German business have evolved and become increasingly versatile in accepting digitalization. The Germans may be cautious when using the internet, but the government is implementing rules to turn the internet into an entrepreneur-friendly hub.
In Germany there are many examples of digitalization: e-learning, e-health, e-commerce, games and applications, machine-to-machine process, marketing, infrastructure, social security, smart metering, etc. The digital economy has boosted many fields and professions.
Key digital trends in the Germany industry
- The internet connects and influences business models, healthcare, automotive, smart cities, and logistics.
- Mobile usage changes the communication aspect of businesses and personal necessities of the Germans.
- Cloud and big data save money as it increases efficiency.
- Digital trends penetrate the security and privacy of the masses. Hacker attacks and data infringement should be considered when pursuing a business in the line of digital media.
Surprisingly, Germany has a smaller number of broadband users than expected. The country’s broadband speed is lesser than 50 megabytes per second (mbps) and has a few dominating players on a deregulated market in terms of providing broadband connections. Its biggest provider is Telekom. The number of Telekom’s broadband users is 42%, followed by Vodafone with 18% registered users, then by Freenet with 13%, and 10% by Unitymedia.
Anxieties in digitalization
The rise of Germany’s digital economy is still hindered by anxious internet users. Some users hesitate in trusting digital platforms due to their initial wariness with internet privacy.
- Germans are averse to using the internet when it comes to payment methods. Due to this, digital solutions like PayPal remain to be a preferred commodity.
- Online privacy is a major concern for Germans. 45% of the Germans admit that they fear the illegal use of personal data and account when dealing with online transactions or registering on websites.
- Germans want certificates to validate the trustworthiness of an online site or internet paraphernalia.
Influence of the German mindset on business
- Germans focus on one supplier only, but they always have options for solutions. They carefully assess the capabilities of competitors.
- Germans want assurance and clarification for their privacy and safety, so it’s advisable to prepare certificates indicating authenticity and legal authority.
- In the market, Germans prefer long term establishments and long processes.
How big data in Germany can give opportunities to people
Germany, at the moment, is a leading country in the use of big data technology. According to market research, the use of big data technology in Germany is mainly because of the Internet, e-commerce, advertising sectors, and other sectors in the economy. This is the reason why Germany is quite capable of providing opportunities to companies from other countries. They can either provide services for big data software development or help out in marketing applications.
What is big data?
Big data is when data volume grows to an extent where it becomes one the one hand hard to manage, but on the other hand can be a useful source of information, when looking at cross-linkages and correlations. Big data consists of data sets in sizes which exceed the capacity of normal software tools.
Many companies and organisations collect huge amounts of data over time which they do not use. Fortunately though, they are able to utilize big data for bigger opportunities in business.
Trade and macro-economic statistics for Germany
Big data solutions/services market
- Big data technology is still in its infancy stage owing to the fact that only one third of German companies use it. Nevertheless, the big data market is expected to grow significantly in the years to come showing the potential of Germany’s asset. Germany is currently the forerunner of this new advancement and it won’t be long before it becomes an interesting target soon by many.
- The average spending on big data per company is highest in Germany, and it is only expected to increase. Thus, it is imperative that one should always research about information on the big data market before taking it on to avoid unnecessary costs.
- Today, big data in Germany is mainly driven by the Internet, e-commerce, and advertising sectors. These sectors are on the verge of adopting innovative ways in harnessing big data. For those who are interested, it’s highly recommended to do some research and think of innovative ideas for big data services and solutions.
- A large data volume will increase in IT, telecom, and media industries. These sectors will be needing services and solutions that can manage the big data gathered.
- German companies, big AND small, have different expectations. It is best that the services and solutions offered to them will be in line with achieving their outcomes and goals.
- Visualisation of big data offers good chances in clients opting for solutions and services as when they see a representation of the chances of outcome happening, it will prove to be very promising for their benefit.
Big data outsourcing market
- Outsourcing is becoming more common these days and is only growing. When big data demand grows, outsourcing for these data will grow as well.
