Digital Marketplaces Unleashed

Considering the history of mankind, not much time has passed, since Friedrich Schiller captured the dilemma of his time in a nutshell in his famous Wallenstein trilogy: “The world is narrow, wide the mind of man”. Today, in our digitalized and globalized world, Friedrich Schiller would describe the dilemma precisely in the opposite way: The world has become wide, but our brains are too narrow for the new world we live in.The articles in this book underline the wide range of opportunities for innovative business enterprises offered by digital technology in our global and connected world. There is no doubt that this rapid development will not only continue, but even accelerate during the next years. The most important perspectives and directions of this process are clearly pointed out in this book.Technological innovations do not only alter our previous means of production or change economic developments, they also offer completely new instruments to academic research. The use of digital media allows previously inconceivable insights into the structure and the organization of complex phenomena. This does not only concern classical natural sciences, such as astrophysics, but also and above all the so‐called life sciences, the research of living systems from cellular and organic systems to the ecological and social systems.

Globally, economies and societies are going through the most fundamental change in history. We are experiencing the displacement of the Old World, as we have come to know it, by the New World, which is still largely unknown. It is the origin of a new order and a new societal functioning—a new kind of societal revolution. I called this process “Great Transformation21” in my book about “Governance” back in 1997. It will change almost everything: What we do, how we do it and why we do it—and, lastly, who we are. In just a few years almost everything will be new and different: How we manufacture, transport, finance and consume, how we educate, learn, do research and innovate; how we share information, communicate and cooperate; how we work and live. That will also change who we are.A new dynamic order is forming, and—more importantly—so is a new mode of functioning of society and its organizations. Digitization is one of the most powerful of several major driving forces. Its full potential will be exploited by an equally powerful force which is a new kind of management, governance and leadership. It is the system‐cybernetic kind of managing complex systems. As I will later show, both have much in common since they had their birth at the same time and in same place.

We are at an inflection point where consumer technologies and innovation have forced their way into Global 2000 enterprises. People are asking themselves why enterprise software should be so much worse than someone’s experience on an ecommerce travel site or searching for something on Google. And disruptive technologies such as new digital consumer devices and services have disrupted the datacenters at the heart of every large company in the world.These advances in enterprise IT require new methods of computing, and a new breed of entrepreneur able to capitalize them. The unleashed digital market places are an exciting time that arguably began with the rise of the Worldwide Web just more than a decade ago, but really accelerated with the rise of social networks and mobile devices in the more‐recent past.Think about the shifts that have occurred since the 1990s, and have really picked up their pace in the past decade. One of the biggest is the proliferation of computing and the ability (or requirement) to reach consumers where they spend so much of their time—on their smartphones, tablets and laptops, or via connected devices that interface with those computers. A large enterprise application in 1995 might have involved thousands of client desktops connected to a single big‐iron application server or database server. Now tens of thousands to millions of laptops, tablets, smartphones and other devices have to access a single application at any given time.

Digitization makes our lives faster and faster. Communication happens in real‐time, products are being developed on demand. I do not occasionally visit a market place any longer, I am always right there – as a particle of an amorphous group that continuously adapts its structure. We present you some thoughts about the proliferation of markets and the emergence of spontaneous business models, on how to cope with the fear of failure, how important and how demanding it is to arouse your clients’ curiosity, and about opportunities for exponential growth based on the real‐time ability to decide whether an innovation will be successful or not.

The new waves of the ongoing digital revolution are certainly of high importance to everyone. New markets are created in a highly dynamic fashion, with the industrialized West and its backbone of technology manufacturers undergoing fundamental changes in the coming years, and new products flood our lives, whether directly as consumer goods or, a step before that, as baseline technologies, infrastructures, production machinery, new cars, new drug pumps, new reactors, parts of our formerly dumb and blind environment of “old tech”. In sum, businesses and technologies in Germany and Europe are faced with enormous options for change – and their according sets of opportunities and threats.Yet while everyone agrees that something great and, in a business sense, oceanic is under way, the question whether we will master this change and benefit from it, economically and individually, is somehow open. All commercial benefactors from industry captain to startup hipster agree, of course, that they do or will master this new surge in digitalization. And most of them, to be fair, try hard. But is it really enough? And do they try in the right way?These questions are very hard to answer. Success is difficult to measure, at any rate, and many paradigms are young and technically inasmuch as commercially still in their infancy. However, we may be able to learn some lessons from other fields of IT with more history to them.

In the past few years a new actor, who is playing an increasingly important role in ranking ideas and the scholars who share them, has emerged: the TED organization. While debate has surrounded popular academic research output rankings such as, impact factor, h‐index, Times Higher Education Ranking and Google Scholar, the TED Talk phenomenon does not seem to have garnered the same amount of interest. We argue that TED talks can be seen as a social form of ranking which specifically affects higher education and potentially research and innovation through decisions on what to invest in next. The TED organization then becomes a gatekeeper in the production and the cultural valuation of symbolic goods and social practices, especially with regard to research and innovation worth spreading. In this chapter we attempt to demonstrate how the TED ecosystem is a marketplace for ideas. By applying the concepts of recognition, valuation and signaling, we show how the TED ecosystem functions as both a means of gaining recognition for speakers and their ideas, but also provides a means of ranking those ideas and projects by signaling their importance by inclusion in the curated collection of talks accessible on the TED website.

The analysis and use of steadily growing sets of data from business processes and consumer interactions and the intelligent linking of data provide tremendous development potential for the digital economy, but also involve risks that are widely discussed in association with data privacy. At the same time, of course, consumers also benefit from innovative and new products and services which are only made possible by intelligent data analysis. But when digital data becomes the raw material for value added on the one hand and appealing products for connected life and work on the other hand it appears that these principles alone do not suffice any longer. Not least because due to technical reasons alone the cross‐linking of economy and society generates large amounts of new data that are often not even acknowledged by consumers and the creation of which they cannot prevent. Up until now, there has only been insufficient systematic assessment of the consumers’ experience associated with their data sovereignty, digital self‐determination respectively. However, the exercise of digital self‐determination by the consumers themselves and a corresponding rise of awareness is a key prerequisite for acting confidently in the digital world of the Internet of Things and in digital business processes. The following study provides answers to the following questions related to consumers’ digital self‐determination: What is a coherent, plausible concept of ‘digital self‐determination’? How can we measure (dimensions of) ‘digital self‐determination’? What degree/amount of ‘digital self‐determination’ do customers/users of digital media want? Based on the empirical results the concept of “digital self‐determination” is described and accentuated. On the one hand, it can thus be a foundation for a consumer‐centered adaptation of manufacturing or business processes. On the other hand, it can also provide implications for policy‐steering considerations.

Above all, in this article we would like to raise questions, which need to be addressed if we want to become mature citizens of a digital society – and to be successful in mastering this digital transformation, in Germany. The article also shows potential solutions to the deciding questions we have to answer in order to avoid becoming powerless marionettes attached to the strings of the digital revolution. It is also a question of bridging the gap between our private app behavior and the resulting implications for successful digital strategies in enterprises, society and politics. Oftentimes we are well aware of the successful digital solutions available, but are simply not able to identify the deciding success factors and to adapt them to entrepreneurial areas. In the consumer market place, major and minor global players are demonstrating how digital interactions can, and need to function in order to meet customer needs (see amazon, google, Facebook, Alibaba, airbnb, ebay, etc …). Why is it then that it is so difficult for IT departments of large corporations to offer equally successful functional digital applications for their employees? What is the significance of UI and UX designs in the consumer market on the one hand, and the influence of company culture on the success of digital strategies on the other? Is there a correlation or can the two worlds – private and professional, consumer and enterprise markets – be viewed independent of each other? How can digital corporate strategies profit from our digital commonplace? In order to answer these questions we need to recognize our ways of dealing with digital media, and analyze which conscious or subconscious mechanisms we use to navigate through in an ever increasingly digital world.

The effort to verify identity and authenticity has influenced much of human history. It is so central to civil society that it has been the subject of plays [1], great literature, famous laws, and is more relevant in the age of computers and passwords than ever before. But more tediously, authenticity has been an obstacle that has slowed the advance of humanity for centuries. The inability to quickly and absolutely verify an individual’s identity or know with certainty the value or existence of a thing remains one of the great obstacles to progress in our day. But that problem could have a technological solution [2]. The technology is called Blockchain and there is an intense, ongoing debate over whether it is capable of progressing authentication practices beyond the clunky system of signatures, notaries, and records that we use today. In this paper, we will consider arguments for and against the widespread adoption of Blockchain. I will seek to make the case for greater reliance on Blockchain technology as a means of modernizing identity management and value transactions. To do so, we necessarily must consider its biggest use case to‐date: Bitcoin. But we will look further, into emerging efforts to apply the technology to real world problems and how it is changing the world.

