Company profile of T-Systems International GmbH, one of the leading ICT specialists headquartered in Frankfurt/Main
Strategy

Using the opportunities of digitization along with the customer

T-Systems is the corporate customers unit of Deutsche Telekom. Building on a global infrastructure of data centers and networks, T-Systems operates information and communication technology (ICT) systems for multinational corporations and public sector institutions. T-Systems is pursuing the mission to shape the future of a connected business world and society by creating added value for customers, employees and investors through innovative ICT solutions.
T-Systems has divided its operational activities into three dedicated management divisions: the Telecommunications (TC) Division, the Information Technology (IT) Division and the Digital Division (DD). Each has entrepreneurial responsibility for the entire value chain within their designated business area: from product development, to sales, to production and delivery.
Best Practice 1-2016
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This product-oriented strategy enables T-Systems to meet diverse customer requirements across all lines and industries. The TC Division will extend the telecommunications activities both in Germany and internationally, and will ensure the closer integration of the business processes of all relevant units within the Deutsche Telekom Group. The IT Division serves the demand for conventional IT services, system integration, and outsourcing.
This allows the company to focus on state-of-the-art technological trends. The information and communication technology sector is currently undergoing changes that have a major impact on companies of every size and in every industry: Cloud computing and the mobile solutions that build on them, along with big data combined with social media, are turning existing business models on their heads. These disruptive technologies make completely new demands on IT security – not least due to the exponential increase in cyber crime.
Three Communications Megatrends shape the global information and communication technology market:
  • More devices: The number of networked devices is increasing rapidly. In 2012 there were 1.6 connected devices per person worldwide and in 2017 there will already be 2.5 devices per person. The number of smart phones will double until 2016, the number of tablet PCs even triple. Other "smart" devices (e.g. Smart Watches) will also find their way into private and business life.
  • More networking: The "Internet of Things" (IoT) will cause more and more objects to generate, collect, share and use their data. The communication between machines (M2M, Machine-to-Machine) increases tenfold their share of the total IP traffic in 2017 compared to 2012. Integrated IP networks are the basis for new business models.
  • More data: The extension of the available bandwidth allows a sharp increase in mobile data traffic, which is also supported by the increasing digitization of various business models. By 2017, the global Internet traffic will grow by a compound annual growth rate of 30 %.
These trends have the effect that the information and communication technology is becoming increasingly important. Therefore, the provision and operation of IT and TC platforms is a key success factor, which corresponds to various developments:
  • Data is no longer stored on terminal devices but more often centrally.
  • Usage of cloud services rises, which in turn puts pressure on classical services and their vendors.
  • It creates new challenges and requires new IT skills in the area of data security and privacy.
  • New standards (e.g. in the areas of Industry 4.0, M2M, Big Data, Intelligent Networks) emerge and will increase the benefit for our customers.
  • It creates new options for data usage in the digital economy and new overarching business model chains (so-called B2B2C models) occur.
T-Systems responds to these developments and transforms itself. Five key messages characterize this process of change:
  • There is massive price pressure and competition in the market for classical information and communication technology – but mega trends generate new possibilities for growth.
  • We reduce processes, focus on cost efficiency and pursue a radical "make-or-buy" strategy to encourage the competitiveness and profitability of our traditional business.
  • We use scalable platforms as a driving force for revenue growth. The focus is on cloud computing, cyber security, health, automotive and further networked solutions.
  • We integrate value-adding partnerships with own products and solutions in order to create an attractive B2B and B2B2C product portfolio.
  • We support our customers with their transition from traditional IT and TC services in scalable and secure cloud solutions.
This strategic development of T-Systems supports the Group's strategy "Leading Telco" with its four priorities: "Integrated IP Networks", "Best Customer Experience", "Win with Partners" and "Lead in Business".