Digitization Index of German Industry: A Branch comparison
Which german industries are the most digitized and which ones will be leading the digital transformation in the next few years?
This week, we examine the current state of digitization in Germany by industry. Which industries are serving as role models and which industries should use the current crisis to catch up in various areas?
There are major differences between the sectors of the German economy in terms of their level of digitization. Banks, insurance companies as well as information and telecommunications companies lead the field. In the last place are chemical and pharmaceutical companies, machinery and plant engineering, and logistics.
The core problems (in particular) of the low-performing sectors, are the lack of development forces for digitization. An additional problem field is the persistent extensive use of paper documents. Only 30% of the companies have digitized most their business processes to a degree that they are free of media disruption. This allows parallel use of paper and digital documents and thus inconsistencies, redundancies, and double work in nearly all companies.
Only every seventh company plans with digital business models. However, these figures are from the time before the Covid 19 pandemic.
Reasons for a lack of digitization can be seen in the logistics sector. It is indeed the case that there are technical possibilities, such as cameras and computers or robots, which take goods off the shelves / pack them into packages. However, the upfront investment needed to implement these is usually high.
Another concern is the employees that would be dismissed since digitized machines would take over their jobs. Due to the current crisis, it can be assumed, however, that far-reaching digitization measures will be implemented.
Join us next week when we will take a look at possible actions to implement.