Establishing a nucleus for digital transformation

People & Organization + Digital Transformation

How we implemented cost reductions and embeded a mindset change through two digital projects

Initial Situation

The wholesale business unit of a medium-sized media company supplied around 250 public libraries with books. It also ran its own public library with several thousand regular users.

Unfortunately, the unit had been making losses for years.

Therefore, the Executive Board hired a viadoo team member as interim manager. His task was to set up an online shop for wholesale and an ebook lending service (eLending).

Both projects became the nucleus for the digital transformation of the entire media company.

Challenge

At that time, this project was one of several change initiatives that took place in parallel within the media company.

Consequently, the +30 employees of the wholesale unit worried whether the digital transformation could lead to job cuts or even a shutdown of the business unit.

This fear was threatening to paralyse internal innovation and performance.

But it was precisely these skills what the interim manager was now depending on to save the struggling unit.

Solution

In order to keep the employees’ fears and insecurities to a minimum, the interim manager communicated with them and involved them comprehensively. He also actively involved the works council, although it wasn’t legally required at that time.

Then the employees evaluated the existing processes of the wholesale unit in SIPOC workshops lasting several days (documentation in flow charts).

The interim manager then formed a team of highly motivated volunteers with digital skills. They also had to be very familiar with the processes of the book market.

The team immediately began designing the online shop and the ebook lending service. It therefore partnered with other public libraries and collaborated with external experts. The interim manager empowered the team in addition with the training of new online skills (e.g. digital rights management).

Results

In the end, we ensured that the team embraced a digital mindset and new corporate culture that encourages growth, long-term innovation and customer centricity.

It led to a saving potential of 15 % of the business unit’s balance sheet total. Through new digital products and collaboration with external partners.

As we naturally take the confidentiality of our clients seriously, we anonymize our success stories. However, the cases are real.