Digital transformation creates opportunity for growth
According to technology (QQQ) firm Cognizant (CTSH), digital transformation is a key driver for demand and creates new areas of growth through innovation and differentiation. Customers around the world want solutions that will enable them to maintain market share and penetration in case of any digital disruption. SearchCIO states, “Digital disruption is the change that occurs when new digital technologies and business models affect the value proposition of existing goods and services.”
The CEO of Cognizant, Francisco D’Souza, stated, “We continue to invest in three strategic areas based on the conviction that true digital transformation requires businesses to make fundamental changes throughout their organizations, from the front office through the middle office and to the back office systems.”
One of the company’s strategic initiatives is to build front-end capabilities for clients aided by digital transformation. This is expected to create personalized experiences to various stakeholders including customers, suppliers, and employees. According to D’Souza, Cognizant’s digital capabilities have been recognized by clients, and the firm continues to be a major player by investing in innovation as well as through acquisitions.
Cognizant announced acquisition of Idea Couture
In August 2016, Cognizant announced the acquisition of Idea Couture. The company will be integrated into Cognizant’s Digital Works business. According to Cognizant, this business segment “brings together” strategy, technology, industry expertise, and design coupled with human insight to create innovative products and solutions for enterprises that enable the success of clients in today’s digital world.
Idea Couture is a digital innovation firm offering solutions to a number of companies including Samsung (SSNLF), Pepsi (PEP), and ConAgra (CAG). Cognizant has acquired five other companies including Cadient, KBACE, itaas, ReD Associates, and Odecee to expand its reach in the digital transformation space. Cognizant has spent over $200 million on these acquisitions.