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BEST

PRACTICE
Issue 2 / 2016

IT SECURITY HAS NEVER BEEN


MORE CRUCIAL

Combat
cybercrime

Pick up
the pace
THE TIME IS NOW

STATUS QUO DIGITIZATION


CIO TALK KAESER
CLOUD POWERHOUSE BIERE
IT TRANSFORMATION LINDE
SMART AIRPORT COLOGNE/BONN
INTERNET OF THINGS
SECURITY SPECIAL

Issue 2 / 2016
BEST PRACTICE 2 / 2016

BEST
PRACTICE

SIMPLE AND SAFE SECURITY


ANALYZE IT WITH EXPERTON
CORPUS SIREO SECURITY FROM THE CLOUD

EDITORIAL
3

WE NEED
TO TALK.
Reinhard Clemens, Member of the
Board of Management at Deutsche

Photo: Deutsche Telekom AG

Telekom, and CEO of T-Systems.

It all began ten to twelve years ago, when the first cloud delivery models arrived on the scene. Back then, very few of us
could have foreseen the cloud becoming the powerful force it
is today. Cloud technology has enabled processing power
and storage capacity to be provisioned in completely new
ways. More than that, though, it is a genuine driver of digitization. It is not just reshaping individual companies, processes
and business models. It is revolutionizing entire industries
at breakneck pace.
It is clear that the fourth industrial revolution is truly worthy of the name. Yes, Brian Chesky had stayed in a hotel before founding Airbnb. And yes, Garrett Camp had taken a taxi
before launching Uber. Neither possessed more extensive
industry-specific insights prior to starting up, but this has not
been a handicap. Airbnb and Uber epitomize the way that
fledgling platforms can become major players almost overnight. In fact, these new competitors are entering the fray
from completely different industries and markets.
There are two reasons for their unprecedented success.
First, the rapidly increasing availability of simple, affordable
digital technology. Examples include narrowband IoT (NBIoT) a low-power wide area technology and edge computing, which is adding computing power to our devices, against
the backdrop of the Internet of Things. This trend enables
businesses including older, more established competitors
to accelerate growth and digitization at extraordinary
speed.
The second major factor is the customer, who has a very
clear idea of what they want, and is unwilling to accept closed
systems. Apple the masters of lock-in is keenly aware of
this fact. In the quest to deliver the best possible customer
experience, it is no longer enough to simply improve the exist-

ing product. As the CIOs interviewed in our top story confirm,


the task is to enhance the entire customer journey so they
never consider walking away, even if they are under no contractual obligation. This entails employing and combining the
best of the best, and avoiding proprietary systems.
Against this background, if anyone believes they have
managed to invent the non-plus-ultra product or service, they
are living dangerously. I am convinced that thriving and surviving in the digital age will involve forging alliances within an
open system, where joint customers are asked: What can I
do for you?
However, in many cases, we need to start by developing
the necessary ecosystems through joining forces. And we
cannot just go through the motions. We need to put these
partnerships into practice. A prime positive example here is
the mapping service, purchased by carmakers Audi, BMW
and Daimler. A more negative instance: there has been very
little progress in industrial-scale manufacturing of battery
cells in Germany.
We need the courage to develop real, strong partnerships, and not simply pretend to be engaged in dialogue. In
our own industry, we are already making progress in this regard, for instance in the development of IT quality and security standards. I am confident that these will make life far
easier for business and end-customers alike. The more genuine the dialogue, the faster we will achieve our aims. With this
in mind, this issue of Best Practice is an open invitation to our
readers to play an active part.

Best regards,
Reinhard Clemens

CONTENTS

12

Issue 2/2016

11

Security Special

04

<1> Anyone who does not digitize

NO SPOILSPORTS PLEASE.

now is risking a failed start.

TOP STORY. Security and digitization are intrinsically


linked. In order that one does not slow the other down, only
solutions that are easy to avail of and simple to operate
and run are of use to companies.

<2> Data center Biere.


<3> Kaeser CIO Falko Lameter (r.)
and Bernd Wagner, SVP Sales
Germany at T-Systems.
<2>

<1>

Ready to
Go

13
28

TOP STORY. The hype about digitization has reached its peak. Now its
time to get to work and to catch up with the first mover, as well as your
own competitors. IT chiefs from Lufthansa, Ford and Airbus, among others,
explain where digitization builds up the most pressure or, in the case of the
COO for KOMARIS, how public cloud services help to speed things up.

