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Digital Customer Experience 
The Click to emergence edit of Big Master Data, title Social, style 
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Consumers drive Digital Transformation in white goods … and so 
Manufacturers have to ha...
Digital Customer Experience Electronics Retailers are friends and enemies at the same time....what is 
the future of the c...
Digital Customer Experience This presentation covers 3 topics 
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The IBM IBV* found that the way a consumer behaves has to be 
addressed 
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Google is the mainstream starting point. Low brand awareness (10%). 
Open search by prod...
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Analysis of 300.000 insights on a white goods OEM consumers to get 
an impression of con...
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Digital Customer Experience 
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Digital Customer Experience 
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Digital Customer Experience 
The Click to washing edit machine Master has title highly style 
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Digital Customer Experience 
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Digital Customer Experience 
Why Click to Mobile? edit Mobile is Master at title the style 
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Digital Customer Experience Industry Example 
Digital by Analytics 
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“Analytics helps org...
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Digital Customer Experience This presentation covers 3 topics 
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The Click to Supply edit Chain Master Analytics title journey style 
can start with a Business Value 
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Let‘s engage 
thorsten.schroeer@de.ibm.com 
www.linkedin.com/in/thorstenschroeer 
www.xing.com/profile/Thorsten_Schroeer 
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2014 october ibm on digital transformation in white goods electronics public

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This presentation looks at the different angels of digital transformation towards the white goods industry.

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2014 october ibm on digital transformation in white goods electronics public

  1. 1. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience Digital Transformation in the Consumer Electronics Industry A strategic Point of View October 8th., 2014 © 2014 IBM Corporation Thorsten Schroeer Director Electronics Industry Europe thorsten.schroeer@de.ibm.com
  2. 2. Digital Customer Experience This presentation covers 3 topics Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2 Digital by… Industry Examples 3 Digital… How to get Started 1 Digital Transformation What & Why © 2014 IBM Corporation
  3. 3. Digital Customer Experience The Click to emergence edit of Big Master Data, title Social, style Mobile and Cloud are fundamentally changing how we live, work and interact – and the market place • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Ignoring the changing market can Transforming the world’s biggest appliance-maker into a nimble internet-age firm – changing from within. even take down a dominant industry player – the power is shifting to consumers. ?
  4. 4. Click to edit Master title style Consumers drive Digital Transformation in white goods … and so Manufacturers have to handle retail consumer expectations • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience Between 2008 and 2013 online shops of manufacturers grew 4 times faster than before and this trend will continue as © 2014 IBM Corporation brands stand for trust, orientation and security. *Source: IFH Institut für Handelsforschung: „Die Zukunft hat begonnen – Handel 2020“, Internet World Business 15/14; ECC Köln 4 Understanding the wants and needs of the consumers during their consumer journey is essential to be relevant for the consumer and to generate profitable growth
  5. 5. Digital Customer Experience Electronics Retailers are friends and enemies at the same time....what is the future of the classical retail/wholesale value chain? Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 85%of transactions trackable by retailer to an © 2014 IBM Corporation individual name.
