Why digitization in the craft sector depends on external impulse

The skilled trades are often accused of lagging far behind in digitization. This is often true. Apart from a few lighthouses that have understood digitization as an opportunity and have already “mastered” this topic, many companies in the skilled trades still have a long way to go. My consulting experience has shown me that this is often due to a lack of impetus. However, most craft enterprises are not in a position to do this on their own. This article explains why external stimulus and support are needed.

The impetus for digitization in the skilled trades: A brief history

Digitization is an ongoing process. But everything has to start somewhere, otherwise, nothing will change. I would like to tell you a story, which once again made me realize that this often happens from the outside.

On social media, one of our posts was shared and a potential customer became aware of our products and services. She’s currently looking for software and is based nearby to boot. She picks up the phone and calls.

In a personal conversation on-site, I learn a lot about the company’s processes, where things are stuck, and what needs to be done. The main point, however, is the personal story and motivation of my interlocutor. She is one of the children of an entrepreneurial family and does not actually work here. Due to the pandemic, she’s on 100% reduced working hours. In addition, in the parental craft business, an important employee has dropped out and there is enough work. Therefore, she is currently helping out.

She had already worked in the company for a few years, but then studied and finally found another vocation. Therefore, she knows everything and has quickly picked up the scent, which has already pursued you back then, something has to change. Processes have to be simplified, accelerated, and automated with the help of digitalization. In the meantime, she also gained valuable experience in this area.

Getting the digitalization ball rolling

These coincidences, if you want to call them that, get the stone of digitization rolling. The daughter sees the opportunities and takes the reins of action.

She is only there for a limited time and therefore acts like an external employee or almost like a consultant. She sees digitization as a project and knows that she urgently needs to push it in such a way that it bears fruit in the long term. Otherwise, nothing will change. We can see that in this case, the impetus comes from outside.

I am convinced that if this external stimulus had been lacking, the topic would have fallen by the wayside for a long time to come.

Typical craft

There are many reasons for this, and this story serves as a prime example, everything is under control, the company is functioning, and there are apparently no problems. But despite this, it is clear to all employees and also to the entrepreneurs in the company that things could be simpler.

But the decisive point is missing, the impulse to change something. Who or what is making a start?

Lack of affinity for digitization

Craftsmen are well-trained specialists, they master their craft perfectly, are well-educated, and do a solid job. In the rarest cases, however, this craft has something to do with digitization, i.e., processes, EDP, software, or the like.

Journeyman and master craftsman training can only touch on these topics, if at all.

Last but not least, of course, you enjoy doing your actual job. That’s exactly why you took it up, because you love what you do, and there’s little time for anything else.

Digitization projects get bogged down in day-to-day business

That’s where the next problem comes in, craftsmen are usually very busy and, due to the shortage of skilled workers, often don’t have enough staff. The order books are overflowing and the focus is on working them off.

There is simply not enough time to deal with strategic issues in addition to day-to-day business. They are not tackled at all or get bogged down in day-to-day business.

Little structured knowledge and documentation of processes

Often, little thought is given to the structure of the company and its processes. In the rarest cases, these are clear and conscious. Even more rarely they’re documented.

This makes it difficult to find starting points. Both internal employees and external consultants must first gain an overview. But it is precisely these concrete starting points that are needed to make a difference.

Tight budgets

In some cases, margins in the skilled trades are thin. It remains to be seen where the causes are to be found, often this is simply the case. Against this background, new ideas and possibilities are not implemented or not even considered because of the investment costs.

It is not seldom an unfounded fear of high costs. On the one hand, it is possible to achieve a great effect even with a small budget, and on the other hand, a correct and good investment in efficiency and effectiveness increases is a profitable thing.

It is not only in the skilled trades that digitization is not being addressed

To come to the defense of the skilled trades, it is not only there that necessary digitization projects are not tackled or fail. Other industries are also failing, people often fall short of the possibilities and expectations.

Digitization is complex

Digitization is a very complex topic;

• It affects several areas of a company, if not all.
• Many, often very different people and groups, have to be involved.
• External service providers with specialized knowledge are necessary.
• There are many products and solutions on the market, which in themselves are highly complex.

These are only a few aspects. It is therefore all the more understandable that many people cannot see the forest for the trees.

Paralyzing fear of wrong decisions

Many decisions are often investment decisions, i.e. amounts have to be released. Wrong decisions can therefore be expensive. The fear of having to take responsibility for wrong decisions and having to write them off often leads to paralysis among decision-makers. It is better to do nothing at all before making a mistake.

Digitization requires special knowledge and skills

Employees aren’t often properly involved and are not sufficiently trained in digital topics. The necessary knowledge and skills are not yet present in the minds of employees. Where is it supposed to come from?

Decisions are often made in isolation and not communicated sufficiently. As with all overarching issues, however, digitization can only succeed if everyone is involved. A lot of coordination is needed here, and a sure instinct is required. But who can do this internally and, above all, who tackles it? Often no one! Once again, the impetus is missing.

A prophet has no honor in his own country

What occasionally happens is that when someone takes the initiative, he has to fight windmills. People are skeptical of change and cling to what they love. A lot of convincing has to be done here. That can be exhausting, and some people are reluctant to take action. The digitization project is buried again or doesn’t even get off the ground.

Digitization in the skilled trades can succeed

As this story shows us, if an impulse comes from the outside, if it is steered in the right direction, and if there is a desire within the company to change something, then digitization can also succeed in the skilled trades. Because especially where there is a lot to do, the measures quickly show the desired success.

It takes a seed that falls on fertile soil. Fertile soil alone is not enough.

What exactly is necessary for this, you will learn in many of our other reports and we will be happy to find out together with you: Talk to us!

What is important, however, and this should now be clear, the first impulse is necessary. Allow it and welcome it. No matter where it comes from. Because often this happens from the outside.