Industry 4.0 does not only work in large corporations. Small and medium-sized enterprises (SMEs) also need to keep up with the digital transformation and digitize their processes and products. This applies to both young companies in cities and traditional family businesses in rural regions. However, German SMEs still face a number of challenges when it comes to digitalization. Luke Voutta, Education and Digital Affairs Officer at the Federal Association of Small and Medium-Sized Enterprises (BVMW)told aconium GmbH in an interview what help and solutions are available to SMEs in Germany.
aconium: To what extent is the German SME sector already digitized?
Luke Voutta: Although we have seen significant progress in recent years, we as an association still see enormous potential for growth in the digitalization of SMEs. Although a few sectors are very advanced in their digital networking – for example the financial sector or the communications industry – this is unfortunately not yet the case across the board. But what has been apparent for some time now: Digitization is paying off for companies. More and more SMEs are quickly realizing how productivity and added value are increasing.
aconium: What opportunities does digitization offer SMEs?
Voutta: In principle, digitalization offers the opportunity to work more efficiently and cost-effectively. The possibilities are diverse and extend across all business areas. Digital communication allows customer wishes to be implemented much faster and, above all, more precisely. Digital marketing allows us to reach the right target groups in a completely new dynamic and in the shortest possible time. We are currently following developments in artificial intelligence with particular interest. This makes it possible to reduce the workload of our own employees while at the same time increasing productivity.
aconium: What challenges do SMEs face when they want to digitize their processes?
Voutta: The first challenge for most companies is to gain the knowledge of how to make work processes more efficient through digitalization. Medium-sized companies often don’t have the resources to find out for themselves. They need role models and inspiration. Another important factor is the digital skills of their own employees. After all, the latest technological achievement is useless if the employee responsible cannot use it.
aconium: What solutions or assistance are there for SMEs to overcome these hurdles?
Voutta: As the German Association of Small and Medium-Sized Enterprises, we have a constant interest in improving the framework conditions for SMEs. This is one of the reasons why we are the consortium leader of “Gemeinsam digital“, the SME 4.0 Competence Center Berlin. The competence center shows companies concrete opportunities and digitization potential. With an understandable approach and practical, cross-industry offers, we make it clear that even small companies can digitize on a small budget. We provide support with specific digitalization projects in companies, workshops, best practice examples and, of course, our network.
aconium: What would you like to see so that German SMEs are optimally digitized in the future?
Voutta: For me, digitalization is not a state, but above all a dynamic process. That’s why German SMEs are “optimally digitalized” when they try to keep their finger on the digital pulse. To achieve this, even more companies need to enter the age of digitalization. Of course, politicians must also create the right framework conditions for this and not restrict or predetermine what this age is characterized by. Unfortunately, the skepticism on the part of some companies is understandable. Data theft is one example. No company wants to do business with its own data if it is not protected against attacks. Rapid broadband expansion is particularly important for SMEs in rural regions that want to focus more on digitalization.
A study conducted by aconium GmbH on behalf of Hessen Trade & Invest shows how Industry 4.0 works in Hessen: