Leadership at the Limit: Balz Zürrer on Our AI-First Transformation at the HSG Alumni DKon

AI-First in Practice

How do you lead a company through a period of technological change that simultaneously creates opportunities, uncertainty, and a real need for action? That’s exactly what Balz Zürrer, Group CEO of Online Group and President of the HSG Alumni AI Club, discussed at this year’s HSG Alumni Germany Conference in Munich. Under the conference theme “Leadership at the Limit—Management in the AI Era,” he demonstrated how we, as a company, have taken the step toward becoming an AI-first organization—not as a side experiment, but as a strategic leadership decision.

Balz Zürrer on stage at this year’s DKon event organized by HSG Alumni.

A Bet on Our Customers’ Future

About two and a half years ago, the Online Group faced a key question: Should we wait until the artificial intelligence market has settled down—or should we actively shape its development? For Balz, one thing was clear: “AI-first” is not a traditional strategic decision backed by a perfect business case. It’s a strategic bet on where customers will see real value in the future.

This initiative had three dimensions: Customers should be provided with a partner who can pragmatically integrate AI into their processes. Employees should work in an environment where they not only discuss modern tools but also use them on a daily basis. And the company itself should become measurably more effective, efficient, and successful.

From Strategic Objectives to Measurable Impact

The goal was ambitious: The Online Group wanted to succeed with AI. Not someday, but right now. That meant treating AI not as a side issue, but as the core of the company’s development.

The results show that this approach has been effective. In 2025, the Online Group set a record for new customers, achieved the best fiscal year in its history, and at the same time reaffirmed its strong employer culture: 97 percent of employees said in the Great Place to Work survey that Online is a very good place to work.

For Balz, that is precisely the key point: “AI-first” doesn’t just work on one level. When implemented correctly, AI creates value for customers, empowers employees, and improves business performance.

“AI-first” is not an IT initiative

One of the most important lessons learned from the transformation: AI cannot be delegated to a specialized team. At the beginning, we, too, had the idea of setting up a central AI team. But it quickly became clear that this wasn’t enough.

An “AI-first” approach only takes shape once AI is integrated into teams, processes, and business units. Technology experts lay the groundwork. But the real change happens where people are responsible for processes, customer impact, and operational excellence.

Or to put it another way: AI is a leadership task—not just a technical one.

The participants listen to Balz with interest.

Culture Beats Plastic Sheets

A prime example of this was the Vibe Coding Challenge in Palermo. The goal wasn’t to hold yet another training session. The goal was to spark enthusiasm and a sense of self-efficacy. Employees built their own applications, tested new tools, and experienced firsthand what AI suddenly makes possible.

What’s particularly exciting is that it wasn’t just developers who created compelling solutions. Employees outside of software development also developed their own applications. This is exactly where “AI-first” becomes tangible: when people realize that, with these new tools, they can achieve more than they previously thought possible.

What didn’t work was just as valuable

Balz also spoke openly in Munich about the setbacks. After all, true transformation isn’t a linear process. The idea of a separate AI unit proved to be ineffective. Some team members were unwilling or unable to go along with the plan. And an internal ISO 27001 bot, which made sense from a technical standpoint, was practically never used.

The lesson here is that AI needs to provide real added value. Not every application is automatically useful just because it was built with AI. What matters is whether it solves a real problem better than the existing process.

Why Focus Is Crucial

For the Online Group, the technological focus on the Microsoft platform was a key success factor. AI is most effective when it is integrated into the tools people already use: Microsoft 365, Teams, Outlook, Copilot, business applications, and the relevant data sources.

This focus helps with security, data protection, integration, and scalability. This is especially crucial for medium-sized companies: If you want to become AI-first, you don’t need as many tools as possible—you need a clear platform strategy and robust governance.

The Next Disruption: Revenue Management

While AI is already having a major impact on software development, Balz sees the next big change coming in the revenue process. From lead generation to proposal creation to the customer’s signature, agents will increasingly be responsible for preparing, structuring, documenting, and triggering the next steps.

People remain central, but their role is changing. Salespeople spend more time in genuine conversations with customers. AI agents take on tasks that can be standardized, provide a basis for decision-making, and speed up the process.

The goal is not automation for automation’s sake. The goal is to have a greater impact where people make the biggest difference.

Leadership in the Age of AI Requires Courage and Clarity

Balz’s message at the HSG Alumni DKon was clear: AI is disruptive. Every company must decide for itself whether to actively shape this change or wait and see. An AI-first strategy requires courage, because not everything can be planned. It requires focus, because not every idea can be pursued. And it requires leadership, because technology alone does not transform an organization.

The Online Group has not yet reached its goal on this path. But experience so far shows that the effort is worth it—for customers, for employees, and for the company as a whole.

Conclusion: AI-first is not a project. It is a leadership decision.

The transformation into an AI-first organization doesn’t start with a tool. It starts with a strategic mindset: Where will value be created in the future—and how do we consistently align our company with that?

It was precisely this perspective that Balz Zürrer brought to the stage in Munich. Drawing from real-world experience, with concrete lessons learned, measurable results, and a clear call to action: don’t just observe AI—help shape it.

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