The formula is simple: digitization pays off. Medium-sized industrial companies in particular are increasingly recognizing why the digital transformation of business and production processes is crucial to remaining competitive. The Corona crisis has given a further boost to the development toward digital business models in SMEs. Two recent studies show the state of digitalization in SMEs.
Among other things, the “Digitalization Index for SMEs 2020/2021” sheds light on the digital status quo in German industrial companies. The study, commissioned by Deutsche Telekom, concludes that medium-sized industrial companies with a high level of digitization have come through the Corona crisis significantly better than companies that have not yet digitized their processes or have done so only in part.
How digital is the industrial sector?
- 42 percent of companies made short-term adjustments to products or their business model during the Corona crisis.
- 62 percent of companies introduced or expanded new working models such as home office during the Corona pandemic.
A study commissioned by the digital association Bitkom came to similar conclusions. Of 500 SMEs surveyed, only twelve percent doubted the benefits of digitization in the SME sector. Before the start of the Corona crisis, more than one in four companies still had doubts as to whether digital transformation could bring benefits to the company.
Digitization of SMEs: More revenue and better customer loyalty
Particularly when it comes to data analysis, medium-sized industry is already well positioned. According to the Digitization Index, 78 percent use data analytics to monitor processes or develop new products. Digital models for production processes are also high on the agenda for digitization in SMEs. Almost one in three industrial companies surveyed now uses digital solutions for the remote control of machines and equipment. Companies that already use remote monitoring and remote control see strong competitive advantages:
- 81 percent see an increase in productivity.
- 79 percent record a reduction in downtime.
Digitalization in SMEs is a crucial success factor for companies. We show how the digital transformation is changing business and production processes and what role individual software solutions play in this process in our wiki article “Why digitization is so important for SMEs.”