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CNH Industrial (CNHI) Ties Up With Tech Giants for Digital Revamp

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CNH Industrial (CNHI - Free Report) has entered into a five-year agreement to collaborate with Microsoft (MSFT - Free Report) and Accenture (ACN - Free Report) to help the company develop smart connected products and services and boost its digital technologies.

The latest alliance is an inherent part of CNH Industrial’s digital transformation drive, which is projected to help the company achieve significant revenue growth and assemble a digitally-empowered team in order to boost its sustainability.

The key element of the five-year alliance is the creation of a global network of digital hubs in Brazil, Europe, India and the United States by the three companies. In these hubs, the companies will work jointly to design, roll out and coordinate a set of data-driven services using advanced analytics, artificial intelligence and cloud computing aimed at making CNH Industrial’s products smarter, more reliable and sustainable.
 
Per the agricultural equipment manufacturer, the smart vehicles will provide new services and functionalities to customers in several areas, including computer-aided farming, predictive maintenance, enhanced fleet management and green mobility solution. The company also plans to develop data-driven digital services to help clients realize sustainability, like yield enhancement in agriculture and more productive vehicles and improved fleet management in the automotive industry.

By supplementing its traditional product-sales-based business model with new digital-driven services, CNH Industrial intends to drastically boost its top line and facilitate digital transformation.

Accenture, in collaboration with Avanade, its joint venture with Microsoft, will plan, manage and coordinate the activities within the digital factories and aid CNH Industrial in defining its digital hub operating model. The company will also supply technologies, assets and skilled resources to help CHN Industrial set up a digitally-enabled workforce worldwide. The primary focus will be speed, and rapid prototyping and delivery to quickly transform ideas into scalable products and solutions.

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.

This collaboration is another classic example of how companies team up in order to combine their strengths, using their experience to address the transformations that lie ahead and unlock new value for all stakeholders. During this economic crisis and critical time for the industrial vehicles sector, the latest partnership will enable CNH Industrial to have access to the most innovative technological platform and industry skills, facilitating its digital transformation over the next five years.

The creation of digital hubs is an integral part of CNH Industrial’s strategy that will shift the company from being a manufacturer of physical products to being able to supply new digitally-enabled and connected products and services. Moreover, the European tractor maker will benefit from the well-established relationship between Microsoft and Accenture as the two companies have been working closely together for more than two decades now, helping organizations overcome hindrances and revamp in their industries.

Recently, CNH Industrial announced the appointment of Scott W. Wine as the CEO, effective Jan 4, 2021. As an exceptional leader with considerable international experience across a variety of industries, Wine has an excellent history of delivering outstanding results, and currently serves as the chairman and CEO of Polaris Inc. (PII - Free Report) .

CNH Industrial carries a Zacks Rank of 3 (Hold), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
 
Notably, shares of the company have declined 1.1%, year to date, while the industry has rallied 20.3%.

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