Digitization has arrived in the German SME sector

German SMEs are in the midst of the digital transformation. This is the result of the representative Telekom study “Digitalization Index for SMEs 2021/2022”. According to the study, the level of digitization among SMEs has risen to 59 out of a possible 100 points. In the transformation process, SMEs are focusing in particular on the topics of modern working environments and sustainability. The majority of investments are going into IT security and data protection.

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Greater security through digital technologies

When companies had to send their employees to the home office during the Corona pandemic, significant security gaps were revealed in some cases. Many mid-sized companies were affected by cyberattacks. Only 43% of employees from the companies surveyed consider their mobile workplaces to be adequately secured. Therefore, among other things, the companies are pursuing the goal of improving security for e-mails and relying more on encryption technologies. They also plan to invest in identity management and authentication solutions. With the help of digital technologies, companies want to increase their resilience in times of crisis.

Sustainability is gaining in importance

Awareness of resource-conserving and climate-friendly business practices is growing significantly among German SMEs. For 43% of the companies surveyed, sustainability now has a high to very high priority. In the future, the companies would like to make greater use of the opportunities offered by digitization for sustainable action – from resource-conserving production and sustainably operating suppliers to optimized route planning in logistics. 70% of the companies are increasingly relying on online events instead of face-to-face events, and 29% are reducing business trips.

Expansion of investments is planned

According to the “Digitalization Index for SMEs 2021/2022”, SMEs in Germany will maintain the accelerated pace of digitalization. 93% say they will continue to invest in digital projects. Almost half of them plan to increase investments by an average of 24%. The money is to flow primarily into digital collaboration technologies and security solutions. 69% of respondents also want to expand customer communications via digital channels.

Study determines current digital status

The “Digitalization Index 2021/2022” determines the degree of digitalization of more than 2,000 SMEs in Germany. The fields of action analyzed include the relationship with customers, productivity in the company, digital business models, and IT security and data protection. The maximum index value achievable across all criteria is 100 points. The study also examined for the first time the impact of New Work, the new ways of working in the global and digital age. The role of climate protection for German SMEs was also part of the study.