Artificial intelligence at Otto-strategic AI use with OGGPT from One.O as a competitive advantage

AI at Otto: Strategy instead of island solutions-a comprehensive look at the transformation in e-commerce

In the dynamic world of retail and especially e-commerce, artificial intelligence (AI) has developed into a driving force for innovation and competitiveness. The possibilities of AI are diverse and range from the personalization of the customer experience to the optimization of supply chains and logistics processes to the revolutionization of customer service and product development. Companies that strategically use this technology can secure a decisive advantage in the market.

The Otto Group, a traditional and globally operating commercial and service company, whose roots go back to 1949, recognized the transformative power of AI at an early stage. With an impressive story that extends over more than 30 significant corporate groups, and an online turnover of around 10.8 billion euros in the 2023/24 financial year, Otto Group is one of the largest online retailers worldwide. In view of this established position and global range, the strategic realignment of the Otto Group in the field of artificial intelligence is of particular interest to the entire industry. Especially for established companies, the introduction and integration of new technologies is often a greater challenge than for young, agile start-ups. The strategic step of the Otto Group therefore underlines the deep conviction of the company of the potential of AI and the determination of fully exploiting this potential.

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This article analyzes the comprehensive AI strategy of the Otto Group and in particular illuminates the decisive transition from potentially isolated, selective AI initiatives towards an integrated, coherent and strategic framework. This strategic approach, which is supported by central elements such as the company's own AI platform "OGGPT" and the central technology provider "One.O", not only promises a significant increase in efficiency in various business areas, but also a significant improvement in customer experience through personalization and acceleration of the innovation speed throughout the group. In addition, the report will examine the internal transformation within the Otto Group, which is associated with this strategic realignment, as well as the important ethical considerations that must be taken into account when implementing and using AI technologies.

From island solutions to the strategic orientation: the need for a coherent AI approach

In large, complex organizations such as the Otto Group, it is a frequently observable phenomenon that the first steps in the field of artificial intelligence are often decentralized. Different business areas and departments begin independently of testing and implementing individual AI tools and applications in order to solve specific problems or optimize processes. This initial phase of experimentation can provide valuable knowledge and initial successes. However, such an approach, which is based on isolated initiatives and "island solutions", also carries considerable disadvantages and inefficiencies, which can have a negative impact on the competitiveness and innovative strength of a company in the long term.

One of the main problems of isolated AI solutions is the development of data silos. If different teams develop and use AI tools independently of one another, they often use different data records and formats. This makes the company -wide integration of data difficult and prevents valuable knowledge and synergies from being used across business areas. In addition, dual work and a waste of resources can occur if different teams in different parts of the company try to solve similar problems with similar AI tools without knowing or learning from each other. This not only leads to unnecessary costs, but also brakes the innovation potential of the entire company.

Another disadvantage of island solutions is the risk of inconsistent customer experiences. At a time when customers expect a seamless and personalized brand experience across all contact points, isolated AI applications can lead to breaks and inconsistencies in the customer journey. If, for example, the customer service chatbot of a business area works differently or is less intelligent than the chat bot of another business area, this can lead to frustration and a negative impression among customers.

In addition, insulated AI solutions are often a challenge for compliance with security and ethical standards. If AI applications are developed and used decentrally, it is difficult to implement and monitor uniform uniform guidelines for data protection, data security and responsible AI use. This can not only hide legal risks, but also undermine the trust of customers into the company and its AI technologies.

The Otto Group recognized these potential disadvantages of isolated AI solutions at an early stage and therefore deliberately opted for a strategic approach that is under the motto "Strategy beats island solutions". This strategic realignment signals a clear departure from an uncontrolled, ad hoc-like use of various AI tools to a coherent, group-wide AI strategy, which is based on central principles and columns and makes the potential of AI optimally usable for the entire company. This strategic approach enables the Otto Group to overcome the disadvantages of isolated solutions mentioned, use synergies, reduce costs, create consistent customer experiences and to ensure ethical standards.

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The columns of the Otto Group's AI strategy: customer orientation, innovation, responsibility and integration

The AI ​​initiatives of the Otto Group are carried by several central principles and pillars that form the foundation of the strategic orientation and ensure that the use of AI generates maximum added value for the company, its customers and its employees.

