Digital strategy gap as a brake on growth in the German SME sector
A significant number of SMEs in the mechanical engineering, automotive supply and logistics sectors in Germany are already allocating funds to the investment in digital technologies. However, a company-wide digitalisation strategy is often missing as a unifying element. According to Bitkom (2025), 61% of the companies surveyed are pursuing specific digital initiatives, with 72% of these companies not pursuing a digitalization strategy. The outcome of this approach is a "patchwork digitalisation" in which standalone solutions, devoid of a strategic overarching framework, hinder the full potential of digital transformation. Instead of leveraging synergies, we are left with redundant systems, inefficient processes and high integration costs.
According to KfW, 62% of SMEs are not pursuing any overarching goals with current digital projects. Furthermore, the implementation of artificial intelligence (AI) is being used in a selective manner: A recent survey has revealed that only 12% of companies are currently implementing AI strategies. This is an example of digital fragmentation, whereby individual measures have no impact on the company as a whole.
The digital strategy gap is clearly evident in mechanical engineering, for example: despite high expectations of generative AI, 50% of companies invest less than EUR 100,000 - far too little to achieve real leaps in transformation.
The pressure for digital strategies is growing - across Germany and for individual companies
Germany is at risk of being left behind internationally. In the IMD World Digital Competitiveness Ranking 2024, Germany has achieved 23rd place out of 67. According to research by BDI, BCG and IW, digital reforms are essential for maintaining up to 20% of industrial value creation, which would otherwise be lost. This corresponds to a potential loss of 115 billion euros, particularly in key sectors such as the automotive industry.
Individual companies are facing increasing pressure to digitalise. Original equipment manufacturers (OEMs) are increasingly requiring suppliers to possess digital interfaces, real-time data and the capacity to integrate into digital platforms such as Catena-X. Those who fail to comply with this risk losing orders or even their entire connection to strategic supplier networks as increasingly networked ecosystems. The demands on quality, delivery capability and speed of innovation are rising rapidly, and it is becoming clear that digital and AI-based solutions are essential in order to meet these challenges.
This creates a strong impetus for transformation, particularly in the automotive supply industry, mechanical engineering and logistics. Organisations that do not have a clear strategy for data standards and process integration will quickly become a cost and time factor in the value chain.
Competitive disadvantages due to lack of digitalization
The effects are already being felt. According to Bitkom, 48% of companies are encountering challenges in the development of digital products and services. Manual processes are the dominant method: 82% of SMEs work predominantly without automation. A failure to integrate processes and a lack of data integrity can result in efficiency losses, increased costs and a reduced capacity for innovation.
Productivity in mechanical engineering is stagnating, despite the significant potential. The implementation of GenAI has the potential to increase the margin by up to 10.7 percentage points, generating an additional €28 billion in profit. In the automotive supply industry, a lack of software expertise is hindering the transition to software-defined vehicles. In the field of logistics, data-driven optimisations such as predictive analytics and digital supply chains have not yet been fully utilised. This poses a significant threat to the continued dominance of the United States in technological leadership, particularly within critical sectors.
How IMIG develops suitable digital strategies to guide companies successfully through the digital transformation
IMIG is able to offer strategic support on the topics of digitalisation and AI for SMEs. The objective is twofold: firstly, to initiate digitalisation and AI projects, and secondly, to anchor them strategically and implement them in a scalable manner. With well-founded maturity analyses, structured transformation roadmaps and operational implementation support, IMIG helps companies to go from an idea to sustainable business success.
IMIG addresses the so-called "pilot trap" – i.e. digital and AI initiatives getting stuck in the test phase – with a proven programme management approach. Following the successful pilot phase, the projects are then integrated into the company's standard processes. This approach transforms isolated successes into sustainable transformation.
In practice, this means that IMIG supports SMEs in the use of generative AI in R&D, production or service, for example. We also support the digitalisation of complex supply chains and the development of software-based skills.
The IMIG approach is characterised by a unique combination of strategy development and implementation expertise. Supported by our extensive industry knowledge, we are a trusted partner for business transformation, guiding medium-sized companies to navigate the digital landscape with confidence and efficiency.
Act now - before the backlog becomes irreversible
The time for pilot projects without binding obligations has come to an end. Those who do not pursue a consistent digital and AI strategy today risk being left behind, both technologically and economically, and also in terms of culture. It is imperative that SMEs recognise their role as drivers of innovation and prioritise digital transformation.
I am pleased to inform you that the conditions are in place. Technologies are available, funding programmes exist and the necessary expertise is available in the form of partners such as IMIG. The crucial step of moving out of the silo and into transformation is currently lacking.
Should you wish to develop your digital strategy, use AI profitably and strengthen your competitive position in the long term, please get in touch with IMIG. We provide comprehensive support, encompassing strategic, operational and partnership aspects.
The following sources have been used:
- Bitkom (2025): Digitalisierung in deutschen Unternehmen
- KfW (2024): KfW-Digitalisierungsbericht Mittelstand
- ZEW (2024): KI-Einsatz in deutschen Unternehmen
- VDMA/Strategy& (2025): GenAI-Studie Maschinenbau
- IMD (2024): World Digital Competitiveness Ranking
- BDI/BCG/IW (2024): Zukunft der industriellen Wertschöpfung
- Maximal.Digital (2025): Digitalisierungsstudie Mittelstand
- Strategy& (2024): Transformation in Zulieferindustrie
