Dassault Systèmes: The Most Important Assets are the Employees

 

Presentation written by:

BRICOUT Maxime, maxime.bricout@etu.univ-grenoble-alpes.fr

LEGRAND Romain, legrarom@etu.univ-grenoble-alpes.fr

Presentation supervised by: Assoc. Prof. Dr. Elena M. BARBU, elena.barbu@univ-grenoble-alpes.fr

Introduction

Dassault Systèmes is precursory in the field of the environmental responsibility and has a really low impact on the environment due to its activity. This low impact is mainly constituted by the reserve of fuel of its headquarters in case of electricity breakdown, and by means of transport used by employees.

In the same time, Dassault Systèmes is a company fully-based on innovation, which significate that its most important asset is its employees. In fact, the human capital is it first resource. Being aware of it, the company established sustainable actions in order to maintain its human resources in a creative and productive dynamics, while allowing to each of its employees the ways to develop professionally and personally.

We present here in the firt part, several general information about the firm, in the second part the social responsibility policy and in the last part, the environmental policy of the firm.

  1. General information about Dassault Systèmes

History

Founded in 1981, Dassault Systèmes is a subsidiary of the Dassault Group created by Avions Marcel Dassault to develop a new generation of computer-aided design (CAD) software called CATIA.
Previously located in Suresnes, the corporate moved its headquarters to Velizy-Villacoublay in November 2008 (south-western suburbs of Paris – France) to create de « 3DS Paris Campus » allowing them to have more influence abroad.

Currently, Dassault systèmes carry value to over 210 000 customers of all sizes, in all industries, in more than 140 countries with technologies and solutions that drive digital transformation in industries ranging from aerospace to life sciences and is participating in more than 50 global initiatives dedicated to advance world-class production technologies and processes. This development has been possible by numbers of investments, both through expenditures on its internal R&D efforts and acquisitions.

Even if the company’s internal R&D investments are the principal driver of its product innovations with the creation of numerous brands, the firm has performed acquisitions well aligned with its strategy throughout the years. For example, from 2014 to 2016, Dassault Systèmes completed acquisition of 4 company (CST, Accelrys, Quintiq, RTT), for a total amount of €1,288 million, net of cash acquired, allowing them to expand their fields of activity to EM simulation of autonomous cars, connected homes, medical equipment, wearable electronics and other smart objects for example.

Group organization

Dassault Systèmes SE, the Group’s parent company located near paris, fulfills several roles.
First, it is one of the Group’s largest operating companies and one of its principal R&D centers, responsible for the development of a number of the Group’s software solutions integrated in the 3DEXPERIENCE platform.

The parent company manages cash for subsidiaries whose currency is the euro, and provides support to the Group for a number of activities, including finance, communication, marketing, legal affairs, human resources and IT.

Dassault Systèmes SE receives dividends paid by its subsidiaries. Additionally, the costs of providing centralized services are charged back to the respective subsidiaries benefiting from support services and financial aid.

At December 31, 2016, the Company was constitue by Dassault Systèmes SE, leading by Charles Edelstenne (Chairman of the Board of Directors) and 116 operational subsidiaries.

The chart below sets away the Company’s main subsidiaries:

Figure 1: Dassault Systèmes organization

Source: http://www.csringreece.gr/files/reports/en/2016/2016-3DS-Annual-report-EN.pdf

Business activities

The mission of Dassault Systèmes, the 3DEXPERIENCE Company, is to « provide business and people with 3DEXPERIENCE universes to imagine sustainable innovations harmonizing product, nature and life. »

That’s in this perspective that the company cover a wide spectrum of domains from modelling and scientific simulation to production and logistics optimization, and is applicable from Natural Resources to Cities, Transportation, Buildings, Smart Products, Consumer Goods, all the way to biological systems and chemistry.

Furthermore, beside its participation to the industry digital revolution, Dassault Systèmes is also committed to helping transform the world of education and preparing the talents of today and for the future with its solutions in use in more than 40,000 schools around the world, enable students to be well prepared for their future jobs and careers.

Dassault Systèmes platform and apps are built to digitalize the entire customer journey, with capabilities to analyze, design, simulate, engineer and deliver experiences. The platform enables innovators to develop a deep understanding of their customer’s expectations by analyzing social and usage information in a unique data-driven approach. Enterprises can then model, simulate and optimize their offerings to best suit each customer experience. Dassault Systèmes proposal can fit with the majority of the company’s needs by offering about 11 apps in several fields (Social & Collaborative Apps, 3D modeling Apps, Information Intelligence Apps, Simulation Apps).