A fundamental pillar of the AI ​​strategy is the consistent "Customer-First" approach. Although AI is at the center of the Otto Group's innovation strategy and is seen as a driving force for future growth and competitiveness, the company's primary goal remains to be a “custom-and-mort” company. This means that the Otto Group Ki does not consider an end in itself, but as a tool to understand and meet the needs of its customers even better. The use of AI should always serve to improve the customer experience, create personalized offers and services and to make the interaction with the Otto brand as pleasant and efficient as possible. This customer-oriented approach leads the selection and implementation of AI applications and ensures that they respond directly to the needs and problems of customers and create noticeable added value for them. It is not about using AI for the sake of technology, but about using it responsibly and in the best interest of customers and employees.

Another essential part of the AI ​​strategy of Otto Group the clear confession of innovation and continuous improvement. The company sees AI as a central engine for innovations in all business areas, from product development and marketing to logistics and customer service to internal processes and processes. Numerous innovation projects and the strategic importance that KI is attached to illustrate the strong commitment of the Otto Group to actively use AI in order to achieve competitive advantages and to open up new business areas. This innovation striving manifests itself in willingness to experiment with new AI technologies, to evaluate them and to successfully integrate them into the company's core processes. The Otto Group is aware that AI is a constantly developing field and that continuous innovation and adaptation are necessary in order to be successful in the long term. Therefore, the company is investing in research and development in the field of AI and promotes a culture of experimenting and learning throughout the group.

A third, no less important aspect of the AI ​​strategy of which Otto Group is the commitment to "responsible AI" and ethical considerations. The company is aware of the potential ethical implications of AI technologies and has proactively developed guidelines and principles for their responsible and trustworthy use. This includes the development of a “responsible AI guide”, which serves as a guide for all AI initiatives in the company and ensures that ethical aspects are taken into account from the start. The Otto Group attaches great importance to transparency, fairness, data protection and the avoidance of discrimination against the development and use of AI systems. This focus on responsible AI is not only a question of compliance and compliance with legal requirements, but also an expression of the entrepreneurial responsibility and the endeavor to build long -term trust among customers, employees and society as a whole. At a time when trust in AI technologies and companies that use it is of crucial importance, the Otto Group positions itself as a pioneer in the area of ​​ethical and responsible AI use.

After all, the deep integration of AI into the entire business strategy of the Otto Group is a fourth pillar of strategic approach. AI is not only a separate initiative or an isolated project, but also an integral part of the overarching corporate strategy and closely linked to the company's core destinations, especially in the areas of performance, innovation and sustainability. This integration ensures that AI investments and initiatives match the wider strategic goals of the Otto Group and make a measurable contribution to the general business success. By implementing AI as a cross -sectional technology in all relevant business areas and functions, the Otto Group can exhaust its full potential and promote comprehensive transformation of the company in the age of artificial intelligence. This strategic integration distinguishes the Otto Group from companies that use AI only selectively or reactively and enables it to position itself in the long term as a leading actor in e-commerce and beyond.

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OGGPT: The internal engine for AI transformation and democratization of AI knowledge

A central element of the Otto Group AI strategy and an impressive example of the strategic implementation is the development and introduction of "OGGPT", the company-owned generative AI assistant. Oggt is more than just another AI tool; It is a strategic investment in the democratization of AI knowledge and use within the entire company. By providing a user-friendly and powerful AI platform for all employees, regardless of its technical expertise or department, Otto Group promotes a culture of experimentation, innovation and active participation in the AI ​​age.

At the end of September 2023, the Otto Group launched its own internal, safe and data protection-compliant chatbot, which is based on the Chatgpt Technology of Openai and the Azure Openai Service from Microsoft: OGGPT. This means that nothing stands in the way of the professional use of an AI assistant with internal information by the employees.

