Use of digital applications in SMEs - user segments, trends and connectivity requirements (No. 522) © Photo Credit: Summit Art Creations - stock.adobe.com

Use of digital applications in SMEs - user segments, trends and connectivity requirements (No. 522)

WIK identifies cross-sectoral user segments and develops possible future scenarios for 2030.

Based on their ICT-usage SMEs can be adjusted to five groups “digital beginners”, “digital opportunity users”, “supply chain-driven digitizers”, “digital experts” and “digital industry champions”. Today, almost three quarters of all SMEs can be regarded as “digital newcomers”. A variety of factors has an impact on the future development of these companies and the shift in shares between these user segments within the next five years.

Regarding the use of digital applications, there is a clear need for SMEs to catch up with large companies, which varies significantly within the heterogeneous SME segment and in different application clusters. Against this background, this study uses the SME demand segmentation of WIK to divide companies into different user segments according to their ICT usage behaviour and derive their connectivity requirements.

“Digital beginners” represent by far the largest user segment today. They mainly deploy basic applications in the area of web and app technologies. In contrast, “digital opportunity users” have recognised the potential of digital applications to strengthen their competitiveness and use them in a strategic and proactive manner. “Supply chain-driven digitizers” also make intensive use of digital applications but tend to act reactively to the specifications of their business partners. The rather small user segments of “digital experts” and “digital industry champions” are characterised by intensive use across all application clusters. While the latter largely employ more than 50 people in the manufacturing industry, the “digital experts” segment mainly consists of start-ups and companies with a focus on ICT business models. 

As the demand for digital applications depends on a wide range of uncertain influencing factors, various shifts between the user segments are conceivable by 2030. If the fore-seeable trends are extrapolated and existing plans are implemented (‘trend scenario’), the digital transformation in the SME sector will take place gradually. “Digital newcomers” will move step by step into the more digitalised user segments. An ‘optimistic scenario’ could arise in particular in the case of unexpected progress in integrating new technologies into demand-oriented and competitive ICT services, ideally complemented by targeted digitisation support. If, however, important steps are not taken and are exacerbated by unforeseen events, SMEs themselves will postpone their currently planned digitalisation projects and complete the digital transformation much more slowly than it seems most likely from today's perspective. 

An adequate broadband supply that also meets the future requirements for bandwidth, quality and IT security is of central importance for the implementation of SMEs' future digitalisation projects. Scalability options are also a critical factor to enable the digital transformation of SME. The spectrum of requirements ranges from micro companies, whose requirements are similar to those of demanding residential customers, through to globally active SMEs with needs that are similar to those of large companies.