A Transformational Roadmap for the Heavy Equipment Industry

• Cognizant 20-20 Insights

Feet on the Ground, Eyes on the Horizon: A Transformational Roadmap for the Heavy Equipment Industry To stay relevant and overcome growth impediments in the dynamic global economy, industrial companies must focus on five business imperatives: operational excellence, lean technologies, supply chain visibility, customer centricity and performance analytics.

Executive Summary • Underpinning these macro changes is the impact of new technologies that have trans- The heavy equipment market is undergoing formed business. The Internet of Things (IoT) dynamic change. We classify these forces into has introduced numerous opportunities for three major areas: companies to change their business models • From an industry perspective, companies and digitize their value chains, distorting face demand uncertainty, fluctuations boundaries between the digital and physical in commodity prices and a lack of clarity worlds. Smart, interconnected systems now in government policies and global trade seamlessly support activities along the entire agreements. With strong growth projected for industrial value chain. This translates into emerging economies, there is a need to build reduced costs, improved efficiencies, greater robust supply chain networks. As global compe- speed and scale, and smarter products and tition increases, many companies are exploring services. opportunities to reduce costs and stay relevant. This white paper presents a plethora of opportu- From a customer perspective, the pressure is • nities for companies to re-examine their existing on to innovate and develop products quickly to business processes and tackle these challenges meet market-specific needs. head-on. Wherever your organization is on its • From a digital perspective, new approaches to transformation journey, this white paper offers doing business are changing the way customers five thematic starting points: buy products and consume services. With the Operational excellence: Through best-in-class rise of social media, commercial customers can • supply chain and operations, companies can now access unprecedented information about mitigate operational risks and reduce costs, products and the competitive landscape, as thereby creating sustainable, competitive well as learn from users’ past experience with advantage. specific equipment, before making a purchase decision.

cognizant 20-20 insights | december 2015 • Lean technology landscape: Having a lean ties for equipment sales.10 New technologies are technology landscape from an IT perspective driving demand for equipment replacement, as can increase employee productivity, improve the enhanced efficiency often increases the eco- business processes and reduce costs. nomic feasibility of more frequent replacement of equipment.11 • Global supply chain visibility: With better visibility, companies can track sales, products We believe the following imperatives are needed and components up to the final destination for heavy equipment companies to successfully through availability of real-time data. respond to these market forces. • Customer-centric innovation: This will be • Focus on growth through emerging markets: driven through implementation of systems With countries such as China and India that enrich the customer experience through exhibiting steady economic growth, industrial customer process-driven innovation. equipment makers need to provide customized • Performance and analytics: A strong analytics solutions to smaller farmers and provide them backbone can help companies identify oppor- with attractive finance schemes to increase tunities to not only strengthen their decision- equipment affordability. making capabilities but also improve partner • Build a world-class distribution network: and supplier performance effectiveness. To enter emerging markets, it is essential The Heavy Equipment Marketplace for companies to understand their supply chains and build a strong distribution network, The heavy equipment market comprises three customized to specific regions. Measures must industries: agricultural machinery (sized at about also be in place to mitigate risk and ensure 1 $126 billion in 2013 ), construction equipment order fulfillment capabilities across locations. (valued at $138.5 billion in 20122) and mining equipment (valued at $71 billion in 20123). • Sell smart products and services: Customers want to optimize their resources and maximize Global demand for agricultural equipment is their returns. Therefore, companies need forecast to expand 6.9% annually through 2018, to offer solutions that remotely monitor to $208 billion.4 The Asia/Pacific region, which equipment performance and usage patterns, accounted for almost half (46%) of agricultural as well as generate reports that will provide equipment demand worldwide in 2013,5 accord- customers with real-time visibility into their ing to the latest figures available, represents the daily activities and assist them in running their largest and fastest growing regional market.6 In business more efficiently. more developed markets, such as the U.S. and • Develop a 360-degree customer perspec- Western Europe, growth in agricultural equipment tive: Companies must understand customers demand will be driven by efforts to reduce inputs holistically by gathering local data, ensuring and maximize production capabilities through the and sustaining customer engagement through use of increasingly advanced high-value precision quality content and addressing their issues farming technologies, such as global positioning immediately by putting early-warning systems 7 systems and yield monitors. in place. This will boost customer confidence and the company’s reputation. Forces Impacting the Industry Industry advances are being propelled by the Competitive View growth of developing economies, government The global market is dominated by large multina- support, access to capital and increasing mech- tional players, such as Caterpillar, CNH, Deere & anization of farming operations in developing Co., Komatsu, AGCO, Kubota, etc. These players countries, with particularly sizable gains antici- have large, diversified business portfolios, sell- 8 pated in China, India and Brazil. ing products and services in construction and agriculture. Business diversification helps these Ongoing economic expansion, population growth companies mitigate market risk and ensure and rising per capita calorie intake in these and they are not overly dependent on one specific other developing nations is boosting demand industry. All these companies have a global focus, for food.9 This will not only place greater pres- and some sell their equipment under different sure on agricultural sectors to boost efficiency brand names and with a specific regional and and productivity, but it will also increase farm product focus. incomes, thus creating additional opportuni-

