Caterpillar Inc. Account Deep Dive Analysis - Amazon S3 · 2019-06-11 · Source : DRAUP 6 6 • On...
Transcript of Caterpillar Inc. Account Deep Dive Analysis - Amazon S3 · 2019-06-11 · Source : DRAUP 6 6 • On...
Source : DRAUP
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Caterpillar Inc. – Account Deep Dive
Analysis
December 2018
Source : DRAUP
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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
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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
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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
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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: 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
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
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• 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
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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
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AGENDA
➢ Details on Global Technology Footprint
❑ Key buying locations
❑ Region wise insights for global Technology centres – Headcount,
Activities and key products developed
Account Profile
Business & Financial Overview
Outsourcing Vendor Analysis
Globalization Footprint
Rolodex04
Recommendations05
01
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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
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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
Head Count : 100 – 150
No of Centers : 2
Head Count : 1.5K – 2K
No of Centers : 1
Head Count : 80 – 100
No of Centers : 2
Head Count : 800 – 1K
Australia
No of Centers : 2
Head Count : 100 – 150
Canada
No of Centers : 1
Head Count : 20 – 40
Switzerland
No of Centers : 1
Head Count : 40 – 60
Source : DRAUP
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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:
Manufacturing Engineer
Peoria, Illinois Area
Illinois Area[2]
Key Research Areas:
Design of Large Wheel Loaders.
Key Talent Demand:
Manufacturing Engineer
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:
Manufacturing Engineer
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:
Manufacturing Engineer
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:
Manufacturing Engineer
San Francisco Bay
Key Research Areas:
Development of Semi-
Autonomous Trucks
Key Talent Demand:
Automation Engineer
Source : DRAUP
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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
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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: The above analysis is based on the DRAUP’s Executive Module, updated in December, 2018.
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
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DETAILS Buying CentersLOCATIONTECHNOLOGY
HEADCOUNT
Note: Global Footprint data curated by DRAUP and updated in December, 2018. Technology Headcount includes research and product engineering talent
Peoria, Illinois Area,
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,
United States800 – 1000
• 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
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DETAILSLOCATIONTECHNOLOGY
HEADCOUNT
Note: Global Footprint data curated by DRAUP and updated in December, 2018. Technology Headcount includes research and product engineering talent
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,
United States300 – 400
• 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,
United States200 – 300
• 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.
Globalization Technology Footprint (2/5)
Source : DRAUP
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DETAILSLOCATIONTECHNOLOGY
HEADCOUNT
Note: Global Footprint data curated by DRAUP and updated in December, 2018. Technology Headcount includes research and product engineering talent
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,
United States100 – 200
• 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,
United States100 – 200
• 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.
Globalization Technology Footprint (3/5)
Source : DRAUP
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DETAILSLOCATIONTECHNOLOGY
HEADCOUNT
Note: Global Footprint data curated by DRAUP and updated in December, 2018. Technology Headcount includes research and product engineering talent
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
Area, United States80 – 100
• 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
Area, United States40 – 60
• 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.
Globalization Technology Footprint (4/5)
Source : DRAUP
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DETAILSLOCATIONTECHNOLOGY
HEADCOUNT
Note: Global Footprint data curated by DRAUP and updated in December, 2018. Technology Headcount includes research and product engineering talent
Indianapolis, Indiana
Area, United States40 – 60
• 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
Area, United States20 – 40
• 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.
Globalization Technology Footprint (5/5)
Buying Centers
Source : DRAUP
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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
Business & Financial Overview
Outsourcing Vendor Analysis
Globalization Footprint
Rolodex04
Recommendations05
01
02
03
Source : DRAUP
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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
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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
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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
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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.
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.
• 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
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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.
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
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.
Split of Workforce by Sub Segment
Key Delivery Locations
Chennai Area,
Bengaluru Area, India
IMS, 52% ADM, 24% CSI, 24%
HC: 250 – 300
HC: 250 – 300
Source : DRAUP
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25
Key Vendor Engagements Snapshot (2/5)
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.
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
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.
Split of Workforce by Sub Segment
Key Delivery Locations
Chennai Area,
Bengaluru Area, India
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.
Split of Workforce by Sub Segment
Key Delivery Locations
Chennai Area,
Bengaluru Area, India
ADM, 83% PES, 17%HC: 200 – 250
HC: 200 – 250
Source : DRAUP
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26
Key Vendor Engagements Snapshot (3/5)
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.
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
PES :
• Operation on 3600, 3500 and 3400 series of caterpillar engines.
• Assembly of all the engine parts through Vismockup.
PES, 100%
Split of Workforce by Sub Segment
Key Delivery Locations
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%
Split of Workforce by Sub Segment
Key Delivery Locations
Bengaluru Area, India
HC: 150 – 200
HC: 150 – 200
Source : DRAUP
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27
Key Vendor Engagements Snapshot (4/5)
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.
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
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%
Split of Workforce by Sub Segment
Key Delivery Locations
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.
Split of Workforce by Sub Segment
Key Delivery Locations
Peoria, Illinois Area,
Tucson, Arizona Area
IMS, 73% R&A, 27%HC: 150 – 200
HC: 100 – 150
Source : DRAUP
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Key Vendor Engagements Snapshot (5/5)
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.
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
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.
Split of Workforce by Sub Segment
Key Delivery Locations
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%
Split of Workforce by Sub Segment
Key Delivery Locations
Georgia Area, Illinois Area,
Chennai, Bengaluru,
Hyderabad
HC: 100 – 150
HC: 60 – 80
Source : DRAUP
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AGENDA
➢ Key Technology Stakeholders
❑ Key Technology stakeholders & Leadership
Account Profile
Business & Financial Overview
Outsourcing Vendor Analysis
Globalization Footprint
Rolodex04
Recommendations05
01
02
03
Source : DRAUP
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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
Note: The above analysis is based on the DRAUP’s Executive Module, updated in December, 2018.
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
Sreyas VidyasagarGeneral Manager
C. David CrouchDirector of Research and Development
Tom BluthChief Technology Officer and
Vice President of Innovation and Technology
Source : DRAUP
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31
Caterpillar Inc. – Procurement Leadership
Note: The above analysis is based on the DRAUP’s Executive Module, updated in December, 2018.
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
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
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AGENDA
➢ Key Opportunities
❑ Construction Industries Segment
❑ Energy & Transportation Segment
❑ Resource Industries Segment
❑ Financial products Segment
Account Profile
Business & Financial Overview
Outsourcing Vendor Analysis
Globalization Footprint
Rolodex04
Recommendations05
01
02
03
Source : DRAUP
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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
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Source : DRAUP
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35
Appendix
Source : DRAUP
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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
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Appendix: Inclusions and Definitions of “Sub – Service Segments”
Note - Above analysis is based on the DRAUP’s proprietary services module, updated in December, 2018.
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
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Appendix: Inclusions and Definitions of “Sub – Service Segments”
Note - Above analysis is based on the DRAUP’s proprietary services module, updated in December, 2018.
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
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Appendix: Inclusions and Definitions of “Sub – Service Segments”
Note - Above analysis is based on the DRAUP’s proprietary services module, updated in December, 2018.
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
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Appendix: Inclusions and Definitions of “Sub – Service Segments”
Note - Above analysis is based on the DRAUP’s proprietary services module, updated in December, 2018.
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