With the outbreak of the coronavirus pandemic at the beginning of 2020, a large part of daily life shifted to digital. This development significantly accelerated the digital transformation in German companies. Companies that had already invested in digitalization before the crisis had a clear advantage during this precarious time. Not only large corporations, but also small and medium-sized enterprises (SMEs) had to deal increasingly with digitalization topics such as e-signatures, home office, paperless office, online stores and mobile payment options.
SMEs in particular, which were still at the beginning, were pushed to the sidelines. This situation makes it clear that digitalization is no longer optional for SMEs. Companies that do not move in the direction of digital transformation not only miss out on opportunities, but also risk being left behind by progress. In addition, the shortage of skilled workers in the IT sector is becoming increasingly noticeable, which further underlines the need for a comprehensive digital strategy. Companies that cannot find qualified IT specialists can turn to no-code platforms as an alternative solution to keep pace with the rapid pace of digital development.
Digitization originally refers to the conversion of physical data into digital formats. A classic example of this is the scanning of a paper document: handwritten or typed texts become text files, photos or slides become image files, and music from records becomes music files. However, the term has evolved over the years. Today, digitization is a collective term for the comprehensive modernization of everyday business and private life.
The digitalization of the world of work is often referred to as the digital revolution of work. New communication and information technologies are increasingly being used in everyday working life, fundamentally changing forms of work and working conditions. This revolution is leading to a more flexible, networked and efficient way of working, with the boundaries between office and home becoming increasingly blurred.
Digitalization is essential for small and medium-sized enterprises (SMEs) to succeed in today's fast-paced business world. By implementing digital technologies, SMEs can increase their efficiency, reduce costs and optimize their processes. Digital solutions make it possible to meet customer needs faster and better, resulting in higher customer satisfaction and an expanded customer base.
In addition, digitalization offers companies the flexibility and agility they need to react quickly to market changes and adapt their business models. At a time when the shortage of skilled workers is becoming increasingly noticeable, digital working environments can also help to attract and retain qualified employees by offering attractive working conditions such as working from home and flexible working hours.
In addition, digitalization opens up opportunities for SMEs to tap into new markets and expand their reach beyond regional borders, leading to sustainable growth and success in the long term. In short, digitalization is the key for SMEs to remain competitive, adapt to the demands of the modern business world and fully exploit their innovative power.
It is often small individual measures that lead to further digital activities:
A patient transport company sets up an online ordering system on its website, notices that the number of journeys is increasing and decides to offer hospitals a digital booking portal. The new digital orders not only relieve the burden on employees, but also generate additional revenue.
An electrical company has positive experiences with digital timesheets and finally invests in a staff scheduling system that automates and documents shift planning, time recording and payroll. The new system not only simplifies payroll, but also ensures greater reliability and employee satisfaction, resulting in significantly lower staff turnover.
Digitalization in SMEs is not a final goal, but rather an ongoing process that drives the company forward and opens up new business areas. This continuous change is often referred to as digital transformation, which involves a combination of changes in strategy, business model, processes and organization through the use of digital technologies. Technology plays a central role and drives development, but is never an end in itself, but an important tool for promoting sustainable growth and innovation.
Digitization is crucial for small and medium-sized enterprises (SMEs) for several important reasons:
It should not be underestimated that advancing digitalization has permanently changed the demands and expectations of customers. Customers are networked, well informed and digitally demanding. They expect comprehensive advice and product information, individual solutions and fast responses to inquiries. Up-to-date status notifications and binding delivery dates are just as important as effective and reliable service and a choice of different payment options. Only companies that meet these requirements will retain their customers in the long term.
A successful digital transformation is a step-by-step process based on a solid strategic foundation. The first step is to develop a clear vision and a comprehensive understanding of digital goals and opportunities. This begins with a thorough inventory of the current IT infrastructure and business processes to identify weaknesses and potential. A committed management team and an adaptable corporate culture are necessary, as digitalization entails both technological and organizational changes.
Employees must be sensitized to the digital transformation and continuously trained in order to be able to use the new technologies effectively. The involvement of all departments and the formation of a cross-departmental team support the digitalization process and ensure that all relevant aspects are taken into account. Choosing the right technologies and tools that are flexible and scalable is also crucial.
It often makes sense to bring in external consultants to determine what is possible and sensible. The result should be a clear formulation of objectives:
As soon as the targets have been set, the processes and competencies need to be defined:
Once this has also been clarified, implementation can begin. This should be done in small steps and always take into account the existing data protection regulations.