"Attention, ready - Digital!"

Digitization and front office performance - like yin and yangAs part of my second series of contributions, I had the opportunity to talk to six other exponents about the topic of digitization. The group of interviewees included a professor, four CEOs from very different companies and the planning director of the city of Vienna. All experts agreed that the topic is absolutely topical and strategically relevant. However, there were different opinions regarding the approaches on how to concretize or implement the topic. In this article, I would like to present the key findings from the stimulating discussions and highlight some striking features. Due to the great interest in the topic of digitization, the series of discussions will be continued in the early summer of 2015 with additional key persons.What does "digitization of companies" mean to you?For all the interviewees, the topic is of absolute strategic importance. However, it is interesting to note that for one CEO, the global networking of experts is the focus, for another, the topic of data management is seen as a central competitive factor, and for the urban developer, digitized communication enjoys the highest priority. In this way, it can be seen that the topic of digitization can certainly not be lumped together. Another CEO (and company founder) puts the emphasis on the fact that the focus on content in market communication has supported the sustainability of his business model. Speaking of the business model and digitization: Here, the professorial division into three stages is helpful:Digitized communication (with the same business model and processes), digitized processes (with the same business model) and the digitization of the business model.Even though the interpretations of the six interviewees varied, there was a common denominator: the strategic importance of the topic and the organizational need to become more agile. The fact that the six selected organizations do not correspond in any way to the "digital average" is in the nature of the selection of examples for the current topic dossier. The fact is that "shock paralysis" or "bite inhibitions" on the subject of digital transformation can be discerned in too many companies.Digitization: Hype or Reality?The wealth of concrete and useful application examples from my discussion partners is impressive and confirming - digitization is not hype but an operational and strategic premise. With regard to digital communication, the division into "internally driven" and "externally driven" can help. In-house email communication can contribute a lot to process efficiency, whereas "externally driven" communication has a lot to do with convenience and relevant content. It's also striking that among my interviewees, competition in the digital world very quickly crosses industry boundaries. "Next best offer" is certainly a striking practical example that has become the norm with vendors like Amazon. However, the algorithmic complexity in data management behind the scenes should not be underestimated. The example of the 3D city model in Vienna clearly shows what digitization can contribute to a simpler understanding of a complex situation and how this promotes the participation of an urban community. The fact that this can lower the implementation hurdles of investment projects is a welcome side effect. It is also interesting to note that strategic management (e.g. employee recruitment, partner management) does not really differ between analog or digital business models. However, differences can be seen in the skill profiles of the corresponding CEOs. Here, classic management courses very quickly reach their limits - "digital content-driven inbound marketing" will not be part of the curriculum there.Digitization: growth driver or cost saver?The picture is consistent on this question - all the exponents in the discussion are of the opinion that increasing digitization opens up clear growth potential. Growth here also means increasing customer loyalty or providing quality content in a simple way. In addition, it was pointed out that digitization also simplifies customer and market access and thus offers opportunities for growth. With regard to possible cost savings, reference is made to so-called "rebound effects," i.e., that short-term savings can be neutralized when viewed as a whole. An illustrative example of growth and convenience is the replacement of timetable books with online timetables, which also offer the possibility of purchasing or reserving tickets and other offers. If such suitable supplementary offers are made, the digital possibilities are used in a customer-oriented manner. The scaling effect is mentioned for distinctly digital business models: once a platform has been provided, it can absorb growth almost continuously - even the computing capacity can be expanded in the cloud with practically no effort.Challenges and stumbling blocks ?Even if digitization is to be seen as a business topic that should be dealt with top-down, problems regarding system compatibility and demanding interfaces arise during implementation. Data governance, i.e., tasks, competencies, and responsibilities related to the topic of data management, must be regulated. The sensitization and training of employees is often forgotten - the digital DNA must encompass the entire company. Existing analog processes must first be transformed into the new world from a business perspective before they are then technically mapped and implemented. In the digital world, sourcing and partnering are also important - for example, the city of Vienna has decided to leave app development to the competition, but to make the data for it freely available.Who are the primary beneficiaries?One of the interviewees got to the heart of the answer - all those included in the supply chain. This makes it easier for producers to plan quantities, retailers can optimize distribution processes, and the end customer gets the goods faster - welcome to the digital world! In addition, it can be stated that digitalization will massively simplify the life of the consumer. Examples such as Youtube, Uber or airbnb impressively show where the journey is headed. Start-ups are another group of beneficiaries, because the initialization effort for digital business models is comparatively small to insignificant. This means that the entry hurdle is very low - and the business idea has to be all the more clever and useful.The Key Takeaways

1 Digital transformation is a strategic issue that must be addressed top-down.

2. digitization can be divided into three levels:

a. Digitized communication (with the same business model and processes)

b. Digitized processes (with the same business model)

c. the digitization of the business model

3. an important side effect of the digital transformation must be the increase in organizational agility.

4. in the digital world, industry and territory boundaries tend to dissolve.

5 Digitization within the company can be used to tap growth potential, in particular.

I am already looking forward to the third round of expert discussions with business experts in early summer under the title "Digital - Walk before you Run. By then, the rapid pace of change brought about by digitization will already be providing new, exciting topics and discourses.The six articles in the series "Digital: from Talk to Walk":1. Dr. Alex Rübel: The digital challenges at Zurich Zoo2. Dr. Patric Märki, Managing Director SAS Institute Switzerland: No digitization without data3. Dr. Stefan Michel, Professor of Marketing IMD Lausanne: Digitization is revolutionizing training4. Dipl.-Ing. Thomas Madreiter, Vienna Planning Director: Vienna - as a smart city to the top of the world5. Christian Kunz, CEO Ricardo Group: Ricardo - overcoming the "e-commerce paradox Switzerland".6. André Morys, Board Member Web Arts and Founder Conversion Summit: "People are not use-cases".