The new proximity of people, brands and markets
According to the Massachusetts Institute of Technology, digitally established companies achieve a higher turnover, are more profitable and have a higher company value. The winners include Zalando, Nike and Otto. Only those who are fully digitised and transform their IT will maintain their position in the market in the long term. Or disappear - like Praktiker and Quelle. Adapt or die!
When companies move their business processes towards mobility, collaboration or the cloud, going without IT security is unthinkable. But a security concept is not only a challenge – it's also an opportunity.
With a turnover of EUR 2.6 billion in 2015, online retailer Zalando is one of the digital winners. The recipe for success: completely customer-centred, simple ordering, fast delivery, uncomplicated service and always available. myTaxi has turned the taxi business completely upside down. With a market share of 40 percent in Germany, almost half of all taxis use an app in the place of a traditional telephone switchboard.
However, traditional companies have also made the leap into the digital future: Otto, the world's second largest general distributor after Amazon, optimizes its demand forecast every day for more than 100,000 items. Or Nike, which has transformed itself from a sports supplier to a lifestyle company and now offers a broad range of products, from customizable trainers right up to data-based fitness advice.
How fit are German companies – especially classic market participants? The neuland experts illustrate this using the Digital Readiness Index for different sectors – from the automotive industry, through the insurance sector right up to the pharmaceutical industry. An indication of the future viability of companies.
The losers include well-known companies such as Neckermann, Praktiker, Quelle, Financial Times Germany and Agfa – more will follow. Analyst and forward thinker Brian Solis actually expects that around 70 percent of the "Fortune 1000" companies will be replaced by others in the coming years.
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Yesterday a start-up, today a giant with revenue in the billions. For decades, it was the market leaders. Now, it's the online leaders. While dinosaur retailers such as Neckermann are filing for bankruptcy, the likes of Zalando and Otto are thriving in the online market. They've come forward with business models that are radically customer-centered.
Zero Distance – the answer to digital Darwinism
In order to survive in the face of fierce competition companies have to achieve closer proximity to people. Appeal to their customers with their brands in a more unique and direct way. Use the available information for better, faster decisions. That's because customer requirements have changed considerably. Companies can achieve this goal with the appropriate use of disruptive technologies such as cloud computing, big data, social media and mobility. According to the analysts, "If they appear focused, they have the power to change our traditional business world radically". Plus, they create a radical new proximity – "Zero Distance".
Best Practice Cases
The success of Zero Distance is proved by best practice cases such as SureNow from Allianz: Holiday makers can easily get customised insurance via the app, even on the way to their destination. Or Runtastic – the company serves over 25 million mobile users with its fitness app. And the smart, trackable BAG2GO suitcase, developed by Airbus and RIMOWA together with T-Systems. It saves fuel and doesn’t get lost.
IT as a growth driver
The transformation of the IT of Africa's biggest glass producer Consol shows how digitising a traditional company supports its growth targets: A doubling in volume of glass production in just four years as well as 16 percent savings in IT costs in the first year.
T-Systems as a digitization and transformation partner
With around ten years of cloud experience, a provider of end-to-end services and with a comprehensive portfolio, T-Systems makes startups industry-capable, supports firms with digital pilot projects and enables the IT transformation of traditional companies. We assist you in the development of your digital vision, an appropriate strategy and its subsequent implementation. With customised workshops, T-Systems will guide your company on the way to the digital future.