Attention, ready - digital: but how fast?

DIGITIZATION As part of the "Digital - walk before you run" series, Christoph Oggenfuss* spoke to six experts about the challenges of digitalization. A summary and six key statements.

Digitalization and front office performance - like yin and yang.As part of my second series of articles, I had the opportunity to talk to six other experts on the subject of digitalization. The group of interviewees included a trend researcher, three CEOs from very different companies, a museum director and the country manager of CISCO - the leading technology company from Silicon Valley. All the experts agreed that the topic must be approached very consciously and with great attention. The strategic relevance is also beyond doubt for all the interviewees. In this article, I would like to summarize the key findings from the stimulating discussions and highlight a few striking features. Due to the great interest in the topic of digitalization, the series of discussions will be continued in 2016 with further key figures.What importance do you attach to the topic of "digitalization"?The topic is highly strategic for all interviewees - regardless of whether a digital strategy already exists. At the same time, they added that the analog world cannot simply be cut off as a result. The balancing act between the old and new worlds is particularly challenging when it comes to budget allocation. As digitalization is creeping into almost all areas of life, it can be assumed that "all business will soon be digital business". The scope of the topic is also made clear by the fact that existing business models can become obsolete very quickly and the barriers to entry for new business models have become very low. Another lever is the Internet of Everything, in which people, machines, processes and analytics are networked. If we assume that only 1 percent of this networking has taken place today, it becomes clear what still lies ahead. However, the strategic importance is particularly sustainable if the entire Board of Directors gives its backing. The topic of digitalization can also be divided into "internal" and "external". From an internal perspective, the focus is on efficiency and cost-saving potential, while externally it is on potential for increasing earnings and improving customer communication. although the interpretations of the six interviewees differed, 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 in no way correspond to the "digital average" is due to the nature of the selection of examples for the current topic dossier. The fact is that too many companies are at a loss when it comes to digitalization - welcome to the shark tank of UBER, airbnb, Zalando and co.Digitization: and with which specific projects?The wealth of concrete and useful application examples from my discussion partners is impressive and confirming - digitalization is not hype but an operational and strategic premise. For example, the company Mammut is launching a B-to-C webshop, thereby establishing the first digital direct sales channel for end customers. It goes without saying that the revised website must be responsive and therefore mobile-compatible. At Swisscom, the introduction of Voice over IP has put the revenues of the traditional telephony business at risk - this approach was a conscious strategic decision. For Swisscom, however, the digital transformation is not just about technology - cultural change is just as important. To this end, the company studied the "Human Centered Design" methodology in Silicon Valley more than 10 years ago and implemented it in its own organization. At CISCO, the sales process was restructured and a virtual demo center was integrated, enabling the world's best experts to be involved in the sales process for individual topics. At Aduno, on the other hand, it is the sheer size of the project budget for digital projects that makes the strategic intention appear credible. In addition, a pioneering project is being driven forward with the aim of bringing the physical credit card to the smartphone - with worldwide acceptance. At the Fondation Beyeler, this year's Gauguin exhibition was accompanied by a full digital campaign for the first time and the cooperation with Spotify also sent a strong social media signal. The concrete application examples show that the choice of companies and personalities for the third themed dossier "Digital - walk before you run" fell on "early movers".Digitization: What is the right pace? ...in any case faster than the bear chasing you!This question does not paint a uniform picture. Mammut, for example, sets a fast pace but does not claim to be a first mover. In the area of social media and quality content, however, the bar is clearly higher. If high speed is critical to success, innovation units can also be outsourced for a short time and then reintegrated into the organization as soon as they are up and running. Swisscom's credo is "acceleration", which means recognizing potential and quickly turning it into a realization process. Or to implement projects in which throughput times are reduced from days to minutes. With the "nova" label, Swisscom brings unfinished products to market early, learns from customer feedback and optimizes according to the needs expressed. At CISCO, the pace is ultra-aggressive, either the company makes the breakthrough or they have a real problem. CISCO wants to be number one or two in its target markets and with this ambition a fast pace is essential. Aduno is also moving at a very fast pace in its projects, but at the same time ensures that this is not at the expense of convenience and usability for the end customer. The Fondation Beyeler takes a two-pronged approach to the issue of speed: externally, it is a "first mover" and internally, it relies on tried-and-tested technologies and solutions in the interests of sustainability and orderly development.The biggest challenges?- The pace of digital change makes it very challenging for managers to make the right choice from the wealth of options - i.e. to filter out the right one for their own strategy.- To replace the helplessness in the topic of digital transformation with solid basic knowledge and thus empower top management.- To establish a new management style in the digital age. Managers must migrate from "know-it-all" to coach and thus exploit the innovation potential among employees - and in 10-15 years, digital natives will take over the leadership anyway.- Do not shy away from cannibalizing the existing core business - these resistances can be overcome with new business models (examples CISCO, Swisscom).- Ensure that employees can support the digital transformation and that a broad-based digital understanding is created. Digital must become the implicit basic attitude of the future.Six key statements from my interviewees:- "Not everything that is digital is better per se." Rolf G. Schmid, CEO Mammut- "Digitalization is not about technology, but first and foremost about people and culture." Karl-Heinz Land, Digital Darwinist Neuland AG- "Digitalization undoubtedly creates exciting new opportunities, but these must also be assessed from an ethical perspective. Even if almost anything becomes technologically feasible, this does not mean that everything can be done." Christian Petit, Group Executive Board Swisscom- "Digitalization is a huge opportunity to solve major problems - I don't see any alternatives. The future will be shaped by technology and every company will become a tech company." Christian Martin, Country Manager CISCO Switzerland- "The Aduno Group stands for 'the smart way to pay' - but the customer's primary need is to use a service or buy something. Our task is to make the cashless payment process as simple, secure and fast as possible." Martin Huldi, CEO Aduno Group- "Data security is a priority - we have to be aware of the dependencies we place ourselves in with the data we store and how we fulfill our art historical responsibility." Ulrike Erbslöh, Director Fondation BeyelerI am already looking forward to the fourth round of expert discussions with business experts in the fourth quarter of 2016 under the title "Digital - The new Normal". By then, the rapid pace of change brought about by digitalization will already be providing new, exciting topics and discussions.