Frank Strecker
5. January 2017 0

Digitalization requires action

According to a current study, managers are afraid that start-ups could become threatening competitors. But this is no excuse to fall into actionism – strategic thinking is required in 2017.

I recently came across a statistic which astonished me: 73 percent of all German managers are afraid that start-ups could become threatening competitors. The Dell study showed, that more than half of the companies are afraid that their business model could become obsolete in five years. This shows once again, that the pressure of keeping digitalization up to date is increasing.

Digitalization will change the corporate culture

Of course this does not mean to just digitalize quickly and without consideration. It is time to define a digitalization strategy and to start with the question „why“ instead of „how“; this also includes to obtain information about customers and competitors – like which digital services are arising? What do customers require nowadays? Because: Every new startup and every new disruptive business idea requires new expectations and changed target groups. So this forces companies to shape their business models and internal structures more flexibly. This also effects the corporate culture. And it is definitely a challenge to change it, but that is what digital transformation requires. Digitalization requires action – action from entrepreneurs!
Cloud enables you to optimize your existing business and implement new things, from the technical side. Even with manageable investments, the required speed and a maximum of security and scalability.

Optimize with the cloud

In such a way, for example, a real estate company could optimize its customer relations massively – without losing its traditional business model. The company customized its former IT landscape, which had five different CRM systems, timely and replaced it through a modern, central cloud solution. With a sales cloud, you are totally focusing on customers. However, a shipping company founded in 1924 knows, thanks to a cloud based tracking technology, at every single minute where its containers are and in which condition – cleverly devised transmission routes, from containers to the deck and via global mobile networks into Telekom’s Cloud, are in use. An insurance company simplifies its tendering and procurement processes for contract partners by using the cloud platform, this connects about 80,000 companies, 180,000 doctors, 2,000 hospitals and 22,000 pharmacies quickly, effectively and securely.

This shows how entrepreneurialism and actionism distinguish from each other. These innovations are built on expertise and completely aligned to customers and the business‘ efficiency. The companies implemented exactly what the survey revealed:

  • Changed customer requirements are the main cause for digitalization
  • If you want to enable new things, it has to be available at any time
  • At the same time, safety must be guaranteed and must not be affected by e.g. new mobile offers.

I would like to add one point: Compatibility of single solutions need to be ensured in a growing IT landscape. Someone who has to manage too many technology partners will quickly lose the overview. I would recommend, especially for mid-sized companies who not really know where to implement which solution first, to rely on providers who offer a broad portfolio from one source. And who also offer comprehensive and competent consultations, so the digital transformation succeeds. I would be happy to support you, in this matter.

Frank Strecker

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