White Paper Real ICT

White Paper Real ICT

Flexibility with fully integrated IT and TC services.

User survey in cooperation with Pierre Audoin Consultants.

Contents
Abstract 1 2 Challenges posed by modern ICT landscapes to IT and TC managers The question: IT, TC and applications, ICT or Real ICT 2.1 2.2 2.3 Initial situation from a companys perspective Added value of Real ICT Structure of Real ICT 2.3.1 Infrastructure level 2.3.2 Application level 2.3.3 Process level 3 Real ICT in practice 3.1 3.2 3.3 4 5 6 7 Dynamic Services - or flexibility with demand-oriented concepts End-to-end workplace management The Toll Collect system: 2 3 4 4 6 7 7 7 7 8 8 9 10 11 12 15 15 17 17

Supplier evolution Customer positioning Challenges for customers and suppliers Conclusion/outlook List of figures List of references

Abstract.
Dynamic markets place ever changing demands on enterprises information technology (IT), telecommunication technology (TC) and application landscapes. By the year 2010, IT, TC and applications will have merged into a Real ICT world and no longer be differentiable. To maximize the benefits of this trend, a paradigm shift toward a universal approach is necessary, i.e. harmonization of IT, TC and applications with overlying business processes. Besides increased flexibility, cost saving potential and focus on enterprises core competencies, a use of Real ICT provides further advantages such as optimal implementation of customers business processes in modern, safe and adaptable ICT environments. This means impending consolidation for IT, TC and application service providers. Those who want to remain competitive must acquire an adequate know-how of IT and TC systems, application and business processes, as well as relevant branches of the industry.

1 Challenges posed by modern ICT landscapes to IT and TC managers.

What belongs together, comes together. Issued recently by market research company IDC, this statement reflects the steadily increasing coalescence of information technology (IT) and telecommunication technology (TC). The formerly separate worlds of IT and TC are merging to become ICT: Information and Communication Technology. A major challenge to companies today lies in making the right information available at the right time and place. This requires a concerted effort by staff and companies to efficiently and effectively use knowledge, besides achieving business processes which are easily scaleable and adaptable to new circumstances. IT, TC and application managers today face the task of gearing their IT, TC and applications more strongly to highly dynamic business processes in order to support them optimally. Flexibility is therefore gaining in importance: Flexibility in meeting customer requirements concerning volume and quality, fulfilling legal regulations and, needless to say, responding to constant changes in ones own enterprises organizational and business models. Furthermore, costs (Total Costs of Ownership, TCO) must be lowered and IT/TC applications increasingly rationalized. According to the market research company Ovum, the overwhelming majority of chief information officers (CIO) therefore see their greatest challenges over the next two or three years as being: Rising costs of operating IT and TC infrastructure; inadequate integration between both technologies, accompanied by increased coalescence between overlying applications; security, and increasingly mobile staff who need to be equipped with suitable IT and TC devices. CIOs are also complaining about unclear relationships between the quality and costs of present IT, TC and application service providers. There is obviously a need for optimization here. At the same time, many IT, TC and application service providers are struggling to meet changing, complex requirements and maintain the level of expertise needed to deliver the promised service quality worldwide. Real ICT addresses this issue. By universally treating an enterprises business processes, Real ICT promises to reduce complexity, raise quality and security, and lower costs for customers as well as Real ICT partners - a compelling prospect. Real ICT goes a step further by offering comprehensive services, i.e. end-to-end support for complete business processes. ICT stands for a merger of IT and TC into a universal service landscape.

2 The question: IT, TC and applications, ICT or Real ICT? 2.1. Initial situation from a companys perspective.
Many companies see similar problems in their initial situation. Competitive pressure continues to rise. For instance, order processing requires elaborate planning and coordination. For this reason, enterprises need optimized, continuously adaptable as well as flexible IT, TC and application landscapes permitting a realization of long-term corporate strategies. Prerequisites for implementation of forward-looking strategies are defined in the section on business architecture (see Figure 1). It describes the interface between strategic concept and deployment. Responsibilities for implementing, executing, monitoring and optimizing business processes as well as fine-tuning application, IT and TC systems are assigned at the process and infrastructure levels.
Customer Customers operations become more productive
Strateg y

