Julien Tanguy (SKEMA 1995)

“ULTIMATELY,

OUR PRINCIPAL ASSET

IS OUR EMPLOYEES”

Julien Tanguy (SKEMA 1995) is the former Chief Financial Officer of the Edenred Group, a specialist in payment solutions for specific uses. He talks to us about his vision of continuous transformation, driven by digital technology, corporate acquisitions and evolving customer needs.

Propos recueillis
par Antoine Boitez

Edenred is often seen as a pioneer in digitisation. How did you carry out this transformation?

When I joined Edenred nearly 15 years ago, the company was still focused on its physical products. We all remember the famous paper Ticket Restaurant® vouchers. Since then, we have undergone a radical transformation, and become a true tech company. Today, our solutions are primarily digital, and technologyrelated jobs account for a third of our workforce. This transformation took place in stages: the transition from paper to cards in 2011, then the integration of mobile payment in 2016, and now 100% paperless solutions accessible via our app.

How does governance play a role in transformation and decision-making at Edenred?

It is structured in a traditional way, but optimised to support our transformation projects. We are a company with a board of directors of 12 members, including our chairman. This board sets the direction and overall strategy. Next, the executive committee of around ten people – business line managers, HR directors, the CFO, the CIO and communications and strategy managers – translates this vision into action. Major decisions involve clear processes.

We have separate investment committees for internal projects and for acquisitions (M&A). Responsibilities are clearly defined: up to a certain amount, decisions are made by the Chief Financial Officer, and above that amount by the Chief Executive Officer or the Board. This ensures consistency and responsiveness while sticking to established rules. We hold quarterly business reviews, when we review each country’s performance, incorporating topics that go beyond the purely financial aspects. We travel extensively to meet with teams, get a picture of their challenges and adjust our priorities according to local situations. This form of organisation helps us stay agile and effectively manage our transformation on a global scale.

« Digital transformation should not be an additional layer; it should be integrated into the business model. »

What were the main challenges with this transformation?

The first challenge was developing competences. The teams we have today are very different from those of ten years ago. We had to train our employees and recruit talented individuals from major tech companies (see below – Ed.) to support our transition. Then there were the organisational changes. We created positions and departments that didn’t exist before, like Chief Product Officer and teams dedicated to solution architecture. Lastly, digital security is now a priority. We currently allocate 10% of our technology budget to cybersecurity.

« Edenred is investing heavily
in cybersecurity because the
risk has never been greater. »

How does training contribute to transformation at Edenred?

Training is a key mainstay of our transformation strategy. We have set up a digital training platform accessible to our 13,000 employees. It includes both compulsory modules and a wide range of optional modules, so that everyone can tailor their training to their needs or preferences. You can access resources on a variety of topics, including project methods, cybersecurity and tools like ChatGPT.

We have also developed a specific module for learning how to use AI. Though it can act as a real co-pilot in everyday tasks, its adoption is not always intuitive. This module helps our employees understand how to ask the right questions, structure their requests and make full use of it in order to increase efficiency.

How does Edenred incorporate sustainability into its transformation?

Sustainability is central to our strategy. Our solutions foster responsible behaviour. For example, we encourage the use of electric vehicles and provide solutions for managing tolls and fuel costs more efficiently. These solutions help companies around the world reduce their carbon footprint while optimising costs.

We also measure our non-financial performance, at both group and local level. In Brazil, we have set specific targets for reducing emissions and social impact. This is a market where environmental and social issues are particularly visible, and we want to play a leading part in it.

You mention the importance of local markets in your strategy. Brazil seems to be playing a special role here. Why is that?

Brazil is a key market for Edenred, because of not only its size, but also its ability to adopt innovation rapidly. It’s a country where we have developed some of our most advanced solutions. For example, in the field of mobility services, we have integrated features tailored to local specificities, such as electronic tolls and electric vehicle services, all essential in a country where road travel is dominant.

Brazil often acts as a testing ground for innovation at Edenred. Its economic and geographical diversity drives us to adapt our solutions to meet the varied needs of our customers. The resulting knowledge is then exported to other markets.
This is an excellent instance of ourglocal approach: thinking globally while acting locally.

Over the past few years, Edenred has bought up several companies. Do these acquisitions serve as a lever for transformation in the strict sense of the term?

Acquisitions are a major strategic lever for speeding up the diversification of our activities. Take Reward Gateway (see also below): a British company specialising in employee engagement platforms. This company, which focuses on services like internal communication, well-being and incentive and reward programmes, is particularly popular in Englishspeaking countries (the UK, the USA and Australia). We invested €1.3 billion to buy it and are now rolling out its features across continental Europe, where younger generations and our customers are showing keen interest in this type of solution.

In the sphere of mobility, we have also bought a Danish company specialising in software for electric vehicles and charging station management. This acquisition shows how determined we are to address sustainability challenges and expand our offerings in rapidly changing markets. These acquisitions involve specific challenges, particularly in terms of cultural and organisational integration. Before any acquisition, we systematically visit the offices to assess the managerial compatibility and the corporate culture. Once the acquisition is complete, we seek to strike a balance between pooling resources and maintaining autonomy.

« Evolving customer requirements force us to constantly rethink our approach. »

Julien Tanguy

IN A GLANCE

1995

Graduate of the SKEMA Business School Grande Ecole programme.

1996

Starts his career as an auditor at PricewaterhouseCoopers.

2001

Joins SFR as Controlling Manager.

2005

Moves to Europcar as Chief Financial Officer of Europcar Information Services, then becomes Chief Financial Officer of Europcar France.

2011

Joins Edenred France as Administrative and Financial Director.

2012

Simultaneously Chief Financial Officer and Chief Operating Officer at Edenred France.

2016

Appointed General Manager of Edenred France.

2021

Promoted to Chief Financial Officer of the Edenred Group and joins the Executive Committee.