CNH Industrial has signed a five-year agreement to collaborate with Microsoft and Accenture to develop a system of digital services for its operations.
The companies will create a global network of digital hubs in the U.S., Europe, Brazil and India to design, launch and manage a set of data-driven services using advanced analytics, artificial intelligence and cloud computing.
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.
Through its various businesses, CNH Industrial designs, produces, and sells agricultural equipment and construction equipment, trucks, commercial vehicles, buses, and special vehicles, in addition to powertrains for industrial and marine applications.
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 help CHN Industrial 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 centres that combine start-up 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.”
