BEST PRACTICE - ANYTIME, ANYPLACE - T-Systems

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BEST PRACTICE - ANYTIME, ANYPLACE - T-Systems
BEST
                                                                                               MOBILITY 4.0
                                                                                 VOLKSWAGEN‘S D³ STRATEGY
                                                                                        CIO TALK EUROGATE
                                                                                      OPEN TELEKOM CLOUD

                         PRACTICE
                                                                                      SHELL MAKES HISTORY
BEST PRACTICE 3 / 2016

                                                                                     SECURITY EVALUATIONS

                         Issue 3 / 2016

                                          ANYTIME, ANYPLACE
                                            Rewriting tomorrow’s work playbook
BEST PRACTICE - ANYTIME, ANYPLACE - T-Systems
EDITORIAL
                                                         —3

   OPeN                                                                  WORK 4.0 NEEDS
                                                                         PARTNERS.
                                                                         BOTH INTERNALLY
 FOR YOUR                                                                AND EXTERNALLY.

Flexibilität
                                                                         Reinhard Clemens, Member of
                                                                         the Board of Management at Deutsche
                                                                         Telekom, and CEO of ­T‑Systems

Closed for everybody else

                                                                      WORK IS BECOMING MORE DIGITAL, flexible and con-                     All these changes are driven by technological innovations
                                                                      nected. And one of the biggest drivers of this trend is, in my       that must not be ignored, lest we fall behind in areas that
                                                                      view, the convergence of real and virtual mobility. In no more       matter to our business: the labor market, productivity, or the
                                                                      than ten years, increasingly autonomous cars will allow us to        intelligence needed to organize our work in newer, more ef-
                                                                      spend less time driving and more time working on the road. By        ficient ways.
                                                                      2035, a steering wheel will probably be as foreign a concept to           Personally, I am most interested in how this trend affects
                                                                      tomorrow’s children as phone hooks or rotary dials are to to-        employees at our organizations. After all, the more closely our
                                                                      day’s youth. Industry 4.0 and the Internet of Things will funda-     physical and cyber worlds are connected by the Internet, big
                                                                      mentally transform how we develop and manufacture all kinds          data and high-performance computing, the more “anytime,
                                                                      of devices, from cars to machinery to electronics. However,          anyplace” working becomes a viable option. But that’s what it
                                                                      they will also change how we use these things – when, where          should remain – an option, not a requirement. Giving people
                                                                      and how we work with them.                                           greater freedom in where and when they work should trans-
                                                                           For example, our clothing may soon figure prominently in        form work in a way that simultaneously satisfies the needs of
                                                                      interactive communications, as pioneered by Fashion Fusion,          three different sets of stakeholders: the organization, its fluid,
                                                                      one of our group’s innovation projects. New technologies             virtual teams and the individual employees.
                                                                      such as artificial intelligence, augmented reality, 3D printing           It’s the latter group – the “employee side of digitization”,
                                                                      and collaborative robots will either change current work mod-        as it’s called in our top story by Georg Pepping, T-Systems’
                                                                      els – whether ours or our customers’ – or give rise to entirely      Director of Human Resources – that an organization has to
                                                                      new ones. How will organizations and their employees re-             consider in everything it does. Especially since employers ex-
                                                                      spond to the fast-growing importance of freelancing, co-             pect employees to possess new skills: discipline, personal
                                                                      working and virtual teams? More and more high performers             responsibility and the ability to optimize the use of their en-
                                                                      now support organizations as independent contractors in-             ergy, talent and creativity.
                                                                      stead of permanent employees. Plus, technology will tilt the              In that sense, trust-based corporate management and re-
                                                                      playing field even further as it gains the ability to replace more   sponsible self-management by employees also call for a new
                                                                      and more human production capability. Organizations will             form of partnership. And partnership is as important to Work
                                                                      only manage this transition gracefully if they have secure           4.0 as technology. One cannot exist without the other.
                                                                      cloud platforms and reliable connectivity. Ideally, they will in-
                                                                      stitute centralized data management with clear interfaces,           Best regards,
                                                                      too. After all, as Klaus Holzhauser, the Managing Director of        Reinhard Clemens
                            Photo: Deutsche Telekom AG

                                                                      PAC Germany says in the interview in this issue, users don’t
                                                                      want products or technologies; they want solutions to their
                                                                      challenges. And today, you can only find the right solutions by
                                                                      partnering and being willing to open up. That’s a statement
                                                                      that has many layers.
BEST PRACTICE - ANYTIME, ANYPLACE - T-Systems
INTRO   IT titans’ new buildings
                                                                          —5       More massive, modern and spectacular

ROOM FOR CREATIVITY.
SILICON VALLEY’S IT TITANS ARE
COMPETING TO BUILD THE MOST
MASSIVE, MODERN AND SPECTACU-
LAR BUILDING. WHO WILL COME UP
WITH THE MOST UNUSUAL DESIGN?
GOOGLE HAS DEVISED A 75,000
SQUARE METER GLASS-CANOPIED
CAMPUS USING LIGHT MATERIALS.
ITS VISION: OPEN SPACE FOR
TOMORROW’S FLEXIBLE, MOBILE
WORKERS. THE TARGET MOVE-IN
DATE IS 2020.

                                                                                                                          Photos: Heatherwick Studio and Bjarke Ingels Group, Facebook/dpa, Flickr Forgemind ArchiMedia
Facebook’s headquarters in Menlo Park is a miniature city (above).
Apple is the furthest along with its headquarters in Cupertino (below).
Star architect Sir Norman Foster designed a spaceship with a lush
green oasis and an underground auditorium.
BEST PRACTICE - ANYTIME, ANYPLACE - T-Systems
INTRO   Hatsune Miku
                                     —7       Virtual singer

                                                               Flesh-and-blood pop stars can only dream of this level of fame:
                                                               Hatsune Miku has over 2.5 million followers on Facebook. Her fans
                                                               compose songs and write lyrics for her: from heavy metal to pop to
                                                               ballads that Hatsune Miku sings on stage as a hologram backed by a
                                                               live band. Corporations such as Google and Toyota have already
                                                               launched ads featuring the virtual singer.

SHINING STAR.
WITH HER LONG GREEN TRESSES,
HATSUNE MIKU IS A FULL-BLOWN J-POP
STAR. SO HOW IS SHE DIFFERENT
FROM OTHER SINGERS? SIMPLE:
SHE’S A HOLOGRAM, PROGRAMMED
BY DEVELOPERS IN SAPPORO.
SHE PACKS CONCERT HALLS IN JAPAN.
NOW SHE’S TAKING EUROPE AND
AMERICA BY STORM.

                                                                                                                                    Photo: Torn Hanai/Reuters
BEST PRACTICE - ANYTIME, ANYPLACE - T-Systems
WHIZ KID.
NICK D’ALOISIO MAY ONLY BE 20, BUT
HE ALREADY LEADS A TEAM AT YAHOO
IN LONDON AND CALIFORNIA. WHILE
LIVING WITH HIS PARENTS, THE
THEN-15-YEAR-OLD DEVELOPED
SUMMLY, AN APP THAT AUTOMATICALLY
CONDENSES NEWS ARTICLES INTO
SMARTPHONE FORMAT. YAHOO
BOUGHT THE APP FOR 30 MILLION US
DOLLARS. TODAY, THE BRITISH
WUNDERKIND IS AN EMPLOYEE AT
YAHOO, WHERE HE WORKS ON APP
NEWS DIGEST, A SUMMLY SUCCESSOR.
                                                                                                                —9
                                                                                                                                           INTRO
                                                                                                                                           Nick D’Aloisio
                                                                                                                Messages for smartphones

                                     He thrilled investors as a teen; today, he shows corporations how to
                                     get things done. “I always program when I’m bored.” That’s how D’Aloisio
                                     came up with the idea for Summly. No wonder Time magazine named
                                     him one of the world’s most influential teenagers in 2013.

