DIGITALTRANS- FORMATION

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T O C O N N E C T M O R E W I T H T H E M O D E R N C O N S U M E R A N D B R I D G E T H E D I G I T A L G A P A C O M P A N Y I S F A C I N G , D I G I T A L T R A N S F O R M A T I O N I S E S S E N T I A L . C O M P A N I E S N E E D T O E V A L U A T E T H E I R C U R R E N T W O R K I N G M E T H O D , A S E V E R Y S U C C E S S F U L D I G I T A L T R A N S F O R M A T I O N I S B U I L T O N A D E E P U N D E R S T A N D I N G O F T H E C U R R E N T B U S I N E S S M O D E L . B E F O R E B R I D G I N G T H E D I G I T A L G A P, O R G A N I Z A T I O N S H A V E T O Q U E S T I O N T H E M S E L V E S I F T H E Y A R E D O I N G T H E R I G H T T H I N G .

B E S I D E S H A V I N G A D E E P U N D E R S T A N D I N G O F T H E B U S I N E S S M O D E L , D E C I S I O N - M A K E R S H A V E T O G U I D E E M P L O Y E E S , B E P A T I E N T A N D L A S T B U T N O T L E A S T : L I S T E N T O T H E C U S T O M E R . O N L Y T H E N , A D I G I T A L T R A N S F O R M A T I O N W I L L B E S U C C E S S F U L .

DIGITALTRANS- FORMATION

BRIDGE THE DIGITAL__GAP

NICO LUMMA

SASCHA PALLENBERG JOACHIM SKURA

DION HINCHCLIFFE JAANA RASMUSSEN

HARALD SCHIRMER JOCHEN SCHNEIDER

STEPHAN GRABMEIER MONIKA SMITH

MARCUS RAITNER

SVEN SEMET DIRK KEDROWITSCH

FELIX GOESSL

CHRISTIANE BRANDES-VISBECKManaging Partner at Next Media Accelerator

Head of Digital Transformation at Daimler AG Evangel iz ing transformation of business to digital whi lst engaging their employees. Oracle Corporat ion

Digital Thought Leader , CXO Advisor , IT Expert , Professional Speaker , Book Author , ZDNet Commentator , Industry Analyst

Coaching & Faci l i tat ion at Rasmussen Consult ing – Story Development

Manager Digital Transformation & Change at Contental AG - Leading Change Ambassador

CEO & Co-Founder s i :cross – Senior Manager SAP

Author , Speaker , New Work, Innovation and Sustainable Business Transformation

Purpose to Impact Coach, Company Bui lder & Advisor , vagabond at heart

Managing Partner at Next Media Accelerator

Business Development Manager at Assima & Thought Leader IBM Watson

Managing Director at thjnk

General Manager , Turnaround and Transformation Leader

Managing Partner Ahoi Innovationen GmbH and book author on Digital Leadership01

DTDIGITALTRANS- FORMATION

BRIDGE THE DIGITAL__GAP / DIGITAL TRANSFORMATION

BRIDGE THE DIGITAL__GAP / DIGITAL TRANSFORMATION

NICO LUMMAManaging Partner at Next Media Accelerator

Transformation in a hyperconnected world is not easy, but has to be done. There is no better time to do it than now, because the digital transformation won’t wait until a company is finally ready for it. This transformation takes time and effort and things will go wrong. We cannot predict where we will be in 5 years from now, not even in 2 years. So decision-makers have to listen to their customers and to the market in general to understand what is happening and how their company has to change. There won’t be this one golden shot to get it right, there will be thousands of small steps and a lot of them will be wrong and have to be changed quickly. But that is how we grow and evolve as humans and this is also true for corporations. We will be at the beginning of the digital transformation for quite some time and decision-makers have to understand that they are guiding an organization through a process that just takes time.

A solid strategy can help build understanding of what will be going on in the near future with the company. It can help set expectations and also overcome frustrations that will arise during the phase of transformation. If the CEO doesn’t get it, get a new CEO.

There won’t be one golden shot

B A C K

SASCHA PALLENBERGHead of Digital Transformation at Daimler AG

The objective of Digital Transformation is to minimize work and efforts. There is nothing more fulfilling than creating space and time that can be used for something new.

The speed-up is a big challenge, especially for the automotive industry, the complexity comes when mechanic, analog, long-time living parts are combined with short-term living modules. Digital Transformation requires flexibility and especially modularity. Once a company integrates fast OTA updates, the opportunity to exchange parts very fast does not only transform a company, in transforms an entire product, even while such is with the customer. It offers a unique experience.

