Complex ICT solutions for Automotive Alexey Toskin, CEO, T-Systems CIS T-SYSTEMS – DEUTSCHE TELEKOM’S SUBSIDIARY FOR MAJOR CORPORATIONS. A GLOBAL PLAYER WITH GLOBAL RESOURCES. International Market position: presence: # 1 Automotive & Manufacturing in Germany Offices in 27 The biggest SAP hosting provider worldwide countries, global # 1 ICT provider in Germany delivery capability # 2 Systems Integration in Germany Among TOP #5 Big Data / Analytics in Germany Focus: Revenue: Large corporations, Approx. €8,2 billion (2015 figures) multi-national companies, automotive, public- Employees: sector and healthcare Approx. 46.000 (2015 figures) organizations Including 5.000 experts in automotive In Russia: Saint-Petersburg Moscow 1 100 employees Voronezh Global Automotive Presentation Set 17.08.2016 3 AUTO & IT CHALLENGES SOME KEY INDUSTRY CHALLENGES industry 4.0 + IOT Connected car big data Growing CLOUD ADOPTION 4 out of 10 German AcquiringBy 2035, actionableholistic, data Over 70% of industrial enterprises willintermodel become increasingly mobility manufacturing still use Industrie 4.0 criticalsolutions for the will design make and out companies are using appliances. operationup to 50% of systems, of the cloud applications By 2018, from 60 to 90 drivetrainsindustry ,sales safety. somewhere in their % of new cars will have features, and more. supply chain, with an embedded telematics another 25% considering solution/ it. Time-to-market gains in importance digital sales channel impact of customer loyalty 28% feel lateness to Since about half of sales By 2016, only 20% of market as one of the top leads of automotive Manufacturers will have reasons for innovation purchases will come from an integrated approach failure. digital sources, 70 to delivering service that percent of the marketing allows them to directly budget measure its impact on is expected to go towards customer loyalty and digital efforts. revenue. Sources: Mc Kinsey, Frost & Sullivan, IDC, Accenture Global Automotive Presentation Set 17.08.2016 5 NEEDS OF OUR CUSTOMERS „Connectivity will dominate our future. The digital, “In order to keep our independency connected world is an important area for differentiation and from regional markets, we target a “We want to be leading in customer growth, especially for a premium provider.“ balanced worldwide sales split.” satisfaction and quality via deploying intelligent innovations and technologies.” „We will enlarge our offering of mobility services.“ Ensure global delivery Partner for innovative Industry- Provisioning of best of breed capabilities Solutions and ensuring high data- and connectivity network. and provide network infrastructure. quality delivery (Zero Outage). “The increasing digitalization and connection, the integrated support of business processes and the establishment of new locations permanently generate new challenges for our group IT.” „Daimler fulfills customer wishes and defines a new digital „[…] in order to develop the innovative Implementing of a modern, driving culture with the help of modern information technologies, potential of our company we have to push customized IT Infrastructure as well as online-communication and services within and around stronger towards integration and (Cloud). the car.“ connectivity. Therefore we will implement a “New technologies for the analysis of mass Provisioning of innovative connected car digital strategy, which reduces decision data (Big Data) and the connection of the car as well as sales and after sales solutions. processes, release cycles […] and helps us with it’s environment are sampled within our “By significantly enlarging our portfolio we generate to produce more efficiently. VW Data LABs.” the basis for profitable growth.” Consulting & Execution of Trusted Partner for Big Data/BI. Support of production processes and PLM. digital strategy incl. enabler technologies (e.g. PLM Cloud). Source: Annual Reports Global Automotive Presentation Set 17.08.2016 6 GROWTH TRIGGERS IN THE AUTOMOTIVE MARKET CUSTOMERS TARGET EMERGING MARKETS New Automotive Markets in 2020 New Plants 2012 Sales (million units) Rank 2020E Sales (million units) Rank Audi launched new plant in San José Chiapa China 17.4 1 China 28.5 1 US 14.5 2 US 16.8 2 (Mexico) in 2016 for the successor of the Q5. Japan 5.2 3 India 6.8 3 Brazil 3.6 4 Brazil 5.2 4 Germany 3.3 5 Russia 4.4 5 India 3.2 6 Japan 4.3 6 After the opening plants in Foshan and Ningbo, Russia 2.9 7 Germany 3.6 7 Volkswagen established another plant in UK 2.3 8 UK 2.6 8 France 2.3 9 France 2.6 9 Chachsha in 2015. Canada 1.7 10 Italy 2.2 10 (Global Insights/BCG) To react to the increasing demand Toyota introduced the second plant in Indonesia to New Assemply Capacities in Emerging Markets produce nearly 120,000 vehicles. In 