20

SECURE DIGITIZATION.

GUEST BOOK. For the automotive specialist and industry consultant,


Guido Reinking, defending against cybercriminals is a non-stop task
comparable to a 24-hour race. With one difference. It begins anew
every day.

22

MARKET BAROMETER.

28

34

HOUSE OF CLOUDS.

DATA CENTER BIERE. The highest level of security and reliability possible
paired with German data protection make the newest T-Systems data
center and its planned expansion the top address for companies worldwide, that want to have their cloud applications managed.

32

24

CIO TALK WITH KAESER.

DIGITIZATION. Kaeser CIO Falko Lameter on the high availability of


networks as a must-have and apps help to translate mobility in business
as an interface between people, IoT and providers.
<3>

SILENT TRANSFORMATION.

LINDE. The industrial gases manufacturer is migrating its core applications landscape of 160 business applications worldwide to the new DCS
3.0 platform from T-Systems.

36

SOUGHT-AFTER SKEPTIC.

PIONEER. Evgeny Morozov, one of the worlds leading Internet philosophers, appeals for responsibility on the part of governments, companies
and every individual in the course of advancing digitization.

TREND WATCH. Who will make it off the starting blocks and how quickly
with their digital transformation? And where is digitization already adding
value? Progress in figures.

24

SECURITY FROM THE CLOUD.

CORPUS SIREO. As one of the biggest real estate managers in


Germany, the medium-sized enterprise combines a wide variety of
security technologies on a managed cloud platform to protect their
real estate values against hackers.

BEST PRACTICES

Photos: Dana Neibert/Getty Images, Deutsche Telekom AG, Marcel Hunger; Cover: Victor Torres/Stocksy

PICK UP THE PACE.

HOMEWORK.

ANALYZE IT. Heiko Henkes, Director Advisor of the


Experton Group, states that security providers
must make easy application and availability of their
products the standard.

DIGITIZATION
12

12

SMART AIRPORT.

AIRPORT COLOGNE/BONN. For whom, if not airline passengers, should


the customer journey be the focal point of a companys IT with cloud
technologies, big data and IoT.

40

A NEW ERA.

CLOUD OF THINGS. The aim is to increase productivity,


when companies such as the shipping company Deutsche
Afrika Linien (DAL) and the electrical engineering specialist
Pfannenberg make information and its evaluation available
in real time using IoT solutions.

ABOUT THIS
PUBLICATION
Published by:
Roger Voland,
T-Systems International GmbH
Heinrich-Hertz-Str. 1
64295 Darmstadt
Publication Manager:
Gina Duscher
Executive Editor:
Tatjana Geierhaas
Editor-in-Chief:
Thomas van Ztphen
(responsible for content)
Organization: Anke Echterling
Art Direction: Jessica Winter
Layout: Barbara Geising, Jennifer
van Rooyen, Silke Weibach
Graphics Manager: Susanne Narjes
Operation Manager:
Maike Bamberg
Translation: Profi Fachbersetzungen GmbH, Martin Crellin
Copywriting and Translation
Authors of this issue:
Peter Gaide, Sven Hansel,
Roger Homrich, Michael Hopp,
Thorsten Rack, Guido Reinking,
Anja Steinbuch, Thomas van Ztphen
Publisher:
HOFFMANN UND CAMPE X
A trademark of HOFFMANN UND
CAMPE VERLAG GmbH, Harvestehuder Weg 42, 20149 Hamburg Tel.
(040) 441 88-457, E-Mail: cp@hoca.de

General Managers:
Christian Backen, Christian Schlottau,
Alexander Uebel
Production Manager at
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Sandra Heiske
Production: Claude Hellweg
Litho: Olaf Giesick Medienproduktion, Hamburg
Printing:
NEEF + STUMME premium
printing GmbH & Co. KG, Wittingen
Copyright:
2016 by T-Systems. Reproduction
requires citation of source and submission of a sample copy. The content of
this publication does not necessarily
reflect the opinion of the publisher.
Read it yet?
Best Practice Online:
www.t-systems.com/bestpractice
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FOCUS
13

Digitization
Top Story

56 %

of the companies fear that,


in regard to digitization, it could
already be too late for them.
Source:
Roland Berger Strategy
Consultants