cognizant 20-20 insights 2 To understand how the market performed, we • Asset turnover ratio: All companies studied analyzed the key efficiency ratios for the past have generated less revenue per dollar of 10 years of multinational players such as John asset, with the ratio deteriorating between Deere, Komatsu, CNH, AGCO and Caterpillar. Our 2011 and 2014. This signifies excess production observation is that the industry growth has tilted and poor inventory management. Stagnating to the negative side of the ledger;12 in fact growth sales growth over the past few years has also has been significantly lower for companies with negatively impacted these ratios. For example, mining exposure such as CAT.13 Competition has CAT has seen a 20% reduction in asset turnover also impacted profit margins, while revenues since 2005.17 remained flat for 2013-2014.14 From our below analysis, we have observed trends in certain These trends could be primarily attributed to areas, indicating opportunities for improved oper- deceleration in the U.S. and EU markets, and a ations and efficiencies. slow shift of focus from mature markets to emerging markets. They also highlight the need for • Cash conversion cycle: This has exponen- effective distribution networks that can aggres- tially increased for multiple companies over sively enter new markets, increase customer the years, indicating that cash is tied up in focus and provide customized solutions that add the business, impacting the bottom line. For value to client relationships. Inventory levels example, Deere’s cash conversion ratio has have also built up over the years, indicating the 15 risen about 2,000% since 2005. potential to improve supply chain management. • Days in inventory: An increase in days in inventory indicates a company is taking more Measuring Digital Footprints time to convert its finished goods into sales. The rise of technology platforms has put man- For example, Komatsu’s days in inventory has ufacturers in the driver’s seat. Companies are risen by almost 60% since 2004.16 improving their ability to develop their own technology platforms that offer real-time information

Correlating Business Mandates with Needs # IMPERATIVES CAPABILITIES 2

Industry view • Focus on cost reduction and maintaining competi- Operational excellence tiveness. Achieve operational excellence • Accelerated emphasis on global growth through through best-in-class supply emerging markets. chain and operations. • Focus on exceptional quality and innovative products to capture market share. Lean technology landscape • Utilize innovative ways of working to gain better Make the existing technology business and customer insights. landscape lean and mean. Digital technology view Global supply chain visibility • Digitization of value chain through IoT, thereby Build global visibility capabili- transforming operations processes. ties to stay on top of opera- • Smarter connected products — telematics and tions. remote diagnostics. • Rise of technology platforms, mobile devices and Customer-centric innovation social media offering real-time information to Use innovation to improve customers. customer touchpoints. Customer view Performance and analytics • Shift in customer need from products and services Build a strong analytics to outcomes. backbone designed for the • Need for customized online content to manage future. sentiment and enrich user experience. • Need for intelligent products that reduce TCO and provide quick ROI.

