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3 months ago

Studie: M&A Treiber für die digitale Transformation

Eine klare Digitalisierungsstrategie ist entscheidend für die erfolgreiche digitale Transformation des Geschäftsmodells von Unternehmen. Um ihre digitalen Fähigkeiten zu erweitern, setzen die deutschen Unternehmen auf den Zukauf von Know-how.

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transform. The relative strength of the German economy in recent times – and indeed the global economy for international businesses – may have left companies in a comfort zone where growth has been achieved without any need for definitive digital transformation. However, such complacency carries significant risk – and businesses may find themselves left behind. As Chancellor Merkel said in May 2018: “We’re at the start of a fundamental development, like the beginning of industrialization. Now we have the duty to extend our great industrial strength into the digital era. That’s not trivial.” 1.4 Acquisitions at the heart of strategy In the race to embrace these different forms of digitalisation, organic growth is one option, with many businesses building on their early forays into the digital space, continually adding new capabilities through innovation and recruitment. In many cases, however, this is not delivering the step change that the leaders of these organisations now require – and certainly not at the speed needed. Increasingly, therefore, they are turning to merger and acquisition (M&A) activity, accelerating their digitalisation by buying the functionality and innovation they have targeted. Figure 1 To what extent do you agree or disagree with the following statements? (5= strongly agree, 1= strongly disagree) Mean shown Acquisition of digital firms plays a central role in our strategy 3.97 Digital transformation plays a central role in our strategy 3.90 We have a concrete digitalisation strategy 3.61 Note: n = 150 Figure 2 To what extent do you agree or disagree with the following statements? Acquisition of digital firms plays a central role in our strategy 8% 21% 37% 34% Digital transformation plays a central role in our strategy 1% 5% 26% 39% 29% We have a concrete digitalisation strategy 13% 32% 35% 20% Strongly disagree Disagree Neither agree or disagree Agree Strongly agree Note: n = 150 8

“Acquisitions have become our priority for digitalisation,” says the CEO of one respondent in the study. “By acquiring the right target with superior digital technologies, we get direct access to capabilities that would otherwise take years to develop.” Indeed, when asked the extent to which they agree with the statement “acquisition of digital firms plays a central role in our strategy”, the mean answer was 3.97 where 5 was strongly agree. And nearly three quarters (71%) actively agree with the suggestion that acquiring digital firms now plays a central role in their strategy. 1.5 Taking responsibility How, then, do businesses step up their transformation efforts? One positive step forward will be to set out much more clearly who is responsible for driving the digitalisation agenda. Figure 3 shows that companies are most likely to regard transformation as the responsibility of top management or an internal panel of experts, with fewer opting to drive change through a standalone digitalisation function. This finding tallies with a recent study by Berlin’s University of Applied Sciences which stated that at least 40% of Germany’s biggest corporations including VW, Bayer and Allianz, have created a senior executive role to address the challenge of digitalisation. 4 Such an approach is valuable in that it reflects the prioritization of digital transformation by businesses. Certainly, the C-suite should be playing a significant role in driving change, leading the way on digitalisation initiatives throughout the business and across each of its functions – and definitely establishing the case for change. The arguments for establishing a digital function, led by a chief digital officer with a mandate from senior management, are very strong. Given the backing of senior leaders, such a division has the power and the ability to cut across functional silos, looking beyond entrenched interests and attitudes. It brings digitalisation expertise and experience to every area of the business, rather than only in certain functions. And it provides a means with which to embed a new mindset throughout the organisation – the chief digital officer and their teams can constantly push for a move to a different type of culture, in which digital-first becomes an automatic instinct for the business, rather than an afterthought or an issue to be faced further into the future. Figure 3 Who is responsible for digitalisation activities in your firm? (5 = very responsible, 1= not responsible) Mean shown Highly responsible Not responsible 4.37 4.17 3.77 3.70 Note: n = 150 Top management An internal panel of experts Separate digitalisation team Each department 4 https://www.bloomberg.com/news/articles/2018-06-12/germany-needs-to-reengineer-to-thwart-digital-obsolescence 9

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Studie: M&A Treiber für die digitale Transformation