| News | Interview | Exploring and shaping the digital transformation of companies through dialogue

Exploring and shaping the digital transformation of companies through dialogue

The bidt project on the digital transformation of engineering companies demonstrates how science and business can engage in productive dialogue. Professor Thomas Hess and Dr. Angela Graf from bidt and Dr. Holger Hackstein from Schenck Process discuss the promising outlook for companies undergoing digital transformation in an interview.

The lively exchange in the research project has given rise to new questions that the research team will address in the next project phase. The results should apply to real practical problems in organisations without being misunderstood as a one-size-fits-all solution.

How did you come together for the bidt project in early 2022?

Graf: In the research team, we were particularly interested in mechanical engineering companies because these companies focus intensively on technology — but not primarily digital technologies. Our hypothesis was that the identity of traditional mechanical engineering companies is being challenged particularly strongly by digital transformation. When we met Holger Hackstein, it quickly became clear that this could be incredibly interesting for both sides. Schenck Process is a leader in measurement and process technology with a 140-year tradition, so it was a perfect fit.

Hackstein: Absolutely. During the discussions with the bidt, I realised that I had never considered some aspects of transformation before, for example, how strongly digitalisation influences the company’s DNA — its identity.

What does corporate identity mean in concrete terms?

Graf: Corporate identity is the collective answer to the question: Who are we? It guides our actions and decisions in the corporate context and forms the basis for a sense of togetherness. However, awareness of this is not reflected daily; it only comes to light when the organisation is confronted with uncertainties.

Is the influence of digital technologies on companies really that great?

Hess: We have been observing this for over 40 years, and the influence has become ever greater. From a scientific perspective, we refer to the impact of digital technologies on companies as digital change. However, when a new technology, such as artificial intelligence, calls fundamental structures into question, we speak of transformation.

The first project phase consisted of several case studies. What did you find out?

Graf: Our studies with Schenck Process and other established mechanical engineering companies identified a strong affinity for technology and pronounced problem-solving skills. A radical reorganisation, a tabula rasa, would be inappropriate. The digital transformation must consider a company’s self-image and harmonise it with its vision for the future.

When a new technology questions fundamental structures, we speak of digital transformation of a company.

Prof. Dr. Thomas Hess To the profile

How do you shape research in the dialogue between science and business?

Graf: We have been meeting regularly for almost two years, and the discussions generate new research questions. We provide impulses for practice and offer an analytical view from the outside, without issuing instructions, and accompany the reflection process in the company. At the same time, we gain important scientific insights through our observations and analyses.

Hess: We have decided to continue our partnership and enter into a follow-up project even more openly. Instead of starting with a fixed research question, we will explore which practical challenges are particularly relevant and academically interesting.

The question of communication and participation will be part of the next phase of the project. How are you approaching this?

Hess: In the next phase, we want to learn, among other things, when a participatory approach is appropriate and when it is not. The interesting thing about our approach is that we are working with the company to tackle issues that have not yet been resolved. We develop and test new approaches through dialogue. Our methods range from classic social and economic science methods, such as document analyses and interviews, to ethnographic observations and even design-oriented research methods, as they are known from engineering.

Hackstein: Specifically, for example, we face the challenge of reaching all employees, especially those without daily PC access, such as in our production unit in Darmstadt. While many of us regularly check emails or the weather online, some employees are cut off from digital resources in the work context due to their operational activities.

What are you particularly excited about as the project progresses?

Hackstein: I think it is important that the shift towards digitalisation is understood and accepted throughout the company. This task is not easy in the mechanical engineering industry, where a more traditional understanding of work often prevails.

Hess: It will be interesting to see how communication strategies must be designed to succeed in transformation processes. This is an area that has been little researched to date.

Graf: Our project deals with one of the major challenges of our time: how can established organisations transform themselves digitally? We want to contribute to a better understanding of the complexity of such change processes and, together with practitioners, develop ideas for a successful transformation involving employees. However, there will be no one-size-fits-all solution. We can formulate general approaches and concepts that help organisations to identify the most suitable paths for them and avoid unintended effects. However, the implementation must be tailored to the self-image and needs of each organisation.

Thank you very much for the interview!

Prof. Dr. Thomas Hess

Member of bidt's Board of Directors | Director of the Institute for Digital Management and New Media, Ludwig-Maximilians-Universität

PD Dr. Angela Graf

Research Coordinator and Research Project Leader, bidt

Dr. Holger Hackstein

Dr. Holger Hackstein

Chief Digital Officer, Schenck Process