Busine Busi ss Archite ness cture Analysis

Business Inforo atio P rm ssn Se ce Le rvices vel

Applic ation

Level

Infrast ructure Level

Customers production depth is reduced Role of the service provider

Figure 1: Business Architecture as an interface between strategy and deployment Source: T-Systems

In recent years, IT, TC and application service providers have proven their competence primarily at the lower echelons, i.e. at the infrastructure and application levels. As a result, IT, TC and application service providers can make use of scale and scope to raise quality while lowering costs. However, service providers are rarely commissioned by companies to cover entire areas, total support for each area usually coming from a number of separate suppliers. This makes a management of such services more complex, and lowers flexibility in responding to changing business requirements. Moreover, IT, TC and application service providers as well as client companies lack a transparent overview from the strategic level to the infrastructure level.

Reduced production depth on the customers side optimizes added value at the horizontal levels. Standardized interfaces between the levels permit a transparent flow of information.

ICT Bundling
IT TC Project Process IT

Real ICT
TC Project Process

Supplier Supplier Supplier Supplier 1 2 3 4

T-Systems

General contractor

Business responsibility Technological responsibility

Figure 2: Unlike ICT Bundling, Real ICT service providers do not act as general contractors. Real ICT services providers themselves offer comprehensive packages. Source: T-Systems

To remain competitive on a lasting basis, it can be thoroughly advisable for a company to cooperate with IT, TC and application service providers at higher value-creation levels too. For instance, informing IT, TC and application service providers about strategic plans already at the Business Architecture level permits these providers to support the company optimally with universal solutions spanning several levels. This notably reduces complexity and costs of integration, supply and operation. What would make customers reduce the production depth of their own IT, TC and applications, and cooperate with Real ICT partners at higher value-creation levels? Rising competition and increasingly complex interaction between IT, TC and applications continue to place cost-cutting pressure on enterprises. Now that simple cost-cutting potential has been almost fully exploited (adjustment of capacity, minimization of fixed costs, optimization of suppliers and delivery conditions), attempts are being made to optimize and lower the costs of business processes and their implementation in applications, IT and TC. Moreover, many companies feel the need to react more flexibly and quickly to new requirements. These include regulations such as Basel II and Sarbanes-Oxley which necessitate continuous changes to business processes as well as IT, TC and application landscapes. This raises Total Costs of Ownership for IT, TC and application landscapes. According to market observers, maintenance and operations now make up as much as 80% of an enterprises budget, only 20% being dedicated to advancement and optimization. The challenges which companies face can be summarized as follows: Permanent availability of business processes to ensure productivity Putting innovations and new technologies to use Reduction in TCOs

2.2 Added value of Real ICT.

Real ICT merges information and telecommunication technology to provide an enterprises business processes with comprehensive support: A single Service Level Agreement (SLA) for business processes is made possible by a high transparency of all involved components.
IT and TC are combined to form ICT - this is also known as ICT Bundling. Real ICT comprises ICT and applications, accounting for the business processes requiring implementation. Real ICT also allows a transfer of individual business processes to a real ICT partner without having to perform full outsourcing. This permits enterprises to concentrate entirely on their core business. In contrast to ICT Bundling which offers individual Service Level Agreements (SLA), Real ICT provides the customer with one (SLA) for the entire business process. Interaction between the enterprise and Real ICT partner is made as easy as possible by detailed, comprehensive monitoring and efficient service management. Real ICT services can therefore be provided quickly, perfectly matched, according to demand and at the highest quality.

ICT positioning Feature

Quality Flexibility

Value Contribution

Time Costs
IT/TC
Integration

ICT Bundling

Real ICT

Figure 3: ICT positioning attribute Source: T-Systems

2.3 The structure of Real ICT.

Real ICT covers three levels: Infrastructure, application and process.