OGGPT offers a wide range of functionalities that should help employees to do their daily tasks more efficiently, to work more creatively and to discover new opportunities. The most important functions include text and image generation, interaction with documents and access to internal knowledge databases. The text generation function enables employees to quickly and easily create texts for various purposes, be it for marketing materials, product descriptions, emails or internal communications. The image generation function opens up new opportunities for visual communication and the creation of appealing content. The document interaction function enables employees to upload documents and ask questions in natural language, which significantly simplifies access to information and knowledge management. Access to internal knowledge databases ensures that employees can quickly and easily access relevant company guidelines, best practices and other important information without having to search for a long time.

OGGPT plays a crucial role in promoting a new way of working within the Otto Group. It enables many employees to find a low -threshold entry into the world of artificial intelligence and to discover the potential of this technology for their work. By making AI less intimidating and more accessible, OGGPT promotes broader acceptance and research of its possibilities in the entire company. It acts as a catalyst for organizational learning and helps to reduce initial resistance or concerns about AI. The positive response of employees and the results of internal surveys, which show positive effects on employee productivity, time savings and job satisfaction, underpin the value of a strategic internal AI platform such as OGGPT.

OGGPT is continuously developed and improved, based on the feedback from users and the changing needs of the company. New functions, such as a marketplace for parts of prompts and customgpts, expand the possibilities of the platform and promote cooperation and the exchange of knowledge between the employees. The prompt marketplace enables employees to share effective prompt templates and reuse, which further increases the efficiency of text and image generation. CustomGPTs enable users to create tailor-made AI assistants for specific purposes that are tailored to their individual needs and tasks. This continuous further development and the iterative approach ensure that OGGPT remains relevant and adapts to the changing requirements of the company. OGGPT is therefore not just a tool, but a lively ecosystem that actively drives the AI ​​transformation Otto Group and enables employees to use the full potential of artificial intelligence.

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Strategic AI implementation in the business areas: Application cases and concrete examples

The Otto Group AI ​​strategy does not only implement its AI strategy at the Group level, but also specifically and strategically in its various business units and functions. This leads to a variety of concrete AI applications that are tailored to the specific needs and challenges of the respective areas and make a measurable contribution to business success. The following overview illustrates the strategic AI implementation using selected examples from various Otto Group business areas:

Manufactum

The traditional retailer Manufactum, known for its high -quality and durable products, uses AI to digitize the advisory skills of its shops and make it available online. With a AI-based “shopping advisor”, customers can ask questions about products in natural language and receive competent and personalized answers immediately. This application shows how AI can improve the customer experience and strengthen customer loyalty by enabling personalized and informative interactions that imitate the expertise of human sellers. The integration of AI directly into the customer journey underlines strategic focus on improving customer loyalty and satisfaction in the premium segment.

Witt group

The WITT group, a specialist for fashion for the target group 50+, uses generative AI to optimize product descriptions for better visibility in search engines, especially for niche target groups and specific product categories. By automatically creating search engine-optimized texts, the WITT group can improve its online presence, increase organic traffic and achieve more potential customers. This application underlines the strategic use of AI for marketing and sales optimization, the improvement of product findability and the achievement of specific customer segments in online retail.

Bonprix

The fashion dealer Bonprix experiment with generative AI models in the field of fashion design and product development. By using AI-based 3D tools, digitally generated images of clothing are created and tested to accelerate the design process and shorten the product development times. In addition, the use of AI in fashion design is researched to generate new design ideas and support the creative process. This application demonstrates the use of AI in creative processes and in product development, which can lead to increased efficiency, faster market launch times and potentially more innovative product designs.

logistics

In the state-of-the-art fulfillment centers of the Otto Group, AI-based picking robots are used to increase efficiency and automation in logistics. These robots use AI algorithms to recognize, grab and pick up products independently, which increases the speed and accuracy of the picking and the personnel costs can be reduced. The use of AI robots in logistics is a strategic step to optimize operational efficiency, to meet the growing requirements in e-commerce and to counteract the shortage of skilled workers in the logistics industry.

Otto platform

The central e-commerce platform Otto uses a variety of AI applications to improve the customer experience in various areas. This includes intelligent search functions that enable customers to find products faster and easier, personalized user experiences based on individual preferences and behavioral data, the analysis of customer reviews to improve product quality and customer satisfaction, and a AI assistant in the pilot test that can answer customer inquiries in natural language. This comprehensive integration of AI into the central e-commerce platform aims to optimize various aspects of the customer journey, from product searches to customer support, and a more appealing, efficient and personalized shopping experience.

