German ICT Market - Opportunities and Challenges
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Transcript of German ICT Market - Opportunities and Challenges
1
2nd ICT Net Conference
“Technology and Entrepreneurship”
Jürgen Kappenmann, Consultant Esslingen, Belgrade
Falkensteiner Hotel, Beograd, 30th Oct., 2013
Overview of International Markets -
Challenges and Opportunities in German, French and Dutch markets:
The German IT Market
The German IT Market: Challenges and Opportunities
INTRO
Opportunities and Challenges in the German IT Market
Creating Opportunities and Tackling Challenges in the German IT Market
Opportunities Challenges Strategy
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The German IT Market: Challenges and Opportunities
ICT Market Volume € 151,9 billion turnover in 2012
GERMAN IT MARKET KEY FIGURES
Source: BITKOM
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The German IT Market: Challenges and Opportunities
ICT Market Segments: IT, Telecommunication, CE
Source: BITKOM
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GERMAN IT MARKET KEY FIGURES
The German IT Market: Challenges and Opportunities
ICT Market Segments
Source: BITKOM
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GERMAN IT MARKET KEY FIGURES
The German IT Market: Challenges and Opportunities
Market Growth by Segments
Source: BITKOM
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GERMAN IT MARKET KEY FIGURES
The German IT Market: Challenges and Opportunities
Employment Overall 2012: 902.000 employees
Overall 2013: 917.000 employees (expected)
IT: 698.000 employees (76% of all ICT, plus 19.000)
Telecom: 206.000 employees
Consumer Electronics: 13.000 employees
Lack of IT Experts 2012: 43.000
2013: 39.000 (doubled since 2009)
16.000 in core ICT industry (13.800 in SW and IT services)
23.000 in other industries
Source: BITKOM
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GERMAN IT MARKET KEY FIGURES
The German IT Market: Challenges and Opportunities 8
Opportunities Challenges Strategy
OPPORTUNITIES TRENDS
The German IT Market: Challenges and Opportunities
High-Tech Strategy for Germany 2020
Objectives
CO2-neutral, energy-efficient and climate-adapted cities
Renewable biomaterials as an alternative to oil
Intelligent restructuring of energy supply
Treating diseases more effectively with personalized medicine
Better health through targeted prevention and an optimised diet
Living an independent life well into old age
Sustainable mobility
Web-based services for businesses
Industry 4.0
Secure identities
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OPPORTUNITIES TRENDS
The German IT Market: Challenges and Opportunities
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OPPORTUNITIES TRENDS
High-Tech Strategy for Germany 2020
Fields of Action
Climate and Energy
Health and Nutrition
Mobility
Security
Communication
Key Technologies
ICT
Services
Micro System Technologies
Automotive and Traffic
Production Technologies
…
The German IT Market: Challenges and Opportunities
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OPPORTUNITIES TREND: INDUSTRY 4.0
Core Idea
The German IT Market: Challenges and Opportunities
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OPPORTUNITIES TREND: INDUSTRY 4.0
Core Concept
Future Project of the High-Tech Strategy 2020 which promotes the computerization of traditional industries such as manufacturing (goal: Smart Factory)
Technology basis: cyber-physical systems and Internet of Things
Combination of computational and software components with mechanical and electronic parts (embedded systems) which communicate via a wired or wireless data infrastructure (e.g. internet)
Applications
Medical devices, age-based assistance systems, IT traffic steering and logistic systems, inter-linked security and drive assistance for cars, industrial process steering and automation, infrastructure systems for communication
The German IT Market: Challenges and Opportunities
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OPPORTUNITIES TREND: SMART GRIDS & METERING
Core Concept
Study of German Federal Ministry of Economics & Technology
Oct. 2013: German smart metering concept successfully passes EU notification process
Objectives
By 2020 30% of power needs covered by renewable energy
Switch from „consumption-oriented generation“ to „generation-optimized consumption“
By 2022 two-thirds of all German households use smart meters
