Interview: Digitization in the SME sector
Measuring the degree of digitization
With the "Digital OR Dead" awareness campaign, Abas Software and its partners want to prevent German SMEs from falling behind when it comes to digitalization. In a brief interview, Mark Muschelknautz reveals more about the motivation behind the campaign.
How high is the level of digitalization of German SMEs?
Prof. Gerrit Sames gives us one of the most precise answers to this question with his study on the degree of digitization of business processes in SMEs. He examined 41 business processes in almost all areas of the company at 155 companies. Not unexpectedly, the results show that the degree of digitalization is more advanced in larger companies. However, it is at a low level overall.
The survey results also suggest that there is a clear discrepancy in SMEs between the digitalization technologies already available and their actual use in companies. In light of the shortage of skilled workers and the opportunities for business model expansions, the state of digitalization can only be classified as questionable. Judging by the study, German SMEs clearly have an implementation deficit.
What impact does a low level of digitalization have on a company?
It becomes less competitive, it is not as fast and it cannot keep up with the prices of its digitalized competitors. It cannot implement important data, such as what its customers want in terms of innovations, as quickly as its competitors, who are in a digital dialog with their customers.
The new competitor may offer end customers new, exciting added value, such as tracking from order placement to delivery of the ordered product. This requires a digital infrastructure. But for me, one of the most dangerous and underestimated implications is People in a company that consistently ignores current technology trends will be left behind. Standing still can be disastrous. Conversely, an appetite for innovation and competition has a positive impact on the entire corporate culture. Today, it is more important than ever to stay on the ball as an individual and as a company.
What role does the "Digital OR Dead?
We want to raise awareness. Many SMEs are in danger of disappearing in the next 15 years because they are losing touch technologically. With our campaign, we are approaching the topic in the most understandable language possible, without tech talk and with concrete suggestions. We provide tips that have been developed in collaboration with industry partners and universities.
We propose specific services or technologies to the participating companies. We have asked a group of partners and specialists to put together suitable workshops, consulting modules or even products. Some of our own offers are also included.
How exactly can the campaign help SMEs to avoid falling behind?
We have been on the market as an ERP provider for over 30 years. We are aware of the realities and challenges of manufacturing-related SMEs. Before most of them get to grips with artificial intelligence and machine learning, they have a number of more important tasks to catch up on. We are therefore starting with a "readiness test" developed by Prof. Gerrit Sames from the Technical University of Central Hesse. This allows companies to test the degree of digitalization of their most important business processes and compare them with other similar companies. Based on the test results, we then explain to them in simple terms what steps they need to take to become more competitive in the area in question.
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