The Amiona digital marketplace allows citizens of St. Gallen, a city of 75,000 people in eastern Switzerland, to make appointments 24/7 with quality‐assured, trustworthy local service providers, as well as to provide informal support to neighbours and coordinate local events. The lessons learned reveal the benefits of a local service marketplace for both consumer and provider, highlight the criticality of response time for user acceptance and ensure additional improvements. Iterative enhancements of the platform based on these learnings from daily operation have already resulted in a ready‐to‐use standard software solution for digital marketplaces that addresses the varying needs of users with highly diverse levels of digitisation, in particular by supporting three different processes for appointment coordination – also allowing those with paper‐based agendas to participate – in combination with a variety of notification channels to shorten response time.

The transformation brought about by digital marketplaces will be the key challenge for any industry in the coming years. The media, IT and telecommunications sectors have struggled to adjust to a changing business environment for almost two decades. Now, companies from the financial services, transportation or even engineering sectors are ripe for disruption caused by technology and new business models. The only way to survive this process is by thoroughly preparing the entire organization for a transformation of unprecedented scope.Providing strong leadership and vision or turning over the corporate culture is just a first step. In addition, cross‐functional teams should become the norm, as well as incentive systems that reward risk‐taking and agile development processes on the technical side. Taking cues from scientific literature, the authors’ personal experience as digital transformation consultants and interviews with top executives, this article delivers a set of recipes for C‐level management on how to transform their organizations for digital success.

What purpose would education serve in our days unless it helped humans to a knowledge of the environment to which they have to adapt themselves? (Maria Montessori)

If one would conduct a historic review of educational systems one observes a coevolution of society and education. In the agricultural period education was characterized by an apprenticeship model which reflected the needs of the prevailing family and community settings. The current educational model was formed by the industrial revolution (“first machine age”) and is often referred to as the factory model. Today’s world, however, is characterized by the automation of cognitive tasks designed to substitute human activities with software based machines, the so called “second machine age”. This is triggering a new era of complexity with large scale social changes. While the concrete implications of that shift are still unclear, certain patterns with implications for an adjusted educational model can be detected. The digital champions of today are no longer relying primarily on an efficiency and cost savings focus, on hierarchical structures, and on placing the shareholder value at center stage. Thus, the hierarchical build factory model for education, which focuses on rote learning and standardized testing, with an emphasis to efficiently produce graduates, is put into question as well. A knowledge based, creative and innovation economy, which is less‐hierarchical and is focusing on customer value, requires a different set of skills. In a nutshell, I argue that it requires the ability to maintain a lifelong lasting curiosity and to be collaborative. Only a curious mindset, inquisitive and open to new situations, can transform complex problems into manageable situations. Collaboration is thereby the imperative for acting in complex settings. Our educational system has not yet adapted to the new requirements of the digitalized world. Rather than producing mines of information, educational institutions should foster curiosity and collaboration.

Digitalization and innovation pressure are changing the world of corporate learning, new rules of learning are emerging. Today competent learners seize the initiative and form great networks. They quickly get learning contents out of the internet, learn in online courses with high quality videos, visit virtual conferences, give webinars and finally exchange information in expert networks with people of their own academic level. Colleagues help one another with podcasts and short video clips. They get to know new approaches and methods of work through agile and digital collaboration. Today learning in technology‐oriented business units is increasingly informal, individual an independent of intermediary educational institutions and services (HR, trainingsprovider). The progress leading from just learning to individual learning is particularly emphasized by ‘learning analytics’. Several promising examples show how structured learning contexts lead to a more individual and efficient learning of facts. More general models of individual learning are conceivable if learners own, use and analyze their personal data. If the possibilities of digitalization are combined with concepts of pedagogy and learning psychology, every learner could take another advantage. The change of corporate learning in the future will be diverse.

Digitalization drives information and workflows to new possibilities. The exchange of necessary information is a critical process in every organization to deliver best results. This is truth for private organizations like companies as well as public organizations like schools. State‐owned institutions are in particular affected of privacy protection and judicial conditions. Thus, digitalization is the key to success and needs to fulfill diverse requirements – legal regulations, social restrictions and at least technical restrictions. Examples are the diversity of the target groups inside a school – parents, teachers, scholars with different backgrounds as well as technical skills or the diversity of existing software and data sources inside the school. In addition, the use of digital tools for communication in schools needs and teaches specific media literacy and is integrated in a system for education. At least, communication channels must be secure to keep private or personal information as a secret inside the school family. In this chapter, the authors provide an overview over possibilities and requirements of digital collaboration, communication and organization in schools with the experience of a self‐developed and provided software for German schools, called “DieSchulApp”.

Technology corporations such as Google and Facebook are investing billions of dollars to provide internet access for people in remote areas on the African continent via WLAN drones. But even in Western society there are blank spots on the network map. The respective countries and economies should do something about this. This essay researches how digital media use influences the lives of marginalized groups in Germany and other countries. The focus is on media use of elderly people. Various projects and models are introduced which are used by government agencies and private initiatives in order to measure and improve the digital competence of this population section. By analyzing online user data and reviewing various other studies, the goal is to define how elderly users utilize digital media and what kind of benefits they derive from it. Further, it should be analyzed if the communication space deserves the stamp of being “barrier free”. Is there sufficient accessibility and clarity that even marginalized groups like seniors can fully use the opportunities that new media offers?

COMALAT (Competence Oriented Multilingual Adaptive Language Assessment and Training) project aims to strengthen the mobility of young workers across Europe, by improving job‐specific language competence tailored individually to particular needs. In this work we will concentrate on the COMALAT learning management system (LMS), which is a language learning system for Vocational Education and Training (VET). COMALAT LMS aims at providing learning material as an Open Educational Resource (OER) and is capable of self‐adapting to the needs of different learners. Each learner is treated individually in acquiring new language skills related to job‐specific competences. In addition, it is specifically tailored towards addressing competence areas, and therefore it is not a generic language learning platform. We discuss some technical details of the COMALAT platform and present the various aspects of system adaptability which tries to imitate the help provided by an instructor by observing the users’ strengths, weaknesses and progress in general, during the learning process. Also we discuss the digital e‐learning materials in COMALAT.

A number of automotive managers attended the recent SingularityU Summit in Berlin. They face serious disruptive changes. As Volkswagen CIO Martin Hofmann put it: “As soon as the customer no longer touches the steering wheel, the emotional bond to his car gets lost and we enter a completely different game”. Later, one of the managers present asked Salim Ismail, author of the book “Exponential Organizations”, how a big corporation can manage disruptive innovation from the inside. Ismail’s answer was disillusioning. Better you move it to the fringes of your company and run it in absolute stealth mode, he recommended, otherwise the “corporate immune system” will strike back and devour both, the innovation and the innovators.Quite a dire outlook. These are the billion Dollar questions indeed: How can a big incumbent corporation manage disruption? How can it re‐invent its own business model from the inside instead of falling victim to disruption from outside entrepreneurs? Can it after all or are the odds so much in favor of start‐ups or spin‐offs that the best it can do is deferring demise by incremental improvement?

Following the rise of digital technologies, more and more large corporations and entire industries are disrupted by technology startups. In the past it was Airbnb disrupting the hospitality industry with more beds around the world than any hotel chain. Now it’s Tesla who is disrupting automotive companies by selling more premium vehicles then BMW or Porsche, and in the future it might be new P2P‐insurances or bitcoin‐based payment apps that disrupt the financial industry. These are just a few examples of disruptive digital startups that are winning against powerful corporations and traditional industries. Looking at the big picture, it increasingly seems that even abundant with money and resources, large, complex corporations still cannot find a way to compete against agile startups that are able to exploit disruptive technologies much faster.Built on secondary research and experiences with more than 50 innovation projects, the authors aim to shed light on the disruption paradox for large corporations and offer an efficient innovation framework including the 5C‐Process as a novel managerial solution to it. This should sensitize decision makers in established companies in regards to their innovation challenges and any digital disruption threats, and provide them with new tools to act and win the race against disruptive startups.

In recent years, electronic contracts have gained attention, especially in the context of the blockchain technology. While public blockchains are considered secure, legally binding under certain circumstances, and without any centralized control, they are applicable to a wide range of application domains, such as public registries, registry of deeds, or virtual organizations. As one of the most prominent blockchain examples, the Bitcoin system has reached large public, financial industry‐related, and research interest. Another prominent block‐chain example, Ethereum, which is considered a general approach for smart contracts, has taken off too. Nevertheless, various different set of functions, applications, and stakeholders are involved in this smart contract arena. These are highlighted and put into interrelated technical, economic, and legal perspectives.

