CMA CGM GROUP: NAVIGATING DIGITAL TRANSFORMATION OF
GLOBAL SHIPPING CASE STUDY SOLUTION
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SYNOPSIS
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Sa
Rodolphe Saadé was the chief executive of the CMA CGM Group (hereafter CMA CGM), a giant in the
maritime industry; an industry long criticized by customers for its long lag in digitalization. Realizing the
importance of digitalization, Saadé defined digitization as a key strategic priority for CMA CGM’s development.
n
This case traces CMA CGM’s digital transformation process and discusses how Saadé and CMA CGM
tio
successfully addressed different challenges to gradually launch a series of digital innovations to the
company’s processes, products, services, and business model. However, as new digital technologies
continued to evolve and present new challenges, how could CMA CGM leverage the rapid development of
lu
artificial intelligence (AI) in the shipping industry? How could CMA CGM make full use of big data to
optimize business operation decisions?
So
OBJECTIVES
• evaluate the internal and external factors driving digital transformation;
• analyze the evolutionary process, challenges, and solutions in the different stages of digital transformation;
• design different strategies and tactics of digital transformation; and
• explore options for enterprises to develop digital intelligence and digital capabilities.
The Case Solution Starts From page 6
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ASSIGNMENT QUESTIONS
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1. What were the factors that led CMA CGM to initiate its digital transformation?
tio
2. What stages did CMA CGM go through in its digital transformation? What challenges necessitated this
transformation?
3. What strategies did CMA CGM adopt to overcome the challenges in the digital transformation process?
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What tactics did CMA CGM use in each stage of digital transformation?
4. If you were Saadé, how would you address the current challenges and keep pushing CMA CGM’s
So
digital transformation forward?
The Case Solution Starts From page 6
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pl
m
Sa
n
tio
4. If you were Saadé, how would you address the current challenges and keep pushing CMA
CGM’s digital transformation forward?
lu
So
• Accumulating tacit knowledge: Through the process of digital transformation, CMA CGM
accumulated a significant amount of organizational learning experience. This knowledge became tacit,
serving as valuable resource for the company’s future endeavours in smart shipping.
• Building dynamic capabilities: By actively seeking out new digital opportunities in a rapidly changing
external environment, CMA CGM developed strong dynamic capabilities. This ability to adapt and
innovate in the digital realm became a valuable asset for the company.
• Gaining sustainable competitive advantage: CMA CGM cultivated valuable, scarce, and difficult-
to-replicate heterogeneous resources during the digitalization process. These resources gave the
company a sustainable competitive advantage in the market.
The Case Solution Starts From page 6
, EXHIBIT -2: STAGES OF CMA CGM’S DIGITAL TRANSFORMATION
Stages of
Digital Challenges Key Action
Transformation
Cost reduction: By Digital information platform INTTRA: CMA
replacing manual labour CGM implemented the INTTRA platform to
with digital platforms, CMA transform internal operational processes from
CGM aimed to streamline manual to digital and automated, enhancing
Process and automate documentary efficiency and accuracy.
Digitalization business processes, Container tracking equipment Traxens:
resulting in cost savings to Traxens technology enabled automated data
the company. collection, storage, transmission, and analysis
for container tracking, eliminating manual
intervention.
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m
Product and
Service
Digitalization
Sa
n
tio
lu
So
The Case Solution Starts From page 6
, EXHIBIT -5: CMA CGM’S TRANSFORMATIONAL TACTICS AT DIFFERENT STAGES OF DIGITAL
TRANSFORMATION
Stages of Digital Internal and External Technological
Transformational Strategy
Transformation Environment
CMA CGM had limited digital Following Strategy
technology expertise. Built digital infrastructures
Process
Mature digital technology solutions based on the experience of the
Digitalization
were already implemented in the air air and land transport industries
and land transport industries. to achieve rapid catch up.