Photo: Nic Walker
BEST PRACTICE - ANYTIME, ANYPLACE - T-Systems
CONTENTS               Issue 3/2016
                                                                                                                                                                                                                                                                                    — 11

  12

                                                                                                                                                                                                                                                                                                                                                   40
                                                                                                                                                                                                                                                                                                                                                                                                                            It helps to
                                                                                                                                                                                                                                                                                                                                                                                                                           think big when
                                                                                                                                                                                                                                                                                                                                                                                                                           securing data
                                                                                                                                                                                                                                                                                                                                                                                                                           used in public
                                                                                                                                                                                                                                                                                                                                                                                                                           cloud services.
                                                                                                                                                                                                                                                                                                                                                                                                                            Shell hired
                                                                                                                                                                                                                                                                                                                                                                                                                           T-Systems to
                                                                                                                                                                                                                                                                                                                                                                                                                           handle the
                                                                                                                                                                                                                                                                                                                                                                                                                           biggest data
                                                                                                                                                                                                                                                                                                                                                                                                                           center move in its
                                                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                                                                                                                           history.

                                                                                                                                                    24

                                                                                                                                                                                                                                                                                   BEST PRACTICES
MOBILITY
                                                                                                                                                                                                                                                                                      34       SKEPTICS NO MORE.
12       WARNING: NEW FREEDOM.                                             30         CIO TALK WITH EUROGATE.
                                                                                                                                                                                                                                                                                      SALESFORCE. ContiTech, REWE, Zalando and Ströer Digital                                                                    37
WORK 4.0. Real and virtual mobility are pushing the traditional bound-     SECURITY NETWORK. Wolfram Müller, CIO at Europe’s largest                                                                                                                                                  switched to the CRM market leader with support from a German
aries of our working world into entirely new dimensions. Technologies      container terminal operator, talks about cybersecurity in the Internet                                                                                                                                     service provider.
such as 3D printing, voice control, artificial intelligence, M2M and IoT   of Things, 99.8 percent IT performance and the advantages of
have rewritten the work playbook. Companies and employees sound            having a “spider in the web”.
freer – but is that something they want and can manage?                                                                                                                                                                                                                               37       A BIG MOVE FOR BIG DATA.                                        ABOUT THIS PUBLICATION
                                                                                                                                                                                                                                                                                      SHELL. 69 IT environments, 7,000 servers, over 100 mission-critical      Published by:                         General Managers:
20       MOVING TARGETS.                                                                                                                                                                                                                                                              systems – T-Systems took on the largest data center relocation in        Roger Voland,                         Christian Backen, Alexander Uebel
                                                                             30                                                                                                                                                                                                       Shell’s history. And pulled it off on spec, on time and on budget.
                                                                                                                                                                                                                                                                                                                                                               T-Systems International GmbH          Production Manager at
                                                                                                                                                                                                                                                                                                                                                               Heinrich-Hertz-Str. 1                 HOFFMANN UND CAMPE X:
ANALYZE IT. According to Klaus Holzhauser, the Managing Director of                                                                                                                                                                                                                                                                                            64295 Darmstadt                       Sandra Heiske
Pierre Audoin Consultants Germany, mobile working requires cautious                                                                                                                                                                                                                                                                                            Publication Manager:                  Production: Wym Korff
                                                                                                                                                                                                                                                                                      40       CLOUD COVER.

                                                                                                                                                         Photos: Christian Kerber, Martin Bernetti/AFP/Getty Images, vario press; Illustration: Cindy Schmid, Title: Cindy Schmid
investment and genuine partners.                                                                                                                                                                                                                                                                                                                               Gina Duscher                          Litho: Olaf Giesick Medien-
                                                                                                                                                                                                                                                                                                                                                               Executive Editor:                     produktion, Hamburg
                                                                                                                                                                                                                                                                                                                                                               Tatjana Geierhaas                     Printing:
                                                                                                                                                                                                                                                                                      OPEN TELEKOM CLOUD. Even mid-market enterprises such as                  Editor-in-Chief:                      NEEF + STUMME premium
22       MISTAKEN MEASUREMENTS.                                                                                                                                                                                                                                                       communications provider Schwaiger or software licensing specialist       Thomas van Zütphen                    printing GmbH & Co. KG, Wittingen
                                                                                                                                                                                                                                                                                      Octopus are turning to public cloud services. But they’re choosy         (responsible for content)             Copyright:
PIONEER. US economist Erik Brynjolfsson believes that the value                                                                                                                                                                                                                       when it comes to legal certainty and data protection.                    Organization: Anke Echterling         © 2016 by T-Systems. Reproduction
                                                                                                                                                                                                                                                                                                                                                               Art Direction: Jessica Winter         requires citation of source and submis -
created by digitization should be measured differently in the future                                                                                                                                                                                                                                                                                           Layout: Silke Weißbach                sion of a sample copy. The content of
and that machines will never overtake people.                                                                                                                                                                                                                                                                                                                  Graphics Manager: Susanne Narjes      this publication does not necessarily
                                                                                                                                                                                                                                                                                      42       HOW HACKING HELPS.                                              Operation Manager:                    reflect the opinion of the publisher.
                                                                                                                                                                                                                                                                                                                                                               Maike Bamberg
24       TAKING AUTOMOBILE LITERALLY.                                                                                                                                                                                                                                                 SECURITY EVALUATION SERVICES. Who do you call to see how                 Translation:
                                                                                                                                                                                                                                                                                                                                                                                                     Read it yet?
                                                                                                                                                                                                                                                                                                                                                                                                     Best Practice Online:
                                                                                                                                                                                                                                                                                      your latest product innovation stacks up? Regardless of your             Native Speaker                        www.t-systems.com/bestpractice
AUTOMOTIVE. How connectivity, artificial intelligence and predictive                                                                                                                                                                                                                  industry, if it’s hardware or software, you can call the programmers,    Authors of this issue:
analytics are transforming the automobile of the future. The directions                                                                                                                                                                                                               engineers, mathematicians, cryptologists and physicists at               Sven Hansel, Roger Homrich, Michael                      Downloaded
                                                                                                                                                                                                                                                                                                                                                               Hopp, Heinz-Jürgen Köhler, Thorsten                      it yet?
taken by BMW, Audi and VW.                                                                                                                                                                                                                                                            T-Systems’ testing center.
                                                                                                                                                                                                                                                                                                                                                               Rack, Guido Reinking,                                    Scan the code for
                                                                                                                                                                                                                                                                                                                                                               Anja Steinbuch, Thomas van Zütphen                       the Best Practice+
                                                                                                                                                                                                                                                                                                                                                               Publisher:                                               App or visit:
29       DRIVING CHANGE WITH D³.                                                                                                                                                                                                                                                      44       A STATE GOES IP.                                                HOFFMANN UND CAMPE X                                     itunes.apple.com
                                                                                                                                                                                                                                                                                                                                                               A trademark of HOFFMANN
                                                                                                                                                                                                                                                                                                                                                               UND CAMPE VERLAG GmbH                 Questions and suggestions?
VOLKSWAGEN GROUP. “D cubed” is how Chief Digital Officer                                                                                                                                                                                                                              GOVERNMENT NETWORKS. North Rhine-Westphalia generates
                                                                                                                                                                                                                                                                                                                                                               Harvestehuder Weg 42                  bestpractice@t-systems.com
Johann Jungwirth describes the largest European carmaker’s                                                                                                                                                                                                                            more data traffic than any other German state. It now uses a single IP   20149 Hamburg
approach to digital transformation – for customers, for products           Eurogate CIO Wolfram Müller (left) and Patrick Molck-Ude,                                                                                                                                                  transmission standard for data and telephony with speeds of up to        Tel. (040) 441 88-451
and for the company.                                                       Director of the Telecommunications Division at T-Systems.                                                                                                                                                  10 gigabits per second.                                                  E-Mail: cp@hoca.de
BEST PRACTICE - ANYTIME, ANYPLACE - T-Systems
FOCUS   Mobility
                                                             — 13      Work 4.0

Anytime,
anyplace.
WORK HAS CHANGED. PEOPLE USED TO GO TO THE OFFICE, SIT
AT A DESK AND DO ALL THEIR WORK THERE. NOT ANYMORE:
DIGITIZ ATION HAS ADDED A NEW DIMENSION TO HOW WE WORK.
“EVERY DAY” HAS BECOME “ANY TIME”. “HERE” HAS BECOME
“ANYPL ACE”. WE ALREADY VIEW MOBILIZ ATION AS THE COMPLETE
DIGITIZ ATION OF WORK. BUT WHEN TIME AND PL ACE CONVERGE
IN THE REAL AND VIRTUAL WORLDS, WE NEED FIRM RULES
TO MANAGE THIS NEW FREEDOM PROPERLY.

