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Mittelstand-DigitalStrategies for the Digital Transformation of Business ProcessesThis publication as well as further publications can be obtained from:Federal Ministry for Economic Affairsand Energy (BMWi)Public RelationsE-mail: publikationenbundesregierung.debmwi.deCentral procurement service:Tel.: +49 30 182722721Fax: +49 30 18102722721ImprintPublisherFederal Ministry for Economic Affairs and Energy (BMWi)Public Relations11019 Berlin, Germanybmwi.deText and editingWIK GmbH, Bad HonnefDesignLoeschHundLiepold Kommunikation GmbH, BerlinStatusMarch 2017PrintBMWiIllustrationseverythingpossible Fotolia (Title), Andr Wirsig/Mittelstand-Digital (p. 5), holzgespr (p. 6), Wolfgang Borrs/Mittelstand-Digital (p. 7), Munsch GmbH (p. 8), Kompetenz-zentrum Digitales Handwerk West (p. 11), PTW TU Darm-stadt (p. 12), S. Scheibner/PTW (p. 12), BVMW (p. 12), Smart-Factory-KL (p. 12), Handelskammer Hamburg/Ulrich Perry (p. 12), Fraunhofer IAO (p.12), Gunther Reinhart (p. 13), HPI (p. 13), Mittelstand 4.0-Kompetenzzentrum Hannover (p. 13), Maria Beck (p. 13), Egon Mller (p. 13), Fachgebiet Fertigungs-technik/TU Ilmenau (p. 13), IHK Region Stuttgart (p. 17), Hans-Gert Penzel (p. 19), Pia Sue Helferich (p. 21), FTK e. V. Dortmund (p. 23), industrieblick Fotolia (p. 28)This brochure is published as part of the Public relations work of the Federal Ministry for Economic Affairs and Energy. It is distributed free of charge and is not intended for sale. The distribution of this brochure at campaign events or at information stands run by political parties is prohibited, and political party-related information or advertising shall not be inserted in, printed on, or affixed to this publication.The Federal Ministry for Economic Affairs and Energy was awarded the audit berufundfamilie for its family-friendly staff policy. The certificate is granted by berufundfamilie GmbH, an initiative of the Hertie Foundation.3MITTELSTAND-DIGITALContentsHow SMEs can master digitalisation .4Good practice examples how digitalisation can work .6Direct support: Mittelstand 4.0.11Speaking the same language: eBusiness standards for SMEs.24Simply intuitive? Simply intuitive!.29Mittelstand-Digital in your area.334How SMEs can master digitalisationWhether the traditional butchers shop in the countryside, the international industry supplier that is always on the go, or the small hairdressing business: Digitalisation and net-working affect all businesses regardless of the company size or sector.This also includes SMEs which account for 99 % of all busi-nesses in Germany. SMEs form the backbone of the German economy: Small and medium-sized businesses generate over half of the value added. They provide over 60 % of jobs in Germany and well over 83 % of apprenticeships in indus-try. If SMEs can make the leap into the digital age, their suc-cess story will continue.Catchword and provider chaos: The digitalisation discussion is confusingThere are umpteen catchwords surrounding the debate on digitalisation, such as Industry 4.0 and cloud comput-ing. These words are not always easy to understand not to mention the question of how digitalisation impacts on business and what opportunities it creates. Furthermore, the possibilities available for making use of digital tech-nologies are extremely diverse. This spectrum ranges from having a website to using production control software. The number of providers competing for the attention of small and medium-sized businesses for their products is just as multi-faceted. Their solutions generally differ again accord-ing to the function, operational performance, price and service offered. Business owners may quite understandably feel unsure when faced with this information overload.Many small and medium-sized companies rightly wonder: Is any of this important?Demanding customers, new competitors: Why digitalisation is importantOn the one hand digitalisation is also changing customer behaviour. It is turning them into well-informed and inter-linked market actors. This consolidates the position of the customer in the long term. Today customers are already demanding tailor-made solutions and individual products at the price of mass-produced goods. They expect quick and convenient delivery and excellent service. They know that all of this is possible through the use of digital technolo-gies. Only businesses that are able to meet these demands and have a strong customer focus remain competitive in the long run. Simultaneously, changes in the value chains of many manufacturing businesses, service providers and markets are becoming visible not least thanks to the pres-ence of internet companies such as Google and co. which are constantly entering into new segments of the market.Opportunities arise: more efficient processes, new customers and business modelsOn the other hand, digital technologies offer huge oppor-tunities for small and medium-sized businesses: By using these they can develop completely new business models, for instance, they can attract new customers and strengthen the loyalty of existing customers. Medium-sized business can also keep up with large companies which often make the transition into the digital age quicker thereby also secur-ing their orders for the future. Digital technologies also pro-vide them with the opportunity to operate more efficiently, whether in purchasing, production or administration. Using technologies can save small and medium-sized businesses both time and money, for instance by using networked machines which intelligently control production processes, electronic invoices and mobile attendance recording sys-tems.However, it is not only processes that change when digital technologies are used. The employees working environ-ment also changes. In a digitalised and networked company, existing tasks may no longer be necessary whilst new tasks may arise. For this reason, it is important that businesses do not focus solely on technical issues, but also prepare their staff for the coming changes. They should impart the specialist knowledge and skills to their workforce which are needed to successfully perform new tasks, thereby making a success of the digitalisation project. Continued staff training and education is one of the key elements for entrepreneur-ial success in the digital age.Mittelstand-Digital: Competent and free assistance for small and medium-sized businessesMany small and medium-sized enterprises wonder: How can I make the transition successfully? Unfortunately, there is no blueprint, a one-fits-all approach for successfully mov-ing into the digital age. But for each company there will be a suitable approach. And no company must embark on this journey alone! The Federal Ministry for Economic Affairs and Energy assists small and medium-sized enterprises in the digitalisation process. Mittelstand-Digital illustrates the