As part of the study, around 2,000 large companies in Germany with an annual turnover of EUR 250 million or more were surveyed by Etventure in collaboration with GfK Nuremberg between July and August 2019. The result: while around two thirds (62%) of companies named digital transformation as one of their three most important corporate goals in the previous year, this figure is currently around half (54%).

At the same time, measures to achieve this focus much more than in the previous year solely on the digitalization of analogue processes or existing business models (2019: 67% / 2018: 55% ) and only a fifth on the development of new digital business areas (2019: 21% / 2018: 28%).

Philipp Depiereux, founder and Managing Director of Etventure: "The trend in terms of the importance of digital transformation and implementation is going in the wrong direction. The digital transformation will fundamentally change the economic system and we are just at the beginning." On the positive side, many companies are digitizing processes or even their existing business model. This could quickly generate profits by reducing costs and increasing efficiency. "However, this is just the 'homework' that every company has to do with regard to technological change and the changing needs of their B2B or B2C customers," Philipp Depiereux continues. "The key to further company growth, new target groups and new sales, on the other hand, lies above all in the development of new digital business models - and this is also crucial in the long term in order to maintain a leading position on the market. This danger is hardly seen by companies overall."

Lack of qualified employees as the biggest obstacle

The biggest current obstacle to implementing the digital transformation is by far the "lack of qualified employees with digital expertise" (76%). At the same time, it is striking that trust in existing employees is dwindling. Whereas two years ago, almost one in two large companies believed their employees were sufficiently qualified to drive digitalization forward, this figure is now only around a quarter (28%). Other key hurdles cited were "lack of time" (50%) and - at 45% - the realization that the company "lacks the experience to digitally implement products and processes."

Although the large companies surveyed stated that they invest heavily in further training, a fundamental problem is evident here. Philipp Depiereux: "Above all, digital transformation means a cultural change in work and mindset, away from perfectionist 'engineering thinking', away from a focus on the product and towards the customer. Disruption must not be shied away from, but must be brought about by the company itself." As long as this is not holistically anchored in the company, training and learning successes will fizzle out after a few weeks at the latest. "The recipe for success is therefore to get out of the core organization and into a protected space where digital business models can be developed, tested and implemented very quickly using new methods," says Depiereux. "Outside the core organization, employees can then live new methods and agility and experience and evaluate their direct impact. Successes from such protected digital units must then be used to inspire employees and gradually transform the core organization."

Lack of problem awareness in management

Despite the massive concerns about skilled workers and their own employees, six out of ten companies believe they will be able to shape the change. At the same time, almost one in two decision-makers surveyed (46%) said that their company would not have to fear a loss of revenue in the next three years, even if no digital transformation measures were taken at all.

According to the Etventure study, two factors in particular play a role here: firstly, a majority of 41% believe that their own industry is under strong or even very strong pressure to change as a result of digitalization. However, only 23% of respondents believe that the same applies to their own company's business model.

On the other hand, only a few managers can still imagine that tech companies such as Google or Amazon could be their biggest competitors (2019: 21% / 2018: 22%). Instead, the vast majority (2019: 76% / 2018: 71%) believe that the greatest threat only comes from companies in their own sector. Almost no one is worried about start-ups (2019: 3% / 2018: 7%).

Philipp Depiereux: "The assessment that doing nothing is also an option is particularly serious. These companies lack a comprehensive picture of the force and speed with which the digital transformation will continue to change the economy. The big tech companies have long been reaching for B2B business too. But there are also successful examples of digital platforms that traditional companies such as Klöckner or Covestro have built up. The pressure to do something is enormous. In my observation, however, German companies are saturated after a long period of strong economic activity and are not innovative enough when it comes to conquering new business areas. The order books are currently full and the focus is primarily on processing. Yet now is precisely the right time to invest and think about the day after tomorrow. The economy is weakening. When the order books are empty, there is enough time for the topic, but then innovation budgets are usually cut."

Digital sales development divides the market

One percent of large companies in Germany are already channeling half or more of their total investments into digital transformation measures. For two thirds, however, this proportion is a maximum of ten percent. A striking division is emerging in the market. There is already a notable group of companies (19%) that generate half or more of their turnover via digital channels. "According to our survey, this group could grow to around 30% by 2022," says Etventure Managing Director Philipp Depiereux. "The short-term winners of the digital transformation also include companies that can reduce costs through digital process optimization and increased efficiency. However, because many will continue to invest very little in digital transformation, there will be a clear gap in the market: A third of large companies in Germany will predominantly generate sales digitally, a third will only do so to less than ten percent and the remaining third will be somewhere in between." Around every second large company is therefore at risk of being left behind in the digital transformation.

Positive changes visible

However, the study also shows some positive changes. The number of large companies that have created the position of Chief Digital Officer (CDO) for the implementation of digital transformation has more than doubled compared to 2018 (2019: 36% / 2018: 15%). Every second company also reports working with start-ups (2019: 49% / 2018: 38%), with universities or research institutions (43%) and a third of companies even cooperate with competitors. Nevertheless, a quarter of all companies still want to "rely solely on their own expertise and resources to master the challenges of digitalization".

Platform economy and artificial intelligence - the game changers

Which technologies will have the greatest impact on business development? Managers in large companies answer this question most frequently with big data / smart data. In second place is the development of digital platforms / platform economy and in third place artificial intelligence. What is interesting, however, is the assessment of the technology areas in which Germany could take a leading position in the future. Here, robotics and flexible production processes are in first and second place, followed by artificial intelligence. "Platform economy is a distant sixth in the list. Despite the great importance of both AI and the platform economy, companies see little chance of Germany taking a leading position here," comments Philipp Depiereux. "However, we urgently need competitive platform players in Germany, especially in the B2B sector. This is the only way for local global market leaders to defend their position in many areas against large tech companies and secure their future viability."