Enterprise Prototyping

Transformation with intermediate steps

Nico Michler
Oct 16, 2017 · 6 min read

The importance of the digital revolution has been recognised on the top floors in Germany. Large companies are acting defensively while startups and growth companies are becoming more agile and fast-paced.

There is no doubt: The importance of the digital change has meanwhile been recognised in German top level management. This is good news, as the significance of this topic has been underestimated up to now. However, the progress in implementing the digital transformation has still been slow. While German companies focus on defending their existing structures, startups that offer fast and agile solutions are shooting up like mushrooms and attracting public attention. The capital available in the market flows into these new channels undermining the business model of the established companies. Large companies are at their wits’ end, calling for pro-active help: “Action required — but what exactly?” Executives are unwilling to make the necessary radical decisions. Digital transformation processes are often not controlled by the board or the management. The root of the problem lies in the corporate structures. Today’s managers are conditioned to make optimal use of the existing structures and to continually optimise and increase margins and profits. The decision to invest in a business model which may cannibalise the existing model is not an easy one, especially if you want to make your shareholders happy. The question is rarely asked: What will happen if we don’t do it? Managers have traditionally shied away from making the radical decisions necessary for digitalisation. Furthermore, from our experience, in more than half the companies surveyed, digital transformation processes are not directly controlled by either the board or management.

Remove the fear. Create trust by testing a scenario. Foster smooth transformation.

Sustainability & commitment within the team and with the customer.

Speed, agility quotient, and error mentality.

Role model: Exponential Organisations (ExO).

designaffairs is an ExO.

Transformation with intermediate steps. Exit strategy.

China — A pioneer in transformation.

Converting enterprises into startups.

What technologies are needed?

How does digital transformation take us further?


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