Mr. van Oosten, can a company nowadays ignore digitalization and still be successful?
No. These companies should make their will.
Then, what would you tell companies that are at the very beginning of their digital strategy today?
The desire for digital transformation must become part of the DNA. The integration of a Chief Digital Officer in the circle of decision makers is a necessary step to give the transformation the required speed and also sufficient attention. A transformation towards digital business models, streamlined procedures, and a modern culture is a must when a company wants to stay relevant and therefore fit for the future.
Which strategy do you apply for digitalization at Rewe?
We want to offer the customer the best shopping experience at all channels. Customers have, for instance, a very easy option to get their online-ordered food delivered to their doorstep with our delivery service. They can also order online and pick up the goods at our pick-up service. Among other things, customers have access to free W-LAN at our locations. We increasingly mesh on-site shopping with our online offerings. In this process, we rely on modern infrastructure, agile developments, an open company culture, and innovative thinking.
The Rewe Group has created the new position of the Chief Digital Officer specifically for you. What were the challenges that came with this position?
When the position was created, the board and the supervisory committee were well aware of the importance of this topic. I therefore had the support from day one from all sides with 200 percent. At the start, we had to develop a team, manage growth, built digital infrastructure, expand the business model of the delivery service, and set up a good interaction between online and brick and mortar stores. After three years now, we have a super team with highly motivated employees, we are market leader with the Rewe delivery service in Germany, have managed the balancing act between online and location-based trade, and introduced the digital transformation of the whole Rewe Group.
What impact does the digitalization at Rewe have on company culture and organization?
Rewe digital has a strong impact on the whole Rewe Group. Agility surely is only a keyword. But particularly the lived culture within Rewe digital with much transparency, few hierarchies, and quick decision paths, inspires the whole group. At the same time, Rewe digital benefits from many successfully and established processes and structures of the Rewe Group.
You had many international stations in the field of e-Commerce such as Unilever and Tesco. How good is Germany regarding digital transformation?
German companies are very careful and a little more risk-averse compared to, for instance, Great Britain. In comparison, we in Germany are years behind our foreign competitors in many industries. This becomes apparent in the automotive industry and in the field of autonomous cars. On top of that, consumers in Germany adapt to digital services more slowly. The online food retail market in Germany only has a market share of less than one percent. In Great Britain, the share is higher than eight percent. Therefore, Germany cannot afford to rest, but still has to do some homework.
What is your prediction how Germany will develop regarding digitalization?
Consumer behavior all over the world will change drastically in the following years. Desktop computers will disappear at an increasing rate and the "mobile first" approach will become prevalent. Automation and robotics will be part of our everyday lives and big data will become an important basis to personalize products and services, and all that in due consideration of data protection. If Germany does not want to leave the stage for the big American enterprises, our companies must take the digital transformation seriously and break up old structures.