                                                                                  Illustration: Cindy Schmid
BEST PRACTICE - ANYTIME, ANYPLACE - T-Systems
FOCUS   Mobility
                                                                                                                                                                                                                        — 15      Work 4.0

 Thomas van Zütphen

ASSIGNED DESKS DIED SURPRISINGLY QUICKLY. First, the lap-
top arrived – now you can work anywhere! Their fate was finally
sealed when cell phones morphed into smartphones.
     And now? Do you still make your own phone calls or do you let
your jacket handle it? – Wait, what?
     These innocent questions may still throw you off today, but you
won’t even hear them tomorrow. It’s all a matter of looking ahead.
As Claudia Nemat, Member of the Deutsche Telekom AG Board of
Management, Europe and Technology, put it, “There’s no law re-
quiring you to use smartphones for all your telecommunications.
Don’t get me wrong: it’s a wonderful invention, just as the rotary
phone was in its day. But one day, they will both end up in a
museum for our grandchildren to admire.”
     One company that’s looking ahead is Levi Strauss, the jeans
manufacturer. It is already developing fabrics that integrate touch
interactivity into trousers and jackets. They can send commands to
smartphones or other devices so that users can make calls or send
text messages. That means, according to Nemat, “telecommunica-
tions will increasingly become a feature of our clothing”. The trend

                                                                                                                                                                                                                                                25
will even extend beyond clothing, driven by augmented reality, 3D
printing and other technological innovations, and include virtual
reality headsets, smart headphones, bracelets and rings.
     Initiatives like Fashion Fusion, which Deutsche Telekom has
incorporated into its long-term innovation strategy, are anything but                                                                                                                                                                           megatren
                                                                                                                                                                                                                                                            d s have b
                                                                                                                                                                                                                                                                       een identi
playthings, as Jan Mantel will attest. “People and things – from                                                                                                                                                                               University
                                                                                                                                                                                                                                                             of St. Gall
                                                                                                                                                                                                                                                                                  fied by th
                                                                                                                                                                                                                                                                                             e
                                                                                                                                                                                                                                                                         en that w
machines to smart clothing – will form a relationship at home and                                                                                                                                                                             change h
                                                                                                                                                                                                                                                          o w we wo                ill ma ssiv
                                                                                                                                                                                                                                                                                               ely
                                                                                                                                                                                                                                                                     rk in the n
work that will change the way organizations think, operate and act                                                                                                                                                                                                               ext 30 ye
                                                                                                                                                                                                                                                                                           ars.
in every industry.” The Crisp Research analyst recommends “driving                                                                                                                                                                           You can
                                                                                                                                                                                                                                                        see all th
                                                                                                                                                                                                                                             w w w.t-s ys           e megatr
the use of mobile devices and wearables across the enterprise”.                                                                                                                                                                                                               end s at:
                                                                                                                                                                                                                                                          tem s.com
                                                                                                                                                                                                                                                                     /survey/w
And there are excellent reasons to do so.                                                                                                                                                                                                                                        ork-4-0
     Germany quietly crossed a big threshold recently. According
to a study conducted by HTW Berlin, a research university, 54 per-
cent of productive employees in Germany were mainly or exclu-
sively mobile workers at the start of the year. This marked the first
time that people who worked “solely or primarily at a particular sta-

                                                                                                                                                                                                                                               54 %
tionary workstation” were in the minority.

FROM WORKPLACE TO WORKSPACE
This change would be impossible without digital workstations pow-                                                                                                                                                                                                    yees in
                                                                                                                                                                                                                                               of productive emplo
ered by a combination of artificial intelligence, software-defined                                                                                                                                                                                               inl y or
                                                                                                                                                                                                                                               Germany are ma
                                                                                                                                                 Illustrations: Cindy Schmid; Photo: Lautenschlaeger/WirtschaftsWoche

products and increasingly sophisticated voice control on the one                                                                                                                                                                                               bil e wo rkers.
                                                                                                                                                                                                                                               exclu sively mo
hand, and IT applications such as the cloud, big data and predic-        “THERE’S NO LAW REQUIRING YOU TO
tive analytics on the other. For Experton advisor Wolfgang Schwab,
the terms “digital workplace”, “Workplace 4.0” or “future work-          USE SMARTPHONES FOR ALL YOUR
place” are misnomers. Instead, he talks about a “digital workspace
where virtually all areas of our conventional desktop world and the      TELECOMMUNICATIONS. INSTEAD,
modern mobile domain come together”. It sounds like a gradual
process, but the infrastructural requirements would make many a          OUR CLOTHES WILL INCREASINGLY
CIO break out in a cold sweat. The truth about virtual desktop infra-
structure and application streaming, management, security and            TAKE OVER THIS FUNCTION.”
mobility solutions is this: quite a few organizations believe they can
handle the growing integration requirements themselves, without          Claudia Nemat, Member of the Deutsche Telekom AG Board of Management,
any outside help. They’re mistaken, unfortunately.                       Europe and Technology
BEST PRACTICE - ANYTIME, ANYPLACE - T-Systems
FOCUS                        Mobility
                                                                                                                                                                                                                                           — 17                           Work 4.0

                                                                                                                                                                                                                                                                                                                                                                   23 %
“Devising a DIY solution,” warns Experton in its first-ever Digital
Workspace Vendor Benchmark 2016, “is probably economically
inferior to managed services or wholesale outsourcing in the vast
majority of cases.” The increasing demands of the digital transfor-                                                                                                                                                                                                                                                                                                                    de say that virtua
                                                                                                                                                                                                                                                                                                                                                                                                          l
                                                                                                                                                                                                                                                                                                                                                                   of people worldwi
mation process and the simultaneous decrease in staffing levels                                                                                                                                                                                                                                                                                                                          “ju st as good” as
                                                                                                                                                                                                                                                                                                                                                                   interaction s can be
will put even more pressure on business.                                                                                                                                                                                                                                                                                                                                           pe rso n. *
                                                                                                                                                                                                                                                                                                                                                                   being there in

MEGATRENDS HIT THE JOB MARKET
But that’s not all: futurologists at the University of St. Gallen have
identified no fewer than 25 emerging megatrends that will shape
the next generation of work. Megatrends, we may recall, are devel-
opments that take up to 30 years to completely unfold, but that im-
mediately start to affect every area of our lives and jobs and cannot
be stopped by anyone or anything.
      The researchers’ theses sound like a nightmare for managers
at various departments – from production to sales to HR (see inter-
view with Georg Pepping, p. 17):                                                                                                                                                                                                                                                                  Interview
Thesis 1: Tomorrow’s jobs have no clear organizational allocation.
Thesis 2: Machines learn to think, become intelligent and essen-
tially omnipresent through networking.                                                                                                                                                                                                                                                            “ADDING MORE TO NEW
Thesis 3: Permanent employees lose importance while globally
available skills of specialized experts gain importance.                                                                                                                                                                                                                                          EMPLOYEE SKILLS.”
      So who within the organization will be responsible for
structuring, moderating and implementing everything? Who will
organize the work amid constantly changing teams, managers,                                                                                                                                                                                                                                       Georg Pepping,
work sites and work hours? Who will integrate all the important IT                                                                                                                                                                                                                                Director of Human Resources, T-Systems

