reduction of costs.

Key Talent Demand:

Quality Analyst

Belfast

Key Research Areas:

Product Manufacturing.

Key Talent Demand:


Leicester

Key Research Areas:

Installation of wheel loader.

Key Talent Demand:

Design Engineer

Peterborough

Key Research Areas:

Validation of rail fuel system.

Key Talent Demand:


San Francisco Bay

Key Research Areas:

Development of Semi-

Autonomous Trucks

Key Talent Demand:

Automation Engineer

Source : DRAUP

12

12

Peoria, Illinois Area, United States – Technology Centre Deep Dive: Centre Overview

Note: The above analysis is based on the DRAUP’s Executive Module, updated in December, 2018

• Peoria, Illinois Area, United States center works on design and analysis of large structures, medium tractor

products, machine testing, structural validation & test, fuel economy analysis, feasibility assessment and concept

study for hauling machines including large mining trucks.

• Development of machines models for Hardware In the Loop (HIL) and Software In the Loop (SIL).

• This center primarily deals with products related to construction and resource industries.

• Involved in machine and power systems cooling component design control, cooling module concept.

• Design and development of mining, track type tractor, wheel loaders and motor grader applications, HIL validation

of algorithm developed for multi-engine optimization for marine gensets.

• Involved in designing of next generation cooling systems.

Top leaders

Tom BluthCTO and Vice President

Jean SavageVice President Surface Mining and

Technologies

Major Engineering Talent Profiles

Data

Scientist

System Software

Engineer

Location

Peoria, Illinois Area,

United States

R&D Headcount

5K – 5.5K FTEs

Center Level

Hub, HQ

Average Salary Cost / FTE

$ 90K / Annum

Source : DRAUP

13

13

Peoria, Illinois Area, United States – Technology Centre Deep Dive: Technology Leadership

Technology Leadership

6 Key Executives (Including, SVPs, VPs and Directors)

Directors

Directors

Top Leaders Tom Bluth

Chief Technology Officer And Vice President

Jean Savage

Vice President Surface Mining and

Technologies

Rachele AckermanDigital & Analytics Manager

Joseph BlubaughData Science Manager

Steve Ferguson

General Manager, Advanced Component Manufacturing

Terri Lewis

Digital & Technology Director


Note: Executives mentioned above are some of the key Technology Leaders in the organization and not exhaustive. Exhaustive list will be available in Draup Platform

Source : DRAUP

14

14

DETAILS Buying CentersLOCATIONTECHNOLOGY

HEADCOUNT

Note: Global Footprint data curated by DRAUP and updated in December, 2018. Technology Headcount includes research and product engineering talent


United States5000 – 5500

• Design, development and implementation of the engine system features according to the software requirements

specifications provided by the customer.

• Design of electric components for motors, generators and energy storage.

Chennai Area, India 1000 – 1500

• Design and implementation of software for embedded application in Caterpillar Machine ECM ‘s.

• Software development of CAT productivity measurement in C and C++ environment on Linux platform.

• Analysis and enhancement on efficiency, stability and scalability of system resources.

Greater Chicago Area,


• Design and development of prototype telematics firmware.

• Structural validation of engine mounted components for durability and potential fatigue failures.

• Design, validation and release of large structures within the medium wheel loader product line.

Wuxi, China 800 – 900• Design of various types of cylinders.

• Engine installation and cooling package design of CAT medium track type tractor series (D5, D6, D7).

Peterborough, United

Kingdom600 – 800

• Development and validation of next generation rail fuel system for Caterpillars to future emission levels.

• Engine systems design for caterpillars range of compact wheel loaders.

Bengaluru Area, India 300 – 500• Development of Web Applications for the customers to visualise the productivity of CAT machines and equipments.

• Design and construction of automation system for the ETL Applications.

Globalization Technology Footprint (1/5)

Source : DRAUP

15

15

DETAILSLOCATIONTECHNOLOGY

HEADCOUNT


Belfast, United

Kingdom300 – 400 • Center responsible for manufacturing and planning of product for delivery to customer.