2015 Honda built a new factory in Itirapana (Brazil) to produce ca.120,000 vehicles. In Autumn 2014 BMW will open an automobile factory in Brazil being the first plant in South America. (PwC, Autofacts) Global Automotive Presentation Set 17.08.2016 7 DEVELOPMENT TRIGGERS IN THE AUTOMOTIVE MARKET 3 MAJOR TRENDS DRIVE 4 MEGA GROWTH TOPICS MORE MORE CONNECTED MORE AND RICHER TERMINALS THINGS & DATA TRAFFIC SENSORS CLOUD SERVICES BIG DATA MACHINE-2-MACHINE CYBER SECURITY Resilient IP Based Network How to bring these topics into business success? Global Automotive Presentation Set 17.08.2016 8 ENX – EXTRANET SOLUTION FOR AUTOMOTIVE . T-Systems provides access to the ENX network - the European network of data exchange between automotive companies and companies from related industries. ENX network unites the members of ENX Association, which was established in 2000 and employs 1815 members in 39 countries (May 2016 ). ENX network is also widely used by enterprises of aircraft industry. ENX NETWORK provides secure data transfer and operation of specialized applications (including computer modeling systems, supply chain management, etc.) between the members of the Association for the IP protocol. For its users ENX is an open and flexible as the Internet. Users connect to the network through a certified ENX service providers. T-Systems is the first and largest provider of certified ENX service provider.. TOP 10 countries with ENX members T-SYSTEMS TELECOM SERVICES IN RUSSIA •Services based on intraselect MPLS platform 800 700 . IntraSelect Fixed Connect 600 500 . IntraSelect Remote Connect 400 300 . Extranet Solution ENX 200 100 •Overlay services 0 . Управляемые LAN . Обеспечение эффективной работы корпоративных IT- систем . Обеспечение безопасности корпоративных сетей Russia – 3 ENX members •Cloud services based on Open TeleKom Cloud Global Automotive Presentation Set 17.08.2016 10 MANAGED LAN & SECURITY CONSULTING SERVICES MANAGED LAN SECURITY CONSULTING . Control of data and voice LAN ports, server • Implementation and steering of ISMS ports in data centers, WLAN access points • Security auditing . Full service cycle • Architecture consulting and transformation . Consulting to enhance security level . Planning • Implementation of data security and access methods . Purchase and rent of equipment • Risk and vulnerability management . Installation of equipment at the customer's site and its tuning • Penetration Testing • Comprehensive analysis of cyber threats . Proactive monitoring and maintenance 24/7 • Online problem solving . Transparent and flexible pricing model • Legal support when considering security issues in the courts . Access in 100+ countries • Detection of incidents related to security . Unified SLA for all countries systems and solutions . Qualified personnel in the 3 monitoring centers • The development and certification of security applications Global Automotive Presentation Set 17.08.2016 11 MAIN APPROACHES TO PROVIDE TELECOM SERVICES Our Approach: Modular, flexible, End-to-end Fully managed Zero Distance made-to-measure service level IP VPN Your IP VPN connects agreements IP VPN solution offering: Your benefits: enterprises, individuals, . scalable, secure solution to connect General service level . rent existing infrastructure information, and your sites at home and abroad agreements: . reduce up-front investment and free . connection options include xDSL, up capital applications . for delivery and operation mobile connectivity, and Ethernet . tap into T-Systems’ experience and . covering the entire network, up to 10 Gbit/s expertise individual connections or other . secure global access for mobile solution elements . focus on your core business desktops, including via the Internet . including monitoring and . leverage state-of-the-art technology . modular services delivered in line documentation . open your business to new, with user requirements . featuring monthly or daily innovative applications reports on the quality of the agreed services Flexible solutions tailored to the One provider, one contact, An end-to-end solution to meet needs of your organization and one point of responsibility. your individual needs. your internationalization strategy. Global Automotive Presentation Set 17.08.2016 12 ENSURING YOUR NETWORK RUNS LIKE CLOCKWORK Our Approach: Maximum End-to-end Defined data Zero Outage availability security transmission We go the extra mile in . Rollout does not disrupt ongoing . Inherently secure technology behavior operation thanks to MPLS production terms of technology and . Data transmission according to platform service – ensuring . Protection against downtime defined service classes with maximum IP-VPN thanks to pro-active network . IPSec encryption for access via clearly specified