BEST PRACTICE 1| 2014
BEST
PRACTICE.
Issue 1⁄ 2014
WHO’S
AFTER
WHOM?
DIGITIZATION
BHF-BANK CIO CHRISTIAN PFROMM
GAME CHANGERS
BRIAN SOLIS
IT SECURITY
BSI HEAD MICHAEL HANGE
POLICE SUPPORT IN CYBERWAR
JEREMY RIFKIN
EDITORIAL
— 03
TRANSITIONING
TOWARDS
DIGITIZATION
– TOGETHER.
Photo: Mareen Fischinger
Analysts agree that companies that don’t make the
transition to the digital age are doomed to fail. But
around half of CIOs indicate that they feel overwhelmed
by the speed of digitization, and its many and various
challenges. Cloud computing, mobility, big data – in
the course of just a few years, the IT industry has developed technologies that are shaking up the business
world in a major way. But they also present opportunities for surviving and thriving in the age of intensifying
competition. Almost everything is affected by digitization – business processes, manufacturing, products
and sales. As an ICT service provider, we have to keep
this in mind while asking ourselves the question: what
should we do to prepare for supporting our customers
through this fundamental shift – especially considering
that no organization will be left unaffected?
One thing is certain: to support our customers through
the digitization of processes, production and sales while
helping them transform their businesses and explore
new markets, we have to reposition ourselves. Incremental changes and gradual process optimization alone
are not sufficient to master our partners’ challenges. In
the future, connected thinking, end-user empowerment, simplification and partner management will be
essential for both sides if we are to leverage digitization
as a competitive advantage. At the same time, our standardization and automation expertise will continue to
play a key role in the traditional IT space. The same applies to our ability to make cost structures more flexible
while increasing quality.
We at T-Systems believe that the answer lies in organizational change with a focus on the requirements
placed on skills and processes.
In coming years, enterprises will increasingly leverage
scalable cloud-based ICT services – which will create
an increased need to migrate conventional IT applications to the cloud. We have proven ourselves as an excellent partner in this area: from consulting all the way to
operations. And we will work hard to further increase
our all-time-high customer-satisfaction figure of 84 index points. The features on a tobacco enterprise, a
glass manufacturer and others on the following pages
showcase the lengths we go to deliver excellent results
for our customers.
At the same time, we will tailor our resources and skills
towards collaborating with our customers to develop
and execute new business models integrated all the
way to the consumer. You will find two examples in this
issue of our customer magazine: in the articles describing projects for Airbus and Allianz. With our platformbased solutions, we aim to let our customers benefit
from intelligent logistics concepts, economies of scale,
and a shorter time to market. Mobile devices, growing
data volumes and widespread machine-to-machine
(M2M) communication are going to play a decisive role
in this area. This is why we are implementing and managing an end-to-end ecosystem of software partners –
to equip our customers’ platforms with leading technologies. This is a further field where we are evolving.
And we are already tackling the challenges associated
with digitization – head on, together with our customers.
Best regards,
Reinhard Clemens
INTRO
Eye-scanning smartphones
—5
EYE PIN.
THE VEINS RUNNING THROUGH
THE WHITES OF YOUR EYES
HAVE A UNIQUE PATTERN.
AN AMERICAN STARTUP HAS
LEVERAGED THIS KNOWLEDGE
TO DEVELOP EYE-SCANNING
SOFTWARE. JUST ONE LOOK
INTO YOUR SMARTPHONE CAMERA AND THE NEED FOR PINS
AND PASSWORDS DISAPPEARS.
Eyeprints are easy to scan using smartphone cameras.
1
1. The user holds the smartphone at a short
distance from their eyes (15-30 cm).
Photos: Science Photo Library/Getty Images, PR
3
3. The smartphone vibrates when it has
recognized the Eyeprint.
2
2. They look to the right or the left.
4
4. Authorization is granted for the password-protected application.
One look to log in: not even photos can trick EyeVerify. The software is more secure than
any combination of letters and numbers. And it’s a quick learner, saving any changes to the
vein pattern. In November 2013, company founder Toby Rush from Kansas won the startup
competition Get in the Ring. His idea meets a widespread desire in consumer markets: to
kill the password. It’s time to wave goodbye to countless reams of characters.
INTRO
Apple’s youngest developer
—7
GAME BOY.
AT NINE, THIS YOUNG
MAN FROM IRELAND
TAUGHT HIMSELF TO
PROGRAM. FIVE YEARS
LATER, HE IS A WORLDFAMOUS APPLICATION
DEVELOPER, GIVING
SPEECHES IN SILICON
VALLEY AND NEW
YORK. HIS CREATIVITY
AND TECHNICAL WIZARDRY HAVE CAUGHT
THE ATTENTION OF KEY
MOVERS AND SHAKERS
IN THE IT WORLD.
“Perseverance is the key to success,” explains Jordan Casey,
he knows what he’s talking about. He’s already released five apps,
including TeachWare, which helps teachers organize information
about their students. Casey thinks like one of the big guys – and has
long been in the same league. In 2012, he founded his own company,
Casey Games. Watch this space: because his story doesn’t end here.
Photo: James Higgins
Apple’s youngest app developer. He might still be a schoolboy, but
INTRO
High-tech prosthetics
—9
BIONIC MAN.
HUGH HERR WAS A
CLIMBING PRODIGY;
UNTIL HE LOST BOTH
HIS LEGS BELOW THE
KNEE. BUT HE WASN’T
GOING TO LET THAT
GET IN HIS WAY. INSTEAD, HE DESIGNED
HIS OWN HIGH-TECH
PROSTHETIC LIMBS.
TODAY, THE BIOPHYSICIST IS A RESEARCHER
AT MIT IN BOSTON,
AND CLIMBS BETTER
THAN EVER BEFORE.
“Rediscovering my body was a whole lot of fun,” reveals Hugh
Herr. Creating his high-tech prosthetics cost almost 50 million
dollars. Chip-controlled electric motors mimic the functions of the
continues working on technology designed to enhance the human
body. In 2011, Time magazine named him Leader of the Bionic Age.
He is spurred on by the belief that: “There are no disabled people
in the world, there are only disabled technologies.”
Photo: Chris Crisman
muscles and improve the wearer’s ability to balance and walk. Herr
HOW TO SURVIVE
IN A DIGITAL WORLD
12
<1>
30 SOCIAL BUSINESSES.
FOCUS ON DIGITIZATION
12 KEY TO SURVIVAL.
DIGITIZATION. More than ever before, a high level of digitization is essential
for surviving and thriving in the business world – because it acts as a
springboard to the customer. Some 80 percent of CIOs believe that digital
transformation will be mission-critical in their enterprise in the next two
years. But the options and approaches differ for long-established players
and market newcomers. We accompany them from business pain point,
through IT make-over, to zero distance.
PIONEER. Connected customers are becoming faster, more powerful and
more numerous, according to new media expert Brian Solis. And businesses
have to learn that to reach out to them, they need an ongoing social media
strategy – not just a one-off campaign.
32 A STEP AHEAD.
FEATURE. When Airbus, RIMOWA and T-Systems joined forces to create
BAG2GO, their primary concern was “how can we make traveling easier and
more efficient for passengers?”
IT SECURITY
ANALYZE IT. According to Forrester analyst Dan Bieler, a connected
business, with all its processes tailored to the customer, needs to transform
its IT and digitize both its front end and back end.
IT SECURITY. Edward Snowden’s revelations have been a wake-up call for
CIOs. To protect companies from cyber spying and hackers, senior
management must be aware of the risks.
20 MARKET BAROMETER.
TREND WATCH. What strategies are needed to pave the way for
digitization? Which business objectives can benefit the most from IT
solutions? And which industries are under the most pressure to evolve? The
answers in figures.
22 CIO TALK AT BHF-BANK.
ECONOMIES OF SCALE. Christian Pfromm, CIO of BHF-Bank, on minimizing
the risk of transformation, four steps from the back office to the customer,
and IT solutions that add value.
26 ONES TO WATCH.
GAME CHANGERS. Yesterday, they were winning. Now, they’re surrounded
by competitors. From healthcare to agriculture, established players need to
watch out for smart startups that know how to leverage IT to get closer to
the customer.
46
IT SECURIT Y
<2>
Photos: Oliver Krato, Simon Stock/Gallery Images, iStockphoto, PR; Cover: James Toppin/Image Source, Clover/Image Source
18 AVOIDING PATCHWORKS. 37 MANAGEMENT TASK.
CONTENTS
Issue 1/2014
— 11
<1> To ensure survival in the digital age, many CIOs must transform their IT.
<2> Every second counts when a business falls victim to hackers. The
police force is a strong partner when it comes to fending off these attacks.
<3> Smart suitcases and IT technology are giving Airbus and its passengers a
taste of future air travel.
32
<3>
42 THE SECURE BACKDOOR.
CLEAN PIPE. Cyber criminals looking to attack large firms often choose a
less well protected route via smaller businesses and suppliers. Clean Pipe
offers these companies security solutions from the cloud.
44 CLEAN CUT.
BEST PRACTICES
50 RENEWABLE ENERGY.
SIMKO. The latest generation of cryptocard-protected smartphones
leverages a highly secure microkernel and two separate operating systems
to segregate business applications from private apps.
CUSTOMERS AS SUPPLIERS. US visionary Jeremy Rifkin and Dr. Frank
Schmidt, head of the energy business unit at Deutsche Telekom, talk about
zero distance between suppliers and customers and deploying leadingedge technology to deliver and manage renewable power in Europe.
46 STRONG DEFENSE.
53 NEWS.
CYBER SECURITY. 70 percent of German companies have already been
victims of cyber attacks. To protect them in the future, IT industry association
BITKOM has teamed up with police forces in Baden-Württemberg and
North Rhine-Westphalia.
Raffles Medical Group improves care for over one million patients with SAP
applications from the cloud… Landesbank Baden-Württemberg gets digital
credit card... T-Systems and RSA develop a next-generation Security
Operation Center… TÜV Rheinland certifies T-Systems’ service management... Dynamic cloud platform combines IaaS and SaaS… gematik digital
healthcare card uses electronic signatures... Berlin electricity supplier
URBANA leverages cloud-based smart metering.
ABOUT THIS PUBLICATION
Published by:
Thomas Spreitzer,
T-Systems International GmbH
Fasanenweg 5
70771 Leinfelden-Echterdingen
Publication Manager: Gina Duscher
Project Manager: Tatjana Geierhaas
Editor-in-Chief:
Thomas van Zütphen
Organization: Anke Echterling
Art Direction: Jessica Winter
Layout: Tobias Zabell,
Jennifer van Rooyen
Graphics Manager: Susanne Narjes
Managing Editor:
Anja Sibylla Weddig
Translation: Martin Crellin
Copywriting and Translation
Authors of this issue:
Birk Grüling, Thomas Heinen,
Roger Homrich, Helene Laube,
Thomas van Zütphen
Publisher:
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HOW TO
SURVIVE IN
THE DIGITAL AGE.
THE CLOUD, MOBILITY AND BIG DATA OFTEN
LEAVE CIOS SCRATCHING THEIR HEADS. BUT
THE LEVEL OF DIGITIZATION IS BECOMING THE
NEW BENCHMARK OF A COMPANY’S CHANCES
OF SUCCESS – AND SURVIVAL.
<Copy> Thomas van Zütphen
Find out…
How CIOs are preparing for “digital Darwinism”.
Why zero distance to the customer is a strong anchor in the storm.
Which technologies businesses are using to transform their IT.
FOCUS
— 13
Digitization
IT transformation
WHO IS REAPING THE BENEFITS of digitization – and who has missed out
on this megatrend sweeping through industry and retail? Cologne-based
consultancy neuland has evaluated 233 enterprises’ degree of preparation
for the digital age using a “Digital Readiness Index”. The results: automotive
manufacturers including Ford, Audi and BMW and retail giants such as Otto,
Macy’s and H&M have digitized many processes, and have achieved aboveaverage customer intimacy. However, organizations in industries such as
pharmaceuticals and the public sector are lagging behind.
Internet economy expert and neuland founder Karl-Heinz Land believes
there’s a reason for this development: “Many enterprises are yet to recognize
the trend towards dematerialization – a by-product of digitization – that is
turning our economy, industry and society on its head.”
“Take keys for example,” says the expert. “Soon, no one will be using
them anymore.” In just a few years, smartphones and eye-scan technologies
will be used to open doors, vehicles, lockers and desk drawers. Digital payment systems will displace cash and credit cards, logistics enterprises will
no longer have their own trucks, and battery manufacturers will equip their
products with sensors to support machine-to-machine communication. According to Land, all these examples illustrate that “markets are undergoing a
fundamental shift. Digitization is completely changing consumer behavior –
and enabling a host of new business ideas.”
“Speed and flexibility in adapting to these developments are the makeor-break factors,” states Land. “The Internet economy is already bringing creative thinkers’ ideas straight to the consumer – at lightning speed.”
Against this background, the expert speaks of “digital Darwinism.” He
explains: “When enterprises can’t adapt to the pace of change of technology
and society, they will no longer be able to connect with their customers.” And
Land has identified an explanatory factor for the lacking customer focus:
“lumbering IT departments that do not arm their user departments with the
tools they need to survive and thrive in the digital world.”
Mobility, customer support, e-commerce and digital marketing are just
some of the categories Land used to analyze ten industries last year. The
Digital Readiness Index provides clear indicators such as enterprises’ expected growth, plus future agility and profitability. In addition, it shows which
organizations are already making inroads into the virtual world by digitizing
their processes – from development to production – and boosting their customer focus.
“IT TRANSFORMATION WITH
NO UNDERLYING DIGITAL
VISION CAN’T DELIVER ANY
REAL BENEFITS.”
Karl-Heinz Land, neuland
And this transformation pays off – as demonstrated in a global study carried
out by the Sloan School of Management at the Massachusetts Institute of
Technology (MIT). It found that enterprises with a high degree of digital maturity generate more revenues than average (9 percent), are significantly
more profitable (26 percent), and have a higher market valuation (12 percent). The winners – both startups and established organizations – have all
made IT part of their DNA, across all processes. In addition, they are highly
customer-centric. According to Forrester analyst Dan Bieler, this is partly because “The current digital mind shift means consumers and employees alike
expect services to be available on the move and digitization to boost competiveness and drive the demand for scalability to a whole new level.” (see
Analyze IT, page 18)
For Karl-Heinz Land, social media, big data, the cloud, mobility and security are key technologies for meeting users’ “always and anywhere” expec-
DIGITAL MATURITY
A total of 233 organizations were studied by consultants at neuland using the Digital Readiness Index. A selection
is shown below – the summary of the ranking can be found here: www.neuland.me
Photos: Jung/Laif, Shutterstock
Automotive
Retail
Airlines
Ford USA
89%
Otto
84%
Tuifly
Audi
88%
Macy’s USA
68%
Lufthansa
69%
Opel
80%
H&M
63%
EasyJet
69%
BMW
79%
Tchibo
63%
Singapore Airlines
66%
VW
74%
Karstadt
59%
American Airlines
66%
Ford
70%
Ernsting’s Family
51%
British Airways
65%
Mercedes-Benz
70%
Peek & Cloppenburg
49%
Air France/KLM
64%
Nissan
66%
Zara
48%
Emirates
60%
Kia
56%
Tom Tailor
41%
Airberlin
59%
Mini
54%
Adler
36%
Austrian
52%
Toyota
53%
TK Maxx
34%
Swiss
50%
Honda
52%
KIK
30%
Condor
50%
Peugeot
50%
Takko
27%
Germanwings
49%
Mitsubishi
34%
Primark
17%
Ryanair
38%
Late adopters: 0–20%
Developers: 20–40%
Talents: 40–57%
Experts: 57–80%
Innovators: 80–100%
69%
TRANSFORMATION
ROADMAP
Survival type A
Traditional transformation
CONVENTIONAL legacy systems
must be transformed.
tations. But the flexibility that sales and support teams can deliver to consumers starts in the back end – the IT. This is why Land believes that
“companies need a customer-focused strategy for technology – such as
T-Systems’ zero distance. The goal is to bring together and digitize front-end
and back-end systems.”
