Digitisation is more than technology

The term “digitisation” is used more often and more inaccurately than any other buzzword today. It has to cover both the most important mega trend in our economy and society and simple improvements in corporate business processes. However, even in a corporate context, you need to delve more deeply when talking about digitisation to distinguish between two fundamentally different levels of action.

The first level is about adapting current business models and existing business processes to change in environmental conditions and customer needs, while the other level questions current business models and examines potential attack vectors from the digital industry and start-up scene.

Digitisation is thus often deemed as a purely technical matter and assigned to the IT department and IT manager. This is completely wrong and dangerous. Digitisation is the greatest and most important change project for any company; at stake is no less than the company’s future existence. Projects of this scale and signi cance need to be dealt with at top level by the CEO or board of directors.

Pressure to reinvent the company as it stands is high. Some sectors like banking and insurance or the retail trade are already embattled by pressure from digital giants like Amazon, Google and agile start-ups. In many cases, today’s competition will no longer be the same tomorrow.

One of the next disruptions driven by digitisation is the change in mobility – and thus also for the automotive industry which is so important to Baden-Württemberg. This powerful economic factor for the region can become a danger if a new course is not duly set and digital business models adopted.

The high proportion of manufacturing industries in Baden-Württemberg reflects this dependency and is cause for alarm. Digitisation is much more than technology. Digital business models can be scaled infinitely, while marginal costs are virtually infinitesimal; this is inherent to software, not to hardware. The region cannot afford to rest on its laurels, but must boldly tackle digitisation in the right way.