Digitization
now!
BUT WHAT DOES THE REALIT Y OF BUSINESSES AND ENTERPRISES LOOK
LIKE? HAS DIGITIZ ATION ALREADY EXHAUSTED ITS POTENTIAL?
FROM FIRST- HAND EXPERIENCE, CIOS HAVE COME TO A DIFFERENT
CONCLUSION. BASED ON THEIR ASSESSMENT OF THE OPPORTUNITIES
AND CHALLENGES OF TODAYS HOT TEST TOPIC, THE WORK IS ONLY
JUST BEGINNING.
<Copy> Thomas van Ztphen

CORPORATE REALITY CHECK


Photo: Dana Neibert/Getty Images

DIGITIZ ATION HAS NOT YET LIVED UP TO THEIR EXPECTATIONS.

*Source: http://blogs.forrester.com/dan_bieler/

SCIENTISTS, PIONEERS AND INVESTORS ARE NOT FULLY CONVINCED

FOR ECONOMISTS SUCH AS ROBERT GORDON, the case is


clear: The socio-economic progress associated with digitization
has reached its zenith and will only slow down from now on. The
productivity researcher from the University of Chicago is something akin to the doyen among American economists. Digitization
has also failed to bring about any leaps in development comparable to the great inventions of the computer age the PC itself for
example, the Internet of course and, to a lesser extent, cloud computing. Compared with these, the Uber transportation service portal, a new iPhone or the daily flood of innovative apps seem like
rather small steps without any really tremendous technological or
social effects on economic added value. And Gordon is not alone
in believing this. Delivering a well-placed stab against popular
messenger service Twitter, ex-PayPal CEO and former major Facebook shareholder Peter Thiel makes this point even more directly:
We wanted flying cars and we got 140 characters.

Whether it is true disillusionment or just high-level moaning


what is the significance of the critical voices coming from the
science and investor camps for companies? Is that all digitization has to offer? The reality check from analysts such as Dan
Bieler, principal at Forrester Research, seems to disagree. The
hype surrounding digitization might be over but for companies

this means nothing more than: Now its time to get to work.
When it comes to the fundamental effects these new technologies have on business processes and models, many companies
are just at the very beginning. According to Bielers perspective
on the corporate reality: Digitization is a difficult task that we
have to tackle in many sectors. It will keep us busy well beyond
the next ten years.*
In other words: When the hype is declared over, it is just beginning to become part of reality. And this is a necessary step.
For practitioners such as Cisco CEO John Chambers, digitization is leading to the biggest technological and economic disruption in history. With the result that 40 percent of our enterprise
customers will become irrelevant in their respective markets over
the next ten years, says Chambers.
The strategy consultant for Roland Berger assesses this differently, though no more optimistically. According to them,
62 percent of management worry that their company is not taking digitization seriously enough. Even more concerning:
56 percent of the companies fear that, in regard to digitization, it
could already be too late for them. Right at the top of this list of
errors and failures, market observers cite the fact that business
processes are not consistently mapped in digital systems, even
though according to their prognoses analogue and digital
business models will no longer coexist in the future.

FOCUS
15

Digitization
Top Story

PRIORITY LIST 2016


What is important
for companies?

>>> BLURRING BOUNDARIES

PUT TING THE CUSTOMER

31 %

59 %

Cloud, mobile
computing, IoT,
Industry 4.0

Security

AT THE CENTER OF ALL


PROCESSES MEANS A
RADICAL CHANGE FOR IT.

Source:
Bitkom-Technology Radar

AS THE BOUNDARIES
BET WEEN DATA WAREHOUS ING, BUSINESS ANALY TICS
AND REAL-TIME- DRIVEN
INSIGHTS ARE BLURRING.
Roland Schtz, CIO Lufthansa

IN THE FUTURE WE WILL HAVE


TO LEARN, IN COLL ABORATION
WITH OUR CUSTOMERS, HOW TO
MAKE THE MOST OF THE DATA
THEY PROVIDE FOR US. WE NEED
TO LOOK BACK AT OUR PROD UCTS FROM THE CUSTOMERS
POINT OF VIEW AND ASSESS:
WHAT DETERMINES THE REAL
VALUE OF OUR PRODUCTS FROM
THEIR PERSPECTIVE?
Ursula Soritsch-Renier, CIO Sulzer

The bottom line is that there are three vital components which make up the
framework for every digital transformation: Business processes, digital systems
as a technological basis and innovative business models. Only a combination
of all three components can lead to digital transformation with the most added
value a significant increase in customer benefits. And this is where companies make cardinal error number two: Many still fail to put the customer at the
absolute center of their activities.