When it comes to transformation requirements, three types of enterprises are
duking it out in nearly every industry:
• On the one side, there’s the ‘old guard’ hindered by a patchwork IT landscape that has evolved over many years. The task is to overhaul this legacy
infrastructure to enable the business to expand its market share and fend
off competitors. These organizations are facing the greatest transformation challenge.
• At the other extreme are the young startups that deploy the latest technologies to achieve zero distance to the customer. However, as soon as
there’s a run on their innovative products, these market newcomers will
need to industrialize their IT – which often comprises just a couple of PCs
under the founders’ desks.
• In the mid-field are the players who have started deploying new business
models much like the young startups. This enables them to continuously
update their portfolio to make it more customer-centric – without having to
completely renew their IT.
WHEN ICT AVAILABILITY BECOMES BUSINESS CRITICAL
A significant number of CIOs believe there is an imbalance when it comes to
the freedom they have to deploy their resources. “Every transformation costs
time, money and effort before it delivers a return on investment,” says Johann
du Plessis, CIO of Africa’s largest glass manufacturer Consol. And to ensure
the growth and stable business continuity that come with the territory for successful startups, “you need a reliable provider,” he continues. “What is the
benefit of migrating to the cloud if the IT service provider cannot deliver the
necessary high availability or quality management nor the zero-outage guarantee that our business processes depend on?”
That’s another reason, according to Karl-Heinz Land, that every digital
transformation requires a digital vision. This needs to be supported by all departments – and must be implemented by the right partner. “An additional
server here and a new support feature there won’t deliver any real benefits
without an underlying vision and a focus on the customer and business goals.
They just act as a crutch during negotiations, showing that something’s been
done.” This is particularly true when there’s no guiding strategy.
The examples on the following pages illustrate six enterprises’ strategies
for tackling various business challenges. These organizations may
not have had the same starting
points, and may not have taken
the same approaches, but in all
QR Code
cases, the goal of the digital transformation was the same: achieving zero distance. Because they
Scan this code to learn more about the Digital
recognized that total customer
Readiness Index developed by consultants
centricity is essential for survival.
at neuland and watch a video interview with
Karl-Heinz Land, or visit:
<Link>
www.t-systems.com/
zero-distance
www.t-systems.com/challenge-digitalization
Example
tobacco company
This tobacco company employs
55,000 people across 130 countries,
and generated revenues of 19.3 billion
euros in 2012.
Consol
Africa’s largest manufacturer of glass
packaging has six production sites across
South Africa, supplying global customers
from the food, drinks, and pharmaceuticals industries, and more.
Survival type B
New business models
PLATFORM SERVICES as a docking station
for innovative apps.
Airbus
Founded in 1970, this European aircraft
manufacturer employs 69,000 people,
and in 2012, recorded revenues of 33.1
billion euros.
Allianz
This almost 125-year-“old” business is the
world’s largest insurance company. Its
144,000-strong workforce chalked up
revenues of 106.3 billion euros in 2012.
Survival type C
Startup models
SPEED DATING in the cloud: strong support
for rapid growth.
Enio
Founded in 2013, this startup is
already Austria’s leading provider of
e-mobility logistics services.
Runtastic
This startup develops innovative
sports apps – downloaded 60 million
times – and attracts 250,000 new
users each day.
FOCUS
— 15
01
Digitization
IT transformation
INITIAL SITUATION
HELD BACK BY AN APPLICATION SPRAWL
LEGACY SYSTEM PUTS GROWTH ON HOLD
TOBACCO COMPANY Where the organization once focused on the European
and North American markets, today it has turned its gaze to Brazil, Central Africa and Russia. Despite increasingly stringent regulations in many countries,
the company is seeking to grow and sharpen its competitive edge. “We urgently needed to consolidate our IT landscape and harmonize business processes, strengthen communication between our employees and make sure we
could reach our customers quickly and directly – all while ensuring a competitive margin,” explains the CIO. Until 2012, against the backdrop of an everchanging market, the company ran ten data centers across five continents. A
diverse jumble of applications and infrastructures had developed, and the organization’s multiple IT groups were operating independently of each other. It
had over 100 different providers, limited IT investments, and was being held
back by its own sprawling application landscape.
CONSOL To ensure their products stand out from the competition, food, beverage and cosmetics producers differentiate themselves through their glass jars
and bottles. That’s why Consol, Africa’s number one glass manufacturer, faces
diverse and complex customer requirements, while having to deal with fluctuating order volumes. In this volatile market, Consol had been operating an inscalable IT landscape, with an infrastructure designed for 120,000 SAPS and a
database system with a suboptimal compression factor. The environment
lacked a sophisticated end-to-end disaster recovery system. This left the furnaces that the company uses to produce liquid glass particularly vulnerable.
They run constantly over their 15-year lifecycle, and cannot be shut down for any
period of time. The growth strategy adopted by Consol in 2010 included plans
to expand the supply chain and construct a new factory with scope for six furnaces, doubling capacity and significantly bolstering its market leadership.
DESTINATION: ZERO DISTANCE
AIRBUS Airbus wants to make flying more pleasant for travelers, while offering
its customers – the airlines – lighter, more fuel-efficient planes. The aircraft
manufacturer identified passenger luggage as a critical factor and entered a
partnership with T-Systems and suitcase producer RIMOWA. A cross-industry
team developed smart suitcase solution BAG2GO, which makes the door-todoor journey from the passenger’s home to the destination all by itself. A cellphone app provides up-to-the-minute information on the location of the luggage.
All data is sent to the BAG2GO server in the T-Systems cloud, where it is synchronized with the airlines’ systems.
THE APP THAT BRINGS CUSTOMERS CLOSER
ALLIANZ Every two seconds, Allianz Global Assistance receives an emergency
call from somewhere around the world – from travelers who have injured themselves or fallen sick while skiing, surfing or visiting relatives abroad. But many
vacationers only realize en route that they have forgotten to take out insurance.
Last year, Allianz teamed up with Deutsche Telekom to help these customers by
offering ad-hoc services to people on the road, on the train or at the airport. The
insurance player provides the opportunity to take out a last-minute policy in line
with individual journey requirements via smartphone. The aim is to collaborate
with partners to continuously extend the service portfolio, creating a fast,
straightforward and seamless connection with the customer.
Illustrations: Shutterstock, iStockphoto
E-MOBILITY ONLINE
ENIO By 2020, the number of charging stations for electric vehicles in Austria
is set to rise from 2,000 to 75,000. Enio develops software for operators that is
designed to enhance the consumption-based management of these facilities.
Customers want a constant stream of new business models and, above all, they
expect electricity to be produced in sufficient quantities wherever and whenever it is needed. Thanks to IT-based management and precise alignment of
demand with supply, electricity prices can be kept much lower than by using
traditional power plants designed for peak load. In addition, Enio’s business
model requires reliable software and a high degree of scalability to ensure the
company can produce and deliver electricity from renewable sources to meet
consumer needs. A rise in the number of customers and charging stations
meant Enio’s in-house IT architecture was reaching its limits.
RUNNING AT FULL CAPACITY
RUNTASTIC Runtastic’s improvised IT infrastructure was not designed to handle the rapidly increasing number of users. In busy periods, such as outside
conventional office hours, ambitious runners who wanted to monitor their training progress using the app brought the startup’s systems to a near standstill. In
addition, special promotions created spikes in demand that put the landscape
under pressure, potentially causing availability problems for users. As a result,
Runtastic’s goal of delivering real-time information to its 26 million customers
was at risk. And with 400,000 Facebook fans ready to voice their disdain, there
was a lot at stake.
02
TRANSFORMATION
THE MOVE TO THE CLOUD
END-TO-END SAP OUTSOURCING
TOBACCO COMPANY In a bid to enable zero distance to its employees and
customers, the company “needed to transform the IT organization in order to
deliver effective, rapid support for business processes,” as the CIO recalls.
Number one on the list of priorities was rapid availability of applications. With
110 different processes in place for order intake alone, the first step was to
standardize and consolidate the sprawling IT environment. The enterprise cut
the number of providers to just five, reduced the total of data centers to four,
and will have transferred its entire SAP landscape including 40,000 users to
the cloud by 2016. These changes will affect around 1,500 servers with one
petabyte of storage and over two million SAPS.
CONSOL Following a BIS assessment and cloud readiness study, Consol CIO
Johan du Plessis decided it was time for the group’s entire SAP landscape to
enter the cloud. The goal was clear: “to improve business continuity, disaster recovery and scalability, while cutting IT costs.” Consol replaced its legacy data
management software with a DB2/Linux system, and 35 SAP systems made the
move to the cloud over the course of eight months. Sized for up to 70,000 SAPS,
fully scalable and offering 99.5 percent availability, the systems now operate from
the twin-core T-Systems data center in Johannesburg, which links all Consol locations via a high-availability MPLS network. This has given the glass manufacturer
the additional resources it needs to grow and extend its market leadership.
INTEGRATION, NOT TRANSFORMATION
AIRBUS As soon as the passenger checks in the BAG2GO suitcase using the
app, the bag weighs itself and communicates with departure control at the
airport via an encrypted data connection. Once loaded on the plane, the case
reports its status to the airline and traveler, and does the same again to inform
them of its safe arrival at the other end. It is then collected by a delivery service
that transports the luggage to the destination originally entered into the app.
Plus, because the smart suitcase with built-in cell-phone technology uses existing networks and airport and airline infrastructures, it can be integrated without the need for IT transformation.
PLATFORM SERVICES
ALLIANZ Product developments such as SureNow, a smartphone app that
enables customers to take out last-minute travel insurance, benefit both Allianz
and Deutsche Telekom. The Telekom Laboratories subsidiary developed multiple components of the app’s front end, including payment modules – simplifying complex digitization processes and delivering ease of use. The system is
operated on the SureNow app portal. As a result, Allianz’s own IT department
needed only to perform small adjustments and modifications. The ad-hoc insurance products make a significant impact and strengthen customer relationships. “Toegther with our partners and Deutsche Telekom, we have developed
a B2B2C model that lets us efficiently reach out to customers with tailored insurance solutions,” explains Dr. Steffen Krotsch, Head of Innovation, Allianz
Worldwide Partners.
IAAS AS A SPRINGBOARD TO SUCCESS
DATA CENTER MANAGES
ELECTRICITY FLOW
ENIO Instead of running its own platform and infrastructure for its intelligent
e-mobility charging stations, Enio delivers solutions that enable operators to
manage demand-driven supply of power to their facilities. These are hosted at
a T-Systems twin-core data center and provisioned via the cloud. A dedicated
energy management algorithm running in the background aligns renewable
and traditional electricity production capacity with demand at the charging stations. What’s more, energy providers, e-mobility operators and drivers themselves also benefit from the DSI-vCloud solution that supports continuous
supply of electricity in line with demand, even at peak times.
RUNTASTIC Runtastic now receives additional computing and storage resources at short notice from a cloud-based infrastructure-as-a-service offering.
This ensures the young business’s portals and services are always available –
even if demand unexpectedly rises. What’s more, the company has no upfront
capital expenditure or long hardware procurement delays. Even for regular operations, Runtastic now has a redundant Internet connection with a bandwidth
starting at 100 Mbit/s. A tier 3+ data center run by T-Systems Austria houses
the startup’s central infrastructure.
FOCUS
— 17
03
Digitization
IT transformation
OUTCOME/BENEFITS
CLOSE TO CUSTOMERS IN 180 MARKETS
TOBACCO COMPANY The organization can now rapidly respond to market
fluctuations, new legal requirements and tax policies, and changes in smoking
habits thanks to seamless integration of its local user departments. Fast provisioning and high availability allow purchasing teams to respond quickly to developments in local markets and enable sales staff to initiate logistics processes almost immediately after an order is placed. “The efficiency gains and closeness to
customers and markets that have been the result of streamlining our business
processes outweigh the cost cuts by far,” observes the CIO. But the savings
achieved by consolidating 180 markets on a single set of applications and a standardized infrastructure are “substantial”, he continues. Rather than deploying
multiple servers operating at a load of 10 or 20 percent with up to 80 percent of
outlay wasted, the tobacco player now accesses cloud services dynamically and
on a pay-per-use basis. Ratings agencies and shareholders have already spotted
the impact this boost is having on the company’s bottom line.
DIVERSIFICATION MADE EASY
CONSOL In order to respond as quickly as possible to
ever-changing customer requirements, and to ensure
maximum reliability however high the throughput, Consol now runs its SAP infrastructure in a PaaS environment – reducing IT operating costs by 26 percent and storage expenses by 50 percent. The additional
scalability gained allows Consol employees to rapidly respond to customers’
complex glass requirements. In just four years, output has doubled. “We now
have the flexibility we need, and our production processes are backed up
thanks to redundancy,” sums up CIO du Plessis. “We can add new furnaces
and continue to grow.”
NEXT STOP: THE FUTURE
AIRBUS With innovations like BAG2GO, Airbus is paving the way for smart
luggage to become an air travel staple, responding to the needs of passengers, airlines and airports alike. Aircraft that no longer require overhead luggage bins will be lighter by up to a ton, reducing fuel consumption by thousands of tons each year. And if passengers stop bringing bulky baggage into
the cabin because they can rely on the information provided by the app, boarding and disembarking times could be halved from 40 to 20 minutes. What’s
more, this innovation could reduce the number of bags lost during transit (currently around 26 million each year) to a minimum.
Illustrations: Shutterstock, iStockphoto
E-MOBILITY TARGETS MET
ENIO The Enio platform provides drivers with an overview of e-mobility charging stations organized by location, availability and opening times. What’s
more, customers can continuously monitor charging status and conclude loyalty agreements with suppliers. Facility operators leverage the platform to manage prices, customers, and payment systems. And electricity suppliers use it to
keep track of fluctuations in demand. “The vCloud solution offers our customers a high level of technical and business flexibility,” explains Enio CEO Dr.
Franz Schodl. “Moreover, we can meet the high IT security and data protection
requirements of the energy sector.”
AD-HOC INSURANCE
ALLIANZ “There are definite benefits of having insurance products that only
exist virtually in IT systems,” says Dr. Krotsch. The company can deliver ad-hoc,
tailored policies to its customers after just a few modifications. The insurance
is valid worldwide from the moment it is taken out and costs travelers just 1.49
euros or 3.39 euros for families each day. An email confirms the policy is active
and the contract ends automatically with no need for cancellation. The SureNow partnership between Allianz and Deutsche Telekom is now set to be extended to other areas, including connected houses and cars.
PERFORMANCE DATA ON THE GO
RUNTASTIC Managing fluctuations in demand during promotions, when the
weather is good and at weekends is no longer an issue for Runtastic, thanks to
a T-Systems vCloud. As a result, runners have anytime access to their training
data. The system is highly scalable, which means it can even cope with 100fold increases in demand. Furthermore, the enterprise benefits from fail-safe
operation and 99.9 percent availability. Runtastic no longer needs costly
reserve resources and enjoys consumption-based pricing, paving the way for
savings of up to 40 percent.
“Transformation
begins in the mind.”