Figure 2: Dassault Systèmes products ranges

Source: http://www.csringreece.gr/files/reports/en/2016/2016-3DS-Annual-report-EN.pdf

To satisfy its customers and their needs, the Company is benefiting from a sophisticated organization supporting its multiple growth drivers. The Group has organized itself along three axes with:

a strategy to cover customer processes with an industry focused set of offerings.

a domain-focused group of software applications organized by brand in order to ensure a strong focus on the satisfaction of end-user needs.

a global-local-specialized organization in order to leverage its global strengths, while at the same time ensuring a strong local proximity with customers and partners and enabling a more flexible management structure responsive to local needs at the client, partner and employee level thanks to its twelve geographic management teams.

Dassault Systèmes in some figures

Based upon the Company’s mission, business strategy and its software portfolio, Dassault Systèmes has estimated that it has a current addressable software market of approximately €24 billion. With its turnover of approximately €3 billion in 2016, the market share of the company is around 12,5% on this estimated market.

In order to increase this market share, the firm base its growth around three main areas:

Build on Value with the 3DEXPERIENCE platform, industry focus and cloud/mobile apps

Domain Leadership through Brand Value Creation

Improve Efficiency leveraging its sales channel coverage

As it was said previously, the Company’s customers range from start-ups, small and mid-sized companies to the largest companies in the world as well as educational institutions and government departments.

To ensure sales and marketing coverage of all its customers, the Company has developed three sales and distribution channels, with approximately 59% of revenue generated through direct sales channel (3DS Business transformation channel) and 41% through the Company’s two indirect sales channels (3DS Value Solutions channel, 3DS Professional channel) in 2016.

At December 31, 2016, the Company’s R&D teams included 6,375 personnel, representing approximately 42% of the Company’s total headcount of 15,133. Constantly in growth for more than 10 years, the Company continue to increase its total R&D headcount (by 8.9%) in 2016, principally reflecting growth in R&D resources through acquisitions and by 5.2% in 2015 primarily through internal growth.

Perfectly illustrating the well-being of the company, R&D expenses totaled €540.5 million for 2016, compared to €492.5 million for 2015, increasing 9.7%.

Figure 3: Dassault Systèmes Key figures

Source: http://www.csringreece.gr/files/reports/en/2016/2016-3DS-Annual-report-EN.pdf

Social responsibility

Dassault Systèmes is a company fully-based on innovation, which significate that its most important asset is its employees. In fact, the human capital is it first resource. Being aware of it, the company established sustainable actions in order to maintain its human resources in a creative and productive dynamics, while allowing to each of its employees the ways to develop professionally and personally.

The company applied several principles to continue to develop in this direction, considering its important growth of the number of employees.

For example, its encourage the fact of sharing and increasing skills by qualification courses available through the 3DS Academy, a web platform constituted by online applications dedicated to the learning and the sharing of knowledge. Moreover, the company provide various virtual supports designed to the world of education, research centers and general interest organizations, as well as governments and institutions. These actions, especially with universities, allow the company to obtain a certain visibility and to increase its reputation with the students. It permits to implement an attracting talented individual strategy and hire the best candidates who will bring the most important new generation resources and raw knowledge to the company. To seduce these young graduates, it is in the interest of the company to offer working conditions and interesting career prospects.

The company set up new ways of collaboration with the establishing of new model of transversal work, permitting to increase the creativity. This initiative aims to allow each person to reveal and use their skills as well as to diversify their scope and expand their network

Gender equity policy

In terms of equity between genders, the group’s policy is working at the improvement of the equality between men and women at work, both at the level of the salaries and the careers. For example, in June 2016, a second 3DS Women Initiative Summit brought together 22 Group representatives globally. A priority action plan, including a measure to raise management awareness, was established in order to boost the recruitment of women at Dassault Systèmes and increase their numbers in management positions[1].

Social activities

The 2016 allocation by Dassault Systèmes SE allows employees, as well as their spouses and children, to be offered a large range of social and cultural activities with many sections dedicated to specific domains from sports to art, as well as financial support, such as for vacations, children’s education, and membership in clubs[2].

Rewarding performance

Every employee has an official manager whom he meets at least twice by the years to emit a feedback as regards his work and sound felt within the company, as well as to define objectives to achieve during the year. The managers are offering profit sharing bonus once a year regarding goals and results of each employee.