Raleigh-Durham, North

Carolina Area, United

States

300 – 400 • Development of global strategic supply base for building construction products division.

Lafayette, Indiana Area,


• 3D modelling of wire harnesses, control panels, junction boxes, and circuit breakers, bus bars and new components.

• Research and analyzsis of customer design proposals, specifications and manuals to complete projects.

• Development of Caterpillar 3500 (3508, 3512, 3516) engines for the oil & gas industry.

Decatur, Illinois Area,


• Manufacturing of all frame and sub - assy weldments for the large mining trucks, off-highway trucks and wheel tractor

scrapers.

• Preparation and painting of Mining Equipment, tracking of paint quality and improvement of manufacturing efficiency

within the paint departments.

Leicester, United

Kingdom200 – 300

• Design, development and maintenance of a full range of simple & hydromechanical work tools across multiple families of

CAT Products.

• Software and systems integration engineer for all compact wheel loader products within caterpillar's BCP division.

Greater Minneapolis-St.

Paul Area, United

States

100 – 200• Hardware design for operator interfaces, specializing in dual and single axis joystick control.

• Design of the electrical system for new products including component selection.


Source : DRAUP

16

16


HEADCOUNT


Greater Milwaukee

Area, United States100 – 200

• Design of projects involving heavy structures including chassis, crawler, and car body on the electric rope shovel at a

manufacturer of mining equipment.

Urbana-Champaign,

Illinois Area, United

States

100 – 200• Development of methods for optimization and analytics.

• Failure analysis on mining truck, wheel tractor scraper, and motor grader components returned from the field.

Singapore 100 – 200• Centre responsibilities includes engineering field testing, area dealership capability and development, troubleshooting

engineering issues and technical sales support.

Greater Atlanta Area,


• Development and support of fully integrated credit auto-scoring rules engine, FICO® Blaze Advisor.

• Creation and maintenance of assembly work instructions and assembly visual aids.

Tucson, Arizona Area,


• Integration engineering of 785 and 789 large mining trucks.

• Light structures design for wheel tractor scrapers product group.

Sunderland, United

Kingdom80 – 100

• Coordination and implementation of engineering changes into production in a timely and efficient manner whilst ensuring

minimum cost impact.


Source : DRAUP

17

17


HEADCOUNT


Tasmania, Australia 80 – 100• Design and development of hydraulic lines systems for HRV's per Caterpillar engineering and international standards.

• Testing and validation of hydraulic systems for new products.

San Antonio, Texas


• Design and implementation of integrated logistics services.

• Preparation of catalysts for use with diesel and natural gas engine emissions treatment and fuel processing.

Japan 80 – 100• Design, modelling, B10 life calculation & static analysis of hydraulic excavator structures as per caterpillar japan

standards.

Switzerland 40 – 60 • Improvement of software tools, data analysis and support to distributors in the EAME region.

Greater Pittsburgh


• Development and deployment of multiple hardware-in-loop (HIL) test benches to streamline autonomy software

integration and verification.

• Validation of Software-in-the-loop(SIL), hardware-in-the-loop (HIL), and automated testing.

Beijing Area, China 40 – 60 • Deployment of technology products and big data system as well as customer portal to upgrade dealer operation system.


Source : DRAUP

18

18


HEADCOUNT


Indianapolis, Indiana


• Design, testing and validation of fuel injectors for increased durability in lesser regulated countries by applying a thin film

diamond-like coating.

Montreal, Canada Area 40 – 60 • Centre is responsible for Software development for audio and video streaming platform.

Dortmund Area,

Germany40 – 60

• Design, implementation and maintenance of frontend and backend software in HMI embedded systems.

• Development, execution and expansion of automated system tests to validate implemented modules.

San Francisco Bay


• Centre works on developing Next Generation of Caterpillar Terrain Mining Software with Visual Studio C++, a property of

Caterpillar Trimble Control Technologies (CTCT).

Sherman/Denison,

Texas Area, United

States

20 – 40 • Design and implementation of “DUMP SPOT” cat® terrain feature for semi-autonomous trucks.