Figure 1

cognizant 20-20 insights 3 about farms, machines, equipment health moni- • Deeper contextual understanding of toring, fleet management and area harvested. customers helps capture greater revenue and Platforms such as MyJohnDeere18 provide the improves operational effectiveness. Managing blueprint for how companies will forge new value big data will help businesses gain insights. chains on the fly to build, connect and deliver • Seamless integration of digital and physical applications specific to industry problems. supply chains can deliver comprehensive With Internet access exploding exponentially, par- solutions for customers. ticularly across undeveloped markets, and with • Cross-industry collaboration and integrated the rise of mobile devices, businesses are now partners in the supply chain will help advance shifting their focus to creating online marketing business process improvement and decision- content. Relative to cloud-based transformation, making. companies are either creating their own ecosys- • Smart products and the IoT can be leveraged tem (e.g., AGCO’s Open Approach, which is built for performance monitoring across the value on the company’s Fuse™ technology platform19 ) chain to improve customer relationships and or partnering with companies on public platforms conduct remote diagnostics or aftermarket (e.g., CNH as an active member of Open Ag Data services. Alliance20) to share cross-industry information and improve business processes. Capabilities Surfaced by an Effective Transformation Roadmap With increased use of social media, industrial equipment companies need to find the right Based on the aforementioned trends, it is clear balance of managing reach and content; online that the industry needs to increase its focus on reputation is key, as sentiments in different growth and efficiency imperatives. Figure 1 (pre- channels play an important top-line role. On the vious page) highlights five capabilities that are mobile front, only a few customers use mobile essential to streamlining operations, reducing apps for agriculture management. This indi- costs, understanding customer needs, driving cates that companies lack a modern strategy for sales growth and sustaining leadership. understanding customers and their product pref- Capability #1: Operational Excellence erences and need to encourage more use of the mobile platform. This is a key capability that industrial equipment players must adopt to execute their business Key Takeaways strategy with consistency and reliability. Through Given the industry’s historical performance, there best-in-class supply chain and operational strat- are many lessons to learn from companies in egies, companies can mitigate risk and reduce other industries. costs, thereby creating a sustainable competitive advantage. Figure 2 reveals how organizations can achieve operational excellence.

Attaining Operational Excellence (continued on next page)

Transformation Approach How It Works Example

Helps standardize supplier In March 2015, AGCO was risk assessments and contract awarded for actualizating management processes; enables innovation in e-procurement creation of a single online by rolling out a global repository for vendor and supplier procurement transformation due diligence and contracts. effort in its materials and Procurement risk management supplier management function. The company enabled global commodity managers and buyers to pool their experiences and activities to make decisions based on greater visibility into supplier performance, as well as identify and assess economic, geopolitical and other risks.21

Figure 2

cognizant 20-20 insights 4 Attaining Operational Excellence (continued)

Transformation Approach How It Works Example

Provides a one-stop solution for Caterpillar wants its dealers all sales incentive management to move more customers into tracking by enabling incentive equipment management solutions. planning, execution (e.g., marketing By installing cameras, sensors and campaigns, promotions) and satellite-based positioning control collaboration. and guidance systems on its Dealer sales incentive machines, Caterpillar believes its management dealers can use this information to increase parts and service sales, and help customers manage their fleets more efficiently.22

Accurately estimates order Example: Texas-based fulfillment across locations and Commercial Metals Company enables companies to ”make (CMC) implemented GATP anywhere” and “sell anywhere.” in its U.S. and international operations, eliminating duplicate work in its fabrication shops Global availability to promise when it comes to logistics and (GATP) inventory management. GATP allowed the company to allocate inventory among different customers, protect inventory for priority customers and react to unforeseen changes in demand.23

Figure 2

Capability #2: Lean Technology Landscape Having a lean technology landscape from an IT perspective can increase employee productivity, improve business processes and reduce costs. Figure 3 offers ideas on how to implement lean.

Implementing Lean

Transformation Approach How It Works Example

Provides an app store-based We have implemented an approach to delivering employee enterprise-wide app store services; on-demand data (One Cognizant) approach that provisioning can be made easily allows employees to access available at the click of a button. multiple apps and other related content from one location to App store perform their jobs better; the store’s social design encourages collaboration and sharing with others performing the same task.

Digitizes back-office processes Volvo in the Netherlands (finance, HR, admin) through has implemented e-invoicing electronic workflow management solutions to digitize workflows, and approvals, digital signatures improve financial reporting and and on-demand reports, reducing increase the speed of reporting, use of paper and boosting efficiency thereby supporting faster Paperless back office and productivity. decision-making.24

Figure 3

cognizant 20-20 insights 5 Figure 4

Capability #3: Global Supply Chain Visibility ponents through the final destination. Figure 4 As supply-demand networks become increasingly details ways for industrial equipment companies complex and data is available in real time, global to move quickly and mitigate risk, thereby allow- supply chain visibility will allow companies to ing them to stay on top of operations. more effectively track sales, products and com-

Enabling Supply Chain Visibility

Transformation Approach How It Works Example

Provides last-mile retail point-of- Craftworks has implemented sale visibility for original equipment software that allows managers and parts. and staff to easily navigate POS data and inventory at-a-glance. The company is now able to gather business intelligence on Retail POS visibility new and existing locations and compare theoretical vs. actual costs and their impact on the bottom line.25