Despite the continuous increase of digital exposure, the human senses remain analogous recipients. Therefore, creators and operators of visionary marketplaces need to put high emphasis on a multi‐sensory customer approach at the Point of Sale (POS). Although the sense of hearing plays, next to the eye, an essential role in the processing of information, the impact of sound is often underestimated in this context. Sound can work as element of communication to emotionally charge brands, products and services while improving the atmosphere of retail locations.

This chapter illustrates how digital marketplaces may be allied to gamified IT applications/systems to support solutions for complex, costly community challenges in a sustainable manner. A generic modular architectural design for these marketplace‐based games is proposed and instantiated to public health and water management problem scenarios so that the resulting games support expected solutions. Preliminary validation studies of the games’ usefulness as a solution‐support and business‐promotion tool have been carried out for the cases of a game to combat disease‐carrying mosquitoes and of a water conservation game. These games have then been applied to real‐case scenarios pilot tests. The chapter reports on validation results and the contribution the embedded marketplaces may bring to these games and their sustainability.

The notion of disruptive technologies has become in recent years a prominent concept in industrial dynamics and strategy. Yet, we still know too little about the frequency, intensity and modalities of this crucial phenomenon, let alone about the implications for strategy and policy making. There are indeed various meanings and interpretations of this concept, in the literature and in practice, but they often lack generality and in most instances theories rely on a quite narrow set of specific cases of particular firms, products and industries. This paper will not review the details of this debate. Rather, some more basic issues are discussed about the intensity and forms of disruptive innovation and the strategies and reactions of incumbents to the threats presented by new technologies. The paper presents and discusses the various meanings and forms of this concept as well as the conflicting evidence coming from different sources and methodologies in order to clarify its relevance and the differentiated ways in which it appears (or it doesn’t appear), thus providing very preliminary and basic indications for analysis and action. The paper concludes that in the aggregate and over time what we observe is a puzzling co‐existence and turbulence and stability in industrial dynamics, which appears to be driven by the complex interplay of differentiated processes of market selection and – above all – learning within firms. The specific characteristics of the relevant technologies, markets and firms are fundamental determinants of the patterns of competition and industrial change and they have to be considered carefully in the development of theories, strategies and policies.

The Global world is transforming at an unprecedented speed offering unique opportunities to new market players yet representing sometimes unique challenges to established companies. Whilst many aspects of a typical company operations have been digitized over the past decades, we are currently experiencing true Digital disruption in every industry.Fundamentally New Business Models on the one hand and Digital Transformation of the established business architectures on the other are offering both newcomers as well as established firms a unique possibility to challenge the status quo and impose disruptive market movements.Over the past decades, the IT industry has often played an enablement role: ranging from ERP systems, transactional CRM system, supply‐chain systems, manufacturing execution systems, data archiving and records management systems, etc. IT has mostly been positioned as the “to have” cost item on the company strategy charts and investment priorities.Yet the Global Digital World has changed the competitive landscape once and forever. Achieving business agility and market reach, creating brand awareness and product preference, driving ongoing compliance and market leadership through differentiated capabilities and unique customer experience is mostly impossible without IT taking on a central role within the company strategy, unleashing hidden internal company resources and assets while opening potential new external market opportunities.

Industrial production has been paramount for survival on competitive markets. But what does this mean for software development? Will occidental programmers be supplanted by computers churning out software? Or by hordes of low paid programmers in India as clothing manufacturers have been by sewers in Bangladesh? Industrialisation is usually measured in terms of production capacity (how much can you produce per day?) and production price (at what unit costs?). This raises two questions: (1) What is a suitable unit of software quantity? And (2) how do you calculate the unit price? The answer to (1) should depend on the value a piece of software really affords the user, which leads to the notion of a feature with measurable benefit. A rash answer to (2) would be “required time multiplied by labour costs” but this neglects quality debts caused by flaws such as unclean code, careless testing, lacking functions, breached architecture, poor performance or insufficient data security. Software debts tend to go unnoticed for a while but lead to a dead end in the long run: time and money is squandered on imperative repairs while new features grow more and more expensive, with the project being finally brought to a grinding halt. This article explains what software industrialisation really means and how it is achieved. And, most importantly, it tells how to keep quality debts close to zero.

The chapter is about how customer behavior in the digital world challenges retailers to reinvent its current enterprise setup and IT approach and shift to a Digital Division Enterprise.While in the past, retailers tried to create customer categories out of statistical, historical data, today we have to satisfy the customer’s here‐and‐now mentality with dynamic information related exactly on the customer’s here‐and‐now perception.That is why we have to connect the customer over different technologies, over different touch points with digital data and digital knowledge. Touch points to reach the customer are currently digital signage environments, ibeacons and the customer’s smartphone.The key point is a digital platform, acting as interface between the customer touch points and the multiple frontend and backend systems, which are the owners of all data and information. In fact, we need to know the customer needs and desires just in the moment he is touching the touch point.

Personalization can be used to improve the quality of a service for a user. From the providers’ perspective personalization can be used to better target its users. Personalization is achieved by creating and maintaining a user profile that describes the user, her interest and her current context. A major concern with creating, maintaining and using user profiles is user privacy and trust. In this chapter we will discuss the process of creating and maintaining user profiles with a privacy preserving focus.

Cognitive systems like IBM Watson understand at scale, reason with a purpose, learn with each new interaction, and interact naturally with humans, augmenting human intelligence – but before discerning the significance of cognitive computing, it is firstly important to place it within historical context. To date, there have been three distinct eras of computing: 1) The Tabulating Era which helped revolutionize the way in which we were able manage large volumes of structured data like the census; 2) The Programmatic Era which ushered in the computer revolution allowing us to apply rules and logic revolutionizing the ways in which large and complex transactions were automated (e. g. financial systems, travel systems, etc.); and 3) The Cognitive Era which is extending our ability to work with information of all types, structured and unstructured (e. g. text, pictures, video), with natural conversational interaction, exploration not simple search, decision optimization based on evidence and confidence, all in a time frame that allows us to achieve better results.

This article examines the development of content management in digital marketplaces and illustrates why it will remain a core competency for e‐commerce brands in the future. The article explores the journey of digital, leading e‐commerce brands becoming publishers and subsequently investing in technology, people and processes accordingly to address topics such as segmenting content into owned, earned and paid media, and change of human capital in a differentiated world of online communication. With a view to content management systems and tools, the article details how technology can contribute to this change, but also demonstrates the challenges faced by organizations while considering the role of content creation, publishing and monitoring processes and the requirements for content management for each of these processes. Presenting ‘chat bots’ as a future scenario of digital communication, the article argues which of the stated requirements might change or remain necessary for organizations to compete in the digital market place.

Digital markets strongly depend on a sufficient level of network and information security. As the digitization of all business processes leads to a complex landscape of digital networks, systems, and services, overarching security standards become crucial for the economic development. Thus, state actors worldwide aim to build regulatory frameworks to somehow guarantee network and information security. Right now, with regard to the digital economy, Europe is not at the forefront of the global economic regions. By passing a new regulation on network and information security, the Union aims to present a modern regulatory approach to a key issue of the digital economy. The EU directive, set into force in August 2016, is a major step to a stable regulatory environment, that might be a raw model for regulators worldwide. However, from a technology perspective, the legislation will predominantly lead to compliance efforts of market operators, not to technological innovations. To some extent, this can be bridged by the development of market standards under the regulation. Nevertheless, further regulatory action is suggested.

The history of artificial intelligence shows us that there has been a gradual and evolutionary development within the special aspects of computational sciences that underlie the technologies prevalent in machine learning. Most of the technologies consist of methods defined by so‐called computational intelligence, including neural networks, evolutionary algorithms and fuzzy systems. Data mining topics have also become more significant, due to the rapid growth in the quantities of data now available (Big Data), combined with having to face the same challenges encountered in the IoT (Internet of Things). The question now is: How can computers be made to do what needs to be done without anyone prescribing how it should be done? Nowadays, a whole range of providers offers frameworks for machine learning. Some of them allow us to use machine learning tools in the cloud. This option is mainly provided by the big players like Microsoft Azure ML, Amazon Machine Learning, IBM Bluemix and Google Prediction API, to name but a few.Machine learning algorithms extract high‐level, complex abstractions as data representations by means of a hierarchical learning process. Complex abstractions are learnt at a given level based on relatively simple abstractions formulated in the preceding level in the hierarchy. Deep learning is a subarea of machine learning, and could even be described as a further development of this. While traditional machine learning algorithms rely on solid model groups for recognition and classification, deep learning algorithms develop and create their own new model levels within the neural networks independently. New models do not need to be repeatedly developed and implemented manually for each new set of data based on different structures, as would be the case for classic machine learning algorithms. The advantage of deep learning is the analysis and learning of massive amounts of unsupervised data, making it a valuable tool for Big Data Analytics where raw data is largely unlabeled and uncategorized.