opportunities that digitalisation can create for small and medium-sized businesses and how these can be imple-mented successfully in practice using well-explained, neu-tral, practical information and specific support in designing and implementing a digitalisation strategy.HOW SMES CAN MASTER DIGITALISATION5HOW SMES CAN MASTER DIGITALISATIONsolutions in practice in their demonstration factories, offering a hands-on approach for testing out the digital transformation, so to speak. The Mittelstand 4.0 Agencies pool the latest knowledge on overarching issues of dig-italisation like cloud-computing, communication, trade and processes and share this information via multipliers such as business chambers and associations.This brochure provides an overview of the information and support offered by the Mittelstand-Digital programme. We will first take a look at solutions being used in practice and introduce you to three companies that have success-fully digitised their businesses with the help of Mittel-stand-Digital and are now benefiting from this.Mittelstand-Digital consists of three initiatives: “Simply intuitive usability for the SME sector” helps small and medium-sized businesses to improve the quality and usability of operational software. “E-standards: standardise business processes, ensure success” accelerates the development, trialling and dissemination of e-standards with the aim of strength-ening the international competitive position of small and medium-sized businesses. Under the initiative “Mittelstand (SME) 4.0 Digital Production and Work Processes”, Mittelstand 4.0 Com-petence Centres raise awareness about digitalisation, provide information and training for business leaders and staff members across the country and show them Digital technology simplifies tasks and allows more time for discussion and creativity.6 MITTELSTAND-DIGITAL | GOOD PRACTICE EXAMPLES HOW DIGITALISATION CAN WORKNew customers thanks to digital technologiesThe Kasper joinery is a medium-sized family company specialised in the design and production of solid hardwood staircases. In addition to staircases, the joinery based in Rhens, south of Koblenz, also produces windows, doors and saunas. The company has been working for several years with the Koblenz Chamber of Craft Trades, which is part of the Western Showcase of the Competence Centre for the Digital Skilled Crafts. A few years ago, the founders daughter, Julia Kasper, set out on a new path: She established her own company, the internet platform “holzgespr”. The core element of her platform is an online configuration tool which customers can conveniently use from their own computer to design and order custom-made solid wood furniture. For instance, the artisan can use video technology to show the customer various blocks of wood. The customer decides whether the new seating furniture for his/her dining room should be made from oak, cherry or walnut wood. The customer is involved in the manufacturing of the product from the start. The desired furniture is then custom-made at the family business. Using her platform, Julia Kasper expanded the range of services offered by her parents business- and with immense success.Encouraged by this success and in order to interlink both companies better with one another, the traditional join-ery has now also begun digitising its own processes: For instance, since working hours have started to be recorded digitally, there is noticeably less office and paper work to do. Since the craftspeople have been given smart-phones, it has become much easier to plan staff-ing schedules.The Kasper joinery is now working on completing the digital chain: All customer and production data are being digitised, to ensure that they are available for staff, customers and the machines at any time and in any place. This can allow for the gradual optimisation of other processes in the company, such as design, technical planning and correspondence processes.This example shows how digital business processes can support craftspeople in their work and how new customer groups can be reached using digital technologies.Hermann Kaspers recommendation: “Even if your business order books are nicely filled it is still worth looking at concepts for the future. We now work much more efficiently!”The Kasper joinery and “holzgespr” team.7GOOD PRACTICE EXAMPLES HOW DIGITALISATION CAN WORK | MITTELSTAND-DIGITAL Digital dental professionalsKU64 is a dental practice in Berlin with 115 staff members who all offer spe-cialisms in dental medicine such as orthodontics and surgical treatments. The practice is almost entirely digitised and makes opti-mal use of the benefits of the digital age for instance in communication with patients. The practice has become a prime example of how digitalisation can be successfully implemented in the service industry. The Mittelstand 4.0 Competence Centre in Berlin provides a forum for other small and medium-sized businesses to learn from the practices experience at its events.The website provides patients with a comprehen-sive overview of the treat-ments offered. It has been specially designed so that it can be found easily on the internet. By using tracking tools, i. e. software which registers user behaviour, the practice deter-mines which topics are of interest to their patients and then addresses these topics in brochures, for instance. Appoint-ments can be arranged both online and by telephone. The practice call centre records all calls digitally so that staff can see when there is a high volume of calls. Staff scheduling for the call centre is planned based on this data to ensure that patients do not have to wait too long in the queue at busy times before their call is answered.Even during the appointment itself digital technologies are used to support staff: A special camera generates a dig-ital impression of the oral cavity, for instance. The camera then sends this data to a milling machine which produces a high-precision ceramic inlay within one hour this is considerably quicker than the standard plaster impressions used to date. To encourage patients to persevere during difficult parts of treatment, the practice also simulates the course and the end result of the treatment procedure with the help of digital technology. Seeing how their new smile will look before embarking on the often cumbersome journey through various treatments makes the patient more motivated to persevere. Additionally, each treatment step is doc-umented in a digital file for each patient which means that all staff are able to take care of the patient. This documenta-tion procedure also provides staff with legal certainty since the system issues a warning if, for instance, the statutory sequence of treatment steps is not adhered to. Digital tech-nologies therefore increase the quality of medical treatment, customer sat
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