Get out of your comfort zone. Even out of your own industry. Learning from successful projects from other industries can open completely new horizons. There are enormous opportunities out there. But you need to go for it.

Get out of your comfort zone

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DION HINCHCLIFFEDigital Thought Leader , CXO Advisor , IT Expert , Professional Speaker , Book Author , ZDNet Commentator , Industry Analyst

Successful digital transformation, which takes commitment, steady leadership, and investment has enormous rewards, from avoiding disruption and increasing brand relevance. New revenue streams and growth opportunities are also opened up.

While many factors are important, such as talent, leadership, nimble technology foundation, and culture change, the single — and most often changing — factor is what customers want and need when it comes to new digital products and services. That is why decision makes should focus on customer-centricity. We used to focus more on tactical digital improvements to our businesses. But now that digital is infusing everything in our business, it’s become key to focus on purpose to understand what we are doing and why we are doing it as we engage in digital transformation. It’s a key element of being customer-centric.

Re-assess yourself honestly in digital terms, both in terms of technology and people, then benchmark your organization against the digital proficiency of high performing companies in your industry or closely-related fields. Then take the resulting gap and create a plan that is sufficiently bold and of sufficient scale to address the issues. All of these steps are hard, but the payoff can also be enormous.

Be customer-centric

BRIDGE THE DIGITAL__GAP / DIGITAL TRANSFORMATION B A C K

HARALD SCHIRMER

Transformation starts with questioning the own stabilizing factors. Our organizations developed an

immune system to protect themselves from uncertainty, complexity, creativity and “disruptive change”

- to deliver stability, quality, predictability, reliability, to be able to manage the input and control the

output. Rules, Roles, Processes and Tools are part of this protection system. In order to change this

system, those have to be questioned. Building transformation on strong values delivers the “glue” or

the stability in times of disruption.

The constantly growing number of rules and constantly changing frame conditions are just slowing

us down. The beauty of purpose is that it is holistic and sustainable and flexible. It allows us to do

different things in different ways but still staying on a common path. Successful transformers have

many questions - desperate to listen and learn. Step back from trying to manage people, quit thinking

“my people are not ready or capable” - they all are. Maybe it’s you not building the trust or skills

needed. Get out of your comfort zone and start YOUR personal learning journey. Become a role model

for networking and connect to people outside of your company.

Question your immune system

BRIDGE THE DIGITAL__GAP / DIGITAL TRANSFORMATION

Manager Digital Transformation & Change at Continental AG Leading Change Ambassador

B A C K

STEPHAN GRABMEIER

For me, it is more about the whole sustainable transformation. When we talk about digitalization, we need to do this in a sustainable way. We need to take our responsibility for sustainability to be able to create the future. Taken this into account, Digital Transformation has to be part of the business strategy. It is a part that affects the whole system and therefore, you need corporation within the whole organization.

If you want to take your Digital Transformation to the next level, corporation within the entire organization is key. A ´we-setting´ has to be created in which every individual understands the purpose behind the transformation and is willing to cooperate. You need to be able to answer to what the purpose of your company is. This does not only have to be on corporate level, but can also be on collective, associate, social systems and more. To cover the purpose, you have to answer questions such as why, which products, how, what is your market, where are your customers, the society and humans. Society and humans represent all. Around the planet and the responsibility to do with it.

A sustainable digital transformation

BRIDGE THE DIGITAL__GAP / DIGITAL TRANSFORMATION

Author , Speaker , New Work, Innovation and Sustainable Business Transformation

B A C K

MARCUS RAITNERAgi le Transformation Agent at BMW Group

First of all, the so-called ´decision-makers´ should have in mind their limited creativity and ingenuity compared to the wisdom and ingenuity of the many great people they have in their organizations. In a world becoming more and more complex, the decision maker has to understand that their ultimate decision is to increase the variety of their organization in order to match the outside complexity. And this means, that their job is to create an environment, where everybody can and will make great decisions.

Purpose is the most important ingredient for decentralizing decisions. Without a common purpose decentralized decision in agile organizations will result in chaos. The tricky part about purpose is that it cannot be imposed from above; it has to be the result of a joint effort of shaping the organization’s future.

Do not use yesterday’s logic to measure and compare your digital business models for tomorrow. Think big and different. Be courageous. Act fast, but have patience. So far, we only have witnessed the disastrous impact of the lack of such a strategy, e.g. with all the catalogue retailer we had in Germany a few decades ago. All of them with the exception of OTTO are gone under the pressure of Amazon. A Digital Transformation strategy is of course optional, survival is also not mandatory.