DAN BIELER, PRINCIPAL ANALYST AT FORRESTER,
ON IT AS A BUSINESS ENABLER; THE NEED FOR ZERO
DISTANCE BETWEEN CUSTOMERS, EMPLOYEES
AND INFORMATION; SEA CHANGES IN ALL INDUSTRIES,
AND THE MISCONCEPTION THAT B2B BUSINESSES
CAN SIT BACK AND RELAX.
<Copy> Thomas van Zütphen
Mr. Bieler, Forrester refers to enterprises of the future as “connected businesses”. What does that mean?
We want to address the issue of business transformation, including
where it begins and how it progresses, in a different way. It is all
about recognizing how companies need to evolve – both in terms of
their culture and organizational structure – in order to embrace
current developments in the technology and business worlds and
keep their IT ahead of the game.
Scan the code to
download Forrester
study: The Expectation
To what extent does the need for zero distance to customers
and employees call for a radical shake-up and a completely
new approach?
The current digital mind shift means consumers and employees alike
want services to be available on the move and expect digitization to
boost competiveness and drive the demand for scalability to a
whole new level. What’s more, they believe the product experience
should play a central role when it comes to creating zero distance to
the customer. It is no longer about simply making something and
selling it to consumers, but about incorporating existing experience
of how a product fits in with other offerings and services in order to
achieve maximum zero distance.
Business And IT
Leaders, or visit
www.t-systems.com/
study/forrester-jul-2013
What do you need to do to become a connected business?
There are four steps. First, organizations must understand that it is
difficult to separate front-end from back-end processes and to single
out particular technologies. In a connected enterprise, you need to
transform the business and the IT sides simultaneously to enable a
seamless transition. Otherwise the goal of reaching out to user departments through integration of resources, interests and objectives
becomes a far-off dream.
Let’s think about change management. Who is responsible for
driving development?
This brings us to the second stage. You need a team comprising the
CIO and the individuals responsible for innovation and strategy.
Photo: personal snapshot
Gap Increases Between
FOCUS
— 19
Digitization
Analyze IT
The objective is to unite these three standpoints and define the
biggest trends affecting your industry, and to identify hard assets
and soft factors, such as brands, knowledge, data and services
that you already have. The third step involves answering questions: how and where can we influence, penetrate and even shape
markets? Where can we play a more passive role? Where should
we keep out of it completely? And then at the end of all this, you
need to ask: what technologies do we need to achieve this? Technology is always a means to an end.
So you’re suggesting more strategic input when it comes to
procuring IT solutions?
Yes, and we shouldn’t get carried away with hype. We need to take
stock and ask what have we got and where are we heading. For
example, it doesn’t make sense to create lots of data center capacity
without really knowing what we’re collecting the data for and
what we’re going to do with it. And it’s not advisable to focus on
mobility without really knowing how it can support business processes. It is unbelievable how few companies have really thought
properly about their technology investments. Some enterprises
haven’t even recognized that significant change is taking place in
this area.
You mean IT is becoming a true business enabler?
Precisely. Technology is not the ugly duckling anymore. It is fast
becoming a swan. Enterprise IT is no longer just a cost center but
an essential part of the business – one that influences competitiveness. This realization is, however, yet to reach many senior
management boards. And that is exactly where it could have the
most impact. Managers that believe superficial IT cosmetic surgery can make a difference are not only kidding themselves, but
also their employees and shareholders.
So what happens if someone on the supervisory board recognizes this shortfall? How can they relay their insight to the
management?
Good question. Usually, you need some sort of an aha-moment
that prompts people to think differently. For example, you need to
look at your company and consider what transformation has already taken place and what you gained as a result. It could be that
the CEO is foresighted and regularly thinking ahead, or it might
be that a supervisory board member realizes that the company
has the wrong CEO. The long, slow path to transformation also
takes us via business schools that are gradually making technology a central theme for their students. But this approach will not
bear fruit for another 20 years or so. Unless, of course, the young
business graduates are highly attuned to technology and found
startups straight away.
learn to think differently or they need to bring in a new team. Traditional businesses that are resistant to change will disappear or
be acquired by others.
Does the question about finding the right people also apply
to creating the right teams and striking the right balance
between the IT and business side?
Definitely. To enable IT transformation, it is very important that
top management collaborates closely with employees. Moreover, it
is essential that the CIO plays a role at senior level – since technology is such a key issue. Today’s companies are looking to smooth
the gaps between departments by creating interdisciplinary
teams to work on solutions. Enterprises need teams that include
people from marketing, IT, sales and even the legal department.
The cultural shift needs to impact team building, too. This is particularly true in manufacturing where, in the future, businesses
will sell entire solutions and not just devices.
Is there greater pressure in the B2C space than in the B2B
world to transform and embrace cloud computing, mobility
and big data solutions?
B2B companies are riding in the slipstream of their B2C counterparts, but they are rapidly gaining ground. In the automotive industry, for instance, vehicles are increasingly offering an improved
user experience. Car owners are demanding more functionality,
features they know from their smartphones, so there are ever more
applications on the dashboard. This makes automotive suppliers
a bigger part of the overall experience. Particularly since OEMs
seek to keep in-house manufacturing to a minimum. Assuming
B2B players can sit back and relax is risky for two reasons: one,
product cycles are becoming shorter and, two, mass customization is forcing automakers to bring their suppliers closer, right to
the forefront, where the customer is. This means that, in several
industries, the traditional differentiation between B2B and B2C is
eroding and being replaced by an end-to-end B2B2C chain that
delivers joint value to OEMs and suppliers. B2B companies can no
longer ride in the slipstream.
What would you advise companies that are uncertain about
which technologies they actually need?
It is certainly not a question of skepticism but of developing and
sticking to a strategy for the solutions and services they require.
But at this point, I’d underline once more: transformation begins in
the mind. Because despite all this technology talk, it is, in essence,
about the way people will work and interact with each other in the
future. If people don’t change their mindset, IT solutions will be of
no use.
<Links>
How are recruitment and staff policies at new companies
threatening the existence of older organizations?
Entire sectors are beginning to ask the same question: how will
the music industry respond to Spotify, the hospitality industry to
airbnb and the media and telecommunications world to Google,
for example? At this pace of change, companies don’t have 20
years to react. If the attitudes of top-level managers don’t evolve,
new people will be called in to fill their shoes. They either need to
www.forrester.com/Dan-Bieler
www.t-systems.com/zero-distance
www.t-systems.com/bestpractice/transformation
WHEN THE FUTURE LOOKS DAUNTING.
Around half of CIOs do not feel equipped to meet the challenges of the future. This issue’s trend watch highlights how IT heads plan to tame the digital dragon.
TIME FOR ACTION
Attack is the best defense: an increasing number of CIOs are driving digitization.
25%
70%
of CIOs have already made significant investments in public cloud, and the majority
expect more than half of their company‘s
business to be running over public cloud
by 2020.
45%
of companies have implemented agile
methodologies for part of their development
portfolio; although most need to go further
to create separate, multidisciplinary teams,
with lightweight governance and new, digital
skill sets and alternative sourcing models.
of CIOs plan to change their technology
and sourcing relationships over the next
two to three years, and many are seeking
to partner with small companies and
start-ups.
Gartner, Executive Programs Survey of More Than 2,300 CIOs Reveals Many Are Unprepared for Digitalization: the Third Era of Enterprise IT, Gatrner press release, January 14, 2014.
THE CLOCK IS TICKING
When will the digital transformation of your business become a critical success factor?
27%
18%
33%
13%
That time has
passed – it is
already a matter
of survival
5%
This year
Within
the next
2 years
In 3 or
more
years
It is never going
to be important
across the entire
organization
MIT Sloan Management Review, Research Report, 2013.
THE IT RELEVANCE OF BUSINESS OBJECTIVES
HARD CASH – WHICH ICT DEVELOPMENTS HAVE AN IMPACT ON PROFITS?
Decision makers’ wish list: greater productivity and more customer loyalty.
83%
Support overall employee productivity
75%
Gather better business information
Empower closer engagement
Allow effective and targeted selling
Customer loyalty is the development that has the fastest
effect on an enterprise’s bottom line.
72%
70%
Digital
engagement
Easy connection with partners; innovation ecosystem
67%
Enhance business innovation capabilities
66%
of emloyees and
business partners
Speed up the go-to-market process
66%
Automation
Attractive employer with collaborative and flexible working environment
65%
Support the expansion into new product segments
Expand into new geographies to benefit from business globalization
63%
Digital engagement of customers
Digital innovation
of products, operating
or business models
Big data and
advanced analytics
McKinsey & Company, Bullish on Digital:
Global Survey Results, 2013.
62%
Percentage of business leaders stating “important” and “very important”
“IF THIS TRANSITION SUCCEEDS AND CIOs
AND THEIR BUSINESSES ‘TAME THE DIGITAL DRAGON’,
MASSIVE NEW VALUE FOR BUSINESSES
CAN BE CREATED, AND WITH IT, A RENEWED ROLE
AND GREATER CREDIBILITY FOR THE CIO AND
THE IT ORGANIZATION. HOWEVER, IF THE DRAGON ISN’T
TAMED, BUSINESSES MIGHT FAIL AND THE RELEVANCE
OF THE IT ORGANIZATION WILL ALMOST CERTAINLY
DISAPPEAR.”
Gartner, Executive Programs Survey of More Than 2,300 CIOs Reveals Many Are Unprepared for Digitalization:
the Third Era of Enterprise IT, Gartner press release, January 14, 2014
<Link> www.t-systems.com/analysts
Illustration: Ela Strickert
Forrester Research, Inc., Business Technographics Networks and Telecommunications Survey, Q1 2013.
FOCUS
Digitization
— 21
Trend watch
AVOIDING FALSE STARTS
WHAT HAS DIGITAL DONE FOR US LATELY?
Lack of desire, money and IT tools are the three main reasons organizations
fail to use technology to make their business better; in percent.
Companies are using technology to have real, transformative impact across
customer experiences, internal operations and new business models.
No “burning platform”
39
Not enough funding
Limitations of IT systems
28
Lack of vision
28
Unclear business case
27
Business units implementing independently
Culture not amenable to change
Lack of leadership skills
Ensure
cross-channel
consistency
1255
Improve internal
communication
Transition
Launch new
products and
services
Improve the
customer
experience
Enhance the
producitvity of
our workers
Automate our
operational
processes
Develop new
business models
Launch new businesses
Expand our reach
to new customers
and markets
24
16
MIT Sloan Management Review,
Research Report, 2013.
Customer
experience
TANGIBLE GAINS
Operational
improvements
12%
9%
6%
REVENUE INCREASE
Business model
change
MIT Sloan Management Review, Research Report, 2013.
26%
Digerati, the companies that manage digital technology
most effectively, see the best financial results.
1087
Enhance our
existing products
and services
19
Regulatory issues 9
Our digital
initiatives are
helping us to…
Number of responses
30
Roles are not clear
9%
1876
33
7%
PROFITABILITY
SHARE VALUES
-4%
-10%
Digerati
Fashionistas
Conservatives
Beginners
-11%
MIT Sloan Management Review,
Research Report, 2013.
-12%
-7%
-24%
INCREASED PRESSURE TO ACT
At the top of CIOs’ to-do lists.
Before 2017, only 40% of
CIOs will rise to the challenge from CxOs to partner in
strategic planning by producing business-enhancing
insights from big data and
analytics.
70% of CIOs will increase
enterprise exposure to risk
in order to dramatically reduce IT costs and accelerate
business agility through
increased cloud adoption.
Enterprise business
mobility will require 60%
of CIOs by 2017 to support
an agile architecture with a
diverse mix of cloud-based
interfaces for legacy and
next-generation mobile
applications.
CEOS’ VIEWS ON THE STATUS OF
‘DIGITAL STRATEGIES’ IN 2013
We have nothing
we recognize as
digital strategy
We have some
stategy in that
area, but not
called out as
digital
Our digital
strategy is our
business strategy
The demographic shift to
young and mobile customers will require 80% of
CIOs in consumer-facing
businesses to integrate IT
with public social networks
by 2015.
By 2015, third platform
requirements will drive 60%
of CIOs to use enterprise
architecture (EA) as a required IT tool to support
continuous change and
business innovation, but
only 40% will deploy EA
effectively.
By 2015, 60% of CIO security budgets for increasingly
vulnerable legacy systems
will be 30-40% too small
to fund enterprise threat
assessments while maintaining existing reactive
security investments.
By 2017, the transfer of
third platform investments
from IT to line of business
budgets will require 60%
of CIOs to reduce the cost
of infrastructure and operations to focus on business
innovation and value.
1%
14%
39%
35%
Digital strategy
is an integrated
part of our main
business strategy
11%
We have a digital
strategy, separate to our
main business strategy
Gartner, CEO and Senior Executive Survey 2013: As Uncertainty Recedes, the Digital Future Emerges, March 2013.
IDC, 2014 Predictions: CIO Agenda,
December 2013.
Résumé
After completing a business
degree, Christian Pfromm
began his career at Dresdner
Bank where he held a
number of roles, including
program manager for the
bank’s integration into
Commerzbank. In mid-2011,
Pfromm joined BHF-Bank
where he is responsible for
the redesign of IT systems.
In addition, the 49-year-old
is a member of the
management board for the
Photo: Alex Habermehl
German SWIFT Group.
FOCUS
— 23
Digitization
CIO Talk_Christian Pfromm
“Forming an
alliance with the
customer.”
Christian Pfromm, CIO of BHF-Bank, talks
to Oliver Schobert, Head of Sales at
T-Systems for the Rhine-Main region, about
worthwhile IT, the biggest transformation errors, and four steps from the back
office to the customer.
Mr. Pfromm, what were the reasons behind BHF-Bank’s
IT transformation?
In recent years, BHF-Bank has successfully evolved its business model to meet the precise needs of international entrepreneurs and their families. Aligning our IT with these new
requirements and imperatives was a necessary next step.
We have leveraged the new ICT architecture for our banking
platform, to modernize our infrastructure and optimize
processes.
Why did you modernize your IT – because it was too
slow and costly for the new business model?
IT investments had been limited, we were not meeting cost
benchmarks, and our landscape was a long way from stateof-the-art. We needed to standardize our back-office processes while continuing to offer high-quality tailored services to
our clients.
<Copy> Thomas van Zütphen
What’s the fastest route from the back office to your customer? Can you give us an example?
We have four clearly defined steps – starting in the back end,
so in the machine room. We’ve enhanced our infrastructure
based on a factory-like approach and introduced standards.
As a result, we’ve streamlined processes and created economies of scale. Once the machine room is in order, you can turn
your attention to application development and process design, bringing you closer to the customer and allowing you to
deliver better, more personalized services.
Is there a link between IT efficiency and business value?
In these times of banking crises, take-overs and pressure to
consolidate, CIOs must be proactive about ensuring IT plays
a role in business success. IT bosses should not be defined by
the size and complexity of their landscape or how big a budget they have, but by the contribution they make to business
BHF-Bank
Founded in 1854, BHF-Bank focuses on two key business areas: Private
Banking & Asset Management and Financial Markets & Corporates.
Headquartered in Frankfurt, the financial services player has 13 sites
across Germany and international offices in Abu Dhabi, Geneva,
Luxembourg and Zurich. With 1,100 employees (around 100 in IT), the
bank’s balance sheet totaled 6.7 billion euros in 2013.
Christian Pfromm uses IT to
reach a new level of customer
centricity.
BHF-Bank is Germany’s number one for portfolio management and was awarded the Golden Bull for asset
management in 2013. How important is IT when it
comes to defending these titles?
IT is a business enabler that should not just be pigeon-holed
as a high-tech tool for specialists. Our goal is to identify
change and take strategic action. And we collaborate closely
and proactively with all our business units to achieve this
aim. Employees should be able to concentrate on advising
their customers.
