Germany, Austria and Switzerland (DACH region) as well as the UK are lagging behind in the transition to Industry 4.0 technologies and embracing data-driven strategies, according to a report from IT consultancy MHP and Ludwig Maximilian University of Munich (LMU).
The study, released at the Hannover Messe trade fair this week, surveyed 823 executives from industrial companies in the four key countries as well as China and the US.
Markus Wambach, Group COO at MHP, said that for seven years now the consultancy has been publishing the barometer together with the LMU Munich, which initially reflected the Germany-wide Industry 4.0 benchmark. It has been measuring and comparing the degree of maturity internationally since 2021.
“On the one hand, the barometer is a mirror for companies that shows current developments and challenges,” he said. “On the other hand, it shows them what they need to do to keep pace with international competition. This is particularly evident in the case of the digital twin: while 30% of companies in the DACH region still do without digital twins altogether, the figure is only 5% in China.”
“There is also a considerable gap in other areas, such as automation and data analysis. The DACH region is lagging in terms of general data strategy and data quality in particular – a clear competitive disadvantage. Companies that do not catch up here risk being left behind in international comparison.”
US and Chinese companies are more advanced in this regard: 91% of US companies treat data as a strategic asset, compared with 78% in China and 64% in the DACH region.
“Many local companies have not arrived in the digital world – neither technically nor in terms of personnel or organisation,” added Dr Johann Kranz, Professor of Business Informatics at LMU Munich.
“Important tasks such as breaking down data silos, replacing legacy systems or building a scalable data infrastructure are being put off instead of being tackled with determination. Unfortunately, the good economic conditions of the last decade were not used for long-term investments in more efficient production processes. In the current situation, the first thing to be cut is anything that is not essential for survival.”
A higher proportion of companies in the DACH region and the UK continue to struggle with structural obstacles, with outdated IT infrastructures, with a lack of skilled workers and often are hindered by insufficient prioritisation by management of these aspects.
This is particularly evident in the automotive sector and in smaller companies, the report adds.