Thanks to the big data revolution and advanced computational capabilities, companies have never had such a deep access to customer data. This is allowing organizations to interpret, understand, and forecast customer behaviors as never before. Artificial Intelligence (AI) algorithms will play a pivotal role in transforming business intelligence into a fully predictive probabilistic framework. AI will be able to radically transform or automate numerous functions within companies, from pricing, budget allocation, fraud detection and security. This chapter will present some approaches on advanced analytics and provide some examples from the financial sector on how AI is helping institutions refine small business credit scoring, understand online behavior and improve customer service. Further, we will also explore how integration with traditional business processes can work and how organizations can then take advantage of the data driven approach.

FinTech and InsurTech provide technologies that can make financial services more efficient, but also have the potential to disrupt the marketplace. They have assumed an increasingly high profile in the past five years, with investment and research in the InsurTech sector accelerating dramatically since the beginning of 2015. In this article I focus on the current position from the point of view of the non‐retail insurer, a space which InsurTech has not yet disrupted, but which it has already begun to make more efficient and innovative. I look briefly at the FinTech and InsurTech landscape, before analyzing possible insurer responses and strategies. I cover the various stages of the customer journey, from initial contact to claims payment.

Digitalization has changed the way customers interact with their banks and financial advisors. Fintech companies restructure the value chain, re‐bundle offerings and create new services that are to be presented and processed digitally – perhaps completely. Nevertheless, recent research with wealthy internet savvy investment customers in Germany shows that this attractive segment can be regarded as hybrid in respect of their demand for digital as well as personal asset management services and products. On the one hand wealthy internet savvy investors indicate a high level of satisfaction with advice and products from their traditional financial services partners. On the other hand they continue to search for better investment opportunities, thus showing significant demand for innovative digital banking/brokerage/advice products. Ultimately, research gives strong evidence for a high need for personal advice and human guidance. This is particularly valid when answering the question which (traditional vs. innovative) partner to choose as the future (exclusive or additional) bank, broker or financial advisor.This paper outlines the world of Fintech start‐up companies, presents key findings regarding the attractive and large segment of wealthy internet savvy investors and also explores how the new Fintech conquerors as well as established banks and advisors might embrace this new business environment.

Internal and external factors are driving change in the insurance market – at a pace not yet seen before. The focus of the insurance industry has shifted from managing the insurance sector itself to managing an agile cross‐linked environment. Insurers are now part of a complex ecosystem consisting of companies from various industries that either are or want to be part of the end‐to‐end customer journey. Furthermore, customer demands like ‘mobility’ require a joined customer journey of traditional insurers, FinTechs and technology manufacturers. This article provides an in‐depth insight into both the customer journey and ecosystem of insurers. It identifies common trends that require a fundamental realignment of the corporate culture and gives various examples of insurance companies that go new ways. By suggesting a 10‐point roadmap, it proposes a guideline of how insurance companies can respond to the challenges of digitalization and what actions they should take to do so.

“If I had asked people what they wanted, they would have said faster horses”, is a well‐known quote of Henry Ford, the inventor of automobile mass production. And, it is a commonly used opening phrase for tech start‐up investor presentations. Being “disruptive” and “innovative” are key ingredients for such pitch decks and are inflationary buzzwords in today’s venture scene. What’s often left out is being visionary and having the goal to create something substantial, something that generates a positive cash flow, building a lasting and leading business. Buzz has replaced reason in so many cases and cause has been replaced with reach, which is the usually the aim of businesses, rather than creating value.When we take a look under the hood of FinTech, we can try to see whether it is actually something – or perhaps just a way of categorizing start‐ups of a specific industry. And, as FinTech is very often associated with the omnipresent discussion about crypto currencies and blockchain, we’ll take a look at that too. In discussions and in keynotes the word blockchain is also used as a buzzword. Everyone else seems to hop on the same train, leaving it pretty unclear what it actually means or does – what blockchain is. Hype bears the risk of blindness for the risks and limitations there might be. It appears as if everything in IT could be replaced by blockchain these days, yet it is reasonable to believe that might not be the case at all.To start off, we will take a look at how trends have developed in digital business in recent times.

Digital money in contrast to payment schemes has not received much attention through the last years. Although BitCoin (a digital currency) is unacceptable as digital money, its appearance pointed out the versatility of the digital money idea. The business models for digital money are not as apparent as compared to payment schemes. However, the most critical path for digital money is the technical implementation that has long‐term security, e. g. the value of digital money shall not be breakable even after 40 years of evolutionary security analysis.In our research, we wanted to know, which features a user would expect from an ‘ultimate digital money’ solution. We created a set of ‘ultimate claims’ of which we were prepared to be so hard, that no existing system would pass the entire set. As an example … one claim demands that the ultimate digital money should allow the owner to create as many copies/backups as s(he) desires. Our plan was that by reducing our ultimate filter by some selected claims, we could expect to find the next best candidates to be as close to ‘ultimate’ as possible. After we created the ‘impossible to pass’ set of ultimate claims, to our surprise we found one system, that did pass all our claims without having to downsize our filter. The present article describes our ‘ultimate filter’ and presents the digital money system which we found to satisfy all our conditions.

An airport is an example of a traffic hub. In fact, a large airport like Changi Airport in Singapore is like a small city with its own hospitality, retail, logistics, transport and much more. With the growth of air traffic, alongside increasing competition and market challenges, and the need to cater for travellers’ rapidly evolving expectations, airports need to expand and enhance their appeal to customers. In addition to infrastructure investments, Changi Airport has also been investing in technology to improve the customers’ experience and enhance operations efficiency. Examples of these are data analytics and cloud solutions, robotics, autonomous vehicles, artificial intelligence, internet of things and many more. However, the deployment of new technologies alone will not be sufficient to keep Changi ahead, as IT systems and applications become more readily available and commoditised. Increasingly, the “smartness” of an airport will hinge on the strategic capability to collect data and on how intelligently the data can be exploited. To build data as a capability, Changi Airport adopts a Smart Airport Framework. SMART stands for Service, Safety & Security Management through Analytics and Resource Transformation. The article uses examples to explain the core elements of the framework. The Smart Airport Framework has helped to focus clearly on the key outcomes and ensures that Changi continues to invest in the enablers needed to support Smart outcomes. Just as Singapore is pursuing Smart Nation initiatives to improve the lives of the citizens, Changi Airport has been and will continue to pursue Smart Airport ideas to improve the experience of the customers and to enhance operational efficiency at the airport.

Due to the political geography of the Free and Hanseatic City of Hamburg, the physical limits of the area covered by the Port of Hamburg present special challenges. On the one hand, handling capacities will have to be increased substantially on an area that is virtually impossible to enlarge. On the other hand, for the future the port needs to develop in terms of quality from being merely a handling base to a hub for innovative industrial and service companies and for universities and non‐academic research facilities. An important task for Hamburg as a commercial base will also be to develop new, data‐driven business models.By launching the smartPORT initiative, Hamburg Port Authority (HPA) is creating the conditions for boosting the efficiency of the port from an economic and ecological perspective by providing intelligent, digital solutions for the flow of traffic and goods.In the future, the Port Traffic Center will integrate the traffic information from all water‑, rail‐ and road‐bound carriers and control all forms of transportation in order to guarantee optimum traffic flows in the port.Regarding the infrastructure, digital, sensor‐based solutions will make maintenance on and management of port railway facilities, bridges and locks, more efficient and cost‐effective.The following chapter outlines the status quo of traffic‐ and infrastructure‐management at the Port of Hamburg and gives an insight into the HPA’s strategic planning.

Autonomous driving is becoming a central moving force towards the change in vehicles and therefore among others the automobile and mobility business, as well as numerous other industries, which today still believe that they do not have a relationship to digitalized autonomous vehicles. The changes in different industries, which can be initiated by autonomous vehicles, are a good example of changes, which can be initiated by digitalization on market places. This article is based on the hypothesis that the development of automated and later autonomous vehicles are an unstoppable development, which will be of great use to the economy and society. Against this background, the article illustrates what is to be understood by the concepts of automated and autonomous driving, and what useful effects can be expected for a number of stakeholders. In addition to this, the article explains the technical fundamentals of automated vehicles and the changes in the traffic‐related industry. In the last part, the article elaborates the impact on the automobile and traffic industry.

In this article, an overview is given of several recent projects at Frankfurt airport that broke new ground by using predictive analytics and adopting innovative approaches to tackle commercial and hub specific operational challenges with big data analytics. The first exemplary project focused on the design and implementation of a comprehensive passenger flow management solution, which resulted in reduced waiting times leading to significantly increased customer satisfaction. Furthermore, the Smart Data Lab concept is presented, an agile approach to investigate business opportunities with predictive analytics which has been successfully applied to various topics such as recognizing trends in retail revenues.

