In part 2 of 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.
The first part of the interview can be found here: Link
How does R&M plan to build digital skills and capabilities within the organization to support the digital transformation journey?
We are strategically building digital skills step-by-step within R&M through a dual approach. On the one hand we are hiring new people for critical specialist roles like data engineers and enterprise architects, to address identified capability gaps where the required skillset is not readily available. Nevertheless, we can hire only very selective roles. On the other hand, we are focusing on upskilling our workforce by e.g. establishing new part-time data analyst roles within business units, filled by current employees who will be trained. This strategy is designed to enhance employee productivity and foster the continuous learning essential for our long-term digital transformation.
Can you provide insights into the digital initiatives and roadmap for R&M? How were these initiatives selected, and what are the expected outcomes?
R&M's digital roadmap outlines a focused set of strategic initiatives, selected through management workshops and prioritized based on criteria like strategic fit, profitability, and implementation risk. These initiatives were categorized into market-focused, internal improvements, and foundational basic steps. The[ME1] expected outcomes are comprehensive: enhancing customer experience, increasing revenue, leveraging technology for greater efficiency, boosting employee productivity, and fostering innovation, all critical for strengthening our long-term competitive advantage.
What governance structures or leadership mechanisms are in place to steer digital initiatives?
R&M has established several key governance structures to steer digital initiatives and ensure successful transformation. These include the Digital Board, which aligns business-driven digital projects with strategic goals and tracks their progress. Furthermore, the Cyber Security Board addresses security risks and ensures compliance, while the Architecture Board guides key architectural decisions to maintain consistency and scalability. This comprehensive framework, supported by Global Process Owners for initial idea review, ensures strong strategic alignment and broad organizational commitment throughout our digital journey.
What have been the biggest challenges in moving from strategy definition to implementation?
From my viewpoint a primary hurdle are the limited resources. We also face a lack of digital skills and capabilities distributed across the organization, alongside issues with data management and the integration of IT systems. Ensuring continuous management buy-in and robust governance for implementation is crucial to overcome these obstacles and make the transformation a success.
How is the digital transformation affecting the company culture and mindset?
Digital transformation is ongoingly reshaping our processes and collaboration. Corporate culture is based on our value system, which must support digitalization, but remains unchanged as such. While there can be initial resistance, I've observed that buy-in increases significantly once employees experience tangible positive results, such as improvements in processes.
What advice would you give to other CFOs, or CEOs who are leading digital transformation in industrial sectors?
My primary advice to peers is to cultivate a close connection with the organization, ensuring a deep understanding of its current digital landscape and maintaining continuous, transparent communication and keep it aligned with the overall strategy. It is crucial to identify and empower allies across the organization who are receptive to change, providing them with clear strategic guidelines. Furthermore, establishing robust governance and diligent oversight for implementation is paramount, as this ensures coordination and accountability throughout the journey. It’s important to recognize that digital transformation comes with its price; achieving success requires a well-justified business case and a dedicated budget. Finally, always remember that digital transformation is a journey that takes time.
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