Digital transformation as black ice that is becoming increasingly slippery<\/h3>\n
I maintain that digital transformation is a kind of slippery slope that is becoming increasingly slippery for many companies and especially for their managers. I can still remember when marketing started to create electronic offers and was able to do so without any results. <\/p>\n
Traditional advertising agencies in particular were true masters at talking themselves and the client out of even the thinnest digital campaign. Sentences such as “This won’t generate any sales directly, but will of course have a huge impact on the brand” generated intellectually affected nods of the head on the client side at the time. As if they had just found the Amber Room. Insanely profound strategy. New media. Yay! <\/p>\n
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If you then looked at the visitor numbers – who thought of conversions back then – from such exercises, you thought, well, the 890 visitors this week could all have bought and you wouldn’t even have seen that in the sales. But yes, they certainly made a huge contribution to the brand. For sure. <\/p>\n
You see, I thought it was pretty laughable at the time. But I went along for the ride. On the side of the digital service providers, because back then you totally benefited from such exercises. And it was all new and underdeveloped. A huge learning phase. For everyone. <\/p>\n
Today, these times are largely over. Very capable and attentive experts often work on the customer side. Controlling and data-driven decisions characterize the approach. That is a good thing. Today, you have to deliver in this digital transformation. And that means everyone: service providers and customers. With the relevance of digitalization, this has become a lot more difficult. I think that’s a very good thing, because it has increased the opportunities. <\/p>\n
Duty and freestyle<\/h3>\n
Although, as I have just learned, the obligation was abolished in figure skating in 2010, I would argue that it still exists in the digital transformation.<\/p>\n
The analogy between duty and choice in digital transformation is very simple: I see it as a duty for every company to digitize existing processes, products and business models. I don’t think any company can avoid this. It is tedious, unspectacular work that must first be undertaken to improve quality while reducing costs. <\/p>\n
We are talking about the digitalization of existing business. You can also draw on a great deal of best practice. And you don’t pull away from the competition per se, you usually start by catching up. So you use new technology to optimize your existing business. So much for the duty. <\/p>\n
The freestyle, however, consists of using new technology to generate new business or new business models. This is often associated, or should be associated, with paradigm shifts. This freestyle is what can create disruptive competitive advantages. Whether it actually happens depends on many other factors. The attempt alone is by no means a guarantee of success. <\/p>\n
From 0 to 200 to 20<\/h3>\n
Now I see many companies that want to jump straight into the free skate. This usually follows a certain pattern: Company X misses out on the technologically driven changes, i.e. the obligation to stay on the ice, until the situation becomes threatening. <\/p>\n
The management is replaced and a young digital native in management goes straight into the freestyle and fails to realize that with Company X he does not have to lead an agile, in a positive sense twistable start-up, but a relatively dusty company.<\/p>\n
A lot of money is invested in all kinds of projects, the CEO talks at conferences about the enormous digital transformation of his own company, while his company’s sales department still insists on order confirmation by fax.<\/p>\n
For a while, it’s all San Francisco. Then, however, the vibrant team is brought down to earth by something as simple as a BWA. In the worst-case scenario, this results in a change of management or a reorganization and dismissal of employees. <\/p>\n
What then follows is the laborious implementation of the obligation. Provided the reserves are sufficient. <\/p>\n
One thing at a time<\/h3>\n
That’s why, whenever I’m asked, I advocate baby steps. For one thing at a time in the compulsory exercise. Because God knows there’s enough to do. The biggest challenge in the “digitalization” of existing companies is always the employees. Not the IT. Not the finances. <\/p>\n
The compulsory exercise of digital transformation is a kind of diet for the company, like preparing for a marathon. Not that I would do something like that, but you have colleagues. You have to get fit. I always mention the very unpopular downsizing in this context. Depending on the size of the organization, you can only take the fittest employees with you. That’s hard, unpopular management work. <\/p>\n
The freestyle, i.e. the development and introduction of a new business model based on new (digital) technologies, is a tricky and lengthy process for existing companies. One that should not be approached unprepared. <\/p>\n
And so what every manager knows about mountain hikes and marathons is usually simply ignored for the much greater challenges in the area of digital business models. Your company needs preparation. This duty is the best preparation you and your company can have. Use it. <\/p>\n
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