Already at the beginning of the Corona pandemic over two years ago, a positive side effect of the global crisis became visible: Corona has rapidly digitized everyday life. One Bitkom survey among around 1,100 German companies sheds light on the longer-term effects of digitalization.
The key findings in brief: Around half of the companies surveyed stated that the coronavirus pandemic has accelerated the digitalization of their business model. Two years ago, shortly after the pandemic began, the number was just 15 percent. In 44 percent of companies, the coronavirus pandemic has accelerated the digitalization of business processes. 60 percent are convinced that digital technologies have helped them overcome the pandemic. 53 percent emphasize that the coronavirus pandemic has triggered a surge in innovation within their own company. And 83 percent now have a digital strategy – two years ago, the figure was only 74 percent. According to the study, large companies with 500 or more employees are the most digitalized.
"Digitalization makes companies crisis-proof. This insight has become widespread in the German economy as a result of the coronavirus pandemic. Companies have realized that digital transformation doesn't come for free,"
says Bitkom President Achim Berg.
“Coronavirus was obviously the impetus for many long-overdue digitalization measures, and the digitalization push triggered by Corona is becoming more sustained.”
Goodbye fax: communication is becoming increasingly digital
The study found significant changes in the choice of communication channels: Video conferencing is now part of everyday life for 72 percent of companies, compared to 61 percent in 2020 and just 48 percent in 2018. Frequent fax use has fallen from 62 percent in 2018 to just 40 percent. In contrast, only 48 percent of respondents use letter mail frequently or very frequently. In 2020, this figure was 56 percent, and in 2018, it was as high as 71 percent. 86 percent of companies state their goal is to replace letter mail with digital communication—twice as many as four years ago.
"The digitization of communication channels is irreversible – and it has accelerated significantly once again. While the use of video conferencing and collaboration tools, for example, was initially forced or born out of necessity in many companies due to the pandemic, the diverse advantages have now convinced even doubters. Hybrid working is becoming the norm,"
says Berg.
"Paper is often no longer the ideal medium. Thanks to fast broadband connections and powerful devices, many people's everyday communication is shifting to the digital space – and companies are following suit."
“Final doubts about the necessity of digitalization have been dispelled”
The biggest hurdles to digitalization are perceived as excessive investment requirements (73 percent), fears of unauthorized access to data (65 percent), and a lack of qualified personnel (64 percent). There is hardly any doubt about the economic benefits of digitalization anymore. While 34 percent of companies were unclear about this in 2018 and 27 percent two years ago, the number has now fallen to just 19 percent. Achim Berg says:
"The last doubts about the necessity of digitalization have been dispelled. However, digitalization is not a self-propelled process; it requires effort and resources. Companies must now focus on removing the existing hurdles."
