"Good day, Ms. Digital Minister..."
... or of course also "Mr. Digital Minister" will hopefully be the case after the elections on September 24, 2017 in Berlin. Unfortunately, Germany ranks a completely inadequate 20th place within the EU in terms of progress in digitalization. The new ministry must promptly propel Germany forward. With a fulfillment rate of only 46.2%, Germany is significantly below the average of all 28 EU states (54.9%), as indicated by the most recent independent report from the Normenkontrollrat. With over 80%, the digitalization champions Estonia and Finland lead the ranking, while our neighbor Austria achieves an excellent 70%.
Digitalization - what is it actually?
I have my doubts whether there is any consensus on what "digitalization" actually means. For some, it's about fast fiber optic cables and widespread internet access, for others it's the transformation from process chains to a networked corporate structure. Some believe that employees should come up with innovative suggestions. And someone else has heard the magic word "Customer Centricity" and is planning a complete alignment of the company towards the customer. The most progressive ones then talk about "AI", Artificial Intelligence, which physicist Stephen Hawking warns will destroy humanity.
Welcome to the Polylemma
As often is the case, this is not a dilemma where one has to choose between two options, but rather a polylemma: many possibilities with various options... As if that weren't complex enough, I am also certain that digitalization is only half the truth, as it is often understood in a very technical manner. It is much more important to take people on the journey and not to forget about the future at the platform.
5 to 12
Either way, the Normenkontrollrat comes to the unflattering conclusion that it is "5 to 12 or later..." While currently five ministries are still trying to deal with the usual competency issues regarding digitalization in Germany, I hope for a clear commitment from the new federal government on this topic, including clear responsibilities and budgets. A Next-Generation-Board should awaken skeptics and hesitators and dissolve the silo thinking in departments, factions, and clubs. Do not fear nerds, we need diversity and individuality here. The increasing hacker attacks threatening our world show that this is vital in the coming years.
Who is responsible for this?
In the meantime, it is worth looking at companies. In a McKinsey study, 84% of top executives state that innovation is absolutely crucial for success. However, only 6% of executives are satisfied with the innovation performance of their companies. What a huge gap! Who is actually responsible for innovation? The three most common answers are all dramatic: 1.) "everyone" 2.) "the boss" and 3.) "marketing". Those who neglect innovation in such a careless manner should not expect miracles. I am convinced that a dedicated department at the management level should handle the topic of innovation with full competence.
Something was missing in the Chancellor's debate!
Millions were glued to their TV screens hoping for an exciting round of debates between the candidates, well, it was rather nice... I was waiting the whole time for the discussion to finally focus on the future, innovation, start-ups, and digitalization – I waited in vain and am just as disappointed as I am angry. I want to see Germany finally where it belongs: in a good ranking position in the next European digitalization report. There is no time left for four more years of discussions, it is time for action, because it is 5 to 12.
Stephan Jung is an author, lecturer, innovation expert, CEO of the InoventiQ Group Hamburg/Berlin. He was recently invited by the government of Ukraine for discussions on Smart Cities and Innovation. Currently, he is in Los Angeles, where he will be speaking at the global H.E.R. Summit on Innovation and Social Responsibility, and will also meet with government officials from the USA and other countries.