No digitization without data

Dr. Patric Märki, Managing Director SAS Institute Switzerland.I meet Patric Märki in one of the bright and transparent offices of SAS in Wallisellen. The architectural transparency is not accidental but exemplary; SAS has been achieving top rankings worldwide as a "Best Place to Work" for years.Information as an important competitive factorFirst, I ask Mr. Märki what digitization means for SAS Institutes. "From the perspective of a leading business analytics provider, the topic of digitalization naturally takes on a special significance. Information has become one of the most important competitive factors." We've heard this statement before, too - but I don't think it can be emphasized enough. Too many companies still treat their (customer) information in a criminally unkind manner.Märki goes on to say that data, and the ability to extract information from it, represent a compelling prerequisite for surviving in competition. Digitized data is therefore at the very beginning of the analytical value chain. On the customer side, it is precisely these questions with which companies confront SAS consultants. Märki sees the urge or compulsion to digitize differently according to industries and business areas, but makes it clear that this process is not to be seen as an option, but rather as a strategic decision as to when and with what intensity to start and invest."next best offer" approachWhat examples can be used to illustrate digitization at companies? "Various industries are adapting their business models by improving business processes and using selected digitalization technologies (social, mobile, cloud, big data). As a concrete example, Märki cites the "next best offer" approach, which is now being used to great effect by leading retailers (e.g., Amazon, Tesco) and financial service providers. As a passionate concertgoer, Märki appreciates not only the online information in the run-up to the event, but above all the possibility of having the download available just 15 minutes after the concert. But people get used to such services very quickly - definitely a challenge for companies.Saving costs through digitization?Is digitization more of a growth driver or more of an opportunity for cost savings? As a first step, Märki sees digitization as a good opportunity to make customer and market access easier and better and to make offers more attractive; the concert download is mentioned again here as an example. With increasing digitization and the associated increase in transparency, cost optimization can also be addressed effectively.What are the digitization initiatives envisaged at SAS in the medium term? Patric Märki is only willing to show his cards to a limited extent when it comes to this question. On the one hand, because as Country Manager he has not been with SAS that long, but on the other hand because the SAS Institute has been involved with digitization since it was founded in 1976. As a global initiative for all 14,000 employees, the use of social media channels is trained and encouraged to actively use them.The challenge of data governanceFrom Talk to Walk: What are the key challenges or stumbling blocks on the way to implementation? "I see the topic of digitization as a clearly strategic issue, since the question to be answered is whether the current business model is fit for the future." With that, Märki also says that it has to be dealt with top-down and the view has to be applied to the entire company. Another topic he sees as a challenge is "data governance", i.e. the clear regulation of tasks, competencies and responsibilities around the handling of data in the company. This often includes the question of who is responsible for data quality.More advantages than disadvantagesWho are the primary beneficiaries of digitization? "This may differ depending on the industry and company. But it is clear that added value is created for suppliers, customers and business partners alike. In the supply chain area, for example, the manufacturer and the distribution partner can handle processes more efficiently and the end customer receives his goods more quickly." As a current example, Märki mentions the iWatch, for which he sees a huge range of applications and an open field for clever business models.At the end of the conversation, Patric Märki adds that one should not take an undifferentiated view of only one side of the coin when it comes to new technologies. But even after taking a critical look at digitization, he clearly sees more advantages than disadvantages. One essential and wonderful achievement is that much more knowledge is becoming accessible to a much wider circle of people. And this brings us full circle to the corporate credo of SAS Institute: The Power to Know.As part of the digital series in Marketing&Kommunikation by Christoph Oggenfuss (markITing ag), the first season was entitled "Digital - not trivial". The articles are available here.