"There is a perplexity about where to start".

Erich Joachimsthaler notes that companies often don't know which digital solution is right for them. On March 10, more than 550 digital enthusiasts met for the third edition of this high-profile event. Of course, the appearance of Apple co-founder Steve Wozniak was the big attraction, but other speakers also had exciting stories to tell. For example, Billie Whitehouse on the future of wearables or Prof. Adrian Perrig of the ETH on the long overdue technical renewal of the Internet.Erich Joachimsthaler, founder and CEO of the international consulting firm Vivaldi Partners, spoke to MK about the impact of digitalization for companies.MK Digitization can be a lever for growth - why is this opportunity used so little?ERICH JOACHIMSTHALER Yes, digitization does indeed open up enormous opportunities for corporate growth initiatives. This is not least because the digital possibilities such as cloud, mobile and social have massively lowered the financial entry thresholds. But why do established companies use these opportunities too rarely? On the one hand, I believe it is a certain perplexity as to where to start, and on the other hand, companies are bombarded by providers with digital solutions, which is also not conducive to a clear path of action.MK What do you consider to be the most convincing examples of disruptive innovations at the moment?JOACHIMSTHALER I'll limit myself to one example, which is also - because of its vividness - my favorite example: "UBER". With UBER, not a "better cab" was launched, but a new mobility experience was created. And it is not only a better alternative to cabs, but much more. It is a convenience-oriented purchasing process that did not exist in this form before. Moreover, in this process I get the choice whether I want to make a statement with UBER black or whether I prefer to travel lowprofile with UBER pop.MK Why is the C-Level having such a hard time with the topic of digitization?JOACHIMSTHALER Many C-level executives got to their current jobs by successfully minimizing the frequency of errors. In the digital business world, where agility, prototyping thinking and fail-fast mentality are in demand, those executives understandably don't feel at home. This can be fatal for the future of companies. If a certain consistency or sluggishness has been a quality in Switzerland up to now, this can become a horse's foot in the digital world.MK In times when capital is no longer scarce, we still measure success with financial ratios. What does it take to measure success in the digital world?JOACHIMSTHALER Today, financial ratios definitely have too much weight in the assessment of a company's success. Money does not adequately explain the story. In my view, there is a need for supplementary "customer KPIs" that help to better reflect performance and draw more relevant conclusions for corporate management. Customer KPIs must show how deeply the company and its services are anchored with its customers. An example from the beverage industry would look something like this:i. Penetration (market penetration)ii. Incident (how often consumed)iii. Transaction (fill quantity)iv. Price realized.MK Where do European retail banks stand in terms of digital transformation?JOACHIMSTHALER At the end of their lives! I have already spoken about the fear of contact of the C-level with the topic of digitalization - this also applies to retail banks, of course. CEO's of retail banks should work on the case "Blockbuster vs. Netflix" together with their management teams. Then, at the latest, it will become clear what can happen to this industry in the coming years. "Blockbuster" delivered a very compelling customer experience in its early years - but that was not the ultimate license for success. Netflix did a better job of capturing and delivering on the changes in the marketplace and changing customer needs. Blockbuster's bankruptcy could not be averted.MK In your opinion, what is the most common misunderstanding about "digitization"?JOACHIMSTHALER In my view, the reflexive reference to technology is the biggest mistake - it's about changing customer behavior with digital enablers and companies have to find the appropriate solutions. This lagging of companies is called digital Darwinism. The real limitation in this topic is not technology but rather the limited imagination of executives.