From Machine Manufacturer to System Provider
Interview with Heinz Sander, Managing Director, and Andreas Wehrmann, Managing Director of ICA Traffic GmbH
25 years ago, ICA Traffic GmbH from Dortmund manufactured their first ticket vending machines and has since worked up to a significant market share of about 60% in this segment. With the increasing digitalization of ticketing and payment processes, ICA Traffic also systematically transformed into a complete provider with proven software expertise – and aims to enable an even more seamless user experience with its new ID-Based Ticketing system. Founders and managing directors Heinz Sander and Andreas Wehrmann spoke with Wirtschaftsforum about current technological and organizational innovations as well as the success story the company has written, despite originally high barriers to market entry.
Wirtschaftsforum: Mr. Sander, 25 years ago ICA Traffic set out to bring fresh air to the ticket vending machine market - what new impulses did you want to set then?
Heinz Sander: I had already founded other companies before, including one that dealt with ticketing systems for modern parking space management. In 1999, Siemens approached us for a pilot project for public transportation in Cologne, where we were to produce machines for the respective Smart-Cards. We successfully developed this product within half a year - and saw such great potential in it that we wanted to enter this market, which until then was dominated by a widely established market leader. Through 25 years of innovative and reliable work, we were able to significantly change these circumstances in our favor and today we are pleased about having approximately 60% market share in the machine sector.
Wirtschaftsforum: What has changed at ICA Traffic during this time?
Heinz Sander: Originally, our focus was clearly on the development and manufacture of hardware, i.e., the physical machines; the associated software was comparatively of secondary importance. However, the market, the requirements of our customers, and also consumer behavior have changed drastically in the last two decades. Issues such as cashless payments and digital tickets have become more important – the classic ticket machine is today just one of many sales channels. In this course, we also had to transform ourselves from a machine manufacturer to a complete provider and system supplier, with an increasingly heavy focus on the software aspect. At the same time, we place a strong focus on comprehensive customer care: Our commitment does not end with the sale of our devices, and we are happy to support with targeted support services.
Wirtschaftsforum: Against this background, what is the next big step in innovation, Mr. Wehrmann?
Andreas Wehrmann: A key impulse for us is certainly ID-Based Ticketing, for which we offer a solution with our system Ticketing Inside, in which the end customer can simply check into the transport of his choice with his credit or debit card, which he already has, and automatically purchase a ticket at a terminal there – a process that is as simple as possible for the consumer, but requires a fairly complex infrastructure, which we as a system provider can fully map for the transport companies: In addition to the actual ticket terminal, we also provide all applications and accounting systems, along with 24/7 service level agreements, to be able to assist our customers promptly in case of any problems.
Wirtschaftsforum: What other topics are currently on the agenda at ICA Traffic?
Andreas Wehrmann: As a mature, medium-sized company with short decision-making paths, we want to remain agile and innovative: The most important basis for this are dedicated and competent employees: In order to secure this crucial competitive advantage in the future as well, we want to not only convince by offering attractive compensation and an appreciative corporate culture, but we will also tackle topics like recruiting and employer branding much more stringently in the near future.