Figure 4: Merging of IT and TC at the process, application and infrastructure levels Source: McKinsey, Shaping the ICT trend

2.3.1 Infrastructure level. The infrastructure level comprises, for instance, technical operation of mainframe computers, servers and databases at computing centres. This level also includes telecommunication services, i.e. network environments like WAN & LAN, mobile services, routers, firewalls, telephony systems as well as desktops, notebooks and handheld devices (workplace equipment). 2.3.2 Application level. At the application level, the Real ICT partner provides applications ideally matched with the enterprises business processes. Standards are employed to lower development costs and pave the way for continuous advancement and maintenance. Modern nearshore and offshore services safeguard application life cycles. This permits continually changing requirements for applications to be fulfilled more quickly, lastingly and economically at the highest possible quality. 2.3.3 Process level. How a companys business and service processes are implemented decisively influences the companys competitive capability. These processes must be optimized at the application and infrastructure levels in order to fulfil the enterprises requirements. Close cooperation between the enterprise and Real ICT partner is needed to fulfil these requirements optimally.

3 Real ICT in practice.

The steady convergence of IT and TC can be now be seen in a number of examples: Internet telephony (VoIP) is being used increasingly by businesses and private customers Staff are becoming increasingly mobile, requiring access to data from a variety of locations using different devices and communication channels PCs and servers increasingly require Remote Service Management via reliable transmission networks Technologies such as RFID are being used to trace shipments IT and TC environments in a mega-project like Germanys satellite-aided Toll Collect system jointly determine truck coordinates, register automotive data and perform financial accounting. The trend toward Real ICT is gathering pace. More and more customers are calling for integrated, standardized programs and services. Customers dont want to buy mere technology, but a solution to their problems - regardless of whether they involve IT, TC or process levels. For this purpose, enterprises need a Real ICT partner who can supply all required items perfectly matched and standardized. Surveys by consultancies such as McKinsey already indicate a paradigm shift on the market: IT managers want end-to-end Services, while IT, TC and application service providers are setting about trying to offer precisely that - Real ICT.

As CIOs seek to reduce costs and complexity, many of them say they would prefer to purchase end-toend service-level agreements from providers offering a combination of IT and telecommunications services rather than contract for each separately.
A rising demand for integrated IT and telecom services., McKinsey, 05/2006

3.1 Dynamic Services - or flexibility with demand-oriented concepts.

Companies implement their business processes in IT, TC and applications to various degrees of efficiency. This is usually because work processes must be based on availability of the infrastructure and application layers, not market requirements. In other words, the existent infrastructure layer prevents the company from perceiving current market requirements. At the same time, too many IT, TC and application resources are often maintained without being used, thus generating superfluous costs on a rolling basis.
100 90 80 70 60 50 40 30 20 10 0 Time

Paid, but unused ICT resources

Resource requirements

Figure 5: Inflexible ICT resources designed to handle peak loads. Source: T-Systems

Having recognized this problem, Real ICT partners have for some time now offered dynamic services whose flexibly available IT, TC and application landscapes can be adapted to a companys current demand. As a result, only resources actually deployed are invoiced (pay-per-use).
130 120 110 100 90 80 70 60 50 40

Capacity limit in the case of traditional in-house supply Savings potential Resource requirements

Dynamic ICT resources

30 20 10 0 Time

Figure 6: Dynamic availability of ICT resources Source: T-Systems

In the case of dynamic services, the company places the ICT partner in charge of supplying computing power - including the necessary technologies - and a data transmission network, in addition to providing and maintaining the required applications, right up to system integration and consultancy services. Continuous monitoring and reporting on business and service processes maximize transparency for the Real ICT partner and the company. In the event of a disruption or modification, the Real ICT partner is able to identify the affected business processes and respond in a pro-active manner. In the long run, this permits optimization of services and minimization of disruptions including non-productive times. An example: A globally active company frequently makes acquisitions at home and abroad. Challenges posed here include fast integration of new companies into existent business processes and linkage with the parent companys existent SAP system. So far, upgrading and re-integrating the existent SAP system to meet rising demands has proven relatively time-consuming and expensive. A Real ICT partner permitting dynamic extension of resources to meet changing requirements can help facilitate integration through a ready availability of the entire application and infrastructure levels.

3.2 End-to-end workplace management.

While the end user wants a reliable, simple environment, the management is interested in controlling support costs and ensuring a competitive advantage.

