Success factors for digital transformation

Master's Thesis from the year 2018 in the subject Business economics - Controlling, grade: 1,3, Wiesbaden University of Applied Sciences (Wiesbaden Business School), language: English, abstract: The main goal of this thesis is to thoroughly investigate what digital transformation is and which general success factors exist for businesses. It then collates in a concise way whether and to what extent selected German car manufacturers comply with these success factors. "Once a new technology rolls over you, if yoüre not part of the steamroller, yoüre part of the road"¿ - Stewart Brand This metaphor skillfully illustrates what happens to businesses that do not take part in technological progression: they get obliterated. In addition, the cycle of new technologies is spinning faster and faster ever since, making it increasingly difficult for companies to survive and flourish. As evidence for this situation the average longevity of businesses in the S&P 500 index can be adduced. While in 1964, in average, a business would stay 33 years in the index, the duration went down to 24 years in 2016. It is estimated that this number will be cut in half by the year 2027. The major force behind this in the recent past is the digital transformation. Just a few years ago it was common standard to rent a movie in a video rental store, buy books at the local book store and to take pictures with analogue cameras. Among the most famous businesses in these markets were Blockbuster, Borders and Kodak. Nowadays, they are immaterial. The first two filed for bankruptcy and the latter is still trying to salvage itself. All of them share the same fate: they underestimated the change that came with digital innovations. In their place digital champions now reign: Netflix, Amazon and Samsung. If a similar fate would befall the German automotive industry, it would be devastating for the whole economy as over 1.8 million jobs are directly or indirectly dependent on it. In fact, among the four highest grossing companies in Germany 2017 were three car manufacturers. The extreme significance of this industry is evident.