In a bank, almost all services and processes are based on an
IT core. And we need to closely align this with our customers’
interests. Our number-one status highlights how important
customer-centric IT is to us: we form an alliance with our
customers, and I don’t think you can get much closer than
that. As far as defending our title goes, I think that we’re on
the right track, and that our current IT transformation has
come at precisely the right time.
How did you approach the IT make-over?
We looked for strategic partners for IT infrastructure services.
We needed one that could take on responsibility for missioncritical systems, such as those for foreign currency exchange,
and not just cherry-pick to suit themselves. The outcome is
that we have outsourced the end-to-end operation of our systems to a single provider. We don’t deliver any infrastructure
services ourselves anymore – a decision that we are delighted
with. BHF-Bank still manages its own specialist banking applications and, of course, coordinates providers. So our plan
was a success: we benefit from excellent delivery capacity and
flexible services. Everything, including disaster recovery solutions and the basis for effective business continuity management, is delivered via a private cloud. As a result, we have
significantly reduced costs.
Were there any hiccups during transition?
It’s hard to believe this but let me quote one of my IT colleagues: “We’ve migrated the mainframe and no one has noticed!” In other words, there were no problems whatsoever.
After months of preparation and intensive groundwork, we
performed the cutover on a weekend and everything went
swimmingly. And the momentum and spirit of trust that developed helped us when it came to migrating our Unix and
Photos: Alex Habermehl
value. Having said that, it is not enough to simply focus on
cutting costs. The IT department must offer flexible, highquality services at competitive prices. If IT can successfully
model banking processes, then it can have a positive impact
on competitiveness.
FOCUS
— 25
Digitization
CIO Talk_Christian Pfromm
Windows systems – a much more time-intensive project. In
fact, this success continued throughout the entire undertaking:
the transition phase that included integrating live systems
also went off without a hitch.
So what were the critical factors? Success stories like this
don’t fall from the sky.
You’d probably expect it to be something technical or practical, but it wasn’t. Of course, with enterprise application integration, you have to take complexity reduction into account,
disconnect the modules from the interfaces and ensure data
redundancy and high data quality. But the real critical success factors were trust, credibility and transparent information – from the transition teams to the steering committee.
This led to a sense of discipline, hard work and a keen eye for
detail among all participants. And it also helped create team
spirit between our employees and their counterparts at the
provider – following the example set by management on both
sides. Underestimating the importance of these factors in a
transformation engagement is a major error. To pull off a
project like this, you need the full commitment of your user
departments.
What role do big data technologies play in your Asset
Management, Financial Markets and, in particular,
your Risk Services business lines?
Big data technologies need to be an integral part of our IT architecture. Because high-quality, accurate data enables us to
continually improve our products and services. These solutions help us gain valuable insight, by giving us the means to
analyze and make sense of unstructured facts and figures.
Thanks to big data, we can deliver better consulting services
and more reliable, tailored offerings.
Our infrastructures are now designed to support big data
analysis. This means that our Risk Services employees, for
example, can offer customers – such as asset management
companies, insurance providers and pension funds – timely,
accurate market and risk analyses, despite the huge volumes
of data and complex algorithms involved. To achieve this, the
IT side needs deep knowledge of business processes coupled
with a high-performance, highly available infrastructure. We
have both of these things.
As part of your transformation project, your next step is
to update your core banking systems for private and corporate customers. Why is that?
Firstly, we want to replace our heterogeneous legacy core
banking system that was developed in-house and still runs on
a mainframe. We plan to introduce a new open server solution, in keeping with our “buy not make” strategy. Basically,
wherever we can’t create competitive advantage, our approach is to industrialize and standardize banking business
processes.
<Contact> oliver.schobert@t-systems.com
<Links>
www.bhf-bank.com
www.t-systems.com/industries/banking
www.t-systems.com/bestpractice/transformation
“We were looking for
a partner who does
not cherry-pick.”
Christian Pfromm, CIO of BHF-Bank
In addition to rethinking BHF-Bank’s
business model, Christian Pfromm (right)
and Oliver Schobert are transforming the
financial service provider’s IT.
MOBILIT Y
TABBY, THE OPEN SOURCE CAR
Screw together some metal sheets, mount the steering column and put on the
wheels – and you have a brand-new car. In just one hour, the Urban Tabby is
ready to be taken for its first spin – according to OSVehicle, the manufacturer
behind the open source vehicle. The construction kit costs 6,000
euros and assembly instructions are available on the web. Tweaks and fine-tuning from the online community are positively encouraged. Four or two seats,
electric drive or combustion engine – users have a huge range of options to
choose from. The only parts not included are the roof and the windows. If this
model takes off, conventional automotive players will face new competition with
unbeatable production cycles and maximum scope for customization: because
the consumers themselves make their own cars.
Little
revolutions.
FROM RETAIL TO MEDICINE, MOBILITY TO FARMING –
THE RANGE OF INDUSTRIES SUCCESSFULLY EMBRACING
THE ZERO DISTANCE PHILOSOPHY IS GROWING. AND IT
KNOWS NO LIMITS. BUSINESS MODELS ARE EMERGING
THAT ARE REDEFINING THE RULES AND EXPLOITING
PREVIOUSLY UNDISCOVERED POTENTIAL. OFTEN, SUCH
INNOVATIVE MODELS ARE THE BRAINCHILD OF SMALL
STARTUPS. THESE CREATIVE REVOLUTIONS HAVE
THE POWER TO TURN ESTABLISHED, OUTDATED VALUE
CHAINS COMPLETELY ON THEIR HEADS. SOMETIMES,
THE RESULTS HAVE FAR-REACHING DETRIMENTAL
CONSEQUENCES FOR MARKET INCUMBENTS, WHILE IN
OTHER CASES, THEY DELIVER BENEFITS ALL-ROUND.
<Copy> Birk Grüling
FOCUS
— 27
Digitization
Game changers
SMART SHOPPING
DATA GLOVE
Vendors Exchange has developed an intelligent machine, featuring SAP HANA, that is as personal as
the local corner shop. There may not be a storekeeper, but the machine knows its customers’ names and
their preferences. Using an interactive display, shoppers can view recommendations, purchase products or arrange for gifts to be sent directly to a friend.
The items on offer vary depending on the machine’s
location – be it a gym, an office or at a highway rest
area – and users pay for their goods via smartphone
or tablet. The machines transmit up-to-the-minute
information to operators through the cloud, enabling
targeted selection of products and on-time replenishment of stocks. This eliminates superfluous deliveries and reduces losses as a result of sold-out
articles.
The future will bring real-life, haptic shopping experiences into the digital realm. Researchers at the University of Bielefeld in
Germany are working on a data glove which
will allow wearers to feel objects even
though they are not physically touching
them. The technology works by issuing
weak electrical impulses or vibrations that
stimulate the nerve endings in the fingers.
The glove is a long way from completion but
it has potential to remove one more barrier
between online and conventional bricksand-mortar stores. The European Union is
funding the joint venture between ten international research institutes to the tune of 7.7
million euros.
L
I
A
RE T
REPUTAMI
Photos: PR, Fotolia
In the digital space, customer opinions count.
In just a matter of seconds, the online community can make or break a business.
Cologne-based startup Reputami helps companies manage their image on the net. By
analyzing feedback on social media, it enables smaller enterprises in particular to
avoid negative fallout and respond effectively
to criticism. Moreover, Reputami supports the
development of online reputations by identifying opinion leaders in the community and
helping businesses approach them. Investors
have already recognized the firm’s potential:
Deutsche Telekom has included it in its
hub:raum program, an incubator for startups.
BEAUTY KIOSK
L’Oreal Paris aims to make life easier for women –
with unusual ideas and suggestions. To this end,
the company has launched a make-up vending
machine in a subway station in New York’s 42nd
Street. When someone looks into the interactive
mirror, the kiosk automatically generates tailored
cosmetics suggestions. Customers can purchase
eye make-up, lip products and rouge directly from
the machine and even sign up for a style consultation via email. The project opens up new sales
channels and enables the cosmetics industry to
deliver customer-specific advice, without expanding the workforce.
Where do the game changers come from?
€
Innovations with potential can gain backing from startup incubators.
Incubators are used to nurture newborn babies in their first moments on
earth. They provide warmth and ensure the right level of humidity,
protecting the vulnerable infant. In a similar way, business incubators for
startups deliver help and support during the initial stages – offering
anything from advice, to funding, to office premises. And just like in the
medical world, startup incubators improve survival chances. Almost 85
BITCOIN
percent of organizations nurtured in this way remain in business.
Financial backing not only comes from public institutions such as
universities and industry associations but also from private companies like
Axel Springer or Pepsi. And this involvement delivers tangible benefits:
enterprises gain innovative ideas for their own business early on. Later
acquisitions turn out much more expensive – as many examples prove, not
just from the US startup scene.
Every day, 70,000 online transactions are
made using bitcoins. Chairman of the US central bank Ben Bernanke believes that the Internet currency can pave the way to faster, more
efficient global money transfers – since no
fees need change hands. In 2013, the
exchange rate rose from 10 to as many as
1200 dollars per bitcoin. Financial experts in
Europe, however, warn investors against purchasing the virtual coinage.
NC
CURRE
Y
THE SMART PLASTER
Metria, the intelligent adhesive bandage, is worn close
to the skin for seven days. During this time, built-in sensors capture data on parameters such as body temperature, the number of steps taken and sleep patterns.
The information can be accessed via smartphone and
is automatically sent to doctors and fitness coaches.
The system supports planning of long-term treatment
or training programs. Currently, healthcare player
Medisana is developing a version for emergency
response teams that sends key facts and figures directly from the accident scene to the hospital, potentially
saving lives.
RE
A
C
H
T
L
HEA
MOBILE ECG
The ECG monitor from Personal MedSystems records
the heart activity of patients on the go. The captured
data is then analyzed using a smartphone. And a dedicated app provides tailored tips to the wearer: green –
everything is fine; amber – it would be advisable to consult a doctor; red – emergency. A touch of a button can
even trigger a call to first response teams. The digital
disease prevention program is of high medical value:
only around ten percent of patients are treated in the
first hour following a cardiac arrest. Yet it is this golden
hour, when the arteries can still be unblocked, that
makes all the difference to the outcome.
FOCUS
— 29
Digitization
Game changers
COMBINE HARVESTER
The number of assistance systems in vehicles is on
the rise – and used in agriculture are no exception.
Manufacturer Claas has teamed up with Deutsche
Telekom and is putting farming 4.0 through its paces.
Using GPS technology, the machine navigates independently around the field. And if when grain tank is
full, it automatically informs a tractor to collect the
load. All the while, the farmer sits in the cockpit and
simply monitors the systems.
SE
T
I
R
CU
AG R I C U
LT U R E
WALL-YE
Y
It prunes up to 600 vines a day, highly accurately and without slowing
down. With two arms, six cameras and a GPS module, the Wall-Ye robot moves around the vineyard entirely on its own. The brainchild of a
French robotics startup, it can even capture accurate data on the
crops. Wine growers analyze these metrics and can use them to improve processes, for example, when planning the use of fertilizer. Currently, Wall-Ye will set you back 32,000 euros. But it delivers a solution
to the lack of skilled workers in agriculture, saves on salary costs and
in light of its low energy consumption, is a worthwhile investment for
small and medium-sized businesses.
SPORTS
Photos: PR, Fotolia, Image Source/Getty Images, iStockphoto
FIREEYE
US startup FireEye is a market leader for
zero-day attack recognition software. This
type of threat occurs when perpetrators
exploit previously unidentified vulnerabilities to penetrate a network. Even sophisticated firewalls can only detect known viruses and malware. Now, FireEye claims
to deliver the only solution in the industry
that can pinpoint and ward off web and
email threats, as well as malware concealed in files. In 2012, Forbes Magazine
named the company “the hottest security
startup”.
MADE BOARDS
The surfer, the board and the ocean – US startup
MADE aims to perfect this harmonious relationship
by means of tailored surf boards made on 3D printers. To initiate the process, the surfer ensures their
smartphone is waterproof, attaches it securely to the
board and takes to the waves. A dedicated app
records all movements and captures weather and
location data, sending it to the manufacturer. MADE
then uses this information to print a customized
board on a 3D printer.
<Link>
www.t-systems.com/zero-distance/start-ups
Up close and
personal.
New media visionary Brian Solis on the
importance of an enterprise-wide social
business strategy for communications
with the always-on customer.
<Copy> Helene Laube
FOCUS
— 31
Digitization
Pioneer_Brian Solis
Photo: www.briansolis.com
WHAT DO COMPANIES THAT SHY AWAY from social media
and clocking up online friends and followers risk? “Everything,” according to Brian Solis. “Traditional customers are
shrinking over time. Connected customers are gaining
strength and velocity,” he explains. The analyst and social
media expert attempts to hammer home just how crucial social business models are, because customers and employees behave differently in the connected world. “They become more informed. And over time, they become more
demanding. They expect immediacy, attention, personalization and a more efficient and intuitive experience based on
the networks, apps, and devices they use.”
Solis, who has spent years studying the impact of new
technologies on business and society, is a prominent thinker and author. His blog briansolis.com, is consistently regarded one of the world’s leading sources for insights into
the future of business, marketing, and customer behavior.
A principal analyst at market research firm Altimeter Group,
Solis speaks at dozens of industry conferences each year –
Le Web, SXSW and TED, to name a few. Moreover, he develops digital transformation strategies for top companies.
In his latest book, What’s the Future of Business (WTF),
www.wtfbusiness.com, he addresses frustrations, disorientation and ignorance in the business world when it comes to
dealing with connected consumers. He designed the book
as an “analog app” to present information in a way that demonstrates how customers are different.
But there is no panacea for a positive outcome and ensuring better customer relationships, warns the expert from
Silicon Valley: “There is a great myth that a winning formula
exists for success in social media. But it all depends on business goals, the people you target, their expectations, and
how customer contact is integrated with sales, marketing
and other departments.” Solis continues: “The formula for
success in social media begins with first defining what success is and how it will be measured.”
So just because an organization has a Facebook page,
a Twitter account or is active on other similar channels, it
does not mean it has a social business strategy in place.
Digital transformation and improved customer intimacy are
rarely the direct outcome of these activities, particularly
when social media is an isolated project for the marketing or
HR teams. Solis observes: “In my research, I’ve found that
most enterprises do not align social media strategies with
business objectives. This is a problem. Without bigger thinking, without alignment, how is it possible for any company to
have a major impact in an entirely new medium?”
A social business strategy not only needs to be in sync
with overarching goals, it also needs company-wide acceptance and support. According to Solis, few enterprises have
recognized that each and every department needs to be on
board. And this has led to the failure of many social media
plans because they did not take key business objectives
into account or senior management was not involved.
The challenge with CIOs and also new media strategists is that they tend to look at these new opportunities
from a technology perspective. “While that can be helpful,
any technology investment should be preceded by an acute
understanding of how social technology is affecting customer and employee behavior, values, and expectations. In
my research, I’ve learned that too many technology investments are made without understanding the bigger vision or
the opportunity social media brings for improving customer
and employee engagement, communications, service and
support.” And if companies invest in IT solutions, these
must be capable of making the entire business social.
But, says 43-year-old Solis, who himself has 210,000
Twitter followers, technology is not the key point: “The best,
and most elite businesses, understand that social media is
a continuum and not a campaign. And they invest in strategies that integrate the entire customer and employee journey.”
