Cognizant's Bluebolt Program Delivers More Than $150M in Estimated Annualized Cost Savings for Enterprises

Rhea-AI Summary

Cognizant's Bluebolt program has delivered over $150 million in estimated annualized cost savings for enterprises through more than 1,100 client implementations. The grassroots innovation program, launched a year ago, has seen more than 130,000 ideas submitted by associates, with over 23,000 ideas implemented. More than 220,000 associates are trained on Bluebolt, with 93,000 trained in design thinking.

Insights

Financial Analyst

The announcement of Cognizant's Bluebolt program generating in excess of $150 million in annualized cost savings for its enterprise clients hints at a strategic enhancement in the company's operational efficiency. These cost savings could potentially translate to improved profit margins or competitive pricing strategies, which may bolster Cognizant's market position. Given the scale of implementation, with over 23,000 ideas put into action, investors should monitor the program's future contributions to the firm's earnings before interest and taxes (EBIT).

It's also indicative of an actively engaged workforce and suggests a company culture that is conducive to continuous improvement. This can result in sustainable competitive advantages. Nonetheless, investors should be wary of extrapolating these early reported figures without considering the costs incurred to achieve these savings, such as training across the company's extensive employee base and the execution of numerous projects.

Innovation & Efficiency Expert

The training of over 220,000 Cognizant associates, including 93,000 in design thinking, is a significant investment in human capital. The scale of training suggests a strategic pivot towards fostering an innovative mindset across the firm. For stakeholders, the key interest lies in whether these innovations are one-off cost savings or if they signal a shift towards higher-margin offerings and services. It positions Cognizant as an organization that emphasizes continuous learning and improvement, which can be attractive to potential clients looking for partners with a proactive approach to problem-solving.

Additionally, it's impressive that junior-level employees are spearheading these innovations. This bottom-up approach can create a more dynamic and adaptable organization. The emphasis on design thinking indicates a customer-centric approach to innovation, which may lead to more impactful and relevant offerings. The long-term effects of such programs often hinge on the company's ability to maintain the momentum and integrate continuous innovation into its core business practices.

Cognizant associates have submitted more than 130K ideas via Bluebolt, a grassroots innovation program launched a year ago; more than 23K ideas have been implemented with clients

More than 220K associates are trained on Bluebolt, of which 93K are trained on design thinking

TEANECK, N.J., April 25, 2024 /PRNewswire/ -- Cognizant (Nasdaq: CTSH), a leading global technology company, has driven more than $150 million in estimated annualized cost savings across more than 1,100 client implementations via its Bluebolt grassroots innovation program, which launched a year ago in April 2023. Building on a decade of focus on innovation, Cognizant introduced Bluebolt to empower its global associates to devise and submit ideas – large and small – with the goal of advancing clients' success. In that time, Cognizant has seen a surge in participation from its associates worldwide, with more than 130,000 ideas submitted to date, more than 23,000 ideas implemented and more than 8,000 related projects in progress with clients.

Amidst the growing volume of proactive ideation, junior-level employees have emerged as the engine driving Bluebolt's innovations, with about 65 percent of ideas implemented with clients coming from those associates. Overall, 220,000 Cognizant associates have been trained on Bluebolt, of which 93,000 have been trained on design thinking specifically.

To date, across industries, Cognizant clients in the Manufacturing/Logistics/Energy/Utilities, Insurance, and Banking and Financial Services sectors have implemented the most Bluebolt ideas. Last year, Cognizant augmented the Bluebolt program with "Bluebolt Garage," a program that capitalizes on the company's bench capacity and entry-level talent to rapidly convert ideas to prototypes or Minimum Viable Products (MVPs) for clients. The Garage is equipped with tools and accelerators for rapid development. The Garage also provides the opportunity for employees who are transitioning between projects to stay actively engaged and to build new skills while developing MVPs. 

Cognizant's Bluebolt program aims to keep clients on the cutting edge of business transformation proactively through ideation and collaboration – a growing need as they grapple with harnessing emerging technologies like Generative Artificial Intelligence (Gen AI) to drive new value. Recent research has shown that more than half (66 percent) of executives are ambivalent or dissatisfied with their company's progress on AI and Gen AI. Yet the business opportunity remains significant – a study by Cognizant and Oxford Economics found that Gen AI could inject up to $1 trillion into the U.S. economy by 2032.

"The true impact of innovation comes from how we maximize its value in the long term," said Alexis Samuel, SVP and Head of Global Delivery Excellence at Cognizant. "Our associates help to keep some of the world's most critical enterprise systems up and running, and their ingenuity and commitment to continuous improvement through Bluebolt has delivered thousands of ideas that have created top and bottom line value for our clients. The progress we've made with Bluebolt in the past year has also energized the innovative spirit of our associates through our comprehensive reward and recognition programs."

Bluebolt ideas span use cases such as applying AI and machine learning algorithms to data management, real-time monitoring solutions to drive operational efficiencies, and intuitive solutions that reduce outages and downtime. For example a large energy company in the U.S. experienced challenges managing an aging electricity network while integrating renewable energy resources. Challenges included data surges, reliability constraints due to reduced efficiency of field personnel, and weather-related outages. A Bluebolt team created an intuitive solution that provided statistical indices from sources such as historical data exceptions, real time communication errors, and standard operating procedures. As a result, the solution optimized field activities with real-time information aiding in decision-making that improved customer satisfaction. The company experienced a 10% reduction in program operations costs and significant improvements in billing accuracy. 

Cognizant continues to invest in technologies and resources that will speed the ideation and collaboration that are essential to powering innovation for its clients. Recently, the company announced the integration of a Gen AI-powered innovation assistant in collaboration with Microsoft that supercharges how Cognizant's employees innovate, develop client-facing solutions, and solve problems through Bluebolt. Cognizant also hosts regular Bluebolt hackathons and ideathons that involve both associates and clients, and recently launched innovation days to continue to advance idea generation and implementation in collaboration with clients.

About Cognizant
Cognizant (Nasdaq: CTSH) engineers modern businesses. We help our clients modernize technology, reimagine processes and transform experiences so they can stay ahead in our fast-changing world. Together, we're improving everyday life. See how at www.cognizant.com or @cognizant.

For more information, contact:

U.S. Name Gabrielle Gugliocciello Email gabrielle.gugliocciello@cognizant.com

Europe / APAC Name Christina Schneider Email christina.schneider@cognizant.com

India Name Rashmi Vasisht Email rashmi.vasisht@cognizant.com

 

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SOURCE Cognizant

FAQ

How much estimated annualized cost savings has Cognizant's Bluebolt program delivered for enterprises?

Cognizant's Bluebolt program has delivered over $150 million in estimated annualized cost savings for enterprises.

When was Bluebolt program launched by Cognizant?

Bluebolt program was launched by Cognizant a year ago in April 2023.

How many ideas have been submitted through Bluebolt program?

More than 130,000 ideas have been submitted through the Bluebolt program.

How many ideas have been implemented from the submissions?

Over 23,000 ideas have been implemented from the submissions.

How many associates are trained on Bluebolt?

More than 220,000 associates are trained on Bluebolt.

How many associates are trained in design thinking?

93,000 associates are trained in design thinking.