The options offered by Real ICT at the infrastructure level can be demonstrated using the example of end-to-end workplace management. Consider a large group which needs to establish a branch comprising about 500 workplaces outside the headquarters. This branch is to possess the same development environment and standards implemented at all other locations. For the company, it is important to avoid binding investments at the infrastructure and application levels, so that only costs of regular operations are incurred. From the Real ICT partners perspective, this means that the customer ultimately has to be supplied with the entire infrastructure and application levels, and running costs for each workplace have to be invoiced to the customer using a flexible price model. Since LAN and Desktop Services are delivered from a single source, for instance, the mega-group receives a transparent SLA covering all levels. In the event of a disturbance, the customer can get in touch with a local Help Desk via a Single Point of Contact in order to have the problem sorted out. Due to the Real ICT partners comprehensive responsibilities, this entity also bears the full risk of business interruptions.

3.3 The Toll Collect system.

Real ICT is implemented at two levels in the case of Toll Collect: The process level and the technical level. One special aspect of the Toll Collect project was that the enterprise, being newly established, did not impose any restrictions in terms of legacy IT, TC or application landscapes. Only a business model had been put forward; it was to serve as a basis for configuring the business processes and supportive ICT solution. The Real ICT partner was able to play a part in specifying the infrastructure level and thus fully deploy a characteristic Real ICT Top-Down approach. After a few initial difficulties, Toll Collect proved itself in the operating phase so that interest in the system has since been shown by other countries where the related design principles could be easily reproduced. At the technical level, Toll Collect was realized through a convergence of IT and TC in combination with end-to-end management. Introduced in Germany in 2005, the Toll Collect system for trucks is the most advanced system of its kind in the world. Making use of the Global Positioning System (GPS), Toll Collect is a highly advanced, flexible toll collection system serving additionally as a platform for future addedvalue services such as fleet management, traffic warnings and navigation. This system registers tolls for different types of truck which use the highway network. The toll is charged according to travelled distance as well as size and number of axles. Each vehicle is equipped with an On Board Unit (OBU) tracked by GPS satellites so as to permit the vehicle to be localized down to a few metres whenever necessary. Radio antennae additionally transmit microwaves to avoid double registrations on toll-free roads running parallel to neighbouring tollways. The OBU calculates tolls with the help of pre-installed software and electronic maps. The required toll is signalled via the mobile-phone network to the central Toll Collect computer system which is also responsible for invoicing. Occasional users without an OBU can make advance bookings via the Internet or any one of approximately 3700 terminals, the required toll being calculated automatically. Payments options include cash, filling-station pay card, credit card and direct debiting.

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Toll Collect is hence relatively complex in terms of system structure and interaction between Real ICT components. The Real ICT concept is demonstrated by the invoicing process. In this case, a Real ICT partner guarantees availability and implementation of an entire business process. The partner must ensure that toll data calculated during the process of truck registration are relayed via mobile radio links to the invoicing centre and assigned there to the correct shipping agencies. Because of its diverse layers and high number of users, this business process absolutely needs the fastest possible response to disruptions. This can only be achieved by means of sophisticated monitoring and reporting.

4 Supplier evolution.
Ongoing convergence between IT, TC and applications is leading to corresponding changes on the supplier market. Not only are companies increasingly considering international service providers as possible suppliers of IT, TC and application patchwork, but the boundaries between suppliers in this market are becoming increasingly vague. Traditional suppliers must decide today which role they want to play in tomorrows integrated ICT market, and prepare for the new role as early as possible. Classical, telecommunication (TC ) companies have long since been confronted with a choice: Either be a mass supplier with low profit margins but a clear focus on end users and conventional, core business, or invest heavily in establishment of IT and application resources to become a comprehensive, Real ICT partner. The pressure to change is increasing: Shareholders in TC companies are calling for growth and higher margins. Competition is intensifying and IT-related ancillary services serving originally for differentiation are now being taken for granted by customers. Not to forget the IP revolution: Someday, all communications will take place via IP networks permitting cheap telephony and thus further lowering margins for TC service providers. Many TC companies are responding by upgrading their business models with network-related IT services such as Managed Workplace Solutions, and opening up new business areas by investing in Next Generation Networks supporting, for instance, Triple Play (transmission of audio, data and video). The IT resources needed for this are obtained usually through partnerships and/or acquisitions of IT companies. All in all, such enterprises face complex and risky conversion from product supplier to service provider. Having discovered the Internet as a medium for supplying their own services in the meantime, classical IT Service Providers are investing in their own networks or forming close partnerships with network operators. Their objective as integrated Real ICT partners is to offer customers continuous services (global end-to-end management). Their advantage compared with TC suppliers is a historically evolved, closer relationship with their customers decision-makers (CIOs, IT managers) and a usually better knowledge of their business sector. At the same time, Real ICT has established a trend toward standardization and industrialization of IT, TC and application services, thus enhancing transparency and facilitating interchange of IT, TC and application service providers from the customers standpoint. Furthermore, service providers have to respond to increasing cost pressures by integrating global resources (nearshore/offshore in low-wage economies), lowering material and staff expenses (through Dynamic Services) and consolidating international subsidiaries (Operational Scale).

