Cognizant Acquires 49 Percent Stake in Renowned International Consultancy Specializing in Applying Deep Behavioral Insights to Business Strategy
Cognizant (NASDAQ: CTSH) hasÂ announced an exclusive strategic partnership and the acquisition of an ownership interest of 49 percent in ReD Associates, a leading strategic consulting firm specializing in the use of human sciences to help business leaders better understand customer behavior.
Digital technologies are reshaping most aspects of everyday life including how people work, manage their health, are educated, get entertained, shop, and connect with each other. Success in this new era requires new business models and a deeper understanding of how people are engaging with technology. Even centuries-old industries are seeking to better understand their customers in order to serve them in the digital age. Based in Copenhagen and New York, ReD Associates has worked with leading global companies, including Ford, Adidas, Intel, Samsung, Novo Nordisk, Pernod Ricard and many others, to help them form a clear strategy based on a rich understanding of consumer behavior using social sciences research methods and thinking.
As part of this exclusive relationship, Â strategy experts, behavioral economists, anthropologists, sociologists, and ethnographers from ReD Associates will work with digital strategists, designers, technologists, and data scientists from Cognizant Digital Works to help businesses connect more closely to real-world consumer behaviors and experiences. ReD Associates will retain its management team, clients, and projects, and operate independently. Terms of the investment are not being disclosed.
â€œThe philosophy behind our approach to research and meaningful insights is the science around understanding how things are experienced,â€ said Christian Madsbjerg, co-founder, ReD Associates. Â â€œBy joining forces with Cognizant, we are able to expand our business and believe that we can create an entirely new model for how digital strategy is conceived and â€“ most importantly â€“ executed.â€
Mikkel B. Rasmussen, co-founder, ReD Associates, added, â€œThere is a natural fit between our companies and with the Cognizant Digital Works approach in combining strategy, design, technology, and industry knowledge to create, prototype, and deliver compelling digital transformation for clients.â€
â€œWhile it may sound counter intuitive, â€˜being digitalâ€™ also means being more human,â€ said Gajen Kandiah, Executive Vice President, Cognizant Digital Works. â€œA richer understanding of human behavior can unlock new opportunities for our customers. Based on a deep understanding of what people really want and need, we can use technology to provide more meaningful and engaging experiences. Our partnership with ReD Associates is a natural extension of our current joint work with select clients. Together, ReD Associates and Cognizant Digital Works provide a unique value proposition to customers who are considering digital solutions. ReD Associates provides clients with insight and strategy based on the social sciences, and Cognizant provides technical development and implementation at scale.â€