Welcome to the Digital Future

Digitalization is the dominant megatrend of our time. It offers new opportunities and challenges at an ever-faster pace, in personal life, in industry, and in the public sector. G+D always has its eye on upcoming developments to create confidence in the digital future with its security solutions.

The digital era started with a bang in 2002. This was the point at which the possibilities of digital storage exceeded those of its analog counterpart. “From the beginning of humanity up to this year, around 5 exabytes of data had been created,” commented long-standing Google CEO Eric Schmidt. That is five billion gigabytes, which equates to around 140 times all the information that is stored in the US Library of Congress. “Today people and machines produce this volume of data in just two days.”
And it is not only the deluge of information that is increasing; the possibilities for processing it are also growing. In 1942, the US Army commissioned the first completely electronic universal computer. Four years later it was finished. It was named ENIAC (Electronic Numerical Integrator and Computer), occupied 170 square meters of floor space, and weighed 27 metric tons. Its 17,468 electron tubes, 7,200 diodes, 1,500 relays, and 70,000 resistors took 0.2 milliseconds to spit out the answer to a simple addition question. By way of comparison, the processor installed in the latest iPhone has a surface area of just 125 square millimeters and its 3.3 billion transistors compute at around 23 million times the speed of the first device.

New Technology Paves the Way for New Business Models and Services

What else happened between 1942 and today: the pocket calculator was invented. The PC brought computers to households. CDs and DVDs replaced floppy disks and cassettes as storage media. And they in turn were replaced by flash and cloud storage. Magnetic resonance imaging revolutionized medicine, computer animation transformed the film industry. Navigation devices made street maps in glove compartments redundant. And the internet, networking almost every computer, became a seemingly infinite source of information and a data highway transporting e-mails as well as radio, TV, and telephony. At the same time, it enabled completely new companies to emerge, such as Google, Amazon, eBay, and
Facebook, along with new services like online banking and cloud computing. No sector is immune to digitalization. Companies that fail to adapt their business model lose out. Even global market leaders like Kodak have experienced this: competitors far outpaced the former pioneer in photography since they focused on digital photography at an early stage. It is a similar story for major record labels: Apple suddenly launched an unexpected player, which revolutionized the market with iTunes. And in a similar way, FinTechs joined the fray as new competitors, encroaching on the core business of financial institutions with their own payment solutions.

Industry 4.0 and the Internet of Things

Security Creates Confidence – And Industry 4.0 Is No Exception

Innovation cycles in the digital age are no longer measured in years but in periods of just a few months. In order for new offerings and services to become a success, they have to inspire trust. Security solutions from G+D do just that, e.g. in the area of Industry 4.0.
In the smart factory of the 21st century, digitalization determines production more than ever, ensuring that processes, logistics, the environment, and customers interact intelligently with each other. Machines communicate with people and with each other. In this way Industry 4.0 makes it possible to respond more efficiently to trends and market needs. In combination with intelligent data processing, products are manufactured upon demand and individually tailored instead of being kept in stock.
Entire value chains can be optimized in this manner. However, the increase in data links and data traffic goes hand in hand with an increase in the risk of falling prey to a cyber attack. According to the industry association Bitkom, such attacks result in damages to German industry that amount to 22.4 billion euros a year.

Opportunities and Requirements of Greater Interconnectedness

Digitalization is not just changing the industrial sector. The Internet of Things (IoT) is increasing the networking of society as a whole.
Soon more devices and objects than ever will be connected to the internet.

  • Millions of navigation and entertainment systems in cars (keyword connected car)

  • Billions of refrigerators, thermostats and other household appliances (keyword smart home)

  • Billions of blood pressure monitors, implants and pill boxes (keyword e-health)

  • Billions of smart armbands, shoes, glasses and watches (keyword wearables)

The heating system at home switches itself on when you are on your way there. Traffic light systems respond flexibly to the traffic volume, your car tells you when there are parking spaces available in the vicinity, refrigerators order groceries when they are running low... It is hard to imagine the volume of data that will be produced, transmitted, and processed as a result. Here too, data, identities, and communication channels must be made secure to create confidence in the technology of the future.
Assuming security and confidence are assured, the IoT will potentially generate global economic added value of up to 11 trillion US dollars in 2025, according to a McKinsey study from 2015. This corresponds to an increase in economic performance of around 11 percent. The greatest potential benefits of the IoT will be felt in factories (up to 3.7 trillion dollars of economic added value), cities (1.7 trillion dollars) and in the healthcare sector (1.6 trillion dollars).

“Customers are differentiating less and less between offline and online offerings. Integrated solutions are therefore in demand.”

Markus Rachals, Managing Director of advance52

At the same time, the Internet of Things will soften the boundaries between technology firms and traditional companies and enable new data-based business models to emerge, such as those G+D subsidiary advance52 develops as a driving force within the Group for issues related to the core topics of payment, identities, and connectivity. Markus Rachals comments on this subject: “Customers are differentiating less and less between offline and online offerings. The customer’s journey passes along all channels. Integrated solutions are therefore in demand. We basically apply the motto: As personalized as possible at the front end, as automated as possible at the back end.”
Customers expect an excellent user experience and top protection for their transactions on every channel. People are particularly sensitive when it comes to their money. Online and mobile banking therefore require state-of-the-art systems that reflect the latest security standards and at the same time can manage the financial institutions’ complex strategies for all channels.

The integrated banknote

Efficiency with predictive analytics

In addition to other areas, digitization also impacts the cash cycle. Modern banknote processing systems enable a multitude of data to be gathered, from the serial numbers of the banknotes processed to information about their condition and the paths they travel. To this end, G+D offers big data analytics solutions, which already allow many processes in the cash cycle to be optimized. The keyword is predictive analytics. By evaluating this data and intelligently linking it with other information, central banks and banknote printers, for instance, can react in good time to demand peaks and plan their use of personnel and machines more efficiently.
For example, it is widely known that during football world cups, the number of soiled banknotes at the host locations increases. So far nobody has been able to predict how many new banknotes would be needed at short notice as a result. With the aid of G+D’s big data analytics solutions, which also incorporate weather data and data from social media, for instance, it is now possible to predict precisely where, when, and how many new banknotes will be needed and what processing volume can be expected at the cash centers.

eSIM: The Ideal Solution for Integrated Communication

Regardless of whether it is generated by predictive analytics or services such as online banking, the volume of data and data transmissions is constantly increasing. The growing use of mobile devices is also contributing to this. In 2016, there were two billion internet-enabled smartphones worldwide. By 2020 this number will have risen to three billion. One factor will remain unchanged: that end users want quick, practical, and above all secure connectivity. To achieve this, G+D supports mobile network operators and other companies on the telecommunications market by providing innovative solutions, processes, and products.

One example of this is the efficient management of embedded SIMs (eSIMs). Unlike conventional SIM cards, the eSIM is securely soldered into devices. Key benefits: The eSIM is much less sensitive to shaking, temperature fluctuations, and contamination. But the main thing is the card does not have to be changed when you switch mobile network operator. eSIM management enables the network operator to be changed and system updates to be performed easily and securely via remote access. This flexibility makes the eSIM the ideal solution for secure communication between machines and objects in Industry 4.0 and the IoT.

This is a route that automobile manufacturers have already chosen to take. For example, G+D has been supplying the BMW Group with eSIM management for its Connected Drive Services since 2016. And soon there will be hardly any cars without an eSIM. From 2018, all new vehicles in the European Union must be equipped with an eCall function to call for help automatically if an accident occurs. This takes place via a secure connection with trusted digital identities, the basis for communication in the digital future.

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