Digitalisation begins in the mind

The success of digital transformation is often determined by a company’s ability to adapt and willingness to innovate. Would you agree with this?

Alan Ettlin: Absolutely, as the basis for a digital transformation, these are decisive factors. But success depends on much more. It’s also about differentiation in the market, about how a company sets itself apart from its competitors. Clear positioning and an understanding of one’s own uniqueness – or rather individual strengths – play a central role. This is our starting point at bbv whenever we work with customers.

That sounds like a highly individualised approach.

Every customer has different requirements. Some already have an established strategic process, while others have hardly thought about it. For example, take companies that have been successful in their niche but are now faced with the challenge of adapting their strategies to a changing environment. This is where we come in. We ask our customers what their plan is for achieving market success in the future – or rather, what requirements they want to fulfil and how they can stand out from the competition.

What specific methods does bbv use to support companies in their transformation process?

Our consulting approach is based on the 3i model of Dr. Pascal Sieber and Sieber & Partners AG. The model helps to systematically approach digital transformations and is divided into three phases: Identify, Innovate and Implement. In the first phase, Identify, the aim is to reach a common understanding of the company’s current situation together with all stakeholders. This starts with the company’s vision: Where does it want to be in ten years’ time? On the one hand, we must clearly state the company’s visionary ambition, but at the same time develop realistic steps to achieve this. We do this with the strategy: How is this vision to be achieved? Which products, i.e. goods or services, will be offered now and in the future? How does the company stand out from the competition in the evolving market environment? In the second step, we look at the client’s value creation and identify the processes that contribute to implementing the strategy …

‘Technology is never an end in itself. The focus is always on supporting the business model through digital means.’

Alan Ettlin, COO of bbv

… as well as the technologies?

Technology only plays a key role afterwards, in the third step, but – and this is crucial – it’s never an end in itself. The focus is always on supporting the business model through digital means. It’s only with this shared understanding of the vision, strategy, value creation and the technologies currently in use that the second phase, Innovate, follows, in which we develop innovative approaches for the further development of the company.

There is often a fine line between the sensible use of technology and technology for its own sake. Where do you draw the line?

In the Innovate phase, in particular, we distinguish between a technology push and a business pull approach. The former happens when a technology emerges and we consider how it can be used meaningfully – as is the case today with generative AI, for example. In business pull, on the other hand, we take the company’s business needs as our starting point and look for development potential in the business model that can be realised with the help of technology. Both approaches are possible, but they also clearly show that digitalisation does not start with IT, but in the mind – with the company’s vision and strategy. In the Innovate phase, we engage in this interaction between technology push and business pull until we have developed the most promising digitalisation scenarios together with our customers.

How do customers react when they realise that they first have to reassess their business strategy before they can start looking at technology? Isn’t that sobering?

The first reaction is often: ‘We already know that.’ But our experience shows that customers who are prepared to engage in this dialogue with us generally develop a much clearer picture of their actual activity, demand and supply. This shared understanding and common language form an essential basis for an effective and efficient digital transformation – according to Peter Drucker: ‘Doing the right things right.’

bbv as an eye-opener?

We don’t tell our customers how to run their business. Nevertheless, they benefit from our questions, which often come from an external perspective. And they realise that they can achieve a much greater impact for their own business by applying a more strategic approach to digital transformation. Of course, we don’t take all our customers through the entire process from development of a vision to an operationally beneficial digital solution. However, customers who take advantage of this offer receive more than just a one-off solution. They get a solid foundation for successfully managing their business in the digital transformation.

Do you nevertheless also encounter resistance and reservations?

There is always resistance, but it’s usually subtle. It’s not about open opposition, but about subliminal attitudes.

Can you give us an example?

Take, for example, the phenomenon of projects being called into question or downplayed. When someone says: ‘This doesn’t affect us’ or ‘that wouldn’t work here’, this is often a sign of subliminal resistance. Or when successes are not celebrated, rather seen as a chore – like: ‘It’s just as well we didn’t get this order, that would have been stressful.’ Such signals are important and must be heard.

How does bbv deal with this?

People are creatures of habit, and many people are afraid of change. Our approach is to recognise this resistance at an early stage. We work very closely with our customers to identify these dynamics and deal with them appropriately, often through open dialogue about fears and uncertainties. A good change process involves all employees and other relevant stakeholders and creates acceptance.

How far ahead does the planning horizon extend in the 3i model?

It’s primarily in the third phase, Implement, where we evaluate and approve the scenarios we have developed and incorporate them into a strategically integrated roadmap, that we combine short-term successes – the well-known ‘quick wins’ – with the pursuit of long-term, strategic goals. This allows results to become visible quickly, while at the same time initiating sustainable change. Depending on the size and culture of the company and the strategic scope of the selected scenarios, the planning horizon of such a roadmap can vary greatly – from a few weeks to several years.

Flexibility seems to be an important part of this process.

Especially with a long planning horizon, we continuously adapt our approach and priorities to developments and the changing needs of the customer. The model helps us keep track of things and respond quickly to changes. Overly rigid planning would be counter-productive. In a complex environment, we experiment in small steps, evaluate progress and make adjustments where necessary. This enables us to achieve a dynamic yet focused transformation.

What recommendations do you have for companies that are at the beginning of their digital transformation journey or are consciously rethinking it?

My advice is not to look at digitalisation in isolation. It should be an integral part of the corporate strategy and operational activities, not something that is done in addition. It’s not about developing a ‘digitalisation strategy’ or appointing a ‘digitalisation officer’, but about integrating digitalisation into all areas of corporate management and development. When digital thinking becomes part of the company’s DNA, the course is set for a successful transformation.