  6. 6. Digital Customer Experience This presentation covers 3 topics Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2 Digital by… Industry Examples 3 Digital… How to get Started 1 Digital Transformation What & Why © 2014 IBM Corporation
  7. 7. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience Industry Example Digital in Multi Channel © 2014 IBM Corporation
  8. 8. Click to edit Master title style The IBM IBV* found that the way a consumer behaves has to be addressed • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience IBV found five top omni-channel requirements 1 Price consistency across channels 2 In-store, locate out-of-stock item and get it shipped home 3 Track order status 4 Consistent assortment across channels 5 Return in store of online purchases 8 The consumer segments request omni-channel technologies 81% of todays‘ shoppers consist of trailblazers, transitioning tech-intrigued shoppers; the traditional segment is expected to decline in the future. Each OEM has to build up their Actionable Consumer Insight to approach their target groups, their consumer-Personas *IBM IBV = IBM Institute for Business Value, business research organization from IBM
  9. 9. Click to edit Master title style Google is the mainstream starting point. Low brand awareness (10%). Open search by product category (90%). • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience Refrigerator Washing machine # Keywords Monthly Searches 90% 90% #1 kühlschrank 568.991 #2 siemens kühlschrank 7.272 #3 bosch kühlschrank 5.267 #4 samsung kühlschrank 5.251 # Keywords Monthly Searches #1 waschmaschine 450.409 #2 miele waschmaschine 13.809 #3 aeg waschmaschine 4.043 #4 siemens waschmaschine 3.264 Google worldwide market share Dishwasher Toaster Vacuum cleaner 90% 90% 90% © 2014 IBM Corporation 9 #5 lg kühlschrank 4.475 ... #8 bosch waschmaschine 2.868 # Keywords Monthly Searches #1 geschirrspüler 450.646 #2 siemens Geschirrspüler 6.103 #3 miele geschirrspüler 1.658 #4 aeg geschirrspüler 1.634 #5 bosch geschirrspüler 1.254 #6 bauknecht geschirrspüler 1.228 # Keywords Monthly Searches #1 toaster 496.173 #2 kitchen aid toaster 2.472 #3 siemens toaster 1.621 #5 serverin toaster 851 ... #7 bosch toaster 458 # Keywords Monthly Searches #1 staubsauger 559.826 #2 vorwerk staubsauger 33.152 #3 miele staubsauger 7.700 #4 dyson staubsauger 6.521 #5 aeg staubsauger 4.061 ... #11 siemens staubsauger 2.437
  10. 10. Click to edit Master title style Analysis of 300.000 insights on a white goods OEM consumers to get an impression of consumers wants and needs • Click to edit Master text styles General Exchange about Brands and Products – Second level • Third level – Fourth level » Fifth level Digital Customer Experience 4% Exchange about Cooking, Baking, Washing 7% Feedback on Brand and Product Campaigns 3% Exchange about discounts and good deals 1% Other Topics 7% The conversation focuses on after-sales topics (77%), which delivers the Input for new consumers Review and price comparison sites dominate the share of voice in most countries with 45% and are more trusted than corporate communications Detailed instructions on troubleshooting and repair are provided by non-official sources, yet highly visible ( 30.000 view per video) © 2014 IBM Corporation Aftersales: Product Reviews and Feedback 45% After Sales: Repair and DIY Aftersales: Product Problems 12% Instructions 10% Presales: Request for help during active evaluation 11% 10 Source: IBM SMA / Analyzed time frame: 01/2013 - 05/2014, n=291.400 analyzed entries
  11. 11. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience Industry Example Digital in Manufacturing Software Defined Supply Chain © 2014 IBM Confidential IBM Internal Use Only IBM Corporation © 2014 IBM Corporation
  12. 12. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience 3 New Technologies 3D PRINTING INTELLIGENT ROBOTICS OPEN SOURCE
  13. 13. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience STANDARDIZATION 3D PRINTING NO ECONOMIES OF SCALE ON DEMAND COST PER UNIT VOLUME PRINTED $/CUBIC CM - BLENDED AVERAGE - MANUFACTURING LOCATION ELASTIC 79% - 92%
  14. 14. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience MODULARIZATION ROBOTICS HARD AUTOMATION FLEXIBLE TYPICAL COST PER ROBOTIC ASSEMBLY STATION ROBOTICS INTELLIGENT ROBOTICS - 90%
  15. 15. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience HARDWARE CONSTRAINED BUILD A MOLD OR CAST HARDWIRE PRODUCTION LINE DEVELOP EMBEDDED CHIP SOFTWARE DEFINED PRINT PARTS DIRECTLY BY SOFTWARE RECONFIGURE ASSEMBLY THROUGH SOFTWARE DIGITAL CONTROLS USING SOFTWARE
  16. 16. Digital Customer Experience Click to edit Master title style COST 4 DIFFERENT PRODUCTS • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level VOLUME SIZE COMPLEXITY PERSONALIZATION WASHING MACHINE INDUSTRIAL DISPLAY MOBILE PHONE HEARING AID
  17. 17. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience
  18. 18. Digital Customer Experience Click to LOWER edit Master COST title style • Click to edit Master text styles 23% – Second level • Third level – Fourth level » Fifth level CHEAPER AGGREGATE NORMALIZED UNIT COST Source: Sourcemap, Econolyst, Mike Watson and Alex Scott, IBM Research, IBM Institute for Business Value