convergence will take place increasingly and will drive consolidation in the sector. We expect this consolidation to be driven by telcos as they try to complete their utilitybased infrastructure offering.
Convergence: convergence will finally take place?, Citigroup, 04/2006

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This revolution among service providers is being accelerated by a development of a completely different nature. Numerous analysts describe how companies from India are not only acquiring competence on the international IT, TC and application markets, but also pushing closer toward western Europe. These companies possess adequate financial resources, have large numbers of well-trained staff, and are not burdened with the inflexibility of legacy structures. Nevertheless, analysts agree on one outcome of this development: Only those companies which have already invested in IT, TC and applications, and are already able to supply Real ICT solutions comprising compatible elements will get a substantial slice of the pie. According, only a few Real ICT partners will in future be able to provide everything from a single source. All other companies will have to look for niches in the global market and specialize, for instance, as low-cost pipe providers or suppliers of IT, TC and applications.

Indian firms are rushing to increase their skills and client intimacy, while Western firms are rushing to reduce their cost structures and maintain differentiation.
Summit 2006, Ovum

5 Customer positioning.
Commissioned by T-Systems, market analysts from PAC (Pierre Audoin Consultants) conducted a user survey in January/February 2007. Target groups of this survey were CIOs, IT managers and IT department heads from companies in Germany, Austria and Switzerland with a total of more than 1000 staff. The survey yielded 152 interviews which could be evaluated. The result clearly indicated a high awareness of technological convergence of the two areas. Only 3% of respondents did not see any signs of convergence. By contrast, 79% of respondents had already noticed these changes in their own company. In both cases, i.e. broadly speaking and in-house, VoIP and a joint use of communication structures were mentioned as outstanding trends. A slightly smaller proportion (75%) already saw a convergence of IT and TC in business processes.

VoIP /video conferencing, IP TV, special fax and em ail solut ions Cust om er Care area (CallCent er cust om er dat a on P C) General opt im izat ion of processes t hrough a m erger of IT and TC Telephony (aut om at ic dialing, Caller ID) In som e of t he depart m ent s (sales, purchasing et c.) 0% 2% 4% 6% 8% 11%

14%

11%

7%

8%

10%

12%

14%

16%

Figure 7: Which, for you, are the first signs of convergence of IT and TC in business processes? Source: PAC 2007

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Evidently, Real ICT is still thought to be characterized strongly by technology and infrastructure, and defined mainly by VoIP as well as joint usage of infrastructure, rather than a convergence of application landscapes. When asked how they thought requirements for IT and TC were changing, 33% of IT managers replied that both areas were converging perceptibly. The outlook of ever more complex requirements, rising cost pressures and increasingly significant cost transparency was clearly confirmed too.

Bot h areas are m erging not iceably 33% Requirem ent s are generally becom ing m ore com plex and broader Cost pressure/t ransparency of cost s/flexible pricing m odels Higher speed/short er developm ent cycles 16%

15%

12%

Higher m obilit y/availabilit y (e.g. Hom e Office) 0% 5% 10%

12%

15%

20%

25%

30%

35%

Figure 8: How are demands on IT and TC changing in your opinion? Source: PAC 2007

