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Digitization in SMEs: Opportunities and challenges

Digitization in medium-sized businesses and customizable ERP software (© Pixabay)

Digitization in medium-sized businesses and customizable ERP software (© Pixabay)

Digitalization in German companies has made significant progress in recent years, as evidenced above all by the increasingly widespread use of ERP (Enterprise Resource Planning) software. ERP systems are key tools for the integration and automation of business processes ranging from financial accounting and human resources to production and sales. Current studies show that a growing number of companies in Germany are using ERP solutions to increase their competitiveness and respond to the demands of digital transformation.

The state of digitalization in German companies

Digitalization in German companies is measured by various indicators, including the degree of digitalization, the use of digital technologies and the implementation of digital business models. According to the European Commission's Digital Economy and Society Index (DESI), Germany is in the middle of the European field. Among other things, the DESI index evaluates the integration of digital technologies in companies, connectivity and digital public administration.

A study by the Federal Ministry for Economic Affairs and Energy (BMWi) shows that small and medium-sized enterprises (SMEs) in particular still have some catching up to do, while large companies are often pioneers in digitalization. The main challenges lie in financing and the lack of digital infrastructure, particularly in rural areas.

Distribution of ERP software in German companies

ERP systems are a central component of digitalization in companies. They enable the efficient planning and control of business processes and contribute to the optimization of resources and workflows. According to a recent study by market research company Statista from 2021, around 50% of German companies with more than 10 employees use ERP software. In larger companies with more than 250 employees, the proportion is even over 80%.

A report by Bitkom, the German digital association, confirms this trend and shows that the use of ERP systems has risen continuously in recent years. The study highlights that companies in the industrial, retail and service sectors in particular rely on ERP software to digitize and automate their processes.

Reasons for using ERP software

The motivation for the introduction of ERP systems in German companies is diverse. The main reasons include

* Increased efficiency: ERP systems help to automate and optimize business processes, leading to greater efficiency and productivity.
* Cost reduction: By integrating business processes, redundant workflows can be eliminated and operating costs reduced.
* Improve data quality: ERP systems enable centralized data management, improving data quality and consistency.
* Better decision-making: Real-time data and comprehensive reports help management make informed decisions.
* Compliance and risk management: ERP systems help to comply with legal regulations and improve risk management.

Challenges and future prospects

Despite the progress made, many German companies face challenges when it comes to digitalization and the use of ERP systems. These include high implementation costs, complex adaptation processes and the need for qualified IT specialists. In addition, companies must ensure that their ERP systems are compatible with other digital solutions and technologies to ensure seamless integration.

In the future, the role of ERP systems in German companies will continue to grow in importance. Trends such as the increasing use of cloud ERP solutions, the integration of artificial intelligence (AI) and machine learning as well as the further automation of business processes will continue to drive digitalization. Companies that focus on these technologies at an early stage can strengthen their competitiveness in the long term and successfully master the challenges of digital transformation.

Customizable ERP software for maximum efficiency

One low-code solution that has been in use for decades is the FileMaker platform. Customizable ERP software based on FileMaker offers companies numerous advantages that go far beyond the functions of traditional ERP systems. Companies can tailor their ERP solution to their specific needs and business processes without having to rely on the support of external developers. This adaptability makes it possible to adjust the software quickly and efficiently to changing market conditions and operational requirements. In addition, individual workflows and data models can be easily implemented, which significantly increases productivity and efficiency.

Another significant benefit is FileMaker's cross-platform support and integration, which enables seamless use on Apple Mac, Windows and iOS devices. This compatibility ensures that employees can access ERP data and functions anytime, anywhere, regardless of their preferred device. This promotes collaboration and communication within the company and improves the flexibility of working methods. In addition, the FileMaker platform offers extensive security features and enables the integration of external systems and data sources, which increases the overall efficiency of the IT infrastructure and ensures smooth operations.

Summary

In conclusion, it can be said that digitization in German companies is well on its way, with the use of ERP software playing a central role. Recent studies show that more and more companies are recognizing and using the benefits of ERP systems to optimize their business processes and prepare for the future. Maximum efficiency in the optimization of operational processes can be achieved with customizable ERP software, which can also be individually adapted and expanded by the customer, for example, as part of a low-code platform such as Claris FileMaker.

gofilemaker.de - MSITS
Hackenweg 97
26127 Oldenburg
Germany

https://gofilemaker.de

Herr Markus Schall
+49 (0) 4 41-30 43 76 40
+49 (0) 4 41-30 42 51 32
info@gofilemaker.de

Development of customizable ERP software with CRM, billing and inventory management for macOS, Windows and iOS based on the Claris FileMaker platform. Development and distribution of database systems, ERP software and merchandise management systems based on the FileMaker platform. Experience with FileMaker databases since 1994, winner of an FMM Award 2011, awarded by FileMaker Magazine.

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