The Acceleration of Digitalization in German Companies
The COVID-19 pandemic has significantly driven the digital transformation of businesses in Germany. Nearly half (49%) of companies report that the pandemic has accelerated the digitalization of their business models. This key insight comes from a representative survey of 1,102 companies with 20 or more employees across various industries, conducted on behalf of the digital association Bitkom.
Impact of COVID-19 on Business Digitalization
Digital transformation is now a priority for many companies:
- 44% of businesses have expedited the digitalization of their processes, a substantial rise from 18% in 2020.
- 60% believe that digital technologies have been instrumental in managing the challenges posed by the pandemic.
- 53% acknowledge that COVID-19 has sparked innovation within their organizations.
- 83% of businesses now have a digital strategy, a notable increase from 74% two years ago.
Growing Investments in Digital Infrastructure
The trend toward increased investment in digitalization continues in 2022:
- 29% of companies plan to invest more in digital office and administrative processes than they did in 2021.
- Only 14% intend to reduce their investments.
- 53% will maintain their current level of digital spending.
According to Bitkom President Achim Berg, “Digitalization makes companies more resilient. The pandemic has reinforced this realization within the German economy. Businesses now understand that digital transformation is not free, but the momentum generated by COVID-19 is driving overdue changes forward.”
Challenges in the Path to Digitalization
Despite the progress, businesses still face significant barriers:
- Financial constraints: 73% of companies perceive digital investments as too costly.
- Data security concerns: 65% fear unauthorized access to sensitive information.
- Shortage of skilled workers: 64% struggle with a lack of qualified personnel.
- Time constraints: 55% cite insufficient time for digital initiatives.
- Data loss fears: 54% worry about potential information breaches.
- Lack of standardization: 53% mention the absence of clear guidelines.
- Regulatory challenges: 52% find legal and compliance requirements burdensome.
Additionally, 51% of companies are concerned about excessive data protection regulations and IT security risks, while 41% encounter internal resistance to digital changes.
The Economic Benefits of Digitalization
Businesses are increasingly recognizing the advantages of digital transformation. In 2018, 34% of companies were uncertain about the economic benefits of digitalization; today, that figure has dropped to just 19%.
Berg emphasizes, “The last doubts about the necessity of digitalization have been dispelled. However, digital transformation is not an automatic success—it demands effort and resources. Companies must now focus on overcoming existing obstacles to ensure long-term growth and competitiveness.”