  19. 19. Digital Customer Experience The Click to washing edit machine Master has title highly style automated assembly with many mechanical parts sourced and sub-contracted globally • Click to edit Master text styles The carbon footprint of the washing machine was calculated as 313 kg CO2e (– manufacturing) and Second 39kg level CO2e (shipping) for a total of 352 kg CO2e (delivered to US consumer). • Third level – Fourth level » Fifth level Source: Sourcemap, Econolyst, Mike Watson and Alex Scott, IBM Research, IBM Institute for Business Value © 2014 19 IBM Corporation
  20. 20. Click to Improvements edit in printer Master title technology style and cost will enable a large amount of 3D Printing in the appliance industry in ten years • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience Washing Machine Unit Manufacturing Cost Curve $400 $350 $300 $250 $368 $368 $336 $243 T0 Traditional T0 Digital T1 Digital T2 Digital $200 $150 $100 $50 $0 58% of the total product value of a washing machine will be 3D Printable in ten years Assembly is a smaller fraction of total cost and already significantly automated Source: Sourcemap, Econolyst, Mike Watson and Alex Scott, IBM Research, IBM Institute for Business Value © 2014 20 IBM Corporation
  21. 21. Digital Customer Experience Click to LOWER edit Master title SCALE style • Click to edit Master text styles – Second level 90% • Third level – Fourth level » Fifth level LESS VOLUME REQUIRED AGGREGATE NORMALIZED MINIMUM ECONOMIC SCALE Source: Sourcemap, Econolyst, Mike Watson and Alex Scott, IBM Research, IBM Institute for Business Value
  22. 22. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience 58%of the total product value of a washing machine will be 3D Printable in ten years – the service business impact will be disruptive. FULL REPORT MODEL NOW AVAILABLE ONLINE AND ON YOUR MOBILE DEVICE © 2014 IBM Corporation 22
  23. 23. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience Industry Example Digital in © 2014 IBM Confidential IBM Internal Use Only IBM Corporation © 2014 IBM Corporation Mobile
  24. 24. Digital Customer Experience Why Click to Mobile? edit Mobile is Master at title the style epicenter of the digital forces and a catalyst for reinventing experiences and businesses • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level © 2014 IBM Corporation
  25. 25. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience The Next Generation of Enterprise Mobility: IBM strategic investment in IBM Mobile First, IBM Interactive Experience and Security © 2014 IBM Corporation
  26. 26. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience „there is one more thing“ © 2014 IBM Confidential IBM Internal Use Only IBM Corporation © 2014 IBM Corporation
  27. 27. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience Apple and IBM combine their strengths to make enterprise mobility more powerful, secure, and easy for any business. IBM Confidential © 2014 IBM Internal Use Only IBM Corporation © 2014 IBM Corporation
  28. 28. Digital Customer Experience Industry Example Digital by Analytics Click to edit Master title style “Analytics helps organizations make better decisions by getting • Click to edit Master text styles new insights from the volume and variety of big data “ – Second level • Third level – Fourth level » Fifth level 3x 5.4x Top Performers are more likely to use an analytic approach over intuition within business processes Organizations that lead in analytics outperform those who are just beginning to adopt analytics © 2014 IBM Confidential IBM Internal Use Only IBM Corporation © 2014 IBM Corporation Source: Analytics: The New Path to Value, a joint MIT Sloan Management Review and IBM Institute of Business Value study. Copyright © Massachusetts Institute of Technology 2010.
  29. 29. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience Industry Example Digital by © 2014 IBM Confidential IBM Internal Use Only IBM Corporation © 2014 IBM Corporation Analytics in Manufacturing Supply Chain
  30. 30. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience Analytics and Optimization provides value across the key supply chain processes. Plan Source Make Deliver Demand Forecasting Multi-echelon Inventory Optimization 2-5% manufacturing costs saving Return 10-30% inventory cost reduction © 2014 IBM Corporation Supply Chain Visibility Procurement Spend Optimization Reverse Logistics Optimization 25% procurement spend reduction 5-15% supply chain cost reduction ~30% channel inventory reduction 10-15% Improved warranty and repair order fulfillment, reduced spares inventory, and warranty costs Supply Chain Network Optimization 5-15% supply chain costs saving
  31. 31. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience IBM Manufacturing uses analytics tools across its operation © 2014 IBM Corporation 31
  32. 32. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience Industry Example Digital by Analytics Sales Marketing © 2014 IBM Confidential IBM Internal Use Only IBM Corporation © 2014 IBM Corporation Customer Service HR RD Finance ...