Internal processes (OGGPT)

The internal AI platform OGGPT is used in various departments and functions to increase the efficiency and productivity of employees. Examples of internal applications are automated email answers, the creation of marketing content, support for software development with AI-based copilots and automation repetitative tasks. These examples illustrate the widespread applicability of a strategic internal AI tool to increase efficiency in various organizational functions and to enable employees to make their work more effective and productive.

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The centralized force: Otto Group One.o as the driver of the AI ​​strategy

Another strategic step of the Otto Group to strengthen your AI competencies and to promote a car-coherent AI strategy is the foundation of Otto Group One.o, a new central service provider for technology and strategy advice within the group. One.o was created by merging the know-how and the resources of OSP (Otto Group Solution Provider), Otto Group IT and the Digital & Consulting area. This bundling of expertise and capacities in a central unit signals a clear strategic step to the centralization of AI expertise and to promote a more coherent and more effective AI strategy in the entire OTTO group.

One.o's main task is to develop and provide economic, reliable and innovative end-to-end services along the entire digital value chain. The company has the clear mandate to strengthen the long-term competitiveness of the Otto Group and successfully accompany all group companies through the AI ​​age and beyond. One.o acts as a central contact and enabler for all AI initiatives in the group and supports the various business areas in the strategic implementation of AI solutions.

One.o is not only responsible for the development and provision of central AI platforms such as OGGPT, but is also actively involved in specific AI projects in the individual business areas. A concrete example of this is the AI-based “Shopping Advisor” for Manufactum, which was developed and implemented in close cooperation with One.o. This practical participation in specific projects ensures that one.o not only perceives a strategic advisory function, but also makes a direct contribution to the implementation of the AI ​​strategy in the individual business areas.

The management of One.O is with experienced managers who have previously successfully managed OSP. This continuity in the management level ensures smooth transition and the use of existing know-how to control the new centralized AI strategy. The experienced management level is crucial for the successful implementation of such a significant organizational change and the control of the group-wide AI transformation. One.o thus plays a central role in the implementation of the overarching AI strategy of the Otto Group and acts as a driving force for AI transformation throughout the group.

Advantages of a uniform AI strategy: efficiency, consistency and innovation

The strategic approach of the Otto Group to AI, which is based on a uniform and group -wide strategy, offers a variety of significant advantages compared to isolated island solutions that have a positive effect on various aspects of the business.

One of the most important advantages is improved data integration and use across various business areas. A uniform AI strategy enables the creation of central data platforms and structures that facilitate data exchange and data integration between different business areas. This leads to more comprehensive knowledge about customer behavior, market trends and business processes that can serve as the basis for more well-founded decisions and an improved training of AI models. The breakdown of data silos enables the development of more powerful and more precise AI models that can benefit the entire company and generate greater added value.

Another significant advantage is to reduce double work and optimize resource allocation. The centralized development and provision of AI solutions can be avoided in redundant investments in similar technologies and applications. A strategic approach enables scale effects in terms of technology, specialist knowledge and infrastructure. The Otto Group can use its resources more efficiently and make its AI initiatives more cost effects by centralizing and using Synergies.

A uniform AI strategy also contributes to a more consistent and more personalized customer experience across all contact points and brands within the Otto Group. A Kohesive AI approach enables the creation of a uniform brand experience and ensures that customers receive consistent and relevant interactions, regardless of the unit of Otto Group. This strengthens brand loyalty, improves general customer satisfaction and contributes to a positive brand perception. Customers benefit from personalized offers and services based on a comprehensive database and uniform AI models.

In addition, a centralized AI strategy promotes cooperation and the exchange of knowledge within the company. A centralized AI team and a central AI platform, such as OGGPT, facilitate communication and exchange of best practices, experiences and innovations between different business areas and employees. This leads to a faster development and provision of innovative AI solutions, since knowledge and expertise can be bundled and shared. A collaborative environment

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