                                                                                                                                          88%
Infrastructure Library (ITIL) processes for physical, virtual, mobile
and cloud-based workspaces? These are remarkable examples
– and they cover only three of the 25 theses that the Swiss univer-                                                                                                                                                                               What will Work 4.0 change at organizations?                                ity-based working. Mobile working, after all, is about
sity has proposed together with Shareground, Deutsche                                                                                                                                                                                             Digitization will significantly change our work processes and              enabling me to collaborate with different people in different
                                                                                                                                          of organ
Telekom’s innovation unit.                                                                                                                          ization s                                                                                     the way we work. Change is coming; the only question is what               roles wherever and whenever I need. There’s another aspect
                                                                                                                                         much or              will inve
                                                                                                                                                   more in               st a s
                                                                                                                                                             d igitizing                                                                          will change, and how quickly. First, what we actually do at                to Future Work that is at least equally important: the neces-
                                                                                                                                         bu siness                        their
GERMAN INDUSTRY HALFWAY TO FINISH LINE                                                                                                             processe                                                                                       work will evolve as intelligent systems replace many human ac-             sary, accompanying change in leadership. In Future Work,
                                                                                                                                        the y did            s in 2016
                                                                                                                                                  in pre vio             a s
German organizations can take heart from the Digital Office Index                                                                                            u s years                                                                            tivities. Second, we will see the emergence of new forms of col-           flexible work hours and workplace rules will soon be the
                                                                                                                                                                       .
(DOI) published by Bitkom, Germany’s leading IT industry associa-                                                                                                                                                                                 laboration that are more digital, mobile, efficient and                    norm. Trust-based self-management by and for employees
tion. The paper, presented at CeBIT 2016, concludes, “The stage                                                                                                                                                                                   connected. Deutsche Telekom and the University of St. Gallen               will replace conventional top-down, control-based manage-
has been set for a digitized working world.” The study describes                                                                                                                                                                                  looked at all the advances brought about by Work 4.0 and then              ment. So we have several aspects coming together – and
where organizations have already digitized their processes and                                                                                                                                                                                    projected how they will affect the way we work in the future.              that’s what makes it really exciting. I am convinced that or-
where they can still improve. The current DOI of Germany’s industry                                                                                                                                                                               Exponential change is a feature of digitization, so organiza-              ganizations that can reconcile all three aspects will succeed
is 50, where 0 is “not digitized at all” and 100 stands for “com-                                                                                                                                                                                 tions have to address trends and harbingers of change as early             in significantly improving employee satisfaction and
pletely digitized”. While that means Germany is only halfway to a                                                                                                                                                                                 as possible. Technical change happens at an ever-accelerating              productivity.
digital office, it also proves that companies have read the writing on                                                                                                                                                                            pace, but behavioral shifts take much more time. If organiza-
the wall. 42 percent of the 1,108 firms surveyed intend to keep their                                                                                                                                                                             tions want to seize the opportunities presented by digital trans-          How can human resource departments support this
investment in digitization high; 46 percent said they planned to          most importantly, meet its own rigorous security standards for                                                                                                          formation, they have to devote at least as much attention to the           development?
invest even more in digitizing their business and administrative          mobility management. The same “full mobility, maximum secu-                                                                                                             employee side of digitization as they do to technology. That               I believe that HR can make three main contributions. First, it
processes in 2016. The investment pays off, too, according to orga-       rity” philosophy was behind the solution’s implementation at                                                                                                            doesn’t mean, however, that they can neglect the bigger techno-            can put workforce transformation on the agenda. A business
nizations that have taken this route.                                     CORPUS SIREO, one of the top real estate asset managers in                                                                                                              logical picture or its main technological themes: connectivity,            transformation will only succeed if I can qualitatively and
     All told, 74 percent of the companies say that the implementa-       Germany and Europe. “Being an innovative mobile-first company,                                                                                                          platforms and data security.                                               quantitatively change the workforce to support transforma-
tion of new software solutions “has had a positive impact on the          we saw a significant improvement in security, performance, IT in-                                                                                                                                                                                  tion. That’s something that has to be developed strategically,
performance of internal office and administrative processes”. At          tegration and end-user support when we combined Mobilelron’s                                                                                                            What are the key capabilities of a digital organization?                   just like technology. Second, HR can develop expertise in
                                                                                                                                                                                  Illustration: Cindy Schmid; Photo: Deutsche Telekom AG

the same time, nearly two-thirds (63 percent) state that they “signifi-   EMM suite with Deutsche Telekom’s deployment model,” con-                                                                                                               I would describe networked collaboration as one, if not the,               advising managers on what they do and how they do it. Third,
cantly improved customer satisfaction by optimizing processes”.           cluded Jens Gruse, Director IT at CORPUS SIREO.                                                                                                                         key capability of a digital organization. “You and me”, our                it can strategically improve the leadership and corporate
     One example is Xella, a building materials company. Its nearly             Other solutions that support real and virtual employee mobil-                                                                                                     in-house answer to Facebook, plays a major role. But so does               culture and drive necessary systemic changes in employee
7,000 employees in 20 countries have been using T-Systems’ En-            ity include the electronic land register or Teamwire, a social col-                                                                                                     flexible, mobile working – which brings us to the Future                   behavior. You see, Work 4.0 is not an end in itself. It is supposed
terprise Mobility Management (EMM) services since this summer.            laboration solution adopted by health insurer BARMER.                                                                                                                   Work program. Here, the focus is on technology: unified                    to make organizations and employees more productive and
The solution builds on suite technology that was developed by             Electronic land registers, which are already being used by land                                                                                                         communications, mobile device management and security                      successful. But I believe that you can only achieve and maintain
Mobilelron, a strategic partner of the Deutsche Telekom subsid-           registry offices in the States of Schleswig-Holstein and Baden-                                                                                                         as a service. These are all good things, but they represent                this balancing act if you build on four equally stable
iary, and then deployed in a private cloud. Now, Xella can scale          Württemberg, provide mobile access to land register data so                                                                                                             only part of Future Work. We also need supporting office                   pillars: trust-based management, flexible work environments
up mobile device management, improve productivity by empow-               office staff can process requests – and customers can look up                                                                                                           concepts: open plan offices, desk sharing, mobile and activ-               and secure and highly available co-working.
ering employees to easily manage their devices themselves and,            information – faster and more responsively while maintaining
                                                                                                                                                                                                                                             * GFK, http://www.gfk.com/global-studies/global-study-overview/
BEST PRACTICE - ANYTIME, ANYPLACE - T-Systems
FOCUS   Mobility
                                                                                                                                                                                               — 19      Work 4.0

                                                  “FLEXIBLE FORMS OF WORK AND
                                                  COOPERATION LEAD TO EMPLOYEES
                                                  ALWAYS HAVING ONE FOOT IN THE
                                                  LABOR MARKET.”
                                                  Stefanie Kreusel, Chairwoman of Syntra,
                                                  Deutsche Telekom’s management network

strong security. “An electronic land register adds real value for          either. After all, machines and self-learning processes can’t com-
ordinary citizens, especially when it comes to closings, financing         pletely replace human labor and ingenuity.
and the entry of security rights and ownership,” said Elmar Stein-              Luckily, the researchers have some comfort to offer, too: non-
bacher, Undersecretary of the Baden-Württemberg Ministry of                linear thinking is and will remain a human domain. According to
Justice and European Affairs.                                              the experts at the University of St. Gallen, the automation of work
                                                                           is finite. Entrepreneurial ability, creativity and the control of
SECURITY TAKES CENTER STAGE                                                machines are “hard-to-replace skills”. So does that mean we can
The growing convergence of real and virtual mobility at the work-          open the creativity floodgates? Maybe not.
place, in employee productivity and in maintaining a work-life bal-             There’s no question that the ability to meaningfully combine
ance has put one aspect at center stage: security. “These                  and interpret data from billions of machines, robots and things is an
environments have to be highly secure in order to make ‘anytime,           essential, irreplaceable human skill. However, working with big
anywhere, any device’ modes of work reliable and securely avail-           data differs from traditional data analysis in one significant way:

