Ensuring competitiveness – Digitization as a tool against economic collapse

As long as the economy is running smoothly, many business decision-makers ignore the need to digitally transform their company. When the next economic downturn is foreseeable, this can have devastating consequences.

It is a deceptive boom that tempts many companies into carelessness; Despite increasing Brexit uncertainty, the Ukraine war, rising raw material costs and energy prices, unresolved trade conflicts, delivery difficulties, and other threats to economic development, order books in Germany are still full. Nevertheless, decision-makers should not lull themselves into a false sense of security. At the same time, there are increasing signs that the long-term economic upswing has passed its peak and is in danger of running out of steam in the coming months.

For medium-sized companies in particular, this uncertain situation can lead to existential problems: Decision-makers are putting off investments in digitization, thus risking their future viability. If companies fail to leverage the potential of digital transformation in good time, they will not be able to achieve the efficiency gains and cost savings they urgently need in a deteriorating macroeconomic environment. If companies do not leverage the potential of digital transformation in good time, they will lack urgently needed efficiency gains and additional sources of revenue in a deteriorating macroeconomic environment.

The background; The global economic climate has cooled considerably. Even a recession is no longer ruled out. Because the macroeconomic headwinds are increasing, experts say it is “high time” that companies now systematically drive their digitization. After all, digitization offers two key levers for decisively improving the resilience of one’s own company.

So-called “internal digitization” with the help of IT-supported automation makes it possible to increase the efficiency of processes within a company. Costs and the use of resources are reduced through the use of modern hardware and software, and lead times for the creation of products and services are shortened.

External digital transformation, on the other hand, is firstly about increasing customer loyalty through an improved customer experience and data-based user analyses.

Whereas for customer experience and data-based user analyses, in the skilled trades sector, is important to react quickly, plan ahead, and always keep an eye on one’s trades and operating resources.

Despite these opportunities, medium-sized companies in particular continue to have difficulty with the topic of “digitization”. This is largely due to the fact that digital transformation is generally capital-intensive. Financing from own resources can therefore quickly reach its limits. As long as the business is still running smoothly during economic booms, decision-makers often delay the necessary investments.

The skilled trades in Germany are facing major challenges across the entire sector. More and more craft businesses are recognizing the need and the opportunities to digitize. Although there are still palpable fears and a distance to digitization in the skilled trades among craftsmen, it is clear to many companies that they will be at a competitive disadvantage without change.

The federal and state governments support small and medium-sized craft enterprises in taking advantage of consulting services and implementing digitization projects with subsidies, subsidies, and financing offers.

We would be pleased to accompany you on your way to “digitalization”. We advise and support you so that you remain competitive in the future.

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