Mastering International Digital Transformation: How DACH Companies Can Navigate Cultural and Organizational Challenges for Success“

DACH companies in a globalised world

Many companies in the DACH region operate as hidden champions with locations on several continents. This strong international presence requires harmonised IT systems that ensure efficiency, transparency and compliance. At the same time, they are faced with tension between centrally controlled IT specifications from headquarters and local requirements in the target markets.

A practical example: a German mechanical engineering group wants to standardise its ERP landscape worldwide to optimise business processes. However, the implementation almost fails – not because of the technology, but because of the lack of acceptance at the local sites in Asia and Latin America. The different business processes, cultural customs and requirements were not sufficiently considered.

Challenges of international IT rollouts in the DACH region

"The introduction of IT systems across several countries is far more than just a technical project. It is a transformation process that focuses on cultural and procedural differences," explains Martin Dietz. Companies from the DACH region, which often have a highly centralised organisational structure, face particular challenges here.

1. Highly centralised structures

Companies from the DACH region traditionally tend to have highly centralised decision-making processes. However, these governance models can limit local flexibility. A ‘one-size-fits-all’ approach often leads to conflicts with regional teams.

2. Cultural differences and local requirements

While companies from German-speaking countries are known for their detail-orientated and structured way of working, international teams are often more pragmatic and flexible. This cultural contrast can lead to tensions, especially when global IT rollouts want to implement centralised specifications that do not take sufficient account of local requirements. ‘An SAP system can function excellently in Europe, for example, while there are completely different regulatory and operational requirements in South America or Asia,’ says Dietz.

4. Complexity due to compliance requirements and different regulations

DACH companies often have to fulfil strict regulatory requirements both in their home country and in the target markets. Different data protection and tax regulations require precise customisation of systems.

A harmonised IT landscape often comes up against the limits of country-specific regulations. While the GDPR is central in Europe, markets such as Brazil, India or the USA require adjustments to local data protection and financial regulations. ‘The harmonisation of financial systems is one of the most common problems, especially in countries with unstable currencies or differing accounting regulations,’ adds Dietz.

5. Shortage of skilled labour and change management deficits

The shortage of skilled labour does not only affect IT departments. There is also often a lack of experienced experts in the area of change management who can provide cultural and organisational support for global rollouts. This can be particularly problematic for medium-sized companies. After all, even the best technology will fail if it meets with resistance. According to a study by McKinsey, change management remains the most common reason for the failure of digital transformation projects. ‘It is essential to involve the affected employees at an early stage, communicate transparently and provide training. This is the only way to achieve acceptance,’ emphasises Dietz.

6. Communication deficits

Many rollouts fail due to inadequate communication – not only on a technical level, but also on a cultural level. Different working cultures, such as the detail-orientated approach in DACH countries versus pragmatic approaches in other markets, often lead to frictional losses.

7. Underestimated data migration and quality

The harmonisation and migration of data is often highly complex in an international context. Different data standards and legacy systems in different countries pose immense challenges. Incorrect or incomplete data migrations can significantly impair system functionality.

Success factors for IT rollouts from a DACH perspective

To successfully organise international IT projects, companies need to focus not only on technology, but above all on collaboration and communication.

1. Global standards with local customisation

An international rollout can only succeed if it combines global standards with local flexibility. A balance between centralised control and local autonomy is crucial. ‘We often rely on a ‘hub-and-spoke’ model, in which the headquarters defines global standards and the countries adapt them to their local conditions,’ explains Dietz. This ensures efficiency and acceptance in equal measure.

2. Investment in change management

Change management is still often an underestimated topic in the DACH region. A clear communication strategy, flanked by targeted training and workshops, can decisively promote the acceptance of new IT systems. Dietz therefore recommends involving not only IT departments but also local business units in the planning process at an early stage. ‘The local teams know their requirements best. Their involvement prevents expensive rework later on.’

3. Agile and iterative approaches

Agility is a success factor for implementing rollouts faster and more flexibly. Iterative processes and pilot projects in individual regions reduce risks and make it possible to learn from experience before the global rollout begins.

An agile approach is particularly recommended in dynamic markets, where iterative steps and pilot projects minimise major risks. ‘We often start with smaller rollouts in individual countries before rolling out globally. This allows errors to be recognised and rectified at an early stage,’ explains Dietz.

4. Data management as a key factor

Data migration and quality are among the most critical phases of a rollout. Different data standards and fragmented legacy systems can affect the consistency and reliability of the systems. ‘We rely on tried-and-tested tools and iterative testing to ensure that the data migration runs smoothly,’ says Dietz.

5. Partnerships with transformation consultancies

Companies in the DACH region benefit from working with specialised consultancies such as Convista. They not only have technical expertise in SAP and other leading IT systems, but also experience in international process harmonisation.

For Convista, internationalisation is more than just a business model. It means consistently supporting customers across borders – from strategy development at headquarters to implementation on site. With a local presence in selected markets, Convista supports global IT projects not only technologically, but also culturally and organisationally.

‘We see ourselves as a partner to our customers, supporting them in all phases of international transformation,’ emphasises Dietz. ‘Whether it’s compliance with local regulations, the adaptation of global systems or the harmonisation of processes – we can replicate our international experience and contribute specific expertise.’

Consequences for the transformation strategy

Companies from the DACH region must capitalise on their strengths

DACH companies are characterised by technological excellence and high-quality standards. These strengths are a good basis for international IT rollouts – provided they are complemented by cultural sensitivity and organisational agility. ‘The goal is a smooth integration that works not only technologically, but also organisationally and culturally,’ summarises Dietz.

Convista: A strong partner for DACH companies

As one of the leading transformation consultancies headquartered in Cologne, Convista is particularly focussed on the needs of companies from the DACH region. However, with its international project experience, Convista also understands the special challenges that arise for globally active SMEs and large companies from the region.

• Global rollout expertise: Convista supports companies from strategy development to implementation – taking local requirements into account.
• Focus on change management: With a specialised team, Convista ensures that all employees along the value chain are involved. From analysing the corporate culture to implementing communication campaigns – Convista provides holistic support for change.
• Compliance and data management: Convista’s in-depth expertise in the areas of regulation and data quality guarantees that all legal and business requirements are met. With tried-and-tested migration tools and methods, Convista guarantees the quality and integrity of the data.

What does this mean for the digital transformation strategy?

The challenges of international IT rollouts make it clear that these projects need to be embedded in an overarching transformation strategy. Companies in the DACH region need to take a holistic approach to their digital transformation strategy. This strategy should cover far more than just technical aspects and include the following elements in particular:

• Change management: Structured change management is essential to ensure acceptance of the new systems.
• Global management with local expertise: Companies should establish strong governance models, but at the same time focus on local adaptations.
• Technology and process expertise: In addition to technological know-how, a profound understanding of international business processes and their harmonisation is required.

International IT rollouts are not just technological projects, but also change initiatives. The ability to combine global trends with local expertise determines future viability in a globalised world.

Convista offers decisive added value here: as a transformation partner that not only masters the technology, but also takes cultural, organisational and strategic aspects into account. DACH companies that rely on such partners are well positioned – hidden champions as well as global corporations.