<Contact> brian@altimetergroup.com
<Links>
www.briansolis.com
linkedin.com/influencer/briansolis
<Twitter> @briansolis
Observer
Brian Solis, 43, is a
leading digital
analyst, anthropologist and best-selling
business author. He
is principle at
Altimeter Group, a
Silicon Valley market
research firm focused
on disruptive
technology. Solis has
studied the impact of
the Internet and
consumer technology
on business and
society since the
1990s.
Traveling light.
THE SUITCASE OF THE FUTURE WILL MAKE ITS OWN
WAY FROM A TO B, TRAVELING INDEPENDENTLY.
THE BAG2GO BUSINESS MODEL, A JOINT VENTURE
OF AIRBUS, RIMOWA AND T-SYSTEMS, IMPROVES
CUSTOMER SERVICE, REDUCES THE NUMBER OF
CLAIMS FOR LOST LUGGAGE, AND CUTS FUEL COSTS.
Photos: Simon Stock/Gallery Images, Gallery Stock, iStockphoto, PR
<Copy> Birk Grüling
FOCUS
— 33
Digitization
BAG2GO
18 hours before departure
Almost done – just one last look at the inbox: no new messages. All the day’s appointments
are finished and everything is in order. The businessman leaves the office, turning off the
lights as he does.
The suitcase is on standby. The owner
activates it by pressing a button. The
case then registers with the back-end
system and the display lights up, signaling that it’s ready for use.
15 hours before departure
The silver metallic suitcase waits in the hall, its display blank. Laid out on the bed are two suits and a number of shirts, all ready for upcoming meetings. The man’s fingers glide across his smartphone screen. The
BAG2GO app opens and, simultaneously, the suitcase display lights up. 20 minutes later, there are no
more clothes on the bed and the case is full. The businessman lifts up his luggage and the built-in scale
shows 18 kilograms. That’s within the limit. He breathes a sigh of relief.
To determine the weight of the case, the user simply lifts it
up by its handle. The value appears on the display and on the
passenger’s smartphone. Once the traveler has checked in,
this information is encrypted and sent to the airline’s departure control system via the BAG2GO back end. As soon as
check-in is complete, the suitcase is electronically sealed.
5 hours before departure
Between his morning coffee and shaving, the business traveler enters his latest flight information into
the BAG2GO app. He’s in a hurry. But a simple touch of the ‘send’ button, and the details are already
winging their way via the T-Systems cloud to the BAG2GO server – where they will be synchronized with
the airline’s system. The display on the suitcase confirms the successful check-in. The airline processes
the data and generates a barcode, which identifies the passenger and can be used to track the bag’s
movements. Now the case is ready to go – without its owner. Just ten minutes later, there’s someone at
the door. The BAG2GO driver is here to collect the suitcase. And our businessman simply grabs his
hand luggage, and walks to the subway to catch his train to the airport.
Airlines
BAG2GO is designed to minimize the number of lost
suitcases and cut the costs of baggage handling.
According to figures from industry specialist SITA,
Depending on whether the passenger is taking the
bag to the airport or has requested it to be
picked up, a barcode from the airline or logistics provider appears on the display. The BAG2GO
back-end system transmits the data.
one in a hundred items of luggage is lost or reaches
its destination days late. This adds up to 26 million
bags each year, with the most common causes being
improper handling and loading errors. The annual
damage to airlines runs to 2.5 billion US dollars, not
to mention the negative impact on their reputation.
For Airbus, another key aim of BAG2GO is to reduce
the weight of passengers’ hand luggage. This in turn,
lowers the weight of the aircraft, cutting fuel
consumption and carbon emissions.
3 hours before departure
The terminal is bustling. There are families with grouchy kids, agitated frequent flyers and excited backpackers. But our passenger can relax. His suitcase has just been registered at the BAG2GO belt. And with
a spring in his step, he disappears into the belly of the airport, heading towards the departure lounge. With
plenty of time to spare, he buys a coffee and settles down to answer a few emails.
BAG2GO – at a glance
• Self check-in
• Automatic weighing of suitcases
If the suitcase has been delivered to the airport by a courier, the airline’s baggage tag
appears on the display the moment it is handed
over. Now the case can be allocated to the right
aircraft – like all the other bags in the airport’s baggage handling system.
• Door-to-door transport
• The suitcase alerts owners to tampering
• Luggage communicates via the BAG2GO
smartphone app – enabling real-time tracing
• Worldwide positioning using a software
module in the connected case and a cloud portal
• A barcode on the display contains all relevant
information on the flight and the bag
FOCUS
— 35
Digitization
BAG2GO
30 minutes before departure
His smartphone vibrates. It’s a message from the suitcase: “I’m on my way to the Airbus plane”. The
traveler finishes his coffee and puts his documents back in his bag. A young flight attendant checks his
boarding card. Ten meters beneath him, his suitcase is being loaded into the hold. Another message pops
up: “I’m on board, just a few meters under your seat”. As the passengers switch their phones to flight
mode, the suitcase module automatically turns itself off.
10 minutes after landing
The plane touches down and as everyone reaches for their phones, the BAG2GO suitcase wakes from its
slumber: “I’ve landed”. People make a dash for the baggage belt, some of them wondering if their belongings have made it. But our businessman has no cause for concern. He glances at his phone: “I’m on the
way to the hotel”. He leaves the terminal with just his lightweight briefcase and hails a cab to his first meeting. Soon he gets another message: “I’ve arrived. I’m waiting for you in room 213”.
Photos: Martin Adolfsson/Gallery Images (2), Gallery Stock, Jochen Eckel/ddp, Masterfile, Shutterstock, iStockphoto
Shortly before the suitcase is loaded onto the
plane and switched off for the flight, it sends
a final status update to the back-end system.
This information is forwarded to the airline
and, if required, the passenger.
Once the plane has landed, the suitcase is
re-activated and sends a signal to the back-end
system, indicating its status. If the passenger
has requested delivery of the luggage, a tag
from the transport service appears on the display. When it has arrived at its final destination, it sends another status update. All data
is now analyzed and compared, ready to send to
the passenger.
Scan the code
<Contact> torsten.chudobba@t-systems.com
for more on BAG2GO, or
<Links>
www.airbus.com
visit: http://vimeo.com/
www.t-systems.com/pm/telekom-bag2go
67801379
Interview
“BAG2GO BRINGS US A STEP CLOSER
TO THE FUTURE OF AIR TRAVEL.”
Airbus Innovation Manager Jan Reh discusses how the company’s
cross-industry partnership with RIMOWA and T-Systems is ‘going places’.
Jan Reh, 37, joined
Airbus in 2007 as Head
of Product Design.
Today, he works as an
Innovation Manager at the
company. After graduating
in industrial design, he
began his career at Lufthansa in 2001, where he
stayed until he moved to
Airbus. His tasks at the
airline included developing the interior of the
VIP jet.
What are Airbus’s strategic aims with regard
to developing smart baggage solutions such
as BAG2GO?
One advantage is that removing overhead lockers from an aircraft saves as much as one metric
ton in weight. A saving of just one kilogram in
each aircraft of an entire fleet reduces kerosene
consumption by up to 30 metric tons per year –
equivalent to up to 40,000 dollars. And passengers benefit, too – they don’t have to worry
about their luggage any more, but they still
know exactly where their bag is at any given
moment.
BAG2GO will speed up boarding and disembarking. As it stands, the average aircraft turnaround time is around 40 minutes. This is
largely because so many passengers take carryon baggage with them, even though they have
no real use for it during the flight. We want to
trim turnaround time to 20 minutes, and alleviate the stress and hassle of air travel. This will
make flying a more attractive prospect – boosting airline passenger numbers but also cutting
fuel consumption. These developments will
give the air travel industry a crucial competitive edge in the long term, and could generate
significant financial benefits, too.
But BAG2GO would have to gain a strong
foothold in the market to have the impact
you describe. How long could that take?
That depends on how quickly airlines choose
to adopt a business model based on baggagefree travel. Carriers would be able to purchase
the suitcases when placing orders for new aircraft, and could, for instance, market the cases
to frequent flyers. They could leverage the cases
to strengthen customer loyalty. And we would
cooperate with partners in other industries,
opening up a range of new sales channels for all
stakeholders.
In light of trends such as M2M communications and the Internet of Things, is Airbus
looking to develop innovative solutions in
any other areas?
We are looking into, for example, direct interaction between passengers and cabin crew. We
could expand the functionality of our cell-phone
app to include the entire in-flight magazine,
with information on what passengers can buy
and eat on board, how to switch on their reading
light, and so on. Passengers would be able to ask
the crew for a print copy if required. This simple
change would enable airlines to drastically reduce the amount of paper they use.
Essentially, our task is to encourage aircraft
manufacturers and airlines to take a fresh,
multidimensional look at the way the industry
works. These businesses need to consider how
these new technologies could be used to enhance their operations – and once they understand the benefits, they will be able to work
with other industries to make flying simpler.
BAG2GO is a shining example of this partnership in action. The T-Systems Innovation Center
has combined this vision of future air travel
with a prototype that stands up to the rigors of
the real world. And we have been able to take
the M2M module for the suitcase, and evolve it
for use as a standard solution for airfreight containers – forming an end-to-end system for air
cargo transportation.
How will Airbus ensure compliance with
the European Aviation Safety Agency’s
strict regulations?
It is important that baggage can be tracked and
traced. In the future, we can expect to see a
wave of new solutions – but few of them will
gain approval for air travel. We only work with
manufacturers of high-quality products that
fulfil our stringent security and safety requirements. This approach allows us to work closely
with the IATA* Baggage Working Group to
spearhead the industry’s drive towards standardized baggage solutions.
<Link>
www.airbus.com
* International Air Transport Association (http://www.iata.org)
Foto: PR
What role could BAG2GO play in Flight
Path 2050, Europe’s vision for aviation?
BAG2GO illustrates how we work with a variety
of partners to develop innovative solutions that
could make this vision a reality. The aim is to
enable air passengers to reach any destination
in Europe within four hours, door to door. Luggage shipment is one aspect of the process we’re
looking to improve.
SCHWERPUNKT
FOCUS
— 37
Titel
des Schwerpunkts
IT
security
Lorem ipsum dolor
Cybercrime
38
IT security: complex task for management
41
BSI head Michael Hange
42
Clean Pipe: security from the cloud
44
SiMKo 3: high-security smartphone
46
LKA centers of excellence
IT security: a
management task.
DESPITE RECENT HIGH-PROFILE INCIDENTS OF
INDUSTRIAL ESPIONAGE AND SURVEILLANCE BY INTELLIGENCE SERVICES, THE MAJORITY OF BUSINESSES
Photo: plainpicture/Cultura, iStockphoto
BELIEVE THEY ARE SAFE FROM CYBER SPIES AND
HACKERS. THE INTERNET CRIMINALS THEMSELVES,
HOWEVER, HAVE A DIFFERENT STORY TO TELL.
<Copy> Roger Homrich
IT ALWAYS HAPPENS TO SOMEONE ELSE
A study by Ernst & Young confirms the naïve attitude of many businesses. Shortly after surveillance by US and UK intelligence agencies came to light, 90 percent of 400 surveyed managers estimated the risk of industrial espionage or data theft to be very low to
medium. And they believed security mechanisms at their enterprise to be sufficient. Nevertheless, three quarters of them also
acknowledged that the threat of cybercrime is growing.
Bodo Meseke, IT security and forensic expert at Ernst & Young,
speculates on why so many businesses are blind to the cybercrime
tsunami: “People are simply not aware that this kind of industrial
espionage goes on. Very few organizations go public. And if
attacks do come to light, then usually unintentionally. The number
of incidents is higher than you’d think. We’re seeing a lot of data
theft and product imitations, and it is by no means just large corporations that are affected.” The European commission estimates
that around 80 to 90 percent of all companies have been a victim of
cyber attacks.
And then along came Edward Snowden. The publication of his
inside knowledge on NSA and GCHQ surveillance changed everything. Suddenly, data security and protection were the words on
everyone’s lips – whether in politics or business. And IT security
became a concern for top managers. According to a survey by
Price Waterhouse Coopers (PwC) conducted for the September
2013 study Industrial Criminality and Corporate Culture, a quarter
of enterprises now estimate the risk of espionage to be higher than
before Snowden’s revelations.
HACKING AS A PROFESSION
But even before all this, hacking was a lucrative service delivered
“WHEN CYBER ATTACKS HAVE A
SIGNIFICANT IMPACT ON SHARE
VALUES, IT IS NOT ALWAYS
COLLATERAL DAMAGE. RATHER,
IT IS OFTEN WHAT THE HACKERS
SET OUT TO ACHIEVE.”
Klaus Beucher, Freshfields Bruckhaus Deringer
Photos: plainpicture/Oliver Jäckel, Petrovicha/Getty Images, Alex Telfer/Getty Images
WHEN SOLDIERX, HACK3R.COM AND CODE2600 HIT, the consequences of their actions are felt on stock exchanges around the
world. Between 2010 and 2012, publically-listed companies lost
around 53 billion US dollars in value as a result of hackers. On average, it takes a whole day for share prices to recover from these
scares – which is plenty of time for rumors to circulate. These
astounding revelations are the result of a study by international
corporate law firm Freshfields Bruckhaus Deringer that underlines
the negative impact of cyber attacks on financial markets. “What’s
more, we’re seeing the first cases of investors suing senior management because not enough was done to prevent Internet criminals
getting their hands on data,” explains Klaus Beucher, cyber security expert at the law firm.
However, until mid-2013, many companies seemed to turn a
blind eye – believing that they were right on top of things. Only a
small number trusted the figures regularly published by IT security
providers, indicating that the frequency and sophistication of these
attacks is growing each year. Most of the organizations wanted
transparent, reliable proof. As Thomas Tschersich, head of
Deutsche Telekom’s 105-strong team responsible for securing
data, explains, “Even today, most companies’ risk analyses only include conventional threats, such as production downtime and nonpayment of loans. They’re not expecting cyber attacks. They think if
everything’s been fine up until now, there’s no reason it won’t continue in the same vein.”
FOCUS
— 39
IT security
Cybercrime
professionally and promoted on the Internet and at dedicated
events. A prime example is Chinese group Hidden Lynx. Its defined
mission: cyber spying. For many years, groups of up to 100 hackers
have been responsible for hundreds of attacks on companies
around the world. For a fee, the criminals attempt to penetrate IT
systems that are not protected by the latest security solutions. And
they’re successful. In late 2012, for example, Hidden Lynx targeted
almost 1,000 businesses and government agencies with a watering hole attack. They placed malware on websites that employees
at the organizations regularly visit. Then these Trojans infiltrated the
corporate networks and pilfered all the data they could find.
A favorite target is the banking sector. Over half of the world’s
50 largest banks have had their websites hacked. According to a
study by Swiss organization High-Tech Bridge, some 15 percent of
these attacks made a serious dent. For example, in spring 2013,
eight hackers got into the IT systems of British bank Barclays and
made off with 1.3 million pounds sterling. An IT employee, himself
one of the criminals, had installed a device in one of the branches
that could penetrate the network independently. But the would-be
successors of the Great Train Robbers were foiled in their attempt:
Scotland Yard managed to identify and arrest them, a rare victory
for justice in the cyber world.
ADVANCED CYBER
DEFENSE SERVICES
Organizations that do not tailor their
intrusion detection and response solutions
to actual current threats will never be able
to get on top of complex, targeted attacks.
To eliminate frustration and risk, they need
an end-to-end security management plan.
This needs to support the targeted capture
of information and deliver real-time insight.
A proactive approach not only protects
against known threats but also helps ward
off unknown dangers and initiate appropriate action.
T-Systems and RSA have joined forces to
implement advanced cyber defense services.