A joint effort of shaping

BRIDGE THE DIGITAL__GAP / DIGITAL TRANSFORMATION B A C K

SVEN SEMETBusiness Development Manager at Assima & Thought Leader IBM Watson

When it comes to transformation, it is important to work in two directions. First of all, know what´s going on in the market. Especially when it comes to all new technologies that are around and the data that is available. The second is to search for top talents within the company and establish forward-thinking groups or innovation leaders, who will get the time to think about how new technologies and use of data can strengthen the purpose or improve programs within the company. These groups have the authorization to spend money and time on new ideas and control how the current and future customers would react on these new investments. The internal and external factors are very important and they are the foundation of digital transformation.

To make innovation successful corporates, universities, start-ups and competitors, should work together. With the fast-moving world we´re living in and the speed of consumers, companies are not always able to adapt innovations as fast as possible. Therefore, they should combine their knowledge to adapt new technologies. Also, businesses should search for communities and societies where knowledge sharing happens. If I´m working on my own transformation, I should attend discussions and work as participant.

Share knowledge with communities, societies and even competitors

BRIDGE THE DIGITAL__GAP / DIGITAL TRANSFORMATION B A C K

CHRISTIANE BRANDES-VISBECK

Digital Transformation will only succeed, when there is a true commitment to transforming everything and everyone that is needed. This means there needs to be a common goal or vision, better even purpose can be a strong driver. Be thankful for the status quo before you begin to transform it. Make sure that everyone feels safe and secure under the way. Find a personality that is strong, has a very good feeling for people and hidden agendas, and that is confident enough to coach/guide everyone through the process.

When people disagree on the how, they will need to go back to the why - reassure the common ground before proceeding on the factual level. This is why I work with narratives as a purpose establishing communications tool.

A solid Digital Transformation Strategy provides value. The value of flow. The value of togetherness. The value of impact and making a difference. The value of free decision making within a variety of people on the basis of certain rules and principles. The value of an innovation friendly and output orientated working environment.

A strong personality and values

BRIDGE THE DIGITAL__GAP / DIGITAL TRANSFORMATION

Managing Partner Ahoi Innovationen GmbH and book author on Digital Leadership

B A C K

JOACHIM SKURA

How to adapt and turn technology into productivity

Evangel iz ing transformation of business to digital whi lst engaging their employees. Oracle Corporat ion

BRIDGE THE DIGITAL__GAP / DIGITAL TRANSFORMATION B A C K

Companies need to reinvent themselves over and over again. Getting digital means questioning your

organization and not just do the same old with new technology. This can be done in big steps, but also, in

impactful small steps, too. Regarding the “How?”, many organizations are lost and don’t know the triggers which

can turn technology into productivity. Together with the WHU – Otto Beisheim School of Management we ran a

global survey (N= 6.450) and now have proven fact on the How.

To stay ahead of the competition, organizations need to adapt. Therefore, organizations really have to ask

themselves a variety of questions: ¨What is our digital strategy, how do we put in reality?” “Do we foster a

participative Leadership?” “Do we take advantage of data driven decision making? ¨ Questions like these can

unlock the potential to adaption.

Employees are able to achieve outstanding results with projects they truly believe in. But new ideas need to

contribute to an overall business case, or they will fail on the long run. And it is exactly this joint effort, the great

ideas of humans leveraged by technology/tools which will build something new and better. Adaption to me is

the better word than “agile”. Adaption is natural. And adaption, usually leads to something new and better.

JAANA RASMUSSENCoaching & Faci l i tat ion at Rasmussen Consult ing – Story Development

Because of the unprecedented speed of development in digital transformation, automation and AI, decision-makers need to be able to decide and lead within VUCA. Best practise solutions from the past are not helpful in today´s fast moving world. Thus, decision-makers need to be able to deal with VUCA and decide in uncertainty. Customer centricity and value-driven leadership are key to a sustainable business; therefore, decision-makers need to listen very carefully to all of their stakeholders on a daily basis. Social Media and Social Networking Platforms provide the possibility to interact with customers and colleagues and should be used strategically.

Psychological safety makes teams successful in Digital Transformation and people need to feel a certain level of safety to be able to work successfully and contribute to organizational goals. For employees it can be extremely frightening to work in an environment where they do not know if their expertise is still needed in 12 months or an automated system will do the job. Purpose therefore provides the safety people need to do their jobs and feel secure within their working environment. Use storytelling to create purpose and communicate the values of your company to stakeholders. Communicate clearly and as early as possible about the roadmap of the digital transformation in the company.