Perth, Australia 60 – 80 • Development and implementation on engine low pressure fuel lines like T4F large engines.

Regensburg Area,

Germany20 – 30

• Design and development of various wheel excavator attachments as per OEM standards.

• Design and development of hydraulic routing of complete machine.


Buying Centers

Source : DRAUP

19

19

AGENDA

➢ Outsourcing Vendor’s deals analysis

❑ Total headcount outsourced to service providers

❑ Key vendors working with Caterpillar Inc.

❑ Key Opportunity areas to target

Account Profile




Rolodex04

Recommendations05

01

02

03

Source : DRAUP

20

20

Key partners➢ Infosys and IBM are the major strategic partners for Caterpillar Inc., working majorly on ADM, PES, Digital Services,

R&A, IMS and CSI.

Key Activities

➢ PES subsegment is the highly outsourced subsegment contributing ~34% of the total outsourcing size.

➢ Major workloads of PES are Design and development of industrial diesel engines and exhaust after treatment systems for Tier 4

final and Tier 5 Final.

➢ Design and development of machine application for MPC 555 microcontroller based hardware board for multiple variations of

Pavers, Cold Planers, Motor Grader and Tractors.

Key Opportunity Areas ➢ Vendors should target on design of heavy trucks related engagements with Caterpillar Inc.

Summary: Caterpillar Inc. – Engineering Services Outsourcing

Source : DRAUP

21

21

Vendor Analysis: Infosys and IBM are the major strategic partners for Caterpillar Inc.

2000 – 2500Workforce split across

Outsourcing Partners19 Active Outsourcing Partners

Note - Above analysis is based on the DRAUP’s proprietary Outsourcing module, updated in December, 2018. The above Outsourcing data are only represented for Caterpillar Inc. financial.

Note - ADM – Application Development & Maintenance, IMS – Infrastructure Management Services, R&A – Reporting and Analytics, PES – Product Engineering Services, CSI – Consulting and System Integration Services and DS –

Digital Service

Top Outsourcing Partners

Outsourcing Intensity by Sub vertical

PES34%

ADM23%

IMS21%

CSI11%

R&A6%

DS5%

▪ Bengaluru Area, India

▪ Castelo Branco Area,

Portugal

▪ Chennai Area, India

▪ Columbus, Georgia Area,

United States

▪ Peoria, Illinois Area, United

States

▪ Lyon Area, France

▪ Lafayette, Indiana Area,

United States

▪ Hyderabad Area, India

▪ Raleigh-Durham, North

Carolina Area, United States

▪ Mulhouse Area, France

Key Buying LocationsKey Provider Locations

▪ Chennai Area, India

▪ Peoria, Illinois Area, United

States

▪ San Francisco Bay Area,

United States

Source : DRAUP

22

22

Outsourcing Snapshot by sub service segment : PES Sub-segment is the highly outsourced sub segment with multiple vendors (1/2)

Note - Above analysis is based on the DRAUP’s proprietary Outsourcing module, updated in December, 2018.The above list may not be completely exhaustive.

Note – Outsourcing analysis is based on curation and analysis of deals data from various secondary sources followed by computation through Machine Learning models and manual effort. Deals are then

tagged to Draup’s Predefined Sub service segments and HC estimation is a result of estimation models based on aggregation of data collected from various secondary sources

*Above analysis represents the HC split of Service Providers in each Sub-segment for updated in December, 2018.

* ADM – Application Development & Maintenance , PES – Infrastructure Management Services and IMS – Infrastructure Management Services

GGS Information Services, 25%

Belcan, LLC, 14% Cyient, 10%

QuEST Global, 8%

AXISCADES, 7%

HCL, 7%

Segula Technologies, 5%

L&T TS, 5%

Others, 18%

PES

L&T TS, 40%

Accenture, 17%

IBM, 14%

HCL, 10%

Tech Mahindra, 6%

Cognizant, 6%

Belcan, LLC, 4%

Altran, 2%

ADM

Infosys, 43%

IBM, 33%

NTT Data, 24%IMS

Others: Sasken, Infosys, TCS, Tech Mahindra, Akka Technologies and Etteplan.

