Enterprise Strategy Review: T-Systems cuts its losses

T-Systems is the last of the big five telco-led global service providers to feature in our Enterprise Strategy Review series; and the first to question the global ICT services model.
Table of Contents
Executive summary

In a nutshell
Ovum view
Market position
Strategic objectives
Realigned T-Systems Enterprise to meet the requirements of multinational corporations, not SMEs
Changed the commercials around contracts with MNCs
Redefined ICT as end-to-end IP
Strategic roadmap
Business focus
Financial highlights
3Q08 results show struggle with legacy revenue decline
Realigning T-Systems’ business revenues
T-Systems’ financials don’t show any synergies between its traditional IT management services and telecoms
Results and reorganisations aren’t helping to reposition T-Systems as a new kind of network ICT service provider
Repeated reorganisation at T-Systems disguises its differentiation from other service providers.
Services and technologies
Service delivery
T-Systems reorganises the service desk
Bringing things together – unifying UC
SAP is the ace in the pack
Commercial performance
Customer-service strategy
Partnership strategy
T-Systems reinforces managed services and network partnerships
Contracts
Strategic evaluation
T-Systems enters phase 3
New management emphasises SI opportunity

List of Tables

Table 1:T-Systems’ divisional revenues by line of business
Table 2:Range of IT applications and services
Table 3:Global network metrics
Table 4:T-Systems’ SAP profile

List of Figures

Figure 1:T-Systems: nine-month revenues 2008 versus 2007
Figure 2:T-Systems’ services profile in recent contracts
Figure 3:Reshaping the SAP value pyramid
Figure 4:Users place new requirements on telecoms service providers
Figure 5:Ovum user survey
Figure 6:T-Systems: contract distribution by value and service type
Figure 7:T-Systems’ strategic highlights

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