Salaries
- Salary levels are considerably lower in developing countries and this could be a motivating force as most of big data spending is allocated to salaries.
Market trends
- Social Market Drivers: The lack of skills act as a barrier to innovative ways in cultivating big data technology. More people with the necessary skills should be recruited and employees should be continuously assessed and trained.
- Technology Market Drivers: Cloud computing infrastructures has made it convenient for people to utilize big data technology due to its quick integration in systems. Technology is rapidly changing and the landscape changes faster than expected these days. This rapid change is accompanied with more access and availability to data and makes analysis easier.
- Economic Market Drivers: German companies are eyeing big data technology to be a new source for developmental growth. Every day, huge amounts of data are left unused and this scenario opens opportunities for services and solutions that specialize in big technology. German companies are also looking to reduce costs and big data technology can help these companies out with the services and solutions that cater to big data. Cost reduction due to reduced salaries is made possible through outsourcing.
Market channels and segments
- Subcontracting German IT Companies: Majority of German big data providers use subcontractors to supply their solutions and services.
- Direct Partnership with an End User of Big Data Solutions and Services: Selling big data solutions and services directly to users is good although it is recommended to sell directly to those who would find immediate use for it such as IT users for their data.
- Intermediary: These are the people who help you out in scouting for potential subcontracters and buyers.
Trade associations and databases
Trade associations, trade events, and databases can act as good sources for potential customers in Germany. Here are a few examples:
This is a significant breakthrough that allows more chances for service and solution providers to earn a living. Big data technology, though still a baby according to market research, is gradually getting noticed and it won’t be long before Germany will pride itself of another achievement added to their long list.
Specifications required in handling big data
- Volume: Solutions and services that cater big data should be able to deal with various amounts of it not only in terms that the capacity can contain but should also be able to identify which data is of significant value. In this regard, the solutions and services of a company should be able to filter and analyse data for whichever purpose it may serve.
- Velocity: Data comes from various sources and the amount of how much comes in could be staggering. This is the reason why solutions and services that cater big data should be able to handle the high speed of which it comes in and should also be able to analyse and interpret these data quickly.
- Variety: Data should also be managed in a way that from various sources it can be merged into one cohesive data for analysis and interpretation. Thus, it is imperative that the services and solutions that cater these bits of information should be managed efficiently and effectively.
- Veracity: Veracity refers to how reliable a data can be. Some data can be quite uncertain like sentiment and truthfulness in humans, weather conditions, economic factors, and the future. Therefore, services and solutions should be seen to it that it can reduce the veracity of the data gathered.
- Experience with Cloud Computing Infrastructures: The cloud enables companies to deal with big data processing efficiently. Because it integrates data quickly, services and solutions that are able to deal with data swiftly can be very appealing to big companies.
- Data Security: There are times when big data needs to be transferred from one party to another and it is because of this that German companies are concerned with security in fear of attacks during storage and transfer. Security measures should be put up at all costs and security standards should be imposed accordingly.
Legal requirements in handling big data
Here are some legal requirements when using services and solutions that cater to big data. Copyrights for computer programmes should be protected and so it is imperative that one refers to the EU legislation on the copyright of computer programmes. Germany along with other member states of Europe value privacy very much as well. The EU legislation on personal data protection in electronic communications has made it possible for individuals to be protected during the processing and distribution of personal data through electronic communications.
Other requirements in handling big data
If you want to be a part of the big data market, there are some standards and certifications that you need to acquire in order to do so.
Quality requirements
- ISO 9001 – one of the best known quality standards among German companies.
- Capability Maturity Model Integration (CMMI) – though less popular than ISO 9001, it might still help with gaining trust from clients on your capabilities.
- Certified Analytics Professional (CAP) – this certification might come in handy someday when it gains further credibility among clients.
Security requirements
- ISO 27002 – highly recommended for big data service/solution providers.
Industry-specific requirements
- When providing big data services and solutions for a specific industry, always take time to find out which certifications and standards are needed or recommended for the industry and subsequently apply for it.