Source : DRAUP

23

23

Outsourcing Snapshot by sub service segment (2/2)

Note - Above analysis is based on the DRAUP’s proprietary Outsourcing module, updated in December, 2018.The above list may not be completely exhaustive.



*Above analysis represents the HC split of Service Providers in each Sub-segment for updated in December, 2018.

• CSI – Consulting and System Integration Services R&A – Reporting and Analytics and DS – Digital Service

Accenture, 37%

IBM, 29% HCL, 20%

Cognizant, 14%CSI

HCL, 58%

NTT Data, 31%

Cognizant, 12%R&A

Infosys, 75%

Cognizant, 25%

DS

Source : DRAUP

24

24

Key Vendor Engagements Snapshot (1/5)

Note - Above analysis is based on the DRAUP’s proprietary Outsourcing module, updated in December, 2018.Outsourcing details mentioned above are only some of the ongoing projects and not exhaustive.



IMS :

• Implementation of SAP or Oracle migrations and upgradation, including environments through Oracle Data Guard.

• Implementation, design and support of all network devices that includes router, switches and riverbeds.

Digital Services :

• Deployment of product link that transmits the information via cell, satellite and its corresponding web-based application.

PES :

• Design and development of industrial diesel engines and exhaust after treatment systems for Tier 4 final and Tier 5 Final.

• Design and development of machine application for MPC 555 microcontroller based hardware board for multiple variations of Pavers, Cold

Planers, Motor Grader and Tractors.

IMS, 69% Digital Services, 21% PES, 10%

Split of Workforce by Sub Segment

Key Delivery Locations

Chennai Area,

Bengaluru Area, India

IMS :

• Maintenance, support and administration of IBM DB2 database.

ADM :

• Operations on the development of e-commerce application for Caterpillar.

• Management of all batch and console operations for Caterpillar Environments.

CSI :

• End to End implementation, testing and support of SAP System.



Chennai Area,


IMS, 52% ADM, 24% CSI, 24%

HC: 250 – 300

HC: 250 – 300

Source : DRAUP

25

25





PES :

• Design of the hydraulic excavator schematics with some changes like addition of extra cylinders or valves.

ADM :

• Development of an application that helps Caterpillar to manage their dealers and asset.

• Operations on product link web application used for collecting the information from telematic device.

CSI :

• Implementation and support of salesforce system and support of SAP system.

R&A :

• Creation of report on Kiewit, a dashboard of various operational metrics related to its telematics assets attached to different trucks and machines.



Chennai Area,


R&A, 34% PES, 22% ADM, 22% CSI, 22%

PES :

• Autonomous software design and development for Underground Load Haul Dump vehicle.

• Software ownership for On board and Off board systems.

• Software Development for Site Server, Machine Software and Interface for Operator station UI system.

ADM :

• Development of an Application code for Various features of display.

• Verification of strategies of Speed timing by using Automation Desk.



Chennai Area,


ADM, 83% PES, 17%HC: 200 – 250

HC: 200 – 250

Source : DRAUP

26

26





PES :

• Operation on 3600, 3500 and 3400 series of caterpillar engines.

• Assembly of all the engine parts through Vismockup.

PES, 100%



Chennai Area, India

CSI :

• Implementation, customization and support of SAP system and Windchill product lifecycle management system for caterpillar global.

ADM :

• Development of an application that helps in registration of different products of Caterpillar.

CSI, 51% ADM, 49%




HC: 150 – 200

HC: 150 – 200

Source : DRAUP

27

27





PES :

• Development of solenoid calibration and lever calibration for track type tractors.

• Development of auxiliary and VPAT functionalities for tractors.

ADM :

• Validation and testing of Caterpillar engine software.

PES, 83% ADM, 17%



Greater Memphis Area,

Indiana Area, Illinois Area,

North Carolina Area

IMS :

• Implementation of setup and configuration setup completion.

