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WWW.TAKKT.COM/DIGITAL DIGITAL TRANS FORMA TION FOCUS ON CUSTOMER CENTRICITY

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Page 1: digital trans forma tion - TAKKT AG - Home 2016 Dt/07 2016 2020 2016 We want to double our e-commerce business until 2020 by creating an outstanding customer experience through digi-talization

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digitaltransformation Focus on customer

centricit y

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digitaltransformation Focus on customer

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oUrC o mmi t mE n t

oUr digi ta lt r a n s fo r m at i o n

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se i Z inG t He oP P or t uni t ies oF D iG i tA L i Z At ion

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c onstA n t cH A nGe

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our D iG i tA L AGe nDA

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e x a mp l es of Ac t ion s

D iG i tA L e X P e r t s

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tA k K t

ourcommit men t.

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Digitalization is a key strategic issue for TAKKT. In

times of fast-paced technology-driven transformation,

customer behavior and the workplace are changing

rapidly. At TAKKT, we view the trend of digitalization

as a major opportunity for our business. Our business

model of B2B direct marketing is already well pla-

ced to benefit from the growth of digitalization and

gain additional market shares. Besides the changing

interaction with the customer, we are also looking

for new possibilities that arise along our entire value

chain – not only in marketing but in purchasing, sales

and logistics as well.

We have already had very good experiences with

digital solutions throughout the Group. The percen-

tage of e-commerce in our total sales is already

around 40 percent in 2016. Now we are looking to

accelerate the digital transformation and give absolu-

te priority to this process in our planning and decision-

making. We are therefore pursuing a structured

approach and have set ourselves clearly defined

goals, with a particular focus on the global develop-

ment of digital expertise, the launch of new forms

of collaboration, the creation of a “test and learn”

We Want to seiZe tHe oPPortunit ies of Digital iz ation.tHe neW

customer centricit y.

culture and an absolute attention of all our activities

on the constantly changing needs of our customers.

This Digital Agenda describes our approach and pro-

vides an overview of selected measures. Because

the digital transformation is such a dynamic process

of change, our Digital Agenda will also continue to

evolve on a continuous basis. We will therefore keep

you up to date at all times on the progress of imple-

mentation and further developments in our Digital

Agenda at www.takkt.com/digital.

It is safe to say there is plenty going on in the world

of digitalization at TAKKT. We take this challenge as

an opportunity.

Members of the Management Board

Felix Zimmermann Dirk LessingClaude Tomaszewski

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tA k K t _ se i z ing t he op P or t uni t ies of d ig i ta l i z at ion

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We want to double our e-commerce business until 2020 by creating an outstanding customer experience through digi-talization.

We strive to transform our organization in a step change by putting digital first and focusing on customer centricity.

We will invest up to EUR 50 million until 2020 in our people and new technologies.

The implementation of our Digital Agenda will increase our midterm organic turnover growth.

vision2020

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»We keep things FAst and agile .«

»Bre aking new Ground.«

I am very excited to be a part of Hubert’s Digital

Agenda. One key learning is that we can empower

ourselves to make changes happen. In Merchandi-

sing, now I get new products to our sales people

digitally, rather than waiting for the catalog, so new

products can be shared immediately with custo-

mers. Furthermore, I have implemented email blasts

and short videos on brand new products and a Sneak

Peeks page on Yammer.

We keep things fast and agile and constantly impro-

ve our marketing tools. Best of all, our sales team

loves these new changes!

The digital transformation cannot be stopped by any

industry or company but will change them forever. It

will therefore be an issue of adapting to this change

early on and creating the conditions essential for

long-term success. This undoubtedly includes speed

in the development of digital expertise and the desire

to try out innovative methods, even if not every idea

results in immediate success.

As a member of the TAKKT AG Digital Transforma-

tion Advisory Board, I am happy to support the com-

pany with help and advice.

Jul ie _ oll inger m a rt in _ enderlec a t e g o r y _ m a n a g e r m e m b e r _ o f _ t h e _ d i g i t a l _ t r a n s f o r m a t i o n _ a d v i s o r y _ b o a r d

h u b e r t _ c o m p a n y _ l l c

»impressing customers with Digital solutions.«

»Gre ater customiz a-t ion and efficiency in customer services.«

Everyone is talking about digitalization and the effects

that technological change has on the economy, the

work environment and society. But what does that

mean for us? We have opted to further develop our

business model through a clearly structured approach.