12 million households use smart meters with access to smart grids (Smart Meter Gateways)
Applications
energy supply management systems, smart houses
The German IT Market: Challenges and Opportunities
Cross-Innovation Cloud Computing
Smart Cities
Electro Mobility
Connected Car
Smart Grids
Energy Efficiency
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OPPORTUNITIES TRENDS
The German IT Market: Challenges and Opportunities
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OPPORTUNITIES TRENDS
Open Source
IT Security
New dynamic: NSA scandal
Topics: data protection, industrial espionage, mobile security, e-payment
eBusiness, eCommerce
eGovernment
The German IT Market: Challenges and Opportunities
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OPPORTUNITIES TREND: MOBILE
Less PCs and Desktops, More Tablets
Tablets: (48% growth in 2013)
Source: BITKOM
Turnover billion EUR
Turnover billion EUR
The German IT Market: Challenges and Opportunities
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OPPORTUNITIES TREND: MOBILE
Booming Smart Phone Market
Source: BITKOM
Turnover billion EUR
Sales in million
The German IT Market: Challenges and Opportunities
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OPPORTUNITIES TREND: MOBILE
Mobile Phones as Permanent Companions 2011: 62% 2013: 75%, i.e. almost 50 Mio. Germans 14% of all Germans consider using Mobile Wallets Continuing growth in mobile data services market (€ 9,1 billion, +5%)
Source: BITKOM
The German IT Market: Challenges and Opportunities
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OPPORTUNITIES TREND: WEB
Companies with Websites (min. 10 employees): 82%
Companies with < 10 employees: 45%
The German IT Market: Challenges and Opportunities
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OPPORTUNITIES OUTSOURCING TRENDS
Covered Fields
Web, Entreprise 2.0, Mobile Development, Embedded, SaaS/Cloud
Results & Trends
Higher acceptance with SMEs
Reasons: reduce costs, focus on core competencies, access to resources outside Germany, speed up time-to-market
Critical: poor communication with vendor´s team, CM, cultural difference, PM
Prefered: nearshore, small providers via fixed-price/time-and-material models, short and focused contracts
Outsourcing processes are increasingly globalized
Focus on long-term added value
More business process outsourcing (BPO)
Serbia as a outsourcing location
see Challenges section
Source: Europ. IT Outsourcing Intelligence Report 2011: Germany
The German IT Market: Challenges and Opportunities
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OPPORTUNITIES OUTSOURCING TRENDS
Outsourcing Industries
Source: Europ. IT Outsourcing Intelligence Report 2011: Germany
The German IT Market: Challenges and Opportunities
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OPPORTUNITIES OUTSOURCING PROCESS
Dev
elo
pm
ent
Step
s
SW or System Development
Local (National) Sub-Supplier
International Sub-Supplier
Guided
Cooperation
Responsible
Demand: - Vertical & horizontal market
knowledge - technical know-how
Supply: - (Basic) vertical & horizontal market
knowledge - technical know-how - project/quality management skills Starting point: SW testing
Deepened Industry/technology know-how building - Development of • project management, • quality management and • process & maturity model skills
Source: policultancy.eu
The German IT Market: Challenges and Opportunities 23
Opportunities Challenges Strategy
CHALLENGES STATUS QUO
The German IT Market: Challenges and Opportunities
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CHALLENGES ITBD ROAD SHOW
Berlin
Bavaria
Hessen / RPF
Baden-Württemberg
The German IT Market: Challenges and Opportunities
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CHALLENGES ITBD ROAD SHOW FINDINGS
German stakeholders strongly interested in the Serbian market but have limited / no experience and knowledge
Currently order books are full but… pressure and need to internationalize
From a German perspective the Serbian market is interesting but limited in size
Market knowledge and intelligence on both sides is low need for development of joint B2B models, events, joint platforms etc.
demand and supply mappings to be developed, usage of “ICT at a Glance”
Entrance to German market is often connected to confidence-building measures like success stories with German clients, language skills,
involvement of German experts ...
