Digital transformation requires rethinking

Whether it's a weak cell phone network, slow Internet or unavoidable administrative procedures: Although there's really no way around the digital transformation for Germany as an industrial location, progress has been far too slow so far. The situation is no different for companies in German-speaking countries, as is now clearly evident in the wake of the Corona crisis.

Although companies may have already achieved a high level of digitization in purely technological terms, they are hesitant to think and implement "digital" in terms of, for example, payment tracking, delivery flows or adapting production to new conditions and collaboration models.

We take a critical view of this development, as there are no alternatives to the digital transformation. Economically, the digital transformation holds enormous potential and companies in the German-speaking world are certainly capable of innovation. But before that, a rethink must take place. As mentioned, digital business models are gaining in importance and can already determine whether a company can compete successfully.

To strengthen Europe as an industrial location, increasing the level of automation, as described in the Industry 4.0 initiative, remains very important. So far, however, too many companies have been content to automate existing business processes instead of taking a comprehensive strategic look at their business models. Artificial intelligence can at best help to implement new approaches and ideas.

Small and medium-sized companies are finding it particularly difficult. This is not surprising, since the digital transformation of entire business and perhaps even production models can be expensive and requires many employees. Here, however, the shortage of skilled workers is making itself felt.

In order to strengthen Germany as a high-tech location and to master the economic and social transformation, DSAG believes that, above all, there must be a stronger (knowledge) transfer between universities, research institutions and business in order to train young talent in a practical manner. In parallel, the development of a sustainable learning culture and thus the continuous education and training of existing employees plays an important role.

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