We want to use new technologies in the TAKKT

Group in order to more intelligently fulfill customers’

requirements. We want to exploit the opportunities

of changing and new markets, which we can do by

adapting the organization, further developing our

culture, establishing new skills, promoting an even

greater focus on customers in everyday activities

and optimally using our data. We have developed a

comprehensive Digital Agenda to do just that.

At Ratioform we see digitalization as an opportunity

for further growth. Why? Because we are able to

serve our customers better, more individually and

more efficiently.

And because we will be integrating customer feed-

back directly into the development of our offering

in the future, we will be able to further aligning our

marketing and sales channels to improve customer

targeting. In a faster and faster changing market en-

vironment, it is essential that we continue to have

the courage to test and establish new digital busi-

ness models, take advantage of our team’s different

skills and always be willing to break new ground.

Pe t er _ BruHn elke _ K at zs e n i o r _ d i g i t a l _ a d v i s o r c h i e f _ d i g i t a l _ o f f i c e r

t a k k t _ a g r a t i o f o r m _ v e r p a c k u n g e n _ g m b h

tA k K t _ P r o sP ec t s

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From c onsta n t ch a nge to a Funda men ta l t r a nsform at ion.

Constant change has played a key role in the history

of TAKKT and its companies. We perfected produc-

tion of the print catalog in the 1970s, logistics in the

1980s and comprehensive, qualified advice in the

1990s. New technologies have always been used

to further develop the business model. E-commerce

has made a significant contribution to our success

since the turn of the century and, with the DYNAMIC

growth and modernization initiative launched in 2013,

we have further developed our business model to

multi-channel PLUS.

Now we face a new age. The effects of digitalization

on the market, the purchasing behavior of our custo-

mers, processes and our activities can most appro-

priately be compared with an industrial revolution.

This results in new opportunities for us to further

differentiate ourselves from the competition, by im-

pressing customers with innovative solutions. The

use of digital technologies also opens up new areas

of activity for our portfolio companies.

Due to the extreme momentum of the change pro-

cess, we need to become faster, more flexible and

more agile, so that we can exploit the digital trans-

formation for additional growth.

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compile catalog, preselected products

web shop,e-procurement

infrastructure, adress selection

DYNAMIC DigitalAgenda

individual customer contacts, product knowledge

Focus on c ata log

e x pa nsion of e-c ommerce

op t imiz at ion of f ul f il l men t

mult i-ch a nnel plus dig i ta lt r a nsform at ion

Qua l if ied a dv ice

1970

2000

1980

2013

1990

2016

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ourdigital transformation.

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We Have De veloped our own Digital Agenda .

tA k K t _ our D iG i tA L age nda

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wh y? wh at ? how ?

At TAKKT we asked ourselves if we were sufficiently

prepared to successfully implement the digital trans-

formation. Six major companies in our portfolio were

critically analyzed in relationship to one target

group, revealing the strengths and weaknesses of

each of the companies in key focus areas of the

digital transformation. In particular, the strengths are

the result of the extensive experience in core areas

of expertise of our B2B direct marketing business

model. In addition to purchasing and marketing, this

also includes very efficient processes in logistics

and order processing.

Room for improvement was found, for instance, in the

efforts to expand digital expertise as well as in having

an unconditional focus of our activities on the

constantly changing needs of our customers in the

digital age.

During the self-assessment, it also became clear

that our most recent acquisitions are already promi-

singly positioned in major focus areas of the digital

transformation, while the more established compa-

nies performed better in the classic areas of exper-

tise.

Overall, due to radical technological developments

and changes in the market and the results of our

own strength and weakness analysis, we have iden-

tified the need to develop our own Digital Agenda to

complement the existing strategic initiatives.

At TAKKT we see three key activities in our Digital

Agenda for a successful digital transformation: digi-

talization of the entire value chain, agile organzation

models and innovative business models. Built on

this, we have defined six focus areas in the Digital

Agenda to ensure consistent, successful implemen-

tation of the digital transformation: strategy and

innovation, customer decision journey, process auto-

mation, organization, management and corporate cul-

ture, technology and data and analytics.