It won’t only be the engine that changes the mobility of tomorrow. Where in the past, the focus of attention in automotive development was on the technology under the hood, today it is much more on road traffic as a whole. Traffic that is regulated by odd and even numbered days both in Paris and in Beijing. Traffic that moves at a speed of 19 kilometers per hour in London and five in Mumbai. Yet not only is the volume of traffic rising. Higher mobility costs and an increasing shortage of parking space, particularly in urban areas, have resulted in a change in values away from car ownership and towards convenient use when needed. Young people are growing ever less interested in having their own car; the option of having access to one is enough. The motto is: Mobility without restrictions. An ever larger range of mobility services is available to this target group today. Besides standard car‐sharing services, it is possible to rent bicycles in large cities, ride‐sharing services are becoming ever more appealing, and the public transportation network is increasingly being supplemented by other modes of transport. For instance, China aims to build an expected 170 new local transportation systems such as subways and suburban trains by 2030. In addition, connectivity and the mobile internet have a decisive influence on mobility. Today, people have a high affinity with the use of web‐based services. They take their smartphone with them everywhere and the next item of information is just a finger tap away. But not only information can be obtained on mobile devices: whether for search, bookings, payments, or reviews – today, a simple tap of an index finger on a smartphone display is enough to operate and manage end‐to‐end processes and functionalities.All this shows that automotive manufacturers and suppliers must rethink mobility in big cities and beyond. Bosch sees the electrification of the powertrain and the automation and connectivity of driving as the greatest challenges and transformations in the development of the mobility solutions of tomorrow. These three development paths make individual mobility resource‐conserving and appealing. What’s more, they complement each other: it makes driving more relaxing to know that you can go online to find and book not only the nearest free parking space but also the nearest free charge spot. And automated driving is even safer if vehicles warn each other of blind junctions or the tail end of a traffic jam. Through the development of the internet and mobile applications, connectivity opens up numerous new possibilities. Today, control unit data and driving profiles are recorded and transmitted to digital platforms. Terms such as fleet management and mobility portals are used in everyday language. The internet is already in cars, and cars are on the internet. New mobility services are being created as independent ecosystems on digital platforms. They bring together those offering mobility and those seeking it in a kind of marketplace, combining data from both sides to form innovative value‐added services through new mobile access options. This means that on the one hand mobility services offer new products that go beyond the car, while on the other they attract new customers – since in the future these might be all road users. The future aim is therefore not only to make the technology under the hood more efficient, convenient, and safe but to organize traffic as a whole so that it is individual, connected, and intermodal.

Nowadays, most people use smartphones or tablets for personal or commercial purposes in their daily life. Such mobile devices are electronic all‐rounders equipped with several sensors and communication interfaces, e. g., Wi‐Fi and Bluetooth. Both communication systems leak information to the surroundings during operation which can be used for monitoring customers and analyzing their behavior in an area of interest. This article shortly describes techniques for tracking mobile customer devices and identifies potentials and limitations for analyzing the digital society based on mobile tracking data. Both scientific papers and commercial projects are investigated focusing on trends for the digitalization of the retail industry. Furthermore, different start‐ups currently working in the field of retail analytics are presented and compared in terms of their unique selling point (usp) and future oriented projects. Overall, this book chapter presents a compact overview of state‐of‐the art techniques and future works for analyzing the digital society by tracking mobile customer devices.

Due to the ubiquity of smartphones, the impact of digital mobility services on individual traffic behavior within cities has increased significantly over the last years. Companies, as for example Google, and city administrations or parastatal municipal transport providers issue digital mobility services. As a result, a heterogeneous landscape of digital mobility services has emerged. While the services serve different needs, they are based on similar service modules and data sources. By analyzing 59 digital mobility services available as smartphone applications or web services, we show that an integration of service modules and data sources can increase the value of digital mobility services. Based on this analysis, we propose a concept for the architecture of an open platform for digital mobility services that enables co‐creation of value by making data sources and service modules available for developers. The concept developed for the platform architecture consists of the following elements: data sources, layers of modular services, an integration layer and solutions. We illustrated the concept by describing possible modular services and how they could be used to improve urban transportation. Our work supports practitioners from industry and public administration in identifying potential for innovative services and foster co‐creation and innovation within existing systems for urban transportation.

The paper outlines an innovative and efficient pedestrian protection system. It is mobile phone based and easy to implement. It detects and evaluates context and surroundings of vulnerable road users to reduce their number of accidents, injuries and fatalities. Involved stakeholders and potential business scenarios are identified.

This paper introduces the most favored technologies for Indoor Positioning Systems and the features of Indoor Navigation Systems for malls. These systems guide the customer through a building on his way to a desired place. On the other hand it makes possible to analyze the customer’s journey. Combined with retail business apps on the customers’ smartphones promises to generate revenue and customer loyalty. An intellectual stakeholder analysis reveals the potential benefits and issues for the future. However, the technology is not mature yet, business integration is complex and the implementation and operation of such a system has to mitigate various risks to be able to reach its return of investment.

As President at BASF, the world’s leading chemicals and specialty products company, I look after a 5.4 € bn. budget being responsible for BASF’s vast global supply chain operations, including the global customer services team, IT operations and related shared services. Having kicked off BASF’s digitalization in 2011, My team is composed of approximately 14,000 employees with operations in 140+ countries. Having joined BASF Group 10 years ago, I else led BASF’s Global Enterprise Transformation program.Prior BASF, after starting my career at Deloitte LLP, the global strategy and accountancy firm, I held several senior executive roles at leading hardware and software P&L businesses at IBM. Additionally, I serve on several boards as Chairman or as Non‐Executive Director and I am a visiting lecturer at both Massachusetts Institute of Technology and Karlsruhe Institute of Technology.

Multi‐sided platforms (MSPs) continue to disrupt long‐established industries. Therefore, there is a growing popularity to scientifically examine how and why those platforms become more and more economically important. The centerpiece to orchestrate the interaction between the involved parties is the platform governance. While past studies concentrated on describing and identifying those mechanisms, this article aims to provide more detailed knowledge of the practical implications of implementing platform mechanisms differently. With this goal in mind, the article conducted a literature review to identify important platform governance mechanisms. Building on that, a multiple case analysis was carried out examining seven successful MSPs and how they governed their platform. The results indicate that platform governance mechanisms are incorporated in different shapes and characteristics. The governance structure, for example, ranged from a very centralistic and autocratic organization to a more split approach with empowerment on the user side. Also, the accessibility varies from a high degree of openness to detailed background checks users need to pass in order to participate in the platform. Out of these findings, different tradeoffs can be derived. A high degree of openness, for example, goes along with a greater quantity of products or services, but lacks in quality and indicates a higher perceived risk. Overall this article shows the practical implications and characteristics of different platform governance characteristics and helps practitioners and scientists to learn from successful MSPs.

Digital Transformation does have an immense impact on businesses and their processes. There are a lot of companies that already started to transform their processes, organization or even their business model. Often the transformation focuses on a certain aspect that might be helpful to the company. A framework is needed that helps to identify various aspects for transformation. The Digital Navigator provides a digital capability map that can be used to identify further digital possibilities for optimization of processes or creating new business models. This article provides a short description of the Digital Navigator and an example how to use it.

In this paper, we describe the newly established Data Science Lab at the Ludwig‐Maximilians‐Universität Munich (DSL@LMU) and its particular role as an interface between academia and industry. Initially co‐funded by the Siemens AG, the DSL@DBS is open for innovative corporate partners and offers a platform for various joint activities between academia and industry. The DSL@LMU provides the following advantages to its corporate partners: Partners gain access to cutting‐edge know how in analyzing data. Furthermore, the DSL@LMU provides connections to a worldwide academic network of top researchers in the area of Data Science. Collaborating with DSL@LMU offers a strong visibility among academia and industry. To bring the most recent research into practical use, joint research projects allow to develop specific solution for the use cases of the corporate partners of the DSL@LMU. Finally, the DSL@LMU serves to connect companies to the highly talented students from the new elite master’s program “Master of Data Science” at the LMU Munich. To illustrate the collaboration between the DSL@LMU with industrial partners, we describe the results of recent research projects at DSL@LMU that were conducted in collaboration with partners from industry. These projects exemplarily show how academia and industry can team up to transform cutting‐edge research into innovative products.

One objective of Industry 4.0 is to further enhance automation and data exchange in manufacturing among the whole value chain in order to provide new services and to decrease the use of resources. Industry 4.0 relies on communicating systems aiming at decentralized decisions for manufacturing requested products and services comprising humans and machines. The availability of systems and their data, e. g., manufacturing or monitoring data, online is an enabler of new applications and services including diagnosis. In this article we focus on the diagnosis aspect and provide insights into a methodology that allows for bringing in diagnosis of interconnected systems as a service. The methodology is based on system models and monitoring observations and thus is highly adaptable to changes in the system. In addition, to the methodology we give examples from applications of diagnosis for wind turbines and other engineered systems.