Service Digitalization: Waterless Port
e
Product and
pl
Service
Digitalization
m
Sa
n
tio
lu
So
The Case Solution Starts From page 6
GLOBAL SHIPPING CASE STUDY SOLUTION
e
pl
SYNOPSIS
m
Sa
Rodolphe Saadé was the chief executive of the CMA CGM Group (hereafter CMA CGM), a giant in the
maritime industry; an industry long criticized by customers for its long lag in digitalization. Realizing the
importance of digitalization, Saadé defined digitization as a key strategic priority for CMA CGM’s development.
n
This case traces CMA CGM’s digital transformation process and discusses how Saadé and CMA CGM
tio
successfully addressed different challenges to gradually launch a series of digital innovations to the
company’s processes, products, services, and business model. However, as new digital technologies
continued to evolve and present new challenges, how could CMA CGM leverage the rapid development of
lu
artificial intelligence (AI) in the shipping industry? How could CMA CGM make full use of big data to
optimize business operation decisions?
So
OBJECTIVES
• evaluate the internal and external factors driving digital transformation;
• analyze the evolutionary process, challenges, and solutions in the different stages of digital transformation;
• design different strategies and tactics of digital transformation; and
• explore options for enterprises to develop digital intelligence and digital capabilities.
The Case Solution Starts From page 6
, e
pl
m
Sa
ASSIGNMENT QUESTIONS
n
1. What were the factors that led CMA CGM to initiate its digital transformation?
tio
2. What stages did CMA CGM go through in its digital transformation? What challenges necessitated this
transformation?
3. What strategies did CMA CGM adopt to overcome the challenges in the digital transformation process?
lu
What tactics did CMA CGM use in each stage of digital transformation?
4. If you were Saadé, how would you address the current challenges and keep pushing CMA CGM’s
So
digital transformation forward?
The Case Solution Starts From page 6
, e
pl
m
Sa
n
tio
4. If you were Saadé, how would you address the current challenges and keep pushing CMA
CGM’s digital transformation forward?
lu
So
• Accumulating tacit knowledge: Through the process of digital transformation, CMA CGM
accumulated a significant amount of organizational learning experience. This knowledge became tacit,
serving as valuable resource for the company’s future endeavours in smart shipping.
• Building dynamic capabilities: By actively seeking out new digital opportunities in a rapidly changing
external environment, CMA CGM developed strong dynamic capabilities. This ability to adapt and
innovate in the digital realm became a valuable asset for the company.
• Gaining sustainable competitive advantage: CMA CGM cultivated valuable, scarce, and difficult-
to-replicate heterogeneous resources during the digitalization process. These resources gave the
company a sustainable competitive advantage in the market.
The Case Solution Starts From page 6
, EXHIBIT -2: STAGES OF CMA CGM’S DIGITAL TRANSFORMATION
Stages of
Digital Challenges Key Action
Transformation
Cost reduction: By Digital information platform INTTRA: CMA
replacing manual labour CGM implemented the INTTRA platform to
with digital platforms, CMA transform internal operational processes from
CGM aimed to streamline manual to digital and automated, enhancing
Process and automate documentary efficiency and accuracy.
Digitalization business processes, Container tracking equipment Traxens:
resulting in cost savings to Traxens technology enabled automated data
the company. collection, storage, transmission, and analysis
for container tracking, eliminating manual
intervention.
e
pl
m
Product and
Service
Digitalization
Sa
n
tio
lu
So
The Case Solution Starts From page 6
, EXHIBIT -5: CMA CGM’S TRANSFORMATIONAL TACTICS AT DIFFERENT STAGES OF DIGITAL
TRANSFORMATION
Stages of Digital Internal and External Technological
Transformational Strategy
Transformation Environment
CMA CGM had limited digital Following Strategy
technology expertise. Built digital infrastructures
Process
Mature digital technology solutions based on the experience of the
Digitalization
were already implemented in the air air and land transport industries
and land transport industries. to achieve rapid catch up.
Service Digitalization: Waterless Port
e
Product and
pl
Service
Digitalization
m
Sa
n
tio
lu
So
The Case Solution Starts From page 6
