Mention the word ‘digitisation’ and Udo Lorenz’s face lights up. “What does digitisation mean to me?” he repeats. “When I hear that question, I have to smile because it is the greatest question in the world today.” The enthusiasm is just as evident in the tone of his voice as he animatedly chats about some of the most disruptive business models that digitisation has delivered.
“Look at Uber: a taxi company without cars. Then there is Airbnb: an accommodation company without its own properties. It’s a whole new world. I think digitisation is a great opportunity for GWS,” he says excitedly.
Digitisation experts
The joint CEO of German enterprise resource planning (ERP) specialists GWS – Gesellschaft für Warenwirtschafts-Systeme – says his company sees each challenge presented by digitisation as an opportunity. “There are many new players flooding our market,” he acknowledges, “and the demands of our customers are growing. Nowadays there is an expectation of around-the-clock connectivity. There is no longer any separation between the home and the office. We have to constantly innovate to find solutions for our customers in a faster time frame than our competitors.”
He calls his team at GWS “digitisation experts” who find themselves in the fortunate position of counting Microsoft as a close partner. “Microsoft is delivering fantastic tools and allowing us to build on them to offer more value to our customers,” he says. As each new innovation is released from Microsoft, Udo is reminded just how well placed GWS is.
“I envisage a future where we will offer much more than just services around ERP systems,” he says. “We will support and advise our customers in the area of digitisation because our close relationship with Microsoft provides us with an incredible knowledge of its products – for example, HoloLens, Microsoft’s augmented reality, or the big data capabilities of Microsoft Cortana Intelligence. Not everybody knows what to do with these tools. We do.
“As experts in the industries we work in, we are able to build and develop products that enable our customers to be more successful than their competitors.”
Established in 1992, GWS has grown to become the leading name in ERP solutions for small- and medium-sized wholesalers and retailers across a variety of sectors, including the agricultural trade, as well as the technical trade, vehicle parts, building materials and sanitary-goods markets.
Dynamic duo
The relationship with Microsoft dates back to 1998 and, along with its approved partner status for Microsoft Dynamics NAV and Microsoft Dynamics 365 for Operations, the company has internally developed the fully customisable gevis ERP platform, an integrated and bundled ERP branch solution which uses the Dynamics suite as a foundation and carries the Certified for Microsoft Dynamics logo.
As GWS prepares to celebrate its twenty-fifth anniversary, Udo reflects on some of the highlights from his office inside its Münster headquarters. “We started out small and have grown into one of the 5 fastest-growing IT service providers in Germany and German-speaking countries today. Originally we had a staff of 34, whereas currently we have nearly 400,” he says. “Last year, in particular, was kind of awesome for us,” he enthuses. “It was a very successful year: our turnover was close to €51 million.”
We started out small and have grown into one of the 5 fastest-growing IT service providers in Germany.
Along with record financials, 2016 was significant for another reason. After 24 years in the role, GWS’s founding CEO Helmut Benefader announced his retirement and Udo, along with Georg Mersmann, was appointed as his successor. The handover involved a year of intensive training that also allowed both employees and customers to become acquainted with the changing company structure. Previously the head of department for Microsoft Dynamics NAV, Udo says that he used the time to find the right way to approach the position of joint CEO. “My role is like that of the foreign minister, while Georg is the home secretary,” he laughs.
Complementary competencies
The concept of joint CEOs is one that has its share of sceptics in the business world, but Udo explains how his and Georg’s core competencies complement each other. “Georg and I are different individuals with our own distinct professional histories. I’m responsible for implementing business strategy, marketing, and overseeing the 3 subsidiary companies of the group. Georg looks after the areas of product development, personnel, ebusiness and general administration,” he says. “Our handwriting may be different, but we are both working on the same page,” he laughs, translating a well-known German saying into English.
- Never give up
- Look to the future but learn from the past
- Have a clear target in mind
- Always be self-critical
According to Udo, since assuming the leadership role the duo has been careful not to introduce too much too soon. The initiatives that have been implemented, however, carry huge significance. “We have fixed a company vision for the next few years,” he explains. Called GWS 2020, it outlines how the company plans to replicate the success it has achieved in Germany on an international level.
“We have spent the past 25 years focusing on the German and German-speaking market, but we want to take that next step into Europe, and maybe even the UK and the US,” he says, before adding that existing customers will always remain a high priority. “Our current customers are the foundations of the company, so it would be very dangerous to forget them.”
Human capital
Along with this new vision, Udo says GWS’s service mission has been updated to align with changing customer expectations. “Every European country has a different culture and way of life, especially when compared to Germany. So we have to find new ways to approach these markets, and having the right people in place is a priority.”
He cannot emphasise enough the importance of his employees. “Our capital is human,” he says. “So it is very important to remain close to them and develop them. We have to remain dynamic in the training of our personnel.” In keeping with this spirit, Udo explains that the company is enhancing its cooperation with universities. “Not only are we able to refine our project management and processes knowledge in line with latest thinking, but we are also able to stay close to recent graduates entering the workforce,” he says.
The company culture that Udo describes is one that would easily appeal to industry veterans and new graduates alike. “We work long and hard, but we are also able to laugh, and we definitely know how to party,” he admits. “There really is a great spirit at GWS, and I think I’m right in saying that our employees don’t just work for the money here. They work for each other as well.” In 2016, the company was recognised as a regional winner for Münsterland in the Germany’s Great Place to Work awards. “We don’t just focus on our employees; we also consider their families as well and offer flexible working rosters for parents,” he says.
Collaborative partnerships
Udo’s overall vision is a future where GWS is recognised as one of “Europe’s leading service providers,” he says. “For this, we want to intensify our collaboration with Microsoft, especially with the cloud solutions they are developing.” Yet this is not the only close partnership the company counts, with a leading name in global IT. Udo reflects upon a long-established relationship with Fujitsu, its partner for hardware, IT infrastructure and service.
“GWS and Fujitsu share a similar high-competence ethos,” he says. “We have worked together on many projects and have resolved some very particular requirements of our customers with innovative product solutions.”
It seems fitting that GWS specialises in Microsoft Dynamics; its strengths lie in remaining dynamic in its approach to all aspects of its business, from digitisation to leadership and even its ownership structure. “The owners of GWS are all customers of GWS. I think it’s very special to build a company that only counts customers as shareholders,” he says. The largest of the 8 shareholders is IT service provider Fiducia & GAD (GWS’s mother company), with a 64.9% share.
“I think it is a very exclusive way of partnership, and it’s one that is not found very often in the business world. I think that is something truly special for GWS.”