The era of digitalization, that is already present, will significantly influence and change the today’s enterprise in various ways. The way humans interact with their environment, the services that customers expect, the increasing speed of new competitive products and technologies that will emerge, or the changing product portfolio a customer perceives as comfortable are just some examples that illustrate the influence of digitalization. Customers will expect connected services combined with the existing tangible products to increase the perceived convenience. The expectations from the environment towards existing businesses will continuously change faster than ever before that forces companies for rapid actions, continuous adaptations and fast new product releases to remain competitive. The fundamental consequence is, that the business environment, the service industries in particular, must strive towards intelligent and autonomous enterprises in order to fulfill these requirements. New technologies, such as artificial intelligence, robotics, quantum computing or autonomous agents, will be the distinguishing features to survive in the future. A business that is most affected by this disruptive change is the automotive industry. This preface will illustrate the current situation for the automotive industry, the business areas that are most affected by digitalization, the new technologies that are required, the new orientation of the traditional business units and the benefits that will result from this disruptive change.

Currently, we experience a growing number of highly sophisticated digital services in virtually every domain of our lives. Tightly coupled to this observation is the appearance of Big Data and consequently the need for Data Science. When trying to transform data into value, communication is key. However, communication can easily get ambiguous and may threat success by misunderstandings. Thus, this article reviews the (communication) model of Data Science and maps the ten V’s of Big Data to this model. Finally, we propose four top skills that each and every data science group needs to have to operate successfully.

Our concepts of value are being challenged by new social/technological models like the share economy & the Bitcoin (Blockchain technology). This, however, is just the tip of the iceberg: There are bigger things to come that will shake up the very core of our value system: Our concept of money.One of these models – the direct market – shall be the topic of this article. It’s based on a combination of different intelligent algorithms and the basic premise that like‐minded people think alike. It’s a heuristic approach to the way we distribute goods in our society.

Nowadays, IT is an important component of a company’s value chain. However, it has to face the latent suspicion of being ‘too expensive anyway’ as the management is constantly demanding cost savings. Furthermore, the modern role of IT also requires the implementation of innovative tasks to maintain sustainability for companies. From this, one can derive IT’s task to translate its services and its technical and legal framework conditions into business language. The purpose of this article is to show the broad scope of IT in the value chain of today’s companies. With this, we are moving away from a purely financial perspective and explicitly include organizational and process‐related improvements. By the example of the relatively advanced implementation of IT strategy at Vattenfall, VOICE shows with a flagship project the versatility of IT’s value contribution.

Modern industrial settings require great flexibility of systems. For example, in automated factories, smart cities or smart grids, systems are exposed to highly variable and dynamic environments: Not all events can be modeled at design time, system components may fail to operate as desired at runtime, and stakeholder requirements may change at high frequency. In order to handle these challenges, systems have to expose highly flexible behavior. Due to the complexity of application domains, deterministic specification and validation of system behavior and quality is no more feasible. Instead, new approaches for building flexible systems yield probabilistic behavior at runtime. While this defeats the purpose of design time testing and quality assessment, it is indeed possible to shift the standard design time engineering activities towards runtime. This enables monitoring and validating system behavior at runtime, incorporating information not available a priori and using it to keep the dynamic system under control at runtime.

In the last 20 years, the amount of data in existence has risen 100‐fold. However, this data surge is not unique in history – one similarly rapid increase has occurred before, between the years 1450 and 1500. The volume of data in the world doubled during this period thanks to the advent of Gutenberg’s printing press, which meant a revolution in society at the time. Today, the worldwide data volume is doubling every 18 months. However, what is often not considered in this context is this: while in the year 2000 almost three‐quarters of all data were still in analog form, for example on paper, less than 15 years later this figure is less than 1%. A previously analog world has gone digital, which changes everything.Although data is becoming ever more important in our lives, it has not yet been possible to establish a widespread understanding of the change our society is undergoing. If you cannot yet imagine the actual meaning behind terms such as “big data” or the “Internet of Things,” you are not alone.What accounts for the new quality of big data? There is no single, universally accepted definition of big data. But there is an approach cited most often in journalism and science when we talk about the topic, and which will certainly help you get to grips with it.

In March 2015, Fraport AG in Frankfurt carried out an experimental Smart Data Lab (SDL). For the first time, experts from a variety of departments worked together in a laboratory situation. They defined four concrete problems to be solved with analytics, using a huge collection of data from different sources within the company.The effective communication of problems and results helped promote the acceptance of the lab’s data based recommendations. Analytics and the use of huge amounts of real‐time data which were integrated into the IT systems for the first time, allowed for the correction of some established decision rules. Most of all, not only the problems defined above were solved and the business processes behind were improved, but also several new data‐based business ideas with cross‐departmental impact were generated.Results from the Smart Data Lab were widely noticed and accepted by Fraport’s executive board, which in turn has decided to make SDL a permanent institution: The second round of Smart Data Lab was completed in April 2016.

Europe’s 5.5 million non‐profit organizations (NPOs) with their 250 million members and volunteers are an integral part of European society. They include local clubs (e. g. sports, social, environmental), governing bodies (national/regional associations) and professional associations as well as educational institutions.Radical societal and technological change is putting strong pressure on them to modernize and digitize. At the same time they suffer from an innovation dilemma.We argue that the Software as a Service (SaaS) model offers them the only path to overcome these challenges. It will transform the pressure to digitize from a challenge into an opportunity and unfold both a strong business opportunity and an enormous social return for the society.

By Big Data Analytics we understand new technologies and methods that go beyond how data and analytics was previously handled. On the data side, extremely large data sets can be stored and processed, even real‐time, and at reasonable cost. On the analytical side, methods are no longer limited to hard‐coded (business) rules or statistics, but leverage Artificial Intelligence (AI) and particularly Machine Learning (ML). In this paper we argue that Big Data’s quickest business wins and first tangible impact is in the domain of customer/consumer analytics, summarized as Digital Consumer Journey Analytics. Such journeys are constructed from people’s movement and navigational patterns in both the virtual and physical world; while individual data points are at first not very expressive, the picture created by continuous collection of ubiquitous data and their history, allows to unveil almost any identity profile. Under this increasingly digital environment, staying in the relevant set of consumers is of utmost importance for businesses. Big Data Analytics can support by, e. g., driving product and service design and customer experience improvements. However, there are increasing limitations to the possibilities of Big Data Analytics in consumer businesses, in particular Data Privacy and Data Ethics. Businesses have to deal with a growing appetite of legislation and prudential regulation, e. g., the EU GDPR. The challenge is to make data‐driven offerings trusted in the digital age. In this paper we will illustrate the journey in an insurance business to grow successful Big Data Use Cases in Consumer Analytics and discuss Privacy by Design (PbD) and Private Enhancing Technologies (PET) as means to build trusted data‐driven products and services.

The great variety and intrinsic complexity of current Big Data technologies hampers the development of analytic processes for large data sets in domains where their business experts are not required to have specialized knowledge in computing, such as data mining, parallel computing, machine learning or software development. New approaches are therefore necessary to simplify, promote and open to everyone the establishment of these technologies in those sectors like health, economy, market analysis, etc., where such a data processing is highly demanded but it still needs to be outsourced. In this context, workflows are conceptually closer to the business expert, and a well‐known mechanism to represent a sequence of domain‐specific activities that enable the automation of data processes, independently of the infrastructure requirements. In this chapter, we discuss the current challenges to be faced in the widespread adoption of workflow‐based Big Data processes. Further, existing workflow management tools are analyzed, as well as the new trends for the development of custom solutions in multiple domains.

Tomorrow, traffic will be safer, more sustainable and more efficient. Autonomous vehicles will move around without direct driver input to transport people and goods, on demand, from door to door using the most efficient routes. They will interact with other transport systems, offering seamless end‐to‐end journey connectivity and producing convenient and affordable mobility to everybody.Tomorrow, healthcare will be more reliable, more individual and more preventive. The access to a massive amount of digitized data combined with analytics and artificial intelligence will enable researchers as well as physicians to develop more specific measures and more personalized treatments – enhancing medical care on a large scale.Tomorrow, manufacturing will be smarter, more agile and more resilient. Connectivity and the internet of things will allow companies to react faster and more directly to customers’ needs, producing and delivering better products at lower costs – creating better value for businesses and consumers all over the world.Tomorrow, work will be more flexible, more mobile and more productive. New technologies will enable virtual teams to collaborate without boundaries and to seamlessly share knowledge and ideas – enhancing freedom of thinking and creativity.Similar changes will soon occur in many other areas and profoundly affect our lives. Enabling that transformation are intelligent systems that help us gain insight and take action from large amounts of data – based on the power of cloud computing (see Fig. 61.1).

