Europe's companies are lagging behind their own expectations when it comes to digital business models
European industry overestimates its digital maturity. Because although eight out of ten companies already describe themselves as a digital industrial enterprise, a look behind the scenes shows: The use and analysis of important product and process data is neglected or not even possible yet due to incompatible systems.
A recently published industry study shows that Europe's companies are still lagging behind in terms of digital business models. For the study "Europe's Industry in Transition" conducted at the end of 2022, 442 executives in 19 European countries were surveyed on behalf of the product innovation platform Aras. The survey participants are employed in companies with a minimum turnover of 40 million euros in the automotive, aerospace & defense, mechanical engineering, medical technology, chemical, pharmaceutical and food industries.
The wish is father of the thought in digital business models
The distorted self-image revealed in the study is dangerous and restricts the scope for action, the study authors complain. At the same time, companies are under great pressure to adapt. Nine out of ten industrial companies expect their business model to change further in the coming years. "The growing amount of data in everyday business life is obviously leading to overestimation of one's own capabilities," says Jens Rollenmüller, Managing Director of Aras Germany. "If 82 percent of the study participants already describe themselves as a digital industrial company, the wish is probably father to the thought here." The sentiment, he says, is too positive and hides the failures to date. "In reality, companies are not yet that far along. They often only understand digitization as broad data collection or the digital dispatch of data. However, the actual possibilities, right up to new, digital business models, are not yet being exploited," industry expert Rollenmüller continues.
Analyze and correlate existing and new data
Although 78 percent of respondents say that everyone in their company has access to the product data they need for their work, 62 percent admit that the quality of this data is poor. At the same time, however, 62 percent admit that the quality of this data is poor. And 79 percent complain about a silo structure, i.e., that the information is located in compartmentalized systems in various places in the company. Aras CEO Rollenmüller therefore believes that the industry is only at the beginning of its digitization journey: "To remain competitive in the long term, companies must leverage hidden potential. This can only be achieved if existing and new data is analyzed and correlated. This requires digitally mapped products and supply chains, which can then be developed into a true digital twin in the next step."
According to industry expert Rollenmüller, companies must make up for past failures as quickly as possible. This is because the upcoming changes are putting the industry under great pressure to transform. For example, 87 percent of those surveyed assume that their business model will continue to change over the next few years. Jens Rollenmüller: "The change is in full swing. More and more companies are already focusing on a modern product world. For example, according to our study, 36 percent of companies already offer PaaS (Product-as-a-Service) solutions, 35 percent are in the implementation phase for this and 15 percent are planning to do so."
Source: Aras