Business ethics

Since its creation, Dassault Systèmes has developed its culture and built its reputation on different fundamental principles, particularly the creation of long-term relationships with its employees, customers, partners and shareholders, as well as high-quality products with high added-value. Confidence and integrity, supported by rigorous ethics and regulatory compliance, are at the heart of Dassault Systèmes’ commitments for sustainable innovation and growth[3].

A specific code of conduct was established, containing rules about:
– The fight against corruption
– Principles of Enterprise Social Responsibility and commitments to ensuring respect for basic rights
– Impact of products and services on the health and safety of the Group’s customers
– Health, Safety and Working Conditions Committee and specific actions

Environmental responsibility

Dassault Systèmes is precursory in the field of the environmental responsibility and has a really low impact on the environment due to its activity. This low impact is mainly constituted by the reserve of fuel of its headquarters in case of electricity breakdown, and by means of transport used by employees.

General engagements

Dassault Systems started to focus on environmental responsibility and take it in account for it’s global strategy in 2010. The company takes several measures in this way, like:

– the establishment of a global measurement process and collection of environmental information, the establishment of

– the establishment of a collaborative approach from employees, who participate in initiatives aimed at limiting the impact of operations

– the evaluation of potential customers according to the impacts of their request on the environment.

The company integrate the environmental responsibility matters in its produces, to permit to their customer, which have a negative impact on the environment, to reduce the consumption of raw materials thanks to digitalization and optimization of their process thanks to the Dassault Systèmes solutions, permitting to reduce the consumption of energy.

Global engagements

In it’s annual report, Dassault Systèmes mention that the group is aware and integrate principles about the environmental responsibility in its activities, from conception to production. They are explaining that environmental protection is closely related to sustainable development. In this way, they established an environmental strategy in 2015 for the three following years, which is based on three main pillars:
– Give responsibilities itself in its various activities. In the field of the 3D Modeling Technologies, the company integrated tools as eco-design for predictive environmental assessment and virtual prototyping, “which improve the carbon footprint, energy consumption, human health impacts, and overall sustainability of products and systems”[4]. For example, in their 3D modeling software SolidWorks, they integrated sustainability features that “estimates the environmental implications of each design decision using several environmental indicators[5]”. This software permit to one of their clients, a global leader in door-opening solutions to reduce its product materials and energy cost by 15%.
In the field of production, where it’s used both virtual and real technologies, the conception of realistic simulations used to estimate the environmental impact of complex products and permit to optimize the use of materials and energy. Every step of production can be simulated to reduce the environmental impact of the product during it’s life cycle. “For example, a leading packaging designer used SIMULIA to simulate complex design interactions, resulting in a 27% reduction of carbon footprint and plastic resin usage while maintaining product integrity[6]”. They also developed a search-based infrastructure named EXALEAD which integrate in the management decisions the impacts on the structured and unstructured environmental data.
Give responsibilities to the employees. The company involve and encourages to act its employees about saving water and energy. New employees follow a presentation about eco-friendly habits to adopt in offices and technologies liable to reduce the environmental impacts of the group’s activities. Moreover, specific events are organized sometimes to promote the benefits of recycling.

In September 2016, the company organized a training for its employees about their awareness of sustainable development issues. There were three steps:
– Employees are firstly made aware of the world’s current sustainable development challenges;
– The course content is focused on the environmental strategy of Dassault Systèmes, based on three pillars
– The last part reminds employees of the good practices to adopt in the office concerning issues such as recycling and energy consumption.
– Responsible partners. The group integrated the environmental responsibility in their commercial strategy, engaging their collaborators to act to the success of these sustainability strategies. “For example, one of the Group’s customers, a leader in test and measurement systems in electronics and bio-analytic instruments, uses ENOVIA Materials Compliance Management (MCM), an automated, enterprise-wide materials compliance data tracking system, to demonstrate compliance with stringent environmental regulations for more than 1,800 products and 160,000 parts from more than 7,000 suppliers[7] ”.

Dassault Systèmes is engaged in several industry collaborations to increase the benefits of sharing sustainability solutions with other companies, like the International Aerospace Environmental Group which concern the most global actors of this industry, like Airbus and Boeing, the Sustainable Apparel coalition, and the Sustainability and Health Initiative for Net Positive Enterprise.

Contracts which are linking partners of Dassault Systèmes and tenders are including a corporate social responsibility component.

Local engagements

At the local scale, the company tries to reconcile environmental and social responsibility. The group implemented a policy of setting up its activities in offices certified by the local standards as Haute qualité environementale in France and Leadership in Energy and Environmental Design in United States.

