Digital culture as a success factor: change comes from within

Successful digital transformation requires more than just technological innovation: a deeply rooted digital culture is also a must. This means a culture of values, standards and working methods that are shaped by new technologies. Cultivating a digital culture is far from a trivial matter – in fact, it’s crucial for a company’s longterm commercial success, says ERGO CDO Mark Klein.

What springs to mind when you hear the word “culture”? Art and creativity? Traditions and customs? Values and standards? Culture is a multifaceted concept that encompasses many aspects of our daily lives and has deep roots in our societies. Culture shapes our identity, and how we think and act. Moreover: it never stands still, but is always in flux. Digital culture is a prime example.

The term collectively refers to the values, standards, behaviours and working methods within a company that are shaped by the use of new digital technologies. Digital culture is the backbone of every digital transformation process. Both aspects need to be addressed as a part of a holistic approach, because one cannot succeed without the other. Successfully establishing a digital culture within a company is anything but trivial, and is one of the greatest obstacles on the path to successful digital transformation.

Making new technologies and tools available is not enough

It is assumed time and again that a company can create a digital culture overnight simply by making new technologies and tools available. Far from it. Both digital transformation and the establishment of a digital culture require a clear vision and corresponding objectives. Digital transformation can allow a company to optimise its processes, boost efficiency and improve its competitive standing, for example. This can be achieved using new technologies such as artificial intelligence (AI), robotics, voice bots and process mining.

The digital culture also defines the mindset and values that employees need in order to turn the vision of digital transformation into a reality. It illustrates how colleagues can become empowered to use technology in the best possible way, improving how they collaborate, communicate and make decisions. What is more: it defines how to create a lasting environment in which innovation, lifelong learning and experimentation can thrive.

Sustainable change takes time

This process can’t be completed within a few weeks or months. Sustainable change takes time, consistency, and clear communication. The first step often involves demystifying technology and addressing employee concerns. They have to be able to understand exactly why new technologies are being used and why they themselves have a key role to play in the change process. The uppermost premise of digital culture is always: it’s all about people. They need to be motivated and inspired. Because even the best technology will achieve nothing if it’s not accepted and applied.   

At ERGO, we’re pursuing a variety of approaches to successfully establish and further enhance our digital culture. Alongside a clearly defined digital strategy, we have had an agreement in place with our co-determination bodies on how to address digital topics and projects for years now. In particular, we have agreed on a dialogue format that aims to create transparency and arrive at a common understanding of the content and impact of the digital transformation journey.

Inclusion and participation are key elements 

Before new applications, for example those involving AI, are introduced, the relevant co-determination bodies are involved extensively and in a timely manner, and are given information, in particular, on whether or not, and if so how, the new application will impact employees’ duties, processes or training requirements. This ensures that the interests of each and every employee are always given due consideration, laying the foundation for successful collaboration based on trust. Because without trust, no change project can be a success.

We also have numerous measures in place to enable employees to try out and use new technologies on their own. In our view, inclusion and participation are key elements of a vibrant digital culture. Since this April, for example, we have offered our employees secure access to ChatGPT via our internal “ERGO GPT” model, allowing them to familiarise themselves with large language models and how they work. At the same time, in-house training is available on topics such as the metaverse, AI, and NFTs – digital title deeds – in an insurance context.

Regular information on new trends and technologies

We launched a new live format “//next Talk” this June, where I talk to leading experts about digital topics of the future in sessions that are freely accessible to everyone via LinkedIn Live. Our corporate magazines “next” and “Innovation Insights” offer specialist articles and analyses on a broad range of digital and transformation topics. The mailing list for our “Digital Factory Academy” now features more than 750 colleagues from across the globe, who hold virtual, informal meetings on e.g. digital topics twice a week.

For more than three years now, Digital has also been holding its divisional head meetings in virtual reality. And for more than seven years now, ERGO has offered a monthly in-house talk format, “digital.morning”, where employees can catch up on a range of topics, including the latest trends and technologies. In turn, employees share their own insights into how digital technologies have improved their day-to-day work in their role as users. As enthusiastic ambassadors for these technologies, they also encourage their colleagues to test the applications for themselves. 

In short, ERGO uses all internal and external channels – and images, text and sound, as well as face-to-face communications – to provide staff with information on digitalisation, address any questions they may have, and give them access to innovations.   

Employees are looking for ways to digitise themselves

Over the years, this has allowed us to make the transition from “push” to “pull” when it comes to new technologies. Today, ideas for implementing new use cases often come directly from the departments, as employees can see for themselves how much added value the technologies introduced offer, and are able to experience how these technologies can support them and ease their workloads. It is now employees themselves who are looking for ways to improve and streamline processes using digital technologies. That’s the essence of digital culture. As a good example, we now have a roughly one-year waiting list for robotics – that’s how popular these digital helpers, around 470 of which have already been implemented across the Group, are.

In addition to employee engagement, cultural transformation obviously also means the (top) man-agement has to change its behavioural and thinking patterns. Managers have to adapt their leadership styles to reflect the needs of a “digital workforce”. They need to see themselves as drivers for transformation and change. In the spirit of servant leadership, it is their task to remove obstacles and create space for ideas so that “digital talents” can take action successfully. But one of the most important things is for them to set a good example and test new technologies. After all, as the renowned Professor of Leadership John P. Kotter says: “Nothing is as effective as a good example at making people receptive to new ideas […].”

Summary: the digital transformation never ends

To summarise, the more targeted the approach a company uses to establish and enshrine its digital culture, the greater its chances of a successful digital transformation. And the advantages of this transformation process are obvious: the ability to inspire customers with straightforward, innovative and customer-centric solutions. Employees are relieved of routine tasks and can say goodbye to peak workloads. The company itself also reaps the benefits in the form of greater efficiency and effectiveness.

But there is no endpoint for either the digital transformation or the digital culture journey. Both are constantly changing and require ongoing development. After all, the Latin word cultura simply means “care” or “cultivation” of the soil. That’s why I urge you to cultivate your digital culture – the foundation of your financial success! 

Please note: This article was first published by Versicherungsmonitor.

Text: Mark Klein, CDO ERGO Group AG