RSA’s intelligence-driven security approach
is based on capturing, consolidating and
analyzing all security-relevant information
from networks, systems and applications.
Security is a key challenge of big data analy-
IT SECURITY AS AN INVESTMENT CRITERION
sis. A combination of state-of-the-art IT
For cyber security expert Klaus Beucher: “The attacks we know
about are just the tip of the iceberg. They mask the true extent
of the issue.” In his opinion, many investors are yet to recognize
the high risks associated with cyberspace. And this is a prime opportunity for businesses to make IT security a concern for senior
management. Beucher continues: “Victims of these attacks have to
tousle with far-reaching consequences: lost competitive advantage,
disruption to business processes, a drop in revenue and damage
to their reputation.”
Security experts from PwC agree. They too warn of the faceless bullies in cyberspace. In its worldwide study The Global State
of Information Security in 2014, PwC observes: “Today’s businesses
are still using yesterday’s security strategies. And they are fighting
a losing battle against highly skilled individuals who are already
deploying tomorrow’s technologies.“ According to the report, the
number of security incidents in 2013 was 25 percent higher than in
the previous year. But, says PwC principal analyst Mark Lobel,
“One reason the number has increased is because companies
have invested in technologies that enable better detection of cyber
attacks – which is, of course, a positive development.”
Small and midsize enterprises are at particularly high risk.
They mostly deploy simple mechanisms such as firewalls and passwords – and these present no real obstacle to experienced hackers. “Systems such as firewalls are based on defined rules and only
work when attacks follow a specific pattern,” explains Tschersich.
“But in the long term, this isn’t enough, because professional hackers constantly change their tactics to ensure success.”
technology, expert knowledge and access to
HIGH INTEREST IN SECURITY SOLUTIONS THAT ARE
MADE IN EUROPE
A third of all companies is now looking to verify the security of their
IT and communications systems. Some 15 percent of them are
data sources such as internal early-warning
systems pave the way for establishing new
security systems.
At the heart of advanced cyber defense is a
next-generation security operations center
(NG SOC). This is where experts gather
information on attack scenarios. In the NG
SOC, specialists seek out existing and potential chinks in the armor of corporate IT and
telecommunications systems. In addition,
they investigate hackers’ motives, methods
and tools. As a result, they are able to
identify patterns and scenarios before they
are even applied.
SCHWERPUNKT
FOCUS
— 41
Titel
des Schwerpunkts
IT
security
Lorem ipsum dolor
Interview_BSI
President_Michael Hange
Interview
A WAKE-UP CALL FOR
GERMAN BUSINESS.
The days of the German Federal Office for Information Security (BSI) crying out as a lone voice in the
wilderness are over. Almost overnight, Edward
Snowden’s revelations about the surveillance by the
US and British intelligence services turned BSI
President Michael Hange into a sought-after advisor
to both government agencies and businesses.
<Interview> Roger Homrich
Interest in the BSI skyrocketed after the NSA scandal last year
– but why did it take something like this to make that happen?
Up until summer 2013, many enterprises had underestimated the extent and threat of cyber attacks and industrial espionage. In certain
corporate circles, IT security experts were seen as scaremongers.
Now, this subject is firmly on the agenda of board and management
meetings. Edward Snowden’s revelations were a wake-up call for
many – including German businesses.
How have cyber attacks become more advanced?
In 2013, we recorded a significant rise in the number of standard attacks. Between 10 and 20 percent of these were highly sophisticated
operations, orchestrated by professionals. Cyber criminals’ goal is to
infiltrate and take control of systems. Then they can steal and sabotage data, and have the power to cause untold damage to companies.
Photos: Natalie Bothur, dpa
Are enterprises out of their depth when it comes to fending off
professional hackers?
There are some great ways to significantly reduce the risk. Unfortunately, these methods are often neglected. Ensuring that connections and data are encrypted, for example, would go a long way to
stopping cyber spies in their tracks. But ask providers of encryption
techologies how many businesses were interested in their products
before Snowden came along. It certainly wasn’t many.
But is software not intrinsically vulnerable? Is that not a fact of
life in our digital world?
IT always has its weaknesses; software in particular. It is estimated
that in larger applications, around 0.2 percent of the code contains
errors, or in other words, vulnerabilities. And if you have millions of
lines of code, there are more than enough chinks in your armor where
hackers can sneak malware in and systematically attack. It would be
a great start if software vendors would tackle known soft spots by
issuing updates. However, it must also be said that many users don’t
help matters by not, or infrequently, installing patches, leaving
themselves open to cybercrime.
How can businesses protect themselves from the dangers of industrial espionage?
First of all, there needs to be someone reponsible for IT security;
someone who has a say at top management level. Then, you need to
develop a strategy. That includes defining which information is particularly sensitive – such as patents or business-critical systems and
data. These must take first priority, and every effort must be made to
protect them. With this in mind, the BSI has developed a collection of
recommendations and best practices that, if reliably put into action,
safeguard against standard attacks.
Deutsche Telekom recommends that, as far as possible, we exchange data via connections within Germany and the EU.
What’s your take?
I think it’s a very wise suggestion. Encryption and national routing
would certainly be a step forward in terms of cyber security. Another
possibility is De-Mail, which solves two key problems with the web:
firstly, the fact that it doesn’t provide any protection for confidential
information, as regular emails are as open as a postcard. Secondly,
today’s Internet standards make it is impossible to know whether the
sender’s email address is genuine or fake. De-Mail is designed as a
secure communication platform – with encrypted emails and strong
verification in the form of two-factor authentication, using a physical token and a memorized PIN code. Examples like this demonstrate
how the government is supporting secure online communication by
creating a legal framework.
<Links>
www.bsi.bund.de/EN
www.t-systems.com/zero-distance/ict-security
Attack by the
back door.
IN COMPARISON TO MAJOR CORPORATIONS, MANY
SMALL AND MEDIUM-SIZED BUSINESSES CONSIDER
THEMSELVES WELL-ARMED AGAINST THE THREAT
OF ONLINE EAVESDROPPING AND HACKING. BUT THEIR
CONFIDENCE IS MISPLACED: THEY ARE THE TARGET
OF CHOICE FOR NINE OUT OF TEN CASES OF INDUSTRIAL
ESPIONAGE REPORTED IN GERMANY.
<Copy> Roger Homrich
FOCUS
— 43
IT security
Clean Pipe
E-CRIMINALS ARE NOT SHY about coming forward. In fact, they openly
market their skills, and even set up stalls at trade fairs, with the promise of
made-to-order cyber attacks. And SMBs are the targets for some three quarters of all computer crime. Michael George, of the Bavarian intelligence
agency (Verfassungsschutz), explains the hackers’ rationale. “Attackers tend
to choose the path of least resistance. Why waste time and effort attempting
to break through a corporation’s firewall, when they can get their hands on
exactly the same valuable data via suppliers or external service providers?”
Unfortunately, SMBs often possess limited manpower and financial resources, leaving them relatively vulnerable in comparison to larger organizations.
But criminals pay little heed to the size of their target – the priority is the end
result and the big payday that follows.
And many clients are only too happy to foot the bill for their mischievous
undertakings, as the potential rewards are substantial. More than 1,200
world-leading SMBs are based in Germany – and according to analysis by
GE Capital, the financing arm of engineering giant General Electric, they
hold some 44 percent of the world’s mid-market patents. Companies of this
size are often more leery of the costs of fighting cybercrime than the potential losses. But the figures don’t add up. A successful attack typically costs
70,000 euros in lost data and expertise; by way of comparison, security specialists Kaspersky Lab estimate that SMBs only spend between 27 and 38
euros per employee and year on IT security – including consultancy, hardware and software. For an enterprise with a headcount of 500, this adds up
to a maximum of 19,000 euros annually.
Photos: Gallery Stock, alxpin/Getty Images
A WALK IN THE PARK FOR EXPERIENCED HACKERS
Half of SMBs deploy piecemeal, stand-alone security solutions, such as
basic firewalls and antivirus software – but overcoming these obstacles
is child’s play for a seasoned hacker. Industrial espionage experts at the intelligence agency of North Rhine-Westphalia confirm that SMBs are easy
targets, even for relatively unaccomplished online criminals. There is a
reluctance to invest in greater levels of IT security – time and budgets are
tight, and corresponding solutions are becoming increasingly unwieldy and
difficult to use.
But this somewhat laissez-faire approach could have disastrous consequences – threatening the viability of the business as a whole. The story of
one attack in North Rhine-Westphalia in 2013 is a case in point. Cyber criminals eavesdropped on the email traffic of its target company and one of its
international suppliers. They gained access to the financials system, and set
up a new bogus payables account. Payments due to the supplier were
diverted straight to the criminals – and this continued for several months
before detection. The SMB had little option but to file for bankruptcy – despite otherwise being in robust financial health.
This back-door method – targeting suppliers and partners – can also
imperil far larger corporations. Chinese hacking group Hidden Lynx used
malicious code to compromise the digital code-signing certificates of security outfit Bit9, gaining access to key customers in the US defense industry.
As a result, SMBs are under mounting pressure to strengthen their
defenses. But doing so could potentially entail enormous consultation, software and staff training costs. With this target group in mind, specialists at
Deutsche Telekom and its ICT subsidiary T-Systems have focused on making enterprise security more affordable. The crack team of IT, sales and compliance experts has concluded that cloud security services provide the
answer – with a variety of powerful functions including managed firewalls
and web and mail security, and intrusion and DDoS protection for mobile
workers and entire business sites.
site. This handles all two-way Internet traffic, and has already received the
seal of approval from the German Federal Office for Information Security
(BSI). The router forwards data to Deutsche Telekom’s cloud-based platform
via a secure connection. An array of mechanisms is then deployed to
‘cleanse’ the data, freeing it from viruses, worms, trojans and other forms of
malware. Clean Pipe has been tested and certified by TÜV Rheinland, and is
the first enterprise security offering to leverage the strengths of cloud computing in this way. And it focuses on prevention first, cure second: state-ofthe-art technologies, such as honeypots, identify the latest cybercrime
weaponry at an early stage, ensuring that users are protected before an attack actually takes place. For businesses looking to defend themselves
against the perils of e-crime without large-scale capital expenditure on
in-house IT security, Clean Pipe ticks all the boxes.
If a hacker can install viruses onto a user’s PC, all the data stored on that
machine is at risk. To combat this threat, Clean Pipe includes web protection
to block employees from accessing infected websites. The modular securityas-a-service offering draws on information gathered by expert organizations
for over 15 million websites, comprising billions of content pages. The websites are analyzed for dangers in near real time (200 milliseconds on average), allowing almost instant detection of contamination and spyware. This
knowledge is used to answer over 50 million requests for website assessments per day.
Clean Pipe could have saved Clearaudio from a nasty surprise. This
family-owned company, based in Erlangen, southern Germany, produces
high-end audio equipment sold in 91 countries. It is the world’s leading manufacturer of magnetic cartridges for audio systems, and has won a host of
awards for its innovative products. On its website, Clearaudio
describes its products as ‘heaven’ for TV and hi-fi aficionados – but when
a Chinese rival recently gained acclaim at the High End show in Munich for
its new turntable bearings, it came as a highly unpleasant bolt from the
blue. Clearaudio had developed and patented the corresponding components, and was preparing to unveil the new technology itself. It later came to
light that Chinese hackers had managed to steal the designs from
Clearaudio’s database.
<Contact> bernd.koenig@t-systems.com
<Links>
www.t-systems.com/security
www.t-systems.com/zero-distance/ict-security
CLEAN PIPE SERVICES
• Detects and defends against e-crime
• Protects against malware-infected emails
and websites
• Blocks websites with illegal or criminal content
• Provides secure connections for laptops
• Protects websites and web services from
DDoS attacks
• Ensures a secure network infrastructure
SECURITY STRAIGHT FROM THE CLOUD
This cloud-based security solution, named Clean Pipe, is elegantly simple. A
highly secure router, manufactured by LANCOM Systems, is installed on-
across multiple business sites
No more
compromises.
CAN’T DECIDE BETWEEN ENTERPRISE-GRADE SECURITY AND FLEXIBLE ACCESS
TO PERSONAL APPS AND SERVICES? WITH THE NEW SIMKO3 CRYPTOPHONE
FOR SECURE MOBILE COMMUNICATIONS, THERE’S NO NEED TO COMPROMISE
ON EITHER. MICROKERNEL TECHNOLOGY SUPPORTS TWO OPERATING SYSTEMS,
WHICH RUN IN PARALLEL ON ALL SIMKO3 DEVICES. ONE OS OFFERS IRON-CLAD
PROTECTION, PERFECT FOR CORPORATE USE. THE OTHER IS A STANDARD
ANDROID SYSTEM FOR PERSONAL USE.
<Copy> Thomas Heinen
WORK
CONFIDENTIAL AND SECURE.
SIMKO3 COMBINES THE ANDROID OPERATING SYSTEM, virtualization technology,
a secure app store, and data encryption. In just three swipes, users can switch from
the regular smartphone OS to a highly secure environment, where they can communicate and store data – safe from prying eyes and eavesdropping.
Hi #þĕ≠∆
Aber das
SECURE EMAIL: Users can send and receive encrypted messages, and
their address book and contact data are completely protected. This
means that sensitive information, for example the date of a product
launch, remains classified.
•Confidential, secure email communications
•End-to-end encryption in line with S/MIME
•Compatible with all leading email systems
ENCRYPTED ACCESS TO BUSINESS DATA: Employees can call up data
from the corporate network – encrypted and via a highly-secure VPN tunnel. This is only possible if the user inserts the cryptocard that has been
personally registered to them.
•Encrypted access to corporate data
•Highly-secure VPN tunnel to corporate network
•Data encryption and user authentication
via cryptocard
SECURE APP STORE: T-Systems pre-installs diverse business apps on
the device, giving users everything they need to work. Companies can
deliver their own industry- or role-specific applications via a secure app
store.
•Secure business apps
•Additional apps via company’s own app store
TAP-PROOF PHONE CALLS: Encrypted Voice over IP communications
ensure that users can make confidential business calls on the go – even
to landline networks.
•Encrypted VoIP telephony, even to landlines
•SRTP and ZRTP protocols
•German government SNS standard available soon
SCHWERPUNKT
FOCUS
— 45
Titel
IT
security
des Schwerpunkts
Lorem ipsum dolor
SIMKO
WHAT MAKES SIMKO STAND OUT
VPN
MICROKERNEL TECHNOLOGY
A highly-secure microkernel is central
to SiMKo3. It creates two completely
segregated Android operating systems that run in parallel on the device:
a protected OS for corporate use, and
a standard Android system for personal applications.
CRYPTOCARD
The cryptocard encrypts all data and
login details. It features a dedicated
cryptoprocessor that generates unextractable keys. The MicroSD card
is a vital component of all SiMKo devices, storing security certificates
and creating a digital ID.
VPN TUNNEL
The smartphone boasts an integrated
VPN client for safeguarding data
transfer. All voice and email communications from the corporate OS are
encrypted and transmitted via a
highly-secure VPN tunnel. The security certificates from the cryptocard
are deployed for this.
LIFE
PERSONAL AND CUSTOMIZABLE.
Photos: T-Systems, PR
APPS AND CLOUD SERVICES MAKE SMARTPHONES the perfect mobile devices. But
public apps aren’t always secure: they request permissions that allow them to use certain
data and functions. For instance, a simple flashlight application might require access to the
user’s entire address book, copying it to a server in the cloud. Users decide for themselves
which apps they download to their personal environment – while corporate data and
applications remain safe and sound in the secure OS.
CONSUMER APPS: Users can access apps from multiple stores and can authorize additional sources. In contrast to SiMKo2, this device supports full
customization of the personal OS environment in line with user requirements.
