"Our IT should see itself as superpower in the Group".

The interview with CIO Katrin Lehmann first appeared on automotiveIT  and was made available to us with the kind permission of the editors.

Frau Lehmann, you haven’t even been at Mercedes-Benz for a full year – and now you’re the head of Group IT. How much of a surprise was this promotion for you?

Katrin Lehmann: It is a great honour to take on this role at the most exciting time for IT ever. This wonderful and challenging role will give me the opportunity to shape a lot of things. What I’m particularly appreciative of is the dynamism and commitment within my team. I work with highly professional colleagues who bring a lot of expertise to the table and who are, simultaneously, also open to new approaches. This also reflects the spirit we have here at Mercedes-Benz. You can tell that the inventors of the automobile work here – there is a great deal of curiosity, the will to constantly create new things and to break new ground.

Since your move to Mercedes, you’ve already had the opportunity to get acquainted with IT in Sales and Marketing as well as in some of our software hubs. You now have overall responsibility for Group IT and have gained comprehensive insights into our IT processes. What’s your assessment of IT at Mercedes-Benz, and where would you say the greatest challenges are at present?

Katrin Lehmann: We will only be able to build the most desirable cars in the future if we have the best IT. This goal, this aspiration, is of paramount importance! As we all know, Mercedes-Benz isn’t a startup: the company has a long history and has grown over decades. This naturally entails certain tasks, such as the need to revise and modernise older structures and systems. Above all, we are tackling the issue of data integration. A lot of data needs to be integrated even more deeply in order to boost efficiency and our ability to innovate. To improve upon this, I have launched an initiative called “Kehrwoche” – or, in English, we’re calling it “Sweep(ing Up) Week” – which encourages teams to review their systems and processes to eliminate unnecessary complexity. Clutter out, speed in. We’ve even introduced a ‘golden broom’ as an award to make it more fun and to motivate our teams (laughs). It’s all about creating a ‘clean’ basis upon which we can then build new innovations. Without a solid foundation, even the best innovations won’t be effective.

Can you give us a specific example of where this “Sweep Week” was especially necessary?

Katrin Lehmann: One major issue facing us is the handling of data. If you don't continuously work on data quality and establishing standardised semantics, this can easily lead to challenges. In our committees, for example, we only use real-time data. This encourages teams to stay organised. This approach helps to create a culture of accuracy and accountability. And a bit of competition between the teams, like a "Bundesliga ranking" for which team has the ‘tidiest’ data, also boosts the incentive to continuously improve data quality.

You’ve just mentioned committee structures. How have you changed them?

Katrin Lehmann: One of my goals is to significantly increase speed and agility. That's why I have adapted our structures: We now meet more often and for shorter times; decisions are made more quickly. It’s important to me that everyone understands what we are doing – and why. I call these the ‘Sesame Street Questions’ – i.e. Who? How? What? Why?? – and these questions must always be answered clearly. This provides transparency and clarity and ensures that everyone knows what is expected of them. This has enabled us to significantly increase the speed and efficiency of our processes.

You are a child of the ‘SAP World’, having worked for Germany's largest technology group for more than 20 years. You refer to yourself as a ‘tech frontrunner’ and ‘Softwareaffin’ – or ‘software monkey’ in English. And Mercedes CEO, Ola Källenius, raves about your ‘strategic vision and innovative mindset’. To what extent do you want to make use of your tech experience?

Katrin Lehmann: For me, it is crucial to always stay on the ball and keep developing myself further. I started in programming over 20 years ago, and I know how fast technologies are developing. None of us is an expert in everything nowadays – that’s not even possible. We promote a culture of ongoing learning and an open approach and environment in which it is okay to make mistakes – and then learn from them. Which is why I’ve introduced a so-called ‘learning morning’, for example, in which we exchange ideas and try out new technologies. It's about fostering curiosity and a love of learning – and encouraging employees to continuously develop themselves. It’s only with this openminded attitude and willingness to learn that can we keep moving forward.

This would be tantamount to a major cultural transformation in the automotive industry. In your opinion, has there already been a lot of change in recent years?

Katrin Lehmann: A lot has definitely happened. In the past, it would have been unthinkable to share data with other companies. But today we see initiatives like Catena-X promoting exactly this. The automotive industry has always been a bit more conservative than others, but nowadays, ever more companies are realising that they need to work together with others to make real progress. Openness and transparency are becoming increasingly important.

How would you characterise your own IT strategy?

Katrin Lehmann: Our IT should see itself as a ‘superpower’ within the Group – one that delivers extraordinary IT solutions. ‘WeT instead of IT’, if you like. And within this incredible team, we have now defined five strategic areas that guide us. The first is ‘Rock Solid Operations’, which means that our IT operations must be stable and secure – without this foundation, we cannot work successfully. The second area is ‘Radical Standardisation’. This is about standardising our applications and systems and achieving our target architecture, which will take time. The third area is being a ‘Tech Frontrunner’. This means that we serve as the benchmark for technologies and innovations. We have established an internal innovation hub to test new ideas and technologies. The fourth area is ‘End-to-End Business Products’, which aims to work closely with our business partners, in particular by utilising agile methods. And finally, the fifth area is ‘Best Team’, because we need the best employees and strong team dynamics to be successful. These five areas are the basis of our IT strategy and help us to continuously improve and drive change.