• Automation of ticket tool with script which assign ticket to agents.

• Evaluation of system configuration and software to ensure effective use of hardware resources.

R&A :

• Maintenance of the SLAs for the account and ensure that it is overachieved.

• Creation of the governance reports are in place so that the agents activity are tracked.




Tucson, Arizona Area

IMS, 73% R&A, 27%HC: 150 – 200

HC: 100 – 150

Source : DRAUP

28

28





ADM :

• Development and testing of Caterpillar VIMS, a powerful tool for machine management that provides operators, service personnel and

manages information on a wide range of vital machine functions.

CSI :

• Implementation and support of salesforce customer relationship management system.

Digital Services :

• Implementation of Blue Prism RPA to automate the BoM process.

R&A :

• Design and development of extensive QlikView Dashboards through different charts and tables.



Bengaluru Area,

Chennai Area India

CSI, 35% ADM, 30% Digital Services, 20% R&A, 15%

PES :

• Development of caterpillar forest products like wheel feeler buncher, track feeler buncher, wheel and track skidders, forest products, frame and

hood structure, enclosures and plastic fuel tanks.

• Design of non-metallic fuel tanks for various caterpillar forestry products like Log loader ,wheel filler buncher, track filler bunchers and KBL

machines.

PES, 100%



Georgia Area, Illinois Area,

Chennai, Bengaluru,

Hyderabad

HC: 100 – 150

HC: 60 – 80

Source : DRAUP

29

29

AGENDA

➢ Key Technology Stakeholders

❑ Key Technology stakeholders & Leadership

Account Profile




Rolodex04

Recommendations05

01

02

03

Source : DRAUP

30

30

Caterpillar Inc. – Technology Leadership

Jean SavageVice President Surface Mining and

Technologies

Morgan VawterChief Analytics Director

Terri LewisDigital & Technology Director

Tom BucklarDirector of IoT & Digital Channel Solutions

Joseph BlubaughData Science Manager

Rachele AckermanDigital & Analytics Manager



Sreyas VidyasagarGeneral Manager

C. David CrouchDirector of Research and Development

Tom BluthChief Technology Officer and

Vice President of Innovation and Technology

Source : DRAUP

31

31

Caterpillar Inc. – Procurement Leadership



Thomas Brand GM - Global Logistics Procurement

Doug Weston Director of Purchasing, Power System

Douglas GillespieDirector of Procurement

Jacques LorentChief Purchasing Officer

Chris ChadwickDirector, Indirect Procurement & Facilities

Chris JarvisDirector of Procurement - Resource Industries

Paul SivaswamySr. Procurement Manager

Anand DeshpandeGlobal Procurement Manager

Biagio PucciGlobal Category Procurement Manager

Stefanie J. MaloneyProcurement Manager

Source : DRAUP

32

32

AGENDA

➢ Key Opportunities

❑ Construction Industries Segment

❑ Energy & Transportation Segment

❑ Resource Industries Segment

❑ Financial products Segment

Account Profile




Rolodex04

Recommendations05

01

02

03

Source : DRAUP

33

33

By analysing Caterpillar Inc., DRAUP has identified the following key opportunity areas

Strategic Key Opportunity Segments

Note - Above analysis is based on the DRAUP’s proprietary services module, updated in December, 2018.

• Caterpillar focuses on providing integrated solutions for well

stimulation and marine, and offering of digital solutions from simple

to comprehensive.

• Caterpillar is focussing on growing and expanding on the successes

of strong services offerings to provide value to customers.

Energy & Transportation Segment

• Caterpillar focuses to build a strong foundation of operational

excellence by concentrating on quality, Lean and competitive and

flexible cost structure.

• Caterpillar is focussing on delivering Cat® Connect services and

technologies to create more productive, safe and sustainable jobsites.

Construction Industries Segment

• Caterpillar focuses to use Operating & Execution Model (OEM) to

efficiently leverage global scale in serving customers.