Marc Andreessen famously said that software was “eating the world,” and today, this rings particularly true, as many companies, if not most, are transforming into software‐oriented companies. All major industries are going digital and are shifting their emphasis from hardware to software, from product to service, and from process to data and analytics. However, today’s digitization initiatives face a number of problems. Complex IT landscapes have been built during the last 10 to 20 years, and although the architectures are in place and fulfill their current purposes they result in data silos from which data cannot easily be accessed, combined, or used for new (digital) initiatives. This chapter, supported by several real‐world examples, describes how data virtualization provides access to complete, company‐wide information across multiple data silos in an economically and technologically feasible way. Data virtualization helps to deliver quality data on time, while also offering enterprise features like security and auditing. Moreover, data virtualization enables companies to combine the best aspects of different technologies to build a solid, flexible, and maintainable data architecture for today and the future.

Cloud giants like Google, Twitter or Netflix have released their core cloud technologies open source. The cloud pioneers’ knowledge how to plan, build and run cloud applications are now accessible for free. Everyone can develop applications as scalable, as efficient and as resilient as Google’s. This is called GIFEE (Google Infrastructure for Everyone Else), or more descriptively Cloud Native Stack. This stack is composed of cloud technologies open‐sourced by cloud giants like Kubernetes from Google, Mesos from Twitter and the Netflix OSS. In this paper we describe the anatomy of the cloud native stack, map available technologies onto it and help decide when to move towards cloud native applications, gauging luring benefits and looming risks.

Cloud computing is one of the latest trends in information technology enabling the creation, organization and distribution of media content in a networked world. Media assets and media processing are no longer handled on local infrastructure, but can be outsourced and operated remotely and geographically distributed in public, private or hybrid clouds. While cloud‐based applications such as e‐mail communication, storage and streaming services are already established in everyday life, cloud computing is now gaining increasing relevance in the broadcast and media industry despite its specific requirements and challenges.The article analyses aspects of cloud computing from different angels while paying specific attention to media and broadcast; from an IT and infrastructure perspective, from a user’s perspective comprising creative and technical media professionals, from the perspective of media distribution to end users, as well as from a legal perspective with respect to security and privacy.Based on that the authors come to the conclusion that major challenges for applying cloud technologies in media productions are already being addressed, amongst them activities by providers who react on legal requirements (especially for the European and German market), or technical initiatives that enable low‐latency and synchronous audio and video transport across large IT networks. Major challenges remain the general availability of high speed data networks all over the country, a certain risk of a vendor lock‐in as well as changes within company organizations and personal skills of employees. Users on the other hand are primarily interested in a service rather than the underlying technology. So they are often already using clouds – knowingly or unknowingly – for a long time, and are therefore expected to adopt such services quickly. For on‐demand distribution cloud computing can be regarded as established as it is already used at a large scale.In summary, cloud computing is expected to be ready for an evolutionary introduction, e. g. via “production islands” in traditional houses, for green‐field deployments of media plants in a larger scale, especially for certain production workflows, e. g. file‐based production. Nevertheless, technologies for more complex low‐latency live processing are also being developed and are expected to enter the market over the next years.

The most important and greatest global challenge in cloud computing is to be able to fulfill data privacy and compliance demands and ensure IT security. In its 2012 published study “On the Security of Cloud Storage Services”, the Fraunhofer Institute for Secure Information Technology (SIT) mentions three potential security vulnerabilities it detected: Access by unauthorized third parties during data transfer, interception of the database itself, and possible abuse through the actual cloud service provider. Security experts consider the former two loopholes as closed, if 1.correct SSL/TLS encryption protects the data during transfer, and2.cryptographic procedures secure the stored data.Present paper elucidates how basic Sealed Cloud technology covers the third security risk, in which the service provider has access to clear text data in processing servers.

I am very happy and thankful to live in today’s world – with all the technological innovation and the transformation of society, factories etc. The rapidly changing technological environment can be compared to the generational transition: from my birth until the age of five, there was barely any technical revolution or rather not a visible one. At least it was certainly not comparable to the revolution of mobile development during the first five years of the life of my daughter from 2003 until 2008.If we want to predict the business world of tomorrow, we have to observe the purchasing behavior of our children: they walk into a store, have a look at the products, compare the prices on the spot by using their smartphones and order the product online if the price is more favorable. I have not taught my children to do so. However I can see them applying this particular behavior almost daily. It is exactly how we sometimes save money. The same applies to the communication of the future. Today our children ask us why we are using old‐fashioned mediums like e‐mails in our company; messengers such as WhatsApp or the likes seem to be far less complicated …!Not only the purchasing behavior of the next generation is changing, the whole society is. Therefore especially retailers must prepare themselves. New technologies are changing our lifestyle. The basis for this change is formed by the internet of things (or in abbreviated form “IoT”).

Innovation is at the heart of today’s ever changing IT infrastructures. Core technologies of the Internet Age periodically are refined through sizeable innovations. Currently, two of these core technologies are undergoing a major reshape, with Cloud Computing being extended to cover computing nodes that do not reside within carefully designed data centers, and mobile networks which are currently moving towards their fifth generation termed “5G”. This chapter describes these advancements by introducing the Fog Computing paradigm and its very specific requirements as well as potential 5G architectures that are able to handle these requirements.

Modern vehicles contain several sensors for recognizing their direct environment. Their computational capabilities get enhanced continuously by including more calculation power, more memory storage capacity, and better communication technologies into the vehicles. Especially electric vehicles can offer those new technologies and are able to share data concerning the current state of charge of their batteries and their current positions. Such data can be used to coordinate and support electric vehicles during their search for unoccupied charging points. Therefore, a generic model will be described to handle those data in a uniform manner. Based on this standardized data representation, a genetic algorithm will be applied to optimize the coordination between electric vehicles and charging points.

Communication has changed dramatically in recent years due to the dawn of new ICT technologies and the need of people to communicate in real time. This paper will introduce a little communication theory as a background, compare current technologies and finally introduce a smart, efficient and secure communication platform. It will furthermore address further improvements to the new platform.

Urban growth in developing and developed countries is changing our lives, and causing explosive growth of data generation in an interconnected world. Moreover, billions of new relationships between all parts of our environment will be created. Policy makers will face high complexity and will have to handle these challenges under fast changing and highly dynamic circumstances. Nowadays, a city can be represented as a “living body” with networks as the nervous system, administrative authorities as the brain, transportation systems as the circulatory system, and further stakeholders as organs. Socio‐technical aspects of a Smart City should be cultivated and treated in the most efficient way for a better city development. Rationalization in all areas of urban life is a main driver of smartness. Investigation of the quality of life in cities is a kind of rational consideration of prevalent living conditions. Relationships between quality of life, residents’ needs and available services are important for resident‐centered design of a Smart City. City On‐Demand is a new approach that is characterized by reliable and user friendly Smart Services that probably do not exist before request and occur in real‐time upon receipt of the request. Citizens’ lives will be improved through an efficient use of customized services. For deeper understanding, the authors describe the status quo of leading Smart Cities – Barcelona, Amsterdam Hamburg and New York. This article introduces the most important definitions related to a Smart City, explains a new approach of ‘City as a Service’ and ‘City On‐Demand’ concepts and provides an outlook 2025 for autonomously driving cars, e‐health and citizen services.

The Internet of Things is based on ecosystems of networked devices, referred to as smart objects, effectively enabling the blending of physical things with digital artifacts in an unprecedented way. In principle, endless automations may be introduced in the context of daily life exploring the numerous opportunities offered by the deployment and utilization of such smart objects. However, in practice the demands for such automations are highly personalized and fluid effectively minimizing the chances for building commercially successful general‐purpose applications. In this context our vision is to empower end‐users with the appropriate tools enabling to easily and quickly craft, test and modify the automations they need. In this chapter we initially discuss a few possible future scenarios for automations relying on smart objects. Then, we elaborate on the visual tools we currently develop, followed by a brief case study using the tools. Finally, the potential of publishing such automations in typical digital markets is considered.

When people explain what “Digital” really means, they typically mention large global brands like Facebook, Amazon, Google or Twitter as the example. Certainly, these assets combine a lot of market power, customers, and innovation, and their sheer size is already a competitive advantage. Following these leading firms in their respective categories, many other companies have joined their ecosystems and benefit from the associated value. However, like in the traditional non‐digital world, next to global brands the world provides a lot of space for local brands, niche players and startups.New digital business models are making use of platforms that provide value to diverse participants, and this applies globally as well as locally. Global trends, such as the partial convergence of the automotive, car rental, transport and tourism industries into what we now call simply “mobility”, are affecting local markets and national systems. The way how we get from A to B is changing, based on a combination of factors that are all contributing: generation Y being less keen to own a car, traditional traffic systems being overloaded or over‐polluted, car sharing business models being well accepted, train and flight operators attempting to offer better end‐to‐end solutions, and new taxi services being based on convenient booking platforms.

