#tomorrowtoday: Tanja Rückert, CDO Bosch

Thank you, Jochen, I'm really happy to be here. Thank you for thinking of me and the topics of digitalization and sustainability. Yes, very gladly. So let's start with a question that has been on my mind for a long time: how does a PhD chemist become CDO of Bosch? That is an interesting question. Looking back, you usually identify patterns. For me, it was the combination of domain know-how, software, and people. That combination came together at SAP back then. When I started, they were looking for someone who spoke the language of the chemical and pharmaceutical industries and understood their processes. I had that domain know-how, combined with my hobby of software, which was somewhat neglected during my studies but I was one of the early Commodore enthusiasts. Even during my PhD, I realized I wanted to work with people. So that combination of people, software, and domain know-how. Interestingly, the bridge to being CDO at Bosch is exactly the same. The difference in digitalization is again domain knowledge—for example, in automotive, understanding how to connect control units in cars with software, what services can be built on top, and how to bring together hardware, software, and service into the best possible customer solution. And of course, you think, 'From SAP straight to CDO'—but there were 20 years of software roles in between: introducing software, and I was also responsible for the Internet of Things and Industry 4.0. The great thing was that when I joined Bosch, I had real things—not just 'Internet of Things' but actual Internet of Things—and that continued in my role as CDO at Bosch Building Technologies.

Well, it is a decade old, but it's really flourishing in some areas only today. At Bosch, we are guided by our motto 'Invented for Life.' I have to admit I like the English version even better because it's not just about technology—it's about what we give people out there in terms of possibilities to make life more convenient in the car, safer at home, and so on. You notice it when you ask what occupies me most. When you have a guiding principle like 'Invented for Life,' we have to think day in and day out about what we can develop and provide next that is important for your life, my life, and increasingly for digital life. That is a demanding but very satisfying task. Related to that is how we make ourselves agile and modern—what competencies do we need? We have an appreciative leadership culture to take our employees along. Let me give three examples to make it more concrete. First, you could say we are both a supplier business and directly consumer-facing, but regardless of the business, I think it applies to many listeners: you always have to think from the customer's perspective and the benefit—what brings the highest benefit and solves the biggest problem? An example from automotive: there is more and more shared mobility, so you say the car is parked there and you walk to it and use it without owning a car. Now there's a problem: what do the cars look like inside? You don't want to get in and find smoke if you're a non-smoker. So we brought a solution to market. It only worked because we analyzed the customer need beforehand; otherwise, you develop past the customer need and past 'Invented for Life.' Two more points briefly: I believe it's highly relevant that the days of separate IT and business strategies are over—I know Accenture also has this—IT must always be aligned with the business strategy, and digitalization is the growth engine in the business strategy, not the other way around. The last point, which I think is close to both our hearts, is how digitalization can help with the big issues—how we ensure it benefits the environment and doesn't harm it. We've already done a lot with networking technology, and we recently conducted a survey where 76% of all respondents said they believe technological progress is a key factor in the fight against climate change. That is my complete conviction, I fully support that.

Such change doesn't happen overnight. You've addressed that well. At Bosch, we started very early in all domains to move in this direction. At home, we have the home topic; on the move, mobility—that's where many know us from; and at work in industry with Industry 4.0. We started early with this networking business. You have to take people along; they also need to see the benefit—our customers, of course, but also our employees. If I look at where we stand today: we now have almost 80,000 experts in research and development and 38,000 software developers. When I came from my previous company and heard how many software developers Bosch has, I was very impressed. But you can imagine that you need them to build a software-defined car, make a fridge intelligent, or implement Industry 4.0. For example, we generate up to one billion euros in revenue annually just from networking—not the entire machinery, just the networking. These are topics that, if you don't anchor them early, the whole world will eventually pass you by. Another point: artificial intelligence—we started building the Bosch Center for Artificial Intelligence worldwide in 2017, and it's a very strong development team. Precisely because you mentioned traditionally all business units can access it, and with seven locations worldwide, we have a seedbed that helps when you bundle competencies. But the digital journey is in full swing; we are not at the finish line yet—there is still much to do. Recently, we announced that we are working with partners on the software-dominated future of mobility, which I think is super important because no one can do it alone—for example, with VW Cariad, to bring together the development of automated and highly automated driving, or with manufacturers like Microsoft. There are examples in every one of our divisions. And perhaps the last sentence: you need such examples that people understand immediately. Someone working in the automotive sector sees what we're doing with VW on partially automated driving; someone working at Bosch Siemens Hausgeräte sees what we presented at CES: a fridge where a camera recognizes what's inside and suggests recipes to use exactly those ingredients. That also ties into sustainability—it helps us as parents who don't always have enough time to decide what to cook, but also reduces waste. And that's how you take every employee along in different areas, because you have domain-specific examples. So we all move a little closer together, both in terms of topics and in the way we collaborate. You mentioned it: ecosystem, business and IT come closer together. We put the customer and the benefit first, we think from a sustainable customer perspective into the product, and we drive modernization and innovation.