• Caterpillar is currently focussing on offering enhanced E-commerce

solutions and tailored service solution to leverage global scale in

serving customers.

Financial products Segment

• Caterpillar is currently focussing to partner with customers

at their sites to reduce cost per ton.

• Caterpillar focusses on site automation for accelerating

services to meet customer requirements.

Resource Industries Segment

Source : DRAUP

34

34

https://twitter.com/zinnov

http://facebook.com/ZinnovManagementConsulting

https://www.linkedin.com/company-beta/30724/

https://www.youtube.com/channel/UCgEN1J9L2jTqBOlWsH65w8w

http://www.zinnov.com/

mailto:[email protected]?subject=How%20can%20we%20help%20you?

http://www.draup.com/

https://twitter.com/zinnov

http://facebook.com/ZinnovManagementConsulting

https://www.linkedin.com/company-beta/30724/

https://www.youtube.com/channel/UCgEN1J9L2jTqBOlWsH65w8w

mailto:[email protected]?subject=How%20can%20we%20help%20you?

Source : DRAUP

35

35

Appendix

Source : DRAUP

36

36

Service Providers having outsourcing workforce each of less than 4% of Caterpillar’s total outsourcing

ADM, 60%

ADM, 100%

PES, 100%

PES, 100%

PES, 40%

PES, 100%

PES, 100%

PES, 100%

PES, 100%

PES, 100%

QuEST Global

AXISCADES

Tech Mahindra

Segula Technologies

Sasken

TCS

Etteplan

Akka Technologies

Altran

Head Count

40 – 60

40 – 60

40 – 60

20 – 40

20 – 40

10 – 20

10 – 20

10 – 20

60 – 80

Source : DRAUP

37

37

Appendix: Inclusions and Definitions of “Sub – Service Segments”


Application Development & Maintenance (ADM)

Application DevelopmentInvolves Defining, designing, and building applications tailored to meet client business requirements.

Services include Solution development, application whitelisting, application control, application security,

risk mitigation

Testing Services

Software testing involves the execution of a software component or system component and evaluate it

against one or more properties of interest to ensure its smooth functioning and capability of seamless

integration across various technologies. Services include Software testing, Mobile testing, Cloud based

testing, functional testing, engineering testing, user acceptance testing (UAT), non-functional testing,

Model testing

Application ModernizationModernization services help modernize legacy systems to enhance flexibility, mitigate risk, minimize

disruption, and lower costs. Application Rationalization, Re-hosting, application re-engineering, Field

Remediation, Data migration, Re-structuring of applications

Application Maintenance

Application Maintenance helps clients with proper maintenance of the existing applications across areas

of application operations management, support, updation and availability. Services include Pro-active

maintenance, TCO Reduction, Alignment with industry standards, corrective maintenance, SLA

Management, Knowledge management

Custom Application Development Custom build application development services for an end client

Mobile ServicesUse of Mobile medium by enterprises through building innovation mobile solutions to target customers by

offering bundled services. End-to-end solutions and services to help companies capture insight from

mobile devices to fuel innovation.

Product Engineering Services (PES)

Product Engineering ServicesServices to design and deliver a new wave of intelligent products with an aim to undergo process of

innovation, re-engineering, process optimization, localization, customization and cost rationalization

Source : DRAUP

38

38



Consulting & System Integration (CSI)

Advisory Services

Consulting and advisory services that enables an organization to across business process transformation

to improve performance, increase effectiveness, reduce costs and improve resilience. Services mainly

involve business advisory, business and functional transformation, IT consulting and risk and compliance

services

Package Software ConsultingIT Consulting and Advisory services across enterprise level package software solutions. Services to

evaluate which package solutions would solve an enterprise wide work area and also evaluating its

integration capabilities across the current application stack used by an organization

System Integration Services

Integration, implementation or deployment of a software solution/hardware for an enterprise and ensuring

its proper functioning in line with its integration with various other solutions or hardware currently in use

by the enterprise. Services include Cloud Integration, Data Integration, EAI (enterprise application

integration), Integrated Communication, Network Integration, Integrated Security Software, Service-

oriented architecture, etc.

