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German industry looking at disruptive tech

by on30 January 2020

Information Services Group report

Enterprises in Germany are more interested in emerging technologies like artificial intelligence, the Internet of Things and digital platforms, and are looking to digital business service providers to help them use these solutions to grow their businesses, according to a new report published today by Information Services Group (ISG)

The 2019-2020 ISG Provider Len Digital Business – Solutions and Service Partners Report for Germany finds enterprises in the country focused on improving the digital customer journey and making the product development lifecycle more efficient.

ISG DACH partner Johanna von Geyr said: “CEOs and chief digital officers must understand that artificial intelligence, the Internet of Things, digital platforms, open-source and workplace experience tools have a high influence on an enterprise’s agility, costs and productivity. German businesses are using these technologies to improve the customer journey and provide new digital products.”

The report said that digital business technologies can lead to a disruptive revolution across all business processes, including sales, retail, production, supply chain, product design and human resource management. In many cases, companies are embracing digital business by becoming software developers and adopting DevOps methodologies and aligning more closely with users.

"Many German enterprises are focusing on enhancing customer experience and are turning to full-service IT providers to help them, rather than to boutiques with more limited knowledge of the supporting technologies. Service providers increasingly offer digital consulting, business model development, organizational consulting, process optimisation, system integration and change management. Provider experience in data analytics, data sciences, machine learning and artificial intelligence is extremely important to German enterprises ,"the report says.

German enterprises are also focused on digital product lifecycle management and in creating smarter and more end-user-centric products and services. Customers increasingly are turning away from rigid and non-personalized products and services and moving to new ones, the report says.

Companies concentrating on digitization and customer focus can expect a 20 percent increase in efficiency during development, a 15 percent reduction in time-to-market, and a 10 percent reduction in development costs.

The report for Germany identifies the capabilities of 56 providers across four quadrants: Customer Journey Services, Digital Product Lifecycle Services, Digital Backbone Managed Services and Blockchain Services.

It names Accenture, Atos and IBM as leaders in all four quadrants and Capgemini and DXC Technology as leaders in three. Cognizant is named as a leader in two quadrants, and Arvato Systems, CANCOM, CGI, Deloitte, Deutsche Telekom BSBC, Fujitsu, Infosys, Publicis Sapient, PwC, Tech Mahindra and T-Systems are all named leaders in one.


Last modified on 30 January 2020
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