Everybody wants to be a tech company?
A few years ago, it sounded like the ultimate recipe for success: whether car manufacturer, retail giant or energy company - every company suddenly wanted to be a tech company. The idea behind it was clear: big tech was successful, revolutionary, unstoppable. Technology promised innovation, the scalability of digital transformation and, above all, huge profits. Who wouldn't want to play along?
But then came the change.
Tech was the savior. What happened?
At the beginning of the tech hype, companies invested in major digitalization projects, upgraded their IT and developed their own software solutions. Volkswagen not only wanted to build cars, but also create mobility platforms. Siemens dreamed of revolutionizing industry with digitalized processes. Banks were talking about themselves as "FinTechs" and even supermarket chains were developing their own apps to "better understand customer data". It seemed as if there was no sector that didn't want to look to the future in a tech-driven way.
However, the mantra "Everybody wants to be a tech company" has cracked. A global pandemic, supply chain crises and geopolitical uncertainties such as the war in Ukraine have shifted the focus of many companies.
The reality of tech transformation: not everything shines
A key problem: many companies underestimate how complex and costly the transformation to a tech company actually is. It is not enough to simply launch an app or introduce cloud systems. Digitalization requires comprehensive structural changes, new business models and often a complete transformation of the corporate culture.
The Cariad crisis: tech ambitions vs. reality
Volkswagen also wanted to become a tech company. However, the path to this goal turned out to be more difficult than expected - with expensive lessons. One particularly explosive example is the software subsidiary Cariad, which was supposed to catapult VW into the digital age. Instead, it stands for delays, internal conflicts and the failure of the ambitious plan to develop its own pioneering software solutions.
For years, Volkswagen has invested billions in the development of its own software - almost 12 billion euros. But the results failed to materialize. Constant delays to models and excessive bureaucracy paralyzed progress. The differing requirements of the VW and Audi brands in particular led to tensions. The ambition to be a strong tech company clashed with the reality of a large, complex group.
The most recent example: In June 2024, VW announced a joint venture with the US start-up Rivian. Five billion euros are to flow into the cooperation to finally solve the software problems. However, the decision - taken without consulting Cariad employees - caused unrest and outrage within the company. One senior engineer commented: "This is more or less the end of Cariad."
The crisis as a game changer
The recent global crises have shown that the path to becoming a tech company is not a one-way street. During the pandemic, many digitalization projects were accelerated, but this often only masked existing problems. Remote work and cloud computing helped to maintain business processes, but in many industries the structural challenges remained the same. And as inflation rose and supply chains collapsed, many digitalization projects were put on hold again.
Larger companies in particular are now realizing that technology is not a panacea. Production bottlenecks and rising costs cannot be solved with an app alone. There are also signs of a rethink in the tech world itself: after years of unchecked growth, we are seeing layoffs and a decline in investment in new projects at major players such as Meta and Amazon.
What does this mean for the future?
One thing is clear: technology will continue to play a decisive role. But the blind belief that every company has to become a tech company is over. Companies need to carefully consider how and to what extent technology actually offers added value. It is much more important to approach technological change with caution rather than blindly following trends.
Conclusion
The desire to be a tech company has turned out to be short-term hype in many industries. The pressure to be digital at all costs is giving way to a more differentiated view: technology is a tool, not an end in itself. In times of crisis and upheaval, it is becoming increasingly important for companies to adapt their strategy and use technology as a means to an end - and not as a new corporate goal.