CUSTOMER BENEFITS PRIMUS INTER PARES AMONG


THE ADDED VALUES
Customer-centric is a point on which CIOs like Ursula Soritsch-Renier of the
Swiss industrial corporation Sulzer agree with the analysts: In the future we
will have to learn, in collaboration with our customers, how to make the most of
the data they provide for us. The Austrian is one of 40 IT Heads who attended
CIO Move, the annual mobile summit for the IT industry, last May (see page
4 ff. in Security Special: Top Story). For example, when it comes to making
products intelligent, says Soritsch-Renier, we always look ahead, to the customer. In the future, however, it will be even more important to look back at our
products from the customers point of view and to assess: What determines the
real value of our products from their perspective?
Under the motto Hop on the Train, Munich Economics Professor Helmut
Krcmar organized the Move for the third time, this time from London via Paris to
Nice. Lufthansa-CIO Roland Schtzs likewise answered the hosts compulsory
question about each participants top priorities with customers. For him, the
airline must offer the best at all times no matter how it is asked for. Putting the
customer at the center of all processes in this way means a radical change for IT.
Because the borders between traditional data warehousing, business analytics
and real-time-driven insights are blurring. This means we have to create the
sharpest customer profiles possible in order to offer each passenger what he
wants. Especially above the clouds. The passenger has to sit there for several

Photos: archimede/Photocase, Sulzer AG, Lufthansa AG

>>> THE CUSTOMERS PERSPECTIVE

hours, bored and strapped in, but we know him and his
preferences personally and can make this time useful for
him. Furthermore, travel is no longer an isolated act, but
rather is embedded in ones life as a whole, sometimes beginning and ending weeks before and after the actual journey. No matter what stage in this customer journey, we
welcome every resource that digitization has to offer across
all distribution channels.
But customer data, software and hardware are just
one side of it. There is another challenge that is barely noticeable at first glance Change Management. Oliver
Reindl, CIO of Cologne/Bonn Airport summarizes this
with the keyword internal digitization: the comprehensive
changes to real processes, mentalities and responsibilities that have to go hand-in-hand with new digital services
to ensure their successful implementation (see page
36 ff.: Cologne Bonn Airport). The IT Head explicitly includes himself and his department of 70 employees in this
transformation and the challenges presented by digitization. We must all question our routines and habits and to
some extent reinvent ourselves, he says. This is not always easy, but radical technological change is making it
necessary.

In the case of airports, where added value chains are already shifting to nonaviation areas, in that airports now achieve an ever greater proportion of their
revenue from shopping, catering, parking services and in particular from
rental, digitization in other industries is successively turning successful core
businesses on their heads. Example Automotive: Of course our core business
is still selling cars, says Roopak Verma, IT Director EMEA from Ford. But in the
future, the group will have to turn mobility in particular into monetary value
creation. As a result, the company is transforming from a car company to a
data company with tons of gigabytes of new data every day. The objective is
to gain maximum benefit from this data for the customers, because that is exactly what determines its value.

WITHOUT SECURITY, NO DIGITIZATION


Value is a good keyword. Because it ensures that data must be one thing
above all else: secure. For the first time in 2016 security has been named the
number one high-tech issue on the Bitkom-Technology Radar by 59% of companies, ahead of cloud computing and Industry 4.0, big data, Internet of Things
and mobile computing.
For Dr. Ferri Abolhassan, Head of the T-Systems IT Division and responsible for Group-wide telecommunications security, this shift in the priority list for
IT Heads is only logical. Security is the key to digitization. It is the basis for ensuring that digitization as exponential as it is actually works and remains
reliable (see page 4 ff. in Security Special: Top Story). Because hackers do
not sleep. Their attacks are becoming more sophisticated and the economic
damage caused by Internet crime increases every year.
According to a cyber security strategy study carried out by Price Waterhouse Coopers in May of this year, 99 (!) percent of companies believe that
the issue of cyber security is becoming more and more important for Germany as a business location. And not just the protection of data but of all the
technologies used by companies.

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