  33. 33. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience Industry Example Digital in Software Service Transformation © 2014 IBM Confidential IBM Internal Use Only IBM Corporation © 2014 IBM Corporation
  34. 34. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience Case Study IBM: Segment shift from hardware to services and software builds foundation for IBM’s business success since late 1990s. Source: IBM annual report 2013 © 2014 IBM Corporation 34
  35. 35. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience Case Study Philips: Software and Managed Services gain share and margin MRI hardware vs imaging software Repeat sale in 7-10 years Sell light bumps vs sell light One time product only sell - © 2014 IBM Corporation Repeat sale 1-2 times per year competitive Sell hours of light in a stadium 35
  36. 36. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience Case study Google/Nest – Programmable thermostat $249 $25 10x price differentiation driven by software on the device and in the cloud. © 2014 IBM Corporation 36
  37. 37. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience From Product to Services/Software - final considerations Talk to your end customers – they want to talk to you Understand value of software/services and sell it Own data and generate new value © 2014 IBM Corporation Be bold Be disruptive As premium brand go first 37
  38. 38. Digital Customer Experience This presentation covers 3 topics Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 2 Digital by… Industry Examples 3 Digital How to get Started 1 Digital Transformation What Why © 2014 IBM Corporation
  39. 39. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience How to get Started © 2014 IBM Confidential IBM Internal Use Only IBM Corporation © 2014 IBM Corporation Digital in Social / Multi Channel
  40. 40. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience Creating a “system of engagement” that maximizes value creation at every touch. Client Journey Map Retailer Service/ warranty Call Center Integration of Consumer Data Web Social Media Direct Mail Home Connect 40
  41. 41. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience How to get Started © 2014 IBM Confidential IBM Internal Use Only IBM Corporation © 2014 IBM Corporation Digital in Mobile
  42. 42. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience What‘s your best app? © 2014 IBM Corporation
  43. 43. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience How to get Started © 2014 IBM Confidential IBM Internal Use Only IBM Corporation © 2014 IBM Corporation Analytics Example Supply Chain
  44. 44. The Click to Supply edit Chain Master Analytics title journey style can start with a Business Value Accelerator followed by a recommended pilot strategy and deployment. • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience Phase 2: Pilot Phase 1: Assessment Assess Design and Specify Build and Analyze CCoonndduucctt Recommend Next Steps Phase 2: Pilot Focus © 2014 IBM Corporation SSoolluuttiioonn IImmppaacctt AAsssseessssmmeenntt DDeessiiggnn aanndd BBuuiilldd PPiilloottss Phase 3: Deploy PPrreeppaarree rroolllloouutt ppllaannss TTrraaiinniinngg aanndd DDeeppllooyymmeenntt Inventory Optimization Demand Forecasting Procurement Spend Optimization Reverse Logistics Optimization Supply Chain Visibility Supply Chain Network Optimization
  45. 45. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience How to get Started Analytics Sales Marketing © 2014 IBM Confidential IBM Internal Use Only IBM Corporation © 2014 IBM Corporation Customer Service HR RD Finance ...
  46. 46. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience Summary © 2014 IBM Confidential IBM Internal Use Only IBM Corporation © 2014 IBM Corporation
  47. 47. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience Digital Transformation – 5 Key take aways 1. Engage the end customer 2. Focus on smarter home user experience 3. Develop robust systems engineering (remote diagnostics, updates and control of appliances through “smart devices” in the cloud) 4. Ensure security to protect your brand 5. Select proven partners with IoT breadth and depth. © 2014 IBM Confidential IBM Internal Use Only IBM Corporation © 2014 IBM Corporation
  48. 48. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level Digital Customer Experience The role of IBM in Digital Transformation 1. Strategic Advisor 2. From strategy to execution 3. Design – Build - Run 4. Cloud-Analytics–Mobile–Social – Security © 2014 IBM Confidential IBM Internal Use Only IBM Corporation © 2014 IBM Corporation 5. Software 6. Global rollouts
  49. 49. Let‘s engage thorsten.schroeer@de.ibm.com www.linkedin.com/in/thorstenschroeer www.xing.com/profile/Thorsten_Schroeer © 2014 IBM Corporation IBM Electronics www.ibm.com/electronics

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