Modernization made easy

Insights from Anneke Keller on digital transformation

She was at the forefront of online grocery shopping at Jumbo, closely witnessed Coolblue’s digital transformation, and was responsible for the IT departments at TomTom and Wehkamp. Anneke Keller, currently the CTO at PostNL, is rightfully considered an expert in digital transformations.

But what exactly does a digital transformation entail? How does it contribute to business continuity, and how can you ensure it becomes a success for your organization? As a member of the LINKIT Advisory Board, Anneke shares her experiences and shows how technology, particularly human factors, is the driving force behind business innovation.

Anneke Keller

Recognizing the IT Department

Digital transformation is often a response to changing market conditions, such as rapid growth or decline, the shift from physical to digital service delivery, or as a result of a business acquisition. “These changes force organizations to revisit their business models and adapt to the new reality,” says Anneke.

Recognition of the IT department is an essential first step in this process. “Many organizations view IT as a necessary cost, so technology is not an integral part of the business model.” In her view, the strategic and intelligent use of IT by companies like Google and Netflix leads to more profit and innovation, allowing them to maintain a market advantage.

Technology sets the tune; Humans determine the tempo

However, while new solutions like AI and quantum technology offer enormous innovation opportunities, they also blind companies to the human factor. From experience, Anneke knows that technology often takes precedence, and the softer side (the human element) is underemphasized. “There is often the idea that technological gadgets improve business, but I don’t believe in that definition,” she says. “For me, innovation lies in the human ability to anticipate changes and developments.”

“For me, innovation lies in the human ability to anticipate changes and developments.”

Organizations becoming fixated on technical capabilities can lead to an overgrowth of legacy in the IT environment over time. Anneke notes that it is much more important to look at the future applicability of a proposed solution. “Technology plays a major role, but as a human, you determine its application. Selecting the right technology is not about having the latest solutions; it’s about the desired technology answering the question and being applicable at various levels, including future projects. Only in this way do you create a sustainable (IT) environment.”

The Human dimension is vital

The word ‘human’ has been mentioned as a keyword as far as Anneke is concerned. It’s no coincidence that soft skills were central to all the IT projects she has led. “The human dimension is vital for successful digital transformation, but it often remains underemphasized. Inspiring leadership creates an engaged team that understands the goal and reduces resistance to change. The positive result is that people become more creative, and innovative solutions emerge.”

“The human dimension is vital for successful digital transformation, but it often remains underemphasized.”

In her view, humans are essential to a purposeful business strategy. “Good management is characterized by effective communication, which aligns everyone in the same direction—creating synergy between all disciplines and stakeholders and sharing experiences. Developing (and monitoring) a culture where making mistakes is allowed. It forms a strong foundation for success, and as an IT manager or CTO, you don’t have to worry whether your team is thinking about Green IT or GenAI; they are aware of applicable technologies and have been working on them for a long time.”

Anneke Keller

A Different way of working

However, the relentless evolution of new technologies influences business strategies and how people work. “Decisions are increasingly data-driven, the demand for AI specialists or UX specialists is growing, and task automation is increasing,” says Anneke.

She illustrates this with the role of a developer. “Previously, they spent equal time thinking, developing and implementing a solution. With the emergence of new technologies (such as low-code platforms, automation tools, and cloud services), coding has become much faster and more efficient – especially with the rise of copilot, which provides AI assistance in programming. As a result, the developer’s focus has shifted to the functional aspect, so the task ratio is now 50/50. It leads to shorter lead times, more frequent releases, and an accelerated time-to-market, benefiting both companies and customers.”

Anneke points to the importance of knowledge sharing in keeping up with new technologies. “This is where leadership facilitates. Assemble the right teams so they can strengthen each other. Be open to experiments and allow mistakes to be made. The goal is to learn from them because that creates added value. New technologies support business growth, but that can only be achieved through the right application, and humans determine that.”

“New technologies support business growth, but that can only be achieved through the right application, and humans determine that.

Cycle of Innovation

Anneke has written the book ‘ The Cherry Model ‘ to provide insight into this constant stream of new technologies and changing market and business needs. “I use a cherry tree as a metaphor: the trunk represents the company, the branches represent management, and the cherries illustrate the employees. The tree’s growth depends on the seasons, and it’s the same with innovation. The four seasons are synonymous with growth and stagnation.”

“Winter symbolizes a difficult period where the market doesn’t always cooperate, and it feels like survival. In spring, calm returns, and you have time to shape the organization, depending on the market. Summer is characterized by growth: much is possible, and you can start building the organization and the culture. Fall represents the harvest time. You seize opportunities, enter new markets, and implement new solutions. Then winter comes again, and the cycle begins anew – this is how the tree grows. Innovation is nothing more than a constant trajectory of improvement and renewal.”

“Innovation is a constant trajectory of improvement and renewal.”

Anneke says this ‘cherry tree approach’ applies to almost any organization, including smaller businesses. “There is often the idea among small businesses that a digitization effort costs more than it’s worth or adds little value for them. They often see a digital transformation as ‘something for a big company’. They don’t realize then that their relatively small size makes them extremely flexible and scalable, allowing them to respond quickly to changes. These companies have an advantage, especially in a knowledge-driven market, because implementing innovative solutions does not have to go through various layers, as with large Agile-driven organizations. Speed is crucial for innovation, and by leveraging this advantage, smaller companies can challenge and even dethrone large organizations. A digital transformation is therefore certainly of added value for them, just as it is for large organizations.”

“Speed is crucial for innovation, and by leveraging this advantage, smaller companies can challenge and even dethrone large organizations.”

The Cherry Model

A continuous process of adjustments and improvements

According to Anneke, two companies capture everyone’s imagination and illustrate the impact of a digital transformation well: bol.com and Coolblue. At the latter, she has been at the helm of the development department for years (as ‘IT Manager Development’ and ‘Head of Software Development’). She has closely witnessed the shift from physical retail to e-commerce.

“New technologies were embedded in the business model, teams were reformed, and the focus shifted to the continuous development of people and (digital) technology. The importance of in-house development of business-specific software became an integral part of operations, and my development team grew from around 40 to nearly 200 people in just under three years. Strategic decisions have paid off handsomely for the organization (2.4 billion euros in revenue in 2023).”

According to Anneke, this example also shows that modernization is not a one-time project but an ongoing process of adjustments and improvements. “The rapid rise of new technologies can be a challenge for organizations, but the fact is that you cannot ignore it. Falling behind poses a serious problem, so see it as an opportunity. Recognize the importance of IT and focus purposefully on technological capabilities that help make strategic (digital) choices. Paying attention to both the technical components and the soft skills ensures a sustainable, competitive growth pattern for your cherry tree.”

“Falling behind poses a serious problem, so see it as an opportunity.”

Anneke Keller