Provides a “control tower,” or a CNH has implemented central hub within the supply chain, transportation management that collects real-time data and software that has enhanced provides visibility into supply chain the efficiency of inbound activities to improve organizational and outbound transportation, decision-making. This functionality optimized processes and enabled Global order and inventory can provide near-real-time global complete visibility into the visibility visibility of dealer orders and supply chain through analytics supply chain inventory, as well that help the company monitor as predictive alerts that identify and track supply chain metrics supply and demand bottlenecks and identify issues.26 based on available-to-promise (ATP) capabilities.

Provides global visibility of John Deere’s consumer and inventory stock across the network, construction equipment division as well as suggestions on order has successfully implemented fulfillment for pending customer inventory management software orders. to improve distribution network responsiveness, reduce order Dealer inventory visibility lead times and increase network efficiency through warehouse consolidation, inventory reduction and cost reduction.27

Figure 4

cognizant 20-20 insights 6 Capability #4: Customer-Centric Innovation systems that support customer-centric innova- To add value to customer relationships, it is essen- tion. Figure 5 suggests key transformational tial to understand customer needs and implement ideas in this space.

Focusing on the Customer

Transformation Approach How It Works Example

Enriches customer experience AGCO and Mutual Mobile have through digital storefronts and formed a strategic relationship virtual showrooms. Moreover, to improve the user experience28 interactive services can enrich and help consumers find the product content on the Web. right product through mobile devices and Web interfaces.29 Digital channel management

Collects vast amounts of employee John Deere collects and and customer interaction data processes massive amounts (consumption habits, preferences, of farm data and leverages etc.) and provides targeted solutions this data into the FarmSightTM based on big data analytics. platform to remotely monitor machines and ensure preventive Big data service personalization maintenance, optimize fuel consumption and output performance, and deliver agronomic information to farmers for better decision- making.30

Analyzes customer sentiment to Among the key initiatives understand attitudes, opinions of Caterpillar’s social media and trends, and identifies primary strategy is a social listening influencers within specific social platform (managed by its networks to manage online information analytics group) reputation. that provides the business with Social media analytics insights into customer sentiment about industry trends, the company and its competitors. This data is also used to develop a 360-degree view of customers.31

Enables remote monitoring John Deere and AGCO are of equipment usage patterns, beginning to connect not conditions and breakdowns through only farm equipment but also a centralized dashboard. irrigation systems and soil and nutrient sources with information on weather, crop Connected products prices and commodity futures to optimize overall farm performance.32

Figure 5

Capability #5: Performance and Analytics making but also increase partner and supplier By developing a strong analytics backbone, performance effectiveness. See Figure 6 (next industrial equipment companies can identify page) for ideas on how to develop this capability. opportunities to not only improve their decision-

Figure 6 cognizant 20-20 insights 7 Enabling Analytics

Transformation Approach How It Works Example

Helps collect sourcing and AGCO successfully implemented procurement data from multiple a solution to connect and systems and apply sourcing, spend, transact business more supplier performance and indirect efficiently and effectively with its spend analytics. customers. AGCO has achieved greater visibility into and control Spend analytics over its spend, which has fueled more favorable contracts and pricing terms.33

Transformation Approach How It Works Example

Provides real-time visibility into Mercedes-AMG piloted a critical business processes through real-time quality assurance push-based dashboards and platform that harnesses alerts powered by an event-driven predictive analytics to optimize architecture. engine-testing processes when manufacturing its vehicles.34 Business activity monitoring The ability to correlate historical test data with sensor data in real time enables engineers to identify problems more quickly.35

Performs activities such as To address the aging and surveying fields, capturing images, declining population of Japan, identifying and classifying infected Komatsu wants to revamp the regions, estimating pesticide industry segments it serves quantity and optimizing pesticide with a robotics revolution. It usage. One such autonomous robot aims to automate tractors and Robotics is eAGROBOT. other equipment by 2020 and to implement over 20 robotic processes in multiple industries, including food processing.36

Figure 6 The Way Forward tudes and trends, and help them develop holistic view of customers, thereby speeding innovation. Heavy equipment suppliers have many opportu- Analytics capabilities will further improve orga- nities to transform their business, especially in nizational effectiveness and support faster the areas of inventory management, asset man- decision-making. And finally, all these areas of the agement and customer insights. By adopting new business can learn from one another by examin- capabilities in operational excellence, lean tech- ing best practices in the industry. nology and global supply chain visibility, these companies can boost process efficiency, improve Studying the five key capabilities outlined in this product delivery, reduce costs and mitigate risk. paper will enable industrial equipment companies to support global expansion, create a customer- Establishing new approaches to customer cen- centric focus and prepare for unfavorable and tricity, meanwhile, will enable these companies to uncertain market situations, thereby ensuring gain insight into customer buying behavior, atti- business relevance and continued viability.