Within these focus areas, we have established very

concrete measures, which we aim to implement

over a brief period of time with small, efficient pro-

jects. Finally, we have defined the resources we

require and the additional digital competencies that

we would like to develop.

We look forward to the new opportunities made

possible by the digital transformation. We firmly belie-

ve that we will be able to create a corporate culture that

accelerates the digital transformation, which at the

same time will require some significant changes. We

pursue new forms of organization and new ways

of working, empower our employees and invest in

new talents and state-of-the-art software solutions.

We also establish formats for an open exchange

between experts in different segments.

The aim is to be able to use acquired knowledge and

tools of the trade at our own company at any time.

After all, we create attractive, innovative work en-

vironments designed to promote new ways of wor-

king and, in particular, the creativity of our teams. By

having concrete goals we can measure our success.

t o D oi D e a i n p r o g r e s s c o m p l e t e t h i n k i n g f o r w a r D

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foCUs a rE as of t hE digi ta l agEnda

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Successful digital strategies take a critical look at

the status quo and bring about fundamental changes

throughout the company. With our strategy, we want

to focus on the measures that we are confident will

deliver the most value for our customers and thus

the most sustainable growth potential. We intend to

align our business model with the digital age based

on clear priorities, using innovative methods to de-

velop new solutions and offers for our customers.

In the future, we will shorten the time-to-market. By

maintaining a dialogue with our customers, we are

able to learn and thus optimize our services on a con-

tinuous basis.

We adapt organization and procedures in line with

our goals to ensure successful implementation

of our strategy. We work with greater agility and

flexibility in efficient, task-oriented work groups,

where we bundle expert knowledge. In this way, we

can ensure a comprehensive perspective and align

our activities directly with customer requirements.

We promote the digital expertise of our employees

through targeted training and collaboration with

start-ups and Haniel‘s digital workbench, Schacht

One. We also hire digital talents and, with our Di-

gital Entrepreneurship trainee program, train young

people to become digital experts themselves. We

invest a great deal in creating state-of-the-art work

environments. With these measures, we want to

further develop our corporate culture to such a degree

that it supports the digital transformation. For ma-

nagement purposes and to learn from each other,

we regularly assess the results and progress of

these measures. We have defined standardized key

figures that facilitate a comprehensive view and

incorporate the customer’s perspective and further

development of our organization and culture. For ins-

tance, the Net Promoter Score and the mastering of

agile methods are integral parts of our new control

logic.

We would like to learn about and understand our customers’ requirements and decision ma-

king processes when it comes to purchasing. This will enable us to successfully implement our

strategy. Success can only occur if we intensively analyze the different information and purchasing

behaviors of various customers and flexibly and individually adapt our activities accordingly. For us,

the digital transformation means actively using our knowledge to personally address our customers with

precision, particularly through digital channels.

We will also continue to adapt our processes during the digital transformation. They will

become faster and more efficient, manual activities will be further automated, and the details

of order fulfillment will be easy to understand and transparent for customers. Thanks to system

integration, our customers will also benefit from seamless processes and direct communication. As

a result, we will be able to increase efficiency and the satisfaction of our customers as well as promote

successful, long-lasting business relationships.

The internet of things and new technological analysis options open up additional growth opportunities for us.

We want to make more of an effort to incorporate these in order to get to know our customers and their

requirements better and understand their behavior. With these valuable insights, we always offer our

customers just the right products and win over new customers with tailored solutions. We will spend

more time analyzing data, so that we can better predict the needs of our customers, using both

internal and external real-time data. This in turn will allow us to optimize the supply chain and

ensure that the products customers are looking for are always available at short notice. In

this way, we can increase our delivery reliability and product availability even further,

as well as act sustainably by avoiding unnecessary inventories and long delivery

routes.

It goes without say that technology is also key to achieving our goals, which is why we are so vigilant about

updating our existing IT systems and introducing new ones. We are planning to invest intensively in new

software solutions along the entire value chain, ranging from high-performance product databases to

communication systems that enable integrated administration of various modes of communication

with the customer. We are increasing our focus on the cloud and Software-as-a-Service solutions.

