NewsAbout usCareersContact
en

Investing in digitalization: Even - or especially - in uncertain times!

Yes, we have to invest in digitalization. And yes, that affects every company - regardless of the industry it is operating in. Well, this is not groundbreaking news. In the past few months, however, some companies stopped their investments and became a lot more cautious. The question of whether to invest in digitalization in uncertain times arose in many management meetings.

01.08.2021

LNConsult strongly motivates to invest digitally! Also - or especially - in uncertain times. Strategic digital investments provide the framework that drives long-term visions. We recommend using digital technologies that support companies and their employees in daily business processes. We observe that companies that already follow this strategy keep investing in uncertain times (or even times of crisis). They rarely do that half-heartedly, but at full throttle. Why? Because innovative decision-makers don't understand digital transformation as a sequence of technical upgrades, but as having a digital mindset and thus creating a corporate culture that focuses on realizing digital potential.

Various studies in German-speaking and international areas support the experience of LNConsult. The corona pandemic led to a short-term investment freeze - but innovative companies restarted their digital path quickly because they know that investing in digitalization is not only necessary but creates a competitive advantage in the long run.

Many companies had to produce and deliver more and in a shorter period of time in the pandemic. Increasing efficiency was only possible due to digitalization. It simply offers the opportunity to question in depth daily processes, to understand them in a new way and to optimize them - even in times of crisis. E-commerce boomed during Corona and for many stationary stores the only chance of survival was switching to or integrating an online shop. Those retailers who invested in the digital turn will take this boost to the post-crisis period. They developed a competitive advantage compared to those, who continue to think, act and do business in a purely analog way. LNConsult has always been developing successful digitalization strategies with its customers and a trustworthy partner who guides through the digital transformation has become even more important since the Corona pandamic. From consulting and implementation to sustainable support and ongoing digital development, LNConsult is more than a service provider or supplier. Customers see us as a strategic and comprehensive digitalization partner.

Subsidies and funds to push digitalization at European, national and regional level help companies to keep up with the market. Research about available funds might be time consuming but definitely worth the investment. Funding pots are constantly refilled and emptied - we can currently point out the AWS digitalization bonus for Austrian companies and the investment bonus in Germany.

Supply chain management and logistics without digitalization?

Absolutely no. You are invited to recall the steep development curve of e-commerce over the past few years, but especially over the past few months. Due to the pandemic, this curve has increased its speed and gradient again. Permanent tracking of the flow of goods has already become standard. Not only manufacturers, suppliers, forwarding agents and dealers want to know at any time where production parts or goods are. Consumers today are more demanding and are pushing for permanent availability and fast delivery times. The shortage of supplies for building materials and electronic chips was very present and the limits and risks of global supply chains, production logistics and the flow of goods became more than clear. Climate-friendly transportation is also becoming increasingly important, and the topic is driven by both, politicians, and end customers. Innovative concepts rarely succeed without any digital transformation

Where are we going?

From an international viewpoint Europe tends to lag behind China and the USA in terms of digitalization. At the same time, we are also noticing that Europe is willing to catch up. For example, we see a lot of motivation to invest in digital transformation in pioneering projects in Russia.

Having a closer look at industries and markets, one can say that pharmaceutical companies, groceries and logistics service providers are the winners of this global crisis and, as expected, they have (re-)invested in digitalization. Production companies also recognize the opportunities by rethinking existing processes and integrating digital solutions.

Despite the motivation of investing in a more digital future, there is also a little bit of ​​tension caused by the corona crisis on the one hand and the climate change on the other hand. This might be a breeding ground for caution and restraint when it comes to the investment drive in digitalization.