Really? I know of Enigma during WW2, but I don't remember that on WW1.
German Naval Codes
The Russians obtained a major intelligence prize early in the War. The German cruiser Magdeburg ran aground in the Baltic. A series of German misteps allowed the Russians to get their hands on the the ship's codebook. The Russians turned it over to the British. The Imperial German Naval code was thus an open book to the British who already had an overwealming superority. And even worse the Germans did not know or convinced themselves that their code had been compromosed. This gave the British major insights into German secure communications for much of WorldWar I. Naval intelligence during actual combat opetations, however, was primarily traffic analysis, assessing the direction and volume of transmissions without actually being able to read them.
http://histclo.com/essay/war/ww1/intel/com/si/w1sic-brit.html
Room 40 played an important role in several naval engagements during the war, notably in detecting major German sorties into the North Sea that led to the battles of Dogger Bank and Jutland as the British fleet was sent out to intercept them.
http://en.wikipedia.org/wiki/Room_40
Churchhill mentioned this in a book after the war. Leading to the Germans begin to use enigma a much stronger code that was used in wwi in the early 1930s.
With code breaking and radio directing finding the German naval had big problems operating in the North sea.
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