Digitalization changes customer behavior, consumer needs, business models, competition, and markets or at least will have a very high impact on all sectors. But digitalization offers as well opportunities for optimized processes, new digital products and services, and new data‐driven business models.Considering the energy sector the existing business models are not sustainable any more. This industry stands at the tipping point of multiple disruptive changes. The increased ratio of renewable and decentral energy generation leads to an increased volatile, distributed (Distributed energy consists of a range of smaller‐scale and modular devices in‐cluding storage devices designed to provide energy in locations close to consumers [1].) energy production. The time of energy as a commodity is over. Customers want to be engaged and expect providers to care about their individual values and needs. New market players intrude the energy market, and the Information and Communication Technologies (ICT), the Internet of Things (IoT) and digital technologies create the basis for these new players to get into the energy market and/or to network together cross border. ICT/IoT will play a central role in the transition of the energy sector.

Digital marketplaces are disrupting the established traditional marketplace models and transforming the economy and societies in India, by providing a platform for innovations. This disruption impacts drastically the way Indians’ shop, bank, work, book their holidays, and even hailing a cab. India’s unique demographic dividend with 50% of the 1.2 billion population less than 25 years, rising middle class income, and the mobile and internet growth are fueling the highest e‐commerce growth rate in the world. This paper analyses the revolutionary growth of digital marketplace in India based on the four key pillars of digital marketplace, namely payment landscape, logistics, mobile/internet infrastructure and business and revenue model, and illustrates how these pillars are undergoing innovations and transformations. The paper also analyzes the key challenges to digital marketplace growth and illustrates how various organizations have made use of the unique opportunities provided by India, with appropriate examples. Entry of major players such as Alibaba and Rakuten are expected to make the online marketplace more competitive and propel India to enter into the third wave of Digital Marketplace 3.0 – the golden era of Digital Marketplace in India. The innovative practices, processes and models adopted by the various firms analyzed in this paper could serve as a template for digital marketplace evolution in emerging markets.

In the summer of 2015, the president of the Austrian Federal Council has initiated a parliamentary initiative on “Digital Change and Politics”, in order to systematically investigate the political and legislative changes considered to be necessary for an optimal use of the Digital Revolution. Based on a comprehensive public online consultation process, the resulting Green Book discusses the impact of digitization to the working world, quality of life, society, politics and especially the future form of democracy. In this chapter, we reflect outcomes from and experiences with this deliberative process, focusing on economic policy, labour law and the development of future digital marketplaces. While our original material mainly reflects an Austrian point of view, the resulting conclusions are valid on a rather general level, and allow interesting insight into the fundamental challenges of digitization from the perspectives of a huge variety of related stakeholders. At the same time, we discuss opportunities and limitations of the process itself, and thus deliver an authentic description of first steps towards an Internet‐based future high‐speed democracy which may lead to rather disruptive forms of political debates and decision‐making processes.

The fibre‐to‐the‐home, high‐speed broadband network in New Zealand known as the Ultra‐Fast Broadband (UFB) network is already changing the landscape of the telecommunications market in the country. The future New Zealand broadband ecosystem is being shaped by decisions that impact both the structure of the market and the supply‐side of the ecosystem. UFB embodies the infrastructure of New Zealand’s digital platform. It is not only a high‐speed broadband network; it is also conceived as an open‐access platform whereby any service provider can and will provide services. Opting for an open‐access, high speed broadband platform New Zealand is effectively instigating major changes in the structure of the market, which in turn are expected to deliver profound changes in the range of services and the way they are delivered to consumers. This chapter presents the New Zealand case as an example of the scope and impact of digital disruption with major changes in infrastructure ownership and market structure and competition encouraged by UFB’s open‐access architecture and regulation. The main argument is that both the technical characteristics of the broadband network and major policy and regulatory decisions must necessarily shape the potential for digital markets creation, transformation, and growth.

The three of us have accumulated lots of experience in IT, Cyber Security and in protecting the critical infrastructure of the State of Israel, which is one of the world’s most attacked states by cyber criminals or by certain states.In 2012, we founded our Cyber Security consulting firm called D.A.T, offering high‐level technological surveys of software and hardware systems to check their immunity against remote cyber‐attacks.Our objective was to better understand the challenges and threats of the interconnectivity on the digital economy through working in different sectors: Telecommunications, Finance and Insurance, Industry (production/assembly lines) and Energy.Four and a half years later, after we carried out complex projects in various sectors, I can say that the revolution of the digital world and the digitized economy, which is accelerating every day, is an enormous economic and social opportunity, but it is also folding inside dramatic and even strategic challenges.Based on the knowledge, know‐how and the insights we gained, we teamed with Volkswagen in September 2016. Together we founded a new company to develop Cyber Security systems and to provide Cyber Security services for Internet‐connected cars and self‐driving vehicles. The new company, CyMotive Technologies Ltd., will be 40 % owned by the VW group and 60 % by me and my two colleagues.We identified the following main insights of how to secure the opportunities of the digitized economy.

Personal health data is a coveted resource for a variety of interested parties. One of these is agents operating in illegal markets, comparable to the black markets on which stolen credit card data and other unlawfully obtained information are sold. Since the safety of personal health data is not only dependent on the quality of safety measures adopted by health care entities but also on the motivation and resources of potential attackers, the question of the value of personal health data on the black market is a highly critical one and not an easy one to answer. Illegal actors can extract profits from patient data in a variety of ways, the best documented of which are direct sale and extortion of ransom. Prices attained in these transactions can help to estimate the financial value of patient data on the black market in the US – where instances of health care data breaches have been most frequent and well documented – and in Germany.

The term “Cyber Sovereignty” has been tossed around panels (See for example the International Cybersecurity Conference 2016 in Munich, Panel: Digital Sovereignty – the Right Concept for Securing Europe’s Industry?), newspaper articles, and blogs for quite some time. However, a practical solution to reach a state of sovereignty in the field of implementing fitting and trustworthy cyber tools and products in one’s company is still missing. We have come to the conclusion that the idea of cyber sovereignty – undoubtedly charming and worthwhile – cannot be pursued with the usual military and national approach but must be addressed using a community of users and experts. Combining the concepts of digital user communities and cyber sovereignty led several German DAX companies to found the Deutsche Cyber Sicherheitsorganisation (German Cyber Security Organization) – DCSO in 2015 where the authors implemented the idea of a “Product Evaluation and Integration” Service (PEI). This PEI Service enables the founding members and DCSO customers to execute cyber sovereignty through testing, evaluating, and prototyping state of the art and future cyber security products, services, and vendors.This article will elaborate on the main idea behind the foundation of the DCSO and go into detail of how valuable the PEI service has become for the security measures of German DAX companies. It will give concrete examples of the implementation and encourages similar initiatives for other problems like cyber security.

Nowadays the daily live relies on digital identities, mainly in the context of the Internet. These identities are used for opening a bank account, for online shopping, to access company resources in the business environment and in many more situations. Therefor it is necessary to have strong identification and authentication of the identities owner and to create legally binding electronic signatures. Today password‐ and TAN‐based authentication is still the most prevalent form of authentication. But with new requirements emerging from new scenarios like the Internet‐of‐Things (IoT) password‐based authentication mechanisms become outdated. A new approach for identification, authentication and electronic signature creation is the use of the user’s smartphone, equipped with cryptographic material in combination with protocol‐based authentication instead of transmission of secrets. Furthermore this setup enables the use of one system in different scenarios and ECO‐Systems. Interoperability and federation with existing authentication and identification systems is the key for a wide spread acceptance by service providers. From the users point of view the use of its own smartphone is more comfortable than handling passwords and usernames. That leads to a high level of acceptance by potential users. The idea is to provide an adaptive multifactor authentication that can be used flexibly in many different use cases from business or IoT‐platforms to the use in the urban environment of smart‐cities. For an easy integration and a high degree of usability different entry points for authentication and electronic signature creation are used. As example for a modern and smart identification, authentication and electronic signature system the XignQR system [1] will be described in the following chapters.

As awareness for Internet attacks gains traction, multiple proposals for defences are put forth. The proposals include, among others, secure access and communication to services, such as web, email and instant messaging. Do these efforts suffice to guarantee a secure Internet for clients and services? To answer this question we review the state of the Internet infrastructure security and show that it is still largely vulnerable to attacks. Although defences exist, they mostly are deployed incorrectly or not deployed at all, hence not offering security benefits. We report on our studies of vulnerabilities and obstacles towards adoption of security mechanisms. We show how insecurity of Internet infrastructure foils security of defences for applications and provide example attacks against common systems.