COMPANIES HAVE TO BE MORE CONNECTED

The companies that are successful today organize their processes around the customer experience. They ask themselves: “What do we have to focus on so that our customers have a positive experience?” At the same time, they’re also opening up interfaces strategically in order to create opportunities for new collaboration. That is because decisive innovations do not always come from technology anymore – unfortunately for the technology powerhouse that is Germany – but through new processes, new value chains and new modes of collaboration. This means that companies need to open up and network more – within their own sectors, but also beyond their own communities with start-ups, competitors and policymakers. In short, with everyone that might hold some interest for their business and its future. This includes communicating with universities. Many of the digitally successful companies are closely connected to places where knowledge originates. Developer conferences are also recommendable. Here, announcements are made about where the interfaces are and how developers can create digital and analog solutions for products. The best part of this is that, if you’re successful, you have developers worldwide who will improve your product, but are not on your payroll.

Germany is great at research and it was and is the land of engineering. We’re in a great position when it comes to AI research, too. But when it comes to turning knowledge into actual innovations and founding new entities for practical applications, other countries are often faster. This is most likely a cultural difference. How much security do we need? How are failures judged? Who are our role models? The number of new entities being established has sunk continually in Germany in recent years. Students want to become civil servants, not entrepreneurs. Something needs to give here. It must.

Studies happened to reveal that successful digital companies hardly ever employ business consultants. They have developed a culture of solving their problems themselves. Using data experiments, or by simply trying things out. Or even just by listening: If a company wants to know what changes to make, then it’s advisable to listen to the top talent in the company – and to talented individuals who applied to their company but then decided to work for another. We should not only be asking why they turned the company down, but also consider it as an opportunity to develop and the starting point for the next project.

Many companies would also benefit from a little spring cleaning in their processes. There was a reason for the processes and rules when they were introduced, but sometimes the conditions change while the processes stay. It’s like a basement where everything piles up over the years. We’re quick to talk about agility and launch change programs, but eliminating ­redundancies and inefficiencies is a simpler and more cost-­effective solution.

Research shows that the people and organizations that we surround ourselves with have a big impact on our lives and our success. This is something we have control over. I recommend all managers to consciously spend more time with people and other organizations that have already achieved what they want to achieve. In such an environment, you need virtually no will power to learn. Habits, contacts, findings almost rub off automatically. You can set the stage for change in everyday life by inviting interesting people who are making a difference in your industry or in the world at large, attending innovation conferences, or hosting your own conferences. Successful companies are not successful because of their goals, but because of their systems, routines and processes. This is something worth exchanging information about.

German SMEs have always been able to successfully adapt to change. And I’m certain they will continue to do so. As long as we have a physical presence, we will always need excellent machines and production facilities – with a quality, reliability and performance that we have come to expect from German manufacturing SMEs over the decades. Building these machines requires complex abilities that are the envy of the world. If we can manage to connect the hardware a little better with the software, it will give us a competitive advantage that will be difficult to imitate. We have a number of world-leading companies, but not in the digital field. This has to change. Because great development potential lies in digital models.