I believe sustainability must be the common denominator for all future technologies. It's not possible without it, and it's not 'the new digital'—it's a joint effort. We will only achieve the sustainability goals with the support of digitalization. Not replacing, not new digital, but together. Let me give concrete examples: energy consumption is super relevant. In manufacturing, we know that data centers and production halls are the main consumers. We have the Bosch Energy Platform, and we've also installed it in over 100 of our own plants. It monitors energy consumption data, reports irregularities, and importantly, it integrates green energies—which are somewhat volatile in availability—so we can mix them: when is green energy available and not, and make concrete recommendations for action to achieve a more energy-efficient approach. I asked at our Bosch plant in Qingdao, China, what it brings them, and they said they save 280 megawatts, which translates to the annual energy consumption of 120 German households. That's something worthwhile. As for wildfires, I hadn't realized their CO2 output is as much as all transport combined. We're working with a company on our first intelligent gas sensor using artificial intelligence that detects gases very early, before the fire starts, so a camera can't detect it. These are the topics we love to work on with 'Invented for Life.' Other investments include e-mobility and e-bikes. There are many more examples, but those two were close to my heart: wildfire detection and energy efficiency in manufacturing, because they really change things—they change the numbers.

I would perhaps put it differently: how do we tackle topics? And maybe very personally, how do I approach big topics? One thing, a small anecdote from childhood: I used to take apart the radio and see how to put it back together. I want to transfer that—we have to go deep into the topics and structures because the new generation expects a different leadership culture, a different setup. Where it works, we keep it; where it doesn't, we have to create new connections. And yes, the radio did work again. It's about leadership culture and work methods, and we must continuously nurture them. Looking back at what Accenture and Bosch would have formulated ten years ago about leadership demands—that has changed. We are moving away from direct leadership towards empowering the individual. Distributed leadership: decisions are made where the competence is. To do that, you need the right leadership team, and the importance and meaning of leadership has changed. That also means changing organizational structures. I think you're doing a great job with agile leadership structures—smaller autonomous teams that are given decision-making authority. What's also important, because it sounds simple but isn't, is developing team spirit, which is especially important for new joiners. And in times of Corona, that's a special challenge: creating closeness over distance. In a global environment, we are hundreds of thousands of kilometers apart, and some of us have never met in person. So we need other forms of exchange—communication formats like 'sofa sessions' where we sit informally on sofas at different locations and exchange lessons learned from projects, even if they didn't go well. That's something the next generation appreciates and where we can only improve.

I am firmly convinced that it creates more innovation because when you give people the feeling of empowerment—not just a buzzword but you live it—then entrepreneurship often follows. That's difficult in a hierarchical structure where the bosses usually have the business, and that business is often yesterday's business. So you have to create free spaces for colleagues to work on new topics. Even if sometimes leaders think they know things better, the experts know best. So I believe decentralized, small autonomous teams definitely promote and advance innovation more than a centrally led hierarchical organization.

There is strong competition in the market. All global companies, and small ones too, want the best people. What makes Bosch particularly attractive? It is a foundation-owned company. A foundation-owned company thinks long-term about the topics we discussed—sustainability and especially the conviction that sustainability and digitalization go hand in hand, because with digitalization we will achieve the sustainability goals. That's a big advantage. We are at home in all domains: if I consider that there are people who want to develop software and create new business models, but also want to apply them to tangible things—they can do that with us in buildings, in the residential or home environment, in all forms of transportation (especially automotive), and in manufacturing Industry 4.0. We have hardware expertise that we combine with software expertise—that's really fascinating. You immediately see what the software does; it's not just a piece of code—it's great. You immediately see how the device reacts. Bosch also stands by what it says: early investment in networking, as I said at the beginning. If the statement is 'we are investing in AI,' then we build AI centers around the world. As for the war for talent, what is also important is that it's not just about attracting new talent from outside. Every company, including Bosch, with our 400,000 employees who give their all every day, must also make an effort to take existing employees along—invest in training and education, give them interesting tasks, and maintain an attitude that we don't develop technology for its own sake. 'Invented for Life'—we have an ethics code for AI development to ensure AI is for the benefit of people. And the last point, exactly what we touched on earlier: sustainability and early engagement in climate protection. Bosch was the first industrial company to become CO2-neutral at over 400 sites in 2020. That shows that actions follow words. In all our solutions, sustainability is a criterion. The motto is: the best energy is the one we don't consume. In one sentence: Bosch shapes the future.

There is pressure to act on important topics—overcoming the pandemic, climate protection, and continuing dialogue with international partners. Specifically, it would be a commitment to technological openness, both in achieving climate goals and in terms of mobility—for example, moving towards hydrogen technology, because I believe climate goals can only be achieved with complementary technologies. We also wish for the federal government to strengthen Germany and the European location in key technologies: microelectronics, highly automated driving, and how to handle AI and digitalization. Thinking of our ecosystem, sustainability is great when one company does it, but real sustainability only happens along the entire value chain. So we work with our business partners and suppliers to take the next step on sustainability. What I consider most important for colleagues is to enable innovation, think from the perspective of 'Invented for Life,' not commit to one technology, and make sustainability a key feature in all our solutions. And for everyone, I simply wish that sustainability becomes a heartfelt matter. It's not about sacrifice, it's about reasonable behavior and using digitalization to conquer climate change. If we all go in the same direction, we will achieve the goals.

Thank you as well for the exciting podcasts you've already made. I'm looking forward to all the upcoming ones and the collaboration. All the best to both of you. See you soon. Thank you, Jochen.