Dassault Systèmes lead an environmental management system certification policy by increasing the number of it’s offices certified by the ISO 14001 certification, which is based on the principle of continuous improvement of the environmental performance by the control of the impacts bound to the activity of the company. According to the 2016’s report, 70% of the Employee Headcount worked in certified offices compared to 62% in 2015 regarding the ISO 14001 certification.

Any plan to move or to open a new site integrate sustainable development, respecting the responsible company policy.

Actions organized by the group to reduce the impact of the environment

The commitment of Dassault Systèmes to the environment passes not only by the commitments, but also by real actions led within the group, not hesitating to draw upon it’s Research and Development department to develop solutions to monitor and control the environmental impact of the company.

Using its own platform 3D EXPERIENCE, the group as fully integrated the monitoring and visualization of the environmental data in a dashboard. It permits to measure the evolution of data collection and measure in consequences the impact of the company on the environment.

Using its software WORKPLACE 3D, the company proceed to a full optimization of the workspaces, considering both environmental and social conditions of employees in the workplace, for improving the employee’s working conditions and reducing the energy consumption. There is three “primary” indicators which the company takes care of: electricity consumption, greenhouse gas emissions, and waste electronic electrical equipment. The three “secondary” indicators are: paper consumption, water consumption and general waste.

In order to take care of these elements, the company has set up a methodology for environmental reporting. This methodology contains:

– the distinction between primary environmental indicators and secondary indicators;

the methodology for collecting and consolidating environmental information;

the scope for collecting environmental data

The Dassault Systèmes group constitute a model regarding the management of the environmental responsibility, integrating this dimension in all scales of management. This company does net restrict to respect only the law, but on the contrary tries hard to develop sustainable solutions throughout its development in a proactive way.

Moreover, a big part of its capital is constituted by intangible assets, which couldn’t have a direct impact on the environment.

Negative aspects

The use of the Group’s software by its customers generates indirect energy consumption for Dassault Systèmes. This consumption is the potentially indirect negative impact of Dassault Systèmes’ products on the environment.

All of Dassault Systèmes’ operations are in offices and in data centers. For its activities, the Group uses computer hardware and employees are required to travel regularly to the Group’s sites, and to visit customers and partners. The Group’s environmental impact is therefore mainly generated by the energy consumption of its buildings and data centers; the greenhouse gas emissions produced by employee travel; and the electrical and electronic waste.

Conclusion

In a global scale, the company shown a proactive behavior regarding the corporate social responsibility. Due to its activities and its values, Dassault Systèmes is a model in terms of social and environmental responsibility, what’s explain that there are very few limits which are negligible.

However, the corporate social responsibility policy is never perfect, and the company has to stay proactive in its efforts to be the most respectful of the environment and its stakeholders.

Websites and bibliography

Websites

https://en.wikipedia.org/wiki/Dassault_Systèmes

https://www.3ds.com/en-uk/

https://www.businessnewsdaily.com/4679-corporate-social-responsibility.html

https://www.3ds.com/fileadmin/COMPANY/Ethics-and-compliance/Corporate-Principles-of-Social-Responsibility.pdf

https://www.3ds.com/environmental-responsibility/

https://www.csrhub.com/CSR_and_sustainability_information/Dassault-Systemes/

https://www.csreurope.org/dassault-systèmes-mobi³-programme#.Wo2IYGZ7Q6U

https://www.csreurope.org/dassault-systèmes-ma-pierre-à-l’édifice-teens-education#.Wo2Ic2Z7Q6U

http://www.csringreece.gr/comp_profile.php?id=192

Bibliography

« CSR, Sustainability and Leadership », Edited by Gabriel Eweje, Ralph Bathurst

“Dassault Systèmes Annual report 2016 »,
http://www.csringreece.gr/files/reports/en/2016/2016-3DS-Annual-report-EN.pdf

  1. Dassault Systèmes Annual Report 2016, section 2.1.2.2 Professional equality between men and women
  2. Dassault Systèmes Annual Report 2016, section 2.1.2.2 Social Activities
  3. Dassault Systèmes Annual Report 2016, section 2.1.5 Business ethics, social dialogue and personal safety
  4. Dassault Systèmes Annual Report 2016, section 2.2.2.1 3D Modeling Technologies
  5. Dassault Systèmes Annual Report 2016, section 2.2.2.1, 3D Modeling Technologies
  6. Dassault Systèmes Annual Report 2016, section 2.2.2.1, Virtual + Real Technologies
  7. Dassault Systèmes Annual Report 2016, section 2.2.2.1 Connectivity Technologies