You speak boldly of ‘radical standardisation’. Why is this so important?

Katrin Lehmann: By using this wording, we wanted to wake people up a bit – achieve exactly the effect this wording’s had for you. Radical standardisation is crucial because it helps us to reduce complexity and use our resources more efficiently. Having a lot of different systems and processes leads to high costs when it comes to integration and maintenance. Standardisation allows us to concentrate on the really important strategic areas that set us apart from the competition. Ideally, an 80/20 rule applies here: 80 percent of what we do should be standardised so that we can focus on the last 20 percent of what we do that is strategically relevant and which gives us the competitive edge. Of course, this is not always easy to do, especially when it comes to abandoning existing solutions to which we’ve become accustomed. But it’s nevertheless necessary to ensure our success in the long term.

How do you intend to increase the depth of value creation of IT internally – and thus bring your area of responsibility even closer to the business?

Katrin Lehmann: Data and the flow of data don’t stop at the boundaries defined by Group org charts. This is precisely the issue that’s addressed by our ‘business products’ which we have defined as a strategic lever in our IT strategy. The aim is for teams to work very closely together, for the roles and responsibilities to be clear – and for decisions to be made mutually and in a more agile manner about what is important at any given time. Resources are always limited. That's why we need to mutually set priorities and ensure the greatest added value. We have employed an agile methodology for this and have already introduced cross-functional teams from the business and IT for many projects. This morning, in fact, I spent time with exactly this kind of operations team. When I’m in a meeting like this, I oftentimes don't even know whether someone from my team or from one of the other business teams is speaking – and quite frankly, that's not important. The great thing – and important thing – is that these teams know exactly what they have to do, and then they work on it together.

How does cooperation work in the international software hubs?

Katrin Lehmann: I am a big fan of international teams. Cooperation at the global level is crucial to our success. We have different hubs with different strengths, and it is about making optimal use of these. In India, for example, we have very strong software development teams, while in Europe we have excellent DevOps teams. Their abilities complement each other perfectly.

Does it matter where a hub is located, especially with regard to certain topics or when it comes to a rollout?

Katrin Lehmann: Development tends to take place in India, and the rollout can then be at another location. Nevertheless, our teams must work closely together because the software is also constantly being further developed. There are differences in our tasks – which also necessarily requires different skills. I need strong software developers on the one hand, and rollout experts on the other who can work with the teams on site, train them and who are good at communicating.

What’s your perspective regarding the potential of artificial intelligence (AI) – and above all, of generative AI?

Katrin Lehmann: I don't want to be pinned down to specific KPIs, because the technology is simply developing too incredibly fast for that. But what’s clear is that AI has enormous potential, and we’re already seeing major benefits of using it in many areas. For example, generative AI can help us access information more quickly – or automate processes that used to take a lot of time. There are many exciting use cases for it, ranging from customer care to production. Our production foremen and women are nowadays all their own ‘mini-CEOs’ who can access and use data in real time. It is important that we use this technology sensibly and responsibly, while at the same time giving our employees training in AI and involving them in using it to reduce their reservations about this technology and encourage them to use it. It's about seeing the technology as a way to support our work. I also coordinate closely with Sabine Kohleisen (Member of the Board of Management of Mercedes-Benz Group AG. Human Relations & Labour Director) on joint learning initiatives. Our learning programmes already range from condensed, digest-style entry-level courses to further training as a data analyst or software developer. Change management is the most important thing for us. I am personally very sensitised to this because I have already managed many transformation projects in my professional career – both internally and with external customers. In technology-driven companies, change management is often neglected.

And a final question to wrap up: You’re one of the few female CIOs in the automotive industry...

Katrin Lehmann: Well, our numbers are growing!

That's true. Nevertheless, the speed at which this particular situation is changing is most certainly the slowest pace in the industry. Why do you think that’s the case?

Katrin Lehmann: Unfortunately, it’s still often the case that many women don't have confidence. But if they have strong role models, if they can see that there are women who can do it, then they also dare to do it themselves. Mercedes is exemplary in this aspect: we have three women on the Board of Management. Modern and flexible working conditions also help more women to realise their career plans. There’s already been a lot of progress made in these aspects.

I can tell that this is personal mission for you to bring about this kind of change...

Katrin Lehmann: Of course, that's always been my mission. I was the only girl doing advanced physics coursework at university, and after that experience, I chose not to study computer science simply because I didn't always want to be the outsider. I was always annoyed that I didn't do that. Since then, I’ve seen it as my job to change something about this situation. Here at Mercedes, we have already come a long way for the automotive industry, with around 26 percent if senior management positions filled by women. Achieving this is possible if you make it a focus and motivate your female colleagues to have the confidence to go for a bigger role. Then it works. But it's not just women who have the responsibility of moving this forward and promoting it. And ultimately, the following applies to everyone: The world belongs to those who shape it. And there are few areas in which this is so evident or tangible as in IT.