                                                                                                                                                                                                                       50 DOI
able,” said Klaus Holzhauser, the Managing Director of Pierre              hypotheses will disappear as a necessary tool within the next three
Audoin Consultants in Germany (see interview, p. 20). This is par-         decades. Because pretty soon, there will be more than enough
ticularly true for health insurance carriers where employees use           data on everything and everyone. Scientists refer to this admittedly
social collaboration platforms to improve their productivity and           theoretical sounding prospect as the “end of theory”.
drive the internal transfer of knowledge. BARMER, for example,                                                                                                                                                         On a scale of 0 to 100, the
                                                                                                                                                                                                                                                     current Digital Office
has ensured security by having T-Systems exclusively host and               Work 4.0:                                                                                                                        Index (DOI) of Germany’s
                                                                                                                                                                                                                                                     industry is 50.
operate its Teamwire solution as a managed service at well-pro-                         michael.pauly@t-systems.com
tected, ISO-certified data centers in Germany.                                          Teamwire:
     At the same time, collaboration and shared collaboration gen-                      francisco.perez-leon@t-systems.com
erally require employees to leave their secure corporate network,                       Electronic land register:

                                                                                                                                                                                                                    45%
according to Klaus Holzhauser. This is a real concern, especially                       barbara.hausmann@t-systems.com
since the researchers at Shareground and the University of St. Gal-                     Enterprise Mobility Management Services:
len expect collaboration to play a growing role in work processes.                      david.ibanez@t-systems.com
The “geographical location of the service provider” will no longer
play any role in the future. Instead, work will be as mobile as capital.         www.t-systems.com/solutions/dynamic-workplace                                                                               of Cloud work environmen
                                                                                                                                                                                                                                                  ts are mainly
The “demise of geographically located workplaces” will occur                            www.t-systems.com/solutions /mobile-enterprise                                                                              rele vant for mobile worker
                                                                                                                                                                                                                                                  s, according to IT
alongside a shift from “a presence to an event culture”. Managers                                                                                                                                                   decision makers at Germa
                                                                                                                                                                                                                                               n companies.
must learn that they need to motivate rather than control workers.
The art of management will be to establish and maintain personal
ties despite using impersonal technical channels.
     Especially for HR managers among others future work mod-
els pose big risks: “Flexible forms of work and cooperation lead
                                                                                                                                                   Illustration: Cindy Schmid; Photo: privat

to employees always having one foot in the labor market,” said
Stefanie Kreusel, Chairwoman of Syntra, Deutsche Telekom’s
management network. Systematic staff development will be-
come much more difficult, especially in a market where employ-
ability depends less on formal qualifications and more on
technical ability in robotics, augmented reality or similar fields.
This skill will not be lost on competitors keen to attract new talent,
FOCUS                 Mobility
                                                                                                                           — 21                    Analyze IT

SECURITY IS TOP PRIORITY
FOR MOBILITY.
Conversation with head of PAC Germany Klaus Holzhauser about                                                                                                                                                                          Klaus Holzhauser,
real and virtual mobility.                                                                                                                                                                                                            Managing Director
                                                                                                                                                                                                                                      Germany, PAC

 Thomas van Zütphen

The lines between real and virtual mobility are blurring                                                                     ing degrees of maturity. Some are still in the research and         One of the questions that PAC Horizons 2017 will tackle
everywhere – from work to productivity to work-life                                                                          development phase, making their future impact hard to pre-          is this: What changes should IT providers make to be
balance. What challenges has this trend thrown up for                                                                        dict. One thing is clear, though: automation is ‘merely’ taking     viewed as ‘service providers’ in the truest sense of the
organizations?                                                                                                               repetitive tasks off our hands at this early stage. AI can take     word? And what standards, in your opinion, will they
There are two sides to this issue. First, there’s the technology.                                                            automation to the next level, though, by giving rise to learning    have to live up to?
You want your environments to be highly secure. Only then                                                                    machines that can partially replace human intelligence in its       There are two sides to this issue. First, if you want to emphasize
will you see the blossoming of the “anytime, anywhere, any                                                                   current role.                                                       the partnership aspect of business, I almost think IT user orga-
device” modes of work that have been enabled by the wide-                                                                                                                                        nizations have a bigger burden to bear than IT service provid-
spread convergence of virtual and real mobility. Only then will                                                              The automotive industry is one of your research                     ers. They have to stop looking at their providers as suppliers
these modes of work be reliably and securely available.                                                                      specialties and a key mobility sector. But isn‘t this               whose only job is to deliver fast, cheap products. Instead, they
Remember: virtual mobility requires employees to leave their                                                                 industry known for “covering its brakes” when                       need to treat them as partners in the development of smart, cost-
secure network. Systems have to be available in real time; if                                                                it comes to IT investment?                                          effective solutions. In return, though, they should be free to
they aren’t, collaboration and shared collaboration will break                                                               They do cover their brakes, but I don’t think that’s a bad thing.   expect providers to continuously improve their knowledge of
down. Finally, user friendliness drives user acceptance. If you                                                              The market is highly volatile, so companies are reasonably cau-     corporate and industry processes and their capabilities in cut-
implement easy-to-use systems with easy-to-handle security,                                                                  tious. They tend to avoid long-term commitments to large IT         ting-edge technologies within the quality categories used by
employees will see no need to build their own solutions.                                                                     projects or related milestones and investments. However, OEMs       user organizations and their customers. Not only that, but IT
                                                                                                                             and auto parts suppliers have all seen the writing on the wall      service providers should also actively pass on to customers any
So what’s the second side?                                                                                                   and are willing to invest in major trends such as IoT, connected    cost savings they generate in their own production environ-
Organizing your people. And this is where a fundamental, but                                                                 cars and new mobility standards. The other side of IT investment    ment. They’ll only do that, though – and here we come full circle
often underestimated issue comes up: preserving team spirit                                                                  – conventional IT in corporate server rooms – is still dominated    – if they see that their customers treat them fairly and even-
despite anytime, anywhere collaboration. In other words,                                                                     by cost optimization.                                               handedly. And by customers, I also mean the departments that
when project teams stop meeting face-to-face because collabo-                                                                                                                                    the providers aren’t actively serving. That’s a problem I often
ration has become virtualized, I need a ‘virtual break room’                                                                 Five years ago, you highlighted the importance of                   see: many IT decisions are driven by extremely aggressive pric-
where they can meet regularly. Otherwise, they’ll start feeling                                                              predictive analytics for future mobility applications,              ing and purchasing terms. That hurts the IT provider, obviously.
isolated and alone, which will destroy their motivation and                                                                  particularly those that have to be highly secure.                   But it also hurts the customers’ own user departments. At the
productivity. HR departments, for their part, have to decide                                                                 Where do things stand today?                                        end of the day, I firmly believe that users don’t want products or
how much they want to protect employees from having – or                                                                     Predictive analytics has become a key technology in all the         technologies; they want solutions to their challenges. And
                                                                    Illustration: Cindy Schmid; Photo: Monika Holzhauser

even wanting – to be truly available 24/7. Responsible manag-                                                                use cases that we view as fundamental to future mobility sys-       today, you can only find the right solutions by partnering and
ers shouldn’t have to wait for works council representatives to                                                              tems in an IoT context. Its scope extends all the way to public     being willing to open up.
point out the risky waters that they’re steering their company                                                               transit and covers all mobility systems that depend on inter-
into. If they do, they’ve done something wrong.                                                                              actions to minimize the likelihood of failures – such as fatal       k.holzhauser@pac-online.com
                                                                                                                             traffic accidents – in an increasingly complex, interconnected          collaboration.t-systems.com
What technologies – from augmented reality to                                                                                environment. To put it another way, predictive analytics, and                  pac-online.com
artificial intelligence – do you think will need to be                                                                       everything that entails – including the cloud, which is the only
integrated the soonest?                                                                                                      platform that can process and analyze such vast amounts of
We think that there’s no honest way to tell right now. Artificial                                                            data – has become so important that it’s impossible to imagine
intelligence (AI), for example, has countless use cases at vary-                                                             smart travel and transportation without it.
FOCUS   Mobility
                                                                                                                                                                                                                — 23      Pioneer_Erik Brynjolfsson

 “We don’t
                                                                                                                                                                                                                                                                                                                 “WE HAVE TO RACE
                                                                                                                                                                                                                                                                                                                   WITH THE MACHINES.”
                                                                                                                                                                                                                                                                                                                   Erik Brynjolfsson,

measure
                                                                                                                                                                                                                                                                                                                   Professor of economics and
                                                                                                                                                                                                                                                                                                                   information technology

  productivity
growth                                                                                                                                                                                                                                                                                                             Résumé
                                                                                                                                                                                                                                                                                                                   Erik Brynjolfsson (born 1962), mathematician
                                                                                                                                                                                                                                                                                                                   and microeconomist, teaches at the Massachu-

   correctly.”
                                                                                                                                                                                                                                                                                                                   setts Institute of Technology (MIT) in Cam-
                                                                                                                                                                                                                                                                                                                   bridge and is one of the leading experts on the
                                                                                                                                                                                                                                                                                                                   economic consequences of the IT revolution.
                                                                                                                                                                                                                                                                                                                   His book, “The Second Machine Age”, describes
                                                                                                                                                                                                                                                                                                                   in great detail the impact of the IT revolution
                                                                                                                                                                                                                                                                                                                   on labor markets and society.

