In this interview, Martina Dimmler provides insights into how Reichle & De-Massari (R&M) is undertaking its digital transformation. R&M is a leading global cabling and connectivity solution provider for high-end-communication networks. R&M serves a wide range of industries in the sectors of Local Area Networks, Data Centers and Public Networks.

This interview will be published in two parts. Part 2 will follow in 2 weeks.

Can you provide an overview of the digital strategy assessment? What was the context? What were the key findings and recommendations?

The digital strategy assessment was conducted from August to December 2024. The main objectives of the project were to enhance the company's digital presence, improve customer engagement, streamline processes, and leverage new technologies to foster innovation and agility. The assessment began with a thorough review of R&M’s business and digital maturity, using expert interviews and workshops to pinpoint major challenges. Based on these insights, a digital strategy was created to align closely with R&M’s overarching strategy. The process concluded with the definition, categorization, and prioritization of strategic initiatives needed to realize the desired future state. The assessment revealed several areas for improvement in the digital strategy, such as the need for more consistent processes, stronger digital capabilities, and better data management. It also identified opportunities to optimize collaboration and coordination across regions. At the end, ten strategic digital initiatives were then identified and prioritized. Every of these initiatives has clear business cases, timelines and accountabilities. Critically, we were strengthening the IT function's central role and competencies, addressing gaps through organizational adaptions, targeted hiring and establishing vital governance bodies.

How does digital transformation impact the overall business model and strategy of R&M? What are the main elements of this transformation?

From my viewpoint, digital transformation is a fundamental pillar within R&M's business model and strategy, aligning with our focus on being a solution provider for data centers and end-to-end solutions for LAN and FTTx applications while improving efficiencies. Our digital strategy is derived from these business goals and prioritizes modernization and building the groundwork for further digitalization We expect significant outcomes, such as: enhancing customer experience, increasing revenue, leveraging technology for greater efficiency, boosting employee productivity and engagement, fostering innovation, and strengthening our competitive advantage.

How do you see digitalization contributing to the company’s long-term competitiveness?

Digitalization is mandatory for the long-term competitiveness of businesses like R&M. It's crucial for achieving speed and efficiency, allowing us to automate, compensate for resource gaps, reduce human errors, and foster scalability and global harmonization. This transformation also enables a faster time-to-market for our products and supports the optimization of our product portfolio, ultimately drives overall organizational efficiency and strengthens our competitive advantage.

What are specific challenges regarding digital transformation for Small and Medium-sized Enterprises (SME)?

Small and Medium-sized Enterprises (SMEs) encounter specific challenges in developing digital strategies, primarily due to limited financial resources and a lack of dedicated resources to drive transformation. A significant hurdle is that many SMEs have not developed a digital strategy or master plan, exacerbated by a lack of digital talent and expertise. Furthermore, legacy systems often impede progress, and overcoming cultural resistance to new working methods is crucial for successful digital adoption.

How do you ensure cross-functional alignment and buy-in for the digital roadmap?

We ensure cross-functional alignment and buy-in for our digital roadmap through several key mechanisms. Global Process Owners serve as a critical alignment instance across different functions, helping to clearly define the scope of initiatives. This is complemented by intense stakeholder management and the establishment of a Digital Board, which includes representatives from various business units and the Executive Board to steer transformation efforts and align priorities. This structured approach, where project ideas are vetted by Global Process Owners before being presented to the Digital Board for evaluation and Executive Board decision, guarantees consistent strategic alignment and broad organizational commitment.

How does the IT function play a crucial role in the successful implementation of digital transformation? What gaps were identified in the current IT setup, and what recommendations were made to close these gaps?

The IT function is critical to the successful implementation of our digital transformation, acting as a strategic partner and not merely a technology implementer. Our assessment identified key gaps in setup, capabilities, and strategic mindset. To close these gaps, we are undergoing organizational adaptions, hiring experts for crucial roles like data engineers and enterprise architects, and establishing key governance bodies such as the Digital Board and Architecture Board. These actions are fundamental to enhancing our IT capabilities and ensuring the pivotal role of the IT function in driving our digital future.

About Martina Dimmler

• Since 2022 CFO Reichle & De Massari Group
• 2018-2022 Head FP&A and Group Finance, Deputy CFO, Bucherer Group
• Further positions: Head Group Controlling & Performance Mgmt. Projects, SIX Group;   Head Group Controlling, IT und Legal, Saurer Group; CFO, Sulzer Mixpac Systems; Various positions at Sulzer Group und SIX