Deutsche Verkehrszeitung: Companies Missed Recent Developments

Arago Director of Research and Technology Evangelism René Büst is featured with a speech on the progress of digitalization and artificial intelligence in the German newspaper for the transportation industry Deutsche Verkehrszeitung. Büst delivered the speech at Deutsche Logistikkongress (DLK) in Berlin on October 26th. This conference is a key event for the German transportation industry. He recalls that digitalization will not change everything but has already fundamentally changed business processes and societies.

Büst believes this change process would have taken place in three phases. The first phase of digitalization would have lasted from 1970 to 2000 and led to the rise of PCs in society. The second phase from 2000 to 2015 would have expanded technologies to areas such as mobile and cloud computing as well as the internet of things with the aim to connect providers, customers and producers. The current third phase would be about connecting services, applications and objects to complex digital supply chains. However, Büst states that only two percent of companies worldwide had arrived with their IT-infrastructure in the third phase. The rest would still be stuck in the first or second stage. As a result, companies should strive to create a context economy that is based on data and knowledge. In Büst’s opinion, platform enterprises pose an extraordinary threat as they have enormous financial resources in contrast to established industries. In addition, they would hijack other companies’ customer relations by committing them to sell their products and services via the platforms distribution channels. Finally, Büst advises companies not to lay off workers as a result of automation processes. Instead, he recommends embracing new technologies and utilizing the employee’s free time to promote innovation.

Arago Redaktion 2. November 2017

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Benedikt Schepp Benedikt Schepp Director Corporate Communications bschepp@arago.co