The ‘Mittelstand’ (small and medium-sized enterprises) is the backbone of Germany's economy, and it’s in trouble. At the recent Rethink.Mittelstand conference at TUM Campus Heilbronn, in collaboration with ZEIT für Unternehmer, we discussed the challenges facing Germany’s Mittelstand. Consider this: these companies generate a remarkable €227.7 billion in export revenue for Germany. But many are struggling with declining revenue, rising costs, and a severe shortage of skilled workers that stifles growth and innovation. 📉 The good news? Digital transformation – and especially AI – can serve as a lifeline to address these issues head-on. From automating routine tasks and enhancing operational efficiency to bridging the skills gap, AI can help these businesses stay competitive. Now is the time to act and to Rethink.Mittelstand. With a commitment to AI innovation, the German Mittelstand can unlock its full potential. 🙏 👉 What do you think these companies need to do to overcome challenges? Dr. Rainer Esser, Uwe Jean Heuser, Thomas F. Hofmann, Helmut Krcmar, Zacharias Zacharakis #GROWwithSAP #TUMCampusHeilbronn #ZEITfürUnternehmer #SMEChallenges #DigitalTransformation #SAPBusinessAI #FutureOfMittelstand
Hi Thomas, good post. It’s time to act and from my point of view there are three major topics: 1: Leverage AI for Efficiency: Automate routine tasks, use agentic workflows, use predictive analytics, and enhance customer experience. 2: Collaborate with strong and established partners and their ecosystem (hello SAP and hello SAP Partners ;)) so that the Mittelstand can focus on product innovation and market differentiation 3: Invest in Upskilling: AI must be accessible and usable for all employees to boost productivity and ease adoption. We‘re here and ready to bring out the best of the German Mittelstand, right Andreas Schäfer and Simon Kritikos? 🙂
The Mittelstand’s resilience lies in its adaptability. Embracing AI not just as a tool but as a strategic partner can empower these businesses to navigate today’s challenges, turning efficiency gains into competitive strengths. The way forward? Commit to skill-building within teams, harness automation for high-impact tasks, and keep innovation at the core. Thanks Thomas 🤝
Thomas Saueressig to overcome challenges? SMEs need strong digital basics before AI adoption. Replace spreadsheets with cloud systems. Build APIs. Automate workflows. But tech alone isn't enough - invest in people. Mix veteran expertise with fresh digital talent.
I fear the issues in Germany lies in the lack of business/growth focus of the current government regime Thomas Saueressig. Let's hope those issues are addressed as well......
Exciting, looking forward to SAP's support for small and medium size companies 🤞
embracing innovation mindset is key for sustainable growth.
Thanks for sharing
Great
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1moNo doubt that AI lead digital transformation will help these companies. They would also do well to look beyond the traditional style of managing business within country, and diversify their supply chains.