Emails, instant messaging (IM), games – everything’s possible.
•Customizable environment
•Flexible access to apps
•Complete segregation from
business data
SHARED EXPERIENCE: Smartphones are always to hand, ready to capture
any moment and record any event. A couple of taps is all it takes to send a
photo to an album in the cloud, or upload it to a social network. But once
content has been shared, users have no control over what happens to it. When
using this OS, however, smartphone owners decide for themselves which information they share – while their sensitive data remains protected.
•Photo sharing
•Access to social networks
•Support for cloud-based apps
ALWAYS ON: IM apps are extremely popular. With access to local address books
and contacts in the cloud, they allow users to stay in touch with family and friends.
However, most messaging apps copy contact lists to an external server. On this
OS, users decide for themselves whether to share their address book. Their business contacts remain secure at all times.
•Anytime, anywhere messaging
•Arrange appointments
•Constantly in touch
<Contact> stephan.maihoff@t-systems.com
<Links>
www.t-systems.com/security
www.t-systems.com/safety-security
Crime-fighting
partnership.
The close collaboration between the ICT
Industry and police forces in germany enables
rapid responses to cybercrime.
<Copy> Thomas van Zütphen
FOCUS
— 47
IT security
LKA North Rhine-Westphalia
“OK, team – get ready!” Police inspector Thomas Becker has flown the
BK 117 chopper at 250 km/h through the night. At this speed, the journey
from Düsseldorf to Bielefeld takes just 40 minutes. The helicopter belongs to
the air support unit of the North Rhine-Westphalia police department. It hovers
briefly over a patch of fallow land in the neighboring industrial park. Becker
stops the rotors and lands, safely delivering his four passengers. They open
the door, duck their heads, and use their GPS device to find their way to their
final destination. The officers pause in front of the factory building. Ten minutes later, the server is secured. The cyber attack has been foiled.
Police records later confirm that some 20 officers at the Landeskriminalamt (LKA), the state criminal police office in North Rhine-Westphalia, had
spent the previous 18 hours gathering vital information on the case. They had
analyzed the source codes for a variety of software programs, run system
tests, checked hundreds of log files, detected two backdoor programs and
dissected almost 100 extremely complex binaries. As a result, they were able
to identify the two servers being deployed in the attack. They then traced the
server host, and established the individual actually responsible for the criminal act. They placed 357 phone calls in total, to executives at the targeted
company, prosecutors, judges and fellow team members. They discussed
canceling leave for all staff, the composition of the four-man team that would
visit the site, tactics, recalling the off-duty specialist back to the office, obtaining a search warrant and getting the specialist to program a script for the operation. The on-site deployment would end at 3:00am.
Photo: Oliver Krato
Convention on Cybercrime
The police have their own made-to-measure human resource software to
document and manage over 500 man hours’ worth of departmental meetings, staff deployments and video conferences. But it is not just about efficient internal teamwork. It is also about working hand-in-hand with IT security
chiefs at the organizations undergoing the attack. “Run-of-the-mill” crime,
such as trafficking of drugs, weapons or humans, can involve as many as ten
different agencies on both sides of a national border. And it can be weeks
before the front-line police actually go into action. But e-crime demands a
rapid response – the criminal activity could involve a Polish IP address or
Swedish servers, for instance, or be perpetrated by hackers in Estonia. In
these scenarios, officials can seek a preservation order or make a subsequent mutual assistance request, based on the international Convention on
Cybercrime.
Cyber attacks must be detected rapidly and countered swiftly; when firstline-of-defense mechanisms such as firewalls and spam filters have failed,
every second counts. And it can often take a long time just to identify the
source of the threat, due to the complexity of the programs used. As Michael
Bartsch, Head of Sales for secure mobile communications at T-Systems, explains, “Time is of the essence if a company has suffered a security breach
– they fear losing crucial data and invaluable knowledge.”
Bartsch chairs the working group on public security at BITKOM, Germany’s leading IT industry association. He also played a pivotal role in establishing a partnership between the network of German IT organizations and
the LKA of North Rhine-Westphalia. The alliance – which welcomed the LKA
of Baden-Württemberg in March 2013 – benefits both government agencies
and businesses. As Bartsch emphasizes, “Police authorities have front-line
experience and operate a nationwide computer crime reporting service. This
means they are generally far quicker at identifying and understanding
the new technologies that these criminals use for their damaging activities.”
Thousands of attempted security breaches are neutralized by firewalls, spam
filters and other mechanisms. But as Bartsch continues, the specialists at
Thanks to BITKOM’s engagement with the
LKAs, <1> the criminological <2> and
forensic knowledge and expertise <3> of the
police force become tools in businesses’ fight
against cybercrime.
<2>
<1>
Cyber attacks are vastly underreported
However, enterprises often attempt to fend off digital enemies themselves –
sometimes spending days doing so. They only contact official government
agencies at a late stage. Their reluctance is often due to concerns about potential negative publicity. As Dieter Schneider, president of Baden-Württemberg’s
LKA explains, “Many companies wait until a Friday before contacting the authorities, when crucial time – and data – has already been lost. It is essential
that enterprises and security agencies work together in a spirit of trust. This is
the only way to combat e-crime without losing valuable time when an attack
first takes hold.” Experts believe that such breaches of security are vastly
underreported, because many organizations fear for their reputation as a reliable partner if investigations are made public. This is why the two LKAs make
concerted efforts to build confidence in the professionalism of the
police and the justice system in dealing with such sensitive situations. However, German law requires businesses to at least inform their own customers
about an incident of this nature.
Some 70 percent of German businesses have already suffered at the
hands of cyber criminals – including the theft of credit card details, DDoS
attacks and the crippling of company websites. Thousands of SMBs are targeted every day, and a quarter of private households have been compromised
at least once. Dieter Kempf, President of BITKOM, explains: “Cybercrime is
rife – and in our increasingly always-on society, it’s going to be really tough to
eradicate. The list of victims reads like a Who’s Who of big brands. Nowadays,
when a new case comes to light, other companies are more likely to say “Welcome to the club!” than to point the finger of blame.” And when lightning
strikes, says Kempf, the chief concern is damage limitation. In these situations,
state-of-the-art security technology is in high demand – as are specialists with
the expertise to put it to good use.
Security alliance strengthens defenses
The LKAs and BITKOM collaborate to exchange insights and resources; the
LKAs can offer first-hand knowledge of criminal activities, while BITKOM
grants access to specialists in the world of business and IT. What’s more,
these partners gain crucial experience from jointly-run workshops. Uwe
Jacob, head of Düsseldorf’s LKA, explains the benefits of this alliance: “It enables us to defend businesses from attacks more effectively, to identify the
causes, and to pursue the perpetrators. This means that companies have the
support they need if they are attacked – but they can also count on our assistance when developing preventive measures.”
The alliance recently traced a case of cybercrime back to the USA. After
the operation, the specialists in North Rhine-Westphalia were able to identify,
locate and detain the human perpetrators. The investigators in Düsseldorf
made their final phone call to the FBI at dawn the following day. But within
hours of the US authorities arresting the hackers, anonymous activists had
posted a video online. And their message was simple: “We are growing, you
cannot stop us. We do not forgive, we do not forget – just expect us.”
<Contacts> cybercrime@polizei.bwl.de
cybercrime.lka@polizei.nrw.de
michael.bartsch@t-systems.com
<Links>
www.t-systems.com/security
www.t-systems.com/bestpractice/report-cert
<3>
Photos: Oliver Krato
Düsseldorf’s e-crime center of excellence and the ‘cybercrime and digital
footprints’ department in Stuttgart can gain crucial insights from these failed
attacks – in addition to the information obtained by police. “Every day, we
learn more about how these criminals upgrade their systems and evolve their
methods. This information can help the industry arm itself at an early stage,
developing the technical weaponry necessary to strike back in the cyberwar.”
In contrast, experience shows that IT departments at BITKOM’s partners
tend to be more familiar than police forces with large-scale corporate infrastructures that fall victim to online crime. As Bartsch highlights, “Thanks to
their networks of contacts, our people can call a software engineer in the
middle of the night, or a core product specialist in the USA. This enables us
to take faster and more targeted action.” The LKA centers of excellence in
Stuttgart and Düsseldorf operate around the clock, and can set up task forces
to handle incidents affecting major IT environments at a moment’s notice.
And if needed, they can bring external experts on board, thanks to the partnership with BITKOM.
FOCUS
— 49
IT security
Interview_Usable security expert_Prof. matthew Smith
Interview
“iT securiTy needs To work
around The user – noT The
oTher way around.”
We need to invest more time and money into making IT security easier
to use. Otherwise people won’t use it, says Professor Matthew Smith. The
IT specialist and expert in usable security and privacy talks about the
complexities of app permissions, vulnerabilities in program codes, and a
lack of IT security education in universities.
Professor Smith, IT security solutions aren’t a new concept.
Encryption and other tools to make IT more secure have existed for years. Why don’t we use them more often?
Up until now, most security developments have been based on
the idea that the user needs to work around the technology. They
have to learn how to use the tools correctly – and service providers don’t seem to be interested in whether their customers manage that or not. This attitude needs to change – if you want to
develop useful IT security solutions, the technology has to fit to
the user’s requirements. We need systems that are so smart and
intuitive that users can operate them without any problems.
Generation Easy is putting pressure on IT departments and
external providers. They want intuitive software. Does IT
security need to fit in with these demand too? I’m thinking
in terms of apps for smartphones and tablets.
Apps are key when talking about usable privacy. When people
install apps, they rarely read through the security settings for the
app permissions. And that’s where it says exactly what data an
app can access. It’s intentionally unclear. Many companies that
offer free apps still want to make money – for them, the user is
the product, not the service. For instance, they sell the app user’s
data.
Photo: personal snapshot
So would you ban these apps?
No, that’s not what I mean. It’s fine for the user to decide for
themself to share personal data. But what data apps can access
needs to be more transparent. We have developed an application
for Android that clearly shows what information an app can call
up. If it uses your contacts, then our program selects a contact
from your phone book and shows something like, “This app can
see your mom’s telephone number”. If the app can access images
and the Internet, our application selects a random picture and
displays the message: “This app could send this picture over the
Internet.”
And will this help?
We conducted a study that demonstrated that transparency has
a significant influence on users’ installation patterns. This was
especially true of apps you wouldn’t think use personal data. For
example, why would a torch app need to collect your contact
data? You might want an app to be able to capture information
on your current location – but if it can turn the camera on, our
application will display your camera image during installation.
In our study, this deterred people from downloading these apps.
Doesn’t security come into the picture a little too late?
Aren’t we just trying to patch over holes instead of stopping
them forming in the first place?
That’s to do with usability as well. Many problems are caused by
the complexity of software development. Over the course of several
studies we’ve questioned hundreds of developers and administrators and evaluated different systems. We were forced to conclude that many developers and administrators have no idea
where the security vulnerabilities in their systems are. That’s the
root of the problem.
Have developers and administrators just got too much on
their plates?
We have to defend the developers – they are normally under
huge time and cost pressure. The systems are extremely complex. It’s practically impossible for them to pinpoint weaknesses
and fi x them in millions of lines of code. But an attacker only
needs one mistake to be able to get into the system. It is unbelievable what kind of weak spots professional attackers find – and
how they exploit them.
What can we do to prevent this?
Security codes are highly complex and difficult to program. We
need to provide user-friendly programming tools and APIs that
can be used to reduce the number of security weaknesses. And we
must provide future programmers with better IT security education. In many universities it isn’t even a compulsory subject – but
it needs to become an integral part of any basic IT course. It’s the
human aspect in particular that we need to be aware of if we
want to get the problem of unsecure systems under control.
<Links>
www.uni-bonn.de
www.t-systems.com/security
“The energy
Internet is coming.”
VISIONARY JEREMY RIFKIN TALKS TO DR. FRANK SCHMIDT,
HEAD OF THE ENERGY BUSINESS UNIT AT DEUTSCHE
TELEKOM, ABOUT THE CONVERGENCE OF ELECTRICITY
AND COMMUNICATIONS NETWORKS, ZERO DISTANCE
BETWEEN UTILITIES AND CONSUMERS, AND THE TECHNOLOGY PLATFORMS BEHIND IT ALL.
<Copy> Thomas van Zütphen
Mr. Rifkin, are you pleased with the current pace of the
third industrial revolution – the convergence of communications, information and energy technology?
Jeremy Rifkin: Absolutely. The European Union has made a
formal commitment to establishing the necessary technology
infrastructure. And Germany, with its conscious political decision to move away from fossil fuels, is a driving force of this
development. But I think Dr. Schmidt can elaborate further.
Frank Schmidt: Energy companies’ business processes are
undergoing significant change. Traditional utilities are evolving into service providers. The value a customer generates is
no longer about how much electricity they use, but more about
how much they are willing to pay suppliers to manage the
overall energy consumption for their household. The industry
is facing the same decisions and turning points that the ICT
sector has already been through.
You mean that in the future, ‘content’ will be provided by
consumers in the energy sector, too?
Schmidt: Precisely. Energy providers are currently going
through the same transformation as IT players over the last
decade. Back then, it was all about consumers producing Internet content themselves. Now it’s customers generating
electricity. At first glance, this doesn’t seem like a good thing
for utilities. But development is unstoppable – and it brings
great opportunities. I am certain that the central grid will continue to play a significant role.
Rifkin: Yes, the electricity grid is more important than other
networks. Only by interlinking the five pillars of my plan, can
we create a completely new technology platform. And this will
become the first intelligent infrastructure in history. First, we
need to convert every building in Europe into a personal power
plant – just as you have a personal computer or cell phone.
Solar energy can be captured on the roof, wind energy from the
sides of the building, and geothermal heat from beneath the
foundations. Even waste can be converted into electricity. And
energy companies need to be sufficiently fit and agile to manage this colossal number of suppliers. In Germany alone, we’re
talking about 40 million households.
So large-scale solar parks, high-voltage power lines and
huge offshore wind farms are only the tip of the iceberg?
Schmidt: Utilities need to bring the entire energy generation
and supply system down to a smaller scale. They need to decentralize it and view regions as micro grids that communicate
with each other and exchange electricity. A key element of this
is the integration of ICT and energy networks. This is the only
way to support truly smart metering.
BEST PRACTICES
— 51
Discussion
Jeremy Rifkin
On the same page.
Jeremy Rifkin (left)
and Dr. Frank Schmidt
expect to see millions
of new micro markets
emerge in the energy
sector.
Rifkin: That’s right. And it will pave the way for a European
‘energy Internet’ where millions of stakeholders produce tiny
amounts of green energy and trade it with each other. They
store this power in hydrogen, in the same way we store data in
digital media. If they don’t need all of the electricity, they sell
it, simply by opening a mobile app on their cell phone and
transmitting the excess through the energy Internet – from
the Irish Sea all the way to eastern Europe, for example. It is
just the same as when you create information, store it in digital form, and then post it online.
Schmidt: Yes, energy is for sharing. Thousands of small markets will emerge at micro grid level. And consumers will interact
with each other. But they need someone to deliver the communications infrastructure, provide applications and manage
billing. And that is where energy companies and ICT players
come in.
The energy market of the future
American Jeremy Rifkin is advising the European
Union and the German government on the country’s
transition from fossil fuels to renewables. For him,
Europe will be the first continent to enter the third
industrial revolution. And he has created a five-pillar
infrastructure plan for the development of
the corresponding technology platform:
1. Switch to renewable energies
2. Turn buildings into micro power plants that generate
their own electricity from sustainable sources
3. Create repositories in all buildings and at key points of
the grid to support the storage of surplus energy
4. Deploy Internet connectivity to transform every
Photos: Heiko Laschitzki
continent’s electricity grid into an energy-sharing
How will this affect utilities’ customer relationships?