 ERIK BRYNJOLFSSON, A US RESEARCHER, IS CONVINCED
 THAT THE DIGITAL ECONOMY GENERATES VALUE.

  Anja Steinbuch                                                           measure the value that innovative IT companies                                                                                               ductivity and the ranks of millionaires are at all-time   really matters is the number of new jobs created to
                                                                                 generate. Using this method, he has found that                                                                                               highs – but employment rates and average incomes          sustain society as we know it. “The choice is ours,”
 HE BELIEVES IN COOPERATION. If man and ma-                                      disruptive business models like online networks                                                                                              are down. Our society is becoming increasingly di-        he insists.
 chine don’t work together, mankind will end up                                  and digital services create 300 billion dollars in                                                                                           vided. Automation and digitization are turning the             “Tomorrow’s jobs will be created in new com-
 losing, warns Erik Brynjolfsson. Often casually at-                             value each year – value that isn’t captured by the                                                                                           world of work upside down. “The middle class is dis-      panies and new industries with new products or
 tired with an open collar, this professor of eco-           Europe may          statistics or by the critiques that Gordon and Krug-                                                                                         appearing,” warns the economist. New jobs are only        services,” says Brynjolfsson. He has three sugges-
 nomics and information technology is at the                  either add         man based on them.                                                                                                                           available for unqualified or highly qualified workers.    tions to help make this vision a reality: “First, we

                                                           1.25
 center of the debate about the future of work in                                                                                                                                                                             So who’s to blame?                                        have to reinvent education. Don’t just memorize
 our digital era of computers and artificial intelli-                            HARNESSING TECHNOLOGY,                                                                                                                                                                                 facts; computers can already do that, after all. In-
 gence. His recommendation? To “race with the                                    STIMULATING THE ECONOMY                                                                                                                      REINVENTING EDUCATION                                     stead, our curricula should also teach creativity
 machines” as technological innovation picks up             trillion euros       Brynjolfsson has been researching economics and                                                                                              Technological progress has been driving these             and soft skills.” Second, entrepreneurship should
 the pace significantly over the next several years.           of gross          productivity since the 1980s. In his book “The Sec-                                                                                          changes in the labor market for the past ten years.       be promoted; it should be easier to establish new
 His viewpoint puts him at loggerheads with Rob-           industrial value,     ond Machine Age”, he describes the differences                                                                                               “But that’s nothing compared to what’s yet to             companies. And third, we have to rethink our anti-
 ert Gordon, a US economist who has pronounced                  or lose          between the first and second industrial revolutions:                                                                                         come,” says Brynjolfsson. Technology is growing           trust laws and tax policies. A negative income tax
                                                                                                                                         *Source: http://bdi.eu/media/user_upload/Digitale_Transformation.pdf

 technological innovation dead (see the top story                                “Computers and other digital advances are doing                                                                                              exponentially more powerful, and innovation is            could help absorb the negative impact of automa-

                                                           605
 in Best Practice issue 2/2016).                                                 for mental power what the steam engine and its de-                                                                                           moving faster than expected. For example, com-            tion on low-income families. That requires a coun-
      While Robert Gordon and Nobel laureate Paul                                scendants did for muscle power.” This is a different                                                                                         puter chips double in processing power roughly            try with a mature democracy and a strong
 Krugman pooh-pooh the value created by digital                                  technology, though – one that will have a much                                                                                               every two years. Robots are already diagnosing            government, notes Brynjolfsson. One such coun-
                                                             billion euros
 transformation, Brynjolfsson is a fervent believer                              broader impact. Brynjolfsson’s vision has been ap-                                                                                           medical disorders and scanning millions of docu-          try is Switzerland. “Few countries are better pre-
                                                               of value
 that digital progress adds value. “We just don’t                                plauded by politicians and industrialists – but he                                                                                           ments for attorneys in order to find the perfect          pared for change than Switzerland.” It considers
                                                        by 2025, according to
 measure productivity growth correctly.” At first                                believes it should be more widely embraced.                                                                                                  precedent for a particular case. Self-driving cars        groundbreaking ideas such as an unconditional
                                                        Roland Berger Strategy
 glance, free services like Wikipedia, Skype and                                 Denial is not an option, he warns. “There is too                                                                                             were considered science fiction only a few years          basic income. “I see Switzerland as a model for
                                                            Consultants*
 Google don’t seem to add anything to gross do-                                  much stagnation in Europe and the US,” he says.                                                                                              ago. Today, prototypes bristling with sensors and         the future,” says Brynjolfsson.
                                                                                                                                         Photo: Evgenia Eliseeva

 mestic product. “But when you look closer, you                                  Policymakers need to promote entrepreneurship                                                                                                self-learning systems are cruising the streets.
 see that they certainly do add value.” While re-                                and eliminate obstacles that prevent start-ups from                                                                                                How many jobs will be lost to digitization           bestpractice@t-systems.com
 searching at the Massachusetts Institute of Tech-                               harnessing new technology to stimulate the econ-                                                                                             and automation? It’s a common question, but                   www.t-systems.com/digital-transformation
 nology (MIT), Brynjolfsson developed a method to                                omy. His current assessment is this: prosperity, pro-                                                                                        Brynjolfsson believes that it misses the point. What                 ebusiness.mit.edu/erik
FOCUS                  Mobility
                                                                           — 25                     Automotive

                                                                                                                                                                2.8cm
                              From
                                                                                                                                                                are added to the braking distance when
                                                                                                                                                                a self-driving vehicle going 100 km/h is
                                                                                                                                                                stopped remotely over a 5G network.
                                                                                                                                                                2.40 meters would be added under the
                                                                                                                                                                current standard.

                              automobile
                                                                                                                                                                Source: www.mobileworldlive.com

                              to autopilot.
                                                                             THREE THINGS WILL REVOLUTIONIZE THE FUTURE OF MOTOR VEHICLES:
                                                                             CONNECTIVIT Y, ARTIFICIAL INTELLIGENCE AND PREDICTIVE ANALY TICS WITH
                                                                             BIG DATA . TODAY’S CARS ALREADY FIND THEIR OWN PARKING SPACES,
                                                                             AUTOMATICALLY PAY PARKING FEES, REPORT THEIR STATE OF WEAR TO AUTO

5G
has a latency of 1 millisecond.
                                                                             REPAIR SHOPS AND FIND THE CHEAPEST GAS STATION. CARS OPEN THEIR
                                                                             TRUNKS TO ACCEPT PACK AGES IN PARKING SPACES OR SEND ESSENTIAL DATA
Humans cannot perceive a delay that
short. However, 25 milliseconds can                                          TO SHOPPERS’ CELL PHONES ON THE SHOWROOM FLOOR. AS CARS BECOME
be too much for a driverless vehicle or
a surgical robot. 5G will respond                                            MORE CONNECTED, THEY ARE ALSO GAINING AUTONOMY. DRIVING FROM THE
within around one millisecond.
Source: www.sueddeutsche.de                                                  DEALERSHIP TO THE PARKING SPACE OR FROM THE GAS STATION TO THE
                                                                             REPAIR SHOP IS JUST THE FIRST STEP.

