Digital Transformation – The way to Zero Distance

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CUSTOMER CENTRICITY IS DRIVING DIGITIZATION

THE Product THAT talksThe smart case that always knows where it’s going

Big DataVOLUMES OF DATA ARE RISING – FAST

Built by the consumerconsumers configure their own car

Generation EasySIMPLE, USER-FRIENDLY ICT

Shop2CustomerMall2Go brings food and everyday household products straight to the office

“EVERYTHING THAT CAN BE DIGITISED, WILL BE DIGITISED.”NICHOLAS NEGROPONTE, PROFESSOR AT MIT

Digital business incompetence will cause a quarter of businesses to lose their market position by 2017.

By 2017, 1 in 5 industry leaders will have ceded their market dominance to a company founded after 2000.

the digital universe [… ] is doubling in size every two years, and by 2020 the data we create and copy annually will reach 44 zettabytes (from 4.4 ZB in 2013).

By 2015 the number of the connected devices was double the worldwide population.

7 BILLION

14 BILLION

More information: PAC study Digital Transformation Market Western Europe 3

What happens to those, who do not embrace Digital Transformation?

digital Darwinism

LoserWinner

Similarities of the winners

52

19

1 2 3 4 5 6 7 8 9 10 11 12

31

13 15 16

21

20

24

17

22

18

27 28 29 30 333223 25 26

34 3735 40 4136 38 39

42 4543 48 4944 46 47

50 51 53 54 55

56 57 58 59 60

14

strong Brands with a very clear product strategy Are often Trend-setter and have a strong footprint

regarding digitalization permanently challenge themselves are early ADAPTORS in digitalization OR Grew up

WITH digitalization are agile and very quickly transform customer

desires are Attractive entrepreneurs And open for new

Business Models permanently and quickly analyze customer data and

implement new business models

Megatrends you need to consider in order to win

INDIVIDUALIZATION & STANDARDIZATION INDUSTRY 4.0 GLOBALIZATION

SECURITY CHANGES & NEW BUSINESS MOBILITY

There are Four keys to transform successfullyINDIVIDUALIZATION &

STANDARDIZATION INDUSTRY 4.0 GLOBALIZATION

SECURITY CHANGES & NEW BUSINESS MOBILITY

Define your digital vision & Execute it

Transform portfolio & Customer Channels

Strong Focus on Customers

Slim down processes, it & Platforms

It’s all about agility

For a successful transformation you need to address the entire value chain

Culture Leadership

Technology Processes

strategy People

operations

All Processes are affected

Customer Service Processes

Management Processes

Research & DevelopmentIT

Marketing

Supplier Procurement Logistics Production Sales & Distribution After Sales Customer

ProductsRetail Energy Logistics Oil & Gas

But: all companies are different

Strategy Strategic Vision Transformation

Roadmap

Leadership Management

Methods Sponsorship Resources

People Quantity Expertise Capability

Products Product Lifecycle Business Models Innovation

Capabilities

Governance Communication and

Collaboration rules KPI‘s Alignment

Operations Customer Lifecycle Channels and

Business Practices Agility

Technology Software Tools Cloud Architecture ICT Infrastructure Industry 4.0

Culture Customer

Satisfaction Hierarchy vs.

Network

Digital transformation… is a challenging task

Cost pressureSConflict between new business imperatives and major cost pressures

ENTER THE CloudImplement cloud infrastructures – with zero downtime and robust security

Agile IT For rapid time-to-market – as demanded by user departments

EnsureCompetitiveness by winning new digital business

customerTOUCHPOINTSManage the growing number of digital customer touchpoints

CONCURRENT ModelsSignificant impacts on processes make concurrent models a must

Create STRONGfoundationsCreate high-performance, scalable IP infrastructures to enable digitization

THE NEED TO InnovateSpiraling IT costs hinder the ability to innovate

Against this background, you need T-Systems –a skilled partner with genuine e2e expertise

Based on years of experience, this is what matters

For all these Topics, We have A two-pronged approach to digitalize: Clear strategy e2E-Solutions

Made Deutsche Telekom

IP-network mattersprecise “All IP”-Strategy

Focus on systems INTEGRATION: Centralization /

Cloud Ready Mobilization Virtualization

internet & WEB-Based businessES

SOURCING STRATEGYNEW POLICIES

Security

FLEXIBLE PLATFORMsReal time informationEverything “as a Service”

REVOLUTION OF “SOCIAL MEDIA”E-CommerceBusiness Intelligence

Thank You!

BackUp

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Deutsche telekom profile

2014 2017

DIGITAL TRANsFORMATION MARKETWESTERN EUROPE

5,3Digital Software

Products

4,5Digital

Consulting6,1Digital TechnologyImplementation

3,2Digital

TechnologyIntegration

5,6Digital Operations

& Management7,2

Digital SoftwareProducts

6,4Digital

Consulting8,1Digital TechnologyImplementation

4,5Digital

TechnologyIntegration

7,3Digital Operations

& Management

TOTAL24,5

TOTAL33,6

CAGR: 11%

m€ m€

Oil & Gas value chain

Culture Leadership

Technology Processes

strategy People

operations

All Processes are affected

IT

Products

Research & Development

Exploration Production Transportation Refining MarketingOIL

Exploration Production Processing Transportation MarketingGAS

Energy value chain

Culture Leadership

Technology Processes

strategy People

operations

All Processes are affected

IT

Products

Research & Development

Generation Retail

Trans-portation

&Delivery

Measuring Sales CustomerService