Respondents also agree that the most important requirement in future is a continued, substantial convergence of IT, TC and applications, as well as emphasis on customers business processes to maintain efficiency and competitiveness. Accordingly, the majority of customers sees a need for more investment in Real ICT concepts. In addition, decisions influencing both areas are usually made centrally. At present, however, Real ICT is still considered to be strongly driven by technology. Technological fusion is evaluated as being extremely useful in increasing efficiency and productivity in order to secure a competitive advantage. Focal points here are common, integrated infrastructures allowing better, more flexible communications and standardized, more economical operation. In this sense, Real ICT investments also lay emphasis on infrastructure, especially in TC-driven areas (Network Services, Mobility, Security). The main factors behind investments in Real ICT are costs and efficiency; when it comes to partners, however, quality and performance play the most important roles in optimizing results. This is also confirmed by the advantages expected of Real ICT services. Though the majority of respondents (53%) expects their costs to drop notably, 36% see more efficient, faster and more transparent processes as decisive advantages of convergence. Most IT managers (55%) find it important for all their IT, TC and application services to come from a single source.

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Cost savings/cost reduct ions P rocess opt im izat ion (m ore efficient , fast er, m ore t ransparent ) Use of com m on synergies/infrast ruct ure S aved t im e/fast er decisions S t andardized dat a exchange/st andard t echnologies 0% 11%

53%

36%

11%

10%

10%

20%

30%

40%

50%

60%

Figure 9: Which advantages do you expect from a convergence of IT and TC? Source: PAC 2007

Evidently, convergence of IT, TC and applications is seen less as supporting business developments (exploiting new potentials, extending performance spectrums, customer satisfaction, quality) and more as a cost-cutting measure.

6 Challenges for customers and suppliers.

Now in the final phases of evolution, Real ICT will soon open up many new avenues and advantages for the economy. To benefit from all aspects of Real ICT, it is essential to turn away from prevalent approaches and pursue a universal implementation of IT, TC and applications harmonized with overlying business processes. IT, TC and application service providers must be able to offer Real ICT solutions which fulfil customer requirements (e.g. for standardized, consistent and reliable systems). Difficulties arise, for instance, in trying to achieve the promised level of transparency: The enterprises structures and processes must first be established and developed, because integrated services, empirical curves and scaling effects take more than just a couple of days to develop. What also requires clarification is the number of enterprises already in a position to implement Real ICT. Existent IT, TC and application landscapes are often more complex than they seem, many of the overlying business processes having evolved historically so as to make re-engineering quite difficult. Developments are also retarded by an aspect of a more subjective nature. Enterprises are wary of becoming dependent on the services and price models of a Real ICT partner as a result of single sourcing. Nevertheless, companies could use intelligent sourcing to utilize all the advantages of Real ICT without becoming fully dependent. At the present stage of development, it is not easy for Real ICT partners to dispel this entrepreneurial misgiving.

Many leading CIOs havent yet integrated their IT and TC departments and their sourcing strategy which affects their companies readiness for converged service deals.
IT/ Telecom Converged Service Delivery Outsourcing Deals H1/ 2006, Forrester, Jan 2007

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7 Conclusion / outlook.
Even if Real ICT is in an advanced stage of evolution, it will continue to play an increasingly important role for enterprises as well as IT, TC and application service providers in future. For companies, this is a chance to concentrate again on core competencies and/or use resources for developing new ideas. From the providers standpoint, especially large customers are voicing stronger demand for end-to-end services. According to management consultancy McKinsey, Real ICT partners must therefore be in a position to supply integrated IT, TC and application services with a single SLA worldwide at a moments notice in order to remain globally competitive in the long run (also refer to the illustration titled The winning formula for ICT leadership.).

The winning formula for ICT leadership

Provider offering Customer demand Important buying criteria for TC and IT outsourcing (forced ranking) TCO reduction End-to-End SLAs
Flexibility/Scalability

Standar1 dization/ Globalization

a standard SLAs b production c

Industrialized Global delivery networks
Confirmed by 92% of interviewers

Service driven

Security Incident recovery Pay what you use New services

Global delivery capabilities for MNCs

Integration/ 2 Convergence

End-to-end services (across the stack) Integrated TC and IT offerings Confirmed

by 97% of interviewers

Figure 10: The winning formula for ICT leadership Source: Borrowed from McKinsey, Serving Enterprise Customers - The winning formula for ICT leadership.