Footnotes 1 Global Agricultural Machinery Industry, http://en.wikipedia.org/wiki/Agricultural_machinery_industry. 2 “Construction Equipment Market Analysis by Product And Segment Forecasts to 2020,” Grand View Research, September 2015, http://www.grandviewresearch.com/industry-analysis/construction- equipment-market-analysis. 3 “Mining Equipment Market Will Reach USD 117.0 Billion by 2018: Transparency Market Research,” PR Newswire, Oct. 22, 2014, http://www.prnewswire.com/news-releases/mining-equipment-market-will- reach-usd-1170-billion-by-2018-transparency-market-research-280051182.html.

cognizant 20-20 insights 8 4 “Global Demand for Agricultural Equipment to Reach $208 Billion,” Farm Equipment, Aug. 5, 2014,http:// www.farm-equipment.com/articles/10687-global-demand-for-agricultural-equipment-to-reach-208-billion. 5 “World Agricultural Equipment Market,” PR Newsire, Nov. 26, 2014, http://www.prnewswire.com/news- releases/world-agricultural-equipment-market-300001970.html. 6 Ibid. 7 Ibid. 8 “Global Demand for Agricultural Equipment to Reach $208 Billion,” Farm Equipment, Aug. 5, 2014, http://www.farm-equipment.com/articles/10687-global-demand-for-agricultural-equipment-to- reach-208-billion. 9 Ibid. 10 Ibid. 11 “World Agricultural Equipment Market,” PR Newswire, Nov. 26, 2014, http://www.prnewswire.com/news- releases/world-agricultural-equipment-market-300001970.html. 12 Cognizant analysis of key financial ratios based on data from “Morningstar” for companies such as Deere, CNH, CAT, Komatsu, AGCO. 13 Ibid. 14 Ibid. 15 Key ratio analysis for Deere & Co., Morningstar, http://financials.morningstar.com/ratios/r.html?t=DE. 16 Key ratio analysis for Komatsu Ltd., Morningstar, http://financials.morningstar.com/ratios/r.html?t=KMTUY. 17 Key ratio analysis for Caterpillar, Inc., Morningstar, http://financials.morningstar.com/ratios/r.html?t=CAT. 18 “John Deere Opens the MyJohnDeere Platform to Collaborating Software Developers and Companies,” John Deere, Nov. 14, 2013, https://www.deere.com/en_US/corporate/our_company/news_and_media/ press_releases/2013/corporate/2013nov14_corporaterelease.page. 19 “Taking an Open Approach Leads to New Partnerships,” AGCO, April 10, 2014, http://www.agcotechnolo- gies.com/news/article/taking-an-open-approach-leads-to-new-partnerships/. 20 Open Ag Data Alliance website, http://openag.io/about-us/. 21 “AGCO and riskmethods Win BME Award for Electronic Procurement,” Spend Matters, March 30, 2015, https://spendmatters.com/2015/03/30/agco-and-riskmethods-wins-bme-award-for-electronic-procurement/. 22 James B. Kelleher, “Caterpillar: Our Dealers Are Missing Up To $18 Billion In Easy Sales,” Business Insider, March 20, 2014, http://www.businessinsider.com/r-insight-from-dumb-iron-to-big-data-caterpillars-dealer-sales-push-2014-20?IR=T. 23 Todd Morrison, “Manufacturer Consolidates Supply Chain Silos with SAP GATP,” TechTarget, Aug. 26, 2011, http://searchsap.techtarget.com/news/2240069639/Manufacturer-consolidates-supply-chain-silos- with-SAP-GATP. 24 “Volvo Cars Netherlands Uses Anachron Corporate E-Invoicing Platform to Digitize Workflows and Improve Financial Reporting,” Anachron, Dec. 18, 2014, http://www.anachron.com/volvo-cars-netherlands- uses-anachron-corporate-e-invoicing-platform-digitize-workflows-improve-financial-reporting-2/. 25 “Craftworks Restaurants: Success Story,” Ctuit, Sept. 4, 2012, http://www.ctuit.com/2012/09/04/ success-story-craftworks-restaurants/. 26 Ethan Burton, “CNH Cuts Transportation & Logistics Overhead,” Oracle Supply Chain Management blog, March 4, 2015, https://blogs.oracle.com/scm/entry/vce_cnh_cuts_transportation_logistics. 27 “A Supply Chain Overhaul That Delivers It All to Deere & Co.,” Supply Chain Brain, http://www. supplychainbrain.com/content/research-analysis/supply-chain-innovation-awards/single-article-page/ article/a-supply-chain-overhaul-that-delivers-it-all-to-deere-co-1/.