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The digital transformation demands that measures progress quickly, new measures are added and that we never stop learning. This is why we also use the benefits of digitalization here and keep you up to date on our digital transformation at all times on our website:

www.takkt.com/digital

you ca n F inD a sm a ll select ion

of t he init i a l me Asures

on t he pages a he a d.

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We think beyond our company’s borders, particular-

ly when it comes to looking for innovative business

models, unique products and visionary business

founders. This is how we obtained a noncontrolling

interest in the Berlin-based start-up printmate

GmbH, for instance, in August 2016. printmate spe-

cializes in the digital printing of professional mail

packaging individually designed for the client, and

can offer customers attractive prices for batches as

low as 100 units.

This business model corresponds precisely with our

strategy to individually and flexibly fulfill customers’

needs – with the aid of digitalization.

str AteGy & innoVAtion

in V est men ts in innovat iv e sta rt-up s

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With the aid of the customer cockpit, we will be able

to communicate effectively with our customers via any

channel and in real time in the future. For instance, when

a customer is visiting our website and needs help, is un-

able to find information or does not proceed to checkout

despite having products in the shopping cart. We can

point out alternative products, recommend accessories

or pass on valuable information from the manufacturer

for optimal use or assembly. Expert contact persons

can then answer any of their questions through various

channels and offer individual solutions in order to

increase the likelihood of a purchase.

This requires us to understand our customers, which is

why we develop “customer journeys” and define perso-

nas. These are detailed descriptions of customer types,

according to which we identify concrete requirements.

This assessment provides us with insight into which

points of contact we need to use, bringing us ever

closer to our goal of providing an outstanding custo-

mer experience and allowing us to recognize when and

through which channel customers should be provided

with information relevant to them.

more effect iv e A dv ice a nd sa les wit h the customer cockpit

customer Decision Journe y

We offer our customers the transparency they desire

at every stage. Our customers can see the delivery

date even before placing an order. Emails with a

click-to-call button and direct chat feature allow for

simple, direct contact if desired. In the future, gua-

rantee information will be simple to access at any

time and with any device. Upon request, we can

also inform customers about upcoming maintenance

requirements.

Digitalization can be applied to a lot of processes to

ensure a better customer experience. When placing

an order, for example, the address is automatically

checked for errors so that delivery delays can be

avoided later on. At Ratioform, ratioPoints are auto-

matically credited to the customer digitally when

they place an order. Digital solutions for customer

contact management and multichannel planning

help to improve dialogue with the customer.

tr a nspa ren t serv ices

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Process AutomAtion

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In addition to assignments in selected areas at our

companies in the US and Europe, our new “Digital

Entrepreneurship“ trainee program also inclu-

des several months of training at Schacht One.

With the help of design thinking and rapid prototy-

ping, Schacht One develops innovative and radical

user-oriented ideas and solutions. Our young talents

learn how to develop and implement digital ideas

here. You can find a current list of projects and ideas

at www.schacht.one at any time.

Visits to digital companies young and established in

Silicon Valley will also expand their horizons, while

courses at renowned universities and at Haniel Aca-

demy will provide digital talents with the necessary

tools of the trade. Regular dialogue with mentors in

management positions ensures that the innovative

ideas generated by these talents receive the neces-

sary attention.

“D igita l en t repreneurship “ tr a inee progr a m

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orGAnizAtion, management & corPorAte cuLture

Qualified, expert advice is an important added value

that we offer our customers, and distinguishes us

significantly from purely transaction-oriented com-

petitors. New digital services offer additional op-

tions for competitive differentiation, allowing us,

for instance, to create the opportunity to contact

customers precisely where they need assistance. If

they are online, in the future we will be able to guide

them through our selection directly to the right pro-

duct via co-browsing, or interactively recommend

and three-dimensionally visualize solutions with them.