Aware of the challenges posed by Real ICT, the IT, TC and application service providers are already working on solutions to achieve a smooth integration of Real ICT into daily enterprise operations. Especially in the area of error tracking, Real ICT pioneers have developed tools enabling them to identify and eliminate errors as early as possible. Customers doubts about dependency on a single Real ICT partner will also soon be put to rest. Implementation of Real ICT defines clear interfaces between individual technical levels and fully standardizes services across all levels. Besides directly impacting IT, TC and application service providers as well as enterprises, Real ICT opens up new markets and business models, such as the insurance sectors presently debated, dynamic adjustment of automobile insurance premiums (pay-as-you-drive) on the basis of telematic recordings, similar to the Toll Collect principle.

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Besides considering the significance of Real ICT for enterprises as well as IT, TC and application service providers, this white paper also briefly describes related technological developments, possible implementation scenarios and current market trends. Based on a universal approach, analysts from the management consultancy McKinsey anticipate sophisticated solutions offering clear advantages to customers: Real ICT solutions with end-to-end management simplify and improve handling of incidents Comprehensive, Real ICT solutions cut costs while allowing flexible price models New, Real ICT solutions open up new markets, market segments and business models for the industry. So far, IT, TC and application levels have often been considered in isolation, changes to overlying business processes sometimes proving time-consuming, expensive and short-sighted. As a result, enterprises squander a great deal of potential and cannot concentrate fully on performing and extending core competencies. The success of Real ICT at enterprises is influenced decisively by a paradigm shift to a comprehensive approach starting at the process level. Real ICT permits enterprises as well as IT, TC and application service providers to re-structure in equal measure, so that both parties can benefit from current market developments and improve their presence in the global economy.

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List of figures.
Figure 1: Figure 2: Figure 3: Figure 4: Figure 5: Figure 6: Figure 7: Figure 8: Figure 9: Figure 10: Business Architecture as an interface between strategy and deployment Unlike ICT Bundling, Real ICT service providers do not act as general contractors. Instead, they offer comprehensive packages from a single source. ICT positioning attribute Merging of IT and TC at the process, application and infrastructure levels Inflexible ICT resources designed to handle peak loads. Dynamic availability of ICT resources Which, for you, are the first signs of convergence of IT and TC in business processes? How are demands on IT and TC changing in your opinion? Which advantages do you expect from a convergence of IT and TC? The winning formula for ICT leadership

List of references.
[Citigroup] 04/2006 [Forrester] 06/2006: [Forrester] 01/2007: [Forrester] 01/2007: [HPI] 12/2006: [McKinsey] 2005: [McKinsey] 2006: [McKinsey] 05/2006: [Ovum] 03/2005: [Ovum] 11/2005: [Ovum] 2006 [PAC] 04/2006: [PAC] 02/2007: [T-Systems] 02/2007: [T-Systems] 2006: [T-Systems] 2006: [T-Systems] 12/2006: Convergence: convergence will finally take place? Converged Service Delivery: The Missing Link In Achieving Business Flexibility Positioning T-Systems For Convergence Market Leadership IT/Telecom Converged Service Delivery Outsourcing Deals H1/ 2006 Convergence of media - The future of networks and services Serving Enterprise Customers - The winning formula for ICT leadership Shaping the ICT trend for Future ICT Leadership A rising demand for integrated IT and telecom services The ICT market - who will win the game? ICT strategies for telcos Ovum Summit 2006 Trends, Challenges & Opportunities for the ICT Industry Customer Survey of Real ICT Perception Analysis ICT Dynamic Services for SAP from T-Systems White Paper Dynamic Services T-Systems portfolio strategy

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Issued by: T-Systems Enterprise Services GmbH Corporate Marketing & Communications Mainzer Landstr. 50 60325 Frankfurt

Contact: T-Systems Enterprise Services GmbH Corporate Marketing & Communications Robert Wienroth Fasanenweg 5 70771 Leinfelden-Echterdingen E-mail: Robert.Wienroth@t-systems.com T-Systems Enterprise Services GmbH Corporate Business Development Ruediger Amsler Mainzer Landstr. 50 60325 Frankfurt am Main E-mail: Ruediger.Amsler@t-systems.com

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