cognizant 20-20 insights 9 28 “AGCO and Mutual Mobile Lead Next Generation of Connected Agriculture,” Mutual Mobile, Dec. 9, 2014, http://www.mutualmobile.com/press-releases/agco-mutual-mobile-lead-next-generation-connected- agriculture. 29 “Online Car Shopping Takes a New Turn,” AutoTrader, http://www.mutualmobile.com/work/autotrader. 30 “John Deere Is Revolutionizing Farming With Big Data,” Datafloq, https://datafloq.com/read/ john-deere-revolutionizing-farming-big-data/511. 31 Paul Dunay, “What Does Social Shake-up Mean to Caterpillar?” Social Media Today, June 4, 2013, http:// www.socialmediatoday.com/content/what-does-social-shake-mean-caterpillar. 32 Michael E. Porter and James E. Heppelmann: “How Smart, Connected Products Are Transforming Competition,” Harvard Business Review, November 2014, https://hbr.org/2014/11/ how-smart-connected-products-are-transforming-competition. 33 “SHI and AGCO Collaborate to Win,” Business Wire, April 2, 2013, http://www.businesswire.com/news/ home/20130402005288/en/SHI-AGCO-Collaborate-Win#.VSueZdzoRZ5. 34 Stephanie Overby, “Mercedes-AMG: A Showcase for Real-Time Business Decisions,” Forbes Insights, August 2014, http://www.sap.com/bin/sapcom/pt_pt/downloadasset.2014-10-oct-17-19.mercedes-amg-a- showcase-for-real-time-business-decisions-pdf.html. 35 Ibid. 36 Andrew Dewit, “Komatsu, Smart Construction, Creative Destruction, and Japan’s Robot Revolution,” The Asia-Pacific Journal, Feb. 2, 2015, http://japanfocus.org/-Andrew-DeWit/4266.

cognizant 20-20 insights 10 About the Authors Ganesh Iyer is a Senior Manager within Cognizant Business Consulting’s Manufacturing and Logistics Consulting Practice. His primary areas of expertise include supply chain management and business process harmonization. He can be reached at [email protected].

Arun Krishnan is a Director in Cognizant Business Consulting, where he leads the consulting practice for discrete manufacturing industries. He has over 20 years of experience across industry and consulting. He can be reached at [email protected].

Suraj Subramoniam is a Senior Consultant within Cognizant Business Consulting’s Manufacturing and Logistics Practice. His area of expertise is in operations and project management across the manufacturing space, spanning value chain optimization through strategy development. He can be reached at [email protected].

About Cognizant’s Manufacturing and Logistics Cognizant’s Manufacturing and Logistics business unit operates as a trusted partner to global manufacturing lead- ers, helping them accelerate business performance in the digital world. The unit is recognized for its forward-looking approach by industry gurus, such as IDC MarketScape, which bestowed on it a “Leader” rating for service lifecycle management. Our business consulting professionals ensure that manufacturing and logistics clients receive exceptional business results from their technology investments and sourcing programs. Our domain solutions leverage digital technologies to build smart products, connect with digital consumers, provide real-time visibility into manufacturing operations, and automate knowledge work with cognitive computing. Learn more at www.cognizant.com/ manufacturing.

About Cognizant Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process out- sourcing services, dedicated to helping the world’s leading companies build stronger businesses. Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry and business process expertise, and a global, collaborative workforce that embodies the future of work. With over 100 development and delivery centers worldwide and approximately 219,300 employees as of September 30, 2015, Cognizant is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing and fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant.

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