                                                                              Guido Reinking

                                                                             WHILE THE ELECTRIC CAR is not the blockbuster          Group. “Cars will become smart devices: intelli-              fic information, it then displays the perfect time to
                                                                             everyone thought it would be – at least not in Ger-    gently networked, seamlessly integrated and per-              leave in order to arrive at the next scheduled ap-
                                                                             many – the connected car is conquering the market      fectly tailored to each user’s unique needs. We’ve            pointment on time. Not only that, but the destina-
                                                                             without financial incentives or special lanes. Every   demonstrated this vision in the first version of BMW          tion is already loaded in the navigation system
                                                                             day, customers adopt brand-new services enabled        Connected.”                                                   when the driver gets into the car. BMW Connected
                                                                             by fast, stable and secure Internet connections.                                                                     also helps import locations and special points of
                                                                                  One of them is BMW. “Digitization will mas-       DATA CENTERS ON WHEELS                                        interest from other apps. Drivers of hybrid or BMW i
                                              Illustration: Cindy Schmid

                                                                             sively change how we use cars in the years to come.    BMW Connected supports seamless communica-                    vehicles can even check their vehicle’s range or
                                                                             Soon, we will have digital services that completely    tions between the car and the driver’s smartphone,            state of charge while still outside the car and adjust
                                                                             connect us to the world around us, on the road and     Apple Watch or other devices. For example, an                 their travel plans accordingly.
                                                                             at home,” explained Dieter May, Senior Vice Presi-     electronic smartphone calendar can communicate                      Thanks to a solution jointly developed by BMW
                                                                             dent Digital Services and Business Models at BMW       with the car navigation system. Using real-time traf-         and T-Systems, BMW Connected users can surf the
FOCUS                     Mobility
                                                                                                                                                                                                          — 27                        Automotive

                                       Internet from their car at maximum LTE speeds. The         Deutsche Telekom in international committees for
                                       solution supports a wide array of end-user devices,        years to develop an open eSIM standard that is not
                                       from BMW Touch Command to laptops, tablets and             only versatile, but also reliably wards off abuse, data
                                       mobile phones from various manufacturers. All              theft and hacking attacks on cars. Security matters:
                                       told, up to ten devices can link up to the BMW             first-generation connected cars are vulnerable, as                                                        There has been over

                                                                                                                                                                                                            30 %
                                       WLAN hotspot at a time. The devices communicate            successful hacks have repeatedly demonstrated.                                                                                                                       Showroom practice
                                       via a SIM card embedded in the vehicle and a                     Connected cars account for 80 percent of new
“CARS WILL BECOME                      WLAN hotspot obtained through Deutsche                     vehicles. Many see this as the start of a beautiful
                                       Telekom’s HotSpot Drive service. That makes it pos-        friendship: automobiles are moving from dumbly                                                                                                                       AUDI’S POCKET-SIZED
SMART DEVICES,                                                                                                                                                                                              annual growth in car-sharing
                                       sible to access the Internet across Europe and in
                                       non-European countries. Users can easily sign up
                                                                                                  following orders to intelligently interacting with driv-
                                                                                                  ers. Others, by contrast, are worried: these “data                                                        members in North America and                               CAR SALESMAN.
PERFECTLY TAILORED                     for rate plans after registering for the service and       centers on wheels” will be juicy targets for cyber-                                                       Germany since 2000.
                                                                                                                                                                                                            Source: www.mckinsey.de
                                       switch between them as needed.                             criminals. That’s why security comes first when
TO EACH USER’S                               Reinhard Clemens, Member of the Board of             digitizing motor vehicles. Effective cyber protection
                                       Management Deutsche Telekom AG and CEO of                  is the only way for connected cars to travel safely on
UNIQUE NEEDS.”                         T-Systems, noted, “We are providing cars with the          the data superhighway. To address this concern,
                                       best possible networks. Car digitization depends           T-Systems and Deutsche Telekom have developed
Dieter May, SVP Digital Services and   heavily on IT and telecommunications. Being an ex-         an end-to-end security solution – a form of cyber
Business Models BMW Group              perienced automotive industry partner, we are              defense as a service – for the entire automotive eco-
                                       thrilled about this alliance.” This also marks the first   system, from mobile security to backend security.
                                       time that motor vehicles are being equipped with
                                       an integrated eSIM. This device can be updated             PROTECTING CARS FROM CYBER
                                       over the air and, unlike old SIM cards, doesn’t have       CRIME 24/7
                                       to be physically replaced. eSIM is the brainchild of       The solution’s core is an application known as
                                       Giesecke & Devrient (G&D). The banknote, credit            Embedded Security Locks, or ESLOCKS for short.
                                       card and SIM card specialist has been working with         This cloud-based intrusion detection system recog-

                                                                                                                                                                                                                                                                       WHAT WILL TOMORROW’S CAR DEALER-                    approach each car on the sales floor, an “iBea-
                                                                                                                                                                                                            nizes cyber attacks launched against the car and           SHIP LOOK LIKE? Can brick-and-mortar busi-          con” device in the vehicle beams information
                                                                                                                                                                                                            immediately takes countermeasures, for example if          nesses survive in the Internet age? These           onto their smartphone via Bluetooth. They can
                                                                                                                                                                                                            a hacker tries to disable the windshield wipers dur-       questions hit home for Germany‘s 7,400 inde-        download vehicle data, product images and
                                                                                                                                                                                                            ing a rainstorm. The self-learning system doesn’t          pendent car dealers. They currently operate         videos from the cloud onto their smartphone
                                                                                                                                                                                                            just spot anomalies in a single vehicle, though; it        around 38,000 dealerships, but that number is       with a single click.
                                                                                                                                                                                                            also tracks irregularities across entire fleets. The re-   dwindling. Now, a new answer has come from               Customers don’t just see technical details
                                                                                                                                                                                                            sulting insights are bundled into constant security        the Audi Center in Stuttgart: digitization. “By     and upgrade options. “They also see special fi-
                                                                                                                                                                                                            updates for the entire vehicle network.                    the time customers come to the showroom,            nancing offers and sales promotions,” said
                                                                                                                                                                                                                 Integration is the secret to e-mobility success.      they’ve already researched their desired model      Arena. Customers can save the information and
Fully autonomous driving systems                                                                                                                                                                            This has been demonstrated in Austria by the               on the Internet,” said Aaron C. Arena, General      compare it at their leisure once they get home.
are expected to reduce accidents                                                                                                                                                                            SEAMLESS project (Sustainable Efficient Austrian           Manager of Audi Center Stuttgart in Feuerbach.      Dealers, for their part, know exactly what mod-

     45 %
                                                                                                                                                                                                            Mobility with Low Emission Shared Systems). The            A few years ago, the average new-car buyer          els visitors looked at, and they can provide spe-
                                                                                                                                                                                                            SEAMLESS consortium, comprising T-Systems, the             walked into dealerships five times before clos-     cific information or suggest a test drive or
                                                                                                                                                                                                            Austrian Institute of Technology and Austria Post, is      ing the deal. Today, it’s only 1.4 times. That      one-on-one consultation to prospects who have
by
                                                                                                                                                                                                            working on a multimodal mobility solution. This sys-       raises the stakes for each visit.                   provided their contact details.
on highways,
                                                                                                                                                                                                            tem, which will initially focus on corporate fleets,            The Audi Center in Stuttgart, the largest in        There’s another benefit, too. The system is

     27%
                                                                                                                                                                                                            lets users choose from a variety of transit options:       Europe, has therefore invested in a T-Systems       available outside regular dealership hours, on
                                                                                                                                                             Illustration: Cindy Schmid; Photo: Audi AG

