Digitization study
Smaller companies need to catch up
A new digitalization index for Germany has revealed a great need for small and medium-sized companies to catch up. The study was published on Monday by the Federal Ministry of Economics at the start of the Federal Government's two-day Digital Summit.
The information and communication sector is the frontrunner. It achieved 273 index points, far exceeding the average of 100 points for all sectors.
The ITC sector is followed at some distance by vehicle construction (193 points), electrical and mechanical engineering (144) and business-related services (135). Basic materials, chemicals and pharmaceuticals are just below the average with 99 points, followed by transport and logistics and trade (75 points each). By contrast, the least digitized sectors are other manufacturing (55.6 index points), tourism (64.4 index points) and other manufacturing (66.7 index points).
The study also identifies differences according to company size: Large companies with more than 249 employees have a significantly higher level of digitalization than medium-sized companies (50-249 employees). Small companies (1-49 employees) still have the greatest potential for digitalization. Southern Germany leads the field in terms of digitalization. Conurbations such as Berlin, Dresden, Hanover, Hamburg, Munich and Cologne also achieve high scores.
The index, which will be published annually in future, is part of the project "Developing and measuring the digitalization of the economy in Germany". Thomas Jarzombek, the Ministry of Economic Affairs' representative for the digital economy and start-ups, said that the index will now provide the ministry with a differentiated annual picture of the digitalization of companies. "In the current first year, the starting places are virtually determined. We can see that there are enormous differences in the degree of digitalization between sectors." Small and medium-sized companies are also not yet exploiting their potential. This is where federal funding programs such as "Digital Jetzt" come in.
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