IDEAS home Printed from https://ideas.repec.org/a/sph/rjedep/v8y2019i3p6-15.html
   My bibliography  Save this article

The Chief Digital Officer – Savior for the Digitalization in German Banks?

Author

Listed:
  • Carsten Giebe

    (Kaposvar University, Doctoral School Management and Organizational Sciences)

Abstract

Digitalization is changing processes in the German banking market. These changes pose significant challenges for companies. Many German banks could miss the connection in the age of digital transformation. They are forced to digitize processes due to low yields, as new players in the market (FinTechs) could shed up to 40% of sales and up to 60% of profits from traditional banking. How to deal with digitalization has been discussed widely. One idea that has been promoted and implemented, was installing a Chief Digital Officer along with the Chief Information Officer / Head of IT. Among the 2,500 largest publicly listed companies worldwide, 160 CDOs have been hired in 2016, 124 in 2017 and 54 in 2018, according to a 2019 study by PWC’s strategy&. Numbers have gone down and it is in question whether and how long the position of a CDO will be crucial for business success. Only 7% of German banks currently employ a CDO. Creating the role of a CDO alone will not be a measure for success in organizations, as long as it is not accompanied with a suitable digitalization strategy and a change management process that effectively highlights and persuades all of the organization stakeholders of the benefits.

Suggested Citation

  • Carsten Giebe, 2019. "The Chief Digital Officer – Savior for the Digitalization in German Banks?," Journal of Economic Development, Environment and People, Alliance of Central-Eastern European Universities, vol. 8(3), pages 6-15, September.
  • Handle: RePEc:sph:rjedep:v:8:y:2019:i:3:p:6-15
    as