Psychological safety

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JOCHEN SCHNEIDERCEO & Co-Founder s i :cross – Senior Manager SAP

The hard thing executing on a strong digital strategy is that the strategy focuses on digital improvements and innovation but to move from strategy to execution, you need to focus on people. A successful digital transformation needs a culture change. You have to understand the needs of your employees as well as your customer expectations. Your values have to be in line with your long-term goals.

The greatest value a Digital Transformation has to your business lies within the process of transformation. It makes a company a tech driven but living and breathing organization. To leverage more of the digital potential, you have to focus on the human side of your enterprise, foster fluid organizations and strengthen an internal and external ecosystem. People in charge need to focus on trust, giving their employees the freedom, space and budget to experiment. This means decision-makers will not be defined by hierarchies but can emerge everywhere.

A successful Digital Transformation is much more about a business transformation than digitalization. Change relies on changed behaviours, needs clear and reliable communication and a culture of trust.

Psychological safety

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MONIKA SMITHPurpose to Impact Coach, Company Bui lder & Advisor , vagabond at heart

Digital Transformation needs to be value-based. Leadership often still works from a top down approach. It is crucial to realise that the decision-makers, those who lead and provide guidance can also be within the teams. Because its them, who are usually close to the customers.

The purpose is the very foundation of a culture. It connects to digital transformation by nature, as we humans as a species evolve towards automatization. A Purpose is a necessity of a successful digital transformation, as it motivates people and gives orientation towards one common goal.

Without a solid digital transformation strategy, a future company cannot deliver value to customers and society. It is necessary to get a clear picture of why you struggle with the digital transformation. Find your reason why and what for. Do company culture work. Enable your teams. And start looking for outside of the box solutions. Team up with an experienced agile and transformational coach as well as a great team of digital practitioners.

Decision makes can be within the team

BRIDGE THE DIGITAL__GAP / DIGITAL TRANSFORMATION B A C K

FELIX GOESSLGeneral Manager , Turnaround and Transformation Leader

Most companies merely scratch the surface. While companies know quite well what their consumers want and look for, as this can be generated from solid old school market research, they face three big challenges when translating that knowledge into a successful digital transformation: 1) lack of experience / digital knowledge, 2) lack of organizational capacity and 3) lack of harmonization / integration (from prices to data etc.). To address these challenges and to push Digital Transformation, companies should: 1) allocate the necessary budget to the project, 2) adjust internal infrastructure (appoint a dedicated team) and 3) ensure technology and IT systems are up-to-date. Surprisingly, most of the companies out there don’t have a purpose formulated at all. However, a purpose goes above and beyond digital transformation and should be a basic prerequisite for any organization. The point is: find yourself a compelling purpose first, then address Digital Transformation. When it comes to Digital Transformation, it is crucial that the CEO owns the project. If you don’t manage your digital transformation well, you put the whole company in danger. That goes across all kinds of businesses, even a hairdresser who doesn’t pay attention to his/her Google reviews might get a negative surprise some day. So for me the value is to stay competitive.

I have lived through a situation where a company had to cope with a significant loss in sales, because they underestimated the importance of ecommerce and Amazon. At that time Amazon was already the fifth biggest retailer in the US. Now they are #3.

Purpose first, then Transformation

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DIRK KEDROWITSCHManaging Director at thjnk

Sometimes I feel that companies are developing a business strategy specifically for Digital Transformation. In my opinion, a solid corporate strategy with all its facets in its implementation is the elementary prerequisite for corporate success. Digital Transformation is actually nothing more than a permanent (further) development of one’s own company. Digitalization now confronts decision-makers not to use it as a side, but as a core. The decision-maker must be put in a position to constantly change perspectives. Due to ever more complex target groups, changing media behavior, but especially due to the consumer’s new self-confidence, these perspectives differ more from each other.

Without a business purpose, a company has no right to operate in the market. No Digital Transformation can be successful without authorization in the market. If the consumer does not understand the purpose, the benefit, the necessity of a company and its products, he ignores them.

If it is possible to clearly communicate the purpose, the motive, to all persons involved in the transformation, everyone pursues the same goal. And with the necessary motivation that a digital transformation demands from all those involved.

Need for permanent further development

BRIDGE THE DIGITAL__GAP / DIGITAL TRANSFORMATION B A C K