                                                                                                                                                                                                            not just cars, but also buses, trains and other            Customer Experience Management (CEM)                Sundays and holidays, for example, and at
                                                                                                                                                                                                            means of transportation. SEAMLESS should be                module: “Showroom Proximity”. Arena ex-             showroom windows. T-Systems engineered the
and
                                                                                                                                                                                                            market-ready in two years. When it launches, users         plained, “We’re starting to digitize car dealer-    CEM solution with the Stuttgart Audi Center and
on state roads.
                                                                                                                                                                                                            in the Vienna metro area – and later in other Aus-         ships.” The moment customers reach the              developed the interface for software and vehicle
Source: www.swissre.com
                                                                                                                                                                                                            trian cities – can simply enter their travel dates and     dealership door, they are invited to download       data so it would specifically address auto deal-
                                                                                                                                                                                                            destinations and then reserve and pay for the best         the CEM app onto their smartphone. The app          ers’ needs. It now plans to extend the module to
                                                                                                                                                                                                            possible form of transportation, from bike sharing         steers them through the showroom. As they           include used-car sales and auto service.
                                                                                                                                                                                                            to electric cars to train tickets.
FOCUS                   Mobility
                                                                                                                                                                                         — 29                      Automotive

                                                                                            Organizations see the biggest challenges of
                                                                                            car connectivity in:
                                                                                                                                                                                                                                                     Interview
                                                                                            72 %
                                                                                            Bundling third-party services

                                                                                            70 %
                                                                                                                                                                                                                                                     DIGITAL TRANSFORMATION IS
                                                                                            Defining the billing method
                                                                                                                                                                                                                                                     HERE TO STAY.
                                                                                            55 %
                                                                                            Changing the corporate strategy                                                                                                                          Volkswagen Group CDO Johann Jungwirth on the challenges faced by auto
                                                                                                                                                                                                                                                     manufacturers due to digitization and how VW is driving change at three levels:
                                                                                            52 %                                                                                                                                                     the customer, the product and the company.
                                                                                            Splitting up income among partners
                                                                                            Source: PAC, Connected Car in Europe, 2015

                                                       43 %
                                                       of Europe’s 250 automotive companies
                                                       are already working on implementing
                                                                                                                                                                                                                                                     The digital transformation of the
                                                                                                                                                                                                                                                     automotive industry is running on four
                                                                                                                                                                                                                                                                                                      real disruption of the automotive industry
                                                                                                                                                                                                                                                                                                      is happening simultaneously along three
                                                       projects for connected cars.                                                                                                                                                                  different tracks: production, product,           different axes: the transformation from the
                                                       Source: PAC, Connected Car in Europe, 2015                                                                                                                                                    sales and in-house data administration.          internal combustion engine to the electric
                                                                                                                                                                                                                                                     Which area do you think offers the               motor; the move from human drivers to self-
                                                                                                                                                                                                                                                     greatest profit potential?                       driving vehicles; and the shift from owned
Much of the development focuses on electric            used with Austria Post’s corporate fleet. However,                        VPN: THE SECURE TUNNEL                                    driving vehicles produce and consume vast                 We’ve defined three main tiers at Volkswa-       to shared mobility. We will see the biggest
cars. “People going on long trips get cars with        SEAMLESS is also working with a car sharing pro-                          At the same time, T-Systems is working to refine          amounts of data – from road conditions to nearby          gen: digital customer, digital products and      improvement in traffic safety – which could
enough battery charge to reach their destination.      vider that serves smaller communities. The proj-                          central information portals for carmakers. Drivers        hazards to speed limits and traffic information –         digital company, or “D cubed”. Our activi-       potentially reduce traffic accidents by up to
If you’re only driving a short way, you are given a    ect therefore has the potential to give tremendous                        who log into the portals can communicate with             conventional cellular networks struggle to keep up.       ties revolve around the customer, the user       90 percent – when we introduce safe driver-
car with less charge,” explained Fritz Vogel, Part-    impetus to e-mobility.                                                    their cars from anywhere and download relevant            That is why T-Systems is collaborating with the           and the person. Digital transformation           less vehicles.
ner and CEO of Enio. The Austrian start-up speci-            “Like many innovations, car sharing relies on                       vehicle data. In the remote online version, they can      German Research Center for Artificial Intelligence        needs to be taken seriously. Some trends
alizes in smart, connected charging infrastructure     cloud applications that intelligently link data and                       even turn on the car’s block heater or lock or            to build a communications system based on the             are here-today, gone-tomorrow hype. Not          What’s your mobility vision? What
and operates 3,000 charging stations in Europe.        information from multiple sources and provide                             unlock its doors from afar. The systems also help         future 5G mobile network standard. The German             digitization, though. It’s here to stay. Digi-   stages do we still have to complete to
As a member of the SEAMLESS consortium, Enio           anytime, anyplace access to it,” explained Dr.                            drivers in the event of an accident, breakdown or         state of Saarland, in particular, is supposed to serve    tal transformation will disrupt many dif-        finally achieve the goal of autonomous
is seeking ways to charge vehicles primarily du-       Marc Schmickler from T-Systems. The SI expert is                          maintenance event – including scheduling                  as the nation’s pilot region for this vital technology    ferent industries. And we know from              driving? Or is that not the real goal?
ring peak periods for green power production           convinced that “the implementation of innova-                             appointments at a repair or service shop.                 that will enable safe, secure driverless cars. Once       experience that established players don’t        The real goal and vision is this: mobility for
since clean electricity will be cheap, or even free,   tions cannot be permanently separated from an                                  To shield data and in-car systems from hack-         the system is rolled out, it will provide smart traffic   always emerge from disruptions as the            everyone! We have a huge opportunity to
during these times.                                    organization’s standard IT set-up, but rather re-                         ers, the vehicle communicates with the OEM’s con-         management by communicating directly with vehi-           winners. That’s why we’re proactively driv-      democratize mobility and improve social

                                                                                                                                                                                                                                                                                                                                                        Illustration: Cindy Schmid; Photo: obs/Auto Bild/Volkswagen AG
                                                       quires an integrated strategy for a holistic digital                      nected car platform over a secure virtual private         cles, preventing accidents and traffic jams and           ing this change ourselves at every level in      mobility by introducing self-driving vehi-
E-MOBILITY NEEDS INTERACTIVE                           concept”.                                                                 network (VPN). This specially protected connection        thereby improving safety and reducing pollution.          order to be one of the winners.                  cles and rolling out sizable shared auton-
CHARGING INFRASTRUCTURE                                      One fast, painless way to the cloud is Cloudi-                      allows data to be securely transferred. The architec-     Simply alerting vehicles to available parking spaces                                                       omy fleets across the globe. We can enable
“Car sharing is the ideal application for electric     fier, a managed service offered by TSI Global IT. It                      ture also acts as a gateway to external service           during peak periods could reduce downtown traffic         Connectivity is an important aspect of           sustainable, personal mobility for everyone
cars,” said Vogel. It avoids many of the drawbacks     quickly and reliably transforms applications to                           providers and anonymizes requests sent from the           volumes by up to 30 percent. In the end, rush-hour        digitization. How connected do we have           – even the blind, sick, old, very young or less
that stop companies and individuals from buying        cloud services on a defined schedule for a fixed                          car in order to meet customers’ demanding privacy         chaos could become a calm, orderly procession.            to become in order to see significant            well-off – and significantly improve their
a vehicle. Car sharing users don’t have to worry       price, or simply builds cloud-native applications                         expectations. One manufacturer already has up to          All thanks to connected mobility.                         improvements in traffic safety? How can          quality of life. And we can reclaim the
about range, charging infrastructure or high           from the ground up for customers. “Cloudifier is a                        2.5 million vehicles registered on the platform that                                                                we get to the point where all makes of           38,000 hours of time that the average per-
sticker prices. They pick up a car that is charged     customer promise that enables organizations to                            T-Systems operates for it.                                                                                          vehicles speak the “same language”               son spends at the steering wheel. In the fu-
enough for their trip. And the operating costs are     easily and rapidly deploy business ideas and in-                               Connecting vehicles to drivers, central back-         hermann.haenle@t-systems.com                    worldwide?                                       ture, we’ll be able to read, study, work,
virtually unbeatable thanks to lower energy costs      novation projects while retaining full cost and per-                      ends and the surrounding environment is essential              www.t-systems.com/automotive                  We’re not primarily focused on getting the       relax, play with the kids or enjoy the
than diesel or gasoline. The system will first be      formance control and visibility.”                                         for autonomous mobility. However, since self-                         www.t-systems.com/cloudifier                  vehicles to speak the same language. The         scenery during the drive.
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