Schmidt: When customers become suppliers, contractual
partners and competitors, we call them prosumers – which is a
portmanteau of consumer and producer. By the same token,
utilities will become energy service providers, delivering tips
on how to generate electricity at home. Based on accurate consumption data, they will be able to advise customers on how
system (inter grid) so that excess power can be made
available to others
5. Replace conventional transport fleets with electric and
fuel cell vehicles that can buy and sell power via a
smart, interactive network
Networker
Dr. Frank Schmidt, head
of Deutsche Telekom’s
energy business unit, is a
specialist for networks
and infrastructure-based
markets, and has advised
regulatory bodies across
Visionary
Germany and Europe for
many years.
Industry expert Jeremy
Rifkin has published 17
books to date on the
technical and scientific
developments that impact
the world of work,
business, the economy,
and society.
to save energy, rent out micro-cogeneration units and help
them manage household appliances. Customer relationships
will not get much closer than in the energy sector – this is zero
distance in action.
Rifkin: I agree. And these developments won’t end here. Many
aspects of capturing and marketing excess energy will become
automatic. Consumers will set up their computers and cell
phones to monitor the grid while they are at work. As soon as
demand and prices rise, the device will sell the excess energy
back to the grid – with no intervention from its owner.
So we’re talking about an Internet of Things, that...
Schmidt: ...manages my personal end-to-end energy needs –
yes, you’ve got it. Small generation units will communicate
with appliances and devices independently, including with
millions of cars.
Rifkin: Correct. This new platform will combine communications, energy and logistics. It will allow us to reach out and
connect everything to everything using sensors and software.
By 2020, the Internet of Things will comprise somewhere in
the region of 50 billion devices, and a trillion sensors will be in
place within the next 30 years. There is no limit to the data
that can be gathered in this way. You can find out what is happening in warehouses and distribution centers; how traffic is
moving on the road, and how it’s affecting your deliveries and
electricity prices; how weather conditions will change in the
next two hours; how many people bought wellington boots
and how many bought espadrilles at which department store
– and the list goes on. This provides us with a nervous system;
a neural network for continental markets. And just like the Internet, this network must be open source.
Schmidt: This is where the whole issue of big data gets really
exciting – when not only companies but consumers, too, are
leveraging data from multiple industries. Combining consumption facts and figures with other structured and unstructured information will reveal new insight and enable more efficient energy management for each and every household.
value chain in real time, for example by using advanced analytics to create algorithms – just like Facebook does. And
whether you are a household, a small business or a large enterprise, those algorithms enable you to create software for
monitoring and managing your thermodynamic efficiencies,
dramatically increasing your productivity. These figures are
going through the roof. The real mission of the Internet of
Things is not just to monitor processes using IT – but to translate data into value.
You mentioned open source technology as one of the key
elements of the inter grids of the future. But how can you
protect customer data and ensure the tight security of
these IT infrastructures?
Rifkin: The idea of creating an inter grid that is as open as
the Internet means that we have to implement stringent security measures. But this isn’t rocket science either. And the
technology can be used by large and small enterprises. We
need a self-governing model where the business community,
not-for-profit organizations, and governments work together
to ensure everyone sticks to the rules. The key really is selfmanagement.
Schmidt: Security is a critical success factor of the new energy
markets and data protection is key if these models are going
to be accepted by the public. Segregating consumption data
presents no problems from a technology perspective. What’s
more, it is relatively simple to set up standardized interfaces
with universal protocols that enable micro grids to communicate with each other and not function as standalone silos
with their own algorithms. This is exactly our approach. We
provide standardized platforms that help manage the cost of
switching to renewable energies. We should not lose sight of
the long-term objectives. And our own smart solutions will
help us meet these goals.
<Contact> zitta.moncada@t-systems.com
<Links>
www.foet.org/JeremyRifkin.htm
What you’re saying, then, is that big data can benefit everyone when it comes to personal energy management?
Rifkin: That’s right. And it’s not rocket science. You can do
this in your own home using an app or other software. It allows us to exploit the potential of big data across the entire
www.t-systems.com/zero-distance/energy
Photos: Heiko Laschitzki
intelligente-netze.telekom.de/energy
BEST PRACTICES
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Eco-friendly electricity generation
SMART METERING INFRASTRUCTURE FOR
BERLIN APARTMENTS.
A forward-looking, decentralized energy concept involving electricity generation at home is beginning to take
shape in Berlin. Utility company URBANA delivers electricity and heat to tenants in the German capital using
eco-friendly technologies. Now, the company is raising
the bar by installing co-generation units at selected rented properties. The systems meet all heating requirements and around half of electricity demand for the
households. Deutsche Telekom is providing the infrastructure and fitting the smart meters. The telco’s services range from the capture and secure transmission of
meter data, to processing, right through to billing, leveraging a cloud-based SAP application. The project aims
to connect around 2,000 meters, with plans afoot to extend its scope to 10,000 in the future.
<Contact> sabine.bednarzik@t-systems.com
Zero outage in place of chaos
IT QUALITY MANAGEMENT
Photos: T-Systems, iStockphoto
ENSURES SATISFIED CUSTOMERS.
The quality of IT services is a make-or-break factor when it
comes to customers’ satisfaction with their provider. As such, it
forms the basis for long-term partnerships built on trust. Reliability and peace of mind are top priorities for today’s enterprises. T-Systems Zero Outage program guarantees high quality support for business processes and highly available IT
services. Back in 1994, the Chaos Report published by Swedish consultancy the Standish Group revealed that a third of all
IT projects fail. And this figure remains unchanged to this day.
But how do providers gauge the quality of their offerings? A
recognized method is the TRI*M index from TNS Infratest. The
triple M stands for measuring, monitoring and managing. This
scale provides insight into how satisfied a company is with its
provider. IT players with a high score boast the happiest customers. T-Systems has over 20,000 certified employees and
delivers 99.999 percent availability from secure, fail-safe twin-core
data centers. These statistics were enough to win the Deutsche
Telekom subsidiary 84 points in the latest TRI*M survey, putting it
among the top 10 percent of European providers for customer satisfaction. The Zero Outage IT quality management program played
an important role in achieving this score.
<Contact> stephan.kasulke@t-systems.com
Interview
RECOGNIZING EXCELLENCE.
Best Practice spoke to Dr. Monika Bias, in charge of certification for individuals at TÜV Rheinland.
Dr. Bias, what requirements do service managers need to
fulfill to receive a certificate?
We test individuals’ skills and award certification based on defined criteria. Of course, the quality of the courses and the instructors plays a key role. And we work closely with organizations such as T-Systems to ensure effective knowledge transfer.
We also take candidates’ experience from their education or
careers into account. We openly publish all criteria for our certification programs in our database at www.certipedia.com.
The certificate is only valid for three years. Why’s that?
In today’s world, knowledge becomes outdated fast. Similarly,
legislation, processes and even values change rapidly. For this
reason, individuals must prove that their skills are up to date.
They can acquire the required expertise from training courses
or from their day-to-day work.
Have you noticed a rise in the demand for certification?
Definitely. The demand for our certificates is increasing all the
time. Requirements are evolving at an ever-faster pace in to-
day’s business world. Yet there is a great deal of knowledge
that cannot be acquired from universities and other conventional educational institutions that are sometimes a bit
behind the times. What’s more, enterprises are becoming more
international and are working with a growing number of
external partners. This creates an even greater need to establish quality standards for employees and other stakeholders.
TÜV Rheinland’s certification programs help companies meet
these demands – independently, transparently and for the
long term. Since mid-September 2013, 56 employees from
T-Systems have been certified as senior and executive service
managers.
Certified staff
Almost 60 T-Systems service managers
have already completed the certification
program run by Dr. Monika Bias for
TÜV Rheinland.
Photos: Wolfgang Pientka, PR, Marcus Brandt/ddp, andresr/Getty Images
Businesses that focus on the customer throughout the entire CRM
lifecycle are a step ahead of the competition. Professional service
managers align their company processes with the needs of their
users. And TÜV Rheinland recognizes excellence in this field – by
awarding certification to individual employees. After successfully
completing a training course, T-Systems staff receive a certificate, acknowledging their service management skills.
BEST PRACTICES
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Healthcare card
PUTTING GERMANY’S NEW HEALTHCARE
NETWORK THROUGH ITS PACES.
It’s the second day of your vacation and you’re in pain. The wisdom tooth
causing the trouble is due to be removed in six weeks and your own dentist
has all the details, including the x-rays. But you’re not in your home city, so
to treat the current problem, new images will probably be needed, which
means additional radiation exposure. In a just a few years from now, situations like this will be a thing of the past for German health insurance customers. In the future, the vacationer will simply enter their next-generation
healthcare card into a dedicated reader. And the dentist will insert a card
proving that they are an authorized healthcare professional. By keying in a
PIN, the patient will then be able to share the existing x-ray images stored in
a secure personal file with the dentist. All records are encrypted before they
are sent. In contrast to email communications, the system never transmits
or saves data that has not been encrypted.
To pave the way for this development, initial trials of the application will run
this year. The focus will be on verifying and updating insurance customers’
master data online, on qualified electronic signatures (QES) and secure
Internet access for doctors and dentists. The QES provides a solid foundation for future medical applications. These digital signatures are legally
compliant, enabling doctors to sign important documents such as referral
letters and send them electronically via a dedicated healthcare network.
gematik, the German association in charge of developing solutions for the
electronic healthcare card, has tasked T-Systems with testing two key features: secure PIN-protected access to patient data, and the electronic signatures that enable medics to digitally sign PDF documents. The Deutsche
Telekom subsidiary will deliver all necessary components for the upcoming
pilot project to over 500 doctors, dentists and psychotherapists, plus five
hospitals in Bavaria and Saxony. The equipment includes a device which
provides access to a VPN, and the card reader.
Moreover, T-Systems is developing identity cards for doctors and other
healthcare employees that will allow staff to log on to the digital healthcare
network. And the ICT provider is designing an online portal where medical professionals can order their cards. In April 2013, gematik also tasked
T-Systems with the development of an operating system for the next generation of healthcare cards. This project is currently in full swing.
<Contact> martin.goedecke@t-systems.com
Raffles Medical Group
MORE TIME FOR PATIENTS.
At medical facilities around the world,
administrative tasks are eating away at
employees’ precious time. The Raffles
Medical Group in Singapore recently opted to introduce an SAP system to benefit
its million-plus patients. Over the course
of two years, T-Systems will roll out SAP
ERP and BI to all members within the
Group, including specialist doctors, insurance providers, and a hospital. The latter
will also receive the SAP industry solution
IS-H and the hospital information system
i.s.h.med – delivered by T-Systems. As a
result, the medical facility will be able to
better manage its finances and materials,
streamline billing of doctors’ services,
and trace orders of medicines to the moment they are given to a patient. What’s
more, the new system will enable staff to
request blood tests or treatments directly
from the bedside.
<Contact> amit.mahajan@t-systems.com
Dynamic cloud platform
Cloud-based services have become commonplace in the business world. Many IT heads have already placed their SAP operations in a private cloud. And they leverage infrastructure-asa-service (IaaS) offerings to transfer virtual servers between
their own data center and that of their ICT service provider –
as and when they need to. But many workloads are still run inhouse. This is why IT departments have long sought a standardized platform to manage all applications. This would combine
infrastructure- and software-as-a-service models, enabling data
to be exchanged between various workloads in a central infrastructure, with no impact on performance.
To this end, T-Systems is implementing a dynamic cloud platform at its data center in Munich. For the first time, this gives
customers standardized access to all cloud offerings from infrastructure-, to collaboration-, to software-as-a-service solutions.
The new platform delivers unlimited scalability and can quickly
and flexibly integrate new services via automated processes.
Moreover, updates and maintenance work are carried out with
no disruption to ongoing operations.
NO MORE CLOUD SILOS.
<Contact> christiane.prutscher@t-systems.com
Arrival Control
ACCURATE ARRIVAL TIMES.
When plumbers or service teams arrive late, customers are
naturally angry. To provide better insight into the estimated arrival times, Deutsche Telekom has developed a free app: Arrival
Control. Via text message or email, the app sends a link to a
map which shows the precise location of the person as well as
their ETA. Users do not need to install the app: they simply open
the map in a browser. Moreover, all data remains on their device
and is automatically deleted once the person or goods have ar-
Download the app for free from Google Play or the Apple App Store.
rived. The solution can be integrated into existing deployment
and logistics systems. Allianz Global Assistance (AGA), for
example, uses Arrival Control to inform drivers who have experienced a breakdown when assistance will reach them.
<Contact> mario.riedel@t-systems.com
BEST PRACTICES
News
— 57
RSA
PARTNERS IN
THE FIGHT AGAINST
CYBERCRIME.
Detectives that work alone to ward off cyber attacks are
of no real benefit to businesses. That’s why T-Systems
has teamed up with RSA, the security division of IT
company EMC, to provide large corporations with even
more comprehensive solutions. These offerings range
from risk analysis, to security strategies, to highly developed cyber security services. The first step is to combine both partners’ expertise and knowledge and jointly
develop a next-generation Security Operation Center
(SOC) – a facility designed to monitor enterprises’ IT
security and ensure that they have the latest tools to combat attacks. This collaboration with RSA
was initiated by T-Systems’ new cyber
security business unit, founded
to consolidate the ICT provider’s
expertise in this field.
<Contact> gerd.enste@t-systems.com
App
BEST PRACTICE TO GO.
Best Practice is also available on the move.
BP+, the Best Practice app for iPad, can be
downloaded free of charge from iTunes.
The virtual magazine offers even more information and content. In CIO Talk, for example, Christian Pfromm, CIO of BHF-Bank,
stresses the pivotal role of IT as a business
enabler in 360-degree transformations.
Dan Bieler, Principal Analyst at Forrester,
says that “change has to come from the
top,” and underlines that corporate IT is no
longer just a cost center but an essential
part of the business. Moreover, we profile
five startups that are changing the rules
of the game and challenging established
value chains. Innovative solution BAG2GO
shows that long-standing market players
have not lost their touch: Airbus, RIMOWA
and T-Systems have teamed up to create a
smart suitcase that travels independently of
its owner and makes lost luggage a thing
of the past. In addition, the Best Practice
app features the latest on the public debate
on privacy. A report highlights how today’s
ICT security solutions are not just designed
to prevent cyber attacks and industrial espionage but can also protect government
organizations thanks to highly secure
cloud-based applications.
<Contact> bestpractice@t-systems.com
Scan the code to
download the Best
Practice+ app, or visit:
itunes.apple.com
Landesbank Baden-Württemberg
FASTER PROCESSING
OF LOANS WITH DOCU-
Photos: T-Systems (2), PR, iStockphoto (2)
MENT MANAGEMENT.
People who are financing a house do not want to wait long for
their money. Now, advisors at Landesbank Baden-Württemberg
(LBBW) can process loan applications efficiently on screen in
a dedicated electronic file. To this end, T-Systems has tailored
document management solution Alfresco Workdesk to the
bank’s needs – adding support for electronic loans and integrating it with the existing enterprise content management system (ECMS). In the past, financial advisors and their clients filled
out forms on paper. Thanks to the new system, they can now do
this digitally. As a result, applications can be processed immediately and there is no unnecessary paperwork. What’s more,
quality has also improved: the new-look ECMS gives advisors
greater visibility into the entire loan application – from initial request through to payment.
<Contact> tobias.wolf@t-systems.com
Illustration: Peter Thulke
CARTOON