Digitalization of Collaboration and Communication in German SMEs

Abstract

The effective use of digital technology and disruptive innovations are increasingly shaping the way companies survive in today’s markets. Consequently, the need for German Small and Medium Enterprises (SMEs) to perform a digital transformation, which implies the creation of a new business model through sophisticated technologies, is gaining significance for succeeding in the digital age. While most German SMEs have already accomplished a digitization of their collaboration and communication,a profound digital transformation is still imminent for the majority. Based on the investigation of existing literature on the subject, this paper demonstrates the suitability of design thinking methods to develop strategic thrust for a digital transformation. The key potential of design thinking is rooted in its ability to creatively solve problems and reinforce skills needed to address dynamic environments. An exemplary result of using design thinking to develop strategic thrust is presented with the fictional business model GreenCube. The concept aims to assist German SMEs in performing a digital transformation by simplifying the incorporation of sophisticated digital technologies and providing opportunities for networking and thus integrating into an ecosystem. Despite their potential, design thinking activities involve several challenges including the incongruence of pre-defined specifications and designed concepts, the gap between a focus on time-reduction and a focus on experimentation, and the lack of measurability of design thinking gains. Nevertheless, the nature of businesses’internal and external environment is becoming ever more fast-paced, making the ability to manage change increasingly critical for German SMEs to establish competitive advantage.