    Download full text from publisher

    File URL: http://jedep.spiruharet.ro/RePEc/sph/rjedep/JEDEP30_1Giebe_P6-15.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hess, Thomas & Matt, Christian & Benlian, Alexander & Wiesböck, Florian, 2016. "Options for Formulating a Digital Transformation Strategy," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 81032, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    2. Oana-Mihaela ILIE & Constanta POPESCU & Silvia Elena IACOB, 2017. "Transforming the Banking Organization in the Context of Digital Economy," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 284-292.
    3. Jonathan J.J.M. Seddon & Wendy L. Currie, 2017. "A model for unpacking big data analytics in high-frequency trading," Post-Print hal-01404316, HAL.
    4. Hammermann, Andrea & Stettes, Oliver, 2016. "Qualifikationsbedarf und Qualifizierung: Anforderungen im Zeichen der Digitalisierung," IW policy papers 3/2016, Institut der deutschen Wirtschaft (IW) / German Economic Institute.
    5. Seddon, Jonathan J.J.M. & Currie, Wendy L., 2017. "A model for unpacking big data analytics in high-frequency trading," Journal of Business Research, Elsevier, vol. 70(C), pages 300-307.
    6. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    7. Christian Schawel & Fabian Billing, 2018. "Top 100 Management Tools," Springer Books, Springer, edition 6, number 978-3-658-18917-4, October.
    8. Oana-Mihaela ILIE & Constanta POPESCU & Silvia Elena IACOB, 2017. "Transforming the Banking Organization in the Context of Digital Economy," Proceedings RCE 2017, Editura Lumen, vol. 0, pages 284-292, November.
    9. Lee, In & Shin, Yong Jae, 2018. "Fintech: Ecosystem, business models, investment decisions, and challenges," Business Horizons, Elsevier, vol. 61(1), pages 35-46.
    10. Hess, Thomas & Matt, Christian & Benlian, Alexander & Wiesböck, Florian, 2016. "Options for Formulating a Digital Transformation Strategy," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 82423, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Emil Velinov & Milan Maly & Yelena Petrenko & Igor Denisov & Vasko Vassilev, 2020. "The Role of Top Management Team Digitalization and Firm Internationalization for Sustainable Business," Sustainability, MDPI, vol. 12(22), pages 1-11, November.
    2. Lena Kessel & Lorenz Graf-Vlachy, 2022. "Chief digital officers: the state of the art and the road ahead," Management Review Quarterly, Springer, vol. 72(4), pages 1249-1286, December.
    3. Aferdita Dervishi, 2021. "The Importance of Leadership on Business Ethics at Organizations," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 7, ejes_v7_i.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Swen Nadkarni & Reinhard Prügl, 2021. "Digital transformation: a review, synthesis and opportunities for future research," Management Review Quarterly, Springer, vol. 71(2), pages 233-341, April.
    2. Hua Zhang & Qiwang Zhang, 2023. "How Does Digital Transformation Facilitate Enterprise Total Factor Productivity? The Multiple Mediators of Supplier Concentration and Customer Concentration," Sustainability, MDPI, vol. 15(3), pages 1-18, January.
    3. Chang-Geun Kim & Oh-Suk Yang, 2024. "Global Companies’ Dynamic Response to Business Environment Uncertainty through Digital Transformation: Sustainable Digital Quality–Customer Value–Market Performance Relationships," Sustainability, MDPI, vol. 16(15), pages 1-32, July.
    4. Teubner, Alexander & Stockhinger, Jan, 2020. "IT/IS strategy research and digitalization: An extensive literature review," ERCIS Working Papers 34, University of Münster, European Research Center for Information Systems (ERCIS).
    5. Ciampi, Francesco & Faraoni, Monica & Ballerini, Jacopo & Meli, Francesco, 2022. "The co-evolutionary relationship between digitalization and organizational agility: Ongoing debates, theoretical developments and future research perspectives," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    6. Li, Min & Liu, Na & Kou, Aiju & Chen, Wenchuan, 2023. "Customer concentration and digital transformation," International Review of Financial Analysis, Elsevier, vol. 89(C).
    7. Maria Elisavet Balta & Thanos Papadopoulos & Konstantina Spanaki, 2024. "Business model pivoting and digital technologies in turbulent environments," Post-Print hal-04513406, HAL.
    8. Ga-Rog Han & Jae-Eun Lee, 2024. "The Moderating Effect of ESG Level in the Relationship between Digital Transformation Capability and Financial Performance: Evidence from Foreign Subsidiaries of Korean Firms," Sustainability, MDPI, vol. 16(9), pages 1-15, April.
    9. Pinto, Marcelo Rezende & Salume, Paula Karina & Barbosa, Marcelo Werneck & de Sousa, Paulo Renato, 2023. "The path to digital maturity: A cluster analysis of the retail industry in an emerging economy," Technology in Society, Elsevier, vol. 72(C).
    10. Florian Diener & Miroslav Špaček, 2021. "Digital Transformation in Banking: A Managerial Perspective on Barriers to Change," Sustainability, MDPI, vol. 13(4), pages 1-27, February.
    11. Maha Shehadeh & Ahmad Almohtaseb & Jehad Aldehayyat & Ibrahim A. Abu-AlSondos, 2023. "Digital Transformation and Competitive Advantage in the Service Sector: A Moderated-Mediation Model," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    12. Hui Ding, 2024. "Unraveling the Nexus between Entrepreneurial Orientation, Effect Reasoning, and Digital Transformation in Enterprises," International Journal of Science and Business, IJSAB International, vol. 39(1), pages 143-161.
    13. Patrick Mikalef & Ilias O. Pappas & John Krogstie & Michail Giannakos, 2018. "Big data analytics capabilities: a systematic literature review and research agenda," Information Systems and e-Business Management, Springer, vol. 16(3), pages 547-578, August.
    14. Daliborka Witschel & Aaron Döhla & Maximilian Kaiser & Kai-Ingo Voigt & Thilo Pfletschinger, 2019. "Riding on the wave of digitization: insights how and under what settings dynamic capabilities facilitate digital-driven business model change," Journal of Business Economics, Springer, vol. 89(8), pages 1023-1095, December.
    15. Ritala, Paavo & Baiyere, Abayomi & Hughes, Mathew & Kraus, Sascha, 2021. "Digital strategy implementation: The role of individual entrepreneurial orientation and relational capital," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    16. Ludovica Moi & Francesca Cabiddu, 2021. "Leading digital transformation through an Agile Marketing Capability: the case of Spotahome," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(4), pages 1145-1177, December.
    17. Safinaz H. Abourokbah & Reem M. Mashat & Mohammad Asif Salam, 2023. "Role of Absorptive Capacity, Digital Capability, Agility, and Resilience in Supply Chain Innovation Performance," Sustainability, MDPI, vol. 15(4), pages 1-25, February.
    18. Mishra, Deepa Bhatt & Haider, Imran & Gunasekaran, Angappa & Sakib, Md. Nazmus & Malik, Nishtha & Rana, Nripendra P., 2023. "“Better together”: Right blend of business strategy and digital transformation strategies," International Journal of Production Economics, Elsevier, vol. 266(C).
    19. Dubey, Rameshwar & Bryde, David J. & Dwivedi, Yogesh K. & Graham, Gary & Foropon, Cyril & Papadopoulos, Thanos, 2023. "Dynamic digital capabilities and supply chain resilience: The role of government effectiveness," International Journal of Production Economics, Elsevier, vol. 258(C).
    20. Ghafoori, Arman & Gupta, Manjul & Merhi, Mohammad I. & Gupta, Samrat & Shore, Adam P., 2024. "Toward the role of organizational culture in data-driven digital transformation," International Journal of Production Economics, Elsevier, vol. 271(C).

    More about this item

    Keywords

    Change Management; Digital Transformation; Digitalization; CDO; Chief Digital Officer; German banks;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sph:rjedep:v:8:y:2019:i:3:p:6-15. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Rocsana Bucea-Manea-Tonis (email available below). General contact details of provider: http://jedep.spiruharet.ro/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.