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How Digital Are German Companies?

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How Digital Are German Companies?
How Digital Are German Companies?

Video: How Digital Are German Companies?

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Video: Digital transformation: Why is it taking so long for Germany to go digital? | Meet the Germans 2023, January
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The digitalization of the commercial economy in Germany has increased significantly compared to the previous year. According to the economic index DIGITAL, which TNS Infratest and ZEW published on behalf of the Federal Ministry for Economic Affairs and Energy in the "Monitoring Report Economy DIGITAL 2016", Germany now reaches 55 out of a possible 100 index points in terms of the degree of digitization of its commercial economy. This is an increase of six points over the previous year. Germany's forecast of the surveyed companies in five years is 58 points.

Degree of digitization is increasing

“In order for companies to continue making such significant progress in the implementation of digitization, it remains important to further reduce the obstacles. In addition to broadband and investment requirements, clarifying data protection and data security issues can also facilitate the general conditions,”says Dr. Sabine Graumann from TNS Infratest, who has overall responsibility for the study. 47% (2015: 34) of the commercial economy have highly digitized their internal processes. 70% (2015: 64) have integrated digitization into their corporate strategy. The digitization of business activity has also increased. 43% of the commercial economy (2015: 27%) already generates more than 60% of their sales digitally. The intensity of use of digital technologies is still high.72% of permanent employees use stationary, 31% mobile devices. The use of digital services can still be increased.

Big differences between industries

The economic index DIGITAL shows that the commercial economy can be divided into three digitization dimensions between "high", "average" and "low". 27% of companies in the commercial economy are digitized "high" (> = 70 index points), 49% "average" (40 to 69 points in the index) and 24% are "low" (<40 points) digitized. If you look at the eleven core industries within these dimensions, major differences become clear.

"Highly" digitized: The ICT industry is and remains a digital pioneer and has jumped to 75 index points. It is significantly above the overall DIGITAL 2016 economic index of 55 points. The knowledge-intensive service providers are also classified as "highly" digitized, with 70 points today and 79 points in five years. According to the forecast, they will even place 77 points ahead of the ICT economy in 2021.

"Average" digitized:This shows seven of the eleven core sectors of the commercial economy analyzed. The finance and insurance industry is in third place with 61 points after the highly digitized industries. It is forecast to improve by three points by 2021. Trade is currently 55 points (2021: 58 points) and is in fourth place with a clear lead over energy and water supply with 48 points (2021: 52 points) in fifth place. Mechanical engineering came sixth in the index with 46 points (2021: 47 points) ahead of the seventh-placed chemical and pharmaceutical industry, which currently and in the future will achieve 45 points in the index. While the transport and logistics sector is in eighth place with 43 index points in 2016,it will improve to seventh by 2021 due to a significant increase to 47 index points. Vehicle construction is and will remain in ninth place with 40 points each in both years.

"Low" digitized: This is and remains the healthcare sector with 36 points (2021: 38 points) and the other manufacturing sector, which stagnated at the bottom with 35 points in eleventh place.

What advantages does digitalization offer companies?

84% of companies in the commercial economy see improving cooperation with external partners and 80% increasing the efficiency of internal processes as the two greatest advantages that digitalization has brought to their companies. Three quarters confirm clearly recognizable growth increases, 71% a visible increase in their innovative ability.

What is lacking?

The biggest obstacle to the expansion of digitalization in the commercial economy is the undersupply of broadband (40% of those surveyed). At 38%, the high investment requirement is the second biggest hurdle. Although 85 (2015: 80)% of companies in the commercial economy consider digitization to be significant overall, 32% still state that the high expenditure of time is a hurdle. Almost every fourth company sees the lack of reliable standards (28%) and data protection and data security issues (25%) as obstacles to digitalization. 25% of companies in the commercial economy do not consider digitization necessary.

Content of the article:

  • Page 1: How digital are German companies?
  • Page 2: Need for action by politics

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