Host: Welcome to A.I.S. Insights, powered by Living Knowledge. In today's hyper-competitive landscape, digital transformation is not just a buzzword; it's a necessity for survival. But how do companies actually build the skills to make it happen?

Host: We're diving into a fascinating study that gives us a rare, inside look. It’s titled “Building Digital Transformation Competence: Insights from a Media and Technology Company.” This study unpacks how a large, established company successfully developed the capabilities for its digital journey, identifying a clear sequence and specific tools that any organization can learn from.

Host: Here to break it all down for us is our analyst, Alex Ian Sutherland. Welcome, Alex.

Expert: Thanks for having me, Anna.

Host: So, Alex, let's start with the big problem. The summary says many organizations struggle with digital transformation because they lack the right internal skills. Why is this so difficult for so many businesses to get right?

Expert: It's a huge challenge, Anna. The issue is that most of the advice out there is very abstract. It talks about "digital mindsets" but offers little practical guidance. This study points out that the competencies needed today go way beyond traditional IT skills.

Expert: It's no longer just about managing your servers and software. It's about managing what the study calls 'digital innovations'—entirely new digital products, services, and business models. And as the researchers found, the old methods of just sending employees to a training course simply aren't enough to build these complex new skills.

Host: So how did the researchers in this study get past that abstract advice to find a concrete answer?

Expert: They took a very deep, focused approach. Instead of a broad survey, they conducted a detailed case study of a single, large German media and technology company, which they call 'MediaCo'. This company has been on its transformation journey for over 30 years.

Expert: The researchers conducted 24 in-depth interviews with senior leaders across the business—from the CEO to heads of HR and technology. This allowed them to build a detailed picture not just of what the company did, but the specific sequence in which they did it.

Host: A thirty-year journey really gives you perspective. So what were the key findings? What did this roadmap to building digital competence actually look like?

Expert: It was a clear, three-stage sequence. First, from roughly 1991 to 2002, was Stage One: Expanding foundational IT competence. The company started by decentralizing its IT department, giving each business unit its own IT team and responsibility. This created more ownership and faster decision-making at the ground level.

Host: So they started with the technical foundation. That makes sense. What was next?

Expert: Stage Two, from about 2003 to 2018, was about building what they call 'Meta Competencies'. This is where culture and agility come in. They focused on creating a more flexible organization, breaking down silos, fostering a digital mindset, and introducing new leadership roles like a Chief Digital Officer to guide the strategy.

Host: And the final stage?

Expert: That’s Stage Three, from 2019 onwards, which is focused on 'Transformation Competence'. This is the top of the pyramid. With the technical and cultural foundations in place, the company could now focus on true innovation—generating new business ideas and developing novel digital products, encouraging employees to experiment and think like entrepreneurs.

Host: You mentioned that traditional training wasn't enough. So what kinds of tools or instruments did they use to build these different competencies?

Expert: This is one of the most practical parts of the study. They used a whole toolbox of methods. For the foundational IT skills, they did use some classroom training, but they also used hands-on coding camps, hackathons, and even an internal 'digital degree' program.

Expert: But to build the higher-level transformation skills, they shifted tactics completely. They organized digital product development events, incentivizing teams with clear goals and prizes. They fostered experimental learning, giving people the freedom to try new things rather than following a rigid, step-by-step guide.

Host: This is the critical part for our audience. Let's translate this into actionable advice. Alex, what's the number one takeaway for a business leader listening right now?

Expert: The biggest takeaway is that sequence matters. You can't just declare an "innovation culture" on Monday. The study shows a logical progression: build your foundational technical skills, then re-shape the organization for agility, and only then can you effectively foster high-level, business-model-changing innovation.

Host: So you need to build from the ground up. What's another key lesson?

Expert: Diversify your learning toolkit. Hackathons and product development events aren't just for fun; they are powerful learning instruments. The study categorizes tools into three types: 'technology-specific' ones like coding camps for IT skills, 'agility-nurturing' ones like changing your organizational structure, and 'technology-agnostic' ones like innovation challenges, which focus on the business idea, not a specific tool. Leaders need to use all three.

Host: It sounds like this is about much more than just training individuals.

Expert: Exactly. That's the final key point. Building digital competence is an organizational project, not just an HR project. It requires changing structures, processes, and roles to create an environment where new skills can thrive. You have to build the capability of the organization as a whole, not just a few employees.

Host: That's a powerful way to frame it. To summarize for our listeners: Digital transformation competence is built in a sequence, starting with IT skills, moving to organizational agility, and finally fostering true innovation. And doing this requires a diverse toolkit of hands-on, experimental learning methods and fundamental changes to the organization itself.

Host: Alex, thank you for distilling these complex ideas into such clear, practical insights.

Expert: My pleasure, Anna.

Host: And thanks to all of you for tuning in to A.I.S. Insights — powered by Living Knowledge. Join us next time as we unpack the research that’s shaping the future of business.