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I am joined by Lutz Beck, the CIO of Daimler Trucks North America, as he shares his wealth of experience in the realm of technology leadership. Lutz shares insights into his journey to becoming a CIO, significant accomplishments, and the unique challenges he faces as a CIO at Daimler.

"Live your day to the fullest."

Jashan Dhami: I just want to start off and ask you to explain your journey to becoming a CIO and your major accomplishments along the way.

Lutz Beck: Initially, I wasn't planning to be a CIO at the beginning of my career. I have a degree in Business Administration with some exposure to technology. I started my career in consulting, primarily focusing on process and organizational consulting. Over time, I got involved in ERP [Enterprise Resource Planning] implementations and gradually moved closer to IT, expanding my knowledge in all areas of technology.

After working in consulting, I transitioned to the corporate world. Initially, I wasn't specifically aiming for the CIO role. I was focused on learning and gaining experience in different areas. As I moved up the hierarchy, I realized that taking on full responsibility for a unit or segment would be the logical next step. This led me to the CIO role.

Throughout my career, I've always had a holistic view and aimed to be a change agent. I wanted to bring innovation, vision, and strategy to the organizations I worked for. For example, during my time in Japan, I developed a visionary strategy called Connect X, which transformed the IT organization into a transformational, proactive technology-focused entity. Similarly, in my current position, I was hired to drive change, transformation, and digital activation with the new IT strategy.

My most significant accomplishments are the changes I've implemented within organizations and the growth of employees during that time. I've been able to elevate the role of technology and bring it to the forefront of everything we do. As a CIO, I focus on leveraging technology to create new business models, services, and solutions. This mindset has allowed me to drive change and make a positive impact in my previous and current roles.

Jashan Dhami: Being part of a large company like Daimler, what are the main obstacles you face when implementing these changes?

Lutz Beck: When implementing changes within a segment, it's relatively straightforward because there is more freedom to execute. However, when driving global change, it becomes more complex due to the presence of organizational limitations. Communication with stakeholders becomes crucial to ensure everyone is aligned. It's important to convey the vision and strategy effectively. Sometimes, taking risks and making decisions that not everyone will understand is necessary.

In a global context, you may encounter resistance from individuals who don't fully grasp the changes you're implementing. It's a matter of timing and assessing whether it's the right moment to push for change on a global scale or if you need to wait for more readiness. Change doesn't happen overnight, and there is a specific time when it becomes feasible to drive these changes globally.

Jashan Dhami: What do you find is your biggest challenge as a CIO? Is it more on the resources side or the people side? What are the common challenges you face in your role?

Lutz Beck: The biggest challenge is transforming the IT function itself. Technology and usage have changed dramatically in the past 10 to 15 years. Previously, technology was seen as something only IT experts could handle, but now everyone is working with technology and feels they know it. There are technology products that allow people to work easily without extensive programming or configuration knowledge. However, finding the right balance becomes crucial.

The challenge is to transform the IT organization from the old model to the new one, where IT becomes a change agent and a driver for innovation. It involves leveraging citizen technologies within the company and ensuring they are used effectively and securely. The challenge lies in guiding the organization toward a more proactive, technology-driven approach while maintaining control and governance. This is particularly important in areas like AI, where ethical aspects need to be considered.

Jashan Dhami: People usually think of CIOs as tech executives, typically in tech companies. In your role as a CIO at Daimler, what sets your role apart from the typical perception of a CIO?

Lutz Beck: The role of the CIO has evolved significantly over the past decade. It has shifted from being solely focused on technology to understanding business processes and having a holistic view of the entire company. My role as a CIO in a trucking company involves transforming IT into a true business function. It's about identifying how technology can simplify processes, create efficiencies, and add value. It's not just about supporting technology; it's about driving change and innovation to align with the business objectives. The CIO's role now encompasses platform strategies, data strategies, and combining technology with business thinking to deliver value and revenue to the company.

Jashan Dhami: What skills do you believe make you a successful CIO?

Lutz Beck: Communication skills are essential for a CIO. I have a deep understanding of business processes and a business-focused mindset. I don't approach technology solely from a technical perspective; I evaluate its potential business value. When I encounter new technology, I consider the use cases and how it can benefit the business as a whole.

Jashan Dhami: When it comes to new technologies like AI, do you approach them from a business perspective in terms of how they can help your organization?

Lutz Beck: Absolutely. AI presents a significant opportunity to increase efficiency and create value for the organization. For example, we are currently piloting the Co-Pilot AI from Microsoft, which offers substantial efficiency gains by freeing up people's time to focus on value-added tasks. However, ethical considerations are also crucial. AI and machine learning can create outcomes that may not be desirable. We have a governance function to ensure everyone understands the opportunities and challenges associated with AI.

Jashan Dhami: When implementing new technologies to increase efficiency, how do you strike a balance between implementing those technologies and maintaining security?

Lutz Beck: Security is indeed a critical aspect to consider when implementing new technologies. The approach to security has evolved over the years. Previously, the focus was on protection, but now it has shifted towards detection and reaction. We understand that there is no complete security, and incidents can happen. So, it's important to have systems in place to detect any potential security breaches and be able to react promptly.

When it comes to implementing new technologies like AI, partnering with reputable companies that prioritize security is crucial. It's necessary to evaluate the security measures of technology providers and ensure that they align with our security standards. Security should be a fundamental consideration at every step of the implementation process.

Jashan Dhami: To wrap up, as someone just starting their career, is there something you wish you had known when you were in my position?

Lutz Beck: Looking back at my own journey, I believe that everyone's path is unique and shaped by their experiences. Instead of wishing I knew something specific, I encourage you and your peers to have confidence in yourselves and embrace your own journey. Don't fear taking risks or pursuing your dreams. Love what you do and find joy in your work. When you are passionate about what you're doing, you excel at it. So, be confident and let your journey lead you to where you're meant to be. Sometimes, not knowing everything can make life easier, allowing you to go with the flow and follow your instincts.

Conclusion:

In Lutz Beck’s impressive journey into IT, he shows how his unique perspective has catapulted him to success. Coming from a non-traditional background, Lutz serves as the prime example of how his leadership skills and holistic view allowed him to be an invaluable part of a company. Through our conversation, he provided valuable insights into the challenges faced by CIOs, such as navigating organizational limitations, transforming IT functions, and striking a balance between implementing new technologies and maintaining security. Lutz's emphasis on communication, visionary thinking, and a business-focused mindset highlights the essential skills for aspiring CIOs. As the technology landscape evolves, Lutz Beck will play a vital role in aligning technology and business to shape the future of organizations.