How Thyssenkrupp Leveraged HoloLens to Transform Warehouse Operations

German multinational Thyssenkrupp, famed for its elevators and diverse engineering portfolio—from aerospace to automotive suspension—has embarked on a comprehensive digital transformation. Formed from the merger of Thyssen AG and Krupp in 1999, the company now coordinates its strategy across 42 business units under the guiding motto, engineering. tomorrow. together.

Daniel Kufer, Director of Strategy, Markets & Development for Thyssenkrupp North America, leads the initiative. He explains that the company’s transformation focuses on three pillars: operations, product & service offerings, and business models.

“As an engineering firm, we’re prone to the ‘technology trap’—adopting tech without a solid business rationale,” Kufer notes. This pitfall is especially relevant when integrating advanced solutions like mixed reality across varied business units.

[IoT World is North America’s largest IoT event where strategists, technologists and implementers connect, putting IoT, AI, 5G and Edge into action across industry verticals. Book your ticket now.]

One standout application is Thyssenkrupp Bilstein’s use of Microsoft HoloLens for warehouse order picking. Bilstein supplies shock absorbers for race cars and consumer vehicles, and has seen rising demand and tighter delivery expectations from competitors like Amazon and Walmart.

Warehouse staffing is a national challenge: ARC Advisory Group research, summarized on Logistics Viewpoints, shows that half of warehouse job openings attract five applicants or fewer, and only half of those applicants have relevant experience. Warehousing is “one of the least sexy parts of the business,” Kufer says, noting its manual nature and limited efficiency gains.

To accelerate shipping without hiring additional staff, Kufer’s team piloted HoloLens in the warehouse. The first user—a seasoned order picker—improved efficiency by 20% compared to baseline performance. The pilot also yielded better quality control, reducing incorrect or damaged shipments, and enhanced safety by alerting workers to nearby forklifts.

“When we asked our CEO, Patrick Bass, to try the headset, he matched the productivity of an experienced picker after just 30 minutes of training,” Kufer recounts. This demonstrated that technology could quickly elevate new hires and existing staff alike.

Beyond efficiency, the project highlighted the importance of a robust business case and stakeholder buy‑in. Employees initially viewed the headset as expensive and radical. To address this, Thyssenkrupp partnered closely with Microsoft, developing a custom HoloLens application over five years of collaboration. The company held a two‑day “envisioning session” at Microsoft’s Redmond campus, allowing warehouse workers to experience the technology firsthand and propose workflow‑specific features. This engagement helped secure employee enthusiasm and managerial support.

To communicate the vision, a concept video was produced, showcasing the proof‑of‑concept results. Kufer says the video was more effective than a traditional business case, helping persuade skeptical managers about the value of investing in mixed reality across the value chain.

Reflecting on the journey, Kufer emphasizes the need for cultural fit and partnership. “Don’t do it in isolation,” he advises. The right partner—like Microsoft—can provide the expertise, resources, and feedback loops necessary to win over naysayers and deliver lasting transformation.