Can Germany digitalise?

Digitalization is on everyone's lips, but German companies often lag behind. Although there are a wealth of software developers both in Germany and worldwide, many German companies fail to successfully manage their digital transformation. Why is that and how can things be improved?

Why you should read this article:

You will learn why Germany is lagging behind in digitalization and what common mistakes companies make. You will also receive valuable approaches and methods to make your digital transformation successful and sustainable.

There are many software developers

There are numerous software developers in Germany who work either permanently, as freelancers or in agencies. In addition, there are countless developers on international freelance platforms as well as agencies in nearshoring and farshoring countries. According to the Statista Research Department, there were around 901,000 IT specialists in Germany in 2021. At a global level, over 25 million registered software developers are listed on LinkedIn. But despite this high number of available specialists, many German companies are failing to successfully advance digitalization..

An example of the international availability of software developers are platforms such as Upwork or Toptal, which offer access to thousands of developers from countries such as India, Poland or the Philippines. These developers often work on cheaper terms and can still deliver high-quality work. Nevertheless, German companies have difficulties in successfully implementing their digital projects

Germany's position in international rankings

In international rankings on digitalization, Germany is often at the bottom of the list. The World Digital Competitiveness Ranking 2022 of the IMD World Competitiveness Center ranks Germany 18th out of 64 countries examined. The Digital Riser Report 2021 of the European Center for Digital Competitiveness even shows that Germany has lost the most digital competitiveness compared to other G20 countries over the past three years and is in one of the last places. These figures make it clear that Germany has a lot of catching up to do compared to other industrialized nations.

Germany performs particularly poorly in the areas of connectivity, digital public services and integration of digital technologies. This shows that German companies are struggling to use digital technologies effectively to optimize their business processes and develop new business models.

What is the reason?

A common reason is that companies have access to software developers but often do not know what exactly they need to do or how to successfully implement IT projects. According to a 2020 study by Bitkom, 69% of German companies lack a clear digital strategy. In addition, there are problems with project implementation: 45% of IT projects in German companies fail partially or completely, as a survey by Capgemini shows.

There is often a lack of a clear vision and understanding of how digital technologies can be used to achieve business goals. Another factor is the lack of integration of IT departments into strategic planning. IT is often viewed as a supporting function rather than an integral part of the company's strategy.

What is needed? Understand, explore, focus

In order to successfully implement digitalization, companies must first understand the entire context: their own business, the people/stakeholders, the customers and the market. Only through a deep understanding of these factors can suitable solutions be developed.

• Understand: Companies need to understand the needs and requirements of all stakeholders. This includes a comprehensive analysis of internal processes, employee involvement and collecting customer feedback. A good example is using customer journey mapping to better understand customer needs and challenges.

• Exploring: Creativity and unconventional approaches are required to find innovative solutions. Methods such as design thinking or agile frameworks help to structure and encourage creative processes. These methods enable teams to quickly develop and test prototypes, leading to faster and more effective solutions.

• Focus: The possible solutions must be evaluated and supported by a business case. A clear description of the requirements and a realistic assessment of the technical implementation are crucial. Tools such as Value Stream Mapping can help to evaluate the added value of each solution and set priorities.

Implementation: Human-centered and sustainable

Once these foundations have been laid, the technical implementation can begin. The technical part is often the easiest, as there are numerous highly qualified specialists who can take on this role. However, it is crucial to make the entire process human-centered and sustainable.

Employees must be involved in the change process. Digitalization can only be successful if people are taken along. Change management strategies play a key role here in overcoming resistance and creating acceptance.

In addition, solutions must help the company in the long term. Sustainability here means that the solutions not only bring short-term success, but are also sustainable in the long term. This means that the IT infrastructure must be scalable and future-proof in order to meet future requirements.

Our support: The 369 method

We at Das 369 Studio offer our support in precisely this process. With our 369 method, digitalization succeeds.

The 369 method in detail:

• 3 core values: human-centered, creative, sustainable.
• 6 phases: understand, explore, focus, realize, optimize and accompany.
• 9 formats: Our modular system with 9 formats supports this process and offers customized solutions for every company. 

Conclusion
German companies have access to a wealth of software developers, both nationally and internationally. Yet many fail to embrace digitalization because of a lack of clear strategies, creative approaches and employee involvement. With the right approach and support, these challenges can be overcome. Our 369 method offers a structured and successful path to digital transformation. Let's find the connection to digitalization together and ensure long-term success.