Three core areas in focus: Behind the latest provider overview by Lünendonk & Hossenfelder (Lünendonk for short) are revenues for digital consulting, agency and technology services. The B2B market research company from Bavaria, which is well-known in German-speaking countries, summarises these service offerings in a list of leading providers for “Digital Experience Services” (DXS). mgm technology partners is included in the list for the first time and ranks 21st in this second edition with sales of 73.1 million euros. A corresponding study on the overall DXS market has been published in parallel with this overview.
With the study and list published for the first time in 2020, Lünendonk has responded to the complexity of digitalisation projects at companies. Whether platform models, digital business models or the implementation of new technologies – expert knowledge from an isolated area is not sufficient for the digitalisation of the entire value chain, the market research company stated at the first presentation: More than three quarters of the companies would work together with external service providers. With the DXS list, Lünendonk now provides an overview of service providers with a combination of consulting, agency know-how and IT implementation in their portfolio.
21st place for mgm in Lünendonk’s DXS list
In the current 2021 edition of the list (only available in German), the large consulting firms and IT service providers with total revenues ranging from several hundred million to over one or two billion euros continue to dominate the top places. With 73.1 million euros in sales, mgm positions itself in 21st place out of 25. Important to know: Lünendonk finally sorts according to total turnover, because a proportional differentiation does not work uniformly and would therefore not be serious. However, the three areas are shown in three corridors (up to 20 %, 20-40 % and over 40 % share of turnover). All data are based on the listed companies’ own statements, which have been verified in case of doubt. All have broken down their project revenues into the three DXS areas, which Lünendonk defines as follows:
Digital Consulting Services: Support in the development of new business models and innovation consulting, technology consulting for emerging technologies, consulting on agile working methods, development of strategies to improve the digital experience as well as process consulting in the context of digital experience projects.
Digital Agency Services: Creation, conception and design of digital customer touchpoints as well as multi-channel strategies, performance marketing, data-driven marketing, SEO, SEA and the implementation and management of content strategies
Digital Technology Services: Technical implementation of digital solutions (with a focus on user experience) including software and system integration as part of digital experience projects, development of digital & customer-centric platforms, e-commerce and connected experience solutions.
In terms of mgm’s figures, this means:
- The majority of the consulting revenues were generated by the colleagues of mgm consulting partners in many different digitalisation projects.
- Agency services at mgm, for example, include all technical, creative and conceptual services for web and software projects in the three core industries of commerce, insurance and the public sector.
- Technology services include the classic development services for enterprise systems, platforms and connections to individual IT landscapes.
Lündendonk study with industry details
Many more details on the entire DXS market can be found in the study (only available in German) published in parallel by Lünendonk. This is based, on the one hand, on the assessments of the IT service companies, consultancies and digital agencies in the list and, on the other, on a survey of 108 executives from companies in Germany, Austria and Switzerland. A core finding of the study: “While the digital experience is seen as a key element in customer acquisition and retention, the majority of companies (65%) see the quality of their digital experience as only ‘on par’ with the competition.” For the user companies, two topics are also at the top of the list of “very big” challenges: declining customer loyalty & retention (42%) as well as adaptation of new digital technologies and the acceleration of digital transformation (40%).
The Lünendonk information at a glance (only in German):
- “Leading providers of digital experience services in Germany”: download list.
- “The Market for Digital Experience Services in Germany – Strategies, Developments & Trends for More Customer Centricity and Digital Experience from Service Provider and User Perspectives”: download study.
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