The German IT Market: Challenges and Opportunities
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CHALLENGES STATUS QUO
Key Features
Visibility of Serbian IT industry Hardly known as an IT location, no rep offices in Germany
Publication ICT at a Glance only comprehensive market study
Limited (industry-specific) experience & language
Expectations
SW development like in Germany but with less costs
Quality Management
Process of cooperation key to success
Trust building
It always depends on single company: no specific legal, tax etc. barriers
The German IT Market: Challenges and Opportunities 27
Opportunities Challenges Strategy
OPPORTUNITIES TRENDS
The German IT Market: Challenges and Opportunities
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STRATEGY KEY ELEMENTS
Define your Strategy: Do it properly
Key Elements for Success
Focus
Specialization
Quality & Cooperation
Contracting
Market Screening
Presentation
Profile, references, methodologies…
The German IT Market: Challenges and Opportunities
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STRATEGY FOCUS
The German IT Market: Challenges and Opportunities
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STRATEGY FOCUS: CLUSTERS & ASSOCIATIONS
Cluster Platforms & Regional Clusters Bavarian ICT Cluster
Bwcon
Cyberforum Karlsruhe
ICT & Digital Business Association Berlin – Brandenburg (SIBB)
ICT NRW
IT-Mitteldeutschland
Software-Cluster „Rhein-Main-Cluster“
Softwarezentrum Böblingen/Sindelfingen
Open Source Cluster Berlin
The German IT Market: Challenges and Opportunities
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STRATEGY MARKET SCREENING
- eGovernment - Creative Industries - Open Source - Media - … - Business SW &
Applications - ERP - Cloud - …
Southwest: - Automotive - Embedded - eHealth - Creative Industries - Smart Energy - Smart Grids - Open Source - …
- Gaming - Open Source - Media - …
- Energy Efficiciency - Solar Energy - IT HW - …
- Automotive - BioTech - …
- Medical - eHealth
The German IT Market: Challenges and Opportunities 32
STRATEGY MARKET SCREENING
Core ICT Industry – Which IT Companies Are Hiring: 75% SW Development
24% IT Consulting
23% Marketing and Sales
20% System Administrators & Application Support
8% Project Management
7% IT Security Experts
IT SMEs (1-50 million tunrover) 2012: 14.500 (80% out of 18.000)
94% search for SW developers
50% of companies confirm lack of IT experts, same # expect no change in near future
Source: BITKOM
The German IT Market: Challenges and Opportunities 33
STRATEGY MARKET SCREENING
For Which Fields Are IT Companies Searching
Source: BITKOM
The German IT Market: Challenges and Opportunities 34
STRATEGY MARKET SCREENING
Demand for IT Experts by IT Companies
Source: BITKOM
The German IT Market: Challenges and Opportunities 35
STRATEGY MARKET SCREENING
Demand for IT Experts by Non-IT Companies
Source: BITKOM
The German IT Market: Challenges and Opportunities 36
STRATEGY MARKET SCREENING
Labour Costs General
ICT industry full-time employment: € 59.000 (gross)
Positions
SW developer: € 5.000/month (average wage)
SW developer start (gross): € 31.000-44.000/y. (av. € 40.300)
SW developer experienced (gross): € 39.000-56.800/y. (av. € 52.000)
Computer scientist start: € 45.000/y. (gross)
Geographic
Hessen/BW/BAY/HAM: high
Eastern States: low
The German IT Market: Challenges and Opportunities 37
STRATEGY MARKET SCREENING
German Investments in Serbia (2010/11)
Source: AHK BG
Comapny Industry Investment in Mio. €
Bosch Automotive Supplies 71,0
Clean-Tech Pharmaceuticals 1,0
Continental Automotive 8,0
Dräxlmaier-2 Automotive 10,0
Dunkermotoren Electronics 1,0
Eko-Theman Group Food (Processing) 2,5
Fresenius Medical Care Medical 24,0
Grammer System Automotive Supplies 5,2
Gruner Electronics/Electrics 4,0
IGB Bauerhin Automotive Supplies 4,0
Leoni Automotive Supplies 7,4
Meggle Food (Processing) 4,0
Metro Retail 21,0
Mühlbauer IT 4,0
Norma Group Manufacturing 11,2
Siemens Electrics 20,0
Vossloh-Schwabe Panasonik Electrics 2,0
The German IT Market: Challenges and Opportunities 38
STRATEGY BROKERAGE
EU-Wide
KET Brokerage: http://www.b2match.eu/kets2014/pages/home
IT Fairs
CeBIT, Embedded World…
see event calendar on cluster and association websites
Clusters & Associations
For specific events see cluster websites
EEN
Business Cooperation Database
Brokerage
…
The German IT Market: Challenges and Opportunities 39
Pitanja
&
Hvala na pažnji
Jürgen Kappenmann, Ass. iur., M.A. Consultant
Esslingen, Belgrade +381-69-197 47 30
[email protected] Skype: juergen.kappenmann