With the virtual showroom, our National Business

Furniture brand already makes it possible to expe-

rience products virtually, building a bridge between

store-based retailing and the web shop.

communicat ing in re a l t ime

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tecHnoLoGy

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Dr Martin Enderle

Freelance management consultant,

Expert in digital start-ups and business models,

former CEO of Scout24

Joseph Noronha

Director of the Detecon Innovation Institute, Silicon Valley

Expert in digital innovations

Professor Dr Martin Spann

Director of the Institute of Electronic Commerce

and Digital Markets, Expert in digitalization,

marketing and innovation

TAKKT AG established the Digital Transformation

Advisory Board in 2015, responsible for providing

the TAKKT Management Board and the Chief Di-

gital Officers of the different business units with

advice and support in times of change, as well

as promoting innovation skills. Experienced ex-

perts from the digital economy anticipate and exa-

mine digital trends and help identify digital oppor-

tunities and risks.

The Advisory Board contributes an external

perspective and acts as an advisor. It poses

questions in a targeted way and evaluates what

could prove to be fundamentally important for the

future success of TAKKT AG.

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tA K K t _ dig i ta l e x p e r t s

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DiGtAL e XPerts As our Advisors.

DAta & AnALy tics

members

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For us, data plays a key role in improving the custo-

mer experience. Amid the flood of information that

our customers receive on a daily basis, we want to

serve them in a targeted way, based on their require-

ments and needs. For instance, our data analysis

makes it possible to adapt newsletter content based

on the specific customer type, their preferences and

their search behavior. Changing customer require-

ments can be identified earlier on, ensuring our

customers are always presented with a selection

that is optimally tailored to their needs.

We are continuing to expand our expertise in the area

of data analysis, which we bundle at a virtual compe-

tence center, so that successfully tested approaches

can be made available to all of our companies.

inDiV iDuA L customer A PProAcH

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We are a portfolio of globally operating B2B direct

marketing specialists for business equipment with

the goal of becoming leaders in our markets through

our portfolio companies. While the companies follow

a business model that is, at its heart, similar, they

each have a different focus in terms of their custo-

mer groups, product ranges and countries. All use

the marketing media of print, online, telesales

and field activities as part of a multi-channel PLUS

approach. Anchored by this successful business

model, we thus position ourselves broadly through-

out the Group. This enables us to diversify the risks

of the individual markets in our portfolio. We enter

new markets wherever we see positive prospects

for success, either by founding new companies or

through acquisitions.

The customer is the focus of our activities. Our

portfolio is complemented by exemplary service in

addition to our high-quality product preselection.

Our portfolio companies have made it their goal to

offer our customers the most efficient method for

purchasing business equipment. We are continual-

ly adjusting our business model to suit changing

customer needs for this reason. To achieve this,

trends such as growing digitalization are identified

and made tangible and usable for our customers and

business partners.

Our actions are guided by our corporate values as

well as our principles of sustainability. We actively

contribute to protecting the environment and preven-

ting climate change. We take responsibility for our

products, in purchasing, marketing and logistics. We

are also committed to the concerns of our employ-

ees and those in our social environment. We want to

be the role model for sustainability in our industry by

taking a targeted and systematic approach.

our mission stAtement.

tA K K t _ mi s s ion s tat e me n t

10

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tAKK t AG

Di V i s ion s

seGme n t seGme n t

se r V ic e c omPA nies se r V ic e c omPA nies

muLt i-c H A nne L Br A nD s

W e B -Fo c u se D Br A nD s

Di V i s ion s

muLt i-c H A nne L Br A nD s

W e B -Fo c u se D Br A nD s

oF F ic e eQuiP me n tGr ouP (oeG)

sP ec i A Lt iesGr ouP (sP G)

tA KK t a merica

PAc K AGinG s oLu t ion s Gr ouP (P s G)

B u sines s eQuiP me n tGr ouP (BeG)

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i m P r i n t

tAKK t AG

Postfach 10 48 62, 70042 Stuttgart

Presselstraße 12, 70191 Stuttgart

Germany

t +49 711 3465-80f +49 711 3465-8100

www.takkt.com/digital

C o n C E P t i o n , E d i t i n g

d E s i g n a n d r E a l i Z at i o n

CB.e Kavermann GmbH & Co. KG, Stuttgartwww.kavermanncbe.de

P r in t in g

Eberl Print GmbH, Immenstadtwww.eberl.de

tA k K t _ imp r in t

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carbon neutralnatureOffice.com | DE-141-325863

print production

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www.takkt.com/digital