Application Portfolio Optimization

Application Portfolio Optimization services help companies ensure that their portfolio of IT projects,

applications and infrastructure are providing cost-effective benefits to the organization. Aim is to identify

disparate applications and ensure ways to integrate them into a core enterprise solution. Services include

mapping application to business functions and its importance, cost management analysis, dependency

mapping of an application, etc.

Source : DRAUP

39

39



Infrastructure Management Services (IMS)

Server, Network, Desktop

Management

IT Infrastructure Management Services (IMS) offers a suite of reliable, responsive, flexible and proven

infrastructure services and solutions that deliver differentiated value across management of an enterprise

hardware components such as Servers, Network, Desktops. Its aims to maintain and manage a client's IT

applications and systems and ensure 24/7 availability

Datacenter ManagementDesign and management of data centers across heterogeneous platforms. Services include Server / OS

management, Database Management, Middleware management, Storage and Backup management,

Production Operations, Mainframe Services, Hosting, etc.

Disaster ManagementUse of services and solutions to ensure the presence of a holistic, proactive and technology-driven

strategy for multi-disaster management. Services can be across enterprise data, backup, IT systems, Real

time monitoring of IT solutions and hardware, etc.

Remote Infrastructure ManagementRemotely managing information technology (IT) infrastructure such as workstations (desktops, laptops,

notebooks, etc.), servers, network devices, storage devices, IT security devices, etc. of a company

High End Technical SupportHigh level product and services support provided by qualified engineers. Services Tech support services,

Remote Diagnostic Services, Set-up and Configuration, Patch Management, Service pack and Database

Upgrades, Warranty Management/ RMA, Engineer Dispatch Management

Source : DRAUP

40

40



Reporting & Analytics

Reporting & DashboardApplications enabling tracking and monitoring the health of an organization or department by reporting

on certain KPIs, business metrics, and analytics. Reporting & dashboards are majorly used to

summarize information thereby providing a glance into enterprise's business performance

BI / Analytics

BI / Analytics encompasses a wide variety of tools, applications and methodologies that enable

organizations to collect data from internal systems and external sources, prepare it for analysis, develop

and run queries against the data. It enables discovery, interpretation, and communication of meaningful

patterns in data to help relevant stakeholders to make more informed business decisions.

Data QualityData Quality services enables delivery of clean, trusted data to ensure enterprises meet their projects

and business objectives. Such applications and services enable effective data extraction, transformation

and loading along with superior data management.

Digital Services

SocialEnd-to-end solutions and services to help companies capture insight from social media engagements to

fuel innovation.

Advanced AnalyticsHigh-end Advance Analytics solutions being leveraged which enable an organization to run analysis on

their customer data and enables Predictive and Prescriptive analysis. Such solutions can be SAS

Analytics, SAP, etc.

Internet-of-Things (IoT)Solutions and platforms which enable an enterprise to transfer and run data over a network through web

of inter-connected devices and technologies such as mobile, sensors, database, CRM etc.

Machine Learning (ML) / Cognitive

Computing (CC) / Artificial

Intelligence (AI)

Use of Artificial Intelligence solutions and services by an enterprise solving a particular business function.

Example might be use of IBM Watson by an enterprise. Also includes Enterprises leveraging solutions

which studies various patterns and computational learning and processes a particular task based on the

identification of a particular pattern. Enables a particular task to be done without any human intervention

Robotics Process Automation (RPA)

Robotic process automation (RPA) is the application of technology that allows employees in a company

to configure computer software or a “robot” to capture and interpret existing applications for processing a

transaction, manipulating data, triggering responses and communicating with other digital systems

automatically

Caterpillar Inc. Account Deep Dive Analysis - Amazon S3 · 2019-06-11 · Source : DRAUP 6 6 • On...

Documents

Transcript of Caterpillar Inc. Account Deep Dive Analysis - Amazon S3 · 2019-06-11 · Source : DRAUP 6 6 • On...