1. Why digitalisation matters
Digitalisation in mid-sized companies allows businesses to optimise their processes, cut costs and increase efficiency. Digital technologies such as cloud computing, artificial intelligence and big data are key components with a significant impact on operations.
Example: By implementing Internet of Things (IoT) technologies, a mid-sized manufacturer significantly improved the efficiency of its machine monitoring and maintenance. This reduced downtime by 20% and cut maintenance costs by 15%.
2. Current status and trends
According to a Deloitte study on the status quo of digitalisation in the Mittelstand, many companies have already taken first steps, but considerable potential remains untapped. Trends and signals from the industry show that companies are investing more heavily in automation and data-driven decision-making.
Example: A mid-sized retailer uses data analytics to better understand its customers’ buying behaviour and to develop personalised marketing campaigns. This data-driven strategy increased revenue per customer by 12%.
3. Funding programmes and support
There are numerous funding programmes tailored specifically to the needs of mid-sized companies. Programmes such as go-digital and Digital Jetzt offer financial support and advice for implementing digitalisation projects. Public support for digitalisation in the Mittelstand is essential to make it easier for small and mid-sized companies to access new technologies.
Example: Through the go-digital programme, a mid-sized trade business received funding to introduce digital order management. This allowed the company to plan and run projects more efficiently, increasing productivity by 25%.
Further funding programmes:
- Mittelstand 4.0 competence centres: These centres offer training, workshops and individual advice to help companies introduce digital technologies.
- Federal Ministry innovation vouchers (go-innovativ): These vouchers fund consulting services for developing and implementing new digital business models and processes.
4. Challenges of digitalisation
Although digitalisation offers numerous benefits, companies also face considerable challenges. Cybersecurity is a critical aspect, because growing connectivity also increases the risk of cyberattacks. In addition, there is a shortage of skilled workers in information technology, which makes it harder to implement digitalisation strategies.
Example: A mid-sized logistics company implemented a comprehensive IT security strategy to protect its digital systems from cyberattacks. Through regular employee training and investment in modern security software, the company reduced the number of security incidents by 50%.
Further challenges:
- Cultural change: Digitalisation often requires a shift in corporate culture towards more openness and willingness to innovate. This can trigger resistance among employees, which needs to be overcome with targeted change management.
- Integrating existing systems: New digital solutions must integrate seamlessly into the existing IT infrastructure to avoid disruptions to operations.
5. Best practices for mid-sized companies
To maximise the chances of success in digitalisation, companies should develop clear digitalisation strategies. Implementing best practices such as continuous employee training, a clear IT security strategy and integrating digital solutions into core processes is crucial.
Further best practices:
- Agile methods: Introducing agile ways of working such as Scrum or Kanban can make companies more flexible and responsive and thus speed up the delivery of digital projects.
- Partnerships and collaboration: Working with technology providers, universities and other companies can make it easier to access innovative solutions and expertise.
- Pilot projects: Start with small, manageable digitalisation projects to gain experience and minimise risks before launching larger, more comprehensive initiatives.
Conclusion
Digitalisation is an indispensable step for keeping mid-sized companies future-proof and competitive. By making use of funding programmes, overcoming challenges such as cybersecurity and the skills shortage, and implementing best practices, mid-sized companies can fully exploit the benefits of digital transformation and sustainably increase their efficiency and competitiveness.
