1 BUSINESS OVERVIEWAND STRATEGIES Strategy and objectives
use (as opposed to ownership) of property, the rise of service business models, the sharing economy and cybersecurity. Sopra Steria offers its clients a comprehensive solution for the implementation of new business models, support for strategic plans and digital transformation to put in place a platform-based approach, seen as essential to open the business and its information system to new partnerships and services across an extended value chain.
to innovate to meet consumer demand for immediate and flexible services. Sopra Steria assists retailers with their digital transformation and has developed knowledge and experience in multi-channel commerce, optimisation of logistics chains and understanding client needs. In this way, the business processes and information systems of these companies become a lever for performance. Research and Development 4.3. in Solutions The Group has continued its R&D efforts, investing €130.5 million in 2020 (versus €109.3 million in 2019) in developing and expanding its business solutions. These are gross amounts and do not take into account funding related to the French R&D tax credit (CIR).
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Retailers face a challenging business environment as well as profound and continual changes in the shopping habits of customers, who increasingly use digital technology. To remain competitive, transformation is essential. The aim is to secure and better manage retail business practices while offering a real ability
Strategy and objectives 5.
Corporate plan reaffirmed 5.1. despite the Covid-19 crisis
$# !*( $# Within this context, while at the operational level the Group may need to temporarily limit growth in its resources and redistribute them according to how the situation develops in different business sectors, on a strategic level, the Group has reaffirmed its corporate plan, is continuing with its transformation, and is ready to adopt an aggressive acquisition policy. Strong and original positioning 5.2. in Europe Sopra Steria’s ambition is to be a European leader in digital transformation. Its high value-added solutions, delivered by applying an end-to-end approach to transformation, enable its clients to make the best use of digital technology to innovate, transform their models (business as well as operating models), and optimise their performance. The Group’s aim is to be the benchmark partner for large public authorities, financial and industrial operators and strategic companies in the main countries in which it operates. To achieve this aim, Sopra Steria continues to strengthen its key competitive advantages: business software solutions which, when combined with the p Group’s full range of services, make its offering unique; a position among the leaders in the financial services vertical (core p banking and specialist lenders) bolstered by the success of the Sopra Banking Software solutions; very close relationships with its clients, thanks to its roots in the p regions where it operates and its ability to meet core business requirements without taking the prescriptive approach favoured by certain global providers; a strong European footprint with numerous locations in many of p the region’s countries which, when combined with these close relationships, raises its profile among large public authorities and strategic companies throughout Europe as a trusted and preferred partner for all projects involving digital sovereignty.
The Covid-19 crisis and its economic consequences have prompted the Group to think about the new outlook for its market and reassess the relevance of its corporate plan for the years ahead. " ' ) $*)!$$ Although it has inevitably curbed IT investment in the short to medium term in the hardest hit sectors (tourism/hotels/restaurants, events, transportation and the aeronautics industry, in particular), the crisis has highlighted the extent to which digital technology helps to make companies and public authorities resilient, ensuring that their processes continue to operate, maintaining their ability to interact with their entire ecosystem (particularly for the selling and provision of remote services) and improving their operating performance. The health, organisational and economic effects of the crisis are tending to push many companies and public authorities – apart from in the most severely affected sectors – to step up their digital transformation by focusing in the short to medium term on the projects that are most important to ensuring their resilience, in particular migrating IT systems to the cloud and digitisation/automation of processes. However, the need to keep their budgets balanced could prompt some, for the duration of the crisis, to postpone certain projects based on breakthrough innovation and reduce the cost of running their processes and legacy systems to the bare minimum. Furthermore, all company stakeholders are continuing to raise their expectations in terms of corporate social responsibility, a trend that has been amplified by the Covid-19 crisis, primarily on a social level but also with respect to the environment. Lastly, the difficulties encountered by a certain number of specialist and/or medium-size operators in coping with the crisis are likely to result in acceleration in the consolidation process, which could “reshuffle the cards” among digital services companies and software developers.